This report assesses progress in implementing Seventh Framework Programme for Research (FP7) and what remains to be done to fully reach its original objectives. The available evidence for 2007 and 2008 indicates that FP7 had a good start :

the response of the scientific community to its calls for proposals shows a strong demand for Community research. Nearly 36,000 proposals were received, and over 5,500 proposals were selected for funding. The overall participation rate is at 21.7 %, taking into account two-stage application procedures; the quality of the evaluation process is recognised, with 91% of the evaluators stating that the quality of the evaluation process was similar to or better than national evaluations in which they participated.

The novel approaches embodied in FP7 seem to be paying off:

the success of the European Research Council is evident from the more than 11.000 proposals received for the first call; 5 large-scale public-private partnerships – Joint Technology Initiatives (JTI) – have been set up, each as an independent legal entity under Article 171 of the EC Treaty: Innovative Medicines ( IMI ); Embedded Computing Systems ( ARTEMIS ); Clean Sky ; Nanoelectronics ( ENIAC ) and the Fuel Cells & Hydrogen ( FCH ) JTI; demand for the new Risk Sharing Finance Facility (RSFF) has been strong since its launch in June 2007, with 30 RSFF operations approved and the value of signed loans reaching EUR 2 billion by the beginning of 2009; 2 agencies - the Research Executive Agency and the ERC Executive Agency – have been set up to ensure efficient management of a continuously growing FP7 budget without direct staff increases in the Commission; progress has been made in simplifying participation in FP7.

Some issues deserve further attention and reflection :

the adjusted overall share of SMEs participation in retained proposals under the specific programmes "Cooperation" and "Capacities" is around 11% in terms of requested EC contribution; below average FP7 participation rates for most new Member States are balanced by higher financial contributions: EU 12 participants obtained almost 5% of the total requested FP7 contribution, compared with a 2.8% share of EU12 in the total EU27 intramural R&D expenditure.

Conclusion: FP7 is adapting to help the EU meet its goals of creating a low carbon, knowledge-based society. It seeks to increase its leverage effect on public and private R&D investment and to diversify its instruments in order to maximise European added value. FP7 remains a crucial instrument to promote scientific excellence and technological development, responding to EU policy priorities and the needs of industry and society. The current adverse economic context underlines its importance even more. FP7 contributes to sustained research efforts, both private and public, as exemplified in the public private partnership initiatives for green cars, energy efficient buildings and factories of the future launched as part of the European Recovery Plan .

In order to obtain advice for further improving and possibly adapting FP7, the Commission will be seeking advice from an independent expert group, which will undertake an Interim Evaluation of FP7. Their mandate should be adopted in autumn 2009, and the evaluation should be completed in the autumn of 2010.

This Commission Staff Working Document, together with a Communication from the Commission, constitutes the FP7 Progress Report. While the Communication provides a summary of highlights and challenges, this Commission Staff Working Document presents a detailed assessment of the implementation and the achievements of FP7 so far.

Calls, proposals and grant agreements : the report that there are 3,551 signed grant agreements, or 64.3% of the retained proposals, so far. More than a third of all proposals were submitted under the Specific Programme "Cooperation". 45.3% of all included proposals and more than a third of all retained proposals were concentrated in this programme, leading to 1380 grant agreements so far.

The Specific Programme "People" (Marie Curie Actions) received 23.5% of all applications and constituted the second most sizeable group of included proposals and the most sizeable group of retained proposals (43.0% of the total). 1304 grant agreements have been signed so far under this Specific Programme.

Signed grant agreements involve 21,497 participants with a Community contribution of EUR 6.7 billion, of which the lion's share, namely 73% or EUR 4.8 billion, goes to projects under the Specific Programme "Cooperation".

Participation of New Member States : new Member States participation represents 9.3% of all applicants in retained FP7 proposals and 4.8% (EUR 485.9 million) of total requested EC financial contribution. The success rates are 17.9% for applicants and 13.4% for EC contribution – both considerably lower than the EU27 average (21.8% and 21.5% respectively).

The subscription and performance of the 12 "new" EU Member States ("EU12") vis-à- vis the "older" EU Member States ("EU15") in the "Cooperation" and "Capacities"

Specific Programmes during the first year of FP7 implementation presents a mixed picture. While EU12 participation in terms of numbers of submitted and retained proposals is lower than their share of the EU27 research workforce, the performance is significantly better when one compares their share of GERD to their share of EC contributions. More specifically:

- EU12 researchers represent 14% of the total EU27 population of researchers; the corresponding shares of EU12 applicants during the first years of implementation of the FP7 are now 9.3% in terms of retained proposals;

- the EU12 share of the EU27 2006 GERD is 2.8% while the aggregate requested EC contribution to EU12 applicants in retained proposals is now 4.8%.

These findings should however be put in the context of the current socio-economic conditions in EU27. For example, in 2006 the R&D expenditure per researcher was 4 times that of the corresponding EU12 figure. It was highlighted that EU12 is not a homogeneous group, which is why it may be more pertinent to refer to low- and high-performing Member States in FP7. The reasons for low performance are manifold and refer to national research landscapes with specific problems, to the lack of a competitive research environment at national level, and to problems encountered by smaller countries that cannot be expected to be competitive in all thematic fields of the FP.

Simplification : the paper discusses steps taken towards simplification, including the introduction of cost reimbursements through flat rates and lump-sums, with actual cost reporting retained where beneficiaries say that this is simpler, and though average personnel costs methodologies.

PURPOSE: to adopt the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

LEGISLATIVE ACT: Council Decision 2006/970/Euratom concerning the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

CONTENT: in adopting this Decision the EU establishes a multi-annual framework programme for nuclear research and training activities, referred to as the “Seventh Framework Programme”, 2007 - 2011. The Decision has been adopted according to article 7 of the Euratom Treaty. Accordingly, the programmes are drawn up for a period of not more than five years. This Decision is not the same as the EU’s Seventh Framework Programme, 2007 – 2013. For a summary of that Framework Programme refer to: COD/2005/0043 .

The 7 th Euratom Framework Programme will comprise of Community research, technological development, international co-operation, dissemination of technical information and exploitation activities, as well as training. It is defined by two specific programmes.

The first Specific Programme is made up of two components:

- Fusion Energy Research: Objective: To develop safe, sustainable, environmentally responsible and economically viable, technology.

- Nuclear fission and radiation protection: Objective: To enhance the safety performance, resource efficiency and cost effectiveness of nuclear fission and other uses of radiation in industry and medicine.

The second Specific Programme, covers the nuclear activities of the Joint Research Centre (JRC).

Both Specific Programmes are the subject of two separate legislative acts in which the details of the Specific Programmes are outlined. See CNS/2005/0189 and CNS/2005/0190 .

All research activities carried out under the 7 th Framework Programme will be carried out in accordance with fundamental ethical principles, including those reflected in the Charter of Fundamental Rights of the European Union. The opinions of the European Group on Ethics in Science and New Technologies will also be taken into account.

The maximum overall amount for implementing the Seventh Framework Programme between 2007 and 2011 will be EUR 2 751 million . For further details on the financial aspect of the Decision refer to the financial summary below.

ENTRY INTO FORCE: 31 December 2006.

To expedite an agreement on the framework programmes, the Commission is now bringing forward revised proposals on both framework programmes, enriched with Parliament’s amendments and Council’s views. As the opinion of the Parliament and the approach taken by the Council reflect the key principles of the original Commission proposals, these revised proposals take a large proportion the position taken by the other institutions.

The main issues raised concern the proposal for the EC framework programme. As regards the Commission’s position, the following items can be highlighted:

- nuclear fission and radioprotection with the objective of enhancing in particular the safety performance, resource efficiency and cost-effectiveness of promoting the safe use and exploitation of nuclear fission and other uses of radiation in industry and medicine;

- within the amount foreseen for Fusion energy research (EUR 1 947 million), not less than EUR 900 million will be reserved to activities other than the construction of ITER;

- the Commission shall continually and systematically monitor the implementation of the Framework Programme and its Specific Programmes and regularly report and disseminate the results of this monitoring. It shall communicate the conclusions to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

As regards the budget : the Commission maintains the amounts proposed in its adapted proposals of 24 May 2006 (please refer to the financial statement for more details) .

To expedite an agreement on the framework programmes, the Commission is now bringing forward revised proposals on both framework programmes, enriched with Parliament’s amendments and Council’s views. As the opinion of the Parliament and the approach taken by the Council reflect the key principles of the original Commission proposals, these revised proposals take a large proportion the position taken by the other institutions.

The main issues raised concern the proposal for the EC framework programme. As regards the Commission’s position, the following items can be highlighted:

- nuclear fission and radioprotection with the objective of enhancing in particular the safety performance, resource efficiency and cost-effectiveness of promoting the safe use and exploitation of nuclear fission and other uses of radiation in industry and medicine;

- within the amount foreseen for Fusion energy research (EUR 1 947 million), not less than EUR 900 million will be reserved to activities other than the construction of ITER;

- the Commission shall continually and systematically monitor the implementation of the Framework Programme and its Specific Programmes and regularly report and disseminate the results of this monitoring. It shall communicate the conclusions to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions.

As regards the budget : the Commission maintains the amounts proposed in its adapted proposals of 24 May 2006 (please refer to the financial statement for more details) .

The European Parliament adopted a resolution drafted by Jerzy BUZEK (EPP-ED, PL) by 457 votes to 97 with 22 abstentions and made some amendments to the Commission’s proposal:

- the indicative overall amount for the implementation of the seventh framework programme shall be EUR 2751 million for the period of 5 years starting on 1 January 2007 . The amounts earmarked for the individual programmes: EUR 1 947 m rather than EUR 2 159 m for fusion energy research; and EUR 517 m rather than EUR 539 m for nuclear activities of the Joint Research Centre;

- within the amount foreseen for fusion energy research, not less than EUR 900 million will be reserved to activities, other than the realisation of the research infrastructure ITER, listed in Annex I. MEPs wanted the EU to exploit to the full the potential of fusion to contribute to a sustainable and secure energy supply "approximately fifty or sixty years from now", and said that a "fast track" to fusion energy should be pursued "in order to reduce as much as possible the time taken to develop an actual fusion power plant". They stipulated that the aim should be to create prototype reactors within thirty to thirty five years. Referring to the need for a full and effective exploitation of the ITER device, Parliament wanted a bold accompanying programme and therefore specified that, within the amount foreseen for fusion energy research, not less than EUR 900 m should be reserved for that programme;

- to ensure that adequate human resources would be available, MEPs proposed the creation of a European PhD in "Physics and Engineering of Fusion". The provisions on human resources, mobility, education and training give particular stress to maintaining educational efforts in universities with an emphasis on organising joint post-graduate studies in the fields of nuclear engineering and radiation protection; and to promote safety as a priority ;

- all the research activities carried out under the 7th framework programme should give priority consideration to safety aspects, and emphasis should be placed on preventing "human or organisational error (individual or collective)";

- the Commission shall provide prior information to the budgetary authority whenever it intends to depart from the breakdown of expenditure set out in the remarks and Annex to the annual general budget of the European Union;

- in supporting the objectives of the EU, the Joint Research Centre shall have specific tasks related to: global security, particularly through its participation in developing techniques and methods for efficient safeguards, to combat illegal trafficking and for nuclear forensic matters; enlargement of the EU, because this has involved (and will involve) new types of reactors and other nuclear installations ; energy supply, by contributing to new techniques for a nuclear fuel cycle in line with the principles of sustainable development. Parliament’s text deletes the Commission’s reference to matching the Kyoto objectives;

- the JRC’s activities should include campaigning to make politicians and the public understand nuclear energy now that most scientists, politicians and citizens are convinced that global warming is real and caused by fossil-fuel carbon emissions, and that nuclear power is an essential component of the energy mix available to meet the world's energy needs with zero CO2 emissions. They should also include disseminating information about nuclear power to citizens and their representatives through the launching of multi-annual information campaigns on nuclear power to encourage debate and facilitate decision-making, thereby enabling them to have an objective debate based on facts and take informed decisions. To ensure that they are as effective as possible, these campaigns should be drawn up using methodology derived from the social sciences. Furthermore, and bearing in mind that comparisons with other energy sources are essential in order to grasp the implications of the use of nuclear power, any information campaigns which are promoted or encouraged will also mention and explain the efforts being made by the EU at other levels to promote other energy sources, with particular regard to renewable sources of energy.

The committee adopted the report by Jerzy BUZEK (EPP-ED, PL) broadly approving the proposed decision on the Seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011). It adopted a number of amendments under the consultation procedure:

- the indicative budget for the programme should be EUR 2 751 million rather than EUR 3 092, as proposed by the Commission. The committee amended the amounts earmarked for the individual programmes: (a) EUR 1 947 m rather than EUR 2 159 m for fusion energy research; (b) EUR 287 m rather than EUR 394 m for nuclear fission and radiation protection; and (c) EUR 517 m rather than EUR 539 m for nuclear activities of the Joint Research Centre;

- MEPs wanted the EU to exploit to the full the potential of fusion to contribute to a sustainable and secure energy supply "approximately fifty or sixty years from now", and said that a "fast track" to fusion energy should be pursued "in order to reduce as much as possible the time taken to develop an actual fusion power plant". They stipulated that the aim should be to create prototype reactors within thirty to thirty five years. Referring to the need for a full and effective exploitation of the ITER device, the committee wanted a bold accompanying programme and therefore specified that, within the amount foreseen for fusion energy research, not less than EUR 900 m should be reserved for that programme;

- to ensure that adequate human resources would be available, MEPs proposed the creation of a European PhD in "Physics and Engineering of Fusion";

- all the research activities carried out under the 7th framework programme should give priority consideration to safety aspects, and emphasis should be placed on preventing "human or organisational error (individual or collective)";

- the specific tasks of the Joint Research Centre (JRC) should go beyond helping to match the Kyoto objectives and instead should be related to global security, EU enlargement and energy supply. The JRC must also be given the means to modernise its infrastructures to keep European research at the forefront of its field. Lastly, the JRC's activities should also include "campaigning to make politicians and the public understand nuclear energy" as being an essential component of the energy mix needed to reduce fossil-fuel carbon emissions which are responsible for global warming.

The Commission adopted, on 6 April 2005, its proposal for a Decision concerning the seventh Framework Programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007 to 2011).

The initial maximum overall amount for Community financial participation amounted to EUR 3 092 million . That amount was to be distributed as follows : a) Fusion energy research : EUR 2 159 million; b) Nuclear fission and radiation protection : EUR 394 million; c) Nuclear activities of the Joint Research Centre : EUR 539 million.

The Commission subsequently adapted the budgetary aspects of these proposals following the agreement of 17 May 2006 on the Financial Framework 2007-2013.

The new overall amount for the implementation of the seventh framework programme for the period 2007 to 2011 shall be EUR 2 751 million . That amount shall be distributed as follows : a) Fusion energy research : EUR 1 947 million; b) Nuclear fission and radiation protection : EUR 287 million; c) Nuclear activities of the Joint Research Centre : EUR 517 million.

Please refer to the financial statement for more details.

Package of legislative proposals following the Interinstitutional Agreement on

budgetary discipline and sound financial management

The conclusion on 17 May 2006 by the Commission, the Council and the European Parliament of the agreement on the 2007-2013 financial framework (Interinstitutional Agreement on budgetary discipline and sound financial management – please refer to procedure ACI/2004/2099 ) marks a real success for Europe, providing a stable financial framework for the political priorities of the enlarged Union for the next seven years. It is now up to the institutions and Member States to ensure that the financial resources available are used and implemented as well as possible. Action at European level must contribute true added value to that taken at national, regional or local level and must have an optimum impact on each European player. The Commission is ready to play a full role in all these areas.

The agreement marks a decisive step forward towards the ultimate objective of providing the Union with operational programmes by the beginning of 2007. Work must now be continued on each legislative act. To this end, the Commission intends to continue to provide momentum and act as a facilitator, as it has been doing since the start of the negotiations.

As part of the negotiations on the 2007-2013 financial framework, in October 2005 the European Parliament, the Council and the Commission adopted a joint declaration in which they undertook to continue work on the legislative proposals currently being discussed and then, once the interinstitutional agreement had been adopted and on the basis of amended proposals by the Commission, to reach agreement on each of these proposals. Thus, in accordance with Article 250(2) of the EC Treaty and in order to facilitate this phase for each legislative act, the Commission has adopted a total of 30 proposals, 26 of which are amended and 4 new.

The proposals amended as a result of the IIA are as follows:

Programmes concerning the external policy of the Union and development cooperation:

Ø COD/2004/0219 ( European Neighbourhood and Partnership Instrument )

Ø COD/2004/0220 ( development co-operation and economic co-operation instrument )

Solidarity and Management of Migration Flows Programme (JHA):

Ø COD/2005/0046 (European Refugee Fund)

Ø COD/2005/0047 ( External borders fund, 2007-2013 )

Ø COD/2005/0049 ( European Return Fund )

Fundamental Rights and Justice Programme (JHA):

Ø COD/2005/0037/A (DAPHNE )

Ø COD/2005/0037/B ( drugs prevention and information )

RDT Framework Programme and specific programmes :

Ø COD/2005/0043 ( RDT Framework Programme )

Ø CNS/2005/0044 (Nuclear Research Programme )

Ø CNS/2005/0184 ( Joint Research Centre - JRC )

Ø CNS/2005/0185 ( Transnational cooperation specific programme )

Ø CNS/2005/0186 ( Specific programme Ideas, frontier research )

Ø CNS/2005/0187 (S pecific programme supporting researchers )

Ø CNS/2005/0188 (RDT Capacities specific programme )

Ø CNS/2005/0189 ( specific programme direct actions by the Joint Research Centre JRC )

Ø CNS/2005/0190 ( fusion energy, nuclear fission and radiation protection specific programme)

Employment and social cohesion Programme: COD/2004/0158

Programmes in the fields of youth and education:

Ø COD/2004/0152 ( Youth )

Ø COD/2004/0153 ( Education – lifelong learning )

Consumer Protection and Public Health Framework programme:

Ø COD/2005/0042/A ( Public health )

Ø COD/2005/0042/B ( Consumers )

Programme in the fields of energy, environment and transport :

Ø COD/2004/0218 ( LIFE+)

Ø COD/2004/0154 ( TransEuropean networks in the areas of energy and transport )

Ø CNS/2004/0221 ( Decommissioning of the Bohunice nuclear plant )

GALILEO ( radio-navigation by satellite ): COD/2004/0156

In terms of new proposals , the Commission has already submitted three in the area of agriculture and rural development policy and fisheries and aquaculture policy:

Ø CNS/2006/0081 ( fisheries and aquaculture )

Ø CNS/2006/0082 ( rural development )

Ø CNS/2006/0083 ( common agricultural policy ).

Certain legislative acts do not form part of this package of measures, in particular those on which political agreement has been reached since 17 May. For these measures, the Commission has played a full part in helping to bring about agreement between the arms of the legislative authority. The same applies to the acts for which conclusion of the interinstitutional agreement does not modify the Commission’s original proposal. For all the others, which are included in the package presented, the changes proposed by the Commission take account of the content of the interinstitutional agreement adopted, either in a simplified form, where the financial resources allocated to each programme must be adapted, or in a more detailed form where the structure or even the content of the act must be revised. It should also be noted that four of the amended proposals contain amendments already voted on by the European Parliament at first reading and that one proposal has been divided into two amended proposals in response to a request by the Council and the European Parliament, although Parliament has not yet proceeded to a first reading of this proposal.

Based on these amended proposals, the Commission calls on the European Parliament and the Council to continue their discussions of these proposals and conclude them as soon as possible in order to ensure that all the legal instruments are available in time for the effective launch of the programmes in January 2007.

PURPOSE: adoption of the seventh framework programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

PROPOSED LEGISLATIVE ACT: Decision of the Council.

CONTENT: The proposal for the Euratom Framework Programme, which covers the period 2007-2011, is based on article 7 of the Euratom Treaty. In accordance with this Article, the research programmes are drawn up for a period of not more than five years. Hence, the Commission’s proposal for the Euratom framework programme is not for the same duration as for the EC framework programme. The Commission proposes that, unless extenuating circumstances arise, this framework programme can be renewed for the period 2012-2013, in accordance with the foreseen legislative procedure.

The EURATOM Framework Programme is organised in two specific programmes.

One covers two areas:

– Fusion energy research: to develop the technology for a safe, sustainable, environmentally responsible and economically viable energy source.

– Nuclear fission and radiation protection: to promote the safe use and exploitation of nuclear fission and other uses of radiation in industry and medicine.

The other covers the activities of the Joint Research Centre in the field of nuclear energy. In this area, the objective is to provide scientific and technical support to the policy making process in the nuclear field, while ensuring stability of support to the implementation of existing policies and adapting to changing policy demands.

For further information concerning the financial implications of this measure, please refer to the financial statement.

COMMISSION’S IMPACT ASSESSMENT

For further information regarding the context of this issue, please refer to the summary of the Commission’s initial proposal COM(2005)0119 concerning a proposal for the Council decision on the 7 th Euratom Framework Programme (FP7) for research, technological development and demonstration activities (2007-2011).

1- POLICY OPTIONS AND IMPACTS

In examining policy options, 3 key factors were taken into account. Firstly, FP7 should be tailored to European S&T needs: acting as an instrument to promote Lisbon and other key policies, while addressing the specific needs of the diverse research players, and having a strong EU added value. Secondly, it should relate to the strong demand for new actions in the fields of industrial and basic research. Thirdly, it should respond to stakeholders’ requests for a more user-friendly and outcome-based FP.

1.1- Option 1 - the do-nothing option: this serves to analyse whether without EU intervention it is possible to reach the same objectives. It relates to a policy of no financial intervention at EU level in the field of research and technological development (discontinuation of FP). It is an essential benchmark for demonstrating the full added value of the FP7 proposal (option 3), which cannot be deduced simply from its marginal effect in relation to the status quo (option 2).

1.2- Option 2 - the business as usual option: this would mean launching FP7 as a continuation of FP6, with the same budget allocations, the same objectives, the same institutional actors, the same research priorities, the same instruments, etc. The premise underlying this option is that FP6 can adequately address the major challenges facing Europe in the next few years without introducing any major changes to its size, structure and organization. This option also responds most clearly to the important concerns about continuity and stability of EU research actions.

1.3- Option 3 - the proposed FP7: this concerns a restructured Framework Programme, twice as large as FP6, and designed so as to better respond to the targets set at Lisbon. It starts from the observation that circumstances have changed very significantly since the launching of FP6, and proposes an action that builds upon the accomplishments of FP6, but is characterised by a new scale, scope and ambition.

CONCLUSION: the Commission considers that the proposed FP7 combines incremental change with continuity. The continuity of FP7 compared with FP6 lies in the thematic priorities, which will be largely the same as under FP6, and the instruments, many of which will be the same as under FP6.

IMPACTS

Economic impacts: In order to estimate the possible aggregate economic impacts of the FP7 proposal, an econometric model was used. Various scenarios were simulated for long-term trends in FP funding and national/sectoral flows of financing. On the basis of this modelling, it is concluded that the estimated aggregate economic impacts of FP7 are large. Compared to its modest share of European public R&D funding, the FP achieves significant impacts, especially in the long-term, mainly because of high crowding-in and economic multiplier effects. The proposed doubling of FP7:

- Will boost Europe’s economic growth. Depending on the rate of growth of FP funding after FP7, doubling FP funding would generate at least 0.45 and up to 0.96 percent of extra GDP over and above the business-as-usual scenario of moderate growth in FP funding by the year 2030;

- Will create extra jobs for European citizens;

- Will raise Europe’s competitiveness and increase Europe’s R&D intensity.

The FP is more effective than national funding in reaching these results. On the other hand, under the no framework programme option:

- Europe would lose up to 0.84 percent of GDP by the year 2030 compared to the business-as-usual scenario and up to 800,000 jobs, 87,000 of them research-related;

- Extra-European exports would be lower by 2 percent and imports higher by 1.85 percent;

- Europe’s R&D intensity would be lower by 0.09 percent, making it harder to achieve the 3 percent objective.

More specifically, under the EURATOM Framework Programme, European research activities will be focussed on the vitally important international ITER project and, in parallel, will prepare the further steps in deploying fusion power. In addition, the EU’s leadership in this field strengthens European industry’s competitiveness in related technologies (e.g. superconducting magnets). Further significant benefits to industry will follow from the major role it will take following the decision to construct ITER in Europe.

Social impacts: the proposed FP7 has large potential aggregate social impacts . It will contribute to the achievement of the Lisbon strategy and to addressing the main future social and political challenges of Europe. FP7 can further enhance issues such as health and safety, human capital, self-sufficiency, etc.

Therefore, the new research effort in FP7 will enhance the impact of innovation and competitiveness, both on individual economic entities but ultimately also on the quality of life in society as a whole. The Lisbon Agenda and the European Research Area clearly identify the need for innovative and competitive technological progress in line with environmental and socio-economic needs.

Environmental impacts: advances in knowledge and innovation further sharpen the competitive edge of societies which possess the know-how and capacities and have become key factors in decoupling economic development from adverse environmental impacts .

Energy research under the EURATOM Treaty makes key contributions to the protection of the environment, and the reduction of greenhouse gas emissions and waste, for present and future nuclear power generation.

As far as the time dimension associated with these impacts is concerned, while showing significant results in the short term, investment in research shows its greatest impacts in the medium to long term as it takes time to transform research results into new products and processes.

2- FOLLOW-UP

- Monitoring of implementation management would be ensured by operational senior management within the Commission on a continuous basis with annual checkpoints and using a common set of management performance indicators. Adequate resource would be given to this process. The annual results of this exercise will be used to inform senior management and as an input to the ex post assessment exercise.

- An interim evaluation of the FP would be carried out by independent scientific panels which would assess the quality of the research activities, progress towards the objectives set and the scientific and technical results achieved. Such an interim evaluation of FP7 (of 7 years duration) would therefore take place 3-4 years after the start. It could be complemented by a similar exercise at the end of the programme to feed into the ex post assessment (see below).

- A coordinated programme of studies should be developed for: horizontal assessments of such topics as the impact of research on issues such as productivity, competitiveness and employment; structuring effects of the FP on the European Research Area (fragmentation, excellence, coordination) through the formation and development of commercial and knowledge networks, and the creation and support to infrastructures; and the impact of Community research on strategic decision making in companies and research organisations and national, European and regional authorities; assessment of impact and achievements at portfolio, programme and higher levels against the strategic objectives and indicators that are set within a clearly defined programme logic.

- An independent ex post programme evaluation of FP7 would be undertaken within 2 years of its completion. This would be supported by the coherent set of independent studies, and other evaluation activities carried out over the lifetime of the FP. The report of this exercise would be presented to all interested stakeholders, including the Parliament and Council. Furthermore, this report would feed into future ex ante evaluation and impact assessments by the Commission.

- Furthermore, ex-ante impact assessments will be carried out at FP level and at the level of specific programme areas before the next FP proposal is made. The articulation between ex-ante impact assessment and ex-post evaluation will also be enhanced, as recommended by the Ormala Report of December 2004, in particular through ensuring the two exercises are timed to feed into each other. Ex-post work will therefore be available in time for the impact assessment of future policy options, and, in turn, the new policy objectives and performance indicators will feed into later ex-post work.

PURPOSE: adoption of the seventh framework programme of the European Atomic Energy Community (Euratom) for nuclear research and training activities (2007-2011).

PROPOSED LEGISLATIVE ACT: Decision of the Council.

CONTENT: The proposal for the Euratom Framework Programme, which covers the period 2007-2011, is based on article 7 of the Euratom Treaty. In accordance with this Article, the research programmes are drawn up for a period of not more than five years. Hence, the Commission’s proposal for the Euratom framework programme is not for the same duration as for the EC framework programme. The Commission proposes that, unless extenuating circumstances arise, this framework programme can be renewed for the period 2012-2013, in accordance with the foreseen legislative procedure.

The EURATOM Framework Programme is organised in two specific programmes.

One covers two areas:

– Fusion energy research: to develop the technology for a safe, sustainable, environmentally responsible and economically viable energy source.

– Nuclear fission and radiation protection: to promote the safe use and exploitation of nuclear fission and other uses of radiation in industry and medicine.

The other covers the activities of the Joint Research Centre in the field of nuclear energy. In this area, the objective is to provide scientific and technical support to the policy making process in the nuclear field, while ensuring stability of support to the implementation of existing policies and adapting to changing policy demands.

For further information concerning the financial implications of this measure, please refer to the financial statement.