Proposal for a COUNCIL REGULATION (Euratom) laying down the rules for the participation of undertakings, research centres and universities in indirect actions under the Framework Programme of the European Atomic Energy Community and for the dissemination of research results (2012-2013)
Date: 2011-03-07
Institutions: European Commission
Subjects: EAEC, EU financing, EU programme, Joint Research Centre, nuclear energy, nuclear research

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EUROPEAN COMMISSION 

Brussels, 7.3.2011 
COM(2011) 71 final 

2011/0045 (NLE) 

Proposal for a 

COUNCIL REGULATION (Euratom) 

laying down the rules for the participation of undertakings, research centres and 
universities in indirect actions under the Framework Programme of the European 
Atomic Energy Community and for the dissemination of research results (2012-2013) 

{COM(2011) 72 final} 
{COM(2011) 73 final} 
{COM(2011) 74 final} 
{SEC(2011) 204 final} 

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1. 

CONTEXT OF THE PROPOSAL 

EXPLANATORY MEMORANDUM 

The  Commission’s  proposal  for  the  Euratom  Framework  Programme  for  2012-2013  is 
accompanied by a proposal for the Rules for Participation.  

This proposal provides the vehicle for implementing the Framework programme 2012-2013, 
building on the same principles established in the Seventh Euratom Framework Programme 
(2007-2011). In accordance with Article 18 of this Regulation, the model grant agreement 
adopted  under  Council  Decision  2006/970/Euratom  will  also  be  used  for  the  Euratom 
Framework  programme  for  2012  and  2013.  As  a  consequence,  this  Framework  Programme 
will also benefit from the initiatives included in the Commission Decision on three measures 
for  simplifying  the  implementation  of  Decision  No  1982/2006/EC  of  the  European 
Parliament  and  of  the  Council  and  Council  Decision  2006/970/Euratom  and  amending 
Decisions  C(2007)  1509  and  C(2007)  16251.  These  measures  concern  the  acceptance  of 
average personnel costs methodologies, the use of scale-of-units to determine the value of the 
work  carried  out  by  owners  of  small  and  medium-sized  enterprises  (SMEs)  or  other  natural 
persons not receiving a salary and the establishment of an internal Commission committee to 
achieve  a  uniform  interpretation  and  application  of  the  legal  and  financial  rules  in  the 
implementation of the Seventh Framework Programmes.  

2. 

LEGAL BASIS 

This proposal for a Council Regulation is based on Articles 7 and 10 of the European Atomic 
Energy  Community  (Euratom)  Treaty.  The  rules  for  participation  define  the  rights  and 
obligations  of  legal  entities  wishing  to  take  part  in  the  framework  programme  and  establish 
the  principles  for  the  use  and  dissemination  of  their  work  resulting  from  that  participation. 
The Euratom  Framework Programme for 2012-2013 is implemented  in accordance  with the 
provisions  established by the Financial Regulation, its implementing rules, and the state aid 
rules, in particular the rules on state aid for research and development.  

3. 

CONTENT 

The  present  proposal  contains  four  chapters:  introductory  provisions  (subject  matter, 
definitions  and  confidentiality),  participation  (minimum  conditions  for  participation, 
procedural aspects, including minimum numbers of participants, their place of establishment, 
proposal  submission  and  evaluation,  implementation  and  grant  agreements,  monitoring  of 
projects and programmes, Community financial contribution: eligibility for funding and forms 
of grants, reimbursement rates, payment, distribution, recovery and guarantees), the rules for 
dissemination and use and access rights (ownership, protection, publication, dissemination 
and  use,  and  access  rights  to  background  and  foreground)  and  the  specific  rules  for 
participation in activities under the thematic area “fusion energy research”. 

The minimum number of participants and the conditions for the place of establishment of 
the  participants  continue  to  depend  on  the  type  of  action.  Legal  entities  established  in 
Associated countries may also participate on the same basis as those established in Member 
States. 

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C(2011) 174, 24.1.2011. 

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The Rules identify the procedures for issuing calls for proposals and the exceptions to calls 
for proposals, and for the submission, evaluation and selection of proposals and the award of 
grants. In addition, they establish the procedures for the appointment of external experts. The 
detailed internal rules governing the submission, evaluation, selection and award procedures 
established  by  the  Commission  under  the  Seventh  Framework  Programme  will  continue  to 
apply, including the provisions for the appointment of independent experts. The present rules 
keep  the  special  provisions  for  two-stage  submission  to  be  used  to  a  greater  extent  where 
applicable, for example where high over-subscription is expected, for very large projects and 
in order to limit costs of preparing proposals that may never be funded, etc. and for two-step 
evaluation  (with  single  submission).  The  evaluation  process  developed  over  the  previous 
Framework Programme and reflected in these internal rules will continue without substantial 
changes. Greater use is to be made of remote evaluation whenever possible.  

As  in  the  past  Framework  Programme,  full  electronic  submission  will  be  the  rule  for  this 
Framework  Programme  as  well  (although  not  specified  in  the  Rules).  Also,  the  use  of  pre-
filled forms/pre-registration using data from a central source and changes to the content and 
format of proposals will continue to be used to permit successful proposals to begin earlier. 

In order to ensure consistent assessment of the financial viability of participants and related 
matters, the Commission will continue to use the internal rules established under the Seventh 
Framework Programme for the new Euratom Framework Programme (2012-2013). 

The  model  grant  agreement  adopted  under  the Euratom Seventh Framework  Programme, as 
modified by Commission Decision C(2011) 174, will continue to be used in this Framework 
Programme. This grant agreement establishes the rights and obligations of participants vis-à-
vis the Community and each other. The autonomy and flexibility of the consortia, in particular 
with  respect  to  changes  in  their  composition  as  established  in  the  grant  agreement  will 
continue to apply. The grant agreement will come into force upon signature by the coordinator 
and  Commission  authorising  officer.  All  participants  must  accede  to  the  grant  agreement  in 
order to benefit from the rights and obligations under the project. 

Participants  will  be  required,  as  under  the  Seventh  Framework  Programme,  to  conclude 
consortium agreements, except where exempted under the call for proposals.  

The Commission will monitor all indirect actions financed by the Community as well as the 
Framework Programme and its Specific Programmes for 2012-2013, as and when necessary 
with the assistance of external experts. 

Participants  eligible  for  Community  funding  are  identified  in  the  subsection  on  Community 
financial contribution which also covers the forms of grants,  reimbursement rates, payment, 
distribution, recovery and guarantees. 

Three  forms  of  grants  continue  to  be  proposed  for  the  Community  financial  contribution: 
reimbursement of eligible costs, lump sums, and flat-rate financing (the latter can be based on 
the  scale  of  unit  costs  but  also  includes  flat  rates  for  indirect  costs).  These  may  be  used  to 
cover  the  entire  Community  financial  contribution  for  a  funding  scheme  or  in  combination. 
For most funding schemes, the reimbursement of eligible costs is the preferred method.  

Participants can charge all their direct and indirect costs and have the option of a flat rate for 
indirect costs. Costs will be determined, as in the previous Euratom Framework Programme, 
according  to  the  usual  accounting  and  management  principles  of  the  participants  to  achieve 
the project objectives based on principles of economy, efficiency and effectiveness. 

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The  Community  financial  contribution  will  cover  a  maximum  of  50%  of  eligible  costs 
minus receipts both for research and for demonstration activities. For SMEs, non profit public 
bodies, secondary and higher education establishments and research organisations, there will 
be  a  top  up  of  up  to  25%  for  research  activities.  All  other  activities,  including  coordination 
and support actions, and actions for the training and career development of researchers will be 
reimbursed at up to 100% for all entities.  

The above maximum amounts apply to all the eligible costs of entities, even where part of the 
reimbursement of costs is based on lump sums or flat rates. The maximum amounts also apply 
to entities participating in projects where flat-rate financing and, where appropriate, lump sum 
financing is used for the whole project. 

For  Networks  of  Excellence,  a  special  lump  sum  is  paid.  The  amount  of  the  lump  sum  is 
established  as  a  fixed  amount  per  researcher  per  year.  Periodic  payments  of  portions  of  the 
lump  sum  will  be  paid  according  to  the  attainment  of  indicators  showing  progressive 
implementation of the Joint Programme of Activities (JPA). 

Public  bodies,  research  organisations,  and  higher  and  secondary  education  establishments 
may provide an audit certificate established by a competent public officer.  

Participants in a consortium are fully responsible for carrying out the tasks entrusted to them 
even if one of the participants fails to complete assigned tasks. The financial risk mechanism 
for  reimbursing  any  amount  due  to  the  Community  because  of  a  participant’s  failure  is 
retained  in  the  present  proposal.  This  mechanism  is  financed  by  a  small  contribution  from 
undertakings  and  any  other  participants  that  are  not  public  bodies  or  secondary  and  higher 
education establishments, or whose participation is not guaranteed by their Member State or 
Associated country.  

Provisions  governing  dissemination  and  use  and  access  rights  (ownership,  protection, 
publication, dissemination and use, and access rights to background and foreground) are the 
same as in the past Framework Programme. The Rules specify the definitions and rules for 
background,  foreground  and  access  rights,  taking  into  account  the  specific  provisions  laid 
down in the Treaty. In particular, Article 45 of the Rules confers on the Commission the right 
to  disseminate  foreground  where  participants  fail  to  do  so.  The  provisions  on  intellectual 
property for the area “Fusion Energy Research” are set out in the specific instruments. 

Finally,  the  Rules  keep  the  same  specific  rules  for  participation  in  activities  under  the 
thematic  area  "fusion  energy  research"  as  in  the  previous  Euratom  Seventh  Framework 
Programme. 

4. Budgetary implications 

The  proposal  for  a  Council  Regulation  laying  down  the  rules  for  participation  has  no 
budgetary implications. 

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2011/0045 (NLE) 

Proposal for a 

COUNCIL REGULATION (Euratom) 

laying down the rules for the participation of undertakings, research centres and 
universities in indirect actions under the Framework Programme of the European 
Atomic Energy Community and for the dissemination of research results (2012-2013) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Articles 7 and 10 thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the Opinion of the European Parliament2, 

Having regard to the Opinion of the European Economic and Social Committee3, 

Having regard to the Opinion of the Court of Auditors4, 

Having consulted the Scientific and Technical Committee, 

Whereas: 

(1) 

(2) 

The Framework Programme of the European Atomic Energy Community for nuclear 
research and training activities for 2012-2013, hereinafter 'the Framework Programme 
(2012-2013)', was adopted by Council Decision No …/…/Euratom5 of … concerning 
the  Framework  Programme  of  the  European  Atomic  Energy  Community  for  nuclear 
research  and  training  activities  (2012-2013)6.  It  is  the  responsibility  of  the 
Commission to ensure the implementation of the Framework Programme (2012-2013) 
and its specific programmes, including the related financial aspects. 

The  Framework  Programme  2012-2013  should  be  implemented  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 Communities7, hereinafter 
"the Financial Regulation", and Commission Regulation (EC, Euratom) No 2342/2002 
of  23 December 2002  laying  down  detailed  rules  for  the  implementation  of  Council 

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Opinion of  
Opinion  
OJ C 
OJ 
OJ C 
OJ L 248, 16.9.2002, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the 
general budget of the European Communities8. 

The  Framework  Programme  2012-2013  should  also  be  implemented  in  accordance 
with  the  state  aid  rules,  in  particular  the  rules  on  state  aid  for  research  and 
development,  currently  the  Community  framework  for  state  aid  for  research  and 
development and innovation9.  

The Framework Programme for 2012-2013 retains the overall scope and principles as 
regards  the  Seventh  Framework  Programme  of  the  Community  adopted  by  Council 
Decision 2006/970/Euratom of 18 December 2006 concerning the Seventh Framework 
Programme  of  the  European  Atomic  Energy  Community  (Euratom)  for  nuclear 
research and training activities (2007 to 2011)10. 

The rules for the participation of undertakings, research centres and universities should 
provide  a  coherent,  comprehensive  and  transparent  framework  to  ensure  the  most 
efficient implementation possible, taking into account the need for easy access for all 
participants  through  simplified  procedures,  in  accordance  with  the  principle  of 
proportionality.  

This  Framework  Programme  should  benefit  from  the  Commission  initiative  to 
simplify  the  implementation  of  the  research  framework  programmes  included  in  the 
Commission  Decision  on  three  measures  for  simplifying  the  implementation  of 
Decision  No  1982/2006/EC  of  the  European  Parliament  and  of  the  Council  and 
Council  Decision  2006/970/Euratom  and  amending  Decisions  C(2007)  1509  and 
C(2007)  162511.  This  Commission  Decision  modifies  the  model  grant  agreement 
adopted under Council Decision 2006/970/Euratom.  

These  rules  should  continue  to  facilitate  the  exploitation  of  intellectual  property 
developed  by  participants,  also  taking  into  account  the  way  in  which  the  participant 
may  be  organised  internationally,  while  protecting  legitimate  interests  of  the  other 
participants and the Community. 

The  Framework  Programme  (2012-2013)  should  promote  participation  from  the 
outermost  regions  of  the  Community,  as  well  as  from  a  wide  range  of  undertakings, 
research centres and universities.  

The  definition  of  micro,  small  and  medium-sized  enterprises  (SMEs)  given  in  the 
Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition 
of micro, small and medium-sized enterprises12 should apply to ensure coherence and 
transparency.  

(10)  The  minimum  conditions  for  participation  need  to  be  established,  both  as  a  general 

rule and for specific indirect actions under the Framework Programme 2012-2013.  

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12 

OJ L 357, 31.12.2002, p. 1.  
OJ C 323, 30.12.2006, p. 1. 
OJ L 460, 30.12.2006. p. 60. 
C(2011) 174, 24.1.2011. 
OJ L 124, 20.5.2003, p. 36. 

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(11)  Any legal entity should be free to participate once the minimum conditions have been 
satisfied.  Participation  over  and  above  the  minimum  should  ensure  the  efficient 
implementation of the indirect action concerned.  

(12) 

International organisations dedicated to developing cooperation in the field of nuclear 
research and training in Europe and largely made up of Member States or associated 
countries  should  be  encouraged  to  participate  in  the  Framework  Programme  2012-
2013.  

(13)  The participation of legal entities established in third countries and the participation of 
international organisations should also be envisaged, as enshrined in Article 101 of the 
Treaty.  However,  such  participation  should  be  justified  in  terms  of  the  enhanced 
contribution made to the objectives of the Framework Programme 2012-2013. 

(14) 

In  accordance  with  Article  198  of  the  Treaty,  legal  entities  of  Member  States'  non-
European territories under their jurisdiction are eligible for the Framework Programme 
2012-2013. 

(15) 

It is necessary to establish the terms and conditions for providing Community funding 
to participants in indirect actions.  

(16)  The  Commission  has  to  establish  further  rules  and  procedures,  in  addition  to  those 
provided for in the Financial Regulation and Regulation (EC, Euratom) No 2342/2002 
and in this Regulation, to govern the submission, evaluation and selection of proposals 
and  the  award  of  grants,  as  well  as  redress  procedures  for  participants.  In  particular, 
rules should be established for the use of independent experts.  

(17)  The  duration  of  the  Framework  Programme  2012-2013  is  limited  to  two  years, 
whereas  the  Seventh  Framework  Programme  of  the  Union,  adopted  by  Decision  No 
1982/2006/EC of the European Parliament and of the Council  of 18  December 2006 
concerning  the  Seventh  Framework  Programme  of  the  European  Community  for 
research, technological development and demonstration activities (2007-2013)13, with 
similar  rules to  the  Seventh  Framework Programme of the European  Atomic Energy 
Community  (Euratom)  for  nuclear  research  and  training  activities  (2007-2011)14, 
adopted by Decision 2006/970/Euratom of the Council of 18 December 2006, will be 
in force in parallel until the end of 2013. It is thus appropriate to apply similar rules to 
those for the Seventh Framework Programme of the European Union and avoid major 
changes for participants. 

(18)  The Commission should establish further rules and procedures under the Framework 
Programme  2012-2013  in  addition  to  those  provided  for  in  the  Financial  Regulation 
and  Regulation  (EC,  Euratom)  No  2342/2002,  to  govern  the  assessment  of  the  legal 
and  financial  viability  of  participants  in  indirect  actions  under  the  Framework 
Programme 2012-2013. Such rules should strike the right balance between protecting 
the Union's financial interests and simplifying and facilitating the participation of legal 
entities  in  the  Framework  Programme  (2012-2013).  In  order  to  ensure  consistent 
verification of the existence and legal status of participants, as well as their operational 
and  financial  capacities,  in  indirect  actions  and  to  avoid  major  changes  for  the 

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OJ L 412, 30.12.2006, p. 1.  
OJ L 400, 30.12.2006. p.60. 

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participants  it  is  advisable  to  apply  to  the  Framework  Programme  (2012-2013)  the 
Rules to ensure consistent verification of the existence and legal status of participants, 
as  well  as  their  operational  and  financial  capacities,  in  indirect  actions  supported 
through the form of a grant under the Seventh Framework Programme of the European 
Community  for  research,  technological  development  and  demonstration  activities 
(2007-2013)  and  under  the  Seventh  Framework  Programme  of  the  European  Atomic 
Energy Community (Euratom) for nuclear research and training activities (2007-2011) 
adopted by Commission Decision C(2007) 2466 of 13 June 2007.  

(19) 

In this context, the Financial Regulation and Regulation (EC, Euratom) No 2342/2002 
and  Council  Regulation  (Euratom,  EC)  No  2988/95  of  18  December  1995  on  the 
protection  of  the  European  Communities'  financial  interests15,  govern  inter  alia  the 
protection  of  the  Union’s  financial  interests,  the  fight  against  fraud  and  irregularity, 
the  procedures  for  the  recovery  of  sums  owed  to  the  Commission,  exclusion  from 
contract and grant procedures and related penalties, and audits, checks, and inspections 
by the Commission and the Court of Auditors. 

(20)  The Community financial contribution should reach participants without undue delay.  

(21)  The agreements concluded for each action should provide for supervision and financial 
control  by  the  Commission,  or  any  representative  authorised  by  the  Commission,  as 
well  as  audits  by  the  Court  of  Auditors  and  on-the-spot  checks  carried  out  by  the 
European Anti-Fraud Office (OLAF), in accordance with the procedures laid down in 
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 protect the 
European Communities' financial interests against fraud and other irregularities16.  

(22)  The Commission should monitor the indirect actions carried out under the Framework 
Programme  2012-2013  and  the  Framework  Programme  2012-2013  and  its  Specific 
Programmes  2012-2013.  With  a  view  to  ensuring  efficient  and  coherent  monitoring 
and evaluation of the implementation of indirect actions, the Commission should set-
up and maintain an appropriate information system.  

(23)  The  Framework  Programme  2012-2013  should  reflect  and  promote  the  general 
principles laid down in the Recommendation 2005/251/EC of 11 March 2005 on the 
European  Charter  for  Researchers  and  Code  of  Conduct  for  the  Recruitment  of 
Researchers17, while respecting their voluntary character.  

(24)  The  rules  governing  the  dissemination  of  research  results  should  ensure  that,  where 
appropriate, the participants protect the intellectual property generated in actions, and 
use and disseminate those results.  

(25)  While respecting the rights of the owners of intellectual property, those rules should be 
designed  to  ensure  that  participants  and,  where  appropriate  their  affiliated  entities 
established in a Member State or associated country, have access to information they 
bring  to  the  project  and  to  knowledge  arising  from  research  work  carried  out  in  the 

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OJ L 312, 23.12.1995, p. 1. 
OJ L 292, 15.11.1996, p. 2. 
OJ L 75, 22.3.2005, p. 67. 

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project  to  the  extent  necessary  to  conduct  the  research  work  or  to  use  the  resulting 
knowledge.  

(26)  The  "Participants  Guarantee  fund",  set-up  under  the  seventh  Framework  Programme 
of the Community and managed by the Commission, should continue to operate and to 
cover  amounts  due  and  not  reimbursed  by  defaulting  partners  under  the  Framework 
Programme  2012-2013.  The  creation  of  such  a fund  has  promoted  the  simplification 
and facilitated the participation while safeguarding the Union's financial interests in a 
manner that is also appropriate for the Framework Programme (2012-2013). 

(27)  Community contributions to a joint undertaking set up pursuant to Articles 45 to 51 of 

the Treaty do not fall within the scope of this Regulation.  

(28)  This Regulation respects the fundamental rights and observes the principles enshrined 

in the Charter of Fundamental Rights of the European Union.  

(29)  The  Community  should  provide  financial  support,  in  accordance  with  the  Financial 
Regulation,  inter  alia  by  means  of  public  procurements,  in  the  form  of  a  price  for 
goods or services established by contract and selected on the basis of calls for tender, 
grants,  subscriptions  to  an  organisation  in  the  form  of  a  membership  fee,  and 
honorarium for independent experts. 

HAS ADOPTED THIS REGULATION: 

CHAPTER I 
INTRODUCTORY PROVISIONS 

Article 1  
Subject matter 

This Regulation lays down the rules for the participation of undertakings, research centres and 
universities and other legal entities in actions undertaken  by one or more  participants  under 
funding  schemes  identified  in  the  Annex  II  to  Decision  No…/…/Euratom18  establishing  the 
Framework Programme 2012-2013, hereinafter "indirect actions". 

It  also  lays  down  rules,  in  accordance  with  those  in  the  Regulation (EC, Euratom)  No 
1605/2002,  hereinafter  the  "Financial  Regulation"  and  Regulation  (EC,  Euratom)  No 
2342/2002,  concerning  the  Community  financial  contribution  to  participants  in  indirect 
actions under the Framework Programme 2012-2013. 

As  regards  the  results  of  research  carried  out  under  the  Framework  Programme  2012-2013, 
this  Regulation  lays  down  rules  for  the  disclosure  of  foreground  by  any  appropriate  means 
other than those resulting from the formalities for protecting it, including the publication of 
foreground in any medium, hereinafter "dissemination". 

In addition, it lays down rules for the direct or indirect use of foreground in further research 
activities  other  than  those  covered  by  the  indirect  action  concerned,  including  developing, 

18 

OJ: Insert number of the Decision referred to in Recital 1 

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creating  and  marketing  a  product  or  process,  creating  and  providing  a  service,  hereinafter 
"use". 

In  respect  of  both  foreground  and  background,  this  Regulation  lays  down  rules  concerning 
licences and user rights thereto, hereinafter "access rights". 

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

Article 2 
Definitions 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

"legal  entity"  means  any  natural  person,  or  any  legal  person  created  under  the 
national  law  of  its  place  of  establishment,  or  under  European  Union  law  or 
international law, which has legal personality and which may, acting under its own 
name, exercise rights and be subject to obligations; 

"affiliated entity" means any legal entity that is under the direct or indirect control of 
a participant, or under the same direct or indirect control as the participant, control 
taking any of the forms set out in Article 7(2); 

"fair  and  reasonable  conditions"  means  appropriate  conditions  including  possible 
financial  terms  taking  into  account  the  specific  circumstances  of  the  request  for 
access, for example the actual or potential value of the foreground or background to 
which  access  is  requested  and/or  the  scope,  duration  or  other  characteristics  of  the 
use envisaged; 

"foreground"  means  the  results,  including  information,  whether  or  not  they  can  be 
protected,  which  are  generated  by  the  indirect  action  concerned,  including  rights 
related to copyright, design rights, patent rights, plant variety rights or similar forms 
of protection; 

"background"  means  information  which  is  held  by  participants  prior  to  their 
accession  to  the  grant  agreement,  including  copyright  or  other  intellectual  property 
rights  pertaining  to  such  information,  for  which  they  have  filed  applications  before 
acceding  to  the  grant  agreement,  and  which  is  needed  for  carrying  out  the  indirect 
action or for using the results of the indirect action; 

"participant" means a legal entity contributing to an indirect action and having rights 
and obligations with regard to the Community; 

"research organisation " means a legal entity established as a non-profit organisation 
which  carries  out  research  or  technological  development  as  one  of  its  main 
objectives; 

"third country" means a country that is not a Member State;  

"associated country" means a third country that is party to an international agreement 
with the European Atomic Energy Community, under the terms of which or on the 
basis  of  which  it  makes  a  financial  contribution  to  all  or  part  of  the  Framework 
Programme 2012-2013; 

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(10) 

(11) 

(12) 

(13) 

(14) 

(15) 

"international  organisation"  means  an  intergovernmental  organisation,  which  has 
legal  personality  under  international  public  law,  other  than  the  European  Union,  as 
well as any specialised agency set up by such an international organisation; 

"international  European  interest  organisation"  means  an  international  organisation, 
the  majority  of  whose  members  are  Member  States  or  associated  countries,  and 
whose  principal  objective  is  to  promote  scientific  and  technological  cooperation  in 
Europe; 

"public  body"  means  any  legal  entity  established  as  such  by  national  law,  and 
international organisations; 

"SMEs"  mean  micro,  small  and  medium-sized  enterprises  within  the  meaning  of 
Recommendation 2003/361/EC; 

"work programme" means a plan adopted by the Commission for the implementation 
of a specific programme as identified in Article 6 of Decision No …/…/Euratom19; 

"funding schemes" mean the mechanisms for Community funding of indirect actions 
as established in the Annex II to Decision No …/…/Euratom+. 

For the purposes of point (1) of the first paragraph, in the case of natural persons, references 
to establishment are deemed to refer to habitual residence. 

Article 3 
Confidentiality 

Subject  to  the  conditions  established  in  the  model  grant  agreement,  the  model  appointment 
letter  or  contract,  the  Commission  and  the  participants  shall  keep  confidential  any  data, 
knowledge and documents communicated to them as confidential. 

CHAPTER II 
PARTICIPATION 

Article 4 
Specific rules for fusion energy research 

The rules set out in this Chapter apply without prejudice to specific rules for activities under 
the thematic area "Fusion energy research" set out in Chapter IV. 

19 

OJ: Insert number of the Decision referred to in recital 1. 

EN 

11 

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SECTION 1 
MINIMUM CONDITIONS 

Article 5 
General principles 

1. 

2. 

3. 

Any  undertaking,  university  or  research  centre  or  other  legal  entity,  whether 
established  in  a  Member  State,  an  associated  country,  or  a  third  country,  may 
participate in an indirect action provided that the minimum conditions laid down in 
this Chapter are met, including any conditions specified pursuant to Article 11. 

However,  in  the  case  of  an  indirect  action  as  referred  to  in  Articles  6  or  8,  under 
which the minimum conditions may be met without the participation of a legal entity 
established in a Member State, participation shall be subject to the further condition 
that  the  attainment  of  the  objectives  laid  down  in  Articles  1  and  2  of  the  Treaty  is 
thereby enhanced. 

The  Joint  Research  Centre  of  the  European  Commission,  hereinafter  the  JRC,  may 
participate  in  indirect  actions  on  the  same  footing  and  with  the  same  rights  and 
obligations as a legal entity established in a Member State. 

Article 6 
Minimum conditions 

1. 

The minimum conditions for indirect actions shall be the following: 

(a) 

at  least  three  legal  entities  shall  participate,  each  of  which  is  established  in  a 
Member State or associated country, and no two of which are established in the 
same Member State or associated country; 

(b) 

all  three  legal  entities  shall  be  independent  of  each  other  in  accordance  with 
Article 7. 

For the purposes of point (a) of paragraph 1, where one of the participants is the JRC, 
or  an  international  European  interest  organisation  or  an  entity  created  under 
European  Union  law,  these  participants  shall  be  deemed  to  be  established  in  a 
Member  State  or  an  associated  country  other  than  a  Member  State  or  associated 
country in which is established another participant in the same action. 

Article 7 
Independence 

Two  legal  entities  shall  be  regarded  as  independent  of  each  other  where  neither  is 
under the direct or indirect control of the other or under the same direct or indirect 
control as the other. 

For  the  purposes  of  paragraph  1,  control  may  in  particular  take  either  of  the 
following forms: 

2. 

1. 

2. 

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12 

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(a) 

the  direct  or  indirect  holding  of  more  than  50%  of  the  nominal  value  of  the 
issued share capital in the legal entity concerned, or of a majority of the voting 
rights of the shareholders or associates of that entity; 

(b) 

the direct or indirect holding, in fact or in law, of decision-making powers in 
the legal entity concerned. 

3. 

However,  the  following  relationships  between  legal  entities  shall  not  in  themselves 
be deemed to constitute controlling relationships: 

(a) 

the same public investment corporation, institutional investor or venture-capital 
company  has  a  direct  or  indirect  holding  of  more  than  50  %  of  the  nominal 
value  of  the  issued  share  capital  or  a  majority  of  voting  rights  of  the 
shareholders or associates; 

(b) 

the legal entities concerned are owned or supervised by the same public body. 

Article 8 
Coordination and support actions, and training 
and career development of researchers 

For coordination and support actions, and actions for the training and career development of 
researchers, the minimum condition shall be the participation of one legal entity. 

The first paragraph shall not apply to actions with the aim of coordinating research activities. 

Article 9 
Sole participants 

Where  the  minimum  conditions  for  an  indirect  action  are  satisfied  by  a  number  of  legal 
entities that together form one legal entity, the latter may be the sole participant in an indirect 
action, provided that it is established in a Member State or an associated country. 

Article 10 
International organisations and legal entities 
 established in third countries 

Participation in indirect actions shall be open to international organisations and legal entities 
established in third countries once the minimum conditions laid down in this Chapter are met, 
as well as any conditions specified in the specific programmes or relevant work programmes. 

Article 11 
Additional conditions 

In  addition  to  the  minimum  conditions  laid  down  in  this  Chapter,  specific  programmes  or 
work programmes may lay down conditions regarding the minimum number of participants. 

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13 

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They  may  also  lay  down,  according  to  the  nature  and  objectives  of  the  indirect  action, 
additional conditions to be met as regards type of participant and, where appropriate, place of 
establishment. 

SECTION 2 
PROCEDURES 

SUBSECTION 1 
CALLS FOR PROPOSALS 

Article 12 
Calls for proposals 

1. 

2. 

3. 

The  Commission  shall  issue  calls  for  proposals  for  indirect  actions  in  accordance 
with  the  requirements  laid  down  in  the  relevant  specific  programmes  and  work 
programmes. 

In addition to the publicity specified in Regulation (EC, Euratom) No 2342/2002, the 
Commission  shall  publish  calls  for  proposals  on  the  website  of  the  European 
Commission for the Framework Programme 2012-2013, through specific information 
channels,  and  at  the  national  contact  points  set  up  by  the  Member  States  and  the 
associated countries. 

Where  appropriate,  the  Commission  shall  specify  in  the  call  for  proposals  that  the 
participants need not establish a consortium agreement. 

Calls for proposals shall have clear objectives so as to ensure that applicants do not 
respond needlessly. 

Article 13 
Exceptions 

The Commission shall not issue calls for proposals for the following: 

(a) 

(b) 

(c) 

(d) 

coordination and support actions to be carried out by legal entities identified in the 
specific  programmes  or  in  the  work  programmes  when  the  specific  programme 
permits  the  work  programmes  to  identify  beneficiaries,  in  accordance  with 
Regulation (EC, Euratom) No 2342/2002; 

coordination  and  support  actions  consisting  of  the  purchase  of  goods  or  services 
subject to the rules on public procurement set out in the Financial Regulation; 

coordination and support actions relating to the appointment of independent experts; 

other actions, where so provided for by the Financial Regulation or Regulation (EC, 
Euratom) No 2342/2002. 

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SUBSECTION 2 
EVALUATION AND SELECTION OF 
PROPOSALS AND AWARD OF GRANTS 

Article 14 
Evaluation, selection and award 

1. 

2. 

3. 

1. 

2. 

3. 

The Commission shall evaluate all the proposals submitted in response to a call for 
proposals  on  the  basis  of  the  evaluation  principles  and  the  selection  and  award 
criteria. 

The  criteria  shall  be  those  of  excellence,  impact  and  implementation.  Within  these 
conditions,  the  work  programme  shall  further  specify  the  evaluation  and  selection 
criteria  and  may  add  additional  requirements,  weightings  and  thresholds,  or  set  out 
further details on the application of the criteria. 

A proposal that contravenes fundamental ethical principles or which  does  not fulfil 
the conditions set out in the specific programme, the work programme or in the call 
for  proposals  shall  not  be  selected.  Such  a  proposal  may  be  excluded  from  the 
evaluation, selection and award procedures at any time. 

Proposals shall be ranked according to the evaluation results. Funding decisions shall 
be made on the basis of that ranking. 

Article 15 
Submission, evaluation, selection and 
award procedures 

Where  a  call  for  proposals  specifies  a  two-step  evaluation  procedure,  only  those 
proposals  that  pass  the  first  step,  based  on  an  evaluation  against  a  limited  set  of 
criteria, shall go forward for further evaluation. 

Where  a  call  for  proposals  specifies  a  two-stage  submission  procedure,  only  those 
applicants whose proposals pass the evaluation for the first stage shall be requested 
to submit a complete proposal in the second stage. 

All applicants shall be swiftly informed of the results of the first stage evaluation. 

The  Commission  shall  adopt  and  publish  rules  governing  the  procedure  for  the 
submission  of  proposals,  as  well  as  the  related  evaluation,  selection  and  award 
procedures,  and  shall  publish  guides  for  applicants,  including  guidelines  for 
evaluators. In particular, it shall lay down detailed rules for the two-stage procedure 
for submission (including as regards the scope and nature of the first-stage proposal 
and  the  complete  second-stage  proposal)  and  rules  for  the  two-step  evaluation 
procedure. 

The  Commission  shall  provide  information  and  set  out  redress  procedures  for 
applicants. 

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4. 

1. 

2. 

3. 

4. 

5. 

The  Rules  to  ensure  consistent  verification  of  the  existence  and  legal  status  of 
participants,  as  well  as their  operational and financial capacities, in indirect actions 
supported through the form of a grant under the Seventh Framework Programme of 
the  European  Community 
technological  development  and 
research, 
demonstration activities (2007-2013) and under the Seventh Framework Programme 
of  the  European  Atomic  Energy  Community  (Euratom)  for  nuclear  research  and 
training activities (2007-2011) adopted by Commission Decision C(2007)/2466 of 13 
June 2007 will apply under the Framework Programme (2012-2013). 

for 

The Commission shall refrain from repeating such verification unless the situation of 
the participant concerned has changed. 

Article 16 
Appointment of independent experts 

The  Commission  shall  appoint  independent  experts  to  assist  with  evaluations  of 
proposals. 

For  coordination  and  support  actions,  as  referred  to  in  Article  13,  independent 
experts shall be appointed only if the Commission deems it appropriate. 

Independent experts shall be chosen on the basis of skills and knowledge appropriate 
to the tasks assigned to them. In cases where independent experts have to deal with 
classified  information,  they  shall  be  required  to  have  the  appropriate  security 
clearance for nomination. 

Independent  experts  shall  be  identified  and  selected  on  the  basis  of  calls  for 
applications  from  individuals  and  calls  addressed  to  relevant  organisations  such  as 
national  research  agencies,  research  institutions  or  enterprises  with  a  view  to 
establishing lists of suitable candidates. 

The  Commission  may,  if  deemed  appropriate,  select  any  individual  with  the 
appropriate skills from outside the lists. 

Appropriate  measures  shall  be  taken  to  ensure  a  reasonable  gender  balance  when 
appointing groups of independent experts. 

When  appointing  an  independent  expert,  the  Commission  shall  take  all  necessary 
steps to ensure that the expert is not faced with a conflict of interests in relation to the 
matter on which the expert is required to provide an opinion. 

The Commission shall sign an appointment letter between the Community and each 
independent  expert  based  on  the  model  appointment  letter  adopted  by  the 
Commission under the Seventh Framework Programme (2007-2011)20. 

The Commission shall publish once a year in any appropriate medium the list of the 
independent experts that have assisted it for the Framework Programme (2012-2013) 
and each specific programme. 

20 

C(2008) 4617. 

EN 

16 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

8. 

1. 

SUBSECTION 3 
IMPLEMENTATION AND GRANT AGREEMENTS 

Article 17 
General 

The participants shall implement the indirect action and shall take all necessary and 
reasonable  measures  to  that  end.  Participants  in  the  same  indirect  action  shall 
implement the work jointly and severally vis-à-vis the Community. 

The Commission shall draw up, on the basis of the model referred to in Article 18 
and taking into account the characteristics of the funding scheme concerned, a grant 
agreement between the Community and the participants. 

Participants shall make no commitments incompatible with the grant agreement. 

Where  a  participant  fails  to  comply  with  its  obligations  regarding  the  technical 
implementation  of  the  indirect  action,  the  other  participants  shall  comply  with  the 
grant  agreement  without  any  complementary  Community  contribution  unless  the 
Commission expressly relieves them of that obligation. 

If  the  implementation  of  an  action  becomes  impossible  or  if  the  participants  fail  to 
implement it, the Commission shall ensure the termination of the action. 

Participants  shall  ensure  that  the  Commission  is  informed  of  any  event  that  might 
affect the implementation of the indirect action or the interests of the Community. 

Where provided for in the grant agreement, the participants in the indirect action may 
subcontract certain elements of the work to be carried out to third parties. 

The Commission shall set out redress procedures for participants.  

Article 18 
General provisions of the grant agreement 

The model Grant Agreement adopted by the Commission Decision C(2007) 1509 of 
10  April  2007,  under  the  seventh  Framework  Programme  (2007-2011)  will  apply 
under the Framework Programme 2012-2013. 

The  grant  agreement  establishes  the  rights  and  obligations  of  the  participants  with 
regard  to  the  Community,  in  accordance  with  Decision  2006/970/Euratom,  this 
Regulation, the Financial Regulation, and the Implementing Rules, and in accordance 
with the general principles of Community law. 

It also establish, in accordance with the same conditions, the rights and obligations of 
legal entities who become participants when the indirect action is ongoing. 

2. 

Where  appropriate,  the  grant  agreement  specifies  which  part  of  the  Community 
financial contribution is based on the reimbursement of eligible costs, and which part 
is based on flat rates (including scale of unit costs) or lump-sums. 

EN 

17 

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3. 

4. 

5. 

6. 

7. 

8. 

9. 

10. 

1. 

2. 

The grant agreement specifies which changes in the composition of the consortium 
are to require the prior publication of a competitive call. 

The grant agreement requires the submission to the Commission of periodic progress 
reports concerning the implementation of the indirect action concerned. 

Where  appropriate,  the  grant  agreement  provides  that  the  Commission  is  to  be 
notified  in  advance  of  any  intended  transfer  of  ownership  of  foreground  to  a  third 
party. 

Where  the  grant  agreement  requires  participants  to  carry  out  activities  that  benefit 
third  parties,  the  participants  shall  advertise  this  widely  and  identify,  evaluate  and 
select third parties transparently, fairly and impartially. If provided for in the work-
programme,  the  grant  agreement  establishes  criteria  for  the  selection  of  such  third 
parties.  The  Commission  reserves  the  right  to  object  to  the  selection  of  the  third 
parties. 

The  Commission,  in  close  cooperation  with  Member  States,  established  this  model 
grant  agreement.  If  a  significant  modification  of  the  model  grant  agreement  proves 
necessary, the Commission shall, in close cooperation with Member States, revise it 
as appropriate. 

The model grant agreement reflects the general principles laid down in the European 
Charter for Researchers and the Code of Conduct for the Recruitment of Researchers. 
It  addresses,  as  appropriate,  synergies  with  education  at  all  levels;  readiness  and 
capacity to foster dialogue and debate on scientific issues and research results with a 
broad public beyond the research community; activities to increase the participation 
and role of women in research; and activities addressing socio-economic aspects of 
the research. 

The  model  grant  agreement  provides  for  supervision  and  financial  control  by  the 
Commission or any representative authorised by it, and the Court of Auditors. 

The  grant  agreement  lay  down  time  limits  for  participants  to  give  the  various 
notifications referred to in this Regulation. 

Article 19 
Provisions concerning access rights 
 use and dissemination 

The  grant  agreement  establishes  the  respective  rights  and  obligations  of  the 
participants  with  regard  to  access  rights,  use  and  dissemination,  in  so  far  as  those 
rights and obligations have not been laid down in this Regulation. 

For  those  purposes,  it  requires  the  submission  to  the  Commission  of  a  plan  for  the 
use and dissemination of foreground. 

The grant agreement specifies the conditions under which the participants may object 
to a technological audit of the use and dissemination of the foreground being carried 
out by certain authorised representatives of the Commission. 

EN 

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Article 20 
Provisions concerning termination 

The grant agreement specifies the grounds for its termination, in whole or in part, in particular 
for  non-compliance  with  this  Regulation,  non-performance  or  breach,  as  well  as  the 
consequences for participants of any non-compliance on the part of another participant. 

Article 21 
Specific provisions 

1. 

2. 

3. 

In the case of indirect actions to support existing research infrastructures and, where 
applicable,  new  research  infrastructures,  the  grant  agreement  lay  down  specific 
provisions  relating  to  confidentiality,  publicity  and  access  rights  and  commitments 
that might affect users of the infrastructure. 

In  the  case  of  indirect  actions  to  support  training  and  career  development  of 
researchers,  the  grant  agreement  lays  down  specific  provisions  on  confidentiality, 
access rights and commitments relating to the researchers benefiting from the action. 

To  safeguard  the  defence  interests  of  the  Member  States  within  the  meaning  of 
Article 24 of the Treaty, the grant agreement lays down, where appropriate, specific 
provisions on confidentiality, classification of information, access rights, transfer of 
ownership of foreground and the use thereof. 

Article 22 
Signature and accession 

The  grant  agreement  shall  enter  into  force  upon  signature  by  the  coordinator  and  the 
Commission.  

It shall apply to each participant that has formally acceded thereto. 

SUBSECTION 4 
CONSORTIA 

Article 23 
Consortium agreements 

1. 

Save where otherwise provided in the call for proposals, all participants in an indirect 
action  shall  conclude  an  agreement,  hereinafter  "the  consortium  agreement",  to 
govern inter alia the following: 

(a) 

the internal organisation of the consortium; 

(b) 

the distribution of the Community financial contribution; 

(c) 

rules  additional  to  those  in  Chapter  III  as  well  as  to  related  provisions  in  the 
grant agreement; 

(d) 

the settlement of internal disputes, including the cases of abuses of power; 

EN 

19 

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(e) 

liability, 
participants. 

indemnification  and  confidentiality  arrangements  between 

the 

2. 

The Commission shall establish and publish guidelines on the main issues that may 
be addressed by participants in their consortium agreements. 

Article 24 
Coordinator 

1. 

The  legal  entities  wishing  to  participate  in  an  indirect  action  shall  appoint  one  of 
their number to act as coordinator to carry out the following tasks in accordance with 
this Regulation, the Financial Regulation, Regulation (EC, Euratom) No 2342/2002, 
and the grant agreement: 

(a)  monitoring  compliance  by  participants  in  the  indirect  action  with  their 

obligations; 

(b)  verifying whether the legal entities identified in the grant agreement complete 

the necessary formalities for accession to the grant agreement; 

(c) 

receiving  the  Community  financial  contribution  and  distributing  it  in 
accordance with the consortium and grant agreement; 

(d)  keeping  the  records  and  financial  accounts  relevant  for  the  Community 
financial  contribution  and  informing  the  Commission  of  its  distribution  in 
accordance with Article 23(1)(b) and Article 35; 

(e) 

acting as an intermediary for efficient and correct communication between the 
participants and reporting regularly to the participants and to the Commission 
on the progress of the project. 

2. 

The coordinator shall be identified in the grant agreement. 

The  appointment  of  a  new  coordinator  shall  require  the  written  approval  of  the 
Commission. 

Article 25 
Changes in the consortium 

1. 

2. 

3. 

The  participants  in  an  indirect  action  may  agree  to  add  a  new  participant  or  to 
remove an existing participant in accordance with the provisions established to this 
effect in the consortium agreement. 

Any legal entity that joins an ongoing action shall accede to the grant agreement. 

In  specific  cases,  where  provided  for  in  the  grant  agreement,  the  consortium  shall 
publish a competitive call and advertise it widely using specific information support, 
particularly  internet  sites  for  the  Framework  Programme  2012-2013,  the  specialist 
press and brochures, and the national contact points set up by the Member States and 
associated countries for information and support. 

EN 

20 

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The consortium shall evaluate offers in the light of the criteria governing the initial 
action and with the assistance of independent experts appointed by the consortium, in 
accordance with the principles laid down in Articles 14 and 16 

4. 

The  consortium  shall  notify  any  proposed  change  in  its  composition  to  the 
Commission, which may object within 45 days of the notification. 

Changes  in  the  composition  of  the  consortium  associated  with  proposals  for  other 
changes  to  the  grant  agreement  which  are  not  directly  related  to  the  change  in 
composition shall be subject to written approval by the Commission. 

SUBSECTION 5 
MONITORING AND EVALUATION OF 
PROGRAMMES AND INDIRECT ACTIONS 
AND COMMUNICATION OF INFORMATION 

Article 26 
Monitoring and evaluation 

1. 

The Commission shall monitor the implementation of indirect actions on the basis of 
the  periodic  progress  reports  submitted  in  accordance  with  the  model  grant 
agreement referred to in Article 18. 

In  particular,  the  Commission  shall  monitor  the  implementation  of  the  plan  for  the 
use  and  dissemination  of  foreground,  submitted  in  accordance  with  the  second 
subparagraph of Article 19(1). 

For  those  purposes,  the  Commission  may  be  assisted  by  independent  experts 
appointed in accordance with Article 16. 

The  Commission  shall  set  up  and  maintain  an  information  system  to  enable  the 
monitoring referred to in paragraph 1 to be carried out  in  an efficient and coherent 
manner across the Framework Programme 2012 -2013. 

Subject  to  Article  3,  the  Commission  shall  publish  on  any  appropriate  medium 
information on the funded projects. 

The  monitoring  and  evaluation  referred 
in  Article  6  of  Decision  No 
…/…/Euratom21  shall  include  aspects  relating  to  the  application  of  this  Regulation 
and shall address the budgetary impact of the changes in the cost calculation regime 
as  compared  to  the  Sixth Framework  Programme  adopted  by  Council  Decision 
2002/668/Euratom22 and its effects on the administrative burden for participants.  

to 

The Commission shall appoint, in accordance with Article 16, independent experts to 
assist with evaluations required under the Framework Programme 2012-2013 and its 
specific  programme,  and,  as  deemed  necessary,  for  the  evaluation  of  previous 
Framework Programmes.  

OJ: Insert the number of the Decision referred to in recital 1. 
OJ L 232, 29.8.2002, p. 34. 

2. 

3. 

4. 

21 
22 

EN 

21 

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5. 

1. 

2. 

In addition, the Commission may set up groups of independent experts appointed in 
accordance  with  Article 16,  to  advise  on  the  design  and  implementation  of 
Community research policy. 

Article 27 
Information to be made available 

Subject  to  Article  3,  the  Commission  shall,  upon  request,  make  available  to  any 
Member  State  or  associated  country  any  useful  information  in  its  possession  on 
foreground  arising  from  work  carried  out  in  the  context  of  an  indirect  action, 
provided that the following conditions are met: 

(a) 

the information concerned is relevant to public policy; 

(b) 

the participants have not provided sound and sufficient reasons for withholding 
the information concerned. 

Under  no  circumstances  shall  the  provision  of  information  pursuant  to  paragraph  1 
be deemed to transfer to the recipient any rights or obligations of the Commission or 
of the participants. 

However,  the  recipient  shall  treat  any  such  information  as  confidential  unless  it 
becomes  public  or  is  made  available  publicly  by  the  participants,  or  unless  it  was 
communicated to the Commission without restrictions on its confidentiality. 

SECTION 3 
COMMUNITY FINANCIAL CONTRIBUTION 

SUBSECTION 1 
ELIGIBILITY FOR FUNDING AND FORMS OF GRANTS 

Article 28 
Eligibility for funding 

1. 

The  following  legal  entities  participating  in  an  indirect  action  may  receive  a 
Community financial contribution: 

(a) 

any  legal  entity  established  in  a  Member  State  or  an  associated  country,  or 
created under European Union law; 

(b) 

any international European interest organisation. 

2. 

In  the  case  of  a  participating  international  organisation,  other  than  an  international 
European interest organisation, or a legal entity established in a third country other 
than  an  associated  country,  a  Community  financial  contribution  may  be  granted 
provided that at least one of the following conditions is met: 

(a) 

provision  is  made  to  that  effect  in the specific programmes or in the relevant 
work programme; 

EN 

22 

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(b) 

the contribution is essential for carrying out the indirect action; 

(c) 

the  contribution  is  provided  for  in  a  bilateral  scientific  and  technological 
agreement or any other arrangement between the Community and the country 
in which the legal entity is established. 

Article 29 
Forms of grants 

The Community financial contribution for grants identified in the Annex II to the Decision No 
…/…Euratom23 shall be based on the reimbursement, in whole or in part, of eligible costs. 

However,  the  Community  financial  contribution  may  take  the  form  of  flat  rate  financing, 
including scale of unit costs, or lump sum financing, or it may combine the reimbursement of 
eligible costs with flat rates and lump sums. The Community financial contribution may also 
take the form of scholarships or prizes. 

The work programmes and calls for proposals shall specify the forms of grants to be used in 
the actions concerned. 

Article 30 
Reimbursement of eligible costs 

1. 

Indirect actions financed by grants shall be co-financed by the participants.  

The Community financial contribution to reimburse eligible costs shall not give rise 
to a profit. 

2. 

3. 

Receipts shall be taken into consideration for the payment of the grant at the end of 
the implementation of the action. 

In  order  to  be  considered  eligible,  costs  incurred  for  the  implementation  of  an 
indirect action shall meet the following conditions: 

(a) 

they must be actual; 

(b) 

(c) 

they  must  have  been  incurred  during  the  duration  of  the  action,  with  the 
exception of final reports when provided for in the grant agreement; 

they must have been determined in accordance with the usual accounting and 
management  principles  and  practices  of  the  participant  and  used  for  the  sole 
purpose  of  achieving  the  objectives  of  the  indirect  action  and  its  expected 
results, in a manner consistent with the principles of economy, efficiency and 
effectiveness; 

(d) 

they must be recorded in the accounts of the participant and, in the case of any 
contribution  from  third  parties,  they  must  be  recorded  in  the  accounts  of  the 
third parties; 

23 

OJ: Insert the number of the Decision referred to in recital 1. 

EN 

23 

   EN 

                                                 
(e) 

they must be exclusive of non-eligible costs, in particular identifiable indirect 
taxes including value added tax, duties, interest owed, provisions for possible 
future losses or charges, exchange losses, cost related to return on capital, costs 
declared  or  incurred,  or  reimbursed  in  respect  of  another  Union  project,  debt 
and debt service charges, excessive or reckless expenditure, and any other cost 
that does not meet the conditions referred to in points (a) to (d). 

For the purposes of point (a) of the first subparagraph, average personnel costs may 
be  used  if  they  are  consistent  with  the  management  principles  and  accounting 
practices of the participant and do not differ significantly from actual costs. 

While the Community financial  contribution shall be calculated by reference to the 
cost  of  the  indirect  action  as  a  whole,  its  reimbursement  shall  be  based  on  the 
reported costs of each participant. 

Article 31 
Direct eligible costs and indirect eligible costs 

Eligible  costs  shall  be  composed  of  costs  attributable  directly  to  the  action, 
hereinafter  "direct  eligible  costs"  and,  where  applicable,  of  costs  that  are  not 
attributable directly to the action, but which have been incurred in direct relationship 
with  the  direct  eligible  costs  attributed  to  the  action,  hereinafter  "indirect  eligible 
costs". 

The  reimbursement  of  participants'  costs  shall  be  based  on  their  eligible  direct  and 
indirect costs. 

In  compliance  with  Article  30(3)(c),  a  participant  may  use  a  simplified  method  for 
calculating its indirect eligible cost at the level of its legal entity if this method is in 
accordance  with  its  usual  accounting  and  management  principles  and  practices. 
Principles  to  be  followed  in  this  respect  shall  be  set  out  in  the  model  grant 
agreement. 

The grant agreement may provide that the reimbursement of indirect eligible costs is 
to  be  limited  to  a  maximum  percentage  of  the  direct  eligible  costs,  excluding  the 
direct eligible costs for subcontracting, in particular in the case of coordination and 
support  actions,  and,  where  appropriate,  actions  for  the  training  and  career 
development of researchers. 

By way of derogation from paragraph 2, for the coverage of indirect eligible costs a 
participant may opt for a flat-rate of its total direct eligible costs, excluding its direct 
eligible costs for subcontracting or reimbursement of third parties' costs. 

The Commission shall establish appropriate flat rates based on a close approximation 
of the real indirect costs concerned, in accordance with the Financial Regulation and 
Regulation (EC, Euratom) No 2342/2002.  

Non-profit  public  bodies,  secondary  and  higher  education  establishments,  research 
organisations and SMEs that are unable to identify with certainty their real indirect 
costs for the action concerned, when participating in funding schemes which include 

4. 

1. 

2. 

3. 

4. 

5. 

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24 

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research and technological development and demonstration activities, as referred to 
in Article 32, may opt for a flat-rate equal to 60% of the total direct eligible costs. 

6. 

All flat rates shall be set out in the model grant agreement. 

Article 32 
Upper funding limits 

1. 

For  research  and  technological  development  activities,  the  Community  financial 
contribution may reach a maximum of 50% of the total eligible costs.  

2. 

3. 

4. 

5. 

6. 

1. 

However,  in  the  case  of  non-profit  public  bodies,  secondary  and  higher  education 
establishments, research organisations and SMEs, it may reach a maximum of 75% 
of the total eligible costs. 

For  demonstration  activities,  the  Community  financial  contribution  may  reach  a 
maximum of 50% of the total eligible costs. 

For  activities  supported  by  coordination  and  support  actions,  and  actions  for  the 
the  Community  financial 
training  and  career  development  of  researchers, 
contribution may reach a maximum of 100% of the total eligible costs. 

For  management  activities,  including  certificates  for  the  financial  statements,  and 
other  activities  not  covered  by  paragraphs  1,  2  and  3,  the  Community  financial 
contribution may reach a maximum of 100% of the total eligible costs. 

The other activities referred to in the first subparagraph include, inter alia, training in 
actions  that  do  not  fall  under  the  funding  scheme  for  the  training  and  career 
development of researchers, coordination, networking, and dissemination. 

For the purposes of paragraphs 1 to 4, eligible costs and receipts shall be taken into 
consideration in order to determine the Community financial contribution. 

Paragraphs  1  to  5  shall  apply,  as  appropriate,  to  indirect  actions  where  flat  rate 
financing or lump sum financing is used for the whole indirect action. 

Article 33 
Reporting and audit of eligible costs 

Periodic  reports  shall  be  submitted  to  the  Commission  regarding  eligible  costs, 
financial  interest  yielded  by  pre-financing,  and  receipts  in  relation  to  the  indirect 
action concerned and, where appropriate, a certificate for the financial statements, in 
accordance  with  the  Financial  Regulation  and  Regulation  (EC,  Euratom)  No 
2342/2002. 

Any co-financing of the action concerned shall be reported and, where appropriate, 
certified at the end of the action. 

2. 

Notwithstanding  the  Financial  Regulation  and  Regulation  (EC,  Euratom)  No 
2342/2002,  a  certificate  for  the  financial  statements  shall  be  compulsory  only 

EN 

25 

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3. 

1. 

2. 

3. 

4. 

whenever the cumulative amount of interim payments and balance payments made to 
a participant is equal to EUR 375 000 or more for an indirect action.  

However,  for  indirect  actions  of  duration  of  two  years  or  less,  not  more  than  one 
certificate on the financial statements shall be requested from the participant, at the 
end of the project. 

Certificates  for  the  financial  statements  shall  not  be  required  for  indirect  actions 
entirely reimbursed by means of lump sums or flat rates. 

In  the  case  of  public  bodies,  research  organisations,  and  higher  and  secondary 
education establishments, a certificate for the financial statements as required under 
paragraph 1 may be established by a competent public officer. 

Article 34 
Networks of Excellence 

The work programme shall provide for the forms of grants to be used for Networks 
of Excellence. 

Where  the  Community  financial  contribution  to  Networks  of  Excellence  takes  the 
form of a lump sum, it shall be calculated according to the number of researchers to 
be  included  in  the  Network  of  excellence  and  the  duration  of  the  action.  The  unit 
value for lump sums paid shall be EUR 23 500 per year and per researcher. 

That amount shall be adjusted by the Commission in accordance with the Financial 
Regulation and Regulation (EC, Euratom) No 2342/2002. 

The  work  programme  shall  establish  the  maximum  number  of  participants  and, 
where appropriate, the maximum number of researchers that may be used as the basis 
for the calculation of the maximum lump sum. However, participants over and above 
the  maximum  number  for  the  establishment  of  the  financial  contribution  may 
participate as appropriate. 

The  payment  of  the  financial  contribution  shall  be  effected  by  means  of  periodic 
releases. 

Those periodic releases shall be made according to the assessment of the progressive 
implementation  of  the  Joint  Programme  of  Activities  through  measurement  of  the 
integration  of  research  resources  and  capacities  based  on  the  basis  of  performance 
indicators negotiated with the consortium and specified in the grant agreement. 

SUBSECTION 2 
PAYMENT, DISTRIBUTION, RECOVERY 
AND GUARANTEES 

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26 

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Article 35 
Payment and distribution 

1. 

2. 

The  Community  financial  contribution  shall  be  paid  to  the  participants  via  the 
coordinator without undue delay. 

The coordinator shall keep records making it possible to determine at any time what 
portion of the Community funds has been distributed to each participant. 

The  coordinator  shall  communicate  that  information  to  the  Commission  upon 
request. 

Article 36 
Recovery 

The Commission may adopt a recovery decision in accordance with the Financial Regulation.  

Article 37 
Risk avoidance mechanism 

1. 

2. 

3. 

4. 

5. 

6. 

The  financial  responsibility  of  each  participant  shall  be  limited  to  its  own  debt, 
subject to paragraphs 2 to 5. 

In  order  to  manage  the  risk  associated  with  the  non-recovery  of  sums  due  to  the 
Community,  the  Commission  has  establish  and  operates  a  "Participant  guarantee 
fund" (hereinafter "the Fund") in accordance with the Annex. 

Financial interests generated by the Fund shall be added to the Fund and shall serve 
exclusively  for  the  purposes  set  out  in  point  3  of  the  Annex,  without  prejudice  to 
point 4 thereto. 

The contribution to the Fund by a participant to an indirect action taking the form of 
a  grant  shall  not  exceed  5  %  of  the  Community  financial  contribution  due  to  the 
participant.  At  the  end  of  the  action  the  amount  contributed  to  the  Fund  shall  be 
returned to the participant, via the coordinator, subject to paragraph 4. 

If  the  interests  generated  by  the  Fund  are  insufficient  to  cover  sums  due  to  the 
Community,  the  Commission  may  deduct  from  the  amount  to  be  returned  to  a 
participant a maximum of one per cent of the Community financial contribution to it. 

The  deduction  referred  to  in  paragraph  4  shall  not  apply  to  public  bodies,  legal 
entities whose participation in the indirect action is guaranteed by a Member State or 
an associated country, and higher and secondary education establishments. 

The Commission shall only verify ex-ante the financial capacity of coordinators, and 
of participants other than those referred to in paragraph 5 applying for a Community 
financial  contribution  in  an  indirect  action  in  excess  of  EUR  500  000,  unless  there 
are  exceptional  circumstances  when,  on  the  basis  of  information  already  available, 
there are justified grounds to doubt the financial capacity of these participants. 

EN 

27 

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7. 

The Participant guarantee fund shall be considered as a sufficient guarantee under the 
Financial  Regulation.  No additional  guarantee  or  security  may  be  requested  from 
participants or imposed on them. 

CHAPTER III 
DISSEMINATION AND USE, AND ACCESS RIGHTS 

SECTION 1 
FOREGROUND 

Article 38 
Specific rules for fusion energy research 

The  rules  set  out  in  this  Chapter  apply  without  prejudice  to  the  specific  rules  for  activities 
under the thematic area "Fusion energy research" set out in Chapter IV. 

EN 

28 

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SUBSECTION 1 
OWNERSHIP 

Article 39 
Ownership of foreground 

1. 

2. 

Foreground  arising  from  work  carried  out  under  indirect  actions  other  than  those 
referred  to  in  paragraph  3  shall  be  the  property  of  the  participant  carrying  out  the 
work generating that foreground. 

If employees or other personnel working for a participant are entitled to claim rights 
to foreground, the participant shall ensure that it is possible to exercise those rights in 
a manner compatible with its obligations under the grant agreement. 

3. 

Foreground shall be the property of the Community in the following cases: 

(a) 

coordination  and  support  actions  consisting  in  the  purchase  of  goods  or 
services  subject  to  the  rules  on  public  procurement  set  out  in  the  Financial 
Regulation; 

(b) 

coordination and support actions relating to independent experts. 

Article 40 
Joint ownership of foreground 

Where several participants have jointly carried out work generating foreground and 
where their respective share of the work cannot be ascertained, they shall have joint 
ownership of such foreground.  

They  shall  establish  an  agreement  regarding  the  allocation  and  terms  of  exercising 
that joint ownership in accordance with the terms of the grant agreement. 

Where  no  joint  ownership  agreement  has  yet  been  concluded,  each  of  the  joint 
owners shall be entitled to grant non-exclusive licences to third parties, without any 
right to sub-licence, subject to the following conditions: 

(a) 

prior notice must be given to the other joint owners; 

(b) 

fair and reasonable compensation must be provided to the other joint owners. 

Upon request, the Commission shall give guidance on possible aspects to be included 
in the joint ownership agreement. 

Article 41 
Transfer of foreground 

The owner of the foreground may transfer it to any legal entity, subject to paragraphs 
2 to 5 of this Article and Article 42. 

1. 

2. 

3. 

1. 

EN 

29 

   EN 

2. 

3. 

4. 

5. 

Where a participant transfers ownership of foreground, it shall pass on its obligations 
regarding that foreground to the assignee, including the obligation to pass them on to 
any subsequent assignee, in accordance with the grant agreement. 

Subject to its obligations concerning confidentiality, where the participant is required 
to pass on access rights, it shall give prior notice to the other participants in the same 
action,  together  with  sufficient  information  concerning  the  new  owner  of  the 
foreground to permit them to exercise their access rights under the grant agreement. 

However,  the  other  participants  may,  by  written  agreement,  waive  their  right  to 
individual prior notice in the case of transfers of ownership from one participant to a 
specifically identified third party. 

Following notification in accordance with the first subparagraph of paragraph 3, any 
other participant may object to any transfer of ownership on the ground that it would 
adversely affect its access rights. 

Where any of the other participants demonstrate that their rights would be adversely 
affected, the intended transfer shall not take place until agreement has been reached 
between the participants concerned. 

Where appropriate, the grant agreement may provide, that the Commission is to be 
notified in advance of any intended transfer of ownership or any intended grant of a 
licence  to  a  third  party  established  in  a  third  country  not  associated  with  the 
Framework Programme 2012-2013. 

Article 42 
Preservation of European competitiveness, 
 defence interest of Member States and ethical principles 

The Commission may object to the transfer of ownership of foreground, or to the granting of a 
licence regarding foreground, to third parties established in a third country not associated with 
the Framework Programme 2012-2013, if it considers that this is not in accordance with the 
interests  of  developing  the  competitiveness  of  the  European  economy  or  with  the  defence 
interests  of  the  Member  States  within  the  meaning  of  Article  24  of  the  Treaty  or  is 
inconsistent with ethical principles. 

In such cases, the transfer of ownership or granting of a licence shall not take place unless the 
Commission is satisfied that appropriate safeguards are put in place. 

SUBSECTION 2 
PROTECTION, PUBLICATION, 
DISSEMINATION AND USE 

Article 43 
Protection of foreground 

Where foreground is capable of industrial or commercial application, its owner shall provide 
for its adequate and effective protection, having due regard to its legitimate interests and the 

EN 

30 

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legitimate  interests,  particularly  the  commercial  interests,  of  the  other  participants  in  the 
indirect action concerned. 

Where a participant that is not the owner of the foreground invokes its legitimate interests, it 
shall, in any given instance, show that it would suffer disproportionately great harm. 

Where the foreground is capable of industrial or commercial application and its owner does 
not protect it, and does not transfer it to another participant, to an affiliated entity established 
in a Member State or associated country or to any other third party established in a Member 
State or associated country along with the associated obligations in accordance with Article 
41, no dissemination activities may take place before the Commission has been informed. 

In  such  cases,  the  Commission  may,  with  the  consent  of  the  participant  concerned,  assume 
ownership  of  that  foreground  and  adopt  measures  for  its  adequate  and  effective  protection. 
The  participant  concerned  may  refuse  consent  only  if  it  can  demonstrate  that  its  legitimate 
interests would suffer disproportionately great harm. 

Article 44 
Statement relating to Community financial support 

All  publications,  patent  applications  filed  by  or  on  behalf  of  a  participant,  or  any  other 
dissemination  relating  to  foreground  shall  include  a  statement,  which  may  include  visual 
means, that the foreground concerned was generated with the assistance of financial support 
from the Community. 

The terms of that statement shall be established in the grant agreement. 

Article 45 
Use and dissemination 

1. 

2. 

3. 

4. 

The participants shall use the foreground that they own, or ensure that it is used. 

Each  participant  shall  ensure  that  the  foreground  of  which  it  has  ownership  is 
disseminated  as  swiftly  as  possible.  If  it  fails  to  do  so  the  Commission  may 
disseminate that foreground in accordance with Article 12 of the Treaty. 

The grant agreement may set out time limits in this respect. 

Dissemination  activities  shall  be  compatible  with  the  protection  of  intellectual 
property rights, confidentiality obligations, and the legitimate interests of the owner 
of the foreground and the defence interests of the Member States within the meaning 
of Article 24 of the Treaty. 

Prior  notice  of  any  dissemination  activity  shall  be  given  to  the  other  participants 
concerned. 

Following notification, any of those participants may object if they consider that their 
legitimate  interests  in  relation  to  their  foreground  or  background  could  suffer 
disproportionately great harm. In such cases, the dissemination activity may not take 
place unless appropriate steps are taken to safeguard these legitimate interests. 

EN 

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SECTION 2 
ACCESS RIGHTS TO BACKGROUND AND FOREGROUND 

Article 46 
Background covered 

Participants  may  define  the  background  needed  for  the  purposes  of  the  indirect  action  in  a 
written agreement and, where appropriate, may exclude specific background. 

1. 

2. 

3. 

4. 

5. 

6. 

1. 

2. 

Article 47 
Principles 

All requests for access rights shall be made in writing. 

Unless otherwise agreed by the owner of the foreground or background, access rights 
shall confer no entitlement to grant sub-licences. 

Exclusive licences for foreground or background may be granted, subject to written 
confirmation by all the other participants that they waive their access rights thereto. 

Without  prejudice  to  paragraph  3,  any  agreement  providing  access  rights  to 
foreground or background to participants or third parties shall be such as to ensure 
that potential access rights for other participants are maintained. 

Without prejudice to Articles 48 and 49 and the grant agreement, participants in the 
same  action  shall  inform  each  other  as  soon  as  possible  of  any  limitation  on  the 
granting  of  access  rights  to  background,  or  of  any  other  restriction  that  might 
substantially affect the granting of access rights. 

The  termination  of  its  participation  in  an  indirect  action  shall  in  no  way  affect  the 
obligation  of  that  participant  to  grant  access  rights  to  the  remaining  participants  in 
the same action under the terms and conditions established by the grant agreement. 

Article 48 
Access rights for the implementation of indirect actions 

Access  rights  to  foreground  shall  be  granted  to  the  other  participants  in  the  same 
indirect  action,  if  this  is  needed  to  enable  those  participants  to  carry  out  their  own 
work under that indirect action. 

Such access rights shall be granted on a royalty-free basis. 

Access  rights  to  background  shall  be  granted  to  the  other  participants  in  the  same 
indirect  action,  if  this  is  needed  to  enable  those  participants  to  carry  out  their  own 
work under that indirect action provided that the participant concerned is entitled to 
grant them. 

Such access rights shall be granted on a royalty-free basis, unless otherwise agreed 
by all participants before their accession to the grant agreement. 

EN 

32 

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Article 49 
Access rights for use 

1. 

2. 

3. 

4. 

Participants in the same indirect action shall enjoy access rights to foreground, if this 
is needed to use their own foreground. 

Subject  to  agreement,  such  access  rights  shall  be  granted  either  under  fair  and 
reasonable conditions or be royalty-free. 

Participants  in  the  same  indirect  action  shall  enjoy  access  rights  to  background,  if 
this is needed to use their own foreground provided that the participant concerned is 
entitled to grant them. 

Subject  to  agreement,  such  access  rights  shall  be  granted  either  under  fair  and 
reasonable conditions or royalty-free. 

An  affiliated  entity  established  in  a  Member  State  or  associated  country  shall  also 
have access rights, as referred to in paragraphs 1 and 2, to foreground or background 
under  the  same  conditions  as  for  the  participant  to  which  it  is  affiliated,  unless 
otherwise provided for in the grant agreement or consortium agreement. 

A request for access rights under paragraphs 1, 2 and 3 may be made up to one year 
after either of the following events: 

(a) 

the end of the indirect action; 

(b) 

termination of its participation by the owner of the background or foreground 
concerned. 

However, the participants concerned may agree on a different time limit. 

CHAPTER IV 
SPECIFIC RULES FOR PARTICIPATION IN 
ACTIVITIES UNDER THE THEMATIC AREA 
FUSION ENERGY RESEARCH 

Article 50 
Scope 

The  rules  set  out  in  this  Chapter  apply  to  activities  under  the  thematic  area  Fusion  energy 
research as set out in the specific programme. In the event of any conflict between the rules 
set out in this Chapter and those set out in Chapters II and III, the rules set out in this Chapter 
shall apply. 

EN 

33 

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Article 51 
Implementation of fusion energy research 

Activities under the thematic area "Fusion energy research" may be implemented on the basis 
of procedures and rules for dissemination and use as set out in the following frameworks: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

The  Contracts  of  Association,  concluded  between  the  Community  and  Member 
States  or  associated  third  countries  or  legal  entities  within  Member  States  or 
associated third countries; 

The  European  Fusion  Development  Agreement  (EFDA),  concluded  between  the 
Community  and  organisations  in,  or  acting  for,  Member  States  and  associated 
countries; 

The  European  Joint  Undertaking  for  International  Thermonuclear  Experimental 
Reactor (ITER), based on the provisions of Title II, Chapter 5 of the Treaty; 

International  agreements  relating  to  cooperation  with  third  countries,  or  with  any 
legal entity which may be established by such an agreement, in particular the ITER 
and the Broader Approach agreements; 

Any other multilateral agreement concluded between the Community and associated 
organisations, in particular the Agreement on Staff Mobility; 

Cost sharing actions to promote and contribute to fusion energy research with bodies 
in  Member  States  or  countries  associated  with  the  Framework  Programme  2012-
2013 with which there is no Contract of Association. 

Article 52 
Community financial contribution 

1. 

The Contracts of Association referred to in point (a) of Article 51 and cost sharing 
actions  referred  to  in  point  (f)  of  Article  51  shall  establish  the  rules  relating  to  the 
Community financial contribution to the activities concerned. 

The  annual  rate  for  the  Community  financial  contribution  ("baseline  support"), 
established in the Contracts of Association, shall not exceed 20% of the expenditure 
of  the  Associations  on  activities  specified  in  their  Annual  Work  Programmes  over 
the  total  duration  of  the  Seventh  Framework  Programme  of  the  Community  (2007-
2011)  adopted  by  the  Council  Decision  2006/970/Euratom  and  the  Framework 
Programme 2012-2013. 

2. 

After consultation of the consultative committee for the  fusion  programme referred 
to  in  Article  7  of  Council  Decision No  …/…/Euratom24,  the  Commission  may 
finance: 

(a) 

under the Contracts of Association at a rate not exceeding 40 %: expenditure of 
specific  cooperative  projects  between  the  Associates  which  have  been 
recommended for priority support by the consultative committee and approved 

24 

OJ: Fill in the number and date of the Decision. 

EN 

34 

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by the Commission; priority support will concentrate on actions of relevance to 
the ITER/DEMO, except in the case of projects already awarded priority status 
in earlier framework programmes; 

(b) 

actions  carried  out  under  the  European  Fusion  Development  Agreement 
including procurements, or under the Joint Undertaking referred to in point (c) 
of Article 51; 

(c) 

actions carried out under the Agreement on Staff Mobility. 

3. 

4. 

In  the  case  of  projects  and  actions  receiving  a  financial  contribution  according  to 
points (a) or (b) of paragraph 2, all the legal entities referred to in points (a) and (b) 
of Article 51  shall  have the right to take  part in  the experiments  carried  out on the 
equipment concerned. 

The  Community  financial  contribution  to  actions  carried  out  under  an  international 
cooperation agreement as referred to in point (d) of Article 51 shall be determined in 
accordance with the terms of this agreement or by any legal entity established by the 
agreement.  The  Community  may  manage  its  participation  and  its  financial 
contribution to such an agreement through any appropriate legal entity. 

CHAPTER V 
FINAL PROVISIONS 

Article 53 

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

It shall apply from 1 January 2012. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

EN 

35 

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ANNEX  

Participant guarantee fund 

1. 

2. 

3. 

The  Fund  is  managed  by  the  Community represented by the Commission acting as 
executive  agent  on  behalf  of  the  participants,  under  conditions  established  by  the 
model grant agreement. 

The  Commission  entrusts  the  financial  management  of  the  Fund  either  to  the 
European  Investment  Bank  or,  in  accordance  with  Article  13(b),  to  an  appropriate 
financial  institution  (hereinafter  the  "depository  bank").  The  depository  bank  shall 
manage the Fund pursuant to a brief by the Commission. 

The  Commission  may  offset,  from  the  initial  pre-financing  it  will  pay  to  the 
consortium,  the  participants'  contribution  to  the  Fund,  and  pay  it  on  their  behalf  to 
the Fund. 

Where  amounts  are  due  to  the  Community  by  a  participant,  the  Commission  may, 
without prejudice to penalties which may be imposed on the defaulting participant in 
accordance with the Financial Regulation either:  

(a) 

order the depositary bank to directly transfer the amount due from the Fund to 
the  coordinator  of  the  indirect  action  if  it  is  still  on-going  and  the  remaining 
participants  agree  to  implement  it  to  the  identical  regarding  its  objectives,  in 
accordance  with  Article  17(4).  Amounts  transferred  from  the  Fund  will  be 
regarded as Community financial contribution; or 

(b) 

recover effectively the said amount from the Fund should the indirect action be 
terminated or already completed.  

The  Commission  will  emit  to  the  benefit  of  the  Fund  a  recovery  order  against  that 
participant.  The  Commission  may  adopt  to  that  end  a  recovery  decision  in 
accordance with the Financial Regulation. 

4. 

The  amounts  recovered  from  the  Fund  during  the  Framework  Programme  (2012-
2013)  will  constitute  revenue  assigned  to  it  within  the  meaning  of  Article  18(2)  of 
the Financial Regulation. 

Once the implementation of all grants under the Framework Programme (2012-2013) 
is  complete,  any  sums  outstanding  from  the  Fund  will  be  recovered  by  the 
Commission and entered into the budget of the Community, subject to decisions on 
the Eighth Framework Programme. 

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