Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Amending Council Decision N° 1999/784/EC concerning Community participation in the European Audiovisual Observatory

(presented by the Commission)

EXPLANATORY MEMORANDUM

By Decision 1999/784/EC [1], the Council adopted the proposal concerning Community participation in the European Audiovisual Observatory for a period ending on 31 December 2004.

[1] OJ No L 307, 2.12.1999, p. 61

The European Audiovisual Observatory is an Enlarged Partial Agreement of the Council of Europe. At present, 35 States, among which all the present and future Member States, participate in the Observatory.

The Observatory was established in Strasbourg in 1992 [2]. Its Statute stipulates that "the aim of the Observatory shall be to improve the transfer of information within the audio-visual industry, to promote a clearer view of the market and a greater transparency. In doing so, the Observatory shall pay particular attention to ensuring reliability, compatibility and comparability of information".

[2] Resolution (92)70 adopted by the Committee of Ministers of the Council of Europe on 15/12/1992. By Resolution (97) 4 of 20 March 1997, the Committee of Ministers confirmed the continuation of the Observatory for an indefinite period.

The 1999 Decision provided for a legal basis, Art 157(3) of the Treaty, to a co-operation between the Commission and the Observatory started since the beginning of the latter's activity. The Commission represents the Community in its relations with the Observatory [3].

[3] Council Decision 1999/784/EC, Article 2

The Commission considers that the policy objectives of knowledge dissemination and market transparency are of the utmost importance for the development of the audio-visual sector insofar they help operators' investment decision and regulatory instances to set the best environment from an overall view point.

The activity of the Observatory in the area of market statistics, financial and legal information effectively contributes to the achievement of such objectives and therefore, it is in the Community interest to support and consolidate the structure of the Observatory as well as bilateral co-operation.

The Observatory's contribution to the achievement of the mentioned objectives will be improved by the implementation of a new strategy at present under development with the participation of the Commission. The updated remit and the relevant financial framework will be adopted by the responsible instances of the Observatory at the end of 2005. The implementation will start progressively in 2006, at the earliest.

Taking into account the positive experience of the co-operation developed in the past, which was summarised in a mid-term report [4], the Commission considers it would be appropriate to extend the Community participation in the Observatory for a period of two years. This short extension will allow to cover a critical period for the definition of the future patterns of the Observatory activity and can be lodged in the present Community's financial perspectives without any prejudice for future decisions, which will be taken in 2006 with the full knowledge of the features of the Observatory's new remit and financial framework.

[4] Report from the Commission to the Council, the European Parliament and the Economic and Social Committee on the implementation of Council Decision 1999/784 EC; doc COM (2002) 619 Final.

The European Commission therefore proposes:

- To prolong the Community participation in the Observatory for two years up to 31/12/2006;

- To maintain the yearly budget at the level of 2004, i.e. 235 000 EUR.

To this end the Commission submits the appended proposal for a Decision of the European Parliament and of the Council.

2003/0293 (COD)

Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL Amending Council Decision N° 1999/784/EC concerning Community participation in the European Audiovisual Observatory

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 157 (3) thereof,

Having regard to the proposal from the Commission [5],

[5] OJ C , , p. .

Having regard to the opinion of the European Economic and Social Committee [6],

[6] OJ C , , p. .

Having regard to the opinion of the Committee of the Regions [7],

[7] OJ C , , p. .

Acting in accordance with the procedure laid down in Article 251 of the Treaty [8],

[8] OJ C , , p. .

Whereas:

(1) In Decision 1999/784/EC [9] the Council decided that the Community should become a member of the European Audiovisual Observatory (hereinafter "the Observatory) in order to support the latter's activity. The Observatory contributes to strengthening the competitiveness of the Community's audio-visual industry by improving the transfer of information to the industry, in particular to small and medium-sized enterprises, and promoting a clearer view of the market.

[9] OJ L 307, 2.12.1999, p.61

(2) The Community participation in the Observatory has proven effective in supporting the latter's activity.

(3) It is appropriate to continue such participation during the period necessary for the Observatory to adopt guidelines for its future activity, from 2006 onwards.

(4) Decision 1999/748/EC should therefore be amended accordingly,

HAVE DECIDED AS FOLLOWS:

Sole Article

Decision 1999/784/EC is amended as follows:

Article 5 is replaced by the following:

"Article 5

This decision shall apply until the last day of the last month of the seventh year following the year of its adoption"

Done at Brussels,

For the European Parliament For the Council

The President The President

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Education and Culture

Activit(y/ies): Audio-visual policy and sports

Title of action: Community participation in the European Audiovisual Observatory

1. BUDGET LINE(S) + HEADING(S)

B 3 2017 - Autres actions dans le domaine audiovisuel

ABB "15 05 01 03"

2. OVERALL FIGURES

2.1. Total allocation for action (Part B): 0.470 EUR million for commitment

2.2. Period of application:

1/1/2005 - 31/12/2006

2.3. Overall multiannual estimate of expenditure:

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

EUR Million (to three decimal places)

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(b) Technical and administrative assistance and support expenditure

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(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

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2.4. Compatibility with financial programming and financial perspective

X Proposal is compatible with existing financial programming.

Proposal will entail reprogramming of the relevant heading in the financial perspective.

Proposal may require application of the provisions of the Interinstitutional Agreement.

2.5. Financial impact on revenue: [10]

[10] For further information, see separate explanatory note.

X Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

3. BUDGET CHARACTERISTICS

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4. LEGAL BASIS

Article 157 (3)

5. DESCRIPTION AND GROUNDS

5.1. Need for Community intervention [11]

[11] For further information, see separate explanatory note.

5.1.1. Objectives pursued

The Commission considers that the policy objectives of knowledge dissemination and market transparency are of the utmost importance for the development of the audio-visual sector insofar they help operators' taking business decisions and assist regulatory instances to set the best environment from an overall view point.

The activity of the Observatory in the area of market statistics, financial and legal information can effectively contribute to the achievement of such objectives and therefore, it is in the Community interest to support and consolidate the structure of the Observatory as well as the bilateral co-operation.

Observatory's contribution to the achievement of the mentioned objectives will be improved by the implementation of a new strategy, which, at present, is undergoing a feasibility assessment.

The extension of the Community participation in the Observatory for the period 2005/2006 will secure political guidance and an important financial contribution to the Observatory's ordinary activity over the period necessary to define new strategies.

5.1.2. Measures taken in connection with ex ante evaluation

In consideration of the nature of "short term extension", no ex ante evaluation has been conducted. In order to have an assessment of the Observatory activity, reference can be made usefully to the mid term report [12] adopted by the Commission on 11 November 2002.

[12] COM(2002) 619 final

The mid-term report points out that the Commission and the Observatory have developed a sound professional partnership benefiting both the industry, who receive a flow of timely information enhancing transparency, and the public authorities, who can launch profitable discussions with the industry representative built on clear views of the market. The Observatory represents a model of integration between the activities of public bodies and the private sector from several countries.

5.2. Actions envisaged and budget intervention arrangements

- The activity of the Observatory targets primarily the operators of the audio-visual sector and, secondly, the European and national policy-makers responsible for audio-visual policy

The activity of the Observatory in the area of market statistics, financial and legal information can effectively contribute to the achievement of the objectives of knowledge dissemination and market transparency.

- The Community will participate in the financing of the Observatory along with other 35 members. The Commission will represent the Community in all the statutory bodies of the Observatory setting its policy and operations.

- The Community participation and financing in the Observatory will substantially help the Observatory to continue and develop its publications: the statistical "Yearbook", the "IRIS" legal newsletter, the database "Amadeus", Korda" and "Fonxy" as well as other minor publications.

- All Observatory's publications and database, released on paper and available on the Web in three languages, are a primary source of financial, marketing and legal information for the operators and the public instances.

In accordance with the Statute of the Observatory, the Community contributes along other 35 members (in 2003) to the financial needs of the Observatory. It has a status of "large contributor", as it is the case for France, Germany, Italy, UK and Russia. As in the past, the yearly contribution shall not exceed 12.25% of the total budget, which is fixed annually by the Executive Council and adopted by the Financial Committee.

Moreover, in consideration of the nature of extension of this Decision, the Community yearly contributions shall be kept in 2005 and 2006 within the same ceiling foreseen for 2004 by the Decision in force (235,000 EUR), without any yearly increase.

5.3. Methods of implementation

As in the past, the Commission will formalise the Community participation in the Observatory through an Agreement, in the form of an Exchange of Letters with the Secretary General of the Council of Europe. A document called Memorandum of Understanding will be attached to the Exchange of Letters. It will be designed to establish the specific terms of the yearly Commission commitments. This document will be updated and underwritten every year by the Commission and the Observatory

For what concerns the ordinary management activity of the Observatory, the Commission, representing the Community, participates in all the statutory bodies of the Observatory: the Financial Committee, the Executive Council and the Advisory Committee.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments (in EUR million to three decimal places)

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6.2. Calculation of costs by measure envisaged in Part B (over the entire programming period) [13]

[13] For further information, see separate explanatory note.

Commitments (in EUR million to three decimal places)

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7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

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7.2. Overall financial impact of human resources

>TABLE POSITION>

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action

>TABLE POSITION>

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

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The needs for human and administrative resources shall be covered within the allocation granted to the managing DG in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

8.1. Follow-up arrangements

"On going" monitoring activities are regularly carried out by the Executive Council, which meets twice a year, and by the Advisory Committee, which provides useful feed-backs from the operators, as well as valuable inputs to define the yearly Workplans. The Commission takes part actively in the works of these bodies.

8.2. Arrangements and schedule for the planned evaluation

The Commission on 11/11/2002 adopted the mid-term report on the implementation of the Council Decision. A report will be transmitted by the Commission to the European Parliament, the Council and the Economic and Social Committee upon expiration of the Decision.

9. ANTI-FRAUD MEASURES

Concerning the modalities for financial inspections and audits, it has to be recalled that the present yearly Memorandum of Understanding between the Observatory and the Commission, adopted in its present form by the Commission with Decision C(2000)3308, provides detailed procedures concerning the keeping of accounting records and the possibilities of checks. In case of extension of the Community participation, such procedures will be confirmed in order to provide the necessary framework for a control of the use of Community funds.