The European Union is set to officially announce that Israel will be invited to discuss integration into Europe’s fifth R&D ‘Eureka’ program. Unofficially, Israel has agreed to open negotiations at the beginning of May to discuss terms for participation. Joining the program would give Israeli companies that form joint ventures with companies from EU countries, the right to compete for some of the $14bn Eureka has available. There are concerns in Jerusalem that the official announcement will be accompanied by a political statement. A paper circulated by Manuel Marin, responsible for Middle East affairs, to the EU’s Council of Ministers sought to create linkage between Israel’s participation and the Middle East peace process. If such linkage appears in the official announcement, Israel’s Ministry for Foreign Affairs is liable to call for non-participation. The Ministry of Finance is also opposed to full participation and seeks Israeli participation on a project-by-project basis in order to save money. It is not clear whether such an approach would be accepted by the EU. Meanwhile the head of Israel’s Manufacturer’s Association export division, Moshe Nahum, called on the government to ensure participation, The program would provide Israeli industry and Israeli research institutes with new challenges of great strategic importance to the growth of future- oriented industries in Israel, while exploiting the huge technological infrastructure that Europe has. The Ministry of Trade and Industry is supporting participation.