REPORT on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    4.10.2010 - (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD)) - ***I

    Committee on BudgetsCommittee on Budgetary Control
    Rapporteurs: Ingeborg Gräßle, Crescenzio Rivellini
    (Rule 51 – Joint committee meetings)


    Procedure : 2010/0054(COD)
    Document stages in plenary
    Document selected :  
    A7-0263/2010

    DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

    on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD))

    (Ordinary legislative procedure: first reading)

    The European Parliament,

    –   having regard to the Commission proposal to the European Parliament and the Council (COM(2010)0085),

    –   having regard to Article 294(2) and Article 322 of the Treaty on the Functioning of the European Union as well as Article 106a of the Treaty establishing the European Atomic Energy Community, pursuant to which the Commission submitted the proposal to Parliament (C7‑0086/2010),

    –   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

    –   having regard to Rule 55 of its Rules of Procedure,

    –   having regard to the joint deliberations of the Committee on Budgets and of the Committee on Budgetary Control pursuant to Rule 51 of its Rules of Procedure,

    –   having regard to the report of the Committee on Budgets and of the Committee on Budgetary Control and the opinions of the Committee on Foreign Affairs, Committee on Development, Committee on International Trade and of the Committee on Constitutional Affairs (A7-0263/2010),

    1.  Adopts its position at first reading hereinafter set out;

    2.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

    Amendment 1

    Proposal for a regulation – amending act

    Recital 1

    Text proposed by the Commission

    Amendment

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon.

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon and of the establishment of the European External Action Service, pursuant to Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service1.

     

    1 OJ L 201, 3.8.2010, p.30.

    Amendment  2

    Proposal for a regulation – amending act

    Recital 2

    Text proposed by the Commission

    Amendment

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to the conclusions of the European Council of 29 and 30 October 2009, the EEAS is a service of a sui generis nature and should be treated as an institution for the purposes of the Financial Regulation.

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service, the EEAS is a service of a sui generis nature and should be treated as an institution for the purposes of the Financial Regulation.

    Amendment  3

    Proposal for a regulation – amending act

    Recital 3

    Text proposed by the Commission

    Amendment

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission.

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. In this context, the EEAS shall be fully subject to the procedures provided for in Article 319 of the Treaty on the Functioning of the European Union and in Articles 145 to 147 of the Financial Regulation. The EEAS shall fully cooperate with institutions involved in the discharge procedure and provide, as appropriate, the additional necessary information, including through attendance in meetings of the relevant bodies. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission. Given the novelty of this structure, high-standard provisions on transparency and budgetary and financial accountability need to be applied.

     

    Amendment  4

    Proposal for a regulation – amending act

    Recital 3 a (new)

    Text proposed by the Commission

    Amendment

     

    (3a) Within the EEAS, a Director General for budget and administration should be responsible to the High Representative for the administrative and internal budgetary management of the EEAS. He shall work within the existing format and follow the same administrative rules which are applicable to the part of Section III of the EU budget that falls under heading 5 of the Multiannual Financial Framework.

    Amendment  5

    Proposal for a regulation – amending act

    Recital 3 b (new)

    Text proposed by the Commission

    Amendment

     

    (3b)The Department for Inspections of the EEAS should examine the functioning of the Union Delegations and report directly to the Executive Secretary General.

    Amendment  6

    Proposal for a regulation – amending act

    Recital 3 c (new)

    Text proposed by the Commission

    Amendment

     

     

    (3c) The setting up of the EEAS should be guided, as stated in the guidelines laid down by the European Council of 29 and 30 October 2009, by the principle of cost-efficiency aiming towards budget neutrality.

    Amendment  7

    Proposal for a regulation – amending act

    Recital 4

    Text proposed by the Commission

    Amendment

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed rules, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget.

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed arrangements, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' administrative appropriations.

    Amendment  8

    Proposal for a regulation – amending act

    Recital 5

    Text proposed by the Commission

    Amendment

    (5) It is necessary to ensure the continuity of the functioning of Union Delegations and in particular the continuity and efficiency in the management of external aid by the Delegations. Therefore the Commission should be authorised to subdelegate its powers of budget implementation of operational expenditure to Heads of Union Delegations belonging to EEAS as a separate institution. Furthermore, where the Commission implements the budget under direct centralised management, it should be allowed to do so also through sub-delegation to Heads of Union Delegations. The authorising officers by delegation of the Commission should continue to be responsible for the definition of internal management and control systems, while the Heads of Union Delegations should be responsible for the adequate set up and functioning of internal management and control systems and for the management of the funds and the operations carried out within their Delegations and they should report twice a year to that effect.

    (5) It is necessary to ensure the continuity of the functioning of Union Delegations and in particular the continuity and efficiency in the management of external aid by the Delegations. Therefore the Commission should be authorised to subdelegate its powers of budget implementation of operational expenditure to Heads of Union Delegations belonging to EEAS as a separate institution. Furthermore, where the Commission implements the budget under direct centralised management, it should be allowed to do so also through sub-delegation to Heads of Union Delegations. The authorising officers by delegation of the Commission should continue to be responsible for the definition of internal management and control systems, while the Heads of Union Delegations should be responsible for the adequate set up and functioning of internal management and control systems and for the management of the funds and the operations carried out within their Delegations and they should report twice a year to that effect. Such delegation should be capable of being revoked in accordance with the rules applicable to the Commission.

    Amendment  9

    Proposal for a regulation – amending act

    Recital 8

    Text proposed by the Commission

    Amendment

    (8) The accounting officer of the Commission remains responsible for the entire Commission section of the Budget, including accounting operations relating to appropriations sub-delegated to Heads of Union Delegations. Therefore, it is necessary to clarify that the responsibilities of the accounting officer of the EEAS should only concern the EEAS section of the budget to avoid any overlapping of responsibilities.

    (8) The accounting officer of the Commission remains responsible for the entire Commission section, as well as the EEAS section, of the Budget.

    Amendment  10

    Proposal for a regulation – amending act

    Recital 10 a (new)

    Text proposed by the Commission

    Amendment

     

    (10a) In order to ensure democratic scrutiny of the implementation of the European Union's budget, the statements of assurance made by Heads of Union Delegations on the internal management and control systems in their delegation should be annexed to their annual activity reports and then be transmitted in copy also to the European Parliament.

    Amendment  11

    Proposal for a regulation – amending act

    Recital 10 b (new)

    Text proposed by the Commission

    Amendment

     

    (10b) The term "High Representative of the Union for Foreign Affairs and Security Policy"should, for the purposes of Regulation (EC, Euratom) No 1605/2002, be interpreted in accordance with the different functions of the High Representative under Article 18 of the Treaty on European Union.

    Amendment  12

    Proposal for a regulation – amending act

    Recital 10 c (new)

    Text proposed by the Commission

    Amendment

     

    (10c) The European Development Fund, being the Union’s most important financial instrument for development cooperation with the African, Caribbean and Pacific States, should fall within the ambit of the general budget of the European Union and the general Financial Regulation.

    Amendment  13

    Proposal for a regulation – amending act

    Article 1 – point 1

    Regulation (EC, Euratom) No 1605/2002

    Article 1

     

    Text proposed by the Commission

    Amendment

    (1) In the first subparagraph of Article 1(2), the words 'the European External Action Service' are inserted in front of 'the Economic and Social Committee'.

    (1) Article 1 is replaced by the following:

    "Article 1

    1. This Regulation lays down the rules for the establishment and the implementation of the general budget of the European Union ('the budget') and the presentation and auditing of the accounts.

                    

    2. For the purposes of this Regulation, the European Parliament, the European Council and the Council, the European Commission, the Court of Justice of the European Union and the European Court of Auditors shall be institutions of the Union. The European Economic and Social Committee, the Committee of the Regions, the European Ombudsman, the European Data Protection Supervisor and the European External Action Service (EEAS) shall be treated as institutions of the Union.

     

    For the purposes of this Regulation, the European Central Bank shall not be considered an institution of the Union.

     

    3. For the purposes of this Regulation, any reference to 'the Communities' or to 'the Union' shall be understood as a reference to the European Union and the European Atomic Energy Community.

    Amendment  14

    Proposal for a regulation – amending act

    Article 1 – point 3

    Regulation (EC, Euratom) No 1605/2002

    Article 30 – paragraph 3 – subparagraph 1

     

    Text proposed by the Commission

    Amendment

    "The Commission shall make available, in an appropriate manner, information on the beneficiaries of funds deriving from the budget held by it when the budget is implemented on a centralised basis pursuant to Article 53a, and information on the beneficiaries of funds as provided by the entities to which budget implementation tasks are delegated under other modes of management."

    "The Commission shall make available, in an appropriate manner, information on the beneficiaries of funds deriving from the budget held by it when the budget is implemented on a centralised basis and directly by its departments or by Union Delegations in accordance with the second paragraph of Article 51, and information on the beneficiaries of funds as provided by the entities to which budget implementation tasks are delegated under other modes of management."

    Amendment  15

    Proposal for a regulation – amending act

    Article 1 – point 4

    Regulation (EC, Euratom) No 1605/2002

    Article 31 – paragraph 1

     

    Text proposed by the Commission

    Amendment

    (4) In the first paragraph of Article 31, to the words 'the European External Action Service' are inserted in front of 'the Economic and Social Committee'.

    (4) In the first paragraph of Article 31, the words 'the European Council and' are

    inserted in front of the words 'the Council' and the words 'and the European External Action Service' are inserted in front of the words 'shall draw up'.

    Amendment  16

    Proposal for a regulation – amending act

    Article 1 – point 4 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 31 – paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4a) In Article 31, the following paragraph is inserted after paragraph 1:

     

    “The EEAS shall draw up an estimate of its revenue and expenditure, which it shall send to the Commission before 1 July each year. The High Representative will hold consultations with, respectively, the Commissioner for Development Policy, the Commissioner for Neighbourhood Policy and the Commissioner for International Cooperation, Humanitarian Aid and Crisis Response, regarding their respective responsibilities.”

    Amendment  17

    Proposal for a regulation – amending act

    Article 1 - point 4 b (new) (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 33 - paragraph 3 (new)

     

    Text proposed by the Commission

    Amendment

     

    (4b) In Article 33, the following paragraph 3 is inserted:

     

    3. In accordance with Article 8(5) of Council Decision 2010/427/EU and in order to ensure budgetary transparency in the area of the external action of the Union, the Commission shall transmit to the budgetary authority, together with the draft budget, a working document presenting, in a comprehensive way:

     

    a) all administrative and operational expenditure related to the external actions of the Union, including the Member States' expenditures for CFSP missions and those provided for under the Athena Mechanism and the start-up fund as well as all expenditure spent in the previous year on the work of each individual special representative, special envoy, head of mission or other similar entity;

     

    b) the EEAS' overall administrative expenditure for the previous year by delegation and for the EEAS' central administration and the operational expenditures by geographical area (regions, countries), thematic areas, delegation and mission.

     

    The annex shall also:

     

    a) show the number of posts for each grade in each category and the number of permanent and temporary posts including contractual and local staff authorised within the limits of the budget appropriations in each of the Union's Delegations as well as the EEAS' central administration;

    b) show any increase or reduction of posts by grade and category in the EEAS' central administration and the entirety of the Union's Delegations based on the preceding year;

    c) show the number of posts authorised for the financial year, the number of posts authorised for the preceding year, as well as the number of posts occupied by diplomats seconded from the Member States, Council and Commission staff;

    provide a detailed picture of all staff in place in the delegations of the European Union at the time of presenting the draft budget including a breakdown by geographical area, individual country and mission, distinguishing establishment plan posts, contract agents, local agents and seconded national experts and appropriations requested in the draft budget for such other types of personnel with corresponding estimates of the equivalent full-time staff that may be employed within the limits of the appropriations requested."

    Amendment  18

    Proposal for a regulation – amending act

    Article 1 – point 4 c (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 41 – paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4c) In Article 41, the following paragraph is inserted:

    "1a. All revenue and expenditure under the respective European Development Funds shall be entered under a special budget heading within the Commission section."

    Amendment  19

    Proposal for a regulation – amending act

    Article 1 – point 4 d (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 46 – paragraph 1 – point 5 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4d) In Article 46(1), the following point is added:

     

    “(5a) the total amount of Common foreign and security policy (hereinafter “CFSP”) operating expenditure shall be entered entirely in one budget chapter, entitled CFSP. The total amount of CFSP expenditure will be distributed between the Articles of the CFSP budget chapter. Those Articles will contain items which cover the CFSP expenditure of at least the major missions.”

    Amendment  20

    Proposal for a regulation – amending act

    Article 1 - point 5

    Regulation (EC, Euratom) No 1605/2002

    Article 50

     

    Text proposed by the Commission

    Amendment

    (5) In the first paragraph of Article 50, the following sentence is added:

    (5) In the first paragraph of Article 50, the following sentences are added:

    "However, detailed rules may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget."

    "However, detailed arrangements may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' administrative appropriations.

     

    These arrangements must not contain any derogation from the provisions of the Financial Regulation and its implementing rules."

    Amendment  21

    Proposal for a regulation – amending act

    Article 1 – point 6

    Regulation (EC, Euratom) No 1605/2002

    Article 51

     

    Text proposed by the Commission

    Amendment

     

     

    "However, the Commission may delegate its powers of budget implementation concerning the appropriations of its own section to the Heads of Union Delegations. When Heads of Union Delegations act as sub-delegated authorising officers of the Commission, they shall apply the Commission rules for the implementation of the budget and shall be submitted to the same duties, obligations and accountability as any other sub-delegated authorising officer of the Commission.

    "However, the Commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the Heads of Union Delegations. It shall, at the same time, inform the High Representative of the Union for Foreign Affairs and Security Policy thereof. When Heads of Union Delegations act as subdelegated authorising officers of the Commission, they shall apply the Commission rules for the implementation of the budget and shall be submitted to the same duties, obligations and accountability as any other subdelegated authorising officer of the Commission.

     

    The Commission shall withdraw that delegation in accordance with its own rules.

    For the purposes of the second paragraph, the High Representative of the Union for Foreign Affairs and Security Policy shall take the measures necessary to facilitate the cooperation between Union Delegations and Commission departments."

    For the purposes of the second paragraph, the High Representative of the Union for Foreign Affairs and Security Policy shall take the measures necessary to facilitate the cooperation between Union Delegations and Commission departments."

     

     

    Amendment  22

    Proposal for a regulation – amending act

    Article 1 – point 8

    Regulation (EC, Euratom) No 1605/2002

    Article 59 – paragraph 5

     

    Text proposed by the Commission

    Amendment

    "5. Where Heads of Union Delegations act as authorising officers by sub-delegation in accordance with the second paragraph of Article 51, they shall refer, where their duties as authorising officer so require, to the Commission as their institution."

    "5. Where Heads of Union Delegations act as authorising officers by subdelegation in accordance with the second paragraph of Article 51, they shall be subject to the Commission as the institution responsible for the definition, exercise, control and appraisal of their duties and responsibilities as authorising officers by sub-delegation. The Commission shall, at the same time, inform the High Representative of the Union for Foreign Affairs and Security Policy thereof."

    Amendment  23

    Proposal for a regulation – amending act

    Article 1 – point 8 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 60 – paragraph 7 – subparagraph 2

     

    Text proposed by the Commission

    Amendment

     

    (8a) In the second subparagraph of Article 60(7), the following sentence is added:

     

    "The annual activity reports shall also be made available to the budgetary authority."

    Amendment  24

    Proposal for a regulation – amending act

    Article 1 – point 9

    Regulation (EC, Euratom) No 1605/2002

    Article 60a

     

    Text proposed by the Commission

    Amendment

    "Article 60a

    1. Where Heads of Union Delegations act as authorising officers by subdelegation in accordance with the second paragraph of Article 51, they shall cooperate closely with the Commission for the proper implementation of the funds, in order to ensure in particular the legality and regularity of financial transactions, the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the Union.

    "Article 60a

    1. Where Heads of Union Delegations act as authorising officers by subdelegation in accordance with the second paragraph of Article 51, they shall cooperate closely with the Commission for the proper implementation of the funds, in order to ensure in particular the legality and regularity of financial transactions, the respect of the principle of sound financial management in the management of the funds and the effective protection the financial interests of the Union.

    To this effect, they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the Commission for the implementation of the budget sub-delegated to them as well as any conflict of interest or priorities having impact on the implementation of the financial management tasks sub-delegated to them.

    To this effect, they shall take the measures necessary to prevent any situation susceptible to put at stake the responsibility of the Commission for the implementation of the budget sub-delegated to them as well as any conflict of priorities which is likely to have an impact on the implementation of the financial management tasks sub-delegated to them.

     

     

    Where a situation or conflict referred to in the second subparagraph arise, the Heads of Union Delegations shall inform the responsible Commission department and the High Representative of the Union for Foreign Affairs and Security Policy thereof without delay.

    Where a situation or conflict referred to in the second subparagraph arises, the Heads of Union Delegations shall inform the responsible Directors-General of the Commission and of the EEAS thereof without delay. They shall take appropriate steps to remedy the situation.

    2. When a Head of a Union Delegation finds himself in a situation referred to in Article 60(6), he shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, he shall inform the authorities and bodies designated by the applicable legislation.

    2. When a Head of a Union Delegation finds himself in a situation referred to in Article 60(6), he shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, he shall inform the authorities and bodies designated by the applicable legislation.

    3. Heads of Union Delegations acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall report twice a year to their authorising officer by delegation so that the latter can integrate their reports in his annual activity report referred to in Article 60(7). That biannual report submitted by the Heads of Union Delegation shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation, as well as the management of operations subdelegated to them.

    3. Heads of Union Delegations acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall report to their authorising officer by delegation in the form of an annual activity report in application, mutatis mutandis, of Article 60(7) so that the latter can integrate their reports in his annual activity report. The annual activity reports of the Heads of Delegations shall be annexed, together with the statement of assurance pursuant to Article 66(3a), to the annual activity report of the authorising officer by delegation, which shall be transmitted to the European Parliament in accordance with Article 60(7).

     

    Upon request, the Heads of Delegations shall report on the execution of their budgetary duties to the European Parliament's competent committee.

     

    An annual intermediate report submitted by the Heads of Union Delegations shall include information on the efficiency and effectiveness of internal management and control systems put in place in their delegation, as well as the management of operations subdelegated to them.

    4. Heads of Union Delegations acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall reply to any request by the authorising officer by delegation of Commission."

    4. Heads of Union Delegations acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall reply to any request by the authorising officer by delegation of the Commission as well as the European Parliament's competent committee.

     

    5. The Commission shall ensure that sub-delegating powers are not detrimental to the discharge procedure in the European Parliament, in the context of which the Commission assumes the full responsibility for the operating budget of the EEAS."

    Amendment  25

    Proposal for a regulation – amending act

    Article 1 – point 10

    Regulation (EC, Euratom) No 1605/2002

    Article 61 – paragraph 1

     

    Text proposed by the Commission

    Amendment

    (10) In Article 61(1), the following subparagraph is added:

    "The responsibilities of the accounting officer of EEAS shall only concern the EEAS section of the budget as implemented by the EEAS."

    deleted

    Amendment  26

    Proposal for a regulation – amending act

    Article 1 – point 11 - point a

    Regulation (EC, Euratom) No 1605/2002

    Article 66 – paragraph 3a

     

    Text proposed by the Commission

    Amendment

    "3a. In the event of subdelegation to the Heads of Union Delegations, the authorising officer by delegation shall be responsible for the definition of the internal management and control systems put in place, their efficiency and effectiveness. The Heads of Union Delegations shall be responsible for the adequate set up and functioning of those systems, in accordance with the instructions of the authorising officer by delegation, and for the management of the funds and the operations they carry within the Union Delegation under their responsibility.

    "3a. In the event of subdelegation to the Heads of Union Delegations, the authorising officer by delegation shall be responsible for the definition of the internal management and control systems put in place, their efficiency and effectiveness. The Heads of Union Delegations shall be responsible for the adequate set up and functioning of those systems, in accordance with the instructions of the authorising officer by delegation, and for the management of the funds and the operations they carry within the Union Delegation under their responsibility. Before taking up their duties, they must complete specific training courses on the tasks and responsibilities of authorising officers and the implementation of the budget.

    Heads of Union Delegations shall report on their responsibilities pursuant to the first subparagraph of this paragraph in accordance with Article 60a(3).

    Heads of Union Delegations shall report on their responsibilities pursuant to the first subparagraph of this paragraph in accordance with Article 60a(3).

    Each year, Heads of Union Delegations provide to the authorising officer by delegation of the Commission a statement of assurance on the internal management and control systems put in place in their Delegation in order to allow the authorising officer to establish his own statement of assurance."

    Each year, Heads of Union Delegations shall provide to the authorising officer by delegation of the Commission a statement of assurance on the internal management and control systems put in place in their Delegation, as well as on the management of operations subdelegated to them and the results thereof, in order to allow the authorising officer to establish his own statement of assurance. This shall be annexed, together with the annual activity report of the Head of Delegation, to the annual activity report of the authorising officer by delegation, which shall be transmitted to the European Parliament."

    Amendment  27

    Proposal for a regulation – amending act

    Article 1 – point 11 - point b

    Regulation (EC, Euratom) No 1605/2002

    Article 66 – paragraph 5

     

    Text proposed by the Commission

    Amendment

    "5. Where Heads of Union Delegations act as authorising officers by subdelegation in accordance with the second paragraph article 51, the specialised financial irregularities panel set up by the Commission pursuant to paragraph 4 of this Article shall be competent for cases referred to in that paragraph.

    "5. Where Heads of Union Delegations act as authorising officers by subdelegation in accordance with the second paragraph article 51, the specialised financial irregularities panel set up by the Commission pursuant to paragraph 4 of this Article shall be competent for cases referred to in that paragraph.

    If the panel detects systemic problems, it shall send a report with recommendations to the authorising officer, the High Representative of the Union for Foreign Affairs and Security Policy and to the authorising officer by delegation of the Commission, provided the latter is not the person involved, as well as to the internal auditor.

    If the panel detects systemic problems, it shall send a report with recommendations to the authorising officer, to the High Representative of the Union for Foreign Affairs and Security Policy and to the authorising officer by delegation of the Commission, provided the latter is not the person involved, as well as to the internal auditor.

    On the basis of the opinion of the panel, the Commission may request the High Representative of the Union for Foreign Affairs and Security Policy to initiate, in his capacity as appointing authority, proceedings entailing liability to disciplinary action or to payment of compensation against authorising officers by subdelegation if irregularities concern the competencies of the Commission sub-delegated to them. In such a case the High Representative shall take appropriate action in accordance with the Staff Regulation."

    On the basis of the opinion of the panel, the Commission shall request the High Representative of the Union for Foreign Affairs and Security Policy to initiate, in his/her capacity as appointing authority, proceedings entailing liability to disciplinary action or to payment of compensation against authorising officers by subdelegation if irregularities concern the competences of the Commission sub-delegated to them. In such a case the High Representative shall enforce the disciplinary action and/or collect payment of compensation as recommended by the Commission.

     

    This shall apply mutatis mutandis to the authorities of a Member State for seconded staff as well as temporary agents originating from its diplomatic service. The Member State of origin shall be liable for all sums not recovered within three years of a decision on liability being taken."

    Amendment  28

    Proposal for a regulation – amending act

    Article 1 – point 12

    Regulation (EC, Euratom) No 1605/2002

    Article 85 - paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

    (12) In Article 85, the following paragraphs are added:

    (12) In Article 85, the following paragraph is added:

    "For the purposes of the internal auditing of the EEAS, Heads of Union Delegations, acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall be subject to the verifying powers of the internal auditor of the Commission for the financial management sub-delegated to them.

    For reasons of coherence, efficiency and cost-effectiveness, the internal auditor of the Commission shall also act as the internal auditor of the EEAS in respect of the budget implementation of the EEAS section of the budget."

    "The Commission’s internal auditor shall have the same responsibilities in respect of the EEAS referred to in Article 1, as he/she has in respect of Commission departments."

    Amendment  29

    Proposal for a regulation – amending act

    Article 1 – point 12 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 126 – paragraph 1 – point c a (new)

     

    Text proposed by the Commission

    Amendment

     

    (12a) In Article 126(1), the following point (ca) is added:

    "(ca) the statement of changes in capital presenting in detail the increases and decreases during the year in each pension scheme mentioned in the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of the European Communities."

    Amendment  30

    Proposal for a regulation – amending act

    Article 1 – point 12 b

    Regulation (EC, Euratom) No 1605/2002

    Article 146 – paragraph 3

     

    Text proposed by the Commission

    Amendment

     

    (12b) In Article 146, paragraph 3 is replaced by the following:

    "3. The institutions of the Union as defined in Article 1(2) shall submit to the European Parliament, at the latter's request, any information required for the smooth application of the discharge procedure for the financial year in question, in accordance with Article 319 of the Treaty on the Functioning of the European Union."

    Amendment  31

    Proposal for a regulation – amending act

    Article 1 – point 12 c (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 147 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (12c) The following Article is inserted:

     

    “Article 147a

     

    The EEAS shall be fully subject to the procedures provided for in Article 319 of the Treaty on the Functioning of the European Union and in Articles 145 to 147 of the Financial Regulation. The EEAS shall fully cooperate with institutions involved in the discharge procedure and provide, as appropriate, the additional necessary information, including through attendance in meetings of the relevant bodies.”

    Amendment  32

    Proposal for a regulation – amending act

    Article 1 – point 14

    Regulation (EC, Euratom) No 1605/2002

    Article 165

     

    Text proposed by the Commission

    Amendment

    "The implementation of actions by beneficiary third countries or international organisations is subject to scrutiny by the Commission pursuant to Article 53a."

    "The implementation of actions by beneficiary third countries or international organisations is subject to scrutiny by the Commission."

    Amendment  33

    Proposal for a regulation – amending act

    Article 1 – point 15

    Regulation (EC, Euratom) No 1605/2002

    Article 185 – paragraph 3

     

    Text proposed by the Commission

    Amendment

    (15) In Article 185, paragraph 3 is replaced by the following:

    "3. The Commission's internal auditor shall exercise the same powers over the bodies referred to in paragraph 1 as he/she does in respect of Commission departments or Union Delegations."

    deleted

    OPINION of the Committee on Foreign Affairs (21.9.2010)

    for the Committee on Budgets and Committee on Budgetary Control

    on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service
    (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD))

    Rapporteur: Göran Färm

    AMENDMENTS

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

    Amendment   1

    Proposal for a regulation – amending act

    Recital 1

    Text proposed by the Commission

    Amendment

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon.

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon and of the establishment of the European External Action Service, pursuant to Council Decision 2010/427/EU of 26 July 20101 establishing the organisation and functioning of the European External Action Service.

     

    1 OJ L 201, 3.8.2010, p.30.

    Amendment   2

    Proposal for a regulation – amending act

    Recital 2

    Text proposed by the Commission

    Amendment

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to the conclusions of the European Council of 29 and 30 October 2009, the EEAS is a service of a sui generis nature and should be treated as an institution for the purposes of the Financial Regulation.

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to Council Decision 2010/427/EU of 26 July 20101 establishing the organisation and functioning of the European External Action Service, the EEAS is to be treated as an institution for the purposes of the Financial Regulation.

     

    1 OJ L 201, 3.8.2010, p.30

    Amendment  3

    Proposal for a regulation – amending act

    Recital 3

    Text proposed by the Commission

    Amendment

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission.

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. In this context, the EEAS should be fully subject to the procedures provided for in Article 319 of the Treaty on the Functioning of the European Union and in Articles 145 to 147 of the Financial Regulation. The EEAS should fully cooperate with institutions involved in the discharge procedure and provide, as appropriate, the additional necessary information, including through attendance in meetings of the relevant bodies. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission. Given the complexity of this structure, high-standard provisions on traceability and budgetary and financial accountability need to be applied.

    Amendment  4

    Proposal for a regulation – amending act

    Recital 4

    Text proposed by the Commission

    Amendment

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed rules, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget.

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed rules, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' appropriations entered in the EEAS section of the Budget.

    Amendment   5

    Proposal for a regulation – amending act

    Recital 5

    Text proposed by the Commission

    Amendment

    (5) It is necessary to ensure the continuity of the functioning of Union Delegations and in particular the continuity and efficiency in the management of external aid by the Delegations. Therefore the Commission should be authorised to subdelegate its powers of budget implementation of operational expenditure to Heads of Union Delegations belonging to EEAS as a separate institution. Furthermore, where the Commission implements the budget under direct centralised management, it should be allowed to do so also through sub-delegation to Heads of Union Delegations. The authorising officers by delegation of the Commission should continue to be responsible for the definition of internal management and control systems, while the Heads of Union Delegations should be responsible for the adequate set up and functioning of internal management and control systems and for the management of the funds and the operations carried out within their Delegations and they should report twice a year to that effect.

    (5) It is necessary to ensure the continuity of the functioning of Union Delegations and in particular the continuity and efficiency in the management of external aid by the Delegations. Therefore the Commission should be authorised to subdelegate its powers of budget implementation of operational expenditure to Heads of Union Delegations belonging to EEAS as a separate institution. Furthermore, where the Commission implements the budget under direct centralised management, it should be allowed to do so also through sub-delegation to Heads of Union Delegations. The authorising officers by delegation of the Commission should continue to be responsible for the definition of internal management and control systems, while the Heads of Union Delegations should be responsible for the adequate set up and functioning of internal management and control systems and for the management of the funds and the operations carried out within their Delegations and they should report twice a year to that effect. The Commission should have the right to withdraw specific subdelegations in accordance with its own rules.

    Amendment  6

    Proposal for a regulation – amending act

    Recital 10 a (new)

    Text proposed by the Commission

    Amendment

     

    (10a) The term "High Representative of the Union for Foreign Affairs and Security Policy" is to be interpreted, for the purposes of this Regulation, in accordance with the different functions of the High Representative under Article 18 of the Treaty on European Union.

    Amendment   7

    Proposal for a regulation – amending act

    Article 1 - point 4 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 31 - paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4a) The following paragraph is inserted in Article 31:

     

    "The European External Action Service shall draw up an estimate of its revenue and expenditure, which it shall send to the Commission before 1 July each year. The High Representative shall hold consultations with the Commissioner for Development Policy, the Commissioner for Neighbourhood Policy and the Commissioner for International Cooperation, Humanitarian Aid and Crisis Response regarding their respective responsibility."

    Amendment   8

    Proposal for a regulation – amending act

    Article 1 - point 4 b (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 33 - paragraph 2 - point d a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4b) The following point is inserted in Article 33(2):

     

    (da) In accordance with Article 8(5) of Council Decision 2010/427/EU and in order to ensure budgetary transparency in the area of the external action of the Union, the Commission will transmit to the budgetary authority, together with the draft EU budget, a working document presenting, in a comprehensive way, all administrative and operational expenditures relating to the external actions of the Union, including the Member States' expenditures for CSDP missions and provided for under the Athena Mechanism and the start-up fund.

     

    This working document shall contain, inter alia, the following information:

     

    (i) a detailed picture of the operational and administrative expenditures by geographical area (regions, countries), by thematic areas and by mission,

     

    (ii) a detailed picture of all staff in place in the delegations of the European Union at the time of the presentation of the draft budget, including:

    a breakdown by geographical area, individual country and mission, distinguishing:

    - establishment plan posts,

    - contract agents,

    - local agents,

    - seconded national experts,

    the number of posts, both in the EEAS establishment plan at headquarters and in the delegations, occupied by employees from the diplomatic services of Member States;

    (iii) the total number of posts requested in the draft budget for the establishment plans of the delegations of the European Union broken down by function group and grade and compared to the number of posts in the authorised budget,

    (iv) appropriations requested in the draft budget for other types of personnel with corresponding estimates in terms of the equivalent full-time staff that may be employed within the limits of the appropriations requested, broken down by type of personnel (contract agents, local agents, seconded national experts) along with a comparison with the authorised budget;

    Amendment  9

    Proposal for a regulation – amending act

    Article 1 - point 4 c (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 46 - paragraph 1 - point 5 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4c) The following point is added in Article 46(1):

     

    (5a) The total amount of operating CFSP expenditure shall be entered entirely in one budget chapter, entitled CFSP. The total amount of CFSP expenditure shall be distributed between the Articles of the CFSP budget chapter. Those Articles shall contain items which are to cover the CFSP expenditure of at least the major missions.

     

    Amendment  10

    Proposal for a regulation – amending act

    Article 1 - point 5

    Regulation (EC, Euratom) No 1605/2002

    Article 50 - paragraph 1

     

    Text proposed by the Commission

    Amendment

    (5) In the first paragraph of Article 50, the following sentence is added:

    (5) In the first paragraph of Article 50, the following sentence and the following subparagraph are added:

    "However, detailed rules may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget."

    "However, detailed rules may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' appropriations entered in the EEAS section of the Budget.

     

    Within the EEAS a Director General for budget and administration shall be responsible to the High Representative for the administrative and internal budgetary management of the EEAS. He shall work within the existing format and follow the same administrative rules as applicable to the Part of Section III of the EU budget which falls under Heading V of the Multiannual Financial Framework."

    Amendment   11

    Proposal for a regulation – amending act

    Article 1 - point 6

    Regulation (EC, Euratom) No 1605/2002

    Article 51 - paragraph 2 a (new)

     

    Text proposed by the Commission

    Amendment

     

    The Commission shall have the right to withdraw specific subdelegations in accordance with its own rules.

    Amendment   12

    Proposal for a regulation – amending act

    Article 1 - point 8

    Regulation (EC, Euratom) No 1605/2002

    Article 59 - paragraph 5

     

    Text proposed by the Commission

    Amendment

    "5. Where Heads of Union Delegations act as authorising officers by sub-delegation in accordance with the second paragraph of Article 51, they shall refer, where their duties as authorising officer so require, to the Commission as their institution."

    "5. Where Heads of Union Delegations act as authorising officers by sub-delegation in accordance with the second paragraph of Article 51, they shall be subject to the Commission as the institution responsible for the definition, exercise, control and appraisal of their duties and responsibilities as authorising officers by sub-delegation."

    Amendment  13

    Proposal for a regulation – amending act

    Article 1 - point 9

    Regulation (EC, Euratom) No 1605/2002

    Article 60 a - paragraph 4 a (new)

     

    Text proposed by the Commission

    Amendment

     

    4a. The Commission shall ensure that sub-delegating powers will not be detrimental to the discharge procedure in the European Parliament, where the Commission assumes the full responsibility for the operating budget of the EEAS.

    Amendment   14

    Proposal for a regulation – amending act

    Article 1 - point 9

    Regulation (EC, Euratom) No 1605/2002

    Article 60 a - paragraph 2

     

    Text proposed by the Commission

    Amendment

    2. When a Head of a Union Delegation finds himself in a situation referred to in Article 60(6), he shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, he shall inform the authorities and bodies designated by the applicable legislation.

    2. When a Head of a Union Delegation finds himself in a situation referred to in Article 60(6), he shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption, he shall inform the authorities and bodies designated by the applicable legislation.

    Amendment   15

    Proposal for a regulation – amending act

    Article 1 - point 11 - point b

    Regulation (EC, Euratom) No 1605/2002

    Article 66 - paragraph 5 - subparagraph 3 a (new)

     

    Text proposed by the Commission

    Amendment

     

    This shall apply mutatis mutandis to the authorities of a Member State for temporary agents coming from the diplomatic services of the Member States as well as seconded national experts. The Member State of origin shall be liable for all sums not recovered within three years after a decision on liability has been taken.

    PROCEDURE

    Title

    Amendment of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    References

    COM(2010)0085 – C7-0086/2010 – 2010/0054(COD)

    Committee responsible

    BUDG

    Opinion by

           Date announced in plenary

    AFET

    21.4.2010

     

     

     

    Rapporteur

           Date appointed

    Göran Färm

    3.5.2010

     

     

    Discussed in committee

    2.9.2010

    20.9.2010

     

     

    Date adopted

    20.9.2010

     

     

     

    Result of final vote

    +:

    –:

    0:

    47

    1

    0

    Members present for the final vote

    Gabriele Albertini, Dominique Baudis, Bastiaan Belder, Franziska Katharina Brantner, Elmar Brok, Mário David, Michael Gahler, Ana Gomes, Takis Hadjigeorgiou, Heidi Hautala, Jelko Kacin, Ioannis Kasoulides, Tunne Kelam, Nicole Kiil-Nielsen, Maria Eleni Koppa, Andrey Kovatchev, Wolfgang Kreissl-Dörfler, Eduard Kukan, Alexander Graf Lambsdorff, Vytautas Landsbergis, Ulrike Lunacek, Mario Mauro, Kyriakos Mavronikolas, Francisco José Millán Mon, Raimon Obiols, Bernd Posselt, Cristian Dan Preda, José Ignacio Salafranca Sánchez-Neyra, Marek Siwiec, Ernst Strasser, Hannes Swoboda, Charles Tannock, Zoran Thaler, Inese Vaidere, Kristian Vigenin, Boris Zala

    Substitute(s) present for the final vote

    Laima Liucija Andrikienė, Reinhard Bütikofer, Kinga Gál, Roberto Gualtieri, Georgios Koumoutsakos, Doris Pack, Marietje Schaake, György Schöpflin, Indrek Tarand, Dominique Vlasto

    Substitute(s) under Rule 187(2) present for the final vote

    Danuta Jazłowiecka, Catherine Soullie

    OPINION of the Committee on Development (1.9.2010)

    for the Committee on Budgets

    on the proposal for a Regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service
    (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD))

    Rapporteur: Thijs Berman

    SHORT JUSTIFICATION

    The European External Action Service will manage its own administrative budget and also have responsibility for certain parts of the operational budget falling within its remit.

    All categories of EEAS staff will serve in the delegations of the European Union as well as in Headquarters - including staff originating from the European Commission, the Secretariat of the Council and from Member States' diplomatic services. The different backgrounds of the staff members will make the EEAS a melting-pot for a multiplicity of corporate cultures, and it will gradually have to establish a culture of its own.

    In establishing the new Service, and particularly in drawing up its financial rules, it is necessary to ensure the maximum safeguards for financial probity from the beginning, in such a way that financial integrity will become ingrained in corporate culture of the Service.

    One important way to promote financial probity is to ensure the smooth interaction of the various services responsible for supervision of financial matters, especially in EU delegations. These services must also cooperate with the bodies responsible for investigating and processing cases of financial irregularities.

    Your rapporteur therefore proposes amendments requiring the inspectorate, located in the central administration of the EEAS (according to Article 3 of the Council Decision establishing the EEAS) to work closely with the Commission internal auditor, who will also function as the internal auditor of the EEAS. The amendments also oblige staff working in the inspectorate, as soon as they become aware of possible cases of irregularities, to pass the information to the Commission internal auditor and to the bodies responsible for investigating and processing such cases.

    By means of strengthening these safeguards, your rapporteur hopes to enhance the confidence of European citizens in their European institutions. The structural improvements proposed in this Opinion are minor in themselves, but aim to impose, at all levels of the new Service, the culture of financial integrity necessary for the trust in the smooth and unquestionable future functioning of the EEAS.

    AMENDMENTS

    The Committee on Development calls on the Committee on Budgets, as the committee responsible, to incorporate the following amendments in its report:

    Amendment   1

    Proposal for a regulation – amending act

    Article 1 - point 7 a (new)

    Regulation (EC) No 1605/2002

    Article 56 a (new)

     

    Text proposed by the Commission

    Amendment

    (7a) The following Article 56a is added:

    "Article 56a

    The functioning of the Union Delegations shall be examined by the Department for Inspections of the EEAS which shall report directly to the High Representative of the Union for Foreign Affairs and Security Policy.

    The Department for Inspections shall cooperate with the Commission's internal audit service on the basis of service level agreements. Those service level agreements shall in particular define the mutual exchange of information found during examinations.

    The Annual Report of the Inspection of the Delegations shall be made available to the budgetary authority in application, mutatis mutandis, of Article 60(7)."

    Justification

    Accountability for integrity in financial operations in the Union Delegations is enhanced if the Department for Inspections of the EEAS is directly responsible to the High Representative / Vice-President. The requirement for it to cooperate with the Commission’s internal audit service is intended to improve the effectiveness of both services.

    Amendment  2

    Proposal for a regulation – amending act

    Article 1 – point 9

    Regulation (EC) No 1605/2002

    Article 60a – paragraph 1 – subparagraph 3

     

    Text proposed by the Commission

    Amendment

    Where a situation or conflict referred to in the second subparagraph arise, the Heads of Union Delegations shall inform the responsible Commission department and the High Representative of the Union for Foreign Affairs and Security Policy thereof without delay.

    Where a situation or conflict referred to in the second subparagraph arise, the Heads of Union Delegations shall inform the responsible Directors-General of the Commission and of the EEAS and, where appropriate, the specialised financial irregularities panel set up pursuant to Article 66(4) or the European Anti-fraud Office (OLAF) thereof without delay.

    Justification

    It is often the inspectorate which first becomes aware of evidence of financial irregularities. Information should be passed to the relevant authorities at the first indication that such a situation may arise, and all staff members of Union delegations need to share this responsibility.

    Amendment  3

    Proposal for a regulation – amending act

    Article 1 – point 9

    Regulation (EC) No 1605/2002

    Article 60a – paragraph 2

     

    Text proposed by the Commission

    Amendment

    2. When a Head of a Union Delegation finds himself in a situation referred to in Article 60(6), he shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, he shall inform the authorities and bodies designated by the applicable legislation.

    2. When a Head, or any other staff member, of a Union Delegation finds himself in a situation referred to in Article 60(6), or if the Department for Inspections in the Central Administration of the EEAS become aware of situations liable to fall under Article 60(6), they shall refer to the specialised financial irregularities panel set up pursuant to Article 66(4). In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, the Head, or any other staff member, of a Union Delegation and/or the Department for Inspections shall inform the authorities and bodies designated by the applicable legislation.

    Justification

    It is often the inspectorate which first becomes aware of evidence of financial irregularities. Information should be passed to the relevant authorities at the first indication that such a situation may arise, and all staff members of Union delegations need to share this responsibility.

    Amendment  4

    Proposal for a regulation – amending act

    Article 1 – point 12

    Regulation (EC) No 1605/2002

    Article 85 – paragraphs 1 and 3

     

    Text proposed by the Commission

    Amendment

    For the purposes of the internal auditing of the EEAS, Heads of Union Delegations, acting as authorising officers by subdelegation in accordance with the second paragraph of Article 51 shall be subject to the verifying powers of the internal auditor of the Commission for the financial management sub-delegated to them.

    The internal auditor of the Commission shall have the same responsibilities in respect of the EEAS referred to in Article 1, as he/she has in respect of Commission departments.

    For reasons of coherence, efficiency and cost-effectiveness, the internal auditor of the Commission shall also act as the internal auditor of the EEAS in respect of the budget implementation of the EEAS section of the budget.

    The Commission's internal auditor shall work closely with the department for inspections in the central administration of the EEAS. The department for inspections of the EEAS shall, without delay, send all information relating to situations liable to fall under Article 60(6) to the Commission's internal auditor, and, where appropriate, to the specialised financial irregularities panel set up pursuant to Article 66(4) or to OLAF.

    Justification

    It is often the inspectorate which first becomes aware of evidence of financial irregularities. Information should be passed to the relevant authorities at the first indication that such a situation may arise.

    Amendment  5

    Proposal for a regulation – amending act

    Article 1 - point 12 a (new)

    Regulation (EC) No 1605/2002

    Article 95 - paragraph 3 a (new)

     

    Text proposed by the Commission

    Amendment

    (12a) In Article 95, the following paragraph 3a is added:

    "3a. The Commission shall have a regular exchange of information with international organisations implementing Union funds with a view to jointly identifying actors whose lack of financial probity makes them unsuitable partners in the management of Union funds. This shall apply mutatis mutandis to the EEAS which is responsible for its own administrative budget."

    Justification

    The World Bank has entered into a cross-debarment agreement with Multilateral Development Banks by which they jointly identify actors whose lack of financial probity does not make them suitable partners in the management of funds. The EEAS should join this initiative or establish a similar system.

    PROCEDURE

    Title

    Amendment of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    References

    COM(2010)0085 – C7-0086/2010 – 2010/0054(COD)

    Committee responsible

    BUDG

    Opinion by

           Date announced in plenary

    DEVE

    21.4.2010

     

     

     

    Rapporteur

           Date appointed

    Thijs Berman

    4.5.2010

     

     

    Discussed in committee

    12.7.2010

     

     

     

    Date adopted

    30.8.2010

     

     

     

    Result of final vote

    +:

    –:

    0:

    23

    0

    0

    Members present for the final vote

    Véronique De Keyser, Leonidas Donskis, Charles Goerens, Catherine Grèze, Enrique Guerrero Salom, András Gyürk, Eva Joly, Filip Kaczmarek, Franziska Keller, Gay Mitchell, Norbert Neuser, Bill Newton Dunn, Maurice Ponga, Michèle Striffler, Alf Svensson, Eleni Theocharous, Patrice Tirolien, Ivo Vajgl, Iva Zanicchi

    Substitute(s) present for the final vote

    Kriton Arsenis, Miguel Angel Martínez Martínez, Patrizia Toia

    Substitute(s) under Rule 187(2) present for the final vote

    Derek Vaughan

    OPINION of the Committee on International Trade (31.8.2010)

    for the Committee on Budgets

    on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service
    (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD))

    Rapporteur: Kader Arif

    AMENDMENTS

    The Committee on International Trade calls on the Committee on Budgets, as the committee responsible, to incorporate the following amendments in its report:

    Amendment  1

    Proposal for a regulation – amending act

    Article 1 - point 9

    Regulation 1605/2002

    Article 60a – paragraph 1 – subparagraph 3

     

    Text proposed by the Commission

    Amendment

    Where a situation or conflict referred to in the second subparagraph arise, the Heads of Union Delegations shall inform the responsible Commission department and the High Representative of the Union for Foreign Affairs and Security Policy thereof without delay.

    Where a situation or conflict referred to in the second subparagraph arise, the Heads of Union Delegations shall inform the responsible Commission department and the High Representative of the Union for Foreign Affairs and Security Policy thereof without delay. When such a conflict arises regarding the implementation of funds in the area of the common commercial policy, the Heads of Union Delegations shall report back to the EU Trade Commissioner and the Vice President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy. The final decision shall be made by the President of the Commission.

    Justification

    Since the adoption of the Treaty of Lisbon, the Common commercial policy (CCP) is an exclusive competence of the EU. Therefore, it is important to secure that in case of conflict between the Trade Commissioner and the VP/HR regarding the way a Head of Delegation or its staff perform CCP duties, the final decision remains in the hands of the Commission.

    PROCEDURE

    Title

    Amendment of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    References

    COM(2010)0085 – C7-0086/2010 – 2010/0054(COD)

    Committee responsible

    BUDG

    Opinion by

           Date announced in plenary

    INTA

    21.4.2010

     

     

     

    Rapporteur

           Date appointed

    Kader Arif

    28.4.2010

     

     

    Discussed in committee

    14.7.2010

     

     

     

    Date adopted

    30.8.2010

     

     

     

    Result of final vote

    +:

    –:

    0:

    20

    1

    0

    Members present for the final vote

    William (The Earl of) Dartmouth, Kader Arif, Daniel Caspary, Marielle De Sarnez, Christofer Fjellner, Yannick Jadot, Metin Kazak, Bernd Lange, David Martin, Emilio Menéndez del Valle, Vital Moreira, Niccolò Rinaldi, Tokia Saïfi, Helmut Scholz, Robert Sturdy, Keith Taylor, Iuliu Winkler, Pablo Zalba Bidegain

    Substitute(s) present for the final vote

    George Sabin Cutaş, Carl Schlyter, Jarosław Leszek Wałęsa

    Substitute(s) under Rule 187(2) present for the final vote

    Edit Bauer

    OPINION of the Committee on Constitutional Affairs (7.9.2010)

    for the Committee on Budgets

    on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) n° 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service.
    (COM(2010)0085 – C7‑0086/2010 – 2010/0054(COD))

    Rapporteur: Guy Verhofstadt

    AMENDMENTS

    The Committee on Constitutional Affairs calls on the Committee on Budgets, as the committee responsible, to incorporate the following amendments in its report:

    Amendment  1

    Proposal for a regulation – amending act

    Recital 1

    Text proposed by the Commission

    Amendment

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon.

    (1) Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (hereinafter the Financial Regulation), lays down the budgetary principles and financial rules which should be respected in all legislative acts. It is necessary to amend certain provisions of the Financial Regulation in order to take account of the amendments introduced by the Treaty of Lisbon and of the establishment of the European External Action Service.

    Amendment  2

    Proposal for a regulation – amending act

    Recital 2

    Text proposed by the Commission

    Amendment

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to the conclusions of the European Council of 29 and 30 October 2009, the EEAS is a service of a sui generis nature and should be treated as an institution for the purposes of the Financial Regulation.

    (2) The Treaty of Lisbon establishes a European External Action Service (hereinafter “EEAS”). According to Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service1, the EEAS is a service of a sui generis nature and is to be treated as an institution for the purposes of the Financial Regulation.

     

    _______________________

    1 OJ L 201, 3.8.2010, p. 30.

    Amendment  3

    Proposal for a regulation – amending act

    Recital 3

    Text proposed by the Commission

    Amendment

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission.

    (3) Given that the EEAS should be treated as an institution for the purposes of the Financial Regulation, the European Parliament is to grant discharge to the EEAS for the implementation of the appropriations voted in the EEAS section of the Budget. In this context, the EEAS must fully respect the procedures provided for in Article 319 of the Treaty on the Functioning of the European Union and in Articles 145 to 147 of the Financial Regulation. The European Parliament should also continue to grant discharge to the Commission for the implementation of Commission's section of the Budget, including operational appropriations implemented by Heads of Delegations who are sub-delegated authorising officers of the Commission. Given the complexity of this structure, rigorous provisions on traceability and budgetary and financial accountability need to be applied.

    Amendment  4

    Proposal for a regulation – amending act

    Recital 4

    Text proposed by the Commission

    Amendment

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed rules, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget.

    (4) The Lisbon Treaty foresees that Commission Delegations become part of the EEAS as Union Delegations. In order to ensure their efficient management, all administrative and support expenditure of Union Delegations which finance common costs should be executed by a single support service. To that effect, the Financial Regulation should foresee the possibility for detailed rules, to be agreed with the Commission, in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS section of the Budget.

    Amendment  5

    Proposal for a regulation – amending act

    Recital 10

    Text proposed by the Commission

    Amendment

    (10) In order to ensure coherence, efficiency and cost-effectiveness of financial control, the internal auditor of the Commission should act as the internal auditor of the EEAS in respect of the budget implementation of both the Commission and the EEAS sections of the Budget.

    (10) In order to ensure coherence, efficiency and cost-effectiveness of financial control, the internal auditor of the Commission should act as the internal auditor of the EEAS in respect of the budget implementation of both the Commission and the EEAS sections of the Budget. The European Parliament fully supports this and calls on the High Representative/Vice President of the Commission to come forward with a proposal on this issue.

    Amendment  6

    Proposal for a regulation – amending act

    Recital 10 a (new)

    Text proposed by the Commission

    Amendment

     

    (10a) The term "High Representative of the Union for Foreign Affairs and Security Policy"should, for the purposes of Regulation (EC, Euratom) No 1605/2002, be interpreted in accordance with the different functions of the High Representative under Article 18 of the Treaty on European Union.

    Amendment  7

    Proposal for a regulation – amending act

    Article 1 – point 4 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 31 – paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4a) After the first paragraph of Article 31, the following paragraph is inserted:

     

    "The European External Action Service shall draw up an estimate of its revenue and expenditure and shall send this to the Commission before 1 July each year. The High Representative/Vice President of the Commission shall hold consultations with, respectively, the Commissioner for Development Policy and the Commissioner for Neighbourhood Policy regarding their respective responsibility."

    Justification

    The text reproduces faithfully the agreement reached in Madrid and voted on in plenary.

    Amendment  8

    Proposal for a regulation – amending act

    Article 1 – point 4 b (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 41 – paragraph 1 – subparagraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4b) In Article 41(1), the following subparagraph is added:

     

    "In order to ensure budgetary transparency in the area of external action of the Union, the Commission shall transmit to the budgetary authority, together with the draft EU budget, a working document presenting, in a comprehensive way, all expenditure related to the external actions of the Union."

    Justification

    The text reproduces faithfully the agreement reached in Madrid and voted on in plenary.

    Amendment  9

    Proposal for a regulation – amending act

    Article 1 – point 4 c (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 46 – paragraph 1 – point 3 – point a – paragraphs 1 a to 1 d (new)

     

    Text proposed by the Commission

    Amendment

     

    (4c) In point (3)(a) of Article 46(1), the following paragraphs are added:

     

    "The establishment plan for the EEAS section of the budget shall set the number of posts for each grade in each category and the number of permanent and temporary posts including contractual and local staff authorised within the limits of the budget appropriations.

     

    The establishment plan shall show any increase or reduction of posts by grade and category in the EEAS's central administration and the entirety of the Union's Delegations based on the preceding year.

     

    The establishment plan shall also show, next to the number of posts authorised for the financial year, the number of posts authorised for the preceding year, as well as the number of posts occupied by diplomats coming from the Member States and by Council and Commission staff.

     

    The budgetary authority shall be informed of the number of posts for each grade, in each category and in each of the Union's Delegations as well as the EEAS's central administration. This information shall be presented as an annex to the establishment plan for the EEAS section of the budget."

    Justification

    The text reproduces faithfully the agreement reached in Madrid and voted on in plenary.

    Amendment  10

    Proposal for a regulation – amending act

    Article 1 – point 5

    Regulation (EC, Euratom) No 1605/2002

    Article 50 – paragraph 1

     

    Text proposed by the Commission

    Amendment

    However, detailed rules may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS and the Council sections of the Budget.

    However, detailed rules may be agreed with the Commission in order to facilitate the implementation of the Union Delegations' operating appropriations entered in the EEAS section of the Budget.

    Amendment  11

    Proposal for a regulation – amending act

    Article 1 – point 5 a (new)

    Regulation (EC, Euratom) No 1605/2002

    Article 50 – paragraph 1 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (5a) In Article 50, the following paragraph is inserted after the first paragraph:

     

    "Within the EEAS a Director-General for budget and administration shall be responsible to the High Representative/Vice President of the Commission for the administrative and internal budgetary management of the EEAS. He shall follow the same budget lines and administrative rules as are applicable in the Part of Section III of the EU budget which falls under Heading V of the multiannual financial framework."

    Justification

    The text reproduces faithfully the agreement reached in Madrid and voted on in plenary.

    Amendment  12

    Proposal for a regulation – amending act

    Article 1 – point 9

    Regulation (EC, Euratom) No 1605/2002

    Article 60 a – paragraph 4 a (new)

     

    Text proposed by the Commission

    Amendment

     

    (4a) The Commission shall ensure that sub-delegating powers do not impede the discharge procedure in the European Parliament, where the Commission assumes the full responsibility for the operating budget of the EEAS.

    Amendment  13

    Proposal for a regulation – amending act

    Article 1 – point 11 – point b

    Regulation (EC, Euratom) No 1605/2002

    Article 66 – paragraph 5 – subparagraph 3 a (new)

     

    Text proposed by the Commission

    Amendment

     

    This shall apply mutatis mutandis to the authorities of a Member State in respect of staff coming from the diplomatic services of the Member States. The Member State of origin shall be liable for all sums not recovered within three years after a decision on liability has been taken.

    Justification

    The text reproduces faithfully the agreement reached in Madrid and voted on in plenary.

    PROCEDURE

    Title

    Amendment of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    References

    COM(2010)0085 – C7-0086/2010 – 2010/0054(COD)

    Committee responsible

    BUDG

    Opinion by

           Date announced in plenary

    AFCO

    21.4.2010

     

     

     

    Rapporteur

           Date appointed

    Guy Verhofstadt

    3.5.2010

     

     

    Discussed in committee

    17.5.2010

    2.6.2010

    14.6.2010

     

    Date adopted

    6.9.2010

     

     

     

    Result of final vote

    +:

    –:

    0:

    21

    0

    0

    Members present for the final vote

    Carlo Casini, Andrew Duff, Matthias Groote, Roberto Gualtieri, Zita Gurmai, Gerald Häfner, Stanimir Ilchev, Ramón Jáuregui Atondo, Constance Le Grip, David Martin, Paulo Rangel, Algirdas Saudargas, György Schöpflin, József Szájer, Søren Bo Søndergaard, Indrek Tarand, Rafał Trzaskowski, Guy Verhofstadt

    Substitute(s) present for the final vote

    Enrique Guerrero Salom, Íñigo Méndez de Vigo, Vital Moreira, Helmut Scholz

    PROCEDURE

    Title

    Amendment of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

    References

    COM(2010)0085 – C7-0086/2010 – 2010/0054(COD)

    Date submitted to Parliament

    11.3.2010

    Committee responsible

           Date announced in plenary

    BUDG

    21.4.2010

    Committee(s) asked for opinion(s)

           Date announced in plenary

    AFET

    21.4.2010

    DEVE

    21.4.2010

    INTA

    21.4.2010

    CONT

    21.4.2010

     

    ENVI

    21.4.2010

    JURI

    21.4.2010

    AFCO

    21.4.2010

    FEMM

    21.4.2010

    Not delivering opinions

           Date of decision

    ENVI

    27.4.2010

    JURI

    19.4.2010

    FEMM

    29.9.2010

     

    Rapporteur(s)

           Date appointed

    Crescenzio Rivellini

    23.3.2010

    Ingeborg Gräßle

    23.3.2010

     

    Date adopted

    28.9.2010

     

     

     

    Result of final vote

    +:

    –:

    0:

    59

    3

    0

    Members present for the final vote

    Damien Abad, Jean-Pierre Audy, Francesca Balzani, Zuzana Brzobohatá, Andrea Češková, Jorgo Chatzimarkakis, Giovanni Collino, Andrea Cozzolino, Frédéric Daerden, Jean-Luc Dehaene, Luigi de Magistris, Martin Ehrenhauser, James Elles, Göran Färm, José Manuel Fernandes, Eider Gardiazábal Rubial, Salvador Garriga Polledo, Jens Geier, Gerben-Jan Gerbrandy, Ivars Godmanis, Ingeborg Gräßle, Estelle Grelier, Roberto Gualtieri, Carl Haglund, Lucas Hartong, Jutta Haug, Jiří Havel, Monika Hohlmeier, Cătălin Sorin Ivan, Iliana Ivanova, Sidonia Elżbieta Jędrzejewska, Anne E. Jensen, Sergej Kozlík, Jan Kozłowski, Alain Lamassoure, Giovanni La Via, Monica Luisa Macovei, Barbara Matera, Claudio Morganti, Nadezhda Neynsky, Jan Olbrycht, Aldo Patriciello, Miguel Portas, Dominique Riquet, Christel Schaldemose, Bart Staes, Georgios Stavrakakis, László Surján, Helga Trüpel, Derek Vaughan, Axel Voss

    Substitute(s) present for the final vote

    Inés Ayala Sender, Zuzana Brzobohatá, Tamás Deutsch, Martin Ehrenhauser, Christofer Fjellner, Roberto Gualtieri, Monica Luisa Macovei, Jan Olbrycht, Markus Pieper, Christel Schaldemose, Sergio Paolo Francesco Silvestris, Georgios Stavrakakis, Axel Voss, Kerstin Westphal, Joachim Zeller