Corrigendum to Council Regulation (Euratom) No 1908/2006 of 19 December 2006 laying down the rules for the participation of undertakings, research centres and universities in action under the seventh framework programme of the European Atomic Energy Community and for the dissemination of research results (2007 to 2011) ( OJ L 400, 30.12.2006 )
Date: 2007-02-22
Institutions: Council of the European Union
Subjects: EAEC, EU financing, EU programme, dissemination of information, research body, research project, research results, type of business, university

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CORRIGENDA

Corrigendum to Council Regulation (Euratom) No 1908/2006 of 19 December 2006 laying down the rules for the
participation of undertakings, research centres and universities in action under the seventh framework
the European Atomic Energy Community and for the dissemination of research results
programme of

(2007 to 2011)

(Official Journal of the European Union L 400 of 30 December 2006)

Regulation (Euratom) No 1908/2006 should read as follows:

COUNCIL REGULATION (EURATOM) No 1908/2006

of 19 December 2006

laying down the rules for the participation of undertakings, research centres and universities in action
under the seventh framework programme of the European Atomic Energy Community and for the
dissemination of research results (2007 to 2011)

THE COUNCIL OF THE EUROPEAN UNION,

(2)

Having regard to the Treaty establishing the European Atomic
Energy Community, and in particular Articles 7 and 10,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament (1),

(3)

Having regard to the opinion of the European Economic and
Social Committee (2),

Having regard to the opinion of the Court of Auditors (3),

(4)

Whereas:

The seventh framework programme is implemented in
accordance with Council Regulation (EC, Euratom)
No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European
Communities (5), hereinafter ‘the Financial Regulation’, and
Commission Regulation (EC, Euratom) No 2342/2002 (6)
laying down detailed rules for the implementation of the
Financial Regulation, hereinafter ‘the Implementing Rules’.

The seventh framework programme is also implemented in
accordance with the State aid rules, in particular the rules
on State aid for research and development, currently the
Community Framework for State Aid for Research and
Development (7).

Treatment of confidential data is governed by all
the
relevant Community legislation, including the institutions'
internal rules such as Commission Decision 2001/844/EC,
ECSC, Euratom of 29 November 2001 amending its
internal Rules of Procedure (8) regarding provisions of
security.

(1)

The seventh framework programme of
the European
Atomic Energy Community was adopted by Council
Decision 2006/970/Euratom of 18 December 2006
concerning the seventh framework programme of
the
European Atomic Energy Community for nuclear research
and training activities
the
responsibility of the Commission to ensure the implemen-
tation of
the framework programme and its specific
programmes, including the related financial aspects.

(2007 to 2011) (4).

is

It

(5)

should provide

and universities

The rules for the participation of undertakings, research
centres
coherent,
comprehensive 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.

a

(1) Opinion delivered on 30 November 2006 (not yet published in the

Official Journal).

(2) Opinion of 5 July 2006 (not yet published in the Official Journal).

Opinion delivered following non-compulsory consultation.

(3) OJ C 203, 25.8.2006, p. 1. Opinion delivered on its own initiative.
(4) OJ L 400, 30.12.2006, p. 60. Decision as corrected on p. 21 of this

Official Journal.

(5) OJ L 248, 16.9.2002, p. 1.
(6) OJ L 357, 31.12.2002, p. 1. Regulation as last amended by
Regulation (EC, Euratom) No 1248/2006 (OJ L 227, 19.8.2006, p.
3).

(7) OJ C 45, 17.2.1996, p. 5.
(8) OJ 317, 3.12.2001, p. 1. Decision as last amended by Decision

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

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(6)

(7)

(8)

(9)

(10)

(11)

rules

should also facilitate

exploitation of
The
intellectual 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.

the

The seventh framework programme should promote
participation from the outermost regions of the Commu-
nity, as well as from a wide range of undertakings, research
centres and universities.

The definition of micro, small and medium-sized enter-
prises (SMEs) provided in Commission Recommendation
2003/361/EC of 6 May 2003 (1) should apply, for reasons
of coherence and transparency.

It is necessary to establish the minimum conditions for
participation, both as a general rule and with regard to the
specificities of indirect actions under the seventh frame-
work programme. In particular, rules should be laid down
regarding the number of participants and their place of
establishment.

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.

International organisations dedicated to developing cooper-
ation in the field of nuclear research and training in Europe
and largely made up of Member States or associated
countries should be encouraged to participate in the
seventh framework programme.

(12) The participation of

legal entities established in third
countries and the participation of international organisa-
tions should also be envisaged, as enshrined in Article 101
of the Treaty. However, it is appropriate to require that such
participation be justified in terms of
the enhanced
contribution thereby made to the objectives sought under
the seventh framework programme.

(13) Pursuant to Article 198 of the Treaty,

Member States' non-European territories under
jurisdiction are
programme.

eligible

the

for

legal entities of
their
seventh framework

(14)

In line with the objectives mentioned above, it is necessary
for providing
to establish the terms and conditions
Community funding to participants in indirect actions.

(15) 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,
therefore, address the budgetary impact of this change in

(16)

(17)

(18)

particular as regards its effect on the administrative burden
for participants.

It is necessary for the Commission to establish further rules
and procedures, in addition to those provided for in the
Financial Regulation and its Implementing Rules and this
Regulation,
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.

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 frame-
work programme. Such rules should strike the right balance
between protecting the Community's financial interests and
simplifying and facilitating the participation of legal entities
in the framework programme.

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
European Communities' financial interests (2), govern, inter
alia, the protection of the Community's financial interests,
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, pursuant to Article 160c of the
Treaty.

(19)

It is necessary that the Community financial contribution
reaches the participants without undue delay.

(20) The agreements concluded for each action should provide
for supervision and financial control by the Commission, or
any representative authorised by the Commission, as well as
audits by the Court of Auditors and on-the-spot checks
carried out by the European Anti-Fraud Office (OLAF), in
accordance with the procedures laid down in Council
Regulation (Euratom, EC) No 2185/96 of 11 November
1996 concerning on-the-spot checks and inspections
carried out by the Commission in order to protect the
European Communities' financial
interests against fraud
and other irregularities (3).

seventh framework programme and its

(21) The Commission should monitor both the indirect actions
carried out under the seventh framework programme and
the
specific
programmes. 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.

(1) OJ L 124, 20.5.2003, p. 36.

(2) OJ L 312, 23.12.1995, p. 1.
(3) OJ L 292, 15.11.1996, p. 2.

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(22) The seventh framework programme should reflect and
promote the general principles laid down in the Charter for
Researchers and Code of Conduct for the Recruitment of
Researchers (1), while respecting their voluntary character.

(23) The rules governing the dissemination of research results
should ensure that, where appropriate, the participants
protect the intellectual property generated in actions, and
use and disseminate those results.

(24) While respecting the rights of the owners of intellectual
property, those rules should be designed to ensure that
participants and, where appropriate, their affiliated entities
established 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.

(25) The obligation established in the sixth framework pro-
gramme for certain participants to take financial respon-
sibility 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 Com-
munity's financial interests in a manner appropriate for the
framework programme.

(26) Community contributions to a joint undertaking set up
pursuant to Articles 45 to 51 of the Treaty do not fall
within the scope of this Regulation.

(27) This Regulation respects

rights and
observes the principles recognised in particular by the
Charter of Fundamental Rights of the European Union.

the fundamental

(28) The Community may provide

as
established in the Financial Regulation, inter alia, by means
of:

financial

support,

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Subject matter

This Regulation lays down the rules for the participation of
undertakings, research centres and universities and other legal
entities in actions undertaken by one or more participants by
means of funding schemes identified in part (a) of Annex II to
Decision 2006/970/Euratom establishing the seventh framework
programme, hereinafter ‘indirect actions’.

It also lays down rules, in accordance with those laid down in the
Financial Regulation and the Implementing Rules, concerning
the Community financial contribution to participants in indirect
actions under the seventh framework programme.

As regards the results of research carried out under the seventh
framework programme, this Regulation lays down rules for the
disclosure of foreground by any appropriate means other than
that resulting from the formalities for protecting it, and including
foreground in any medium, hereinafter
the publication of
‘dissemination’.

In addition, it lays down rules for the direct or indirect utilisation
of foreground in further research activities other than those
covered by the indirect action concerned, or for developing,
creating and marketing a product or process, or for creating and
providing a service, hereinafter ‘use’.

In respect of both foreground and background, this Regulation
lays down rules concerning licences and user rights thereto,
hereinafter ‘access rights’.

Article 2

Definitions

(a)

public procurements, in the form of a price for goods
or services established by contract and selected on the
basis of calls for tender;

(b)

grants;

(c)

subscriptions to an organisation in the form of a
membership fee;

For the purposes of this Regulation, the following definitions
shall apply in addition to those set out
in the Financial
Regulation and the Implementing Rules:

1.

‘legal entity’ means any natural person, or any legal person
created under the national law of its place of establishment,
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 obligations. In the
case of natural persons, references to establishment are
deemed to refer to habitual residence;

(d)

honoraria for independent experts identified in Article
16 of this Regulation.

2.

(1) OJ L 75, 22.3.2005, p. 67.

‘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, control taking
any of the forms set out in Article 7(2);

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3.

4.

5.

6.

7.

‘fair and reasonable conditions’ means appropriate condi-
tions including possible financial terms taking into 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;

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
pertaining 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;

‘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 Regulation;

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

8.

‘third country’ means a State that is not a Member State;

9.

10.

11.

‘associated country’ means a third country which is party to
an international agreement with the Community, under the
terms or on the basis of which it makes a financial
contribution to all or part of
the seventh framework
programme;

‘international organisation’ means an intergovernmental
organisation, other than the European Community, which
has legal personality under international public law, as well
as any specialised agency set up by such an international
organisation;

‘international European interest organisation’ means an
international organisation, the majority of whose members
are Member States or associated countries, and whose
principal objective is to promote scientific and technolo-
gical cooperation in Europe;

12.

‘public body’ means any legal entity established as such by
national law, and international organisations;

14.

‘work programme’ means a plan adopted by the Commis-
sion for the implementation of a specific programme as
identified in Article 2 of Decision 2006/970/Euratom;

15.

‘funding schemes’ mean the mechanisms for the Commu-
nity funding of indirect actions as established in part (a) of
Annex II to Decision 2006/970/Euratom.

Article 3

Confidentiality

Subject to the conditions established in the grant agreement,
appointment
the Commission and the
participants shall keep confidential any data, knowledge and
documents communicated to them as confidential.

letter or contract,

CHAPTER II

PARTICIPATION

Article 4

Specific rules for fusion energy research

The rules set out in this Chapter apply without prejudice to
specific rules for activities under the thematic area ‘Fusion energy
research’ set out in Chapter IV.

SECTION 1

Minimum conditions

Article 5

General principles

1. Any undertaking, university or research centre or other legal
entity, whether established in a Member State or associated
country, or in a third country, may participate in an indirect
action provided that the minimum conditions laid down in this
including any conditions specified
Chapter have been met,
pursuant to Article 11.

However,
in the case of an indirect action as referred to in
Articles 6 or 8, under which it is possible for the minimum
conditions to be met without the participation of a legal entity
established in a Member State, the attainment of the objectives
laid down in Articles 1 and 2 of the Treaty must thereby be
enhanced.

13.

‘SMEs’ mean micro, small and medium-sized enterprises
within the meaning of Recommendation 2003/361/EC in
the version of 6 May 2003;

2. The Joint Research Centre of the European Commission,
hereinafter ‘the JRC’, may participate in indirect actions on the
same footing and with the same rights and obligations as a legal
entity established in a Member State.

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Article 6

Minimum conditions

The first paragraph shall not apply in the case of actions whose
purpose is to coordinate research activities.

1. The minimum conditions for indirect actions shall be the
following:

(a)

at least three legal entities must participate, each of which is
established in a Member State or associated country, and no
two of which are established in the same Member State or
associated country;

Article 9

Sole participants

Where the minimum conditions for an indirect action are
satisfied by a number of legal entities, which together form one
legal entity, the latter may be the sole participant in an indirect
action, provided that it is established in a Member State or
associated country.

(b)

all three legal entities must be independent of each other in
accordance with Article 7.

Article 10

2.
For the purposes of point (a) of paragraph 1, where one of
the participants is the JRC, or an international European interest
organisation or an entity created under Community law, it shall
be deemed to be established in a Member State or associated
country other than any Member State or associated country in
which another participant in the same action is established.

Article 7

Independence

1. Two legal entities shall be regarded as independent of each
other where neither is under the direct or indirect control of the
other or under the same direct or indirect control as the other.

For the purposes of paragraph 1, control may in particular

2.
take either of the following forms:

(a)

the direct or indirect holding of more than 50 % of the
nominal value of the issued share capital in the legal entity
concerned, or of a majority of the voting rights of the
shareholders or associates of that entity;

(b)

the direct or indirect holding, in fact or in law, of decision-
making powers in the legal entity concerned.

3. However, the following relationships between legal entities
shall not in themselves be deemed to constitute controlling
relationships:

(a)

the same public investment corporation,
institutional
investor or venture-capital company has a direct or indirect
holding of more than 50 % of the nominal value of the
issued share capital or a majority of voting rights of the
shareholders or associates;

(b)

the legal entities concerned are owned or supervised by the
same public body.

Article 8

Coordination and support actions, and training and career
development of researchers

International organisations and legal entities established in
third countries

Participation in indirect actions shall be open to international
organisations and legal entities established in third countries after
the minimum conditions laid down in this chapter have been
met, as well as any conditions
specified in the specific
programmes or relevant work programmes.

Article 11

Additional conditions

In addition to the minimum conditions laid down in this chapter,
specific programmes or work programmes may lay down
conditions regarding the minimum number of participants.

They may also lay down, according to the nature and objectives
of the indirect action, additional conditions to be met as regards
type of participant and, where appropriate, place of establish-
ment.

SECTION 2

Procedures

S u b s e c t i o n 1

C a l l s f o r p r o p o s a l s

Article 12

Calls for proposals

1. The Commission shall issue calls for proposals for indirect
actions in accordance with the requirements laid down in the
relevant specific programmes and work programmes.

In addition to the publicity specified in the Implementing Rules,
the Commission shall publish calls for proposals in the Internet
pages of the seventh framework programme, through specific
information channels, and at the national contact points set up
by the Member States and the associated countries.

For coordination and support actions, and actions in favour of
training and career development of researchers, the minimum
condition shall be the participation of one legal entity.

2. Where appropriate, the Commission shall specify in the call
the participants need not establish a
for proposals
consortium agreement.

that

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

Article 13

Exceptions

The Commission shall not issue calls for proposals for the
following:

(a)

(b)

(c)

(d)

coordination and support actions to be carried out by legal
entities identified in the specific programmes or in the work
programmes when the specific programme permits the
work programmes to identify beneficiaries, in accordance
with the Implementing Rules;

coordination and support actions consisting of a purchase
to the rules on public
of goods or services subject
procurement set out in the Financial Regulation;

coordination and support actions relating to the appoint-
ment of independent experts;

actions, where

other
Regulation or the Implementing Rules.

so provided by the Financial

S u b s e c t i o n 2

E v a l u a t i o n a n d s e l e c t i o n o f p r o p o s a l s a n d
a w a r d o f g r a n t s

2. Where a call for proposals specifies a two-stage submission
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.

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
lay down detailed rules for the two-stage
particular,
procedure for submission (including as regards the scope and
nature of the first stage proposal as well as those of the complete
second stage proposal), and rules for the two-step evaluation
procedure.

it shall

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
participants 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.

Article 14

Article 16

Evaluation, selection and award

Appointment of independent experts

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.

1. The Commission shall appoint independent experts to assist
with evaluations of proposals.

The criteria will be those of excellence, impact and implementa-
tion. 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.

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

Proposals shall be ranked according to the evaluation results.

3.
Funding decisions shall be made on the basis of this ranking.

Article 15

Submission, evaluation, selection and award procedures

1. Where a call for proposals specifies a two-step evaluation
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.

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

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 classified
information, the appropriate security clearance shall be required
for nomination.

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

such as national

The Commission may,
individual with the appropriate skills from outside the lists.

if deemed appropriate,

select any

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

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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

4. The Commission shall adopt a model appointment letter,
hereinafter
include a
declaration that
the independent expert has no conflict of
interest 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.

8. The Commission shall set out
participants.

redress procedures for

Article 18

General provisions for inclusion in grant agreements

1. The grant agreement shall establish the rights and obliga-
in
tions of the participants with regard to the Community,
accordance with Decision 2006/970/Euratom, this Regulation,
the Financial Regulation, and the Implementing Rules, and in
accordance with the general principles of Community law.

5. The Commission shall publish once a year
in any
appropriate medium the list of the independent experts that
have assisted it for the Framework Programme and each specific
programme.

It shall also establish, in accordance with the same conditions,
the rights and obligations of
legal entities who become
participants when the indirect action is ongoing.

S u b s e c t i o n 3

I m p l e m e n t a t i o n a n d g r a n t a g r e e m e n t s

2. Where appropriate, the grant agreement shall specify which
part of the Community financial contribution will be based on
the reimbursement of eligible costs, and which part will be based
on flat rates (including scale of unit costs) or lump-sums.

Article 17

General

3. The grant agreement shall specify which changes in the
the consortium are to require the prior
composition of
publication of a competitive call.

1. The participants shall
implement the indirect action and
shall take all necessary and reasonable measures to that end.
Participants in the same indirect action shall implement the work
jointly and severally towards the Community.

4. The grant agreement shall require the submission to the
reports concerning the
Commission of periodic progress
implementation of the indirect action concerned.

2. The Commission shall draw up, on the basis of the model
provided for in Article 18(8) and taking into account
the
characteristics of
the funding scheme concerned, a grant
agreement between the Community and the participants.

5. Where appropriate, the grant agreement may provide that
the Commission is to be notified in advance of any intended
transfer of ownership of foreground to a third party.

Participants shall make no commitments incompatible with

3.
the grant agreement.

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.

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

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

7. Where provided for in the grant agreement, the participants
in the indirect action may subcontract certain elements of the
work to be carried out to third parties.

6. Where the grant agreement requires participants to carry out
activities that benefit third parties, the participants shall advertise
this widely and identify, evaluate and select
third parties
transparently, fairly and impartially. If provided for in the work
programme, the grant agreement shall establish criteria for the
selection of such third parties. The Commission reserves the
right to object to the selection of the third parties.

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

shall

reflect

8. The model grant agreement
the general
principles laid down in the European Charter for Researchers
and the Code of Conduct for the Recruitment of Researchers. It
shall address, as appropriate, synergies with education at all
levels; readiness and capacity to foster dialogue and debate on
scientific issues and research results with a broad public beyond
the research community; activities to increase the participation
and role of women in research; and activities addressing socio-
economic aspects of the research.

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9. The model grant agreement shall provide for supervision
and financial control by the Commission or any representative
authorised by it, and the Court of Auditors.

Article 22

Signature and accession

10. The grant agreement may lay down time limits for
participants to give the various notifications referred to in this
Regulation.

Article 19

Provisions concerning access rights, use and dissemination

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.

For those purposes,
Commission of a plan for
foreground.

it shall require the submission to the
the use and dissemination of

2. The grant agreement may specify the conditions under
which the participants may object to a technological audit of the
use and dissemination of the foreground being carried out by
certain authorised representatives of the Commission.

Article 20

Provisions concerning termination

The grant agreement shall specify the grounds for its termina-
tion, in whole or in part, in particular for non-compliance with
this Regulation, non-performance or breach, as well as the
consequences for participants of any non-compliance on the part
of another participant.

Article 21

Specific provisions

The grant agreement shall enter into force upon signature by the
coordinator and the Commission.

It shall apply to each participant that has formally acceded
thereto.

S u b s e c t i o n 4

C o n s o r t i a

Article 23

Consortium agreements

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

(a)

the internal organisation of the consortium;

(b)

the distribution of the Community financial contribution;

(c)

(d)

(e)

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

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

liability, indemnification and confidentiality arrangements
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.

Article 24

Coordinator

1.
In the case of indirect actions to support existing research
infrastructures and, where applicable, new research infrastruc-
tures, the grant agreement may lay down specific provisions
relating to confidentiality, publicity and access rights and
commitments that might affect users of the infrastructure.

In the case of indirect actions to support training and career
2.
development of researchers, the grant agreement may lay down
specific provisions on confidentiality, access rights and commit-
ments relating to the researchers benefiting from the action.

3. To safeguard the defence interests of the Member States
within the meaning of Article 24 of
the Treaty, the grant
agreement may lay down, where appropriate, specific provisions
on confidentiality, classification of information, access rights,
transfer of ownership of foreground and the use thereof.

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 Regulation, the
Financial Regulation, the Implementing Rules, and the grant
agreement:

(a)

(b)

(c)

to monitor the point compliance by participants in the
indirect action with their obligations;

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
distribute it in accordance with the consortium and grant
agreement;

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(d)

(e)

to keep the records and financial accounts relevant for the
Community financial contribution and to inform the
Commission of its distribution in accordance with Article
23(1)(b) and Article 35;

In particular, the Commission shall monitor the implementation
of
foreground,
submitted pursuant to the second subparagraph of Article 19(1).

the plan for the use and dissemination of

to be an intermediary for efficient and correct commu-
nication between the participants and to report regularly to
the participants and to the Commission on the progress of
the project.

2. The coordinator shall be identified in the grant agreement.

those purposes,

For
independent experts appointed in accordance with Article 16.

the Commission may be assisted by

2. The Commission shall set up and maintain an information
system allowing for this monitoring to take place in an efficient
and coherent manner across the framework programme.

The appointment of a new coordinator shall require the written
approval of the Commission.

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

Article 25

Changes in the consortium

1. The participants in an indirect action may agree to add a
new participant or
in
accordance with the respective provisions established in the
consortium agreement.

to remove an existing participant

2. Any legal entity which joins an ongoing action shall accede
to the grant agreement.

3.
In specific cases, where provided for in the grant agreement,
the consortium 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
Member States and associated countries for information and
support.

3. The monitoring and evaluation referred to in Article 6 of
Decision 2006/970/Euratom shall include aspects relating to the
application of this Regulation and shall address the budgetary
impact of the changes in the cost calculation 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 Article
16, independent experts to assist with evaluations required under
the seventh framework programme and its specific programme,
and, as deemed necessary,
the evaluation of previous
for
framework programmes.

In addition,

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

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

Article 27

Information to be made available

4. The consortium shall notify any proposed change of its
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 subject
to written approval by the Commission.

1. Having due regard to Article 3, 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:

(a)

the information concerned is relevant to public policy;

S u b s e c t i o n 5

(b)

the participants have not provided sound and sufficient
reasons for withholding the information concerned.

M o n i t o r i n g a n d e v a l u a t i o n o f p r o g r a m m e s
a n d i n d i r e c t a c t i o n s a n d c o m m u n i c a t i o n o f
i n f o r m a t i o n

Article 26

Monitoring and evaluation

2. Under no circumstances shall the provision of information
pursuant to paragraph 1 be deemed to transfer to the recipient
any rights or obligations of
the
participants.

the Commission or of

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

the recipient shall

However,
treat any such information as
confidential unless it becomes public or is made available
publicly by the participants, or unless it was communicated to
the Commission without restrictions on its confidentiality.

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SECTION 3

Community financial contribution

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

S u b s e c t i o n 1

2. Receipts shall be taken into consideration for the payment of
the grant at the end of the implementation of the action.

E l i g i b i l i t y f o r f u n d i n g a n d f o r m s o f g r a n t s

Article 28

Eligibility for funding

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

1. The following legal entities participating in an indirect action
may receive a Community financial contribution:

(a)

they must be actual;

(a)

any legal entity established in a Member State or an
associated country, or created under Community law;

(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 other
than an
associated 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
or in the relevant work programme;

(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.

Article 29

Forms of grants

The Community financial contribution for grants identified in
part (a) of Annex II to Decision 2006/970/Euratom 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.

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

Article 30

Reimbursement of eligible costs

(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;

the participant and used for

they must have been determined in accordance with the
usual accounting and management principles and practices
the sole purpose of
of
achieving the objectives of
the indirect action and its
expected results, in a manner consistent with the principles
of economy, efficiency and effectiveness;

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).

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
significantly from actual costs.

4. 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.

Article 31

Direct eligible costs and indirect eligible costs

Indirect actions financed by grants shall be co-financed by

1.
the participants.

1.
Eligible costs shall be composed of costs attributable directly
to the action, hereinafter ‘direct eligible costs’ and, where
applicable, of costs which are not attributable directly to the

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action, but which have been incurred in direct relationship with
the direct eligible costs attributed to the action, hereinafter
‘indirect eligible costs’.

Article 32

Upper funding limits

2. The reimbursement of participants' costs shall be based on
their eligible direct and indirect costs.

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

In compliance with Article 30(3)(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 percentage
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.

4. 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
in
accordance with the Financial Regulation and its Implementing
Rules.

indirect costs concerned,

5. Non-profit public bodies, secondary and higher education
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 demonstra-
tion 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 Commission
for grants awarded under calls closing after
shall establish,
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, secondary and higher
research organisations and SMEs
education establishments,
which are unable to identify with certainty their real indirect
costs for the action concerned.

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

For demonstration activities,

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

For activities

3.
supported by coordination and support
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 management activities,

4.
including certificates on the
statements, and other activities not covered by
financial
paragraphs 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.

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.

Article 33

Reporting and audit of eligible costs

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

6. All flat rates shall be set out in the model grant agreement.

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

However, for indirect actions of duration of two 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.

3.
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.

Article 34

Networks of excellence

1. The work programme shall provide for the forms of grants
to be used for networks of excellence.

2. Where the Community financial contribution to networks
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 duration 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 accordance
with the Financial Regulation and the Implementing Rules.

3. The work programme shall establish the maximum number
of participants and, where appropriate, the maximum number of
researchers that may be used as the basis for the calculation of
the maximum lump sum. However, participants over and above
the maxima for the establishment of the financial contribution
may participate as appropriate.

4. The payment shall be effected by means of periodic releases.

the progressive implementation of

shall be made according to the
Those periodic releases
assessment of
the Joint
Programme of Activities through the measurement of integration
of research resources and capacities based on performance
indicators, negotiated with the consortium and specified in the
grant agreement.

S u b s e c t i o n 2

Payment, distribution, recovery and guarantees

Article 35

Payment and distribution

2. The coordinator shall keep records making it possible to
determine at any time what portion of the Community funds has
been distributed to each participant.

The coordinator shall communicate that information to the
Commission upon request.

Article 36

Recovery

The Commission may adopt a recovery decision in accordance
with the Financial Regulation.

Article 37

Risk avoidance mechanism

1. The financial responsibility of each participant shall be
limited to its own debt, subject to paragraphs 2 to 5.

2.
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 thereto.

3. 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 participant. At the
end of the action the amount contributed to the Fund shall be
returned to the participant, via the coordinator, subject
to
paragraph 4.

4.
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 contribution to it.

5. The deduction referred to in paragraph 4 shall not apply to
public bodies, legal entities whose participation in the indirect
action is guaranteed by a Member State or an associated country,
and higher and secondary education establishments;

6. The Commission shall only verify ex ante the financial
capacity of coordinators, and of participants other than those
referred to in paragraph 5 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
there are justified grounds to
information already available,
doubt the financial capacity of these participants.

1. The Community financial contribution shall be paid to the
participants via the coordinator without undue delay.

7. 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.

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CHAPTER III

DISSEMINATION AND USE, AND ACCESS RIGHTS

2. Where no joint ownership agreement has yet been
concluded, 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:

SECTION 1

Foreground

Article 38

Specific rules for fusion energy research

The rules set out in this Chapter apply without prejudice to the
specific rules for activities under the thematic area ‘Fusion energy
research’ set out in Chapter IV of this regulation.

S u b s e c t i o n 1

O w n e r s h i p

Article 39

Ownership of foreground

(a)

prior notice must be given to the other joint owners;

(b)

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

the Commission shall give guidance on
3. Upon request,
possible aspects to be included in the joint ownership agreement.

Article 41

Transfer of foreground

1. The owner of the foreground may transfer it to any legal
entity, subject to paragraphs 2 to 5 and Article 42.

1.
Foreground arising from work carried out under indirect
actions other than those referred to in paragraph 3 shall be the
property of the participant carrying out the work generating that
foreground.

2. 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
subsequent assignee, in accordance with the grant agreement.

2.
If employees or other personnel working for a participant
are entitled to claim rights to foreground, the participant shall
ensure that it is possible to exercise those rights in a manner
compatible with its obligations under the grant agreement.

Foreground shall be the property of the Community in the

3.
following cases:

(a)

coordination and support actions consisting in a purchase
of goods or services subject
to the rules on public
procurement set out in the Financial Regulation;

(b)

coordination and support actions relating to independent
experts.

Article 40

Joint ownership of 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.

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

3.
Subject to its obligations concerning confidentiality, where
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 transfers
of ownership from one participant to a specifically identified
third party.

4.
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.

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

5. 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.

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Article 42

the foreground concerned was generated with the assistance of
financial support from the Community.

Preservation of European competitiveness, the defence
interest of Member States and ethical principles

The Commission may object to the transfer of ownership of
foreground, or to the granting of a licence regarding foreground,
to third parties established in a third country not associated to
the seventh framework programme, if it considers that this is not
in accordance with the interests of developing the competitive-
ness 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 licence shall
not
satisfied that
appropriate safeguards will be put in place.

the Commission is

take place unless

The terms of that statement shall be established in the grant
agreement.

Article 45

Use and dissemination

1. The participants shall use the foreground which they own, 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
pursuant to Article 12 of the Treaty.

S u b s e c t i o n 2

The grant agreement may set out time limits in this respect.

P r o t e c t i o n , p u b l i c a t i o n , d i s s e m i n a t i o n a n d
u s e

Article 43

Protection of foreground

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

Where the foreground is capable of industrial or commercial
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.

In such cases, the Commission may, with the consent of the
participant concerned, assume ownership of that foreground and
adopt measures for its adequate and effective protection. The
it can
participant concerned may refuse consent only if
suffer
interests would
demonstrate
disproportionately great harm.

legitimate

that

its

Article 44

Statement relating to Community financial support

shall be compatible with the
3. Dissemination activities
protection of intellectual property rights, confidentiality obliga-
tions, 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.

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 foreground
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 legitimate interests.

SECTION 2

Access rights to background and foreground

Article 46

Background covered

Participants may define the background needed for the purposes
of
the indirect action in a written agreement and, where
appropriate, may exclude specific background.

Article 47

Principles

1. All requests for access rights shall be made in writing.

2. Unless otherwise agreed by the owner of the foreground or
background, access rights shall confer no entitlement to grant
sub-licences.

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

Exclusive licences for foreground or background may be
the other
to written confirmation by all

3.
granted, subject
participants that they waive their access rights thereto.

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4. Without prejudice to paragraph 3, any agreement providing
access rights to foreground or background to participants or
third parties shall be such as to ensure that potential access rights
for other participants are maintained.

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.

6. The termination of its participation in an indirect action
shall in no way affect the obligation of that participant to grant
access rights to the remaining participants in the same action
under
the terms and conditions established by the grant
agreement.

Article 48

3. An affiliated entity established in a Member State or
associated 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.

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

(a)

the end of the indirect action;

(b)

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

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

Access rights for implementation of indirect actions

CHAPTER IV

1. Access rights to foreground shall be granted to the other
participants in the same indirect action, if it is needed to enable
those participants to carry out their own work under that
indirect action.

Such access rights shall be granted on a royalty-free basis.

2. Access rights to background shall be granted to the other
participants in the same indirect action, if it is needed to enable
those participants to carry out their own work under that
indirect action provided that the participant concerned is entitled
to grant them.

Such access rights shall be granted on a royalty-free basis, unless
otherwise agreed by all participants before their accession to the
grant agreement.

Article 49

Access rights for use

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

SPECIFIC RULES FOR PARTICIPATION IN ACTIVITIES UNDER
THE THEMATIC AREA ‘FUSION ENERGY RESEARCH’

Article 50

Scope

The rules set out in this Chapter apply to activities under the
thematic area ‘Fusion energy research’ as set out in the specific
programme. In the event of any conflict between the rules set out
in this Chapter and those set out in Chapters II and III, the rules
set out in this Chapter shall apply.

Article 51

Implementation of fusion energy research

Activities under the thematic area ‘Fusion energy research’ may
be implemented on the basis of procedures and rules for
dissemination and use set out in the following frameworks:

(a)

the Contracts of Association, concluded between the
Community and Member States or associated third
legal entities within Member States or
countries or
associated third countries;

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

(b)

(EFDA),
the European Fusion Development Agreement
concluded between the Community and organisations in,
or acting for, Member States and associated countries;

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

(c)

the European Joint Undertaking for ITER, based on the
provisions of Title II, Chapter 5 of the Treaty;

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

(d)

international agreements relating to cooperation with third
countries, or any legal entity which may be established by
such an agreement, in particular the ITER Agreement;

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(e)

(f)

any other multilateral agreement concluded between the
Community and associated organisations, in particular the
Agreement on Staff Mobility;

cost-sharing actions to promote and contribute to fusion
energy research with bodies in the Member States or the
countries associated with the seventh framework pro-
gramme in which there is no Contract of Association.

Article 52

Community financial contribution

1. The Contracts of Association referred to in Article 51(a) and
cost sharing actions referred to in Article 51(f) shall establish the
rules relating to the Community financial contribution to the
activities they cover.

The annual base rate for the Community financial contribution
shall not exceed 20 % over
the seventh
framework programme.

the duration of

2. After consultation of the consultative committee for the
fusion programme referred to in Article 7(2) of the specific
programme implementing the seventh framework programme
(2007 to 2011) of the European Atomic Energy Community
(Euratom) for nuclear research and training activities (1), the
Commission may finance:

(a) within the framework of the Contracts of Association at a
rate not exceeding 40 %: expenditure of specific cooperative
projects between the Associates which have been recom-
mended for priority support by the consultative committee
and approved by the Commission; priority support will

concentrate on actions of relevance to the ITER/DEMO,
except in the case of projects which have already been
awarded priority status during earlier framework pro-
grammes;

(b)

actions carried out under the European Fusion Develop-
ment Agreement including procurements or within the
framework of the Joint Undertaking referred to in Article
51(c),

(c)

actions carried out under the Agreement on Staff Mobility.

3.
In the case of projects and actions receiving a financial
contribution according to paragraph (2)(a) or (b), all the legal
entities referred to in Article 51(a) and (b) shall have the right to
take part in the experiments carried out on the equipment
concerned.

4. The Community financial contribution to actions carried
out within the framework of an international cooperation
agreement referred to in Article 51(d) shall be set out
in
accordance with the terms of such agreement or by any legal
entity established by the agreement. The Community may
manage its participation and its financial contribution to such an
agreement through any appropriate legal entity.

CHAPTER V

FINAL PROVISIONS

Article 53

This Regulation shall enter into force on the third day following
its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 December 2006.

For the Council

The President

J. KORKEAOJA

(1) OJ L 412, 30.12.2006, p. 1.

L 54/20

EN

Official Journal of the European Union

22.2.2007

ANNEX

Participant guarantee fund

1.

The Fund will be managed by the Community represented 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
accordance with Article 13(b), to an appropriate financial institution (hereinafter the depository bank). The depository
bank shall manage the Fund pursuant to a brief by the Commission.

2.

The Commission may offset, from the initial prefinancing it will pay to the consortium, the participants’ contribution
to the Fund, and pay it on their behalf to the Fund.

3. Where amounts are due to the Community by a participant, the Commission may, without prejudice to penalties

which may be imposed on the defaulting participant in accordance 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 ongoing and the remaining participants agree to implement it to the identical regarding its
objectives, in accordance with Article 17(4). Amounts 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.

The Commission 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.

4.

The amounts recovered from the Fund during the seventh framework programme will constitute revenue assigned to
it within the meaning of Article 18(2) of the Financial Regulation.

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.