Decision No 743/2008/EC of the European Parliament and of the Council of 9 July 2008 on the Community’s participation in a research and development programme undertaken by several Member States aimed at supporting research and development performing small and medium-sized enterprises (Text with EEA relevance)
Date: 2008-07-09
Institutions: Council of the European Union, European Parliament
Subjects: EU financing, EU programme, aid to undertakings, research and development, small and medium-sized enterprises

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Official Journal of the European Union

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DECISION No 743/2008/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 9 July 2008
on the Community’s participation in a research and development programme undertaken by several
Member States aimed at supporting research and development performing small and medium-sized
enterprises

(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 Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Acting in accordance with the procedure
Article 251 of the Treaty (2),

laid down in

Whereas:

(1)

(2)

research,

Programme of

Decision No 1982/2006/EC of the European Parliament
and of the Council of 18 December 2006 concerning the
European
Seventh Framework
the
technological development
Community for
and demonstration activities (2007 to 2013) (3)
(here­
inafter
Framework
as
Programme) provides for Community participation in
research and development programmes undertaken by
including participation in the
several Member States,
structures
those
for
programmes, within the meaning of Article 169 of the
Treaty.

execution

Seventh

referred

created

the

the

to

of

the identification of areas

The Seventh Framework Programme has defined a series
such
of criteria for
the relevance to Community
Article 169 initiatives:
the objective to be
objectives,
pursued and its
the
Seventh Framework Programme, the presence of a pre-

relevance to the objectives of

the clear definition of

for

(1) Opinion of 29 May 2008 (not yet published in the Official Journal).
(2) Opinion of the European Parliament of 10 April 2008 (not yet
published in the Official Journal) and Council Decision of 23 June
2008.

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

(3)

(4)

(5)

existing basis (existing or envisaged national research
programmes), European added value, a critical mass
with regard to the size and number of programmes
involved and the similarity of activities they cover, and
the efficiency of Article 169 of the Treaty as the most
appropriate means for achieving the objectives.

research,

Council Decision 2006/974/EC of 19 December 2006
on the Specific Programme ‘Capacities’
implementing
the Seventh Framework Programme of
the European
Community for
technological development
and demonstration activities (2007 to 2013) (4)
(here­
inafter referred to as the 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 furthering the development of

In its conclusions of 24 September 2004, the Council
recognised the important role of the Seventh Framework
Programme
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.

It

In its conclusions of 25 and 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 effec­
tiveness and complementarity of national and European
support programmes
encouraged the
for SMEs.
Commission to explore the possible development of a
bottom-up scheme for research-performing SMEs. The
Council
coordinating
national programmes for the development of the ERA.
The Council invited Member States and the Commission
to cooperate 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 inter­
governmental structures, notably with Eureka, recalling
the Eureka Ministerial Conference of 18 June 2004.

importance

recalled

the

of

(4) OJ L 400, 30.12.2006, p. 299, as corrected by OJ L 54, 22.2.2007,

p. 101.

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(6)

(7)

(8)

to adopt
incentives for promoting industrial

In its resolution of 10 March 2005 on science and tech­
nology — Guidelines for future European Union policy
research (1) — the European Parliament
to support
fiscal and
encouraged the Member States
innovation,
other
including links with Eureka, especially with reference to
SMEs, and stressed that the ERA would be possible only
if an increasing proportion of funding for research were
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 were additional to research policy in
and
European
Parliament stated that more efficient and coordinated
use should be made of other funding mechanisms and
support mechanisms to support research and develop­
ment (hereinafter referred to as R & D) and innovation,
mentioning, among others, Eureka. It asked for enhanced
cooperation between national research programmes and
called on the Commission to take initiatives pursuant to
Article 169 of the Treaty.

between the Member

States. The

In its Communication of 4 June 2003 entitled ‘Investing
in research: an action plan for Europe’, the Commission
emphasised the importance of SME participation in direct
measures to support research and innovation, which is
crucial
large
to boosting the innovative capacity of
segments of the economy.

At present, a number of R & D programmes and
activities undertaken by Member States individually at
national
level to support R & D activities carried out
by SMEs are not sufficiently coordinated at European
level
approach at
European level to an effective research and technological
development programme.

and do not

coherent

allow a

(9) Wishing to have a coherent approach at European level
in the field of R & D performing SMEs and to act effec­
tively, several Member States have taken the initiative
within the framework of Eureka to set up a joint
research
entitled
‘Eurostars’ (hereinafter referred to as the Eurostars Joint
Programme) for the benefit of R & D performing SMEs,
in order
in terms of
management and financial resources and the combi­
nation of additional expertise and resources available in
various countries across Europe.

to obtain a

critical mass

development

programme

and

(11)

(12)

(13)

Italy,

Latvia,

France,

Cyprus,

in any technological or industrial field, for
innovation,
the benefit of these SMEs. Belgium, Bulgaria, the Czech
Ireland, Greece,
Republic, Denmark, Germany, Estonia,
Spain,
Lithuania,
Luxembourg, Hungary, the Netherlands, Austria, Poland,
Portugal, Romania, Slovenia, Slovakia, Finland, Sweden
and the United Kingdom (hereinafter referred to as the
participating Member States), and Iceland, Israel, Norway,
Switzerland and Turkey (hereinafter referred to as 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
six years. The
Community financial contribution should represent a
maximum of 25 % of the total public contribution to
the Eurostars Joint Programme, which is estimated at
EUR 400 million.

the proposed period of

in

the

the

the

scientific

Eurostars

participation

duration of

In order to increase the impact of the Eurostars Joint
the participating Member States and the
Programme,
agreed to such
other participating countries have
Community
Joint
Eurostars
the
Programme. The Community should participate therein
by making a financial contribution of up to EUR 100
Joint
million for
Programme. Given that the Eurostars Joint Programme
Seventh
meets
Framework Programme
the
Eurostars Joint Programme falls within the ‘Research for
the benefit of SMEs’ part of
the Specific Programme
‘Capacities’,
contribution
the Community
financial
should be
appropriation
taken from the budget
allocated to that part. Further financing options may be
available, inter alia, from the European Investment Bank
through the Risk-Sharing Finance
(EIB),
EIB and the
Facility developed jointly with the
Commission pursuant
to Decision
2006/974/EC.

objectives
and that

the
field of

in particular

to Annex

of
the

III

The Community financial support should be provided
subject to the definition of a financing plan based on
formal commitments from the competent national auth­
orities to implement jointly the R & D programmes and
activities undertaken at national level and to contribute
to the financing of the joint execution of the Eurostars
Joint Programme.

joint

implementation of

research
The
programmes requires the establishment or existence of
a dedicated implementation structure, as provided for
in the Specific Programme ‘Capacities’.

the national

(10)

The Eurostars Joint Programme aims to support R & D
performing SMEs by providing the necessary legal and
organisational framework for large-scale European coop­
eration between Member States in applied research and

(1) OJ C 320 E, 15.12.2005, p. 259.

(14)

The participating Member States have agreed on such a
dedicated implementation structure to implement
the
Eurostars Joint Programme.

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(15)

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

financial

the

(16)

The Community contribution should be subject to the
commitment of resources by the participating Member
States and the other participating countries and the
effective payment of their financial contributions.

(17)

(18)

(19)

(20)

The payment of the Community contribution should be
subject to the conclusion of a general agreement between
the Commission on behalf of the European Community
and the dedicated implementation structure, containing
the detailed arrangements for the use of the Community
contribution. This general agreement should include the
necessary provisions to ensure that the financial interests
of the Community are protected.

The interest generated by the Community financial
contribution should 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 general budget of
the European Communities (1) (hereinafter referred to as
the Financial Regulation). The maximum Community
contribution
be
increased accordingly by the Commission.

in this Decision may

indicated

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

In order to efficiently implement
the Eurostars Joint
Programme, financial support should be granted to par­
ticipants in the Eurostars Joint Programme projects (here­
inafter referred to as Eurostars projects) selected centrally
following calls for proposals. Such financial support and
its payment
and efficient.
Payments should be effected within the period estab­
lished in an agreement concluded between the national
and the dedicated implementation
funding bodies
structure.
structure
implementation
dedicated
The
should encourage the participating Member States and

should be

transparent

other participating countries to make the payments to
participants in the selected Eurostars projects convenient,
including, where appropriate, by way of
lump sum
financing.

evaluation of proposals

The
should be performed
centrally by independent experts. A ranking should be
approved centrally which should be binding as regards
the allocation of funding from the Community contri­
bution and from the national budgets earmarked for
Eurostars projects.

Regulation

indirect
the

centralised management,
Financial

The Community contribution should be managed in the
in
framework of
and
accordance with
Commission Regulation (EC, Euratom) No 2342/2002
of 23 December 2002 laying down detailed rules for
the
(EC,
Euratom) No 1605/2002 on the Financial Regulation
the European
applicable
Communities (2) (hereinafter referred to as the Implemen­
ting Rules).

to the general budget of

of Council Regulation

implementation

each selected Eurostars project,

the R & D
For
performing SMEs
the
larger part of the overall costs relating to the R & D
activities of all participants.

should collectively contribute

(21)

(22)

(23)

(24) Any Member State should be able to join the Eurostars

Joint Programme.

(25)

(26)

the participation in the Eurostars

In line with the objectives of the Seventh Framework
Programme,
Joint
Programme of countries associated with the Seventh
Framework Programme or of other countries should be
possible, provided that such participation is contemplated
by the relevant international agreement and provided that
both the Commission and the participating Member
States and the other participating countries agree to it.

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

joining the Programme in the course of
in accordance with the

rules

(1) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regu­

lation (EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).

(2) OJ L 357, 31.12.2002, p. 1. Regulation as last amended by Regu­
lation (EC, Euratom) No 478/2007 (OJ L 111, 28.4.2007, p. 13).

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European Communities’

(27) Appropriate measures should be taken to prevent irregu­
larities 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
interests (1),
the
Council Regulation (Euratom, EC) No 2185/96 of
11 November 1996 concerning on-the-spot checks and
inspections carried out by the Commission in order to
interests
protect
against fraud and other irregularities (2) and Regulation
(EC) No 1073/1999 of the European Parliament and of
the Council of 25 May 1999 concerning investigations
conducted by the European Anti-Fraud Office (OLAF) (3).

the European Communities’

financial

financial

(28)

(29)

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

The Commission should conduct an interim evaluation,
assessing in particular the ability of R & D performing
SMEs to access the Eurostars Joint Programme and the
quality and efficiency of its implementation and progress
towards the objectives set, as well as a final evaluation.

(30) Monitoring of

the execution of

Joint
Programme should be efficient and should not impose
unnecessary burdens on participants in the programme,
especially the SMEs.

the Eurostars

(31)

dedicated

implementation

should
structure
The
in the selected Eurostars
encourage the participants
projects to communicate and disseminate their results
and to make this information publicly available,

financial

The Community shall pay a

contribution
2.
amounting to the equivalent of a maximum of one third of
the effective contributions of the participating Member States
and the other participating countries, within a ceiling of EUR
the Seventh Framework
100 million for
Programme,
in
Annex I.

in accordance with the principles

the duration of

set out

3.
The Community financial contribution shall be paid from
the appropriation in the general budget of the European Union
allocated to the ‘Research for the benefit of SMEs’ part of the
Specific Programme ‘Capacities’.

Article 2

The Community financial contribution shall be conditional
upon:

(a) demonstration by the participating Member States and the
other participating countries
Joint
Programme as described in Annex I has been efficiently
set up;

the Eurostars

that

(b) the formal establishment or designation by the participating
Member States and the other participating countries or
organisations designated by the participating Member
States and the other participating countries, of a dedicated
implementation structure with legal personality, which shall
be responsible for the implementation of the Eurostars Joint
Programme and for receiving, allocating and monitoring the
Community financial contribution in the framework of
indirect
in accordance with
Articles 54(2)(c) and 56 of the Financial Regulation and
Articles 35, 38(2) and 41 of the Implementing Rules;

centralised management

HAVE ADOPTED THIS DECISION:

(c)

the establishment of an appropriate and efficient governance
for the Eurostars Joint Programme in conformity
model
with Annex II;

Article 1

1.
In implementing the Seventh Framework Programme the
Community shall make a financial contribution to the Eurostars
Joint Programme undertaken jointly by Belgium, Bulgaria, the
Czech Republic, Denmark, Germany, Estonia, Ireland, Greece,
Spain, France,
Italy, Cyprus, Latvia, Lithuania, Luxembourg,
Hungary, the Netherlands, Austria, Poland, Portugal, Romania,
Slovenia, Slovakia, Finland, Sweden and the United Kingdom
(the participating Member States), and Iceland, Israel, Norway,
Switzerland and Turkey (the other participating countries).

(1) OJ L 312, 23.12.1995, p. 1. Regulation as amended by Commission
Regulation (EC) No 1233/2007 (OJ L 279, 23.10.2007, p. 10).

(2) OJ L 292, 15.11.1996, p. 2.
(3) OJ L 136, 31.5.1999, p. 1.

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

(e) 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 their financial contribution, in particular the funding of
participants in the selected Eurostars projects following the
calls
the Eurostars Joint
Programme;

for proposals launched under

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(f) 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 Innovation (1);

(g) ensuring a high level of scientific excellence and observance
of ethical principles in accordance with the general prin­
the Seventh Framework Programme, of gender
ciples of
mainstreaming and gender equality and of
sustainable
development, and

not contribute, contribute partially or late to the financing of
the Eurostars Joint Programme, the Community may reduce,
withhold or terminate 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.

(h) the formulation of provisions governing the intellectual
property rights stemming from the activities carried out
under the Eurostars Joint Programme and the implemen­
tation and coordination of the R & D 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 wide use and dissemination
of the knowledge created.

Article 3

support

financial

to participants

In the implementation of the Eurostars Joint Programme, the
granting of
in Eurostars
projects
selected centrally in accordance with Annex II
following calls for proposals for the award of grants, shall be
subject to the principles of equal treatment and transparency.
The financial support shall be granted on the basis of scientific
excellence and, taking into account the specific nature of the
SME target group, the socioeconomic impact at European level
in
and relevance to the overall objectives of the programme,
accordance with the principles and procedures set out
in
Annex I.

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 the Financial Regulation, the
interest generated by the Community financial contribution
allocated to the Eurostars Joint Programme shall be considered
as assigned revenue. The maximum Community contribution
this Decision may be increased
indicated in Article 1 of
accordingly by the Commission.

Article 7

In implementing the Eurostars Joint Programme, the partici­
pating Member States and the other participating countries
shall
take the legislative, regulatory, administrative or other
measures necessary for protecting the Communities’ financial
interests.
the participating Member States and
In particular,
take the necessary
the other participating countries
measures to ensure full recovery of any amounts due to the
Community in accordance with Article 54(2)(c) of the Financial
Regulation and Article 38(2) of the Implementing Rules.

shall

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
interests of the Community
against any fraud or irregularity. To this end, the participating
Member States and the other participating countries and the
dedicated implementation structure shall, in due course, make
all relevant documents available to the Commission and the
Court of Auditors.

the financial

Article 9

The Commission shall communicate all relevant information to
the Council and the Court of
the European Parliament,
Auditors. The participating Member States and the other par­
ticipating 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.

Article 10

Any Member State may join the Eurostars Joint Programme in
accordance with the criteria set out in Article 2(e) to (h).

Article 6

If
the Eurostars Joint Programme is not implemented or is
implemented inadequately, partially or late, or if the partici­
pating Member States and the other participating countries do

(1) OJ C 323, 30.12.2006, p. 1.

Article 11

Any third country may join the Eurostars Joint Programme in
accordance with the criteria set out
to (h),
provided that
such participation is contemplated by the
relevant international agreement and provided that both the
Commission and the participating Member States and the
other participating countries agree to it.

in Article 2(e)

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Article 12

Conditions relating to the Community financial contribution
concerning the participation in the Eurostars Joint Programme
of
any country associated with 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.
The annual report on the Seventh Framework Programme
presented to the European Parliament and the Council pursuant
include a summary of the
to Article 173 of the Treaty shall
activities of the Eurostars Joint Programme based on the annual
report to be provided by the dedicated implementation structure
to the Commission.

2.
An interim evaluation of the Eurostars Joint Programme
shall be carried out by the Commission two years after the start
the Eurostars Joint Programme and shall cover progress
of
in Annex I. The evaluation
towards the objectives set out
shall also include recommendations on the most appropriate
ways to further enhance scientific, management and financial
integration and assess the ability, of R & D performing SMEs in
particular, to access the Eurostars Joint Programme and the
quality and efficiency of its implementation. The Commission

shall communicate the conclusions thereof, accompanied by its
observations
the
amendment of this Decision, to the European Parliament and
the Council.

appropriate, proposals

and, where

for

the Eurostars

the end of
shall

3.
At
Commission
conduct
Programme. The results of
presented to the European Parliament and the Council.

the
Joint Programme,
a
the
of
evaluation
the final evaluation shall be

final

Article 14

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

Article 15

This Decision is addressed to the Member States.

Done at Strasbourg, 9 July 2008.

For the European Parliament
The President

H.-G. PÖTTERING

For the Council
The President

J.-P. JOUYET

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ANNEX I

DESCRIPTION OF THE OBJECTIVES AND ACTIVITIES OF THE EUROSTARS JOINT PROGRAMME

I. Objectives

The objective of this initiative put forward by the Eureka Member Countries is to establish the Eurostars Joint
Programme targeting 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 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, cuttingedge R & D, or highpotential
start-ups. R & D constitutes a key element in their corporate strategy and business plans. These companies should be
SMEs within the meaning of Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition
of micro, small and medium-sized enterprises (1) and should dedicate a notable part of their activity to R & D.
Detailed thresholds of this activity shall be clarified in accordance with Annex II.

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

1. creating an easily accessible and sustainable European R & D support mechanism for them;

2. 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;

3. promoting their technological and business development and internationalisation.

The Eurostars Joint Programme shall complement existing national and European Union 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. 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 cooperating 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 ERA. 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 the dedicated implementation structure. Its role is to manage the Eurostars
Joint Programme and to monitor its execution, as further detailed in Annex II. Financial integration implies that the
participating Member States and the other participating countries 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 budgets earmarked for the Eurostars Joint Programme.

In the longer term, this initiative should strive to develop tighter forms of scientific, management and financial
integration. The participating Member States and the other participating countries should further strengthen such
integration and remove existing national legal and administrative barriers to international cooperation as part of the
initiative.

II. Activities

The main activity in the Eurostars Joint Programme consists of R & D activities driven by one or more R & D
performing SMEs established in the participating Member States or the other participating countries. Research
organisations, universities, other SMEs and large companies may also participate in the Programme. The R & D
activities can be carried out in the entire field of science and technology and are:

1.

implemented via multi-partner transnational projects involving at least two independent participants from different
participating Member States and other participating countries addressing research, technological development,
demonstration, training and dissemination activities;

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

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2. executed for their core part by the R & D performing SME(s). For each selected Eurostars project, the R & D
performing SMEs should collectively contribute the larger part of the overall costs relating to the R & D activities
of all participants. Minor subcontracting may be allowed, if necessary for the project;

3. targeted at market-oriented R & D, and should be of short to medium term duration and address challenging
R & D work; SMEs should demonstrate the capability to exploit the project results within a realistic time frame;

4.

led and coordinated by a participating R & D performing SME, the ‘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 Community.

An annual report shall be provided by the dedicated implementation structure, which shall give a detailed overview of
the implementation of the 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 Programme’s impact shall be 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 the dedicated implementation structure. Proposals are submitted
centrally to the dedicated implementation structure by 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
centrally 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, who review both
the proposal. These experts may act remotely. The ranking of proposals is
technical and market aspects of
performed in the second step, by an international evaluation panel, composed of
independent experts. The
ranking list, approved centrally, shall be binding for the allocation of funding from the Community contribution
and from the national budgets earmarked for Eurostars projects. The dedicated implementation structure shall be
responsible for monitoring projects and common operational procedures to manage the full project cycle shall be in
place. The dedicated implementation structure shall take appropriate measures to encourage recognition of the
Community contribution to the Eurostars Joint Programme, both to the Programme itself and to individual
projects. It should promote appropriate visibility for such contribution through the use of the Community logo in
all published material, including printed and electronic publications, relating to the Eurostars Joint Programme. 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 Member States, the other participating countries and
the Community. The participating Member States and the other participating countries 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 the Eurostars Joint Programme. Any participating Member State or other
participating country is free to increase its national funding earmarked for 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 im­
plementation structure, is calculated as a maximum of one third of the effective financial contributions from the
participating Member States and the other participating countries, with a ceiling of EUR 100 million.

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A maximum of 4,5 % of the Community financial contribution shall be used by the dedicated implementation
structure to contribute to the overall operational costs of the Eurostars Joint Programme.

The Community financial contribution to selected Eurostars projects shall be transferred by the dedicated implemen­
tation structure to the national funding bodies designated by the participating Member States and the other par­
ticipating countries, on the basis of an agreement concluded between the national funding bodies and the dedicated
implementation structure. The national funding bodies shall finance the national participants whose proposals are
selected centrally and shall also channel the Community financial contribution from the dedicated implementation
structure.

Funding of Eurostars projects

The allocation of funding from the Community contribution and national budgets earmarked for 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 the case of loans, 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. Intellectual property rights arrangements

The dedicated implementation structure shall adopt the intellectual property policy of the Eurostars Joint Programme,
in accordance with the requirements of Article 4 of this Decision. The objective of the 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
Regulation (EC) No 1906/2006 of the European Parliament and of the Council of 18 December 2006 laying down
the rules for the participation of undertakings, research centres and universities in actions under the Seventh
Framework Programme and for the dissemination of research results (2007-2013) (1) should serve as a model.

(1) OJ L 391, 30.12.2006, p. 1.

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ANNEX II

GOVERNANCE OF THE EUROSTARS JOINT PROGRAMME

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

1. The ‘Eureka High Level Group’ (Eureka HLG) is composed of the persons appointed by the States which are members
of Eureka as High Level Representatives, and a representative from the Commission. It is responsible for the admission
of non-participating Member States or other non-participating countries into the Eurostars Joint Programme,
in
accordance with the requirements of Articles 10 and 11 of this Decision.

2. The ‘Eurostars High Level Group’ (Eurostars HLG) is composed of the Eureka High Level Representatives of the
participating Member States and other participating countries. The Commission as well as Member States not par­
ticipating in the Eurostars Joint Programme retain the option to send representatives to its meetings as observers. 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.

3. The ‘Eurostars Advisory Group’ is composed of Eureka National Project Coordinators from the participating Member
States and other participating countries and is chaired by the Head of the Eureka Secretariat (ESE). The Eurostars
Advisory Group shall advise the ESE on 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, synchro­
nisation 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.

4. The ESE shall act as the dedicated implementation structure of the Eurostars Joint Programme. The Head of the ESE
shall act as legal representative of the Eurostars Programme. The ESE is in charge of the execution of the Eurostars
Joint Programme, and is responsible in particular for:

— the 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,

— the receipt, allocation and monitoring of the Community contribution,

— collecting the accounts for 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,

— reporting to the Eureka HLG, the Eurostars HLG and the Commission on the Eurostars Joint Programme, including

on progress towards further integration,

— informing the Eureka network about the Eurostars Joint Programme activities.