Source: EURLEX
Language: en
Format: md

[**Avis juridique important**](../../../editorial/legal_notice.htm)

*|*

# 52001PC0279(01)

**Proposal for a Council Decision adopting a specific programme 2002-2006 for research, technological development and demonstration aimed at integrating and strengthening the European Research Area /\* COM/2001/0279 final - CNS 2001/0122 \*/** 
  
*Official Journal 240 E , 28/08/2001 P. 0194 - 0226*

  

Proposal for a COUNCIL DECISION adopting a specific programme 2002-2006 for research, technological development and demonstration aimed at integrating and strengthening the European Research Area

EXPLANATORY MEMORANDUM

At its meeting on 23 and 24 March 2001, continuing its support for the European Research Area project as expressed in Lisbon, Feira and Nice, the European Council called upon the Council and the European Parliament to adopt the research Framework Programme 2002-2006 proposed by the Commission by June 2002.

In doing so, it stressed in particular that, in the context of a set of well defined priorities, full benefit should be derived from the new instruments designed to give this new Framework Programme the means to help bring about the European Research Area, in accordance with its objective.

The Commission submitted its Framework Programme proposal on 21 February 2001 [1]. Since then, Council and Parliament have had the opportunity to begin examining and discussing the proposal. On 2 and 3 March, at their informal meeting in Uppsala, the Research Ministers held a first exchange of views on it, and the Council bodies have started to examine it.

[1] COM (2001) 94.

For its part, the European Parliament has had three opportunities to debate this proposal, the last time on the basis of answers given by the Commission to a detailed questionnaire.

By presenting its proposals concerning the specific programmes through which the Framework Programme is to be implemented at this point in time, the Commission intends to facilitate the debate that has begun within the institutions, thus enabling it to take place in the best possible conditions of information.

With the same aim in mind, the Commission is at the same time presenting a communication on the possible ways of implementing Article 169 of the Treaty to enable participation by the Community in programmes implemented jointly by several Member States, within the general context of the networking of national research programmes.

The Commission will also be submitting proposals shortly concerning the "rules for participation and dissemination" applying to the Framework Programme.

The following main elements of these proposals, in particular, will help to give a better picture of the organisation, content and implementation arrangements proposed for the new Framework Programme:

- the structure in terms of specific programmes;

- the new instruments and the way they will operate;

- the scientific and technological content that is envisaged;

- the activities foreseen in the EURATOM area.

The structure

For the implementation of the Framework Programme, a structure based on five specific programmes is proposed:

- For the EC Framework Programme:

- A specific programme on "Integrating and strengthening the European Research Area" for the two blocks of activities "Integrating research" and "Strengthening the foundations of the European Research Area" of the Framework Programme proposal.

- A specific programme on "Structuring the European Research Area".

- A specific programme for JRC activities.

- For the EURATOM Framework Programme:

- A specific programme for all the indirect actions in the fields of nuclear fission and fusion.

- A specific programme for JRC activities.

This structure derives directly from that of the Framework Programme and is a faithful reflection of the underlying policy objectives. Simple and easy to follow, it will make it possible to ensure the coherent implementation of the different categories of actions proposed, while respecting the overall objective of making a reality of the European Research Area and taking account of the specific features of these actions.

It brings together, on the one hand, all research and research-coordination activities and, on the other, activities aimed at structuring several key aspects of research activity on a European scale.

In each case, coherent implementation can be ensured in particular by means of a single programme committee with a composition varying according to the fields concerned.

In addition, the particular nature of the JRC's activities justifies a separate specific programme both for the EC and for EURATOM.

On the basis of the indications given in Annex II to the Framework Programme proposal, and thanks to them, correspondence is ensured with the various activities foreseen in the Treaty both in terms of content and budget.

The new instruments

The contribution of the new Framework Programme to bringing about the European Research Area is based mainly on the means of intervention envisaged for implementing it, in particular the three new instruments, namely the networks of excellence, integrated projects and participation by the Community in jointly implemented national programmes.

The introduction of these new instruments, which was favourably received by the Council and the European Parliament in their resolutions on the European Research Area, is in response to the need for a change in the ways in which the Community intervenes in the research field, as stressed in various reports on Community research policy, and in particular the recent five-year assessment of the Framework Programme.

Work on the development of these instruments started as soon as the Framework Programme proposal was presented. Many contacts and detailed discussions about the way in which they will operate in practice have taken place between the Commission Services, the national authorities and the relevant programme users within research organisations, universities and businesses.

Two seminars were specifically organised on this topic on 19 and 20 April 2001 [2].

[2] Working papers are available on the following website: www.http://europa.eu.int/comm/research/.

On the basis of the results of this detailed work and discussions, the basic principles and the general conditions governing the operation of these new instruments have been established. They are presented in Annex III to the specific programme proposals and concern in particular:

- the objectives specifically pursued with each of the instruments;

- the type of activities involved;

- the general conditions governing the formation, operation and development of partnerships;

- the general conditions governing support by the Community.

These principles and conditions are designed to ensure that the new instruments will make an effective contribution towards attaining the objectives set, namely the deep integration of research and innovation activities in Europe under conditions of operational autonomy and flexibility, characteristics of the means of intervention foreseen for the new Framework Programme.

Their application will be accompanied by measures designed to derive full benefit from all the research and innovation potential present in Europe, in particular by encouraging SME participation in the activities concerned.

These remarks apply essentially to the networks of excellence and the integrated projects. Community participation in jointly implemented national programmes under Article 169 of the Treaty is of a different nature, necessitating and justifying separate treatment. The objective of the communication which the Commission is presenting on this subject, in parallel with these proposals, is to launch the political debate that needs to take place on this means of implementation within the Framework Programme.

The scientific and technological content

Alongside its organisation as a structuring instrument designed to integrate research efforts, a basic feature of the new Framework Programme underlined by the Stockholm European Council is the concentration of resources on a limited number of well defined priorities.

This is reflected in the specific programme proposals which explain in more detail, expand upon and clarify the indications given in the Framework Programme proposal as regards objectives, fields covered and, within each field, the particular themes taken into consideration.

The precise subjects of research that will be carried out will be determined when the work programmes are drawn up and the programmes of activities for the networks of excellence and integrated projects are formulated.

The objectives, content and implementation arrangements for activities to be carried out under the specific programmes have been the subject of an ex ante evaluation. In this context, a special effort has been made to define, in accordance with the indications given in the Framework Programme proposal, verifiable, measurable objectives where this is possible and useful.

Alongside the activities carried out in the context of the major priority themes, the specific programme on "Integrating and strengthening the European Research Area" will comprise several categories of activities that are new or carried out in new ways.

These are:

- Activities carried out under the heading "Anticipating the EU's scientific and technological needs" in response to the needs of Community policies, research at the frontiers of knowledge and new unforeseen requirements.

They will be conducted on the basis of a procedure for the multiannual programming of activities, carried out partly by means of an annual exercise of evaluation and selection of research themes.

- Activities in support of the networking of national research programmes and the coordination of research and innovation activities and policies. Light and flexible mechanisms will be used to this end.

International cooperation represents an important dimension of the Framework Programme. Activities will be carried out in this field in various forms: in the specific programme on "Integrating and strengthening the European Research Area" on the one hand by opening up the networks of excellence and integrated projects to third country researchers and entities and, on the other hand, through certain specific activities; in the programme "Structuring the European Research Area" by means of support for the international mobility of European researchers and third country researchers.

Under the heading of strengthening the foundations of the European Research Area, activities will be carried out in support of cooperation with and between the organisations concerned with European science and technology cooperation. These organisations will in fact have full access to all the activities under the programmes.

The description of the content of the programme on "structuring the European Research Area" specifies the implementation conditions and the possible themes for structuring activities, including a strengthening of the networking of innovation stakeholders; the various new forms of support for mobility; the integrated initiatives with regard to infrastructures and the themes and arrangements for activities in the field of relations between science and society.

In the implementation of the specific programmes, the regional dimension of European research will be fully taken into account in its different aspects, as well as the recognised role of regions in the process of innovation.

EURATOM activities

By their nature and on account of their different legal basis, the activities carried out in the EURATOM field have a particular character. In addition, in the nuclear field the issue of the European Research Area takes a specific form.

It might seem easier to make a reality of the European Research Area in the field of nuclear fission than in the rest of science and technology, given the limited size of the scientific and industrial community concerned and the existence within it of long-standing collaboration links.

The European Research Area is already to a large extent a reality in the field of controlled nuclear fusion thanks to the existence of an integrated European programme on research into magnetic fusion.

The proposal for a specific programme for indirect nuclear research activities substantially expands upon and clarifies the indications given in the corresponding part of the EURATOM Framework Programme proposal.

In the field of fission, the Framework Programme proposal identifies a thematic area: waste treatment and storage. Activities could be carried out in this area by means of two of the new instruments for the priority thematic areas of the programme on "Integrating and strengthening the European Research Area" of the EC Framework programme, namely the networks of excellence and integrated projects.

The rest of the activities relating to fission concern other aspects of nuclear safety: radiation protection, the study of innovative concepts and training concerning nuclear matters. These activities could be carried out in the form of projects of limited size and the networking of national activities, with the possibility of making use of the new instruments where necessary.

In the field of thermonuclear fusion, the specific programme proposal expands upon and clarifies the guidelines given in the EURATOM Framework Programme proposal following on from the results of the Ministerial Meeting held on 19 January 2001 on the basis in particular of a Commission staff working document [3].

[3] SEC (2001)385.

It specifies the priorities proposed and the activities to be carried out during the period 2002-2006 in accordance with the "reactor" orientation of Community activities in this field which it is thought desirable to maintain: participation in the Next Step and use of the JET facilities.

Choices will need to be made in order to put this orientation into practice. In order to increase the impact of Community efforts in this area, and in accordance with the spirit of the European Research Area, it is proposed that resources should be concentrated on multilateral activities bringing together European research players on joint projects such as JET today, and ITER in due course if a decision is taken to build this new machine.

Overall coordination at European level, the usefulness of which has been demonstrated, would be maintained, but the Member States would take responsibility for a larger proportion than at present of the activities where the "reactor" orientation and the link with the Next Step are less marked.

The period 2002-2006 should be a period of transition towards a programme dominated by commitments connected with the Next Step. Of the EUR 700 million proposed for the whole of fusion research, EUR 200 million are foreseen as a contribution to the construction of ITER which could commence during the second half of the period of implementation of the Framework Programme, i.e. 2005-2006, and which necessitates a specific decision.

The bulk of the Community fusion research activities for 2002-2006 are therefore intended to ensure the transition between the activities at present carried out in the associations and what should become a fusion physics and technology accompanying programme once the ITER project has reached "cruising speed" after 2006 if a decision is taken to go ahead and start building the machine.

Efficient implementation

Designed to help bring about the European Research Area, the Framework Programme 2002-2006 is based on three fundamental principles: concentration on a selected number of priorities; structuring effect by means of close liaison with the national efforts; simplification and streamlining of implementation conditions.

The need for this sort of improvement in the conditions governing the implementation of the Framework Programme and the specific programmes has been stressed repeatedly: by the Council and the European Parliament, by the Framework Programme five-year assessment panel, and by the Court of Auditors, in particular.

For the most part, the improvement in implementation conditions will be brought about by adopting the new means of intervention and the new instruments designed to help achieve the twin objectives of concentration and of strengthening the links between efforts at the various levels.

The networks of excellence and the integrated projects have been designed with this in mind, based on a more decentralised approach enabling the participants to have a large measure of operational autonomy as well as the requisite degree of flexibility in implementation. The partnerships, more particularly, are designed to be able to evolve so that new participants can join, and the initial participants can withdraw, throughout their duration.

The basic principles applying to the new instruments are described in Annex III to the specific programme proposals. The detailed rules for implementing them will be set out in the "Rules for participation and dissemination" taking account of the objectives of protecting the Communities' financial interests.

Other aspects of the management of the activities under the programmes will also be "externalised", more particularly certain aspects of the management of research activities for SMEs and activities in support of mobility.

An essential debate

When the Commission submits a proposal for a new EU Research Framework Programme there is always a wide-ranging and intense debate.

This debate, which is already under way, should go beyond a discussion of the priorities and areas to which it is often reduced:

- because the Framework Programme 2002-2006 is essentially characterised by the introduction of new means of intervention with considerable potential to have positive effects on the European research fabric, which should be put into effect under the best possible conditions;

- because implementing the Framework Programme for this reason requires greater involvement on the part of those responsible for research in Europe, at a high level of decision taking, in the national research organisations, universities and industry, and greater initiative and the assumption of greater responsibility on the part of the participants.

2001/0122 (CNS)

Proposal for a COUNCIL DECISION adopting a specific programme 2002-2006 for research, technological development and demonstration aimed at integrating and strengthening the European Research Area

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 166 thereof,

Having regard to the proposal from the Commission [4]

[4] OJ No.

Having regard to the opinion of the European Parliament [5]

[5] OJ No.

Having regard to the opinion of the Economic and Social Committee [6]

[6] OJ No.

Whereas:

(1) In accordance with Article 166(3) of the Treaty, Decision No. .../../EC [7] of the European Parliament and the Council concerning the multiannual framework programme 2002-2006 of the European Community for research, technological development and demonstration activities aimed at contributing towards the creation of the European Research Area (hereinafter referred to as "the framework programme") is to be implemented through specific programmes that define detailed rules for their implementation, fix their duration and provide for the means deemed necessary.

[7] OJ No.

(2) The framework programme is structured in three main blocks of activities, "integrating research", "structuring the European Research Area", and "strengthening the foundations of the European Research Area", the first and the third of which, as regards indirect actions, should be implemented by this specific programme.

(3) The rules for the participation of undertakings, research centres and universities and for the dissemination of research results, for the framework programme, adopted by the European Parliament and Council in Decision No. .../../EC [8] (hereinafter referred to as "the rules for participation and dissemination") should apply to this programme.

[8] OJ No

(4) New instruments, involving simplified and decentralised management, and the exploitation of external technical support should, if fully exploited in this programme, enable personnel and administrative expenses to be reduced to a maximum of 5.5% of the overall amount deemed necessary for its implementation.

(5) In implementing this programme, emphasis should be given to promoting mobility of researchers, and innovation, in the Community and encouraging the participation of SMEs, as well as international co-operation activities with third countries and international organisations. Special attention should be paid to the Accession countries.

(6) Research activities carried out within this programme should respect fundamental ethical principles, notably those which appear in the Charter of Fundamental Rights of the European Union.

(7) Following the Commission Communication "Women and Science" [9] and the Resolutions of the Council [10] and the European Parliament [11] on this theme, an action plan is being implemented in order to reinforce and increase the place and role of women in science and research. Gender aspects in research will be taken into account in implementing this programme.

[9] COM(1999)76.

[10] Resolution of 20 May 1999, OJ C 201, 16.7.1999.

[11] Resolution of 3 February 2000, PE 284.656.

(8) To achieve the full potential of this programme, the active engagement of all relevant parties, in particular the Member States and Associated States, should be encouraged in a common endeavour to step up the co-ordination of research activities carried out in Europe, including through the opening up and networking of national programmes and the free circulation of information pertaining to research activities at all levels.

(9) This programme should be implemented in a flexible, efficient and transparent manner, taking account of relevant interests, in particular of the scientific, industrial, user and policy communities; the research activities carried out under it should be adapted where appropriate to the needs of Community policies and to scientific and technological developments.

(10) Since the measures necessary for the implementation of this Decision are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission [12], they should be adopted by use of the management procedure provided for in Article 4 of that Decision.

[12] OJL 184, 17.7.1999, p.23

(11) The Commission should in due course arrange for an independent assessment to be conducted concerning the activities carried out in the fields covered by this programme.

(12) Within this programme, thematic priority areas of research should be implemented exclusively by means of three types of instruments: networks of excellence, integrated projects, and Community participation in national research activities implemented jointly pursuant to Article 169 of the Treaty.

HAS ADOPTED THIS DECISION

Article 1

1. In accordance with the framework programme, a specific programme on Integrating and strengthening the European research area (hereinafter referred to as "the specific programme") is hereby adopted for the period from [.....] to 31 December 2006.

2. The objectives and scientific and technological priorities for the specific programme are set out in Annex I.

Article 2

In accordance with Annex II of the framework programme, the amount deemed necessary for the execution of the specific programme is EUR 12 505 million, including a maximum of 5.5% for the Commission's administrative expenditure. An indicative breakdown of this amount is given in Annex II.

Article 3

1. The detailed rules for financial participation by the Community in the specific programme shall be those referred to in Article 2(2) of the framework programme.

2. The specific programme shall be implemented by means of the instruments defined in Annexes I and III to the framework programme and described in Annex III.

3. The rules for participation and dissemination shall apply to the specific programme.

Article 4

1. The Commission shall draw up a work programme for the implementation of the specific programme, setting out in greater detail the objectives and scientific and technological priorities set out in Annex I, and the timetable for implementation.

2. The work programme shall take account of relevant research activities carried out by the Member States, Associated States and European and international organisations. It shall be updated where appropriate.

Article 5

1. The Commission shall be responsible for the implementation of the specific programme.

2. The procedure laid down in Article 6 shall apply for the adoption of the following measures:

- the drawing up and updating of the work programme referred to in Article 4(1),

- any adjustment to the indicative breakdown of the amount as set out in Annex II.

Article 6

1. The Commission shall be assisted by a committee, composed of representatives of the Member States and chaired by the representative of the Commission.

2. Where reference is made to this paragraph, the management procedure laid down in Article 4 of Decision 1999/468/EC [13] shall apply, in compliance with Article 7 (3) thereof.

[13] OJL 184, 17.7.1999, p. 23

3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be two months.

Article 7

1. The Commission shall regularly report on the overall progress of the implementation of the specific programme, in accordance with Article 4 of the framework programme.

2. The Commission shall arrange for the independent assessment provided for in Article 5 of the framework programme to be conducted concerning the activities carried out in the fields covered by the specific programme.

Article 8

This Decision is addressed to the Member States.

Done at Brussels, [...]

For the Council

The President [...]

ANNEX I

Scientific and technological objectives and broad lines of the activities

Introduction

This programme will promote world class research in key priority areas of exceptional interest and added value to Europe and the competitiveness of its industry, which have been identified in the framework programme 2002-2006, as well as on topics that are identified as being of high importance during the course of implementation of the framework programme in view of the EU's policy needs and the opportunities arising in novel, leading edge research areas.

The programme will strive towards greater integration of research in Europe by means of:

- focused action in priority thematic research areas, using powerful financing instruments (integrated projects and networks of excellence) which bring together the research actors in appropriate configurations for the new challenges that these priority research areas represent, and with critical mass;

- promoting the networking and joint action of national and European frameworks for research and innovation, and the opening up of national programmes, in these priority areas, including where appropriate by the use of actions under Article 169 of the Treaty, as well as in other areas where such action would be of benefit to the performance of Europe's research base.

The programme is complementary to the programme "structuring the European Research Area" and the specific programme for the JRC, and its implementation will be co-ordinated with them.

1. Integrating research

1.1. Priority thematic areas of research

The priority thematic areas represent the bulk of expenditure under the framework programme 2002-2006. Through a highly focused Community research effort, the intention is to generate a substantial leveraging effect which, together with actions in other parts of the framework programme 2002-2006 and through open co-ordination with other - regional, national, European and international - frameworks, will result in a coherent and highly effective common endeavour towards their overall objectives.

The priority thematic areas of research are :

- Genomics and biotechnology for health

- Information Society technologies

- Nanotechnologies, intelligent materials and new production processes

- Aeronautics and space

- Food Safety and health risks

- Sustainable development and global change

- Citizens and Governance in the European Knowledge-based society

The actions are therefore described in terms of:

- the overall objectives and expected achievements which are sought in each priority area;

- the research priorities to be pursued by means of Community action.

The priority thematic areas of research are described in terms of their overall objectives and the main research focus. The associated work programme will elaborate further on the detailed research content.

Community action in each priority area will be pursued through integrated projects and networks of excellence which, in addition to research and technological development, may incorporate the following types of activity, where they are of specific relevance to the objectives sought: demonstration, dissemination and exploitation; co-operation with researchers and research teams from third countries; human resource development, including the promotion of training of researchers; development of research facilities and infrastructure of specific relevance to the research being undertaken; and promotion of better links between science and society, including women in science.;

In order to attain the objectives of one or more of the priority thematic areas, it may also be appropriate to implement research activities falling within the scope of Article 169 of the Treaty.

Participation of small and medium sized enterprises (SMEs) will be encouraged and gender equity will, overall, be assured in the implementation of the activities.

Innovation is an important dimension which must be taken into account in the design and implementation of RTD activities. In particular, networks of excellence and integrated projects will include activities relating to dissemination and exploitation of knowledge and, where relevant, to ensure transfer of technology and facilitate exploitation of results. Where appropriate, special attention will be given to technology transfer to SMEs and to the creation of research - based enterprises as a means of exploiting research results.

Participation of the candidate countries in this programme will be encouraged.

International co-operation represents an important dimension of the Framework Programme. In the specific programme "Integrating Research", international activities are carried out on the two forms of:

- Participation of researchers, teams and institutions from third countries in networks of excellence and integrated projects, in particular on topics, within the different thematic priority fields, related to issues arising at world level and being subjects of international efforts;

- Specific international co-operation activities with some groups of countries, as a support to Community external relations and development aid policies.

The objectives and forms of the international co-operation activities in the Framework Programme are described under the heading "Anticipating the EU's scientific and technological needs".

The priority research areas include, in certain cases, research at the borders of traditional disciplines where advances will require interdisciplinary and multidisciplinary effort. In such cases a particular attention will be given during the implementation of the programme to the co-ordination between the different priority areas, and between these areas and actions under the heading "anticipating the EU's scientific and technological needs".

Consideration of the ethical social and legal aspects of the research to be undertaken and its potential applications, as well as socio-economic impacts of scientific and technological development and foresight, will where relevant form a part of the activities under this heading. Research on ethics related to scientific and technological developments will be carried out in the programme "Structuring the European Research Area".

During the implementation of this programme and in the research activities arising from it, fundamental ethical principles are to be respected, including the following: protection of human dignity, data and privacy, as well as animals and the environment in accordance with Community law; relevant international conventions and codes of conduct, e.g. the Helsinki Declaration, the Convention of the Council of Europe on Human Rights and Biomedicine, the Universal Declaration on the human genome and human rights adopted by UNESCO; current legislation and regulations in the countries where the research will be carried out. Where appropriate, participants in research projects must seek the approval of the relevant ethics committees prior to the start of the RTD activities. An ethical review will be implemented systematically for proposals dealing with sensitive issues. In specific cases, an ethical review may take place during the implementation of a project.

1.1.1 Genomics and biotechnology for health [14]

[14] In this and other areas of activity within the framework programme, human cloning for reproductive purposes will not be supported; no research activities modifying or aiming to modify the genetic heritage of human beings will be carried out; nor will any research activity involving the creation of a human embryo for research or therapeutic purposes be carried out. As far as possible, animal experiments and testing should be replaced by in vitro or alternative methods. Animal suffering must be avoided or kept to a minimum and, in this regard, special attention must be paid to animal experimentation involving species that are the closest to human beings (in accordance with Directive 86/609/CEE). The modification of the genetic heritage of animals and animal cloning will be envisaged only for objectives that are justified on ethical grounds and when carried out under conditions respecting animal welfare and the principles of genetic diversity.

The sequencing of the human genome and many other genomes heralds a new age in human biology, offering unprecedented opportunities to improve human health and to stimulate industrial and economic activity. In making its contribution to realising these benefits, this theme will focus on integrating post-genomic research into the more established biomedical and biotechnological approaches, and will facilitate the integration of research capacities (both public and private) across Europe to increase coherence and achieve critical mass. Integrated multidisciplinary research, which enables a strong interaction between technology and biology, is vital in this theme for translating genome data into practical applications. In addition, an essential element will be to involve key stakeholders, in particular, industry, healthcare providers and practitioners, policy makers, regulatory authorities and patient associations, in implementing the theme. Gender equity in the research will also be ensured [15].

[15] Causes, clinical manifestation, consequences and treatment of disease and disorders often differ between women and men. Therefore, all activities funded within this thematic priority must take the possibility of gender differences into account in their research protocols, methodologies and analysis of results.

This thematic priority area will stimulate and sustain multidisciplinary basic research to exploit the full potential of genome information to underpin applications to human health.

It will be an integral component of the European Community effort to enhance the European biotechnology industry in line with the conclusions of the Stockholm Council. It will endeavour to create strong links with all activities that improve the framework conditions for innovation in the health sector of the biotechnology industry, especially in SMEs, including stimulating entrepreneurship and opportunities for investment through venture capital and the involvement of the European Investment Bank. Attention will also be paid to the identification of regulatory bottlenecks in the development of new applications for genomics, to the anticipation at the earliest possible stage of the ethical implications and to the broader implications of developments in genomics research for society and citizens.

This thematic priority area will also foster the implementation and development of the health strategy of the European Community.

Throughout the thematic priority, international collaboration will be encouraged. Where appropriate, due account will be given to the European Community's commitment to poverty reduction in developing countries and the importance that improved health will bring to the process - in line with Article 177 of the Treaty and with the European Community's accelerated actions to combat HIV/AIDS, malaria and tuberculosis.

Research priorities

i) Fundamental knowledge and basic tools for functional genomics

The strategic objective of this line is to foster the basic understanding of genomic information, by developing the knowledge base, tools and resources needed to decipher the function of genes and gene products relevant to human health (including animal and plant model genomes and microbial genomes) and to explore their interactions with each other and with their environment. Research actions will encompass the following:

- Gene expression and proteomics: The objectives are to enable researchers to better decipher the functions of genes and gene products as well as to define the complex regulatory networks (biocomplexity) that control fundamental biological processes.

Research will focus on: developing high throughput tools and approaches for monitoring gene expression and protein profiles and for determining protein function and protein interactions.

- Structural genomics: The objectives are to enable researchers to determine, more effectively and at a higher rate than is currently feasible, the 3-D structure of proteins and other macromolecules, which is important for elucidating protein function and essential for drug design.

Research will focus on: developing high throughput approaches for determining high-resolution 3-D structures of macromolecules.

- Comparative genomics and population genetics: The objectives are to enable researchers to use well-characterised model organisms for predicting and testing gene function and to take full advantage of specific population cohorts available in Europe to determine the relationship between gene function and health or disease.

Research will focus on: developing model organisms and transgenic tools; developing genetic epidemiology tools and standardised genotyping protocols.

- Bioinformatics: The objectives are to enable researchers to access efficient tools for managing and interpreting the ever-increasing quantities of genome data and for making it available to the research community in an accessible and usable form.

Research will focus on: developing bioinformatic tools and resources for data storage, mining and processing; developing computational biology approaches for in silico prediction of gene function and for the simulation of complex regulatory networks.

ii) Applications of genomics and biotechnology for health

The strategic objective of this line is to foster the competitiveness of Europe's biotechnology industry by exploiting the wealth of biological data produced by genomics and advances in biotechnology. Research actions will encompass the following:

- Technological platforms for the development of new diagnostic, prevention and therapeutic tools: The objectives are to foster academic and industrial collaboration through technological platforms where multidisciplinary approaches using cutting edge technologies arising from genomic research (such as pharmacogenomics) may contribute to health care progress and cost reduction through more precise diagnosis, individualised treatment and more efficient development pathways for new drugs and therapies, and other novel products of the new technologies.

Research will focus on: rational and accelerated development of new, safer, more effective drugs; development of new diagnostics; development of new in vitro tests to replace animal experimentation; development and testing of new preventive and therapeutic tools, such as somatic gene and cell therapies (including stem cell therapies) and immunotherapies.

- Support for innovative research in genomics start-up companies: The objectives are to facilitate the creation of research-based start-ups in Europe, to help sustain their early growth and to foster their further development in a multinational environment.

Research will focus on: innovative aspects of post-genomics, which have high potential for application to health related issues and which are also expected to lead to entrepreneurial initiatives in start-up companies.

With a view to ensuring socially responsible choices, public acceptance and an efficient development pathway for these new technologies, an active and early involvement of regulators, patients and society at large will be necessary.

iii) Applications in medicine and public health

The strategic objective of this line is to develop improved strategies for the prevention and management of human disease and for living and ageing healthily. It will concentrate exclusively on integrating the genomic approach into more established medical approaches for investigating disease and health determinants. Research actions will focus on the following:

- Combating cancer, cardiovascular disease and rare diseases: The objectives are to improve the prevention and management of the two major causes of ill health and mortality in Europe and to pool Europe's research resources for tackling rare diseases.

Research will focus on: integrating clinical expertise and resources with relevant model systems and advanced tools in functional genomics to generate breakthroughs in the prevention and management of these diseases.

- Combating resistance to drugs: The objectives are to confront the major threat to public health caused by drug resistant pathogens.

Research will focus on: exploitation of the knowledge of microbial genomes and on host-pathogen interactions for the development of vaccines and alternative therapeutic strategies to circumvent the problem of antimicrobial drug resistance; development of strategies for optimal usage of antimicrobials; support to the European Community network for epidemiological surveillance and control of communicable diseases.

- Studying the brain and combating diseases of the nervous system: The objectives are to use genome information to understand better the functioning and dysfunctioning of the brain, in order to gain new insight into mental processes, to combat neurological disorders and diseases, and to improve brain repair.

Research will focus on: understanding the molecular and cellular bases of brain function, damage, plasticity and repair, learning, memory and cognition; developing strategies for prevention and management of neurological disorders and diseases.

- Studying human development and the ageing process: The objective is to better understand human development, with special emphasis on the ageing process, in order to develop the evidence base for improving public health strategies to promote healthy living and healthy ageing.

Research will focus on: understanding human development from conception to adolescence; exploring the molecular and cellular determinants of healthy ageing including their interactions with environmental, behavioural and gender factors.

iv) Confronting the major communicable diseases linked to poverty

The strategic objective of this line is to confront the global emergency caused by the three major communicable diseases - HIV/AIDS, malaria and tuberculosis - through the development of effective disease interventions, particularly for use in developing countries. It is envisaged that developing countries will be significant partners in the implementation of this line, in particular through the European Clinical Trials Platform.

Research will focus on: developing promising candidate interventions (vaccines, therapies and HIV microbicides) against the target diseases by sponsoring research over the full spectrum from basic molecular research, taking advantage of microbial genomics, through to pre-clinical testing and proof-of-principle; establishing a European Clinical Trials Platform to unite and support Europe's clinical trial activities specifically targeted at interventions for use in developing countries; establishing an AIDS Therapy Trials Network in Europe to improve the coherence and complementarity of clinical trials of AIDS therapies for European use.

1.1.2 Information Society technologies

Information society technologies (IST) are transforming the economy and society. Not only are they creating new ways of working and new types of business, but provide solutions to major societal challenges such as healthcare, environment, safety, mobility and employment, and have far reaching implications on our everyday life. The IST sector is now one the most important of the economy, with an annual turnover of EUR 2000 billion, providing employment for more than 12 million people in Europe.

The IST thematic priority will contribute directly to realising European policies for the knowledge society as agreed at the Lisbon Council of 2000, the Stockholm Council of 2001, and reflected in the e-Europe Action Plan. It will ensure European leadership in the generic and applied technologies at the heart of the knowledge economy. It aims to increase innovation and competitiveness in European businesses and industry and to contribute to greater benefits for all European citizens.

Successes, like those achieved in Europe in mobile communications or consumer electronics, will not be repeated unless a real effort is made to achieve critical mass in key domains of IST research. The actions will therefore mobilise the community of researchers around medium to long term objectives, facilitating the integration of public and private effort on a European scale, to build essential competencies and strengthen innovation. They will involve high-risk and long term RTD such as the development of the next generation of mobile and wireless systems beyond 3G, and will include underpinning research to investigate and experiment with future and emerging technologies within the specific context of the priority research areas indicated

Although substantial advances have been achieved, we are still far from taking full advantage of the potential of knowledge-based services in real life. Products and services are still hard to use and out of reach for many people, and the "digital divide" is widening within Europe and across the world. Research will focus on the future generation of technologies in which computers and networks will be integrated into the everyday environment, rendering accessible a multitude of services and applications through easy-to-use human interfaces. This vision of "ambient intelligence" places the user, the individual, at the centre of future developments for an inclusive knowledge-based society for all.

The IST priority in support of the eEurope action plan, will help build an information and knowledge based society across Europe, encouraging the participation of least developed regions. It will also include activities linking the EU effort to the international context. The aim is to achieve thematic area global consensus when appropriate e.g. through the Intelligent Manufacturing Systems (IMS) initiative or the dialogue on dependability issues, to integrate further the research of the Newly Associated States within the EU effort and to facilitate co-operation with developing countries.

Research priorities

i) Applied IST research addressing major societal and economic challenges

The objective is to extend the scope and efficiency of IST-based solutions addressing major societal and economic challenges, and to make them accessible in the most trusted and natural way, anywhere and anytime to citizens, businesses and organisations.

- Research on technologies for trust and confidence: The objective is to develop technologies for key security challenges posed by the "all-digital" world and by the need to secure the rights of individuals and communities.

Research will focus on basic security mechanisms and their interoperability, dynamic security processes, advanced cryptography, privacy enhancing technologies, technologies to handle digital assets and technologies for dependability to support business and organisational functions in dynamic and mobile systems.

- Research addressing societal challenges: The focus is on "ambient intelligence" for a broader inclusion of citizens in the Information Society, for more effective health, security, mobility and environment management and support systems, and for the preservation of cultural heritage, integration of multiple functionalities across these different domains will be also supported.

Research activities on "e-inclusion" will concentrate on systems enabling access for all, on barrier-free technologies for full participation in the information society and on assistive systems that will restore functions or compensate for disabilities thereby enabling a higher quality of life for citizens with special needs and their carers. In the area of health, the work will focus on intelligent systems aimed at supporting health professionals, at providing patients with personalised healthcare and information, and at stimulating health promotion and disease prevention in the general population. Research will also address intelligent systems to enhance the protection of people and property and for securing and safeguarding civil infrastructures.

In the area of mobility, research will focus on vehicle infrastructure and portable systems to provide integrated safety, comfort and efficiency and allow for the provision of advanced logistics infomobility and location based services. Research in the area of environment will focus on knowledge-based systems for natural resource management and for risk prevention and crisis management. In the area of leisure, research will focus on intelligent and mobile systems and application for entertainment and tourism. For cultural heritage, the effort will focus on intelligent systems for dynamic access to and preservation of tangible and intangible cultural and scientific resources.

- Research addressing work and business challenges: The objective is to provide businesses, individuals, public administrations, and other organisations with the means to fully contribute to, and benefit from, the development of a trusted knowledge-based economy, whilst at the same time improving the quality of work and working life and support life-long continuous learning to improve work skills. Research will also aim at a better understanding of the socio-economic drivers and impact of IST development.

Research in e-business and e-government will focus on providing European organisations, private and public, and especially SMEs, with interoperable systems and services to enhance innovation capacities, value creation and competitive performance in the knowledge economy and on supporting new business ecosystems. Research in organisational knowledge management will aim at supporting organisational innovation and responsiveness through elicitation, sharing, trading, and delivery of knowledge. Work on electronic and mobile commerce will target interoperable, multimodal applications and services across heterogeneous networks. It will include anytime-anywhere trading, collaboration, workflow, and electronic services covering the whole value creation cycle of extended products and services.

Research into eWork systems will focus on new workplace designs incorporating innovative technologies to facilitate creativity and collaboration, on increasing resource-use efficiency and on extending work opportunities to all in local communities. Work on eLearning will focus on personalised access to, and delivery of, learning as well as on advanced learning environments at school, university and in the workplace that take advantage of the development of ambient intelligence.

- Complex problem solving in science, engineering, businesses and for society: The objective is to develop technologies for harnessing computing and storage resources which are distributed in geographically dispersed locations, and for making them accessible, in a seamless way, for complex problem solving in science, industry, business and society. Application fields include environment, energy, health, transport, industrial engineering, finance and new media.

Research will focus on new computational models, including computing and information GRIDs, peer-to-peer technologies and the associated middleware to make use of large scale highly distributed computing and storage resources and to develop scalable, dependable and secure platforms. It will include novel collaborative tools and programming methods supporting interoperability of applications and new generations of simulation, visualisation and datamining tools.

ii) Communication and computing infrastructures

The objectives are to consolidate and further develop European strengths in areas such as mobile communications, consumer electronics and embedded software, and to improve the performance, cost-efficiency, functionality and adaptive capabilities of communications and computing technologies.

- Communication and network technologies: The objective is to develop the new generations of mobile and wireless systems and networks that allow optimal service connection anywhere as well as all-optical networks to increase network transparency and capacity, solutions to improve network interoperation and adaptability, and technologies for personalised access to networked audio-visual systems.

Work on terrestrial and satellite [16] based, mobile and wireless systems and networks beyond 3G will focus on the next generation of technologies, ensuring co-operation and seamless inter-working at service and control planes of multiple wireless technologies over a common IP (Internet Protocol) platform as well as novel spectral efficient protocols, tools and technologies, to build wireless re-configurable IP enabled devices, systems and networks.

[16] The activity on satellite communications is done in coordination with the activities in priority 4 "aeronautics and space".

Research in all optical networks will focus on the management of optical wavelength channels enabling flexibility and speed in service deployment and provisioning and solutions for fibre to the LAN. Research on interoperable network solutions, including end-to-end network management will support generic services provision and interworking, and interoperation between heterogeneous networks and platforms. It will include programmable networks to provide adaptive and real-time allocation of network resources and enhanced service management capabilities by customers.

Research will also address the enabling technologies for personalised access to networked audio-visual systems and applications as well as cross-media service platforms and networks, trusted digital TV architectures and appliances able to process, encode, store, sense and display hybrid 3D multimedia signals and objects.

- Software technologies, services and distributed systems The objective is to develop new software technologies, multifunctional service creation environments as well as tools for the control of complex distributed systems for the realisation of an ambient intelligence landscape and for coping with the expected growth and spread of applications and services.

Research will focus on new technologies for software, systems and services, that address composability, scalability, reliability and robustness as well as autonomous self-adaptation. It will address middleware for the management, control and use of fully distributed resources. Work on multifunctional service creation environments and new component frameworks will aim at the development of service functionality, including meta-information, semantics and taxonomy of the building blocks. New strategies, algorithms, and tools for systematic and accurate design, prototyping and control of complex distributed systems will be addressed e.g. with embedded controllers and ubiquitous computing resources. Work will include cognitive techniques for generic object and event recognition.

iii) Components and microsystems

- Micro, Nano and Opto-electronics The objective is to reduce the cost, increase the performance and improve reconfigurability, scalability, adaptability and self-adjusting capabilities of micro-, nano- and opto-electronic components and systems-on-a-chip.

Research will focus on pushing the limits of CMOS process and equipment technologies and enhancing device functionality, performance and integration of functions. It will address alternative process technologies, device types, materials and architectures to meet demands of communication and computing. Particular emphasis will be put on RF, mixed-signal and low power design. Work on optical, opto-electronic, and photonic functional components, will address devices and systems for information processing, communication, switching, storage, sensing and imaging. Research on electron based nano-devices, as well as on molecular electronics devices and technologies, will target those that promise broad functionality and have integration- and mass fabrication potential.

- Micro and Nano Technologies, Microsystems, Displays: The objective is to improve the cost-efficiency, performance and functionality of subsystems and microsystems and to increase the level of integration and miniaturisation allowing for improved interfacing with their surrounding and with networked services and systems.

Research will focus on new applications and functions that take advantage of multi-disciplinary interactions (electronics, mechanics, chemistry, biology, etc.) combined with the use of micro and nano-structures and new materials. The aim is to develop innovative, cost-effective and reliable microsystems and reconfigurable, miniaturised subsystem modules. Work will also include low cost, information-rich and higher resolution displays as well as advanced sensors including low cost vision and bio-metric sensors, and haptic devices. Work on nano-devices and nano-systems will address the exploitation of basic phenomena, processes and structures that promise novel or improved sensing or actuating functionality as well as their integration and fabrication.

iv) Knowledge and interface technologies

The objective is to improve usability of IST applications and services and access to the knowledge they embody in order to encourage their wider adoption and faster deployment.

- Knowledge technologies and digital content: The objective is to provide automated solutions for creating and organising virtual knowledge spaces (e.g. collective memories) so as to stimulate radically new content and media services and applications.

Work will focus on technologies to support the process of acquiring and modelling, representing and visualising, interpreting and sharing knowledge. These functions will be integrated in new semantic-based and context-aware systems including cognitive and agent-based tools. Work will address extensible knowledge resources and ontologies so as to facilitate service interoperabilitiy and enable next-generation Semantic-web applications. Research will also address technologies to support the design, creation, management and publishing of multimedia content, across fixed and mobile networks and devices, with the ability to self-adapt to user expectations. The aim is to stimulate the creation of rich interactive content for personalised broadcasting and advanced trusted media and entertainment applications.

- Intelligent interfaces and surfaces : The objective is to provide more effective ways of accessing ubiquitous information and easier and natural interaction modes with intelligence that surrounds us.

Research will focus on interfaces and interactive surfaces that are natural, adaptive and multi-sensorial, for an ambient landscape that is aware of our presence, personality and needs, and which is capable of responding intelligently to speech or gesture. The aim is to hide the complexity of technology by supporting a seamless human interaction with devices, virtual and physical objects and the knowledge embedded in everyday environments.

Work will also address technologies for multilingual and multicultural access and communication that support timely and cost effective provisions of interactive information-rich services meeting the personal, professional and business requirements of all members of linguistically and culturally diverse communities.

1.1.3 Nanotechnologies, intelligent materials and new production processes

The twofold transition toward a knowledge-based society and of sustainable development demands new paradigms of production and new concepts of product-services. European production industry as a whole needs to move from resource-based towards knowledge-based approaches, from quantity to quality, from mass produced single-use products to manufactured-on-demand multi-use, upgradable product-services; from "material and tangible" to "intangible" value-added products, processes and services.

These changes are associated with radical shifts in industrial structures, involving a stronger presence of innovative enterprises, with capabilities in networks and mastering new hybrid technologies combining nanotechnologies, material sciences, engineering, information technologies, bio and environmental sciences. Such an evolution implies a strong collaboration across traditional scientific frontiers. Leading edge industrial developments involve also a strong synergy between technology and organisation, the performance of both being highly dependent on new skills.

Successful technological solutions have to be sought more and more upstream in the design and production processes; new materials and nanotechnologies have a crucial role to play in this respect, as drivers of innovation. This requires changes of emphasis in Community research activities from short to longer term and in innovation which must move from incremental to breakthrough strategies. Community research will benefit greatly from an international dimension.

Research priorities

i) Nanotechnologies

Nanotechnologies represent a new approach to materials science and engineering. Europe enjoys a strong position in the nanosciences, that needs to be translated into a real competitive advantage for European industry. The objective is twofold: to promote the creation of an RTD-intensive European nanotechnology related industry, and to promote the uptake of nanotechnologies in existing industrial sectors. Research may be long-term and high risk, but will be oriented towards industrial application. An active policy of encouraging industrial companies and SMEs, including start-ups, will be pursued, amongst others through the promotion of strong industry/research interactions in consortia undertaking projects with substantial critical mass.

- Long-term interdisciplinary research into understanding phenomena, harnessing processes and developing research tools: The objectives are to expand the generic underlying knowledge base of application oriented nano-science and nanotechnology, and to develop leading edge research tools and techniques.

Research will focus on : molecular and mesoscopic scale phenomena: self-assembling materials and structures; molecular and bio-molecular mechanisms and engines; multi-disciplinary and new approaches to integrate developments in inorganic, organic and biological materials and processes.

- Nanobiotechnologies: The objective is to support research into the integration of biological and non-biological entities, opening new horizons in many applications, such as for processing and for medical and environmental analysis systems.

Research will focus on: lab-on-chip, interfaces to biological entities, surface modified nano-particles, advanced drug delivery and other areas of integrating nano-systems or nanoelectronics with biological entities; processing, manipulation and detection of biological molecules or complexes, electronic detection of biological entities, micro-fluidics, promotion and control of growth of cells on substrates.

- Nanometre-scale engineering techniques to create materials and components: The objective is to develop novel functional and structural materials of superior performance, by controlling their nano-structure. This will include technologies for their production and processing.

Research will focus on : nano-structured alloys and composites, advanced functional polymeric materials, and nano-structured functional materials.

- Development of handling and control devices and instruments: The objective is to develop a new generation of instrumentation for analysis and manufacture at the nano-scale. A guiding target will be a feature size or resolution of the order of 10nm.

Research will focus on : a variety of advanced techniques for nano-scale manufacture (lithography or microscopy based techniques); breakthrough technologies, methodologies or instruments exploiting the self-assembling properties of matter and developing nano-scale machines.

- Applications in areas such as health, chemistry, energy, optics and the environment: The objective is to foster the potential of nanotechnologies in breakthrough applications through the integration of research developments in materials and technological devices in an industrial context.

Research will focus on: computational modelling, advanced production technologies; development of innovative materials with improved characteristics.

ii) Intelligent Materials

New, high knowledge-content materials, providing new functionalities and improved performance, will be critical drivers of innovation in technologies, devices and systems, benefiting sustainable development and competitiveness in sectors such as transport, energy, medicine, electronics, and construction. To assure Europe's strong positions in emerging technology markets, which are expected to grow by one or two orders of magnitude within the next decade, the various actors need to be mobilised through leading edge RTD partnerships, including high risk research and through integration between research on materials and industrial applications.

- Development of fundamental knowledge: The objective is to understand complex physico-chemical and biological phenomena relevant to the mastering and processing of intelligent materials with the help of experimental, theoretical and modelling tools. This will provide the basis for synthesising larger complex or self-assembling structures with defined physical, chemical or biological characteristics.

Research will focus on: long-term, trans-disciplinary and high industrial risk activities to design and develop new structures with defined characteristics; development of supra-molecular and macromolecular engineering, focusing on the synthesis, exploitation and potential use of novel highly complex molecules and their compounds.

- Technologies associated with the production and transformation of new materials: The objective is the sustainable production of new "smart" materials with tailor-made functionalities and for building up macro-structures. These novel materials, serving multisectorial applications should incorporate in-built characteristics to be exploited under predetermined circumstances as well as enhanced bulk properties or barrier and surface characteristics for higher performance.

Research will focus on: new materials,; engineered and self-repairing materials; crosscutting technologies including surface science and engineering.

- Engineering support for materials development: The objective is to bridge the gap from 'knowledge production' to 'knowledge use', thus overcoming the EU industry's weaknesses in the integration of materials and manufacturing. This will be achieved by the development of new tools enabling the production of new materials in a context of sustainable competitiveness.

Research will focus on: inherent aspects of optimising materials design, processing and tools;, mechanical testing, validation and up-scaling; incorporation of life-cycle approaches, obsolescence, bio-compatibility and eco-efficiency.

iii) New Production Processes

New production concepts which are more flexible, integrated, safe and clean will depend on breakthrough organisational and technological developments supporting new products, processes and services, and at the same time decreasing (internal and external) costs. The objective is to provide the industrial systems of the future with the necessary tools for efficient life-cycle design, production, use and recovery as well as appropriate organisational models and improved knowledge management.

- Development of flexible and intelligent manufacturing systems. The objective is to encourage industry's transition towards more knowledge-based production and systems organisation and to considering production from a more holistic perspective, encompassing not only hardware and software, but also people and the way in which they learn and share knowledge.

Research will focus on : innovative, reliable, smart and cost-effective manufacturing processes and systems and their incorporation into the factory of the future: integrating hybrid technologies based on new materials and their processing, micro-systems and automation, high-precision production equipment, as well as integration of ICT, sensing and control technologies.

- Systems research and hazard control. The objective is to contribute to an improved sustainability of industrial systems and a substantial and measurable reduction in environmental and health impact, through new industrial approaches as well as enhancement of resource efficiency and resource consumption.

Research will focus on: development of new devices and systems for clean, safe and less carbon-intensive production; enhancing company responsibility on products, resource consumption and industrial waste management; studying "production-use-consumption" interactions as well as socio-economic implications.

- Optimising the life-cycle of industrial systems, products and services. Products and production should become increasingly life-cycle and service oriented, in addition to the requirements of intelligence, cost-effectiveness, safety and cleanliness. The key challenge is therefore new industrial concepts based on life-cycle approaches, which must allow new products, organisational innovation and the efficient management of information and its transformation into useable knowledge within the value chain.

Research will focus on: innovative product-services systems, that optimise the "design-production-service-end-of-life" value chain through the development and use of hybrid technologies and new organisational structures.

1.1.4 Aeronautics and space

Over the last decades, Europe's outstanding technological and industrial capabilities in aeronautics and the exploitation of space have made many and various contributions to the standard of living of its citizens and the development and growth of its economies, as well as to those outside Europe. The economic benefits they bring can be seen in highly skilled employment and the balance of trade surplus, and they can have a strong leverage effect in upgrading the competitiveness of other related economic sectors.

Although aeronautics and space are distinct domains, they share common features, being extremely R&D intensive, with long development lead-times and very large investment requirements. Fierce competition, strategic significance, and increasingly severe environmental constraints combine to make it necessary to strive continually towards higher levels of technological excellence by consolidating and concentrating RTD efforts in Europe, with the ultimate aim of better serving society.

Aeronautics research will be planned against a Strategic Research Agenda (SRA) agreed by all stakeholders at European level in the context of the new Advisory Council for Aeronautics Research in Europe, which will also be the planning base for national programmes. The result will be a greater level of complementarity and co-operation between the national and Community efforts in the field. The European Strategy for Space will serve as a reference in planning space research, with the objective of gathering key players on projects of common interest and close liaison will be ensured with RTD activities carried out by other actors, such as space agencies, Eurocontrol and industry. Furthermore, the application of relevant Treaty articles will be explored to support, as appropriate, these initiatives.

Research priorities

i) Aeronautics

In their report "Vision 2020 ", leaders of the sector in Europe have highlighted the need to optimise the Community and national research efforts around a common vision and a strategic research agenda. Consistent with this, research will concentrate on the following 4 main strands. The scope of the research action will be medium and large sized commercial aircraft including their systems and components, as well as the on-board and ground-based elements of air-traffic management systems.

- Strengthening competitiveness: The objective is to enable the 3 sectors of the manufacturing industry: airframe, engines and equipment, to increase their competitiveness, by reducing, in the short and long term, respectively, aircraft development costs by 20% and 50%, and aircraft direct operating cost by 20% and 50%, and improving passenger comfort.

Research will focus on: integrated design systems and processes for the realisation of the extended multi-site enterprise concept, as well as for more intelligent production technologies; new aircraft configurations, advanced aerodynamics, materials and structures, engine technologies; mechanical, electrical and hydraulic systems; improved cabin-environmental conditions and utilisation of multimedia services to improve passenger comfort.

- Improving environmental impact with regard to engine emissions and noise. Concerning emissions, the objectives are to meet Kyoto goals and to compensate for the increase in future air traffic, by reducing CO2 by 50% in the long term and NOx by 20% and 80%, in the short and long term, respectively. Concerning noise, to limit the noise nuisance outside the airport boundary, the target is to reduce noise levels by 4-5 dB in the short term, and 10 dB in the long term.

Work will focus on low-emission combustion and propulsion concepts, engine technologies and related control systems, low-drag aerodynamic concepts, low-weight airframe structures and high temperature materials, as well as improved flight operational procedures; engine and power-plant technologies, aeroacoustics for airframe noise reduction, advanced noise-control systems as well as novel flight operational procedures in the vicinity of airports.

- Improving aircraft safety. The objective is to obtain a two-fold reduction in accident rates in the short-term, and a five-fold reduction the long term, in order to compensate for the growth in air transport movements.

Concerning preventive safety, research will focus on: investigation of systemic safety models, improve fault-tolerant systems and human-centred cockpit design enabling a controllable situation awareness for the crew. Research on accident mitigation will focus on improved materials and structures as well as advanced safety systems.

- Increasing operational capacity and safety of the air transport system. The objective is to optimise airspace and airport utilisation, and consequently reduce flight delays, through a seamlessly integrated European air traffic management system, which would facilitate the achievement of the "Single European-Sky" initiative.

Research will focus on on-board and ground automation aids, communication, navigation and surveillance systems as well as flight operation procedures that will enable the introduction of new concepts including the free-flight concept in the future European ATM system.

ii) Space

The aim is to contribute to the implementation of the European Strategy for Space, notably by targeting and focusing efforts with ESA and Member States on a small number of joint actions of common interest. Emphasis will be put on activities complementing those of space agencies (integration of terrestrial and space systems/services and demonstration of end-to-end services). This will include the following areas of activity:

- Galileo: the European Satellite Navigation system GALILEO, developed by the Joint Undertaking in close co-operation with the European Space Agency, will be fully operational by 2008. The use of the services provided by this infrastructure will span over wide ranges of activities of European society. The availability of precise navigation and timing services will have profound impacts in many domains.

It is important to build the necessary expertise and knowledge in Europe in order to exploit this emerging technology in the most efficient way.

Research will focus on: development of multisectorial concepts, systems and tools, which will rely on precise navigation and timing service provision; spreading of high level, coherent and seamless quality services in all environments (cities, indoors and outdoors, land, sea, air, etc.), in synergy with other service provision (telecommunication, surveillance, observation, etc.).

- GMES: the objective is to stimulate the development of markets for satellite-based information services, by development of technologies to bridge the gap between supply and demand.

Research will focus on: sensors, data, and information models, developed in Europe or elsewhere, as well as developing prototypes of operational services responding to specific types of demand (for example global environment, land-use, desertification, disaster management). Research, including on data acquisition, assembly and qualification of models combining spatial and terrestrial data in an integrated operational information system, would use existing satellite data, for example provided by Envisat, future EarthWatch projects and other systems.

- Satellite telecommunications: Satellite communications should be integrated with the wider area of telecommunications systems, notably terrestrial systems [17].

[17] Considering the tight links between communications satellites and terrestrial technologies, the related work is presented in the context of the relevant actions of the "Information society technologies" thematic priority area.

1.1.5 Food Safety and health risks

This priority area is aimed at assuring the health and well-being of European citizens through a better understanding of the influence of food intake and environmental factors on human health and to provide them with safer and health-promoting foods, including seafoods, relying on fully controlled and integrated production systems originating in agriculture and fisheries. By re-addressing the classical approach 'from farm to fork', this thematic priority area aims at ensuring that consumer protection is the main driver for developing new and safer food and feed production chains, i.e. 'from fork to farm'.

This end-user driven approach is reflected in the seven specific research objectives. Priority will be given to integrated research approaches crossing several specific objectives.

Research priorities

- Epidemiology of food-related diseases and genetic susceptibilities. The objective is to examine the complex interactions between food intake and metabolism, immune system, genetic background and environmental factors to identify key risk factors and develop common European databases.

Research will focus on : epidemiological studies of the effect of diet, food composition and lifestyle factors, on health, and the prevention or development of specific diseases, allergies and disorders; methodologies for measuring and analysing food composition and dietary intake, risk assessment, epidemiological and intervention models; influences of genetic variability using advances in functional genomics.

- Impact of food, and in particular products containing genetically modified organisms, on health : The objective is to provide the scientific basis for improving health through diet, and the development of new health-promoting foods, by means of an improved understanding of food metabolism and by harnessing the opportunities now available from proteomics and biotechnology.

Research will focus on: overall relationship between diet and health, food components, effects of pathogens, chemical contaminants and new agents of prion type on body function; disease prevention; nutrient requirements and health promoting intervention strategies; determinants of consumer attitudes towards food products and production; health promoting properties of foods; methodologies for risk/benefit assessment of nutrients and of bioactive compounds; specificities of different age groups, particularly older consumers.

- "Traceability" processes, in particular relating to genetically modified organisms, including systems based on recent biotechnology developments: The objective is to strengthen the scientific and technological basis for ensuring complete traceability from raw material origin to purchased food products, and thereby increase consumer confidence in the food supply.

Research will focus on: development, validation and harmonisation of technologies and methodologies to ensure complete traceability throughout the food chain ; scale-up, implementation and validation of methods in whole food chains; assurance of authenticity; validity of labelling and new HACCP criteria.

- Methods of analysis and detection of chemical contaminants and pathogenic micro-organisms (viruses, bacteria, parasites, and new agents of the prion type): The objective is to contribute to the development, improvement, validation and harmonisation of reliable and cost-effective sampling and measurement strategies for controlling the safety of the food and feed supply and ensuring accurate data for risk analysis.

Research will focus on: methods and standards for analysing and detecting food-borne pathogens and chemical contaminants, including pre-normative aspects; modelling and approaches to improve existing prevention and measurement control strategies; detection tests and geographical mapping of prions; material transfer of prions and environmental influences .

- Safer production methods and healthier foodstuffs, including those based on biotechnologies, and on organic farming processes: The objective is to develop lower input farming systems and improved transformation processes aimed at producing safer and health-promoting food and feed, and improving the quality of food and feed through innovative technologies.

Research will focus on: individual and comparative assessment of safety, quality and competitiveness aspects of conventional, organic, and GMO-based production, processing and foodstuffs, and their improvement through better animal welfare, husbandry and waste-management; modified production methods and innovative technologies.

- Impact of animal feed, and the use of sub-products of different origins for that feed, on human health: The objective is to improve understanding of the role of animal feed in food safety, to reduce the use of undesirable raw materials and to develop alternative new animal feed sources.

Research will focus on: epidemiological studies of animal-feed induced food-borne diseases; influence of raw materials, including waste and by-products of different origins, processing methods, additives and veterinary drugs used in animal feed on animal and human health; improved waste management, to ensure exclusion of specified high-risk and condemned materials from the feed chain; novel protein, fat and energy sources other than meat and bone meal for optimal animal growth, reproductive potential and food product quality.

- Environmental health risks: The objectives are to identify the environmental factors, that are detrimental to health, understand the mechanisms involved and determine how to prevent or minimise these effects and risks.

Research will focus on: identification of causal agents including contaminants, and physiological mechanisms, of environment-linked health impacts; understanding of exposure pathways, estimation of cumulative, low dose and combined exposures; long-term effects; definition and protection of susceptible sub-groups; environmental causes and mechanisms responsible for the increase in allergies; impact of endocrine disrupters; chronic chemical pollution and combined environmental exposures, transmission of illnesses linked to water (parasites, viruses, bacteria, etc).

1.1.6 Sustainable development and global change

The Treaty confirms Sustainable Development as a central objective of the European Community. Climate change, energy security, sustainable transport, protection of nature, and their interaction with human activities motivate this research action. The activities carried out within this priority area aim to strengthen the scientific and technological capacities needed for Europe to be able to implement a sustainable development model and make a significant contribution to the international efforts to understand and control global change and preserve the equilibrium of ecosystems.

1.1.6.1 Technologies for Sustainable Development

Strategic objectives address the reduction of greenhouse gases and pollutant emissions, the security of energy supply, the balanced use of the various transport modes, as well as to achieve an enhanced competitiveness of European industry. Achieving these objectives in the short term requires a large-scale research effort to encourage the deployment of technologies already under development and to help promote changes in energy consumption behaviour and transport demand patterns. The longer term implementation of sustainable development requires an equally strong RTD effort to assure the economically attractive availability, and overcome the potential barrier to adoption, of renewable energy sources, hydrogen and fuel cells that are intrinsically clean.

Research priorities

i) Research activities having an impact in the short and medium term

Community RTD activity is one of the main instruments which can serve to change significantly current unsustainable patterns of development, characterised by growing dependence on imported fossil fuels, continually rising energy demand, increasing congestion of the transport system, and growing CO2 emissions, by offering new technological solutions which could positively influence consumer/user behaviour in the short and medium term. Proposed technological solutions are expected to emerge from, and to be demonstrated in, consumer/user pilot-environments, addressing technical but also organisational, institutional, financial and social issues.

- Renewable energy sources, more efficient and clean use of energy, especially in urban areas, new concepts of energy efficient and cleaner transport: the objective is to develop energy efficient technologies that reduce demand for fossil fuels by stimulating energy efficient behaviour in disparate user communities and bring about energy savings of 12% by 2010, as well as to tilt the energy balance towards more sustainable energy systems, which combine heat and power as well as new and renewable sources, and thereby increase the share of renewable energy systems from 6% to 12% by 2010.

Research will focus on : increased cost efficiency and reliability of the main new and renewable sources, and their combination with conventional large-scale and distributed generation; efficiency in building, district heating systems and CHP; demand side action for reducing gas and electricity consumption; new forms of clean urban transport; rationalisation of the use of the private vehicle; integration of new concepts for energy efficient vehicles and new/alternative fuels.

- Sustainable transport: The Common Transport Policy forecasts a transport demand growth by 2010 in the European Union of 38% for freight and 24% for passenger transport (base-year 1998). The already congested transport networks will have to absorb the additional traffic, and the trend suggests that the proportion absorbed by the less sustainable modes is likely to grow. The objective is consequently both to fight against congestion and to decelerate or even reverse this unsustainable trend by rebalancing transport modes. Short and medium term actions will develop and integrate new concepts and technologies into the transport system.

Research will focus on: safer and more environmentally friendly transport, in particular for the road and maritime sectors; integration of intelligent transport systems for the efficient management of infrastructure; enabling railway interoperability; development of intermodality for passengers and freight, in particular through better management of the logistic chain and standardisation of loading units.

ii) Research activities having an impact in the longer term

In the longer term the objective is to develop renewable energy sources, hydrogen technologies and fuel cells which are intrinsically clean and which can be well integrated in a sustainable energy supply mix both for stationary and for transport applications. This to bring about further reduction in greenhouse gas emissions beyond the Kyoto deadline of 2010. The future large-scale development of these technologies will depend on significant improvement in their cost and other aspects of competitiveness against conventional energy sources.

- Fuel cells: these represent an emerging technology which is expected, in the longer term, to replace a large part of the current combustion systems in industry, buildings and road transport, as they have a higher efficiency, lower pollution levels and a potential for lower cost. The long term cost target is 50 euro/kW for road transport and 300 euro/kW for high-durability stationary applications and fuel cell/electrolysers.

Research will focus on : cost reduction in fuel cell production and in applications for buildings, transport and de-centralised electricity production; advanced materials related to low and high temperature fuel cells for the above applications.

- Hydrogen: the objective to establish hydrogen as an energy carrier is key in a future sustainable energy economy. The long term aim is to achieve an energy cost which is equivalent to that of conventional fuels without tax.

Research will focus on : clean cost-effective production of hydrogen from fossil fuels (including CO2 capture and underground storage); cost-effective hydrogen production by electrolysis from renewable and nuclear energy; hydrogen infrastructure including transport, distribution, storage and utilisation.

- Solar photovoltaic technologies and biomass: photovoltaics have, in the long term, the potential to make a large contribution to the world and EU energy supply. The objective is to overcome the major bottleneck of high investment costs, which should be reduced by a factor of 4. The overall objective for biomass is to make bioenergy competitive with conventional fuels.

Research will focus on : (photovoltaics) the whole production chain from basic material to the PV system, as well as integration of PV in habitat and large scale MW-size PV systems for production of electricity; (biomass) barriers in the biomass supply-use chain in the following areas : combustion technologies, gasification technologies for electricity and H2/syngas production and biofuels for transport.

1.1.6.2 Global Change

Global Change encompasses the complex dynamic changes over different time-scales in the physical, chemical and biological components of the Earth system (i.e. atmosphere, oceans and land) in particular those influenced by human activities. The objective of this priority area is to strengthen the capacity to understand, detect and predict global change and develop strategies for prevention, mitigation and adaptation, in particular in relation to all types of greenhouse gases, in close liaison with the relevant international research programmes and in the context of relevant conventions such as the Kyoto Protocol. Such an objective will be best achieved through activities aiming at the development of common and integrated approaches necessary to implement sustainable development, taking into account its environmental, economic and social aspects, as well as the impact of global change on all countries and regions of the world. It will foster the convergence of European and national research efforts for a consensual definition of the scientific thresholds of sustainability and estimation methods, and encourage international co-operation in order to achieve common strategies to respond to global change issues.

Research priorities

- Impact and mechanisms of greenhouse gas emissions on climate and carbon sinks (oceans, forests and soil): the objective is to detect and describe global change processes, improve prediction of their global and regional impacts, evaluate mitigation options and improve the access of European researchers to facilities and platforms for global change research.

Research will focus on: understanding and quantification of changes in the carbon and nitrogen cycles and the role of sources of all greenhouse gases, and sinks in the terrestrial and ocean biosphere; influence of and effects on climate dynamics and variability, ocean and atmospheric chemistry, and their interactions; understanding and prediction of global climatic change; associated phenomena (e.g. El Niño, stratospheric ozone depletion, changes in sea level and ocean circulation); and impacts.

- Water cycle: the objective is to assess the impact of global change and in particular climate change on the water cycle, water quality and availability, to provide the bases for management tools to mitigate the impacts.

Research will focus on: impact of climate change on hydrological variables, groundwater/surface water distribution, freshwater and wetland ecosystems and water quality; the driving role of oceans in the global water cycle; management strategies and their impacts; scenarios of water demand and availability.

- Biodiversity, protection of genetic resources, functioning of terrestrial and marine ecosystems and interactions between human activities and the latter: the objectives are to develop a better understanding of marine and terrestrial biodiversity and of ecosystem functioning, understand and minimise the impacts of human activities on them and ensure sustainability of natural resources.

Research will focus on: assessing and forecasting changes in biodiversity, structure, function and dynamics of ecosystems and their services; relationships between society, economy, biodiversity and habitats; integrated assessment of drivers affecting biodiversity and mitigation of biodiversity loss; risk assessment, management, conservation and rehabilitation options.

- Mechanisms of desertification and natural disasters connected with climate change: the objective is to elucidate the links between climatic change and the mechanisms of desertification and natural disasters, so as to improve risk and impact assessment and forecasting, decision support methodologies, and strategies for sustainable land and coastal management.

Research will focus on: large scale integrated assessment of land/soil degradation and desertification in Europe and related prevention and mitigation strategies; long term forecasting of hydro-geological hazards associated with global climate change; natural hazard monitoring, mapping and management strategies; improved disaster preparedness and mitigation.

- Global climate change observing systems: the objective is to make systematic observations of climate parameters so as to strengthen climate change research, consolidate long-term observations for the modelling and forecasting of the marine, terrestrial and atmospheric environment, establish common European data bases and contribute to international programmes.

Research will focus on: observations of basic marine, terrestrial and atmospheric parameters necessary for global climate change research and management strategies, and of extreme events; large observing/monitoring/ surveying/modelling networks (taking into account the developments of GMES and providing the European dimension to G3OS).

1.1.7 Citizens and Governance in the European Knowledge-based society

The Lisbon European Council recognised that the transition towards a European knowledge based society will affect every aspect of people's lives. The overall objective is to provide a sound knowledge base for the management of this transition, which will be conditioned by national, regional and local policies, programmes and actions, as well as informed decision making by individual citizens, families and other societal units.

Given the complexity, breadth and interdependence of these challenges and the issues involved, the research approach adopted must be based on greatly enhanced research integration, multi and transdisciplinary cooperation, and on the mobilisation of the social sciences and humanities research communities in Europe in addressing them. Activities will also facilitate the identification of medium to long term societal challenges arising from research in social sciences and humanities and will ensure the active participation of key societal stakeholders and the targeted dissemination of the work carried out. In order to support the development of comparative transnational and interdisciplinary research, while at the same time preserving the diversity of research methodologies throughout Europe, the collection and analysis of better and more genuinely comparable data and the coordinated development of statistics and qualitative and quantitative indicators in particular in the context of the emerging knowledge society at the European level is essential.

Appropriate coordination of socio-economic research and foresight elements across all the Priorities of this programme will be assured .

Research priorities

i) Knowledge-based European Society

The building of a European knowledge society is a clear political objective for the European Community. The research aims to provide the basis of understanding needed to ensure this takes place in a manner which accords with specific European conditions and aspirations.

- Improving the generation, distribution and use of knowledge and its impact on economic and social development. The objective is to improve significantly understanding of the characteristics of knowledge and its functioning as a public and private good, and to provide the bases for policy formulation and decision making.

Research will focus on: characteristics of knowledge and its functioning in relation to the economy, society and innovation; and the transformation of economic and social institutions; the dynamics of knowledge production, distribution and use, role of knowledge codification and impact of ICTs ; the importance of territorial structures and social networks in these processes.

- Options and choices for the development of a knowledge-based society serving the EU objectives set at the Lisbon summit: The objective is to develop an integrated understanding of how a knowledge-based society can promote the societal objectives of sustainable development, social and territorial cohesion and improved quality of life, with due consideration to the variety of social models in Europe.

Research will focus on: features of a knowledge based society in line with European social models and the need to improve the quality of life; social and territorial cohesion, gender and intergenerational relations and social networks; implications of changes to work and employment; access to education and training, and life-long learning.

- The variety of paths towards a knowledge society. The objective is to provide comparative perspectives across Europe and thus provide an improved basis for the formulation and implementation of transition strategies towards a knowledge society at the national and regional levels.

Research will focus on: globalisation in relation to pressures for convergence; the implications for regional variation; challenges to European societies from a diversity of cultures and increased sources of knowledge; the role of the media in this context.

ii) Citizens, democracy and new forms of governance

The work will identify the main factors influencing changes in governance and citizenship, as well as the impacts of these changes and the possible options to enhance democratic governance, resolve conflicts, protect human rights and take account of cultural diversity and multiple identities.

- The implications of European integration and enlargement for governance and the citizen: The objective is to clarify the key interactions between European integration and enlargement, and issues of democracy, institutional arrangements and citizens' well-being.

Research will focus on: relationships between integration, enlargement and institutional change within a historical and comparative perspective; the implications of a changing global context and the role of Europe; the consequences of an enlarged European Union for the well-being of its citizens.

- Articulation of areas of responsibility and new forms of governance: The objective are to support the development of forms of multi-level governance which are accountable, legitimate, and sufficiently robust and flexible to address societal change including integration and enlargement, and to assure the effectiveness and legitimacy of policy making.

Research will focus on: the articulation of responsibilities between various territorial levels and between public and private sectors; democratic governance, representative institutions and roles of civil society organisations; privatisation, the public interest, new regulatory approaches, corporate governance; implications for legal systems.

- Security issues connected with the resolution of conflicts and restoration of peace and justice: the objectives are to support the development of institutional and social capacity in the field of conflict resolution, identify factors leading to success or failure in preventing conflict, and develop improved options for conflict mediation.

Research will focus on: early identification of factors leading to conflict within and between countries; comparative analysis of procedures for prevention and mediation of conflicts and achievement of justice in different fields; Europe's role in regional and international arenas in these respects.

- New forms of citizenship and identities: The objectives are to promote citizens' involvement and participation in European policy making, as well as to understand perceptions and impacts of European citizenship and human rights provisions, and factors that allow mobility and coexistence of multiple identities.

Research will focus on: relations between new forms of citizenship including rights of non-citizens; tolerance, human rights, racism and xenophobia; the role of the media in the development of a European public sphere; evolution of citizenship and identities in a context of cultural and other diversities and increasing population flows; implications for the development of a European knowledge based society.

1.2. Anticipating the EU's scientific and technological needs

Activities under this heading will have the following overall objectives:

- To provide support for policy in areas of high interest to the EU, and where specific research, or research complementing that carried out under the priority thematic areas, is needed

- To explore new and emerging scientific and technological problems and opportunities, including in particular interdisciplinary and multidisciplinary research areas, where European action is appropriate in view of the potential to develop strategic positions at the leading edge of knowledge and in new markets, or to anticipate major issues facing European society.

A common feature of these activities is that they will be implemented within a multi-annual perspective which takes direct account of the needs and viewpoints of the main associated actors (policymakers, industrial user groups, leading edge research groups, etc.)

The Joint Research Centre will contribute under its own programme to the aims of this part of the specific programme in accordance with its mission to support the development of EU policies.

i) Policy-orientated research and leading edge topics

These activities cover two categories of research:

- Research needed for the formulation, implementation and monitoring of the application of Community policies, bearing on the interests of possible future members of the Union as well as the existing member states, which may be described in the following non-exclusive terms:

- research in support of the implementation of common policies, including research for the common agricultural policy, and the common fisheries policy;

- research in support of Community policy objectives, including those set out in the 6th Environment Action Programme [18] and the Green Paper "Towards a European strategy for the security of energy supply"; [19] and the objectives of the Community transport policy;

[18] COM(2001)31.

[19] COM(2000)769.

- research in support of important objectives of the Community, such as those set by the European Commission for the five years of its mandate and those derived from the political orientations given by the European Council, for example in the Lisbon strategy, with regard to economic policy, in the fields of the Information Society and e-Europe, enterprise, social policy and employment, and education and culture, including the requisite statistical methods and tools;

- research needed for other Community policies, including in such fields as health, and in particular public health, regional development, trade, external relations and development aid, and justice and internal affairs.

- Research in response to needs in new interdisciplinary and multidisciplinary areas or areas at the leading edge of knowledge, in order to help European research cope with major specific and unforeseen developments, including in areas linked to the priority fields.

The activities will be carried out on the basis of a multiannual programming for each policy area and each leading edge topic identified as a priority. Multi-annual programming will be established from the outset for those research needs that can already be anticipated, complemented through annual evaluation procedures, in particular for those needs (relevant to either category of research) that can not be anticipated yet.

- For activities in support of Community policies, the evaluation will be conducted by a user group composed of different Commission Services, supported by the opinions of scientific committees in the relevant areas and of an independent consultation structure composed of high-level scientific and industrial experts. It will also be supported for the identification of needs by wide-ranging consulting of interested circles in the EU and the countries associated with the Framework Programme.

- The evaluation conducted by the user group will be based on the contribution of the research themes proposed to policy formulation and development (e.g. links with legislative proposals in preparation or with major deadlines in the area), as well as on the general criteria indicated below;

- For activities on leading edge topics, the evaluation will be conducted with the support of an independent consultation structure composed of high-level scientific and industrial experts.

- For both types of activities, evaluation will be based on the following criteria:

- the potential contribution of the research themes proposed for the EU's competitiveness, the strengthening of its scientific and technological bases and the achievement of the European Research Area;

- the scientific relevance and feasibility of the research themes and approaches proposed.

The programming may be altered by means of an emergency procedure based on the same evaluation criteria in the event of a crisis giving rise to urgent and unforeseen research needs.

The activities programmed will be carried out by means of calls for proposals. They will essentially take the form of:

- Targeted specific projects generally of a limited scale, carried out by means of partnerships of a size adapted to the needs to be covered.

- The networking of research activities carried out at national level where achieving the objectives pursued requires mobilising capacities existing in the Member States.

In certain duly justified cases, where the objectives pursued can be better attained in this way, limited use may be made of the instruments used in the priority thematic areas.

The proposals will be selected by the Commission following evaluation by independent experts.

ii) Specific research activities for SMEs

Objectives

Small and medium-sized enterprises (SMEs) play a crucial role in European competitiveness and job creation, not only because they represent the overwhelming majority of enterprises in Europe, but also because they are the source of dynamism and change in new markets, particularly those at the leading edge of technology. Although a heterogeneous community, they are all confronted by increased competition resulting from the completion of the European internal market and the need to innovate constantly and accommodate advances in technology. Besides this, an increasing number of SMEs both need and want to internationalise in search of new markets and business opportunities.

SMEs will participate, for the most part, in the activities implemented under the priority thematic areas of research within networks of excellence and integrated projects. In addition, specific schemes for SMEs in the form of actions on collective and cooperative research will be set up. These will be addressing primarily the large community of SMEs with a capacity to innovate but with limited research capability. However, the co-operative research scheme will be extended to provide support for new, high-tech SMEs through arrangements catering specifically for their needs.

Overall, at least 15% of the budget relating to the "integrating research" part of this programme will be allocated to SMEs.

Collective Research

Collective research is a form of research undertaken by RTD performers on behalf of industrial associations or industry groupings in order to expand the knowledge base of large communities of SMEs and thus improve their general standard of competitiveness. Conducted on a European basis, through substantial projects of several years duration, this is an efficient way of addressing technological needs of significant sections of the industrial community.

Based on schemes existing in many member states, this measure aims at allowing industrial groupings to identify and express research needs that are common to large numbers of SMEs at European level. It should allow to improve the overall European technological basis of whole industrial sectors. By inter-linking industrial groupings in different countries and in financing larger projects with an increased responsibility for project co-ordinators, it will contribute to structuring the landscape of collective research in line with the objectives of the European Research Area.

Collective research projects could cover, for example :

- Research aimed at addressing common problems/challenges (e.g. to meet regulatory requirements, environmental performance)

- Pre-normative research (research to provide a scientific base for European norms and standards)

- Research aimed at reinforcing the technological basis of particular sector(s)

- Development of "technological tools" (e.g. diagnosis, safety equipment)

Projects will be managed, on the basis of well-defined guidelines, by industrial associations or other groupings established at European level, or at least 2 national industrial associations/groupings established in different European countries. European Economic Interest Groups representing the interests of SMEs are also eligible. A "core group" of SMEs associated to each project will monitor progress from the definition phase of the research to the dissemination of the results obtained.

A 2-step approach is envisaged in identifying topics and selecting proposals (call for outline proposals and, after those selected in a first round evaluation have been developed into complete proposal(s), evaluation and selection from amongst these). The level of funding and contractual arrangements of Collective research projects will depend on their objectives:

- projects aimed at strengthening the competitiveness of a specific industrial sector would benefit from a maximum Community contribution of 50% of the total eligible costs. In such cases the contracting party (the industrial groupings) would own the results.

- projects having a strong legislative or "public well-being" content (e.g. environmental protection, enhancement of public health), could obtain a higher funding. In such cases, the main emphasis will be on a Europe-wide dissemination of the research results.

In all cases, dissemination of the results amongst the SMEs would be foreseen through, for example, special training and demonstration ("take-up") actions.

Co-operative Research

Co-operative research is a scheme whereby a limited number of SMEs from different countries having specific problems or needs, outsource the required research to an RTD performer, while retaining ownership of the results. Projects are relatively short term and may address any research topic or field, being based on the specific needs and problems of the SMEs concerned. Other (non-SME) enterprises and end-users will be able to participate in co-operative research projects, under conditions ensuring they do not assume a dominant role, and have restricted access to the results.

Young high-technology SMEs, including "start-ups", may need to outsource specific basic research requirements to extend or renew the knowledge base underpinning their own research activities. In this case, the co-operative research scheme can be used by a single SME which needs to co-operate with an RTD performer from another country having the required specialised complementary research skills. Special provisions regarding access to the results will apply for such cases.

Co-operative research will be implemented via an open call for proposals. This activity will also be responsible for the co-ordination of a dedicated network of SME National Contact Points in the Member States and Associated States, providing SMEs at regional and national level with information and assistance on their participation in the Framework Programme, including in Networks of Excellence and Integrated Projects. Close co-ordination with the Economic and Technological Intelligence Actions and with the innovation support services, implemented under the heading "Research and Innovation", will ensure that SMEs benefit from all the foreseen instruments and activities.

iii) Specific international co-operation activities

The general objective of the international cooperation activities carried out under the Framework Programme is to help open up the European Research Area to the rest of the world. These activities represent the particular contribution of the Framework Programme to this opening-up process, which will require a joint effort by the Community and the Member States.

Under this heading, the activities in question have the following particular objectives:

- To help European researchers, businesses and research organisations in the EU and the countries associated with the Framework Programme to have access to knowledge and expertise existing elsewhere in the world.

- To help ensure Europe's strong and coherent participation in the research initiatives conducted at international level in order to push back the boundaries of knowledge or help to resolve the major global issues, for example as regards health and environment.

- To lend support, in the scientific and technological field, to the implementation of the Community's foreign policy and development aid policy.

Apart from opening up the networks of excellence and the integrated projects to participation by third-country researchers and institutions, international cooperation activities will take the form of specific activities.

Carried out in support of the Community's foreign policy and development aid policy, these specific activities will concern three groups of countries: the Mediterranean third countries, Russia and the CIS countries, and the developing countries.

They will be carried out in such a way as to complement the participation of researchers and entities in those countries in the networks of excellence and integrated projects which are open to them and in which they will participate in a variable way depending on the themes and countries.

The research priorities in this category of activities are defined on the basis of the interests and objectives of the Community's political partnership with the different groups of countries, as well as their particular economic and social needs.

They will therefore cover more particularly:

- In the case of the Mediterranean third countries, in support of the development of the Euro-Mediterranean partnership, issues relating to environment, health and water issues, as well as protection of the cultural heritage.

- In the case of Russia and the CIS countries, stabilisation of R&D potential, issues relating to changes in the industrial production system, environment and health protection and various safety aspects.

- In the case of the developing countries, the problems of health and public health, food safety, and the rational exploitation of resources.

These activities will be carried out by means of research, technological development and demonstration projects of a limited scale, actions to coordinate national efforts and, where necessary, specific support measures.

Cooperation activities with Russia and the CIS will be carried out in particular through the INTAS structure set up jointly by the Community and the Member States.

In all three cases, one of the major objectives is to help strengthen, stabilise, develop or adapt the local research systems.

Accordingly, the Framework Programme activities will endeavour to strengthen coordination and complementarity with activities carried out by means of financial instruments such as, in the case of the Mediterranean third countries, the MEDA Programme, in the case of Russia and the CIS countries the Tacis Programme and in the case of the developing countries the EDF (European Development Fund) and the ALA (Latin America/Asia) Fund. These activities can help to promote the development in those countries of human resources for research, research infrastructures and capabilities relating to innovation and exploitation of results.

2. Strengthening the foundations of the European Research Area

The establishment of the European Research Area depends on improving the coherence and co-ordination of research and innovation activities and policies conducted at national, regional and European level.

The objectives of Community action in this field are to stimulate and support programme coordination and joint actions among Member States and among European organisations as well as to develop the common knowledge base necessary for the coherent development of policies. The activities may be implemented in any scientific and technological area, including in the thematic priority domains.

2.1 Co-ordination of research activities

Coordination of national activities

The objective is to encourage and support initiatives undertaken by several countries, in areas of common strategic interest, to develop synergy between their existing activities through coordination of their implementation, mutual opening and mutual access to research results, as well as to define and implement joint activities.

The activities concerned must be understood as programmes or parts of programmes, instruments, plans or other initiatives undertaken at national or regional levels and involving public funding to support RTD work, the development of research capabilities, and the promotion of innovation. The activities may be undertaken directly by public authorities or research agencies at national or regional levels or through European co-operation frameworks such as the European Science Foundation (e.g. the collaborative scheme EUROCORES).

The Community will encourage and support initiatives aimed at networking national and regional activities and programmes, by supporting:

- the coordination of independent activities including their mutual opening;

- the preparation and the management of joint activities.

For this purpose, the Community will :

- support proposals selected following their submission in response to an open call for proposals (2 evaluations per year). Where appropriate, calls for expressions of interest, followed by targeted calls may be published.

Proposals may cover for instance strategic studies and planning, consultation of the research and innovation community, joint calls for proposals and peer review panels, exchange and dissemination of information and results, programme monitoring and evaluation, exchange of personnel.

Proposals will be evaluated taking into account in particular the following aspects: the scope of the resources mobilised, the scientific and technological relevance and impact, the expected improvement in the use of research resources at European level and where appropriate their contribution to promoting innovation.

- Develop an integrated information system, which will be easily accessible, user-friendly and updated regularly, to provide relevant information to:

- policy makers and programme managers: information on national research programmes, instruments, research activities undertaken and planned to help identify opportunities for co-ordination, networking or joint initiatives;

- the research community: information on national or joint programmes in which they can participate.

Co-ordination at European level

The objective is to enhance the complementarity and synergy between Community actions undertaken under the Framework Programme and those of other European scientific co-operation organisations as well as among these organisations themselves. Through increased co-ordination and collaboration the various European co-operation frameworks will contribute more effectively to the overall coherence of European research efforts and the establishment of a European Research Area. Community participation in international activities can be supported in duly justified cases.

- Scientific and technological co-operation activities carried out in other European co-operation frameworks

COST is a long-standing bottom-up mechanism that facilitates co-ordination and exchanges between nationally funded scientists and research teams in a variety of areas. In order for COST to continue to ensure a cost-effective contribution to research co-ordination within the European research area, its management arrangements must be adapted to the new context. This will entail the establishment by COST member states of an appropriate organisation to which financial support may then be granted under this programme.

Coordination with EUREKA will be strengthened to improve strategic coherence and complementarity of funding, in particular in the thematic priority areas. Joint information and communication actions will also be organised where appropriate.

- Collaboration and joint initiatives of specialised European scientific cooperation organisations

With regard to thematic European organisations, such as CERN, ESA, ESO, EMBL, ESRF, ILL, the Community will encourage and support specific initiatives aiming at strengthening the coherence and synergies between their activities and between them and Community actions, in particular through the development of joint approaches and actions on issues of common interest.

2.2 Coherent development of research and innovation policies

The objective of the activities to be carried out in this area is to encourage the coherent development of research and innovation policies in Europe thanks to the early identification of challenges and areas of common interest as well as by providing national and Community policymakers with knowledge and decision-aiding tools that can help them formulate policy.

The activities to be carried out to this end will take place in the following areas:

- Analyses and studies; work relating to foresight, statistics and science and technology indicators

These activities will include studies, analyses and foresight activities relating to scientific and technological activities and research and innovation policies in the context of the implementation of the European Research Area.

The activities relating to foresight will include in particular the development of thematic dialogue platforms and a knowledge base for users and producers of prospective analyses, the exploitation of good practices with regard to methodology, as well as the preparation of medium and long term scenarios for science and technology in Europe.

Work on indicators will involve the further development of relevant and harmonised indicators, taking into account the different dimensions of research and innovation and their impact on economy and society, for example for comparing the scientific and technological performance of the Member States and regions.

- Benchmarking of research and innovation policies at national, regional and European level

The first exercise to benchmark national RTD policies, which began in 2000, will be completed by mid 2002. In the light of this exercise, the methodology of the next benchmarking cycles, including the indicators, will be adapted and the exercises will be enlarged geographically by opening them up to the countries in the process of acceding to the EU and the associated countries, and will be extended to include other themes. Special attention will be paid to the dissemination and monitoring of the application of best practices in close collaboration with the Member States and the research actors.

The benchmarking work in progress in the field of innovation (gathering of information about innovation policies in Europe, development of the "innovation scoreboard" and organisation of "peer reviews" of innovation policies by "thematic clubs" of policymakers) will be extended so as to open them up geographically, in social terms as a result of involving the innovation stakeholders, and in regional terms.

- Mapping scientific and technological excellence in Europe

The activities on mapping excellence will be expanded according to two guidelines, increasing the number of themes covered and regularly updating the results.

Special attention will be paid to the very broad dissemination of the information available as well as to the coordination of mapping with the activities aimed at promoting the integration of research efforts in Europe.

- Improving the regulatory and administrative environment for research and innovation in Europe

The objective here is to examine and analyse regulatory and administrative obstacles, to identify and disseminate good management practices and to help formulate new approaches. The following are some of the areas that will be concerned: intellectual and industrial property; public-private relations with regard to research and innovation; the exploitation and dissemination of knowledge; the rules governing access to new products or services on the market; mechanisms for funding research and innovation and encouraging investment, in particular by the private sector.

ANNEX II

INDICATIVE BREAKDOWN OF THE AMOUNT

&gt;TABLE POSITION&gt;

ANNEX III - MEANS FOR IMPLEMENTING THE PROGRAMME

In order to implement the specific programme, and in accordance with the Decisions of the European Parliament and of the Council concerning the multiannual Framework Programme 2002-2006 of the European Community for research, technological development and demonstration activities aimed at contributing towards the creation of the European Research Area (2002/.../EC) and with the rules for the participation of undertakings, research centres and universities and for the dissemination of research results (2002/.../EC), the Commission will use various instruments.

The Commission will evaluate the proposals in accordance with the evaluation criteria set out in the above mentioned Decisions in order to verify their relevance with regard to the objectives of the programme, their scientific and technological excellence, their Community added value and the participants' management capacity.

The Community contribution will be granted in accordance with the above mentioned decisions. In the case of participation of bodies from regions lagging in development, it may be possible to obtain complementary funding from the Structural Funds within the limits specified by the Community framework for state aid for research.

A. New instruments [22]

[22] As well as the funding of national programmes carried out by several Member States in accordance with Article 169 of the Treaty.

A.1 Networks of excellence

Networks of excellence are implemented in the seven priority thematic areas of the Framework Programme and, in duly justified cases, in research areas meeting the needs of Community policies and as well as in new and emerging areas.

The objective of this instrument is to strengthen European scientific and technological excellence by means of a progressive and lasting integration of research capacities existing or emerging in Europe at both national and regional level. Each network will aim at advancing knowledge in a particular area by assembling a critical mass of skills.

In general, the network will be organised around a core group of participants to which others may be added. In order to create a virtual centre of excellence, they will integrate a considerable part or even the totality of their research activities in the area concerned. These activities will often be multidisciplinary, and oriented towards long-term objectives and not precise predefined results in terms of products, processes or services.

In addition to these integrated research activities, the network's joint programme of activities will also comprise integration activities as well as activities related to spreading of excellence outside the network.

In pursuing its objectives, the network will therefore carry out:

- Research activities integrated by its participants

- Integration activities which will comprise in particular:

- adaptation of the participants' research activities in order to strengthen their complementarity;

- development and utilisation of electronic information and communication means, and development of virtual and interactive working methods;

- short-, medium- and long-term exchanges of personnel, the opening of positions to researchers from other members of the network, or their training;

- development and use of joint research infrastructures, and adaptation of the existing facilities with a view to a shared use;

- joint management and exploitation of the knowledge generated, and actions to promote innovation.

- Activities of spreading of excellence which will comprise, as appropriate:

- training of researchers;

- communication concerning the achievements of the network and the dissemination of knowledge;

- services in support of technological innovation in SMEs, aimed in particular at the take-up of new technologies;

- analyses of science/society issues related to the research carried out by the network.

In carrying out some of its activities (such as training of researchers), the network will endeavour to ensure publicity by publishing calls for applications.

The size of the network may vary according to the areas and subjects involved. As an indication, the number of participants should not be less than half a dozen. On average, in financial terms, the Community contribution to a network of excellence may represent several million euros per year.

The network proposals should comprise the following elements:

- a general outline of the joint programme of activities, and its content for the first year, broken down into research activities, integration activities, and activities for spreading excellence;

- the role of the participants, identifying the activities and resources that they will integrate;

- the operation of the network (coordination and management of activities);

- the plan for the dissemination of knowledge and the perspectives as regards exploitation of the results.

The partnership may evolve when necessary, within the limit of the initial Community contribution, by replacing participants or adding new ones. In most cases, this will be done through publication of a call for applications.

The programme of activities would be updated yearly and would entail a reorientation of certain activities or launching of new ones not initially foreseen, which could involve new participants. The Commission may launch calls for proposals with a view to the allocation of additional contribution in order to cover, for example, an extension of the integrated activities of the existing network or the integration of new participants.

The Community's financial contribution will be a specified amount linked to the implementation of a set of work, initially calculated on the basis of the resources dedicated to carrying out the joint programme of activity and paid on an annual basis, taking into account activities and financial reports. As a complement to the resources of the participants, it should be sufficient to act as an incentive for integration, but without creating a financial dependence that might jeopardise the lasting association of the network.

A.2 Integrated projects

Integrated projects will be implemented in the seven priority thematic areas of the Framework Programme and, in duly justified cases, in research areas meeting the needs arising from the implementation of Community policies as well as in new and emerging areas.

The objective of this instrument is to strengthen European competitiveness or contribute to resolve major societal problems by mobilising a critical mass of research and technological development resources and skills existing in Europe.

Accordingly, each integrated project will have the aim of obtaining identifiable scientific and technological results applicable to products, processes or services. The activities carried out in the context of an integrated project will have by definition clearly defined objectives even in the case of risky research.

In general, the participants in the projects will be organised around a core group made up of the main participants. All the activities carried out in the context of an integrated project will be defined in the general framework of an "execution plan" comprising activities relating to:

- research, technological development and/or demonstration;

- management, dissemination and transfer of knowledge with a view to promoting innovation;

- analysis and assessment of the technologies concerned, as well as the factors relating to their exploitation.

In pursuit of its objectives, it may also comprise activities relating to:

- training researchers, students, engineers and industrial executives, in particular for SMEs;

- support for the take-up of new technologies, in particular by SMEs;

- information and communication, and dialogue with the public concerning the science/society aspects of the research carried out within the project.

The size of an integrated project may vary according to the themes and subjects, depending on the critical mass necessary in order to obtain the expected results under the best possible conditions.

The combined activities of an integrated project may represent a financial size ranging from several million euros to several tens of millions of euros.

In most cases an integrated project will comprise a set of specific actions, relating to certain aspects of the research needed to achieve the objectives pursued, of variable sizes and structures according to the tasks to be executed, implemented in a closely coordinated manner. In some cases, however, an integrated project may take the form of a single large project with a single component.

Integrated project proposals should comprise the following elements:

- the scientific and technological objectives of the project;

- the main lines and timetable of the execution plan, highlighting the articulation of the various components;

- the stages of implementation and the results expected in each one of them;

- the role of the participants within the consortium and the specific skills of each of them;

- the organisation and management of the project;

- the plan for the dissemination of knowledge and the exploitation of results;

- the global budget estimate and the budget for the different activities, including a financial plan identifying the various contributions and their origin.

The partnership may evolve when necessary, within the limits of the initial Community contribution, by replacing participants or adding new ones. In most cases, this will be done through publication of a call for applications.

The execution plan will be updated yearly. This updating may entail the reorientation of certain activities and the launching of new ones. In the latter case, and where an additional Community contribution is needed, the Commission will identify these activities and the participants who will carry them out, by means of a call for proposals.

The Community contribution will be part of a financing plan which may involve recourse to other financing schemes, in particular Eureka or the instruments of the EIB or the EIF. It may amount to up to 50% of the total project budget, broken down into budgets per activity. It will be paid annually on the basis of the proposed execution plan, and adjusted according to the activities and the financial reports.

A.3 Collective research projects

Implemented across the whole field of science and technology, these projects will be carried out by research entities for the benefit of industrial associations or groupings, in areas and on subjects of interest to a large number of SMEs confronted with common problems.

B Other instruments

In order to implement the programme, la Commission may also have recourse to:

- specific targeted projects in order to carry out research or demonstration activities in areas meeting the needs of Community policies, new or emerging needs, and specific international cooperation activities.

- cooperative research projects across the whole field of science and technology, to enable SMEs to have access to entities with appropriate research capacities to carry out specific research activities.

- coordination and specific support actions in order to achieve the objectives identified in the programme and relating to the needs of Community policies, new or emerging needs, specific international cooperation activities, and the strengthening of the foundations of the European Research Area.

- accompanying actions by way of additional measures to achieve the objectives of the programme or prepare future activities in the context of the Community's research and technological development policy.

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Research

Activity(ies): Research actions under the EC Treaty

TITLE OF ACTION:

Proposal for a Council Decision adopting a specific programme for research, technological development and demonstration activities aimed at «Integrating and strengthening the European Research Area».

1. BUDGET LINE(S) + HEADING(S)

Subsection B6 6 Indirect Actions: these lines will be specified at the beginning of the 2003 budget procedure, taking into account the ABB nomenclature, which is being drawn up.

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): EUR12 505 million for commitments

2.2. Period of application:

2002-2006

2.3. Overall multiannual estimate of expenditure:

a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1

EUR million (to 3rd decimal place)

&gt;TABLE POSITION&gt;

b) Technical and administrative assistance and support expenditure (see point 6.1.2)

This budget category does not apply in this field.

c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

&gt;TABLE POSITION&gt;

&gt;TABLE POSITION&gt;

2.4. Compatibility with the financial programming and the financial perspective

|X| Proposal compatible with the existing financial programming

| | This proposal will entail reprogramming of the relevant heading in the financial perspective.

| | This may entail application of the provisions of the Interinstitutional Agreement.

2.5 Financial impact on revenue

| | No financial implications (involves technical aspects regarding implementation of a measure)

|X| Financial impact - the effect on revenue is as follows:

Certain Associated States will contribute to the funding of the Specific Programme.

The association agreements are linked to a Framework Programme. Their renewal will be renegotiated following adoption of the new Framework Programme and it is therefore impossible to forecast the amount of revenue in question.

In accordance with Article 27 of the Financial Regulation, certain revenue may be reused.

3. BUDGET CHARACTERISTICS

&gt;TABLE POSITION&gt;

4. LEGAL BASIS

Article 166 of the EC Treaty.

Proposal for a Decision of the European Parliament and of the Council adopting the framework programme 2002-2006 of the European Community for research, technological development and demonstration activities aimed at contributing towards the creation of the European Research Area.

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention

5.1.1 Objectives pursued

As recognised at the highest political level by the European Council in Lisbon, Feira, Nice and again recently in Stockholm, research is a central component of the knowledge-based economy and society developing worldwide. The objective set for the EU in Lisbon was "to become the most competitive and dynamic knowledge-based economy in the world, capable of sustainable economic growth, more and better jobs and greater social cohesion" over the next decade. More than ever, research is proving to be one of the main driving forces for economic and social progress, a key factor in business competitiveness, employment and the quality of life. In addition, science and technology are key elements in the policy-making process at both EU and national level.

However, Europe still has structural weaknesses where research is concerned. These can be summed up in four main points:

I. Insufficient and dispersed investment in research and technological development and more generally in knowledge (RTD, education and software), with the result that we are lagging behind our competitors. In 1999, the EU invested EUR 76 billion less than the US in research and development. It is now lagging behind its competitors in terms of research spending as a proportion of GDP (in 1999, the figure was 1.9% for the EU compared with 2.6% for the US and 2.9% for Japan [23]). In 1999, the US invested some 9% in knowledge, ahead of the EU (7.6%) and Japan (6.9%). And the gap is continuing to widen.

[23] 1998 figure.

II. Insufficient human resources in research. Researchers represent 5.3/1000 of the workforce in the EU (1998), 7.4/1000 in the US (1993) and 8.9/1000 in Japan (1998) where there are twice as many researchers in industry. Direct public spending on higher education corresponds to 0.9% of GDP in the EU, 1.4% in the US and 0.5% in Japan (1997)

III. A limited capacity to translate scientific breakthroughs into innovative and competitive products and services, despite high-quality scientific production. The figures for the number of patents granted by the European, American and Japanese patents offices per million inhabitants are 32 in the EU, 49 in the US and 88 in Japan. In 1998, the trade balance for high-tech products was a EUR28 billion deficit for the EU (a trend confirmed throughout the decade), compared with a EUR8 billion deficits for the US and an EUR 39 billion surplus for Japan. Risk capital investment in the advanced sectors corresponds to 80% in the US and, while it is on the increase, only 26 % in the EU and 23% in Japan.

IV. A fragmentation of research policies in Europe. The EU has not yet adopted a fully-fledged research policy. The 15 national policies co-exist side by side and alongside the Community framework programme without adequate coordination between them to achieve efficient organisation and exploitation. This lack of coordination also affects the establishment and efficient exploitation of research infrastructures.

To alleviate this situation, the Commission has proposed and Council and Parliament have endorsed the creation of a "European Research Area". Bringing it about will necessarily be the product of a joint effort by the Community, the Member States and research stakeholders. The Community research framework programmes (2002-2006) and the specific programmes will make a contribution to this in particular through the significant leverage effect that they can have for integrating, coordinating and structuring research in the EU and strengthening the foundations of the European Research Area.

A structural change in the EU's S&T fabric to remedy the above mentioned weaknesses will need resources commensurate with the objective. The Commission has proposed funding for the framework programme totalling EUR 17.5 billion, corresponding to the previous level of funding plus inflation and growth (but still representing only 5 to 6% of public spending on RTD). The Commission takes the view that this sort of amount could have a significant effect on the research system as such, improve at least some of the overall research indicators, and have a significant effect in the priority areas of the framework programme which will generate growth in the EU. In overall terms, this level of funding will make it possible to maintain the Community's RTD effort expressed as percentage of GDP at its present level during the period 2003-2006.

The plan is to implement the framework programmes by five specific programmes, three of which come under the European Community Treaty and two under the European Atomic Energy (Euratom) Treaty. Each specific programme is identified according to the nature of the instruments deployed, reflecting the objectives and organisation of the framework programme:

- A programme on "Integrating and strengthening the European Research Area" comprising the indirect actions proposed under the heading "Integrating research" and under the heading "Strengthening the foundations of the European Research Area", thus bring together research and coordination activities.

- A programme on "Structuring the European Research Area", comprising horizontal, support and structuring activities.

- Two "Joint Research Centre (JRC)" programmes comprising the direct actions carried out by the JRC in the non-nuclear and nuclear fields respectively.

- A "Nuclear energy" programme comprising the indirect actions carried out in the field of nuclear energy.

There is a clear correspondence between the first two programmes and the four activities mentioned in Article 164 of the EC Treaty. The amounts deemed necessary for these two specific programmes reflect the correspondence in Annex II to the framework programme proposal, on the one hand the respective shares of the various activities, and on the other the indicative breakdown of the maximum overall amount between the blocks and categories of activities.

The need for coherent utilisation of the three new instruments for the integration of research activities in Europe makes it necessary to implement the actions proposed in the various priority thematic areas by means of a single specific programme. Similarly, carrying out a substantial proportion of the international cooperation activities in the form of opening up networks and projects to participation of third country researchers and organisations makes it necessary to integrate activities in this area and the research activities in a single programme.

Lastly, the particular character of JRC activities, as well as the need to ensure that it has sufficient budgetary autonomy, justify a separate specific programme in the EC field and in the Euratom field.

The objectives of the specific programme on "Integrating and strengthening the European Research Area" are set out below by action areas, together with their justification and the European added value that they can provide.

1. Integrating the european research area

1.1. Priority thematic areas

1.1.1. Genomics and biotechnologies for health

The actions carried out in this area are intended to help Europe to exploit, by means of an integrated research effort, the results of breakthroughs achieved in decoding the genomes of living organisms, more particularly for the benefit of public health and citizens and to increase the competitiveness of the European biotechnology industry.

Justification and European added value

- Need to develop the knowledge base, tools and resources necessary for exploiting the full potential of genome information that underpins applications, by integration of the research capacities across Europe to increase coherence and achieve critical mass.

- Major breakthroughs are expected in the creation of new products, processes, services as regards health care and medicine in the field of postgenomics research

- There is a global emergency caused by the 3 major communicable diseases (HIV/AIDS, malaria, and tuberculosis) that make up 60 % of the total disease burden in developing countries.

1.1.2. Information society technologies (IST)

The actions carried out in this area, in line with the conclusions of the European Council in Lisbon and the objectives of the e-Europe initiative, are intended to stimulate the development in Europe of technologies and applications at the centre of the construction of the Information Society in order to increase the competitiveness of European industry and allow European citizens in all EU regions the possibility of benefiting fully from the development of the knowledge-based society.

Justification and European added value

- Requirement for the development of Europe's knowledge-based economy and society as agreed at the Lisbon Council. Europe has to increase its research effort in IST: Half of RTD in IST in OECD countries is concentrated in the US, 25% in Japan and only 15% in Europe.

- Public sector has a critical role in supporting high-risk and/or long term research in IST and in bringing together key actors in the field from industry and academia so as to further develop key technologies and their applications, to explore ground-breaking ideas and to improve efficiency and impact of research investment.

- Community effort in RTD in IST provides a unique opportunity to aggregate the fragmented research effort of the Member States and to build solutions which are interoperable and implementable across the Member States.

- Experience shows that only a sustained and appropriate research effort in IST can have the desired impact. In Europe, the effort of countries like Finland is a direct illustration of the benefit of RTD investment in IST. IST has been a research priority for more than 30 years and the relevant RTD investment is the highest as a percentage of GDP worldwide.

- The IST sector now has an annual turnover of EUR 2000 billion worldwide and employs more than 12 m. persons in Europe. Europe's role as an IST supplier is to be strengthened. The trade deficit of the EU in IST is of about 28 BEuro for an EU market of about 500 BEuro and the deficit is growing by 12 % a year despite Europe's lead in mobile communications.

- IST has become a motor for overall economic growth as a result both of its own expansion and its increasing integration in other sectors. Research in applied IST in businesses, for e-commerce and e-work, opens new market opportunities and provides substantial productivity gains and improves competitiveness of all industries. The life cycles of IST based products and services are quickening and shortening and technology adoption curves are faster, underlining the acceleration of technology change.

- The emerging generation of IST will introduce a radical shift from the current 'PC-based' systems and the 'keyboard, mouse and screen' towards ambient intelligence systems which will enable all citizens to benefit from IST services.

- IST innovations provide powerful solutions to major societal challenges in healthcare, environment, learning, safety, mobility, and preservation of cultural heritage and employment.

- Progress is needed in IST for the development of all other major research fields including biotechnologies, physics, energy, etc.

1.1.3. Nanotechnologies, intelligent materials, and new production processes

The actions carried out in this area are intended to help Europe to achieve the critical mass of capacities needed to develop and exploit, in particular for eco-efficiency, leading edge technologies for the knowledge and intelligence-based products, services and manufacturing processes over the years to come.

Justification and European added value

- Need to maintain a strong position for Europe in these emerging markets

- Medium-term market for nanomaterials estimated at over EUR6 billion (medical equipment sector) and intelligent materials market estimated at several hundreds of billions of euros.

- Impact of "intelligent" materials on the development of industrial technologies and systems and indirectly on sectors such as energy, medicine, electronics, transport or construction.

- Importance of the manufacturing sector in Europe: 40 million jobs and EUR4,000 billion.

- Investments to be stepped up in the field of new production processes (at present some EUR1000 per capita compared with EUR 2000 per capita in the US).

1.1.4. Aeronautics and space

The aim of the actions carried out in this area is twofold: to consolidate, by integrating its research efforts, the position of the European aerospace industry vis-à-vis increasingly strong world competition; and to help exploit the potential of European research in this sector with a view to improving safety and environmental protection.

Justification and European added value

- Scale of investments needed (US investment in RTD three to six times higher depending on the sectors).

- Foreseeable needs concerning air transport on a world scale: some 14,000 aircraft in the next 15 years (market worth EUR1000 billion). Increase in air traffic of around 5% per annum for the next few decades or a doubling in the next 20 years.

- Importance of the satellite related markets (world annual turnover for satellites and launchers estimated at EUR40 billion).

- Support for the "single European sky" policy.

1.1.5. Food safety and health risks

The actions carried out in this area are intended to help establish the integrated scientific and technological bases needed to develop a system of production and distribution of safe and healthy food, and control of food-related risks, relying in particular on biotechnology tools, as well as health risks associated with environmental changes.

Justification and European added value

- Recent food scares have highlighted the multi-factorial and trans-border nature of the issues at stake

- The development of powerful and validated risk assessment methods requires the pooling of a wide range of expertise

- The agri-food industry is a very large job provider in Europe with more than 10 million employees

- Environmental factors contributing significantly to increasing incidence of cancer, allergy, asthma

- Increased consumer demand regarding traceability of food products

1.1.6. Sustainable development and global change

The activities carried out in this area are intended to strengthen the scientific and technological capacities needed for Europe to be able to implement sustainable development and make a significant contribution to the international effort to understand and control global change and preserve the equilibrium of ecosystems.

1.1.6.1. Technologies for sustainable development

Justification and European added value

- Uncertainties, interruptions of, or reductions in, energy supply, and even instability of energy prices, may have a severe negative impact on society and the economy.

- The probability of major climate change is strongly enhanced by the high and increasing level of CO2 emissions related to energy supply and use

- The EU's dependence on energy imports is already 50% and expected to rise over the coming years (if no action is taken), reaching 70% by 2020

- Renewable energy technologies typically have relatively higher costs than established fossil fuel based technologies

1.1.6.2. Global change

Justification and European added value

- Requirement for the faster development of Europe's capacity to predict, control and adapt to global change in order to maintain and improve the EU citizens' quality of life and contribute to the International Conventions (Kyoto protocol).

- The sustainable development concept needs to be integrated in the EU policies, in particular energy, transport, environment and enterprise.

- The estimated downward trend in ozone over Europe is of 7 % per decade and followed by an increasing trend of UV radiation.

- Climate change has an impact on natural resources in particular on water availability and quality, and on biodiversity.

- There will be an increased warming in the future with different not yet known impacts on Europe and its regions.

- The annual budget for this research area is estimated at EUR 2 billion world-wide and EUR 500 m at European level (FP 20% of the total EU contribution).

1.1.7. Citizens and governance in the European knowledge-based society

The actions carried out in this area are intended to mobilise in a coherent effort, in all their wealth and diversity, European research capacities in economic, political, social and human sciences with a view to understanding and addressing issues related to the emergence of the knowledge-based society and new forms of relationships between citizens and institutions.

Justification and European added value

- The need to understand the issues and options involved in the objective for the European Union "to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion", by building a European knowledge society

- The need to understand and have an informed discussion on the issues and options involved in the development and evolution of new forms of governance in an enlarging Europe and its implications for European citizens;

1.2. Anticipating the EU's scientific and technological needs

1.2.1. Policy-oriented research and leading edge topics

The aim is to develop research activities in support of other Community policies, on the one hand, and, on the other hand, to be able to launch research activities rapidly as unforeseeable scientific and technological needs appear.

Justification and European added value

- Need to develop research activities in support of other Community policies. This need has been confirmed by all the Commission services which implement Community policies.

- Need to be able launch rapidly research activities as unforeseeable scientific and technological needs appear. The rapid emergence of unforeseen needs such as, in the past, those connected with BSE, for example, have demonstrated the importance of this.

1.2.2. Specific research activities for SMEs

Carried out in support of European competitiveness and enterprise and innovation policy, the specific activities for SMEs are intended to help European SMEs in traditional or new areas to boost their technological capacities and develop their ability to operate on a European and international scale.

Justification and European added value

- SMEs account for 99.8% of European businesses, 66% of jobs and 55% of the EU's private sector turnover.

- It is estimated that SMEs contribute nearly 50% to the competitiveness of bigger businesses as suppliers or subcontractors.

- High-tech SMEs are making a growing contribution to research in sectors such as IT, multimedia and biotechnology.

- The framework programme for research and technological development (RDT) is an important instrument: over the last 5 years (1994-1999), over 20 000 European SMEs benefited from this opportunity and, according to a satisfaction survey, nearly 96% of them are satisfied with their choice.

1.2.3. Specific international cooperation activities

The general objective of the international cooperation activities carried out under the Framework Programme is to help open up the European Research Area to the world.

Specific activities will concern three groups of countries: the Mediterranean third countries, Russia and the States of the CIS, and the developing countries.

Justification and European added value

- Certain global issues (climate change, biodiversity, etc.) can only be addressed in partnership with third countries.

- Europe envisages privileged relations with certain groups of countries (NIS, Mediterranean countries, etc.). Scientific partnerships with those countries will facilitate the establishment and strengthening of these relations.

- Certain countries (developing countries, for example) are faced with specific problems necessitating coordinated action.

- The expertise and knowledge existing in the world is of interest to European researchers which should have access to them.

2. Strengthening the foundations of the European Research Area

2.1. coordination of research activities

The objective is to encourage and support initiatives undertaken by several countries, in areas of common strategic interest and to develop synergy between their existing activities through coordination of their implementation.

It is also to enhance the complementarity and synergy between Community actions undertaken under the Framework Programme and those of other European scientific co-operation organisations as well as among these organisations themselves.

Justification and European added value

- Avoid duplication and fragmentation of effort

- Reduce gaps between the most advanced and less advanced regions.

- Exploit the efforts already made with a view to collaboration between Member States.

2.2. Coherent development of research and innovation policies

The objective of the activities carried out in this area is to promote the coherent development of research and innovation policies in Europe through the early identification of challenges and areas of common interest as well as by supplying national and Community policy makers with knowledge and decision-aid tools that can help them formulate these policies.

Justification and European added value

- Need to use more systematically foresight results, in order to strengthen the ability to anticipate S&T-related issues at stake for Europe, to develop shared views on such issues, and more generally to create a strategic basis for European S&T policy

- Necessity to respond to the reinforced demand from S&T policy makers for a common base of relevant and comparable indicators

- Need for a strategic tool to improve the quality and efficiency of research policies: benchmarking national policies

- Respond to the need for research players and users to be able to locate specific expertise easily in the context of their activities.

5.1.2 Measures taken in connection with ex ante evaluation

An ex-ante evaluation was carried out by the Commission services when preparing the specific programme proposals. Its results reflect in particular:

- the recommendations of the five-year assessment of the framework programmes and specific programmes carried out by independent experts in the course of the year 2000;

- the Commission's mid-term review of the fifth framework programme (1998-2002) presented in COM(2000)612 of 4 October 2000 and detailed in Commission staff paper SEC(2000)1780 of 23 October 2000;

- wide-ranging consultations among the protagonists relating to the two communications on the European Research Area in the course of the year 2000 [24] and the framework programme proposal at the beginning of 2001;

[24] COM (2000) 6 of 18 January 2000 COM (2000) 612 of 4 October 2000

- a series of internal and external Commission studies relating to economic, political and foresight areas and the impact of RTD activities.

The results of the ex-ante evaluation carried out are reflected in particular in the choices made with regard to the structure of the programmes, the objectives and priorities and the implementing instruments.

The objectives and priorities were selected in accordance with the rigorous application of the criterion of European added value.

This covers the following aspects applied to the priority themes and activities selected, the justification and European added value of which are described in greater detail in point 5.1. and the expected results in point 5.2.

- Cost and scale of research beyond the possibilities of a single country, and need to assemble a critical mass of financial and human resources (e.g. genomics, nanotechnologies, aeronautics);

- Economic interest of collaboration (economies of scale) and as a result of its beneficial effects on the private research effort and industrial competitiveness (e.g. information society technologies, nanotechnologies, intelligent materials, new production processes, aeronautics and space and specific research activities for SMEs);

- Maintenance or development of the EU's position in RTD areas strategic for the EU (e.g. maintaining the strong position in aeronautics and mobile phones and developing the, at present, relatively low potential in solar photovoltaic energy) ;

- Need to combine complementary expertise present in different countries, more particularly to deal with interdisciplinary problems (e.g. food safety and health risks, sustainable development and global change, support for the coordination of research and innovation activities and coherent development of research policies);

- Links with the priorities and interests of the EU as well as with Community legislation and policies (e.g. aeronautics and space, food safety and health risks, sustainable development and global change, citizens and governance in the European knowledge-based society, international cooperation, anticipating the EU's S&T needs);

- Necessarily transnational nature of the research by virtue of the scale at which problems occur or for scientific reasons (e.g. food safety and health risks, sustainable development and global change, citizens and governance in the European knowledge-based society, international cooperation, support for the coordination of research and innovation activities; coherent development of research policies);

With regard to the implementing instruments, three main new instruments, which by their nature can only be implemented at Community level, have been designed to contribute to the establishment of:

- a critical mass needed and the integration of research

- closer links between the programmes and Member States' activities and coordination of national programmes

- cooperation in areas strategic for the EU and solutions to major challenges facing the EU

- the excellence and attractiveness of S&T in Europe

- dissemination and exploitation of S&T results throughout the EU.

To ensure the impact of Community efforts in the seven priority thematic areas of the Framework Programme, these three instruments will be the only ones employed in these areas. They are:

a) networks of excellence

The purpose of this instrument is to strengthen European scientific and technological excellence. Each network is intended to advance knowledge in a particular area by assembling a critical mass of skills. Targeted towards long-term objectives, the activities concerned, often multidisciplinary, are not aimed at precise predefined results in terms of products, processes or services but the progressive and lasting integration of research capacities existing or emerging in Europe at both national and regional level. To this end, in order to create a virtual centre of excellence the members of the network will implement a joint programme of activities integrating a substantial proportion or even the entirety of their activities in the area concerned.

b) integrated projects

The purpose of this instrument is to increase European competitiveness or help to resolve major societal problems by mobilising a critical mass of resources and research and technological development expertise existing in Europe. Accordingly, each integrated project will have the aim of obtaining a certain number of precise results in terms of products, processes or services. The activities carried out in the context of an integrated project will by definition be targeted even in the case of risky research. All the activities carried out in the context of an integrated project will fit into the general framework of an "implementation plan".

c) Participation in national programmes carried out jointly (under Article 169 of the Treaty)

The objective of this instrument is to promote and support the coherent and coordinated mobilisation for the benefit of the entire EU of the organised efforts (programmes) of the Member States in areas of common and priority interest to the Union. The aim is also to increase the impact of national efforts on an EU scale in matters of interest to many Member States. The national programmes in the priority research areas of the Framework Programme in question will be those carried out either by governments, regional authorities or national research organisations. Their joint implementation will entail the drawing up of harmonised work programmes, the coordination of the assignment of budgets; a redirection of certain actions to increase complementarity, and the launching of joint calls for proposals.

This instrument has never been used before as it presupposes a desire for mutual coordination between Member States and will require a more substantial preparation phase compared with more conventional projects. Nevertheless, the time is judged to be right - in particular following the Lisbon summit and the call for the open coordination method - for this type of instrument.

5.1.3 Measures taken following ex post evaluation

The recommendations of the five-year assessment of the framework programmes and the specific programmes carried out in 2000 have been taken into account in preparing the specific programme proposals, in particular those concerning:

- the need to make up for Europe's trailing position in the field of RTD compared with its competitors;

- the need for complementarity and coherence between national and Community RTD policies and the essential role of the Commission in achieving this objective;

- the beneficial impact of the framework programme which "fills a gap in Europe by enabling researchers in universities and in industry to carry out applied work together";

- the need to lighten the procedures of the 1998-2002 programme and the need to "rethink the structures and procedures for managing the framework programme";

- placing Community research activities in the broader context of a genuine European research policy;

- reinforcing the concentration of the programmes;

- continuing with the research needed to achieve the objectives of Community policies;

- the desired move towards an adapted range of instruments that are more flexible, taking account of all the possibilities offered by the Treaty.

In addition, the mid-term review of the fifth framework programme has resulted in particular in adjustments to the annual work programmes for the specific programmes, aimed at concentrating efforts to a greater extent and launching pilot projects for the measures envisaged for the next framework programme (networks, clusters, industrial platforms, larger-scale projects, etc.).

5.2. Actions envisaged and means of budget intervention

The actions envisaged for the specific programme on "Integrating and strengthening the European Research Area" are set out below presented by detailed action areas. This presentation makes it possible to highlight the estimated results expected, the contributions to the overall objectives of the framework programme or of the Community or potential performance parameters associated with these. These indications are intended as yardsticks and not definitively adopted goals.

A correspondence between the action areas and the types of instruments used is given further on in the form of a table.

1. Integrating the European Research Area

1.1. Priority thematic areas

1.1.1. Genomics and biotechnology for health

i) fundamental knowledge and basic tools for functional genomics

(Gene expression and proteomics, Structural genomics, Comparative genomics and population genetics, Bioinformatics)

ii) applications of genomics and biotechnology for health

(Technological platforms for the development of new diagnostic, prevention and therapeutic tools, Support for innovative research in genomics start-up companies)

iii) applications in medicine and public health

(Combating cancer, cardiovascular disease and rare diseases, Combating resistance to drugs, Studying the brain and combating degenerative diseases of the nervous system, Studying human development and the ageing process

iv) confronting the major communicable diseases linked to poverty

Expected results, contributions to overall objectives or potential performance parameters

- To increase the quality and performance of tools needed to exploit genome information (high throughput tools, suitable model organisms, and bioinformatics).

- To acquire more information on genes related to health or disease.

- To contribute to health care costs reduction through more precise diagnosis and better-targeted treatment.

- To target the reduction of cost and time for the development of new drugs (from bench to the market).

- To foster the competitiveness of Europe's biotechnology industry.

- To develop new in vitro tests as alternatives to animal experimentation.

- To increase the number of new effective vaccines and new therapies, in particular against infections acquired in hospital.

- To increase public and private investment in health research for developing countries.

- To increase number of partnerships between Europe and developing countries

1.1.2. Information Society technologies

i) Applied IST research addressing major societal and economic challenges

(Research on technologies for trust and confidence, Research addressing societal challenges, Research addressing work and business challenges, Complex problem solving in science, engineering, business and for society)

ii) Communication and computing infrastructures

(Communication and network technologies, Software technologies, services and distributed systems)

iii) Components and microsystems

(Micro, Nano and Opto-electronics, Micro and Nano Technologies, Microsystems, Displays)

iv) Knowledge and interface technologies

(Knowledge technologies and digital content, Intelligent surfaces and interfaces)

Expected results, contributions to overall objectives or potential performance parameters

- Strengthened and reinforced European leadership in IST. Reinforcement of Europe's successes in areas such as mobile communications, networks infrastructure, consumer electronics, microelectronics and embedded software. Indicators: Macroeconomic indicators on the supply of IST and IST share in GDP are appropriate evaluation measures.

- Next generation of terrestrial and satellite-based mobile and wireless systems, beyond 3G in Europe and integration of networks infrastructures around the next generation Internet. Indicators: Market share, technology adoption rate surveys.

- Electronic and mobile commerce solutions for anytime-anywhere trading and covering the whole value creation cycle of extended products and services. Indicators: Sectoral output data, including the service sector.

- Improved security of electronic transactions, enhancing privacy of IST applications and services and providing tools combating cyber crimes. Indicators: White-collar crime statistics.

- Broader inclusion of citizens in the Information Society, and more effective health, safety, mobility and environment management and support systems; Conception of assistive systems that will restore functions or compensate for disabilities. Indicators: User survey satisfaction ratings (e.g. on improvement in diagnostics), health and safety statistics.

- Solutions enabling citizens to learn when needed, at any time, wherever they wish and in the most suitable way. Development of solutions for eliciting, sharing, trading and delivery of organisational knowledge. Indicators: User surveys, questionnaires.

1.1.3. Nanotechnologies, intelligent materials, new production processes

i) nanotechnologies

(Long-term interdisciplinary research into understanding phenomena, harnessing processes and developing research tools, Nanobiotechnologies, Nanometre-scale engineering techniques to create materials and components, Development of handling and control devices and instruments, Applications in areas such as health, chemistry, energy, optics and the environment)

ii) intelligent materials

(Development of fundamental knowledge, Technologies associated with the production and transformation of new materials, Engineering support for materials development)

iii) new production processes

(Development of flexible and intelligent manufacturing systems, Systems research hazard control, Optimising the life-cycle of industrial systems, products and services)

Expected results, contributions to overall objectives or potential performance parameters

- To increase human and financial resources devoted to research in the private sector by the achievement of critical mass in this industrially oriented field.

- To increase the development and uptake of nanotechnologies, intelligent materials and new products processes in SMEs through their significant (&gt; 20%) participation in these activities.

- To minimise natural resource use emissions and waste within a product life-cycle approach

- To increase and integrate skills and competence across S&T disciplines and actors, including in the Candidate Countries

1.1.4. Aeronautics and space

i) aeronautics

(Increasing competitiveness, improving environmental impact with regard to engine emissions and noise, increasing aircraft safety, increasing the capacity and safety of the air transport system)

ii) space

(Galileo, GMES, Satellite telecommunications)

Expected results, contributions to overall objectives or potential performance parameters

- Maintain European leadership in aeronautics.

- Reduce aircraft direct operating costs by 20% and 50%, in the short and long term, respectively.

- Reduce by a factor of 2 the accident rates in the short term and by a factor of 5 in the long term

- Develop the capability of handling 16 million flights a year in 10 years.

1.1.5. Food safety and health risks

Epidemiology of food-related diseases and genetic susceptibilities

Environmental health risks

Impact of food on health (in particular products containing GMOs)

«Traceability» processes (in particular relating to genetically modified organisms including systems based on recent biotechnology developments)

Methods of analysis and detection of chemical contaminants and pathogenic microorganisms (viruses, bacteria, parasites, and new agents of the prion type)

Safer production methods and healthier foodstuffs (including those based on biotechnologies and on organic farming processes)

Impact of animal feed, and the use of sub-products of different origins for that feed, on human health

Expected results, contributions to overall objectives or potential performance parameters

- To define validated biomarkers of exposure or effects in relation to human health

- To increase the number of control analyses carried out in the food chain

- To increase the number of food crops and food animal strains/breeds

- To increase the number of safer production technologies

- To reduce total bacterial load in commercialised food products

1.1.6 Sustainable development and global change

1.1.6.1.Technologies for sustainable development

i) research activities having an impact in the short and medium term

(Renewable energy sources, more efficient and clean use of energy, especially in urban areas, new concepts of energy efficient and cleaner transport, Intelligent transport, re-balancing and integration of transport modes)

ii) research activities having an impact in the longer term

(Fuel cells, Hydrogen, Solar photovoltaic technologies and biomass)

Expected results, contributions to overall objectives or potential performance parameters

- To contribute to the political objective of reducing greenhouse gas emissions to levels of 8% lower than those of 1990 by 2010, and keeping the effort to sustain this trend beyond 2010 (Kyoto Protocol)

- To contribute to the doubling of the share (from 6% to 12%) of RES by 2010 (White Paper on Renewable Energy); 12% energy savings through rational use and demand reduction by 2010; reversing the trend towards an increase (from 50% to 70%) in the dependence on foreign energy supply.

- To contribute to the reduction in the longer term of new and renewable Energy costs to levels competitive with fossil fuel based sources

1.1.6.2. Global change

Impact and mechanisms of greenhouse gas emissions on climate and carbon sinks (oceans, forests and soil) Water cycle

Biodiversity, protection of genetic resources, functioning of terrestrial and marine ecosystems and interactions between human activities and the latter

Mechanisms of desertification and natural disasters connected with climate change

Global observation systems for climate change

Expected results, contributions to overall objectives or potential performance parameters

- To develop instruments to predict regional climatic change.

- To develop management tools to mitigate the impacts on water availability.

- To enhance european scientific contributions to relevant Conventions and policy making and thereby increase the coherence of Europe's research effort on the international scale.

- To evaluate the indirect effects in climate by non-greenhouse gases.

- To develop a network of biodiversity monitoring and to develop rehabilitation options.

- To elucidate links between climatic change and natural disasters.

- To develop instruments to better predict and mitigate the consequences of natural disasters (floods, storms, fires, avalanches, and landslides).

- To develop common European data bases on global change parameters.

1.1.7. Citizens and governance in the European knowledge-based society

i) Knowledge-based European Society

(Improving the generation, distribution and use of knowledge and its impact on economic and social development, Options and choices for the development of a knowledge-based society serving the EU objectives set at the Lisbon summit, The variety of paths towards a knowledge society)

ii) citizenship, democracy and new forms of governments

(The implications of European integration and enlargement for governance and the citizen, Articulation of areas of responsibility and new forms of governance, Conflict resolution, security, peace and justice, New forms of citizenship and identities)

Expected results, contributions to overall objectives or potential performance parameters

- To have available comparative studies, including data collection and development of methodologies, on the transition to the European knowledge society in the different areas of the economy and society

1.2. Anticipating the EU's scientific and technological needs

1.2.1.Policy-oriented research and leading edge topics

Research needed for the formulation, implementation and monitoring of the application of Community policies.

Research meeting needs in certain new interdisciplinary and multidisciplinary areas or at the leading edge of knowledge

Expected results, contributions to overall objectives or potential performance parameters

- Strengthened and more effective contribution to Community policies: the objectives and expected results for each policy concerned are to be defined by the respective Directorates General.

- Reduction in response times and increased flexibility of action taken in the face of scientific, technological and socio-economic events.

1.2.2. Specific research activities for SMEs

Collective research

(Research aimed at addressing common problems/challenges; pre-normative research; research aimed at reinforcing the technological basis of particular sectors; development of technological tools)

Cooperative research

Expected results, contributions to overall objectives or potential performance parameters

- Significant participation in the Specific Programme (over 15% of the funding for the part on "Integrating Research") by SMEs, reflected in terms of an increase and training of R&D personnel, technological development and utilisation of results.

- Participation indicators have been developed and were used to monitor the participation of SMEs in the Framework Programme (participation share in each thematic programme, participation for each country, newcomers, size, youth, female-owned...)

1.2.3.Specific international cooperation activities

Helping European researchers, businesses and research organisations in the EU and the countries associated with the Framework Programme to have access to knowledge and expertise existing elsewhere in the world.

Helping to ensure Europe's strong and coherent participation in research initiatives carried out at international level

Providing support in the scientific and technological field to the implementation of the Community's foreign policy and development aid policy.

Specific activities concerning three groups of countries : the Mediterranean third countries, Russia and the countries of the CIS, and the developing countries

Expected results, contributions to overall objectives or potential performance parameters

- Enlarged and strengthened participation of third countries in Community research activities

- Intensified and higher-profile contribution to international actions aiming at resolving major global problems

- Greater support in the field of science and technology for the implementation of foreign policy and development aid policy."

2. Strengthening the foundations of the European Research Area

2.1. Coordination of research activities

Coordination of national activities

(Support proposals on co-ordination, networking, design and implementation of joint initiatives, Develop an integrated information system)

Coordination at European level

(S&T co-operation activities carried out in other European co-operation frameworks, Collaboration and joint initiatives of specialised European scientific co-operation organisations)

Expected results, contributions to overall objectives or potential performance parameters

- Establish networks of national programmes

- Evaluating the performances of the Member States and the observed differences with regard to innovation

2.2. Coherent development of research and innovation policies

Analyses and studies (work related to foresight, statistics and scientific and technological indicators

Benchmarking research and innovation policies at national, regional and European level

Mapping scientific and technological excellence in Europe

Improving the regulatory and administrative environment for research and innovation in Europe

Expected results, contributions to overall objectives or potential performance parameters

- Better informed decision-making regarding the prioritisation and implementation of EU S&T and other policies.

- High level of participation of S&T decision makers and policy institutes in foresight-based EU decision support activities.

- Publication of an annual report on European science and technology, including key figures on the European Research Area.

- Studies on developing new and improved indicators in fields of policy interest, and of new statistical databases.

- Making available the results of the first benchmarking cycle

- Realising the first excellence maps.

The means of intervention and financial participation under the framework programme will be as follows, according to the objectives:

&gt;TABLE POSITION&gt;

(1) Accompanying actions can also be implemented throughout the specific programme.

The Community's budgetary intervention is aimed at businesses (and in particular SMEs), research centres, universities and national or European organisations, that fund research activities. The latter may also act as intermediaries for the Community's budgetary intervention.

5.3. Means of implementation

The Commission will ensure the implementation of the actions. In certain duly justified cases, it may call upon external bodies for assistance.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

For the record, the reference allocation for the Framework Programme of the European Community is EUR 16 275 million. The total amount for the Framework Programmes 2002-2006 is EUR 17 500 million.

6.1.1 Financial intervention: Commitments in EURmilllion (to the third decimal place)

Breakdown by objective

// Total

1) Integrating research // 12 055

Genomics and biotechnology for health // 2 000

Information society technologies // 3 600

Nanotechnologies, intelligent materials, new production processes // 1 300

Aeronautics and space // 1 000

Food safety and health risks // 600

Sustainable development and global change // 1 700

Citizens and governance in the European knowledge society // 225

Anticipating the EU's scientific and technological needs // 1 630

Policy oriented research and leading edge topics // 880

Specific research activities for SMEs // 450

Specific international co-operation activities // 300

2) Strengthening the foundations of the European Research Area // 450

Support for the coordination of activities // 400

Support for the coherent development of policies // 50

TOTAL // 12 505

An annual schedule for each of these objectives is not significant at this level. It could only be defined as being strictly proportional to that for the entire specific programme, itself in line with that of the framework programme. The annual internal breakdown will be established subsequently within the work programmes

6.1.2 Technical and administrative assistance, support expenditure and IT expenditure (Commitment appropriations)

This budget category does not apply in this field.

6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period)

For the indirect actions of the Fifth Framework Programme of the European Community (1998-2002), the annual volume is in the order of 3500 new contracts signed (all categories confound), for an annual budget of EUR 3000 million.

For the indirect actions of the Framework Programme 2002-2006, the annual budget will be in the order of EUR 3700 million, an increase in real terms by 13 %.

Nevertheless, as set out in point 5.1.2, three new principal instruments have been designed for the implementation of this new Framework Programme, namely netwoks of excellence, integrated projects and participation to joint execution of national programmes (as provided for in Article 169 of the Treaty).

Compared to previous Framework Programmes, these instruments go beyond merely scientific projects and introduce the concept of integration of research, in particular by achiving critical mass of competences and resources in identified areas.

As concerns the management of the Framework Programme 2002-2006, this concept of critical mass will be reflected in a significant increase of the mean financial contribution to projects and is expected to result in a substantial reduction of the number of contracts concluded annually.

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

Determined to fundamentally modify the implementation of the Framework Programme, the Commission proposes to lower the ceiling for human resources and other administrative expenditure to 5.5 % for the two indirect, non-nuclear research programmes.

Currently in the parts of the 5th Framework Programme related to indirect, non-nuclear research, the overall ceiling for human resources and other administrative expenditure is 7.0%.

On present trends, actual expenditure under the 5th Framework Programme is likely to remain close to this ceiling, perhaps a little below.

Assuming there were to be no change in the methods of implementing the Framework Programme, and given the need to allow for some margin in this category of expenditure, the Commission would have no reason to depart from the overall ceiling of 7%. This is largely because the proposed budget for the next programme increases in line with inflation, allowing for a little more in line with growth in the economy.

Any reduction in the overall ceiling could only be achieved on the assumption of significant gains in productivity, including significant changes in the management of the programme. A relatively restrictive set of assumptions would include :

- A freeze on the total number of statutory staff at its 2002 level of 1654 posts, assuming productivity gains of 2% per annum to compensate for the increase in the real volume of the programme

- An inflation rate of 2% a year, even though staff costs tend to rise at a slightly higher rate

- A freeze in expenditure on external personnel at its 2002 level.

The above scenario would allow the Commission to propose a reduction in the overall ceiling to about 6.3 %.

The Commission is, however, prepared to commit itself to a much more significant reduction in the ceiling from 7.0% to 5.5%. This would allow an important amount of additional resources, roughly EUR 230 million, to be allocated directly to research projects.

This requires equitable efforts in productivity gains in all research activities. The ceiling of 5.5% proposed for administrative expenditure is a global one, covering the specific programmes "Integrating and Strengthening the European Research Area" and "Structuring the European Research Area" as a whole. In implementing these programmes, the Commission will ensure an appropriate share of administrative expenditure between the services responsible for managing research activities. This share will take account of the overall budget to be managed, the intensity of the use of the three new instruments, the labour-intensiveness and the latest technological developments of the activities at the various stages of their life-cycle, including their length, and the need to ensure effective management of the contracts committed under previous Framework Programmes.

The main factor that would allow this to be achieved is the introduction on a widespread scale of the new instruments proposed in the next Framework Programme, namely integrated projects, networks of excellence and joint execution of national research programmes under Article 169 of the Treaty. These would allow net reductions in the costs of administering the programme.

In other terms, a ceiling of 5.5 % expresses the determination of the Commission to fundamentally modify the implementation of the Framework Programme.

- It is useful to recall that even if the new instruments are used fully in line with the Commission's proposal, their impact on administrative expenditure will be gradual. During the 2003-2006 period, an important part of the administrative activities undertaken by the Commission will still be to implement and conclude previous Framework Programmes.

The average duration of contracts for indirect research being four years, some 13,000 open contracts with a financial volume of EUR 6,600 million could be expected, at the start of 2003.

The ceiling of 5.5 % for the human and administrative resources for indirect, non-nuclear programmes will therefore require exploiting all the potential of the new management approach to the Framework Programme:

- Full use would need to be made of the new instruments to reduce the number of individual projects and contracts to be administered by the Commission.

- Their management will need to be largely simplified and decentralised.

- All possibilities will need to be exploited to externalise technical support activities and certain aspects of the management of specific categories of activities, whenever this reduces overall administrative expenditure.

It requires also efficient programme and budget structures, and this reduced 5.5% ceiling should apply for the total of the two indirect, non-nuclear research programmes.

This proposal is critically dependent on the introduction of the new instruments in line with the Commission's proposal. Any revision of this will imply a change in the ceiling for administrative costs.

7.1. Impact on human resources

&gt;TABLE POSITION&gt;

There is a specific establishment plan for the indirect research actions comprising a total of 954 A posts, 273 B posts and 427 C posts, giving a total of 1654 posts (EC and EURATOM, including SAB 3/2001).

To this establishment plan should be added 166 operating budget posts with no financial impact on the budget for these programmes, under the heading of participation in the formulation and implementation of research policy.

7.2 Overall financial impact of human resource

&gt;TABLE POSITION&gt;

The amounts correspond to total expenditure for the duration of the programme.

7.3 Other administrative expenditure deriving from the action

&gt;TABLE POSITION&gt;

The amounts correspond to total expenditure for the action for the four years of implementation of this specific programme, i.e. total annual expenditure of EUR172.000 million.

&gt;TABLE POSITION&gt;

8. FOLLOW-UP AND EVALUATION

8.1 Follow-up arrangements

The specific programmes are designed to help bring about the European Research Area and they will be implemented in parallel with and in close collaboration with other Community and national activities in pursuit of the same objectives. The very nature of research and the different types of actions at different levels make it difficult to determine causes and effects, and monitoring and evaluating the result and impact are complex.

Based on the experience of the earlier programmes and methodological studies in progress, a series of instruments has already been or is being finalised in order to develop the objectives and monitor and evaluate the results and impact of the framework programme and programmes implementing it, as well as the activities relating to bringing about the ERA. The Commission will take stock of the development of these instruments in good time before the programmes are implemented.

By these means, a structured system for collection of information and statistics will be progressively put in place. Within this context general indicators specifically adapted to the framework programme will be developed, to make it possible to evaluate in particular the contributions of the programmes in relation to the challenges facing the EU identified in point 5.1 (Investment in RTD and in knowledge, overall and in the priority fields for the EU, human RTD resources, exploitation of RTD results, coherence of national and Community research policies and with regard to research infrastructures).

In addition, more specific indicators will be identified for the different objectives of the programmes; relating in particular to the production, management and networking, exploitation and impact of the knowledge arising from the activities carried out under the programmes. First thoughts in this connection are already indicated in point 5.2 under the heading of results expected, contributions to overall objectives or potential performance parameters.

8.2 Arrangements and schedule for the planned evaluation

- Annual monitoring: The Commission will, where appropriate by calling upon suitable expertise, continuously monitor the implementation of the Framework Programme and the specific programmes in the light of the objectives set. It will assess, in particular, whether the objectives, priorities, instruments, financial resources and management are still appropriate to the changing situation.

The objective is to step up and improve the systematic collection, coherence and quality of the basic information, in order to allow efficient analysis and monitoring as well as a substantial contribution to the five-year assessment. In order to make Community research managers more aware of issues relating to the monitoring of the implementation and the results and the impact of the programmes, it is also planned to draw up a joint self-assessment format. In addition, measures will be taken to ensure greater coherence between the monitoring of the framework programme, the specific programmes and progress with the European Research Area.

Annual report: Progress with implementing the Framework Programme and the specific programmes will be published in the annual report submitted to the European Parliament and the Council pursuant to Article 173 of the Treaty. It will set out in particular the results of the annual monitoring, a description of the activities carried out in the field of research and technological development, realisation of the European Research Area and dissemination of results during the preceding year, and the work programme for the current year.

- Five-year assessment: Before submitting its proposal for the next Framework Programme and the specific programmes, the Commission will have an assessment carried out by independent high-level experts of the implementation of Community activities during the five years preceding that assessment, the achievement of the objectives and the impact of the activities in the light of the objectives applicable to the periods in question. The Commission will communicate the conclusions of this assessment, accompanied by its observations, to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

9. ANTI-FRAUD MEASURES

By submitting reports which may give rise to the consolidation of revenue in the participants' accounts, the financial coordinator should make all the financial documentation available to the Commission to enable it to carry out its financial audits, indicating the timetable and the consolidation of the participants' accounts.

Where appropriate, the Commission will carry out such financial audits, in particular if it has reasons to doubt the realistic nature of the account vis-à-vis the progress of work 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 participant audited. The Community will chose the latter freely, while avoiding any risks of conflicts of interest which might be indicated to it by the participant subject to the audit.

In addition, the Commission will make sure in carrying out the research activities, that the financial interests of the European Communities are protected by effective checks and, in case of detected irregularities, measures as well as deterrent and proportionate sanctions.

In order to achieve this aim, rules on checks, measures and sanctions, with references to the Regulations No 2988/95,02185/96, 1073/99 and 1074/99 will be taken up in all legal instruments used in the implementation of the programmes, including the specific contracts and the model contracts.

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 awards ;

- the participation of administrative checks in the field of fraud-fighting, in accordance with Regulations No 2185/96, 1073/99 and 1074/99 ;

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

- the fact that possible recovery orders in case of irregularities and fraud be enforceable according to Article 256 of the EC Treaty.

[Top](#document1)