EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

On 15 November 2013 the Council authorised the Commission to open negotiations, on behalf of the European Union and the European Atomic Energy Community, with the Swiss Confederation in order to conclude an Agreement between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy.

These negotiations started on 29 November 2013. Further negotiating rounds took place on 5 and 16 December 2013, and 13 January and 12 February 2014. Following the outcome of the Swiss Referendum of 9 February 2014, which had a direct impact on the Swiss ability to sign the Croatia Protocol to the Free Movement of Persons Agreement, negotiations were put on hold.

On 6 May 2014 the Council adopted a Statement on Switzerland, which stipulated that  pending the signing of the Protocol, negotiations on the full participation of Switzerland in the two programs [Horizon 2020 and Erasmus+] should be officially suspended. The Council Statement linked the extension of the Free Movement of Persons Agreement to Croatia to ‘full association’, hence opening up the potential for something less than ‘full’ association.

A solution has been found which is in line with the Council’s statement as it provides for less than a 'full association' while preserving a balanced approach of mutual interest which would satisfy both parties, i.e. association to only limited parts of Horizon 2020, namely Pillar 1 (European Research Council, Marie Skłodowska-Curie actions, Future and Emerging Technologies and Research Infrastructures) and actions under 'Spreading Excellence and Widening Participation', as well as the entire Euratom Programme and ITER. This limited association would become applicable from 15 September 2014 but association to the whole Horizon 2020 Programme would be expanded from 2017 onwards, depending on Switzerland's ratification of the Croatia Protocol to the Free Movement of Persons Agreement.

Furthermore, the negotiating directives which the Council adopted in November 2013 requested the Commission to include two ‘guillotine clauses’ in the Agreement text, linking the association agreement to the Free Movement of Persons Agreement and to the Swiss ratification of the Croatia Protocol to the Free Movement of Persons Agreement. These two guillotine clauses are retained.

This solution was presented to the Research Working Party on 14 July 2014 and was favourably received. Following further negotiations, agreement on the text was reached with Switzerland on 24 July 2014. The text of the Agreement is attached in annex.

The Commission proposes that the Council decides on the signature and provisional application of the Agreement on behalf of the European Union. For the conclusion of the Agreement on behalf of the European Atomic Energy Community, the Commission proposes that the Council gives its approval, pursuant to the second paragraph of Article 101 of the Treaty establishing the EAEC.

The attached proposal is for a Council decision on the signature and provisional application of the Agreement. The Commission proposes that the Council:

– decides on the signature and provisional application of the Agreement on behalf of the European Union.

2.           LEGAL ELEMENTS OF THE PROPOSAL

The proposal for a Council decision is based on Article 186, Article 218(5) and Article 218(8) of the Treaty on the Functioning of the European Union.

3.           BUDGETARY IMPLICATION

The Legislative Financial Statement presented with this Decision sets out the indicative budgetary implications.

In the light of the above considerations, the Commission requests the Council:

– To decide on the signature and provisional application of the Agreement on behalf of the European Union.

– To authorise the negotiator of the Agreement to sign, on behalf of the European Union, the Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy.

2014/0306 (NLE)

Proposal for a

COUNCIL DECISION

on the signing and provisional application on behalf of the Union of the Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 186 in conjunction with Article 218(5) and the first subparagraph of Article 218(8) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)       On 15 November 2013 the Council authorised the Commission to open negotiations, on behalf of the Union and Euratom, with the Swiss Confederation, in order to conclude an Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy.

(2)       These negotiations have been successfully completed and subject to its possible conclusion at a later date, the Agreement should be signed on behalf of the European Union.

(3)       The conclusion of the Agreement is subject to a separate procedure as regards matters falling in the scope of the Treaty of the European Atomic Energy Community.

(4)       The Agreement should be applied on a provisional basis with effect from 15 September 2014.

HAS DECIDED AS FOLLOWS:

Article 1

The signing of the Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy is hereby approved on behalf of the European Union, subject to the conclusion of that Agreement.

The text of the Agreement is attached to this Decision.

Article 2

The Council Secretariat General shall establish the instrument of full powers to sign the Agreement, subject to its conclusion, for the person(s) indicated by the negotiator of the Agreement.

Article 3

The Agreement shall be applied provisionally from 15 September 2014, in accordance with Article 15 of the Agreement, pending its entry into force.

Article 4

This Decision shall be published in the Official Journal of the European Union.

Done at Brussels,

                                                                       For the Council

                                                                       The President

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

              1.1.    Title of the proposal/initiative

              1.2.    Policy area(s) concerned in the ABM/ABB structure

              1.3.    Nature of the proposal/initiative

              1.4.    Objective(s)

              1.5.    Grounds for the proposal/initiative

              1.6.    Duration and financial impact

              1.7.    Management mode(s) envisaged

2.           MANAGEMENT MEASURES

              2.1.    Monitoring and reporting rules

              2.2.    Management and control system

              2.3.    Measures to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

              3.1.    Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

              3.2.    Estimated impact on expenditure

              3.2.1. Summary of estimated impact on expenditure

              3.2.2. Estimated impact on operational appropriations

              3.2.3. Estimated impact on appropriations of an administrative nature

              3.2.4. Compatibility with the current multiannual financial framework

              3.2.5. Third-party contributions

              3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the proposal/initiative

Proposal for a Council Decision on the signing and provisional application on behalf of the Union of the Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating Switzerland's participation in the ITER activities carried out by Fusion for Energy.

1.2.        Policy area(s) concerned in the ABM/ABB structure[1]

Title 8: Research and Innovation Policy strategy and coordination of the Directorates-General RTD, JRC, AGRI, EAC, CNECT, ENER, ENTR and MOVE

Title 10 – Direct research (JRC)

1.3.        Nature of the proposal/initiative

þ The proposal/initiative relates to a new action

¨ The proposal/initiative relates to a new action following a pilot project/preparatory action[2]

¨ The proposal/initiative relates to the extension of an existing action

¨ The proposal/initiative relates to an action redirected towards a new action

1.4.        Objective(s)

1.4.1.     The Commission's multiannual strategic objective(s) targeted by the proposal/initiative

To associate Switzerland to the indirect and direct actions under Horizon 2020 and Euratom Programmes and regulating its participation in the ITER activities carried out by Fusion for Energy and to ensure institutional representation of Switzerland in the respective Committees and bodies; to receive Swiss financial and technical contribution for the implementation of Horizon 2020, the Euratom Programme and ITER. Policy measure to encourage cooperation between the EU and Euratom and Switzerland in view of the importance of S&T research for the Parties, on-going joint implementation of research programmes of mutual interest, to cooperate and give access to activities carried out in Horizon 2020, Euratom ITER and the Development of Fusion for Energy (F4E).

1.4.2.     Specific objective(s) and ABM/ABB activity(ies) concerned

Specific objective No

ABM/ABB activity(ies) concerned Switzerland's association to Horizon 2020 will allow to reinforce excellence in science helping to build the Innovation Union.

1.4.3.     Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

This Agreement should enable Switzerland and the EU to derive mutual benefit through participation in Horizon 2020. The EU will benefit from the excellent Swiss research and innovation capacity, and its labs and institutes in fission and fusion, making it an excellent partner in Euratom research.

1.4.4.     Indicators of results and impact

Specify the indicators for monitoring implementation of the proposal/initiative.

-         Number of Swiss proposals/applicants compared to the number of proposals/applicants retained for funding under Programmes covered by this agreement;

-         Number of Swiss entities obtaining funding and the share of that funding in the Programmes covered by the Agreement compared to its relative participation in the Programmes and number of grant agreements and contracts signed involving Swiss partners;

- Swiss contribution to realising the Innovation Union.

1.5.        -         Grounds for the proposal/initiative

1.5.1.     Requirement(s) to be met in the short or long term

TFEU Arts. 186, 218(6) and (8) and Euratom Treaty Art. 101.

1.5.2.     Added value of EU involvement:

Switzerland pays a financial contribution for participation which is added to the EU budget. It was the biggest financial contributor of all Associated Countries to FP7. It is also an active partner in Art 185 and 187 initiatives.

1.5.3.     Lessons learned from similar experiences in the past

Switzerland has been associated to the Framework Programmes for S&T Development since 2004 and participated in them from 1987. It is the only third country associated to Euratom and ITER (since 1979). On average, Swiss participants' success rate is much higher than EU MSs.

1.5.4.     Compatibility and possible synergy with other appropriate instruments

Horizon 2020 is compatible with other Union funding instruments and complementary to participation in COSME and GALILEO allowing synergy in funding and better valorisation of Horizon 2020 association.

1.6.        Duration and financial impact

þ Proposal/initiative of limited duration

– þ  Proposal/initiative in effect from [15/09/2014/] to [31/12/2020] for Horizon 2020

– þ  Proposal/initiative in effect from [15/09/2014/] to [31/12/2018] for Euratom programme

– þ  Proposal/initiative in effect from [15/09/2014/] to [31/12/2020] for Regulation of Swiss participation in ITER

– þ  Financial impact from 2014 to 2020

¨ Proposal/initiative of unlimited duration

– Implementation with a start-up period from YYYY to YYYY,

– followed by full-scale operation.

1.7.        Management mode(s) planned[3]

For the 2014 budget

þ Direct management by the Commission

– þ by its departments, including by its staff in the Union delegations;

– þ  by the executive agencies; ¨ Shared management with the Member States

þ Indirect management by delegating implementation tasks to:

– ¨ third countries or the bodies they have designated;

– ¨ international organisations and their agencies (to be specified);

– ¨ the EIB and the European Investment Fund;

– ¨ bodies referred to in Articles 208 and 209 of the Financial Regulation;

– ¨ public law bodies;

– ý  bodies set up by the Communities

– ¨ bodies governed by private law with a public service mission to the extent that they provide adequate financial guarantees;

– ¨ bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that provide adequate financial guarantees;

– ¨ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

– If more than one management mode is indicated, please provide details in the "Comments" section.

Comments

Management will be through Commission services and F4E for ITER. The Commission represents Euratom in the governing bodies of both ITER Organization and F4E.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting rules

Specify frequency and conditions.

2.2.        Management and control system

The Commission will regularly evaluate all the actions carried out under the Agreement, and monitor its implementation in the Switzerland/Communities Research Committee, set up in Article 5 of the Framework Agreement. Management and control system

2.2.1.     Risk(s) identified

None identified.

2.2.2.     Information concerning the internal control system set up

Agreement's Annex B specifies the rules governing Switzerland's financial contribution to Horizon 2020, Euratom and F4E activities (ITER).

2.2.3.     Estimate of the costs and benefits of the controls and assessment of the expected level of risk of error

N/A

2.3.        Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures.

Such measures are laid down in Annex C of the Agreement, namely:

- Audits: grant agreements and/or contracts concluded with participants in the programme established in Switzerland may provide for scientific, financial, technological or other audits to be conducted at any time on the premises of the participants and of their subcontractors by Commission agents, the European Court of Auditors, or by other persons mandated by the Commission, in accordance with Council Regulation (EC, Euratom) No 1605/2002[4], as last amended Regulation (EU Euratom) No 1081/2010[5] and Commission Regulation (EC, Euratom) No 2342/2002[6], as last amended by Regulation (EC Euratom) No 478/2007[7] and the Regulation of the European Parliament and of the Council (EU) No. 966/2012[8] and Commission Delegated Regulation (EU) No 1268/2012[9] with the other rules referred to in this Agreement

The audits may be conducted after Horizon 2020 (2014-2020) and the Euratom Programme 2014-2018 expires, on the terms laid down in the grant agreements and/or contracts in question.

-         On-the-spot checks and inspections: Within the framework of this Agreement, the Commission (OLAF) shall be authorised to carry out on-the-spot checks and inspections on Swiss territory, in accordance with the terms and conditions laid down in Council Regulation (Euratom, EC) No 2185/96[10] and Regulation (EU, Euratom) 883/2013[11] .

-         Administrative measures and penalties: Without prejudice to application of Swiss criminal law, administrative measures and penalties may be imposed by the Commission in accordance with the Regulation of the European Parliament and of the Council (EU) No 966/2012 and Commission Delegated Regulation (EU) No. 1268/2012, and with Council Regulation (EC, Euratom) No. 2988/95[12] on the protection of the European Communities’ financial interests.

-         Recovery measures are envisaged and are enforceable on Swiss territory.

3.           ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.        Heading(s) of the multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number […][Heading………………………………………...……….] || Diff./non-diff. ([13]) || from EFTA countries[14] || from candidate countries[15] || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

1a || 08 01 Administrative expenditure Research 08 01 05 01 Expenditure related to Research Staff 08 01 05 03 Other management expenditure for Research || non-diff. || YES || YES || YES || YES

· New budget lines requested

In order of multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number […][Heading………………………………………...……….] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 21(2)(b) of the Financial Regulation

|| […][XX.YY.YY.YY] || || YES/NO 0 || YES/NO 0 || YES/NO 0 || YES/NO

3.2.        Estimated impact on expenditure

[This section should be filled in using spreadsheet on budget data of an administrative nature (second document in annex to this financial statement) and uploaded to CISNET for interservice consultation purposes.]

3.2.1.     Summary of estimated impact on expenditure

EUR million (to three decimal places)

Heading of multiannual financial framework || 1a || Competitiveness for Growth and Employment

DG: Research & Innovation || || || 2014[16] || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Ÿ Operational appropriations || || || || || || || ||

Number of budget line || Commitments || (1) || || || || || || || ||

Payments || (2) || || || || || || || ||

Number of budget line || Commitments || (1a) || || || || || || || ||

Payments || (2a) || || || || || || || ||

Appropriations of an administrative nature financed from the envelope of specific programmes[17] 08 01 05 08 01 05 01 08 01 05 03 || 0.068 0.064 0.004 || 0.232 0.218 0.014 || 0.232 0.218 0.014 || 0.232 0.218 0.014 || 0.232 0.218 0.014 || 0.232 0.218 0.014 || 0.232 0.218 0.014 || 1.460 1.372 0.088

Number of budget line || 08 01 05 || (3) || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

TOTAL appropriations for DG Research & Innovation || Commitments || =1+1a +3 || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

Payments || =2+2a +3 || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

TOTAL appropriations for HEADING <….> of the multiannual financial framework || Commitments || =4+ 6 || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

Payments || =5+ 6 || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

If more than one heading is affected by the proposal / initiative:

Ÿ TOTAL operational appropriations || Commitments || (4) || || || || || || || ||

Payments || (5) || || || || || || || ||

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

TOTAL appropriations under HEADINGS 1 to 4 of the multiannual financial framework (Reference amount) || Commitments || || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

Payments || || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

Heading of multiannual financial framework || 5 || " Administrative expenditure "

EUR million (to three decimal places)

|| || || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: Research & Innovation ||

Ÿ Human resources || || || || || || || ||

Ÿ Other administrative expenditure || || || || || || || ||

TOTAL DG <…….> || Appropriations || || || || || || || ||

TOTAL appropriations for HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.009 || 0.032 || 0.032 || 0.032 || 0.032 || 0.032 || 0.032 || 0.201

EUR million (to three decimal places)

|| || || 2014[18] || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.077 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 1.661

Payments || 0.077 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 1.661

3.2.2.     Estimated impact on operational appropriations

– þ  The proposal/initiative does not require the use of operational appropriations

– ¨  The proposal/initiative requires the use of operational appropriations, as explained below:

Commitment appropriations in EUR million (to three decimal places)

Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || Enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

OUTPUTS

Type[19] || Average cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No || Cost || No total || Total cost

SPECIFIC OBJECTIVE No 1[20] ... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Subtotal for specific objective No 1 || || || || || || || || || || || || || || || ||

SPECIFIC OBJECTIVE NO 2 ... || || || || || || || || || || || || || || || ||

- Output || || || || || || || || || || || || || || || || || ||

Subtotal for specific objective No 2 || || || || || || || || || || || || || || || ||

TOTAL COST || || || || || || || || || || || || || || || ||

3.2.3.     Estimated impact on appropriations of an administrative nature

3.2.3.1.  Summary

– ¨  The proposal/initiative does not require the use of appropriations of an administrative nature

– þ  The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

|| 2014[21] || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

HEADING 5 of the multiannual financial framework || 0.009 || 0.032 || 0.032 || 0.032 || 0.032 || 0.032 || 0.032 || 0.201

Human resources || || || || || || || ||

Other administrative expenditure || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || || || || || || || ||

Outside HEADING 5[22] of the multiannual financial framework || || || || || || || ||

Human resources || 0.064 || 0.218 || 0.218 || 0.218 || 0.218 || 0.218 || 0.218 || 1.372

Other expenditure of an administrative nature || 0.004 || 0.014 || 0.014 || 0.014 || 0.014 || 0.014 || 0.014 || 0.088

Subtotal outside HEADING 5 of the multiannual financial framework || 0.068 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 0.232 || 1.460

TOTAL || 0.077 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 0.264 || 1.661

The human resources appropriations required will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.3.2.  Estimated requirements of human resources

– ¨  The proposal/initiative does not require the use of human resources.

– þ  The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

Ÿ Establishment plan posts (officials and temporary staff) || || || ||

XX 01 01 01 (Headquarters and Commission’s Representation Offices) || || || || || || ||

XX 01 01 02 (Delegations) || || || || || || ||

08 01 05 01 (Indirect research) || 0.6 || 2 || 2 || 2 || 2 || 2 || 2

10 01 05 01 (Direct research) || || || || || || ||

Ÿ External staff (in Full Time Equivalent unit: FTE)[23] ||

XX 01 02 01 (CA, SNE, INT from the "global envelope") || || || || || || ||

XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) || || || || || || ||

XX 01 04 yy[24] || - at Headquarters || || || || || || ||

- Delegations || || || || || || ||

XX 01 05 02 (CA, SNE, INT - Indirect research) || || || || || || ||

10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

Other budget lines (specify) || || || || || || ||

TOTAL || || || || || || ||

XX is the policy area or budget title concerned.

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff || Preparation and meetings of Joint Committee foreseen and several missions ensuring the good functioning and implementation of the Agreement, as well as regular review and follow-up.

External staff ||

3.2.4.     Compatibility with the current multiannual financial framework

– þ  Proposal/initiative is compatible the current multiannual financial framework.

– ¨  Proposal/initiative will entail reprogramming of the relevant heading in the multiannual financial framework.

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts.

– ¨  Proposal/initiative requires application of the flexibility instrument or revision of the multiannual financial framework[25].

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts.

3.2.5.     Third-party contributions

– ¨ The proposal/initiative does not provide for co-financing by third parties.

Appropriations in EUR million (to 3 decimal places)

|| 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || Total

Specify the co-financing body || pm || pm || pm || pm || pm || pm || pm || pm

TOTAL appropriations cofinanced || pm || pm || pm || pm || pm || pm || pm || pm

3.3.        Estimated impact on revenue

– ¨  Proposal/initiative has no financial impact on revenue.

– þ  Proposal/initiative has the following financial impact:

– ¨         on own resources

– þ         on miscellaneous revenue

EUR million (to three decimal places)*

Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative[26]

2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

6013 - Horizon 2020 - Fission + JRC - Fusion - ITER || || 34.503 1.838 4.452 26.670 || 114.251 4.916 4.754 32.234 || 120.164 6.566 5.118 11.930 || 408.023 6.735 5.839 11.843 || 431.961 6.902 6.214 10.835 || 461.596 7.636 6.125 9.824 || 504.525 8.125 6.518 4.924

*The amounts for 2014-2020 are in MEURO and are to be considered as indicative figures. The contribution finally requested will take account of corrections over the previous year.

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected.

2014-2016

Budget lines for Pillar I and Spreading Excellence and Widening Participation: 08.02 50 01, 09.04 50 01, 15.03 50 01 and 08 03 50 01, 08 04 50 01, 10 03 50 01.

From 2017

Budget lines: 02 04 50 01, 05 09 50 01, 06 03 50 01, 08 02 50 01, 09 04 50 01, 10.02 50 01, 15.03 50 01, 32.04 50 01 and the appropriations accruing from third country (i.e. non-European Economic area) financial contributions to Horizon 2020.

08 03 50 01, 08 04 50 01, 10 03 50 01 - Appropriations accruing from contributions from (non-European Economic Area) third parties to research and technological development.

Specify the method for calculating the impact on revenue.

The financial contribution of Switzerland is calculated as follows:

For 2014 the calculation has been based on GDP of Switzerland in 2012 as follows:

- Switzerland’s participation in the first pillar of Horizon 2020 and actions under Spreading Excellence and Widening Participation, as well as FP Euratom (except the fusion part), pro rata 7/24, ( CH GDP (2012)/ EU 28 GDP);

- Switzerland’s participation in ITER, and fusion part of Euratom, 12/12, = (CH GDP (2012)/ EU 28 GDP+ CH GDP).

For 2015-2020:

- Switzerland’s participation in the first pillar of Horizon 2020 and actions under Spreading Excellence and Widening Participation, as well as FP Euratom (except for the fusion part) = CH GDP (2013)/ EU 28 GDP reduced by the part of the calls for proposals from 2015 budget that close before 15/09/2014;

- Switzerland’s participation in ITER, as well as the fusion part of FP Euratom, = CH GDP (2013)/ EU 28 GDP+ CH GDP.

[1]               ABM: activity-based management – ABB: activity-based budgeting.

[2]               As referred to in Article 54(2)(a) or (b) of the Financial Regulation.

[3]               Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[4]               OJ L 248, 16.9.2002, p.1.

[5]               OJ L 311, 26.11.2010, p.9.

[6]               OJ L 357, 31.12.2002, p.1.

[7]               OJ L 111, 28.4.2007, p.13.

[8]               OJ L298, 26.10.2012, p.1.

[9]               OJ L362, 31.12.2012, p.1.

[10]             OJ L 292, 15.11.1996, p.2.

[11]             OJ L 248, 18.9.2013, p.1.

[12]             OJ L312, 23.12.1995, p.1.

[13]             Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations.

[14]             EFTA: European Free Trade Association.

[15]             Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

[16]             Year N is the year in which implementation of the proposal/initiative starts.

[17]             Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.

[18]             Year N is the year in which implementation of the proposal/initiative starts.

[19]             Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

[20]             As described in point 1.4.2. ‘Specific objective(s)…’

[21]             Year N is the year in which implementation of the proposal/initiative starts.

[22]             Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct research.

[23]             CA= Contract Staff; LA = Local Staff; SNE= Seconded National Expert; INT = agency staff; JED= Junior Experts in Delegations).

[24]             Sub-ceiling for external staff covered by operational appropriations (former "BA" lines).

[25]             See points 19 and 24 of the Interinstitutional Agreement (for the period 2007-2013).

[26]             As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25% for collection costs.

Agreement for scientific and technological cooperation between the European Union and European Atomic Energy Community and the Swiss Confederation associating the Swiss Confederation to Horizon 2020 - the Framework Programme for Research and Innovation and the Research and Training Programme of the European Atomic Energy Community complementing Horizon 2020; and regulating the Swiss Confederation’s participation in the ITER activities carried out by Fusion for Energy

THE EUROPEAN UNION AND THE EUROPEAN ATOMIC ENERGY COMMUNITY,

 

(hereinafter referred to respectively as ‘the Union’ and ‘Euratom’),

 

of the one part,

and

THE SWISS CONFEDERATION,

(hereinafter referred to as Switzerland),

of the other part,

(hereinafter referred to as the ‘Parties’),

CONSIDERING that the close relationship between Switzerland and the Union and Euratom is of benefit to the Parties;

CONSIDERING the importance of scientific and technological research for the Union and Euratom and for Switzerland and their mutual interest in cooperating in this matter in order to make better use of resources and to avoid unnecessary duplication;

WHEREAS Switzerland and the Union and Euratom are currently implementing research programmes in fields of common interest;

WHEREAS the Union and Euratom and Switzerland have an interest in cooperating on these programmes to their mutual benefit;

CONSIDERING the interest of the Parties in encouraging the mutual access of their research entities to research and technological development activities in Switzerland, on the one hand, and to the Union Framework Programme for research and innovation and to the Research and Training Programme of Euratom, and to the activities carried out by the European Joint Undertaking for ITER and the Development of Fusion for Energy[1] (hereafter ‘Fusion for Energy’), on the other;

WHEREAS the European Atomic Energy Community and Switzerland concluded a Cooperation Agreement in 1978 in the field of controlled thermonuclear fusion and plasma physics (hereinafter referred to as ‘the Fusion Agreement’);

WHEREAS both Parties wish to emphasize the mutual benefits of the execution of the Fusion Agreement, in the case of the European Atomic Energy Community, the role of Switzerland in the advancement of all the elements of the Fusion Community Programme, in particular JET and ITER on the way to the Demonstration Reactor DEMO, and, in the case of Switzerland, the development and strengthening of the Swiss Programme and its integration in the European and international frames;

WHEREAS both Parties reaffirm their desire to pursue their long-term cooperation in the field of controlled thermonuclear fusion and plasma physics on the basis of a new framework and instruments that will ensure the support to the research activities;

WHEREAS this Agreement terminates and replaces the Fusion Agreement;

WHEREAS the Parties concluded a Framework Agreement on 8 January 1986 for scientific and technical cooperation, which entered into force on 17 July 1987 (hereinafter referred to as ‘the Framework Agreement’);

CONSIDERING that Article 6 of the Framework Agreement states that the cooperation aimed at by the Framework Agreement is to be carried out through appropriate agreements;

WHEREAS on 25 June 2007 the Communities and Switzerland signed an agreement on scientific and technological cooperation between the European Community and the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part;

WHEREAS on 12 December 2012 Euratom and Switzerland concluded an agreement on Scientific and Technological Cooperation between the European Atomic Energy Community, of the one part, and the Swiss Confederation, of the other part, associating the Swiss Confederation to the Framework Programme of the European Atomic Energy Community for nuclear research and training activities (2012-2013);

CONSIDERING that Articles 9(2) of the abovementioned Agreements provide for renewal of the Agreement with a view to participation in new multi-annual Framework Programmes for research and technological development or other current and future activities, under mutually agreed conditions; 

WHEREAS Euratom concluded the Agreement on the establishment of the ITER International Fusion Energy Organization for the Joint Implementation of the ITER project. Pursuant to its Article 21 and the Agreements in the form of an Exchange of Letters between the European Atomic Energy Community and the Swiss Confederation on the application of the ITER Agreement, the Agreement on Privileges and Immunities for ITER and the Broader Approach Agreement to the territory of Switzerland and on Switzerland’s membership in the European Joint Undertaking for ITER and the Development of Fusion Energy of 22 November 2007, the Agreement applies to Switzerland participating in the Euratom fusion programme as a fully associated third State;

WHEREAS Euratom is a member of the European Joint Undertaking for ITER and the Development of Fusion Energy established by the Council Decision of 27 March 2007. Pursuant to Article 2 of this Decision and the Agreements in the form of an Exchange of Letters between the European Atomic Energy Community and the Swiss Confederation on the application of the ITER Agreement, the Agreement on Privileges and Immunities for ITER and the Broader Approach Agreement to the territory of Switzerland and on Switzerland’s membership in the European Joint Undertaking for ITER and the Development of Fusion Energy of 28 November 2007 Switzerland became a member of the Joint Undertaking as a third State having associated its research programme to the Euratom fusion programme;

WHEREAS Euratom concluded the Agreement between the European Atomic Energy Community and the Government of Japan for the Joint Implementation of the Broader Approach Activities in the Field of Fusion Energy Research. Pursuant to its Article 26 the Agreement applies to Switzerland participating in the Euratom fusion programme as fully associated third State;

WHEREAS the Union programme “Horizon 2020 - the Framework Programme for Research and Innovation (2014-2020)” (hereinafter referred to as ‘Horizon 2020’) was adopted by Regulation (EU) No 1291/2013[2] of the European Parliament and of the Council, the Specific Programme implementing Horizon 2020 was adopted by Council Decision No 743/2013[3], and the Research and Training Programme of the European Atomic Energy Community (2014-2018) complementing Horizon 2020 – (hereinafter referred to as ‘Euratom Programme’) was adopted by Council Regulation (Euratom) No 1314/2013[4], and the Rules for the participation and dissemination in Horizon 2020 and Euratom Programme were adopted by the Regulation of the European Parliament and of the Council (EU) No 1290/2013[5], and the Regulation (EC) No 294/2008 establishing the European Institute of Innovation and Technology (hereinafter referred as the ‘EIT Regulation’) was amended by Regulation (EU) No 1292/2013[6] of the European Parliament and of the Council, and the decision to provide the basis for the financing of the ITER related activities for the period 2014-2020 was adopted by Council Decision 2013/791/Euratom[7] amending Decision 2007/198/Euratom establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it;

WHEREAS without prejudice to the provisions of the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community, this Agreement and any activities entered into under it will in no way affect the powers vested in the Member States to undertake bilateral activities with Switzerland in the fields of science, technology, research and development, and to conclude, where appropriate, agreements to that end.

HAVE AGREED AS FOLLOWS:

ARTICLE 1

Subject matter

1. The terms and conditions of Swiss participation in the implementation of Pillar I of Horizon 2020 and actions under the specific objective ‘Spreading excellence and widening participation’, the Euratom Programme 2014-2018 and in the activities carried out by the European Joint Undertaking for ITER and the Development of Fusion for Energy (hereafter ‘Fusion for Energy’) for 2014-2020, shall be as laid down in this Agreement.

1bis. Subject to Article 13(3) quater this Agreement shall set out as of 1 January 2017 the terms and conditions of Swiss participation in the implementation of the whole of Horizon 2020, the Euratom Programme 2014-2018 and in the activities carried out by the European Joint Undertaking for ITER and the Development of Fusion for Energy for 2014-2020.

2. Legal entities established in Switzerland may participate in Programmes covered by this Agreement and in the activities carried out by Fusion for Energy under the conditions set out in Article 7.

3. As of 1 January 2017 legal entities established in Switzerland may participate in the activities of the Joint Research Centre of the Union, as far as this participation is not covered by paragraph 1.

4. Legal entities established in the Union, including the Joint Research Centre, may participate in research programmes and/or projects in Switzerland on themes equivalent to those of the programmes mentioned in paragraph 1 and, as of 1 January 2017, mentioned in paragraph 1 bis.

5. For the purposes of this Agreement:

a. ‘legal entity’ means any natural or any legal person created and recognised as such under national law, Union law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations;

b. ‘Programmes covered by this Agreement’ means Pillar I of Horizon 2020, actions under the specific objective ‘Spreading excellence and widening participation’ and the Euratom Programme 2014-2018 or, subject to Article 13(3) quater, the whole of Horizon 2020 and Euratom Programme 2014-2018 as of 1 January 2017;

c. ‘Pillar I of Horizon 2020’ means actions under specific objectives enumerated in Annex I part I of the Regulation (EU) No 1291/2013 of the European Parliament and of the Council, namely the European Research Council, future and emerging technologies, Marie Skłodowska-Curie actions and research infrastructures.

ARTICLE 2

Forms and means of cooperation

1.       Cooperation shall take the following forms:

a.  Participation of legal entities established in Switzerland in Programmes covered by this Agreement in accordance with the terms and conditions laid down in their rules for the participation and dissemination; and in all activities carried out by Fusion for Energy, in accordance with the terms and conditions laid down by the Joint Undertaking.

     In case the Union makes provisions for the implementation of Articles 185 and 187 of the Treaty on the Functioning of the European Union (TFEU)[8], Switzerland shall be allowed to participate in the legal structures created under these provisions, in conformity with the decisions and regulations that have been or will be adopted for the establishment of these legal structures. Subject to Article 13(3) quater, this provision shall only apply as of 1 January 2017.

     Legal entities established in Switzerland shall be eligible for participation, as entities from an associated country, in indirect actions based on Articles 185 and 187 of the TFEU. Subject to Article 13(3) quater, this provision shall only apply as of 1 January 2017.

     The Regulation (EC) No 294/2008 of the European Parliament and of the Council as amended by the Regulation (EU) No 1292/2013 of the European Parliament and of the Council shall apply to participation of legal entities established in Switzerland in Knowledge and Innovation Communities.

     Swiss participants are invited to the Stakeholder Forum of the European Institute of Innovation and Technology (EIT).

b.  Financial contribution by Switzerland to the budgets of the work programmes adopted for the implementation of Programmes covered by this Agreement and to the activities carried out by Fusion for Energy, as defined in Article 4(2).

c.  Participation of legal entities established in the Union in Swiss research programmes and/or projects decided by the Federal Council on themes equivalent to those of Programmes covered by this Agreement and to those activities carried out by Fusion for Energy, in accordance with the terms and conditions laid down in the relevant Swiss regulations and with the agreement of the partners in the specific project and the management of the corresponding Swiss programme. Legal entities established in the Union participating in Swiss research programmes and/or projects shall cover their own costs, including their relative share of the project’s general management and administrative costs.

2.       In addition to timely provision of information and documentation concerning the implementation of Programmes covered by this Agreement and of the activities carried out by Fusion for Energy as well as of the Swiss programmes and/or projects, the cooperation between the Parties may include the following forms and means:

a. Regular exchanges of views on research policy guidelines and priorities and plans in Switzerland and in the Union and Euratom;

b. Exchanges of views on the prospects and development of cooperation;

c. Timely exchanges of information on the implementation of the research programmes and projects in Switzerland and in the Union and Euratom and on the results of the work undertaken under this Agreement;

d. Joint meetings and resulting joint declarations;

e. Visits and exchanges of researchers, engineers and technicians;

f.          Regular contacts and follow up between programme or project leaders in Switzerland and in the Union and Euratom;

g. Participation by experts in seminars, symposia and workshops;

h. Timely exchanges of information on the activities of ITER in a similar manner as that for Member States.

ARTICLE 3

Intellectual Property Rights and Obligations

1. Subject to Annex A and applicable law, legal entities established in Switzerland participating in Programmes covered by this Agreement and activities carried out by Fusion for Energy shall, as regards ownership, exploitation and dissemination of information and intellectual property arising from such participation, have the same rights and obligations as legal entities established in the Union participating in the research programmes and activities in question. This provision shall not apply to the results obtained from projects started before the provisional application of this Agreement.

2. Subject to Annex A and applicable law, legal entities established in the Union taking part in Swiss research programmes and/or projects, as provided for in Article 2(1c), shall, as regards ownership, exploitation and dissemination of information and intellectual property arising from such participation, have the same rights and obligations as legal entities established in Switzerland participating in the programmes and/or projects in question. This provision shall not apply to the results obtained from projects started before the provisional application of this Agreement.

3. For the purposes of this Agreement, ‘intellectual property’ shall have the meaning defined in Article 2 of the Convention establishing the World Intellectual Property Organisation, signed at Stockholm on 14 July 1967.

ARTICLE 4

Financial provisions

1.       Switzerland's financial contribution deriving from participation in the implementation of Programmes covered by this Agreement and to the activities carried out by Fusion for Energy shall be established in proportion to and in addition to the amount available each year in the general budget of the European Union for commitment appropriations to meet the Commission's financial obligations stemming from work to be carried out in the forms necessary for the implementation, management, functioning and operations of the programmes covered by this Agreement.

The European Union reserves the right to use the operational and administrative appropriations arising from the Swiss contribution for Programmes covered by this Agreement and all activities carried out by Fusion for Energy according to the needs of these programmes and activities.

2.       With the exception of the second sentence of this paragraph, the proportionality factor governing Switzerland’s financial contribution under this agreement shall be obtained by establishing the ratio between Switzerland’s gross domestic product at market prices and the sum of gross domestic products, at market prices, of the Member States of the European Union. The proportionality factor governing Switzerland’s contribution to Fusion for Energy activities and the fusion part of Euratom Programme shall be obtained by establishing the ratio between Switzerland’s gross domestic product at market prices and the sum of gross domestic products, at market prices, of the Member States of the European Union and Switzerland.

These ratios shall be calculated on the basis of the latest statistical data from Eurostat, available at the time of publication of the draft budget of the European Union for the same year.

3.       The rules governing Switzerland's financial contribution are set out in Annex B.

ARTICLE 5

Switzerland/Communities Research Committee

1. The Switzerland/Communities Research Committee set up in the Framework Agreement shall review, evaluate and ensure the proper implementation of this Agreement. Any issues arising from the implementation or interpretation of this Agreement shall be referred to this Committee.

2. The Committee may decide to amend the references to Union acts in Annex C.

3.       The Committee shall meet at the request of any of the Parties. Furthermore, the Committee will work on an on-going basis through exchange of documents, e-mails and other means of communication.

ARTICLE 6

Participation in Committees

1.       Representatives of Switzerland shall participate as observers in the committees responsible for implementation of the Programmes covered by this Agreement. Participation shall be in accordance with the Rules of Procedure of these committees. Switzerland shall be informed of the results of votes in these committees. Participation as referred to in this paragraph shall take the same form, including procedures for receipt of information and documentation, as that applicable to representatives from Member States of the European Union.

2.       Representatives of Switzerland shall participate as observers in the Board of Governors of the Joint Research Centre. This participation shall be in accordance with the rules of procedure for the Joint Research Centre Board of Governors.

3.       Travel costs and subsistence costs incurred by representatives of Switzerland participating in meetings of the committees mentioned in paragraphs 1 and 2 shall be reimbursed by the Commission on the same basis as, and in accordance with the procedures currently in force for, representatives of the Member States of the European Union.

4.       Representatives of Switzerland shall participate in Fusion for Energy bodies. Participation shall be in accordance with the Fusion for Energy statutes, including their provisions on voting rights.

5.       Participation of representatives from Switzerland in the European Research Area and Innovation Committee (ERAC) and in the ERA-related groups shall be in accordance with the rules of procedure of the Committee and these groups.

ARTICLE 7

Participation

1.       Without prejudice to the provisions of Article 3, legal entities established in Switzerland participating in Programmes covered by this Agreement and in the activities carried out by Fusion for Energy shall have the same contractual rights and obligations as legal entities established in the Union.

2.       For legal entities established in Switzerland, the terms and conditions applicable for the submission and evaluation of proposals and those for the granting and conclusion of grant agreements and/or contracts under Programmes covered by this Agreement and under the activities carried out by Fusion for Energy shall be the same as those applicable for grant agreements and/or contracts concluded under the same programmes or activities of Fusion for Energy with legal entities established in the Union.

3.       Legal entities established in Switzerland shall be eligible for financial instruments established under Programmes covered by this Agreement.

4.       An adequate number of Swiss experts shall be taken into consideration in the selection of evaluators or experts under the Programmes covered by this Agreement as well as for the activities carried out by Fusion for Energy, taking into account the skills and knowledge appropriate to the tasks assigned to them.

5.       Without prejudice to the provisions of Article 1(4), Article 2(1c) and Article 3(2) and to existing regulations and rules of procedure, legal entities established in the Union may participate under equivalent terms and conditions to Swiss partners in programmes and/or projects of the Swiss research programmes and activities mentioned in Article 2(1c). The Swiss authorities may make participation in a project by one or more legal entities established in the Union subject to joint participation by at least one legal entity established in Switzerland.

ARTICLE 8

Mobility

Each Party shall undertake, in accordance with existing regulations and agreements in force, to guarantee the entry and stay – as far as indispensable for successful accomplishment of the activity concerned – of a number of their researchers participating, in Switzerland and in the Union, in the activities covered by this Agreement.

ARTICLE 9

Revision and future collaboration

1. Should the Union or Euratom revise or extend their research programmes or the activities of Fusion for Energy, this Agreement may be revised or extended under mutually agreed conditions. The Parties shall exchange information and views concerning any such revision or extension, as well as on any matters which affect directly or indirectly Switzerland's cooperation in the fields covered by Programmes covered by this Agreement and by the activities carried out by Fusion for Energy. Switzerland shall be notified of the exact content of the revised or extended programmes or activities within two weeks of their adoption by the Union and Euratom. In case of such revision or extension of the research programmes or activities, Switzerland may terminate this Agreement by giving six months’ notice. The Parties shall give notice of any intention to terminate or to extend this Agreement within three months after the adoption of the Union or Euratom decision.

2. Should the Union or Euratom adopt new multi‑annual framework programmes for research and technological development or a new decision to finance the Fusion for Energy activities, this Agreement may be renewed or renegotiated under conditions agreed mutually between the Parties. The Parties shall exchange information and views on the preparation of such programmes or other current and future research activities, including those carried out by Fusion for Energy, through the Switzerland/Communities Research Committee.

ARTICLE 10

Relation to other International Agreements

1. The provisions of this Agreement shall apply without prejudice to the advantages envisaged by other international agreements binding one of the Parties and reserved only for legal entities established on the territory of that Party.

2. A legal entity established in another country associated to Horizon 2020 (Associated Country) or to the Euratom Programme enjoys the same rights and obligations under this Agreement as legal entities that are established in a Member State provided that the Associated Country in which the entity is established has agreed to award legal entities from Switzerland the same rights and obligations.

ARTICLE 11

Territorial application

This Agreement shall apply, on the one hand, to the territories in which the Treaty on the Functioning of the European Union and the Treaty establishing the European Atomic Energy Community are applied and under the conditions laid down in those Treaties and, on the other, to the territory of Switzerland.

ARTICLE 12

Annexes

Annexes A, B and C shall form an integral part of this Agreement.

ARTICLE 13

Amendment and termination

1. This Agreement shall apply for the duration of Horizon 2020, until 31 December 2018 for the Euratom Programme and until 31 December 2020 for the activities carried out by Fusion for Energy.

Notwithstanding paragraph 3 below, during the period from 1 January 2019 until 31 March 2019, either Party may terminate this Agreement by written notice in relation to the activities carried out by Fusion for Energy. In this case the Agreement shall cease to apply on 31 December 2018 in relation to such activities.

This Agreement shall be tacitly extended and apply under the same terms and conditions to the Euratom Programme 2019-2020, unless either party notifies its decision not to extend this Agreement to this Programme within three months after the adoption of the Euratom Programme 2019-2020. In the case of such a notification, this Agreement shall cease to apply on 31 December 2018 to the Euratom Programme, without prejudice to the participation of Switzerland in Horizon 2020 and in the activities carried out by Fusion for Energy.

2. This Agreement may be amended only in writing by common consent between the Parties. The procedure for entry into force of the amendments shall be the same as the procedure applicable to this Agreement.

3. Each Party may terminate this Agreement at any time, subject to six months’ written notice.

3bis. In case the agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons is terminated, this Agreement shall cease to apply on the same date as the aforementioned agreement. No prior written notice shall be required to that effect.

3ter. This Agreement shall cease to apply in the absence of the Swiss notification required for the entry into force of the Protocol on the extension to Croatia of the agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, within six months after the completion of Swiss internal procedures. No prior written notice shall be required to that effect.

3quater. This Agreement shall cease to apply with retroactive effect as of 31 December 2016, in the absence of Swiss ratification of the Protocol on the extension to Croatia of the agreement between the European Community and its Member States, of the one part, and the Swiss Confederation, of the other, on the free movement of persons, by 9 February 2017. If the Swiss Confederation ratifies the abovementioned Protocol, this Agreement shall apply to the whole of Horizon 2020, Euratom Programme 2014-2018 and the activities carried out by Fusion for Energy as of 1 January 2017.

4. Projects and activities in progress at the time of termination and/or expiry of this Agreement shall continue until their completion under the conditions laid down in this Agreement. The Parties shall settle by common consent any other consequences of termination.

ARTICLE 14

Review clause

In the fourth year after this Agreement becomes applicable, Parties shall jointly review the implementation of the Agreement, including the proportionality factor governing the financial contribution of Switzerland, on the basis of the data concerning participation of legal entities established in Switzerland in indirect and direct actions under the Programmes covered by this Agreement in the years 2014-2016 as well as Fusion for Energy activities.

ARTICLE 15

Entry into force and provisional application

1.       This Agreement shall be ratified or concluded by the Parties in accordance with their respective rules. It shall enter into force on the date of the last notification of completion of the procedures necessary to this end.

In relation to Switzerland’s association to Horizon 2020, provisional application of this Agreement shall start upon signature of this Agreement by representatives of Switzerland and the Union.

In relation to Switzerland’s association to Euratom Programme and Fusion for Energy activities, provisional application of this Agreement shall start when Switzerland has signed the Agreement and Euratom has notified Switzerland of the completion of procedures necessary for conclusion of this Agreement.

Provisional application shall take effect from 15 September 2014. Legal entities established in Switzerland shall be treated as entities from an Associated Country in the meaning of Article 2(1) point 3 of Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the rules for participation and dissemination in Horizon 2020 for the purpose of the calls for proposals or invitations to submit proposals, procurement procedures or contests under Programmes covered by this Agreement which have a deadline from 15 September 2014 onwards.

If legal entities established in Switzerland are not eligible for funding in calls for proposals or invitations to submit proposals or contests under Programmes covered by this Agreement financed from 2015 budget, on the basis of Article 10(1)(a) of Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the rules for participation and dissemination in Horizon 2020, for calculation of Switzerland's financial contribution issued in accordance with Annex B of this Agreement for the year 2015, the budget of the relevant Programme shall be diminished by the budget of these calls, invitations to submit proposals or contests.

2.       Should one of the Parties inform the other that it will not conclude or ratify this Agreement, it is hereby agreed that:

-    the Union and Euratom shall reimburse to Switzerland its contribution to the general budget of the European Union, as provided for in Article 2(1b);

-    however, the funds already committed by the Union and Euratom during the provisional application of this Agreement for participation by legal entities established in Switzerland in indirect actions or for participation in activities carried out by Fusion for Energy, shall be deducted by the Union and Euratom from the abovementioned reimbursement;

-    projects and activities started during this provisional application and still in progress at the time of the abovementioned notification shall continue until their completion under the conditions laid down in this Agreement.

ARTICLE 16

Relation to the 1978 Fusion Agreement

1. Upon its provisional application, this Agreement shall suspend the Cooperation Agreement of 1978 in the field of controlled thermonuclear fusion and plasma physics.

2. Upon its entry into force, this Agreement terminates and replaces the Cooperation Agreement of 1978 in the field of controlled thermonuclear fusion and plasma physics.

This Agreement shall be drawn up in duplicate in the Bulgarian, Croatian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovene, Spanish and Swedish languages, each of those texts being equally authentic.

ANNEX A

PRINCIPLES ON THE ALLOCATION OF

INTELLECTUAL PROPERTY RIGHTS

I.       INTELLECTUAL PROPERTY RIGHTS OF THE LEGAL ENTITIES OF THE PARTIES

1. Each Party shall ensure that the intellectual property rights of the legal entities of the other Party participating in the activities undertaken under this Agreement and the rights and obligations resulting from such participation are treated in a manner compatible with the relevant international conventions applicable to the Parties, notably the TRIPS Agreement (Agreement on Trade Related Aspects of Intellectual Property Rights administered by the World Trade Organisation), the Berne Convention (Paris Act 1971) and the Paris Convention (Stockholm Act 1967).

2. Legal entities established in Switzerland participating in indirect actions under Programmes covered by this Agreement shall have intellectual property rights and obligations in accordance with Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the rules for participation and dissemination in Horizon 2020 and the provisions of the Horizon 2020 and Euratom Grant Agreements.

3. Legal entities established in Switzerland participating in activities carried out by Fusion for Energy shall have intellectual property rights and obligations in accordance with the rules on intellectual property rights and dissemination of information and with the financial rules adopted by Fusion for Energy.

4. Where legal entities established in Switzerland participate in indirect actions under Horizon 2020, implemented in accordance with Article 185 and Article 187 of the TFEU, the legal entities established in Switzerland shall have intellectual property rights and obligations in accordance with Regulation (EU) No 1290/2013 of the European Parliament and of the Council laying down the rules for participation and dissemination in Horizon 2020 and provisions of the relevant Grant Agreements and any other relevant rules, as applicable.

5. Legal entities established in a European Union Member State participating in Swiss research programmes and/or projects shall have the same intellectual property rights and obligations as legal entities established in Switzerland participating in these research programmes or projects.

II.      INTELLECTUAL PROPERTY RIGHTS OF AND INFORMATION EXCHANGE BETWEEN THE PARTIES

1. Unless otherwise agreed between the Parties, the following rules shall apply to the intellectual property rights generated by the Parties in the course of the activities undertaken in accordance with Article 2(2) of this Agreement:

a. The Party generating the intellectual property shall have ownership thereof. Where their respective shares in the work cannot be determined, the Parties shall co‑own the intellectual property;

b. The Party holding ownership shall grant the other Party rights of access to and the use of the intellectual property with a view to the activities referred to in Article 2(2) of this Agreement. No charge shall be made for granting rights of access to and the use of the intellectual property.

2. Unless otherwise agreed between the Parties, the following rules shall apply to scientific publications from the Parties:

a. Where a Party publishes a work containing data, information and technical or scientific results arising from the activities undertaken under this Agreement in journals, articles, reports and books, including audio-visual works and software, a worldwide, non‑exclusive, irrevocable royalty‑free licence to translate, adapt, transmit and publicly distribute the data, information and technical or scientific results in question shall be granted to the other Party unless precluded by existing intellectual property rights of third parties;

b. All copies of copyrighted data and information to be publicly distributed and prepared under this section shall indicate the names of the author or authors, unless an author expressly declines to be named. Copies shall also bear a clearly visible acknowledgement of the cooperative support of the Parties.

3. Unless otherwise agreed between the Parties, the following rules shall apply to undisclosed information of the Parties:

a. At the time of submission to the other Party of information relating to the activities undertaken under this Agreement, each Party shall identify the information which it wishes to remain undisclosed;

b. For the specific purposes of application of this Agreement, the receiving Party may, on its own responsibility, communicate such undisclosed information as confidential information to bodies or persons under its authority and under an obligation to keep the information confidential;

c. With the prior written consent of the Party providing undisclosed information, the receiving Party may disseminate such information more widely than otherwise permitted by subparagraph (b). The Parties shall cooperate in developing procedures for requesting and obtaining prior written consent for wider dissemination, and each Party shall grant such approval to the extent permitted by its domestic policies, regulations and laws;

d. Non‑documented undisclosed or other confidential or privileged information provided in seminars or other meetings of the representatives of the Parties arranged under this Agreement, or information arising from the attachment of staff, use of facilities or indirect actions must remain confidential, where the recipient of such undisclosed or other confidential or privileged information was made aware of the confidential character of the information before it was communicated, in accordance with subparagraph (a);

e. Each Party shall ensure that undisclosed information which it obtains in accordance with subparagraphs (a) and (d) shall be controlled as provided for in this Agreement. If one of the Parties becomes aware that it will be, or may be expected to become, unable to meet the non‑dissemination provisions of subparagraphs (a) and (d), it shall immediately inform the other Party. The Parties shall thereafter consult to define an appropriate course of action.

ANNEX B

FINANCIAL RULES GOVERNING THE CONTRIBUTION OF SWITZERLAND REFERRED TO IN ARTICLE 4 OF THIS AGREEMENT

I.       DETERMINATION OF FINANCIAL PARTICIPATION

1. The Commission shall communicate to Switzerland together with relevant background material including the corresponding Eurostat data, as soon as possible and at the latest on 1 September of each year and any Multi-annual Financial Framework 2014-2020 update as soon as available:

a. The amounts in commitment appropriations in the statement of expenditure of the draft budget of the European Union for the following year corresponding to the Programmes covered by this Agreement and the Union final contribution to Fusion for Energy;

b. The estimated amount of the contributions derived from the draft budget, corresponding to the participation of Switzerland for the following year in each of the Programmes covered by this Agreement and in the activities carried out by Fusion for Energy.

2. Once the general budget has been finally adopted and at the same time as the first call for funds of the year, the Commission shall communicate to Switzerland the above mentioned amounts with relevant background material including the corresponding Eurostat data, in separate statements of expenditure corresponding to the participation of Switzerland in each of the Programmes covered by this Agreement and in the activities carried out by Fusion for Energy.

II.      PAYMENT PROCEDURES

1. In June and November of each financial year, the Commission shall issue a separate call for funds to Switzerland corresponding to its contribution to each of the Programmes covered by this Agreement and to the activities carried out by Fusion for Energy under this Agreement. These calls for funds shall provide respectively for the payment of six twelfths of Switzerland's contribution for each call for funds and not later than 30 days after receipt of the corresponding call for funds. However, in the last year of the two Programmes and the last year of the Council Decision 2013/791/Euratom[9] amending Decision 2007/198/Euratom establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it, the Commission shall issue in June a single call for funds covering the whole year to be paid not later than 30 days after receipt of the corresponding call for funds.

1bis. Notwithstanding paragraph 1 above, the Commission shall issue by 15 December 2014 a call for funds to Switzerland corresponding to 7/24 of its annual contribution to Programmes covered by this Agreement in 2014, with the exception of fusion activities under the Euratom Programme. The Commission shall also issue by 15 December 2014 a call corresponding to 12/12 of Swiss annual contribution to the fusion activities of the Euratom Programme and the activities carried out by Fusion for Energy in 2014. These calls shall provide for the payment of Switzerland's contribution not later than 30 days after the receipt of the corresponding call for funds. 

Paragraphs below shall apply accordingly.

2. The contributions of Switzerland shall be expressed and paid in Euros.

3. Switzerland shall pay its contribution under this Agreement according to the schedule in paragraph 1. Any delay in payment shall give rise to the payment of interest at a rate equal to the one-month inter‑bank offered rate (EURIBOR). This rate shall be increased by 1.5 percentage point for each month of delay. The increased rate shall be applied to the entire period of delay.

III.       CONDITIONS FOR IMPLEMENTATION

1. The financial contribution of Switzerland to the two Programmes and the activities carried out by Fusion for Energy in accordance with Article 4 of this Agreement shall remain unchanged for the financial year in question. Any relevant changes in the EU budget adopted in the financial year in question shall be taken into account in the first call for funds issued in the following year, except in the final year of the respective Programmes and activities.

2. The Commission, at the time of the closure of the accounts relating to each financial year (n), within the framework of the establishment of the revenue and expenditure account, shall proceed to the regularisation of the accounts with respect to the participation of Switzerland, taking into consideration modifications which have taken place, either by transfer, cancellations, carry‑overs, or by supplementary and amending budgets during the financial year.

3. This regularisation shall occur at the time of the first payment for the year n+1. However, the final such regularisation shall occur not later than July of the fourth year following the end of each of the two Programmes and the end of the duration of the Council Decision 2013/791/Euratom amending Decision 2007/198/Euratom establishing the European Joint Undertaking for ITER and the Development of Fusion Energy and conferring advantages upon it. Payment by Switzerland shall be credited to the European Union and Euratom programmes as budget receipts allocated to the appropriate budget heading in the statement of revenue of the general budget of the European Union.

IV.    INFORMATION

1. At the latest on 1 September of each financial year (n+1), the statement of appropriations for the Programmes covered by this Agreement and for the activities carried out by Fusion for Energy related to the previous financial year (n), shall be prepared and transmitted to Switzerland for information, according to the format of the Commission's revenue and expenditure account.

2. The Commission shall make available to Switzerland the statistics and all other general financial data relating to the implementation of each of the two Programmes and activities carried out by Fusion for Energy which is made available to the Member States.

ANNEX C

FINANCIAL CONTROLS OF SWISS PARTICIPANTS IN HORIZON 2020, IN THE EURATOM PROGRAMME AND IN THE ACTIVITIES CARRIED OUT BY FUSION FOR ENERGY COVERED BY THIS AGREEMENT

I.       DIRECT COMMUNICATIONS

The Commission may communicate directly with the participants in Programmes covered by this Agreement and in the activities carried out by Fusion for Energy established in Switzerland and with their subcontractors. They may submit directly to the Commission all relevant information and documentation which they are required to submit on the basis of the instruments referred to in this Agreement and of the grant agreements and/or contracts concluded to implement them.

II.      AUDITS

1. In accordance with the Regulation of the European Parliament and of the Council (EU) No 966/2012[10] and Commission Delegated Regulation (EU) No 1268/2012[11] and with the other rules referred to in this Agreement, the grant agreements and/or contracts concluded with participants in the programmes and activities established in Switzerland may provide for scientific, financial, technological or other audits to be conducted at any time on the premises of the participants and of their subcontractors by Commission agents or by other persons mandated by the Commission.

2. Commission agents, the European Court of Auditors and other persons mandated by the Commission shall have access to relevant sites and works and to all information, including information in electronic form, required in order to carry out such audits. This right of access shall be stated explicitly in the grant agreements and/or contracts concluded to implement the instruments referred to in this Agreement.

3. After the expiry of Horizon 2020 and the Euratom Programme, or after 31 December 2020 for the activities carried out by Fusion for Energy, audits may be conducted on the terms laid down in the grant agreements and/or contracts in question.

4. The Swiss Federal Audit Office shall be informed in advance of the audits conducted on Swiss territory. Such notification shall not be a legal precondition for carrying out such audits. The Swiss Federal Audit Office or other competent Swiss authorities designated by the Swiss Federal Audit Office may assist during such audits.

III.    INVESTIGATIONS BY THE EUROPEAN ANTI FRAUD OFFICE (OLAF)

1. Within the framework of this Agreement, the Commission (OLAF) may carry out investigations, including on-the-spot checks and inspections, on Swiss territory, in accordance with the terms and conditions laid down in Council Regulation (Euratom, EC) No 2185/96[12] and Regulation (EU, Euratom) No 883/2013[13] of the European Parliament and of the Council with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union and/or of Euratom.

2. On‑the‑spot checks and inspections shall be prepared and conducted by OLAF in close collaboration with the Swiss Federal Audit Office or with other competent Swiss authorities designated by the Swiss Federal Audit Office, which shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help. To that end, the officials of the competent Swiss authorities may participate in the on-the-spot checks and inspections.

3. If the Swiss authorities concerned so wish, the on‑the‑spot checks and inspections may be carried out jointly by OLAF and them.

4. Where the participants in Programmes covered by this Agreement and activities carried out by Fusion for Energy resist an on‑the‑spot check or inspection, the Swiss authorities, acting in accordance with national rules, shall give OLAF investigators such assistance as they need to allow them to discharge their duty in carrying out an on‑the‑spot check or inspection.

5. OLAF shall report as soon as possible to the Swiss Federal Audit Office or other competent Swiss authorities designated by the Swiss Federal Audit Office any fact or suspicion relating to an irregularity which has come to its notice in the course of the on‑the‑spot check or inspection. In any event OLAF shall inform the aforementioned authorities of the result of such checks and inspections.

IV.    INFORMATION AND CONSULTATION

1. For the purposes of proper implementation of this Annex, the competent Swiss and Union authorities shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations.

2. The competent Swiss authorities shall inform the Commission without delay of any fact or suspicion which has come to their notice relating to an irregularity in connection with the conclusion and implementation of the grant agreements and/or contracts concluded in application of the instruments referred to in this Agreement.

V.      CONFIDENTIALITY

Information communicated or acquired in any form under this Annex shall be covered by professional secrecy and protected in the same way as similar information is protected by Swiss law and by the corresponding provisions applicable to the Union institutions. Such information may not be communicated to persons other than those within the Union institutions or in the Member States or Switzerland whose functions require them to know it nor may it be used for purposes other than to ensure effective protection of the Parties’ financial interests.

VI.    ADMINISTRATIVE MEASURES AND PENALTIES

Without prejudice to application of Swiss criminal law, administrative measures and penalties may be imposed by the Commission in accordance with the Regulation of the European Parliament and of the Council (EU) No 966/2012, and Commission Delegated Regulation (EU) No 1268/2012, and with Council Regulation (EC, Euratom) No 2988/95[14] on the protection of the European Communities’ financial interests.

VII.   RECOVERY AND ENFORCEMENT

Decisions taken by the Commission under Horizon 2020 or Euratom Programme within the scope of this Agreement which impose a pecuniary obligation on persons other than States shall be enforceable in Switzerland. The enforcement order shall be issued, without any further control than verification of the authenticity of the act, by the authorities designated by the Swiss government, which shall inform the Commission thereof. Enforcement shall take place in accordance with the Swiss rules of procedure. The legality of the enforcement decision shall be subject to control by the Court of Justice of the European Union. Judgments given by the Court of Justice of the European Union pursuant to an arbitration clause in a contract or grant agreement under Horizon 2020 and Euratom Programme shall be enforceable on the same terms.

[1] Established by Council Decision (2007/198/Euratom) of 27 March 2007 (OJL90, 30.03.2007, p.58).

[2] OJ L347, 20.12.2013, p.104.

[3] OJ L347, 20.12.2013, p.965.

[4] OJ L347, 20.12.2013, p.948.

[5] OJ L347, 20.12.2013, p.81.

[6] OJ L347, 20.12.2013, p.147.

[7] OJ L349, 21.12.2013, p.100.

[8] OJ C115, 9.05.2008, p.47.

[9] OJ L349, 21.12.2013, p.100.

[10] OJ L298, 26.10.2012, p.1.

[11] OJ L362, 31.12.2012, p.1.

[12] OJ L292, 15.11.1996, p.2.

[13]  OJ L248, 18.9.2013, p.1.

[14] OJ L312, 23.12.1995, p.1.