1. FP7 Security Theme /1 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security Research Seventh Framework Programme 2007-2013 CAST kick off meeting 15-17 July 2009 Eva-Maria Engdahl Project officer

2. FP7 Security Theme /2 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry  Overview of FP7 and security thematic area  FP7 calls / budget  Rules of participation and funding  Grant agreement  Reporting  Costs  3 rd parties  Amendments  Security issues  AOB Overview

3. FP7 Security Theme /3 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry A set of coherent initiatives “European Security Research: The Next Steps” (Sept 2004) GoP report “Research for a secure Europe” (March 2004) time 2004 200520062007 “Towards an EU Defence Equipment Policy” (March 2003) PASR (2004-2006) European Security Research within FP 7 (2007 -2013) ESRAB (2005-2006) ESRAB report “Meeting the challenge: the European Security Research Agenda” (October 2006) 2008 Available on our website

4. FP7 Security Theme /4 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry  SP Cooperation 32.413 M€ 1. Health 2. Food, Agriculture &Biotechnology 3. Information & Communication Technologies 4. Nanosciences, Nanotechnologies, Materials & new Production Technologies 5. Energy 6. Environment (including Climate Change) 7. Transport (including Aeronautics) 8. Socio-economic Sciences & Humanities 9. Space 10. Security 1.400 M€ FP7 2007 – 2013

5. FP7 Security Theme /5 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry  4 Security missions / activities: 1. Security of citizens 2. Security of infrastructure and utilities 3. Intelligent surveillance and border security 4. Restoring security and safety in case of crisis  3 Cross cutting activities: 5. Security systems integration, interconnectivity and interoperability 6. Security and Society (CAST project) 7. Security Research coordination and structuring Security theme in FP7 2007 – 2013

6. FP7 Security Theme /6 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Who can participate?  Any undertaking, university or research centre or other legal entity, whether established in a:  Member State (MS), or  FP Associated Country (AC)*, or  Candidate Country, or  International organisations and participants from third countries can participate only if in addition to the minima * Iceland, Liechtenstein, Norway, Croatia, Serbia, Turkey, FYROM, Switzerland, Israel, Albania

7. FP7 Security Theme /7 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Funding rules Collaborative Projects (CAST)  Up to 75% for non ‑ profit public bodies, secondary and higher education establishments, research organisations and SMEs  Up to 50% for large industry  For the Security theme up to 75% in the case of the development of capabilities in domains with very limited market size and a risk of "market failure" and for accelerated equipment development in response to new threats (Coordination and support actions)  Up to 100%

8. FP7 Security Theme /8 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Upper funding limits Maximum reimbursement rates Research and technological development activities (*) Demonstration activities Management of the consortium activities Other activities Network of excellence 50% 75% (**) 100% Collaborative project = CAST (***) 50% 75% (**) 50%100% Coordination and support action 100% (*) Research and technological development includes scientific coordination. (**) For beneficiaries that are non profit public bodies, secondary and higher education establishments, research organisations and SMEs (***)The reimbursement of indirect eligible costs, in the case of coordination and support actions, may reach a maximum 7% of the direct eligible costs, excluding the direct eligible costs for subcontracting and the costs of reimbursement of resources made available by third parties which are not used on the premises of the beneficiary.

9. FP7 Security Theme /9 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry The FP7 Grant Agreement  Structure:  Core part: GA parameters, special clauses  Annex I: DoW (SAL and SCG annexed)  Annex II: General Conditions,  Annex III: Specific provisions for funding schemes  Annex IV, V & VI: Forms A,B & C  Annex VII: Form D terms of reference for the certificate of costs and Form E certificate on the methodology  Consortium Agreement mandatory

10. FP7 Security Theme /10 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Reporting (1/2)  Periodic reports to be submitted by coordinator 60 days after end of period:  overview of progress of the work, including a publishable summary report,  use of the resources and  Financial Statement (Form C)  Final reports to be submitted by coordinator 60 days after end of project:  publishable summary report, conclusions and socioeconomic impact,  covering wider societal implications and a plan on use and dissemination of foreground.

11. FP7 Security Theme /11 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Reporting (2/2)  Commission has 105 days to evaluate and execute the corresponding payment:  No tacit approval of reports  Automatic payment of interests (NEW)  After reception Commission may:  Approve  Suspend the time-limit requesting revision/completion  Reject them giving justification, possible termination  Suspend the payment

12. FP7 Security Theme /12 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Eligible cost  Eligible  actual*  during duration of project  in accordance with its usual accounting and management principles  recorded in the accounts of beneficiary  used for the sole purpose of achieving the objectives of the project  Non-eligible (identifiable indirect taxes including VAT…)

13. FP7 Security Theme /13 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Payment modalities  One pre-financing (upon entry into force) for the whole duration  Interim payment based on financial statements (EC contribution= amounts justified & accepted x funding rate) – after year 1  Retention (10%)  Final payment – after year 2

14. FP7 Security Theme /14 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Guarantee fund  No financial collective responsibility, instead a participant’s Guarantee Fund to cover financial risks  However, there is “technical responsibility” to carry out the project jointly and severally vis-à-vis the Commission.  The contribution equals 5% of the EC financial contribution foreseen for each participant  The Fund belongs to all beneficiaries of the grant agreement  All beneficiaries contribute to the Fund to insure against financial losses of the project  In principle the amount contributed to the Fund will be reimbursed at the end of the project

15. FP7 Security Theme /15 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Third parties Third parties carrying part of the work  Subcontracts: tasks have to be indicated in Annex I  awarded according to best value for money  External support services may be used for assistance in minor tasks (not to be indicated in Annex I) Third parties making available resources  “Third parties”: to be indicated in Annex I,  Costs may be claimed by the beneficiary  Resources “free of charge” may be considered as receipts

16. FP7 Security Theme /16 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Amendments (1)  Coordinator requests amendments on behalf of the consortium  Coordinator can accept an amendment proposed by the Commission (NEW)  For addition/withdrawal tacit approval after 45 days

17. FP7 Security Theme /17 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Potential modifications:  Participation in the consortium  accession of a new beneficiary  withdrawal of a beneficiary  Replacement of the coordinator  Re-allocation of budget and tasks  (Major) modification of the Description of Work  Modification of the duration of the activity  Modification of reporting periods Amendments (2)

18. FP7 Security Theme /18 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security issues: legal base Core Grant Agreement : special clauses 21 and 22 Annex 1 (DoW) SAL (Security Aspect Letter) SCG (Security Classification Guide) Guidelines for handling classified information in FP7 project (DRAFT) COM(2001)844 (revision on-going)

19. FP7 Security Theme /19 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security issues: Core Grant Agreement Special clause 21 When classified information is used as background, or is planned to be generated as foreground, or is actually generated as foreground, or if export or transfer licences are required for the transfer of dangerous materials or substances4 or where a topic is subject to specific national or European security related legal restrictions, a Security Aspect Letter (SAL) is annexed to this grant agreement as an integral part of Annex I. Special clause 22 1.Each beneficiary shall comply with any security requirements prescribed by the Security Aspect Letter (SAL) attached to Annex I of this grant agreement. The Commission may terminate the grant agreement or the participation of the beneficiary(ies), in accordance with Article II.38, in case of non compliance with this obligation. Such action shall be without prejudice to any further legal action. 2.This SAL is valid throughout the duration of the project. 3.The beneficiaries of this grant agreement shall via the Coordinator inform the Commission of any change of security requirements emerging during the performance of the project. Any such change shall be introduced in the SAL by means of an amendment following the rules on amendments of Annex I. 4.In cases where a beneficiary cannot comply with increased security requirements, the grant agreement shall be terminated. 5.The beneficiaries shall ensure that any subcontractor or other third party complies with the security requirements set out in the SAL.

20. FP7 Security Theme /20 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security issues: Annex 1 DoW : SAL (Security Aspect Letter) The performance of the grant agreement will involve information classified CONFIDENTIAL UE. A Facility Security Clearance is required. Persons who need to access EU classified information must have an EU personal security clearance and be briefed as to their responsibility for security[1].[1] The beneficiaries concerned shall take all measures prescribed by the National Security Authority/Designated Security Authority (NSA/DSA) for safeguarding EUCI. The beneficiaries concerned shall appoint a Facility Security Officer (FSO). The beneficiaries concerned, through the FSO, shall maintain a continuing relationship with his NSA/DSA. The beneficiaries concerned shall maintain a record of his employees taking part in the project and who have been cleared for access to EUCI. EU classified information for the purpose of these instructions is to be understood as information classified and marked CONFIDENTIAL UE or its equivalent national classification. Information generated by the beneficiaries concerned will require EU classification and marking. Continued on next slide

21. FP7 Security Theme /21 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security issues: Annex 1 DoW : SAL (Security Aspect Letter – cont.) The beneficiaries concerned must obtain the approval of the Contracting Authority before beginning negotiations with a view to subcontract. The Commission Security Directorate may - in co-ordination with the responsible NSA/DSA - conduct inspections at beneficiaries’ facilities concerned to verify the implementation of the security requirements for the handling of EUCI. The beneficiaries concerned shall report all cases of unauthorised disclosure or loss of EUCI to the responsible NSA/DSA, the Commission Security Directorate and the Contracting Authority. All EUCI provided or generated under this grant agreement shall continue to be protected in the event of termination of the grant agreement. The beneficiaries concerned shall undertake not to utilise the EUCI provided or generated, other than for the specific purpose of the grant agreement Handling and storage instructions for information classified CONFIDENTIAL UE [1][1] See Commission Decision 2001/844/EC, Rules on Security Section 19.1

22. FP7 Security Theme /22 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Security issues: Annex 1 DoW : SCG (Security Classification Guide)

23. FP7 Security Theme /23 CAST Kick-off meeting 15 July '09 – Salzburg Eva-Maria Engdahl - European Commission – DG Enterprise & Industry Guidance documents  Guide to financial issues  IPR guide  Consortium agreement checklist  Guidance notes on certificates on methodology  Reporting guidelines  Guideline for handling classified information More information Find a document -> http://cordis.europa.eu/fp7/find-doc_en.htmlhttp://cordis.europa.eu/fp7/find-doc_en.html EU Security research websites:  http://ec.europa.eu/enterprise/security http://ec.europa.eu/enterprise/security  http://cordis.europa.eu/fp7/calls/ http://cordis.europa.eu/fp7/calls/ Helpdesks:  ENTR-security-research@ec.europa.eu ENTR-security-researchec.europa.eu  Centralised FP7 Helpdesk Enquiries Service: http://ec.europa.eu/research/enquirieshttp://ec.europa.eu/research/enquiries