Decision 2000/819/EC is hereby amended as follows:

1. 1.

   Article 5(1) shall be replaced by the following:

   ‘1.

   The Commission shall submit to the European Parliament and to the Council an annual report on the implementation of the financial instruments of this programme for 2004 as well as a similar end report for 2005 (the final year).’;

2. 2.

   Annex I shall be amended as follows:

   1. (a)

      in the first indent of point 4(a)(i), the first sentence shall be replaced by the following:

      1. ‘—

         by investing in relevant specialised venture capital funds, particularly in seed funds, smaller funds, funds operating regionally or funds focused on specific sectors or technologies, or venture capital funds financing R&D, e.g. funds linked to research centres and science parks which in turn provide risk capital for SMEs.’;

   2. (b)

      in point 4(a)(i) the following subparagraph shall be added:

      ‘The start-up phase is normally defined as up to five years. However, for companies in specific high technology sectors, in particular life sciences, the start-up phase can be up to 10 years, due to the extended pre-commercialisation product development and testing phases that are characteristic of these particular sectors.’;

   3. (c)

      in point 4(a)(iv), the following subparagraphs shall be added:

      ‘The Joint European Venture programme shall be phased out.

      The financial intermediaries may present applications for financial contributions from SMEs to the Commission until 29 December 2004.

      Applications and projects shall be dealt with according to Article 4 and Annex II of Council Decision 98/347/EC of 19 May 1998 on measures of financial assistance for innovative and job-creating small and medium-sized enterprises (SMEs) — the growth and employment initiative8.’

   4. (d)

      in the first indent of point 5, the word ‘fifth’ shall be deleted;

3. 3.

   in Annex II, point IV shall be deleted.