(Consultation procedure)

The European Parliament,

–   having regard to the draft Commission regulation (SEC(2006)0866),

–   having been consulted by the Commission by letter of 4 July 2006 in accordance with the declaration adopted in the context of the conciliation procedure prior to the adoption of the Financial Regulation in relation to Article 183 thereof (C6-0231/2006),

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

–   having regard to the report of the Committee on Budgetary Control (A6-0007/2007),

1.  Approves the draft Commission regulation as amended;

2.  Calls on the Commission to alter its draft regulation accordingly;

3.  Asks to be consulted again if the Commission should intend to depart from the text approved by Parliament;

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

Text proposed by the Commission   Amendments by Parliament Amendment 1 RECITAL 15 (15)  In order to ensure proper management of the common central database on exclusions the major practical arrangements for using the database should be laid down. (15)  In order to ensure proper management of the common central database on exclusions the major practical arrangements for using the database should be laid down. Following consultation of the European Data Protection Supervisor, adequate data protection standards should be applied. Amendment 2 ARTICLE 1, POINT 1 Article 2 (Regulation (EC, Euratom) No 2342/2002) Legislative acts concerning the implementation of the budget Legislative acts concerning the implementation of the budget (Article 2 of the Financial Regulation) (Articles 2 and 49 of the Financial Regulation) The Commission shall annually update in the preliminary draft budget the information on the acts referred to in Article 2 of the Financial Regulation. The Commission shall annually update in the preliminary draft budget the information on the acts referred to in Article 2 of the Financial Regulation. Any draft proposal for a legislative act shall clearly indicate any provisions containing exceptions to or derogations from the Financial Regulation and/or its implementing rules by expressly mentioning the relevant provisions in the final paragraph of the proposed act's Explanatory Memorandum, which shall be provided to the budgetary authority. Amendment 3 ARTICLE 1, POINT 12 Article 17 (Regulation (EC, Euratom) No 2342/2002) Article 17 deleted Rules concerning the calculation of time-limits and percentages on transfers (Articles 22 and 23 of the Financial Regulation) 1.  The time limits laid down in Article 24 of the Financial Regulation which are applicable for decisions on transfers referred to in Article 22(1) and Article 23(1) points (b) and (c) of the Financial Regulation shall be deemed to begin on the date on which the budgetary authority was informed by the institution of the intended transfer. 2.  The percentages referred to in Articles 22 and 23 of the Financial Regulation shall be calculated at the time the request for transfer is made and with reference to the appropriations provided in the budget, including amending budgets. 3.  For the percentage limits referred to in Articles 22 and 23 of the Financial Regulation, the amount to be taken into consideration shall be the sum of the transfers to be made on the line from which transfers are being made, after adjustment for earlier transfers made. The amount corresponding to the transfers which can be carried out autonomously by the institution concerned without a decision of the budgetary authority shall not be taken into consideration. Amendment 4 ARTICLE 1, POINT 13 A (new) Article 21, paragraph 1, point (h) (Regulation (EC, Euratom) No 2342/2002) (13a) In Article 21(1), point (h) is replaced by the following: "(h) the volume of appropriations, human resources and other administrative expenditure to be allocated with due regard to the principle of sound financial management, in particular cost-effectiveness;" Amendment 5 ARTICLE 1, POINT 13 B (new) Article 21, paragraph 2 (Regulation (EC, Euratom) No 2342/2002) (13b) Article 21(2) is replaced by the following: "2. The proposal shall set out the arrangements for monitoring, reporting and evaluation, taking due account of the respective responsibilities of all levels of government that will be involved in the implementation of the proposed programme or activity. Where possible and appropriate, the proposal shall predefine intermediate targets on which reports become due, taking into account the aims of the programme or activity and the steps required for its implementation." Amendment 6 ARTICLE 1, POINT 13 C (new) Article 21, paragraph 3, points (a) and (b) (Regulation (EC, Euratom) No 2342/2002) (13c) In Article 21(3), points (a) and (b) are replaced by the following: "(a) the results obtained in carrying out a multiannual programme shall be periodically evaluated in accordance with a timetable which enables the findings of that evaluation to be taken into account for any decision on the renewal, modification or suspension of the programme; where possible and appropriate, evaluations shall be carried out whenever the programme has reached a (pre)defined or definable intermediate target. (b) activities financed on an annual basis shall have their results evaluated at least every six years; where possible and appropriate, evaluations shall be carried out whenever the activity has reached a (pre)defined or definable intermediate target." Amendment 7 ARTICLE 1, POINT 16 Article 23a, title (Regulation (EC, Euratom) No 2342/2002) Definition of effective and efficient internal control (Article 30a(1) of the Financial Regulation) Definition of effective and efficient internal control (Article 28a(1) of the Financial Regulation) Amendment 8 ARTICLE 1, POINT 16 Article 23a, paragraph 2 (Regulation (EC, Euratom) No 2342/2002) 2.  Efficient internal control is based on the following elements: 2.  Efficient internal control is based on the following elements: (a) taking account of the management mode applied, the implementation of an appropriate risk management and control strategies coordinated among appropriate actors involved in the control chain balancing the cost for the Community budget and benefits of controls and setting the control level in order to attain a tolerable risk level; (a) the implementation of an appropriate risk management and control strategy coordinated among appropriate actors involved in the control chain; (b) the accessibility of control results to all appropriate actors involved in the control chain; (b) the accessibility of control results to all appropriate actors involved in the control chain; (c) the timely application of corrective measures including, where appropriate, dissuasive penalties; (c) the timely application of corrective measures including, where appropriate, dissuasive penalties; (d) the provision of a management assurance at the appropriate management level, that systems have been put in place that provide reasonable assurance on the legality and regularity of underlying transactions. (d) the existence of clear and unambiguous legislation underlying the policies; (da) the elimination of multiple controls; (db) the principle of improving the cost-benefit ratio of controls. The element mentioned under point (da) ensures that where the legality and regularity of the underlying transactions has already been established by a public service institution (initial audit), further audits of the same entity in the same domain will in principle not be carried out for the duration of one year following the conclusion of the initial audit. Amendment 9 ARTICLE 1, POINT 17 A (new) Article 25a (new) (Regulation (EC, Euratom) No 2342/2002) (17a) The following article is inserted: "Article 25a Information on budgetary remarks (Articles 33, 46(1)(g) and 49 of the Financial Regulation) The Commission activity statements mentioned in Article 33 of the Financial Regulation shall, notwithstanding the provisions of Article 49 of the Financial Regulation, state the results of actions taken on the remarks of the budget (Article 46(1)(g) of the Financial Regulation)." Amendment 10 ARTICLE 1, POINT 22 A (new) Article 35a (new) (Regulation (EC, Euratom) No 2342/2002) (22a) The following article is inserted: "Article 35a Measures to enhance consistent interpretation of sector specific legislation (Article 53b of the Financial Regulation) The Commission shall compile a register of bodies responsible for first and second level controls under the sector specific regulations. In order to attain consistent interpretation of the Structural Funds legislation within the EU, the Commission shall provide an inquiries helpdesk and shall publish best practice examples and public guidelines on the interpretation of the legislation." Amendment 11 ARTICLE 1, POINT 32 Article 43, paragraph 2, point (c a) (new) (Regulation (EC, Euratom) No 2342/2002) (ca) the International Union for the Conservation of Nature and Natural Resources; Amendment 12 ARTICLE 1, POINT 32 A (new) Article 43 a (new) (Regulation (EC, Euratom) No 2342/2002) (32a) The following article is inserted: "Article 43a Information on transfer of data (Articles 92, 110(1) and 155 of the Financial Regulation) In any call made in the context of procurements, grants or structural funds, potential beneficiaries, candidates and tenderers shall be informed that, for the purpose of safeguarding the financial interests of the Communities, their personal data may be transferred to internal audit services, to the European Court of Auditors, to the Financial Irregularities Panel and/or to the European Anti-Fraud Office (OLAF), or to any other institution or body competent in the fields of auditing or investigation." Amendment 13 ARTICLE 1, POINT 33 A (new) Article 48, point (e) and point (e a) (new) (Regulation (EC, Euratom) No 2342/2002) (33a) In Article 48, point (e) is replaced by the following: "(e) identify and prevent management risks in particular but not exclusively linked to the performance of long-term contracts (exceeding three years); (ea) ensure adherence to the principle of sound financial management by installing systems that provide for regular follow up of long-term obligations;" Amendment 14 ARTICLE 1, POINT 33 B (new) Article 49, paragraph 2 a (new) (Regulation (EC, Euratom) No 2342/2002) (33b) In Article 49, the following paragraph is added: "The Commission shall evaluate at regular intervals the need for continued storage of personal data." Amendment 15 ARTICLE 1, POINT 34 A (new) Article 59, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (34a) Article 59(1) is replaced by the following: "1. For the requirements of treasury management, the accounting officer may only open accounts in the name of the institution with financial institutions or national central banks. In duly warranted circumstances, accounts may be opened in currencies other than the euro. Accounts for both income and expenditure may only be opened for the purpose of budgetary implementation. All accounts, including imprest accounts, must be shown in an annex to the Commission reports on budgetary and financial management. This annex shall show a balance of those accounts at the beginning and at the end of the relevant budgetary year as well as a short description of the purpose for which the account was opened or is being maintained. The accounting officer shall ensure by appropriate means that accounts which are no longer in use shall immediately be closed." Amendment 16 ARTICLE 1, POINT 36 A (new) Article 73, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (36a) Article 73(1) is replaced by the following: "1. An authorising officer by delegation or subdelegation who receives a binding instruction which he considers to be irregular or contrary to the principle of sound financial management, in particular because the instruction cannot be carried out with the resources allocated to him, shall, in writing, so inform the authority from which he received the delegation or subdelegation. If the instruction is confirmed in writing and that confirmation is received in good time and is sufficiently clear, in that it refers explicitly to the points which the authorising officer by delegation or subdelegation has challenged, the authorising officer may not be held liable; he shall carry out the instruction, unless it is manifestly illegal in which case he shall immediately refer the case to the instructing authority's superior in accordance with Article 21a of the Staff Regulations1. Regulation No 31/EEC, 11/EAEC, OJ 45, 14.6.1962, p. 1385. Regulation as last amended by Council Regulation (EC, Euratom) No 2104/2005 (OJ L 337, 22.12.2005, p. 7)." Amendment 17 ARTICLE 1, POINT 38 Article 75 (Regulation (EC, Euratom) No 2342/2002) 1.  Cases of financial irregularities as referred to in Article 74 shall be referred to the panel for an opinion by the appointing authority pursuant to Article 66(4), second subparagraph, of the Financial Regulation. 1.  Cases of financial irregularities as referred to in Article 74 shall be referred to the panel for an opinion by the appointing authority pursuant to the second subparagraph of Article 66(4) of the Financial Regulation. An authorising officer by delegation may refer a matter to the panel if he considers that a financial irregularity has occurred. An authorising officer by delegation may refer a matter to the panel if he considers that a financial irregularity has occurred. Any financial actor may refer a matter to the panel if he considers that a financial irregularity has occurred and he has reason to believe that he might be subject to liability. The panel shall deliver an opinion evaluating whether irregularities within the meaning of Article 74 have occurred, how serious they are and what their consequences might be. Should the panel's analysis suggest that the case referred to it is a matter for OLAF, it shall transmit the case-file to the appointing authority without delay and shall inform OLAF at once. The panel shall deliver an opinion evaluating whether irregularities within the meaning of Article 74 have occurred, how serious they are and what their consequences might be. Should the panel's analysis suggest that the case referred to it is a matter for OLAF, it shall transmit the case-file to the appointing authority and inform OLAF without delay. When the panel is directly informed of a matter by a member of staff in accordance with Article 60(6) of the Financial Regulation, it shall transmit the file to the appointing authority and shall inform the member of staff accordingly. The appointing authority may request the panel's opinion on the case. When the panel is directly informed of a matter by a member of staff in accordance with Article 60(6) of the Financial Regulation, it shall transmit the file to the appointing authority and shall inform the member of staff accordingly. The appointing authority may request the panel's opinion on the case. 1a. Where the panel is of the opinion that no irregularity has occurred, it shall include in that opinion that there are no grounds for liability of the persons concerned by its opinion. 2.  The institution or in the case of a joint panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition, which shall include an outside personality with the required qualifications and expertise. 2.  The institution or, in the case of a joint panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition, which shall include an external person with the required qualifications and expertise. Amendment 18 ARTICLE 1, POINT 40 A (new) Article 81, paragraph 2 a (new) (Regulation (EC, Euratom) No 2342/2002) (40a) In Article 81, the following paragraph is added: "2a. Where the annual aggregate of the debt of a debtor does not exceed EUR 200, no recovery order shall, in general, be issued. Amounts due to which the limitation period applies shall not be included in the aggregate sum." Amendment 19 ARTICLE 1, POINT 40 B (new) Article 81, paragraph 2 b (new) (Regulation (EC, Euratom) No 2342/2002) (40b) In Article 81, the following paragraph is added: "2b. The accounting officer of each institution shall keep a log of amounts due to be recovered, in which debts are grouped according to the date on which payment is due. He shall transmit that list to the Commission's accounting officer. The Commission's accounting officer shall prepare a consolidated list showing the amount due to be recovered per accounting officer and the date on which payment is due. The list shall be added as an annex to the Commission reports on budgetary and financial management." Amendment 20 ARTICLE 1, POINT 40 C (new) Article 81, paragraph 2 c (new) (Regulation (EC, Euratom) No 2342/2002) (40c) In Article 81, the following paragraph is added: "2c. The Commission shall establish a list of debts stating the names of all debtors of Community funds and the amount of the debt, where the debtor has been ordered to pay by a court decision that has the force of res judicata and where no or no significant payment has been made for one year following its pronouncement. It shall be published, taking account of the relevant legislation on data protection." Amendment 21 ARTICLE 1, POINT 41 A (new) Article 84, paragraph 2 a (new) (Regulation (EC, Euratom) No 2342/2002) (41a) In Article 84, the following paragraph is added: "2a. If a Member State or any institution carries out recovery proceedings on behalf of the Community, the Community budget may be used to reimburse the costs associated with these proceedings, where the cost is not borne by the defaulting debtor. The cost of enforcement by third parties shall be determined bi-annually by the Commission's accounting officer and set at a rate depending on, and gradually increasing in line with, the amount to be recovered." Amendment 22 ARTICLE 1, POINT 43 Article 85c, paragraph 4 (Regulation (EC, Euratom) No 2342/2002) 4.  Any legal action relating to an amount receivable as referred to in paragraph 1, including actions brought before a court which later declares itself not to have jurisdiction, shall interrupt the limitation period. The new limitation period of 5 years shall not begin until a judgment having the force of res judicata is given or there is an extrajudicial settlement between the same parties on the same action. 4.  Any legal action relating to an amount receivable as referred to in paragraph 1 shall interrupt the limitation period. The new limitation period of five years shall not begin until a judgment having the force of res judicata is given or there is an extrajudicial settlement between the same parties on the same action. Amendment 23 ARTICLE 1, POINT 43 Article 85c, paragraphs 6a, 6b and 6c (new) (Regulation (EC, Euratom) No 2342/2002) 6a. If the entitlement is the result of deliberate damage to the Communities" interests, the limitation period shall commence at the earliest on the date on which the damage and the legal grounds for and the amount of compensation due are actually and legally determined and recorded by the institution entitled to compensation. 6b. If various debtors are jointly and severally liable, the interruption with regard to one debtor shall apply to all those jointly and severally liable. 6c. Notwithstanding paragraph 1, no recovery order shall be issued after the lapse of the limitation period, which for these purposes shall begin at the end of the year in which the payment or, in the case of advance or intermediate payments, the final payment was made. Amendment 24 ARTICLE 1, POINT 46 A (new) Article 97, paragraph 3 a (new) (Regulation (EC, Euratom) No 2342/2002) (46a) In Article 97, the following paragraph is added: "3a. The validation decision shall be taken no later than six weeks after the authorising officer has received the supporting documents. After the expiry of this deadline, the authorising officer shall inform the creditor in writing or electronically of the reasons for the delay and indicate the provisional date for a decision." Amendment 25 ARTICLE 1, POINT 46 B (new) Article 104, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (46b) Article 104(1) is replaced by the following: "1. Pre-financing, including in cases where it is split into a number of payments, shall be paid either on the basis of the contract, the agreement, the decision or the basic act, or on the basis of supporting documents which make it possible to check the conformity of the actions financed with the terms of the contract or agreement in question. Interim payments and payments of balances shall be based on supporting documents which make it possible to check that the action financed has been carried out in accordance with the terms of the contract or agreement concluded with or the decision served upon the beneficiary or of the basic act. If the date for a pre-financing or interim payment is determined in the aforementioned instruments, or if the beneficiary has handed in all of the documentation necessary to carry out the prerequisite checks, payment of the amount due shall not be dependent upon further demand raised by the beneficiary. In these cases, the standard contracts shall provide for automatic payment on the stipulated payment date or, where appropriate, upon receipt of all of the stipulated documentation." Amendment 26 ARTICLE 1, POINT 47 Article 106 (Regulation (EC, Euratom) No 2342/2002) (47)   In Article 106, the following paragraph 6 is added: (47)  Article 106 is replaced by the following: "1. Sums due shall be paid within no more than 45 calendar days from the date on which an admissible payment request is registered by the authorised department of the authorising officer responsible; the date of payment shall be understood to mean the date on which the institution's account is debited. The payment request is not admissible if at least one essential requirement is not met. Where the payment request does not meet one or more essential requirements, the authorising officer shall inform the creditor within 30 calendar days from the date on which the payment request was initially received. This information shall include a description of all deficiencies. 2.  The payment period referred to in paragraph 1 shall be 30 calendar days in the case of payments relating to service or supply contracts, except where the contract provides otherwise. In the case of negotiated procedures and low-value contracts, prompt-payment discounts shall be used where available. 3.  For contracts and grant agreements as well as decisions, under which payment depends on the approval of a report or a certificate, the time-limit for the purposes of the payment periods referred to in paragraphs 1 and 2 shall not begin to run until the report or certificate in question has been approved. The beneficiary shall be informed without delay. The time allowed for approval may not exceed: (a) 20 calendar days for straightforward contracts relating to the supply of goods and services; (b) 45 calendar days for other contracts and grant agreements; (c) 60 calendar days for contracts involving technical services which are particularly complex to evaluate. In any case, the beneficiary shall be advised of the possibility that payments might be delayed for the purpose of approval in the initial call for tenders or call for proposals respectively. The authorising officer responsible shall inform the beneficiary by means of a formal document of any suspension of the period allowed for approval of the report or certificate. The authorising officer responsible may decide that a single time-limit for the approval of the report or the certificate and the payments shall apply. This single time-limit cannot exceed the aggregated maximum applicable periods for approval of the report or certificate and for the payments. 4.  The authorising officer responsible may suspend the time-limit for payment by informing creditors, at any time during the period referred to in paragraph 1, that the payment request cannot be met, either because the amount is not due or because the appropriate supporting documents have not been produced. If information comes to the notice of the authorising officer responsible which puts in doubt the eligibility of expenditure appearing in a payment request, the authorising officer may suspend the time-limit for payment for the purpose of further verification, including an on-the-spot check, in order to ascertain, prior to payment, that the expenditure is indeed eligible. The authorising officer shall inform the beneficiary in question as soon as possible and set out the reasons for the delay. Time for the purposes of the remainder of the payment period shall begin to run again from the date on which the properly formulated payment request is first registered. 5.  On the expiry of the time-limits laid down in paragraphs 1 and 2, the creditor is entitled to interest in accordance with the following provisions: (a) the interest rates shall be those referred to in the first subparagraph of Article 86(2); (b) the interest shall be payable for the period elapsing from the calendar day following expiry of the time-limit for payment up to the day of payment. The first subparagraph shall not apply to Member States. "6. The institutions shall submit to the budgetary authority a report on the compliance with the time limits and on the suspension of the time-limits laid down in paragraphs 1 to 5." 6.  The institutions shall submit to the budgetary authority a report on the compliance with the time limits and on the suspension of the time-limits laid down in paragraphs 1 to 5." Amendment 27 ARTICLE 1, POINT 47 A (new) Article 112, paragraph 1, subparagraph 1 a (new) (Regulation (EC, Euratom) No 2342/2002) (47a) In Article 112(1), the following subparagraph is inserted: "The internal auditor shall particularly focus on the overall adherence to the principle of sound financial management and shall ensure that appropriate measures have been taken in order to steadily improve and enhance its application and shall report accordingly." Amendment 28 ARTICLE 1, POINT 50 Article 117, paragraph 1, subparagraph 4 a (new) (Regulation (EC, Euratom) No 2342/2002) The provisions set out in the fourth subparagraph shall apply mutatis mutandis to long-term building leases which shall be reviewed at least every six years. Amendment 29 ARTICLE 1, POINT 53 A (new) Article 129, paragraph 3 (Regulation (EC, Euratom) No 2342/2002) (53a) Article 129(3) is replaced by the following: "3. Contracts with a value less than or equal to EUR 7 000 may be awarded on the basis of a single tender." Amendment 30 ARTICLE 1, POINT 54 A (new) Article 129, paragraph 4 a (new) (Regulation (EC, Euratom) No 2342/2002) (54a) In Article 129, the following paragraph is added: "4a. Where the budget is implemented by the political groups in the European Parliament or by individual Members of the European Parliament, without prejudice to the public procurement directive, contracts shall be awarded following the rules of procedure specified by the European Parliament." Amendment 31 ARTICLE 1, POINT 58, POINT B Article 134, paragraph 1, subparagraph 1a (Regulation (EC, Euratom) No 2342/2002) Depending on its risks assessment, the contracting authority may refrain from requiring the declaration referred to in subparagraph 1 that the candidates or tenderers are not in one of the situations referred to in Articles 93 and 94 for contracts with a value equal to or less than EUR 3,500 referred to in Article 129(3) and EUR 10,000 as referred to in Articles 241(1) last subparagraph, 243(1) last subparagraph, 245(1) last subparagraph. Depending on its risks assessment, the contracting authority may refrain from requiring the declaration referred to in subparagraph 1 that the candidates or tenderers are not in one of the situations referred to in Articles 93 and 94 for contracts with a value equal to or less than EUR 7 000 referred to in Article 129(3) and EUR 10 000 as referred to in Articles 241(1) last subparagraph, 243(1) last subparagraph, 245(1) last subparagraph. Amendment 32 ARTICLE 1, POINT 59 Article 134 a (Regulation (EC, Euratom) No 2342/2002) 1.  The institutions, executive agencies, authorities and bodies referred to in Articles 95(1) and (2) of the Financial Regulation shall transmit to the Commission information, in a structured template, on the third party concerned, the grounds and duration of the exclusion. They shall also transmit information concerning natural persons with powers of representation, decision making or control over given third party, who have found themselves in one of the situations referred to in Articles 93, 94 and 96(1)(b) and (2)(a). 1.  The institutions, executive agencies, authorities and bodies referred to in Articles 95(1) and (2) of the Financial Regulation shall transmit to the Commission information, in a structured template, on the third party concerned, the grounds and duration of the exclusion. They shall also transmit information concerning natural persons with powers of representation, decision making or control over given third party, who have found themselves in one of the situations referred to in Articles 93, 94 and 96(1)(b) and (2)(a). The Member States" authorities shall communicate information on exclusions pursuant Article 93(1)(a) of the Financial Regulation only for contracts falling under Directive 2004/18/EC. The authorities referred to in Article 95(2) of the Financial Regulation shall communicate the complete text of court decisions which have the force of res judicata in which defendants were found guilty of criminal activities within the meaning of Articles 93(1)(e) and 95 of the Financial Regulation. That communication shall be completed no later than three months following the entry into force of the decision. Article 9(7) of Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data1 shall apply. They shall certify to the Commission that the information was established and transmitted in accordance with the rules on the protection of personal data and that the third party concerned was informed about the transmission of the information. They shall update, where appropriate, the information transmitted. They shall certify to the Commission that the information was established and transmitted in accordance with the rules on the protection of personal data and that the third party concerned was informed about the transmission of the information. They shall update, where appropriate, the information transmitted. 2.  In compliance with the Community rules on the processing of personal data, the Commission shall, via a secured protocol and on a regular basis, provide validated data contained in the database to persons designated in the institutions, executive agencies, authorities and bodies referred to in paragraph 1. 2.  In compliance with the Community rules on the processing of personal data, the Commission shall, via a secured protocol, provide validated data contained in the database to persons designated in the institutions, executive agencies, authorities and bodies referred to in paragraph 1 on a monthly basis. 3.  Entry of third parties into the database and their removal pursuant Article 95(1) of the Financial Regulation shall be made upon written request by the authorising officer responsible addressed to the accounting officer of the Commission. The authorising officer responsible for requesting entry of third parties into the database and their removal as well as the procedure shall be defined in the administrative rules of the institution concerned, executive agency, or body referred to in Article 185 of the Financial Regulation. 3.  Entry of third parties into the database and their removal pursuant Article 95(1) of the Financial Regulation shall be made upon written request by the authorising officer responsible addressed to the accounting officer of the Commission. The authorising officer responsible for requesting entry of third parties into the database and their removal as well as the procedure shall be defined in the administrative rules of the institution concerned, executive agency, or body referred to in Article 185 of the Financial Regulation. 4.  Upon receipt of a communication transmitted pursuant Article 95(2) first subparagraph of the Financial Regulation, the Commission authorising officer responsible for the programme or action concerned shall, after verifying that the third party is clearly identified and that the grounds and duration of the exclusion are indicated, forward it to the accounting officer of the Commission for entry into the database. 4.  Upon receipt of a communication transmitted pursuant Article 95(2) first subparagraph of the Financial Regulation, the Commission authorising officer responsible for the programme or action concerned shall take note of the decision, verifying that the third party is clearly identified and whether grounds and duration of exclusion are indicated, and forward it to the accounting officer of the Commission for entry into the database. Where information on the duration of the exclusion is not transmitted, the authorising officer shall establish it in accordance with Article 133a. Any party entered into the database, has the right to inspect all and any data stored and all communications concerning itself upon request to the accounting officer, if such party can establish a prima facie legitimate interest. OJ L 8, 12.1.2001, p. 1. Amendment 33 ARTICLE 1, POINT 59 A (new) Article 135, paragraph 6, subparagraph 2 (Regulation (EC, Euratom) No 2342/2002) (59a) In Article 135(6), the second subparagraph is replaced by the following: "Where the contracting authority decides not to require proof of the financial, economic, technical and professional capacity of candidates or tenderers, the authorising officer, based upon his analysis of risk, may decide to withhold pre-financing unless a financial guarantee of an equivalent amount is provided or proof of financial, economic, technical and professional capacity is being subsequently presented." Amendment 34 ARTICLE 1, POINT 63 Article 149, paragraph 3, point (b), subparagraph 2 (Regulation (EC, Euratom) No 2342/2002) In each case, the contracting authority shall indicate the reasons why the tender or application has not been accepted and the available legal remedies. In each case, the contracting authority shall indicate the reasons why the tender or application has not been accepted setting out the applicable legal provisions and the detailed reasoning for the decision and the available legal remedies. Amendment 36 ARTICLE 1, POINT 64 A (new) Article 152 (Regulation (EC, Euratom) No 2342/2002) (64a) Article 152 is replaced by the following: "A guarantee shall be required in return for the payment of pre-financing exceeding EUR 150 000 or in the case referred to in Article 135(6), second subparagraph. However, where the contractor is a public body, the authorising officer responsible shall in general, depending on his risk assessment, waive that obligation." Amendment 37 ARTICLE 1, POINT 64 B (new) Article 153, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (64b) Article 153(1) is replaced by the following: "1. Contracts shall be suspended under Article 103 of the Financial Regulation in order to verify whether presumed substantial errors or irregularities or fraud have actually occurred. If they are not confirmed, performance of the contract shall resume as soon as possible. Where the term of suspension exceeds six weeks, the creditor shall be informed in writing of the reasons for the delay and of the provisional date for a decision." Amendment 38 ARTICLE 1, POINT 68 Article 160c, title and paragraph 2 a (new) (Regulation (EC, Euratom) No 2342/2002) Article 160c Specific rules (Article 108(3) of the Financial Regulation) Article 160c Specific rules (Article 108(2), (3) of the Financial Regulation) 2a. Expenditure incurred under Article 108(2)(a) means expenditure on the former members of the European Parliament and their association. Amendment 39 ARTICLE 1, POINT 70, POINT (A), POINT (IV A) (new) Article 164, paragraph 1, point (i) (Regulation (EC, Euratom) No 2342/2002) (iva)  Point (i) is replaced by the following: "(i) the responsibilities of the beneficiary, in particular in terms of sound financial management and submission of activity and financial reports; whenever possible, intermediate targets shall be agreed upon for the submission of the reports;" Amendment 40 ARTICLE 1, POINT 70, POINT (A), POINT IV B (new) Article 164, paragraph 1, point (j a) (new) (Regulation (EC, Euratom) No 2342/2002) (ivb)  The following point is added: "(ja) provisions governing the public display of references to EU support, unless public display is expressly undesired." Amendment 41 ARTICLE 1, POINT 70, POINT (B A) (new) Article 164, paragraph 3 (Regulation (EC, Euratom) No 2342/2002) (ba)  Paragraph 3 is replaced by the following: "3. Grant agreements may be amended only by written additional agreements. Such additional agreements shall not have the purpose or the effect of making such changes to agreements as would call into question the grant award decision or be contrary to the equal treatment of the parties. Amendments to grant agreements may be made, if circumstances have changed, and the change of circumstances was not foreseen or foreseeable by either party and the unchanged performance of the agreement would lead to unreasonable consequences for any one or several of the parties or otherwise frustrate the contract." Amendment 42 ARTICLE 1, POINT 70, POINT (B B) (new) Article 164, paragraph 3 a (new) (Regulation (EC, Euratom) No 2342/2002) (bb)  The following paragraph is inserted: "3a. These provisions apply mutatis mutandis to grant decisions." Amendment 43 ARTICLE 1, POINT 71 A (new) Article 165, paragraph 3 (Regulation (EC, Euratom) No 2342/2002) (71a) Article 165(3) is replaced by the following: "3. In the case of operating grants to bodies which pursue an aim of general European interest, the Commission shall be entitled to recover the percentage of the annual profit corresponding to the Community contribution to the operating budget of the bodies concerned where these bodies are also funded by public authorities which are themselves mandatorily required to recover the percentage of the annual profit corresponding to their contribution, or which actually recover part of or all of the percentage of the annual profit corresponding to their contribution. For the purpose of calculating the amount to be recovered, the percentage corresponding to the contributions in kind to the operating budget shall not be taken into account. In any case, where a profit is established and contributions have been made by other public bodies than the beneficiary and the Community (third contributors), recovery by the Commission shall only extend to such percentage of the surplus as represents the Commission's share in the initial contribution." Amendment 44 ARTICLE 1, POINT 74, POINT (B) Article 167, paragraph 2 (Regulation (EC, Euratom) No 2342/2002) 2.  Calls for proposals shall be published on the Internet site of the European institutions and possibly by any other appropriate means, including the Official Journal of the European Union, in order to provide maximum publicity among potential beneficiaries. Any modification of the content of the calls for proposals is also subject to publication under the same conditions. 2.  Calls for proposals shall be published on the Internet site of the European institutions and possibly by any other appropriate means, including the Official Journal of the European Union, in order to provide maximum publicity among potential beneficiaries. They may already be published in the year preceding the year in which the action shall be implemented, subject to the availability of appropriations in the following year. Any modification of the content of the calls for proposals is also subject to publication under the same conditions. Joint standards shall be laid down by the authorising officers for the preparation of handbooks used inter alia to lay down further detailed provisions for the implementation of the grant. Such handbooks shall only be modified, if the call for proposals is being modified. Amendment 45 ARTICLE 1, POINT 75, POINT (B A) (new) Article 168, paragraph 1, point (f a) (new) (Regulation (EC, Euratom) No 2342/2002) (ba)  The following point is added: "(fa) For expenditure on cooperation with the media (print and or electronic media, including radio, video and Internet contents and display) within the meaning of Article 108(4) of the Financial Regulation." Amendment 46 ARTICLE 1, POINT 76 Article 169 (Regulation (EC, Euratom) No 2342/2002) Article 169 is amended as follows: Article 169 is replaced by the following: (a)  In paragraph 2, point (c) is replaced by the following: "Article 169 Ex post publication of directly and indirectly administered funds "(c) the amount awarded and, save in the case of a lump sum or flat-rate financing as referred to in Article 108a (1)(b) and (c) of the Financial Regulation, the rate of funding of the costs of the action or approved work programme." (Articles 53, 54, 30(3) and 110(2) of the Financial Regulation) (b)  The following paragraph 3 is added: 1.  All grants, including refunds (for the purpose of this article hereinafter referred to as grants) awarded in the course of a financial year shall be published on the Internet site of the Community institutions during the first half of the year following the closure of the budget year in respect of which they were awarded. "3. Following the publication pursuant to paragraph 2, when requested by the budgetary authority, the Commission shall forward to the latter a report on: The information may also be published by any other appropriate medium, including the Official Journal of the European Union. (a) the number of applicants in the past year; (b) the number and percentage of successful applications per call for proposals; (c) the mean duration of the procedure from date of closure of the call for proposals to the award of a grant." The Commission's accounting officer shall determine joint standards for the hardcopy and/or electronic publication of the data pursuant to paragraph 2 (beneficiary publication standards). These standards shall particularly provide for clear, comprehensible and easily locatable data. The use of interactive data-bases and graphic illustrations shall be encouraged in particular where comparisons between various sets of data can be drawn. The standards shall also comprise standards for the electronic transmission of data. In general, these standards shall be reviewed simultaneously with the review of Financial Regulation (Article 184 of the Financial Regulation). 1a. In cases where management is delegated to the bodies referred to in Article 54 of the Financial Regulation, reference shall be made at least to the address of the website where this information can be found if it is not published directly on the Internet site of the Community institutions. The bodies referred to in Article 54 shall apply the beneficiary publication standards. 2.  Where the budget is implemented in the sense of paragraphs 1 and 1a, except in the case of scholarships paid to natural persons, the following shall be published with the consent of the beneficiaries as set out below: (a) the name and address of the beneficiaries; (b) the subject of the grant; (c) the amount awarded and, save in the case of a lump sum or flat-rate financing as referred to in Article 108a (1)(b) and (c) of the Financial Regulation, the rate of funding of the costs of the action or approved work programme. The obligation laid down in the first subparagraph may be waived if according to the responsible authorising officer's judgement, on the balance of probabilities, there are substantiated reasons to assume that publication of the information may threaten the safety of the beneficiaries or substantially harm their business interests. The number of and reasons for waiver decisions shall be published on the same internet site as the beneficiary data stating the name of the authorising officer responsible for the waiver decision. Beneficiaries shall be advised in the calls for proposals of the legal basis and the extent of ex post publication. Attention shall be drawn to the fact that the subsequent application for a grant constitutes the beneficiary's consent to publication and that, where publication might be contrary to the beneficiary's interest, any objection not raised in the application for the grant shall be precluded. 3.  Following the publication pursuant to paragraph 2, when requested by the budgetary authority, the Commission shall forward to the latter a report on: (a) the number of applicants in the past year; (b) the number and percentage of successful applications per call for proposals; (c) the mean duration of the procedure from date of closure of the call for proposals to the award of a grant; (d) the average duration from date of final report to final assessment and final payment (Article 119(1))." Amendment 47 ARTICLE 1, POINT 77 Article 169 a (new) (proposed Article 169a to become Article 169b) (Regulation (EC, Euratom) No 2342/2002) Article 169a Ex post publication of funds administered by third countries or jointly administered (Articles 53 and 53c of the Financial Regulation) 1.  In cases where management is delegated to third countries referred to in Article 53c of the Financial Regulation, in particular in cases of budgetary aid / support, as well as in cases where the budget is implemented by joint management (Article 53d of the Financial Regulation), reference shall be made at least to the address of the website where this information can be found if it is not published directly on the Internet site of the Community institutions. In any case, publication shall be carried out applying the beneficiary publication standards. Where publication is made directly on the Community institution's Internet site, it is the other party's responsibility to deliver in due time the requisite beneficiaries' data. In any other case, the other party transmits this data upon demand made by Commission 2.  Where the budget is implemented in the sense of paragraph 1, the following shall be published with the consent of the beneficiaries as set out below: (a) the name of the beneficiaries and their domicile; (b) the subject of the grant; (c) the amount awarded and the rate of funding of the costs of the action or approved work programme. The obligation laid down in the first subparagraph may be waived if according to the responsible authorising officer's judgement, on the balance of probabilities, there are substantiated reasons to assume that publication of the information may threaten the safety of the beneficiary The number of and reasons for waiver decisions shall be published on the same internet site as the beneficiary data stating the name of the authorising officer responsible for the waiver decision. Beneficiaries shall be advised in the calls for proposals of the legal basis and the extent of ex post publication. Attention shall be drawn to the fact that the subsequent application for a grant constitutes the beneficiary's consent to publication and that, where publication might be contrary to the beneficiary's interest, any objection not raised in the application for the grant shall be precluded. 3.  Article 169(3) shall apply accordingly. Amendment 48 ARTICLE 1, POINT 77 A (new) Article 169 c (new) (Regulation (EC, Euratom) No 2342/2002) (77a) The following article is inserted: "Article 169c One-face-to-the-customer approach (Article 110 of the Financial Regulation) The Commission shall provide a joint front-desk service for accepting applications and providing advice and assistance to applicants. Where possible and appropriate, applicants who submit various different applications should be dealt with by one department (lead department)." Amendment 49 ARTICLE 1, POINT 80 A (new) Article 172 c (new) (Regulation (EC, Euratom) No 2342/2002) (80a) The following article is inserted: "Article 172c Principle of degression (Article 113(2) of the Financial Regulation) Where operating grants are reduced, this reduction shall take place in a proportionate and equitable manner." Amendment 50 ARTICLE 1, POINT 80 B (new) Article 173, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (80b) Article 173(1) is replaced by the following: "1. Applications shall be made on the form (Article 169c(a)) distributed by the authorising officers responsible and in accordance with the criteria laid down in the basic act and the call for proposals." Amendment 51 ARTICLE 1, POINT 88, POINT (-A) (new) Article 178, paragraph 1 (Regulation (EC, Euratom) No 2342/2002) (-a) Paragraph 1 is replaced by the following: "1. Notwithstanding the provisions of paragraph 2, the authorising officer responsible may, before the expiry of the final date within the meaning of Article 167 (d), appoint a committee to evaluate the proposals, save in the case of a Commission decision on a specific sectoral programme. The committee shall be made up of at least three persons representing at least two organisational entities of the Commission with no hierarchical link between them. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation. In the representations and local units referred to in Article 254 and the delegated bodies referred to in Article 160(1), if there are no separate entities, the requirement of organisational entities with no hierarchical link between them shall not apply. Outside experts may assist the committee by decision of the authorising officer responsible." Amendment 52 ARTICLE 1, POINT 88, POINT (A) Article 178, paragraph 1a (Regulation (EC, Euratom) No 2342/2002) 1a. The authorising officer responsible shall, where appropriate, divide the process into several procedural stages. The rules governing the process are announced in the call for proposals. 1a. The authorising officer responsible shall, where appropriate, divide the process into several procedural stages. The rules governing the process are announced in the call for proposals. Where a call for proposals specifies a two-stage submission procedure, only those proposals that satisfy the evaluation criteria for the first stage shall be requested to submit a complete proposal in the second stage. Where a call for proposals specifies a two-step evaluation procedure, only those proposals that pass the first step, based on the evaluation of a limited set of criteria, shall go forward for further evaluation. Where a call for proposals specifies a two stage submission procedure, the authorising officer responsible may appoint the committee within the meaning of paragraph 1 before completion of the first stage. Where a call for proposals specifies a two-step evaluation procedure, only those proposals that pass the first step, based on the evaluation of a limited set of criteria, shall go forward for further evaluation. Where a call for proposals specifies a two-stage submission procedure, only those proposals that satisfy the evaluation criteria for the first stage shall be requested to submit a complete proposal in the second stage. The applicants whose proposals are rejected at any stage shall be informed in accordance with Article 116 (3) of the Financial Regulation. Each subsequent stage of the procedure must be clearly distinct from the previous one. The same documents and information shall not be required to be provided more than once during the same procedure. The applicants whose proposals are rejected at any stage shall upon completion of that stage be informed in accordance with Article 116 (3) of the Financial Regulation. Each subsequent stage of the procedure must be clearly distinct from the previous one. The same documents and information shall not be required to be provided more than once during the same procedure. Amendment 53 ARTICLE 1, POINT 91 A (new) Article 183, paragraph 2 (Regulation (EC, Euratom) No 2342/2002) (91a) Article 183(2) is replaced by the following: "2. Payments may also be suspended following presumed infringements of other clauses in the agreement. The purpose of such suspension shall be to give time to check, whether the presumed infringements have in fact occurred and, where appropriate, to rectify them. In this case, the authorising officer responsible shall immediately verify the existence or non-existence of the alleged infringement, and shall make a decision on further proceedings as soon as possible. Where the term of suspension exceeds six weeks, the creditor shall be informed in writing of the reasons for the delay and of the provisional date for a decision."