REPORT on the proposal for a Council regulation amending Regulation (EC) No 2667/2000 on the European Agency for Reconstruction

18.9.2006 - (COM(2006)0162 – C6‑0170/2006 – 2006/0057(CNS)) - *

Committee on Foreign Affairs
Rapporteur: Jelko Kacin

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a Council regulation amending Regulation (EC) No 2667/2000 on the European Agency for Reconstruction

(COM(2006)0162 – C6‑0170/2006 – 2006/0057(CNS))

(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2006)0162)[1],

–   having regard to the first sentence of Article 181a(2) of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0170/2006),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Foreign Affairs and the opinion of the Committee on Budgetary Control (A6-0285/2006),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and the Commission.

Text proposed by the Commission		Amendments by Parliament

Amendment 1

RECITAL 5 A (new)

	(5a) In order to maintain the high level of EU involvement in the region, the Commission should ensure that relevant expertise gained by the Agency in providing technical and financial assistance to the countries concerned is not lost during the transfer of responsibilities and that the necessary continuity of work is guaranteed.

Justification

In order to consolidate and further the reform process in the region, it is necessary to ensure that the accumulated knowledge and technical expertise gained during the Agency's existence is transferred to the Delegations.

.

Amendment 2 ARTICLE 1 A (new)
	Article 1a
	Reports
	1. In the interests of clarity and transparency, the Commission shall provide quarterly reports to the European Parliament and the Council, setting out the ongoing operational details of the transfer plan, including the distribution of tasks between the Agency and the relevant Commission delegations and details concerning cooperation between them during the transitional period. The reports shall also refer to the envisaged timetable for the hand-over process, the objectives achieved since the previous report and new goals to be set, in addition to providing an overview of the way in which the transfer will work in practice for all the countries concerned and, in particular, for the Former Yugoslav Republic of Macedonia, in light of its status as a candidate country.
	2. In the context of the reports referred to in paragraph 1, the Commission shall specify in detail: (a) the measures it intends to take to promote regional projects, such as projects involving cooperation between countries and cross-border infrastructure projects, once the Agency has ceased to exist.
	(b) plans for the upgrading of the Commission Delegations and/or Offices following the separation of the Republics of Serbia and Montenegro. The report shall also include proposals for upgrading the delegations and/or offices dealing with the future status of Kosovo.

EXPLANATORY STATEMENT

In its report to the Council and Parliament on 23 December 2005, the Commission proposed to discontinue the European Agency of Reconstruction whilst also seeking its extension for a further two years until 31 December 2008 together with its current status and mandate. The Agency together with its activities under the CARDS Programme is to be gradually phased out and replaced by Commission Delegations and Offices which will manage the new financial instrument IPA.

The rapporteur supports the proposal but draws attention to the fact that the winding-down of the Agency coincides with a critical period of development in the Western Balkans. It is essential that the transition period be carried out in an efficient manner without disruption in order to consolidate achievements already made and further regional stability.

Furthermore, the handing over of responsibilities to the Delegations requires sound planning in advance, taking due account of changing political circumstances, in order to ensure that the timetable for transfer of responsibilities will be duly respected. The transition should in no way prohibit the Agency from reacting quickly to needs created by political events on the ground.

• [1]  Not yet published in OJ.

OPINION of the Committee on Budgetary Control (14.7.2006)

for the Committee on Foreign Affairs

on the proposal for a Council Regulation amending Regulation (EC) No 2667/2000 on the European Agency for Reconstruction
(COM(2006)0162 - C6-0170/2006 - 2006/0057(CNS))

Draftswoman: Edit Herczog

SHORT JUSTIFICATION

In its report to the Council and Parliament on 23 December 2005, the Commission proposed to discontinue the European Agency of Reconstruction whilst also seeking its extension for a further two years until 31 December 2008 together with its current status and mandate. The Agency together with its activities under the CARDS Programme is to be gradually phased out and replaced by Commission Delegations and Offices which will manage the new financial instrument IPA.

The rapporteur is of the opinion that the possible phasing out European Agency for Reconstruction should not be carried out according to a fixed timetable. Enough budgetary resources should be set aside to enable the European Agency for Reconstruction to offer staff contracts until the end of 2008 where necessary, so the Agency can fully carry out its mission and diminish the problem it has had in recruiting suitable staff due to the short-term mandate of the Agency.

The Commission should closely monitor those budgetary resources which have not been used to extend staff contracts.

The importance of improving and ensuring sound financial management cannot be overemphasised, therefore the Commission and the Agency must work in close cooperation with the United Nations Interim Administration Mission in Kosovo and other financial bodies to ensure transparency in procurement and improve budgetary control.

The Court of Auditors must be urged to follow the work of the Agency closely and to report back to the European Parliament.

AMENDMENTS

The Committee on Budgetary Control calls on the Committee on Foreign Affairs, as the committee responsible, to incorporate the following amendments in its report:

Text proposed by the Commission	Amendments by Parliament
Amendment 1 RECITAL 5
(5) In that report, the Commission proposed to discontinue the European Agency for Reconstruction, but to extend its existence for two years, until 31 December 2008, with its current mandate and status, to gradually phase out its activities under CARDS.	(5) In that report, the Commission proposed to discontinue the European Agency for Reconstruction, but to extend its existence for two years. As recommended by the European Parliament in the framework of the budgetary discharge for the financial year 20041, the possible phasing-out of the European Agency for Reconstruction should not be carried out according to a fixed timetable, but should depend on economic and political criteria and developments, making full use of the added value of the expertise and know-how of the European Agency for Reconstruction. _____________ 1 Texts adopted, 27.4.2006, P6_TA(2006)0157 and P6_TA(2006)0169.
Amendment 2 RECITAL 5 A (new)
	(5a) Before it takes a decision with far-reaching financial consequences, the Commission should produce a report clarifying whether the current delegation model would be capable of carrying out the specialised tasks of the European Agency for Reconstruction at the same level of expertise.
Amendment 3 RECITAL 5 B (new)
	(5b) The establishment of delegations of offices could nonetheless be considered where required, bearing in mind the need for regional stability and paying due attention to the timetable for a decision on the status of Kosovo by the United Nations Security Council.

PROCEDURE

Title	Proposal for a Council Regulation amending Regulation (EC) No 2667/2000 on the European Agency for Reconstruction
References	COM(2006)0162 – C6-0170/2006 - 2006/0057(CNS)
Committee responsible	AFET
Opinion by   Date announced in plenary	CONT 13.6.2006
Enhanced cooperation – date announced in plenary
Draftsmen   Date appointed	Edit Herczog 20.4.2006
Previous drafts(wo)man
Discussed in committee	19.6.2006		13.7.2006
Date adopted	13.7.2006
Result of final vote	+: –: 0:	20
Members present for the final vote	Inés Ayala Sender, Herbert Bösch, Mogens N.J. Camre, Paulo Casaca, Petr Duchoň, Szabolcs Fazakas, Markus Ferber, Ona Juknevičienė, Edith Mastenbroek, Jan Mulder, Borut Pahor, José Javier Pomés Ruiz, Bart Staes, Margarita Starkevičiūtė, Alexander Stubb
Substitute(s) present for the final vote	Valdis Dombrovskis, Robert Goebbels, Edit Herczog, Bill Newton Dunn, Paul Rübig
Substitute(s) under Rule 178(2) present for the final vote

PROCEDURE

Title	Proposal for a Council regulation amending Regulation (EC) No 2667/2000 on the European Agency for Reconstruction
References	COM(2006)0162 – C6–0170/2006 – 2006/0057(CNS)
Date of consulting Parliament	2.6.2006
Committee responsible   Date announced in plenary	AFET 13.6.2006
Committees asked for opinions   Date announced in plenary	BUDG 13.6.2006		CONT 13.6.2006	INTA 13.6.2006
Not delivering opinion(s)   Date of decision	INTA 19.4.2006		BUDG 25.4.2006
Rapporteur   Date appointed	Jelko Kacin 3.5.2006
Discussed in committee	11.7.2006		12.9.2006
Date adopted	12.9.2006
Result of final vote	+: –: 0:	29 1 0
Members present for the final vote	Panagiotis Beglitis, Simon Coveney, Giorgos Dimitrakopoulos, Maciej Marian Giertych, Jana Hybášková, Anna Ibrisagic, Toomas Hendrik Ilves, Ioannis Kasoulides, Joost Lagendijk, Vytautas Landsbergis, Cecilia Malmström, Annemie Neyts-Uyttebroeck, Vural Öger, Alojz Peterle, João de Deus Pinheiro, Mirosław Mariusz Piotrowski, Bernd Posselt, Libor Rouček, José Ignacio Salafranca Sánchez-Neyra, György Schöpflin, Gitte Seeberg, István Szent-Iványi, Charles Tannock, Paavo Väyrynen, Inese Vaidere, Josef Zieleniec
Substitute(s) present for the final vote	Irena Belohorská, Tunne Kelam, Erik Meijer, Marcello Vernola
Substitute(s) under Rule 178(2) present for the final vote
Date tabled	18.9.2006