Proposal for a Council Decision concerning the conclusion of the Agreement on Scientific and Technical Cooperation between the European Community and the State of Israel
Date: 2007-05-30
Institutions: European Commission
Subjects: EU programme, EU research policy, Israel, cooperation agreement (EU), ratification of an agreement, scientific cooperation, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 30.5.2007 
COM(2007) 276 final 

2007/0096 (CNS) 

Proposal for a 

COUNCIL DECISION 

concerning the signature and provisional application of the Agreement on Scientific and 
Technical Cooperation between the European Community and the State of Israel 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of the Agreement on Scientific and Technical Cooperation 
between the European Community and the State of Israel 

(presented by the Commission) 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

EXPLANATORY MEMORANDUM 

By its Decision 2004/576/EC of 29 April 2004 the Council concluded an Agreement 
on Scientific and Technical Cooperation between the European Community and the 
State of Israel, which entered into force on 12 May 2004. 

The  Agreement  associates  the  State  of  Israel  with  all  the  activities  of  the  specific 
programmes  of  the  6th  Framework  Programme  of  the  European  Community  for 
research, technological development and demonstration activities. Article 5 (5) of the 
Agreement  provides  that  "where  the  Community  adopts  a  new  multiannual 
framework  programme  for  research  and  development,  this  Agreement  may  be 
renegotiated or renewed under mutually agreed conditions".  

On 25 September 2005 the State of Israel submitted an official request to renew this 
Agreement  with  a  view  to  being  associated  to  the  7th  Framework  Programme  for 
Research and Development of the European Community (FP7).  

It is in the interest of the Community to renew this Agreement in order to associate 
Israel to the Seventh (EC) Framework Programme and, thus, to allow a continuation 
of the successful S&T cooperation between the parties and the further integration of 
Israel into the European Research Area. 

Consequently, on 3 October 2006 the Commission requested the Council to authorise 
it  to  negotiate  the  renewal  of  the  current  Agreement.  On  18  December  2006  the 
Council  authorised  the  negotiations,  including  the  possibility  of  a  provisional 
application  so  as  to  allow  Israeli  entities  to  participate  with  the  status  of  entities 
established in an Associated Country in the first calls for proposals under FP7. 

The renewal of the Agreement has been negotiated in accordance with the directives 
annexed  to  the  Council  Decision  of  18  December  2006.  The  negotiations  were 
completed  on  15  February  2007,  when  the  authorised  representatives  of  the  two 
parties initialled the annexed draft Agreement. 

The  draft  Agreement  is  based  on  the  principles  of  mutual  benefit,  reciprocal 
opportunities for participating in each party's programmes and activities in the areas 
covered  by  the  Agreement,  non-discrimination,  effective  protection  of  intellectual 
property and equitable sharing of intellectual property rights. 

In  the  context  of  the  renewal  of  the  Agreement  on  Scientific  and  Technical 
Cooperation associating Israel to the Framework Programme, the draft Agreement is 
based  on  the  principles  laid  down  in  its  predecessor,  particularly  with  regard  to 
Israel's  contribution  to  the  budget  of  the  FP.  However  it  has  been  adapted  to  the 
specific features of FP7: 

In particular, it provides for the possible participation of Israel in the legal structures 
created under Articles 169 and 171 of the EC Treaty subject to the rules (Council and 
EP decisions and Council regulations) that will be adopted for the establishment of 
these legal structures and provided that these rules will become applicable in Israel. 
The agreement foresees that the EC/Israel Research Committee in which, according 
to the Article 4 of the Agreement, the Commission represents the Community shall 
decide  on  the  applicability  of  these  rules  in  Israel.  The  Commission,  therefore, 

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invites the Council to authorise the Commission to adopt in the EC/Israel Research 
Committee the position of the Community on decisions according to Article 2 (1) on 
the  applicability  in  Israel  of  the  rules  for  the  establishment  of  the  legal  structures 
created under Articles 169 and 171 of the EC Treaty. 

Furthermore,  the  agreement  foresees  that  the  EC/Israel  Research  Committee  may 
identify on request the regions of Israel that fulfil the criteria set out in Article 5(1) of 
Council  Regulation  (EC)  No  1083/20061  and  may  therefore  be  eligible  regions 
benefiting  from  research  actions  under  the  Work  Programme  "Research  Potential" 
under the specific "Capacities" programme. The Commission invites the Council to 
authorise the Commission to adopt in the EC/Israel Research Committee the position 
of the Community on decisions according to Article 4 (2) of the Agreement on the 
identification of these regions. 

9. 

10. 

Following the entry into force of FP7, in view of the fact that the associated States 
make  annual  contributions  to  the  respective  budgets  and  of  the  time  needed  for 
negotiation  of  this  renewal,  it  is  proposed  that  this  Agreement  should  apply 
provisionally as of 1 January 2007 subject to conclusion at a later date. 

Finally, the representatives of the two parties agreed to attach a Joint declaration of 
the  contracting  parties  on  a  close  dialogue  in  view  of  the  implementation  of  new 
structures implementing Articles 169 and 171 of the EC-Treaty. 

11. 

In the light of the above considerations, the Commission proposes that the Council: 

– 

– 

Approves on behalf of the European Community the attached decisions; 

Notifies the Israeli authorities that the European Community has completed the 
procedures necessary for the entry into force of the Agreement. 

1 

OJ L 210, 31.07. 2006, p.25.  

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Proposal for a 

COUNCIL DECISION 

concerning the signature and provisional application of the Agreement on Scientific and 
Technical Cooperation between the European Community and the State of Israel 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
170, in conjunction with the first sentence of the first subparagraph of Article 300(2),  

Having regard to the proposal from the Commission2, 

Whereas: 

(1) 

(2) 

(3) 

The  Commission  has  negotiated,  on  behalf  of  the  Community  an  Agreement  on 
Scientific  and  Technological  Cooperation  with  the  State  of  Israel  also  providing  for 
provisional  application  of  the  renewed  Agreement  as  of  1  January  2007.  Provisional 
application  would  enable  Israeli  entities  to  participate  in  the  first  calls  for  proposals 
under the Seventh Framework Programme. 

The negotiations resulted in the draft Agreement initialled on 15 February 2007 by the 
authorised representatives of the two parties. 

It  is  necessary  to  sign  the  Agreement  negotiated  by  the  Commission  in  view  of  its 
possible conclusion at a later date. 

HAS DECIDED AS FOLLOWS: 

Article 1 

Subject  to  conclusion  at  a  later  date,  the  President  of  the  Council  is  hereby  authorised  to 
designate  the  person  empowered  to  sign,  on  behalf  of  the  Community,  the  Agreement  on 
Scientific and Technical Cooperation between the European Community of the one part and 
the State of Israel of the other part and the Joint Declaration attached to the Agreement. 

The text of the Agreement is annexed to this Decision. 

2 

JO … 

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Article 2 

The  Agreement  on  Scientific  and  Technological  Cooperation  between  the  European 
Community  of  the  one  part,  and  the  State  of  Israel,  of  the  other  part,  shall  be  applied 
provisionally. 

Article 3 

1. 

2. 

The  Commission  shall  adopt  the  position  of  the  Community  to  be  taken  in  the 
EC/Israel Research Committee established by Article 4 of the Agreement with regard 
to decisions according to Annex I.I.1 of the Agreement on the applicability in Israel 
of  the  rules  for  the  establishment  of  the  legal  structures  created  under  Articles  169 
and 171 of the EC Treaty. 

The  Commission  shall  adopt  the  position  of  the  Community  to  be  taken  in  the 
EC/Israel Research Committee established by Article 4 of the Agreement with regard 
to decisions according to Article 4 (2) of the Agreement identifying regions of Israel 
that  may  be  eligible  regions  benefiting  from  research  actions  under  the  Work 
Programme “Research Potential” under the specific “Capacities” programme. 

Article 4 

The decision shall be published in the Official Journal of the European Union. 

Done at Brussels,  

For the Council 
The President 

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2007/0096 (CNS) 

Proposal for a 

COUNCIL DECISION 

concerning the conclusion of the Agreement on Scientific and Technical Cooperation 
between the European Community and the State of Israel 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Article 170  thereof,  in  conjunction  with  the  first  sentence  of  the  first  subparagraph  of 
Article 300 (2) thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas 

(1) 

(2) 

The  Commission  has  negotiated,  on  behalf  of  the  Community,  the  renewal  of  the 
Agreement on Scientific and Technological Cooperation with the State of Israel; 

The  Agreement  was  signed  on  behalf  of  the  Community  on  xxxxxx  in  Brussels, 
subject to possible conclusion at a later date; 

(3) 

The Agreement should be approved, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The  Agreement  on  Scientific  and  Technological  Cooperation  between  the  European 
Community and the State of Israel is hereby approved on behalf of the Community3. 

3 

For the text of the Agreement, see OJ L xxxxx. 

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Article 2 

The President of the Council shall, acting on behalf of the Community, give the notification 
provided for in Article 5 of the Agreement. 

Done at Brussels, 

For the Council 
The President 

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ANNEX 

AGREEMENT 

on scientific and technical cooperation  

between the European Community and the State of Israel 

THE EUROPEAN COMMUNITY, 

hereinafter ‘the Community’,  

of the one part,  

and 

THE STATE OF ISRAEL, 

hereinafter ‘Israel’,  

of the other part,  

hereinafter referred to as the ‘Parties’, 

CONSIDERING the importance of current scientific and technological cooperation between 
Israel  and  the  Community  and  their  mutual  interest  in  strengthening  it  in  the  context  of  the 
establishment of the European Research Area, 

WHEREAS  Israel  and  the  Community  are  currently  implementing  research  programmes  in 
fields of common interest, 

WHEREAS Israel and the Community have an interest in cooperating on these programmes 
to their mutual benefit, 

CONSIDERING the interest of both Parties in encouraging the mutual access of their research 
entities  to  research  and  development  activities  in  Israel,  on  the  one  hand,  and  to  the 
Community's  framework  programmes  for  research  and  technological  development,  on  the 
other, 

CONSIDERING the Euro-Mediterranean Agreement establishing an Association between the 
European Communities and their Member States, on the one part, and the State of Israel, of 
the  other  part,  which  entered  into  force  on  1  June  2000,  according  to  which  the  Parties 
undertake  to  intensify  scientific  and  technological  cooperation  and  agree  to  set  out  the 
arrangements for the implementation of this objective in separate agreements to be concluded 
for this purpose, 

WHEREAS  the  Community  and  Israel  have  concluded  an  Agreement  on  scientific  and 
technical cooperation for the duration of the sixth framework programme, which provides for 
its renewal under mutually agreed conditions,  

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WHEREAS, by Decision No 1982/2006 EC4, the European Parliament and the Council of the 
European  Union  adopted  the  Seventh  Framework  Programme  of  the  European  Community 
for  research,  technological  development  and  demonstration  activities  (2007  to  2013) 
(hereinafter referred to as ‘the Seventh EC Framework Programme’)  

WHEREAS,  without  prejudice  to  the  relevant  provisions  of  the  Treaty  establishing  the 
European Community, this Agreement and any activities entered into under it will in no way 
affect the powers vested in the Member States to undertake bilateral activities with Israel in 
the  fields  of  science,  technology,  research  and  development,  and  to  conclude,  where 
appropriate, agreements to that end, 

HAVE AGREED AS FOLLOWS 

Article 1 

Scope 

1. 

Israel shall be associated, under the terms and conditions established by, or referred 
to,  in  this  Agreement  and  its  Annexes,  in  the  European  Community  Seventh  EC 
Framework  Programme  for  research,  technological  development  and  demonstration 
activities (2007 to 2013) (hereinafter called ‘Seventh EC Framework Programme’), 
as established by Decision 1982/2006/EC, Regulation (EC) No 2321/2002 modified 
by Regulation (EC) No 1906/20065 of the European Parliament and of the Council of 
18  December  2006  concerning  the  rules  for  the  participation  of  undertakings, 
research centres and universities in, and for the dissemination of research results for, 
the implementation of the European Community Seventh EC Framework Programme 
(2007 to 2013), and by Council Decisions 2006/971/EC, 2006/972/EC, 2006/973 EC, 
2006/974 EC and 2006/975 EC. 

2. 

In addition to the association referred to in paragraph 1, cooperation may include: 

– 

– 

– 

– 

– 

– 

regular discussions on the orientations and priorities for research policies and 
planning in Israel and the Community, 

discussions on cooperation prospects and development, 

timely provision of information concerning the implementation of programmes 
and  research  projects  of  Israel  and  of  the  Community,  and  concerning  the 
results of work undertaken within the framework of this Agreement, 

joint meetings, 

visits and exchanges of research workers, engineers and technicians, 

regular  and  sustained  contacts  between  programme  or  project  managers  of 
Israel and the Community, 

– 

participation of experts in seminars, symposia and workshops. 

4 
5 

OJ L 412, 30.12.2006 
OJ L 391, 30.12.2006 

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1. 

2. 

3. 

Article 2 

Terms and conditions with respect to the association of Israel in the Seventh EC 
Framework Programme 

Legal  entities  of  Israel  shall  participate  in  indirect  actions  and  in  activities  of  the 
Joint  Research  Centre  of  the  Seventh  EC  Framework  Programme  under  the  same 
conditions  as  those  applicable  to  legal  entities  of  Member  States  of  the  European 
Union, subject to the terms and conditions established by, or referred to, in Annexes I 
and  II.  For  Israeli  research  entities,  the  terms  and  conditions  applicable  for  the 
submission and evaluation of proposals and those for the granting and conclusion of 
grant agreements and/or contracts under Community programmes shall be the same 
as those applicable for grant agreements and/or contracts concluded under the same 
programmes with research entities in the Community, taking into account the mutual 
interests of the Community and Israel. 

Legal entities of the Community shall participate in Israel's research programmes and 
projects  in  themes  equivalent  to  those  of  the  Seventh  EC  Framework  Programme 
under the same conditions as those applicable to legal entities of Israel, subject to the 
terms  and  conditions  established  by  Annexes  I  and  II.  A  legal  entity  established  in 
another  country  associated  to  the  Seventh  EC  Framework  Programme  (Associated 
Country) enjoys the same rights and obligations under this agreement as legal entities 
that are established in a Member State provided that the Associated Country in which 
the entity is established has agreed to award legal entities from Israel the same rights 
and obligations. 

Israel  shall  pay  for  every  year  of  the  duration  of  the  Seventh  EC  Framework 
Programme  a  financial  contribution  to  the  general  budget  of  the  European  Union. 
The financial contribution of Israel shall be added to the amount earmarked each year 
in the general budget of the European Union for commitment appropriations to meet 
the financial obligations arising out of different forms of measures necessary for the 
execution,  management  and  operation  of  the  Seventh  framework  programme.  The 
rules governing the calculation and the payment of the financial contribution of Israel 
are set out in Annex III. 

Representatives  of  Israel  shall  participate  as  observers  in  the  committees  of  the 
Seventh EC Framework Programme established by Decision No 2006/512/EC of 17 
July  20066,  amending  Decision  No  1999/468/EC.  These  committees  shall  meet 
without the presence of representatives of Israel at the time of voting. Israel will be 
informed  of  the  result.  Participation  as  referred  to  in  this  paragraph  shall  take  the 
same  form,  including  procedures  for  receipt  of  information  and  documentation,  as 
that applicable to representatives from Member States of the European Union.  

Israeli representatives may participate in the meetings of the Scientific and Technical 
Research  Committee  (CREST).  This  committee  shall  meet  without  the  presence  of 
Israeli  representatives  at  the  time  of  voting  and  otherwise  only  in  special 
circumstances. Israel will be informed of the result. 

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OJ L 200, 22.7.2006, p.11 

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4. 

5. 

1. 

2. 

Representatives of Israel shall participate as observers in the Board of Governors of 
the Joint Research Centre. Participation as referred to in this paragraph shall take the 
same  form,  including  procedures  for  receipt  of  information  and  documentation,  as 
that applicable to representatives from Member States of the European Union. 

Travel costs and subsistence costs incurred by representatives of Israel participating 
in meetings of the committees and bodies referred to in this Article, or in meetings 
related  to  the  implementation  of  the  Seventh  EC  Framework  Programme  organised 
by the Community shall be reimbursed by the Community on the same basis as and 
in  accordance  with  the  procedures  currently  in  force  for  representatives  of  the 
Member States of the European Union. 

Article 3 

Enhancement of cooperation 

The  Parties  will  make  every  effort,  within  the  framework  of  their  applicable 
legislation,  to  facilitate  the  free  movement  and  residence  of  research  workers 
participating in the activities covered by this Agreement and to facilitate cross-border 
movement of goods intended for use in such activities. 

The  Parties  will  ensure  that  no  fiscal  charge  or  levy  shall  be  imposed  upon  the 
transaction  of  transferring  of  funds  between  the  Community  and  Israel,  which  said 
funds are needed for the operation of activities covered by this agreement. 

Article 4 

EC-Israel Research Committee 

1. 

A  joint  committee  called  the  ‘EC-Israel  Research  Committee’  shall  be  established, 
whose functions shall include: 

– 

– 

– 

ensuring, evaluating and reviewing the implementation of this Agreement, 

examining any measure of a nature to improve and develop cooperation, 

regularly  discussing  the  future  orientations  and  priorities  of  research  policies 
and research planning in Israel and the Community and the prospects for future 
cooperation. 

2. 

3. 

The  Committee  may  identify  on  request  of  Israel  regions  of  Israel  that  fulfil  the 
criteria  set  out  in  Article  5  (1)  of  COUNCIL  REGULATION  (EC)  No  1083/20067 
and  may  therefore  be  eligible  regions  benefiting  from  research  actions  under  the 
Work Programme "Research Potential" under the specific "Capacities" programme. 

The EC-Israel Research Committee, which shall be composed of representatives of 
the Commission and of Israel, shall adopt its Rules of Procedure. 

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OJ L 210, 31.7.2006, p. 25-78 

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4. 

The  EC-Israel  Research  Committee  shall  meet  at  least  once  a  year.  Extraordinary 
meetings shall be held at the request of one or other of the Parties. 

Article 5 

Final provisions 

1. 

2. 

Annexes I, II, III and IV shall form an integral part of this Agreement. 

This Agreement is hereby concluded for the duration of the Seventh EC Framework 
Programme. It shall enter into force on the date on which both Parties have notified 
each  other  of  the  completion  of  their  procedures  for  that  purpose  and  shall  be 
provisionally applied as of 1 January 2007. 

This Agreement may only be amended in writing by common consent of the Parties. 
The  entry  into  force  of  the  amendments  will  follow  the  same  procedure  as  those 
applicable for the Agreement itself through diplomatic channels. Either of the Parties 
may  terminate  this  Agreement  at  any  time  upon  6  months  written  notice  through 
diplomatic  channels.  Projects  and  activities  in  progress  at  the  time  of  termination 
and/or  expiry  of  this  Agreement  shall  continue  until  their  completion  under  the 
conditions laid down in this Agreement. The Parties shall settle by common consent 
any other consequences of termination. 

3. 

Should a Party notify the other that it shall not conclude the Agreement, it is hereby 
mutually agreed that: 

– 

– 

– 

the Community shall reimburse to Israel its contribution to the general budget 
of the European Union referred to in Article 2(2), 

however, funds committed by the Community in relation to the participation of 
Israeli legal entities in indirect actions, including reimbursements referred to in 
Article  2(5),  shall  be  deducted  by  the  Community  from  the  abovementioned 
reimbursement, 

projects and activities launched under this provisional application and that are 
still  in  progress  at  the  time  of  the  abovementioned  notification  shall  continue 
until their completion under the conditions laid down in this Agreement. 

4. 

5. 

Should the Community decide to revise the Seventh EC Framework Programme, it 
shall  notify  Israel  of  the  exact  content  of  these  revisions  within  one  week  of  their 
adoption  by  the  Community.  In  case  of  such  revision  or  extension  of  the  research 
programmes, Israel may terminate this Agreement by giving six months' notice. The 
Parties  shall  give  notice  of  any  intention  to  terminate  or  to  extend  this  Agreement 
within three months after the adoption of the Communities' decision. 

Where  the  Community  adopts  a  new  multi-annual  framework  programme  for 
research, technological development and demonstration activities, a new Agreement 
may be renegotiated or renewed under mutually agreed conditions, at the request of 
either of the Parties. 

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6. 

7. 

This Agreement shall apply, on the one hand, to the territories in which the Treaty 
establishing the European Community is applied and under the conditions laid down 
in that Treaty and, on the other hand, to the territory of the State of Israel. 

This Agreement shall be drawn up in duplicate in Bulgarian, Czech, Danish, Dutch, 
English,  Estonian,  Finnish,  French,  German,  Greek,  Hungarian,  Italian,  Latvian, 
Lithuanian,  Maltese,  Polish,  Portuguese,  Romanian,  Slovak,  Slovene,  Spanish, 
Swedish and Hebrew languages, each text being equally authentic. 

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ANNEX I 

TERMS AND CONDITIONS FOR THE PARTICIPATION OF LEGAL ENTITIES OF 
MEMBER STATES OF THE EUROPEAN UNION AND OF ISRAEL 

For  the  purpose  of  this  Agreement,  a  ‘legal  entity’  means  any  natural  person,  or  any  legal 
person created under the national law of its place of establishment or under Community law, 
having  legal  personality  and  being  entitled  to  have  rights  and  obligations  of  any  kind  in  its 
own name. 

I. Terms and conditions for the participation of legal entities of Israel in indirect actions 
of the Seventh EC Framework Programme  

1. 

2. 

3. 

Participation and funding of legal entities established in Israel in indirect actions of 
the  Seventh  EC  Framework  Programme  shall  follow  the  conditions  laid  down  for 
‘associated  countries’  in  Regulation  (EC)  No  2321/2002  modified  by  Regulation 
(EC)  No  1906/2006.  In  case 
the 
implementation  of  Articles  169  and  171  of  the  Treaty  establishing  the  European 
Community, Israel shall be allowed to participate in the legal structures created under 
these provisions subject to the decisions and regulations that will be adopted for the 
establishment  of  these  legal  structures  and  provided  that  these  decisions  and 
regulations will become applicable in Israel. The Joint Committee shall decide on the 
applicability of these decisions and regulations in Israel. 

the  Community  makes  provisions  for 

Legal  entities  established  in  Israel  shall  be  eligible  for  participation  in  indirect 
actions  based  on  Articles  169  and  171  of  the  Treaty  establishing  the  European 
Community  under  the  same  conditions  as  legal  entities  established  in  the  Member 
States. 

Legal  entities  established  in  Israel  shall  be  eligible,  under  the  same  conditions  as 
legal entities established in the Member States, for loans the EIB makes in support of 
research  objectives  set  out  under  the  7th  framework  programme  (Risk-Sharing 
Finance Facility). 

Legal  entities  of  Israel  shall  be  taken  into  consideration,  alongside  those  of  the 
European  Community,  for  the  selection  of  an  adequate  number  of  independent 
experts  for  the  tasks  and  under  the  conditions  foreseen  in  Articles  17  and  27  of 
Regulation (EC) No 1906/2006 and for participation in various groups and advisory 
Committees of the Seventh EC Framework Programme taking into account the skills 
and knowledge appropriate to the tasks assigned to them. 

In  conformity with Regulation (EC) No 1906/2006 and the European Community's 
Financial  Regulations,  a  grant  agreements  and/or  contracts  concluded  by  the 
Community with any legal entity of Israel in order to perform an indirect action shall 
provide  for  controls  and  audits  to  be  carried  out  by,  or  under  the  authority  of,  the 
Commission  or  the  Court  of  Auditors  of  the  European  Communities.  In  a  spirit  of 
cooperation  and  mutual  interest,  the  relevant  authorities  of  Israel  shall  provide  any 
reasonable  and  feasible  assistance  as  may  be  necessary  or  helpful  under  the 
circumstances to perform such controls and audits. 

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II. Terms and conditions for the participation of legal entities of Member States of the 
European Union in Israel's research programmes and projects 

1. 

2. 

The  participation  of  legal  entities  established  in  the  Community,  created  under  the 
national  law  of  one  of  the  Member  States  of  the  European  Union  or  under 
Community  law,  in  projects  of  Israel  research  and  development  programmes  may 
require  the  joint  participation  of  at  least  one  Israeli  legal  entity.  Proposals  for  such 
participation  shall  be  submitted  jointly,  where  required,  with  the  Israeli  legal 
entity/ies. 

Subject  to  paragraph  1  and  to  Annex  II,  the  rights  and  obligations  of  legal  entities 
established  in  the  Community  participating  in  Israel's  research  projects  within 
research and  development programmes, the terms and conditions applicable for the 
submission and evaluation of proposals and for the granting and conclusion of grant 
agreements  and/or  contracts  in  such  projects  shall  be  subject  to  Israel's  laws, 
regulations  and  government  directives  governing  the  operation  of  research  and 
development programmes, as well as national security constraints where applicable, 
as  applicable  to  Israeli  legal  entities  and  assuring  equitable  treatment,  taking  into 
account the nature of the cooperation between Israel and the Community in this field. 

Funding  of  legal  entities  established  in  the  Community  participating  in  Israel's 
research  projects  within  research  and  development  programmes  shall  be  subject  to 
Israel's  laws,  regulations  and  government  directives  governing  the  operation  of 
research and development programmes, as well as national security constraints where 
applicable, as applicable to non-Israeli legal entities participating in Israel's research 
projects within research and development programmes. In the case where funding is 
not  provided  to  the  non-Israeli  legal  entities,  Community  legal  entities  shall  cover 
their  own  costs,  including  their  relative  share  of  the  project's  general  management 
and administrative costs. 

3. 

Depending on the nature of the project, proposals may be submitted to: 

(i) the Office of the Chief Scientist in the Ministry of Industry ,Trade and Labor for 
joint industrial research and development projects with Israeli companies. There are 
no  predefined  fields  in  this  research  and  development  programme.  Joint  project 
proposals may be submitted in any field of industrial research and development. In 
addition,  within  the  Magnet  programme,  proposals  may  be  submitted  by  Israeli 
companies for cooperation with research entities established in the Community. Such 
cooperation  will  require  the  agreement  of  the  relevant  consortium  and  the  Magnet 
management; 

(ii)  the  Ministry  of  Science,  Culture  and  Sport  for  strategic  research,  in  priority 
topics.  The  topics  are  determined  yearly  and  are  specified  in  an  open  call  for 
proposals; 

(iii) the Office of the Chief Scientist in the Ministry of Agriculture — the Fund for 
the encouragement of agricultural research; 

(iv) the office of the Chief Scientist in the Ministry of National Infrastructures, in the 
fields of energy, infrastructure development and earth sciences; 

EN 

15 

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(v) the Office of the Chief Scientist in the Ministry of Health and the newly founded 
Medical  Research  Council,  which  included  the  granting  Agency  for  Biomedical 
Research. 

4. 

Israel  shall  regularly  inform  the  Community  and  Israeli  legal  entities  of  current 
Israeli programmes and participation opportunities for legal entities established in the 
Community. 

EN 

16 

   EN 

 
ANNEX II 

PRINCIPLES ON THE ALLOCATION OF INTELLECTUAL PROPERTY RIGHTS 

I. Application 

For  the  purposes  of  this  Agreement:  ‘intellectual  property’  shall  have  the  meaning  given  in 
Article 2 of the Convention establishing the World Intellectual Property Organisation, done at 
Stockholm  on  14  July  1967,  ‘knowledge’  shall  mean  the  results,  including  information, 
whether  or  not  they  can  be  protected,  as  well  as  copyrights  or  rights  pertaining  to  such 
information  following  applications  for,  or  the  issue  of  patents,  designs,  plant  varieties, 
supplementary protection certificates or similar forms of protection. 

II. Intellectual property rights of legal entities of the Parties 

1. 

2. 

3. 

Each  Party  shall  ensure  that  the  intellectual  property  rights  of  legal  entities  of  the 
other Party participating in activities carried out pursuant to this Agreement, and the 
related  rights  and  obligations  arising  from  such  a  participation,  shall  be  consistent 
with  the  relevant  international  conventions  that  are  applicable  to  the  Parties, 
including the TRIPS Agreement (Agreement on trade-related aspects of intellectual 
property rights administered by the World Trade Organisation) as well as the Berne 
Convention (Paris Act 1971) and the Paris Convention (Stockholm Act 1967). 

Legal  entities  of  Israel  participating  in  an  indirect  action  of  the  Seventh  EC 
Framework  Programme  shall  have  rights  and  obligations  on  intellectual  property 
under  the  conditions  laid  down  in  Regulation  (EC)  No  1906/2006  and  in  the  grant 
agreements  and/or  contracts  concluded  with  the  European  Community  accordingly, 
and  that  shall  comply  with  paragraph  1.  Where  Israel  participates  in  an  indirect 
action  of  the  Seventh  EC  Framework  Programme  implemented  pursuant  to  Article 
169 of the Treaty establishing the European Community, Israel shall have the same 
rights and obligations on intellectual property as those of the participating Member 
States laid down in the relevant decision of the European Parliament and the Council 
and  the  grant  agreement  and/or  contract  concluded  with  the  European  Community 
accordingly, and that shall comply with paragraph 1. 

Legal  entities  of  the  Community  participating  in  Israel's  research  programme  or 
projects shall have the same rights and obligations on intellectual property as those of 
legal  entities  established  in  Israel  participating  in  such  research  programme  or 
projects, and that shall comply with paragraph 1. 

III. Intellectual property rights of the Parties 

1. 

Except if otherwise specifically agreed by the Parties, the following rules shall apply 
to  knowledge  generated  by  the  Parties  in  the course  of  activities  carried  out  within 
Article 1(2) of this Agreement: 

(a) 

the  Party  generating  such  knowledge  shall  be  the  owner  of  that  knowledge. 
Where their respective share of the work cannot be ascertained, they shall have 
joint ownership of such knowledge; 

EN 

17 

   EN 

 
(b) 

the  Party  owning  that  knowledge  shall  grant  access  rights  on  it  to  the  other 
Party  for  carrying  out  activities  referred  to  in  Article  1(2)  of  this  Agreement. 
Such access rights shall be granted on a royalty-free basis. 

2. 

Except if otherwise specifically agreed by the Parties, the following rules shall apply 
to scientific literary works of the Parties: 

(a) 

(b) 

in  the  case  where  a  Party  publishes  scientific  and  technical  data,  information 
and results, by means of journals, articles, reports, books, including video and 
software,  arising  and  relating  to  activities  carried  out  pursuant  to  this 
Agreement, a worldwide, non-exclusive, irrevocable, royalty-free licence shall 
be  granted  to  the  other  Party  to  translate,  reproduce,  adapt,  transmit  and 
publicly distribute such works; 

all  copies  of  data  and  information,  protected  by  copyright,  that  have  to  be 
publicly distributed and prepared under this section shall indicate the names of 
the  author(s)  of  the  work  unless  an  author  explicitly  declines  to  be  named. 
They  shall  also  bear  a  clearly  visible  acknowledgement  of  the  cooperative 
support of the Parties. 

3. 

Except if otherwise specifically agreed by the Parties, the following rules shall apply 
to undisclosed information of the Parties: 

(a)  when  communicating  to  the  other  Party  information  relating  to  activities 
carried  out  pursuant  to  this  Agreement,  each  Party  shall  identify  that 
information it wishes to remain undisclosed; 

(b) 

the receiving Party may under its own responsibility communicate undisclosed 
information to bodies or persons under its authority for the specific purposes of 
implementing this Agreement; 

(c)  with the prior written consent of the Party providing undisclosed information, 
the receiving Party may disseminate such undisclosed information more widely 
than  otherwise  permitted  in  paragraph  2.  The  Parties  shall  cooperate  in 
developing  procedures  for  requesting  and  obtaining  prior  written  consent  for 
such  wider  dissemination,  and  each  Party  will  provide  such  approval  to  the 
extent permitted by its domestic policies, regulations and laws; 

(d)  non-documentary  undisclosed  or  other  confidential  information  provided  in 
seminars  and  other  meetings  between  representatives  of  the  Parties  arranged 
under this Agreement, or information arising from the attachment of staff, use 
of facilities or indirect actions, shall remain confidential when the recipient of 
such  undisclosed  or  other  confidential  or  privileged  information  was  made 
aware  of  the  confidential  character  of  the  information  communicated  at  the 
time such communication was made, according to paragraph 1; 

(e) 

each Party shall endeavour to ensure that undisclosed information received by 
it  under  paragraphs  1  and  3  is  controlled  as  provided  herein.  If  one  of  the 
Parties  becomes  aware  that  it  will  be,  or  may  be  reasonably  expected  to 
become,  unable  to  meet  the  non-dissemination  provisions  laid  down  in 

EN 

18 

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paragraphs  1  and  3,  it  shall  immediately  inform  the  other  Party.  The  Parties 
shall thereafter consult to define an appropriate course of action. 

EN 

19 

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ANNEX III 

RULES GOVERNING THE FINANCIAL CONTRIBUTION OF ISRAEL TO THE 
SEVENTH EC FRAMEWORK PROGRAMME 

I. Calculation of Israel's financial contribution 

1. 

2. 

3. 

The financial contribution of Israel to the Seventh EC Framework Programme shall 
be  established  on  a  yearly  basis  in  proportion  to,  and  in  addition  to,  the  amount 
available  each  year  in  the  general  budget  of  the  European  Union  for  commitment 
appropriations  needed  for  the  implementation,  management  and  operation  of  the 
Seventh EC Framework Programme. 

The  proportionality factor governing the contribution of Israel  shall be obtained  by 
establishing the ratio between the gross domestic product of Israel, at market prices, 
and  the sum of gross domestic products, at  market  prices,  of  the  Member  States  of 
the European Union and Israel. This ratio shall be calculated on the basis of the latest 
statistical  data  pertaining  to  the  same  year  from  the  International  Bank  for 
Reconstruction  and  Development,  available  at  the  time  of  publication  of  the 
preliminary draft budget of the European Union. 

The Commission shall communicate to Israel, as soon as possible, and at the latest on 
1  September  of  the  year  before  each  financial  year,  the  following  information 
together with relevant background material: 

– 

– 

the amounts in commitment appropriations, in the statement of expenditure of 
the  preliminary  draft  budget  of  the  European  Union  corresponding  to  the 
Seventh EC Framework Programme , 

the  estimated  amount  of  the  contributions  derived  from  the  preliminary  draft 
budget,  corresponding  to  the  participation  of  Israel  in  the  Seventh  EC 
Framework Programme according to paragraphs 1, 2 and 3. 

Once  the  general  budget  has  been  finally  adopted,  the  Commission  shall  communicate  to 
Israel,  in  the  statement  of  expenditure  corresponding  to  Israel's  participation,  the  final 
amounts referred to in the first subparagraph. 

II. Payment of Israel's financial contribution 

1. 

The Commission shall issue, at the latest in January and June of each financial year, 
a  call  for  funds  to  Israel  corresponding  to  its  contribution  under  this  Agreement. 
These calls for funds shall provide, respectively, for the payment: 

of six-twelfths of Israel's contribution not later than 60 days after receipt of the calls 
for funds. However, the six-twelfths to be paid not later than 60 days after receipt of 
the call issued in January shall be calculated on the basis of the amount set out in the 
statement of revenue of the preliminary draft budget: the regularisation of the amount 
thus paid shall occur with the payment of the six-twelfths not later than 30 days after 
receipt of the call for funds issued at the latest in June. 

EN 

20 

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2. 

3. 

4. 

5. 

For the first year of implementation of this Agreement, the Commission shall issue a 
first call for funds within 30 days of its provisional application. Should this call be 
issued  after  15  June,  it  shall  provide  for  the  payment  of  twelve/twelfths  of  Israel's 
contribution  within  60  days,  calculated  on  the  basis  of  the  amount  set  out  in  the 
statement of revenue of the budget. 

The  contribution  of  Israel  shall  be  expressed  and  paid  in  euro.  Payment  by  Israel 
shall  be  credited  to  the  Community  programmes  as  budgetary  revenue  allocated  to 
the appropriate budget heading in the statement of revenue of the general budget of 
the  European  Union.  The  Financial  Regulation  applicable  to  the  general  budget  of 
the European Union shall apply to the management of the appropriations. 

Israel  shall  pay  its  contribution  under  this  Agreement  according  to  the  schedule  in 
paragraph  1.  Any  delay  in  the  payment  of  the  contribution  shall  give  rise  to  the 
payment  of  default  interest  by  Israel  on  the  outstanding  amount  from  the  due  date. 
The interest rate shall be the rate applied by the European Central Bank to its main 
refinancing operations in euro on the due date, increased by 1, 5 percentage points. 

In case the delay in the payment of the contribution is such that it may significantly 
jeopardise  the  implementation  and  management  of  the  programme,  participation  in 
the  programme  of  Israel  for  the  concerned  financial  year  will  be  suspended  by  the 
Commission following the absence of payment 20 working days after a formal letter 
of  reminder  sent  to  Israel,  without  prejudice  to  the  Community's  obligations 
according  to  grant  agreements  and/or  contracts  already  concluded  pertaining  to  the 
implementation of selected indirect actions. 

At  the  latest  on  31  May  of  the  year  following  a  financial  year,  the  statement  of 
appropriations for the Seventh EC Framework Programme that financial year shall be 
prepared  and  transmitted  to  Israel  for  information,  according  to  the  format  of  the 
Commission's revenue and expenditure account. 

The Commission, at the time of the closure of the accounts relating to each financial 
year,  within  the  framework  of  the  establishment  of  the  revenue  and  expenditure 
account,  shall  proceed  to  the  regularisation  of  the  accounts  with  respect  to  the 
participation of Israel. This regularisation shall take into consideration modifications 
which  have 
transfer,  cancellations,  carryovers, 
decommitments,  or  by  supplementary  and  amending  budgets  during  the  financial 
year. This regularisation shall occur at the time of the second payment for the next 
financial year, and for the last financial year in July 2014. Further regularisation shall 
occur every year until July 2016. 

taken  place,  either  by 

EN 

21 

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ANNEX IV 

FINANCIAL CONTROL OF ISRAELI PARTICIPANTS IN THE COMMUNITY 
PROGRAMMES COVERED BY THIS AGREEMENT 

I. Direct Communication 

The  Commission  shall  communicate  directly  with  the  participants  in  the  EC  7th  Framework 
programme  established  in  Israel  and  with  their  subcontractors.  They  may  submit  directly  to 
the  Commission  all  relevant  information  and  documentation  which  they  are  required  to 
submit  on  the  basis  of  the  instruments  referred  to  in  this  Agreement  and  of  the  grant 
agreements and/or contracts concluded to implement them. 

II. Audits 

1. 

2. 

3. 

4. 

In  accordance  with  Council  Regulation  (EC,  Euratom)  No  1605/2002,  amended  by 
Council  Regulation  (EC,  Euratom)  No  1995  /20068  on  the  Financial  Regulation 
applicable  to  the  general  budget  of  the  European  Communities  and  Commission 
Regulation  (EC,  Euratom)  No  1248/20069  amending  Regulation  (EC,  Euratom)  No 
2342/2002 laying down detailed rules for the implementation of Council Regulation 
(EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general 
budget  of  the  European  Communities  and  with  the  other  rules  referred  to  in  this 
Agreement, the grant agreements and/or contracts concluded with participants in the 
programme  established  in  Israel  may  provide  for  scientific,  financial,  technological 
or other audits to be conducted at any time on the premises of the participants and of 
their  subcontractors  by  Commission  agents  or  by  other  persons  mandated  by  the 
Commission.  

Commission agents, the European Court of Auditors and other persons mandated by 
the Commission shall have appropriate access to sites, works and documents and to 
all the information required in order to carry out such audits, including in electronic 
form, subject to the inclusion of this right of access that shall be stated explicitly in 
the  grant  agreements  and/or  contracts  concluded  to  implement  the  instruments 
referred to in this Agreement with participants from Israel. 

The  audits  may  be  conducted  after  the  Seventh  EC  and  Euratom  Framework 
Programmes  or  this  Agreement  expire,  on  the  terms  laid  down  in  the  grant 
agreements and/or contracts in question. 

The  competent  Israeli  authority  designated  by  the  Israeli  government  shall  be 
informed  in  advance  of  the  audits  conducted  on  Israeli  territory.  Such  notification 
shall not be a legal precondition for carrying out such audits. 

III. On-The-Spot Checks 

1. 

8 
9 

EN 

Within  the  framework  of  this  Agreement,  the  Commission  (OLAF)  shall  be 
authorised  to  carry  out  on-the-spot  checks  and  inspections  in  the  premises  of 

OJ L 390, 30.12.2006 
OJ L 227, 19.08.2006 

22 

   EN 

 
                                                 
2. 

3. 

4. 

5. 

participants  and  their  subcontractors  from  Israel,  in  accordance  with  the  terms  and 
conditions laid down in Council Regulation (Euratom, EC) No 2185/9610. 

On-the-spot  checks  and  inspections  shall  be  prepared  and  conducted  by  the 
Commission in close collaboration with the competent Israeli authority designated by 
the  Israeli  government  as  stipulated  in  Appendix  A  of  this  Annex.  The  designated 
authority  shall  be  notified  a  reasonable  time  in  advance  of  the  object,  purpose  and 
legal basis of the checks and inspections, so that they can provide assistance. To that 
end,  the  officials  of  the  competent  Israeli  authorities  may  participate  in  the  on-the-
spot checks and inspections. 

If  the  Israeli  authorities  concerned  so  wish,  the  on-the-spot  checks  and  inspections 
may be carried out jointly by the Commission and them. 

Where  the  participants  in  the  Seventh  EC  Framework  Programme  resist  an  on-the-
spot  check  or  inspection,  the  Israeli  authorities,  acting  in  accordance  with  national 
rules and regulations, shall assist the Commission inspectors, to a reasonable extent 
as needed to allow them to fulfil their duty in carrying out an on-the-spot check or 
inspection. 

The  Commission  shall  report  as  soon  as  possible  to  the  competent  Israeli  authority 
any  fact  or  suspicion  relating  to  an  irregularity  which  has  come  to  its  notice  in  the 
course of the on-the-spot check or inspection. In any case the Commission shall be 
required  to  inform  the  abovementioned  authority  of  the  result  of  such  checks  and 
inspections. 

IV. Information and Consultation 

1. 

2. 

For the purposes of proper implementation of this Annex, the competent Israeli and 
Community  authorities  shall  regularly  exchange  information,  unless  forbidden  or 
unauthorized  by  national  rules  and  regulations  and,  at  the  request  of  one  of  the 
Parties, shall conduct consultations. 

The  competent  Israeli  authorities  shall  inform  the  Commission  within  reasonable 
time of any fact or suspicion which has come to their notice relating to an irregularity 
in connection with the conclusion and implementation of the grant agreements and/or 
contracts concluded in application of the instruments referred to in this Agreement. 

V. Confidentiality 

Information  communicated  or  acquired  in  any  form  under  this  Annex  shall  be  covered  by 
professional  secrecy  and  protected  in  the  same  way  as  similar  information  is  protected  by 
Israeli  law  and  by  the  corresponding  provisions  applicable  to  the  Community  institutions. 
Such  information  may  not  be  communicated  to  persons  other  than  those  within  the 
Community  institutions  or  in  the  Member  States  or  Israel  whose  functions  legally  require 
them to know it nor may it be used for purposes other than to ensure effective protection of 
the Parties' financial interests11. 

10 
11 

OJ L 292, 15.11.1996, p.2 
OJ L 312, 23.12.1995, p.1 

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23 

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VI. Administrative Measures And Penalties 

Without prejudice to application of Israeli criminal law, administrative measures and penalties 
may  be  imposed  by  the  Commission  in  accordance  with  Regulations  (EC,  Euratom)  No 
1605/2002,  amended  by  Council  Regulation  (EC,  Euratom)  No  1995  /2006  and  (EC, 
Euratom) No 2342/2002 amended by Commission Regulation (EC, Euratom) No 1248/2006 
and  with  Council  Regulation  (EC,  Euratom)  No  2988/95  of  18  December  1995  on  the 
protection of the European Communities' financial interests. 

VII. Recovery and Enforcement 

Decisions taken by the Commission under the Seventh EC Framework Programme within the 
scope  of  this  Agreement  which  impose  a  pecuniary  obligation  on  persons  other  than  States 
shall  be  enforceable  in  Israel  by  means  of  civil  procedure  in  an  Israeli  Court.  The  relevant 
enforcement provisions are incorporated in the grant agreements with participants from Israel. 
The  enforcement  order  shall  be  submitted  to  the  Israeli  Court,  without  any  further  control 
other  than  verification  of  the  authenticity  of  the  act,  by  the  authorities  designated  by  the 
Government of the State of Israel, which shall inform the Commission thereof. Enforcement 
shall  take  place  in  accordance  with  the  Israeli  rules  of  procedure.  The  legality  of  the 
enforcement  decision  shall  be  subject  to  control  by  the  Court  of  Justice  of  the  European 
Communities.  Judgments  given  by  the  Court  of  Justice  of  the  European  Communities 
pursuant to an arbitration clause in a grant agreement and/or contract under the Seventh EC 
and Euratom Framework Programmes shall be enforceable on the same terms. 

EN 

24 

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APPENDIX A 

For the purposes  of Article III of Annex IV, in civil or administrative issues the designated 
Israeli Authority shall be the Office of the Chief Scientist of the Ministry of Industry, Trade 
and Labor. However, with respect to issues relating to the performance of an investigation or 
an inspection, the designated Israeli Authority shall be the Department of International Affairs 
of the Office of the State's Attorney in the Israeli Ministry of Justice. 

EN 

25 

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The Plenipotentiaries 

of the EUROPEAN COMMUNITY 

and 

of the STATE OF ISRAEL, 

meeting  at  .....  on  .......  for  the  signature  of  the  Agreement  on  Scientific  and  Technological 
Cooperation between the European Community on the one hand, and the State of Israel on the 
other hand, have adopted the following Joint Declaration: 

Joint  Declaration  of  the  Contracting  Parties  on  a  close  dialogue  in  view  of  new  structures 
implementing Articles 169 and 171 of the EC Treaty. 

Done at .............................. 

For the European Communities 

For the State of Israel 

EN 

26 

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JOINT DECLARATION OF THE CONTRACTING PARTIES ON A CLOSE 
DIALOGUE IN VIEW OF NEW STRUCTURES IMPLEMENTING ARTICLES 169 
AND 171 OF THE EC TREATY 

The  two  Parties  declare  that,  with  a  view  to  ensuring  the  proper  implementation  of  Annex 
I.I.1 of this Agreement, Israel will be timely informed as appropriate about preparatory works 
regarding  structures  based  on  Articles  169  and/or  171  of  the  EC  Treaty  to  be  implemented 
under the 7th Framework Programmes.  

EN 

27 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL 

Proposal for a decision of the Council and of the Commission on the signature and conclusion 
on  behalf  of  the  European  Community  of  the  Agreement  on  Scientific  and  Technological 
Cooperation between the European Community of the one part and the State of Israel of the 
other part. 

2. 

ABM / ABB FRAMEWORK 

Policy strategy and coordination of the Directorates-General RTD, JRC, ENTR, INFSO and 
TREN. 

3. 

3.1 

BUDGET LINES 

Budget  lines  (operational  lines  and  related  technical  and  administrative  assistance 
lines (ex- B.A lines) including headings: 

- 
Participation in indirect action by Israeli entities, as well as costs in connection 
with the implementation of the Agreement (travelling expenses of European experts 
and of Commission officials on mission, workshops, seminars and meetings) will be 
charged  to  the  specific  budget  headings  for  the  specific  programmes  of  the 
Framework Programme of the European Community (XX.01.05.03) 

- 

Israeli participation 

Chapter  6013  (Title  6,  revenue),  Articles  10.02.02,  02.04.03,  06.06.04, 

08.21.04, 09.04.02, (Expenditure). 

Israel's contribution to the Framework Programme budget will be proportionate to its 
GDP compared with that of the Union (see annex). 

3.2. 

Duration of the action and of the financial impact: 

From 1 January 2007 for the duration of the Seventh EC Framework Programme as 
laid down in Article 5 of the Agreement. 

3.3. 

Budgetary characteristics: 

Budget 
line 

Expenditure 
type 

New 

EFTA 
contribution 

Contributions from 
applicant countries 

Heading in financial 
perspective 

xx01.05.03  Non-
comp 

Non-
diff12 

NO 

YES 

YES 

No 3 

12 

Non-differentiated appropriations. 

EN 

28 

   EN 

 
 
                                                 
4. 

SUMMARY OF RESOURCES 

4.1  Financial Resources 

4.1.1.  Summary  of  commitment  appropriations  (CA)  and  payment  appropriations 
(PA) 

Section 
no. 

EUR million (to 3 decimal places) 

. 

Expenditure type 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

 Operational expenditure13 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

Administrative expenditure within reference amount14 

Technical 
administrative 
assistance (NDA) 

& 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

1,099 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT 

Commitment 
Appropriations 

Payment 
Appropriations 

a
+
c 

b
+
c 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

1,099 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

0,157 

1,099 

Administrative expenditure not included in reference amount15 

0,0585  0,0585  0,0585  0,0585  0,0585  0,0585  0,0585  0,4095 

0 

0 

0 

0 

0 

0 

0 

Human  resources  and 
associated  expenditure 
(NDA) 

than 

costs, 
Administrative 
human 
other 
resources 
and 
associated  costs,  not 
included 
in  reference 
amount (NDA) 

8.2.5 

d 

8.2.6 

e 

13 
14 
15 

Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within Article xx 01 04 of Title xx. 
&Expenditure within Chapter xx 01 other than Articles xx 01 04 or xx 01 05. 

EN 

29 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Total indicative financial cost of intervention 

TOTAL  CA 
cost 
Resources 

of 

TOTAL  PA 
cost 
of 
Resources 

including 
Human 

including 
Human 

Co-financing details 

a+c
+d+
e 

b+c
+d+
e 

0,2155 

0,2155  0,2155  0,2155  0,2155  0,2155  0,2155  15085 

0,2155 

0,2155  0,2155  0,2155  0,2155  0,2155  0,2155  1,5085 

If  the  proposal  involves  co-financing  by  Member  States,  or  other  bodies  (please  specify 
which),  an  estimate  of  the  level  of  this  co-financing  should  be  indicated  in  the  table  below 
(additional  lines  may  be  added  if  different  bodies  are  foreseen  for  the  provision  of  the  co-
financing): 

Co-financing body 

2007

2008

2009

2010 2011

2012  2013  Total 

EUR million (to 3 decimal places) 

…………………… 

f 

TOTAL  CA  including 
co-financing 

a+c+d
+e+f 

4.1.2  Compatibility with Financial Programming 

x 

Proposal is compatible with existing financial programming. 

(cid:133) 

(cid:133) 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Inter-institutional 
Agreement16 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3  Financial impact on Revenue 

(cid:133) 

Proposal has no financial implications on revenue 

x 

Proposal has financial impact – the effect on revenue is as follows: 

Note: All details and observations relating to the method of calculating the effect 
on revenue should be shown in a separate annex. 

N.B.: 

– 

The  calculation  is  based  on  the  2007  preliminary  draft  budget  for  EUR27, 
pending  adoption  of  the  definitive  budget  for  2007  and  revision  of  the  legal 
bases. 

16 

See points 19 and 24 of the Inter-institutional agreement. 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
– 

The proportionality factors for the years 2008 to 2013 will also be adjusted in 
line  with  GDP  trends  at  the  time  of  publication  of  each  preliminary  draft 
budget. 

Budget line 

Revenue* 

Prior to 
action 
[Year n-
1] 

EUR million (to three decimal places) 

Situation following action 

2007  2008  2009 2010 2011 2012 

2013 

Total 

a) Revenue in absolute terms  0 

601.3 

b) Change in revenue 

 Δ 

*estimated revenue  

46,246 50,884 54,783 60,926 68,737 

75,583 

82,405 439,565

(Please specify each revenue budget line involved, adding the appropriate number 
of rows to the table if there is an effect on more than one budget line.) 

4.2  Human Resources FTE (including officials, temporary and external staff) – see 
detail under point 8.2.1. 

Annual requirements 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Total 
number 
human resources 

of 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

0.5 

5. 

CHARACTERISTICS AND OBJECTIVES 

Details  of  the  context  of  the  proposal  are  required  in  the  Explanatory  Memorandum. 
This section of the Legislative Financial Statement should include the following specific 
complementary information: 

5.1. 

Needs to be met in the short or long term: 

This decision will allow Israel, as an associated country, to be associated to the 7th 
EC  research  Framework  Programme  and  to  participate  in  research  activities  at 
Community level.  

5.2 

Value-added  of  Community  involvement  and  coherence  of  the  proposal  with  other 
financial instruments and possible synergy: 

Community  funding  is  a  pre-requisite  for  encouraging  and  facilitating  Israel’s 
participation in the research framework programmes.  

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.3 

Objectives, expected  results and  related indicators of  the proposal in the context of 
the ABM framework 

The  Association  Agreement  should  enable  Israel  and  the  Community  to  derive 
mutual benefit through reciprocal access to their research programmes. 

5.4. 

Method of Implementation (indicative) 

Show below the method(s)17 chosen for the implementation of the action. 

X Centralised Management 

× 

Directly by the Commission 

(cid:133) 

Indirectly by delegation to: 

(cid:133)  Executive Agencies 

(cid:133)  Bodies  set  up  by  the  Community  as  referred  to  in  Art.  185  of 
the Financial Regulation 

(cid:133)  National  public-sector  bodies/bodies  with  public-service 
mission. 

(cid:133) Shared or decentralised management 

(cid:133)  With Member States 

(cid:133)  With third countries 

(cid:133) Joint management with international organisations (please specify) 

Relevant comments: 

6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

(a)  Performance indicators 

– 

– 

 number  of  proposals  put  forward  by  Israel  compared  with  the  number  of 
proposals  selected  for  funding  both  for  each  specific  programme  and  for  the 
Framework Programme as a whole; 

 number  of  proposals  put  forward  under  the  specific  programmes  of  the 
Framework  Programme  compared  with 
the  relative  share  of  Israel's 
participation in those programmes; 

17 

If  more  than  one  method  is  indicated  please  provide  additional  details  in  the  "Relevant  comments" 
section of this point. 

EN 

32 

   EN 

 
 
 
 
                                                 
– 

 number of Israeli legal entities selected for funding in the specific programmes 
of  the  Framework  programme  compared  with  Israel's  relative  participation  in 
those programmes. 

(b)  Gathering of information: 

On the basis of the data on the specific programmes of the Framework Programmes. 

(c)  Overall evaluation: 

At  the  end  of  the  7th  EC  Framework  Programme  the  Commission  will  evaluate  all 
cooperation activities covered by the Agreement. 

7. 

ANTI-FRAUD MEASURES 

When  the  implementation  of  the  Framework  Programme  calls  for  the  use  of  external 
contractors  or  entails  granting  financial  contributions  to  third  parties,  the  Commission  will 
carry out financial audits. The Community's financial audits will be carried out either by its 
own staff or by accounting experts approved according to the law of the audited party. 

In  order  to  protect  the  financial  interests  of  the  European  Communities,  rules  on  checks, 
measures  and  sanctions,  with  reference  to  Regulations  Nos  2988/95,  2185/96,  1073/99  and 
1074/99,  will  be  incorporated  in  all  grant  agreements  and/or  contracts  used  in  the 
implementation of the Framework Programme. 

In particular, the following points will have to be provided for in the grant agreements and/or 
contracts: 

– 

– 

– 

– 

the introduction of specific contractual clauses to protect the financial interests of the 
European  Community  in  carrying  out  checks  and  controls  in  relation  to  the  work 
performed; 

the  participation  of  administrative  inspectors  in  the  field  of  fraud-fighting,  in 
accordance with Regulations No 2185/96, 1073/99 and 1074/99; 

intentional  or  negligent 
the  application  of  administrative  sanctions  for  all 
irregularities  in  the  implementation  of  the  grant  agreements  and/or  contracts,  in 
accordance  with  Framework  Regulation  No 2988/95,  including  a  black-listing 
mechanism; 

the  fact  that  possible  recovery  orders  in  case  of  irregularities  and  fraud  be 
enforceable according to Article 256 of the EC Treaty. 

Local inspections will be carried out by the European Court of Auditors. 

Finally,  Annex  IV  to  the  Agreement  provides for  recognition  by  Israel  of  the  Community’s 
right  to  conduct  on-the-spot  inspections  on  the  premises  of  Israeli  entities  receiving  funds 
from the Framework Programme, together with recognition of the enforceability of recovery 
orders, the enforceability of judgments of the Court of Justice of the European Communities. 

EN 

33 

   EN 

 
8. 

DETAILS OF RESOURCES 

8.1 

Objectives of the proposal in terms of their financial cost:  NA 

(Headings  of  Objectives, 
actions  and  outputs  should 
be provided) 

Type of 
output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 and 
later 

TOTAL 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

No. 
outputs 

Total 
cost 

Commitment appropriations in EUR million (to 3 decimal places) 

OPERATIONAL 
OBJECTIVE No.118 

Action1…………. 
Output 1 

Output 2 

Action 2…………. 
Output 1 

Sub-total 
Objective 1 
OPERATIONAL 
OBJECTIVE No.2  
Action 1…………. 
Output 1 

Sub-total 
Objective 2 
OPERATIONAL 
OBJECTIVE No. n 

Sub-total 
Objective n 
TOTAL COST 

18 

As described under Section 5.3. 

EN 

34 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2 

Administrative Expenditure 

8.2.1  Number and type of human resources 

Types of post 

Staff to be assigned to management of the action using existing and/or additional 
resources (number of posts/FTEs) 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

Officials or 
temporary 
staff19 (XX 01 
01) 

A*/
AD 

B*, 
C*/
AST 

Staff financed20 by Art. 
XX 01 02 

Other  staff  financed21 
by Art. XX 01 04/05 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL 

0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

0,5 

8.2.2  Description of tasks deriving from the action 

Management  and  implementation  of  the  association  of  Israel  to  the  Framework  Programme 
will entail regular missions by EC and Israeli experts and officials. 

8.2.3 

Sources of human resources (statutory) 

(When more than one source is stated, please indicate the number of posts originating from 
each of the sources) 

X 

(cid:133) 

(cid:133) 

(cid:133) 

(cid:133) 

Posts currently allocated to the management of the programme to be replaced 
or extended 

Posts pre-allocated within the APS/PDB exercise for year n 

Posts to be requested in the next APS/PDB procedure 

Posts  to  be  redeployed  using  existing  resources  within  the  managing  service 
(internal redeployment) 

Posts required for year n although not foreseen in the APS/PDB exercise of the 
year in question 

19 
20 
21 

Cost of which is NOT covered by the reference amount. 
Cost of which is NOT covered by the reference amount. 
Cost of which is included within the reference amount. 

EN 

35 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4  Other 

in 
(XX 01 04/05 – Expenditure on administrative management) 

administrative 

expenditure 

included 

reference 

amount 

2007 2008 2009 2010 2011 2012  2013  TOTAL

EUR million (to 3 decimal places) 

Budget line 

(number and heading) 

1.  Technical  and  administrative 
assistance  (including  related  staff 
costs) 

 Executive agencies22 

0 

0 

0 

0 

0 

0 

0 

technical  and  administrative 

Other 
assistance 

0,157  0,157  0,157  0,157  0,157  0,157  0,157  1,099 

intra muros 

extra muros 

Total  Technical  and  administrative 
assistance 

0,157  0,157  0,157  0,157  0,157  0,157  0,157  1,099 

8.2.5 

Financial cost of human resources and associated costs not included in the reference 
amount 

Type of human resources 

2007  2008  2009  2010  2011  2012  2013  Total

EUR million (to 3 decimal places) 

Officials  and  temporary  staff  (XX  01 
01) 

Staff  financed  by  Art  XX  01  02 
(auxiliary, END, contract staff, etc.) 

(specify budget line) 

Total cost of Human Resources and 
associated costs (NOT in reference 
amount) 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,4095 

0 

0 

0 

0 

0 

0 

0 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,0585 

0,4095 

22 

Reference should be made to the specific legislative financial statement for the Executive Agency(ies) 
concerned. 

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Calculation– Officials and Temporary agents 

Reference should be made to Point 8.2.1, if applicable 

Amount given on the basis of the annual cost of an official (all categories included) i.e.:  

117 000 euro/2 = 58 500 

Calculation– Staff financed under Art. XX 01 02  NA 

Reference should be made to Point 8.2.1, if applicable 

8.2.6  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

2007 2008  2009  2010  2011  2012 

2013 TOTAL

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees23 

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2. Total Other Management Expenditure 

(XX 01 02 11) 

3. Other expenditure of an administrative 
nature  (specify  including  reference  to 
budget line) 

Total  Administrative  expenditure,  other 
than  human  resources  and  associated 
costs 
reference 
included 
amount) 

(NOT 

in 

0 

0 

0 

0 

0 

0 

0 

Calculation - Other administrative expenditure not included in reference amount 

23 

Specify the type of committee and the group to which it belongs. 

EN 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Annex 
Method of calculating the effect on revenue 

The  financial  contribution  of  Israel  to  the  Seventh  EC  Framework  Programme  shall  be 
established on a yearly basis in proportion to, and in addition to, the amount available each 
year in the general budget of the European Union for commitment appropriations needed for 
the implementation, management and operation of the Seventh EC Framework Programme. 

The  proportionality  factor  governing  the  contribution  of  Israel  shall  be  obtained  by 
establishing the ratio between the gross domestic product of Israel, at market prices, and the 
sum  of  gross  domestic  products,  at  market  prices,  of  the  Member  States  of  the  European 
Union  and  Israel.  This  ratio  shall  be  calculated  on  the  basis  of  the  latest  statistical  data 
pertaining to the same year from the International Bank for Reconstruction and Development, 
available at the time of publication of the preliminary draft budget of the European Union. 

For  2007,  the  estimated  contribution  to  the  Seventh  EC  Framework  Programme  based  on 
2004 GDP is (source : Worldbank): 

GDP 2004 (Mio €) 

GDP EUR 27 

12.787.938,70 

GDP Israel 

117.548,40 

Ratio 

0,910% 

Estimated Contribution (Mio €)  

Year 

Budget 

Total estimated contribution 

2007 

 5.082,008 

46,246 

Total 

 5.082,008 

46,246 

EN 

38 

   EN