European Parliament legislative resolution on the proposal for a Council regulation (Euratom) laying down the rules for the participation of undertakings, research centres and universities in actions under the Seventh Framework Programme of the European Atomic Energy Community and for the dissemination of research results (2007-2011) (COM(2006)0042 - C6-0080/2006 - 2006/0014(CNS))
Date: 2006-11-30
Institutions: Committee on Industry, Research and Energy, European Parliament
Subjects: EAEC, EU programme, EU research policy, dissemination of information, research body, research programme, research results, scientific cooperation, type of business, university

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2.

Data provision

The appropriate fraction of personal income tax and social contributions levied on social protection benefits
for the year 2005 must be indicated according to the different types of cash social protection benefits,
preferably further subdivided for particular groups of homogenously taxed schemes. In difficult cases, results
might be reported by appropriate groups of benefits, e.g. the total of the seven pension categories listed in
Annex II or the total of the cash benefits of a specific function. Fiscal benefits should be provided for each
item separately using the revenue forgone method.

P6_TA(2006)0517

Rules for participation — FP7 — Euratom *

European Parliament legislative resolution on the proposal for a Council regulation (Euratom) laying
down the rules for the participation of undertakings, research centres and universities in actions
under the Seventh Framework Programme of the European Atomic Energy Community and for
(COM(2006)0042 — C6-0080/2006 —
(2007-2011)
the dissemination of
2006/0014(CNS))

research results

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2006)0042) (1),

— having regard to Articles 7 and 10 of the Euratom Treaty, pursuant to which the Council consulted

Parliament (C6-0080/2006),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Industry, Research and Energy and the opinion of the

Committee on Budgets (A6-0305/2006),

1.

Approves the Commission proposal as amended;

Calls on the Commission to alter its proposal accordingly, pursuant to Article 119, second paragraph,

2.
of the Euratom Treaty;

3.

Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

Asks the Council to consult Parliament again if it intends to amend the Commission proposal sub-

4.
stantially;

5.

Instructs its President to forward its position to the Council and Commission.

(1) Not yet published in OJ.

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AMENDMENTS
BY PARLIAMENT

Amendment 39

Recital 3a (new)

(3a) Treatment of confidential data is governed by all the
including the Institutions'
relevant Community legislation,
internal rules such as Commission Decision 2001/844/EC,
ECSC, Euratom of 29 November 2001 (1) amending its inter-
nal rules of procedure regarding provisions of security.

(1) OJ L 317, 3.12.2001, p. 1. Decision as last amended by Decision

2006/548/EC, Euratom (OJ L 215, 5.8.2006, p. 38).

Amendment 40

Recital 4

(4) The rules for the participation of undertakings, research
centres and universities should provide a coherent and transpar-
implementation and ease
ent
of access
in the Seventh Framework
Programme.

framework to ensure efficient

for all participants

(4) The rules for the participation of undertakings, research
centres and universities should provide a coherent, comprehen-
sive and transparent framework to ensure the most efficient
implementation possible, taking into account the need for
easy access for all participants through simplified procedures,
in accordance with the principle of proportionality.

Amendment 41

Recital 4a (new)

(4a) The rules should also facilitate the exploitation of intel-
lectual property developed by a participant, taking also into
account the way in which the participant may be organised
internationally, whilst protecting the other participants' and
the Community's legitimate interests.

Amendment 42

Recital 7

(7)
It is therefore appropriate to permit not only the partici-
pation of legal persons, provided that they are entitled to exer-
cise rights and assume obligations, but natural persons. The
participation of natural persons will ensure that the creation
and development of scientific excellence and ability are not
limited to Community funding of projects involving only
legal persons, ensuring also the participation of SMEs that
are not legal persons.

deleted

Amendment 43

Recital 9

(9)
It is appropriate that any legal entity should be free to
participate once the minimum conditions have been satisfied.
Participation over and above the minimum should ensure the
efficient performance of the indirect action concerned.

(9)
It is appropriate that any legal entity should be free to
participate once the minimum conditions have been satisfied.
Participation over and above the minimum should ensure the
efficient implementation of the indirect action concerned.

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AMENDMENTS
BY PARLIAMENT

Amendment 44
Recital 11a (new)

(11a) Pursuant to Article 198 of the Treaty, legal entities of
Member States' non-European territories under their jurisdic-
tion are eligible for the Seventh Framework Programme.

Amendment 45
Recital 12a (new)

(12a) There should be an effective and smooth transition
from the cost calculation regime used in the Sixth Framework
programme. For the benefit of participants the monitoring
process of the Seventh Framework programme should, there-
fore, address the budgetary impact of this change in particular
as regards its effect on the administrative burden for partici-
pants.

Amendment 46
Recital 13

It is necessary for the Commission to establish further
(13)
rules and procedures, in addition to those provided for in the
Financial Regulation and its Implementing Rules, to govern the
submission, evaluation, selection and award of proposals.
In
particular the rules governing the use of independent experts
should be established.

It is necessary for the Commission to establish further
(13)
rules and procedures, in addition to those provided for in the
Financial Regulation and its Implementing Rules and this Reg-
ulation, to govern the submission, evaluation and selection of
proposals and award of grants, as well as redress procedures
for participants. In particular the rules governing the use of
independent experts should be established.

Amendment 47
Recital 14

(14)
It is appropriate for the Commission to establish further
rules and procedures, in addition to those provided for in the
Financial Regulation and its Implementing Rules, to govern the
assessment of the legal and financial viability of participants in
indirect actions under the Seventh Framework Programme.

(14)
It is appropriate for the Commission to establish further
rules and procedures, in addition to those provided for in the
Financial Regulation and its Implementing Rules, to govern the
assessment of the legal and financial viability of participants in
indirect actions under
the Seventh Framework Programme.
Such rules should strike the right balance between protecting
the Community's financial interests and simplifying and facil-
itating the participation of legal entities in the Framework
Programme.

Amendment 48
Recital 15

(15)
In this context, the Financial Regulation and the Imple-
menting Rules, govern inter alia the protection of the Commu-
nity's financial interests, the fight against fraud and irregularity,
the procedures for the recovery of sums owed to the Commis-
sion, exclusion from contract and grant procedures and related
penalties, and audits, checks, and inspections by the Commis-
sion and the Court of Auditors, pursuant to Article 160c of
the Treaty.

(15)
In this context, the Financial Regulation and the Imple-
menting Rules and Council Regulation (Euratom, EC) No
2988/95 of 18 December 1995 on the protection of the Euro-
pean Communities' financial interests (1), govern inter alia the
protection of
the fight
against fraud and irregularity, the procedures for the recovery
of sums owed to the Commission, exclusion from contract and
grant procedures and related penalties, and audits, checks, and
inspections by the Commission and the Court of Auditors, pur-
suant to Article 160c of the Treaty.

the Community's financial

interests,

(1) OJ L 312, 23.12.1995, p. 1.

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AMENDMENTS
BY PARLIAMENT

Amendment 49

Recital 15a (new)

It is necessary that the Community financial contribu-

(15a)
tion reaches the participants without undue delay.

Amendment 50

Recital 17

(17) The Commission should monitor both the indirect
actions carried out under the Seventh Framework Programme
and the Seventh Framework Programme and its Specific Pro-
grammes.

(17) The Commission should monitor both the indirect
actions carried out under the Seventh Framework Programme
and the Seventh Framework Programme and its Specific Pro-
grammes. With a view to ensuring the efficient and coherent
monitoring and evaluation of the implementation of indirect
actions,
the Commission should set-up and maintain an
appropriate information system.

Amendment 51

Recital 17a (new)

(17a) The Seventh Framework Programme should reflect
and promote the general principles laid down in the European
Charter for Researchers and Code of Conduct for the Recruit-
ment
voluntary
character.

of Researchers, while

respecting their

Amendment 52

Recital 19

(19) While respecting the rights of the owners of intellectual
property, those rules should be designed to ensure that partici-
pants have access to information they bring to the project and
to knowledge arising from research work carried out in the pro-
ject to the extent necessary to conduct the research work or to
use the resulting knowledge.

(19) While respecting the rights of the owners of intellectual
property, those rules should be designed to ensure that partici-
pants and, where appropriate, their affiliated entities estab-
lished in a Member State or associated country have access to
information they bring to the project and to knowledge arising
from research work carried out in the project to the extent
necessary to conduct the research work or to use the resulting
knowledge.

Amendment 53

Recital 20

(20) The obligation established in the sixth Framework Pro-
gramme for certain participants to take financial responsibility
for their partners in the same consortium will be waived.
Depending on the level of risk associated with non-recovery
of sums, part of the Community financial contribution may
be retained to cover amounts due and not reimbursed by
defaulting partners. The participants that would have been
obliged to cover the financial responsibility for other partici-
pants would contribute to risk avoidance, which the Commis-
sion shall retain at the time it makes payments.

(20) The obligation established in the sixth Framework Pro-
gramme for certain participants to take financial responsibility
for their partners in the same consortium will be waived. In
this context, a ‘Participants guarantee fund’, managed by the
Commission, should be established to cover amounts due and
not reimbursed by defaulting partners. Such an approach will
promote simplification and facilitate the participation, whilst
safeguarding the Community's financial interests in a manner
appropriate for the Framework Programme.

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AMENDMENTS
BY PARLIAMENT

Amendment 55

Article 2, points (1) to (3)

-1.

‘legal entity’ means any natural person, or any legal per-
son created under the national law of its place of estab-
lishment, or under Community law or international law,
which has legal personality and which may, acting under
its own name, exercise rights and be subject to obliga-
tions. In the case of natural persons, references to estab-
lishment are deemed to refer to habitual residence.

-1a.

‘affiliated entity’ means any legal entity that is under
the direct or indirect control of a participant, or under
the same direct or indirect control as the participant, con-
trol taking any of the forms set out in Article 7, para-
graph 2.

-1b.

‘fair and reasonable conditions’ means appropriate con-
terms taking into
ditions including possible financial
account
the specific circumstances of the request for
access, for example the actual or potential value of the
foreground or background to which access is requested
and/or the scope, duration or other characteristics of the
use envisaged;

1.

2.

the results,

‘foreground’ means
including information,
whether or not they can be protected, which are generated
by actions. Such results include rights related to copyright;
design rights; patent rights; plant variety rights; or similar
forms of protection;

‘background’ means information which is held by partici-
pants prior to their accession to the grant agreement, as
well as copyrights or other intellectual property rights per-
taining to such information, the application for which has
been filed before their accession to the grant agreement,
and which is needed for carrying out the indirect action or
for using the results of the indirect action;

1.

2.

the results,

‘foreground’ means
including information,
whether or not they can be protected, which are generated
by the indirect action concerned. Such results include
rights related to copyright; design rights; patent rights;
plant variety rights; or similar forms of protection;

‘background’ means information which is held by partici-
pants prior to their accession to the grant agreement, as
well as copyrights or other intellectual property rights per-
taining to such information, the application for which has
been filed before their accession to the grant agreement,
and which is needed for carrying out the indirect action or
for using the results of the indirect action;

2a.

‘participant’ means a legal entity contributing to an
indirect action and having rights and obligations with
regard to the Community under the terms of this Regula-
tion;

3.

‘research organisation’ means a non-profit making organisa-
tion which carries out scientific or technical research as its
main objective;

3.

‘research organisation’ means a legal entity established as a
non-profit organisation which carries out research or tech-
nological development as one of its main objectives;

Amendment 56

Article 8, paragraph 2

first paragraph shall not apply in the case of actions that

The
coordinate research activities.

first paragraph shall not apply in the case of actions

The
whose purpose is to coordinate research activities.

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AMENDMENTS
BY PARLIAMENT

Amendment 57

Article 12, paragraph 2, subparagraph 1a

Calls for proposals shall have clear objectives so as to ensure
that applicants do not respond needlessly.

Amendment 58

Article 14

Evaluation, selection and award

Evaluation principles, and selection and award criteria

1.
The Commission shall evaluate all the proposals submitted
in response to a call for proposals on the basis of the principles
for evaluation, and the selection and award criteria set out in
the specific programme and the work programme.

1.
The Commission shall evaluate all the proposals submitted
in response to a call for proposals on the basis of the principles
for evaluation, and the selection and award criteria.

The criteria used shall be as follows:

(a) scientific and technological excellence and degree of inno-

vation;

(b) ability to successfully carry out the indirect action and
manage it efficiently in terms of resources and expertise,
particularly as regards the organisational arrangements
laid down by the participants;

(c)

relevance to the objectives of the specific programme

(d) critical mass of resources mobilised and their contribution

to Community policies

(e) quality of the plan for utilising and disseminating knowl-
edge acquired, potential in terms of fostering innovation
and clear schemes for administering intellectual property.

Within this framework the work programme will specify the
evaluation and selection criteria and may add additional
requirements, weightings and thresholds, or set out further
details on the application of the criteria.

The work programme may set out specific criteria or further
details on the application of the criteria.

A proposal which contravenes fundamental ethical princi-
2.
ples or which does not fulfil the conditions set out in the spe-
cific programme, the work programme or in the call for propo-
sals shall not be selected. Such a proposal may be excluded
from the evaluation, selection and award procedures at any
time.

A proposal which contravenes fundamental ethical princi-
2.
ples or which does not fulfil the conditions set out in the spe-
cific programme, the work programme or in the call for propo-
sals shall not be selected. Such a proposal may be excluded
from the evaluation, selection and award procedures at any
time.

Proposals shall be selected on the basis of the evaluation

3.
results.

3.
Proposals shall be ranked according to the evaluation
results. Funding decisions shall be made on the basis of this
ranking.

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AMENDMENTS
BY PARLIAMENT

Amendment 59

Article 15

1.
The Commission shall adopt and publish rules governing
the procedure for the submission of proposals, as well as the
related evaluation, selection and award procedures. In particu-
lar, it shall lay down detailed rules for the two-stage procedure
for submission, and rules for the two-step evaluation pro-
cedure.

1. Where a call for proposals specifies a two-step evalu-
ation procedure, only those proposals that pass the first step,
based on the evaluation against a limited set of criteria, shall
go forward for further evaluation.

2. Where a call for proposals specifies a two-stage submis-
sion procedure, only those proposals that pass the evaluation
criteria for the first stage shall be requested to submit a com-
plete proposal in the second stage.

2. Where a call for proposals specifies a two-stage submis-
sion procedure, only those applicants whose proposals pass
the evaluation for the first stage shall be requested to submit a
complete proposal in the second stage.

3. Where a call for proposals specifies a two-step evaluation
procedure, only those proposals that pass the first step, based
on the evaluation of a limited set of criteria, shall go forward
for further evaluation.

All applicants shall be swiftly informed of the results of the
first stage evaluation.

3.
The Commission shall adopt and publish rules governing
the procedure for the submission of proposals, as well as the
related evaluation, selection and award procedures and publish
guides for applicants including guidelines for evaluators. In
particular, it shall lay down detailed rules for the two-stage
procedure for submission (including as regards the scope and
nature of the first stage proposal as well as those of the com-
plete second stage proposal), and rules for the two-step evalu-
ation procedure.

The Commission shall provide information and set out redress
procedures for applicants.

4.
The Commission shall adopt and publish rules to ensure
consistent verification of the existence and legal status of parti-
cipants in indirect actions as well as their financial capacity.

4.
The Commission shall adopt and publish rules to ensure
consistent verification of the existence and legal status of parti-
cipants in indirect actions as well as their financial capacity.

The Commission shall refrain from renewing such verification
unless the situation of the participant concerned has changed.

Amendment 60

Article 16

The Commission shall appoint

1.
independent experts to
assist with evaluations required under the Seventh Framework
Programme, and its specific programmes.

Commission shall appoint independent experts to assist

1.
with evaluations of proposals.

For coordination and support actions, referred to in Article 13,
independent experts shall be appointed only if the Commission
deems it appropriate.

For coordination and support actions, referred to in Article 13,
independent experts shall be appointed only if the Commission
deems it appropriate.

Independent experts shall be chosen considering the skills

2.
and knowledge appropriate to the tasks assigned to them.

2.
Independent experts shall be chosen on the basis of skills
and knowledge appropriate to the tasks assigned to them. In
cases where independent experts will have to deal with classi-
fied information, the appropriate security clearance shall be
required for nomination.

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AMENDMENTS
BY PARLIAMENT

Independent experts shall be identified and selected on the basis
of calls for applications from individuals and calls addressed to
national research agencies, research institutions or enterprises
with a view to establishing lists of suitable candidates.

Independent experts shall be identified and selected on the basis
of calls for applications from individuals and calls addressed to
relevant organisations such as national
research agencies,
research institutions or enterprises with a view to establishing
lists of suitable candidates.

The Commission may, if deemed appropriate, select any individ-
ual with the appropriate skills from outside the lists.

The Commission may, if deemed appropriate, select any individ-
ual with the appropriate skills from outside the lists.

Appropriate measures shall be taken to ensure reasonable gen-
der balance when appointing groups of independent experts.

Appropriate measures shall be taken to ensure reasonable gen-
der balance when appointing groups of independent experts.

3. When appointing an independent expert, the Commission
shall take all necessary steps to ensure that the expert is not
faced with a conflict of interests in relation to the matter on
which the expert is required to provide an opinion.

3. When appointing an independent expert, the Commission
shall take all necessary steps to ensure that the expert is not
faced with a conflict of interests in relation to the matter on
which the expert is required to provide an opinion.

‘the appointment

letter’, which shall

The Commission shall adopt a model appointment letter,
4.
hereinafter
include a
declaration that the independent expert has no conflict of inter-
est at
the time of appointment and that he undertakes to
inform the Commission if any conflict of interest should arise
in the course of providing his opinion or carrying out his
duties. The Commission shall conclude an appointment letter
between the Community and each independent expert.

‘the appointment

letter’, which shall

The Commission shall adopt a model appointment letter,
4.
hereinafter
include a
declaration that the independent expert has no conflict of inter-
est at
the time of appointment and that he undertakes to
inform the Commission if any conflict of interest should arise
in the course of providing his opinion or carrying out his
duties. The Commission shall conclude an appointment letter
between the Community and each independent expert.

The Commission shall publish periodically in any appro-
5.
priate medium the list of the independent experts that have
assisted it for each specific programme.

The Commission shall publish once a year in any appro-
5.
priate medium the list of the independent experts that have
assisted it for the Framework Programme and each specific pro-
gramme.

Amendment 61

Article 17, paragraphs 4 to 6

4. Where a participant fails to comply with its obligations,
the other participants shall comply with the grant agreement
without any complementary Community contribution unless
the Commission expressly relieves them of that obligation.

4. Where a participant fails to comply with its obligations
regarding the technical implementation of the indirect action,
the other participants shall comply with the grant agreement
without any complementary Community contribution unless
the Commission expressly relieves them of that obligation.

If the implementation of an action becomes impossible or
5.
if the participants fail to implement it, the Commission shall
ensure the termination of the action.

If the implementation of an action becomes impossible or
5.
if the participants fail to implement it, the Commission shall
ensure the termination of the action.

Participants shall ensure that the Commission is informed
6.
of any event which might affect the implementation of the
indirect action or the interests of the Community.

Participants shall ensure that the Commission is informed
6.
of any event which might affect the implementation of the
indirect action or the interests of the Community.

6a. Where provided for in the grant agreement, the partici-
pants in the indirect action may subcontract certain elements
of the work to be carried out to third parties.

The Commission shall set out redress procedures for

6b.
participants

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AMENDMENTS
BY PARLIAMENT

Amendment 63

Article 18, paragraph 7

The Commission shall establish a model grant agreement

7.
in accordance with this Regulation.

7.
The Commission shall, in close cooperation with Member
States, establish a model grant agreement in accordance with
this Regulation. If a significant modification of the model
grant agreement proves necessary, the Commission shall, in
close cooperation with Member States, revise it as appropriate.

Amendment 62

Article 18, paragraphs 8a and 8b (new)

8a.
The model grant agreement shall provide for supervi-
sion and financial control by the Commission or any represen-
tative authorised by it, and the Court of Auditors.

The grant agreement may lay down time limits for par-
8b.
ticipants to give the various notifications referred to in this
Regulation.

Amendment 64

Article 19, paragraph 1, subparagraph 1

1.
The grant agreement shall establish the respective obliga-
tions of the participants with regard to access rights, use and
dissemination, in so far as those obligations have not been laid
down in this Regulation.

1.
The grant agreement shall establish the respective rights
and obligations of the participants with regard to access rights,
use and dissemination, in so far as those rights and obligations
have not been laid down in this Regulation.

Amendment 65

Article 23

1. Save where otherwise provided in the call for proposals, all
legal entities wishing to participate in an indirect action shall
draw up an agreement, hereinafter ‘the consortium agreement’,
to govern the following:

1.
Save where otherwise provided in the call for proposals,
all participants in an indirect action shall conclude an agree-
ment, hereinafter ‘the consortium agreement’, to govern inter
alia the following:

(a)

the internal organisation of the consortium;

(a)

the internal organisation of the consortium;

(b)

the distribution of the Community financial contribution;

(b)

the distribution of the Community financial contribution;

(c)

additional rules on dissemination and use including intel-
lectual property rights arrangements, as appropriate;

(d)

the settlement of internal disputes.

(c)

rules additional to those in Chapter III Dissemination and
use, and access rights as well as rules related to provi-
sions in the grant agreement;

(d)

the settlement of internal disputes including the cases of
abuses of power;

(da)

liability,

indemnification and confidentiality arrange-

ments between the participants.

2.
The Commission shall establish and publish guidelines
on the main issues that may be addressed by participants in
their consortium agreements.

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AMENDMENTS
BY PARLIAMENT

Amendment 66

Article 24, paragraph 1

1.
The legal entities wishing to participate in an indirect
action shall appoint one of their number to act as coordinator
to carry out the following tasks in accordance with this Regula-
tion, the Financial Regulation, the Implementing Rules, and the
grant agreement:

1.
The legal entities wishing to participate in an indirect
action shall appoint one of their number to act as coordinator
to carry out the following tasks in accordance with this Regula-
tion, the Financial Regulation, the Implementing Rules, and the
grant agreement:

(a)

to ensure that the legal entities identified in the grant
agreement complete the necessary formalities for accession
to the grant agreement, as provided for therein;

(b)

to receive the Community financial contribution and to dis-
tribute it;

(c)

to keep the financial accounts in order, to keep records and
to inform the Commission of
the
Community financial contribution in accordance with
Article 35;

the distribution of

(d)

to ensure efficient and correct communication between the
participants and the Commission.

(-a)

to monitor the compliance by participants in the indirect

action with their obligations;

(a)

(b)

(c)

(d)

to verify whether the legal entities identified in the grant
agreement complete the necessary formalities for accession
to the grant agreement;

to receive the Community financial contribution and to dis-
tribute it in accordance with the consortium and grant
agreement;

to keep the records and financial accounts relevant for the
Community financial contribution and to inform the Com-
mission of its distribution in accordance with Articles 23(b)
and 35;

to be intermediary for efficient and correct communication
between the participants and to report regularly to the par-
ticipants and to the Commission on the progress of the
project.

Amendment 67

Article 25

1.
The participants in an indirect action may propose the
addition of a new participant or the removal of an existing par-
ticipant.

1.
The participants in an indirect action may agree to add a
new participant or to remove an existing participant in accor-
dance with the respective provisions established in the consor-
tium agreement.

Any legal entity which joins an ongoing action shall

2.
accede to the grant agreement.

Any legal entity which joins an ongoing action shall

2.
accede to the grant agreement.

3. Where provided for in the grant agreement, the consor-
tium shall publish a competitive call and advertise it widely
using specific information support, particularly Internet sites
on the Seventh Framework Programme, the specialist press and
brochures, and the national contact points set up by the Mem-
ber States and Associated countries for information and sup-
port.

3.
In specific cases, where provided for in the grant agree-
ment, the consortium shall publish a competitive call and adver-
tise it widely using specific information support, particularly
Internet sites on the seventh framework programme, the specia-
list press and brochures, and the national contact points set up
by the Member States and Associated countries for information
and support.

The consortium shall evaluate offers in the light of the criteria
which governed the initial action and with the assistance
of
in
independent experts appointed by the consortium,
accordance with the principles laid down in Articles 14, and
Article 16, respectively.

The consortium shall evaluate offers in the light of the criteria
which governed the initial action and with the assistance of
independent
in
accordance with the principles laid down in Articles 14, and
Article 16, respectively.

consortium,

appointed

experts

the

by

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AMENDMENTS
BY PARLIAMENT

The consortium shall notify any change of its composition
4.
to the Commission, which may object within 45 days of the
notification.

The consortium shall notify any proposed change of its
4.
composition to the Commission, which may object within 45
days of the notification.

Changes in the composition of the consortium associated with
proposals for other changes to the grant agreement which are
not directly related to the change in composition shall be sub-
ject to written approval by the Commission.

Changes in the composition of the consortium associated with
proposals for other changes to the grant agreement which are
not directly related to the change in composition shall be sub-
ject to written approval by the Commission.

Amendment 77
Subsection 5, title

MONITORING OF PROGRAMMES AND INDIRECT ACTIONS
AND COMMUNICATION OF INFORMATION

MONITORING AND EVALUATION OF PROGRAMMES AND
INDIRECT ACTIONS AND COMMUNICATION OF INFORMA-
TION

Amendment 68
Article 26

Monitoring

Monitoring and evaluation

The Commission shall monitor the implementation of indirect
actions on the basis of the periodic progress reports submitted
pursuant to Article 18(4).

The Commission shall monitor the implementation of
1.
indirect actions on the basis of the periodic progress reports
submitted pursuant to Article 18(4).

In particular, the Commission shall monitor the implementation
of the plan for the use and dissemination of foreground, sub-
mitted pursuant to the second subparagraph of Article 19(1).

In particular, the Commission shall monitor the implementation
of the plan for the use and dissemination of foreground, sub-
mitted pursuant to the second subparagraph of Article 19(1).

For those purposes, the Commission may be assisted by inde-
pendent experts appointed in accordance with Article 16.

For those purposes, the Commission may be assisted by inde-
pendent experts appointed in accordance with Article 16.

The Commission shall monitor the Seventh Framework Pro-
gramme, its specific programmes and, where appropriate, pre-
vious framework programmes, with the assistance of indepen-
dent experts appointed in accordance with Article 16.

The Commission shall set up and maintain an informa-
2.
tion system allowing for this monitoring to take place in
an efficient and coherent manner across the Framework
Programme.

Subject to Article 3, the Commission shall publish on any
appropriate medium information on the funded projects.

3.
The monitoring and evaluation referred to in Article 6 of
the Framework Programme Decision shall
include aspects
this Regulation and shall
relating to the application of
address the budgetary impact of the changes in the cost calcu-
lation regime as compared to the sixth Framework Programme
and its effects on the administrative burden for participants.

4.
The Commission shall appoint, in accordance with Arti-
cle 16, independent experts to assist with evaluations required
under the Seventh Framework Programme and its specific
programme, and, as deemed necessary, for the evaluation of
previous Framework Programmes.

In addition, the Commission may set up groups of inde-
5.
pendent experts appointed in accordance with Article 16, to
advise on the design and implementation of Community
research policy

it may set up groups of

In addition,
independent experts
appointed in accordance with Article 16, to advise on the imple-
mentation of Community research policy.

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AMENDMENTS
BY PARLIAMENT

Amendment 69

Article 27, paragraph 1, introductory part

1.
Upon request, the Commission shall make available to any
Member State or Associated country any useful information in
its possession on foreground arising from work carried out in
the context of an indirect action, provided that the following
conditions are met:

Having due regard to Article 3,

1.
the Commission shall,
upon request, make available to any Member State or Associated
country any useful information in its possession on foreground
arising from work carried out in the context of an indirect
action, provided that the following conditions are met:

Amendment 70

Article 28

1. Where any of the following legal entities participates in
an indirect action, it may receive a Community financial contri-
bution:

The following legal entities participating in an indirect

1.
action may receive a Community financial contribution:

(a)

any legal entity established in a Member State or an Asso-
ciated country, or created under Community law,

(a)

any legal entity established in a Member State or an Asso-
ciated country, or created under Community law,

(b) any international European interest organisation,

(b) any international European interest organisation,

2.
In the case of a participating international organisation,
other than an international European interest organisation, or a
legal entity established in a third country, a Community finan-
cial contribution may be granted provided that at least one of
the following conditions is satisfied:

2.
In the case of a participating international organisation,
other than an international European interest organisation, or a
legal entity established in a third country other than an Asso-
ciated country, a Community financial contribution may be
granted provided that at least one of the following conditions
is satisfied:

(a) provision is made to that effect in the specific programmes

(a) provision is made to that effect in the specific programmes

or in the relevant work programme,

or in the relevant work programme,

(b)

it is essential for carrying out the indirect action,

(b)

it is essential for carrying out the indirect action,

(c)

such funding is provided for in a bilateral scientific and
technological agreement or any other arrangement between
the Community and the country in which the legal entity is
established.

(c)

such funding is provided for in a bilateral scientific and
technological agreement or any other arrangement between
the Community and the country in which the legal entity is
established.

Amendment 71

Article 29

The Community financial contribution for grants identi-
1.
fied in part (a) of Annex II to the Seventh Framework Pro-
gramme shall be based on the reimbursement of eligible costs.

The Community financial contribution for grants identified in
part a) of Annex B to the Seventh Framework Programme
shall be based on the reimbursement, in whole or in part, of
eligible costs.

However, the Community financial contribution may take the
form of flat rate financing,
including scale of unit costs, or
lump sum financing, or it may combine the reimbursement of
eligible costs with flat rates and lump sums. The Community
financial contribution may also take the form of scholarships
or prizes.

However, the Community financial contribution may take the
form of flat rate financing,
including scale of unit costs, or
lump sum financing, or it may combine the reimbursement of
eligible costs with flat rates and lump sums. The Community
financial contribution may also take the form of scholarships
or prizes.

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2. While the Community financial contribution shall be
calculated by reference to the cost of the indirect action as a
whole, it shall be based on the reported costs of each partici-
pant.

The work programmes and calls for proposals shall specify the
forms of grants to be used in the actions concerned.

Amendment 72

Article 30

1.

Grants shall be co-financed by the participants.

Indirect actions financed by grants shall be co-financed

1.
by the participants.

The Community financial contribution to reimburse eligible
costs shall not give rise to a profit.

The Community financial contribution to reimburse eligible
costs shall not give rise to a profit.

Receipts shall be taken into consideration for the payment

2.
of the grant at the end of the implementation of the action.

Receipts shall be taken into consideration for the payment

2.
of the grant at the end of the implementation of the action.

3.
In order to be considered eligible, costs incurred for the
implementation of an indirect action shall meet the following
conditions:

3.
In order to be considered eligible, costs incurred for the
implementation of an indirect action shall meet the following
conditions:

(a)

they must be actual;

(a)

they must be actual;

(b)

(c)

(d)

(e)

they must have been incurred during the duration of the
action, with the exception of final reports when provided
for in the grant agreement;

they must have been determined in accordance with the
usual accounting and management principles and practices
of the participant and used for the sole purpose of achiev-
ing the objectives of the indirect action and its expected
results, in a manner consistent with the principles of econ-
omy, efficiency and effectiveness;

(b)

(c)

they must have been incurred during the duration of the
action, with the exception of final reports when provided
for in the grant agreement;

they must have been determined in accordance with the
usual accounting and management principles and practices
of the participant and used for the sole purpose of achiev-
ing the objectives of the indirect action and its expected
results, in a manner consistent with the principles of econ-
omy, efficiency and effectiveness;

they must be recorded in the accounts of the participant
and paid and, in the case of any contribution from third
parties, they must be recorded in the accounts of the third
parties;

(d)

they must be recorded in the accounts of the participant
and,
in the case of any contribution from third parties,
they must be recorded in the accounts of the third parties;

they must be exclusive of non-eligible costs, in particular
identifiable indirect taxes including value added tax, duties,
interest owed, provisions for possible future losses or
charges, exchange losses, cost related to return on capital,
costs declared or incurred, or reimbursed in respect of
another Community project, debt and debt service charges,
excessive or reckless expenditure, and any other cost that
does not meet the conditions referred to in points (a) to (d).

(e)

they must be exclusive of non-eligible costs, in particular
identifiable indirect taxes including value added tax, duties,
interest owed, provisions for possible future losses or
charges, exchange losses, cost related to return on capital,
costs declared or incurred, or reimbursed in respect of
another Community project, debt and debt service charges,
excessive or reckless expenditure, and any other cost that
does not meet the conditions referred to in points (a) to (d).

For the purposes of point (a), average personnel costs may be
used if they are consistent with the management principles and
accounting practices of the participant and do not differ signifi-
cantly from actual costs.

For the purposes of point (a), average personnel costs may be
used if they are consistent with the management principles and
accounting practices of the participant and do not differ signifi-
cantly from actual costs.

3a. While the Community financial contribution shall be
calculated by reference to the cost of the indirect action as a
whole, its reimbursement shall be based on the reported costs
of each participant.

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AMENDMENTS
BY PARLIAMENT

Amendment 73

Article 31, paragraphs 2 and 3

2.
For the coverage of indirect eligible costs, a participant
may opt for a flat-rate of its total direct eligible costs, exclud-
ing its direct eligible costs for subcontracting.

The reimbursement of participants' costs shall be based

2.
on their eligible direct and indirect costs.

In compliance with Article 30(3), point (c), a participant may
use a simplified method of calculation of its indirect eligible
cost at the level of its legal entity if it is in accordance with its
usual accounting and management principles and practices.
Principles to be followed in this respect shall be set out in
the model grant agreement.

3.
The grant agreement may provide that the reimbursement
of indirect eligible costs is to be limited to a maximum percen-
tage of the direct eligible costs, excluding the direct eligible costs
for subcontracting, in particular in the case of coordination and
support actions, and, where appropriate, actions for training
and career development of researchers.

3.
The grant agreement may provide that the reimbursement
of indirect eligible costs is to be limited to a maximum percen-
tage of the direct eligible costs, excluding the direct eligible costs
for subcontracting, in particular in the case of coordination and
support actions, and, where appropriate, actions for training
and career development of researchers.

3a.
By derogation from paragraph 2, for the coverage of
indirect eligible costs a participant may opt for a flat-rate of
its total direct eligible costs, excluding its direct eligible costs
for subcontracting or reimbursement of third parties' costs.

The Commission shall establish appropriate flat rates based
on a close approximation of the real indirect costs concerned,
in accordance with the Financial Regulation and its Imple-
menting Rules.

Non-profit public bodies, secondary and higher educa-
3b.
tion establishments, research organisations and SMEs which
are unable to identify with certainty their real indirect costs
for
the action concerned, when participating in funding
schemes which include research and technological development
and demonstration activities, as referred to in Article 32, may
opt for a flat-rate equal to 60 % of the total direct eligible
costs for grants awarded under calls for proposals closing
before 1 January 2010.

With a view to facilitating a transition to full application of
the general principle referred to in paragraph 2, the Commis-
sion shall establish, for grants awarded under calls closing
after 31 December 2009, an appropriate level of flat rate
which should be an approximation of the real indirect costs
concerned but not lower than 40 %. This will be based on an
evaluation of participation by non-profit public bodies, sec-
ondary and higher education establishments, research organi-
sations and SMEs which are unable to identify with certainty
their real indirect costs for the action concerned.

All flat rates shall be set out in the model grant

3c.
agreement.

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AMENDMENTS
BY PARLIAMENT

Amendment 74

Article 32

1.
For research and technological development activities, the
Community financial contribution may reach a maximum of
50 % of the total eligible costs.

1.
For research and technological development activities, the
Community financial contribution may reach a maximum of
50 % of the total eligible costs.

However,
education establishments, research organisations and SMEs,
may reach a maximum of 75 % of the total eligible costs.

in the case of public bodies, secondary and higher
it

However, in the case of non-profit public bodies, secondary and
research organisations and
higher education establishments,
SMEs, it may reach a maximum of 75 % of the total eligible
costs.

For demonstration activities,

the Community financial
2.
contribution may reach a maximum of 50 % of the total eligible
costs.

For demonstration activities,

the Community financial
2.
contribution may reach a maximum of 50 % of the total eligible
costs.

For activities supported by coordination and support
3.
actions, and actions for the training and career development of
researchers, the Community financial contribution may reach a
maximum of 100 % of the total eligible costs.

For activities supported by coordination and support
3.
actions, and actions for the training and career development of
researchers, the Community financial contribution may reach a
maximum of 100 % of the total eligible costs.

4.
For management and audit certificates, and other activities
not covered by paragraphs 1, 2 and 3, the Community financial
contribution may reach a maximum of 100 % of the total eligi-
ble costs.

4.
For management activities, including certificates on the
financial statements, and other activities not covered by para-
graphs 1, 2 and 3, the Community financial contribution may
reach a maximum of 100 % of the total eligible costs.

The other activities referred to in the first subparagraph include,
inter alia, training in actions that do not fall under the funding
scheme for training and career development of researchers,
coordination, networking, and dissemination.

The other activities referred to in the first subparagraph include,
inter alia, training in actions that do not fall under the funding
scheme for training and career development of researchers,
coordination, networking, and dissemination.

For

5.
the purposes of paragraphs 1 to 4, eligible costs
minus receipts shall be taken into consideration in order to
determine the Community financial contribution.

5.
For the purposes of paragraphs 1 to 4, eligible costs and
receipts shall be taken into consideration in order to determine
the Community financial contribution.

6.
Paragraphs 1 to 5 shall apply, as appropriate, in the case of
indirect actions where flat rate financing or lump sum financing
is used for the whole indirect action.

6.
Paragraphs 1 to 5 shall apply, as appropriate, in the case of
indirect actions where flat rate financing or lump sum financing
is used for the whole indirect action.

Amendment 75

Article 33

Periodic reports shall be submitted to the Commission
1.
regarding eligible costs, financial interest yielded by pre-finan-
cing, and receipts in relation with the indirect action concerned
and, where appropriate, certified by an audit certificate,
in
accordance with the Financial Regulation and the Implementing
Rules.

Periodic reports shall be submitted to the Commission
1.
regarding eligible costs, financial interest yielded by pre-finan-
cing, and receipts in relation with the indirect action concerned
and, where appropriate, a certificate on the financial state-
ments,
in accordance with the Financial Regulation and the
Implementing Rules.

The existence of co-financing in relation with the concerned
action shall be reported and, where appropriate, certified at the
end of the action.

The existence of co-financing in relation with the concerned
action shall be reported and, where appropriate, certified at the
end of the action.

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AMENDMENTS
BY PARLIAMENT

Notwithstanding the Financial Regulation and the
1a.
Implementing rules, a certificate on the financial statements
shall be compulsory only whenever the cumulative amount of
interim payments and balance payments made to a partici-
pant is equal to EUR 375 000 or more for an indirect action.

However, for indirect actions of duration of 2 years or less, not
more than one certificate on the financial statements shall be
requested from the participant, at the end of the project.

Certificates on the financial statements shall not be required
for indirect actions entirely reimbursed by means of lump
sums or flat rates.

2.
In the case of public bodies, research organisations, and
higher and secondary education establishments, an audit certi-
ficate as required under paragraph 1 may be established by a
competent public officer.

2.
In the case of public bodies, research organisations, and
higher and secondary education establishments, a certificate on
the financial statements as required under paragraph 1 may be
established by a competent public officer.

Amendment 76

Article 34

1.
Unless otherwise provided for in the work programme,
the Community financial contribution to Networks of Excellence
shall be in the form of a lump-sum calculated according to the
number of researchers to be integrated in the Network of Excel-
lence and the duration of the action.

The work programme shall provide for the forms of

1.
grants to be used for Networks of Excellence.

The unit value for lump sums paid under paragraph 1

2.
shall be EUR 23 500 per year and per researcher.

2.

(a) Where the Community financial contribution to Net-
works of Excellence takes the form of a lump sum,
it
shall be calculated according to the number of researchers
to be integrated in the Network of Excellence and the dura-
tion of the action. The unit value for lump sums paid shall
be EUR 23 500 per year and per researcher.

That amount shall be adjusted by the Commission in accor-
dance with the Financial Regulation and the Implementing
Rules.

That amount shall be adjusted by the Commission in accor-
dance with the Financial Regulation and the Implementing
Rules.

The work programme shall establish the maximum num-
3.
ber of participants and, where appropriate, the maximum num-
ber of researchers that may be used as the basis for the calcula-
tion of
the maximum lump sum pursuant to paragraph 1.
However, participants over and above the maxima for the estab-
lishment of the financial contribution may participate as appro-
priate.

(b) The work programme shall establish the maximum number
of participants and, where appropriate, the maximum num-
ber of researchers that may be used as the basis for the
calculation of the maximum lump sum. However, partici-
pants over and above the maxima for the establishment of
the financial contribution may participate as appropriate.

The payment of lump sums under paragraph 1 shall be

4.
effected by means of periodic releases.

(c) The payment
releases.

shall be effected by means of periodic

Those periodic releases shall be made according to the assess-
ment of the progressive implementation of the Joint Programme
of Activities through the measurement of integration of research
resources and capacities based on performance indicators nego-
tiated with the consortium and specified in the grant agreement.

Those periodic releases shall be made according to the assess-
ment of the progressive implementation of the Joint Programme
of Activities through the measurement of integration of research
resources and capacities based on performance indicators, nego-
tiated with the consortium and specified in the grant agreement.

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BY PARLIAMENT

Amendment 78

Article 35, paragraph 1

The Community financial contribution shall be paid to the

1.
participants via the coordinator.

The Community financial contribution shall be paid to the

1.
participants via the coordinator without undue delay.

Retained amounts for risk avoidance

Risk avoidance mechanism

Amendment 79

Article 37

The financial responsibility of each participant shall be

-1.
limited to its own debt, subject to paragraphs 1 to 2…

1.
In order to manage the risk associated with non-recovery
of sums due to the Community, the Commission shall establish
and operate a ‘Participant guarantee fund’ (hereinafter ‘the
Fund’) in accordance with the Annex.

Financial interests generated by the Fund shall be added to the
Fund and shall serve exclusively for the purposes set out in
point 3 of the Annex, without prejudice to point 4.

1a.
The contribution to the Fund by a participant to an
indirect action taking the form of a grant shall not exceed
5 % of the Community financial contribution due to the parti-
cipant. At the end of the action the amount contributed to the
Fund shall be returned to the participant, via the coordinator,
subject to paragraph 1b.

1b.
If the interests generated by the Fund are insufficient to
cover sums due to the Community, the Commission may
deduct from the amount to be returned to a participant a
maximum of one per cent of the Community financial contri-
bution to it.

2.
The deduction referred to in paragraph 1b shall not apply
to public bodies, legal entities whose participation in the indir-
ect action is guaranteed by a Member State or an Associated
country, and higher and secondary education establishments;

Depending on the level of risk associated with non-recov-
1.
ery of sums due to the Community,
the Commission may
retain a small percentage of the Community financial contri-
bution to each participant in an indirect action in order to
cover any amounts due and not reimbursed by defaulting par-
ticipants in indirect actions.

2.

Paragraph 1 shall not apply to the following:

(a) public bodies, legal entities whose participation in the indir-
ect action is guaranteed by a Member State or an Asso-
ciated country, and higher and secondary education estab-
lishments;

(b) participants in actions to support training and career

development of researchers.

The types of participant referred to in points (a) and (b) shall
each be responsible for their own debts.

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3.
The amounts retained shall constitute revenue assigned
to the Seventh Framework Programme within the meaning of
Article 18(2) of the Financial Regulation.

4.
At the end of the framework programme an assessment
shall be made of the amounts required to cover outstanding
risks. Any sums in excess of these amounts shall be reim-
bursed to the framework programme and constitute earmarked
revenue.

Thursday 30 November 2006

AMENDMENTS
BY PARLIAMENT

3.
The Commission shall only verify ex-ante the financial
capacity of coordinators, and of participants other than those
referred to in paragraph 2 applying for a Community financial
contribution in an indirect action in excess of EUR 500 000,
unless there are exceptional circumstances when, on the basis
of information already available, there are justified grounds to
doubt the financial capacity of these participants.

The Fund shall be considered as a sufficient guarantee under
the Financial Regulation. No additional guarantee or security
may be requested from participants or imposed on them.

Amendment 80

Article 40

1. Where several participants have jointly carried out work
generating foreground and where their respective share of the
work cannot be ascertained, they shall have joint ownership of
such foreground.

1. Where several participants have jointly carried out work
generating foreground and where their respective share of the
work cannot be ascertained, they shall have joint ownership of
such foreground.

2. Where no joint ownership agreement has been concluded
regarding the allocation and terms of exercising that joint
ownership, each of the joint owners shall be entitled to grant
non-exclusive licenses to third parties, without any right to sub-
licence subject to the following conditions:

They shall establish an agreement regarding the allocation and
terms of exercising that joint ownership in accordance with the
terms of the grant agreement.

2. Where no joint ownership agreement has yet been con-
cluded, each of the joint owners shall be entitled to grant non-
exclusive licenses to third parties, without any right to sub-
licence, subject to the following conditions:

(a) prior notice must be given to the other joint owners;

(a) prior notice must be given to the other joint owners;

(b)

fair and reasonable compensation must be provided to the
other joint owners.

(b)

fair and reasonable compensation must be provided to the
other joint owners.

Upon request, the Commission shall give guidance on
joint ownership
included in the

aspects

to be

2a.
possible
agreement.

Amendment 81

Article 41

The owner of the foreground may transfer it to any

-1.
legal entity, subject to paragraphs 1 to 4 and Article 42.

1. Where a participant transfers ownership of foreground, it
shall pass on its obligations to the assignee, in particular those
relating to the granting of access rights, and dissemination
and use, in accordance with the grant agreement.

1. Where a participant transfers ownership of foreground, it
shall pass on its obligations regarding that foreground to the
assignee, including the obligation to pass them on to any sub-
sequent assignee, in accordance with the grant agreement.

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BY PARLIAMENT

Subject to its obligations concerning confidentiality, where
2.
the participant is required to pass on access rights, it shall give
prior notice to the other participants in the same action,
together with sufficient information concerning the new owner
of the foreground to permit them to exercise their access rights
under the grant agreement.

Subject to its obligations concerning confidentiality, where
2.
the participant is required to pass on access rights, it shall give
prior notice to the other participants in the same action,
together with sufficient information concerning the new owner
of the foreground to permit them to exercise their access rights
under the grant agreement.

However,
the other participants may, by written agreement,
waive their right to individual prior notice in the case of trans-
fers of ownership from one participant to a specifically identi-
fied third party

However,
the other participants may, by written agreement,
waive their right to individual prior notice in the case of trans-
fers of ownership from one participant to a specifically identi-
fied third party.

3.
Following notification in accordance with the first subpar-
agraph of paragraph 2, the other participants may object to any
transfer of ownership on the ground that it would adversely
affect their access rights.

3.
Following notification in accordance with the first subpar-
agraph of paragraph 3, any other participant may object to any
transfer of ownership on the ground that it would adversely
affect their access rights.

rights
Where the other participants demonstrate that
the intended transfer shall not
would be adversely affected,
take place until agreement has been reached between the parti-
cipants concerned.

their

the other participants demonstrate that

Where any of
their
rights would be adversely affected, the intended transfer shall
not take place until agreement has been reached between the
participants concerned.

4. Where appropriate, the grant agreement may provide, by
way of an additional requirement, that the Commission is to be
notified in advance of any intended granting of licences or
transfer of ownership to a third party.

4. Where appropriate, the grant agreement may provide, that
the Commission is to be notified in advance of any intended
transfer of ownership or any intended grant of a licence to a
third party which is established in a third country not associated
to the Seventh Framework Programme.

Amendment 82

Article 42, paragraph 1

The Commission may object to the transfer of ownership of
foreground, or to the granting of a licence regarding foreground
to a legal entity which is established in a third country not
associated to the Seventh Framework Programme, if it considers
this is not in accordance with the interests of developing the
competitiveness of the European economy, the defence interests
of the Member States within the meaning of Article 24 of the
Treaty or is inconsistent with ethical principles. In such cases,
the transfer of ownership or grant of a licence shall not take
place unless the Commission is satisfied that appropriate safe-
guards will be put in place.

The Commission may object to the transfer of ownership of
foreground, or to the granting of a licence regarding fore-
ground, to third parties established in a third country not asso-
ciated to the Seventh Framework Programme, if it considers that
this is not in accordance with the interests of developing the
competitiveness of the European economy, the defence interests
of the Member States within the meaning of Article 24 of the
Treaty or is inconsistent with ethical principles. In such cases,
the transfer of ownership or grant of a licence shall not take
place unless the Commission is satisfied that appropriate safe-
guards will be put in place.

Amendment 83

Article 43, paragraph 1 and paragraph 2, subparagraph 1

1. Where foreground is capable of industrial or commercial
application, its owner shall provide for its adequate and effective
protection in conformity with relevant legislation, and having
due regard to the legitimate interests, particularly the commer-
interests, of the participants in the indirect action con-
cial
cerned.

1. Where foreground is capable of industrial or commercial
application, its owner shall provide for its adequate and effective
protection, having due regard to its legitimate interests and the
legitimate interests, particularly the commercial interests, of the
other participants in the indirect action concerned.

Where a participant invokes legitimate interest, it must, in any
given instance, show that
it would suffer disproportionately
great harm.

Where a participant who is not the owner of the foreground
invokes its legitimate interest,
in any given instance,
show that it would suffer disproportionately great harm.

it must,

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2. Where the owner of foreground does not protect fore-
ground that it owns, and does not transfer it to another parti-
cipant in accordance with Article 41(1) and (2), no dissemina-
tion activities may take place before the Commission has been
informed.

Thursday 30 November 2006

AMENDMENTS
BY PARLIAMENT

2. Where the foreground is capable of industrial or com-
mercial application and its owner does not protect it, and
does not transfer it to another participant, an affiliated entity
established in a Member State or associated country or any
other third party established in a Member State or associated
country along with the associated obligations in accordance
with Article 41, no dissemination activities may take place
before the Commission has been informed.

Amendment 84

Article 44, paragraph 1

All publications, patent applications filed by or on behalf of a
participant, or any other dissemination relating to foreground,
include a statement that the foreground concerned was
shall
generated with the assistance of
from the
Community.

financial support

All publications, patent applications filed by or on behalf of a
participant, or any other dissemination relating to foreground,
shall include a statement, which may include visual means, that
the foreground concerned was generated with the assistance of
financial support from the Community.

Amendment 85

Article 45

The participants shall use the foreground which they own,

1.
or ensure that it is used.

The participants shall use the foreground which they own,

1.
or ensure that it is used.

2.
Each participant shall ensure that the foreground of which
it has ownership is disseminated as swiftly as possible. If it fails
to do so, the Commission may disseminate that foreground pur-
suant to Article 12 of the Treaty.

2.
Each participant shall ensure that the foreground of which
it has ownership is disseminated as swiftly as possible. If it fails
to do so the Commission may disseminate that foreground pur-
suant to Article 12 of the Treaty. The grant agreement may set
out time limits in this respect.

3.
Dissemination activities shall be compatible with intellec-
tual property rights, confidentiality, the legitimate interests of
the owner of the foreground and the defence interests of the
Member States within the meaning of Article 24 of the Treaty.

Dissemination activities

shall be compatible with the
3.
confidentiality
protection of
obligations, and the legitimate interests of the owner of the
foreground and the defence interests of
the Member States
within the meaning of Article 24 of the Treaty.

intellectual property

rights,

Prior notice of any dissemination activity shall be given to

4.
the other participants concerned.

Prior notice of any dissemination activity shall be given to

4.
the other participants concerned.

Following notification, any of those participants may object if it
considers that its legitimate interests in relation to its fore-
ground could suffer disproportionately great harm.
In such
cases,
take place unless
appropriate steps are taken to safeguard these legitimate
interests.

the dissemination activity may not

Following notification, any of those participants may object if it
considers that its legitimate interests in relation to its fore-
ground or background could suffer disproportionately great
harm. In such cases, the dissemination activity may not take
place unless appropriate steps are taken to safeguard these legit-
imate interests.

C 316 E/250

Official Journal of the European Union

EN

22.12.2006

Thursday 30 November 2006

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

Amendment 86

Article 47, paragraph 5

Participants in the same action shall inform each other as
5.
soon as possible of any limitation to the granting of access
rights to background, or of any other restriction which might
substantially affect the granting of access rights.

5. Without prejudice to Articles 48 and 49 and the grant
agreement, participants in the same action shall
inform each
other as soon as possible of any limitation to the granting of
access rights to background, or of any other restriction which
might substantially affect the granting of access rights.

Amendment 87

Article 49

1.
Participants in the same indirect action shall enjoy access
rights to foreground, if it is needed to use their own foreground.

1.
Participants in the same indirect action shall enjoy access
rights to foreground, if it is needed to use their own foreground.

Such access rights shall be granted either under fair and reason-
able conditions, or royalty-free.

Subject to agreement, such access rights shall be granted either
under fair and reasonable conditions, or be royalty-free.

Participants in the same indirect action shall enjoy access
2.
rights to background,
if it is needed to use their own fore-
ground provided that the participant concerned is entitled to
grant them.

Participants in the same indirect action shall enjoy access
2.
rights to background,
if it is needed to use their own fore-
ground provided that the participant concerned is entitled to
grant them.

Such access rights shall be granted either under fair and reason-
able conditions, or royalty-free.

Subject to agreement, such access rights shall be granted either
under fair and reasonable conditions, or be royalty-free.

2a.
An affiliated entity established in a Member State or
associate country shall also have access rights, referred to in
paragraphs 1 and 2, to foreground or background under same
conditions as the participant to which it is affiliated, unless
otherwise provided for in the grant agreement or consortium
agreement.

A request for access rights under paragraphs 1 or 2 may

3.
be made up to one year after either of the following events:

3.
A request for access rights under paragraphs 1, 2 and 2a
may be made up to one year after either of the following events:

(a)

the end of the indirect action;

(a)

the end of the indirect action;

(b)

termination of participation by the owner of
ground or foreground concerned.

the back-

(b)

termination of participation by the owner of
ground or foreground concerned.

the back-

However, the participants concerned may agree on a different
time-limit.

However, the participants concerned may agree on a different
time-limit.

22.12.2006

EN

Official Journal of the European Union

C 316 E/251

TEXT PROPOSED
BY THE COMMISSION

Thursday 30 November 2006

AMENDMENTS
BY PARLIAMENT

Amendment 88

Article 51, paragraph 1a (new)

The joint undertaking referred to in paragraph 1, point (c),
shall be set up for the purpose of managing and administer-
ing the European contribution to the ITER international
agreement that will ratify the setting up of the ITER organi-
sation, together with additional activities concerning the con-
struction of ITER, which is provided for in the specific pro-
gramme implementing the Seventh Framework Programme of
the European Atomic Energy Community for nuclear research
and training activities (2007-2011). All other activities under
the thematic area ‘fusion energy’ provided for under this spe-
cific programme shall be implemented and managed separately
from the joint undertaking referred to in point (c) thereby
making it possible to maintain the integrated approach and
the close involvement of the fusion associations.

Amendment 89

Annex (new)

ANNEX

Participant guarantee fund

1.
The Fund will be managed by the Community repre-
sented by the Commission acting as executive agent on behalf
of the participants, under conditions to be established by the
model grant agreement.

The Commission will entrust the financial management of the
Fund either to the European Investment Bank or, in accor-
dance with Article 13(b), to an appropriate financial institu-
tion (hereinafter the ‘depository bank’). The depository bank
shall manage the Fund pursuant to a brief by the Commis-
sion.

The Commission may offset, from the initial prefinan-
2.
cing it will pay to the consortium, the participants' contribu-
tion to the Fund, and pay it on their behalf to the Fund.

3. Where amounts are due to the Community by a partici-
pant, the Commission may, without prejudice to penalties
which may be imposed on the defaulting participant in accor-
dance with the Financial Regulation either:

(a) order the depositary bank to directly transfer the amount
due from the Fund to the coordinator of the indirect
action if it is still on-going and the remaining partici-
pants agree to implement it to the identical regarding its
in accordance with Article 17(4). Amounts
objectives,
transferred from the Fund will be regarded as Community
financial contribution; or

(b) recover effectively the said amount from the Fund should
the indirect action be terminated or already completed.

C 316 E/252

Official Journal of the European Union

EN

22.12.2006

Thursday 30 November 2006

TEXT PROPOSED
BY THE COMMISSION

AMENDMENTS
BY PARLIAMENT

The Commisson will emit to the benefit of the Fund a recovery
order against that participant. The Commission may adopt to
that end a recovery decision in accordance with the Financial
Regulation.

The amounts recovered from the Fund during the
4.
Seventh Framework Programme will
revenue
assigned to it within the meaning of Article 18(2) of the
Financial Regulation.

constitute

Once the implementation of all grants under the Seventh
Framework Programme is complete, any sums outstanding
from the Fund will be recovered by the Commission and
entered into the budget of the Community, subject to decisions
on the Eighth Framework Programme.

P6_TA(2006)0518

Specific
2007-2013) *

Programme

‘People’

(Seventh RTDD Framework

Programme,

European Parliament legislative resolution on the proposal for a Council decision concerning the
specific programme ‘People’
implementing the 7th Framework Programme (2007-2013) of the
technological development and demonstration activities
European Community for research,

(COM(2005)0442 — C6-0383/2005 — 2005/0187(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2005)0442) (1) and the amended

proposal (COM(2005)0442/2) (1),

— having regard to Article 166 of the EC Treaty, pursuant to which the Council consulted Parliament

(C6-0383/2005),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Industry, Research and Energy and the opinions of the
Committee on Budgets, the Committee on Employment and Social Affairs, the Committee on Culture
and Education and the Committee on Women's Rights and Gender Equality (A6-0360/2006),

1.

Approves the Commission proposal as amended;

2.
Considers that the indicative financial reference amount indicated in the legislative proposal must be
compatible with the ceiling of heading 1a of the financial framework for 2007-2013 and points out that
the annual amount will be decided within the annual budgetary procedure in accordance with the provi-
sions of point 38 of the Interinstitutional Agreement between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial management of 17 May 2006 (2);

3.

Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

(1) Not yet published in OJ.
(2) OJ C 139, 14.6.2006, p. 1.