REPORT 1. concerning discharge to the European Foundation for the Improvement of Living and Working Conditions for the 2000 financial year
(C5-0126/2002 - 2001/2111(DEC)) 2. concerning discharge for the European Centre for the Development of Vocational Training for the 2000 financial year
(C5-0127/2002 - 2001/2112(DEC)) 3. concerning discharge for the European Agency for Reconstruction for the 2000 financial year
(C5-0673/2001 - 2001/2238(DEC))
25 March 2002
Committee on Budgetary Control
Rapporteur: Bart Staes
PROCEDURAL PAGE
European Foundation for the Improvement of Living and Working Conditions, Dublin
By letter of 11 June 2001, the Court of Auditors forwarded to Parliament its report on the financial statements and management of the European Foundation for the Improvement of Living and Working Conditions (Dublin Foundation) for the financial year ended 31 December 2000, together with the Foundation's replies (2001/2111(DEC)).
At the sitting of 14 March 2002, the President of Parliament announced that he had referred this document to the Committee on Budgetary Control as the committee responsible (C5-0126/2002).
On 6 March 2002 the Council forwarded to Parliament its recommendation of 5 March 2002 on the discharge to be given to the Administrative Board of the European Foundation for the Improvement of Living and Working Conditions in respect of the implementation of the statement of revenue and expenditure of the Foundation for the 2000 financial year.
At the sitting of 14 March 2002, the President of Parliament announced that he had referred this document to the Committee on Budgetary Control (C5-0122/2002).
European Centre for the Development of Vocational Training, Thessaloniki
By letter of 11 June 2001, the Court of Auditors forwarded to Parliament its report on the financial statements of the European Centre for the Development of Vocational Training (Cedefop – Thessaloniki) for the financial year ended 31 December 2000, together with the Centre’s replies (2001/2112(DEC)).
At the sitting of 14 March 2002 the President announced that he had referred this document to the Committee on Budgetary Control as the committee responsible (C5-0127/2002).
On 6 March 2002 the Council forwarded to Parliament its recommendation of 5 March 2002 on the discharge to be given to the Management Board of the European Centre for the Development of Vocational Training in respect of the implementation of the statement of revenue and expenditure of the Centre for the 2000 financial year.
At the sitting of 14 March 2002, the President of Parliament announced that he had referred this document to the Committee on Budgetary Control (C5-0121/2002).
European Agency for Reconstruction, Kosovo
By letter of 9 November 2001 the Court of Auditors forwarded to Parliament its report on the financial accounts of the European Agency for Reconstruction for the financial year ended 31 December 2000, together with the Commission's and the Agency’s replies (2001/2238(DEC)).
At the sitting of 13 December 2001 the President announced that she had referred this document to the Committee on Budgetary Control as the Committee responsible and the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy and the Committee on Industry, External Trade, Research and Energy for their opinions (C5-0673/2001).
On 6 March 2002 the Council forwarded to Parliament its recommendation of 5 March 2002 on the discharge to be given to the Director in respect of the implementation of the Agency's budget for the 2000 financial year.
At the sitting of 14 March 2002, the President of Parliament announced that he had referred this document to the Committee on Budgetary Control as the Committee responsible and the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy and the Committee on Industry, External Trade, Research and Energy for their opinions (C5-0123/2002).
The Committee on Budgetary Control had appointed Bart Staes rapporteur at its meeting of 6 November 2001.
The committee considered the reports of the Court of Auditors, the Council's recommendations and the draft report at its meetings of 3 December 2001, 19 February 2002 and 19 March 2002.
At the latter meeting it adopted:
1. the proposal for a decision concerning discharge to the Administrative Board of the European Foundation for the Improvement of Living and Working Conditions in respect of the implementation of its budget for the 2000 financial year
2. the proposal for a decision concerning discharge to the Management Board of the European Centre for the Development of Vocational Training in respect of the implementation of its budget for the 2000 financial year
3. the proposal for a decision concerning discharge to the Director of the European Agency for Reconstruction in respect of the implementation of its budget for the 2000 financial year
by 15 votes to 2.
The following were present for the vote: Diemut R. Theato, chairman; Herbert Bösch, Paulo Casaca and Freddy Blak, vice-chairmen; Bart Staes, rapporteur; María Antonia Avilés Perea, Mogens N.J. Camre, Christopher Heaton-Harris, Helmut Kuhne, Brigitte Langenhagen, John Joseph McCartin (for Jean-Louis Bourlanges), Eluned Morgan, Jan Mulder (for Antonio Di Pietro), Ole Sørensen, Gabriele Stauner, Ursula Stenzel (for Mónica Ridruejo) and Michiel van Hulten.
The explanatory statement will be presented orally in plenary sitting.
The opinion of the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy is attached. The Committee on Industry, External Trade, Research and Energy decided on 24 January 2002 not to deliver an opinion.
The report was tabled on 25 March 2002.
The deadline for tabling amendments will be indicated in the draft agenda for the relevant part-session.
PROPOSAL FOR A DECISION
1. Decision of the European Parliament concerning discharge to the Administrative Board of the European Foundation for the Improvement of Living and Working Conditions in respect of the implementation of its budget for the 2000 financial year
(C5-0126/2002 – 2001/2111(DEC))
The European Parliament,
- having regard to the report of the Court of Auditors on the financial statements and management of the European Foundation for the Improvement of Living and Working Conditions for the financial year ended 31 December 2000, together with the Foundation’s replies[1] (C5-0126/2002),
- having regard to the Council Recommendation of 5 March 2002 (C5-0122/2002),
- having regard to Article 276 of the EC Treaty,
- having regard to Rule 93 of and Annex V to its Rules of Procedure,
- having regard to the report of the Committee on Budgetary Control (A5-0101/2002),
A. whereas the Dublin Foundation pursues its mission to contribute to the planning and establishment of better working conditions through action designed to increase and disseminate knowledge likely to assist this development by following six mid-term research priorities, namely, in the areas of employment practice, worker participation, equal opportunities, social cohesion, health and well-being and sustainable development,
B. whereas, on the basis of the Code of Conduct of 14 July 1998, the Committee on Employment and Social Affairs is responsible for monitoring the work of the Dublin Foundation, which in 2000 received a subsidy of EUR 14.7 m,
C. whereas on 4 April 2001[2] Parliament gave discharge to the Administrative Board of the Foundation in respect of the implementation of its budget for the 1999 financial year and, at the same time:
- -called on the Foundation to have an external assessment carried out with a view to determining how the key stakeholders rate the Foundation and what impact the Foundation’s activities have,
- -called on the Foundation to submit an action plan before the end of 2001,
- -called for an assessment of the existing cooperation between the agencies and an analysis of the advantages and disadvantages of a merger between the European Foundation for the Improvement of Living and Working Conditions and the European Agency for Safety and Health at Work,
D. whereas the Court of Auditors has obtained reasonable assurance that the accounts for the financial year ended 31 December 2000 are reliable and the underlying transactions are, taken as a whole, legal and regular[3],
1. Notes the following figures for the accounts of the European Foundation for the Improvement of Living and Working Conditions:
|
2000 FINANCIAL YEAR |
(€ ‘000) | |
|
(a) |
Revenue |
14941 |
|
1. Subsidy from the Commission |
14700 | |
|
2. Miscellaneous revenue |
212 | |
|
3. Revenue from services rendered against payment |
29 | |
|
(b) |
Expenditure |
14438 |
|
Title I – Staff expenditure | ||
|
1. Payments for the year |
7057 | |
|
2. Appropriations carried over |
146 | |
|
Title II – Administrative expenditure | ||
|
1. Payments for the year |
1123 | |
|
2. Appropriations carried over |
248 | |
|
Title III – Operating expenditure | ||
|
1. Payments for the year |
2681 | |
|
2. Appropriations carried over |
3183 | |
|
Balance for the year |
- 1212 | |
|
Outturn for the year ((a) – (b)) |
503 | |
|
Amount received from the Commission |
- 1859 | |
|
Appropriations carried over from the previous year which lapsed |
158 | |
|
Exchange rate differences for the year |
- 14 |
Dublin Foundation
2. Expresses concern at the volume of appropriations carried over from 2000 to 2001, appropriations which totalled EUR 3.6 m or 25% of the commitments entered into (EUR 14.4 m);
3. Urges the Foundation to take steps to ensure better monitoring of the implementation of its budget with the aim of keeping carryovers and cancellations of appropriations to a minimum and bringing an end to the situation whereby a large volume of appropriations is not disbursed; takes account of the installation of a computerised planning/monitoring system, improved scheduling of tender procedures and changes in the timing of the Administrative Board meeting (from November to October) at which it approves the annual work programme;
4. Notes the replies given by the Foundation to the observations made by the Court of Auditors concerning the shortcomings in the accounting systems employed; welcomes the installation of an appropriate computerised system (the EXACT system) for maintenance of general ledger accounts; calls on the Foundation to take steps to ensure that all shortcomings have been remedied in time for the 2001 discharge;
5. Regrets the fact that in 2000 the Foundation continued to make excessive use of imprest accounts, whereby in 2000 18% of all payments were still made via such accounts;
6. Welcomes the completion of the staff assessment exercise for the two-year period ending 31 December 2001, using staff reports for nearly all assessments; notes with satisfaction that the Foundation has used the Commission’s 'staff assessment handbook' and improved staff management and information arrangements during 2001;
External assessment
7. Notes that the Administrative Board commissioned an external evaluation report in March 2000 which will be examined by the Board at its meeting in March 2002; insists on the immediate adoption of an action plan for implementation of the report’s recommendations; requests that a copy of the report and the action plan be sent to the European Parliament;
Parliament
8. Calls on its committees responsible to re-examine the division of labour between the European Foundation for the Improvement of Living and Working Conditions and the European Agency for Safety and Health at Work with regard to safety and health related issues with a view to avoiding duplication of work and fostering synergies between their activities;
9. Notes that the financial statements of only a minority of decentralised agencies are currently subject to individual discharge procedures in the European Parliament; calls upon the Commission to present proposals for the revision of the legal bases of all agencies with a view to applying the principle of individual discharge procedures to all decentralised agencies;
10. Welcomes the efforts of the Committee on Employment and Social Affairs to make proposals for a revision of the present guidelines for cooperation between the committees responsible for the specialist agencies; takes the view that revision of the guidelines should concentrate on the following aspects:
- -ensuring there are adequate control mechanisms in the specialist committees,
- -ensuring there is transparency in the budget procedure,
- -strengthening the mutual duty to inform,
- -clear division of powers between the relevant committees;
Discharge decision11. Gives discharge to the Administrative Board of the European Foundation for the Improvement of Living and Working Conditions in respect of the implementation of its budget for the 2000 financial year, on the basis of the report of the Court of Auditors;
12. Instructs its President to forward this decision to the Administrative Board of the European Foundation for the Improvement of Living and Working Conditions, the Council, the Commission and the Court of Auditors and to have it published in the Official Journal (L series).
PROPOSAL FOR A DECISION
2. Decision of the European Parliament concerning discharge to the Management Board of the European Centre for the Development of Vocational Training in respect of the implementation of its budget for the 2000 financial year
(C5-0127/2002 – 2001/2112(DEC))
The European Parliament,
- having regard to the report of the Court of Auditors on the financial statements and management of the European Centre for the Development of Vocational Training for the financial year ended 31 December 2000[1] (C5-0127/2002),
- having regard to the Council Recommendation of 5 March 2002 (C5-0121/2002),
- having regard to Article 276 of the EC Treaty,
- having regard to Rule 93 of and Annex V to its Rules of Procedure,
- having regard to the report of the Committee on Budgetary Control (A5-0101/2002),
A. whereas the Thessaloniki Centre pursues its mission of promotion and development of vocational education and training at Community level by compiling and disseminating documentation, conducting research and providing a discussion forum,
B. whereas the conclusions of the Lisbon European Council in March 2000 gave education and training further impetus and recognised the development of a learning society as the means to achieve the strategic goal of a competitive and dynamic knowledge-based economy which combines employment, economic growth and social cohesion,
C. whereas, on the basis of the Code of Conduct of 14 July 1998, the Committee on Employment and Social Affairs is responsible for monitoring the Thessaloniki Centre, which in 2000 received a subsidy of EUR 13.6 m,
D. whereas the European Parliament, in its discharge of Cedefop for 1999, called for the presentation of an Action Plan in the light of the external evaluation before the end of 2001,
E. whereas, in the 1999 discharge, Parliament expressed the fear that the activities of the European Centre for the Development of Vocational Training may duplicate those of the European Training Foundation (Turin) and called for an analysis of the advantages and disadvantages of a merger between the two agencies,
F. whereas the Court of Auditors has obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2000 are reliable and the underlying transactions are, taken as a whole, legal and regular,
1. Notes the following figures for the accounts of the European Centre for the Development of Vocational Training:
|
20000 FINANCIAL YEAR |
(€ ‘000) | |
|
(a) |
Revenue |
13993 |
|
1. Subsidy from the Commission |
13667 | |
|
2. Miscellaneous revenue |
122 | |
|
3. Earmarked revenue |
204 | |
|
(b) |
Expenditure |
13152 |
|
Title I – Staff expenditure | ||
|
1. Payments for the year |
6881 | |
|
2. Appropriations carried over |
282 | |
|
Title II – Administrative expenditure | ||
|
1. Payments for the year |
781 | |
|
2. Appropriations carried over |
201 | |
|
Title III – Operating expenditure | ||
|
1. Payments for the year |
3021 | |
|
2. Appropriations carried over |
2238 | |
|
Balance for the year |
- 228 | |
|
Outturn for the year |
841 | |
|
Balance carried over from the previous year |
- 520 | |
|
Appropriations carried over from the previous year which lapsed |
182 | |
|
Exchange differences for the year |
- 34 |
Thessaloniki Centre
2. Regrets the fact that Cedefop has failed to take full account of the observations made by the Court of Auditors in its 1999 annual report and to honour its own undertakings regarding the procedures it itself decided to implement in connection with the award of contracts, in particular for informatics-related projects in the area of electronic communication;
3. Welcomes the decision taken by the Greek authorities on 16 May 2001 to transfer to Cedefop ownership of the building and site in Thessaloniki;
4. Welcomes the external evaluation report of Cedefop which provides a comprehensive view of the performance of the Centre since the last evaluation in 1995; notes that the final evaluation report assesses positively the effectiveness and impact of the work of the Centre since 1995 and its cooperation with other organisations;
5. Welcomes the Action Plan drafted by the Management Board (29.11.2001) as a follow-up to the final report of the external evaluation of Cedefop; notes that the Action Plan takes into account the Commission’s position paper and assesses the validity of all conclusions and recommendations formulated in the evaluation report;
6. Welcomes the fact that Cedefop promises to implement the Action Plan in conformity with the objectives and time-schedule indicated; welcomes the proposal that the Director will report on progress annually (November meetings) to the Management Board, which will forward the results to the European Parliament;
Cooperation with the European Training Foundation (ETF) - Turin
7. Notes that the evaluation concludes that cooperation between the two Agencies is satisfactory and that, at present, ETF makes appropriate use of Cedefop as a resource centre;
8. Welcomes the fact that, at the request of the Commission, the two Agencies have drawn up a cooperation framework which was agreed by the Cedefop and ETF Boards in March and June 2001 respectively; welcomes that this joint framework paper sets out the overall objectives of this new cooperation, namely the preparation of the applicant countries for full participation in Cedefop at a time of accession and the means of facilitating the participation and involvement of applicant countries in the policy development of the Community during the transition period;
9. Insists that the Centre should ensure that this new cooperation framework with the EFT is now fully implemented, in particular by making full and frequent use of the joint working group that has been set up for that purpose;
Parliament
10. Calls on its committees responsible to monitor closely the activities and results of the Thessaloniki Centre and the Turin Foundation with a view to assessing the effectiveness of the framework agreement concluded in 2001;
Discharge decision
11. Gives discharge to the Management Board of the European Centre for the Development for Vocational Training in respect of the implementation of its budget for the 2000 financial year, on the basis of the report of the Court of Auditors;
12. Instructs its President to forward this decision to the Management Board of the European Centre for the Development for Vocational Training, the Council, the Commission and the Court of Auditors and to have it published in the Official Journal (L series).
- [1] OJ C 372, 28.12.2000, p. 37.
PROPOSAL FOR A DECISION
3. Decision of the European Parliament concerning discharge to the Director of the European Agency for Reconstruction in respect of the implementation of its budget for the 2000 financial year
(C5-0673/2001 – 2001/2238 (DEC))
- having regard to the report of the Court of Auditors concerning the financial accounts of the European Agency for Reconstruction and the implementation of aid for Kosovo for the year 2000, accompanied by the replies of the Commission and of the European Agency for Reconstruction[1] (C5-0673/2001),
- having regard to the 2000 annual report from the Commission to the European Parliament and the Council on the European Agency for Reconstruction (COM(2001) 446),
- having regard to the Council Recommendation of 5 March 2002 (C5-0123/2002),
- having regard to Article 276 of the EC Treaty,
- having regard to Rule 93 of and Annex V to its Rules of Procedure,
- having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy (A5-0101/2002),
A. whereas as early as July 1999, immediately after the war in Kosovo, the Commission set up the EC TAFKO Task Force to implement the first stages in the reconstruction programme,
B. whereas in February 2000 the European Agency for Reconstruction took over EC TAFKO’s programmes and incorporated them into its programme for 2000,
C. whereas the challenge of reconstructing Kosovo was and is enormous due to the fact that physical and human damage is widespread in a province devastated by a decade of chronic under-investment, neglect and abuse of human rights; whereas safeguarding sustainability of the investments in Kosovo is a pre-requisite for sound and efficient management of the EU budgetary resources allocated to this region,
D. whereas the Agency’s strategy involves moving from the emergency actions which characterised the international community’s assistance in 1999 to longer-term measures aimed at sustainable reconstruction and recovery,
E. whereas nevertheless emergency actions continued well into 2000, concerning in particular the provision of basic public utilities like electricity, water and waste collection as well as emergency measures to restore key infrastructure like the transport network,
F. whereas the Court of Auditors takes the view that the administration of the Agency and its budgetary management in 2000 were very efficient, the result being that the Agency achieved the most ambitious objectives it had set for its first year of activity in the spheres of energy, housing, transport and agriculture,
G. whereas the Court of Auditors judges that the Agency paid attention to the principles of efficiency and economy and that, through the very flexible application of the rules in force, it has succeeded in keeping prices low and stimulating the regional economy,
H. whereas the Court of Auditors has obtained reasonable assurance that the annual accounts for the financial year ended 31 December 2000 are reliable and that the underlying transactions are, taken as a whole, legal and regular,
1. Notes the following figures for the accounts of the European Agency for Reconstruction:
|
20000 FINANCIAL YEAR |
(€ ‘000) | |
|
(a) |
Revenue |
258788 |
|
1. Revenue received from the Commission |
257933 | |
|
2. Own revenue |
680 | |
|
3. Sundry revenue |
175 | |
|
(b) |
Expenditure |
268030 |
|
Title I – Staff expenditure | ||
|
1. Payments for the year |
4632 | |
|
2. Appropriations carried over |
131 | |
|
Title II – Administrative expenditure | ||
|
1. Payments for the year |
2078 | |
|
2. Appropriations carried over |
1670 | |
|
Title III – Operating expenditure | ||
|
1. Payments for the year |
139786 | |
|
2. Appropriations carried over |
119733 | |
|
Outturn for the year |
- 9242 | |
|
TAFKO payments (non-budget) |
- 26860 | |
|
Exchange differences for the year |
- 334 | |
|
Balance for the financial year |
- 35768 |
Financial control
2. Notes the replies given by the Commission and the Agency regarding the risks referred to in paragraph 68 of the Court of Auditors’ report; looks to the Commission and the Agency for assurance that regular, comprehensive, on-the-spot ex-ante checks have been carried out on the transactions; calls for prompt adoption of the revised Financial Regulation which has already been announced, the provisions of which include the appointment of an internal auditor;
3. Impresses on the director of the European Agency for Reconstruction the importance of respecting the provisions laid down by Council regulation (EC) 2667/2000, regarding informing the European Parliament, including the presentation of a quarterly activity report (article 5(5));
4. Recommends the Commission to present to the European Parliament the annual report drawn up pursuant to article 4(14) of Council regulation (EC) 2667/2000, before 1 May each year, at the latest;
5. Insists on the need to promote adequate investigation, including, as appropriate, an internal evaluation by the European Antifraud Office (OLAF), of any well-founded suspicion of mismanagement and corruption linked to investments in favour of power-stations in Kosovo;
European Agency on Reconstruction
6. Congratulates the Agency on its good performance in 2000 in connection with the implementation of the reconstruction programme and applauds the individual commitment displayed by the staff seconded to the Agency, who are required to perform their work under what are sometimes very difficult circumstances; points out, further, that the staff of EC TAFKO likewise carried out their task in an exemplary fashion in the period immediately following the war;
7. Notes that the largest item in the Agency’s budget is that dealing with the ‘rehabilitation of the energy sector’; in that connection, draws attention to the incomprehension of the local population when faced with the paradoxical situation of daily power cuts;
8. Notes that closer cooperation with Belgrade is essential to improve the energy situation in Kosovo and will facilitate UNMIK’s task of finding creative solutions to allow KEK to have a legal corporate status and to establish mechanisms for the international financial institutions to provide credit to KEK, as the donors cannot provide indefinite financing through grants for all the investment and recurrent needs of Kosovo;
9. Welcomes the Action Plan for the energy sector agreed in October 2001 between the Commission and the Agency which lays down the benchmarks to be achieved by UNMIK and KEK;
10. Applauds the effective and economical approach employed by the Agency in the housing, transport and agriculture sectors;
United Nations Mission in Kosovo (UNMIK), Special Representative Secretary General and European Commission
11. calls on UNMIK to implement the Action Plan of essential measures, agreed upon by the Commission and UNMIK, notably regarding the need for a multi-media campaign aimed at raising the public awareness of power sector problems which contribute to wastage and non-payment;
12. urges UNMIK likewise to draw up a transport policy so that the sustainability of the investments can be guaranteed; urges UNMIK, further, to take account of the observations made by the Court of Auditors concerning the high customs duties and sales taxes imposed on agricultural inputs, which act as a disincentive to agricultural production;
13. Urges the Special Representative Secretary General (SRSG) of the United Nations in Kosovo to make much greater efforts to draw up a policy framework and a long-term strategy to ensure the sustainability of the EC and international investment in Kosovo; calls on the Commission, which funds the EU pillar of UNMIK, to discuss the development of a sustainable policy and a regulatory framework with UNMIK and the provisional institutions for self-government (PISG), in particular the Kosovan President, the Kosovo Prime Minister and government and the Kosovo Assembly; requests that a report on the development of a sustainable policy and regulatory framework and on the progress of the sectoral Action Plans agreed with the Commission be included in the UNMIK end-of-year report for 2002; underlines in this respect, that it is of utmost urgency, to improve Kosovo's tax collection capacity, in order to increase its budget revenue and attain budget sustainability; requests UNMIK to indicate in its mid and end-of-year report, the measures taken and foreseen with a view to increasing Kosovo's budget revenue;
14. calls on UNMIK to carry-out an audit of the cash management and procurement procedures of the Kosovo Electricity company (KEK); requests that longer-term options for the development of Kosovo's electricity sector be examined in the light of the forthcoming World Bank study;
Kosovo authorities
15. calls on the relevant Kosovo authoritiesto take the necessary steps, as provided for in the above-mentioned Action plan, to raise the revenue collection rate, curb the electricity consumption, and formalise an agreement on electricity exchanges with Serbia and neighbouring countries, as Kosovo's power generation system has to import electricity during peak periods and export it during off-peak times;
Discharge decision
16. Gives discharge to the Director of the European Agency for Reconstruction in respect of the implementation of the budget for the 2000 financial year;
17. Instructs its President to forward this decision to the Director of the European Agency for Reconstruction, the Council, the Commission and the Court of Auditors and to have it published in the Official Journal (L series).
- [1] OJ C 355, 13.12.01, p. 1.
OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS, HUMAN RIGHTS, COMMON SECURITY AND DEFENCE POLICY
26 February 2002
for the Committee on Budgetary Control
concerning discharge for the European Agency for Reconstruction for the 2000 financial year
(C5-0673/2001 - 2001/2238(DEC))
Draftsperson: Ursula Stenzel
PROCEDURE
The Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy appointed Ursula Stenzel draftsman at its meeting of 24 January 2002.
It considered the draft opinion at its meeting of 25 and 26 February 2002.
At the latter meeting it adopted the following conclusions unanimously.
The following were present for the vote: Elmar Brok, chairman; Baroness Nicholson of Winterbourne, Geoffrey Van Ordenand Christos Zacharakis, vice-chairmen; Ursula Stenzel, draftsperson; Ole Andreasen, Alexandros Baltas, John Walls Cushnahan, Rosa M. Díez González, Pere Esteve, Giovanni Claudio Fava, Pernille Frahm, Michael Gahler, Jas Gawronski, Vitaliano Gemelli, Alfred Gomolka, Vasco Graça Moura, Ulpu Iivari, Marie Anne Isler Béguin, Joost Lagendijk, Catherine Lalumière, Armin Laschet, Jo Leinen, Nelly Maes, Hanja Maij-Weggen, Pedro Marset Campos, Miguel Angel Martínez Martínez, Emilio Menéndez del Valle, Philippe Morillon, Pasqualina Napoletano, Arie M. Oostlander, Doris Pack, Jacques F. Poos, Mechtild Rothe, Lennart Sacrédeus, Jannis Sakellariou, José Ignacio Salafranca Sánchez-Neyra, Jacques Santer, Amalia Sartori, Jürgen Schröder, Elisabeth Schroedter, Ioannis Souladakis, Ilkka Suominen, Charles Tannock, Maj Britt Theorin, Gary Titley, Bob van den Bos, Johan Van Hecke, Paavo Väyrynen, Karl von Wogau.
SHORT JUSTIFICATION
1. On a recommendation of the Council, the European Parliament shall give a discharge to the Director of the Agency in respect of the implementation of the Agency's budget (article 8(4) of the Council Regulation (EC) n° 2667/2000[1]). This opinion is adopted on this ground and is in addition to the opinion prepared by Mr Gary Titley on the general discharge for the 2000 budget.
2. In its special report on the European Agency for Reconstruction[2], the Court of Auditors recommends, in particular:
- -that the Agency does not disperse its efforts and develops a practical sectoral programme, in accordance with updated priorities; the urgency of developing a long- term policy framework and a long-term investment strategy;
- -safeguarding the sustainability of investments, in particular those in the transport and energy sectors;
- -better clarification of the roles of the management committee and of the governing board, beyond that already achieved by the new legal framework adopted in 2000 (Reg. (EC) 2667/2000).
3. The draftsperson is of the opinion that the discharge on the European Agency for Reconstruction for 2000 should not only reflect accounting and auditing approaches but should also include a political evaluation of the activity of the Agency. This evaluation will contribute to the political approach to be followed in the EP report on the Agency for Reconstruction to be adopted in spring. This report will be drawn up after Commissioner Patten presents, as agreed with the European Parliament last November, a report on the Commission's strategy for the management of the EU assistance to the Western Balkans.
4. The draftsperson is also of the opinion that some remarks made by the Court of Auditors are in line with the approach previously expressed by the European Parliament during the legislative procedure on the Agency's regulation[3]. If the EP approach had been properly implemented, i.e.:
- -providing the European Parliament with regular information on the donor's contribution to the reconstruction programmes, and with the minutes of the meetings of the governing board;
- -entering the funds received from sources other than the Community budget, separately in the Agency's revenue (in the Statement of Revenue and Expenditure published on 31.07.2001 no other subsidy is indicated for the year 2001);
- -publishing the Agency's establishment plan, as part of the Commission's establishment plan (the first publication was only on 31.07.2001 for the year 2001);
transparency in the Agency's management of EU assistance would have therefore been improved, facilitating the decision to be taken during the discharge procedure.
5. The discharge will also be decided on the basis of the draft annual report submitted by the Commission to the European Parliament by 31 March, according to article 4(14) of the Agency's regulation. The draftsperson notes that the report for the year 2000 was only adopted by the Commission in July 2001, and received by Parliament on 10 August 2001, which was too late.
6. Furthermore, the first quarterly activity report was only presented by the director of the Agency to the European Parliament (article 5(5) of the Agency's regulation) in January 2002 for the period July to December 2001. Such a situation should not be repeated in the future and it should be impressed on the director of the Agency to respect article 5(5) of the Agency's regulation.
7. Apart from the importance of safeguarding the sustainability of investments financed by the EU, it is also necessary to ensure their correct management by the Agency and the beneficiaries of the assistance. This aspect assumes special importance as regards the energy sector, in particular the management of powerstations.
8. It has come to the knowledge of the draftsperson that despite energy shortage in Kosovo (the European Parliament had to authorise financing Kosovo's budget with exceptional financial assistance in order to facilitate energy imports), electricity has been exported to neighbouring countries. The draftsperson has also been informed that risk of mismanagement and corruption of a special project in favour of the powerplants could have existed.
9. These types of doubts should be clarified, and as far as EU assistance is concerned, the Commission should apply article 12 of the Agency's regulation and promote, in the case of well-founded proofs, internal investigations by the European Antifraud Office (OLAF).
10. The draftsperson is of the opinion that this discharge procedure is an opportunity to re-examine the reduced amount of budget revenue that UNMIK has been able to produce. Such a situation has implied that systematic exceptional macro-financial support by the European Union had to be transferred to the Kosovo budget, in order to cover administrative and recurrent expenditure. The European Agency for Reconstruction should clearly indicate, as soon as possible and at the latest in the next quarterly report to be presented to the European Parliament, the actions taken and those foreseen, in order to increase Kosovo's revenue, therefore reducing and putting an end to the present situation.
CONCLUSIONS
The Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy calls on the Committee on Budgetary Control, as the committee responsible, to adopt the following amendments to the draft proposal for a decision:
1. Recital C (add at the end)
Whereas the challenge of reconstructing Kosovo was and is enormous due to the fact that physical and human damage is widespread in a Province devastated by a decade of chronic under-investment, neglect and abuse of human rights; whereas safeguarding sustainability of the investments in Kosovo is a pre-requisite for sound and efficient management of the EU budgetary resources allocated to this region.
2. Paragraph 2a (new)
Impresses on the director of the European Agency for Reconstruction the importance of respecting the provisions laid down by Council regulation (EC) 2667/2000, regarding informing the European Parliament, including the presentation of a quarterly activity report (article 5(5));
3. Paragraph 2b (new)
Recommends the Commission to present to the European Parliament the annual report drawn up pursuant to article 4(14) of Council regulation (EC) 2667/2000, before 31 March each year, at the latest;
4. Paragraph 2c (new)
Insists on the need to promote adequate investigation, including, whenever the case, an internal evaluation by the European Antifraud Office (OLAF), of any substantive accusations of mismanagement and corruption linked to investments in favour of powerstations in Kosovo;
5. Paragraph 8 (add at the end)
Urges the Commission, which is financing the EU-pillar of the Mission of the UN in Kosovo (UNMIK) for the reconstruction of Kosovo, to make much more efforts to establish a management and a long-term strategy; asks the Commission to discuss with UNMIK and the temporary self-administration institutions, i.e. the President of Kosovo, the Kosovo government and the Kosovo Parliament, about the development of a durable management and a framework providing rules and to make a report to the European Parliament at the latest by November 2002. Underlines in this respect, that it is of utmost urgency, that UNMIK improves Kosovo's tax collecting capacity, in order to increase its budget revenue and attain budget self sustainability. Encourages, therefore, the director of the Agency to do his utmost in co-operation with UNMIK to improve the situation and to indicate, in the coming quarterly report, the measures taken and those foreseen with a view to increasing Kosovo's budget revenue.