Proposal for a Decision of the European Parliament and of the Council on the participation by the Community in a research and development programme aimed at supporting research and development performing SMEs undertaken by several Member States
Date: 2007-09-12
Institutions: European Commission
Subjects: EU Member State, EU aid, EU programme, EU research policy, cooperation policy, financial aid, research and development, research programme, small and medium-sized enterprises

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 12.9.2007 
COM(2007) 514 final 

2007/0188 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the participation by the Community in a research and development programme 
aimed at supporting research and development performing SMEs undertaken by several 
Member States 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

1. 

110 

CONTEXT OF THE PROPOSAL 

1.1. 

Objectives 

The objective of this proposal is the adoption of a decision by the European Parliament 
and  the  Council,  on  the  basis  of  Article  169  of  the  EC  Treaty,  concerning  the 
participation  by  the  Community  in  the  Eurostars  joint  research  and  development 
programme  undertaken  by  several  Member  States  (hereafter  "Eurostars  Joint 
Programme").  This  initiative,  put  forward  by  EUREKA,  will  support  research  and 
development  performing  SMEs  (hereafter  "R&D  performing  SMEs")  in  executing 
market-oriented  research  in  transnational  projects.  22  Member  States  and  five  other 
EUREKA countries1 have committed themselves in principle to contribute financially 
to  the  Eurostars  Joint  Programme  with  an  amount  of  EUR  300  million  over  the  six 
years  duration  of  the  programme.  The  Community  will  co-finance  Eurostars  with  an 
amount of up to EUR 100 million. 

In  implementing  Article  169,  the  participating  Member  States  go  beyond  the  mere 
coordination of research programmes, participating actively in a voluntary integration 
process  covering  scientific,  management  and  financial  aspects.  Scientific  integration 
includes  common  definition  and  implementation  of  the  scientific  and  technological 
activities,  and  the  central  selection  of  project  proposals  on  the  basis  of  scientific 
excellence  and  expected  economic  impact.  Management  integration  requires  an 
effectively functioning dedicated implementation structure in charge of the centralised 
and  efficient  implementation  of  the  Eurostars  Joint  Programme.  Financial  integration 
involves the establishment of a multi-annual financing plan to which the participating 
Member  States,  Iceland,  Israel,  Norway,  Switzerland  and  Turkey  effectively 
contribute.  

1.2. 

Grounds for the proposal 

In November 2004 the Competitiveness Council2 stressed the importance of SMEs for 
European  growth  and  competitiveness  and  thus  the  need  for  Member  States  and  the 
Commission  to  enhance  the  effectiveness  and  complementarity  of  national  and 
European  support  programmes  for  SMEs.  In  particular,  the  Council  encouraged  the 
Commission to explore the possible development of a bottom-up scheme for research-
performing  SMEs.  The  Council  also  recalled  the  importance  of  coordination  of 
national programmes for the development of the European Research Area (ERA), and 
invited the Member States and the Commission to co-operate closely in identifying a 
limited number of areas for further application of the Article 169. The Council invited 
the  Commission  to  further  develop  cooperation  and  coordination  with  European 

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2 

Iceland, Israel, Norway, Switzerland and Turkey. 
Competitiveness Council, 25-26 November 2004, 14687/04 (Presse 323) 

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schemes and the Union, notably with EUREKA. 

In its "Resolution on science and technology"3, the European Parliament firmly states 
that a more efficient and coordinated use should be made of other funding mechanisms 
and  support  mechanisms  to  support  R&D  and  innovation,  such  as  EUREKA.  The 
Parliament  advocates  enhanced  cooperation  between  national  research  programmes 
and  calls  on  the  Commission  to  take  initiatives  pursuant  to  Article  169  of  the  EC 
Treaty.  

The Seventh Framework Programme4 (hereafter "FP7") provides for the possibility to 
launch  such  Article  169  initiatives  in  areas  identified  in  close  association  with  the 
Member  States.  The  participation  of  the  Community  in  joint  research  programmes  is 
especially  relevant  to  European  cooperation  on  a  large  scale  in  'variable  geometry' 
between Member States sharing common needs and/or interests. Four areas have been 
identified  in  the  Specific  Programmes5  including  "research  performing  SMEs" 
("Eurostars")  in  the  "Capacities"  Specific  Programme6.  Therefore,  the  "Capacities" 
Workprogramme also refers to the Eurostars initiative7. 

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1.3. 

General context 

1.3.1 SMEs in the globalised economy and the Lisbon process 

Representing  99%  of  all  enterprises  in  Europe,  SMEs8  are  a  key  element  for  the 
success  of  the  renewed  Lisbon  partnership  for  growth  and  jobs,  as  they  are  essential 
sources  of  innovation  and  job  creation9.  They  face  many  difficult  challenges:  strong 
global  competition  in  the  context  of  the  rising  internationalisation  of  value  chains, 
faster product cycles, changes in economic structures and in the international division 
of labour. Many SMEs struggle to re-position themselves in the market place. Yet for 
innovative  SMEs,  their  small  size  and  flexible  organisation  may  prove  to  be  a 
significant advantage in this changing economic environment, enabling them to adapt 
quickly  and  in  so  doing  seize  new  market opportunities. R&D performing  SMEs can 
make  a  very  important  contribution  towards  the  conversion  of  science  and  new 
technology  into  innovative  products,  processes  and  services,  thus  contributing  to  the 
achievement of the Lisbon objectives. 

1.3.2  R&D performing SMEs in Europe 

R&D  performing  SMEs  are  defined  as  SMEs  having  their  own  research  capabilities. 
technology/innovation-based  companies, 
These  SMEs  are  knowledge-intensive, 
playing a key role in the innovation process. Based on their own R&D capacity, they 
are  able  to  develop  products,  processes  or  services  that  have  a  clear  innovative  or 
technological advantage. R&D constitutes a key element in their corporate strategy and 

3 
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7 
8 

9 

OJ C 320 E, 15.12.2005, p. 259. 
Decision No 1982/2006/EC, OJ L 412, 30.12.2006, p. 1. 
OJ L 400, 30.12.2006, p. 86. 
Decision No 974/2006/EC, OJ L 400, 30.12.2006, p. 299. 
Work Programme 2007, "Research for the benefit of SMEs", C(2006)563, 26.02.2007. 
SME definition according to the Commission Recommendation 2003/361/EC, OJ L124, 20.05.2003, p. 
36. 
COM(2006) 349 final, 29.06.2006. 

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business  plans.  Europe  has  too  few  of  these  SMEs  strong  in  R&D  and  with  the 
potential to grow and become large European and  global players of  tomorrow10. It is 
striking  that  82%  of  the  large  US  firms  established  after  1980  were  created  from 
scratch.  In  the  EU,  only  37%  of  the  large  firms  established  after  1980  were  created 
from  scratch11.  Europe  not  only  counts  less  R&D  performing  SMEs,  but  it  is  also 
reported  that  small  US  firms  devote  more  resources  to  R&D  in  their  growth  phase 
compared to European companies.  Europe is lagging behind in stimulating growth in 
R&D  performing  SMEs.  National  policies  in  the  field  are  fragmented,  and  specific 
instruments at Community level are lacking. 

1.3.3 Coordination of national and European research programmes 

the  Seventh  Community  Framework  Programme12 

The "Impact assessment and ex ante evaluation" carried out as part of the preparation 
of 
lack  of 
coordination of national research policies as a major structural deficit of the European 
R&D system. This fragmentation of activities is a serious impediment to full realisation 
of  the  ERA.  The  differences  in  design  and  implementation  of  national  programmes 
makes  cross-border  S&T  cooperation  more  difficult  and  leads  to  an  inefficient 
allocation of resources.  

identified 

the 

New  initiatives  are  needed  to  move  towards  better  coordination  and  synergy  of  the 
activities  undertaken  at  Community  and  Member  State  level.  This  should  have  a 
positive overall effect on the impact of R&D carried out across Europe thanks to the 
increased scale and better overall allocation of the mobilised resources.  

1.3.4 EUREKA and the Framework Programme 

EUREKA  is  an  inter-governmental  initiative  established  in  1985  and  aimed  at 
supporting  market-oriented  transnational  R&D  and  innovation  projects  across  all 
sectors. It is composed of 38 members, including the European Community.  

The  Communication  from  the  Commission  on  the  ERA  in  2000  called  for  closer 
relations with initiatives such as EUREKA. At the EUREKA Ministerial Conference in 
Paris  in  June  2004,  an  important  step  was  taken  with  regard  to  concrete  cooperation 
between  the  Framework  Programme  and  EUREKA.  The  ministers  responsible  for 
EUREKA  and  the  Commissioner  for  Research  invited  the  European  Commission  to 
explore  the  possibility  of  setting  up  concrete  financing  mechanisms  reinforcing 
cooperation  between  EUREKA  and  the  Framework  Programme,  including  SMEs,  on 
the  basis  of  instruments  such  as  Articles  171  or  169  of  the  Treaty.  Thereafter, 
EUREKA  developed  the  Eurostars  Joint  Programme,  to  be  implemented  via  Article 
169 and targeting R&D performing SMEs with high growth potential. 

1.3.5. Previous activities and experience 

The  key  lesson  from  the  first  Article  169  initiative  on  clinical  trials  (EDCTP)  is  that 
such  an  initiative  can  only  function  effectively  if  there  are  three  levels  of  integration 

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12 

The 2005 EU Industrial R&D investment scoreboard, European Commission. 
Towards a European Research Area, Science, Technology and Innovation, Key Figures 2005, European 
Commission. 
Impact assessment and ex ante evaluation, Commission staff working paper, SEC(2005)430, Annex 1. 

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between  the  national  programmes  involved:  scientific,  management  and  financial 
integration. EDCTP has also shown that the latter is of particular importance and that 
from the outset, a clear, multi-annual commitment by the participating countries must 
be ensured in financial terms. 

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1.4. 

Existing provisions in the area of the proposal 

Although  SMEs  have  access  to  a  number  of  programmes  under  the  Framework 
Programme, there is currently no specific scheme addressing R&D performing SMEs.  

SMEs can participate in FP7 in two ways. Firstly, SMEs are encouraged to participate 
in  collaborative  projects  under  the  "Cooperation"  programme.  In  addition,  the  action 
"Research for the benefit of SMEs" targets SMEs in need of outsourcing R&D.  

EUREKA  supports  market-oriented  transnational  research  projects  without  any 
thematic restriction. Once awarded the EUREKA label, project partners have to look to 
their own national programmes for funding as there is no central funding mechanism. 

The  Eurostars  Joint  Programme  complements  both  the  activities  of  the  Framework 
Programme and EUREKA, by offering a bottom-up programme, which is specifically 
tailored towards R&D performing SMEs. The Eurostars Joint Programme places SMEs 
in  the  driving  seat,  favours  small  consortia,  encourages  market-oriented  research, 
results in the synchronisation and harmonisation of national procedures, and finally, it 
offers a secured funding mechanism to the project participants.  

140 

1.5. 

Consistency with the other policies and objectives of the Union 

SMEs are a key element for success in the renewed Lisbon partnership for growth and 
jobs13.  Eurostars  aims  to  stimulate  the  particularly  important  segment  of  R&D 
performing SMEs, and in doing so contributes to the Barcelona objective of 3% GDP 
invested  in  research.  In  the  context  of  the  development  of  the  ERA14  a  more  co-
ordinated  implementation  of  national  and  European  research  programmes  and  closer 
relations between European organisations for scientific and technological co-operation, 
like EUREKA, were proposed. The recent Green Paper on the ERA also refers to the 
role of intergovernmental networking structures such as EUREKA, which could further 
contribute to the coherence of activities within the ERA15. Eurostars will contribute to 
these objectives. 

The programme is also expected to facilitate the development and wider use by SMEs 
of  environmental  technologies,  eco-innovations,  environment-friendly  products  and 
practices, thus allowing to protect the environment more efficiently. It also gives EU 
SMEs an advantage on green markets which is in line with EU policy initiatives16. 

13 
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COM(2006)349 final, 29.6.2006. 
COM(2000) 6 final, 18.1.2000. 
COM(2007) 161 final, 4.4.2007. 
ETAP  (Environmental  Technologies  Action  Plan),  ECAP  (Environmental  Compliance  Assistance 
Programme for SMEs) 

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2. 

CONSULTATION OF INTERESTED PARTIES AND ASSESSMENT OF THE OPTIONS 

2.1. 

Consultation of interested parties 

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Consultation methods, main sectors targeted and general profile of respondents 

The  FP7  stakeholder  consultation  was  launched  on  the  basis  of  the  Communication 
"Science and Technology, the key to Europe's future - Guidelines for future European 
policy  to  support  research"  of  June  2004.  This  consultation  was  aimed  at  engaging  a 
broad  range  of  stakeholders  who  are  involved  in  research  activities,  research  policies 
and the exploitation of research results. 

The SME consultation on future EU research policies was organised in two stages. As 
a  first  step,  the  Irish  EU  presidency  organised  a  conference  entitled  "Research, 
Innovation and European SMEs", which was followed by the conference "Investing in 
Research and Innovation", with a session on "SMEs, R&D and Innovation" under the 
Dutch  presidency.  In  the  second  stage,  two  SME  stakeholder  workshops  were 
organised in November 2004 and January 2005. 

The FP7 Advisory Group on SMEs was informed and consulted about the content of 
the Eurostars Joint Programme. 

The  members  of  CREST  (Scientific  and  Technical  Research  Committee)  have  been 
regularly informed and consulted on the development of the Article 169 initiatives and 
were also involved in the discussion on integration of the scientific, management and 
financial aspects.  

In  the  frame  of  EUREKA,  the  Eurostars  initiative  was  regularly  discussed  with  the 
Member States. 

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Summary of responses and how they have been taken into account 

The  stakeholder  consultation  shows  strong  support  for  the  measures  supporting 
research  in  SMEs  and  for  their  benefit.  Among  the  SMEs  involved  in  research 
activities,  a  major  distinction  should  be  made  between  R&D  performing  SMEs  and 
R&D  outsourcing  SMEs.  Policy  initiatives  should  take  the  needs  of  these  different 
groups  into  account.  Some  stakeholders  argued  in  favour  of  a  dedicated  bottom-up 
scheme  targeting  research-performing  SMEs.  The  stakeholders  pointed  out  that 
schemes focussing on outsourcing R&D were not suited for SMEs wishing to carry out 
their  own  research.  Moreover,  within  the  collaborative  projects  of  the  Framework 
Programme,  some  stakeholders  were  concerned  about  the  minor  role  played  by 
research  performing  SMEs.  It  was  also  recommended  that  a  more  coherent  approach 
should  be  developed  throughout  the  various  national,  regional  and  European  funding 
programmes, through effective collaboration between national and European initiatives 
such as the Framework Programme and EUREKA. The four Article 169 initiatives put 
forward  in  the  Specific  Programmes  of  FP7,  which  include  Eurostars,  have  been 
discussed in CREST and were found to be in the most advanced stage of development. 

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230 

2.2. 

Policy options and how they compare 

The  Commission  has  not  conducted  a  full  impact  assessment  of  this  proposal. 
Nevertheless,  an  ex-ante  assessment  was  carried  out,  wherein  a  number  of  policy 
options were considered and compared, for which a summary is given below. 

Option 1: No joint programme, no FP7. 

In  this  hypothesis,  R&D  performing  SMEs  would  only  rely  on  the  available  national 
programmes.  However,  these  programmes  often  lack  the  right  incentives  to  develop 
international  consortia  which  are  needed  to  optimally  benefit  from  opportunities 
offered at European and global level. Moreover, the absence of action at Community 
level would result in greater fragmentation of the research effort and less efficient use 
of  public  spending  for  research  due  to  the  unnecessary  duplication  of  R&D-related 
work.  

Option 2: No joint programme, only FP7 

FP7  offers  several  opportunities  for  SMEs  to  participate  in  R&D  activities.  The 
funding scheme "Research for the benefit of SME" supports the outsourcing of R&D 
by SMEs to RTD performers. SMEs can participate in collaborative projects under the 
"Cooperation"  programme.  However,  R&D  performing  SMEs  often  operate  in  niche 
markets  which  cannot  always  be  covered  by  the  topics  defined  in  the  Work 
Programme. Moreover, the timing might not be appropriate, especially considering the 
dynamic, market-oriented approach of R&D in these companies. Finally, SMEs are not 
necessarily in the driving seat of these projects.  

The ERA-NET scheme aims to coordinate national and regional research programmes. 
ERA-NET+ provides an incentive for several national programmes to organise a single 
joint  call,  bridging  the  gap  between  ERA-NET  and  Article  169.  However,  these  two 
schemes do not envisage the creation of a joint programme  with a lasting integrating 
effect upon the participating national programmes. 

Option 3: Eurostars Joint Programme 

Using Article 169 of the Treaty is the most powerful method of achieving cooperation 
between  national  research  programmes  through  the  joint  implementation  of  complete 
programmes or  large parts of programmes.  This facilitates the achievement of results 
unattainable  with  other  means  because  of  the  scale  and  diversity  of  the  resources 
mobilised  and  the  structural  effects  of  combining  Community  and  Member  States 
efforts. 

The Eurostars Joint Programme provides significant leverage for Community funding: 
with  a  Community  contribution  of  up  to  EUR  100  million,  the  participating  Member 
States,  Iceland,  Israel,  Norway,  Switzerland  and  Turkey  will  contribute  EUR  300 
million, resulting in a programme with EUR 400 million of public funding. Assuming 

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project funding rates in the range of 50%-75%, Eurostars could mobilise between EUR 
133 and 400 million17 of additional private funding for the duration of the Programme. 

The  Eurostars  Joint  Programme  has  been  tailor-made  for  R&D  performing  SMEs, 
offering  a  bottom-up  approach  which  is  of  particular  relevance  as  these  firms  often 
operate in niche markets and have to respond quickly to new market demands. It will 
give the opportunity to these SMEs to initiate and lead market-oriented R&D projects 
with  the  partner(s)  that  best  complement  their  competences  and  capabilities.  Finally, 
the  Eurostars  Joint  Programme  aims  at  offering  fast  decision-making  procedures, 
synchronisation and harmonisation of national procedures, and a secured funding to the 
participants in selected projects. 

2.3.  Why use Article 169? 

Comparison  of  the  different  policy  options  has  shown  that  the  participation  of  the 
Community  in  a  joint  research  programme  based  on  Article  169  is  the  only  option 
which  will  make  it  possible  to  tackle  all  the  issues  related  to  support  to  R&D 
performing SMEs: 

-  Support  for  R&D  performing  SMEs  is  at  present  heavily  fragmented  and 

lacks a coherent approach. 

-  There  is  a  strong  need  to  go  beyond  the  coordination  of  national 
programmes by pooling national and Community resources and establishing 
a joint programme tailored to the needs of these SMEs. 

-  The  participation  of  the  Community  in  the  Eurostars  Joint  Programme 
based  on  Article  169  is  the  concrete  fulfilment  of  closer  collaboration 
between  EUREKA  and  the  Framework  Programme,  which  constitutes  a 
milestone in the realisation of the European Research Area. 

-  Through the application of Article 169 a framework is created which pools 
a critical mass of resources and allows for the lasting integration of national 
programmes, including scientific, management and financial aspects. 

-  Using Article 169 confers a significant leverage on the Community funding, 
as  EUR  100  million  is  expected  to  mobilise  between  EUR  433  and  700 
million of national public funds and private funds altogether. 

By implementing and financing joint activities under the Eurostars Joint Programme, a 
dynamic process will be created, leading to the integration of the participating national 
programmes, to the enhancement of the scientific and technical excellence, and to the 
improvement  of  the  efficiency  in  the  management,  therefore  contributing  to  the 
realisation of the objectives of the European Research Area. 

17 

With  an  average funding rate  of 50%, EUR  400  million of  public  support  calls for  another  EUR 400 
million  of  private  funding  invested  in  the  R&D  projects  as  the  own  contribution  from  the  project 
participants. Assuming a maximum funding rate of 75%, the sum of total project costs could be of EUR 
400/0.75  million  =  EUR  533  million,  meaning  that  the  private  contribution  would  be  of  EUR  133 
million in that case.  

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3. 

305 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. 

Summary of the proposed action 

The Eurostars initiative aims to create a joint research and development programme by 
providing  the  necessary  legal  and  organisational  framework  for  large-scale  European 
cooperation between Member States on applied research and innovation in the area of 
R&D  performing  SMEs.  Austria,  Belgium,  Cyprus,  the  Czech  Republic,  Denmark, 
Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, 
the Netherlands, Poland, Portugal, Romania, Slovenia, Spain and Sweden (hereinafter 
referred  to  as  "the  participating  Member  States")  as  well  as  Iceland,  Israel,  Norway, 
Switzerland and Turkey (hereinafter referred to as "the other participating countries") 
have agreed to coordinate and jointly implement activities aimed at contributing to the 
Eurostars  Joint  Programme.  The  overall  value  of  their  participation  is  estimated  at  a 
minimum of EUR 300 million over the six-year period covered by the programme. 

In order to increase the impact and critical mass of the Eurostars Joint Programme and 
to  add  an  incentive  for  greater  integration  among  the  participating  national 
programmes,  the  Community  should  participate  and  make  a  financial  contribution  of 
up to EUR 100 million subject to efficient implementation and financial commitments 
by Member States in line with the criteria set out in the FP7 decision. 

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3.2. 

Legal basis 

The  proposal  for  the  Eurostars  Joint  Programme  is  based  on  Article  169  of  the  EC 
Treaty, which provides for the participation of the Community in research programmes 
jointly undertaken by several Member States. 

This  proposal  corresponds  to  the  indirect  centralised  management,  according  to  the 
provisions of Art. 54(2)(c) of the Financial Regulation. According to Article 56 of the 
Financial Regulation, the Commission shall first obtain evidence of the existence and 
proper operation of, inter alia, grant-award procedures, an internal control system, an 
adequate accounting system within the entity to which it entrusts implementation, and 
an independent external audit. 

320 

3.3. 

Subsidiarity principle 

The  subsidiarity  principle  applies  insofar  as  the  proposal  does  not  fall  under  the 
exclusive competence of the Community. 

321 

The objectives of the proposal cannot be sufficiently achieved by the Member States as 
national programmes usually do not sufficiently address the globalising environment of 
R&D performing SMEs. National programmes often lack the possibility to fund cross-
border collaborative SME projects in a sufficiently harmonised and synchronised way.  

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324 

327 

331 

332 

342 

4. 

401 

The added value of the Community action is significant as the Community intervention 
will  enable  the  creation  of  a  new  legal  framework  where  Community  and  national 
funding  can  be  combined  under  a  common  strategy  to  stimulate  transnational 
collaborative R&D projects initiated and led by R&D performing SMEs. The pooling 
of  resources  from  national  programmes  and  from  the  Community  enables  a  critical 
mass to be achieved that can better address the challenges faced by R&D performing 
SMEs.  This  would  otherwise  not  be  feasible  using  the  existing  structures  in  the 
Framework Programme and within national programmes. 

The  leverage  effect  on  national  and  private  funding  for  R&D  is  significant,  as  a 
Community  contribution  of  EUR  100  million  could  mobilize  between  EUR  433  and 
700  million  of  national  public  and  private  funds  for  the  benefit  of  R&D  performing 
SMEs, which represents a multiplication factor between 4 and 7. 

The proposal therefore complies with the subsidiarity principle. 

3.4. 

Proportionality principle 

The proposal complies with the proportionality principle for the following reason(s). 

The  Eurostars  Joint  Programme  is  aimed  at  integrating  research  and  development 
activities  in  the  field  of  R&D  performing  SMEs  throughout  Europe.  The  centralised 
management of the programme will ensure consistency in the execution of the action. 
The  role  of  the  Community  is  limited  to  providing  incentives  for  improved 
coordination  and  integration,  and  ensuring  synergies  with  relevant  complementary 
activities  under  the  Framework  Programme  and  the  Competitiveness  and  Innovation 
Programme. Member States will be responsible for developing all operational aspects 
in order to participate in Eurostars. 

The proposed organisational structure ensures that the administrative burden is kept to 
a  minimum,  by  having  the  dedicated  structure  in  charge  of  the  overall  planning, 
organisation  of  calls  and  evaluations,  monitoring  of  projects  and  management  of  the 
Community contribution. The effective payment to participants in selected projects will 
be managed by the funding bodies designated by the participating Member States.  

3.5. 

Choice of instruments 

The proposed instrument is a co-decision by the European Parliament and the Council, 
which is the means for implementing Article 169. 

BUDGETARY IMPLICATION 

The budgetary implications of this proposal are already included in the legal basis of 
FP718 as well as in the "Capacities" Specific Programme of FP7. The agreement to be 
concluded between the Commission and the dedicated implementation structure shall 
ensure that the financial interests of the Community are protected. 

18 

Decision No 1982/2006/EC, OJ L 412, 30.12.2006, p. 1 

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5. 

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511 

513 

514 

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ADDITIONAL INFORMATION 

5.1. 

Simplification 

The  proposal  provides  for  the  simplification  of  administrative  procedures  for  public 
authorities (EU or national) and for private parties. 

The  EU  will  deal  directly  with  the  dedicated  implementation  structure  of  Eurostars 
which  will  be  in  charge  of  allocating,  monitoring  and  reporting  on  the  use  of  the 
Community contribution. 

Recipients  of  the  Eurostars  research  funding  will  benefit  from  using  the  national 
funding rules which are more familiar to them. 

5.2. 

Review/revision/sunset clause 

The proposal includes a review clause. 

5.3. 

European Economic Area 

The proposed act concerns an EEA matter and should therefore extend to the European 
Economic Area. 

EN 

11 

   EN 

 
 
 
 
2007/0188 (COD) 

Proposal for a 

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the participation by the Community in a research and development programme 
aimed at supporting research and development performing SMEs undertaken by several 
Member States 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles 169 and 172, second paragraph, thereof, 

Having regard to the proposal from the Commission19, 

Having regard to the opinion of the European Economic and Social Committee20, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty21, 

Whereas: 

(1) 

(2) 

Decision  No  1982/2006/EC  of  the  European  Parliament  and  of  the  Council  of  18 
December  2006  concerning  the  Seventh  Framework  Programme  of  the  European 
Community  for  research,  technological  development  and  demonstration  activities 
(2007  -  2013)  (hereinafter  referred  to  as  "the  Seventh  Framework  Programme")22 
provides  for  Community  participation  in  research  and  development  programmes 
undertaken by several Member States, including participation in the structures created 
for  the  execution  of  those  programmes,  within  the  meaning  of  Article  169  of  the 
Treaty. 

The  Seventh  Framework  Programme  has  defined  a  series  of  criteria  for  the 
identification  of  areas  for  such  Article  169  initiatives:  the  relevance  to  Community 
objectives, the clear definition of the objective to be pursued and its relevance to the 
objectives of the Framework Programme, the presence of a pre-existing basis (existing 
or envisaged national research programmes), a European added value, a critical mass 
with regard to the size and the number of programmes involved and the similarity of 

19 
20 
21 
22 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L 412, 30.12.2006, p. 1. 

EN 

12 

   EN 

 
 
 
                                                 
(3) 

(4) 

(5) 

(6) 

activities they cover, and the efficiency of Article 169 as the most appropriate means 
for achieving the objectives. 

Council  Decision  No  974/2006/EC  of  19  December  2006  concerning  the  Specific 
Programme  “Capacities”  implementing  the  Seventh  Framework  programme  of  the 
European  Community  for  research,  technological  development  and  demonstration 
activities (2007 - 2013)23 (hereinafter “Specific Programme Capacities”) identifies an 
Article  169  initiative  in  the  field  of  Research  Performing  Small  and  Medium-Sized 
Enterprises  (SMEs)  as  one  of  the  fields  suitable  for  Community  participation  in 
national research programmes jointly implemented on the basis of Article 169 of the 
Treaty. 

In its conclusions of 24 September 2004, the Council recognised the important role of 
the  Framework  Programme  in  furthering  the  development  of  the  European  Research 
Area (ERA), and in this context stressed the importance of reinforcing the ties between 
the ERA and European intergovernmental organisations, such as EUREKA. 

In  its  conclusions  of  25-26  November  2004,  the  Council  stressed  the  importance  of 
SMEs for European growth and competitiveness and thus the need for Member States 
and the Commission to enhance the effectiveness and complementarity of national and 
European  support  programmes  for  SMEs.  It  encouraged  the  Commission  to  explore 
the possible development of a bottom-up scheme for research-performing SMEs. The 
Council  recalled  the  importance  of  coordination  of  national  programmes  for  the 
development of the ERA. The Council invited Member States and the Commission to 
co-operate  closely  in  identifying  a  limited  number  of  areas  for  further  application  of 
Article  169  of  the  Treaty.  The  Council  invited  the  Commission  to  further  develop 
cooperation and coordination between the Communities and the activities carried out 
in  the  framework  of  intergovernmental  structures,  notably  with  EUREKA,  recalling 
the EUREKA Ministerial Conference of 18 June 2004. 

The  European  Parliament,  in  its  resolution  on  science  and  technology24,  encourages 
the  Member  States  to  adopt  fiscal  and  other  incentives  for  promoting  industrial 
innovation,  including  links  with  EUREKA,  especially  with  reference  to  SMEs,  and 
stresses that the ERA will be possible only if an increasing proportion of funding for 
research is allocated by the Union with a view to coordinating European, national, and 
regional  research  policies  more  closely  as  regards  both  their  substance  and  their 
funding,  and  if  this  funding  is  additional  to  research  policy  in  and  between  the 
Member  States.  The  European  Parliament  believes  that  a  more  efficient  and 
coordinated  use  should  be  made  of  other  funding  mechanisms  and  support 
mechanisms to support R&D and innovation, mentioning, among others, EUREKA. It 
asks for an enhanced cooperation between national research programmes and calls on 
the Commission to take initiatives pursuant to Article 169 of the EC Treaty. 

(7) 

In its Communication of 4 June 200325 the Commission underlined the importance of 
SMEs  participation  in  direct  measures  to  support  research  and  innovation,  which  is 
crucial to boost the innovative capacity of large segments of the economy.  

23 
24 
25 

OJ L 400, 30.12.2006, p. 299 
P6_TA(2005)0077, OJ C320E/259, 15.12.2005 
COM(2003) 226 final/2 

EN 

13 

   EN 

 
                                                 
(8) 

At  present,  a  number  of  research  and  development  programmes  or  activities 
undertaken  by  Member  States  individually  at  national  level  to  support  research  and 
development  (R&D)  activities  in  SMEs  are  not  sufficiently  coordinated  at  European 
level and do not allow a coherent approach at European level for an effective research 
and technological development programme. 

(9)  Wishing  to  have  a  coherent  approach  at  European  level  in  the  field  of  research  and 
development ("R&D") performing SMEs and to act effectively, several Member States 
have taken the initiative within the frame of EUREKA for setting up a joint research 
and  development  programme  entitled  "Eurostars"  (hereinafter  referred  to  as  the 
“Eurostars  Joint  Programme”) for  the benefit of R&D performing SMEs, in  order to 
obtain  a  critical  mass  in  terms  of  management  and  financial  resources  and  the 
combination of additional expertise and resources available in various countries across 
Europe. 

(10)  The Eurostars Joint Programme aims to support R&D performing SMEs by providing 
the necessary legal and organisational framework for large-scale European cooperation 
between  Member  States  on  applied  research  and  innovation,  in  any  technological  or 
industrial  field,  for  the  benefit  of  these  SMEs.  Austria,  Belgium,  Cyprus,  the  Czech 
Republic,  Denmark,  Estonia,  Finland,  France,  Germany,  Greece,  Hungary,  Ireland, 
Italy, Latvia, Lithuania, the Netherlands, Poland, Portugal, Romania, Slovenia, Spain 
and  Sweden  (hereinafter  "the  participating  Member  States"),  and  Iceland,  Israel, 
Norway, Switzerland and Turkey (hereinafter "the other participating countries") have 
agreed  to  coordinate  and  implement  jointly  activities  aimed  at  contributing  to  the 
Eurostars  Joint  Programme.  The  overall  value of  their  participation  is  estimated  at  a 
minimum of EUR 300 million for the proposed period of six years. The Community 
financial  contribution  should  represent  a  share  of  maximum  25%  of  the  total  public 
contribution to the Eurostars Joint Programme, which is estimated at EUR 400 million. 

(11) 

In  order  to  increase  the  impact  of  the  Eurostars  Joint  Programme,  the  participating 
Member States and the other participating countries have agreed to such Community 
participation  in  the  Eurostars  Joint  Programme.  The  Community  should  participate 
therein by making a financial contribution of up to EUR 100 million for the duration 
of the Eurostars Joint Programme. Given that the Eurostars Joint Programme meets the 
scientific  objectives  of  the  Seventh  Framework  Programme  and  that  the  field  of  the 
Eurostars Joint Programme falls within the "Research for the benefit of SMEs" part of 
the  Specific  Programme  Capacities  of  the  Seventh  Framework  Programme,  the 
Community  financial  contribution  should  be  taken  from  the  budget  appropriation 
allocated to that part. 

(12)  Community  financial  support  should  be  provided  subject  to  the  definition  of  a 
financing plan based on formal commitments from the competent national authorities 
to  implement  jointly  the  research  and  development  programmes  and  activities 
undertaken at national level and to contribute to the financing of the execution of the 
Eurostars Joint Programme.  

(13)  The  joint  implementation  of  the  national  research  programmes  requires  the 
establishment or existence of a dedicated implementation structure, as provided for in 
the Specific Programme Capacities. 

EN 

14 

   EN 

 
(14)  The  participating  Member  States  have  agreed  on  such  a  dedicated  implementation 

structure to implement the Eurostars Joint Programme.  

(15)  The  dedicated  implementation  structure  should  be  the  recipient  of  the  financial 
contribution  from  the  Community  and  should  ensure  the  efficient  execution  of  the 
Eurostars Joint Programme. 

(16)  The  Community  contribution  is  subject  to  commitments  of  resources  by  the 
participating  Member  States  and  the  other  participating  countries  and  the  effective 
payment of their financial contributions.  

(17)  The payment of the Community contribution is subject to the conclusion of a general 
agreement  concluded  between  the  Commission  and  the  dedicated  implementation 
structure,  containing  the  detailed  arrangements  for  the  use  of  the  Community 
contribution. This general agreement shall contain the necessary provisions to ensure 
that the financial interests of the Community are protected. 

(18)  The interest generated by the Community financial contribution shall be considered as 
assigned  revenue,  in  accordance  with  Article  18(2)  of  Council  Regulation  (EC, 
Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the 
the  European  Communities26  (hereinafter  "the  Financial 
general  budget  of 
Regulation"). The maximum Community contribution indicated in this Decision may 
be increased accordingly by the Commission. 

(19)  The Community should have the right to reduce its financial contribution in case the 
Eurostars  Joint  Programme  is  implemented  inadequately,  partially  or  late,  or  in  case 
the participating Member States and the other participating countries do not contribute 
or contribute partially or late to the financing of the Eurostars Joint Programme, on the 
terms  set  out  in  an  agreement  to  be  concluded  between  the  Community  and  the 
dedicated implementation structure. 

(20) 

(21) 

In  order  to  efficiently  implement  the  Eurostars  Joint  Programme,  the  dedicated 
implementation structure should grant financial support to third parties participating in 
the Eurostars Joint Programme selected following calls for proposals. 

In  accordance  with  the  Financial  Regulation  and  Commission  Regulation  (EC, 
Euratom)  No  2342/2002  of  23  December  2002  laying  down  detailed  rules  for  the 
implementation of the Financial Regulation27 (hereinafter "Implementing Rules"), the 
Community contribution shall be managed in the framework of the indirect centralised 
management according to the provisions of Articles 54 (2) (c) and 56 of the Financial 
Regulation, and Articles 35 and 41 of the Implementing Rules. 

(22)  Any Member State should be able to join the Eurostars joint Programme. 

(23) 

In line with the objectives of the Seventh Framework Programme, the participation in 
the  Eurostars  Joint  Programme  of  countries  associated  to  the  Seventh  Framework 

26 

27 

OJ L 248, 16.09.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 
390, 30.12.2006, p. 1). 
OJ L 357, 31.12.2002, p. 1; Regulation as last amended by Regulation (EC, Euratom) No XXXX/2007 
(OJ L …). 

EN 

15 

   EN 

 
                                                 
Programme or of other countries should be possible provided that such participation is 
foreseen  by  the  relevant  international  agreement  and  provided  that  both  the 
Commission and the participating Member States agree to it.  

(24) 

In accordance with the Seventh Framework Programme, the Community should have 
the right to agree on the conditions for its financial contribution to the Eurostars Joint 
Programme  in  relation  to  the  participation  therein  of  any  country  associated  to  the 
Seventh  Framework  Programme,  or  where  essential  for  implementing  the  Eurostars 
Joint  Programme,  of  other  countries,  in  the  course  of  its  implementation,  in 
accordance with the rules and conditions set out in this Decision. 

(25)  Appropriate  measures  should  be  taken  to  prevent  irregularities  and  fraud  and  the 
necessary steps should be taken to recover funds lost, wrongly paid or incorrectly used 
in  accordance  with  Council  Regulation  (EC,  Euratom)  No  2988/95  of  18  December 
1995 on the protection of the European Communities financial interests28, Regulation 
(EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and 
inspections  carried  out  by  the  Commission  in  order  to  protect  the  European 
irregularities29  and 
Communities’  financial 
Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the  Council 
concerning investigations conducted by the European Anti-Fraud Office (OLAF)30

interests  against  fraud  and  other 

 . 

(26) 

It  is  essential  that  the  research  activities  carried  out  under  the  Eurostars  Joint 
Programme comply with basic ethical principles, including those reflected in Article 6 
of  the  Treaty  on  European  Union  and  in  the  Charter  of  Fundamental  Rights  of  the 
European  Union,  and  follow  the  principles  of  gender  mainstreaming  and  gender 
equality. 

(27)  The  Commission  should  conduct  an  interim  evaluation,  assessing  the  quality  and 
efficiency  of  the  implementation  of  the  Eurostars  Joint  Programme  and  progress 
towards the objectives set, as well as a final evaluation.  

HAVE ADOPTED THIS DECISION: 

Article 1 

1. 

In  implementing  the  Seventh  Framework  Programme  of  the  European  Community 
for research, technological development and demonstration activities (2007 to 2013) 
(hereinafter  referred  to  as  "the  Seventh  Framework  Programme"),  adopted  by 
Decision  No  1982/2006/EC,  the  Community  shall  make  a  financial  contribution  to 
the  Eurostars  research  and  development  programme  (hereinafter  referred  to  as  "the 
Eurostars  Joint  Programme")  undertaken  jointly  by  Austria,  Belgium,  Cyprus,  the 
Czech  Republic,  Denmark,  Estonia,  Finland,  France,  Germany,  Greece,  Hungary, 
Ireland,  Italy,  Latvia,  Lithuania,  the  Netherlands,  Poland,  Portugal,  Romania, 
Slovenia,  Spain  and  Sweden  (hereinafter  referred  to  as  "the  participating  Member 
States")  as  well  as  Iceland,  Israel,  Norway,  Switzerland  and  Turkey  (hereinafter 
referred to as "the other participating countries").  

28 
29 
30 

OJ L 312, 23.12.1995, p. 1. 
OJ L 292, 15.11.1996, p 2. 
OJ L 136, 31.05.1999, p. 1. 

EN 

16 

   EN 

 
                                                 
2. 

3. 

The  Community  shall  pay  a  financial  contribution  amounting  to  the  equivalent  of 
maximum one third of the effective contributions of the participating Member States 
and the other participating countries, within a ceiling of EUR 100 million for the six 
years duration of the Eurostars Joint Programme, starting from the entry into force of 
this  Decision.  The  Community  financial  contribution  comes  in  addition  to  the 
minimum  of  EUR  300  million  contributed  by  the  participating  Member  States  and 
the  other  participating  countries.  The  Community  financial  contribution  thus 
represents a share of maximum 25% of the total public contribution to the Eurostars 
Joint Programme, estimated at EUR 400 million. 

The  Community  financial  contribution  shall  be  paid  from  the  budget  appropriation 
allocated to the "Research for the benefit of SMEs" part of the Specific Programme 
Capacities  implementing  the  Seventh  Framework  Programme  pursuant  to  Decision 
2006/974/EC (hereafter "Specific Programme Capacities").  

The Community financial contribution shall be conditional upon:  

Article 2 

(a) 

(b) 

(c) 

(d) 

(e) 

demonstration  by  the  participating  Member  States  and  the  other  participating 
countries  that  the  Eurostars  Joint  Programme  as  described  in  the  Annex  I  to 
this Decision has been efficiently set up;  

the formal establishment or designation by the participating Member States and 
the  other  participating  countries  or  organisations  designated  by  participating 
Member  States  and  the  other  participating  countries,  of  a  structure  with  legal 
personality  (for  the  purposes  of  this  Decision  referred  to  as  "dedicated 
implementation structure"), which shall be responsible for the implementation 
of the Eurostars Joint Programme and for receiving, allocating and monitoring 
the Community financial contribution in accordance with Articles 54(2)(c) and 
56 of the Financial Regulation; 

establishment  of  the  appropriate  and  efficient  governance  model  for  the 
Eurostars  Joint  Programme  in  conformity  with  the  arrangements  set  out  in 
Annex II to this Decision; 

efficient  carrying  out  of  the  activities  under  the  Eurostars  Joint  Programme 
described  in  Annex  I  to  this  Decision  by  the  dedicated  implementation 
structure,  which  entails  the  launch  of  calls  for  proposals  for  the  award  of 
grants; 

commitments  by  the  participating  Member  States  and  the  other  participating 
countries to contribute to the financing of the Eurostars Joint Programme and 
the effective payment of the financial contribution, in particular the funding of 
participants in the projects selected following the calls for proposals launched 
under the Eurostars Joint Programme; 

EN 

17 

   EN 

 
(f) 

(g) 

(h) 

compliance  with  the  State  aid  rules  of  the  Community,  and  in  particular  the 
rules  set  out  in  the  Community  Framework  for  State  Aid  for  Research, 
Development and Innovation31;  

ensuring  a  high  level  of  scientific  excellence  and  observance  of  ethical 
principles in accordance with the general principles of the Seventh Framework 
Programme,  and  of  gender  mainstreaming  and  gender  equality,  and 
contributing to sustainable development, and,  

formulation  of  provisions  governing  the  intellectual  property  rights  stemming 
from  the  activities  carried  out  under  the  Eurostars  Joint  Programme  and  the 
implementation and coordination of the research and development programmes 
and activities undertaken at national level by the participating Member States 
and the other participating countries in such a way that they aim at promoting 
the creation of such knowledge and at supporting a wide use and dissemination 
of the knowledge created. 

Article 3 

The granting of financial support by the dedicated implementation structure to third parties in 
the  implementation  of  the  Eurostars  Joint  Programme,  and  in  particular  financial  support 
provided  to  participants  in  projects  selected  following  calls  for  proposals  for  the  award  of 
grants,  shall  be  subject  to  the  principles  of  equal  treatment  and  transparency.  The  financial 
support to third parties shall be granted on the basis of scientific excellence and, taking into 
account the specific nature of the SME target group, expected economic impact, and shall be 
in accordance with the principles and procedures set out in Annex I to this Decision. 

Article 4 

The arrangements for the Community financial contribution and the rules relating to financial 
liability  and  intellectual  property  rights  as  well  as  the  detailed  rules  for  the  provision  of 
financial  support  by  the  dedicated  implementation  structure  to  third  parties  shall  be 
established  by  means  of  a  general  agreement  to  be  concluded  between  the  Commission,  on 
behalf of the Community, and the dedicated implementation structure, and annual financing 
agreements. 

Article 5 

In accordance with Article 18(2) of Council Regulation (EC, Euratom) No. 1605/2002 on the 
Financial  Regulation  applicable  to  the  general  budget  of  the  European  Communities,  the 
interest  generated  by  the  Community  financial  contribution  allocated  to  the  Eurostars  Joint 
Programme shall be considered as assigned revenue. The maximum Community contribution 
indicated in Article 1 may be increased accordingly by the Commission. 

31 

OJ C 323, 30.12.2006, p. 1. 

EN 

18 

   EN 

 
                                                 
Article 6 

If  the  Eurostars  Joint  Programme  is  not  implemented  or  is  implemented  inadequately, 
partially or late, or if the participating Member States and the other participating countries do 
not contribute, contribute partially or late to the financing of the Eurostars Joint Programme, 
the Community may reduce its financial contribution in line with the actual implementation of 
the  Eurostars  Joint  Programme  and  the  amount  of  public  funding  allocated  by  the 
participating  Member  States  and  the  other  participating  countries  for  the  implementation  of 
the  Eurostars  Joint  Programme,  on  the  terms  laid  down  in  the  agreement  to  be  concluded 
between the Commission and the dedicated implementation structure.  

Article 7 

In  implementing  the  Eurostars  Joint  Programme,  the  participating  Member  States  and  the 
other  participating  countries  shall  take  the  legislative,  regulatory,  administrative  or  other 
measures  necessary  for  protecting  the  Communities'  financial  interests.  In  particular,  the 
participating  Member  States  and  the  other  participating  countries  shall  provide  adequate 
guarantees  as  regards  full  recovery  from  the  dedicated  implementation  structure  of  any 
amounts due to the Community. 

Article 8 

The Commission and the Court of Auditors may, through their officials or agents, carry out all 
the checks and inspections needed to ensure proper management of the Community funds and 
protect the financial interests of the Community against any fraud or irregularity. To this end, 
the  participating  Member  States  and  the  other  participating  countries  and/or  the  dedicated 
implementation  structure  shall,  in  due  course,  make  all  relevant  documents  available  to  the 
Commission and the Court of Auditors. 

Article 9 

The Commission shall communicate all relevant information to the European Parliament, the 
Council  and  the  Court  of  Auditors.  The  participating  Member  States  and  the  other 
participating  countries  are  invited  to  submit  to  the  Commission,  through  the  dedicated 
implementation  structure,  any  additional  information  required  by  the  European  Parliament, 
the Council and the Court of Auditors concerning the financial management of the dedicated 
implementation structure. 

Any Member State may join the Eurostars Joint Programme on the basis of the rules set out in 
this Decision. 

Article 10  

Any third country may join the Eurostars Joint Programme on the basis of the rules set out in 
this  Decision,  provided  that  such  participation  is  foreseen  by  the  relevant  international 

Article 11  

EN 

19 

   EN 

 
agreement and provided that both the Commission and the participating Member States and 
the other participating countries agree to it.  

Article 12 

The conditions for the Community financial contribution in relation to the participation, in the 
Eurostars Joint Programme, of any country associated to the Seventh Framework Programme 
or,  where  essential  for  implementing  the  Eurostars  Joint  Programme,  of  any  other  country, 
may be agreed by the Community on the basis of the rules set out in this Decision and of any 
implementing rules and arrangements. 

Article 13 

1. 

2. 

3. 

The annual report on the Seventh Framework Programme presented to the European 
Parliament  and  the  Council  pursuant  to  Article  173  of  the  Treaty  shall  include  a 
summary  of  the  activities  of  the  Eurostars  Joint  Programme  based  on  the  annual 
report to be provided by the dedicated implementation structure to the Commission. 

An interim evaluation of the Eurostars Joint Programme shall be carried out by the 
Commission  two  years  after  the  start  of  the  Eurostars  Joint  Programme.  This 
evaluation  shall  cover  the  quality  and  efficiency  of  the  implementation,  including 
scientific,  management  and  financial  integration,  of  the  Eurostars  Joint  Programme 
and  progress  towards  the  objectives  set,  including  recommendations  on  the  most 
appropriate ways to further enhance integration. The Commission shall communicate 
the  conclusions  thereof,  accompanied  by  its  observations  and,  where  appropriate, 
proposals  for  the  adaptation  of  this  Decision,  to  the  European  Parliament  and  the 
Council. 

At the end of the Eurostars Joint Programme, the Commission shall conduct a final 
evaluation of the Programme. The results of the final evaluation shall be presented to 
the European Parliament and the Council. 

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

Article 14  

Article 15  

This Decision is addressed to the Member States. 

Done at Brussels, […] 

For the European Parliament 
The President 
[…] 

For the Council 
The President 
[…] 

EN 

20 

   EN 

 
Description of the objectives and activities of the Eurostars Joint Programme 

ANNEX I 

I. Objectives 

The objective of this initiative put forward by the EUREKA Member Countries is to establish 
the Eurostars Joint Programme targeting research and development (R&D) performing SMEs. 
These SMEs are knowledge-intensive, technology/innovation-based companies, playing a key 
role  in  the  innovation  process.  They  are  characterised  by  a  strong  customer  or  market 
orientation,  aiming  to  achieve  a  strong  international  position  by  leading  highly  innovative, 
market-oriented  projects.  Based  on  their  own  R&D  capacity,  they  are  able  to  develop 
products,  processes  or  services  that  have  a  clear  innovative  or  technological  advantage. 
Companies may vary in size and in scope of activities, being e.g. established businesses with 
a track record of performing application-oriented, cutting-edge R&D, or high-potential start-
ups.  R&D  constitutes  a  key  element  in  their  corporate  strategy  and  business  plans.  These 
companies  should  be  SMEs  within  the  meaning  of  the  Commission  Recommendation 
2003/361/EC32. 

The Eurostars Joint Programme aims to support those R&D performing SMEs by: 

(1) 

(2) 

(3) 

creating a sustainable European R&D support mechanism for R&D performing SMEs; 

encouraging them to create new economic activities based on R&D results and bring 
new  products,  processes  and  services  to  the  market  faster  than  would  otherwise  be 
possible; 

promoting  technological  and  business  development,  and  internationalisation  of  those 
companies. 

The  Eurostars  Joint  Programme  shall  complement  existing  national  and  European 
programmes aimed at supporting R&D performing SMEs in their innovation process. 

It  shall  contribute  to  European  competitiveness,  innovation,  employment,  economic  change, 
sustainable  development  and  environmental  protection,  and  help  to  achieve  the  Lisbon  and 
Barcelona objectives. As an initiative of 27 EUREKA countries, it shall support, through its 
bottom-up approach, research, development and demonstration activities carried out by trans-
national consortia driven by R&D performing SMEs and co-operating where appropriate with 
research organisations and/or large enterprises.  

The Eurostars Joint Programme is aimed at aligning and synchronising the relevant national 
research  and  innovation  programmes  to  establish  a  joint  programme,  featuring  scientific, 
management  and  financial  integration,  marking  an  important  contribution  towards  the 
realisation of the European Research Area. The scientific integration is achieved through the 
common  definition  and  implementation  of  activities  under  the  Eurostars  Joint  Programme. 
Management  integration  is  achieved  via  the  use  of  the  EUREKA  Secretariat  as  dedicated 
implementation  structure.  Its  role  is  to  manage  the  Eurostars  Joint  Programme  and  to 
monitoring its execution, as further detailed in Annex II. The financial integration implies that 

32 

OJ L 124, 20.5.2003, p. 36. 

EN 

21 

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the  participating  States  effectively  contribute  to  the  financing  of  the  Eurostars  joint 
programme,  involving  in  particular  the  commitment  to  fund  the  participants  in  selected 
Eurostars projects from the national earmarked Eurostars budgets.  

In  the  longer  term,  this  initiative  should  strive  for  developing  tighter  forms  of  scientific, 
management  and  financial  integration.  The  participating  Member  States,  Iceland,  Israel, 
Norway,  Switzerland  and  Turkey  (hereafter  referred  to  as  the  "participating  States")  should 
further  strengthen  the  integration  and  remove  existing  national  legislative  barriers  for 
international cooperation. 

II. Activities  

The main activity in the Eurostars Joint programme consists of R&D activities driven by one 
or more R&D performing SME(s) established in the participating States. The R&D activities 
can be carried out in the entire field of science and technology and are: 

(1) 

(2) 

(3) 

two 
implemented  via  multi-partner 
independent  participants  from  different  participating  States  addressing  research, 
technological  development,  demonstration,  training,  and  dissemination  activities. 
Research organisations, universities or large companies may also participate in these 
projects;  

trans-national  projects 

involving  at 

least 

executed for their core part by the R&D performing SME(s), which should contribute 
for at least 50% of the costs related to R&D within the project. Minor subcontracting 
may be accounted for, if necessary for the project.  

targeted  at  market-oriented  research  and  development,  and  should  be  of  short  to 
medium  term  duration  and  address  challenging  research  and  development  work;  the 
SME(s)  should  demonstrate  the  capability  to  exploit  the  project  results  within  a 
realistic time frame; 

(4) 

led and coordinated by one of the participating R&D performing SMEs, the so-called 
"leading SME". 

In addition, brokerage, programme promotion and networking activities shall be supported to 
a limited extent in order to promote the Eurostars Joint Programme and enhance its impact. 
These  shall  include  the  organisation  of  workshops  and  the  establishment  of  contacts  with 
other stakeholders such as investors and knowledge management providers.  

III. Deliverables expected from the implementation of the Programme 

The  Eurostars  Joint  Programme’s  main  deliverable  is  a  new  joint  European  research  and 
development  programme  for  R&D  performing  SMEs,  which  is  bottom-up,  based  on 
EUREKA  and  co-funded  by  the  contributing  national  R&D  programmes  and  the  European 
Community.  

An  annual  report  shall  be  provided  by  the  dedicated  implementation  structure,  which  shall 
give  a  detailed  overview  on  the  implementation  of  the  joint  programme  (evaluation  and 
selection  process,  statistics  on  the  composition  of  the  evaluator  group,  number  of  projects 
submitted  and  selected  for  funding,  use  of  the  Community  funding,  distribution  of  national 
funds,  type  of  participants,  country  statistics,  brokerage  events  and  dissemination  activities 
etc.) and the progress towards further integration. An ex-post evaluation of the impact shall be 

EN 

22 

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conducted  by  the  dedicated  implementation  structure  at  the  end  of  the  Eurostars  Joint 
Programme. 

IV. Programme implementation 

The  Eurostars  Joint  Programme  shall  be  managed  by  a  dedicated  implementation  structure. 
Proposals  are  submitted  centrally  to  the  dedicated  structure  by  the  applicants  (single  entry 
point), following a central and common yearly call for proposals, with several cut-off dates. 
Project proposals shall  be  evaluated  and selected at  central  level on  the  basis of  transparent 
and  common  eligibility  and  evaluation  criteria  following  a  two-step  procedure.  In  the  first 
step,  proposals  shall  be  assessed  by  at  least  two  independent  experts,  which  review  both 
technical and market aspects of the proposal. These experts may act remotely. The ranking of 
proposals is performed in the second step, by an international evaluation panel, composed of 
independent  experts.  The  ranking  list,  approved  at  central  level,  shall  be  binding  for  the 
allocation  of  funding  from  the  Community  contribution  and  from  the  national  earmarked 
budgets to Eurostars projects. The dedicated implementation structure shall be responsible for 
the  monitoring  of  projects  and  common  operational  procedures  to  manage  the  full  project 
cycle  shall  be  in  place.  Project  participants  in  selected  Eurostars  projects  shall  be  handled 
administratively by their respective national programmes. 

V. Funding Mechanism 

The Eurostars Joint Programme is co-funded by the participating States and the Community. 
Participating States define a multi-annual financing plan to participate in the Eurostars Joint 
Programme and contribute to the co-funding of its activities. The national contributions may 
come out of existing or from newly created national programmes, as long as they comply with 
the  bottom-up  character  of  Eurostars.  Any  participating  State  is  free  to  increase  its  national 
earmarked funding to the Eurostars Joint Programme, at any time during the Programme.  

Funding at Programme level 

The Community contribution to the Eurostars Joint Programme, which shall be managed by 
the  dedicated  implementation  structure,  is  calculated  as  a  maximum  of  one  third  of  the 
effective  financial  contributions  from  the  participating  States,  with  a  ceiling  of  EUR  100 
million. The Community contribution comes in addition to the EUR 300 million contributed 
by  the  participating  States,  thus  representing  a  share  of  maximum  25%  within  the  overall 
public funding available in the Eurostars Joint Programme.  

Up to 4,5% of the Community financial contribution shall be used to cover the running costs 
of  the  dedicated  implementation  structure  for  the  implementation  of  the  Eurostars  Joint 
Programme. 

The  Community  financial  contribution  to  selected  Eurostars  projects  may  be  transferred  by 
the  dedicated  implementation  structure  to  the  national  funding  bodies  designated  by  the 
participating  States,  on  the  basis  of  an  agreement  to  be  concluded  between  the  national 
funding  bodies  and  the  dedicated  implementation  structure.  The  dedicated  implementation 
structure shall make sure that the national funding bodies effectively transfer the Community 
financial contribution to the participants in selected Eurostars projects. 

EN 

23 

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Funding of Eurostars projects  

The  allocation  of  funding  from  the  national  earmarked  budgets  and  from  the  Community 
contribution  to  selected  Eurostars  projects  shall  follow  the  order  of  the  ranking  list.  The 
financial  contribution  to  the  participants  in  these  projects  is  calculated  according  to  the 
funding rules of the participating national programmes. 

In case of a loan, a  standard calculation  for gross grant equivalence shall apply, taking into 
account the interest subsidy intensity and the average failure rate of the underlying national 
programme. 

VI. IPR arrangements 

The  dedicated  implementation  structure  shall  adopt  the  intellectual  property  policy  of  the 
Eurostars  Joint  Programme.  The  objective  of  such  an  intellectual  property  policy  of  the 
Eurostars Joint Programme is to promote knowledge creation, together with the exploitation 
and  dissemination  of  the  project  results  in  favour  of  the  target  group  of  R&D  performing 
SMEs.  In  this  context,  the  approach  taken  under  the  Rules  for  Participation33  in  the  7th 
Framework Programme should serve as a model. 

33 

OJ L 391, 30.12.2006, p. 1 

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24 

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ANNEX II 

Arrangements for the governance of the Eurostars Joint Programme 

The  dedicated  implementation  structure  of  the  Eurostars  Joint  Programme  shall  be  the 
EUREKA  Secretariat.  Its  role  is  to  manage  the  Eurostars  Joint  Programme  and  to  receive, 
allocate and monitor the Community financial contribution to the Eurostars Joint Programme.  

The governance system of the Eurostars Joint Programme involves four main bodies: 

(1) 

(2) 

(3) 

(4) 

The “Eureka High Level Group (HLG)" is composed of the persons appointed by the 
States  members  of  EUREKA  as  High  Level  Representatives, 
including  a 
representative from the European Commission. It  is responsible for the admission of 
new States in the Eurostars Joint Programme. 

The  "Eurostars  High  Level  Group"  is  composed  of  the  EUREKA  High  Level 
Representatives  of  the  States  participating  in  the  Eurostars  joint  programme.  The 
European  Commission  retains  the  option  to  send  a  representative  to  its  meetings  as 
observer.  It  is  competent  to  supervise  the  implementation  of  the  Eurostars  Joint 
Programme,  and  in  particular  for:  the  appointment  of  the  members  of  the  Eurostars 
Advisory Group, the approval of the operational procedures for running the Eurostars 
Joint Programme, the approval of the call planning and call budget, and the approval 
of the ranking list of Eurostars Projects to be funded.  

The  "Eurostars  Advisory  Group"  is  composed  of  EUREKA  National  Project 
Coordinators  (NPC)  from  the  States  participating  in  Eurostars  and  is  chaired  by  the 
Head  of  the  EUREKA  Secretariat.  The  Eurostars  Advisory  Group  shall  advise  the 
Eurostars  Secretariat  in  the  execution  of  the  Eurostars  Joint  Programme  and  shall 
provide  advice  on  the  arrangements  for  its  implementation,  such  as  funding 
procedures, the evaluation and selection process, synchronisation between the central 
and national procedures, and project monitoring, It shall advise on the planning for the 
cut-off  dates  of  the  yearly  call  for  proposals.  It  shall  also  advise  on  progress  in  the 
execution of the joint programme, including progress towards further integration. 

The  EUREKA  Secretariat  (ESE)  shall  act  as  the  dedicated  implementation  structure 
for Eurostars, for which the Head of ESE acts as a legal representative of the Eurostars 
Programme  towards  the  EUREKA  High  Level  Group,  the  Eurostars  High  Level 
Group, the European Commission, the EUREKA network and the outside world. The 
EUREKA Secretariat is in charge of the execution of the Eurostars joint programme, 
and is responsible in particular for: 

–  establishment of the yearly call budget, central organisation of common calls for 

proposals and reception of the project proposals (single entry point); 

–  central  organisation  of  the  eligibility  and  evaluation  of  project  proposals, 
according to common eligibility and evaluation criteria, central organisation of the 
selection of project proposals for funding, and project monitoring and follow-up; 

–  receipt, allocation and monitoring of the Community contribution; 

EN 

25 

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–  collecting the accounts on the distribution of funding by the funding bodies in the 

participating States to the participants in Eurostars projects; 

–  promotion of the Eurostars Joint Programme; 

–  reporting to the EUREKA HLG, the Eurostars HLG, the EUREKA Network and 
the  European  Commission  on  the  Eurostars  Joint  Programme,  including  on 
progress towards further integration. 

EN 

26 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL: 

Participation by the Community in a research and development programme aimed at 
supporting  research  and  development  performing  SMEs  undertaken  by  several 
Member  States  and  States  associated  to  the  Seventh  Framework  Programme,  as 
mentioned in the Decision. 

2. 

ABM / ABB FRAMEWORK 

Policy Area(s) concerned and associated Activity/Activities: 

Research and Technological Development: Seventh Framework Programme. 

Article 169 of the Treaty establishing the European Community. 

3. 

BUDGET LINES 

3.1. 

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

08.13 01 01 "Capacities": "Research for the benefit of SMEs"34 

08.13  01  02  "Capacities":  "Research  for  the  benefit  of  SMEs"  "Eurostars  Joint 
Programme".35 

3.2. 

Duration of the action and of the financial impact: 

The  Community  contribution  to  the  Eurostars  Joint  Programme  is  expected  to  be 
established through co-decision by Council and Parliament in December 2007 for an 
initial  period  up  to  31  December  2013.  Its  financial  impact  on  the  EU  budget  will 
cease after 2013. 

3.3. 

Budgetary characteristics: 

Budget line 

Type of expenditure  New 

EFTA 
contribution 

Contributions from 
applicant countries 

Heading in financial 
perspective 

08.13 01 01  Non-comp  Diff36  YES YES 

08.13 01 02  Non-comp  Diff37  YES YES 

YES 

YES 

N° [1A] 

N° [1A] 

34 

35 
36 
37 

08.13  is  the  budget  line  for  the  operational  costs  of  the  actions  under  "Research  for  the  benefit  of 
SMEs"; the post 08 13 01 01 is to be created. 
The post 08 13 01 02 will be created to cover the costs related to the Eurostars Joint Programme. 
Differentiated appropriation 
Differentiated appropriation 

EN 

27 

   EN 

 
                                                 
4. 

SUMMARY OF RESOURCES 

4.1. 

Financial Resources 

All figures in this statement are indicative and presented in constant values. 

4.1.1. 

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

EUR million (to 3 decimal places) 

Expenditure type 

Section 
no. 

Year 
2007 

2008 

2009 

2010 

2011 

2012 
and 
later 

Total 

Operational expenditure 

Commitment Appropriations 
(CA) 

8.1. 

a 

0 

15,964 

15,964 

15,964 

15,964 

31,926 

95,782 

Appropriations 

Payment 
(PA) 
Administrative expenditure within reference amount38 

b 

0 

7,982 

12,771 

15,964 

15,964 

43,101 

95,782 

Technical  &  administrative 
assistance (NDA) 

8.2.4. 

c 

0 

0,703 

0,703 

0,703 

0,703 

1,406 

4,218 

TOTAL REFERENCE AMOUNT 

Commitment 
Appropriations 

0 

a+c 

16,667 

16,667 

16,667 

16,667 

33,332 

100 

Payment Appropriations 

b+c  0 

8,685 

13,474 

16,667 

16,667 

44,507 

100 

Administrative expenditure not included in reference amount39 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

8.2.5. 

d 

0,117 

0,176 

0,176 

0,176 

0,176 

0,352 

1,173 

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

costs, 

8.2.6. 

e 

0,007 

0,014 

0,014 

0,021 

0,014 

0,035 

0,105 

Total indicative financial cost of intervention 

TOTAL CA including cost 
of Human Resources 

TOTAL  PA  including  cost 
of Human Resources 

a+c
+d+
e 

b+c
+d+
e 

0,124 

16,857 

16,857 

16,864 

16,857 

33.719 

101.278 

0,124 

8,875 

13,664 

16,864 

16,857 

44,894 

101.278 

38 

39 

These are the support expenditures for running costs of the dedicated implementation structure of the 
Eurostars  Joint  Programme.  This  amount  will  not  be  taken  into  account  under  the  ceiling  of 
administrative expenditures of the Seventh Framework Programme (6%). 
The reference amount is the Community contribution to the Eurostars Joint Programme. 

EN 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Co-financing details 

(i) Programme level 

A Community contribution up to EUR 100 million shall be provided, subject to an 
investment of at least EUR 300 million by the participating Member States and the 
other  participating  countries  for  the  period  2008-2013  through  their  national 
programmes. If the participating Member States and the other participating countries 
contribute less than EUR 300 million, the Community contribution will be less than 
EUR  100  million  and  will  be  calculated  as  one  third  of  the  effective  financial 
contributions  of  the  participating  Member  States  and  the  other  participating 
countries. 

It  is  planned  to  pay  the  Community  contribution  via  annual  prefinancings,  which 
should  be  on  average  EUR  16,667  million.  The  payment  will  become  final  upon 
approval of the costs by the Commission. 

A share of the Community contribution will be used to cover the running costs of the 
dedicated implementation structure for the Eurostars Joint Programme, within a limit 
of 4,5 % of the Community contribution40. This shall cover programme management, 
communication,  IT,  travel  and  the  evaluation  of  project  proposals.  Overheads 
(building,  office  supplies,  part  of  the  IT  infrastructure,  heating,etc)  are  covered  by 
the budget of the Eureka Secretariat, which is financed by the EUREKA members. 
The  expenses  related  to  the  administrative  handling  of  the  project  participants  at 
national level will be covered by the participating States41. 

(ii) Project level 

The  allocation  of  funding  from  the  national  earmarked  budgets  and  from  the 
Community contribution to selected Eurostars projects shall follow the order of the 
ranking  list.  The  financial  contribution  to  the  participants  in  these  projects  is 
calculated according to the funding rules of the participating national programmes. 

The  Community  financial  contribution  to  selected  Eurostars  projects  may  be 
transferred by the dedicated implementation structure to the national funding bodies 
designated by the participating States, on the basis of an agreement to be concluded 
between the national funding bodies and the dedicated implementation structure. The 
dedicated implementation structure shall make sure that the national funding bodies 
effectively  transfer  the  Community  financial  contribution  to  the  participants  in 
selected Eurostars projects. 

Finally, the organisations participating in selected Eurostars projects shall co-finance 
these  projects,  in  accordance  with  the  agreement  to  be  concluded  between  the 
dedicated implementation structure and the funding bodies of the participating States.  

40 

41 

The 4,5% of the Community contribution that will be used for covering the running costs related to the 
implementation of the Eurostars Joint Programme are not included in the membership fee which is paid 
each year to EUREKA. 
In  particular  the  individual  grant  agreements  of  the  participants  in  selected  Eurostars  projects  will  be 
concluded with the national funding bodies. 

EN 

29 

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EUR million (to 3 decimal places) 

Co-financing body 

Participating Member States 

f 

Community contribution 

a+c 

2008 

2009 

2010 

2011 

2012 
and 
later 

Total 

50 

50 

50 

50 

100 

300 

16,667 

16,667 

16,667 

16,667 

33,332 

100 

Year 
2007 

0 

0 

Administrative expenditure 

d+e  0,124 

0,190 

0,190 

0,197 

0,190 

0,387 

1,278 

TOTAL  CA  including  co-
financing 

a+c
+d+
e+f 

0,124 

66,857 

66,857 

66,864 

66,857 

133,719  401,278 

4.1.2.  Compatibility with Financial Programming 

(cid:59) 

(cid:133) 

(cid:133) 

Proposal is compatible with existing financial programming. 

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

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 
Agreement42 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3.  Financial impact on Revenue 

(cid:59) 

(cid:133) 

Proposal has no financial implications on revenue 

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

Budget line 

Revenue 

EUR million (to one decimal place) 

Prior to
action 
[Year n-
1] 

[Year 
n] 

Situation following action 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

[n+5]43

a) Revenue in absolute terms 

b) Change in revenue 

 Δ 

42 
43 

See points 19 and 24 of the Inter-institutional agreement. 
Additional columns should be added if necessary i.e. if the duration of the action exceeds 6 years 

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
4.2. 

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

Annual requirements 

Year 
2007 

2008 

2009 

2010 

2011 

2012 
and 
later 

Total  number  of  human 
resources 

5. 

CHARACTERISTICS AND OBJECTIVES 

5.1. 

Need to be met in the short or long term 

The  Community  contribution  is  needed  for  the  establishment  and  operation  of  the 
Eurostars Joint Programme, in order to allow co-financing of the activities with the 
participating  Member  States  and  the  other  participating  countries.  The  Community 
contribution will in particular be used to co-finance participants in selected Eurostars 
projects following open calls for proposals.  

5.2. 

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

The  Eurostars  Joint  Programme  will  combine  Community,  national  and  private 
sources  of  funding  to  support  market-oriented  research,  executed  in  transnational 
projects initiated and led by R&D performing SMEs. As a result of their participation 
in  the  project,  these  firms  should  be  able  to  develop  new  products,  processes  and 
services and significantly strengthen their competitive position in the European and 
global marketplace. 

The added value of the Community's involvement is substantial because: 

The  Community  intervention  will  enable  the  creation  of  a  new  legal  framework 
where Community and national funding can be combined under a common strategy 
to stimulate international collaborative R&D and innovation projects for the benefit 
of R&D performing SMEs. This would otherwise not be feasible using the existing 
structures, and certainly not with the necessary critical mass. 

The  Eurostars  Joint  Programme  will  address  the  challenges  faced  by  R&D 
performing SMEs with high growth potential in proposing a support scheme which 
offers short time to funding decision, flexibility in the composition of the partnership 
and synchronised and secured funding. This programme is really tailored to the R&D 
performing  SMEs  with  high  growth  potential,  which  could  become  the  large 
European firms of tomorrow.  

Finally,  the  proposed  scheme  will  create  incentives  for  increased  national  and 
industrial  investments  in  R&D  and  innovation  in  all  the  fields  of  science  and 
technology, thus contributing to the Barcelona objective of 3% of European GDP for 
R&D. 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
5.3. 

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

The main operational objective of this legislative proposal, namely the participation 
by the Community in a Joint R&D and Innovation Programme undertaken between 
several  Member  States  in  the  field  of  R&D  performing  SMEs,  has  already  been 
provided for in the Seventh Framework Programme for RTD and in its "Capacities" 
Specific Programme.  

Policy objectives associated with this operational objective are: 

Creating  a  sustainable  European  support  mechanism  for  R&D  performing  SMEs 
with  high  growth  potential  willing  to  perform  their  own  research,  in  collaboration 
with  other  partners.  By  supporting  these  firms,  the  Eurostars  Joint  Programme  will 
contribute  to  strengthening  the  competitiveness  of  European  SMEs,  stimulating 
innovation,  employment  and  economic  change,  and  thereby  help  to  achieve  the 
Lisbon and Barcelona objectives. 

Scientific,  management  and  financial  integration  of  the  participating  national 
programmes, or of significant parts of these national programmes. 

Technological and economic objectives 

–  Encouraging R&D performing SMEs to create new economic activities based on 
R&D results, and bring new products, processes and services to the market faster 
than would otherwise be possible; 

–  Promoting  technological  and  business  development,  and  internationalisation  of 

those companies. 

The inputs by the Commission are the resources listed in Section 4.1. 

The  outputs  are:  (a)  the  establishment  of  the  Eurostars  Joint  Programme  and,  (b) 
R&D  and  innovation  projects  selected  and  launched  following  open  calls  for 
proposals by the Eurostars Joint Programme. 

The  following  expected  results  may  be  measured  through  the  indicators  outlined 
below (2008-2013). These indicators may be further detailed and complemented with 
additional indicators in the agreement to be concluded between the Commission and 
the dedicated implementation structure. 

1.  Leveraging  investments  and  co-funding  of  the  Eurostars  Joint  Programme  by 
the participating States 

– 

– 

National  funding  committed  and  effectively  spent  on  Eurostars  projects:  the 
target is EUR 300 million spent by the participating national programmes. 

National  funding  contributed  to  the  joint  calls:  the  participating  States  have 
committed  themselves  to  contribute  annually  at  least  EUR  50  million  to  the 
joint  calls  (except  for  the  1st  year  of  operation  of  the  Eurostars  Joint 
Programme). 

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32 

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2. Programme efficiency 

– 

The time required between the cut-off date and the date where information on 
the outcome of the evaluation is sent to the applicants: by the mid-term of the 
programme, this time should be no more than 4 months. 

3. Progress towards the integration of national programmes 

3.1 Scientific integration 

– 

– 

Effectively  working  central  evaluation  with  independent  experts,  and  central 
selection decision. 

Synchronisation  of 
the 
programme,  the  grant  agreement  with  the  individual  participants  shall  be 
signed no later than 6 months after the cut-off date. 

the  national  procedures.  By 

the  mid-term  of 

3.2 Management integration 

– 

The  dedicated  implementation  structure  is  in  place  and  is  effectively 
implementing the Eurostars Joint Programme. 

3.3 Financial integration 

– 

– 

The  projects  selected  at  central  level  are  effectively  co-funded  by  the 
participating national programmes, according to the order in the ranking list. 

The Community contribution is allocated to the projects according to the order 
of the ranking list. 

5.4.  Method of Implementation (indicative) 

(cid:59)  Centralised Management 

(cid:133) 

directly by the Commission  

(cid:59) 

indirectly by delegation to: 

(cid:133) 

executive Agencies 

(cid:133) 

(cid:59) 

bodies set up by the Communities as referred to in art. 185 of the 
Financial Regulation 

national  or  international  public-sector  bodies/bodies  governed  by 
private  law  with  a  public  service  mission  and  guaranteed  by  the 
Member States and the other participating countries. 

(cid:133) 

Shared or decentralised management 

(cid:133)  with Member states 

(cid:133)  with Third countries 

EN 

33 

   EN 

 
(cid:133) 

Joint management with international organisations (please specify) 

Relevant comments: 

The  financial  contribution  of  the  Community  to  the  joint  programme  will  be  paid  to  the 
dedicated  implementation  structure,  acting  on  behalf  of  the  Member  States  and  the  other 
participating  countries  according  to  the  provisions  of  Articles  54  and  56  of  the  Financial 
Regulation.  The  dedicated  implementation  structure  will  manage  the  Eurostars  Joint 
Programme  and  receive,  allocate  and  monitor  the  Community  financial  contribution.  The 
structure identified by the participating Member States and the other participating countries is 
the EUREKA Secretariat. The governance structure is described in greater detail in Annex II 
of the Decision. 

6. 

MONITORING AND EVALUATION 

6.1.  Monitoring system 

Once established, the Eurostars Joint Programme will be monitored through annual 
reports  which  will  be  provided  by  the  dedicated  management  structure.  These  will 
give a detailed overview on the implementation of the Joint Programme according to 
the indicators presented in Section 5.3. 

6.2. 

Evaluation 

6.2.1.  Ex-ante evaluation 

The  proposed  initiative  has  been  addressed  as  part  of  the  ex-ante  evaluation  of  the 
proposal for the Seventh Framework Programme. 

6.2.2.  Measures taken following an intermediate/ex-post evaluation (lessons learned from 

similar experiences in the past) 

The proposed governance model has been established based on the experience gained 
from  the  first  Article  169  initiative  undertaken  during  the  Sixth  Framework 
programme, namely the EDCTP initiative. 

6.2.3.  Terms and frequency of future evaluation 

A interim and final evaluation of the Eurostars Joint Programme will be carried out 
by the Commission and will cover the quality and efficiency of the implementation, 
including  scientific,  management  and  financial  integration  of  the  Eurostars  Joint 
Programme and progress towards the objectives set out in Annex I. The Commission 
may be assisted by independent experts. 

EN 

34 

   EN 

 
7. 

ANTI-FRAUD MEASURES  

Article  7  of  the  Decision  establishing  the  Eurostars  Joint  Programme  states  that  in 
implementing the Eurostars Joint Programme, the participating Member States and the other 
participating  countries  shall  take  the  legislative  regulatory  and  administrative  or  other 
measures  necessary  for  protecting  the  Communities'  financial  interests.  In  particular,  the 
participating  Member  States  and  the  other  participating  countries  shall  provide  adequate 
guarantees  as  regards  full  recovery  from  the  dedicated  implementation  structure  of  any 
amounts due to the Community. 

Article  8  of  the  Decision  establishing  the  Eurostars  Joint  Programme  states  that  the 
Commission and the Court of Auditors may, through their officials or agents, carry out all the 
checks  and  inspections  needed  to  ensure  proper  management  of  the  Community  funds  and 
protect the financial interests of the Community against any fraud or irregularity. To this end, 
the  participating  Member  States  and  the  other  participating  countries  and/or  the  dedicated 
implementation  structure  shall,  in  due  course,  make  all  relevant  documents  available  to  the 
Commission and the Court of Auditors. 

Further  anti-fraud  measures  will  be  implemented  as  part  of  the  detailed  agreement  between 
the Commission and the dedicated implementation structure. 

EN 

35 

   EN 

 
8. 

DETAILS OF RESOURCES 

8.1. 

Objectives of the proposal in terms of their financial cost 

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

Type of 
output 

Av. 
cost 

Year 2007 

Year 2008 

Year 2009 

Year 2010 

Year 2011 

Year 2012 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.1 
44Establishment  and  operation  of 
the 
Eurostars Joint Programme 

Action 1 

Sub-total Objective 1 

TOTAL COST 

- Output (*),(**)  R&D 

0 

Projects 

0 

0 

94 

94 

94 

15,964 

94 

15,964 

94 

15,964 

94 

15,964 

189 

31,926 

565 

95,782 

15,964 

94 

15,964 

94 

15,964 

94 

15,964 

189 

31,926 

565 

95,782 

15,964 

94 

15,964 

94 

15,964 

94 

15,964 

189 

31,926 

565 

95,782 

(*) A share of the Community contribution may be used to cover the administrative costs of the dedicated implementation structure, within a ceiling of 
4,5% of the Community contribution. 

(**) An average cost of EUR 1,4 million is assumed for Eurostars projects; with an average funding rate of 50%. With a public funding of EUR 0,7 per 
project, and an overall programme budget of EUR 300 + 95,782 million, 565 projects can be funded. 

44 

As described under Section 5.3 

EN 

36 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2. 

Administrative Expenditure 

8.2.1.  Number and type of human resources45 

Types of post 

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

Year 2007  Year 2008  Year 2009  Year 2010  Year 2011  Year 2012 

Officials or 
temporary 
staff46 (XX 01 
01) 

A*/AD 

B*, 
C*/AST 

Staff  financed47  by  art. 
XX 01 02 

Other  staff48  financed by 
art. XX 01 04/05 

TOTAL 

8.2.2.  Description of tasks deriving from the action 

8.2.3. 

Sources of human resources (statutory) 

(cid:133) 

(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 

45 

46 
47 
48 

There are no Commission officials that will work for the Eurostars Joint Programme in the dedicated 
implementation structure. 
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 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
8.2.4.  Other Administrative expenditure included in reference amount  

EUR million (to 3 decimal places) 

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012  

and 
later 

TOTAL 

0 

0,703 

0,703 

0,703 

0,703 

1,406 

4,218 

Technical 

1 
and 
assistance (including related staff costs) 

administrative 

Executive agencies49 

Other 

technical 

and 

administrative 

assistance 

- intra muros  

- extra muros 

Total  Technical  and  administrative 
assistance 

0 

0,703 

0,703 

0,703 

0,703 

1,406 

4,218 

An  average  of  EUR  703.000  is  estimated  for  the  running  costs  of  the  dedicated 
implementation  structure  on  an  annual  basis.  This  shall  cover  the  programme 
management, communication, IT, travel and the evaluationof proposals. For the six 
years duration of the programme these costs shall remain within the ceiling of 4,5 % 
of the Community contribution. 

The tasks to be executed by the dedicated implementation structure are: 

–  establishment of the yearly call budget, the central organisation of common calls 

for proposals and the reception of the project proposals (single entry point); 

–  central  organisation  of  the  eligibility  and  evaluation  of  project  proposals, 
according to common eligibility and evaluation criteria, central organisation of the 
selection of project proposals for funding, and project monitoring and follow-up; 

–  receipt, allocation and monitoring of the Community contribution; 

–  collecting the accounts on the distribution of funding by the funding bodies in the 
participating  Member  States  and  the  other  participating  countries  to  the 
participants in Eurostars projects; 

–  promotion of the Eurostars Joint Programme; 

49 

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

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
–  reporting to the EUREKA HLG, to the Eurostars HLG, to the EUREKA Network 
and to the European Commission on the Eurostars Joint Programme, including on 
the progress towards further integration. 

Calculation– Estimated costs of the dedicated implementation structure 

Estimation of the costs is based on estimates provided by EUREKA at the time of preparation 
of this proposal. 

- Eurostars management: manager (120.000) + office support (25.000) 

-  Communication:  communication  officer  (40.000)  +  events  (20.000)  +  material,  press  and 
print (30.000) + website (5000) 

- IT: IT officer (60.000) + maintenance and licences (60.000) 

- Travel (20.000) 

- Proposal evaluation with independent experts: Expert fees (262.500) + travel (35.000) 

- Support in evaluations: project officer (part time, 25.000) 

These running costs of the Eurostars Joint Programme will be covered within a limit of up to 
4,5  %  of  the  Community  contribution.  Additional  resources  provided  by  the  EUREKA 
Secretariat and paid directly by the EUREKA network, including manpower when necessary, 
are not included in this estimation. Moreover, the administrative handling of the project files 
by  the  participating  national  programmes  is  not  included  and  will  be  paid  directly  by  the 
participating Member States. 

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

amount 

EUR million (to 3 decimal places) 

Type of human resources 

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012 
and 
later 

Officials and temporary staff  

Budget line 08.01 01 

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

(specify budget line) 

0,117 

0,176 

0,176 

0,176 

0,176 

0.352 

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

0,117 

0,176 

0,176 

0,176 

0,176 

0.352 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
Calculation– Officials and Temporary agents 

An average cost of 117,000 euros per post FTE. In year 2007, 1 FTE is taken into account for 
the contract negotiation phase. From 2008 till 2013, 1,5 FTE is taken into account. 

Calculation– Staff financed under art. XX 01 02 

[…] 

1,5 FTE/year are anticipated for the follow-up of this initiative by the Commission services 
from 2008 onward. 1 FTE is required for the contract negotiation phase which is expected to 
start in the second half of 2007. The main tasks will be: 

–  Participation  in  meetings  of  the  Eureka  High  Level  Group  (HLG)  and  the 
meetings  of  the  Eurostars  High  Level  Group  as  observer,  4  times  two-day 
meetings/year (Director/HoU level) 

–  Participation  in  meetings  of  the  Eurostars  Advisory  Group,  4-5  times  per  year 

(Project Officer level) 

–  Participation in workshops and dissemination events, 2-3 times per year (Project 

Officer level) 

–  Negotiation  and  Preparation  of  agreement  with  the  dedicated  implementation 

structure (Project Officer level + Assistant level) 

–  Monitoring of implementation based on the yearly reports, and coordination of the 

mid-term and final evaluations (Project Officer level)  

–  Financial  and  legal  auditing  of  the  implementation  of  the  Joint  Programme 

(Financial Officer level) 

EN 

40 

   EN 

 
 
 
 
 
 
8.2.6. Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places)

Year 
2007 

Year 
2008 

Year 
2009 

Year 
2010 

Year 
2011 

Year 
2012 

and 
later 

TOTAL 

08 01 02 11 01 – Missions 

0,007 

0,014 

0,014 

0,014 

0,014 

0,028 

0,091 

08 01 02 11 02 – Meetings & Conferences 

08 01 02 11 03 – Committees50  

08 01 02 11 04 – Studies & consultations 

08 01 02 11 05 - Information systems 

2 

Total 

Other  Management 

Expenditure (08 01 02 11) 

3  Other 

expenditure 
administrative nature  

of 

an 

Independent  experts  for  mid-term  and  final 

review. 

expenditure, 
than  human  resources  and 
in 

Total  Administrative 
other 
associated  costs  (NOT 
reference amount) 

included 

0,007 

0,014 

0,014 

0,014 

0,014 

0,028 

0,091 

0,007 

0,007 

0,014 

0,007 

0,014 

0,014 

0,021 

0,014 

0,035 

0,105 

Calculation - Other administrative expenditure not included in reference amount 

Missions: Costs are based on EUR 700 average travel cost per mission plus EUR 149,63 of 
daily  allowance;  average  mission  duration  is  1,5  days;  number  and  nature  of  missions:  4 
missions  per  year  for  2  officials  to  attend  meetings  of  the  EUREKA/Eurostars  HLG,  3 
missions per year for one official to attend workshops and other events, 4 missions per year 
for one official to attend to the Eurostars Advisory Group meeting, where they are not held in 
Brussels. For 2007, half of the annual costs are assumed. 

External assistance: Cost estimates for external support for interim and final evaluation (with 
3  external  experts  at  450  EUR  per  day  for  three  days  +  travel  EUR  700  +  EUR  448,89  for 
daily allowances per expert). 

50 

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

EN 

41 

   EN