2007/198/Euratom: Council Decision of 27 March 2007 establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it
Date: 2007-03-27
Institutions: Council of the European Union
Subjects: European Joint Undertaking, Japan, board of management, financial regulation, international organisation, joint venture, nuclear fusion, nuclear reactor, nuclear research

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(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

II

DECISIONS

COUNCIL

COUNCIL DECISION

of 27 March 2007

establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and
conferring advantages upon it

(2007/198/Euratom)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Atomic
Energy Community, and in particular the third and fourth
subparagraph of Article 47 and Article 48 thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

The Community, through strong, continuous and coor-
dinated Community support from the European Atomic
research and training
Energy Community (Euratom)
programmes,
of
development
the
together with
knowledge and human resources in the national fusion
laboratories, working together notably in the framework
of the European Fusion Development Agreement (EFDA),
has created a single and fully integrated fusion research
programme that has taken a leading international role in
the development of fusion as a potentially limitless, safe,
sustainable, environmentally responsible and economi-
cally competitive source of energy.

(2)

The establishment of
the Joint European Torus (JET)
fusion research project in 1978 (1), which has met or
exceeded all of its design objectives including demon-
strating the release of significant amounts of
fusion
energy in a controlled manner and going on to hold

(1) Council Decision 78/471/Euratom of 30 May 1978 on the estab-
lishment of the Joint European Torus (JET), Joint Undertaking (OJ
L 151, 7.6.1978, p. 10). Decision as last amended by Decision
98/585/Euratom (OJ L 282, 20.10.1998, p. 65).

(3)

(4)

world records for both fusion power and energy, has
demonstrated the added value of pooling resources and
in the form of a Joint
expertise at Community level
Undertaking.

starting

The Community has played a key role in the devel-
opment of a next step international fusion project, the
ITER,
in 1988 with Conceptual Design
Activities (2),
continuing in 1992 with Engineering
Design Activities (3) which were extended by three years
in 1998 (4) and followed by a second agreement
in
1994 (5) which, in 2001, produced a detailed, complete
and fully integrated engineering design for a research
facility aimed at demonstrating the feasibility of fusion
as an energy source from which the Community could
derive significant benefit, in particular in the context of
ensuring the security and diversity of
its long-term
energy supply.

India,

The seven parties to the ITER negotiations (Euratom,
People's Republic of China,
Japan, Republic of
Korea, Russia and the United States), representing over
one half of the world's population, have concluded the
the ITER Inter-
Agreement on the Establishment of
national Fusion Energy Organisation for the Joint Imple-
mentation of the ITER Project (6) (the ITER Agreement)
which establishes the ITER International Fusion Energy
Organisation (the ITER Organisation) with headquarters
in St Paul-lès-Durance (Bouches-du-Rhône) (France). The
ITER Organisation has full responsibility for constructing,
operating, exploiting and de-activating the ITER facilities.

(2) Commission Decision 88/229/Euratom (OJ L 102, 21.4.1988,

p. 31).

(3) Commission Decision 92/439/Euratom (OJ L 244, 26.8.1992,

p. 13).

(4) Council Decision 98/704/Euratom (OJ L 335, 10.12.1998, p. 61).
(5) Commission Decision 94/267/Euratom (OJ L 114, 5.5.1994, p. 25).
(6) OJ L 358, 16.12.2006, p. 62.

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(5)

(6)

(7)

(8)

(9)

requires all parties to provide
The ITER Agreement
contributions to the ITER Organisation through appro-
priate legal entities referred to as ‘Domestic Agencies’. To
enable ITER construction to commence without delay
and given that Euratom, as host party, will have special
responsibilities as a member of the ITER Organisation
including bearing the largest share of the contributions
and the responsibility for the preparation of the site, the
Domestic Agency of Euratom should be established as
soon as possible.

Euratom and Japan have concluded a bilateral Agreement
for the Joint Implementation of the Broader Approach
Activities (the ‘Broader Approach Agreement with Japan’)
setting out complementary joint fusion research activities
as part of a ‘Broader Approach’ to the rapid realisation of
fusion energy agreed during negotiations on the ITER
Agreement. The Broader Approach Agreement with
Japan foresees that such Broader Approach Activities
carried out by Euratom through the
should be
Domestic Agency of Euratom as
the implementing
Agency.

To achieve maximum synergy and economies of scale,
the Domestic Agency of Euratom, in the context of the
‘fast track’ approach to fusion examined by a group of
independent experts at
the research
ministers during the Belgian Presidency, should also
implement a long-term programme of activities
to
construction of demonstration fusion
prepare
reactors and related facilities
to reinforce European
industrial competitiveness in this respect.

the request of

the

In its Conclusions of 26-27 November 2003,
the
European Council, by unanimous decision, authorised
the Commission to put
forward France as the ITER
host State and Cadarache as the ITER site and decided
that the Domestic Agency for Euratom should be located
in Spain.

importance of the ITER Project and
The fundamental
Broader Approach Activities for harnessing fusion as a
potentially limitless, safe, sustainable, environmentally
responsible and economically competitive source of
energy makes it necessary to establish the Domestic
Agency of Euratom in the form of a Joint Undertaking
as provided for in Chapter 5 of the Euratom Treaty.

(10)

The Joint Undertaking, which should be responsible for
public research activities of European and international
interest, and discharge commitments pursuant to inter-
national agreements, should be considered as an inter-
national body within the meaning of Article 151(1)(b) of
Council Directive 2006/112/EC of 28 November 2006
on the common system of value added tax (1), and as an

the
international organisation within the meaning of
second indent of Article 23(1) of Council Directive
92/12/EEC of 25 February 1992 on the general
arrangements for products subject to excise duty and
on the holding, movement and monitoring of such
products (2), Article 22 of Directive 2004/17/EC of the
European Parliament and of the Council of 31 March
2004 coordinating the procurement procedures of
entities operating in the water, energy,
transport and
postal services sectors (3), and Article 15 of Directive
2004/18/EC of
the
Council of 31 March 2004 on the coordination of
procedures for the award of public works contracts,
public supply contracts and public service contracts (4).

the European Parliament and of

This Decision establishes, for the duration foreseen for
reference amount
the Joint Undertaking, a financial
which illustrates the will of the legislative authority and
which will not affect
the budgetary
authority as defined in the Treaty.

the powers of

to prior
The Joint Undertaking should have, subject
consultation with the Commission,
its own financial
regulation based on the principles of Commission Regu-
lation (EC, Euratom) No 2343/2002 of 19 November
2002 on the Framework Financial Regulation for the
bodies referred to in Article 185 of Council Regulation
(EC, Euratom) No 1605/2002 on the Financial Regu-
lation applicable to the general budget of the European
Communities (5)
(the Framework Financial Regulation)
taking into account its specific operating needs arising,
in particular, from its international obligations.

research cooperation,

To strengthen international
the
Joint Undertaking should be open to the participation
of countries that have concluded cooperation agreements
with Euratom in the field of nuclear fusion that associate
their
Euratom
programmes.

programmes with

respective

the

The proposal for the Council Decision for the seventh
framework programme of the European Atomic Energy
Community (Euratom) for nuclear research and training
activities (2007 to 2011), and the specific programme
implementing that
framework programme (FP7) put
ITER at the heart of the European strategy for fusion
and make provision for
the Euratom contribution,
through the Joint Undertaking to the ITER Organisation,
Broader Approach Activities and other related activities
with a view to preparing for demonstration fusion
reactors.

(11)

(12)

(13)

(14)

(2) OJ L 76, 23.3.1992, p. 1. Directive as last amended by Directive

2004/106/EC (OJ L 359, 4.12.2004, p. 30).

(3) OJ L 134, 30.4.2004, p. 1. Directive as last amended by Directive

2006/97/EC (OJ L 363, 20.12.2006, p. 107).

(4) OJ L 134, 30.4.2004, p. 114. Directive as last amended by Directive

(1) OJ L 347, 11.12.2006, p. 1. Directive as last amended by Directive

2006/97/EC.

2006/138/EC (OJ L 384, 29.12.2006, p. 92).

(5) OJ L 357, 31.12.2002, p. 72.

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(15)

(16)

(17)

staff,

treatment of

taking into account

The need to ensure stable employment conditions and
the
equal
experience gained from the JET Joint Undertaking,
in
order to attract specialised scientific and technical staff
of the highest calibre, requires the application of the Staff
Regulations of Officials of the European Communities
and the Conditions of Employment of Other Servants
of the European Communities, laid down by Regulation
(EEC, Euratom, ECSC) No 259/68 (1)
(the Staff Regu-
lations) to all the staff recruited by the Joint Undertaking.

an economic purpose

Taking into account that the Joint Undertaking is not
and is
designed to fulfill
responsible for managing Euratom participation in an
is
international research project of public interest,
the
necessary for
its tasks that
the performance of
Protocol on the Privileges and Immunities of
the
European Communities of 8 April 1965 (2) apply to
the Joint Undertaking, its Director and staff.

it

In view of the particular nature of the activities of the
Joint Undertaking and its importance for
the devel-
opment of fusion research and in order to promote a
sound and economic management of the public funding
the
to be provided to the
advantages provided for
to the Treaty
should be conferred on the Joint Undertaking.

Joint Undertaking, all
in Annex III

(18) As a body possessing legal personality, the Joint Under-
taking should be accountable for its actions. As regards
the resolution of disputes in contractual matters,
it
should be possible that the contracts concluded by the
Joint Undertaking provide that the Court of Justice have
jurisdiction.

(19)

Taking into account the rights and obligations of the
Community under Title II, Chapter 2 of
the Treaty
concerning the dissemination of information, the Joint
Undertaking should make appropriate arrangements in
that regard with the Commission.

(20) A host agreement should be concluded between the Joint
Undertaking and Spain concerning office accommo-
dation, privileges and immunities and other support to
be provided by Spain to the Joint Undertaking.

(21)

This Decision takes into account the outcome of the
enquiry conducted by the Commission and, in particular,
the positive opinion of the Consultative Committee for
the Euratom Specific Research and Training Programme
in the Field of Nuclear Energy (Fusion) on the proposals,

(1) OJ L 56, 4.3.1968, p. 1. Regulation as last amended by Regulation

(EC, Euratom) No 1895/2006 (OJ L 397, 30.12.2006, p. 6).

(2) OJ 152, 13.7.1967, p. 13. Protocol as amended by the Treaty of

Amsterdam and the Treaty of Nice.

HAS ADOPTED THIS DECISION:

Article 1

Establishment of a Joint Undertaking

1.
A European Joint Undertaking for ITER and the Devel-
opment of Fusion Energy (Fusion for Energy) (the Joint Under-
taking) is hereby established for a period of 35 years starting on
19 April 2007.

2.

The tasks of the Joint Undertaking shall be as follows:

(a) to provide the contribution of the European Atomic Energy
to the ITER International Fusion

Community (Euratom)
Energy Organisation;

(b) to provide

contribution of Euratom to Broader
Approach Activities with Japan for the rapid realisation of
fusion energy;

the

(c) to prepare and coordinate a programme of activities in
preparation for the construction of a demonstration fusion
reactor and related facilities
including the International
Fusion Materials Irradiation Facility (IFMIF).

The Joint Undertaking shall have its seat in Barcelona in

3.
Spain.

4.
The Joint Undertaking shall be considered as an inter-
national body within the meaning of Article 151(1)(b) of
Council Directive 2006/112/EC, and as an international organi-
sation within the meaning of the second indent of Article 23(1)
of Directive 92/12/EEC, of Article 22 point (c) of Directive
2004/17/EC and of Article 15 point
(c) of Directive
2004/18/EC.

Article 2

Members

The Joint Undertaking shall have the following Members:

(a) Euratom, represented by the Commission;

(b) the Member States of Euratom;

(c) third countries which have

cooperation
agreements with Euratom in the field of controlled nuclear
fusion that associate their respective research programmes
with the Euratom programmes and which have expressed
their wish to become Members of the Joint Undertaking.

concluded a

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Article 3

Statutes

The Statutes of the Joint Undertaking, as set out in the Annex,
are hereby adopted.

Article 4

Financing

The resources required for the Joint Undertaking to carry

1.
out its tasks shall be determined as follows:

(a) as

regards

the tasks

referred to in Article 1(2)(a),

in

accordance with the ITER Agreement;

(b) as

regards

the tasks

in
accordance with the Broader Approach Agreement with
Japan;

referred to in Article 1(2)(b),

(c) as

regards

the tasks

referred to in Article 1(2)(c),
accordance with
training
adopted pursuant to Article 7 of the Treaty.

in
programmes

research

and

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(EUR million)

2007-2016

2017-2041

2007-2041

of which FP7
2007-2011

Constant
values

Total

3 147

1 290

4 502

2 887

7 649

Article 5

Financial Regulation

1.
The Joint Undertaking shall have a distinct financial regu-
lation based on the principles of the Framework Financial Regu-
lation. The financial regulation of the Joint Undertaking (the
financial regulation) may depart from the Framework Financial
Regulation where the specific operating needs of
the Joint
Undertaking so require and subject to prior consultation with
the Commission.

The Joint Undertaking shall establish its own internal audit

2.
service.

3.
Discharge for the implementation of the budget of the
Joint Undertaking shall be given by the European Parliament
on the recommendation of the Council.

Article 6

Staff

2.
The resources of the Joint Undertaking shall consist of a
contribution from Euratom, contributions from the ITER host
State,
the annual membership contributions and voluntary
contributions from Members of the Joint Undertaking other
than Euratom, and additional resources.

The Staff Regulations, as well as the rules adopted jointly by the
institutions of the European Community for the purposes of the
application of those Staff Regulations, shall apply to the staff of
the Joint Undertaking.

The indicative total resources deemed necessary for the
3.
Joint Undertaking in accordance with paragraph 1 shall be
EUR 9 653 million (1). This is detailed as follows:

(EUR million)

2007-2016

2017-2041

2007-2041

of which
2007-2011

Constant
values

Total

4 127

1 717

5 526

3 544

9 653

The indicative total contribution from Euratom to the
4.
resources
referred to in paragraph 3 shall be EUR 7 649
million, of which a maximum of 15 % shall be for adminis-
trative expenditure. This is detailed as follows:

Article 7

Privileges and immunities

The Protocol on the Privileges and Immunities of the European
Communities shall apply to the Joint Undertaking, its Director
and staff.

Article 8

Advantages

The Member States shall confer all the advantages provided for
in Annex III to the Treaty on the Joint Undertaking within the
scope of its official activities, for as long as the Joint Under-
taking exists.

Article 9

Liability and jurisdiction of the Court of Justice

(1) All figures shown are expressed in current values unless otherwise
stated and subject to the adoption of the corresponding budgets for
Community research and training programmes pursuant to Article 7
of the Treaty.

1.
The contractual liability of the Joint Undertaking shall be
governed by the relevant contractual provisions and by the law
applicable to the contract in question.

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The Court of Justice of the European Communities shall have
jurisdiction to give judgment pursuant to any arbitration clause
contained in a contract concluded by the Joint Undertaking.

Article 10

Dissemination of information

2.
In the case of non-contractual liability, the Joint Under-
taking shall, in accordance with the general principles common
to the laws of the Member States, make good any damage
caused by its servants in the performance of their duties.

The Court of Justice of the European Communities shall have
jurisdiction in disputes
such
damage.

relating to compensation for

The Court of

Justice shall have jurisdiction in actions
3.
brought against the Joint Undertaking,
including decisions of
its Governing Board, under the conditions provided for in
Articles 146 and 148 of the Treaty.

The Joint Undertaking shall agree with the Commission appro-
priate provisions which will allow the Community to exercise
its rights and obligations under Title II, Chapter 2 of the Treaty.

Article 11

Host agreement

A host agreement shall be concluded between the Joint Under-
taking and Spain within three months from the establishment
of the Joint Undertaking.

Article 12

Application

This Decision shall apply from the 20th day following its publi-
cation in the Official Journal of the European Union.

This Decision is addressed to the Member States.

Done at Brussels, 27 March 2007.

4.
Any payment by the Joint Undertaking in respect of the
liability referred to in paragraphs 1 and 2 and the costs and
expenses incurred in connection therewith shall be considered
as expenditure of the Joint Undertaking and shall be covered by
the resources of the Joint Undertaking.

For the Council
The President

P. STEINBRÜCK

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STATUTES OF THE EUROPEAN JOINT UNDERTAKING FOR ITER AND THE DEVELOPMENT OF FUSION
ENERGY

(FUSION FOR ENERGY)

ANNEX

Article 1

Name, seat, members

Article 3

Activities

The name of the Joint Undertaking shall be ‘The European Joint
1.
Undertaking for ITER and the Development of Fusion Energy (Fusion
for Energy)’ (the Joint Undertaking).

1.
As the Euratom Domestic Agency for ITER, the Joint Undertaking
shall discharge the obligations of Euratom to the ITER Organisation as
defined in, and for the duration of, the ITER Agreement. In particular, it
shall:

2.

The seat of the Joint Undertaking shall be in Barcelona in Spain.

(a) oversee preparation of the ITER project site;

3.

The Joint Undertaking shall have the following Members:

(a) the European Atomic Energy Community (Euratom) represented by

the Commission;

(b) the Member States of Euratom;

(c) third countries which have concluded a cooperation agreement with
Euratom in the field of controlled nuclear fusion that associates their
respective research programmes with the Euratom programmes and
which have expressed their wish to become Members of the Joint
Undertaking.

Article 2

Objectives

The objectives of the Joint Undertaking shall be:

1) to provide the contribution of Euratom to the ITER International
Fusion Energy Organisation (the ITER Organisation), in accordance
with the Agreement on the Establishment of the ITER International
Fusion Energy Organisation for the Joint Implementation of the ITER
Project (the ITER Agreement);

2) to provide the contribution of Euratom to broader approach
fusion energy
in accordance with the bilateral
Implementation of Broader Approach

activities with Japan for the rapid realisation of
(Broader Approach Activities),
Agreement
Activities (the Broader Approach Agreement with Japan);

the Joint

for

3) to prepare and coordinate a programme of activities in preparation
for the construction of a demonstration fusion reactor and related
facilities including the International Fusion Materials
Irradiation
Facility (IFMIF).

(b) provide components, equipment, materials and other resources to

the ITER Organisation;

(c) manage procurement arrangements vis-à-vis the ITER Organisation

and, in particular, associated quality assurance procedures;

(d) prepare and coordinate Euratom's participation in the scientific and

technical exploitation of the ITER Project;

(e) coordinate scientific and technological research and development
activities in support of Euratom's contribution to the ITER Organ-
isation;

(f) provide Euratom's financial contribution to the ITER Organisation;

(g) arrange to make human resources available for the ITER Organ-

isation;

(h) interface with the ITER Organisation and carry out any other

activities in furtherance of the ITER Agreement.

As the Implementing Agency in the context of

2.
Approach Agreement with Japan,
discharge Euratom obligations
Approach Activities. In particular, it shall:

for

the Broader
shall
Joint Undertaking
the implementation of Broader

the

(a) provide components, equipment, materials and other resources for

Broader Approach Activities;

(b) prepare and coordinate Euratom's participation in the implemen-

tation of Broader Approach Activities;

(c) coordinate scientific and technological research and development

activities;

(d) provide the Euratom financial contribution to Broader Approach

Activities;

(e) arrange to make human resources available for Broader Approach

Activities;

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(f) carry out any other activities necessary for meeting Euratom's obli-
gations in furtherance of the Broader Approach Agreement with
Japan.

in accordance with these Statutes. The Governing Board shall
particular:

in

3.
In preparation for the construction of a demonstration fusion
reactor and related facilities, including the IFMIF, the Joint Undertaking
shall prepare and coordinate a programme of research, development and
design activities other than ITER and Broader Approach Activities.

The Joint Undertaking shall carry out any other activities in
4.
furtherance of the overall objectives set out in Article 2,
including
activities to raise public awareness of the Joint Undertaking and its
mission.

Article 4

Legal personality

The Joint Undertaking shall have legal personality. In the territory of
it shall enjoy the most extensive legal capacity
each of its Members,
granted to legal persons under
in
particular, conclude contracts, obtain licences, acquire or dispose of
movable and immovable property, take out loans and be a party to
legal proceedings.

respective laws.

It may,

their

Article 5

Bodies

The bodies of the Joint Undertaking shall be the Governing Board

1.
and the Director.

The Governing Board shall be assisted by the Executive Committee

2.
in accordance with Article 7.

(a)

approve proposals for amendments to these Statutes in accordance
with Article 21;

(b) decide all matters referred to it by the Executive Committee;

(c)

appoint the Chairman and members of the Executive Committee;

(d) adopt the project plan, work programmes, resource estimates plan,

the staff establishment plan and the staff policy plan;

(e)

adopt the annual budget, approve the annual accounts, including
the specific parts related to the administrative and staff costs, and
discharge the Director in respect of the implementation of the
budget, in accordance with the financial regulation;

(f)

exercise the powers referred to in Article 10(3) in respect of the
Director;

(g)

approve the basic organisational structure of the Joint Undertaking;

(h) adopt

the financial

regulation and its

implementing rules

in

accordance with Article 13(1);

(i)

adopt
the implementing provisions referred to in the second
subparagraph of Article 10(2) and in Article 10(4) in respect of
the staff;

(j)

adopt implementing rules for making human resources available for
the ITER Organisation and for Broader Approach Activities;

(k) adopt and apply measures and guidelines to combat fraud, irregu-

larities and manage potential conflicts of interest;

The Governing Board and the Director shall seek advice from the

3.
Scientific Programme Board(s) in accordance with Article 9.

(l)

approve the host agreement between the Joint Undertaking and
Spain (the Host State) provided for in Article 18;

Article 6

Governing Board

(m) decide on any acquisition, sale and mortgaging of land and other
titles to real property, as well as on the giving of any sureties or
guarantees, taking out of shares in other undertakings or insti-
tutions, and granting or taking of loans;

The Governing Board shall be responsible for the supervision of
1.
the Joint Undertaking in the pursuit of its objectives set out in Article 2
and ensure close collaboration between the Joint Undertaking and its
Members in the implementation of its activities.

2.
Each Member of the Joint Undertaking shall be represented in the
Governing Board by two members, one of whom shall have scientific
and/or technical expertise in the areas related to the activities of the
Joint Undertaking.

(n) approve the conclusion of agreements or arrangements regarding
cooperation with third countries and with institutions, undertakings
or persons of third countries or with international organisations;

(o) approve the annual activity reports on the progress of the Joint
Undertaking with respect to its work programmes and its resources;

(p) adopt rules on industrial policy, intellectual property rights and the
dissemination of information in agreement with the Commission;

3.
The Governing Board shall make recommendations and take
decisions on any questions, matters or issues within the scope of and

(q)

establish the Scientific Programme Board(s) and appoint
members;

their

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(r)

exercise such other powers and perform such other functions,
including the establishment of
subsidiary bodies, as may be
necessary for the exercise of its functions in furtherance of its
objectives.

4.
The voting rights of the Members of the Joint Undertaking shall be
as set out in Annex I. The votes of each Member shall be indivisible.

Decisions by the Governing Board under paragraph 3(a) shall

5.
require unanimity.

Article 7

Executive Committee

1.
The Executive Committee shall assist the Governing Board in the
preparation of its decisions and shall carry out any other tasks which
the Governing Board may delegate to it.

2.
The Executive Committee shall be composed of 13 members
appointed by the Governing Board from among persons of recognised
standing and professional experience in scientific, technical and financial
matters relevant to the functions set out in this Article. One Member of
the Executive Committee shall be Euratom.

Decisions by the Governing Board under paragraph 3(b) to (m) shall
require a two-thirds majority of the total votes.

3.

The Executive Committee shall in particular:

Unless otherwise stated, all other Governing Board decisions shall
require a simple majority of the total votes.

(a) approve the award of contracts in accordance with the financial

regulation;

Euratom shall have the right to make a reservation to a decision
6.
by the Governing Board, when it considers that that decision may be
contrary to Community law,
international
commitments
ITER International Agreement.
from the
Euratom shall give due legal justification to such reservation.

including notably its

arising

(b) comment on and make recommendations to the Governing Board
on the proposal for the project plan, work programmes, resource
estimates plan, annual budget and accounts drawn up by the
Director;

In this case the decision shall be suspended and the matter referred to
the Commission for a review of its legality, together with the view of
the Governing Board.

(c) submit to the Governing Board, upon request by Euratom or a
majority of members, decisions on the awarding of contracts or
any other decisions entrusted to it.

The Commission may take a decision on the legality of the decision of
the Governing Board within one month of the matter being referred to
the Commission, failing which the decision of the Governing Board
shall be deemed to have been upheld.

The Governing Board shall re-examine its decision in the light of the
Commission's views and take a final decision.

7.
The Governing Board shall elect its Chairman from among its
members upon a proposal by Euratom, by a two-thirds majority of
the total votes. He shall serve for a term of two years and may be
re-elected once.

The Governing Board shall meet when convened by the Chairman,
8.
at least two times per year. The Governing Board may also be convened
at the request of a simple majority of its members, or at the request of
the Director or of Euratom. The meetings shall normally take place at
the seat of the Joint Undertaking.

4.

Each Executive Committee member shall have one vote.

Unless otherwise stated, decisions by the Executive Committee

5.
shall require a majority of nine votes in favour.

The term of office for members of the Executive Committee shall
6.
be two years renewable once. Every two years at least half of the
members shall be replaced.

7.
On expiry of their term of office members shall remain in office
until their appointment is renewed or they are replaced. If a member
resigns, he shall remain in office until he is replaced.

The Chairman of the Executive Committee shall be appointed by

8.
the Governing Board for a period of two years, renewable once.

9.
Unless otherwise decided in particular cases, the Director of the
Joint Undertaking and the Chairman of the Executive Committee shall
participate in the meetings of the Governing Board.

9.
The Executive Committee shall meet when convened by the
Chairman, at least six times per year. The Executive Committee may
also be convened at the request of at least three members, or at the
request of the Director or of Euratom. The meetings shall normally take
place at the seat of the Joint Undertaking.

10.
The Governing Board shall adopt its rules of procedure and shall
approve the rules of procedure of the Executive Committee by a two-
thirds majority of the total votes.

10.
The Chairman of the Executive Committee shall participate in the
meetings of the Governing Board, unless the Governing Board decides
otherwise.

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Subject

to the prior approval of
11.
Executive Committee shall adopt its rules of procedure.

the Governing Board,

the

(g)

ensure the application of sound financial management and internal
controls;

Article 8

The Director

(h) draw up the rules on intellectual property rights and industrial

policy, and on the dissemination of information;

1.
The Director shall be the chief executive officer responsible for the
day-to-day management of the Joint Undertaking and shall be its legal
representative.

(i)

draw up the annual activity report on the progress of the imple-
mentation of the activities of the Joint Undertaking set out in the
work programmes and resource estimates plan;

2.
The Director shall be appointed by the Governing Board, on the
basis of a list of candidates proposed by the Commission following a
call for expressions of interest published in the Official Journal of the
European Union and in other periodicals or on Internet sites. The
Director shall be appointed for a period of
five years. After an
evaluation of
the Director's performance during this period by
Euratom, and upon its proposal, the Governing Board may extend the
term of office once for a further period of not more than five years.

(j)

draw up such other reports as may be requested by the Governing
Board or Executive Committee;

(k) assist

the Governing Board,

the Executive Committee and any

subsidiary bodies by providing their secretariat;

3.
The Director shall be subject to the Staff Regulations of officials of
the European Communities and the Conditions of Employment of other
servants of the European Communities, laid down by Regulation (EEC,
Euratom, ECSC) No 259/68 (the Staff Regulations) as well as the rules
adopted jointly by the institutions of the European Community for the
purposes of the application of those Staff Regulations save as otherwise
provided in these Statutes.

(l)

participate in the meetings of the Governing Board, unless the
Governing Board decides otherwise,
in the
meetings of the Executive Committee;

and participate

(m) ensure that scientific and technical expertise is made available to

the Joint Undertaking for the development of its activities;

4.
The Director shall implement the work programmes and direct the
execution of the activities set out in Article 3. He shall supply the
Governing Board, the Executive Committee, the Scientific Programme
Board(s) and any subsidiary bodies with all information necessary for
the performance of their functions.

(n) carry out other activities and, as may be necessary and make other
proposals to the Governing Board in furtherance of the objectives
of the Joint Undertaking.

In particular, the Director shall:

(a) organise, direct and supervise the staff and exercise in respect of the

staff the powers devolved on the appointing authority;

Article 9

Scientific Programme Board(s)

1.
The Governing Board shall appoint the members of Scientific
Programme Board(s). The Chairman of the Programme Board(s) shall
be elected from among its members.

(b) define the basic organisational structure of the Joint Undertaking

and submit it to the Governing Board for approval;

2.
The Scientific Programme Board(s) shall advise the Governing
Board and the Director, as necessary, on the adoption and implemen-
tation of the project plan and work programmes.

(c) draw up and regularly update the project plan,

the work
programmes of the Joint Undertaking and the staff policy plan;

Article 10

Staff

(d) draw up,

in accordance with the ITER Agreement and with the
Broader Approach Agreement with Japan, implementing rules for
making human resources available for the ITER Organisation and
for Broader Approach Activities;

(e) draw up, in accordance with the financial Regulation, the resource
estimates plan and annual draft budget including the staff estab-
lishment plan of the Joint Undertaking;

The staff of the Joint Undertaking shall assist the Director in the
in general be nationals of the

1.
performance of his duties and shall
Members of the Joint Undertaking.

2.
The Staff Regulations as well as the rules adopted jointly by the
institutions of the European Community for the purposes of the appli-
cation of those Staff Regulations shall apply to the staff of the Joint
Undertaking.

(f)

implement the budget, keep the inventory and draw up the annual
accounts in accordance with the financial regulation;

The Governing Board, in agreement with the Commission, shall adopt
the necessary implementing provisions,
in accordance with the
arrangements provided for in Article 110 of the Staff Regulations.

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The Joint Undertaking shall exercise, with regard to its staff, the

3.
powers which are devolved on the appointing authority.

The financial regulation shall be in accordance with the general

3.
principles set out in Annex III.

4.
The Governing Board may adopt provisions to allow national
experts from Members of the Joint Undertaking to be seconded to
the Joint Undertaking.

Article 14

Annual activity report

Article 11

Work programmes and resource estimates plan

The Director shall prepare each year the submission of the project plan
to the Governing Board, the resource estimates plan and the detailed
annual work programmes and budget. One work programme shall be
prepared for each of the groups of activities of the Joint Undertaking as
set out in Article 3.

The annual activity report shall record the implementation of the work
programmes by the Joint Undertaking. It shall in particular outline the
activities conducted by the Joint Undertaking and evaluate the results
with respect to the objectives and the timetable set, the risks associated
with the activities carried out, the use of resources and the general
operation of the Joint Undertaking. The annual activity report shall be
prepared by the Director, approved by the Governing Board and sent to
the Members,
the European Parliament and the
the Commission,
Council of the European Union.

Article 12

Resources

Article 15

Annual accounts and supervision

1.
The resources of the Joint Undertaking shall consist of a contri-
bution from Euratom, annual membership contributions and voluntary
contributions from the Members other than Euratom, contributions
from the ITER host State and from additional resources:

1. Within two months after the end of each financial year the pro-
visional accounts of the Joint Undertaking shall be submitted to the
Commission and the Court of Auditors of the European Communities
(‘the Court of Auditors’).

(a) the Euratom contribution shall be made available through the
Community research and training programmes adopted pursuant
to Article 7 of the Treaty;

(b) annual membership contributions shall take the form of financial
contributions and shall be made available in accordance with
Annex II;

(c) voluntary contributions may be made in cash or inkind and shall

not count towards annual membership contributions.

(d) contributions from the ITER host State;

(e) additional resources may be received under terms approved by the

Governing Board.

2.
The resources of the Joint Undertaking shall be solely used in
furtherance of its objectives as defined in Article 2. The value of contri-
butions in kind shall be determined by the Joint Undertaking. Without
prejudice to Article 19, no payment by way of division of any excess of
resources over expenditure shall be made to the Members of the Joint
Undertaking.

Article 13

Financial regulation

The financial

1.
adopted by the Governing Board.

regulation and its implementing rules shall be

The Court of Auditors shall, by 15 June after the end of each financial
year, make its observations on the provisional accounts of the Joint
Undertaking.

Within six months after the end of each financial year, the Director shall
submit the final accounts of the Joint Undertaking to the Commission,
the Council, the European Parliament and the Court of Auditors.

The European Parliament, on the recommendation of the Council acting
by a qualified majority, shall, before 30 April of year n+2, give a
discharge to the Director in respect of
the
budget of the Joint Undertaking for year n.

the implementation of

2.
The European Anti-Fraud Office (OLAF) set up by Commission
Decision 1999/352/EC, ECSC, Euratom (1) shall enjoy the same powers
in respect of the Joint Undertaking and its staff as it enjoys in respect of
Commission departments. As soon as the Joint Undertaking is estab-
it shall accede to the Interinstitutional Agreement of 25 May
lished,
1999 between the European Parliament,
and the
the Council
investigations by OLAF (2). The
Commission concerning internal
Governing Board shall approve that accession and adopt the necessary
measures needed to facilitate internal investigations conducted by OLAF.

3.
All decisions adopted and contracts concluded by the Joint Under-
taking, shall provide explicitly that OLAF and the Court of Auditors
the documents of all
may carry out on-the-spot
contractors and sub-contractors which have received Community
funds, including at the premises of the final beneficiaries.

inspections of

The financial regulation lays down the rules for the establishment

2.
and implementation of the budget of the Joint Undertaking.

(1) OJ L 136, 31.5.1999, p. 20.
(2) OJ L 136, 31.5.1999, p. 15.

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Article 16

Accession

1.
Upon accession to Euratom, any new Member State of
European Union shall become a Member of the Joint Undertaking.

the

2.
Any third country which concludes a cooperation agreement with
Euratom in the field of controlled nuclear fusion that associates its
respective research programmes with the Euratom programmes and
expresses its wish to become a Member of the Joint Undertaking shall
become a Member.

Article 17

Duration

The Joint Undertaking shall be established for a period of 35 years
starting on 19 April 2007.

Article 18

Support from the host State

A host agreement shall be concluded between the Joint Undertaking and
the host State concerning,
in particular, the site and support to be
provided.

Article 19

Winding up

At the end of the period provided for in Article 17, or following a

1.
decision by the Council, the Joint Undertaking shall be wound up.

2.
For the purpose of conducting the proceedings in winding up the
Joint Undertaking, the Governing Board shall appoint one or more
liquidators, who shall comply with the instructions issued by the
Governing Board.

3. When the Joint Undertaking is being wound up, it shall return to
the Host State any physical support item made available by the host
State in accordance with the host agreement provided for in Article 18.

4. When any physical support item has been dealt with as provided
for in Paragraph 3, any further assets shall be used to cover the
liabilities of
relating to its
winding up. Any surplus or deficit shall be distributed among or met
by the Members existing at the time of the winding up in proportion to
their actual total contributions to the Joint Undertaking.

the Joint Undertaking and the costs

Article 20

Ownership and assignment of rights

The Joint Undertaking shall own all

1.
tangible and
intangible, and financial assets created by it or acquired by it unless
otherwise agreed between the Commission and the Joint Undertaking.

resources,

2. Members and their national fusion organisations shall offer free of
charge to the Joint Undertaking any title, rights and obligations arising
under contracts concluded and orders placed by or with the support of
Euratom in relation to the activities of the Joint Undertaking prior to its
establishment.

The Joint Undertaking may take over any contract and order

3.
referred to in paragraph 2.

Article 21

Amendments

Any Member of the Joint Undertaking may make a proposal to

1.
the Governing Board for the amendment of these Statutes.

However, proposals for changes in the voting system and rights, and for
determining the voting rights of new Members shall be made by
Euratom.

Upon approval by the Governing Board the proposal shall be

2.
submitted to the Commission.

3.
The Commission will make a proposal to the Council for the
approval of such amendments in accordance with Article 50 of the
Treaty.

Article 22

Settlement of disputes

1. Without prejudice to Article 154 of the Treaty, any dispute either
between Members of the Joint Undertaking or between one or more
Members and the Joint Undertaking concerning the interpretation or
application of these Statutes, which is not settled by the good offices of
the Governing Board, may, at the request of any party to the dispute, be
submitted to an arbitration tribunal.

2.
The arbitration tribunal shall be established in each individual case.
The tribunal shall be composed of three members nominated jointly by
the parties to the dispute. The members of the arbitration tribunal shall
elect the chairman from amongst themselves.

If the parties in the dispute fail to nominate the members of the
3.
arbitration tribunal within two months of the request for submission of
a dispute to an arbitration tribunal, or if within one month of the
nomination of the members these members do not elect a chairman,
such member or members or the chairman shall be nominated by the
President of the Court of Justice of the European Communities at the
request of one of the parties to the dispute.

The arbitration tribunal shall reach its decision by a majority of

4.
votes. Such decision shall be binding and final.

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ANNEX I TO THE STATUTES OF THE JOINT UNDERTAKING

The voting rights of the Members of the Governing Board shall be distributed as follows:

GOVERNING BOARD VOTING RIGHTS

Euratom

Austria

Belgium

Bulgaria

Cyprus

Czech Republic

Denmark

Estonia

Finland

France

Greece

Germany

Hungary

Ireland

Italy

Latvia

Lithuania

Luxembourg

Malta

Poland

Portugal

Romania

Slovakia

Slovenia

Sweden

Switzerland

Spain

The Netherlands

United Kingdom

5

2

2

1

1

2

2

1

2

5

2

5

2

2

5

2

2

1

1

3

2

2

2

2

2

2

3

2

5

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ANNEX II TO THE STATUTES OF THE JOINT UNDERTAKING

ANNUAL MEMBERSHIP CONTRIBUTIONS

1. Members other than Euratom shall make annual membership contributions to the Joint Undertaking.

2. The total amount of annual membership contributions for year n shall be calculated on the basis of the annual
resources required for the administration of the Joint Undertaking in that year, as adopted by the Governing Board.

3. The total amount of annual membership contributions shall not exceed 10 % of the annual resources required for the

administration of the Joint Undertaking, as set out in point 2.

4. The annual membership contribution of each Member, unless otherwise decided by the Governing Board by

unanimity, shall be composed of:

(a) a minimum contribution of 0,1 % of the total amount of annual membership contributions set out in point 2;

(b) an additional contribution calculated in proportion to the Euratom financial participation (1) (expressed in EUR) in
the Member's expenditure in the framework of the Community Fusion research programme in the year n-2
without including its voluntary contribution to the Euratom obligations included in the Broader Approach
Agreement with Japan.

(1) Excluding Euratom financial participation for JET Operation.

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ANNEX III TO THE STATUTES OF THE JOINT UNDERTAKING

FINANCIAL REGULATION: GENERAL PRINCIPLES

1. The financial Regulation shall follow the budgetary principles of:

(a) unity and budget accuracy;

(b) annuality;

(c) equilibrium;

(d) unit of account;

(e) universality;

(f)

specification;

(g) sound financial management;

(h) transparency.

2. The Joint Undertaking shall have internal control standards and mechanisms in place, including rules for financial

circuits and procedures for financial operations.

3. The Joint Undertaking shall establish an internal audit unit.

4. Notwithstanding the principle of equilibrium referred to in point 1(c), the Joint Undertaking shall have the possibility
to take out loans in accordance with Article 4 of these Statutes, following approval of the Governing Board and under
the conditions set out in the financial Regulation.

5. The financial Regulation shall, in particular, set out:

(a)

the financial year, which shall begin on the first day of January and end on the last day of December;

(b) rules and procedures for the multi-annual project plan and resource estimates plan, their presentation and

structure, including budgetary provisions and estimates for a period of five years;

(c) rules and procedures for the annual work programmes and resource estimates plan and their presentation and

structure, including budgetary provisions and estimates for a period of two years;

(d) rules and procedures for the preparation and adoption of the annual budget, and its implementation, including

procedures for commitments and payments;

(e)

the principles for the collection of recovery and for the interest yielded by the resources contributed by the
members;

(f)

rules and procedures for the internal financial control, including delegated powers, in particular concerning the
ceilings, below which the Director can award contracts with or without the approval of the Executive Committee;

(g) rules and procedures for the method of calculating and transferring payments of the contributions by the Members

of the Joint Undertaking;

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(h) rules and procedures for the management of resources, including procedures for purchasing, selling and deter-

mining the value of tangible and intangible assets;

(i)

(j)

rules and procedures for the keeping and presentation of accounts and inventory records and the drawing up and
presentation of the annual balance sheet;

rules and procedures for the management of conflicts of interest and the reporting of suspected irregularities and
fraud.

6. The Joint Undertaking shall keep accrual-based accounts in accordance with international accounting standards and
international financial reporting standards. Income and expenditures shall be managed and accounted for separately in
the annual accounts, which shall include budgetary implementation of commitments and payments together with
administrative expenses. The Joint Undertaking shall have no separate accounts by membership origin, but shall
account for annual membership contributions received and activities undertaken.

7. The establishment plan of the Joint Undertaking shall be drawn up in agreement with the Commission and in
accordance with Article 46 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European Communities (1).

8. The estimates of revenue and expenditure, together with the operating accounts and the balance sheets of the Joint
Undertaking for each financial year, shall be placed before the Commission, the Council and the European Parliament.

9. The Joint Undertaking shall adopt provisions and rules forming a procurement system, integrated and compatible with
the ITER Organisation's procurement system and taking into account the Joint Undertaking's specific operational needs
stemming, inter alia, from international commitments, thereby allowing the Joint Undertaking to accomplish efficiently
and timely the scheduled procurement activities.

(1) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation (EC, Euratom) No 1995/2006.