Proposal for a Council Decision on the multiannual technical guidelines for the research programme of the Research Fund for Coal and Steel
Date: 2007-07-09
Institutions: European Commission
Subjects: coal, fund (EU), management, research programme, steel, technological change

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 9.7.2007 
COM(2007) 393 final 

2007/0135 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the multiannual technical guidelines for the research programme of the Research 
Fund for Coal and Steel  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

INTRODUCTION 

The  Protocol,  annexed  to  the  Treaty  establishing  the  European  Community  (EC)  on  the 
financial  consequences  of  the  expiry  of  the  European  Coal  and  Steel  Community  (ECSC) 
Treaty and on the Research Fund for Coal and Steel, transferred all the assets of the ECSC to 
the EC and assigned research in the sectors relating to the coal and steel industry to the EC. 
The revenue from these assets is to be used exclusively for research in these sectors carried 
out outside the framework programme. 

Council  Decision  2003/78/EC  of  1  February  2003  laying  down  medium-term  technical 
guidelines for the Research Programme of the Research Fund for Coal and Steel1 sets out the 
procedures for implementing that research programme.  

The programme provides financial assistance for allowable projects, accompanying measures 
and  other  actions  as  defined  in  point  1.5  of  the  Annex  to  Council  Decision  2003/78/EC  of 
1 February  2003  laying  down  guidelines  for  the  Fund,  by  promoting  cooperation  between 
undertakings, research centres and universities. The programme covers production processes, 
the utilisation and conservation of resources, environmental improvements and safety at work 
in sectors related to the coal and steel industry. 

The budget for  the  Research  Programme of the Research  Fund  for  Coal  and  Steel  averaged 
out at 57 million euros a year over the period 2003-2006. 27.2% of this budget is earmarked 
for coal research and 72.8% for steel research. The budget comes from the interest generated 
by  the  capital  (approximately  1.6  billion  euros)  remaining  following  the  expiry  of  the 
European Coal and Steel Community Treaty in 2002. The financial and technical management 
of  this  Research  Programme  was  assigned  to  a  Unit  set  up  for  this  purpose  within  the 
Directorate-General for Research in 2003. After three years of operation, the management of 
the  Fund  is  efficient  and  its  performance  can  be  compared  with  that  of  other  DG  Research 
activities. In 2006 the time between the submission of a research proposal and the signature of 
the corresponding contract was reduced to 9 months Payments were made within 10 days, on 
average. 

The  aim  of  the  proposal  for  a  Decision  annexed  hereto  is  to  review  Council  Decision 
2003/78/EC  of  1  February  2003  laying  down  multiannual  technical  guidelines  for  the 
Research Programme of the Research Fund for Coal and Steel (RFCS) after a period of five 
years of operation of the Decision, as provided for in Article 2 thereof. 

This  review  also  takes  into  account  the  Commission's  commitment  to  re-examine  the 
definition of steel, in accordance with Statement No 4 of the Decision 2002/234/ECSC of the 
Representatives of the Governments of the Member States meeting within the Council of 27 
February 2002.2 

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2 

OJ L 29, 5.2.2003, p. 28. 
OJ L 79, 22.3.2002, p. 60. 

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The review proposals have been discussed with the Coal and Steel Advisory Groups and with 
the Coal and Steel Programme Committee. They also take into account the conclusions of the 
monitoring  report  by  independent  experts  who  were  recently  asked  to  carry  out  a  critical 
analysis of the operation of the programme, as provided for in point 4 of the Annex to Council 
Decision  2003/78/CE,  as  well  as  the  comments  on  this  report  from  the  Coal  and  Steel 
Advisory Groups. In line with the usual practice for the Research Framework Programme as 
regards communicating the findings of programme monitoring exercises to third parties, this 
report and comments on it from the Coal and Steel Advisory Groups have been published on 
the Cordis website at: http://www.cordis.lu/coal-steel-rtd/home.html. 

The  general  approach  is  to  maintain  the  established  procedures  which  have  proved  to  be 
effective  while  making  a  limited  number  of  necessary  adjustments  and  administrative 
simplifications. 

THE REVISED DECISION 

The Research Programme for the Research Fund for Coal and Steel has been restructured and 
redrafted  in  order  to  apply  the  rules  set  out  in  the  Joint  Practical  Guide  of  the  European 
Parliament,  the  Council  and  the  Commission  for  persons  involved  in  the  drafting  of 
legislation  within  the  Community  Institutions.  To  make  it  easier  to  examine  the  texts,  the 
main grounds for maintaining or amending the content of the 2003 Decision are given below. 

1. 

THE ENLARGEMENT OF THE EUROPEAN UNION 

The  enlargement  of  the  EU  to  include  new  Member  States  means  that  the  rules  governing 
membership of the Coal and Steel Advisory Committees need to be adjusted. The proposal is 
to leave unchanged the maximum number of experts on these Advisory Committees, as laid 
down in Decision 2003/78/CE, primarily so as not to increase the cost of meetings and make 
them  more  unwieldy.  The  principle  of  having  at  least  one  representative  per  Member  State 
concerned should therefore be abandoned and replaced by the concept of ensuring the widest 
possible geographical representation. In addition, the Treaty on the accession of Estonia (OJ L 
236 of 23 September 2003, p. 589), necessitates the inclusion of oil shales in the definition of 
"coal" (Article 3 of the new Decision and Appendix A to the old technical guidelines). 

2. 

ENTRY INTO FORCE OF THE SEVENTH FRAMEWORK PROGRAMME 

The  Decision  of  the  European  Parliament  and  of  the  Council  concerning  the  Seventh 
Framework Programme of the European Community for research, technological development 
and demonstration activities (2007-2013) and the Regulation of the European Parliament and 
of  the  Council  laying  down  the  rules  for  the  participation  of  undertakings,  research  centres 
and  universities  in  actions  under  the  Seventh  Framework  Programme  of  the  European 
Community and for the dissemination of research results (2007 to 2013) influence the revision 
of the multiannual guidelines for the Research Programme of the Research Fund for Coal and 
Steel, since the Research Programme of the Research Fund for Coal and Steel is designed to 
complement  the  actions  undertaken  in  the  Member  States  under  existing  Community 
Programmes  such  as  the  Framework  Programme.  This  complementarity  applies  at  different 
levels,  e.g.  research  topics,  the  type  of  instrument  involved  in  the  programmes,  and  their 
budgets, etc. 

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Firstly,  the  Commission  examined  the  need  to  revise  the  definition  of  "steel"  in  accordance 
with  its  Statement  accompanying  Decision  2002/234/ECSC.  In  light  of  the  research  topics 
likely to receive funding under the Seventh Framework Programme, it came to the conclusion 
that this definition did not need to be changed (Article 3(2), formerly Appendix A, Paragraph 
2 of the multiannual technical guidelines for the Research Programme for the RFCS). 

In  addition,  some  of  the  accompanying  measures  for  the  Fund  (organisation  of  conferences 
and  research  fellowships)  have  been  deleted  since  they  are  already  covered  by  the  Seventh 
Framework Programme (Specific Programme "People"). 

Furthermore,  it  is  proposed  that  the  role  of  the  Member  States  in  the  Coal  and  Steel 
Programme Committee should be aligned to their role as defined for the Specific Programmes 
under the Seventh Framework Programme. 

The  same  applies  to  the  frequency  of  monitoring  of  the  RFCS  Programme,  which  it  is 
proposed should be increased from 5 to 7 years. 

Lastly, it is proposed that the procedures for the appointment of experts laid down in Article 
17 of Regulation No 1906/2006 of the European Parliament and of the Council laying down 
the  rules  for  the  participation  of  undertakings,  research  centres  and  universities  in  actions 
under the Seventh Framework Programme3 should be followed mutatis mutandis. 

3. 

EUROPEAN ENERGY AND SUSTAINABLE DEVELOPMENT POLICIES 

The  discussions  held  by  the  Heads  of  State  at  Hampton  Court,  the  March  2007  European 
Summit, the adoption by the Commission of the Energy Green Paper in the first half of 2006 
and the Commission's January 2007 communication on energy clearly indicate the following 
policy  priorities  for  the  Member  States:  the  security  of  Europe's  energy  supplies,  the 
competitiveness  of  European  industry,  and  controlling  the  environmental  impact  of  the 
various European policies. 

Consequently, it is proposed that the research objectives for coal and steel (formerly set out in 
Appendices B and C to the technical guidelines for the Research Programme for the Fund and 
constituting Sections 3 and 4 of the new Decision (Articles 4 to 10)) should be  maintained. 
These research objectives identify the following priorities: 

–  improving the competitive position of Community coal; 

–  efficient protection of the environment, improving the use of coal as a clean energy source, 
reducing CO2 emissions from coal utilisation, including through the capture and storage of 
this greenhouse gas; 

–  management of external dependence as regards energy supply 

–  reducing  emissions,  energy  consumption  and  environmental  impact  in  relation  to 

steelmaking; 

–  conservation of resources and preservation of the ecosystem in relation to steelmaking; 

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OJ L 391, 30.12.2006, p.7. 

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–  control and protection of the environment in and around steelworks. 

In  order  to  enhance  the  complementarity  between  the  Framework  Programme  and  the 
Research  Fund  and/or  concentrate  the  funding  on  selected  topics,  it  is  proposed  that  the 
Commission should be given the possibility of launching specific calls for research proposals 
in the context of these research objectives. 

These specific calls will be formulated taking into account the Work Programmes that will be 
published  for  the  Seventh  Framework  Programme  and,  where  appropriate,  the  strategic 
agendas  for  technology  platforms  of  relevance  to  the  programme,  namely  ESTEP  (the 
European  Steel  Technology  Platform),  ZEP  (the  Zero  Emission  Fossil  Fuel  Power  Plants 
Platform) and SMR (the Sustainable Minerals Resource Platform), etc.). 

4. 

HORIZONTAL RULES 

The revised technical guidelines for the Research Programme take account of the "horizontal" 
rules  adopted  by  the  Commission  with  which  all  research  programmes  administered  by  the 
Commission  must  comply,  including  the  Commission  Decision  of  19  June  2000  relating  to 
gender balance within the committees and expert groups established by it.4  

5. 

FINANCIAL MANAGEMENT 

Given  the  favourable  views  of  the  beneficiaries  under  the  Research  Programmes  of  the 
Research  Fund  for  Coal  and  Steel  and  of  the  experts  given  the  task  of  monitoring  these 
Programmes  (in  particular  the  members  of  the  Coal  and  Steel  Advisory  Groups),  it  is 
proposed that the basic principles governing the financial aspects of the research grants should 
be maintained  

For  example,  it  is  proposed  that  the  structure  of  allowable  costs,  as  defined  in  Directive 
2003/78/CE laying down the technical guidelines, i.e. the definition of categories of allowable 
costs  and  the  use  of  flat-rate  funding  to  cover  indirect  costs  (re-assessed  at  35%  of  eligible 
staff  costs)  should  be  maintained.  Simulations  carried  out  on  the  basis  of  the  research 
contracts  signed  since  2002  have  demonstrated  that  the  proposed  increase  from  30  to  35% 
covers travelling expenses, which disappear from the list of categories of eligible costs. These 
simulations also show that indirect costs calculated on the basis of 35% of eligible staff costs 
are  comparable  to  those  that  would  be  calculated  using  the  flat  rate  of  20%  of  total  direct 
costs, excluding contract costs, as used for the research programmes funded under the Sixth 
and Seventh Framework Programmes 

On  the  basis  of  experience  of  the  first  five  years  of  operation  of  the  Fund,  a  more  precise 
definition of operating cost categories is proposed.  

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OJ L 154, 27.6.2000, p. 34. 

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In  addition,  in  order  to  encourage  research  proposals  relating  to  pilot  or  demonstration 
projects, it is proposed that the maximum financial contribution should be increased from 40 
to  50%  of  the  admissible  costs.  For  the  other  actions,  the  maximum  financial  contributions 
remain unchanged. 

All other provisions remain unchanged. 

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2007/0135 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the multiannual technical guidelines for the research programme of the Research 
Fund for Coal and Steel  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community,  

Having regard to the Protocol annexed to the Treaty establishing the European Community on 
the financial consequences of the expiry of the ECSC Treaty and on the Research Fund for 
Coal and Steel, 

Having regard to Council Decision 2003/76/EC of 1 February 2003 establishing the measures 
necessary  for  the  implementation  of  the  Protocol,  annexed  to  the  Treaty  establishing  the 
European Community, on the financial consequences of the expiry of the ECSC Treaty and on 
the Research Fund for Coal and Steel5, and in particular Article 4(3) thereof, 

Having regard to the proposal from the Commission6, 

Having regard to the opinion of the European Parliament7, 

Whereas: 

(1) 

(2) 

The  revenue  from  investments  of  the  net  worth  of  the  assets  of  the  ECSC  in 
liquidation and, on completion of the liquidation, the Assets of the Research Fund for 
Coal and Steel, are being assigned to the Research Fund for Coal and Steel, which is 
intended  exclusively  to  fund  research  projects  outside  the  Research  Framework 
Programme in the sectors related to the coal and steel industry, 

The  Research  Fund  for  Coal  and  Steel  is  to  be  managed  by  the  Commission  in 
accordance with principles similar to those governing the former ECSC coal and steel 
technical  research  programmes  and  on  the  basis  of  multiannual  technical  guidelines 
which  should  constitute  an  extension  of  those  ECSC  programmes,  providing  a  high 
concentration  of  research  activities  and  ensuring  that  they  supplement  those  of  the 
Community framework programme for research and technological development, 

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OJ L 29, 05.02.2003, p. 22 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 

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(3) 

(4) 

The  Seventh  Framework  Program  of  the  European  Community  for  research, 
technological  development  and  demonstration  activities  (2007-2013)  set  out  in 
Decision  No  1982/2006/EC  of  the  European  Parliament  and  of  the  Council  of  18 
December  20068  provides  an  incentive  to  review  Council  Decision  2003/78/EC  of  1 
February  2003  laying  down  the  multiannual  technical  guidelines  for  the  research 
programme  of  the  Research  Fund  for  Coal  and  Steel9  in  order  to  ensure  that  the 
Research  Fund  for  Coal  and  Steel  complements  the  Seventh  Framework  Program  in 
the sectors related to the coal and steel industry, 

Research and technical development constitute a very important means of supporting 
Community  energy  objectives  with  regard  to  the  supply  of  Community  coal  and  its 
competitive  and  environmentally-friendly  conversion  and  utilisation.  Moreover,  the 
growing  international  dimension  of  the  coal  market  and  the  global  scale  of  the 
problems  confronting  it  means  that  the  Community  has  to  take  a  leading  role  in 
meeting  challenges  relating  to  modern  techniques,  mine  safety  and  environmental 
protection  at  worldwide  level  by  ensuring  the  transfer  of  know-how  required  for 
further  technological  progress,  improved  working  conditions  (health  and  safety)  and 
enhanced environmental protection, 

(5)  With  the  general  aim  of  increasing  competitiveness  and  contributing  to  sustainable 
development, the main emphasis of research and technological development is on the 
development  of  new  or  improved  technologies  to  guarantee  the  economic,  clean  and 
safe  production  of  steel  and  steel  products  characterised  by  steadily  increasing 
performance,  suitability  to  use,  customer  satisfaction,  prolonged  service  life,  easy 
recovery and recycling, 

(6) 

(7) 

(8) 

(9) 

The  order  in  which  the  research  objectives  for  coal  and  steel  are  presented  in  this 
Decision does not represent a priority as between those objectives, 

In  the  framework  of  the  management  activities  of  the  Research  Fund  for  Coal  and 
Steel,  the  Commission  should  be  assisted  by  advisory  and  technical  groups 
representing a wide range of interests of industries and other stakeholders, 

The recent enlargement incorporating new Member States requires modification of the 
technical guidelines adopted on 1 February 2003, notably as regards the composition 
of the advisory groups and the definition of coal, 

In  accordance  with  Statement  n°4  of  the  Decision  of  the  Representatives  of  the 
Governments of the Member States meeting within the Council 2002/234/ECSC of 27 
February10,  the  Commission  has  re-examined  the  definition  of  steel  and  come  to 
conclusion  that  it  is  not  necessary  to  change  that  definition.  Indeed,  steel  castings, 
forgings  and  powder  metallurgy  products  are  topics  already  covered  by  the  Seventh 
Framework Programme, 

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OJ L412, 30.12.2006, p.1. 
OJ L29, 5.2.2003, p.28. 
OJ L79, 22.03.2002, p.42 

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(10)  The general approach for revising the Council Decision 2003/78/EC is to keep intact 
the procedures that were considered by the assisting groups as effective together with a 
limited  but  necessary  number  of  modifications  and  administrative  simplifications  in 
order to ensure the complementarity with the Seventh Framework Programme, 

(11)  Those modifications include the deletion of some accompanying measures as already 
foreseen  in  the  Seventh  Framework  Programme.  It  is  also  necessary  to  align  the 
periodicity  of  the  programme  revision  and  the  experts  nominations  on  those  used  in 
the Seventh Framework Programme, 

(12)  The  rules  on  the  composition  of  the  advisory  groups  should  be  revised,  notably  as 
regards the representation of interested Member States and gender balance11, 

(13)  The  Commission  should  be  given  the  opportunity  to  launch  dedicated  calls  in  the 

frame of the research objectives defined in this Decision, 

(14)  The  maximum  total  financial  contribution  from  the  Research  Fund  for  pilot  and 

demonstration projects should be increased to 50% of the eligible costs, 

(15)  The eligible costs approach should be kept together with a better definition of the costs 

categories and a revised percentage for the calculation of the overheads, 

(16)  The  Commission  has  reassessed  the  technical  guidelines  laid  down  in  Decision 
2003/78/EC and found that in view of the changes required it is appropriate to replace 
that Decision, 

(17) 

In  order  to  ensure  the  necessary  continuity  with  Decision  2003/78/EC,  this  Decision 
should  apply  from  16  September  […].  Applicants  submitting  proposals  between  16 
September  and  the  date  of  taking  effect  of  this  Decision  will  be  invited  to  resubmit 
their proposals in accordance with this Decision, which should enable them to benefit 
from the more favourable conditions provided by this Decision, notably as regards the 
financial contribution to pilot and demonstration projects, 

(18)  The measures necessary for the implementation of this Decision should be adopted in 
accordance  with  Council  Decision  1999/468/EC  of  28  June  1999  laying  down  the 
procedures  for  the  exercise  of  implementing powers conferred on the Commission12, 
being applied by analogy, 

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OJ L154, 27.6.2000, p. 34 
OJ L184, 17.7.1999, p. 23. Decision as last amended by Decision 2006/512/EC (OJ L 200, 22.7.2006, 
p. 11). 

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HAS ADOPTED THIS DECISION:  

Chapter I 
General provisions 

Article 1 
Subject matter 

This Decision provides for the adoption of a Research Programme of the Research Fund for 
Coal and Steel and lays down the multiannual technical guidelines for the implementation of 
that programme. 

Chapter II 
Research Programme 

SECTION 1 
ADOPTION OF THE RESEARCH PROGRAMME 

Article 2 
Adoption 

A  Research  Programme  for  the  Research  Fund  for  Coal  and  Steel  is  hereby  adopted, 
hereinafter referred to as the Research Programme. 

The Research Programme shall support the competitiveness of the Community sectors related 
to  the  coal  and  steel  industry.  The  programme  shall  be  consistent  with  the  scientific, 
technological and political objectives of the Community, and shall complement the activities 
carried out in the Member States and within the existing Community research programmes, in 
technological  development  and 
particular 
demonstration activities (hereinafter referred to as the Research Framework Programme).  

the  framework  programme  for  research, 

Coordination, complementarity and synergy between these programmes shall be encouraged, 
as  shall  the  exchange  of  information  between  projects  financed  under  this  Research 
Programme and those that are financed under the Research Framework Programme. 

The Research Programme shall support research activities aimed at the objectives defined for 
coal in Section 3 and for steel in Section 4.  

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SECTION 2 
DEFINITIONS OF COAL AND STEEL 

Article 3 
Definitions 

For the purposes of this Decision, the following definitions shall apply: 

(1) 

coal means any of the following: 

(a) 

hard  coal,  including  the  high  and  medium-ranking  "A"  coals  (sub-bituminous 
coals)  as  defined  in  the  International  codification  system  of  coal  of  the  UN 
Economic Commission for Europe; 

(b) 

hard coal briquette; 

(c) 

coke and semi-coke derived from hard coal; 

(d) 

lignite,  including  the  low-ranking  "C"  coals  (or  ortho-lignites)  and  the  low-
ranking "B" coals (or meta-lignites) as defined in the above codification; 

(e) 

lignite briquettes; 

(f) 

coke and semi-coke derived from lignite; 

(g) 

oil shales. 

(2) 

steel means any of the following: 

(a) 

raw materials for iron and steel production, such as iron ore, sponge iron and 
ferrous scrap; 

(b) 

pig iron (including hot metal) and ferro-alloys; 

(c) 

(d) 

(e) 

(f) 

crude  and  semi-finished  products  of  iron,  ordinary  steel  or  special  steel 
(including  products  for  re-use  and  re-rolling),  such  as  liquid  steel  cast  by 
continuous  casting  or  otherwise,  and  semi-finished  products  such  as  blooms, 
billets, bars, slabs and strips; 

hot finished products of iron, ordinary steel or special steel (coated or uncoated 
products,  excluding  steel  castings,  forgings  and  powder  metallurgy  products), 
such  as  rails,  sheet  piling,  structural  shapes,  bars,  wire  rods,  plates  and 
universal plates, strips and sheets, and tube rounds and squares; 

end products of iron, ordinary steel or special steel (coated or uncoated), such 
as cold-rolled strips and sheets and electrical sheets; 

products of the first-stage processing of steel that can enhance the competitive 
position of the above iron and steel products, such as tubular products, drawn 
and polished products, cold-rolled and cold-formed products. 

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SECTION 3 
RESEARCH OBJECTIVES FOR COAL 

Article 4 
Improving the competitive position of Community coal 

1. 

The  objective  shall  be  to  reduce  the  total  costs  of  mining  production,  improve  the 
quality  of  the  products  and  reduce  the  costs  of  using  coal.  Research  projects  shall 
encompass the entire coal production chain as follows: 

(a)  modern techniques for surveying deposits; 

(b) 

integrated mine planning; 

(c) 

highly  efficient,  largely  automated  excavation  and  mining  technologies 
corresponding to the geological characteristics of European hard coal deposits; 

(d) 

appropriate support technologies; 

(e) 

transport systems; 

(f) 

power  supply  services,  communication  and 
monitoring and process control systems; 

information, 

transmission, 

(g) 

coal preparation techniques, oriented to the needs of the consumer markets; 

(h) 

coal conversion; 

(i) 

coal combustion. 

2. 

Research projects shall also aim to achieve scientific and technological progress with 
a view to gaining a better understanding of the behaviour and control of deposits in 
relation  to  rock  pressure,  gas  emissions,  the  risk  of  explosion,  ventilation  and  all 
other  factors  affecting  mining  operations.  Research  projects  with  these  objectives 
shall  present  the  prospect  of  results  applicable  in  the  short  or  medium  term  to  a 
substantial part of Community production. 

Preference shall be given to projects that promote at least one of the following: 

(a) 

integration  of  individual  techniques  in  systems  and  methods  and  the 
development of integrated mining methods; 

(b) 

substantial reduction of production costs; 

(c) 

benefits in terms of mine safety and the environment. 

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Article 5 
Health and safety in mines 

Projects  covering  the  activities  referred  to  in  Article  4(a-f)  shall  also  be  accompanied  by 
appropriate  efforts  in  the  field  of  mine  safety  as  well  as  in  gas  control,  ventilation  and  air-
conditioning  with  a  view  to  improving  underground  working  conditions  and  occupational 
health and safety.  

Article 6 
Efficient protection of the environment and improvement of the use of coal as a clean energy 
source 

Research projects with this objective shall seek to minimise the impact of mining operations 
and  the  use  of  coal  in  the  Community  on  the  atmosphere,  water  and  the  surface  within  the 
framework of an integrated management strategy with respect to pollution. As the Community 
coal industry is undergoing constant restructuring, the research shall also be geared towards 
minimising the environmental impact of underground mines destined for closure. 

Preference shall be given to projects that envisage one or more of the following: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

a reduction in emissions from coal utilisation, including capture and storage of 
CO2; 

a  reduction  in  greenhouse  gas  emissions,  in  particular  methane,  from  coal 
deposits; 

the return to the mine of mining waste, fly ash and desulphurisation products, 
accompanied, where relevant, by other forms of waste; 

the refurbishment of  waste  heaps  and  the industrial use of residues from coal 
production and consumption; 

the protection of water tables and the purification of mine drainage water; 

a  reduction  in  the  environmental  impact  of  installations  which  mainly  use 
Community coal and lignite; 

the  protection  of  surface  installations  against  the  effects  of  subsidence  in  the 
short and long term. 

Article 7 
Management of external dependence on energy supply 

Research projects with this objective shall relate to the prospects for long-term energy supply 
and  concern  the  upgrading  -  in  economic,  energy-related  and  environmental  terms  -  of  coal 
deposits which cannot be extracted economically by conventional mining techniques. Projects 
may  include  studies,  the  definition  of  strategies,  fundamental  and  applied  research  and  the 
testing of innovative techniques which offer prospects for the upgrading of Community coal 
resources. 

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Preference  shall  be  given  to  projects  integrating  complementary  techniques  such  as  the 
adsorption of methane or carbon dioxide, coal bed methane extraction and underground coal 
gasification. 

SECTION 4 
RESEARCH OBJECTIVES FOR STEEL 

Article 8 
New and improved steelmaking and finishing techniques 

Research  and  technological  development,  (RTD)  shall  aim  to  improve  steel  production 
processes  with  a  view  to  enhancing  product  quality  and  increasing  productivity.  Reducing 
emissions, energy consumption and the environmental impact as well as enhancing the use of 
raw  materials  and  the  conservation  of  resources  shall  form  an  integral  part  of  the 
improvements sought. Research projects shall address one or more of the following areas: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

(j) 

new and improved iron-ore reduction processes; 

ironmaking processes and operations; 

electric arc furnace processes; 

steelmaking processes; 

secondary metallurgy techniques; 

continuous  casting  and  near  net  shape  casting  techniques  with  and  without  direct 
rolling; 

rolling, finishing and coating techniques; 

hot and cold-rolling techniques, pickling and finishing processes; 

process instrumentation, control and automation; 

maintenance and reliability of production lines. 

Article 9 
RTD and the utilisation of steel 

RTD aimed at the utilisation of steel is essential for meeting the future requirements of steel 
users and creating new market opportunities. Research projects shall address one or more of 
the following areas: 

(a) 

(b) 

new steel grades for demanding applications; 

steel properties addressing mechanical properties at low and high temperatures such 
as  strength  and  toughness,  fatigue,  wear,  creep,  corrosion  and  resistance  against 
fracture; 

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(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

prolonging service life, in particular by improving  the resistance of steels and steel 
structures to heat and corrosion; 

steel-containing composites and sandwich structures; 

predictive simulation models on microstructures and mechanical properties; 

structural  safety  and  design  methods,  in  particular  with  regard  to  resistance  to  fire 
and earthquakes; 

technologies relating to the forming, welding and joining of steel and other materials; 

standardisation of testing and evaluation methods. 

Article 10 
Conservation of resources and improvement of working conditions 

In both steel production and steel utilisation, the conservation of resources, the preservation of 
the  ecosystem  and  safety  issues  shall  form  an  integral  part  of  the  RTD  work.  Research 
projects shall address one or more of the following areas: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

techniques  for  recycling  obsolete  steel  from  various  sources  and  classification  of 
steel scrap; 

steel grades and design of assembled structures to facilitate the easy recovery of steel 
scrap and its reconversion into usable steels; 

control and protection of the environment in and around the workplace; 

restoration of steelworks sites; 

improvement of working conditions and quality of life in the workplace; 

ergonomic methods; 

occupational health and safety; 

reduction of exposure to occupational emissions.  

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Chapter III 
Multiannual technical guidelines 

SECTION 1 
PARTICIPATION 

Article 11 
Member States 

Any  undertaking,  public  body,  research  organisation  or  higher  and  secondary  education 
establishment, or other legal entity, including natural persons, established within the territory 
of  a  Member  State  may  participate  in  the  Research  Programme  and  apply  for  financial 
assistance,  provided  that  they  intend  to  carry  out  an  RTD  activity  or  can  substantially 
contribute to such an activity. 

Article 12 
Candidate countries 

Any  undertaking,  public  body,  research  organisation  or  higher  and  secondary  education 
establishment, or other legal entity, including natural persons, in candidate countries shall be 
entitled  to  participate  without  receiving  any  financial  contribution  under  the  Research 
Programme,  unless  otherwise  provided  under  the  relevant  European  Agreements  and  their 
additional Protocols, and in the decisions of the various Association Councils. 

Article 13 
Third countries 

Any  undertaking,  public  body,  research  organisation  or  higher  and  secondary  education 
establishment,  or  other  legal  entity,  including  natural  persons,  from  third  countries  shall  be 
entitled  to  participate  on  the  basis  of  individual  projects  without  receiving  any  financial 
contribution under the Research Programme, provided that such participation is in the interest 
of the Community. 

SECTION 2 
ELIGIBLE ACTIVITIES 

Article 14 
Research projects 

A research project shall be intended to cover investigative or experimental work with the aim 
of acquiring further knowledge to facilitate the attainment of specific practical objectives such 
as the creation or development of products, production processes or services. 

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Article 15 
Pilot projects 

A  pilot  project  shall  be  characterised  by  the  construction,  operation  and  development  of  an 
installation or a significant part of an installation on an appropriate scale and using suitably 
large components with a view to examining the potential for putting theoretical or laboratory 
results  into  practice  and/or  increasing  the  reliability  of  the  technical  and  economic  data 
needed  to  progress  to  the  demonstration  stage,  and  in  certain  cases  to  the  industrial  and/or 
commercial stage. 

Article 16 
Demonstration projects 

A  demonstration  project  shall  be  characterised  by  the  construction  and/or  operation  of  an 
industrial-scale installation or a significant part of an industrial-scale installation with the aim 
of bringing together all the technical and economic data in order to proceed with the industrial 
and/or commercial exploitation of the technology at minimum risk. 

Article 17 
Accompanying measures 

Accompanying measures shall relate to the promotion of the use of knowledge gained or to 
the  organisation  of  dedicated  workshops  or  conferences  in  connection  with  projects  or 
priorities of the programme.  

Article 18 
Support and preparatory actions 

Support and preparatory actions are those appropriate to the sound and effective management 
of the Research Programme, such as the evaluation and selection of proposals as referred to in 
Articles 27 and 28, the periodic monitoring and assessment referred to in Article 38, studies, 
the clustering or the networking of related projects funded under the programme.  

The Commission may, where it deems appropriate, appoint independent and highly qualified 
experts to assist with support and preparatory actions. 

SECTION 3 
MANAGEMENT OF THE PROGRAMME 

Article 19 
Management 

The  programme  shall  be  managed  by  the  Commission.  It  shall  be  assisted  by  the  Coal  and 
Steel  Committee,  the  Coal  and  Steel  Advisory  Groups  and  the  Coal  and  Steel  Technical 
Groups. 

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Article 20 
Establishment of the Coal and Steel Advisory Groups 

The Coal and Steel Advisory Groups (hereinafter referred to as "the Advisory Groups") shall 
be independent technical advisory groups. 

Article 21 
Tasks of the Coal and Steel Advisory Groups 

For the coal and steel-related RTD aspects respectively, each Advisory Group shall advise the 
Commission on the following: 

(a) 

(b) 

the overall development of the Research Programme, the information package 
as referred to in Article 25 and future guidelines; 

the  consistency  and  the  possible  duplication  with  other  RTD  programmes  at 
Community and national level; 

(c) 

the setting out of the guiding principles for monitoring RTD projects; 

(d) 

the work being undertaken on specific projects; 

(e) 

(f) 

(g) 

(h) 

(i) 

the research objectives of the Research Programme listed in Sections 3 and 4; 

the  annual  priority  objectives  listed  in  the  Information  Package  and,  where 
appropriate  the  priority  objectives  for  dedicated  calls  as  referred  to  in  Article 
25; 

the  preparation  of  a  manual  for  evaluating  and  selecting  RTD  actions,  as 
referred to in Articles 27 and 28;  

the  evaluation  of  proposals  for  RTD  actions  and  the  priority  to  be  given  to 
those proposals, having regard to the funds available; 

the number, competence and composition of the Technical Groups referred to 
in Article 24; 

(j) 

the drawing-up of dedicated calls for proposals as referred to in Article 25; 

(k) 

other measures when requested to do so by the Commission. 

Article 22 
Composition of the Coal and Steel Advisory Groups 

Each Advisory Group shall be composed in accordance with the tables set out in the Annex. 
The  members  shall  be  appointed  by  the  Commission  to  serve  in  a  personal  capacity  for  a 
period of 42 months. Appointments may be withdrawn.  

The Commission shall consider proposals for appointments received in the following ways: 

(a) 

by the Member States;  

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(b) 

(c) 

by the entities referred to in the tables in the Annex;  

in response to a call for applications for inclusion on a reserve list.  

The Commission shall ensure, within each Advisory Group, a balanced range of expertise and 
the broadest possible geographical representation.  

Members  shall  be  active  in  the  field  concerned  and  be  aware  of  the  industrial  priorities.  In 
addition,  the  Commission,  when  appointing  members  of  the  Advisory  Groups,  shall  try  to 
seek a gender balance. 

Article 23 
Meeting of the Coal and Steel Advisory Groups 

The  meetings  of  the  Advisory  Groups  shall  be  organised  and  chaired  by  the  Commission, 
which shall also provide the secretariat.  

If necessary, the Chairman may request members to vote. Every member shall have the right 
to one vote. The Chairman may invite visiting experts or observers to take part in meetings 
where appropriate. The visiting experts and the observers shall have no voting rights. 

If necessary (e.g. to provide advice on matters of relevance for both the coal and steel sectors) 
the two Advisory Groups shall convene in joint meetings. 

Article 24 
Establishment and tasks of the Coal and Steel Technical Groups 

The  Coal  and  Steel  Technical  Groups  shall  advise  the  Commission  on  the  monitoring  of 
research  and  pilot  or  demonstration  projects  and,  where  necessary,  in  the  definition  of  the 
priority objectives of the Research Programme.  

Members shall be appointed by the Commission and shall come from the sectors related to the 
coal  and  steel  industry,  research  organisations  or  user  industries  where  they  shall  have 
responsibility for research strategy, management or production.  

In addition, the Commission, when appointing members of the Technical Groups, shall try to 
seek a gender balance. 

Meetings of the Technical Groups shall, whenever possible, be held at venues chosen in such 
a way that project monitoring and results assessment are best ensured. 

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SECTION 4 
IMPLEMENTATION OF THE RESEARCH PROGRAMME 

Article 25 
Call for proposals 

1. 

2. 

3. 

An  open  and  continuous  call  for  proposals  is  hereby  launched.  Unless  otherwise 
specified, 15 September of each year shall be the cut-off date for the submission of 
proposals for evaluation.  

Where the Commission in accordance with Article 41(d) and (e) decides to modify 
the  cut-off  date  referred  to  in  paragraph  1  for  the  submission  of  proposals,  or  to 
launch dedicated calls for proposals, it shall publish that information in the Official 
Journal of the European Union.  

Dedicated calls shall indicate the dates and modalities for the submission, including 
whether  it  shall  take  place  in  one  or  two  steps,  and  for  the  evaluation  of  the 
proposals, the priorities, the type of eligible projects as referred to in Articles 14 to 
18, where necessary, and the envisaged funding. 

The Commission shall establish an information package setting out the detailed rules 
for participation, the methods of managing proposals and projects, application forms, 
rules  for  the  submission  of  proposals,  model  grant  agreements,  eligible  costs,  the 
maximum  financial  contribution  allowable,  methods  of  payment  and  the  annual 
priority objectives of the Research Programme. 

The  Commission  shall  make  the  information  package  public  on  the  Community 
Research  and  Development  Information  Service  (CORDIS)  or  corresponding 
website. 

Applications shall be submitted to the Commission in accordance with the rules laid 
down  in  the  information  package,  of  which  a  paper  copy  can  be  obtained  from  the 
Commission on request.  

Article 26 
Content of proposals 

The proposals shall relate to the research objectives laid down in Sections 3 and 4 of Chapter 
II  and,  where  applicable,  to  the  priority  objectives  listed  in  the  Information  Package  in 
accordance with Article 25(3) or to the priority objectives defined for the dedicated calls for 
proposals referred to in Article 25(2). 

Each  proposal  shall  include  a  detailed  description  of  the  proposed  project  and  contain  full 
information  on  objectives,  partnerships,  including  the  precise  role  of  each  partner, 
management  structure,  anticipated  results,  expected  applications  and  an  assessment  of 
anticipated industrial, economic, social and environmental benefits. 

The proposed total cost and its breakdown shall be realistic and effective, and the project shall 
be expected to produce a favourable cost/benefit ratio. 

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Article 27 
Evaluation of proposals 

The Commission shall ensure a confidential, fair and equitable evaluation of proposals.  

The Commission shall establish and publish a manual for the evaluation and selection of RTD 
actions. 

Article 28 
Selection of proposals and monitoring of projects 

1. 

2. 

3. 

4. 

5. 

The  Commission  shall  register  the  proposals  received  and  shall  verify  their 
eligibility. 

The  Commission  shall  evaluate  the  proposals  with  the  assistance  of  independent 
experts.  

The Commission shall draw up a list of the proposals adopted in order of merit. The 
ranking list may be discussed by the relevant Advisory Group. 

The Commission shall decide on the choice of projects and the allocation of funds. 
Where  the  estimated  amount  of  the  Community  contribution  under  the  Research 
Programme is equal to or more than EUR 0.6 million Article 41(a) shall apply. 

The  Commission  shall,  with  the  assistance  of  the  technical  groups  referred  to  in 
Article 24 monitor research projects and activities. 

Article 29 
Grant agreements 

Projects based on selected proposals and measures and actions as specified under Articles 14 
to 18 shall form the subject of a grant agreement. Grant agreements shall be based on relevant 
model grant agreements drawn up by the Commission, taking account, as appropriate, of the 
nature of the activities concerned.  

Grant agreements shall define the financial contribution allocated under the programme on the 
basis  of  the  eligible  costs,  as  well  as  the  rules  concerning  cost  reporting,  the  closure  of 
accounts and certificates on financial statements. In addition, they shall provide for provisions 
on dissemination and use and access rights. 

Article 30 
Financial contribution 

The  Research  programme  shall  be  based  on  cost-sharing  RTD  grant  agreements.  The  total 
financial  contribution  including  any  other  additional  public  funding  shall  conform  to  the 
applicable rules on State aid.  

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Public  contracts  shall  also  be  used  for  the  supply  of  movable  or  immovable  assets,  the 
execution of works or the provision of services which are necessary for the implementation of 
the support and preparatory actions. 

Without prejudice to the first paragraph, the maximum total financial contribution, expressed 
as a percentage of the eligible costs defined in Articles 31 to 35, shall be:  

(a) 

for research projects 

up to 60% 

(b) 

for pilot and demonstration projects 

up to 50% 

(c) 

for  accompanying  measures,  support  and 
preparatory actions 

up to 100% 

Article 31 
Eligible costs 

1. 

The eligible costs shall consist of the following: 

(a) 

equipment costs; 

(b) 

staff costs; 

(c) 

operating costs; 

(d) 

indirect costs. 

2. 

The  eligible  costs  shall  cover  only  actual  costs  incurred  for  the  execution  of  the 
project under the terms of the grant agreement. Beneficiaries, associated beneficiaries 
and sub-beneficiaries shall not be entitled to claim any budgeted or commercial rates. 

Article 32 
Equipment costs 

The  costs  of  purchasing  or  hiring  equipment  directly  related  to  the  execution  of  the  project 
shall  be  chargeable  as  direct  costs. The  eligible  costs  for  the  leasing  of  equipment  shall  not 
exceed any eligible costs for its purchase. 

Article 33 
Staff costs 

The  costs  of  actual  hours  devoted  exclusively  to  the  project  by  scientific,  postgraduate  or 
technical  staff  and  the  staff  costs  of  manual  workers  directly  employed  by  the  beneficiary 
shall  be  chargeable.  Any  additional  staff  costs,  e.g.  scholarships,  shall  require  the 
Commission's  prior  written  approval.  All  working  hours  charged  must  be  recorded  and 
certified. 

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Article 34 
Operating costs 

Operating costs  directly  related to the  execution of the  project  shall  be  limited solely to the 
cost of: 

(a) 

raw materials; 

(b) 

consumables; 

(c) 

energy; 

(d) 

(e) 

(f) 

transportation  of  raw  materials,  consumables,  equipment,  products,  feedstock 
or fuel; 

the maintenance, repair, alteration or transformation of existing equipment; 

IT and other specific services; 

(g) 

the rental of equipment; 

(h) 

analysis and tests; 

(i) 

(j) 

dedicated workshop organisation; 

certificate on financial statements and bank guarantee; 

(k) 

protection of knowledge; 

(l) 

assistance from third parties. 

Article 35 
Indirect costs 

All other expenses, such as overhead costs or overheads, which may arise in connection with 
the  project  and  which  are  not  specifically  identified  in  the  preceding  categories,  including 
travel and subsistence costs, shall be covered by a flat rate amounting to 35 % of the eligible 
staff costs as referred to in Article 33. 

SECTION 5 
EVALUATION AND MONITORING OF THE RESEARCH ACTIVITIES 

Article 36 
Technical reports 

For research, pilot and demonstration projects referred to in Articles 14, 15 and 16 periodical 
reports  shall  be  drawn  up  by  the  beneficiary  or  beneficiaries.  Such  reports  shall  be  used  to 
describe the technical progress made.  

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On  completion  of  the  work,  a  final  report  comprising  an  assessment  of  exploitation  and 
impact shall be provided by the beneficiary or beneficiaries. That report shall be published by 
the  Commission  in  full  or  in  summarised  form  depending  on  the  strategic  relevance  of  the 
project and following consultation, if necessary, of the relevant Advisory Group.  

The Commission may require the beneficiary or beneficiaries to provide final reports on the 
accompanying  measures  referred  to  in  Article  17  as  well  as  on  the  support  and  preparatory 
actions referred to in Article 18 and may decide to have them published. 

Article 37 
Annual review 

The Commission shall conduct an annual review of activities under the Research Programme 
and the progress of the RTD work. The report containing the review shall be forwarded to the 
Committee. 

The Commission may appoint independent experts and highly qualified experts to assist with 
this annual review. 

Article 38 
Monitoring and assessment of the programme 

1. 

2. 

3. 

The Commission shall carry out a monitoring exercise of the Research Programme, 
including an assessment of the expected benefits. A report on that exercise shall be 
issued by the end of 2013, and thereafter  every seven years. These  reports shall be 
made  public  on  the  Community  Research  and  Development  Information  Service 
(CORDIS) or corresponding website. 

The Commission shall assess the Research Programme on completion of the projects 
financed during every period of seven years. The benefits of the RTD to society and 
to  the  relevant  sectors  shall  also  be  assessed.  The  assessment  report  shall  be 
published. 

In carrying out the monitoring and assessment referred to in paragraphs 1 and 2, the 
Commission shall be assisted by panels of highly qualified experts appointed by the 
Commission. 

Article 39 
Appointment of independent and highly qualified experts 

For  the  appointment  of  independent  and  highly  qualified  experts  referred  to  in  Articles  18, 
28(2) & 38, the provisions set out in Articles 14 and 17 of the Regulation (EC) No 1906/2006 
of the European Parliament and of the Council13, shall apply by analogy. 

13 

OJ L391, 30.12.2006, p.6. 

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Chapter IV 
Final provisions 

Article 40 
Review of the multiannual technical guidelines 

The multiannual technical guidelines laid down in Chapter III shall be reviewed every seven 
years, first period ending on 31 December 2014. To this end, and at the latest in the first six 
months of the last year of each seven-year period, the Commission shall reassess the operation 
and  the  effectiveness  of  the  technical  guidelines  and,  where  appropriate,  propose  any 
amendment. 

If it sees fit, the Commission may carry out such reassessment and shall submit proposals for 
any appropriate amendments to the Council before the expiry of the seven-year period. 

Article 41 
Implementing measures 

The  Commission  shall,  in  accordance  with  the  procedure  referred  to  in  Article  42(2),  adopt 
the following implementing measures: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

1. 

2. 

the approval  of the funding actions where the estimated amount of  the Community 
contribution under this programme is equal to or more than EUR 0.6 million; 

the  drawing-up  of  terms  of  reference  for  the  monitoring  and  assessment  of  the 
programme referred to in Article 38;  

amendments to Sections 3 and 4 of Chapter II;  

changes to the cut-off date referred to in Article 25; 

the drawing-up of dedicated calls for proposals;  

any other issue relating to the programme. 

Article 42 
Committee 

The  Commission  shall  be  assisted  by  the  Coal  and  Steel  Committee,  hereinafter 
referred to as "the Committee".  

Where  reference  is  made  to  this  paragraph,  Articles  4  and  7  of  Decision 
1999/468/EC shall apply by analogy.  

The period laid down in Article 4(3) of that Decision shall be set at two months. 

3. 

The Committee shall adopt its rules of procedure. 

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Article 43 
Repeal and transitional measures 

[In case of adoption before 15 June 2008:] 

["Decision  2003/78/EC  is  repealed.  However,  Decision  2003/78/EC  shall  continue  to  apply 
until 31 December 2008 to the financing of actions resulting from proposals submitted by 15 
September 2007."] 

[In case of adoption after 15 June 2008:] 

["Decision  2003/78/EC  is  repealed.  However,  Decision  2003/78/EC  shall  continue  to  apply 
until 31 December 2009 to the financing of actions resulting from proposals submitted by 15 
September 2008.] 

Article 44  

Applicability 

["This Decision shall apply from 16 September 2007."] 

[or] 

["This Decision shall apply from 16 September 2008."] 

Article 45 
Addressees 

This Decision is addressed to the Member States. 

Done at Brussels, […] 

For the Council 
The President 
[…] 

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The composition of the Coal Advisory Group referred to in Article 23: 

ANNEX 

Members must have a wide background knowledge and individual expertise in one or more of 
the  following  areas:  coal  mining  and  utilisation,  environment  and  social  issues,  including 
safety aspects. 

The composition of the Steel Advisory Group referred to in Article 23: 

Members must have a wide background knowledge and individual expertise in one or more of 
the following areas: raw materials; iron-making; steelmaking; continuous casting; hot and/or 
cold  rolling;  steel  finishing  and/or  surface  treatment;  development  of  steel  grades  and/or 
products; steel applications and properties; environmental and social issues, including safety 
aspects. 

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