Corrigendum: Proposal for a Council Decision on the conclusion on behalf of the European Community of the Agreement between the European Community and the Government of the Faroes on scientific and technological cooperation, associating the Faroe Islands to the European Community's Seventh Framework Programme for Research, Technological Development and Demonstration Activities (2007-2013).
Date: 2009-10-22
Institutions: European Commission
Subjects: Faroes, cooperation agreement (EU), scientific cooperation, signature of an agreement, technical cooperation, technology

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.10.2009 
COM(2009)566 final/ 2 

2009/0160 (CNS) 

Corrigendum: 
annule et remplace le document COM(2009) 566 final of 22 octobre 2009 
concerne toutes les versions linguistiques 

Proposal for a 

COUNCIL DECISION 

on the conclusion on behalf of the European Community of the Agreement between the 
European Community and the Government of the Faroes on scientific and technological 
cooperation, associating the Faroe Islands to the European Community's Seventh 
Framework Programme for Research, Technological Development and Demonstration 
Activities (2007-2013).  

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EXPLANATORY MEMORANDUM 

Subject: 
Proposal for a Council decision on the conclusion of an agreement between 
the  European  Community  and  the  Government  of  the  Faroes  on  scientific  and 
technological  cooperation, associating the Faroe Islands to the European Community's 
Seventh  Framework  Programme  for  Research,  Technological  Development  and 
Demonstration Activities (2007-2013). 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

On 15 June 2009 the Council authorised the European Commission to negotiate an 
Agreement between the European Community and the Government of the Faroes on 
scientific and technological cooperation, associating the Faroes to the Seventh (EC) 
Framework Programme for Research and Development (2007-2013). 

The negotiations between the two parties were completed and resulted in the attached 
draft agreement, which was initialled on 13 July 2009 and which is in line with the 
negotiation directives issued by the Council. 

The agreement is based on the principles of mutual benefit, reciprocal opportunities 
for  access  to  each  other's  programmes  and  activities  relevant  to  the  purpose  of  the 
Agreement,  non-discrimination,  effective  protection  of  intellectual  property  and 
equitable sharing of intellectual property rights. 

The  agreement  will  open  to  legal  entities  from  the  Faroe  Islands  the  same 
participation and funding rights and obligations as legal entities established in the EU 
Member  States.  Furthermore,  the  agreement  text  foresees  the  participation  of 
representatives  of  the  Faroe  Islands  as  observers  with  no  voting  rights  in  the  FP7 
Programme Committees and in the Board of Governors of the Joint Research Centre. 

This S&T Association agreement will help to structure and enhance the scientific and 
technological cooperation between the EC and the Faroes, through regular meetings 
of its Joint Committee, in which specific cooperation activities can be planned.  

The  agreement  shall  enter  into  force  on  the  date  on  which  the  parties  exchange 
diplomatic  notes  informing  each  other  that  their  respective  internal  procedures 
necessary for its entry into force have been completed and shall remain in force for 
the remaining duration of the Seventh EC Framework Programme. 

It is proposed that this Agreement should apply provisionally as of 1 January 2010 
subject to conclusion at a later date. 

In light of the above considerations, the Commission requests the Council: 

– 

– 

to approve on behalf of the European Community the attached Decision; 

to  notify  the  Faroese  authorities  that  the  European  Community  has  completed  the 
procedures necessary for the entry into force of the agreement. 

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2009/0160 (CNS) 

Proposal for a 

COUNCIL DECISION 

on the conclusion on behalf of the European Community of the Agreement between the 
European Community and the Government of the Faroes on scientific and technological 
cooperation, associating the Faroe Islands to the European Community's Seventh 
Framework Programme for Research, Technological Development and Demonstration 
Activities (2007-2013).  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
170, in conjunction with the first sentence of the first subparagraph of Article 300(2) and the 
first subparagraph of Article 300(3) thereof,  

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas: 

(1) 

(2) 

The Commission has negotiated, on behalf of the Community, an Agreement with the 
Government  of  the  Faroes  on  scientific  and  technological  cooperation  (hereinafter 
referred to as "the Agreement"), 

The Agreement was signed by the representatives of the parties on ………………….. 
in ………………. subject to conclusion at a later date, 

(3) 

The Agreement should be concluded on behalf of the European Community, 

HAS DECIDED AS FOLLOWS:  

Article 1 

The  Agreement  between  the  European  Community  and  the  Government  of  the  Faroes  on 
scientific  and  technological  cooperation  is  hereby  approved  on  behalf  of  the  European 
Community. 

1 
2 

OJ C , , p. . 
OJ C , , p. . 

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The  Commission  shall  adopt  the  position  to  be  taken  by  the  Community  in  the  Joint 
Committee established by Article 4(1) of the Agreement. 

Article 2 

The  President  of  the  Council,  on  behalf  of  the  European  Community  shall  make  the 
notification provided for in Article 5(2) of the Agreement. 

Article 3 

Article 4 

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

Done at Brussels,  

For the Council 
The President 

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ANNEX  

AGREEMENT 

BETWEEN THE EUROPEAN COMMUNITY AND 

THE GOVERNMENT OF THE FAROES 

ON SCIENTIFIC AND TECHNOLOGICAL COOPERATION 

THE EUROPEAN COMMUNITY, 

hereinafter "the Community",  

of the one part,  

and 

THE GOVERNMENT OF THE FAROES, 

hereinafter " the Faroes",  

of the other part,  

hereinafter referred to as the "Parties", 

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

WHEREAS  Faroese  researchers  have  already  successfully  been  participating  in  projects 
funded by the Community. 

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

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

WHEREAS, by Decision No 1982/2006 EC 3, the European Parliament and the Council of the 
European  Union  adopted  the  Seventh  Framework  Programme  of  the  European  Community 
for  research,  technological  development  and  demonstration  activities  (2007  to  2013) 
(hereinafter referred to as "the Seventh EC Framework Programme"). 

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OJ L 412, 30.12.2006. 

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CONSIDERING that the Government of the Faroes concludes this agreement on behalf of the 
Kingdom  of  Denmark  pursuant  to  the  Act  on  the  Conclusion  of  Agreements  under 
International Law by the Government of the Faroes4. 

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

HAVE AGREED AS FOLLOWS: 

ARTICLE 1 

Scope 

1. 

2. 

for 

The  Faroes  shall  be  associated,  under  the  terms  and  conditions  established  by,  or 
referred to, in this Agreement and its Annexes, to the European Community Seventh 
EC  Framework  Programme 
technological  development  and 
research, 
demonstration  activities  (2007  to  2013),  as  established  by  Decision  1982/2006/EC, 
Regulation (EC)  No 1906/2006 5  of  the  European  Parliament  and  of  the  Council  of 
18  December  2006  concerning  the  rules  for  the  participation  of  undertakings, 
research centres and universities in, and for the dissemination of research results for, 
the  European  Community  Seventh  EC  Framework 
the 
Programme (2007 to 2013),  and  by  Council  Decisions  2006/971/EC,  2006/972/EC, 
2006/973 EC, 2006/974 EC and 2006/975 EC. 

implementation  of 

All  acts  deriving  from  the  above  acts,  including  the  acts  setting  up  the  structures 
needed  for  the  implementation  of  the  Seventh  EC  Framework  Programme  through 
research  activities  under  Articles  169  and  171  of  the  Treaty  establishing  the 
European Community shall be applicable in the Faroes. 

3. 

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

– 

– 

– 

– 

– 

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

discussions on cooperation prospects and development, 

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

joint meetings, 

visits and exchanges of research workers, engineers and technicians, 

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Government 

Danish 
https://www.retsinformation.dk/Forms/R0710.aspx?id=23119 
OJ L391, 30.12.2006, p.1-18 

Circular 

126 

N° 

of 

26 

September, 

2005 

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– 

– 

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

participation of experts in seminars, symposia and workshops. 

ARTICLE 2 

Terms and conditions with respect to the association of the Faroes 

to the Seventh EC Framework Programme 

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

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

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

Representatives of the Faroes shall participate as observers in the committees of the 
Seventh  EC  Framework  Programme  established  by  Decision  No  1999/468/EC6. 
These committees shall meet without the presence of representatives of the Faroes at 
the time of voting. The Faroes will be informed of the result. Participation as referred 
to  in  this  paragraph  shall  take  the  same  form,  including  procedures  for  receipt  of 

1. 

2. 

3. 

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OJ L 184, 17.7.1999, p. 23-26 

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4. 

5. 

1. 

2. 

information  and  documentation,  as  that  applicable  to  representatives  from  Member 
States of the European Union.  

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

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

ARTICLE 3 

Enhancement of cooperation 

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

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

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ARTICLE 4 

EC-Faroes Research Committee 

1. 

A joint committee called the "EC-Faroes Research Committee" shall be established, 
whose functions shall include: 

2. 

3. 

4. 

1. 

2. 

– 

– 

– 

– 

ensuring, evaluating and reviewing the implementation of this Agreement, 

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

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

making,  subject  to  each  Party’s  domestic  approval  processes,  technical 
amendments to this Agreement as may be required. 

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

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

The  EC-Faroes  Research  Committee  shall  meet  at  least  every  two  years. 
Extraordinary meetings shall be held at the request of one or other of the Parties. 

ARTICLE 5 

Final provisions 

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

This  Agreement is  hereby concluded for the remaining duration of the Seventh EC 
Framework  Programme.  It  shall  enter  into  force  on  the  date  on  which  both  Parties 
have  notified  each  other  of  the  completion  of  their  procedures  for  that  purpose.  It 
shall be provisionally applied as of 1 January, 2010. 

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

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OJ L 210, 31.7.2006, p.25-78. 

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3. 

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

– 

– 

– 

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

however, funds committed by the Community in relation to the participation of 
the Faroese legal entities in indirect actions, including reimbursements referred 
the 
to 
abovementioned reimbursement, 

in  Article  2(5),  shall  be  deducted  by 

the  Community  from 

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

4. 

5. 

6. 

7. 

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

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

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

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

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ANNEX I 

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

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

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

1. 

2. 

3. 

Participation and funding of legal entities established in the Faroes in indirect actions 
of the  Seventh  EC Framework  Programme shall follow the conditions laid down for 
‘associated  countries’  in  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)8. In 
case the Community makes provisions for the implementation of Articles 169 and 171 
of  the  Treaty  establishing  the  European  Community,  the  Faroes  shall  be  allowed  to 
participate  in  the  legal  structures  created  under  these  provisions,  subject  to  the  rules 
setting up such legal structures. 

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

Legal entities established in the Faroes shall be eligible, under the same conditions as 
legal entities established in the Member States, for loans the EIB makes in support of 
research  objectives  set  out  under  the  Seventh  EC  Framework  Programme  (Risk-
Sharing Finance Facility). 

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

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

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OJ L391, 30.12.2006, p.1-18 

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

1. 

2. 

3. 

4. 

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

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

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

Proposals for research in all fields are to be submitted to the Faroese Research Council 
(Granskingarráðið). 

The Faroes shall regularly inform the Community of current Faroese programmes and 
participation opportunities for legal entities established in the Community. 

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PRINCIPLES ON THE ALLOCATION OF INTELLECTUAL PROPERTY RIGHTS 

ANNEX II 

I. Application 

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

II. Intellectual property rights of legal entities of the Parties 

1. 

2. 

3. 

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

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

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

III. Intellectual property rights of the Parties 

1. 

Except if otherwise specifically agreed by the Parties, the following rules shall apply 
to  knowledge  generated  by  the  Parties  in  the  course  of  activities  carried  out  within 
Article 1(3) of this Agreement: 

(a) 

(b) 

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

the Party owning that knowledge shall grant access rights on it to the other Party 
for  carrying  out  activities  referred  to  in  Article  1(3)  of  this  Agreement.  Such 
access rights shall be granted on a royalty-free basis. 

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2. 

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

(a) 

(b) 

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

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

3. 

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

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

(b) 

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

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

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

(e) 

each Party shall endeavour to ensure that undisclosed information received by it 
under sub-paragraphs (a) and (c) is controlled as provided herein. If one of the 
Parties becomes aware that it will be, or may be reasonably expected to become, 
unable to meet the non-dissemination provisions laid down in sub-paragraphs (a) 
and (c), it shall immediately inform the other Party. The Parties shall thereafter 
consult to define an appropriate course of action. 

EN 

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ANNEX III 

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

I. Calculation of the financial contribution of the Faroes 

1. 

2. 

3. 

The  financial  contribution  of  the  Faroes  to  the  Seventh  EC  Framework  Programme 
shall be established on a yearly basis in proportion to, and in addition to, the amount 
available  each  year  in  the  general  budget  of  the  European  Union  for  commitment 
appropriations  needed  for  the  implementation,  management  and  operation  of  the 
Seventh  EC  Framework  Programme,  in  accordance  with  Council  Regulation  (EC, 
Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the 
general  budget  of  the  European  Communities  and  Commission  Regulation  No 
2342/2002 of 23 December 2002 laying down detailed rules for the implementation of 
Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002.. 

The proportionality factor governing the contribution of the Faroes shall be obtained 
by establishing the ratio between the gross domestic product of the Faroes, at market 
prices, and the sum of gross domestic products, at market prices, of the Member States 
of the European Union. These ratios shall be calculated, for the Member States, on the 
basis of the latest statistical data from Eurostat, available at the time of publication of 
the  preliminary  draft  budget  of  the  European  Union  for  the  same  year  and  for  the 
Faroes  on  the  basis  of  the  latest  statistical  data  pertaining to  the  same  year  from  the 
National Statistical Authority of the Faroes (Hagstova Føroya) available at the time of 
publication of the preliminary draft budget of the European Union. 

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

– 

– 

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

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

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

II. Payment of the financial contribution of the Faroes 

1. 

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

of  six-twelfths  of  the  Faroese  contribution  not  later  than  30  days  after  receipt  of  the 
calls for funds. However, the six-twelfths to be paid not later than 30 days after receipt 
of the call issued in January shall be calculated on the basis of the amount set out in 
the  statement  of  revenue  of  the  preliminary  draft  budget:  the  regularisation  of  the 

EN 

15 

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2. 

3. 

4. 

5. 

amount  thus  paid  shall  occur  with  the  payment  of  the  six-twelfths  not  later  than  30 
days after receipt of the call for funds issued at the latest in June. 

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

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

The Faroes shall pay its contribution under this Agreement according to the schedule 
in  paragraph  1.  Any  delay  in  the  payment  of  the  contribution  shall  give  rise  to  the 
payment of default interest by the Faroes on the outstanding amount from the due date. 
The  interest  rate  for  amounts  receivable  not  repaid  on  the  due  date  shall  be  the  rate 
applied  by  the  European  Central  Bank  to  its  principal  refinancing  operations,  as 
published in the C series of the Official Journal of the European Union, in force on the 
first calendar day of the month in which the due date falls, increased by one and a half 
percentage points. 

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

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

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

EN 

16 

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ANNEX IV 

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

I. Direct Communication 

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

II. Audits 

1. 

2. 

3. 

4. 

In  accordance  with  Council  Regulation  (EC,  Euratom)  No  1605/20029,  on  the 
Financial Regulation applicable to the general budget of the European Communities 
and  Commission  Regulation  (EC,  Euratom)  No  2342/200210  laying  down  detailed 
rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on 
the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities  and  with  the  other  rules  referred  to  in  this  Agreement,  the  grant 
agreements  and/or  contracts  concluded  with  participants  in  the  programme 
established in the Faroes may provide for scientific, financial, technological or other 
audits  to  be  conducted  at  any  time  on  the  premises  of  the  participants  and  of  their 
subcontractors  by  Commission  agents  or  by  other  persons  mandated  by  the 
Commission including OLAF.  

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

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

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

III. On-The-Spot Checks 

1. 

9 
10 
11 

Within the framework of this Agreement, the Commission including OLAF shall be 
authorised  to  carry  out  on-the-spot  checks  and  inspections  in  the  premises  of 
participants  and  their  subcontractors  from  the  Faroes,  in  accordance  with  the  terms 
and conditions laid down in Council Regulation (Euratom, EC) No 2185/9611. 

OJ L248, 16.09.2002, pp.1-48 
OJ L357, 31.12.2002, pp.1-71 
OJ L 292, 15.11.1996, p.2 

EN 

17 

   EN 

                                                 
2. 

3. 

4. 

5. 

in 

close 

On-the-spot  checks  and  inspections  shall  be  prepared  and  conducted  by  the 
the  National  Audit  Office 
Commission 
(Landsgrannskoðanin). It shall be notified a reasonable time in advance of the object, 
purpose  and  legal  basis  of  the  checks  and  inspections,  so  that  they  can  provide 
assistance.  To  that  end,  the  officials  of  the  competent  Faroese  authorities  may 
participate in the on-the-spot checks and inspections. 

collaboration  with 

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

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

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

IV. Information and Consultation 

1. 

2. 

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

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

V. Confidentiality 

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

VI. Administrative Measures And Penalties 

Without  prejudice  to  application  of  Faroese  criminal  law,  administrative  measures  and 
penalties may be imposed by the Commission in accordance with Regulations (EC, Euratom) 
No 1605/2002, and (EC, Euratom) No 2342/2002 and with Council Regulation (EC, Euratom) 

EN 

18 

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No 2988/95 of 18 December 199512 on the protection of the European Communities' financial 
interests. 

VII. Recovery and Enforcement 

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

12 

OJ L312, 23.12.1995, p.1-4 

EN 

19 

   EN 

                                                 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

NAME OF THE PROPOSAL 

Proposal  for  a  Council  decision  on  the  conclusion  of  an  agreement  between  the 
European  Community  and  the  Government  of  the  Faroes  on  scientific  and 
the  European 
technological  cooperation,  associating 
Community's  Seventh  Framework  Programme 
for  Research,  Technological 
Development and Demonstration Activities (2007-2013). 

the  Faroe  Islands 

to 

2. 

ABM / ABB FRAMEWORK 

Policy strategy and coordination of, in particular, DGs RTD, JRC, ENTR, INFSO and TREN. 

3. 

BUDGET LINES 

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

- Faroes participation: 

Chapter 6013 (revenue), Articles 10.0202, 02.0403, 06.0604, 08.2204, 09.0402 (Title 
1a)) 

The  contribution  by  the  Faroes  to  the  budget  of  the  Seventh  EC  Framework 
Programme  will  be  proportionate  to  its  GDP  compared  with  that  of  the  European 
Union of 27. It will be allocated to the various specific programmes of the Seventh 
EC Framework Programme in proportion to their budgets. 

-  Participation  in  indirect  actions  by  entities  from  the  Faroes,  as  well  as  costs  in 
connection  with  the  implementation  of  the  Agreement  (workshops,  seminars, 
meetings,  etc.),  will  be  charged  to  the  specific  budget  lines  for  the  specific 
programmes of the Seventh EC Framework Programme (08.010503). 

3.2. Duration of the action and of the financial impact: 

This  agreement  shall  be  effective  from  the  date  of  signature  for  the  remaining 
duration  of  the  Seventh  framework  programme  (EC).  It  may  be  terminated  at  any 
time by either party upon six months' notice. 

3.3.  Budgetary characteristics (add rows if necessary): 

Budget 
line 

Expenditure type 

New 

EFTA 
contribution 

Contributions 
from  applicant 
countries 

in 

Heading 
financial 
perspective 

EN 

20 

   EN 

 
 
 
 
 
 
08 01.05.03 

Non-
comp 

Non-
diff13 

NO 

YES 

YES 

1a) 

4. 

SUMMARY OF RESOURCES 

4.1 

Financial Resources 

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

EUR million (to 3 decimal places) 

Section 
no. 

Expenditure type 

Operational expenditure14 

Year 

2011 

2012 

2013 

n+4 

2010 

N+
5 
and 
late
r. 

Total 

Commitment 
Appropriations (CA) 

8.1 

Payment  Appropriations 
(PA) 

a 

b 

0 

0 

0 

0 

0 

0 

0 

0 

Administrative expenditure within reference amount15 

0 

0 

Technical 
& 
administrative  assistance 
(NDA) 

8.2.4 

c 

TTOOTTAALL  RREEFFEERREENNCCEE  AAMMOOUUNNTT 

0.117 

0.117 

0.117 

0.117 

0.468 

Commitment 
Appropriations 

Payment 
Appropriations 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

a+c 

b+c 

0.468 

0.468 

13 
14 
15 

Non-differentiated appropriations. 
Expenditure that does not fall under Chapter xx 01 of the Title xx concerned. 
Expenditure within Article xx 01 04 of Title xx. 

EN 

21 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
 
 
 
 
 
 
                                                 
Administrative expenditure not included in reference amount16 

Human 
associated 
(NDA) 

resources 

and 
expenditure 

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

costs, 

0 

0 

8.2.5 

d 

8.2.6 

e 

0 

0 

0 

0 

0 

0 

Total indicative financial cost of intervention 

TOTAL  CA 
cost 
of 
Resources 

including 
Human 

TOTAL  PA 
cost 
of 
Resources 

including 
Human 

Co-financing details 

No co-financing required 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

0.117 

a+c
+d+
e 

b+c
+d+
e 

0 

0 

0.468 

0.468 

4.1.2  Compatibility with Financial Programming 

X 

Proposal is compatible with existing financial programming. 

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial 

(cid:133) 
perspective. 

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional 

(cid:133) 
Agreement17 (i.e. flexibility instrument or revision of the financial perspective). 

4.1.3  Financial impact on Revenue 

(cid:133) 

Proposal has no financial implications on revenue 

x 

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

16 
17 

Expenditure within Chapter xx 01 other than Articles xx 01 04 or xx 01 05. 
See points 19 and 24 of the Interinstitutional agreement. 

EN 

22 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Prior to action [Year n-1]

EUR million (to one decimal place) 

Budget line 

Revenue* 

a) Revenue in absolute terms  0 

6013 

b) Change in revenue 

 ∆ 

2010  2011

2012 

2013 

0,927 1,065

1,193  1,324 

Total 

4,509

- 

- 

- 

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

*estimated revenue 

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

Use  of  existing  human  resources.  The  Commission  is  not  requesting  additional  staff  for 
implementation of the agreement. 

5. 

CHARACTERISTICS AND OBJECTIVES 

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

5.1.  Need to be met in the short or long term: 

This  decision  will  allow  both  parties  to  upgrade  and  intensify  their  cooperation  in  areas  of 
common scientific and technological interest.  

Value-added  of  Communities  involvement  and  coherence  of  the  proposal  with 

5.2 
other financial instruments and possible synergy: 

The  Agreement  is  based  on  the  principles  of  mutual  benefit,  reciprocal  opportunities  for 
access to each other's programmes and activities relevant for the purpose of the Agreement, 
non-discrimination,  the  effective  protection  of  intellectual  property  and  equitable  sharing  of 
intellectual  property  rights.  The  proposal  is  also  in  line  with  the  administrative  expenditure 
borne  by  the  Community  which  provides  for  missions  by  experts  and  EU  officials, 
organisation  of  workshops,  seminars  and  meetings  in  the  European  Community  and  the 
Faroes. 

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

The  main  objective  is  to  stimulate  cooperation  between  the  European  Community  and  the 
Faores in the areas covered by the RTD framework programme: 

EN 

23 

   EN 

 
 
 
 
 
 
 
 
 
the agreement is designed to enable the Community and the Faroes to profit, on the basis of 
the principle of mutual benefit, from the scientific and technical progress achieved under their 
respective  research  programmes,  by  means  of  participation  by  the  Faroes'  scientific 
community  and  Faroese  industry  in  Community  research  projects  and  independent 
participation, without funding, by entities established in the Community in Faroese projects; 
beneficiaries  in  the  EC  and  the  Faroes  will  be  the  scientific  communities,  industry  and  the 
general public, thanks to the direct and indirect effects of cooperation. 

5.4. Method of Implementation (indicative) 

Show below the method(s)18 chosen for the implementation of the action. 

X Centralised Management 

X  Directly by the Commission 

(cid:133) 

Indirectly by delegation to: 

(cid:133)  Executive Agencies 

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

Financial Regulation 

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

(cid:133) Shared or decentralised management 

(cid:133)  With Member States 

(cid:133)  With third countries 

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

Relevant comments: 

6. 

MONITORING AND EVALUATION 

The cooperation agreement will be regularly assessed by the relevant Commission services. 

The assessment will cover the following: 

a. 

b. 

18 

Compilation  of  available  information:  based  on  the  data  from  the  specific 
programmes of the framework programme. 

General  assessment  of  the  operation:  an  evaluation  of  all  the  cooperation  activities 
under this agreement will be made by the Commission's departments. 

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

EN 

24 

   EN 

                                                 
7. 

ANTI-FRAUD MEASURES 

When  the  implementation  of  the  framework  programme  calls  for  the  use  of  external 
contractors  or  implies  granting  financial  contributions  to  third  parties,  the  Commission  will 
carry  out,  where  appropriate,  financial  audits,  in  particular  if  it  has  reason  to  doubt  the 
realistic nature of work performed or described in the activity reports. 

The Community's financial audits will be carried out either by its own staff or by accounting 
experts approved according to the law of the audited party. The Community will choose the 
latter freely, while avoiding any risks of conflicts of interest which might be indicated to it by 
the party subject to the audit. 

In  addition,  in  carrying  out  the  research  activities,  the  Commission  will  ensure  that  the 
financial interests of the European Communities are protected by effective checks and, where 
irregularities are detected, by proportionate and dissuasive measures and penalties. 

In  order  to  achieve  this  aim,  rules  on  checks,  measures  and  penalties,  with  references  to 
Regulations No 2988/95, 2185/96, 1073/99 and 1074/99 will be set out in all contracts used in 
the implementation of the framework programme. 

In particular, the following points will have to be provided for in the contracts: 

the introduction of specific contractual clauses to protect the financial interests of the 

- 
EC in carrying out checks and controls in relation to the work performed; 

the carrying out of administrative checks as part of anti-fraud measures, in accordance 

- 
with Regulations No 2185/96, No 1073/1999 and No 1074/1999; 

- 
the application of administrative penalties for all intentional or negligent irregularities 
in  the  implementation  of  the  contracts,  in  accordance  with  the  framework  Regulation  No 
2988/95, including a blacklisting mechanism; 

the fact that possible recovery orders in case of irregularities and fraud be enforceable 

- 
according to Article 256 of the EC Treaty. 

In  addition  and  as  routine  measures,  an  internal  audit  and  control  programme  in  respect  of 
scientific and budgetary aspects will be carried out by the DG Research staff responsible; an 
internal  audit  will  be  carried  out  by  the  Internal  audit  Unit  of  DG  Research;  and  local 
inspections will be undertaken by this Unit and the Court of Auditors of the European Union.

EN 

25 

   EN 

8. 

DETAILS OF RESOURCES 

8.1 

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

Commitment appropriations in EUR million (to 3 decimal places) 

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

Type 
of 
output 

Av. 
cost 

Year n 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year  n+5 
later 

and 

TOTAL 

No. 
outputs 

No. 
outputs 

Tota
l 
cost 

No. 
outputs 

Tota
l 
cost 

No. 
outputs 

Tota
l 
cost 

No. 
outputs 

Tota
l 
cost 

No. 
outputs 

Tota
l 
cost 

No. 
outputs 

Tota
l 
cost 

Tota
l 
cost 

OPERATIONAL 
OBJECTIVE No.119 

Action1…………. 

Output 1 

Output 2 

Action 2…………. 

Output 1 

Sub-total  Objective 
1 

OPERATIONAL 
OBJECTIVE No.2  

Action 1…………. 

19 

As described under Section 5.3. 

EN 

26 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Output 1 

Sub-total  Objective 
2 

OPERATIONAL 
OBJECTIVE No. n 

Sub-total  Objective 
n 

TOTAL COST 

EN 

27 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
8.2 

Administrative Expenditure 

8.2.1  Number and type of human resources 

Use of existing human resources 

Types of post 

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

2010 

Year n+1 

Year n+2 

Year n+3 

Year n+4 

Year n+5 

or 

Officials 
temporary 
staff20  (XX  01 
01) 

A*/
AD 

B*, 
C*/
AST 

Staff financed21 by Art. 
XX 01 02 

Other  staff  financed22 
by Art. XX 01 04/05 

TOTAL 

8.2.2  Description of tasks deriving from the action 

Management  of  the  Agreement  will  entail  missions  and  attendance  of  meetings  by 

EU and Faroese experts, held in Brussels and the Faroes. 

8.2.3  Sources of human resources (statutory) 

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

X 

(cid:133) 

(cid:133) 

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 

20 
21 
22 

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 

28 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:133) 

(cid:133) 

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 

8.2.4  Other 

included 
 (08 01 04/05 – Expenditure on administrative management) 

administrative 

expenditure 

EUR million (to 3 decimal places) 

Budget line 

2010 

2011 

2012 

2013 

(number and heading) 

Technical 

1. 
and 
administrative 
assistance 
(including related staff costs) 

 Executive agencies23 

in 

reference 

amount 

Year 
n+4 

Year n+5 

TOTAL 

and later 

Other 
administrative assistance 

technical 

 intra muros 

 extra muros 

Total 
administrative assistance 

Technical 

and 

0.117 

0.117 

0.117 

0.117 

0.468 

and 

0.117 

0.117 

0.117 

0.117 

0.468 

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

2010 

Year 
n+1 

Year 
n+2 

Year n+3  Year n+4  Year n+5 

and later 

reference amount 

EUR million (to 3 decimal places) 

Type of human resources 

Officials and temporary staff  

(08 01 01) 

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

(specify budget line) 

23 

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

EN 

29 

   EN 

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

Calculation– Officials and Temporary agents (122.00€ per year for officials)  

Reference should be made to Point 8.2.1, if applicable 

Calculation– Staff financed under Art. XX 01 02 

Reference should be made to Point 8.2.1, if applicable 

8.2.6  Other administrative expenditure not included in reference amount 

EUR million (to 3 decimal places) 

2010 

Year 
n+1 

Year 
n+2 

Year 
n+3 

Year 
n+4 

Year 
n+5 

TOTAL 

and 
later 

XX 01 02 11 01 – Missions 

XX 01 02 11 02 – Meetings & Conferences 

XX 01 02 11 03 – Committees24 

XX 01 02 11 04 – Studies & consultations 

XX 01 02 11 05 - Information systems 

2. Total Other Management Expenditure 
(XX 01 02 11) 

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

including  reference 

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

(NOT 

in 

Calculation - Other administrative expenditure not included in reference amount 

24 

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

EN 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Annex 
Method of calculating the effect on revenue 

Faroes'  contribution  to  the  Seventh  EC  Framework  Programme  will  be  proportionate  to  its 
GDP compared to the GDP of the European Union. 

Estimated  contribution  to  the  Seventh  EC  Framework  Programme  based  for  the  Member 
States,  on  the  basis  of  the  latest  statistical  data  from  Eurostat  (EUROSTAT,  Statistics  in 
Focus - Theme 2) and for the Faroes on the basis of the latest statistical data from the National 
Statistical Authority of the Faroes (Hagstova Føroya) on 2008 GDP : 

GDP 2008 (Mio €) 

GDP EUR 27 

12.506.963,900 

GDP Faroes 

1.673,020 

Ratio 

0,013% 

Estimated Contribution (Mio €)  

Year 

Budget 

Total estimated contribution 

2010 

6.932,723 

Total 

6.932,723 

0,927 

0,927 

EN 

31 

   EN