52003DC1011(01)

Commission report

Financial Report of the ECSC in liquidation at 31 December 2002

(2003/C 245/03)

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ACTIVITY REPORT

Expiry of the ECSC Treaty and the management mandate given to the European Commission

The ECSC Treaty expired on 23 July 2002, and on 24 July 2002 the ownership of ECSC funds reverted to the Member States.

The final objective laid down by the Member States is the transfer of ECSC funds to the European Community (EC) and the creation of a joint research fund in the sectors associated with the coal and steel industries. This objective was already present in the resolution of the European Council meeting in Amsterdam on 16 June 1997 and in the resolutions adopted by the Council and the Representatives of the Governments of the Member States on 20 July 1998 and 21 June 1999.

The Nice European Council decided to annex to the Treaty of Nice a Protocol on the financial consequences of the expiry of the ECSC Treaty and on the Coal and Steel Research Fund. It was decided that, on the expiry of the Treaty, all assets and liabilities of the ECSC would be transferred to the European Community on 24 July 2002. The net worth of these assets and liabilities is to be considered as assets earmarked for research in the sectors associated with the coal and steel industries. The revenue from these assets is to be used exclusively for research in these sectors. The Treaty of Nice entered into force on 1 February 2003.

Since the Treaty of Nice was not ratified before the expiry of the ECSC Treaty, the Member States temporarily entrusted the European Commission(1) with the task of managing the assets of the ECSC in liquidation by applying the same principles as provided for in the Protocol to the Treaty of Nice.

Winding up of ECSC financial operations in progress on expiry of the ECSC Treaty

Management of borrowings of the ECSC in liquidation

During the winding-up period from 24 July to 31 December 2002, the debt of the ECSC in liquidation changed as follows:

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The amortisation of the borrowings outstanding at 31 December 2002 breaks down as follows:

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The main characteristics of the borrowings outstanding are as follows:

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NB:

Payments of capital and interest in respect of borrowings in GBP totalling GBP 102481000 are secured by the holding of bonds (financial fixed assets) with the same rate and maturity date.

Management of loans from the ECSC in liquidation

Over the period from 24 July to 31 December 2002, the changes in loans from borrowed funds (under Articles 54 and 56 ECSC) were as follows:

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The loans from borrowed funds outstanding at 31 December 2002 were backed by guarantees as follows:

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Over the period from 24 July to 31 December 2002, the changes in loans from own funds (under Article 54.2 ECSC) were as follows:

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NB:

These are loans for financing the construction of subsidised housing at an interest rate of 1 % p.a.

The loans from own funds outstanding at 31 December 2002 were backed by guarantees as follows:

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Levy

Total claims at 23 July 2002 amounted to EUR 4975874.

These were covered in their entirety by value adjustments. Over the period from 24 July to 31 December 2002, payments were received totalling EUR 34579. Irrecoverable claims totalling EUR 82870 were cancelled. Total claims at 31 December 2002 thus amounted to EUR 4858425, covered in their entirety by value adjustments.

Interest subsidies

Total claims at 23 July 2002 amounted to EUR 3162873. Value adjustments were made totalling EUR 2825137. During the period from 24 July to 31 December 2002, the ECSC in liquidation received payments of EUR 496702 and issued new demands for the recovery of EUR 615665. It waived or cancelled claims amounting to EUR 615309. Consequently, at 31 December 2002 total claims amounted to EUR 2666527, covered by value adjustments in the sum of EUR 2454855.

Fines

A. THE FOLLOWING FINES, IMPOSED ON STEEL COMPANIES BY THE COMMISSION IN ACCORDANCE WITH THE RULES SET OUT IN THE TREATY, ARE STILL OUTSTANDING (IN EUROS, NET OF INTEREST)

1. Fines imposed between 1982 and 1984 for infringements of the system of prices and quotas

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The three companies are in liquidation. A value adjustment of 100 % has been entered in our books.

2. Fines imposed on 16 February 1994 (Decision 94/215/ECSC) for failure to respect the competition rules in the field of steel beams

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Four companies have appealed against the judgment of the Court of First Instance. A value adjustment of 100 % has been entered in our books.

3. Fines imposed on 21 January 1998 (Decision 98/247/ECSC) for collusion on the formula for calculating the alloy surcharge

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The two companies have appealed against the judgment of the Court of First Instance. A value adjustment of 100 % has been entered in our books.

B. THE FOLLOWING FINES HAVE BEEN PAID, BUT THE COMPANIES HAVE APPEALED AGAINST THE JUDGMENT OF THE COURT OF FIRST INSTANCE. THE ECSC HAD CONSTITUTED A PROVISION FOR LIABILITIES AND CHARGES (AMOUNT IN EUROS, NET OF INTEREST)

1. Fines imposed on 16 February 1994 (Decision 94/215/ECSC) for failure to respect the competition rules in the field of steel beams

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2. Fines imposed on 21 January 1998 (Decision 98/247/ECSC) for collusion on the formula for calculating the alloy surcharge

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Outstanding commitments under ECSC operating budgets

During the period from 24 July to 31 December 2002, payments were made totalling EUR 47 million and cancellations totalled EUR 11 million. The changes in the commitments relating to the ECSC operating budgets from 24 July to 31 December 2002 were as follows:

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Management of assets

The net worth of the ECSC's assets and liabilities at the moment of the expiry of the ECSC Treaty is regarded as assets to be used for research in the sectors associated with the coal and steel industries. These assets are managed by the Commission so as to ensure their long-term profitability, the objective being to obtain the highest possible yield under secure conditions. During the liquidation phase, treasury investments take account of the constraints regarding maturity dates and liquidity.

The total cash holdings of the ECSC in liquidation at 23 July 2002 amounted to EUR 1592 million. At that date, commitments in respect of the operating budget amounted to EUR 401 million, the Guarantee Fund stood at EUR 529 million and the provisions for financing coal and steel research from 2003 onwards amounted to EUR 240 million. The free reserves after allocation of the surplus amounted at the same date to EUR 268 million. Thanks to the surplus for the period from 24 July to 31 December 2002 (see note C17 in the notes to the Financial Statements) and the reclassification of part of the Special Reserve and the former pension fund (see note C16), after allocation of the surplus these reserves amounted at 31 December 2002 to EUR 349 million.

The return on investment, including the variation in the market value of bonds (calculated by the Modified Dietz Method) was 6,25 % for 2002.

Financing of coal and steel research

The net revenue generated by the assets of the ECSC in liquidation, constituting the Coal and Steel Research Fund, is used exclusively for research carried out in the sectors associated with the coal and steel industries. The net revenue for year n is exclusively made available to the budget of the European Community for research in year n+2. In order to reduce as far as possible the fluctuations that movements in the financial markets could cause in the financing of research, a smoothing arrangement is applied. This financing mechanism takes effect in 2003. The revenue for 2003 will be used for research in 2005.

To prime the mechanism and make provision for financing coal and steel research in 2003 and 2004, a smoothing provision (EUR 120 million) and financing provisions of EUR 60 million for each of the years 2003 and 2004 were already constituted in the balance sheet at 31 December 2001. The net revenue from investments over the period from 24 July to 31 December 2002 (EUR 27 million) will increase the capital of the Coal and Steel Research Fund.

(1) Decision 2002/234/ECSC of the Representatives of the Governments of the Member States, meeting within the Council, of 27 February 2002 (OJ L 79, 22.3.2002, p. 42).

FINANCIAL STATEMENTS OF THE ECSC IN LIQUIDATION

This is the first report on the ECSC in liquidation, covering the period from 24 July to 31 December 2002.

The ECSC's balance sheet, profit-and-loss account and statement of the allocation of the surplus for the year ending 31 December 2002 were submitted to the Commission for approval under written procedure No E/... of ... 2003 and are shown in this financial report as approved by the Commission.

For ease of comparison, the corresponding figures from the ECSC financial statements at 31 December 2001 and 23 July 2002 are shown alongside the financial statements of the ECSC in liquidation at 31 December 2002.

Auditors' report on the financial statements

Following our appointment, we have audited the financial statements of the European Community of Steel and Coal in liquidation ("ECSC in liquidation") for the period from 24 July 2002 to 31 December 2002.

The financial statements are the responsibility of the European Commission. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with International Standards on Auditing. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles and methods used and any significant estimates made by management, as well as evaluating the overall presentation of the financial statements.

The following audit procedures, amongst other, have been performed:

1. Review of the administrative and accounting procedures and the control system in operation within the ECFIN - L Directorate relating to the different financial instruments administered and testing, on a sample basis, that these procedures have been complied with.

2. Verification of supporting documents for transactions recorded in the accounting records.

3. Verification of documentation in relation to credits granted and borrowings (content, preservation of documents, monitoring of repayments, validity of guarantees).

4. Analysis of the accounts, verification of computation.

5. Tests in the treasury department (including examination of positions, verification of swap transactions).

We believe that our audit provides a reasonable basis for our opinion.

Our tests included the examinations of global confirmations received from the DG Budget. Our audit did not extend to verifying the nature and supporting documents for payments and commitments made under the ECSC Operating Budget in liquidation as these operations are recorded by DG Budget. We understand that these operations are audited by the European Court of Auditors and published in the Official Journal.

With the exception of any potential impact which could result from the matter described in the previous paragraph, in our view the attached financial statements give, in conformity with generally accepted accounting principles in the European Union and the specific accounting principles described in Note B.1 of the financial statements of the ECSC in liquidation, a true and fair view of the assets and financial position of the ECSC in liquidation for the period from 24 July 2002 to 31 December 2002 and of the results of its operations for the period then ended.

Luxembourg, 30 June 2003

KPMG Audit

Réviseurs d'Entreprises

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Allocation of the surplus for the period ending 31 December 2002

(Amounts in EUR)

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Notes to the financial statements at 31 December 2002

(Amounts in EUR)

A. THE ECSC IN LIQUIDATION

The European Coal and Steel Community (ECSC), established by the Treaty signed in Paris on 18 April 1951, expired on 23 July 2002. The Nice European Council decided to annex to the Treaty of Nice of 26 February 2001(1) a protocol on the financial consequences of the expiry of the ECSC Treaty and on the creation and management of the Coal and Steel Research Fund. It was decided that all ECSC assets at the time of the expiry of the Treaty would be transferred to the European Community with effect from 24 July 2002.

Pending the entry into force of the Treaty of Nice (1 February 2003), the Member States entrusted to the European Commission the task of managing the assets of the ECSC in liquidation by applying the same principles(2), as provided for in the Protocol to the Treaty of Nice.

Subject to any increase or decrease resulting from the liquidation operations, the net worth of all the ECSC's assets and liabilities, as they appear in the ECSC balance sheet at 23 July 2002, is regarded as assets earmarked for research in the sectors associated with the coal and steel industries. These assets, termed the "ECSC in liquidation", will be known after the end of the liquidation process as the "Assets of the Coal and Steel Research Fund".

The Commission is responsible for winding up the financial operations of the ECSC that were still in progress at the moment of the expiry of the ECSC Treaty. The winding-up is conducted in accordance with the rules and procedures applying to these operations, with the Community institutions enjoying the existing powers and prerogatives provided for by the ECSC Treaty and the secondary legislation in force on 23 July 2002. The assets of the ECSC in liquidation, including its loans portfolio and its investments, are used as necessary to meet the ECSC's remaining obligations in terms of outstanding borrowings resulting from previous operating budgets and other contingencies.

Where the ECSC's assets are not needed to meet these obligations, they are invested so as to ensure long-term profitability. The objective in placing the available assets must be to obtain the highest possible yield that is securely attainable. The net revenue from these investments, known as the "Coal and Steel Research Fund", constitutes revenue in the general budget of the European Union and will be be used exclusively for research in the sectors associated with the coal and steel industry, in accordance with the Decision of 27 February 2002 of the representatives of the governments of the Member States and the instruments adopted on the basis of that Decision.

The net revenue available for financing research projects in year n+2 appears in the balance sheet of the ECSC in liquidation for year n, and after the liquidation process has been completed will appear as assets in the balance sheet of the Coal and Steel Research Fund. In order to reduce as far as possible the fluctuations that movements in the financial markets could cause in the financing of research, a smoothing arrangement is applied and a provision for contingencies has been created. The algorithms for smoothing and for determining the size of the provision for contingencies are set out in the appendix to Annex 1 to the Decision of the representatives of the governments of the Member States of 27 February 2002. The revenue identified is apportioned between research relating to coal and that relating to steel in proportions of 27,2 % et 72,8 % respectively.

B. ACCOUNTING PRINCIPLES AND METHODS

1. Presentation of the financial statements

The financial statements are drawn up in accordance with generally recognised accounting principles.

The accounting principles and evaluation methods used for the items in the financial statements take account of the constraints and resolutions applicable to the ECSC in liquidation under the Treaties and other decisions adopted by the institutions of the European Communities.

The accounting methods used also take account of the absence of continuity after 23 July 2002, when the ECSC Treaty expired.

They are presented in accordance with Council Directives 78/660/EEC and 86/635/EEC(3) on the annual accounts and consolidated accounts of banks and other financial institutions wherever these are applicable and subject to the above-mentioned necessary adjustments. Directive 2001/65/EC(4) amending the above-mentioned Directives concerning the valuation rules and in particular fair value is not yet applicable to the financial statements of the ECSC in liquidation. This Directive must be applied by 31 December 2003.

Where appropriate, the necessary presentational adjustments have been made to the figures for the corresponding items in previous periods so as to ensure comparability.

2. Conversion of items expressed in foreign currency

The currency used for the financial statements of the ECSC in liquidation is the euro ("EUR").

All foreign-currency transactions carried out by the ECSC in liquidation are converted into euros at the monthly rate communicated by the European Central Bank.

The value of non-financial assets/liabilities is converted into euros at the monthly rate applicable on the date on which they were acquired or on which their value was last adjusted.

At the balance-sheet date, financial assets/liabilities are converted into euros at the monthly rate applicable on that date. Negative differences are entered under "charges" in the profit-and-loss account, while positive differences are deferred and entered under "accruals and deferred income" on the liabilities side.

2.1. Conversion rates

The following rates have been used for converting balance-sheet amounts expressed in national currency into euros:

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2.2. At 31 December 2002 the various currencies listed above, together with the euro, made up the balance sheet of the ECSC in liquidation as follows (EUR):

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3. Treasury investment and valuation of bonds and other securities

The internal prudential rules of the ECSC in liquidation stipulate that portfolio investments are to be confined to securities issued by first-ranking entities. However in 1998, under an agreement to restructure the debt of a defaulting debtor, the ECSC exceptionally acquired shares and other variable-income securities from a private-sector company.

Bonds and other fixed-income securities and shares and other variable-income securities are valued at the average purchase price or the market value obtaining at the end of the financial year, whichever is the lower.

This principle is not applied in the case of securities considered as financial fixed assets, which are valued at the average purchase price or the redemption value, whichever is the lower.

4. Intangible and tangible fixed assets

Amortisation is calculated on the basis of Commission Regulation (EC) No 2909/2000 of 29 December 2000(5). Computer software is written off over a period of four years, as is hardware.

5. Special features of the ECSC financial statements

a) ECSC operating budget

Part of the funds of the ECSC in liquidation were made available to the ECSC operating budget, which was adopted annually by the Commission after informing the Council and consulting the European Parliament. The last budget was drawn up for the period from 1 January to 23 July 2002.

From 24 July 2002 onwards, the income and charges relating to the operating budget are shown in the accounts as "other liquidation income/charges".

The changes between 24 July and 31 December 2002 in commitments vis-à-vis third parties entered into under the operating budget are shown under the heading "Outstanding commitments under the ECSC operating budget" (see Note C13).

b) Budget for financing coal and steel research

The Member States of the European Union have decided that the income from the management of ECSC assets after 23 July 2002 should be allocated to the general budget of the European Communities(6). This income is earmarked for a research programme relating to the coal and steel industries, as stated in Note A to this report.

The ECSC has already constituted provisions in order to prepare the ground for this mechanism for financing coal and steel research. These provisions are entered under the heading "Budget for financing coal and steel research" (see Note C15).

C. EXPLANATORY NOTES TO THE HEADINGS IN THE BALANCE SHEET AND THE PROFIT-AND-LOSS ACCOUNT

1. Loans and advances to credit institutions

1.1. With agreed maturity dates or periods of notice

The breakdown of the remaining time to maturity of these operations is as follows:

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1.2. Loans

The breakdown of the remaining time to maturity of these operations is as follows:

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2. Loans and advances to customers

2.1. Loans

The loans granted to credit institutions are shown under "Loans and advances to credit institutions" (see Note C1.2).

The other loans break down as follows:

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N.B.:

Loans are generally guaranteed by Member States, banks or businesses or by mortgages.

2.2. Levy

The levy rate for 1998-2002 was 0 %, so the claims at 31 December 2002 relate to previous years.

This item breaks down as follows:

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2.3. Fines

This item contains the Commission's claims on companies fined in accordance with the rules set out in the Treaty.

This item breaks down as follows:

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2.4. Interest subsidies to be recovered

This item comprises claims on companies in receipt of subsidised loans from which the Commission has been obliged to ask for reimbursement of all or part of the interest subsidy already paid.

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3. Bonds and other fixed-income securities

3.1. Composition

The bonds and other fixed-income securities break down as follows:

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The net change of EUR 7187932 in value adjustments between 23 July and 31 December 2002 breaks down as follows:

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3.2. Maturities in 2003

Securities in the portfolio reaching final maturity in the course of 2003 represent the following amounts (EUR):

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3.3. Financial fixed assets (See Note B.3)

Financial fixed assets are defined as securities that will remain in the portfolio until their final maturity. They comprise long-term paper for servicing ECSC borrowings.

At 31 December 2002, financial fixed assets totalled EUR 157541891 in nominal terms, which was less than the average acquisition price. The value adjustments at 31 December 2002 amounted to EUR 60709724 (EUR 62397971 at 23 July 2002).

3.4. Return on investment

Treasury investments take account of the maturity dates and liquidity requirements applicable to ECSC financial operations. They are subject to strict criteria with regard to the financial standing of the counterparty(7).

The return on investment, including the variation in the market value of bonds (calculated by the Modified Dietz Method) was 6,25 %(8) for the year 2002.

3.5. Structure of the portfolio by maturity date and rating(9)

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4. Shares and other variable-income securities

Developments with regard to shares and other variable-income securities were as follows:

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These shares and other variable-income securities were received by the ECSC as part of the restructuring plan of a defaulting debtor.

5. Intangible fixed assets

Developments with regard to intangible fixed assets were as follows:

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These assets consist of computer software (see also Note B.4)

6. Tangible fixed assets

Developments with regard to tangible fixed assets were as follows:

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These assets consist of computer hardware (see also Note B.4)

7. Other assets

The other assets break down as follows:

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8. Prepayments and accrued income

The prepayments and accrued income break down as follows:

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9. Amounts owed to credit institutions

The remaining time to maturity on these operations is as follows:

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10. Debts evidenced by certificates

This item comprises loan securities issued by the ECSC.

An amount of EUR 228673526 is accounted for by borrowings with less than one year to maturity (EUR 228673526 at 23 July 2002).

11. Other liabilities

The other liabilities break down as follows:

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12. Accruals and deferred income

The accruals and deferred income break down as follows:

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13. Outstanding commitments under the ECSC operating budget

From 24 July 2002 this item comprises the commitments still outstanding in respect of ECSC operating budgets (see Note B5a). The provisions for financing the operating budget and for budgetary contingencies were withdrawn on 23 July 2002.

During the period from 1 January to 31 December 2002, the changes in the item for the ECSC operating budget were as follows:

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14. Provision for liabilities and charges

14.1. Guarantee Fund

The Guarantee Fund is intended to cover lending and borrowing operations. After a withdrawal of EUR 32 million, the Guarantee Fund stood at EUR 497 million at 31 December 2002.

On 11 September 1996 the Commission confirmed its intention of maintaining reserves to cover 100 % of those loans outstanding after 23 July 2002 which are not guaranteed by the government of a Member State. Following loan repayments over the period from 24 July to 31 December 2002, it was possible to reduce the Guarantee Fund.

The changes in the Guarantee Fund were as follows:

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14.2. Other provisions

From 24 July 2002 onwards, this item includes the provisions for liabilities and charges. Following the final discontinuation of the ECSC operating budgets, the provisions for fines and for interest subsidies repayable were withdrawn on 23 July 2002.

The changes in other provisions were as follows:

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15. Budget for financing coal and steel research

This item breaks down as follows:

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In view of the expiry of the ECSC Treaty on 23 July 2002 and the winding-up of the ECSC, it has been decided that all ECSC assets at the time of the expiry of the Treaty will be managed by the European Commission with effect from 24 July 2002(10). The net worth of these assets is considered to be earmarked for research in the sectors associated with the coal and steel industries. The income generated by these assets will be allocated exclusively to research in these sectors.

In practice, the net profit from the management of the assets (invested mainly in the securities portfolio and term deposits) in year n will be transferred to the general budget of the European Community and will be used for research in year n+2. On the basis of simulations of the net profit from the management of the assets, it was decided to set the initial funding at EUR 60 million.

In order to reduce fluctuations in research funding resulting from movements on the financial markets, a smoothing formula will be applied in accordance with the procedures approved by the Member States. This smoothing formula will be applied for the first time to the results for the 2003 financial year and will be used to determine the allocation for research in 2005. In order to launch this mechanism, the ECSC in liquidation has created a provision for smoothing.

16. Reserves and surpluses

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The Special Reserve is used to grant loans from ECSC own funds to finance subsidised housing. At 31 December 2002, the amount outstanding corresponding to the loans granted was of the order of EUR 103,8 million (EUR 112,3 million at 23 July 2002 and EUR 118 million at 31 December 2001). Consequently, it was possible to release EUR 8,5 million, which was transferred to the free reserves.

The former Pension Fund originally represented the ECSC's total pension obligations prior to 5 March 1968. Since that date, the Member States have assumed responsibility, via the general budget, for the payment of staff pensions. This fund is used to finance housing loans for officials of the European Communities. At 31 December 2002, the amount outstanding corresponding to the loans granted was of the order of EUR 34 million (EUR 36 million at 23 July 2002 and EUR 40 million at 31 December 2001). Consequently, it was possible to release EUR 2 million, which was transferred to the free reserves.

The "Assets of the Coal and Steel Research Fund" reserve, created in the context of the winding-up of the ECSC (see Note C15), comprises the free reserves.

17. Analysis of the result for the period

The overall performance of the ECSC in liquidation is affected by the result of winding up the ECSC's financial operations, the net return on investments and administrative costs.

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17.1. Winding up the financial operations of the ECSC in liquidation

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17.2. Net investment income

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17.3. Administrative overheads

Each year the ECSC paid a lump sum of EUR 5 million (EUR 2794520 for the period from 1 January to 23 July 2002) to cover administrative expenditure.

According to Decision 2002/234/ECSC of 27 February 2002 (Annex 1, point 6) of the Representatives of the Governments of the Member States meeting within the Council (see Note A), the administrative expenditure of the ECSC in liquidation was to be met by the Commission, and the ECSC in liquidation was to transfer prorata temporis EUR 3,3 million to the budget of the European Union. The corresponding amount for the period from 24 July 2002 to 31 December 2002 is EUR 1455616.

With the entry into force of the Treaty of Nice on 1 February 2003, all the ECSC's assets have been transferred to the European Community, and the obligation to pay a lump sum to the budget of the European Union lapses.

18. Interest and similar charges

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19. Other operating charges

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The loss on loans and advances is offset by a withdrawal from the corresponding value adjustment.

20. Interest received and other income

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21. Other operating/liquidation income

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The other liquidation income represents mainly cancellations of outstanding commitments under the ECSC operating budget (See Note C13.).

22. Off-balance-sheet commitments

22.1. Commitments received

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22.2. Commitments entered into

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23. Financial situation for the period ending 31 December 2002

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(1) OJ C 80, 10.3.2001.

(2) Decision of the Representatives of the Governments of the ECSC Member States, meeting within the Council, of 27 February 2002 (OJ L 79, 22.3.2002).

(3) OJ L 222, 14.8.1978, and OJ L 372, 31.12.1986.

(4) OJ L 283, 27.10.2001.

(5) OJ L 336, 30.12.2000, p. 75.

(6) Decision of the Representatives of the Governments of the ECSC Member States, meeting within the Council, of 27 February 2002 (OJ L 79, 22.3.2002).

(7) See paragraph 3 of the appendix to Annex II to the Decision of 27 February 2002 of the Representatives of the Governments of the ECSC Member States.

(8) Compare with the ECSC in liquidation benchmark return of 6,11 % (unaudited figure).

(9) Valued at average acquisition price or market value, whichever is lower (EUR million).

(10) Decision of the Representatives of the Governments of the ECSC Member States, meeting within the Council, of 27 February 2002 (OJ L 79, 22.3.2002).