CELEX: 51990PC0153
Language: en
Date: 1990-05-23
Title: PROPOSAL FOR A COUNCIL DECISION CONCERNING A SPECIFIC PROGRAMME OF RESEARCH AND TECHNOLOGICAL DEVELOPMENT IN THE FIELD OF INFORMATION TECHNOLOGY ( 1990-1994 )

COMMISSION OF THE EUROPEAN COMMUNITIES
m                                          COM(90) 153 f i n a l - SYN 258
                                           Brussels, 23 May 1990
                                  Proposal for a
                             COUNCIL DECISION
  concerning a specific programme of research and technological development
                     in the field of Information Technology
                                    (1990-1994)
                         (presented by the Commission)
 ---pagebreak---                                         CONTENTS
                                                    Page
Proposal for a Council decision adopt i ng a
specific research and development programme in the
 field of information technology (1990-94)
ANNEX I
Scientific and Technical Objectives and Content     11
ANNEX II
Indicative Breakdown of Expenditures                19
ANNEX III
Rules for implementing the programme and activities
for dissemination and exploitation of the results   20
 ---pagebreak---                                        Proposal for a
                                  COUNCIL     DECISION
  adopting a specific research and development programme in the field of information
  technology (1990-94)
 THE COUNCIL OF THE EUROPEAN COMMUNITIES,
 Having regard to the Treaty establishing the European Economic Community, and in
 particular Article 130q (2) thereof,
 Having regard to the proposal from the Commission/1)
 In cooperation with the European Parliament/2)
Having regard to the opinion of the Economic and Social Committee/3)
Whereas by its Decision 90/221/Euratom, EEC4>, the Council adopted a third framework
programme for Community activities in the field of research and technological
development (1990-94), specifying inter alia the activities to be pursued in the field of
(1)   OJ No C
(2)   OJ No C
(3)   OJ No C
(4)   OJ No L 117,8.5.1990, p.28.
 ---pagebreak---                                             -4
 information technology; whereas this Decision should be taken in the light of the grounds
 set out in the preamble to that Decision;
 Whereas Article 130k of the Treaty stipulates that the framework programme is to be
 implemented through specific programmes developed within each activity;
Whereas an estimate should be made of the amount of Community financial resources
needed to carry out this specific programme; whereas the definitive amounts will be fixed
by the budgetary authority in line with the financial perspectives covering the period 1988 -
 1992 included in the Interinstitutional Agreement of 29 June 1988<5> and with any future
financial perspectives covering the period 1993 -1994;
Whereas, pursuant to Article 4 and Annex I of Decision 90/221/Euratom, EEC, the
amount deemed necessary for the whole framework programme includes an amount of 57
million ecus for the centralized dissemination and exploitation of results, to be divided up
in proportion to the amount envisaged for each activity; whereas in view of the importance
of this specific programme within the information technology and communications
activities the estimate of the financial resources needed by this programme is to be reduced
by 13.52 million ecus, which amount is to be allocated to the centralized activities, in order
to comply with the second sentence of Article 130p (2) of the Treaty;
Whereas this programme must be implemented by the Commission; whereas to help
accomplish this, the Member States are bound, pursuant to Article 5 of the Treaty, to
facilitate the achievement of its tasks where necessary, notably within a committee;
Whereas this programme must be implemented essentially by the selection of research and
development projects to enable them to benefit from Community participation; whereas
the Commission should encourage the submission of such projects by the usual means of
publishing calls for proposals in the Official Journal; whereas a special procedure should
(5)   OJ No L 185,15.7.1988, p.33.
 ---pagebreak---  also be devised so as to maintain a degree of flexibility enabling the Commission, in the
 face of the continuous evolution and gradual acceleration of technological progress, also to
 take into consideration spontaneous proposals consistent with the objectives of the
 programme;
 Whereas the projects to be carried out under the programme must be selected with special
 attention to the principle of economic and social cohesion in the Community, the
 transnational nature of the projects and the support to be given to small and medium-sized
 enterprises;
 Whereas it is only in the light of experience gathered in the course of this programme that
the Commission will be able to propose and the Council to adopt supplementary
programmes by having recourse to the means provided for in Articles 1301, 130m or 130o of
the Treaty, if they contribute to the achievement of the programme's objectives, in
accordance with the option made available by Article 2(2) of Decision
90/221/Euratom, EEC;
Whereas, in accordance with Article 130g of the Treaty, the Community's activities aimed
at strengthening the scientific and technological basis of European industry and
encouraging it to become more competitive include promoting cooperation on research
and technological development with third countries and international organizations;
whereas such cooperation may prove particularly beneficial for the development of this
programme;
Whereas Information Technology pervades throughout the economy and society, improves
decisively the competitiveness of industry and services, as well as easing working conditions
and many aspects of private life; whereas Information Technology requires important
efforts in research and development calling for transnational cooperation; whereas
Microelectronics, Information Processing Systems and Software, Office and Home
Systems, Computer Integrated Manufacturing and related Basic Research have been
identified as priorities in Decision 90/221/Euratom, EEC.
 ---pagebreak---                                        -6
Whereas the Scientific and Technical Research Committee (CREST) has been consulted,
 ---pagebreak---                                          -7-
HAS ADOPTED THIS DECISION:
                                          Article 1
A specific research and technological development programme for the European Economic
Community in the field of information technology, as defined in Annex I, is hereby adopted
for a period of five years as from 1 January 1990.
                                          Article 2
1.   The Community funds estimated as necessary for the execution of the programme
     under this Decision amount to 1352 million ecus. Of this amount 13.52 million ecus is
     drawn for the centralized dissemination and exploitation of results. The amount thus
     reduced to 1338.48 million ecus includes staff costs which may not exceed 4%. An
     indicative breakdown of expenditure is set out in Annex II.
2.   Should the Council take a decision in implementation of Article 1(4) of Decision
     90/221/Euratorn, EEC, this Decision shall be adapted to take account of the above-
     mentioned decision.
3.   The budgetary authority shall decide on the appropriations available for each financial
     year.
                                         Article 3
Rules for the implementation of the programme are set out in Annex III.
                                         Article 4
The rate of the Community financial contribution shall be laid down in accordance with
Annex IV to Decision 90/221/Euratom, EEC.
                                         Article 5
1.   During 1992 the Commission shall review the programme and address a report on the
     results of the review to the Council and the European Parliament, together with
     proposals for any necessary changes.
 ---pagebreak---                                           8-
2. At the end of the programme the Commission shall assess the results obtained. It
   shall address a report thereon to the Council and the European Parliament.
3. The reports shall be drawn up having regard to the objectives set out in Annex I to this
   Decision and in accordance with Article 2(4) of Decision 90/221/Euratom, EEC.
                                         Article 6
1. The Commission shall be responsible for the execution of the programme. It shall be
   assisted by a committee, hereinafter referred to as "the Committee", composed of
   representatives of the Member States and chaired by a representative of the
   Commission.
2. The contracts concluded by the Commission shall govern the rights and obligations of
   each party, including the procedures for disseminating, protecting and exploiting the
   research results, in accordance with the arrangements adopted pursuant to the second
   paragraph of Article 130k of the Treaty.
3. A work programme for each year shall be drawn up and updated where necessary. It
   shall set out the detailed objectives and types of projects to be undertaken, and the
   financial arrangements to be made for them. The Commission shall make calls for
   proposals for projects on the basis of the annual work programmes.
                                        Article 7
1. In the cases envisaged in Article 8(1), the Commission representative shall submit to
   the Committee a draft of the measures to be taken. The Committee shall deliver its
   opinion on the draft within a time limit which the chairman may set according to the
   urgency of the matter.     The opinion shall be delivered by qualified majority as
   provided for in Article 148(2) of the Treaty in the case of decisions which the Council
   is required to adopt on a proposal from the Commission. The votes of the Member
   States' representatives within the Committee shall be weighted in the manner set out
   in that Article. The chairman shall not vote.
2. The Commission shall adopt the measures envisaged where they are in accordance
   with the Committee's opinion.
3. If the measures envisaged are not in accordance with the Committee's opinion, or if
   no opinion is delivered, the Commission shall forthwith submit to the Council a
 ---pagebreak---                                         -9-
   proposal relating to the measures to be taken. The Council shall act by a qualified
   majority.
4. If the Council has not acted within one month of submission of the proposal, the
   proposed measures shall be adopted by the Commission.
                                         Article 8
1. The procedure laid down in Article 7 shall apply to:
   - the preparation and updating of the work programmes referred to in Article 6(3);
   - evaluation of the projects referred to in point 2 of Annex III, as well as the
      estimated amount of the Community's financial contribution when these projects
      are submitted through the ordinary procedure referred to in point 4 of Annex III
      and the abovementioned amount is more than 5 million ecus;
   - evaluation of all projects submitted through the exceptional procedure referred to
      in point 4 of Annex III, as well as the estimated amount of the Community's
      financial contribution;
   - measures for evaluating the programme.
2. The Commission may consult the Committee on any matter falling within the scope of
   the programme.
3. The Commission shall inform the Committee with regard to;
   - the progress of the programme;
   - planned calls for proposals, referred to in Article 6 (3);
   - projects, referred to in point 2 of Annex III, submitted through the ordinary
      procedure, for which the Community contribution is less than 5 million ecus, and
      the results of their evaluation;
   - accompanying measures, referred to in point 2 of Annex III;;
   - concerted actions, referred to in point 2 of Annex III.
 ---pagebreak---                                           10
                                          Article 9
In implementing this programme, supplementary programmes within the meaning of
Article 1301, participation within the meaning of Article 130m and joint undertakings or any
other structures within the meaning of Article 130o of the Treaty may also be decided on as
the need arises.
                                         Article 10
Where cooperation with third countries and international organisations aiming at achieving
the objectives of this programme requires legal undertakings between the Community and
the third parties concerned, the Commission shall be authorized to negotiate, in
accordance with Article 130n of the Treaty, international agreements laying down the terms
of such cooperation.
Decisions on the conclusion of such agreements shall be adopted in accordance with the
procedure referred to in Article 130q (2) of the Treaty.
                                         Article 11
This Decision is addressed to the Member States.
Done at B r u s s e l s ,
                                                    For the Council,
                                                    The President
 ---pagebreak---                                          -11-
                                                                                   ÀnnexI
                      Scientific and Technical Objectives and Content
 The approach embodied in the third Framework Programme, the scientific and technical
 objectives and the underlying aims which it pursues, form an integral part of this specific
 programme.
 Paragraph I.1.A of Annex II of the Framework Programme forms an integral part of this
 specific programme.
 The following presents an analytical description of the content of the programme based on
 and taking account of the above elements.
The programme constitutes a new phase of the European Strategic Programme for
 Research and Development in Information Technology (ESPRIT), oriented towards the
new generations of technologies.
The programme will be carried out in five areas:
Area 1: Microelectronics
Area 2: Information Processing Systems and Software
Area 3: Advanced Business and Home Systems; Peripherals
Area 4: Computer Integrated Manufacturing and Engineering
Area 5: Basic Research.
Accompanying measures comprise technology transfer and training activities carried out in
each of the areas. They include special actions, which aim at increasing the potential for
participation in Community R&D in Information Technology of organisations in peripheral
regions and likewise their ability to make use of the results. They include acquisition of
information both within the programme and from the IT community at large, as well as
measures to create awareness of opportunities and availability of results, and to develop
synergies between participants and with the FT community at large. They also include the
Information Exchange Systems for programme participants (IES) and participation in the
EUREKA project Cooperation for OSI Networking in Europe (COSINE). Specific
information on projects will be provided in close cooperation with the Community R&D
Information Service (CORDIS).
 ---pagebreak---                                             12
Area 1: Microelectronics
 Emphasis will be on Application Specific Integrated Circuits (ASICs), including notably
 multi-function circuits, high speed circuits, optoelectronic circuits, advanced power circuits
 ("smart power"), new equipment, manufacturing technology and materials for integrated
circuits and, in conjunction with other initiatives in the Community such as the Joint
European Submicron Silicon project (JESSI), the advanced technologies linked to
submicron silicon.
Work will be addressed to the major components of the chain of designing, manufacturing,
testing and applying advanced semiconductor products. The activities will be organised so
as to link users and producers, ensuring the participation of a wide range of actors to the
benefit of all. It will address the complete set of technologies that are needed to produce
new generations of integrated circuits (ICs), on the basis of the work carried out under
ESPRIT in process technologies, Computer Aided Design (CAD) and Computer Aided
Testing, and by taking up newly emerging topics.
An essentially new topic is Manufacturing Science and Technology. Work in this area will
aim to improve the manufacturing capability of European IC industry by addressing all the
aspects that are necessary to achieve higher quality low cost ICs. This includes R&D in
equipment engineering, automation, clean room technology and quality control.
The following topics will be regarded as priorities: equipment for semiconductor
processing, covering the most demanding technological steps (lithography, layer processing
and metrology in particular); packaging and connectivity (comprising electrical and optical
solutions); advanced materials, addressing silicon-related films and compound
semiconductor (especially III-V) materials, the latter being of crucial importance for the
further development in optoelectronics and high speed integrated circuits.
With respect to IC technology, both higher density and higher speed circuits will be
pursued as well as integrated systems of increased performance and reduced size and cost
leading to the "system on a chip".
Work in high density ICs will centre on 0.5-0.3 micron silicon (Si) complementary metal
oxide semiconductor (CMOS) technology. In addition to the actual lithography and other
semiconductor process and material technologies, CAD tools and systems capable of
designing and testing at higher complexity levels (between 4 and 8 million transistors of
mixed memory and logic) will be developed. Work on high density ICs will be carried out
in conjunction with JESSI.
 ---pagebreak---                                              13-
 Work in high speed ICs will address both silicon bipolar and III-V technologies for digital
 and analog circuits. The work includes semiconductor technology and materials and
 specific aspects of design and testing of high speed ICs (for instance for high frequency
 digital ICs).
 Work will progress towards the "system on a chip" through the development of flexible
 processes that allow the combination of various features such as digital and analog
 functions, non-volatile memory, low voltage, power switching and sensors onto one chip.
 Such features will be integrated into a standard submicron digital CMOS process. The
 increased process complexity requires special measures to achieve sufficiently high yields.
 Special CAD tools which are, for example, capable of simulating the different functions on
 the chips, are also required.
 Technology transfer, training and other accompanying measures will be undertaken where
 there is a specific need for action; special emphasis will be put on prenormative work on a
 standard CAD framework with interfaces allowing for an effective integration of CAD
 systems. Measures to tackle specific skills deficits that can only be addressed in
 cooperation with industry (for instance, those that require access to industrial facilities) will
 be undertaken. Measures to promote uptake of ASIC technology in innovative products,
 especially by small and medium-sized enterprises (SMEs), will also be undertaken.
Area 2: Information processing systems and software
Concurrent architectures are seen as the key to future breakthroughs in the
cost/performance ratio of computers. Work in this area will lead to a minimal set of
machine architectures needed to satisfy selected target applications with around 10
computing elements. Concurrent systems will improve systems reliability and security. The
work will include advanced experiments to validate selected parallel architectures. It will
take the requirements of distributed computing and of real-time applications into account.
It will, in particular, concentrate on tightly coupled and homogeneous systems. Operating
systems allowing information sharing between existing systems and newly emerging parallel
operating systems will be addressed. Technical and scientific workstations with very high
performance will be based on parallel architectures.
Future generations of computers will not only need better and more reliable performance,
they will also need better interfaces, especially man-machine interfaces. Efforts will be
undertaken aimed at establishing provision of user interface management tools, as well as
multi-lingual intelligent objects in a distributed operating environment, Stress will be
placed on systems for the perception and synthesis of information from highly complex
signals. These concern, in particular, human speech recognition and image understanding.
 ---pagebreak---                                           -14
In the majority of IT systems the software component is now seen as the dominant element
of cost. Constraints in European software production capabilities are now seen as the most
critical problem for the IT industry. Tools and methods to support systems integration and
to increase software productivity will be enhanced where significant progress can be
expected. The work will build on existing or emerging standards. Particular attention will
be paid to portability of software, re-usability and design of standardised modules.
Renewed emphasis, concentrating particularly on the transfer of modern design methods
into common use, will be given to improving productivity, quality and security.
Industrialisation of software engineering tools and environments will be encouraged by the
demonstration of applications. This work includes the industrialisation of knowledge
engineering techniques, in particular as complements to existing conventional systems
engineering techniques.
Measures will be undertaken to promote the take up of new software production
technologies and to increase skill levels on a broad scale. This will include training oriented
to industrial needs. These measures will build on the results of projects under ESPRIT,
EUREKA and Member States' programmes concerned with the provision of industrial
methods and tools.
Area 3: Advanced Business and Home Systems; peripherals
Advanced Business and Home Systems will aim for function integration in the business
environment as well as in the home environment. It will also aim at easing the use of
systems. An especially high priority will be given to prenormative work. Distributed
computing including data base management, the corresponding workstations and
microprocessor systems and technologies will be of major concern throughout the activities.
The work in distributed computing will, in particular, concentrate on loosely coupled and
heterogeneous systems. Systems assurance experiments will be carried out, as appropriate.
In this context, the integration of tools and facilities in specific applications of real user
interest will be demonstrated, as well as the integration of different streams of activity
leading to more efficient data flow across organisations.
Two complementary, but interrelated areas are addressed.
R&D work on integrated business systems addresses the information flow across
departments and sites within an enterprise and enables the close integration of various
activities between functional units. It includes the integration of mobile terminals into
business information systems. In this context, systems for cooperative work play an
important role. They allow cooperation through the provision of, e.g., the following
 ---pagebreak---                                             15
facilities: cooperative writing, file processing, project management, decision making,
informal interaction, problem definition and conferencing. The improvement of working
conditions and job-level qualifications are of major concern.
The R&D activities concerning intelligent homes and intelligent buildings are partially
similar to those concerning integrated business, but obey different boundary conditions
concerning functionality and cost. They aim at integrating IT with other building functions
such as security, privacy, voice and document communication, heating, lighting and energy
management. Requirements analysis, functional specifications and prenormative work
include various aspects of quality of life such as ergonomy and improvement of working
conditions.
In the context of business and home systems, peripherals are taking on increasing
importance. The objective of R&D work in peripherals is to reinforce the scientific and
technological bases for new generations of peripherals, which are reliable, cheap and
capable of being produced in large quantities. In order to contribute to the renewal of a
European industry in the field of components and sub-assemblies for peripherals through
 R&D, synergies between producer and user industries need to be established, and a critical
mass must be reached.
The peripherals technology activities include R&D aspects of specific peripheral
technologies for printers, displays, input and storage devices. Special emphasis will be put
on flat panel display technologies, magneto-optical storage systems, non-impact printing
technologies, and scanning technologies.
Specialised technology transfer and training measures in the field of integrated business
systems include demonstrations of advanced IT solutions suited, in particular, for small
enterprises.
Area 4: Computer integrated manufacturing and engineering
The activities aim at providing the technology base for open systems, multivendor systems
and distributed operations in engineering and manufacturing environments as well as to
contribute to better integration of advanced IT systems components in engineering
industries. The work will focus on new generations of basic CIM technologies and on
demonstrating their applicability in selected manufacturing and other engineering domains.
Synergy with the specific programme on industrial and materials technologies foreseen in
Decision 90/.../Euratom, EEC will be assured.
 ---pagebreak---                                           -16-
R&D work will include Technological Infrastructure and Application Experiments.
Technological Infrastructure work will involve the development of the advanced CIM
techniques, methods and tools to facilitate manufacturing and engineering applications
within the different domains where IT is of particular strategic importance. Aimed at
improving cost-efficiency, flexibility and high quality, the approach will be based on open
systems concepts supported by appropriate prenormative work, and will recognise the
multi-site, multi-supplier nature of most engineering enterprises. Topics include logistics
and distribution, communications and architectures for engineering applications, the
management of industrial processes, engineering design, robotics and equipment
technologies (control and instrumentation), mechatronics and microsystems. On-line
quality assurance technologies will be developed to ensure safe and reliable operation of
products and processes throughout their total life cycle.
Building on the results already achieved in ESPRIT, new engineering test-beds will be
addressed. Vendor industries involved include system integration and software houses,
manufacturers of computers and communications equipment, machine tools, robots,
autonomous vehicles, cranes, electronics, control and instrumentation, sensors and
actuators. Work will be geared to serve the small and medium sized users, who form the
majority of all engineering enterprises, as well as the large users who lead the field in the
application of high technology. Collaboration between users and vendors will continue to
be strongly encouraged.
Application experiments to validate advanced IT solutions will be carried out in discrete
parts manufacturing, process industry applications, mass manufacturing, and other
engineering applications. Attention will be paid to cleaner industrial operations.
The existing profile of human resources in this domain does not yet match the demands of
the advanced manufacturing and engineering industries and this will limit progress if not
swiftly addressed. Technology transfer and training activities will be most effective if there
is a multi-disciplinary approach, if users are strongly involved, and if they are closely
coupled with the R&D activities, in some cases actually as part of major projects.
Specifically tailored education and training actions will include the possibility to involve
students and young graduates in demonstrator projects.
Area 5: Basic research
Basic research actions contribute to maintaining and expanding the knowledge and
expertise which underpin the scientific basis of European Information Technology. Areas
that such actions support are selected on the grounds of:
 ---pagebreak---                                            -17-
- Their potential to produce future breakthroughs or important advances even if they have
   no immediately visible application.
- Their ability to benefit from the added value which cooperation on a European scale
   provides.
- Their positioning clearly upstream of R&D efforts, while contributing to the overall aims
   of the programme.
- The reinforcement of interdisciplinary links.
Research is planned for the achievement of low noise and high speed elements through the
use of low temperatures and by incorporation of new high temperature superconductivity
materials. The need for ultra high complexity components, which will build the hardware
base for future massively parallel systems, will lead to research in the nanometre scaling of
electronic circuits. This includes investigations of physical properties of organic and of
optical materials with high potential for application in IT devices and systems. Synergy
with activities in material research carried out in the specific programme on industrial and
materials technologies foreseen in Decision 90/.../Euratom, EEC will be established. The
research of future hardware possibilities will be complemented by activities on the new
generation of hardware design methodologies.
Breakthroughs needed for the effective and efficient software engineering of the future,
and to some extent of computing systems generally, will be predicated on the strengths of
the formal description of systems. Therefore the logical and algebraic foundations of
computer science will be addressed providing the necessary framework for the
development of concurrent systems, specification and verification techniques, as well as the
next generation of programming languages and algorithms. With the target of enabling
reliable distributed systems, basic research will be encouraged on dependable distributed
systems and integrated data bases.
Still existing constraints in the foundations of artificial intelligence are limiting the
necessary improvements in many application areas where a change from currently available
dataprocessing and networking to more intelligent systems and procedures is required. To
help overcome this, basic research will be addressed to massive parallelism,
neurocomputing and other critical issues in this field which include the handling of
uncertainty and knowledge representation, theories of automated manufacture and human-
computer interaction.
These measures in technology transfer and training aim at establishing and maintaining
close links with the industrially-oriented activities within the programme.
 ---pagebreak---                                           18
In the context of basic research, the growing problem of skill shortages will be addressed in
universities and research centres. Both technology transfer and training demand the
emergence of European centres of excellence in different areas of IT. Basic research is
uniquely positioned to play an important role in meeting this demand by acting as a catalyst
for the emergence of such centres of excellence.
 ---pagebreak---                                           19
                                                                                  Annex II
                           Indicative Breakdown of Expenditures
in %, for the period 1990-1994.
Area 1.    Microelectronics                                                  27-31
Area 2.    Information processing systems and software                       23 - 27
Area 3.    Home and business systems; peripherals                            15 -19
Area 4.    Computer integrated manufacturing and engineering                 17-21
Area 5.    Basic research                                                     9-11
The breakdown between different areas does not exclude the possibility that projects could
cover several areas.
 ---pagebreak---                                               -20-
                                                                                                 Annex III
                               Rules for Implementing the Programme
                   and Activities for Dissemination and Exploitation of the Results
 1. The Commission shall implement the programme on the basis of the scientific and
    technical content described in Annex I.
2.  The rules for implementing the programme, referred to in Article 3, comprise
    research and technological development projects, accompanying measures and
    concerted actions.
    The projects shall be the subject of shared-cost research and technological
    development contracts.
    The accompanying measures consist of applying the means to ensure proper technical
    execution, management and evaluation of the programme, as well as adequate
    dissemination and accessibility of the results, and coordination, training and
    consciousness-raising of the participants in the programme.
    The concerted actions are those defined in the Financial Regulation.
3.  The participants in the projects must be natural or legal persons established in the
    Community^, such as universities, research organizations and industrial firms,
    including small and medium-sized enterprises, or associations thereof, in particular
    European Economic Interest Groupings (EEIGs).
    Natural or legal persons established in countries which have concluded agreements
    with the Community foreseeing scientific and technical research, may, based on the
    criterion of mutual advantage, take part in the projects undertaken in the context of
    this programme. The contracting parties under such arrangements shall not benefit
    from Community funding. They shall contribute to the general administrative costs.
4.  The choice of projects shall be carried out according to the following order of priority,
    the first method being the rule, the second the exception:
(6) For the purposes of this programme, the European Centre for Nuclear Research (CERN), whose
    headquarters are in Geneva and most of whose installations are on Community territory, may be a party to
    the contracts.
 ---pagebreak---                                           21
    The participants in the projects shall be selected on the basis of the ordinary
    procedure of calls for proposals referred to in Article 6 (3) and published in the
    Official Journal of the European Communities.
    The Commission may also accept proposals according to an exceptional procedure
    and under the conditions mentioned below, when they make a particularly promising
    and significant contribution as regards the originality of the theme proposed, the
    novelty of the scientific and technical approach and the methodology of execution,
    also taking into account the particular nature of the proposers.
    A favourable technical evaluation of such proposals shall not by itself be a sufficient
   justification for accepting a project; this exceptional procedure may only apply after
    verification that the nature of the project, as defined above, does not justify the use of
    the normal procedure for calls for proposals.
    The exceptional procedure must be completed before the ordinary procedure in such
    a way that the available amount for the Community's financial participation in
   projects retained by the ordinary procedure can be determined precisely. The closing
   date for the exceptional procedure shall be published each year in the Official Journal.
   The amount of the financial participation of the Community for all the projects
   retained by the exceptional procedure will be decided each year, in relation to the
   projects selected according to particularly strict criteria of excellence. In any case, this
   amount may not exceed 15%; it may be revised each year in the light of experience.
   The Commission shall draw up a vade mecum setting out all the rules applicable to
   this exceptional procedure in order to guarantee full transparency.
5. The projects must involve at least two mutually independent partners established in
   different Member States.
6. The Commission may encourage the participants to form a European Economic
   Interest Grouping (EEIG) or make other arrangements for carrying out projects, such
   as those on a large scale, permitting decentralized management adapted to the specific
   requirements of the project.
7. The knowledge acquired during the course of the projects shall be disseminated on the
   one hand within the specific programme and on the other hand by means of a
   centralized activity, pursuant to the decision referred to in the third paragraph of
   Article 4 in Decision 90/221 /Euratom, EEC.
 ---pagebreak---                                     FINANCIAL STATEMENT
1. BUDGET HEADING AND TITLE
   Subsection 6, Item B 6111
   Specific programme of Community RTD activities in the field of Information
   Technologies (1990-1994)
2. LEGAL BASE
   Article 130 Q (2) of the Treaty.
3. OBJECTIVES AND DESCRIPTION
   See Annex I of the proposal.
4. FINANCIAL IMPLICATIONS
   Amounts deemed necessary in MioECU:
   Programme implementation                                             1338.48
   Centralised action for dissemination and valorisation                  13.52
   TOTAL                                                                1352.00
   The indicative internal breakdown of the 1338.48 MioECU for the programme
   implementation is given in Annex II of the proposal.
   Indicative multiannual schedules
   in MioECU           1990             1991          1992   1993   1994*     TOTAL
   Commitments             -         345.00         19526  512.00  286.22     1338.48
   Payments                            80.00        290.00 305.00  663.48     1338.48
   * for the payment appropriations: 1994 and beyond.
   The definitive yearly amounts will be determined by the budgetary authority in
   accordance with the financial perspectives for the period 1990-1992 (annexed to the
   Interinstitutional Agreement of 29 June 1988) and with subsequent financial
   perspectives which may be adopted for 1993 and 1994.
 ---pagebreak---  5. STAFF AND ADMINISTRATIVE EXPENDITURE
    In addition to the principal means of action, which are contracts (annex III), the above
    amounts include programme-related staff and administrative expenditure estimated at
    no more than 94 MioECU.
    The expenditure on staff will not exceed 4% of the amount deemed necessary for the
    programme implementation. This implies a maximum of 301 statutory posts (A, B
    and/or C) at any given time during the life of the programme. The infrastructure
    costs related to statutory staff will be borne by Part A of the budget.
6.  IMPLICATIONS FOR REVENUE
    The contributions by third country contractors towards the cost of administration of
    the programme will be reused pursuant to articles 27.2 and 96 of the Financial
    Regulation*1)
7.  TYPE OF CONTROL
    Control will be exercised by:
    - the Programme Management Committee (scientific control)
    - the services of the DG responsible for the execution of the programme, possibly
       assisted by independent experts
    - the Commission's Financial Controller.
    In accordance with Article 2 of the Financial Regulation^), the use of appropriations
    will be subject to analyses of cost-effectiveness and the realization of quantified
    objectives will be monitored.
    External audits may be carried out by the Court of Auditors in accordance with the
    Treaty.
(1) Financial Regulation of 21 December 1977, as last amended by Regulation 610/90 of 13 Mardi 1990.
 ---pagebreak---                       Competitiveness and Employment Impact Statement
  Subject:   Proposal for a Council Decision concerning a specific programme of research
             and technological development in thefieldof Information Technology (1990-
              1994)
  I    Reason for Introducing Measure
      The proposal is being submitted in order to implement the Information Technology
      part of the third Framework Programme of Community activities in the field of
      research and development (1990-1994).
 II   Features of the Businesses in Question
      The proposal is of an industrial nature and is primarily directed to enterprises in
      Information Technology. This sector includes a large proportion of SMEs, which
      already participate in the ESPRIT Programme to a considerable extent. In fact SMEs
      participate in 80% of projects in the second phase of ESPRIT.
      The businesses in question are spread throughout the Member States including
      regions which are eligible for regional aid and eligible under the ERDF.
 III Obligations Directly Imposed on Businesses
     The proposal confirms the principles of existing administrative procedures for
     participation in the programme and takes account of the continuous need for efforts
     in terms of encouraging industrial actors towards further transnational initiatives,
     including an increase of the potential for such cooperation of organizations in
     peripheral Member States.
     There are no disadvantages to enterprises except for the additional costs, quite
     minimal, relating to the preparation of unsuccessful proposals.
IV Indirect Obligations Likely to be imposed on businesses by local authorities
     None are envisaged.
 ---pagebreak---  V     Special measures in respect of SMEs
      The major advantage for SMEs is that all signatories to contracts are treated on an
      equal footing, so that even with a relatively small contribution to make, a contractor
      has the right of full access to and exploitation of results. SMEs participate in all
      technology areas of ESPRIT and in both large pre-planned projects and smaller more
      speculative projects. Their participation is far from secondary. 92 ESPRIT projects
      (25%) have SMEs operating as prime contractors.
      With respect to the technical content of the Specific Programme, new increased
      emphasis will be given to areas such as software, computer integrated manufacturing
      and engineering which are particularly suited to SMEs because of their large presence
      and vital impact in these areas. Aside from the R&D activity per se, accompanying
      measures, some aimed specifically at SMEs, constitute an integral part of the current
      proposal.
VI Likely Effects on Competitiveness of Businesses and on Employment
      The effects on competitiveness and employment (inasmuch as these can be measured)
     of R&D programmes such as the Specific Programme in IT are and will continue to be
     of an indirect and positive nature in the medium term. ESPRIT has so far permitted
     over 410 SMEs to participate in research and development, thereby enhancing their
     technological capabilities and their international market prospects. An independent
     high-level review of ESPRIT conducted in 1939 report that SMEs are positive about
     the effects of ESPRIT on their competitive position. Beneficial effects quoted include
     : improved access to markets, better understanding of international market needs,
     improved international marketing contacts, improved corporate image and
     acceptability to international customers. Without ESPRIT many SMEs would not
     have the funds available for significant research activity nor would they be able to
    benefit from international collaboration. The Programme is expected to offer to a
    considerable number of high-tech-oriented SMEs chances to participate in
    international projects.
VII Consultation of Industry
    The proposal is the result of a broad consultation of representatives from Community
    industry and science. The proposal will be submitted to the Economic and Social
    Committee for opinion.
 ---pagebreak---  ---pagebreak---                                                                                    ISSN 0254-1475
                                                                    COM(90) 153 final
                                                       DOCUMENTS
 EN                                                                                           16
                                 Catalogue number : CB-CO-90-236-EN-C
                                                               ISBN 92-77-60682-7
PRICE                         1-30 pages: 3.50 ECU       per additional 10 pages: t.25 ECU
Office for Official Publications of the European Communities
L-2985 Luxembourg