Article 1 
1. In implementing the Seventh Framework Programme the Community shall make a financial contribution to the Eurostars Joint Programme undertaken jointly by Belgium, Bulgaria, the Czech Republic, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, Sweden and the United Kingdom (the participating Member States), and Iceland, Israel, Norway, Switzerland and Turkey (the other participating countries). 2. The Community shall pay a financial contribution amounting to the equivalent of a maximum of one third of the effective contributions of the participating Member States and the other participating countries, within a ceiling of EUR 100 million for the duration of the Seventh Framework Programme, in accordance with the principles set out in Annex I. 3. The Community financial contribution shall be paid from the appropriation in the general budget of the European Union allocated to the ‘Research for the benefit of SMEs’ part of the Specific Programme ‘Capacities’.
Article 2 
The Community financial contribution shall be conditional upon: (a) demonstration by the participating Member States and the other participating countries that the Eurostars Joint Programme as described in Annex I has been efficiently set up; (b) the formal establishment or designation by the participating Member States and the other participating countries or organisations designated by the participating Member States and the other participating countries, of a dedicated implementation structure with legal personality, which shall be responsible for the implementation of the Eurostars Joint Programme and for receiving, allocating and monitoring the Community financial contribution in the framework of indirect centralised management in accordance with Articles 54(2)(c) and 56 of the Financial Regulation and Articles 35, 38(2) and 41 of the Implementing Rules; (c) the establishment of an appropriate and efficient governance model for the Eurostars Joint Programme in conformity with Annex II; (d) efficient carrying out of the activities under the Eurostars Joint Programme described in Annex I by the dedicated implementation structure, which entails the launch of calls for proposals for the award of grants; (e) commitments by the participating Member States and the other participating countries to contribute to the financing of the Eurostars Joint Programme and the effective payment of their financial contribution, in particular the funding of participants in the selected Eurostars projects following the calls for proposals launched under the Eurostars Joint Programme; (f) compliance with the State aid rules of the Community, and in particular the rules set out in the Community Framework for State Aid for Research, Development and Innovation ( 11 ) ; (g) ensuring a high level of scientific excellence and observance of ethical principles in accordance with the general principles of the Seventh Framework Programme, of gender mainstreaming and gender equality and of sustainable development, and (h) the formulation of provisions governing the intellectual property rights stemming from the activities carried out under the Eurostars Joint Programme and the implementation and coordination of the R & D programmes and activities undertaken at national level by the participating Member States and the other participating countries in such a way that they aim at promoting the creation of such knowledge and at supporting wide use and dissemination of the knowledge created.
Article 3 
In the implementation of the Eurostars Joint Programme, the granting of financial support to participants in Eurostars projects selected centrally in accordance with Annex II following calls for proposals for the award of grants, shall be subject to the principles of equal treatment and transparency. The financial support shall be granted on the basis of scientific excellence and, taking into account the specific nature of the SME target group, the socioeconomic impact at European level and relevance to the overall objectives of the programme, in accordance with the principles and procedures set out in Annex I.
Article 4 
The arrangements for the Community financial contribution and the rules relating to financial liability and intellectual property rights as well as the detailed rules for the provision of financial support by the dedicated implementation structure to third parties shall be established by means of a general agreement to be concluded between the Commission, on behalf of the Community, and the dedicated implementation structure, and annual financing agreements.
Article 5 
In accordance with Article 18(2) of the Financial Regulation, the interest generated by the Community financial contribution allocated to the Eurostars Joint Programme shall be considered as assigned revenue. The maximum Community contribution indicated in Article 1 of this Decision may be increased accordingly by the Commission.
Article 6 
If the Eurostars Joint Programme is not implemented or is implemented inadequately, partially or late, or if the participating Member States and the other participating countries do not contribute, contribute partially or late to the financing of the Eurostars Joint Programme, the Community may reduce, withhold or terminate its financial contribution in line with the actual implementation of the Eurostars Joint Programme and the amount of public funding allocated by the participating Member States and the other participating countries for the implementation of the Eurostars Joint Programme, on the terms laid down in the agreement to be concluded between the Commission and the dedicated implementation structure.
Article 7 
In implementing the Eurostars Joint Programme, the participating Member States and the other participating countries shall take the legislative, regulatory, administrative or other measures necessary for protecting the Communities’ financial interests. In particular, the participating Member States and the other participating countries shall take the necessary measures to ensure full recovery of any amounts due to the Community in accordance with Article 54(2)(c) of the Financial Regulation and Article 38(2) of the Implementing Rules.
Article 8 
The Commission and the Court of Auditors may, through their officials or agents, carry out all the checks and inspections needed to ensure proper management of the Community funds and protect the financial interests of the Community against any fraud or irregularity. To this end, the participating Member States and the other participating countries and the dedicated implementation structure shall, in due course, make all relevant documents available to the Commission and the Court of Auditors.
Article 9 
The Commission shall communicate all relevant information to the European Parliament, the Council and the Court of Auditors. The participating Member States and the other participating countries are invited to submit to the Commission, through the dedicated implementation structure, any additional information required by the European Parliament, the Council and the Court of Auditors concerning the financial management of the dedicated implementation structure.
Article 10 
Any Member State may join the Eurostars Joint Programme in accordance with the criteria set out in Article 2(e) to (h).
Article 11 
Any third country may join the Eurostars Joint Programme in accordance with the criteria set out in Article 2(e) to (h), provided that such participation is contemplated by the relevant international agreement and provided that both the Commission and the participating Member States and the other participating countries agree to it.
Article 12 
Conditions relating to the Community financial contribution concerning the participation in the Eurostars Joint Programme of any country associated with the Seventh Framework Programme or, where essential for implementing the Eurostars Joint Programme, of any other country, may be agreed by the Community on the basis of the rules set out in this Decision and of any implementing rules and arrangements.
Article 13 
1. The annual report on the Seventh Framework Programme presented to the European Parliament and the Council pursuant to Article 173 of the Treaty shall include a summary of the activities of the Eurostars Joint Programme based on the annual report to be provided by the dedicated implementation structure to the Commission. 2. An interim evaluation of the Eurostars Joint Programme shall be carried out by the Commission two years after the start of the Eurostars Joint Programme and shall cover progress towards the objectives set out in Annex I. The evaluation shall also include recommendations on the most appropriate ways to further enhance scientific, management and financial integration and assess the ability, of R & D performing SMEs in particular, to access the Eurostars Joint Programme and the quality and efficiency of its implementation. The Commission shall communicate the conclusions thereof, accompanied by its observations and, where appropriate, proposals for the amendment of this Decision, to the European Parliament and the Council. 3. At the end of the Eurostars Joint Programme, the Commission shall conduct a final evaluation of the Programme. The results of the final evaluation shall be presented to the European Parliament and the Council.
Article 14 
This Decision shall enter into force on the third day following its publication in the Official Journal of the European Union .
Article 15 
This Decision is addressed to the Member States.