COOPERATION AGREEMENT between the European Economic Community and the Republic of Finland on a European Stimulation Plan for Economic Science (SPES)

THE EUROPEAN ECONOMIC COMMUNITY,

hereinafter called 'the Community', and

THE REPUBLIC OF FINLAND,

hereinafter called 'Finland',

both hereinafter called the 'Contracting Parties',

WHEREAS, by Decision 89/118/EEC, the Council of the European Communities, hereinafter called 'the Council', adopted a European stimulation plan for economic science (1989 to 1992) (SPES), hereinafter called 'the SPES programme';

WHEREAS the Contracting Parties concluded a Framework Agreement for scientific and technical cooperation which entered into force on 17 July 1987;

WHEREAS the association of Finland with the SPES programme can contribute to the overall strengthening of Europe's scientific potential;

WHEREAS the Contracting Parties expect to obtain mutual benefit from Finland's association with the SPES programme,

HAVE AGREED AS FOLLOWS:

Article 1

Finland is hereby associated, as from 1 January 1989, with the implementation of the SPES programme as set out in Annex A.

Article 2

The financial contribution of Finland, deriving from its association with the implementation of the SPES programme, shall be established in proportion to the amount available each year in the general budget of the European Communities for appropriations covering commitments to meet financial obligations of the Commission of the European Communities, hereinafter referred to as 'the Commission', resulting from work to be carried out in the framework of research contracts necessary to the implementation of the SPES programme and from management and administrative operating expenditure for the SPES programme.

The proportionality factor governing Finland's contribution shall be given by the ratio between Finland's gross domestic product (GDP), at market prices, and the sum of gross domestic products, at market prices, of the Member States of the Community and of Finland. This ratio shall be calculated on the basis of the latest available statistical data from the Organization for Economic Cooperation and Development (OECD).

The funds estimated as necessary for the execution of the SPES programme, the amount of Finland's contribution and the timetable of the commitment estimates are set out in Annex B.

The rules governing Finland's financial contribution to the execution of the SPES programme are set out in Annex C.

Article 3 For Finnish research and development bodies and persons, the terms and conditions for the submission and evaluation of proposals and the terms and conditions for the granting and conclusion of contracts under the SPES programme shall be the same as those applicable to research and development bodies and persons in the Community.

The contracts, drawn up by the Commission, shall define the rights and obligations of Finnish research and development bodies and persons, and in particular the methods of disseminating, protecting and exploiting the research results.

Article 4

During the third year of the SPES programme, the Commission shall address a report to the European Parliament and to the Council on the basis of an evaluation of the results so far achieved. This report shall be accompanied by suggestions for changes which may be necessary in the light of these results. A copy of that report shall be transmitted to Finland which in addition shall be informed of any possible suggestions for changes.

Article 5

Each Contracting Party undertakes, in accordance with its respective rules and regulations, to facilitate the movement and residence of research workers participating in Finland and in the Community in the activities covered by this Agreement.

Article 6

The Commission and the Academy of Finland shall ensure the implementation of this Agreement.

Article 7

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Economic Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of the Republic of Finland.

Article 8

1. This Agreement is concluded for the duration of the SPES programme.

Should the Community revise the SPES programme, the Agreement may be denounced under mutually agreed conditions. Finland shall be notified of the exact content of the revised programme within one week after its adoption by the Community. The Contracting Parties shall notify each other within three months after the Community decision has been adopted if any termination of the Agreement is envisaged.

2. Where the Community adopts a new research and development programme in the field of economic science, this Agreement may be renegotiated or renewed under mutually agreed conditions.

3. Subject to paragraph 1, either Contracting Party may at any time terminate the Agreement with six months' notice. The projects and work in progress at the time of termination and/or expiry of this Agreement shall be continued until they are completed under the conditions laid down in this Agreement.

Article 9

The Annexes A, B and C to this Agreement shall form an integral part thereof.

Article 10

This Agreement shall be approved by the Contracting Parties in accordance with their existing procedures.

It shall enter into force on the date on which the Contracting Parties notify each other of the completion of the procedures necessary for this purpose.

Article 11

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, French, German, Greek, Italian, Portuguese and Spanish languages, each of these texts being equally authentic.

ANNEX A

OBJECTIVES AND SUMMARY OF THE EUROPEAN PLAN TO STIMULATE ECONOMIC SCIENCE (1989 to 1992) (SPES)

1. The programme consists of a range of activities which have as their aim the establishment of a network of cooperation and interchange between economists of the highest professional quality at Community level.

The purpose of these activities is to:

- stimulate the mobility of Community economists and cooperation on joint research projects or networks by researchers of the Community Member States,

- improve training by encouraging doctoral students and researchers of the Community Member States to continue with their work in Community universities or research centres other than those of their country of origin,

- encourage young economists to return to the Community if they have been working for some time in centres of excellence in non-Community countries,

and

- favour or support the exchange of knowledge and information between researchers in economic science of Community Member States.

2. The programme shall be implemented by the following actions:

- scholarships, research grants, grants for multinational networks or research projects,

and

- subsidies for high-level training courses, organized in collaboration with the scientific communities concerned, and facilitating the carrying out of surveys and studies as well as access to data banks.

3. Consideration shall be given to applications for financial support made by individuals or institutions which satisfy each of the following criteria:

(a) scientific excellence;

(b) the multinational European aspects (transnational cooperation or activity outside the country of origin);

(c) the European interest of the substance of the research either in terms of its general scientific value or its applied analytical content.

Where scientific and technical quality is comparable, particular attention will be given to projects likely to reduce scientific and technical development disparities between Member States and thereby to contribute to economic and social cohesion within the European Communities.

4. Topics of research are, inter alia:

(i) the Community's internal market programme and issues of microeconomic analysis, including industrial organization and the economics of regulatory policies (e.g. standards);

(ii) European integration economics, including issues of intra-European regional North-South relations;

(iii) the determinants of economic growth in Western Europe, including dynamic factors, such as advanced technology and innovation, and constraints, such as environmental concerns;

(iv) systematic issues in the monetary areas and macroeconomic and fiscal policy coordination;

(v) problems of trade policy and the role of Western Europe in the international division of labour;

(vi) employment, health and social policy issues, which have quite different characteristics in Western Europe, compared to the United States of America or Japan;

and

(vii) methodological and modelling problems relevant to the abovementioned subjects or otherwise of fundamental interest, the setting up of statistical concepts and adequate technical, social and economic indicators, as well as more precise economic models.

ANNEX B

FINANCIAL PROVISIONS

Article 1

The amount estimated as necessary to carry out the SPES programme shall be ECU 6 000 000.

Article 2

Finland's financial contribution for the execution of the SPES programme is estimated to be ECU 121 200.

Article 3

The timetable of the commitment estimates and of Finland's financial contribution is given in the following table.

Timetable of the commitments estimated as necessary for the execution of the SPES programme (commitment appropriations) and of Finland's contribution

(in ecus)

Year

Commitments for Finland's contribution

Management and administrative operation

Contracts

Total

Management and administrative operation

Contracts

Total

1989

170 000

830 000

1 000 000

3 434

16 766

20 200

1990

260 000

1 740 000

2 000 000

5 252

35 148

40 400

1991

300 000

1 700 000

2 000 000

6 060

34 340

40 400

1992

320 000

680 000

1 000 000

6 464

13 736

20 200

Grand total

1 050 000

4 950 000

6 000 000

21 210

99 990

121 200

ANNEX C

FINANCING RULES

Article 1

These provisions lay down the financing rules for Finland referred to in Article 2 of the Agreement.

Article 2

At the beginning of each year, or whenever the SPES programme is revised so as to involve an increase in the amount estimated as necessary for its implementation, the Commission shall send to Finland a call for funds corresponding to its contribution to the costs provided under the Agreement.

This contribution shall be expressed both in ecus and in the Finnish currency, the composition of the ecu being defined in Council Regulation (EEC) No 3180/78. The value in Finnish currency of the contribution in ecus shall be determined on the date of the call for funds.

Finland shall pay its contribution to the annual costs under the agreement at the beginning of each year and at the latest three months after the call for funds is sent. Any delay in the payment of the contribution shall give rise to the payment of interest by Finland at a rate equal to the highest discount rate obtaining in the Member States of the Community on the due date. The rate shall be increased by 0,25 of a percentage point for each month of delay.

The increased rate shall be applied to the entire period of delay. However, this interest shall be payable only if the contribution is paid more than three months after a call for funds has been made by the Commission.

Article 3

The funds paid by Finland shall be credited to the SPES programme as budget receipts allocated to its appropriate heading in the statement of revenue of the general budget of the European Communties.

Article 4

The financial Regulation in force applicable to the general budget of the European Communities shall apply to the management of the appropriations.

Article 5

At the end of each year, a statement of appropriations of the SPES programme shall be prepared and transmitted to Finland for information.