Tag Archives: Community financing

Recovery of claims relating to taxes, duties and other measures

Outline of the Community (European Union) legislation about Recovery of claims relating to taxes, duties and other measures

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Taxation

Recovery of claims relating to taxes, duties and other measures

Document or Iniciative

Council Directive 2010/24/EU of 16 March 2010 concerning mutual assistance for the recovery of claims relating to taxes, duties and other measures.

Summary

This directive applies to claims relating to:

all taxes and duties levied by or on behalf of any European Union (EU) country or on behalf of the EU as a whole;
refunds, interventions and other measures which contribute to the total or partial financing of the European Agricultural Guarantee Fund (EAGF) and the European Agricultural Fund for Rural Development (EAFRD);
levies and other duties on the sugar sector market.

EU countries must notify the Commission of its competent national authority or authorities by 20 May 2010. The Commission will then publish a list of all competent national authorities in the Official Journal. Each competent authority must designate a central liaison office which will be responsible for contacts with other EU countries in this field.

Request for information

A competent authority is obliged to provide another competent authority with any information relevant to that applicant authority in the recovery of its claims, except if:

the requested authority would not be able to obtain such information for the recovery of similar claims occurring in its own country;
the information would disclose any commercial, industrial or professional secrets;
the disclosure of the information would put at risk the security or contravene the public policy of the requested EU country.

Request for notification of documents

When requested for notification of documents relating to claims, the requested authority must notify to the addressee all documents which emanate from the applicant EU country relating to a claim or to its recovery.

The request for notification must include relevant information, such as the name and address of the addressee, the purpose of the notification, a description of the nature and amount of the claim, and the contact details of the offices responsible for the documents and for obtaining further information.

Recovery procedures

Any available appropriate recovery procedures must be applied before the applicant authority makes a request for recovery, except where:

it is evident that there are insufficient or no assets for recovery in the applicant EU country but that the person concerned has the necessary assets in the requested EU country;
it would result in disproportionate difficulty.

Any request for recovery must be accompanied by a uniform instrument permitting enforcement in the requested EU country.

The requested competent authority will employ the powers and procedures provided under the laws, regulations or administrative provisions of the requested EU country regarding claims on the same or similar tax or duty. If the requested authority does not consider that the same or similar taxes or duties are applicable in the requested EU country, it shall instead apply the rules relating to tax levied on personal income.

Disputes

Disputes relating to the claim, the initial or uniform instrument permitting enforcement, and the validity of a notification by the applicant authority are the responsibility of the competent authorities of the applicant EU country. Disputes relating to the validity of a notification made by a competent authority of the requested EU country will be brought before the competent authority of that EU country.

The applicant authority may make a request for recovery of a contested claim. If the contestation is successful, the applicant authority will be responsible for the reimbursement of the amount recovered, in addition to any compensation due.

Amendment or withdrawal of the request for recovery assistance

The applicant authority must immediately notify the requested authority of any amendment to or withdrawal of its request for recovery, detailing the reasons for amendment or withdrawal.

Request for precautionary measures

Where the claim or the instrument permitting enforcement in the applicant EU country is contested at the time when the request is made, the requested authority will take precautionary measures, in accordance with its national law, to ensure recovery when requested to do so by the applicant authority.

Limits to the requested authority’s obligations

The requested authority is not obliged to grant the recovery assistance if:

recovery of the claim would result in serious economic or social difficulties in the requested EU country;
the initial request for assistance relates to claims more than 5 years old;
the total sum of the claims is less than EUR 1 5000.

General provisions

Any information and documents disclosed under this directive will be covered by the obligation of official secrecy and will therefore be protected under the appropriate national law of the EU country which received it.

This directive repeals Directive 2008/55/EC from 1 January 2012. References to the repealed directive will be understood as references to this directive.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Council Directive 2010/24/EU	20.4.2010	31.12.2011	OJ L84 of 31.3.2010

Community system for the identification of certain beneficiaries of transactions financed by the EAGGF Guarantee Section

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Community system for the identification of certain beneficiaries of transactions financed by the EAGGF Guarantee Section

Outline of the Community (European Union) legislation about Community system for the identification of certain beneficiaries of transactions financed by the EAGGF Guarantee Section

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Agriculture > General framework

Community system for the identification of certain beneficiaries of transactions financed by the EAGGF Guarantee Section

Document or Iniciative

Council Regulation (EC) No 1469/95 of 22 June 1995 on measures to be taken with regard to certain beneficiaries of operations financed by the Guarantee Section of the EAGGF [Official Journal L 145, 29.06.1995].

Summary

In this Regulation, the Council establishes a Community system for the purpose of identifying and making known to all the competent authorities of the Member States and the Commission operators presenting a risk of non-reliability. It covers tendering procedures, export refunds and sales at reduced prices of intervention products, financed by the Guarantee Section of the EAGGF.

Identification procedures

The identification procedures and rules relating to notification are to be implemented on the initiative of the Member State in which the risk of the operator’s non-reliability is identified. Where a Member State fails to fulfil this obligation, the Commission must ensure that it implements this identification and notification system.

Member States may take measures to deal with operators, in particular:

reinforced checking of all operations performed by the operator;
suspension, until the administrative determination of the existence of an irregularity, of payment of amounts relating to current operations to be determined, and, where appropriate, of release of the security relating thereto;
their exclusion for a period of time from operations to be determined.

These measures must comply with the following principles, in accordance with the national law of the Member State:

a prior hearing and right of appeal by the operator concerned;
proportionality between the irregularity committed or suspected and the measures to be applied;
non-discrimination between operators.

Member States and the Commission must take all necessary precautions to ensure that the information which they exchange pursuant to this Regulation are kept confidential.

This Regulation is supplementary to the specific provisions under the CAP.

Key terms used in the act
Operators presenting a risk of non-reliability: operators who, according to a final decision of an administrative or judicial authority, have deliberately or through serious negligence committed an irregularity in respect of relevant Community provisions and have unjustly benefited from a financial advantage or attempted to benefit therefrom. They have therefore been the subject, in this respect, of a preliminary administrative or judicial report by the competent authorities of the Member State.

Key terms used in the act

Operators presenting a risk of non-reliability: operators who, according to a final decision of an administrative or judicial authority, have deliberately or through serious negligence committed an irregularity in respect of relevant Community provisions and have unjustly benefited from a financial advantage or attempted to benefit therefrom. They have therefore been the subject, in this respect, of a preliminary administrative or judicial report by the competent authorities of the Member State.

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1469/95	06.07.95	–	Official Journal L 145 of 29.06.1995

Related Acts

Commission Regulation (EC) No 745/96 of 24 April 1996 laying down detailed rules for the application of Council Regulation (EC) No 1469/95 on measures to be taken with regard to certain beneficiaries of operations financed by the Guarantee Section of the EAGGF [Official Journal L 102 of 25.04.1996]

Cohesion and transport

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Cohesion and transport

Outline of the Community (European Union) legislation about Cohesion and transport

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Transport > Bodies and objectives

Cohesion and transport

Document or Iniciative

Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions of 14 January 1999: “Cohesion and Transport” [COM (1998) 806 final- Not published in the Official Journal].

Summary

Transport policy plays a major role in strengthening the economic and social cohesion of the European Union. Firstly, it helps reduce regional disparities, particularly by improving access to island and peripheral regions. It also has a beneficial effect on employment, by encouraging investment in transport infrastructure and assisting workers’ mobility.

The European Regional Development Fund (ERDF) and the Cohesion Fund have done much to help finance transport infrastructure, notably in regions where development is lagging behind (the so-called ‘Objective 1’ regions) and the most remote regions. For the period 1994-99, the ERDF has earmarked EUR 13.7 billion for the Objective 1 regions, of which 70% for roads and motorways and 16% for railways. Moreover, one half of the Cohesion Fund’s resources are given over to transport infrastructure, and in particular the trans-European networks (TENs). The European Investment Bank (EIB), whose activity is geared towards regional development, also helps through loans to fund transport infrastructure.

Transport is a key element in the European Spatial Development Perspective (ESDP), which is developing an integrated and common approach to spatial planning at European level. To ensure coherent development of the European territory, it seems essential to improve access to infrastructure by removing technical obstacles linked to the national transport systems and supporting the development of the weakest regions.

Development of the TENs is contributing to economic and social cohesion. The requirements of the peripheral regions have been taken into account in this development, and the emphasis placed on airports on islands and in remote areas. The next step is to enhance the role of ports so as to assist the integration of shipping into a global network. It is also necessary, in the peripheral regions, to undertake complementary investment in secondary networks, in order that those regions may gain maximum benefit from the TENs.

Public transport, both local and regional, helps in many ways to combat social exclusion. For one thing, it is a prerequisite for the functioning of the labour market and for economic development. It reduces the isolation of outlying residential districts and rural areas. In addition, it contributes towards a better quality of life, particularly in terms of the environment (air quality, reduced noise pollution).

However, since the liberalisation of transport services could result in the under-provision of services in sparsely populated or remote regions, which would be detrimental to cohesion, care must be taken to see that transport services are maintained, notably by means of public service contracts.

Other aspects of transport policy are also being studied with an eye to economic and social cohesion. These are:

charging schemes, which should include marginal social costs such as environmental impact and the cost of congestion;
intermodal transport, which should be developed with due regard to inland and sea ports;
the method of financing, with increased involvement of the private sector.

Integration of the environment into the formulation of other Union policies has become essential. This is particularly true for transport, which is a major polluter. 25% of carbon dioxide emissions in the EU come from transport. In the interests of sustainable development, it would therefore appear necessary to make the best possible use of existing capacity and to encourage alternatives to road transport.

With a view to the Union’s enlargement, the trans-European network needs to develop beyond Community territory. At the third pan-European transport conference in Helsinki, ten priority transport corridors were selected to link East with West. In addition, the pre-accession structural instrument (ISPA) is concentrating resources on infrastructure projects, notably in the field of transport.

In view of all the above, the way forward over the next few years is as follows:

it will be important firstly to maximise the effectiveness of the Community’s contribution so as to enhance competitiveness and create jobs. To this end, projects financed through the Structural Funds will be selected according to their impact on growth, competitiveness, the environment and the creation of permanent jobs. In addition, investment will be encouraged in rail and maritime transport, and in combined and public transport. Private finance will be encouraged, and coordination tightened between the Community’s budgetary instruments;
the TENs will then have to be implemented, with particular emphasis on peripheral regions, but also on the applicant countries, whose successful integration will depend on the development and modernisation of their transport networks;
lastly, emphasis will be placed on the promotion of accessible, environment-friendly transport services. This will be possible through, inter alia, the recognition and organisation of public transport.

The Marco Polo II programme

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The Marco Polo II programme

Outline of the Community (European Union) legislation about The Marco Polo II programme

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Environment > Tackling climate change

The Marco Polo II programme

Document or Iniciative

Regulation (EC) No 1692/2006 of the European Parliament and of the Council of 24 October 2006 establishing the second Marco Polo programme for the granting of Community financial assistance to improve the environmental performance of the freight transport system (Marco Polo II) and repealing Regulation (EC) No 1382/2003 [See amending act].

Summary

The Marco Polo II programme pursues the same objectives as the first Marco Polo programme. It is designed to reduce congestion and improve the environmental performance of the intermodal transport system, thereby contributing to an efficient and sustainable transport system which provides European Union (EU) added value without having a negative impact on economic, social or territorial cohesion. However, Marco Polo II includes some new features.

The Marco Polo II programme provides for wider geographical coverage. It covers actions involving the territory of at least two EU countries or the territory of at least one EU country and the territory of a close non-EU country.

The following actions are eligible:

catalyst actions: actions aimed at overcoming significant structural barriers in the EU freight transport market which impede the efficient functioning of the markets, the competitiveness of short sea shipping, rail or inland waterway transport, and/or the efficiency of transport chains which make use of these modes. They are aimed at improving synergies in the rail, inland waterway and short sea shipping sectors, including motorways of the sea, by making better use of existing infrastructure;
modal shift actions: actions aimed at shifting freight from road to short sea shipping, rail, inland waterways or a combination of modes of transport. The objective is to keep road journeys as short as possible;
common learning actions: actions aimed at improving cooperation for structurally optimising working methods and procedures in the freight transport chain, taking the requirements of logistics into account;
motorways of the sea: an idea introduced by the 2001 White Paper on European transport policy. Motorways of the sea are aimed at directly shifting a proportion of freight from road to short sea shipping or a combination of short sea shipping and other modes of transport in which road journeys are as short as possible. For example, motorways of the sea could be established between France and Spain to eliminate the road traffic bottleneck in the Pyrenees;
traffic avoidance actions: any innovative action aimed at integrating transport into the production logistics of businesses to avoid a large percentage of freight transport by road without adversely affecting production output or workforce capability.

The Commission is also examining the possibility of supporting the creation or modification of ancillary infrastructure which is required and appropriate for the successful completion of projects.

Actions must be submitted by undertakings or consortia established in EU countries or participating countries, which includes candidate countries for EU accession and EFTA, EEA and close non-EU countries subject to certain conditions. Undertakings established outside of the participating countries above may be associated with a project, but may not receive EU funding under the programme. Aid for the launch of actions must be transparent, objective and clearly delimited. EU financial assistance is based on the number of tonne-kilometres transferred from the road to other means of sea or land transport or the number of vehicle-kilometres of road freight avoided. The objective is to reward high-quality projects. Distortions of competition must be avoided in the selection procedure.

The programme pays special attention to sensitive and metropolitan areas. The Commission evaluates the actions submitted, taking account of their contribution to reducing road congestion, but also their relative environmental merits and their overall sustainability.

The EU financial assistance for the various actions is limited to a maximum of 35 % of the total expenditure necessary to achieve the objectives of the action and incurred as a result of it. In the case of common learning actions, the ceiling is 50 %. The Marco Polo II programme has a wider scope than its predecessor and a larger budget of EUR 400 million.

The Commission must present an evaluation report on the results of the Marco Polo I programme for the period 2003 to 2006 by 30 June 2007.

Background

The Marco Polo II programme, which covers the period 2007 to 2013, is an extended version of the initial programme set up in 2003, which was oversubscribed and inadequately funded: in the four selection procedures for the first Marco Polo programme the Commission received proposals covering a level of assistance of EUR 468 million but only had a budget of EUR 100 million.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 1692/2006	14.12.2006	–	OJ L 328, 24.11.2006

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 923/2009	10.10.2009	–	OJ L 266, 9.10.2009

Successive amendments and corrections to Regulation (EC) No 1692/2006 have been incorporated in the basic text. This consolidated versionis for reference purposes only.

Community financial aid to trans-European networks

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Community financial aid to trans-European networks

Outline of the Community (European Union) legislation about Community financial aid to trans-European networks

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These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Regional policy > Management of regional policy > Trans-european networks

Community financial aid to trans-European networks

Document or Iniciative

Regulation (EC) No 67/2010 of the European Parliament and of the Council of 30 November 2009 laying down general rules for the granting of Community financial aid in the field of trans-European networks.

Summary

This regulation establishes the conditions and procedures for granting Community aid to projects of common interest in the field of trans-European networks for infrastructures in the fields of telecommunications, transport and energy.

Community aid may only be granted to projects of common interest. Parts of projects are also eligible when they form units which are technically and financially independent.

Community aid for projects can take one or more of the following forms:

co-financing of studies related to projects – except in exceptional cases, the Community contribution may not exceed 50% of the total cost of a study;
subsidies of the interest on loans granted by the European Investment Bank or other public or private financial bodies;
contributions towards premiums for loan guarantees from the European Investment Fund or other financial institutions;
direct grants to investments in duly justified cases;
risk-capital participation for investment funds with a focus on providing risk capital for trans-European network projects and involving substantial investment from the private-sector.

At least 55% of the funding for transport infrastructure projects should be allocated to railways (including combined transport) and a maximum of 25% to roads.

Conditions for financial aid

Community aid may be granted if the following conditions are fulfilled:

there is a financial obstacle to the achievement of a project;
the Community aid must not exceed the minimum necessary for the launch of a project;
except in exceptional circumstances, the total amount of Community aid must not exceed 10% of the total investment cost;
the Community aid must not, in principle, be granted to projects benefitting from other sources of Community funding.

The Commission may establish an indicative multiannual programme by sector to improve the efficiency of the European Union (EU). The programme will consist of projects of common interest in specific fields which require substantial funding over a long period of time. The programme must be reviewed, and if necessary revised, with regard to the effective progress of the projects.

Project selection criteria

Community aid is intended for projects that are potentially economically viable and for which the financial profitability at the time of application is deemed insufficient. The decision to grant Community assistance should also take account of:

the maturity of the project;
the stimulative effect on public and private finance;
the soundness of the financial package;
direct or indirect socio-economic effects, especially on employment;
the environmental consequences.

In particular in the case of cross-border projects, coordination between the various parts of the project must be taken into consideration.

Applications for financial aid

Applications for funding must be submitted to the Commission by the EU country concerned or, with the agreement of the EU country, by the body directly concerned. This regulation stipulates the information required for the assessment and identification of applications, including a provisional timetable and a description of control measures to be put in place by the EU country concerned over the use of the requested funds.

Reduction, suspension and cancellation of aid

The Commission may reduce, suspend or cancel aid for a project if, after examination, there is an irregularity or a failure to comply with one of the conditions, or a significant change in the nature of the project for which the Commission’s approval was not requested.

Except in exceptional circumstances, approved aid will be cancelled by the Commission if the project has not started within two years following the expected start date. The Commission may demand reimbursement of any aid paid if the project in question has not been completed within ten years.

Funding

The financial framework for the implementation of this regulation for the period 2000 to 2006 is EUR 4 874 880 000.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 67/2010	19.2.2010	–	OJ L 27 of 30.1.2010

Further implementation of the European satellite navigation programmes

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Further implementation of the European satellite navigation programmes

Outline of the Community (European Union) legislation about Further implementation of the European satellite navigation programmes

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Transport > Intelligent transport and navigation by satellite

Further implementation of the European satellite navigation programmes (EGNOS and Galileo)

Document or Iniciative

Regulation (EC) No 683/2008 of the European Parliament and of the Council of 9 July 2008 on the further implementation of the European satellite navigation programmes (EGNOS and Galileo) [See amending act(s)].

Summary

The EGNOS and Galileo programmes cover all the activities needed to define, develop, validate, construct, operate, renew and improve the two European satellite navigation systems, namely the EGNOS system and the system established under the Galileo programme.

EGNOS system

The EGNOS system monitors and improves the quality of signals from existing global navigation satellite systems (GNSS), whereas the Galileo programme established an independent GNSS infrastructure.

The operation of the EGNOS system will predominantly involve infrastructure management, maintenance, improvement and renewal of the system, marketing, and the certification and standardisation operations relating to the programme. The EU will contribute to the financing of the EGNOS system operation.

Galileo programme

The Galileo programme consists of four phases:

a definition phase which ended in 2001;
a development and validation phase which will end in 2010;
a deployment phase which runs from 2008 to 2013;
an exploitation phase which will begin by the conclusion of the deployment phase.

The development and validation phase will be funded by the EU and the European Space Agency (ESA). The EU will finance the deployment phase regardless of additional funding from EU countries, non-EU countries and international organisations.

Ownership of the systems

The EU will own all tangible and intangible assets created or developed under the programmes, to which effect agreements will be concluded with third parties, wherever appropriate, with regard to existing ownership rights.

Budgetary contribution and mechanisms

Within the programmes concerned by this regulation, the EU can allocate funding to:

activities relating to the completion of the development and validation phase of the Galileo programme;
activities relating to the deployment phase of the Galileo programme;
activities relating to the operation of EGNOS and actions preceding the exploitation phase of the programmes.

The budget for the implementation of the above-listed activities between 1 January 2007 and 31 December 2013 is EUR 3 405 million.

Public governance of the programmes

Public governance of the programmes is based on the principle of strict division of responsibilities between the EU (represented by the Commission), the European GNSS Agency and the ESA.

The Commission is responsible for:

the management of the programmes;
all questions regarding the security of the systems;
the management of the funds allocated to the programmes under this regulation.

The European GNSS Agency is responsible for the following tasks, in accordance with Commission guidelines:

ensure the security of the programmes;
contribute to the preparation of the commercialisation of the systems;
undertake other tasks given to it by the Commission relating to the programmes.

The EU’s public procurement rules will apply to the deployment phase of the Galileo programme, without prejudice to measures required to protect the essential interests of the security of the EU or public security or to comply with EU export control requirements.

The Commission shall conclude a multi-annual delegation agreement with the ESA relating to the delegated tasks and budget implementation of the Galileo programme. This delegation agreement will cover the general conditions for the management of the funds entrusted to ESA, in particular:

actions to be implemented;
relevant financing;
management procedures;
monitoring and inspection measures;
measures applicable in case of inadequate performance of contracts;
rules relating to ownership of tangible and intangible assets.

Mid-term review

In 2010, the Commission will, when appropriate, submit to the European Parliament and the Council, together with its mid-term review, a proposal concerning the public funds and commitments required for the financing programming period starting in 2014.

Attached to this regulation, a joint declaration by the European Parliament, the Council and the European Commission provides for the creation of a Galileo Interinstitutional Panel (GIP) which will be responsible for facilitating the EU institutions exercising its respective responsibility. The GIP, which will be composed of three representatives from the Council, three from the European Parliament, and one from the Commission, will meet on a regular basis.

This regulation repeals Regulation (EC) No 876/2002 of 24 May 2002 setting up the Galileo Joint Undertaking.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 683/2008	25.7.2008	–	OJ L 196 of 24.7.2008

Amending act(s)	Entry into force	Deadline for transposition in the Member States	Official Journal
Regulation (EU) No 912/2010	9.11.2010	–	OJ L276 of 20.10.2010

Successive amendments and corrections to Regulation (EC) No 683/2008 have been incorporated into the basic text. This consolidated versionis for reference only.

Related Acts

Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions – Action Plan on Global Navigation Satellite System (GNSS) Applications [COM/2010/0308 final – not published in the Official Journal].

Commission Decision 2009/846/EC of 20 October 2009 on the conclusion of an administrative Agreement between the European Commission and the European GNSS Supervisory Authority on the security and exchange of classified information [Official Journal L 306 of 20.11.2009].

Report from the Commission to the European Parliament and the Council on the implementation of the GNSS programmes and on future challenges pursuant to Article 22 of Regulation (EC) No 683/2008 [COM/2009/0302 final – not published in the Official Journal].

Commission Decision 2009/334/EC of 20 April 2009 establishing an expert group on the security of the European GNSS systems [Official Journal L 101 of 21.4.2009].

More effective and more accessible grants for research

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More effective and more accessible grants for research

Outline of the Community (European Union) legislation about More effective and more accessible grants for research

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Research and innovation > General framework

More effective and more accessible grants for research

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 29 April 2010 – Simplifying the implementation of the research framework programmes [COM(2010) 187 final – Not published in the Official Journal].

Summary

The Communication from the Commission aims at simplifying the rules and procedures applying to the award and management of European Union (EU) grants in the field of research and innovation. The Communication is divided into three main strands.

Strand No 1 – Rationalising the management of proposals and grants within the current regulatory and legal framework (short term)

The aim of the first strand is to improve the current system of proposal and grant management, and to make it less burdensome, simpler and quicker. Most improvements aim at a reduction of time-to-grant and time-to-pay. They mainly consist of:

better IT systems (which should enable participants to access documents related to their proposals or grants);
more coherent application of rules, in particular those relating to audit;
an improvement of the structure and content of “calls for proposals” through which research organisations request funding from the Union;
forming smaller consortia; and
awarding prizes which have a positive impact on research and innovation.

Strand No 2 – Adapting the rules under the current cost-based system

The second strand consists of adapting the existing financial rules whilst maintaining effective control. The new system should allow for wider acceptance of usual accounting practices (including average personnel costs). This adaptation should also lead to a reduction in differences in the specific conditions that apply to many activities (research, demonstration, and management) and types of participants (research organisations, universities, non-profit organisations, etc.). Lump sum options for certain cost categories will allow for actual costs, a source of complexity, to be fully abandoned. Such lump sums are already widely used under the “People” programme. They can now be introduced for all projects, particularly for personnel costs or owner-managers of SMEs who carry out a major part of the project themselves without a salary registered in the accounts. Furthermore, an amendment of the grant selection progress will contribute to reducing time-to-grant and to a removal of administrative burden both for Member States and Commission services.

Strand No 3 – Moving towards result-based instead of cost-based funding

The options presented in the two strands above will not remove the administrative efforts connected with cost reporting and financial auditing. However, the gradual introduction of “result-based remuneration” will minimise the administrative burden for accounting and the needs for financial ex-ante and ex-post checks. This amendment will apply to future research framework programmes. Beneficiaries of EU grants will receive lump sumps to carry out specific scientific tasks. They will have to demonstrate that they have acted in an efficient and effective manner instead of justifying their expenditure.

Perspectives

Most options proposed under the second and third strands require changes to the rules. They will therefore be addressed in the triennial review of the Financial Regulation and, on that basis, in the forthcoming review of the regulatory framework of research policy.

However, the Commission may present amendments to the Seventh Framework Programme (FP7), following its interim evaluation, expected in October 2010.

Context

FP7 has provoked considerable interest in the research community – so far, more than 30,000 proposals have been received each year and around 7,000 projects funded. Almost all European universities have participated in the programme.

Several measures have already been taken to simplify procedures, both in the preparation of FP7 and during its operation. Amongst these measures is a new guarantee fund and a single registration system which allows organisations requesting funding for a number of projects over several years to communicate their data only once. In addition, eight participants in FP7 out of 10 are now exempt from ex-ante financial capacity checking.

Two new executive agencies were put in place by the Commission in 2007:

the Research Executive Agency, and
the European Research Council Executive Agency.

The European Research Council is an essential part of FP7. It awards grants to projects led by researchers (both new and experienced project leaders), without these projects needing to be included in cross-border consortia.

This summary is for information only. It is not designed to interpret or replace the reference document, which remains the only binding legal text.

Strengthening the Schengen area

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Strengthening the Schengen area

Outline of the Community (European Union) legislation about Strengthening the Schengen area

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Justice freedom and security > Free movement of persons asylum and immigration

Strengthening the Schengen area

Document or Iniciative

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 16 September 2011 — Schengen governance — strengthening the area without internal border control [COM(2011) 561 final – Not published in the Official Journal].

Summary

The revolutions which took place in the southern Mediterranean in the spring of 2011 led to a significant influx of immigrants into some European Union (EU) Member States. These events highlighted the need to make the Schengen area (the EU territory in which the free movement of persons is exercised) better able to react to exceptional situations.

It is clear that the external borders of Europe must be managed in an efficient and consistent manner, on the basis of joint responsibility, solidarity and greater practical cooperation.

Strengthening the management of the Schengen area

Some measures already exist to help Member States facing critical situations and to enable them to fulfil their commitments. In particular, they can obtain financial and practical support through EU funds and can address the European Asylum Support Office or the Frontex Agency which can deploy Rapid Border Intervention Teams to external borders.

Furthermore, the Commission has proposed to strengthen the Schengen evaluation mechanism. This mechanism will monitor EU countries to ensure that they apply the Schengen area rules correctly. According to the new proposed approach, monitoring will be carried out at European level through inspections conducted by Commission and Member State teams. These inspections will result in a report containing the measures to be taken by the country concerned. A follow-up procedure will be put in place to ensure that the recommendations are implemented.

Furthermore, the Commission will present a biannual overview on the functioning of the Schengen area. This overview will provide the basis for a strengthening of cooperation in the Schengen area and will increase mutual trust between Member States, which are jointly responsible for ensuring that all the Schengen rules are actually applied.

Specific support measures are proposed for cases where the evaluation of a Member State reveals serious shortcomings with regard to controls at external borders or the procedure for returning migrants to their country of origin. If the shortcomings are not dealt with, and as a last resort, a European mechanism is proposed which aims to temporarily re-introduce internal border controls.

Putting in place a European mechanism in exceptional circumstances

The Schengen Borders Code already provides the option for a Member State to re-introduce controls at its internal borders where there is a serious threat to public policy or internal security. However, this only relates to a decision taken at national level.

However, the human and economic consequences of such a decision, which affects all the people living in the Schengen area, are not limited to the Member State concerned. In order for the interests of the whole of the Union to be taken into account, the Commission proposes to establish a European mechanism which would enable the decision to be taken by the EU rather than unilaterally by one Member State.

The decision to re-introduce the internal border controls of a Member State will be taken by the Commission for renewable periods of 30 days and, in principle, for a maximum duration of 6 months. It must be a measure of last resort where all other measures have been ineffective. The decision will be taken only when a Member State is confronted by a serious threat to public policy or internal security. It may also concern:

a short-term and largely localised situation (for example, major sporting events, high-profile political meetings or terrorist attacks);
a situation with wider and longer-term implications, particularly in the case of serious border failure of a Member State at its external borders.

However, in emergencies, EU countries will retain the option to unilaterally re-introduce controls at their internal borders for a limited period of 5 days.

However, in the case of controls being re-introduced, the country or countries concerned must guarantee European citizens or third-country nationals residing legally in the Schengen area the right to move and live freely on EU territory. The latter may therefore still enter the territory of another Member State simply by presenting their passport, identity card or travel document.

RELATED ACTS

Proposal for a Regulation of the European Parliament and of the Council of 16 September 2011 amending Regulation (EC) No 562/2006 in order to provide for common rules on the temporary reintroduction of border control at internal borders in exceptional circumstances [COM(2011) 560 final — Not published in the Official Journal].

Amended proposal for a Regulation of the European Parliament and of the Council of 16 September 2011 on the establishment of an evaluation and monitoring mechanism to verify the application of the Schengen acquis [COM(2011) 559 final — Not published in the Official Journal].

Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 4 May 2011 — Communication on migration [COM(2011) 248 final — Not published in the Official Journal].

Improving the financial measures relating to the common fisheries policy

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Improving the financial measures relating to the common fisheries policy

Outline of the Community (European Union) legislation about Improving the financial measures relating to the common fisheries policy

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Organisation and financing of the fisheries sector

Improving the financial measures relating to the common fisheries policy

Document or Iniciative

Council Regulation (EC) No 861/2006 of 22 May 2006 establishing Community financial measures for the implementation of the common fisheries policy and in the area of the Law of the Sea.

Summary

Through this Regulation the Council intends to improve the effectiveness of financial interventions within the framework of the implementation and control of the common fisheries policy (CFP).

Priority objectives

Financial measures are provided for in order to implement the CFP. The financial interventions concern:

improving the control of fishing activities and the application of CFP measures. The purpose of the funds allocated to the Member States is to compensate for any shortfall in national fisheries control programmes and to deal with deteriorating resources. The aim is to coordinate these control measures, taking particular account of the deployment of national inspection and surveillance systems through the Community Fisheries Control Agency;
data collection and improving scientific advice. The aim of the financial interventions made to Member States is to provide additional information for the evaluation of fisheries resources. Data handling goes hand in hand with collecting information, and it is essential to involve all stakeholders in the implementation of these measures. The Community funds will be used to support the establishment of complete databases which will be regularly updated within the Member States;
international relations. The financial interventions will support the conclusion of fisheries agreements with third countries, collaboration with the United Nations and the establishment of partnerships in the sector. These funds are also to be used for Community participation in preparatory work aimed at establishing new international organisations and/or new international standards in the fisheries sector and to protect fisheries resources;
governance of the CFP. The Regulation provides for expenditure relating to the Advisory Committee on Fisheries and Aquaculture (ACFA) and the Regional Advisory Councils (RACs), as well as for financing the operational costs of establishing the RACs.

Allocation of Community funds

These various actions will be financed within the framework of the financial guidelines for the period 2007-13. These actions receive Community funding as they help to ensure a long-term balance for fisheries resources.

Annual appropriations will be authorised by the budgetary authority within the limits of the financial framework. The measures financed under this Regulation may not receive financial assistance from other Community instruments. The Commission will ensure that preventive measures are established against fraud, corruption and any other illegal activities by providing for the recovery of the amounts paid if any irregularities are detected.

The implementation of these actions will be monitored on a regular basis. The Commission will ensure the regular, independent, external evaluation of the actions financed.

Under this Regulation the Commission must present to the Parliament and to the Council by 31 March 2011 an interim evaluation report on the results obtained and on the monitoring of the implementation of the actions financed by Community funds. A communication on the continuation of these actions will be published no later than 30 August 2012.

References

Act	Entry into force – expiry date	Deadline for transposition in the Member States	Official Journal
Regulation (EC) No 861/2006	1.1.2007 – 31.12.2013	–	OJ L 160 of 14.6.2006.

Related Acts

Commission Regulation (EC) No of 3 November 2008 laying down detailed rules for the implementation of Council Regulation (EC) No as regards the expenditure incurred by Member States for the collection and management of the basic fisheries data [Official Journal L 295 of 4.11.2008].
This Regulation establishes the Community financial contribution for expenditure incurred by Member States for the collection and management of the basic fisheries data. Member States are to submit an annual budget forecast concerning their national programme to the Commission for evaluation. The Commission may request a Member State to provide further clarification on the expenditure concerned in order to carry out that evaluation. The Member State shall provide that clarification within 15 calendar days from the Commission’s request. Eligible expenditure shall be related to data collection activities (collection of data on the sampling sites, at-sea-monitoring of commercial and recreational fisheries, research surveys at sea), data management activities (database and website development, storage, quality control and validation, processing, etc.) and data use activities (production of data and their uses to support scientific analysis, biological parameter estimates, and preparation of sets of data for stock assessment, bio-economic modelling and corresponding scientific analysis). The first national programme covers the period 2009-2010.

Commission Regulation (EC) No of 11 April 2007 laying down detailed rules for the implementation of Council Regulation (EC) No as regards the expenditure incurred by Member States in implementing the monitoring and control systems applicable to the Common Fisheries Policy [Official Journal L 97 of 12.4.2007].
This Regulation establishes the conditions governing financial aid from the Community for expenditure incurred by Member States on the control and implementation of the CFP regulations during the period 2007-2013. To receive financial aid, Member States must notify the Commission of their control programme before 31 January each year. Eligible projects are generally for a sum greater than 40 000 euros. They must follow the schedule set out in the annual programme and are subject to an interim evaluation report and a final report which is submitted to the Commission by each Member State. In addition, some additional conditions must be met for investment in new technologies, the purchase and modernisation of vessels and training and exchange programmes.

Community programme to support financial services, financial reporting and auditing

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Community programme to support financial services, financial reporting and auditing

Outline of the Community (European Union) legislation about Community programme to support financial services, financial reporting and auditing

Topics

These categories group together and put in context the legislative and non-legislative initiatives which deal with the same topic.

Internal market > Financial services: general framework

Community programme to support financial services, financial reporting and auditing (2010-2013)

Document or Iniciative

Decision No 716/2009/EC of the European Parliament and of the Council of 16 September 2009 establishing a Community programme to support specific activities in the field of financial services, financial reporting and auditing.

Summary

The aim of the Programme is to support the activities or actions of certain bodies in the fields of financial services, financial reporting and auditing. It applies to two types of activity:

activities supporting the implementation of Community policies aimed at the convergence of supervisory practices;
activities developing or providing input to the development of standards.

Beneficiaries of the Programme

The following bodies may benefit from the Programme:

the European Financial Reporting Advisory Group (EFRAG);
the International Accounting Standards Board (IASB);
the Public Interest Oversight Board (PIOB);
CEBS Secretariat Limited, based in London, which supports the Committee of European Banking Supervisors (CEBS);
a French not-for-profit organisation, based in Paris, which supports the Committee of European Securities Regulators (CESR);
a German not-for-profit organisation, based in Frankfurt, which supports the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS).

Other bodies may also benefit from the Programme provided they meet the following criteria:

they must be non-profit-making legal persons which carry out activities connected with public interest and pursue an aim of general European interest;
they must not be in the situation described in Articles 93(1), 94 and 96(2)(a) of the Financial Regulation.

Award of grants

The European Commission awards grants to the EFRAG, the IASCF and the PIOB in the form of operating grants, to cover expenses such as the running of secretariats and the remuneration of employees.

The support structures of the European supervisory committees receive funding in the form of action grants covering the following activities:

information technology projects;
training programmes and staff secondment schemes for staff from national supervisors;
hosting conferences, seminars, training sessions and meetings of experts;
preparing and issuing publications, preparation and execution of other information activities;
carrying out research and preparing studies;
other specific supporting activities in the field of accounting, auditing and supervisory convergence or cooperation.

The Commission awards funding in the form of grants to other bodies which have submitted an appropriate work programme and estimated overall budget.

Grant beneficiaries are obliged to indicate, on a website or in the annual report, that they have received funding from the budget of the European Union.

The financial reference amount is EUR 38.7 million for the period 2010-2013.

Monitoring procedures

The Commission shall ensure that a technical and financial report, and an activity and financial report are submitted annually by the beneficiary of the grant. It may exercise supervision and financial control, as may the Court of Auditors.

Context

This Programme is introduced as part of the period of reflection which followed the financial crisis of October 2008. This period has been marked by a range of initiatives such as the adoption of the Communication from the Commission of 29 October 2008 – From financial crisis to recovery: A European framework for action, and the establishment of the De Larosière Group of experts responsible for considering the future supervisory architecture in Europe.

At the same time, the G20 summit held in Washington on 15 November 2008 also highlighted the need to improve international coordination between financial supervisory bodies.

References

Act	Entry into force	Deadline for transposition in the Member States	Official Journal
Decision 716/2009/EC	15.10.2009	1.7.2010	OJ L 253 of 25.9.2009

Related Acts

Communication from the Commission of 29 October 2008 – From financial crisis to recovery: A European framework for action [COM(2008) 706 final – Not published in the Official Journal].

This Communication emphasises the need to redefine the regulatory and supervisory model of the European Union financial sector.