CELEX: 51993PC0276(01)
Language: en
Date: 1993-06-16
Title: Proposal for a COUNCIL DECISION concerning the fourth framework programme of the European Economic Community activities in the field of research, technological development and demonstration (1994 to 1998)

COMMISSION OF THE EUROPEAN COMMUNITIES
m£
                                                                     COM(93) 276 final
                                                                     Brussels, 16 June 1993
                                               Proposal for a
                                          COUNCIL DECISION
        concerning the fourth framework programme of the European Economic Community
          activities in the field of research, technological development and demonstration
                                              (1994 to 1998)
                                              Proposal for a
                                          COUNCIL DECISION
            concerning a framework programme of Community activities in the field of
                  research and training for the European Atomic Energy Community
                                               (1994 to 1998)
                                     (presented by the Commission)
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 ---pagebreak---                                           CONTENTS
Summary                                                                         3
Explanatory memorandum                                                          6
Annex: subsidiarity of this proposal                                           20
Proposal for a Council Decision concerning the Fourth framework programme of
European Economic Community activities in the field of Research, Technological
Development and Demonstration (1994 to 1998)                                   22
Annex I : Fourth framework programme (1994-1998): Amounts and breakdown        28
Annex II : Selection criteria for Community activities                         29
Annex III: Scientific and technological objectives                             31
Annex IV :         Rules for financial participation by the Community          71
Proposal for a Council Decision concerning a framework programme of
Community Research and Training Activities for the European Atomic
Energy Community (1994 to 1998)                                                72
Annex I :          Framework programme (1994-1998) : Amount and breakdown      76
Annex II :         Selection criteria for Community activities                 77
Annex III:         Scientific and technological objectives                     79
Annex IV :         Rules for financial participation by the Community          82
Financial statement                                                            83
Business impact statement                                                      87
Proposed timetable                                                             90
 ---pagebreak---  ---pagebreak---                                        SUMMARY
                                             OF
                           THE PROPOSA LS CONCERNING
                     THE FOURTH FRAMEWORK PROGRAMME
 OF RTD AND DEMONSTRA TION AND THE FRAMEWORK PROGRAMME Ol<
                                     RESEARCH AND
                         TRAINING IN THE NUCLEAR FIELD
                                     (EAEC) (1994-98)
Objective
Building on the w orking documents of October 1992, COM(92)406, and of April 1993,
COM(93) 158, the present proposal takes account of:
- the Edinburgh conclusions;
- developments in the world context;
- comments and opinions concerning the first working document;
- comments and opinions concerning the second working document.
In order to accelerate interinstitutional deliberations on the Fourth framework program me
(political agreement) and ensure the continuation of the Community's RTD effort, the
Commission's proposal is based legally on the Single European Act with footnotes
indicating the texts which will take effect on the entry into force of the Maastricht
Treaty. The proposal on the EURA TOM Framework Programme is presented in parallel
in order to ensure the coherence of all Community RTD activities and this proposal is
based on the EAEC Treaty.
Policy changes
- Greater selectiveness with regard to Community RTD activities in order to increase
  their economic impact (focusing on generic technologies)
- Greater integration of national, Community and European activities (Article 13 Oh of
  the EC Treaty)
- Develop research/training synergy
- Increase the flexibility of Community activities in order to respond rapidly to new
  scientific and technological challenges
- Bring the financial data into line with requirements and the proposed financial
  perspective for 1993 to 1999.
 Greater selectivity
- The Framework Programmes cover all research, technological development and
  dem onstration activities. The Fourth From ew ork Program m e comprises four activities.
   The first (RTD and demonstration programmes) contains seven themes compared
  with 15 in the Third Framework Programme. Two new themes are introduced:
  research for a European transport policy and targeted socio-economic research. Each
  theme covers one or more area of RTD and demonstration.
 ---pagebreak---    As regards the EUR A TOM Framework Programment is subdivided into two distinct
   areas.
- The selection criteria set out in the preceding working documents have been adjusted
   to take account of the need to focus and integrate activities, thus reducing the number
   of areas originally proposed from 54 to 28 for the total of both Framework
   Programmes.
- Greater priority is accorded to the first activity in order to take account of the
   Edinburgh guidelines concerning the need to focus on generic technologies of
   multisectoral application.
- Selectivity applies within the individual areas as well in order to focus activities on
   mobilizing projects and to integrate national, Community and European activities to
   a greater extent.
The activities
 The Community support for RTD activities covered by the first activity will continue
to focus on generic, precompetitive research of multisectoral application.
Scientific and technological cooperation activities on subjects of mutual interest with
 third countries and international organisations, which are one factor in determining the
 economic efficiency of the Community's RTD activities, are organized partly on a
 centralised basis in the second activity and partly under the individual themes of the first
 activity, in so far they help to attain the relevant objectives.
 Dissemination activities must be consistent and coordinated, through centralized
 management on the one hand in the third activity and the specific programmes on the
 other.
 The fourth activity addresses advanced training in centres of excellence throughout the
 Community and will therefore be open-ended and will also focus on partnerships
 between universities and industry.
 Intégration of national. Community and European activities
 This objective will be pursued at three levels:
 - assessment of the RTD and demonstration policy options (a new area is proposed in
    order to promote work in support of decision making)
 - political level (regular Ministerial consultations)
 - operational level: between those responsible for RTD activities.
 Appropriate procedures need to be developed within the programmes on the basis of the
 experience built up and the desire to encourage researchers at national, Community and
 European level to work together.
 ---pagebreak--- Research/trainins svnerev
In order to promote growth and reinvigorate economic and social development a
combination of labour and capital is not enough; a third factor is needed                   a
combination of knowledge, know-how and dissemination of know-how.
Research training activities will be carried out both within the themes of the first activity
of the Fourth framework programme and across the board (fourth activity) to promote
the cross-frontier mobility of researchers working on emerging themes. The same applies
to the fields covered by the EURA TOM Framework Programme. They will be
supplemented by research activities making it possible to introduce innovation into
education and training systems and by education and training schemes deriving from the
COMETT and ERA SMUS programmes, etc.
Flexibility
 The decision making system is very complex. The Community needs to be able to
respond rapidly to scientific and technological changes intervening between the adoption
of a framework programme and its review after three years.
Measures are proposed at three levels:
- framework programme: preparatory activities
-specific programmes: limited amount for technology promotion earmarked for
   unsolicited proposals from SMEs; links with EUREKA
 - work programmes: adaptability.
 Financial resources
 - 11625 million ECU (current prices) for the 4th Framework Programme and 1475
   million ECU for the EURA TOM Framework Programme (1994-98) thus bringing the
   total for all Community activities up to 13100 million ECU;
 - with regard to the distribution between the four activities within the Fourth Framework
   Programme, the First Activity stands out as the major component of the Fourth
   Framework Programme, although increased priority will be given to the Second
   Activity (International cooperation) and to the Third Activity (dissemination) relative
   to funding levels during the period 1990-1994;
 - within the first activity (RTD and demonstration programmes), it is suggested, as an
   indicative breakdown, to give increased priority to work addressing industry's needs
   and affecting industrial output within all the topics, as well as to research on a
   European Transport Policy and life sciences and related technologies.
 ---pagebreak---                            EXPLANATORY MEMORANDUM
                                       Introduction
The Community is an area without frontiers, organised both economically and socially
and a partner of consequence in Europe and the world. Cooperation between socio-
economic actors and citizens is spreading and competition is benefiting from transparent
and stable conditions.
The political upheavals in the world, the accompanying slowdown in economic activity
and the recent initiatives taken by its partners have prompted the Community to adopt
a large programme to relaunch economic growth and employment.
The policy of research, technological development and demonstration (RTD) established
in the Treaty on European Union contributes to this effort through the knowledge and
know-how which it helps develop in the medium and long term. It promotes the
adaptation on industrial structures and strategies to the new conditions with regard to
world competition and to the requirements of sustainable growth and of a better quality
of life in Europe.
 1. The proposal for a Fourth framework programme for research and technological
    development (1994 to 1998), which is the subject of this document, is a direct and
    logical continuation of a number of developments in the Community's science and
    technology policy since the mid-1980s.
    In 1984 the Community decided to improve the coordination of its research and
    technological development activities by bringing them within multiannual framework
    programmes. To this end it adopted the first framework programme for research and
    technological development (1984-1987). The second framework programme (1987-
     1991) and the third, the current programme, (1990-1994) have followed.
    In 1987 the Single European Act brought research and technological development
    within the formal competence of the Community, consolidated the rules and
    principles governing Community action in this area, and established the basic
    machinery through which it was to act: adoption of multiannual framework
    programmes and their implementation through specific programmes. The second and
    third framework programmes were proposed and then adopted on the basis of the
    Single Act. The Treaty on European Union, signed in Maastricht in February 1992,
    clarified certain aspects of the Single Act relating to RTD, and also introduced a
    number of amendments, some of them major, to the rules governing this area.
    In April 1992 the Commission published a communication entitled "Research after
    Maastricht, an assessment, a strategy" (SEC(92)682). On the basis of an analysis of
    the state of research and industry in Europe at the beginning of the 1990s and a
    critical assessment of Community action to date, this document set out the
    Commission's guidelines for Community RTD policy for the next five years.
                                            - 6-
 ---pagebreak---    At the same time, the Commission published an evaluation report of the second
   framework programme (1987 to 1991). An analysis of this was made by CREST at
   the request of the Council. At the end of April 1992, having considered these two
   Commission documents, the Council asked the Commission to let it have working
   proposals as soon as possible.
   In July 1992, the Commission, in a bid to avoid any gap in RTD financing over the
   next two years, presented a proposal for a financial supplement to the third
   framework programme (1990 to 1994). This was adopted by the Council in
   March 1993.
   In October 1992 the Commission published a working document concerning the
   fourth framework programme (COM(92)406) with a view to pressing ahead with the
   discussion on the general guidelines for this framework programme pending
   ratification of the Treaty on European Union. The first working document provided
    an opportunity for a wide-ranging debate with the constructive participation of the
   Member States, the European Parliament, the Economic and Social Committee and
   other Community organizations, together with research scientists and representatives
   of industry. One very significant point which emerged from the discussions was the
    emphasis placed on the important role of research in improving the quality of life and
    strengthening the competitiveness of industry in the Community.
2. In Edinburgh in December 1992 the European Council stressed the need for
    Community RTD activities to continue to focus on generic, precompetitive research
    with a multisectoral impact; at the same time it set the financial perspective for
    1993-99, laid down the general framework for the Community funding allocated to
    research and called on the Commission to make some changes:
    "Community support for R&D should continue to focus on generic, precompetitive
    research and be of multisectoral application. EUREKA should remain the principal
    vehicle for supporting R&D activities which are nearer to the market and the
    Commission should bring forward proposals to improve the synergy between the
    Community's research activities and EUREKA. Improving the dissemination of
    results amongst enterprises, particularly small and medium-sized businesses,
    cost-effectiveness and coordination between national programmes should be priorities
   for Community action. These conclusions should be reflected in the consideration
    and adoption of the fourth framework programme. "
    The European Council also called upon the Commission:
     "to bring forward proposals for improving the management and efficiency of research
   funded by the Community to achieve better economic effectiveness. To this end the
    selectivity of actions should be increased, and it should be ensured that Community
    activities contribute the most value added possible to efforts already underway in the
    Member States. "
 ---pagebreak---    In April 1993 the Commission published a second working document (COM(93)158)
   taking account of the comments received on the first, developments in the world
   context and in Europe and the guidelines issued at the Edinburgh European Council.
   It complemented and clarified the broad lines set out in the October 1992 working
   document indicating how to mobilize more effectively the capacities of the
   Community as a whole. This communication is based on that second working
   document.
I. BROAD LINES OF THE COMMUNITY'S RESEARCH TECHNOLOGICAL
   DEVELOPMENT AND DEMONSTRATION POLICY
3. The need is to respond to the challenge which American and Japanese RTD policies
   pose and to make up for the European shortfall as regards the intensity of research
   (2 % of GDP in the Community as compared with about 3 % in the United States
   and Japan) and human resources (4.3 researchers in Europe for every 1000 employees
   as compared with 7.5 in the United States and Japan). The basic objective is to move
   on from a patchwork of separate RTD and demonstration activities to afully fledged
    Community policy in this field.
    The fourth framework programme must, therefore:
    - make Community activities more selective so as to increase the economic spin-offs,
      in particular by concentrating on generic technologies which will enable European
      industry and its subcontractors to go back on the offensive in international
      competition;
    - prepare the way for cooperation leading to closer integration of national and
      Community RTD activities and increased synergy between the Structural Funds and
      the research activities contributing to strengthen cohesion within the Community,,
    - create the conditions for increased synergy between research and training;
    - empower the Community, using appropriate means, to respond rapidly to scientific
      and technological change;
    - be allocated sufficient financial resources to maintain a sustained effort at
      Community level to pursue realistically the objectives set by the Treaty on
      European Union and thus contribute the most value added possible to efforts already
      under way in the Member States.
Greater selectiveness to secure improved economic benefits
    The scope
4. The scope of the fourth framework programme has been determined on the basis of
    one of the most important new RTD provisions introduced in the Maastricht Treaty.
    Under this provision the framework programme is to include all the RTD activities
    covered by the Treaty. Thus all Community research and technological development
    activities, whatever their form and under whichever common policy they fall, are
                                             - 8-
 ---pagebreak--- included within the framework programme. These activities include basic research,
basic industrial research, applied research and technological development. Under the
terms of the new Article 130f(3) they also include demonstration projects in the sense
of the demonstration of the technical feasibility of projects on the demonstration of
their economic viability. All these activities are explicitly confined to the
precompetitive stage.
In keeping with the Maastricht Treaty the fourth framework programme will also
include all research, technological development and demonstration activities carried
out within the framework of the major common policies, such as agriculture,
fisheries, energy or transport. A framework programme of research and training in the
nuclear field for the EAEC is being proposed at one and the same time as the Fourth
framework programme in order to ensure the coherence of all Community RTD
activities. The Fourth framework programme will incorporate demonstration and
dissemination activities related to the promotion of energy technologies which are
 currently included in the THERMIE programme. Likewise in accordance with the
Commission's approach to the future of the ECSC Treaty, the coal and steel industries
of the Community will increasingly ("phasing in") find a response to their research
needs, including those on social aspects, in the Community's RTD activities. The aim
 here is not merely a mechanical grouping of activities. The significance of this new
provision is primarily political, namely consistency and mutual reinforcement between
 research policy and the other major common policies. Organized programming of all
 research activity is needed to ensure such consistency and to allow for the greatest
 possible synergy in the definition and implementation of the various policies.
 The activities previously executed outside the framework programme and referred to
 as APAS (Preparatory, Accompanying and Support Activities) will henceforth be
 included in the Fourth framework programme.
 The most obvious case is international scientific cooperation. The measures which
 were until now executed on an annual basis without an overall, long-term planning
 frame will now be subject to multiannual planning. They will form a coherent whole
 in the shape of the second activity.
 The same will apply to other measures with a multiannual horizon, such as SPRINT,
 which are today executed on various legal bases. These measures will be brought
 together under the wide-ranging third activity of the framework programme.
 Another group of measures which are currently outside the framework programme are
 the general measures needed to define, implement and support RTD policy. They
 concern in particular: studies, exploratory and evaluation activities, promotion,
 support and coordination activities. These measures will also be included in the
 fourth framework programme, but must be implemented with the procedural
 flexibility required so that the Commission maintains its power of initiative and
 execution for non-significant measures in accordance with Article 22 of the Financial
 Regulation.
                                         -9-
 ---pagebreak---    The evaluation of programmes and policies of Community RTD will be given greater
   credibility through the institution, by and for the Commission of a Committee for the
   Evaluation of Research, the independence and permanence of which will be ensured.
   The activities
6. The Maastricht Treaty specifies the activities which go to make up the framework
   programme. There are four activities, clearly described in Article 130g:
   (a) implementation of research, technological development and demonstration
         programmes, by promoting cooperation with and between undertakings, research
         centres and universities;
   (b) promotion of cooperation in the field of Community research, technological
         development and demonstration with third countries and international
         organizations;
   (c) dissemination and optimization of the results of activities in Community
         research, technological development and demonstration;
   (d) stimulation of the training and mobility of researchers in the Community.
   The fourth framework programme is, therefore, built around these four activities.
   The areas of RTD covered by the EAEC Treaty are grouped together in the
   framework programme for research and training in the nuclear field.
   Focusing
7. This entails being more selective in the activities carried out and laying the scientific
   and technical foundations needed for sustainable, environment-friendly development
    in industry, agriculture and services, exploiting the advantages of the single market
    in order to improve Europe's competitiveness and quality of life. Within each research
   theme, it is intended to concentrate financial resources on a limited number of topics,
   chosen for their specific added value (shared cost actions), and, in addition, to work
    towards the coordination of national, community and European actions through
    suitable methods.
    In keeping with the Community's industrial policy strategy endorsed by the Council
    and given the needs of the other common policies, research activities should focus
    on precompetitive research into technologies with a multisectoral impact which can
   help increase industrial competitiveness, especially in key areas, and on themes of
    interest to society in general; it is necessary to ensure that the results are transferred
    rapidly to industry, especially to small and medium-sized businesses and to the
    branches of the economy which will use them. Certain major objectives guide the
    choice of research activities: to develop efficient and safe infrastructures, in particular
    an information and communications infrastructure; to produce efficiently, cleanly and
    safely on the basis of modern organization of production; to make environmental
    protection an aspect of industrial competitiveness; to promote an improvement in
                                             - 10-
 ---pagebreak---    health care, food quality and food hygiene; to ensure technological and industrial
   integration within the internal market (in particular by strengthening coordination
   between RTD policy and standardization policy); to anticipate technological and
   industrial changes so as to ensure that greater account is taken of the needs of the
   market; to increase the synergy between international cooperation activities in this
   area and the Community's external policies.
   The focusing of Community RTD activities is reflected at three levels:
   - the structure of the Fourth framework programme: on the grounds of rationalization
      it is proposed that the first activity (research, technological development and
      demonstration programmes) should be organized around seven main themes
      including two new themes concerning research for a European transport policy
      (strategic aspects and systemic and general aspects useful for the definition and
      realisation of the Community transport policy in coordination with the generic
      activities coming under other themes) and targeted socio-economic research. Annex
      I proposes a structure for the fourth framework programme which ensures a large
      degree of continuity with the third framework programme and takes into account
      the new elements needed;
    - selectiveness criteria: in order to define the Community RTD activities, Annex II
      of this proposal for the Fourth framework programme (Selection Criteria for
      Community Activities) lays down criteria with regard especially to the greater
      focusing of activities and the coordination of national and Community activities;
      they will also be applied when preparing specific programmes and selecting
      projects;
    - applying these criteria to focus Community activities on a limited number of
      research, technological development and demonstration areas: Annex III gives a
      detailed description of the subject matter of the activities proposed for the Fourth
      framework programme.
    The structure, criteria and content of the activities of research and training in the
    nuclear field are set out in annexes to the proposal regarding the framework
    programme for the EAEC.
Closer coordination of RTD activities in Europe
8. The principle of subsidiarity dictates that the Community should take action on
    research only if the objectives can be better achieved by the Community than by the
    Member States acting on their own (see the annex concerning the subsidiarity of this
    proposal). Article 130h of the Treaty on European Union also requires the
    Community and the Member States to coordinate their activities so as to ensure that
    national policies and Community policy are mutually consistent. It must be
    acknowledged that not enough has been achieved on this point so far. A new
    approach is needed, with the detailed procedures tailored to each research area.
                                              11
 ---pagebreak--- ?. The call for greater consistency between national policies and Community policy is
   based on thefact that less than 4% of all government expenditure on civil research
   and technological development by the Member States corresponds to the Community
   funds allocated to joint actions.
   It is proposed that the following types of action should be launched:
   - evaluation of science and technology policy options to supply a common knowledge
      base for discussions on RTD activities in Europe;
   - political concertation at the highest level, in the form of regular meetings of the
      European Ministers of Research in conjunction with the Ministers with special
      responsibility for industry and economic development specifically on this issue;
    - concertation at the operational level between the heads of the national and European
      research bodies and those responsible in industry (producers and users).
    As far as the practical implementation of RTD activities is concerned, the
   coordination of national and Community activities could be achieved in three ways:
    - greater synergy and mutual enhancement of the action taken at national level could
      be achieved by giving priority in the specific programmes to activities aiming at
      such closer cooperation:
    - in fields where worldwide collaboration is already established, only a coordinated,
      united Europe will be able to hold its own in talks with the other major partners,
      particularly the USA and         Japan; it is proposed that national and Community
      activities should be coordinated to a large extent in certain areas which lend
      themselves to this approach;
    - integration to create the "European research area" while maintaining the diversity
      and plurality of approaches which will require closer coordination of the research
      conducted at European level under the auspices of international bodies such as
      CERN, ESA, ESO, EMBO, EMBL, the ESF and, above all, EUREKA. The need
      to strengthen links between Community activities and EUREKA should be stressed
      in this context. Recalling the respective roles of EUREKA and Community
      research, the Edinburgh European Council emphasized the need to strengthen the
      synergy between them.
 10. Alongside the traditional networks established in the context of Community
      activities hitherto, this cooperation can be achieved through such means as thematic
      networks of excellence, concertation networks and consortia for integrated projects
      (see Annex III to this proposal).
      The Joint Research Centre will make its contribution to this new approach.
                                             - 12 -
 ---pagebreak--- 11. Such consistency is pointless unless the Community aims at achieving harmonious
    development of its scientific and technological resources. Synergy between RTD
    policy and the structural policies should be strengthened. The amendments
    proposed by the Commission to the Regulations governing the Structural Funds
    provide one opportunity in this connection during the new programming period
    (1994-99). The emphasis now being placed on technology in the less-favoured
    regions and on skills in science and technology offers new prospects for synergy,
    in particular with the third and fourth activities of the fourth framework programme.
    While applying the principle of excellence, Community RTD activities provide a
    second opportunity. The research priorities reflected in the first activity of the
    fourth framework programme take account of the interests and capacities of the
    Member States, including the less advanced ones. The RTD programmes can make
    an effective contribution at little cost to making good use, for the benefit of the
    Community, of the scientific and technological potential of the less-favoured
    regions by networking them with centres of excellence in the most advanced
    regions. The third and fourth activities will have a growing impact on the less
    developed regions and countries through specific measures (national/regional relay
    centres, transfer networks geared to the traditional industries, measures to avoid the
    "brain drain", "European chairs"). This synergy between the Structural Funds and
    research activities will contribute towards a true policy of cohesion by developing
    the potential of the regions and relating them to the European research area.
    However, it should not be forgotten that it is primarily the responsibility of the
    Member States to establish an overall strategy aimed at making the best use of the
    capacities created by the various sources of Community funding available. A
    Commission paper on synergy between RTD policy and the structural policies was
    sent to the Council, the European Parliament and the Economic and Social
     committee in May 1993.
     Furthermore, in the light of the decisive role played by SMEs in the economic
    development of the Community as a whole, there should be greater coherence
     between RTD policy and actions focusing on SMEs. On this last point, the Council
     adopted on 14 June 1993 a new multiannual programme of Community actions
     which is intended to reinforce these main guidelines and to ensure the continuity
     and the consolidation of policy on enterprises, particularly SMEs. This programme
     includes an important aspect relating to the improvement of SMEs' access to
    Community programmes.
Svnergy between research and training
12. In order to promote growth and reinvigorate economic and social development a
     combination of labour and capital is not enough; a third factor is needed - a
     combination of knowledge, know-how and dissemination of know-how using the
     latest technologies, particularly information and communications technologies.
     Knowledge must be acquired with the aid of research; know-how must be built up
     with the aid of research and training; and scientific knowledge must be
     disseminated with the aid of information systems and the media. One of the greatest
     spin-offs of Community activities in recent years has been the establishment and
     expansion of Europe-wide research networks.
                                           - 13 -
 ---pagebreak---     Activities aimed at promoting the mobility of researchers and stimulating the
    creation of networks must constitute an important aspect of each of the topics
    within the first activity of the Fourth framework programme, as well as in the
    extension of the current "Human Capital and Mobility" programme, where they are
    the object of a cross disciplinary activity (the fourth activity) for the development
    of the human resources necessary to exploit new fields or research subjects.
    The role of training activities, which seek to raise the general level of scientific and
    technical competence, is likewise of strategic importance. This calls for action to
    build on the foundations laid by the ERASMUS and COMETT programmes by
    promoting training at European level and mobility as well as promoting scientific
    information and culture in Europe alongside the implementation of the Fourth
    framework programme, in particular in the activities related to the development of
    generic technologies.
The ability to respond rapidly to developments in science, technology and industry
13. Related to the objective of improving the economic spin-offs from Community
    research there is the problem of the speed of response to developments in science
    and technology. The Community's institutional and decision-making framework for
     RTD is unwieldy.
     The Community therefore has to be able to respond swiftly to developments in the
     situation, while maintaining the interinstitutional balance. This means first of all
     respecting the nature and degree of detail of the two levels of Community
     legislation (framework programme, specific programmes) and the implementation
     level (work programme). Flexibility could be built into Community RTD activities
     at three levels:
     -   framework programme: provision must be made for a limited range of activities
         so that preparatory activities, definition phases for new programmes and possibly
         pilot projects can be launched between the time when the framework programme
         is adopted and its revision. Continuous and systematic examination of the
         progress of the framework programme and independent evaluation of its
         management and the achievements of the actions undertaken will also help to
         reorientate Community actions in due course;
     -   specific programmes: to ensure flexibility, a limited amount of funds should be
         set aside, in each specific programme, for unsolicited proposals from operators
         (mainly from SMEs, technical centres and research organizations) which have
         to be processed very quickly (technology stimulation);
     -   work programmes: the ability to adapt the work programmes under the specific
         programmes will enable the Member States and the European Parliament to have
         a real say in how to respond to developments in science and technology: in the
         case of the Member States, by being represented on the programme committees
                                             - 14
 ---pagebreak---          and, in the case of Parliament, through the annual budget procedure. Particular
         attention will be paid in the implementaiton of Communtiy activities to the
         simplification and improvement of management in the general interests of
         transparency and efficiency, to decentralisation in appropriate ways as well as
         to rigorous evaluation.
14. As regards links between Community activities and EUREKA, considerable
    progress has been made and the basis for greater cooperation has been established
    jointly by the Commission and the EUREKA authorities in accordance with the
    twin principles of greater transparency in the procedures followed by the countries
    concerned with regard to EUREKA projects and the framework programme, and a
    clearer definition of their respective roles. The essential elements are better
     circulation of information concerning projects and support measures (legislation,
    standardization, training), the taking into consideration in EUREKA projects of the
     results of Community projects, clearer definition of the respective roles of each
    forum vis-à-vis industrialists, and especially SMEs, more systematic taking into
     account of the precompetitive phases of EUREKA projects within the framework
     programme and joint examination of large-scale strategic projects proposed by
     industrialists. As regards the Community, this entails the establishment, after an
     extensive pilot phase, of new mechanisms for taking into account projects from the
     EUREKA framework outside the timetable for Community calls for proposals in
     accordance with the normal selection rules, along the lines of earlier decisions taken
     on a case-by-case basis concerning certain large, strategic EUREKA projects
     (JESSI, HDTV, COSINE). The financial resources to be allocated to this activity
     could be included on an indicative basis in the work programmes for the
     Community programmes. The same would apply to projects which are part of a
     research activity within other European scientific and technological cooperation
     forums. The projects would be taken into account by the respective authorities (in
     the case of the Community, by the Commission assisted by the committees, on
     which the Member States are represented) and compared with the merits of projects
     proposed in response to the publication of Community calls for proposals. Any
     involvement by the Community will have to be consistent with the objectives of the
     specific programmes and confine itself to the precompetitive and generic aspects of
     projects submitted to the committees for appraisal. EUREKA's national and
     international authorities should ask the industrialists concerned to look more
     systematically into the relationship with Community RTD activities at each stage
     right from the definition of EUREKA projects through to their execution. EUREKA
     should remain the main vehicle for support for RTD activities which are closer to
     the market, including demonstration and production development projects, and give
     rise to increased coordination between the RTD activities of the EUREKA member
      countries, while drawing benefit from the flexibility and "bottom-up" nature of the
      initiative.
                                            - 15 -
 ---pagebreak--- II. THE OVERALL LEGISLATIVE FRAMEWORK
     The decisions needed
15. The fourth framework programme has been conceived in the spirit of the Maastricht
     Treaty. However, in view of the delays encountered in the ratification of the Treaty
     on European Union, and in order to ensure the indispensable continuity of the
     Community research effort, the Commission is now presenting its proposal for the
     fourth framework programme on the basis of the Single Act, indicating in footnotes
     the texts which will take effect upon the entry into force of the Treaty on European
     Union.
     The proposal for the Fourth framework programme (1994-1998) is but one stage in
     the larger decision-making process. The Treaty on European Union maintains the
     principle of the dual legislative procedure introduced by the Single Act, i.e.
     adoption of the framework programme as a whole followed by the adoption of the
     individual specific programmes. However, the Treaty introduces an important
     innovation compared with the Single Act. The provisions on the adoption of rules
     on the participation of undertakings, research centres and universities in Community
     programmes have been changed. In the past they were adopted at the same time
     as each of the specific programmes; in the future they must be the subject of a
     separate Council Decision. The same applies to the provisions, currently governed
     by the Council Decision 92/272/EEC of 29 April 1992 concerning the dissemination
     and exploitation of knowledge resulting from the specific programmes of research
     and technological development of the Community.
 16. The legislative framework within which the fourth framework programme is to be
     implemented will thus comprise four different types of legal act:
     (a)   a Decision on the framework programme itself. In accordance with the
           provisions of the EC Treaty, it must be adopted by the Council, acting
           unanimously, under the co-decision procedure with the European Parliament
           (Article 189b). To include all Community RTD activities in the Programme,
           a parallel Council Decision based on the Euratom Treaty is also required.
           Consequently, the procedure for adoption of the framework programme is
           more complex than the system under the Single Act;
     (b)   in contrast, the Maastricht Treaty has simplified the procedure for adopting the
           specific programmes. They will be adopted by a qualified majority in the
           Council after consulting the European Parliament and the Economic and Social
           Committee;
      (c)  a Council Decision laying down rules for the participation of undertakings,
           research centres and universities in the framework programme, as well as a
           Council decision on the rules governing the dissemination of research results.
           These decisions, referred to in the new Article 130j of the Treaty, will be to
           be adopted in cooperation with the European Parliament (the procedure laid
           down in Article 189c of the new Treaty);
                                            - 16 -
 ---pagebreak---     (d)    all the acts adopting Decisions concerning the creation of other, optional,
           instruments for the implementation of the framework programme:
           supplementary programmes, participation in research programmes undertaken
           by several Member States, cooperation with international organizations, and
           joint undertakings. These acts are covered by Articles 130k, 1301, 130m and
            130n of the EC Treaty respectively and are adopted under the procedures
           foreseen in Article 130o.
Decision-making timetable
17. The timing of the decisions must satisfy the following two constraints :
    -    the Fourth framework programme, which will govern Community RTD almost
         until the end of the century, must be firmly based on the Treaty on European
         Union and therefore must be adopted after it has entered into force;
    -    the Fourth framework programme must be adopted early enough to ensure
         proper continuity of Community RTD in industry, universities and other research
         organisations. In this context, it should be remembered that the Third framework
         programme and its specific programmes end on 31 December 1994 and that the
         implementation of the Fourth framework programme requires not only decisions
         on the specific programmes but also a whole preparatory phase before actual
         research projects can start.
     These two points imply a very tight timetable starting in November/December 1993
     (1st reading by the European Parliament and common position of the Council) and
     finishing in February /March 1994 (2nd reading by the European Parliament and
    final decision) and militates in favour of a process of consensus between the two
     legislative branches thereby avoiding a 3rd reading (conciliation procedure).
m. FINANCIAL ASPECTS
     The legal and budgetary framework
18. The legal and budgetary provisions of the fourth framework programme (1994 to
     1998) will differ significantly from those for the first three framework programmes.
     In this area too the Maastricht Treaty introduced an important innovation compared
     with the Single Act. Articles 130i and 130k of the EEC Treaty as modified by the
     Single Act use the concept of the "amount deemed necessary". The Maastricht
     Treaty, however, has introduced the concept of the "maximum overall amount" to
     determine the funding for the framework programme as a whole and for the various
     activities implementing it. The framework programme and its four activities will
     therefore be funded within the bounds of the "maximum overall amount" set by the
     legislative authority.
                                               17
 ---pagebreak--- The financial implications of the RTD priorities
19. In the context of the conclusions adopted by the European Council in Edinburgh
    concerning Community finances for the period 1993-1999, the new guidelines and
    the resulting priorities for RTD have the following financial implications:
    -   the maximum overall amount allocated to the Fourth framework programme for
        the period 1994-98: the conclusions adopted in Edinburgh envisage funding for
        Community RTD activities ranging between one-half and two-thirds of that for
        internal policies over this period. Also the growth in RTD expenditure must be
        consistent with the overall growth in spending on the internal policies
        (category 3 of the proposed financial perspective). On the basis of RTD
        expenditure for 1993, the Commission has adjusted its October 1992 assessment,
        taking into account these various considerations and an appraisal of the
        financing requirements, and is now proposing 13100 million ECU at current
        prices for the Fourth framework programme and the framework programme of
        research and training in the nuclear field (1994-1998). This funding, however,
        must cover needs expressed throughout the Community and thereby contribute
        to supporting the competitiveness of its industry and to improving the quality
        of life. Given the increased emphasis on priority areas, this amount will
        considerably strengthen certain activities whilst at the same time allowing certain
        new areas to be included within the first activity of the Fourth framework
        programme. Among other things it will allow energy demonstration activities to
        be carried out which were previously the responsibility of the THERMIE
        programme but which now come under the Fourth framework programme. It will
        also allow the Community coal and steel industries to find a progressively
         strengthened ("phased in") response in the Fourth framework programme to their
        research needs. It will ensure the integration of all scientific and technological
         cooperation with third countries and an adequate reply by the Community to
         external challenges, such as the massive investments by countries like the USA
         and Japan, and internal challenges such as the tendency not to increase national
         research budgets.
     -   the breakdown of this overall amount between the four activities of the Fourth
         framework programme and the relative priorities assigned to the major themes
         making up the first activity: Annex I to the fourth framework programme shows
         the relative shares for each of the four activities proposed. The financial balance
         between the four activities has been altered, compared with Annex I to the first
         working document, to take account of the decisions and guidelines adopted by
         the Edinburgh European Council (financial framework, priority given to the first
         activity concerning generic technologies, greater importance attached to
         dissemination and optimization of results within each theme and as a centralized
         activity). Given the comparative importance of the first activity, Annex I to the
         four framework programme also gives additional indications of the respective
         priorities assigned to each of the major themes in it. These include the new
         research for a European Transport Policy since the common transport policy
                                             - 18
 ---pagebreak--- requires specific research work which must be adequately financed. To
contribute to a better quality of life in Europe, inter alia life sciences and related
technologies must be granted additional resources in order to cope with the
increasing needs for research in general biotechnology, biomedicine and health,
as must the research needed to accompany the reform of the Community policies
on agriculture, forestry, rural development,fisheries and fish farming.
                                     - 19
 ---pagebreak---                 ANNEX TO THE EXPLANATORY MEMORANDUM
                        SUBSIDIARITY OF THE PROPOSAL
                  FOR THE FOURTH FRAMEWORK PROGRAMME
The principle of subsidiarity as defined in article 3b of the Treaty on European Union
imposes limitations on the fields where the Community can act, it acting only if and in
so far as the objectives of the proposed action cannot be sufficiently achieved by the
Member States and can therefore, by reason of the scale or effects of the proposed
action, be better achieved by the Community. In this context the following questions are
pertinent.
(a) What are the objectives of the proposed action in relation to the Community's
     obligations?
     This proposal is directed towards achievement of the objectives which have been
     assigned to RTD policy by the Single Act and subsequently confirmed by the
     Treaty on European Union and, in particular, the strengthening of the
     competitiveness of Community industry, the improvement of the quality of life and
     the support of other Community policies. These objectives are set in the context of
     a harmonious and sustainable development of the Community.
 (b) Does competence for the planned activity lie solely with the Community or is it
     shared with the Member States?
     The Single European Act brought research and technological development within
     the explicit competence of the Community, although competence is shared with
     Member States, consolidated the rules and principles governing Community action
     in this area, which complements the activities undertaken by the Member States,
     and established the basic machinery through which it was to act.
 (c) What is the Community dimension of the problem (for example how many Member
     States are involved and what solution has been used up until now)?
     The implementation of the framework programme for RTD aims at strengthening
     the scientific and technological basis of the whole of the Community (all the
      Member States), and it is in line with the previous framework programmes
     implemented since 1984. However, it only includes less than 4 % of Member States'
     total public expenditure on research.
 (d) What is the most effective solution taking into account the means available to the
      Community and those of the Member States?
      In order to ensure the effectiveness of Community RTD actions and in order to
      avoid duplication of activities being undertaken at the level of the Member States,
      the framework programme will concentrate its activities particularly on generic
      technologies with multi-sectoral impact and on large scientific projects.
      An additional guarantee of effectiveness will be the higher degree of coordination
      between national and Community actions in line with article 130h of the Treaty.
                                           - 20
 ---pagebreak--- (e) What real added value will the activity proposed by the Community provide and
    what would be the cost of inaction?
    In comparison with individual national efforts, their integration with Community
    actions together with the development of synergies with the activities undertaken
    in the wider framework of European research, in particular the strengthening of the
    synergy between Community actions and EUREKA, will permit improvements in
    the way that existing research potential in the Community is used and will represent
    real added value for the whole of the Community not only in terms of advantages
    for industrial competitiveness and of the response to social needs but also in terms
    of support of other Community policies. Inactivity would lead to a loss of this
    synergy, to fragmentation and to duplication of efforts made by the Member States
    individually.
(f)  What forms of action are available to the Community (recommendations, financial
    support, regulation, mutual recognition, ...)?
    The forms of action available to the Community are described in Annex IV of the
    proposal for a Council decision.
(g) Is it necessary to have uniform regulation or is a directive setting out the general
    objectives sufficient, leaving implementation at the level of the Member States?
    The framework programme does not impose uniform regulation in the strict sense.
    Through appropriate financial mechanisms it establishes a coherent framework for
    action, bringing together projects implemented in cooperation by public and private
    operators (companies, research centres, universities).
                                            21
 ---pagebreak---                                        Proposal for a
                                  COUNCIL DECISION(1)
       concerning the fourth framework programme of the European Economlc(2)
     Community activities in the field of research, technological development and
                                       demonstration
                                       (1994 to 1998)
THE COUNCIL(3) OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic(4) Community, and in
particular Article 130q(l) thereof,(5)
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament/63
Having regard to the opinion of the Economic and Social Committee,
Whereas Article 130f of the Treaty provides that the Community's aim is to strengthen
the scientific and technological basis of European industry and to encourage it to
become more competitive at international level;
Whereas it is important for the Community and the Member States to coordinate their
research and technological development activities so as to ensure that national policies
and Community policy are mutually consistent;
Whereas Article 130i of the Treaty provides for the adoption of a multiannual
framework programme, including all the activities of the Community in the field of
research, technological development and demonstration (hereinafter referred to as
 "RTD");
 NB:      The numbered footnotes indicate the amendments (deletions or additions) which
          will have to be introduced after the entry into force of the Treaty on European
          Union and the alphabetical footnotes contain references to previous publications
          in the Official Journal of the European Communities
 CD Replace by : "EUROPEAN PARLIAMENT AND COUNCIL DECISION"
 (2)
     Omit this word
 (3)
     Replace by: "THE EUROPEAN PARLIAMENT AND THE COUNCIL"
 (4)
     Omit this word
 (5)
     Replace by: "Article 130i (1)"
 (6)
     Omit this citation
                                            - 22
 ---pagebreak--- Whereas by Decision 90/221/Euratom, EEC(8) the Council adopted a third framework
programme for the period 1990 to 1994, which is in the process of being implemented;
whereas Council Decision 93/167/Euratom, EEC00 provided for supplementary financing
for the last two years of implementation of the third framework programme;
Whereas on 9 April 1992 the Commission presented an assessment of progress in
implementing the third framework programme; whereas on 22 April 1992 it also
presented an evaluation of all the specific programmes carried out under the second
framework programme; whereas on 25 September 1992 the Scientific and Technical
Research Committee (CREST) presented an analysis of this evaluation at the request of
the Council;
Whereas on 18 November 1992 the Commission presented a document on the future of
the ECSC Treaty and its financial activities until the year 2002, the date on which it
expires;
Whereas the European Council, at its meeting in Edinburgh on 11 and 12 December
 1992, reached conclusions reaffirming the general, precompetitive and multisectoral
nature of Community RTD, calling for more synergy between Community RTD
activities and those undertaken in the context of EUREKA and for better dissemination
of the results of those activities to small and medium-sized undertakings, and
emphasizing the central role of Community RTD policy in coordinating activities
 undertaken by the Member States;
 Whereas, in view of the rapid pace of technological development, the new economic
 challenges which the Community must meet and the increased level of global
 competition, it has been judged appropriate to adopt a new framework programme for
 the period 1994 to 1998 in order to ensure the continuity of multiannual Community
 RTD activities;
 Whereas the purpose of strengthening the scientific and technological basis of the
Community should be to improve both quality of life and the Community's industrial
 competitiveness^:
 (a)
     OJ No L 117, 8.5.1990, p. 28.
 w
     OJ No L 69, 20.3.1993, p. 43.
 (7>
     Add: "and whereas there is a need to promote research activities deemed necessary
     as part of other Community policies;"
                                          -23 -
 ---pagebreak--- Whereas, in accordance with the Treaty, it is necessary to undertake demonstration
activities in the sense of demonstration of the technical feasibility of projects or of their
economic viability;
Whereas the Community is committed to ensuring sustainable development which
respects the environment and whereas Community RTD activities will contribute to such
development;
Whereas small and medium-sized undertakings are able to make a significant
contribution to the innovation process and should play a substantial role in the
implementation of Community RTD activities; whereas, therefore, particular attention
should be paid to the specific needs of such undertakings in order to facilitate their
access to information, encourage them to take part in Community programmes and
enhance their ability to exploit their results;
Whereas the formulation and implementation of the Community's policies and actions
must take into account the objectives related to economic and social cohesion; whereas,
in accordance with this principle, the framework programme must contribute to the
harmonious development of the Community while maintaining scientific excellence as
an essential criterion; whereas it is therefore necessary to strengthen the synergy
between RTD activities and the action undertaken by the Community via the structural
funds;
Whereas, in conformity with the principle of subsidiarity, the Community should act
only if and to the extent that the objectives of a proposed action cannot be adequately
achieved by the Member States and is therefore, by reason of its scale or effects, better
carried out at Community level; whereas this is the case with Community RTD
activities which meet the criteria provided for in this Decision; whereas compliance
with these criteria implies that decisions on the areas for Community intervention must
be very selective;
Whereas Articles 130g and 130i of the Treaty define four types of Community activity;
whereas the first of these activities involves the implementation of specific RTD
programmes by promoting cooperation with and between undertakings, research centres
and universities; whereas such programmes should cover a limited number of RTD
 areas of priority to the Community; whereas, because of the importance of the topics
covered by this first activity, it constitutes the main component of the fourth framework
programme;
 Whereas research actions in the field of nuclear safeguards and safety and controlled
thermonuclear fusion are the subject of a separate decision relating to the framework
 programme of Community activities in the field of nuclear research and training;
 whereas the scientific and technical objectives of the actions to be carried out are listed
 in the abovementioned framework programme:
                                                24
 ---pagebreak--- Whereas the second of these activities involves the promotion of cooperation in the field
of Community RTD with third countries and international organizations; whereas in this
field of activity it is important for the Community to assume its responsibilities at the
international level; whereas scientific and technical cooperation must be developed with
the industrialized nations, taking due account of the new opportunities for cooperation
offered by the Agreement on the European Economic Area, the developing countries,
the countries of Central and Eastern Europe and the States which have emerged from
the former Soviet Union; whereas it is important systematically to reinforce the
complementary relationship and to improve links between Community activity and
research activities undertaken in the framework of specialized European organizations;
whereas it would be expedient to step up COST activities relating to multilateral RTD
projects;
Whereas the third of these activities involves the dissemination and optimization of the
results of Community RTD; whereas a strengthening and renewal of this activity is
desirable in order to facilitate the efficient use of results and to improve the environment
for dissemination and absorption of technologies; whereas, in this respect, ways and
 means should be provided of facilitating optimal use of results and technological transfer
between the persons concerned and in particular smaller and medium-sized enterprises
 by improving their financial environment;
Whereas the fourth of these activities involves the stimulation of the training and
 mobility of researchers, particularly young researchers, in the Community; whereas
 work should be pursued on the initiative launched under the third framework programme
 to increase human RTD capital and to improve the mobility of researchers, inter alia on
 the basis of networks of laboratories and research teams, both public and private, in
 Member States, throughout the Community;
 Whereas the fact of centralized activities involving international cooperation,
 dissemination and optimization of RTD results and stimulation of the training and
 mobility of researchers does not mean there cannot be similar activities in a manner
 appropriate to each of the specific programmes covered by the first of these activities
 to the extent required for proper implementation of these programmes;
 Whereas the Joint Research Centre is called upon to contribute to the implementation
 of the framework programme, particularly in those fields in which it can offer an
 impartial and independent expert opinion and in which it can take a lead in encouraging
 the implementation of Community policies;
 Whereas the framework programme must be implemented through specific programmes,
 and may also be implemented through supplementary programmes involving the
 participation of certain Member States only or Community participation in RTD
 programmes undertaken by several Member States, or involve the setting up of joint
 undertakings or other structures necessary for the efficient execution of Community RTD
 programmes;
                                              -25 -
 ---pagebreak--- Whereas there should be continual and systematic monitoring of progress with the fourth
framework programme as regards the criteria and objectives laid down in this Decision;
whereas there should also be an independent assessment of management of the
programme and of progress with the activities undertaken, in due time and before the
presentation by the Commission of its proposal for the fifth framework programme;
Whereas, in accordance with Article 130i(l) of the Treaty, it is necessary to fix the
amount deemed necessary(8) for the realization of the framework programme and to fix
the detailed rules for Community financial participation in the programme and the
respective shares in each of the activities provided for;
Whereas it is expedient to maintain coherence between all Community RTD activities
and whereas this framework programme and the Euratom framework programme should
therefore be adopted jointly for the same period;
Whereas the Scientific and Technical Research Committee (CREST) has been consulted,
HAS DECIDED AS FOLLOWS.(9)
                                          Article 1
 1. A framework programme for Community activities in the field of research,
      technological development and demonstration, hereinafter referred to as "the fourth
      framework programme", is hereby adopted for the period 1994 to 1998.
 2. The fourth framework programme shall include all Community activities as set out
      in Article 130g of the Treaty.
 3. The amount deemed necessary(10> for Community financial participation in the fourth
      framework programme as a whole shall be ECU 11 625 million. Annex I sets out
      the breakdown between each of the activities.
 4. The selection criteria to be applied in die implementation of the fourth framework
      programme are laid down in Annex II.
 5. Annex III sets out the scientific and technological objectives and main lines of the
      proposed activities in accordance with the criteria referred to in paragraph 4.
 (8)
        Replace "amount deemed necessary" with " maximum overall amount"
 (9)
        Replace by "HAVE DECIDED AS FOLLOWS"
 (,0)
        Replace the words "the amount deemed necessary" by "the maximum overall amount"
                                            -26-
 ---pagebreak---                                           Article 2
1. The fourth framework programme shall be implemented through specific programmes,
    each of which shall specify its precise objectives in accordance with the guidelines
    set out in Annex III.
2. The implementation of the fourth framework programme may also give rise, as
    necessary, to supplementary programmes involving the participation of certain
    Member States only, to Community participation in RTD programmes undertaken by
    several Member States, or to the setting up of joint undertakings or other structures
    necessary for the efficient execution of Community RTD programmes.
                                          Article 3
The detailed rules for financial participation by the Community in the fourth framework
programme as a whole shall be those provided for by the specific provisions regarding
RTD funding of the Financial Regulation applicable to the General Budget of the
European Communities as specified in Annex IV to this Decision.
                                          Article 4
 1. The Commission shall continually and systematically monitor the progress of the
    fourth framework programme as regards the criteria and objectives set out in Annexes
    II and III. It shall examine in particular whether the objectives, priorities and
    financial resources are still appropriate to the changing situation. If necessary, it shall
    make proposals to amend or supplement the framework programme according to the
    results of such monitoring.
2. Before presenting its proposal for the fifth framework programme, the Commission
     shall have an assessment conducted by independent experts into the management of
     and progress with Community activities carried out during the five years preceding
     such assessment. It shall communicate the assessment, accompanied by its comments,
    to the European Parliament, the Council and the Economic and Social Committee at
     the same time as its proposal for a fifth framework programme.
Done at Brussels,                                                      For the Council
                                                                       The President
                                            -27
 ---pagebreak---                                            ANNEX I
                  FOURTH FRAMEWORK PROGRAMME (1994 to 1998):
                               AMOUNTS AND BREAKDOWN
    .                 '     11      "    .         I I  I            ,  . ,
                                                                                 MECU
                                                                          (current prices)
      First Activity (Research, Technological Development and                      9 450**
      Demonstration Programmes)
      Second Activity (Cooperation with Third Countries and
      International Organizations)                                                     790
      Third Activity (Dissemination and optimisation of Results)                       600
      Fourth Activity (Stimulation of the Training and Mobility of                     785
      Researchers)
                    AMOUNT DEEMED NECESSARY™                                    11 625**
                                                                                       MECU
                                                                                  (current prices)
Indicative breakdown between themes in the first activity
  -Information and Communication Technologies*                                      3 900
  -Industrial Technologies*                                                         1 800
  -Environment*                                                                       970
  -Life Sciences and Technologies*                                                  1 325
  -Non nuclear Energy*                                                              1150**
  -Research for a European transport Policy*                                          280
  -Targeted Socio-economic Research*                                                   125
                                                                                    9 450
            of which JRC 724 MECU. N.B.: in addition to participating in the first activity
            the JRC will also participate in the third activity to the tune of 70 MECU.
      **    A framework programme for research and training for the European Atomic Energy
            Community (1994-1998) is decided along with this programme, for a total of 1475
            million Ecu, taking the total deemed necessary11 for RTD actions in the field of
            energy to 2525 million Ecu and the total for Community RTD activity to 13100
            million Ecu.
      * * * see mis number of the OJ page...
(1)
      Replace the words "AMOUNT DEEMED NECESSARY" by "MAXIMUM OVERALL
      AMOUNT".
                                                28
 ---pagebreak---                                         ANNEXE
              SELECTION CRITERIA FOR COMMUNITY ACIWrriES
The following criteria which guide the selection of scientific and technical objectives of
the framework programme should also be applied in the definition of specific
programmes:
1.  Community research, technological development and demonstration (RTD) activities
    must focus on clearly defined objectives which will contribute towards:
    -   strengthening the technological base of Community industry and providing it
        with the knowledge and know-how (skills) required to make it more competitive
        at international level;
     -   defining and implementing Community policies;
    -    meeting the needs of society and promoting a sustainable development.
     This approach will also yield short-term, medium-term or long-term economic
    benefits and should contribute to the strengthening of economic and social cohesion
     in the Community, while being consistent with the pursuit of scientific and
     technical quality.
 2.  The Community's RTD activities must observe the principle of subsidiarity,
     whereby the Community takes action if, and only if, the objectives cannot be fully
     achieved by the Member States and can be better achieved by the Community.
 3.  On this basis, the following types of action could warrant Community activities:
     -   action on a very large scale for which Member States could not provide the
         necessary facilities, finance and personnel, or could only do so with difficulty
         ("critical mass");
     -   activities tackling ambitious themes, addressing large-scale problems or of
         long-term scientific benefit. Activities of this type require specific research at
         Community level and can thus often enhance the Community's overall
         contribution to the solution of international problems;
     -   activities producing obvious financial benefits which justify joint action even
         allowing for the extra costs inherent in all international cooperation;
     -   activities which are complementary to those being carried out nationally and
         which aim at strengthening the scientific and technological base of the
         Community as a whole and where there is a better chance of applying the results
         at Community level;
                                           -29-
 ---pagebreak---    -  activities contributing to the achievement of a common policy, such as the
      completion of the Single Market or of a common objective such as the
      unification of the European scientific and technical area, and, where the need is
      felt, to the establishment of common rules and standards.
4. The Community's RTD activities must be implemented through projects which are
   to be assessed on the basis of their scientific and technical excellence.
   In this process of selecting the projects to be carried out in the specific
   programmes, priority will be given to projects:
   -   allowing closer coordination of the- research being conducted in the
       Member States, at Community level and within other European and international
       cooperation forums;
   -   making it possible to respond as effectively as possible to the Community's
       objectives regarding economic and overall industrial competitiveness.
                                        -30-
 ---pagebreak---                                           ANNEX III
                     SCIENTIFIC AND TECHNOLOGICAL OBJECTIVES
   The new guidelines for a genuine Community research and technological development
   and demonstration (RTD) policy imply greater focusing of the Community's activities
   in order to increase the value added, notably by applying the principle of subsidiarity
   and the criteria set out in Annex II.
   The RTD activities in the third framework programme (1990 to 1994) which meet these
   criteria have been retained
   The measures selected cover all the Community's RTD activities. They are designed to
   support the common policies and aim at providing the scientific and technical basis
   needed for sustainable, development, respecting the environnment, which improves the
   competitiveness of European industry and the quality of life.
   In particular, in keeping with the Community's industrial policy and in order to meet
   society's growing needs, a series of objectives in the public interest have been identified
   for the purposes of selecting the Community's RTD activities:
   - to develop efficient and safe infrastructures, in particular an information and
      communications infrastructure;
    - to produce efficiently, cleanly and safely on the basis of modern organization of
      production taking into account human factors;
    - to make environmental protection an aspect of industrial competitiveness;
    - to promote an improvement in health care, food quality and food hygiene;
    - to ensure technological and industrial integration within the internal market (in
      particular by strengthening coordination between RTD policy and standardization
      policy);
    - to anticipate technological and industrial changes so as to ensure that greater account
      is taken of market and society's needs;
    - to increase the synergies between the international cooperation activities proposed and
      the Community's external policies;
    - to ensure efficient dissemination, throughout the whole economic and social system,
      in particular to small and medium sized enterprises, of the scientific and technological
      advances made;
                                              - 31
5)
 ---pagebreak--- - to train economically active people to master the new technologies.
The scientific and technological objectives are built around four activities.
- the first activity covers the research, technological development and demonstration
   programmes;
- the second activity aims at promoting cooperation in the field of Community RTD
   with third countries and international organizations;
- the third activity deals with the dissemination and valorization of results of
   Community's RTD activities;
- the fourth activity covers stimulation of the training and mobility of researchers in the
   Community.
The Community must aim at ensuring harmonious development of its scientific and
technological resources. In support of strengthening the synergies between RTD policy
 and structural policies, and while maintaining the principle of excellence, the research
priorities set for the first activity must take account of the interests and capacities of all
 Member States, including the less advanced ones. The third and fourth activities will
have a growing impact on the less developed regions and countries through specific
 measures. However, it is primarily the responsibility of the Member States to establish
 a coherent overall strategy aimed at making the best use of these possibilities.
 The Community support for RTD activities covered by the//>sr activity will continue
 to focus on generic, precompetitive research of multisectoral application. This activity
 also includes the JRC's support for other Commission services which have a long-term
 character. Further, Community actions will be orientated towards certain major topics
 in order that European research is able to contribute, in the most effective way, to the
 solution of problems with which industry and society are faced.
 In this respect, the need is to develop an operational approach in order to establish an
 effective interface between cross discipline research programmes and the needs of
 specific industrial sectors such as the automobile and aeronautics industries which need
 to strengthen their competitiveness. For this reason, the Commission will coordinate the
 activities in the different cross discipline research programmes and will for this purpose
 consult representatives of industry, public bodies and users who will give advice on the
 definition of the most promising research topics so that they can be included, as a
 priority, in the implementation of the first activity at the level of work programmes and
 calls for proposals. This could apply in particular to the automobile, aeronautics and
 maritime industries.
 EUREKA will remain the principal vehicle for supporting RTD activities which are
 nearer to the market. The synergy between the Community's activities and EUREKA
 will be improved. Financial resources to be allocated to this action could be included in
                                              - 32
 ---pagebreak--- an indicative fashion in the work programmes for Community programmes. Improving
the dissemination of results amongst enterprises, particularly small and medium-sized
businesses, cost-effectiveness and coordination between national programmes will be
priorities for Community action.
Particular attention will be paid to the research, development and innovation capacities
of small and medium sized businesses, of institutes of higher education and of research
centres. Partnerships between them will be encouraged. Particular attention will be
given to encouraging access to Community programmes by small and medium sized
businesses by extending the approach whereby a rapid response can be given to their
spontaneous proposals (technology stimulation).
 Within the different activities emphasis will also be placed on basic research wherever
necessary.
 Within each research area, particular attention has been paid to the opportunities for
 cooperation or even coordination between national, Community and European activities.
 Other than shared cost action centred on selected research, increased use of concerted
 actions will allow promotion of this cooperation in a wider range of areas, while always
 respecting the criteria listed in Annex II. Similar attention has been given to ensure
 complementarity between JRC activities and shared cost ones.
 Closer consultations will be held with bodies representing scientific, technical and
 industrial circles in the Community, particularly to define the science and technology
 policy options at European level.
 In addition to the specific programme on targeted socio-economic research under the
 first activity, research in the human and social sciences under every theme in the first
 activity, and also under the second, third and fourth activities, will be coordinated with
 research in the exact sciences, natural sciences and engineering with a view, in
 particular, to anticipating and assessing the socio-economic impact of the activities
 planned and any possible technological risks.
 The objectives of the research activities which up to now have been carried out within
 the ECSC Treaty will be gradually incorporated ("phasing in") into the relevant themes
 under the first activity, thus allowing the bodies concerned to submit their projects in
 response to calls for proposals by specific programmes of the framework programme.
 Scientific and technological cooperation with third countries and international
 organizations on subjects of mutual interest will be organized partly on a centralized
 basis (as the second activity) and partly under the individual themes in the first activity,
 in so far as they help to attain the relevant objectives of these themes. International
 scientific and technological cooperation is one factor determining the economic
 efficiency of the Community's RTD activities. Consistency must be ensured in this area
 between national and Community policies. In this way, cooperation with third countries
 and international organizations will provide added impetus for the Community'.;
 investments in R&D.
                                             33
 ---pagebreak--- The Council will lay down the rules governing dissemination of the know-how acquired
under the specific programmes and the other arrangements for implementing the
framework programme. Within this legal framework, the dissemination activities must
be consistent and coordinated. This implies not only centralized management (as the
third activity) but also a degree of autonomy for the specific programmes in order to
organize special dissemination arrangements. In both cases, these activities can be
carried out primarily by means of publications or using computerized methods applying
common standards and protocols.
The dissemination activities also include measures to provide small and medium-sized
firms and private or public research laboratories with greater access to information on
Community programmes and activities.            To the same end, the third activity will
encourage the establishment or expansion of national or regional relay centres to
disseminate and optimize the results.
Although application of the results is clearly primarily up to businesses and laboratories,
in certain cases it will require concerted action by the Community and the players
 involved and by the relevant public- or private-sector organizations, particularly at
national or regional level (including, in particular, the above-mentioned relay centres)
in order to protect certain results and to facilitate the absorption of technologies and to
ensure the best possible degree of transfer of innovations. The third activity also includes
scientific services carried out by the JRC in support of Community policy which are not
covered by the first activity.
 Activities on the training and mobility of researchers will be carried out within each
theme in the first activity in order to provide users in priority areas for the Community
 not only with the RTD results they need but also with the human resources capable of
 using them. Such activities will allow an increase in the economic impact of work
 undertaken within these priority areas.
 However, the European dimension must also be used for more general measures to
 develop the human resources which make it possible to react in real time to scientific
 and technological developments in emerging areas. The fourth activity, addressing
 advanced training in centres of excellence throughout the Community, will therefore be
 open-ended and will also focus on partnerships between universities and industry.
 Two main avenues will be used for the implementation of research supported by the
 Community: first, focusing financial resources on a limited number of subjects selected
 for their specific added value (shared-cost activities), without precluding the possibility
 of reduced rates of support depending on the nature of the project, and secondly
 encouraging the integration of national, Community and European activities by
 appropriate means.
 In particular, alongside the traditional networks established in the context of Community
 activities hitherto, this cooperation can be achieved by means such as:
                                              34 -
 ---pagebreak--- - Thematic networks of excellence bringing together for a given technological or
   industrial objective manufacturers, users, universities and research centres to facilitate
   the integration and transfer of knowledge and technologies and to ensure that fuller
   account is taken of the needs of the market. They would be organized, with catalytic
   support from the Community, along the lines already tested during the implementation
   of the Third Framework programme in areas such as microsystems, linguistics and
   flexible manufacturing.       They will be "bottom-up" in both conception and
   management.
- Concertation networks in which Member States will play an important role in
   identifying the national laboratories or institutes to take part in the activity decided
   upon. The Commission will organize the concertation. This method could be used
   to carry out epidemiological research and clinical studies in the area of biomedical
    research, for example.
- Consortia for integrated projects along the lines, in previous framework programmes,
   of the Fusion Programme. The Member States identify the laboratories or institutes
   to take part in an integrated project supported by pooling financial resources from the
    Community. Major European research bodies such as CERN, ESA and EMBL will
    be invited to take part.
 In this connection, the Commission considers that the JRC can make a contribution
towards the implementation of this new approach. As it is itself actively engaged in
 research and is closely involved in the formulation and implementation of Community
policies, it could play the role, in the scientific and technical areas which it covers, of
 organizer or focal point for networks bringing together public and private laboratories
 in the Member States, and could act as a centre of gravity for European research
 consortia in specific areas.
 The following paragraphs set out the scientific and technological content of the activities
 to be conducted and the reasons for including them in the framework programme for
 1994 to 1998, in a manner which accords strictly with the Treaty's designation of the
framework programme as a planning instrument.
                                            -35 -
 ---pagebreak---                                     FIRST ACTIVITY
 Implementation of research, technological development and demonstration
 programmes, by promoting cooperation with and between undertakings, research
 centres and universities.
  This activity covers a major part of Community activities in the field of research
 and technological development. The basic approach is the participation of
  transnational groupings of organisations, research centres, universities and
 enterprises with the Joint Research Centre (JRC) also participating where it has
  specific competencies. It will develop in the fourth framework programme along
  the following lines.
  GENERAL OBJECTIVES: Three fundamental objectives form the basis of the
 fourth framework programme: support for the competitiveness of European
  industry; the contribution of science and technology to the satisfaction of society's
  needs; support for the various common policies. In addressing these three
  objectives, an appropriate combination of continuity and novelty will be sought.
 Moreover, research activities currently scattered either in common policies or in
  the category of activities currently carried out outside the framework programme,
  will be unified in the single scheme of the framework programme.
           1. INFORMATION AND COMMUNICATIONS TECHNOLOGIES
The horizontal role of information and communications technologies in all industrial and
societal activities has become a factor of crucial importance for RTD policy. The
boundaries between ICT and other industrial sectors, between suppliers and users, and
between the professional and consumer markets are constantly being eroded, as ICT
increasingly underpins all service and production industries. A new "digital industry" is
emerging. In the societal dimension, administration, health, education, transport,
environment and entertainment, the workplace and the home, all become increasingly
dependent on ICT. As regards the ICT industries themselves, the pace of technological
advance demands ever greater efforts from suppliers if they are to remain competitive,
but the costs of RTD spiral out of reach of even the largest companies. At the root of
these changes is the emergence of a new information and communications infrastructure,
bringing together information content, information storage, computation capacity,
communications, services, and applications.
The broad twofold objective of Community RTD in ICT in the 1990s is the
improvement of the competitiveness of all industry within the favourable environment
created by the internal market, and the satisfaction of societal needs for a better quality
of life. To achieve this objective, and leading on from the technology driven policy of
the 1980s directed at a growing ICT industry, there will be firmer emphasis on a user
and market led policy geared to the development of the new infrastructure. At the same
time work will draw on the results of the second and third framework programmes,
where the programmes, including ESPRIT (information technology), RACE
                                           - 36
 ---pagebreak--- (communications) and DRIVE, AIM and DELTA and other telematic applications, have
furnished a solid scientific and conceptual basis for the integration of information and
communications technologies into society and for the building of the new infrastructure.
Activities will continue to be precompetitive in nature, and will emphasise
demonstration, validation, and integration of technologies, specifications and standards.
They will be reinforced by an effort in longer term advanced research, especially
interdisciplinary research addressing issues of relevance in several industrial areas.
The new focus of RTD on the generic technologies and applications essential to the
fundamentally pan-European information infrastructure, together with careful
coordination with national initiatives, ensures respect for the principle of subsidiarity.
Furthermore, the growth and spread of the infrastructure strengthens economic and social
cohesion by bringing information, services and advanced communications to enterprises
and citizens in outlying regions. It enables SMEs to realise their full competitive
potential. The requirements of the infrastructure gives us a yardstick for assessing R&D
priorities, and so ensuring effective use of resources.
The infrastructure can be seen as consisting of four main domains: applications,
 integrated systems, communications, and underpinning information technologies. The
generic information technology and communications technology domains encompass
those technologies which lie at the heart of the infrastructure, including components,
 computers, software, data banks, data highways, and video displays, and which are also
 essential for the technologies for digital high- definition TV. They provide the building
blocks for the complex integrated systems bringing together technologies such as
 language engineering, high performance computing and multimedia interfaces. These in
turn are the basis for the implementation of applications in areas such as health,
 transport, open learning, statistics, libraries and business organisation.
There are inevitably close links between RTD activities in the different domains,
 reflecting the increasingly integrated nature of ICT. Furthermore the widespread
 application of ICT means that there are links with many other themes within the
 framework programme.
 All four domains draw on a range of modalities with a view to encouraging flexibility
 and responsiveness. As well as traditional shared-cost and concerted activities, RTD in
 certain areas will use focused clusters of projects, accompanied and reinforced by
 networks of excellence, association of suppliers and users, coordination with national
 initiatives, international cooperation, dissemination of results, and training activities
 complementary to and coordinated with similar more centralised activities. In addition
 the participation of SMEs will be facilitated through supplier-user pairs and
 streamlined procedures for small projects.
 In order to strengthen the industrial and social impact of RTD results, RTD actions will
 be embedded in a set of coherent industrial policy actions. Consequently, accompanying
 measures will be systematically identified, in particular through a continuous analysis
 of market, industrial and technological evolution. These analyses will provide guidelines
 for future actions and pave the way for the implementation of appropriate industrial
 policy measures.
                                                37 -
 ---pagebreak--- A. Telematics applications of common interest
This domain covers RTD activities on applications of information and communication
technologies that will contribute, on the one hand, to fulfilling requirements resulting
from existing Community policies as well as fundamental needs of modern societies in
sectors such as health care, transport or training, and, on the other hand, to the
positioning of European industry for the new markets that will emerge as a result of
research activities. The general objective is to improve the effectiveness of telematics
applications engineering and to ensure the interoperability of systems and telematics
networks, by means of prenormative research and development activities and trials for
technical validation. The work will draw upon the experience gained in the Third
Framework Programme, but the emphasis will shift from data telematics to image
telematics. Activities will be focused around six topics and will be closely coordinated
with other relevant Community activities.
 Development and upgrading of trans-European telematics applications. Today, to be
 more efficient, European research needs advanced trans-European networks and services.
 In addition, the internal market has set important requirements in the field of services
 and information exchange between administrations. The needs for enhanced telematics
 services will be supported by RTD activities aiming at developing and validating cost-
 effective solutions based on the constantly evolving pool of new technologies and on the
 upgrading of European telecommunications networks. In particular, work will
 concentrate on applications integrating distributed services for information exchange and
 videoconferencing. The results of the RTD work in this first area, which deals
 exclusively with trans-European applications, will be made available to the remaining
 telematics application areas.
 Applications for health care will aim at the stimulation of telematics technologies for
 delivery of seamless health care irrespective of location with a focus on information
 access, interchange and management of data, telemedicine, and security and privacy
 issues, whereas applications for disabled and elderly people will develop and validate
 systems and services compensating for the impact of disability, ageing and social
 exclusion.
 Work in the area of flexible and distance education and training and information
 exchange between libraries will promote the provision of efficient education and training
 services, widely available and able to meet the needs of individuals, industry and
 researchers. The activities will encompass technology and systems development for the
 design and delivery of learning products and services, and their integration into
 experimental networks. Work will also cover technology development creating a generic
  scientific and technological base for European library resources and for a networked
  library infrastructure.
  RTD for telematics transport applications will develop and validate common functional
  specifications, practices and guidelines for telematics systems and services developed for
  all transport modes, including multimodal transport. Particular attention will be given to
 telematics systems as a contribution to the traffic management of railways, shipping and
  road traffic including inter- and intra-city traffic and multi-modal transport as well as for
  the creation of a unified system for European air traffic management. Applications for
  urban and rural areas will validate solutions, such as teleworking and teleservices, that
                                              - 38 -
 ---pagebreak--- will bring work and services to citizens and will reduce unnecessary movement of
people. It will also combat the migration of companies and citizens from rural areas and
improve the conditions of daily life. Particular attention will be paid to the ease of use
of these telematics services by citizens and small and medium-sized enterprises.
Finally, exploratory actions will assess the potential of telematic solutions in new areas
such as environment (pollution monitoring, surveillance and control, advance warning
for major natural catastrophe, management of environmental hazards and tracing of
dangerous material) as well as other needs for telematics services which may usefully
be developed in the course of the Fourth Framework Programme.
B. Technologies for integrated information and communications systems
The increasing convergence of information technologies and communications in the
information infrastructure leads to greater complexity of systems, which in turn relies
upon the availability of technologies for the integration of systems. This domain
 concentrates on the development of the integrated technologies most vital for the growth
of the European information infrastructure. Activities are divided into six topics.
The aims of activities within the topic language and information engineering are to
 develop technologies for processing spoken and written language within information and
 communication systems, and to demonstrate their integration into a variety of application
 areas. Work also covers electronic language resources, including dictionaries and
 corpora, and general linguistic research. Information engineering will cover advanced
 electronic publishing systems, new database structures to ease information access,
 improvements in the usability of information and in information management,
 cooperative RTD networks, and standards work. The topic high performance computing
 and networking has as its objective the exploitation of high performance computing and
 networking technologies for the benefit of a broad range of users in fields such as
 manufacturing, engineering, and commerce, on applications ranging from non-destructive
 simulation of car collisions, drug design, and advanced imaging for earth observation,
 to medical diagnosis and surgery, and very high performance databases. Activities
 include the transfer of applications and the implementation of user environments for the
 use of parallel, distributed and embedded systems, and the development of selected new
 applications and technologies. Work on integrated personal systems is directed at the
 development of technologies and systems supporting personal access from any location
 to services in the information and communications infrastructure, and the local
 manipulation of information. Work will include miniaturisation, new multimodal user
 interface paradigms, high levels of systems integration, integration of smart card
 technology, personal applications, and secure, fast access to remote digital information
 services. Applicability will be demonstrated in systems such as the electronic wallet,
 advanced European Minitel and systems for personal and group working.
 The topic multimedia systems aims to stimulate advanced technologies and standard
 exchange formats for the processing, retrieval and dissemination of multimedia electronic
 information (text, voice, images, audio and video), and to demonstrate their integration
 into a variety of interactive multimedia applications. Work will cover hardware and
 software productivity tools for authoring and development platforms, multimedia
 information servers, hypermedia presentations, the management of documents, advanced
 compression algorithms, copyright protection software, virtual reality techniques, and
                                            -39-
 ---pagebreak--- pilot applications, particularly in the area of business processes. ICT support for function
integration in manufacturing aims at the development of new ICT solutions in support
of manufacturing and engineering operations, in order to achieve increased
competitiveness as well as greater efficiency and environmentally clean and safe
operations supporting a lean manufacturing approach. A specific ICT infrastructure and
advanced ICT technologies for distributed multi-site operations will be developed to
support innovation. Activities will be targeted at exploiting new organisational
approaches integrating basic technologies of software engineering, open systems, data
modelling and database design, computer aided design, microelectronics, microsystems
and, selectively, mechatronics Work on security of information systems covers the
development and demonstration of technologies for the integrity, confidentiality and
availability of information in integrated systems. The work will include research on new
technological opportunities to assure security, the development of software, protocols,
and components and their integration into secure systems and services followed by
 validation and testing within integrated systems. Particular attention will be given to the
 requirements of electronic payment, health-care and remote-working systems.
 C. Technologies for advanced communications services
 Telecommunications networks are ah indispensable part of the information infrastructure.
 The overall objective of this domain is to develop advanced communications systems
 and services for the consolidation of the internal market, economic development and
 social cohesion in Europe, taking account of the rapid development of technology, the
 changing regulatory situation, and opportunities for development of advanced trans-
 European networks and services. An effective framework will be provided for usage
 innovation and the wide dissemination of European technologies and expertise. Activities
 will concentrate on four topics.
 Work on digital multimedia services will include technology development for terrestrial
 radio, satellite and fibre transmission of interactive digital video services. It will also
 cover switching, processing and recording developments, for service providers, network
 operators and users, including new technology development for image compression,
 variable bit-rate coding, wireless networks, network interfaces, and recording. The
 objective of work on photonic technologies is to stimulate and accelerate European
 development of integrated photonic systems, and involves the development of integrated
 optical subsystems, free packaging and mass-manufacturing techniques, and optical
 cross-connects, as well as key technologies for 21st century: 3D holographic displays,
 life-images recognition and new signal compression techniques. Mobile communications
  activities are directed towards ensuring mobility on fixed networks and using advanced
 radio and satellite systems across Europe. The work will involve technology
  developments in signal coding; access systems; channel, network and service
  management; the development of new signalling protocols; and system development to
  ensure compatibility and interoperability of networks through protocols for transparent
  network interoperation. The objectives of work on intelligence in networks and service
  engineering are to develop technology for flexible and real-time management of
  communication assets, to enable the fast and flexible introduction of new services in
  advanced networks and effective network management and service deployment in a
                                              -40
 ---pagebreak--- diverse and competitive communication environment. The work will focus on the
development of tools for service integration and will support the development of
protocols and standards. It will involve the development, enhancement and prototyping
of service creation environments and the development of advanced "operating systems"
for communications services.
D. Information technologies
Work in this domain focuses on the technologies underpinning the information
infrastructure, selecting activities which are most essential and add most value at the
European level. There is a strong feedback relationship with the other three domains of
ICT: activities in information technologies provide important inputs to the other
domains, and conversely are conditioned by the other domains' requirements. Work is
divided into six topics.
The objective of the topic semiconductortechnologies,including ASICs is to provide
essential microelectronic components which underpin the competitiveness of all high
technology industries. Work will concentrate on those technologies, particularly CMOS,
likely to be in major use towards the end of the decade. All aspects of the process,
including design and production, will be supported. Some work may be undertaken in
conjunction with the Eureka initiative. Systems integration of advanced components into
Application Specific Integrated Circuits (ASICs) is a key area of emphasis. The open
microprocessor systems initiative aims to provide Europe with a recognised capability
in microprocessor systems, and to promote their broad acceptance in applications
systems world-wide. The work includes the provision of an open library of hardware
building blocks which can be integrated into on-chip systems for a wide range of
applications, open systems software, and both hardware and software integration tools.
The objectives of the topic integrated microsystems is to provide technologies for the
emerging domain of microsystems, in which microelectronics will be integrated with
other microtechnologies such as micromechanics and microoptics. The work will focus
on multidisciplinary design, manufacturing of miniature multitechnology systems, and
 integration and packaging methods. Applicability will be demonstrated in microsystems
for applications such as the clean, safe car of the 21st century and portable intelligent
medical diagnostic systems.
 Activities within advanced peripheral technologies concentrate on the technologies
 needed for the low-cost high-resolution thin-screen display components and memory
 subsystems required by computers, televisions, and intelligent systems in areas such as
 avionics, cars, telecommunications, manufacturing, and retailing. Work on displays
 focuses on visual quality, screen size and flatness, with an emphasis on LCD technology.
 Memory subsystem development will include increased capacity, compactness and
 read/write performance. The objective of the topic software best practice is to improve
 productivity, quality and reliability in European software production by fostering the best
 use of advanced software tools and techniques, including aids for re-use and portability
 in a distributed environment. In addition to further development of current techniques,
 work will include industrial experiments, dissemination aimed at raising awareness of
                                             -41 -
 ---pagebreak--- best practice, training for the introduction of new practice, and the European Software
Institute. Distributed information processing activities concentrate on tackling challenges
generated by the convergence of information processing and communications
technologies, and will focus on distributed database management, distributed statistical
systems, open distributed processing, and advanced human-computer interactions.
                            2.INDUSTRIAL TECHNOLOGIES
The globalisation of markets, newly emerging competitors, the internationalisation of
processes for new technologies and the essential improvement in environmental
protection are forcing European industries to adapt their structures, their cooperation and
their competition strategies. In the developed countries the share of manufacturing is
declining and accounts for about 30% of GDP (including the building and construction
industry). It must be stimulated it in order to improve its competitiveness through a
better collaboration with "knowledge-related" activities (eg services, engineering,
training). Despite past efforts, Europe is still in a difficult situation; industrial R&D
expenditure and the number of researchers are still significantly below those of Japan
and USA (1.3% of GNP against respectively 2.2% and 1.9%) and there is a risk that this
 difference will increase. In this context, the strategy of the Community has to play an
important catalytic role to support industrial initiatives, to stimulate the development of
 technological innovation, and to help die establishment of European standards.
The growing requirement to master a large spectrum of technologies for industrial
 competitivity justifies the reinforcement of Community actions in this field. The studies
 realised for the BRITE-EURAM II programme have shown that the European effort on
 industrial research is generating important results; die indirect economic impact has been
 estimated to be more than four times Community funds in R&D (technological effects,
 organisational effects, networking, training) with a relatively larger impact on peripheral
 and less favoured regions. The proposed research actions are a continuation of previous
 activities but will be concentrated on the development and application of generic
 sciences and technologies (such as mathematics and physics applied to industrial
 systems, new design and organisation methodologies, high performance material
 engineering, rapid prototyping or molecular engineering) operating within
 multidisciplinary and multisectoral projects. In addition, the development of harmonised
 methods for measurement and testing and prenormative research will reinforce industrial
 competitivity while offering support to European legislation.
 Following the lines of the new European industrial policy, the research actions on
 industrial technologies will be aimed at industrial technologies the application of which
 could have a rapid impact on a wide range of industrial activities. Research on new
 technologies for "clean manufacturing" or "flexible manufacturing" is a clear example
 and their global economic impact is important; a reduction of 1 month on the time to
 place a new vehicle on the market will represent a gain of 30 MECU or so for the
 automotive industry. Numerous industries, including SMEs, could benefit from these
 research activities, concentrated as they are around strategic objectives and consortia of
                                              42-
 ---pagebreak--- suppliers, manufacturers, end users, universities and research centres. Proposed actions,
especially those dealing with coordination, will stimulate technological networking
improving the consistency between projects and the diffusion and exploitation of RTD
results, in particular through standards and industrial specifications. Research activities
for and by SMEs, and training activities within an industrial context will also be
reinforced.
The proposed actions cover 4 areas: the first three areas address the integration needs
of technologies related to the materials and product life cycle (including applications of
available information and communication technology), whilst the fourth area is more
specifically related to prenormative research.
A Design, Engineering, Production Systems and Human Management
This theme is of major importance and covers the whole of the manufacturing industry.
The objective is to develop and apply, within a perspective favourable to the
environment and to the improvement of the quality of life, new methods, techniques,
new processes and tools in each phase of industrial production essential for
competitiveness (design and engineering, production and maintenance, quality of
products); such diffusing technologies will be integrated and applied in production
systems so as to fit the needs of networks of companies and human management in
production. In particular, emphasis will be placed upon use of the available computer
 integrated technologies "CIT", rapid prototyping, micro-system technologies, man-
 machine interfaces and the technologies required for clean manufacturing (such as
 bioprocessing) and for the rapid emergence of new products, particularly in the field of
 industrial machines, transport and human habitat.
 B Materials and material-related technologies (including processing and recycling)
 The objective is twofold: first, to improve the existing processes commonly used by the
 material transformation industries (metallurgy, chemical processing, construction) and,
 secondly, to make sure that the most advanced materials are ready for supply to both
 manufacturing industry (electro-mechanical, machine-tools, transportation, etc..) and
 high-tech industries (eg aeronautics and electronics). Priority will be given to research
 topics related to high performance materials (structural materials but also on bio-
 materials, magnetic, optical and super-conducting materials), and to research into the
 improvement of the quality, reliability and the performance of materials and products
 and into longer term research whose exploratory character may quickly yield practical
 applications thereby strengthening European industry's technological lead. The
 programme will obviously cover the recycling and treatment of waste and the recovery
 of materials at the end of product life, including the necessary quality assurance.
 Special attention will be given to the technologies required for the rational management
 of primary resources and the reuse of secondary materials and products in order to
 contribute to the development of clean processes and technologies.
                                             43
 ---pagebreak--- C Advanced propulsion technologies
European integration and the trends in the economy are creating a growing demand for
flexible and efficient transport systems. The advanced propulsion systems are the key
elements which allow for comfort, quality, safety, cost-efficiency, volume, speed and
environmental-friendliness in the context of the European transport policy. The priority
research tasks for automotive, aeronautics, railway and shipbuilding industries will
therefore encompass the design, engineering and production of new transmission and
power systems. Research topics will consider the application and integration of generic
technologies and the development of specific technologies to set up advanced systems,
even if, in relation with the different transportation means, various technologies may be
developed and applied; the emphasis will concentrate mainly on design and
manufacturing techniques, modelling and simulation, advanced material applications and
the reduction of the environmental impact. Particular attention will be given to
command and control systems.
D Research linked with standards, measurement and testing
The main objective is the research necessary to develop new measurement and testing
methods and to accelerate the establishment of European directives and standards for the
 reinforcement of the single market and the realisation of the other Community policies,
 especially those dealing with health and security. Within the industrial field the
 emphasis will be placed on the improvement of die interface between standardisation and
 regulatory issues and the design, assembly and the quality of products. In parallel with
 die development of test procedures and more effective measuring systems and a better
 system for mutual recognition of conformity certificates, the accent will be put on
 recognition of accreditation and audit systems set up in die framework of partnership
 with industry or sub-contracting. The infrastructure will be strengthened at the European
 level. Coordinated and cost-shared actions will be undertaken with networks of national
 laboratories. Workshops and training courses will permit the diffusion of codes of good
 practice within Member States.
 All these actions will be principally undertaken through collaborative research projects.
 On the basis of the experience of the third framework programme (CRAFT, Feasibility
 Awards) specific activities to stimulate research for and by SMEs will be improved and
 reinforced, especially,through simplified procedures and the support of a decentralised
 assistance network. Greater use of concerted actions, when this mode of action is
 sufficient to attain the Community added value, will permit greater selectivity in cost-
 shared actions (concentrated on strategic fields, needing a minimum critical mass).
 Modalities will be established such that the necessary flexibility is achieved in order to
 guarantee maximum efficiency and a quick reaction to emerging needs.
                                            -44-
 ---pagebreak--- Accompanying measures aiming at strengthening the impact of Community actions will
be optimised: studies, evaluation of impacts, training, support to diffusion and
exploitation of RTD results, joint activities with assistance networks for SME's,
measures for decentralised management, and coordination of industrial research on
common objectives, such as the factory of the future, die clean vehicle, etc, to facilitate
integration of technologies and transfer of knowledge between projects, sectors and other
European initiatives such as EUREKA.
JRC actions will complement these efforts through research on advanced materials,
ceramics and composites (especially for high temperature applications) and non-
destructive testing techniques. Prenormative research will cover work on structural
mechanics and research on measurement and reference materials. These actions will
also cover all scientific and technical support activities of JRC to the Community
industrial policy and the Single Market.
                                    3. ENVIRONMENT
Environmental research makes major contributions to commercial competitiveness and
to the improvement of quality of life in the Community. These are essential elements
in the definition and die execution of Community environment policy and to the
 expectation of an economic boost based on sustainable development in the sense of the
objectives of the Community's Fifth Action Programme on die Environment. This
programme provides a new strategy to determine, in a spirit of sharing of
 responsibilities, die actions which affect natural resources or which affect the
 environment. This strategy aims at reducing the tendencies and practices which have a
 negative effect on the environment with a view to improving both the quality of life and
 socio-economic development for the current and future generations by enlarging die
 range of instruments available aimed at changing the behaviour of actors in the field. It
 will also take into account what the Community has accepted to do as a result of the
 UNCED in Rio de Janeiro.
 Environmental research and its economic and social implications have acquired a
 world-wide dimension. As it becomes ever more multi-disciplinary and requires more
 money and resources, environmental research needs a strongly integrated and
 coordinated international effort that exceeds the capability of any one Member State. The
 participation of the European Community in this effort is clearly justified by the political
 and geostrategic stakes in areas such as global change and the management of natural
 resources.
 In this context the Community's intiative with regard to RTD on the environment has
 the following priority objectives:
 (a)     continuing the development of a scientific base permitting the definition and
         execution of a Community environment policy that will achieve an increased
         level of environmental protection;
                                            -45
 ---pagebreak--- (b)      contributing to improving industrial competitiveness by (i) the stimulation of the
         development of generic technologies integrating environmental constraints within
         the scope of sustainable development and (ii) improving ability to anticipate
         environmental problems;
(c)      contributing to the observation of the behaviour and the understanding of the
         processes taking place within the Earth's systems, and examining the effects of
         human activities on these characteristics and processes.
In comparison to die Third framework programme, the nature and scale of these issues
requires a thematic focus of Community effort on two priority areas of research: on the
one hand the natural environment and global change, and on the other the new
technologies for the protection of die environment.
Concerted actions (concerted networks) and shared cost actions (integrated projects) will
be the main operational mechanisms ,as in the third framework programme (continuity).
However, in die area of research on the quality of the environment and global change,
in order to focus Community efforts concerted and shared cost actions will be
incorporated into die large thematic networks, integrating strongly the potential of the
national research programmes. These networks will be developed in cooperation with
the JRC and in close cooperation with international organisations and research
programmes (ESF, IGBP, WCRP and HDP) and the space agencies.
 At the same time die socio-economic aspects inherent in the two priority themes and
 linked with die general topic of sustainable development will be tackled. These aspects
 will be important with regard to changing die behaviour of actors in the field.
A. Hatural environment, environmental quality and global change
 In this area Community efforts will be concentrated on prenormative and pre-legislative
 aspects to facilitate the implementation of the Fifth Community Programme of Policy
 and Action in relation to the Environment and Sustainable Development.
 Community effort, including die activities of the JRC concerning the risks associated
 with chemical products (European Chemicals Bureau) and the validation of alternative
 testing methods (European Centre for the Validation of Alternative Methods), will
 concentrate on the following objectives:
 - providing a scientific basis for evaluating the state of the environment and improving
    the timely awareness of environmental problems, which will require the identification
    of indicators and environmental parameters, of advanced systems for surveillance and
    evaluation, including natural phenonema, constiting a risk for man and society;
 - a better understanding of the fundamental mechanisms which are active in the
    environment and die effects of human activity. Here there is a need for a long term
    research strategy focusing on global change and its possible effects.
                                           -46-
 ---pagebreak--- Within this framework Community activities will be concentrated on: a) observation of
the behaviour and understanding of the basic processes of natural, terrestrial, oceanic,
climatic and atmospheric systems, putting the emphasis on the European context and
dimension, but within a planetary perspective; b) identification and evaluation of the
impact of human activities on this behaviour and processes, and; c) evaluation of the
impact of the possible climatic, biospheric and atmospheric changes on man, the
environment, society and economic activities. These tasks will be achieved through
thematic networks consisting of concerted actions and integrated projects and the
activities of the JRC. The thematic networks will be coordinated to ensure coherence of
the whole, particularly in the diffusion of results and model development. The JRC will
be closely associated with these actions. They will be developed within the framework
of the ENRICH (European Network for Research on Global Change) network and in
collaboration with CEO (Centre for Earth Observation).
Socio-economic aspects will be considered partly within the research projects
(multidisciplinary approach) and partly through specific actions for concept and
methodological developments.
B. New technologies for environmental protection
Community effort will be concentrated on three priorities: instrumentation technologies,
 technologies relating to industrial processes and products and technologies relating to
 the restoration of the environment and the prevention of natural hazards.
 Within the area of instrumentation technology, the objective is to contribute to the
technological development necessary for observation, surveillance and environmental
 research. This requires in particular a contribution to Earth observation technologies
 from space. This includes sensors, observation technologies and monitoring of the
 various biosphere behaviours, environment analysis technologies and technologies
 relating to the treatment, validation and dissemination of data. This effort is also viewed
 as support for other Community policies.
Within the area of technologies relating to industrial processes and products, the
 objective is to contribute to: a) the development of techniques to reduce or prevent the
negative impacts of industrial processes and substances on the environment, b) the
 development of methods of analysis for product life-cycles and impact evaluation
 methodologies for industrial processes and products, c) the development of technologies
 to treat, recycle and eliminate waste and to treat water, d) the development of
technologies for the habitat and for transport that integrate environmental constraints and
 improve the quality of life in close coordination with the activities of other pertinent
 topics, e) the support of the development of value-added industries in the area of earth
 observation and (f) the adaptation of the technologies for exploiting marine resources in
 order to improve the environment and to fight against pollution.
 Finally, within the area of restoration technologies, the accent will be placed upon the
 restoration of environmental quality, while in the area of natural hazards the emphasis
 will be placed upon monitoring and response.
                                            -47-
 ---pagebreak--- The mechanisms for technological research will be concertation networks and integrated
projects in the areas where the organisation of the research potential on a Community
dimension is necessary. The JRC will contribute within its specific areas of competence.
These actions can be managed in collaboration with EUREKA. Industrialists and product
users will be associated. The effort will concentrate on multisectoral and diffusive
techniques. Complementary stimulation actions are envisaged to improve technology
transfer to companies.
As for the preceding area, socio-economic aspects of technological research will be
treated simultaneously within each action and with specific measures for methodological
and conceptual developments.
                       4. LIFE SCIENCES AND TECHNOLOGIES
A consideration of the specific difficulties facing European agriculture and industry, the
needs of Member States' health care services, and die technological aspects of the
implementation of Community policies suggests that there is much to be done in
mobilising the research potential in life sciences and technologies in order that die socio-
economic partners in the Community could be more readily given access to the
 anticipated technological benefits. Furthermore, Community resources are limited. It
is therefore of the utmost importance that the supply of science and technology matches
 the economic and social demand, as expressed in Community policies and actions.
The scientific supply-side is characterised today in Europe not only by the excellence
 of fundamental research, but also by the excessive fragmentation of expertise into too
 many disciplines, whose respective contributions are often unbalanced. At the same time,
 social demands for a response to the needs of protecting and managing the living world
 are unprecedented in their strength and clarity. In a society undergoing dramatic
 demographic changes, increasing therapeutic, and thus economic, demands will be made
 which will impinge on disease research in a wider geographical and cultural context. The
 liberalisation of trade and the global scale of problems affecting die biosphere pose anew
 the issue of competitiveness for the many industrial sectors which have traditionally
 exploited biological resources.
 The novelty at this stage lies in the abundance of new scientific challenges which can
 be met, in particular by the advanced methods of biotechnology, integrated as
 appropriate with other industrial technologies. Now that life sciences and technologies
 have clearly demonstrated their societal role, a more precise vision must be developed
 of where and how mankind should arrange its way of life for the greatest social and
 economic common good. The obligation of using life sciences and technologies in the
 most harmonious way possible in relation to current practice, with a view to meeting the
 basic needs of society, is the overall purpose of this research theme.
 Member States' capabilities are now much more developed than they were only a decade
 ago, but remain very heterogeneous. In some key areas these capabilities are so
 fragmented that a critical size has not been reached and the value added-deriving from
 the integration of complementary approaches cannot be realised, while other efforts are
 wasted through redundancy. The operation of scientific networks has revealed the
 validity of this approach without, however, being sufficiently developed. The operational
                                             -48-
 ---pagebreak--- choices indicated under this take into account, above all, the opportunities for facilitating
the interplay of complementary national activities. These considerations will be
addressed in the following three fields:
         biotechnology
         biomedicine and health
         agriculture and fisheries (including agro-industry, food technology, forestry, and
         rural development).
The most important activities will have to be upgraded through a range of measures
aiming to promote a more positive environment for the timely application of life
sciences and technology. Use will be made of demonstration activities to raise the profile
and increase the attraction of alternative technological approaches. The selection of
demonstration projects must be particularly rigorous in order to ensure the expected
impact. Where appropriate, links will be established with the EUREKA programme.
 Special attention will be given to studies and debates which bring technological
 innovation within the scope of ethical and regulatory issues. Other measures will be
implemented: training bursaries, special arrangements for the participation of SMEs (on
the model of the CRAFT programme).
A.        Biotechnology
 A specific European weakness when faced with biotechnology breakthroughs is the
 dispersion of responsibilities and the lack of social consensus on what scientific tasks
 to undertake. This extreme reluctance to identify and mobilise relevant activities must
 be overcome by a more systematic consideration of the broad range of available
 scientific opportunities and by a concentration on those which relate to major issues of
 industry and society.
 The Community programme should promote global rather than reductionist approaches
 and the integration of disciplines rather than excessive specialisation, and should pay
 careful attention to users' needs as expressed through various interest groups including
 consumer groups, regulatory bodies, industrial or professional associations, EUREKA
 projects and national programmes. It is clear that in this area the need is to restrict die
 number of topics selected to those where all the above conditions for a cooperative
 process at Community level are met.
 In an attempt to focus biotechnology on where it differs fundamentally from alternative
technologies, primacy must go to reaching an understanding of how the living cell itself
 manages to be so productive and how industry can learn from cellular processes.
 Significant progress will be expected from four priority integrated actions where national
 and Community efforts could converge. These will concentrate on:
 - the understanding of the "cell factory" concept and its extension to the design of new
    industrial bioprocesses, which will require the integration of biological, technological
    and computerised approaches; this will also include the promotion of the
    multidisciplinary vision of biochemical engineering;
                                            -49-
 ---pagebreak--- - the development of methods and infrastructures contributing to the analysis of
    genomes;
- the development of plant molecular and cellular biology, and plant physiopathology,
    notably with agricultural and agro-industrial applications in mind;
- the promotion of neurosciences by the combined support of several disciplines such
    as pharmacology, cellular biology, molecular biology and medical chemistry in order
    to understand the inter- and intra-cellular events by which nerve cells manage
    information.
Three other objectives will be addressed via R&D projects and concertation networks
supporting national efforts. They will consist of:
- the development of scientific and technological research in animal physiology,
    immunology and structural biology;
- the maintenance of a coherent framework for prenormative research, as well as
    biodiversity and bioethical studies;
 - the provision of informatics resources, telematics and genetic collections to serve the
    research described above.
 These activities together will produce knowledge indispensable for industrial progress
 in the targeted fields supported by the Community participation, and they will achieve
 this goal by applying the multidisciplinary approach which characterises biotechnology.
 Their success will depend on how much attention can be given to the continuity of
 efforts on the generic activities developed in this area in relation to the other areas of
 biomedical or agro-industrial applications.
 B.       Biomedical and health research
 Health, so highly valued by every European citizen, is one of the most important sectors
 of the economy, absorbing 6 to 8 % of GNP and creating work for more than 6 million
 people; the challenge for research is to control die greatest scourges. AIDS represents
 one of the most worrying epidemics which need a strengthening of the coordination of
 research activities. Cancer, cardio-vascular disease, mental and neurological disorders,
 the problems of the aged and handicapped also require serious attention. Rising costs
 have become a concern for all countries, while citizens in every Member State are
 demanding high-quality health care. New health technologies and health care systems
 are expected to face these common problems. The Community's available resources will
 be concentrated on the following fields of research:
 - development of the scientific and technical basis required for the evaluation of new
     drugs, notably for the treatment of neurological, mental, immunological and viral
     illnesses (these actions must take account of the needs of the European Medicines
     Agency). New in vitro tests and animal models (primates and transgenic animals),
     their validation and multi-centre clinical tests and drug safety checks will be included.
     Research will be conducted through collaboration between industry, research centres,
     universities and the authorities responsible for verifying the efficacy, safety and
     quality of new drugs.
                                               50-
 ---pagebreak--- - development of biomedical technology and engineering, particularly through research
    concerning medical devices for minimally invasive surgery, imaging techniques,
    biosensors, biomaterials and modelling of human functions.
- participation in the "Decade of the Brain", notably by the development and use of
    methodology, of instrumentation and of the most advanced and costly infrastructures
    considered necessary for the study of the nervous system. This approach will integrate
    the contribution of several disciplines.
Three other objectives will be followed by coordinated actions and the support of
national efforts:
- development of the collection and analysis of statistical and epidemiological data
    concerning illnesses with major socio-economic impact (cancer, AIDS, occupational
    illnesses, etc.) and the "orphan" illnesses; sharing and harmonisation of the databanks
    on genetic diseases comprising Community participation in the management of the
    international database of the human genome and in relation to the potential for
    somatic gene therapy.
- research on health systems and technologies, and on information and education on
    health matters. This will concentrate on primary care, the evaluation of health needs,
    performance measurements of health policy initiatives and the evaluation of health
    technologies. The impact of the Single Market on the supply of health care across
    internal frontiers will be examined, as well as the following: regulation and de-
    regulation, the balance between health systems financed by the private and public
    sectors; tax harmonisation measures; the need to define a European approach for the
    introduction of new technologies in health systems.
 - research on medical ethics.
 C.       Application of life sciences and technologies in agriculture and fisheries
          (including agro-industry, food technologies, forestry and rural development).
 In the field of agriculture, forestry, rural development, agro-industry and fisheries, the
objectives and challenges are to provide an RTD base for competitive, efficient and
 sustainable primary production (agriculture, horticulture, forestry, and fisheries) and
agro- industries (food, bioenergy and non-food); support the evolving Community
policies (agriculture and fisheries especially); and respond to the needs of society for a
wide range of healthy and nutritious foods and environmentally friendly non-food
 products. In order to meet the different objectives of the programme, four priorities have
 been identified and will be addressed by RTD projects and thematic and concertation
 networks in support of national efforts. They will consist of:
 - integrated production and processing chains that gather all the necessary skills and
    technologies relating to the use of biological raw materials (including those of aquatic
    origin) in a specific sector and with the focus on production lines with the largest
     market potential and the greatest economic feasibility.
 - scaling-up and downstream processing by pooling European resources; critical mass
     will be created to solve major problems and technological bottlenecks in this field
    using modelling, simulations and scale-up trials for testing the new approaches.
                                             - 51 -
 ---pagebreak--- - generic food science and advanced technologies to better meet the consumer's needs
    for a safe and health-promoting diet; research will concentrate on generic food
    processing technologies which take account of the molecular basis of the conversion
    of biological raw materials into finished food stuffs and integrate new advanced
    technologies for the food sector.
- agriculture, forestry, rural development and fisheries in support of the reform of
    common policies and to identify solutions appropriate to the transformations in rural
    areas. The need is to develop new systems and chains of production which are
    economically viable in this area, which are protective of the environment and which
    maintain an adequate level of employment. An improvement in the economic situation
    of agriculture and of fisheries will also be sought by means of quality products,
    diversification of products (food and non-food) and activities, and by cost-reductions,
    which pre-suppose the introduction of new technologies and the better utilisation of
    more effective inputs. The demands of consumers and the completion of the Single
    Market require an effort to be made with regard to animal and plant health as well
    as to animal welfare. New land uses will be developed, for example for set-aside
    land. As regards forestry, the need is to develop a multi-functioned forestry
     management (production, leisure, protection). Finally, increased attention wil be
    devoted to rural development, in line with the strengthened Community policy in this
     area. The same will apply to coastal development.
 In line with Community policies and in order to provide means for primary production
 (including of aquatic origin) which respond to die demands of the consumer and industry
for a supply of raw material in adequate quantity and quality, and at the same time
 serving die interests of producers and benefiting the rural economy, three priority
 coordination/network actions will be carried out in support of the substantial, existing
 efforts of Member States as regards:
 - networks for enhanced primary production in agriculture, forestry, fisheries and fish-
     farming with the main emphasis on sustainability, quality, security of supply and
     interactions with the environment;
 - networks for rural and coastal development with particular attention on training and
     alternative economic activities;
 - food production and processing integrating socio-economic, health and food safety
     aspects.
 Activities will be carried out in this area by the JRC which will lend its support through:
 - the use of a laboratory for analysis of wine and other food drinks, where the expertise
     will be progressively enlarged to all pharmaceutical and food products;
 - by establishing a technical support project for the management and control of the
     application of the CAP, using data transmission by satellite;
 - by continuing the télédétection project for agricultural statistics.
 The aim in this area is to extend the application of the basic technologies developed in
 biotechnology, biomedicine and télédétection.
                                               52
 ---pagebreak---                                         5. ENERGY
Energy policy, which seeks to ensure security of supply (notably through the promotion
of indigenous resources and technologies and the diversification of usable sources) now
faces a new challenge: that of compatibility between energy and the environment.
Present and future uses of different energy sources, on a European and global scale,
carry local, regional and global risks to man and the environment: increased pollution;
greenhouse gases; emission of ionizing radiations, etc. The aim of Community activities
is to develop and demonstrate effective, cleaner and more reliable technologies
guaranteeing compatibility between energy usage, the equilibrium of the biosphere and
economic development under its various headings (competitivity, economic and social
cohesion).
During the period covered by the second and third framework programmes, Community
activities of R&D and of demonstration/dissemination relating to energy have established
networks of cooperation for research and networks for promotion and diffusion for those
energy technologies which have achieved maturity (notably the OPET network). These
activities will be continued, while seeking an appropriate balance between the three main
lines under consideration (non-nuclear energies; nuclear fission; fusion) and
strengthening the integration between R&D and demonstration (in succession to the
THERMIE programme), thus contributing to the achievement of the Community's major
goals in the energy field, sustainable development and support of competitivity. This
work of integration will contribute to better evaluation of the relative efficiency of R&D
and demonstration for each strand of technology and to better achievement of the
synergies and adjustments required between upstream and downstream activities.
Complementarity will be sought between shared-cost actions in these areas and JRC
activities.
The R&D actions will be centred on critical scientific and technical aspects so as to
achieve significant techo-economic breakthroughs in the medium- to long-term. The
European and global dimension of this new energy question and the solutions which
could be applied will also be taken into account. Modelling studies aimed at better
 understanding of the energy-environment-economy interfaces will contribute to the
analysis and to the definition of the Community energy strategy and will permit better
 definition of the work to be undertaken. Research dealing with technologies which are
 reaching maturity (management of low-level radioactive wastes and techniques of
nuclear decommissioning, sectoral activities concerned with energy saving in industry)
 will be reduced or abandoned, as will areas (like conventional geothermal energy) where
 intervention at Community level no longer appears either necessary or adequate
 (imbalance of available funds).
 As far as demonstration and dissemination are concerned, special effort will be devoted
 to the areas of the rational use of energy, renewable energies and clean combustion of
 coal. This Community action will be necessary to ensure a stable supply at an
 acceptable price to the totality of European enterprises. It will also improve exploitation
 of resources in the different regions of the Community and will contribute significantly
 to cooperation, in terms of technology transfer, with developing countries.
                                             53 -
 ---pagebreak--- A.   Technologies for cleaner and more efficient production and use of energy
The Community's work on research (including pre-normative aspects), technological
development, demonstration and dissemination/valorization will be focused on three
principal axes. It will deal with the rational use of energy, the introduction of renewable
energies on a large scale and with more effective production from the burning of fossil
fuels (coal and hydrocarbons).
Rational use of energy will focus principally on the transport sector, with integrated
projects relevant to urban transport and reasearch and development on technologies such
as batteries, fuel cells and advanced fuels. For the residential and tertiary sectors, the
work should especially concentrate on bringing more effective technologies to the
market, on the restructuring of energy-intensive systems, on adjusting the behaviour of
consumers to a more restrained use of energy and on prenormative research on the use
of energy in buildings. In the industrial sector, the development and demonstration
actions will focus on technologies which can reduce energy consumption substantially.
Targeted projects aimed at stimulating a more efficient use of energy (the intelligent
house) and integrated projects bearing on the pattern of consumption (combined heat and
power, and planning of industrial zones) should reinforce this activity.
The objective of die second axis is to contribute to the development and demonstration
of renewable energies, which are clean indigenous resources, in order to ensure better
 integration of the energy system with die environment and much greater security of
 supply. The planned activities are designed to establish a European industrial and
 technological framework favourable to a significant uptake of renewable energies. The
 programme should also encourage networks of excellence: specialized research centres,
 electrical power generation companies, towns, regions and islands, architects and
 building engineers.
 The programme is characterized by a balance between continuity and novelty. In order
 to follow-up and accelerate the work already in hand, research, development and
 demonstration on the most promising technologies will be emphasized: solar
 photovoltaic, technologies for solar heating, cooling and natural-lighting for buildings,
 wind energy, biomass. Other exploratory options will also be investigated: marine
 energy, solar electricity using thermodynamic cycles, geothermal (hot dry rock), "solar"
 hydrogen.
 The JRC will take part in these activities mainly through prenormative research in the
 field of photovoltaic energy and the conservation of energy in buildings. New initiatives
 will be aimed at easing the integration of renewable energies from the technological,
 economic and social points of view. Large-scale integrated projects such as the
 development of electricity production from renewable sources, especially biomass, or
 better integration of renewable energies into future electrical systems are priority targets.
 Large scale integration of renewable energies into the rural setting, in regions, towns and
 islands, is also very important; there is a huge potential for the use of renewables in
 rural development in the Third World and this has major implications. The efficient
 execution of these integrated projects will require that close links be established with
 other Community policies (Common Agricultural Policy, Structural Funds).
                                              54-
 ---pagebreak--- The third axis concerns the production and transformation of energy from fossil fuels.
Combustion, which is an essential generic research topic common to the field of rational
use of energy and to that of the conversion of fossil fuels, will be given priority. In the
area of conversion, we will be looking for cleaner and more cost-effective disposal of
the proceeds of conversion of fossil fuels. The work will concentrate on key
technologies such as integrated combined cycles ("hot gas cleaning" and pressurized
combustion) or fuel cells for the decentralized production of electricity. Substitution of
coal by biomass or combustible waste will also be studied.
Complementary work should ensure better energy security in the much longer term:
actions relating to better management of indigenous resources at the levels of both
extraction and conversion will be started. For hydrocarbons, the work will focus on
development and demonstration, principally for the oil service industries, of more
efficient techniques of reservoir exploration (geophysics), exploitation and transport. In
this context, a basic programme of research in the earth sciences could complement this
action.
[B. Nuclear Safety and Safeguards
C Controlled Thermonuclear Fusion
NB: Activities B and C between square brackets are included in this annex to give an
overall picture of energy research activities to be undertaken. However, they are subject
 to a Council decision, the same day, concerning the framework programme for research
and training for the European Atomic Energy Community]
               6. RESEARCH FOR A EUROPEAN TRANSPORT POLICY
 Mobility of people and goods across Europe, its countries and regions as well as within
 urban areas has become a phenomenon of our modern society which it is increasingly
 difficult to master. In this context, the development of transeuropean networks for
 transport which facilitate the interconnection with and the interoperability of national
 networks and the access to these networks will be key questions in achieving an open
 and competitive market.
 In this respect, the Communication from the Commission to the Council over the future
 developments for the Common Transport Policy ("Livre Blanc" COM(92)494) specifies
 that the essential aim of reasearch for a European Transport Policy is to contribute to
 the development, integration and management of a transport system which is more
 efficient, safer and compatible with the environment and with quality of life, promoting
 sustained mobility of people and goods.
 In order for this goal to be achieved, a European approach will be developed to exploit
 the synergy between the different Community and national activities, as well as those
 of other international organisations. Research will be conducted within a coherent and
 coordinated framework, taking into account activities within the themes on industrial
 technologies, telematics, environment and energy wherever they relate to the objectives
 of the Common Transport Policy. Work focusing on generic technologies is, in effect,
 to be conducted under each of the relevant themes within the first activity.
                                             55
 ---pagebreak--- The activities under this theme will focus, on the conditions for interoperability and the
interconnection of networks, notably with regard to intermodality and accessibility. This
will facilitate the design and management of infrastructures so that they are more
compatible with the environment and safer for their users.
In this sense, the research activities will principally address the evaluation, integration
and global validation of technological innovations developed in the other themes.
The objective is to contribute towards the optimisation of the Transeuropean Transport
Networks, to the improved performance of transport modes and of individual operators,
to the capacity of each to cooperate with the others, to accessibility for users as well as
to support for the development of a multimodal transport system at urban, rural, regional
and transeuropean levels.
With this aim in view, the RTD activities will follow a systems and integrating
approach, taking into account the strategic orientations of the European Transport Policy
 and the results of research conducted within other themes of the first activity, so as to
develop specific solutions applicable to the transport sector.
This work could lead, if necessary, to large-scale tests and to demonstration projects.
The research will place emphasis on the optimisation of transport systems, the
 improvement of safety, the reduction of harmful emissions, and on social acceptability.
In particular:
 - For combined transport and rail transport, it will, notably, set out to ensure the
    interoperability of rail networks, in particular those which operate at high speed,
    eliminating progressively the technical, regulatory and operational barriers. The
    research should lead to the specification of functional requirements for multimodal
    integrated routes, as well as pilot concepts to integrate and evaluate new technologies
    for interchanges, their management and control.
 - In the case of aeronautics a similar systems approach is necessary, on one hand, to
    define those objectives of European interest related to reducing congestion of airspace
    and of airports as well as to improving human safety and the impact on the
    environment, and on the other hand to allow the integration and evaluation of the
    results of research on generic technologies dealing, in particular with air traffic
    management, aircraft safety, the reduction of engine emissions and noise, drag
    reduction and the critical technologies for very large aircraft.
 - For urban transport, it will permit, through the integration of results achieved and
    tested in other research programmes on generic technologies, the development of
    specific solutions within a systems approach and appropriate modelling with the aim
    of reducing congestion, energy consumption and improving the balance between
    different modes, particularly between collective and personal transport.
                                              56
 ---pagebreak--- - In the maritime area, integrated research and demonstration projects should permit
    optimisation of the performance of short sea shipping systems, new sea/land/river
    interfaces, which include new port facilities making use of manpower in a way which
    respects the needs of safety and the protection of the environment with an efficient
    traffic management system.
- For road transport, the development of the appropriate methodologies to define the
    instruments necessary for the realisation of a common policy for road safety and the
    optimisation of interurban travel modes, while integrating and evaluating
    technological solutions concerning, in particular, traffic management and the design
    of infrastructure.
With all these activities, particular attention will be given to ergonomics and human
factors in an operational framework, as well as the protection of the environment.
These activities will be accompanied, at the strategic level, by research focused on
 modelling and transport scenarios. Research in this area will be undertaken with the
 global objective of reaching a better understanding of the generation of transport
 demand.
 It consists of the development of harmonised methods at the Community level for
 analysing the development of transport and movements, the flows and their interactions.
 It also includes determination of the impact on demand of industrial location and
 distribution networks, the identification of changes in industrial structures, of logistic
 contraints and of the choice of modes of transport within the enlarged European
 economic area.
 Moreover, in line with the European Transport Policy, technological innovations will be
 accompanied by research concerning their integration into new operational and
 institutional frameworks (including those associated with technical standards and the
 definition of transeuropean transport networks).
 Finally, a new harmonised methodology for the evaluation of the global impact of
 European transport systems is necessary for this purpose and particularly to optimise
 transeuropean networks.
 The JRC will participate in these activities, essentially through the analysis of the safety
 of transport systems as well as their impact on society and on the environment in
 general. It will also undertake work of scientific and technical support related to projects
 financed by the Commission.
                     7. TARGETED SOCIO-ECONOMIC RESEARCH
 The close interrelationship between technology, growth and employment is the essential
 feature of the context in which the objective is to contribute to the identification of
 concrete RTD activités which can be carried out throughout the Community with the
 aim of encouraging the competitiveness of European industry and the emergence of a
 new pedagogic and social model which will capitalise on the diversity of European
  Society. This new research topic will allow a response to be made to the growing need
 felt by decision-makers, and in particular those in charge of research, technological
                                            - 57-
 ---pagebreak--- development and demonstration policies in Member States and at the Community level,
to be able to benefit from a greater synergy between the natural sciences and
engineering, and the economic and social sciences. The need, first and foremost, is to
renew and enlarge for them the knowledge base for decision-making through activities
to evaluate scientific and technological policy options, taking account of developments
in technology and know-how.
As well as these horizontal activities of targeted research, socio-economic research will
be carried out within each topic of RTD in the first activity (evaluation of socio-
economic impact and risks), in the second activity (socio-economic aspects of
international scientific and technical cooperation), in the third activity (improvement of
the efficiency of the uptake of results of RTD) and in the fourth activity (training and
mobility of researchers in the social and economic sciences). Close contacts will be
 continued with the COST projects in the field of social sciences and with European
organisations working in this field.
 A. Evaluation of scientific and technological policy options
 The evaluation of scientific and technological policy options for Europe will provide the
 common knowledge base for policy makers in the fields of science and technology
 policy at both the national and Community levels and also for those people responsible
 for other fields of Community activity within which science and technology play a role.
 These activities will follow the direction taken by the MONITOR programme (FAST,
 SAST, SPEAR), by the work of the Institute for Prospective Technological Studies of
 the JRC, by the activities in the framework of the VALUE, SPRINT or EUROSTAT
 programmes and on the base of the experience acquired through the specific programmes
 (evaluation of the socio-economic impact of research) in fulfilment of a decision taken
 at the time of the approval of the third framework programme.
 The object is to put at the disposal of actors, policy makers and users of RTD a
 European instrument - which takes into account global developments - for the evaluation
 of the scientific and technological policy options the better to encourage growth and
 employment and, with this as objective, to integrate into a diversified ensemble the
 activities undertaken at the regional, national and European levels in the fields of
 prospective studies of relationships between science, technology and society, of
 economic and technological monitoring, of strategic analysis, principally of generic
 technologies, and of the evaluation of RTD programmes and policies. In particular, the
 aim will be to reinforce prospective studies on technology and industry and to improve
 coordination within the Community in order to provide a consistent and global
 framework which will enable European actors to take the steps and initiatives relevant
 to their responsibilities and to adapt their own strategies better to technological and
 industrial changes. This to be done by putting into place a limited number of dedicated
 networks, concertation activities and studies, activities related to the preparation and
 definition of new programmes, support activities (methodological research, open
 databases, collections of indicators, directories of "technology assessment" in Europe,
 etc.) and of dissemination (workshops, seminars, information weeks). This will offer to
 actors involved in the evaluation of scientific and technology policy a pluralistic
 framework for dialogue and discussion of approaches which will lead to the
                                            - 58 -
 ---pagebreak--- identification of scientific and technological policy options for Europe and to
recommendations which can be used by actors, policy makers and users in the field of
RTD. This is why the activities foreseen are to be undertaken in close collaboration with
governmental organisations and parliamentary offices for the evaluation of scientific and
technological policy at regional, national and European level (in particular with STOA
and the European Parliament Technology Assessment Network), with public sector
organisations and those of the private sector which specialise in these fields as well as
with die representatives for these questions of the various socio-economic actors in the
field. A limited group of activities should be foreseen to be able to help with the
launching of preparatory actions and definition phases for new Community RTD
activities.
The JRC will support these activities through the Institute for Prospective Technological
Studies which will establish a technology observatory in order to collect and analyse
 information on scientific advances and technological innovations and to undertake
forward studies and technological evaluations essentially at the request of Community
 institutions.
 B. Research on education and training
 The rate of change of scientific and technological knowledge and associated skills on
 the one hand, and of the education and training system, including the training of
 instructors, on the other are becoming more and more out of phase and it is becoming
 extremely difficult to ensure that timely, appropriate and well balanced exchanges take
 place between the two. Considerable efforts have been made at the national level to try
 to overcome these difficulties. The recent developments at the European level of
 networks in research and training and of various industrial and commercial agreements
 between businesses call for a common understanding and mastery by Europeans of these
 problems, which are increasingly global in character.
 The object of the Community research activities in this field is twofold: first, it is one
 of identifying the new generic processes which link research, education and training and
 the interfaces that it is necessary to build in order to master them; secondly, it is
  necessary to evaluate the implications of die process of Europeanisation and
 globalisation in order to identify the input of the Community to the improvement of
  education and training systems in Europe.
 The activities foreseen will respect the principal of subsidiarity by centring on
  exchanges of experience, the comparison and inter-operability of practices, the diversity
  of which enriches the Community. Priority will be given to four broad research
  objectives. First, research into die development of the European open labour market for
  all professional categories and the education and training needs that such developments
  imply. Secondly, research into methods of education and training, at all levels, including
  into the tools used, psycho-pedagogic and organisational aspects. Thirdly, comparative
  analysis of the special training needs linked to the development of new methods of
  quality and process control. These new methods must provide an appropriate response
  with regard to systems of qualifications for different types of work which will permit
  mutual recognition of problems and practices at the European level. Fourthly,
  comparative research on systems of education and training will be supported, including
  into regional differences and links with economic development in the regions.
                                              59 -
 ---pagebreak--- C. Research into the problems of social integration
The growth in poverty and the appearance of new forms of social exclusion constitute
major problems which the Member States must face. The Community has contributed
to the fight against poverty and social exclusion through Structural Funds initiatives
thanks to certain aspects of the EUROFORM, NOW, HORIZON and LEADER
intiatives, as well as the HELIOS and TIDE programmes, but above all through its three
successive programmes designed to combat poverty.
Relative to the research effort of the Member States invested in these fields, Community
research has a threefold objective: first, to contribute through a comparative analysis at
the European level to a more systematic understanding of the processes of social
exclusion and integration, their causes, their different forms and ways in which the
problems manifest themselves and their implications for Community policies, in
particular the structural policies; secondly, to allow all Member States through
 dissemination of appropriate information to benefit from successful experiences of social
 integration, through the circulation of information, the copying and application of the
 most innovative projects, starting with a thorough analysis of their results and of the
 lessons drawn from them by each Member State; thirdly,to evaluate in what way the
 actual process of European integration (in terms of markets, currency, etc.) gives rise
 to particular causes of social exclusion and integration as compared with those specific
 to the situation at national or local level. Such research work will help with better
 targeting of activities at the Community level to respond to the problems of social
 integration.
 The place where currently new types of social exclusion and integration are seen most
 frequently is the town (conurbations, city-regions, medium sized towns, etc.), and it is
 at this level, as well as that of the networks which link towns together and which are
 becoming more and more dense, most noticeably in Europe, (information, transport and
 financial networks...) where best advantage can be had from these significant changes.
 On the basis of the knowledge gained as a result of national research programmes as
 well as on the experience acquired through networks of European towns and regions and
 on their increasing willingness to implement common projects on the ground, the
 Community's contribution will be centred around two principal objectives.
 The first covers in particular multi-disciplinary research into concrete means of ensuring
 that those people who are excluded gain easier access to information, communications,
 public services, education and training, to the labour market which interest them both
  as citizens and socio-economic actors equally at the national and the European level. The
 second broad objective is to evaluate the contribution that technological developments
  make to the resolution of these problems in the larger context of experiments tried out
  across the Community. In effect it is necessary to put the emphasis on the
  complementarity of the different generic technologies developed under other topics of
  the first activity in relation to the socio-economic research work dealing with strategic,
  organisational and institutional aspects in order to contribute to the solution of the acute
  problems of urban life and to promote innovative approaches to this subject.
                                                60 -
 ---pagebreak---                                    SECOND ACTIVITY
  Promotion of cooperation in the field of Community Research, Technological
  Development and Demonstration with Third Countries and International
  Organizations.
  This second activity covers various related forms of Community intervention.
  Scientific and technical cooperation will be developed and intensified at the same
  time with industrialised countries, central and Eastern European countries, the new
  independent states of the former Soviet Union and developing countries. Such
  cooperation can be on a bilateral or multilateral basis; it can take place directly or
  through international organisations. The objectives of such cooperation are both to
  reinforce Community capacities in the fields of science and technology and to
  support the implementation of Community policies vis-à-vis third countries and it
  will be based on the principle of mutual benefit.
In order to improve the competitiveness and the scientific and technological bases of the
Community, die challenge is to increase the added value of RTD activities of the
Community and the Member States, as well as of the other Community policies through
selective cooperation with third parties, in coordination with the Member States. An
important aspect of this challenge is the scientific contribution to the solution of regional
or global problems or to advances in the situation of developing countries and of the
countries of central and Eastern Europe. It is also necessary to be sufficiently flexible
to react to possible developments in third countries. In cases where intellectual property
rights are involved, the rules on the subject which the Council and the Commission
adopted jointly in June 1992 which give general guidelines will be respected.
The main objectives are the strengthening of the scientific and technological capabilities
of Europe, supporting the implementation of Community policies with respect to third
countries and contributing to the solution of regional and global problems, through
increasing coordination with the Member States.
A. Scientific and technological co-operation in Europe
 1. Collaboration with other scientific and technological cooperation frameworks in
    Europe
 The aim of this activity is to reinforce the coherence of research in Europe, in order to
optimize it by taking into account national efforts, both those of Member States and
 those of EFTA countries, those of COST, EUREKA, and European organisations such
 as CERN, ESA, EMBL, ESF, etc. Besides this, the European position vis-à-vis
 international organisations at the world level (UN, OECD, etc.) should continue to be
 promoted.
                                              61
 ---pagebreak--- The resulting objectives are to establish closer relations with these frameworks and
organisations, not only at the political level, but also at the practical project level.
This will foster the creation of networks of scientific and technical excellence,
extending beyond the frontiers of the Community. The transfer of RTD results
towards the market place will be improved, notably via EUREKA. Such relations will
facilitate the setting of standards and legislation responding to requirements revealed
during research actions.
The COST concerted action projects are complementary to those of the Community
programmes, and retain their specific character with respect to the other European
research structures.
With a view to strengthening the links between Community and EUREKA activities,
the essential elements are better circulation of information concerning projects and
support measures, taking into consideration in EUREKA projects the results of
Community projects, taking into account in a more systematic way of the
precompetitive phases of EUREKA projects within the framework programme and
joint examination of large scale strategic projects proposed by industrialists. As
 regards the Community, this entails the establishment, after an extensive pilot phase,
of new mechanisms for taking into account projects from the EUREKA framework,
 while respecting the specific character of the two frameworks, in particular, that of
the Commission's procedures.
 The financial resources to be allocated to this activity could be included on an
 indicative basis in the work programmes for the Community programmes. The
 Community's participation should respect the aims of the specific programmes, and
 only concern the precompetitive and generic parts of projects, which would be
 submitted for the opinion of the corresponding Committees.
 As far as EFTA countries are concerned, account will be taken of the fact that several
 of them take part fully in the framework programme (European Economic Area) and
 that others are linked by bilateral cooperation agreements.
 2.    Cooperation with Central and Eastern Europe and the new independent States of
       the former Soviet Union
 The objectives of this activity are to contribute, through cooperation in areas of
 mutual interest, to the safeguarding of the scientific and technological potential of
 these countries and to their restructuring. This will contribute to the rehabilitation of
 their production systems and to an improvement in the quality of life, which are key
 factors for stabilisation.
  Synergy with other Community activities, notably PHARE and TACIS, and close
 liaison with the actions of the Member States, will be sought. In the energy field, use
  will be made of the 'energy centres'established by the Community in these countries
  under the THERMIE programme.
                                           62
 ---pagebreak--- The participation of the countries concerned in the specific programmes within the
first activity is foreseen. Community funding will be available to facilitate their
participation.
The action will also include specific research themes appropriate to the current critical
needs of these countries, notably in terms of the environment, energy, safety and
technologies having an integrating effect on the economy.
B.    Co-operation with industrialised non-European third countries
The objective of this co-operation is to promote the interests of the Community and
to optimise the efforts made in the area of RTD, by facilitating access to sources of
science and technology of the third countries in question : U.S.A., Japan, Canada,
Australia and others.
It is worth emphasising that these countries are at the same time allies or partners for
the Community as well as competitors, notably on the commercial and industrial
level. Hence the importance of respecting the principles of selectivity in areas of co-
operation, of concentration on a few carefully selected sectors, of flexibility in the
 modalities of co-operation, of balanced mutual benefit, of non-transfer of financial
 means.
 The modalities of co-operation with these countries include : concertation for certain
sectors such as megaprojects, execution of joint research and study projects, as well
 as the exchange of information and experts.
 Co-operation with these countries supports the external political activities of the EC
 and must be seen in this policy context. Such co-operation also allows Member States
 to have access to sources of science and technology of the third countries in question
 in an equal manner. Coordination with Member States is necessary to avoid
 duplication of work and dispersion of financial resources and to give a better
 definition to the scope of Community action based on the principle of subsidiarity.
 C. Scientific and technological cooperation with developing countries (DCs)
 Each Member State conducts programmes of scientific cooperation with DCs, the
 importance of which is often a function of cultural traditions or long-standing
 relations. This Community action will be primarily a means of integrating different
 research initiatives in a global and coordinated way and in synergy with Community
 development actions.
 It will permit a scientific effort relevant for developing country problems to be
 maintained in Europe and even to be enhanced in certain Member States with a view
 to achieving a better balance. At the same time it will facilitate the strengthening of
 research capacities in DCs through carrying out joint research work under shared cost
 contracts and the reinforcement of links through networks.
                                         -63 -
 ---pagebreak---    The priority topics to be covered, which are common to all DCs and of prime
   importance for their economic and social development, are renewable natural
   resources and their utilisation for improving sustainable agricultural production and
   environmental protection, and health research for development. The utilisation of
   new information and communications technologies for the strengthening of economic
   structures is also envisaged. These generic topics allow a degree of flexibility in the
   definition of more precise priorities in the work programmes, according to the region
   and to the needs expressed.
   In addition, DC participation in certain specific programmes of the First Activity, on
   subjects of general interest or of clearly identified mutual interest, is envisaged,
   particularly for those countries with a scientific potential which is already developed.
   This could be achieved by the allocation of a Community financial contribution for
   concerted actions or shared cost contracts.
                                    THIRD ACTIVITY
  Dissemination and optimisation of the results of activities in Community research,
  technological development and demonstration.
  This third activity comprises measures which are not linked to any particular aspect
  of research and technological development; rather, it concerns Community RTD
  activities as a whole. The objective is to ensure that these activities have positive
  repercussions on the competitiveness of industry and the achievement of the other
  objectives of the Treaty.
The competitiveness of European industry depends to a large degree on its ability to
transform the outputs of its research into viable commercial products and processes.
European industry is generally less efficient than its competitors at this transformation
process, and, in the context of increasing global competition, the ability to secure a
return on investment in R&D is becoming a crucial factor in many industrial sectors.
To remedy this situation, and taking into account developments in the United States and
Japan, the Community must make a substantial contribution to improving the
dissemination and utilisation of research results. However, it should also create better
conditions for the transfer and absorption of new technologies, whatever their origin, by
industry and especially SMEs, whilst taking into account the needs of society: in fact,
the social acceptance of science and technology seems to meet increasing resistance.
The Member States of the Community have implemented at national and regional level
a series of policies aimed at research exploitation and the diffusion of new technologies.
But, on the one hand, these initiatives vary largely from one region to another and, on
the other hand, the Community dimension is not sufficiently taken into account, although
it could yield a significant amount of value added in the context of the Single Market.
                                            -64-
 ---pagebreak--- The centralised action for the dissemination and utilisation of research results under the
third framework programme, and the SPRINT and THERMIE (in the field of energy)
programmes situated outside the framework programme, endeavour in cooperation with
other Community actions in this field and with relatively modest resources to develop
a coherent Community system for research utilisation and technology diffusion, building
upon appropriate national and regional structures, thus observing the principle of
subsidiarity. This effort needs to be continued and extended in the course of the fourth
framework programme by implementing integrated larger scale Community actions.
Activities of dissemination and optimisation of results, moreover, have to be carried out
in coordination with those implemented and financed by the specific programmes. They
reflect the non-linear, complex and iterative nature of the innovation process and the
specific character of technology transfer and utilisation, which call for special skills and
a multi-sectoral approach.
The objectives of the Third Activity are the promotion of the inter-sectoral and
transnational dissemination and exploitation of the results of RTD and demonstration
activities, the support of technology transfer and absorption by firms and the
improvement of the financial environment for firms in order to encourage the diffusion
 and utilisation of new technologies. Priority attention will be given to SMEs. The
synergies with die EUREKA programme will be strengthened as will the links between
 dissemination and optimisation activities with the cohesion and rural development policy
of the Community.
A. Dissemination and Exploitation of Results
 The objective of this area is, building upon appropriate structures at die national and
 regional level, to promote the inter-sectoral and transnational dissemination and
 exploitation of the results of RTD and demonstration activities in order to strengthen
 their social and economic impact.
 It is composed of the following activities:
 - the establishment of a European infrastructure for RTD dissemination and
    optimisation, with the objective of improving knowledge of the Community's RTD
     and demonstrations activities, facilitating the dissemination of information and the
     exploitation of RTD outputs in Europe and promoting scientific and technological
     cooperation. This infrastructure is based, on the one hand, on the strengthening of the
     activities of the relay centres network, and, on the other hand, on the reinforcement
     of the European public information and dissemination service (mainly CORDIS).
 - specialist services and direct assistance, which complement the established
     infrastructure and are directed at supporting SMEs, with the aim of promoting
     transnational and inter-sectoral utilisation of RTD results. They include assistance in
     the field of intellectual property rights, market research studies, training schemes, the
     stimulation of know-how transfer, the creation of technology clubs and support for
     projects on trans-sectoral applications.
                                              -65 -
 ---pagebreak--- - strategic and interdisciplinary reflections on improving the effectiveness of the
    transfer of RTD results (including acceptability and the evaluation of the social
    impact, management and economics of research, pilot projects on communication
    towards society).
The network of organisations which promote energy technology (OPET) will continue
its activity in the energy field.
B. Dissemination of technologies to enterprises
The objective of this area, in accordance with the principle of subsidiarity, is to promote
the wider use of technologies, especially by SMEs, and to contribute to the
establishment of a European infrastructure for technology transfer, bringing together the
competent organisations at national and regional levels.
Emphasis will be placed on improving the quality and efficiency of innovation and
technology transfer support services, as well as on the improvement of the capacity of
 industry, especially SMEs and traditional industrial sectors, to absorb new technology.
 An integrated approach will be promoted based on the demands of firms ("bottom up")
 and covering all the aspects related to the transfer and utilisation of technologies. The
proposed actions will not include RTD activities in the strict sense which are covered
 by the First Activity.
 The foreseen activities are:
 - the establishment of transnational networks of technology transfer and diffusion
     practioners, involving mainly organisations such as research and development
     organisations, sectoral technical centres, science parks, etc. in order to encourage the
     use of technologies in SMEs and the exchange of best practice;
 - the application of tools designed to facilitate the diffusion of technological
     opportunities and the bringing together of suppliers, users, and intermediaries;
 - the demonstration of mechanisms and conditions for the transfer of technologies and
     their use by new users via the implementation of inter-regional or trans-sectoral pilot
     projects. These projects will be based on intermediary organisations generating
     important multiplying effects on the diffusion of new technologies and management
     methods in SMEs;
  - measures to improve firms' awareness of best practice methods in the management
     of technological resources;
  - improving knowledge of the mechanisms involved and the reinforcement of the co-
     ordination of relevant policies and instruments.
  C. The Financial environment for the dissemination of technology
  Given that the financial environment influences the competitiveness of industry, the third
  area aims to improve, through an appropriate Community action respecting the
  subsidiarity principle, the European environment for the financing of the exploitation,
  adaptation and dissemination of technologies.
                                             -66
 ---pagebreak--- This area comprises:
- indirect measures which aim to reinforce the communication between financiers and
   the promoters of technological projects, to support the establishment of effective
    systems for mobilising private capital and the exit of investments ("exit"), to analyze
    and promote the most appropriate legal structures;
- pilot actions which aim to establish or to test financial mechanisms for the absorption
    of research results and technologies by SMEs. The technology performance financing
    scheme started under the SPRINT programme will be carried on and a new
    instrument compatible with those of the Member States and adapted to national
    contexts will be established. In accordance with established agreements, its
    management would be entrusted to public or private specialist financial intermediaries
    selected in the different Member States particularly for their ability to provide equity
    co-financing. This scheme should facilitate the granting of loan guarantees, interest-
    rate subsidies and measures to support associated technical and managerial assistance.
These activities will be implemented in close cooperation with the other Community
actions in the field (Eurotech capital, European Investment Funds, enterprise policy).
D. Scientific services for Community policies
The JRC will give its technical support to activities of dissemination and utilisation of
know-how resulting from its own research and technological developments activities
 which, due to their horizontal and trans-sectoral character, are an integral part of the
third activity.
 The different forms of know-how exploitation, especially transfer to industry, in
particular SMEs, will be encouraged.
 The optimisation of transfer of know-how, possibly in association with EUREKA
projects, will also be encouraged.
 These activities will be carried out in close collaboration with the Commission services
 responsible for dissemination and optimisation.
 The JRC will also give its scientific support to Community policies, at the request of
 directorates in charge of these policies, where the need or the request is manifested.
 These activities, which are in general of a limited and short term nature, do not fit in
 well, because of their very nature, with long term planning, because they follow the
 short term requests of the Directorates General. The opportunity to undertake them only
 becomes apparent during the execution of the framework programme, and when it
 appears that die JRCs scientific knowhow could contribute to the formulation or to the
 implementation of one or other of the Community's policies.
                                            -67-
 ---pagebreak--- Certain examples can nevertheless be identified: remote sensing of specific pollutants
and of the cultivation of certain hallucinatory plants (combating drugs); the analysis of
complex systems with multiple operators and the analysis of specific datasets; remote
sensing for fisheries.
                                   FOURTH ACIWITY
          Stimulation of training and mobility of researchers in the Community
  The specific objective of this activity, is to promote, the development at
  Community level, while respecting the principle of subsidiarity, of a factor
  representing a key variable for the scientific and technological system : human
  resources. Mobility is not a zero sum opération : it leads to a net increase in
  productivity.
The optimal utilisation of human resources is a basic parameter of all socio-economic
activity. Although Europe possesses a human capital in research which ranks in second
position at world level, its utilisation is often ponderous and slowed down by barriers
which isolate Member States, separate different disciplines and hinder technology
transfer. The development of human resources in the field of research through training,
and their better utilization by transnational mobility and co-operation, are essential
means to reinforce the basis of European industry and to improve its international
competitiveness.
The proposed activity succeeds (with a number of required modifications) the specific
programme "Human Capital and Mobility" (1992-1994) and, further back in time, the
programmes "Science" (1988-1992) and "Access to large scale scientific and technical
facilities" (1989-1992). Elements of continuity essentially concern die objectives
(increase of the efficiency of research and of the efficient use of research facilities in the
Community through training, mobility and co-operation). The adjustments required by
the evolving situation essentially occur at the levels of strategy and management
(reduced dispersion of financing efforts, simplification of contractual agreements,
 elimination of obstacles to free circulation of researchers, clear distinction between the
areas covered by the programme and the objectives of the targeted research described
 in the First Activity of this framework programme). The fourth activity, which aims to
give advanced training in centres of excellence distributed throughout the Community,
 will keep it open characteristic and put the emphasis on university-industry partnerships.
The general objectives of the activity, which encompass those of the former SCIENCE
 programme, are the following:
 - to stimulate training through research and, by means of co-operation, to foster better
    utilization of high-level researchers in the Community;
                                            -68-
 ---pagebreak--- - to improve the mobility of European researchers at geographical level, and also
    amongst different disciplines and between university and industry;
- to promote transnational co-operation for "free" research (as opposed to the targeted
    research foreseen in the first activities); i.e. : research activity proposed by the
    scientists themselves;
- to improve large-scale facilities which are indispensable for high-quality research, and
    to place them at the disposal of all European researchers;
- to improve the scientific and technological cohesion of the Community, by offering
    research opportunities to scientific institutions and to researchers, which may help
    them to reach the level of excellence.
This activity will cover the exact, natural, economic and management sciences, as well
as social and human sciences of relevance to Europe.
The activities foreseen, following along the lines of the SCIENCE programme, are
gathered into three sub-areas :
(a) Training through research and stimulation of mobility :
- Co-ordination of all training activities undertaken in the specific programmes defined
    in the first, second and third activities, with the aim of increasing their synergies;
- Harmonization of national policies and definition of the status of the European
    research trainee;
 - Implementation of training activities through research and stimulation of researchers'
    mobility. This will consist of stays of three months to three years, which should allow
    European researchers to receive professional training and specialised experience
     outside their home countries. These training periods will be open to all researchers
    holding or preparing a doctor's degree. Grants will be awarded to host laboratories
     and will cover mobility and subsistence expenditure, and will provide a contribution
    to research and management costs. Particular attention will be paid to training in the
     field of the management of changes within enterprises as they relate to new
    technologies.
 - Organization of Euroconferences and scientific prizes.
 (b) Twinning of laboratories in different countries
 This will allow researchers from different countries of the Community working in
 isolation to join their efforts in a "European Laboratory Without Walls" and to
 constitute, in this manner, research groups with a sufficient "critical mass". Grants will
 be awarded to help researchers to meet, to perform experiments in common, to support
 the exchange of results between researchers, to complete equipment or to reinforce
 research staffs through temporary contracts for visiting scientists (preferably from other
 countries).
                                             -69-
 ---pagebreak--- (c) Large scale facilities. Community activities will include :
- support for researchers in order to facilitate their access to large installations and
   large instruments (necessary for research and rare in the Community);
- support for the development of new technologies;
- the coordination of large scale research facilities.
                                         -70-
 ---pagebreak---                                                      ANNEX IV
          RULES FOR FINANCIAL PARTICIPATION BY THE COMMUNITY
1.        The financial participation by the Community in RTD activities undertaken
          within the specific programmes shall be:
(a) Indirect action (shared cost actions with third parties)
       - for RTD projects, including consortia integrated projects: progressively lower
           participation the nearer the project is to the market place and normally not
           exceeding 50% of the costs of the project (in the case of universities and higher
           education establishments, this may take the form of 100% of additional costs);
       - for thematic networks of excellence and training and mobility of researchers:
           normally 100% of the additional costs;
       - for preparatory, accompanying, and support measures: up to 100% of the costs
           of the measure;
       - for measures appropriate for certain specific programmes, such as feasibility
           awards: up to 100% of the costs of the measure.
(b) Concerted action
       For concerted actions consisting of the coordination of RTD projects, such as
       concertation networks: up to 100% of the administrative costs of the concertation.
 (c) Direct action
       For direct action consisting of RTD programmes or parts of programmes carried out
       by the JRC: normally 100% of the costs of the research.
       There may be no derogation from these general rules, except under the conditions
       set out in each specific programme.
 2.     The rules for any eventual financial participation by the Community in the
        activities foreseen in Article 2, paragraph 2, of this Decision will be specified in
        the measures concerning such activities taken by the Council in conformity with
        Article 130 Q(1) of the Treaty(2).
 (1>
     Replace by: "Article 130 O".
 (2)
     Add a paragraph 3 as follows: 'The rules for the financial participation of undertakings, research centres, and
     universities in the implementation of the specific programmes will be specified in the measures foreseen by Article
     130 J of the Treaty".
                                                           - 71 -
 ---pagebreak---                                        Proposai for a
                                   COUNCIL DECISION
 concerning a framework programme of Community activities in the field of research
        and training for the European Atomic Energy Community (1994 to 1998)
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Atomic Energy Community, and
in particular Article 7 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
Having regard to the opinion of the Economic and Social Committee,
Whereas Community activities in the field of nuclear research and training can be the
subject of a multiannual framework programme and of specific programmes both
determined in accordance with Article 7 of the Treaty;
Whereas by Decision 90/221/Euratom, EEC00 the Council adopted a third framework
programme for the period 1990 to 1994 in the field of research and technological
development (hereinafter referred to as "RTD") both within the scope of the EEC Treaty
and in the nuclear area and whereas that programme is in the process of being
implemented;        whereas Council Decision 93/167/Euratom, EEC^ provided for
supplementary financing for the last two years of implementation of the third framework
programme;
Whereas on 9 April 1992 the Commission presented an assessment of progress in
implementing the third framework programme of RTD; whereas on 22 April 1992 it
 also presented an evaluation of all the specific programmes carried out under the second
framework programme of RTD;
Whereas, in view of the rapid pace of technological development, it has been judged
 appropriate to adopt a new framework programme on nuclear research and training for
 the period 1994 to 1998 in order to ensure the continuity of multiannual Community
 activities in this field;
 Whereas, Article 4(1) of the Treaty provides for Community nuclear research and
 training activities designed to supplement the activities carried out by the Member States
 and that whereas it is appropriate, to that end, to define the criteria which will allow
 value to be added to efforts undertaken by the Member States; whereas compliance with
 the criteria laid down in this Decision implies that decisions on the areas for Community
 intervention must be very selective;
 (a)
     O J N o L 117, 8.5.1990, p. 28.
 00
     OJ No L 69, 20.3.1993, p. 43.
                                              72
 ---pagebreak--- Whereas, in the application of the above criteria, research activities in the fields of
nuclear safety and safeguard of controlled thermonuclear fusion should be pursued;
whereas these activities are implemented by means of specific programmes based on
cooperation with and between undertakings, research centres and universities;
Whereas cooperation in the field of Community research with third countries and
international organizations should be promoted; whereas in this field of activity it is
necessary to take account of the Community's international responsibilities, on nuclear
fission safety, in particular, with the countries of Central and Eastern Europe and the
States which have emerged from the former USSR; whereas it is also important to
continue international cooperation activities with third countries in the field of controlled
thermonuclear fusion where appropriate; whereas it is important systematically to
reinforce complementarity and to improve links between Community activity and
research activities undertaken in the framework of specialized European organizations;
Whereas action should be taken to promote the dissemination and optimization of the
 results of Community research activities; whereas the Treaty contains precise provisions
regarding the dissemination of knowhow which apply principally to the nuclear research
programmes and that these provisions are applied jointly by the specific programmes and
 a centralized activity;
 Whereas action should also be taken to promote the stimulation of the training and
 mobility of researchers, particularly young researchers, in the Community;
 Whereas activities involving international cooperation and stimulation of the training and
 mobility of researchers should be carried out within each specific programme;
 Whereas the Joint Research Centre is called upon to contribute to the implementation
 of the framework programme;
 Whereas the framework programme is to be implemented through specific programmes;
 Whereas there should be continual and systematic monitoring of progress with the
 framework programme as regards the criteria and objectives laid down in this Decision;
 whereas there should also be an independent assessment of management of the
 programme and of progress with the activities undertaken, in due time and before the
 proposal for the next framework programme; whereas the Commission shall also present
 an annual report to the Council;
 Whereas, without prejudice to the entry of the amounts needed to implement the
 programmes in the framework of the annual budgetary procedure in accordance with the
 third paragraph of Article 7 of the Treaty, it is necessary to make an estimate of the
 Community financial means necessary for the realization of the research and
 development activities envisaged;
                                           - 73
 ---pagebreak--- Whereas it is expedient to maintain coherence between all Community RTD activities
and whereas this framework programme and the fourth framework programme for
Community RTD activities(c) should therefore be adopted jointly for the same period;
Whereas the Scientific and Technical Committee has been consulted by the Commission,
HAS DECIDED AS FOLLOWS:
                                            Article 1
1. A framework programme for Community activities in the field of nuclear research
     and training is hereby adopted for the period 1994 to 1998.
2. The framework programme shall include all activities regarding research,
     technological development, international cooperation, dissemination and optimization
     of results, as well as training, in the fields of:
     - nuclear safety and safeguards,
     - controlled thermonuclear fusion.
3. Without prejudice to the third paragraph of Article 7 of the Treaty, the amount
     deemed necessary for Communityfinancialparticipation in the framework programme
     as a whole shall be ECU 1 475 million. Annex I sets out the breakdown between the
     two fields referred to in paragraph 2.
4. The selection criteria to be applied in the implementation of the framework
     programme are laid down in Annex II.
5. Annex III sets out the scientific and technological objectives and main features of the
     proposed activities, in accordance with the criteria referred to in paragraph 4.
                                            Article 2
The framework programme shall be implemented through specific programmes. These
programmes shall be adopted in accordance with Article 7 of the Treaty. Each specific
programme shall specify its precise objectives in accordance with the guidelines set out
out in Annex III.
                                            Article 3
The detailed rules for financial participation by the Community in the framework
programme as a whole shall be those provided for by the specific provisions regarding
RTD funding of the Financial Regulation applicable to the General Budget of the
European Communities, as specified in Annex IV.
 (c)
      See p.      of this Official Journal
                                              - 74
 ---pagebreak---                                          Article 4
1. The Commission shall continually and systematically monitor progress with the
   framework programme as regards the criteria and objectives set out in Annexes II and
   III. It shall examine in particular whether the objectives, priorities and financial
   resources are still appropriate to the changing situation. If necessary, it shall make
   proposals to amend or supplement the framework programme according to the results
   of such monitoring.
2. Before presenting its proposal for the next framework programme, the Commission
   shall have an assessment conducted by independent experts into the management of
   and progress with Community activities carried out during the five years preceding
   such assessment. It shall communicate the assessment, accompanied by its comments,
   to the Parliament, the Council and the Economic and Social Committee at the same
   time as its proposal for the next framework programme.
Done at Brussels,                                                   For the Council
                                                                    The President
                                           - 75
 ---pagebreak---                                 ANNEX I
                 FRAMEWORK PROGRAMME (1994-1998)
                        AMOUNT AND BREAKDOWN
                                                                  MECU
                                                              (Current prices)
Nuclear safety and safeguards                                       495
Controlled thermonuclear fusion                                     980
                          AMOUNT DEEMED NECESSARY*                 1475
 * of which JRC : 343 MECU allocated as follows : Nuclear safety and safeguards
 293 MECU and controlled thermonuclear fusion 50 MECU.
                                  - 76
 ---pagebreak---                                        ANNEX II
              SELECTION CRITERIA FOR COMMUNITY ACTIVITIES
The following criteria which guide the selection of scientific and technical objectives of
the framework programme should also be applied in the definition of specific
programmes:
 1. Community research, technological development and demonstration (RTD) activities
    must focus on clearly defined objectives which will contribute towards:
    - strengthening the technological base of Community industry and providing it
        with the knowledge and know-how (skills) required to make it more competitive
        at international level;
    - defining and implementing Community policies;
    - meeting the needs of society and promoting a sustainable development.
    This approach will also yield short-term, medium-term or long-term economic
    benefits and should contribute to the strengthening of economic and social cohesion
    in the Community, while being consistent with the pursuit of scientific and technical
    quality.
 2. On this basis, the following types of action could warrant Community activities:
     - action on a very large scale for which Member States could not provide the
        necessary facilities, finance and personnel, or could only do so with difficulty
        ("critical mass");
     - activities tackling ambitious themes, addressing large-scale problems or of
        long-term scientific benefit. Activities of this type require specific research at
        Community level and can thus often enhance the Community's overall
        contribution to the solution of international problems;
     - activities producing obvious financial benefits which justify joint action even
        allowing for the extra costs inherent in all international cooperation;
     - activities which are complementary to those being carried out nationally and
        which aim at strengthening the scientific and technological base of the
        Community as a whole and where there is a better chance of applying the results
        at Community level;
                                           - 77
 ---pagebreak---    - activities contributing to the achievement of a common policy, such as
      completion of the single market or of a common objective such as the unification
      of the European scientific and technical area, and, where the need is felt, to the
      establishment of common rules and standards.
3. The Community's RTD activities must be implemented through projects which are
   to be assessed on the basis of their scientific and technical excellence.
   In this process of selecting the projects to be carried out in the specific programmes,
   priority will be given to projects.
   - allowing closer coordination of the research being conducted in the
      Member States, at Community level and within other European and international
       cooperation forums;
   - making it possible to respond as effectively as possible to the Community's
       objectives regarding economic and overall industrial competitiveness.
                                             78 -
 ---pagebreak---                                          ANNEX III
                 SCIENTIFIC AND TECHNOLOGICAL OBJECTIVES
Nuclear Safety and Safeguards
The objective is to ensure the safety of all nuclear activities whatever they are ,the
production of electricity from fission, the use of radioactivity or ionising radiation, or
the presence of natural radioactivity. In spite of the progress achieved by the nuclear
electricity industry, the accident at Chernobyl has shown that nuclear safety should still
be improved, particularly in the East. It is necessary to consolidate the nuclear option
by showing our ability to control it in all areas of application. This demonstration of a
full nuclear safety capability will be made through four priority routes:
- the development of a dynamic approach to nuclear safety contributing to the
consolidation of a "safety culture " on a world scale; the joint use of the large European
facilities to arrive at a better understanding of the crucial phenomena linked to the
nuclear fuel cycle and waste ; pursuing the development of techniques to control nuclear
safety ; the integration of radiological protection into a global system for the protection
of man and the environment.
As far as the first priority is concerned and in close cooperation with the competent
international organisations the areas of activities will concern the study of new systems
of control and monitoring, aspects related to severe accidents, and the evaluation of the
safety characteristics of new reactor concepts. The ageing of installations and their
prolonged operation will require complementary studies in the frame of research
networks. The decommissioning of installations in the EC , the Eastern and central
European countries, as well as the restoration of sites will be studied in coordination
with the national authorities.
 As far as the second priority is concerned, the work carried out by the JCR in the field
of the nuclear fuel cycle and radioactive waste will focus on the problems of safety
 related to nuclear fuel and on final disposal. Prenormative approaches will be developed.
 The joint use of underground installations by research workers of all the Member States
 will have to be increased.
 The research activities at the JRC in the field of control of safeguards and in the
 framework of networks of national laboratories, will be aimed at obtaining results, or the
 development of new techniques necessary to assure the respect of the obligations
 concerning safeguards relevant to treaties and to those following from the Treaty on
 non-proliferation. Moreover, the JRC will pursue its activities in supporting the
 fulfilment of the tasks which are the responsibility of the Commission in this field, as
 well as with its participation in establishing a coherent and reliable international system
 of control of safeguards through its cooperation with the IAEA and its cooperation with
 the countries wishing to contribute to such a system, in particular with the Eastern
 countries.
                                             -79-
 ---pagebreak--- In the field of radioprotection, the thorough understanding of the biological mechanisms
arising from radiation exposure remains the key to achieving a better quantification of
the effects of low doses. The reduction of exposure from all sources, taking into account
social and economic constraints, remains the objective of the protection of man and his
environment.
The problems of radioactive pollution originating from accidents or operational errors
in the Eastern and central European countries, in particular Chernobyl, require
cooperation with these countries. The setting up of a network of international centres
will stimulate international collaboration and contribute to a better coordination of
bilateral and international initiatives.
Controlled Thermonuclear Fusion
The long term objective of die Community action, embracing all activities undertaken
in Member States (plus Sweden and Switzerland) in the field of controlled thermonuclear
 fusion by magnetic confinement, is the joint creation of safe, environmentally sound
prototype reactors. The long time span and the large human and financial efforts
 required before reaching this objective make necessary the total cohesion of the network
of organizations associated in the Community action, as well as the full exploitation of
 the cooperation with the large fusion programmes outside the Community.
 Safety and environmental issues will play a central role in the realization of the large
 devices included in the strategy which is envisaged for moving towards a prototype
 reactor. During the period 1994-1998, the simultaneous development of three themes
 of activity is necessary for implementing this strategy : the Next Step activities, on the
 first experimental reactor; the improvement of concepts, in plasma physics and
 engineering, for die subsequent step, die demonstration reactor; the long term
 technology, essential for progressing towards the exploitation of fusion as an energy
 source.
 For the period 1994-1998, die objective of the Next Step activities will be to complete
 the engineering design of an experimental reactor, in the frame of the quadripartite
 international agreement ITER, between EURATOM, Japan, the Russian Federation and
 the USA. For EURATOM, the activities, other than the participation in the "Joint
 Central Team", will be coordinated by the NET team and carried out by JET, the
 Associations, the JRC and industry. A European candidate site for the construction of
 the Next Step will be identified. The JET Joint Undertaking will end after a phase of
 operation with tritium; the expertise will be transferred, in particular to ITER; available
 equipment will be utilised in organizational frames to be defined. The optimisation of
 concepts, on which tokamaks and similar configurations are based, will be continued by
 the Associations; the upgrading of existing devices, as well as the construction of new
 ones, such as a stellarator, could be necessary. The possibility of using other fusion
  reactions will be studied. The long term technology will concern tritium breeding
 blankets, materials and safety; the specialized laboratories, in particular at the JRC, will
  contribute in demonstrating the safe handling of tritium.
                                            - 80-
 ---pagebreak--- The research will continue to focus principally on controlled thermonuclear fusion by
magnetic confinement. However, it is important that alternative ways, such as fusion
by inertial confinement, for example with trie aid of beams of particles, receive due
attention, if possible in the frame of international collaboration, in particular for a
possible experimental activity.
The synergy between research and training will be developed. The mobility of scientists
will be increased, in particular in the frame of consortia for integrated actions, grouping
several Associations on joint projects. The decentralized management of the Programme
will be maintained.
                                            - 81
 ---pagebreak---                                    ANNEX IV
   RULES FOR FINANCIAL PARTICIPATION BY THE COMMUNITY
1. The financial participation by the Community in RTD activities undertaken
   within the specific programmes shall be:
   (a)     Indirect action (shared cost actions with third parties)
        for RTD projects, including consortia integrated projects: progressively lower
        participation the nearer the project is to the market place and normally not
        exceeding 50% of the costs of the project (in the case of universities and
        higher education establishments, this may take the form of 100% of
        additional costs);
        for thematic networks of excellence and training and mobility of researchers:
        normally 100% of the additional costs;
        for preparatory, accompanying, and support measures: up to 100% of the
        costs of the measure.
   (b)      Concerted action
   For concerted actions consisting of the coordination of RTD projects, such as
   concertation networks: up to 100% of the administrative costs of the
   concertation.
    (c)     Direct action
    For direct action consisting of RTD programmes or parts of programmes carried
    out by the JRC: normally 100% of the costs of the research.
    There may be no derogation from these general rules, except under the
    conditions set out in each specific programme.
2.  The rules for the participation of the Community in the Joint Undertaking, JET,
    and ITER activities are specified in the specific programme relating to controlled
    thermonuclear fusion.
                                       - 82 -
 ---pagebreak---                                                       FINANCIAL STATEMENT
                                                     Part 1: Financial implications
1.   TITLE OF THE OPERATION
     Fourth framework programme of Community activities in the field of research and technological development and framework
     programme for the European Atomic Energy Community (1994-1998)
2.   BUDGET HEADING CONCERNED
     Sub-section B6
3.   LEGAL BASIS
     Article 130 Q(I) of the EEC Treaty (to be replaced by article 130i, paragraph 1 of the EC treaty after the entry into force of the
     Maastricht Treaty) and article 7 of the EAFX Treaty.
4.   DESCRIPTION OF THE OPERATION
4.1         Specific objectives
     Implementation of research, technological development and demonstration programmes by promoting cooperation with and between
     enterprises, research centres and universities;
     Promotion of cooperation in the field of Community research, technological development and demonstration with third countries and
     international organizations;
     Dissemination and application of results of Community research, technological development and demonstration activities;
     Stimulation of the training and mobility of researchers in the Community.
4.2         Duration
      1994-98
4.3         Target population for the operation
      Industrial enterprises - including especially SMEs - research centres and universities in their research and technological development
      activities.
5.    CLASSIFICATION OF THE EXPENDITURE AND REVENUE
SI.          Non-compulsory expenditure.
 5.2         Differentiated appropriations.
 5.3        Type of revenue involved
      The EFTA countries as defined in Article 2 of the Protocol amending the Agreement on the European Economic Area (EEA) will
      contribute to proportional additional financing for this framework programme, if the EEA Joint Committee provided for in the
      Agreement so decides, probably limited to the non-nuclear activities.
6.    TYPE OF EXPENDITURE OR REVENUE
      Research, development and demonstration projects carried out by external contractors may receive a Community contribution to the
      cost of research, with a ceiling of 50% of the costs or the equivalent (100% of additional costs for universities and similar
      organisations).
      Networks, training and the mobiKty of researchers, concerted actions, which consist of the coordination of research and development
      projects, and accompanying activities, may receive a contribution of up to 100% of the cost of these activities.
       Research activities carried out by the Joint Research Centre will in principle be 100% funded.
                                                                 - 83
 ---pagebreak--- 7.        FINANCIAL IMPACT
7.1             Method of calculating tile total cost of the operation
          The framework programmes have been defined so as not to exceed two-thirds of the amount allocated to category 3 of the proposed
          financial perspective for 1993-99.
          The amounts will cover scientific, technical, demonstration and related horizontal support measures as well as personnel costs and
          administrative, scientific and technical expenses directly linked to the execution of the activities and measures. As far as activities
          carried out by the JRC are concerned, these amounts will cover the infrastructure for the institutes.
12              Breakdown
          The four activities correspond to the four objectives listed at 4.1 above.
                                                        4th framework programme 1994-98
                                                                                                    MECU
                                                                                               (current prices)
                                     First Activity (Research, Technological                            1092S
                                     Development and Demonstration Programmes)
                                     Second Activity (Cooperation with Third                               790
                                     Countries and International Organizations)
                                     Third Activity (Dissemination and                                     600
                                     Application of Results)
                                     Fourth Activity (Stimulation of the                                   78S
                                     Training and Mobility of Researchers)
                                                                                    •   ,  ,            •   .,.
                                                                   OVERALL AMOUNT                       13100
                                   I                                                         l
                                                                                                                                         MECU
                                                                                                                                 (current prices)
 Indicative breakdown between mêmes in the first activity
           Information and Communications Technologies*                                                                                     3900
           Industrial Technologies *                                                                                                        1800
           Environment *                                                                                                                     970
           Life Sciences and Technologies *                                                                                                 1325
           Energy •                                                                                                                         2525
                 nuclear                                                                                                               1475
                 non-nuclear                                                                                                           1050
           Research for a European transport policy*                                                                                         280
           Targeted Socio-economic Research *                                                                                                 125
                                                                                                                                           10925
           of which JRC 1067 MECU. N.B.: in addition to participating in thefirstactivity, the JRC will also participate in the third activity
           to the tune of 70 MECU.
                                                                      -84-
 ---pagebreak--- 73 Indicative schedule
                                                                 MECU - current Prices
                                       YEARS                 Financial              Actual
                                                           Perspectives         Amounts
                                                                                    4th FP
                                         1994                  4325                   pm
                                         1995                  4715                  2928
                                         1996                  5078                  3153
                                         1997                  5450                  3384
                                         1998                  5852                  3635
                                         Total
                                      1994-1998                                      13100
   The deflators used are respectively for 92-93: 1.023, for 92-94 : 1.059, for 92-95 : 1.091, for 92-96 : 1.123, for 92-97 : 1.157 and
   for 92-98 : 1.192.
   The definitive annual amounts will be fixed by the budgetary authority.
   ANTI-FRAUD MEASURES PLANNED UNDER THE OPERATION
   Audit programme of the Directorate-General. Supervision by the officials formally responsible for the actions.
                                            Part 2 : Basis for cost/effectiveness analysis
   OBJECTIVES
   The framework programme corresponds to the objectives established by the Treaty on European Union and notably its Article 130f| 1 )
   which states: "The Community shall have the objective of strengthening the scientific andtechnologicalbases of Community industry
   and encouraging it to become more competitive at international level, while promoting all the research activities deemed necessary
   by virtue of other chapters of this Treaty." The four activities selected reflect Article 130g.
   JUSTIFICATION OF THE OPERATION
    The operation is justified by the need for the Community to help strengthen the scientific and technological bases of Community
    industry and to encourage ittobecome more competitive at international level, while contributing to the definition and implementation
    of Community policies and to meeting die needs of society.
    MONITORING AND EVALUATION OF THE OPERATION
    The form and frequency of the process of evaluation will be such as to enable the Commission to respond to therequirementsunder
    Article 4 of the draft Decisions in the proposal above, and to evaluate Community RTD programmes and policies.
    The principal factors of uncertainty which can affect the results of the operation include any delay which may occur in the
    implementation of activities under the present proposal, the ability andreadinessof private enterprises to take full advantage of the
    benefits which these activities will offer them, and the unavoidable difficulty in making a direct link, especially in the short term,
    between research expenditure on the one hand and industry's competitive success on the other, notably in the light of the fact that
    innovation is not a linear process from fundamental research, through appliedresearchto commercial application.
    The indicators and quantitative or qualitative criteria which make it possible to measure the results will be determined at the level
    of each specific programme.
                                                                - 85
 ---pagebreak--- During the implementation of the fourth framework programme, the Commission will examine the state of its progress in relation
to criteria and objectives indicated in annexes II and III. It will assess, on a permanent and systematic basis, in particular, if die
objectives, the priorities as well as the financial means are still adapted to the changing situation (see Article 4(1) of the draft
Decision). It will submit if necessary proposals aiming to adapt or to complete the framework programme according to this
assessment. Similarly, before submittmg its proposal for the fifth framework programme, it will commission independent experts to
carry out an evaluation of management and achievements of Community RTD activities during the five years preceding this evaluation
(see Art4(2) of the draft decision).
                                                           -86-
 ---pagebreak---                                      BUSINESS IMPACT STATEMENT
                            THE IMPACT OF THE PROPOSAL ON BUSINESS
                    WITH SPECIAL REFERENCE TO SMALL AND MEDIUM-SIZED
                                            ENTERPRISES (SMEs)
Title of proposal: Commission proposal concerning the fourth framework programme of Community
activities in the field of research and technological development (1994-98)
Reference number:
The proposal
1. Taking account of the principle of subsidiarity, why is Community legislation necessary in this area and
what are its main aims ?
The objectives of the Community's research and technological development activities are to strengthen the
scientific and technological bases of Community industry and to encourage it to become more competitive
at international level. The need for Community action is acknowledged by Title VI of the EEC Treaty and
by Chapter I of the Euratom Treaty. In addition, the EC Treaty (in Article 130f as introduced by the Treaty
on European Union) stipulates that the Community shall promote all the research activities deemed
necessary by virtue of other Chapters of the Treaty. The subsidiarity of the Community RTD activities
proposed has been determined in accordance with the approach described in Article 3b as introduced into
the EEC Treaty by the Maastricht Treaty.
The impact on business
2. Who will be affected by the proposal ?
- Which sectors of business ?
The Community's RTD activities must concentrate more on generic technologies for widespread use in all
sectors of economic activity in Europe. The joint research funded by the budget allocated to the fourth
framework programme on, for example, information technologies, industrial technologies, materials or
biotechnology will assist very many sectors.
- Which sizes of business (what is the proportion of small and medium-sized firms)?
The Community encourages RTD and cooperation by businesses, including SMEs, research centres and
universities. The complementarity between the comparative advantages of small firms and big companies
has prompted the Commission successfully to encourage small firms to become involved in the Community's
research programmes, notably with the aid of special incentives. SMEs have also benefited most from the
improvements made to the management of Community research, e.g. simplification of the information
packages, support in seeking partners and targeted proposer days, etc. The fourth framework programme
expands this approach by providing for technology promotion activities for SMEs, by focusing the
                                                     -87-
 ---pagebreak--- dissemination measures on small firms and proposing a completely new financial instrument specially
designed to encourage SMEs to apply the results of Community research. This instrument forms part of
the third activity and is a new addition to the package of measures designed to ensure more effective
participation by SMEs in the Community's RTD activities.
    -Are there particular geographical areas of the Community where these businesses are found ?
    In principle, the Community's RTD activities serve no geographical or regional objective. Although the
    objectives of strengthening economic and social cohesion in the Community and of promoting
    harmonious development also apply to RTD policy, scientific and technical excellence is the overriding
    selection criterion applied for this particular policy. This criterion in itself is a factor encouraging
    cohesion in so far as it enables scientists from the least favoured regions to participate in the most
    advanced research activities in Europe. The evaluation panel's September 1991 report on the impact of
    the framework programme on economic and social cohesion in the Community revealed increasing
    involvement by firms from the least favoured regions (most of them SMEs) in the Community
    partnerships. The fourth framework programme should help to continue this trend, building on the results
    of the operations carried out under the Structural Funds (and in particular STRIDE) to bolster RTD
    structures in the least favoured regions. Specific measures are also planned under the third and fourth
    activities for these regions.
 3. What will business have to do to comply with the proposal ?
    The proposal imposes no formal obligations on businesses in the Community. On the contrary, it
    provides them with greater means to participate in joint research. The private sector will retain primarily
     responsibility for fully seizing the opportunities opened up and for applying the results of the research
    projects for the manufacture and successful marketing of innovatory products.
 4. What economic effects is the proposal likely to have ?
     - on employment, on investment and the creation of new businesses and on the competitive position of
        businesses ?
     By making European businesses more competitive at international level, the Community's RTD activities
     will create jobs and encourage investment. The Commission communication evaluating the second
     framework programme for Community research and technological development (SEC(92)675 of
     22 April 1992) and the subsequent analysis of this evaluation by CREST give an idea of the economic
     impact of the Community's RTD activities. The proposed fourth framework programme follows the
     concentration strategy started in the third. More selective allocation of the funds requested for the
     individual activities should ensure that the activities have greater relevance and impact.
 5. Does the proposal contain measures to take account of the specific situation of small and medium-sized
    firms (reduced or different requirements, etc.) ?
     Arrangements specifically for small firms will continue to be developed and, in certain cases, tested.
     New approaches have also been proposed (cf. paragraph 2 above).
                                                       -88-
 ---pagebreak---    Consultation
6. List the organizations which have been consulted about the proposal and outline their main views.
   This proposal concerning the Fourth framework programme is the fruit of a policy debate within the
   Commission, which keeps in constant contact with the advisory bodies responsible for RTD (CREST,
   IRDAC and CODEST), the European Parliament and the Economic and Social Committee, UNICE, the
   national authorities, researchers and the relevant European and national organizations.
                                                    -89
 ---pagebreak---                                      PROPOSED TIMETABLE1
Plenary debate on the Parliament's own initiative report                                          June 1993
Transmission of the proposal of the Commission for the
Fourth framework programme to the Council and Parliament                                           June 1993
Preliminary political agreement on the main lines in the Council                                  June 1993
Official submission to the Parliament and
Economic and Social Committee by the Council                              plenary session in July 1993
Examination of the proposal in Parliamentary committee                          September/October 1993
(Entry into force of the Maastricht Treaty (?)                                               October 1993)
Adoption in Parliamentary Committee in accordance with the
provisions of the Maastricht Treaty                                                        November 1993
Opinion of the Economic and Social Committee                                               November 1993
Adoption in plenary by EP in accordance with
the provisions of the Maastricht Treaty                                                    November 1993
Adoption of Common Position by the Council                                                 December 1993
Transmission of the Common Position                                                 plenary January 1994
Second reading (and final reading ?)                                                         February 1994
Adoption of specific programmes                                                           April/May 19942
 1  Considered by the informal "Research" Trilogue of 26 May 1993 as a basis for organising work.
2  The transmission of informal texts of specific programmes should in principle take place well before the final
   adoption of the decision on the Fourth framework programme, during the second half of 1993.
                                                     -90-
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (93) 276 final
                                                      DOCUMENTS
EN                                                                              15
                                 Catalogue number : CB-CO-93-329-EN-C
                                                             ISBN 92-77-57040-7
Office for Official Publications of the European Communities
L-2985 Luxembourg