52006AP0085

P6_TA(2006)0085

Financial Regulation applicable to the general budget of the European Communities *

Proposal for a Council regulation amending Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (COM(2005)0181 — C6-0234/2005 — 2005/0090(CNS))

(Consultation procedure)

The proposal was amended as follows [1]:

Amendment 1

Recital 1

(1) Council Regulation (EC, Euratom) No 1605/2002, hereinafter "the Financial Regulation", lays down the legal foundations of the financial management reform. As such, its essential elements should be maintained and strengthened. Moreover, it establishes budgetary principles which should be respected by all legislative acts and from which derogations should be kept to a strict minimum.

(1) Council Regulation (EC, Euratom) No 1605/2002, hereinafter "the Financial Regulation", lays down the legal foundations of the financial management reform. As such, its essential elements should be maintained and strengthened. Moreover, it establishes budgetary principles, derived from Article 268 et seq. of the EC Treaty, which should be respected by all legislative acts and from which derogations should be kept to a strict minimum.

Amendment 2

Recital 2

(2) Certain amendments are justified in light of practical experience in order to facilitate budget implementation and the realisation of the underlying policy objectives and to adjust some procedural and documentary requirements so as to make them more proportionate to the risks and cost involved.

(2) Certain amendments are justified in light of practical experience in order to facilitate budget implementation and the realisation of the underlying policy objectives and to enshrine expressly the principle of proportionality of administrative action set forth in Article 5 of the EC Treaty, so as to make it clear that it is proportionate to the risks and cost involved.

Amendment 3

Recital 3

(3) All amendments must contribute to achieving the objectives of the Commission's reforms, should help improve or ensure sound financial management, and should enhance the protection of the Communities' financial interests against fraud and illegal activities, thus contributing to obtaining a reasonable assurance of the legality and regularity of financial operations.

(3) All amendments must contribute to achieving the objectives of the Commission's reforms, should help improve or ensure sound financial management, and should protect the Communities' financial interests more effectively against fraud and illegal activities, thus contributing to obtaining a reasonable assurance of the legality and regularity of financial operations.

Amendment 4

Recital 5 a (new)

(5a) Pursuant to point 1 of the Protocol on the application of the principles of subsidiarity and proportionality, annexed to the EC Treaty and appended to the Treaty of Amsterdam of 2 October 1997, each institution, in exercising the powers conferred on it, is required to comply with the principle of proportionality, according to which any action by the Community must not go beyond what is necessary to achieve the objectives of the Treaty.

Amendment 5

Recital 6

(6) On certain points, more efficiency and transparency is needed with regard to the application of budgetary principles, in order better to suit operational needs.

(6) Practical experience of applying the Financial Regulation has shown that, when exercising their powers in individual instances, financial actors make too little use of their discretion. Yet exercising those powers means also that they may use their discretion to decide independently, in individual instances, when a measure is proportionate within the meaning of Article 5 of the EC Treaty and the Protocol on the application of the principles of subsidiarity and proportionality, annexed to the EC Treaty and appended to the Treaty of Amsterdam of 2 October 1997.

Amendment 6

Recital 12

(12) At present, the Commission must be authorised by the budgetary authority before accepting donations, such as gifts or bequests, which involve a charge. To avoid unnecessary and cumbersome procedures, authorisations should be made compulsory only in the case of significant charges.

(12) At present, the Commission must be authorised by the budgetary authority before accepting donations, such as gifts or bequests, which involve a charge. To avoid unnecessary and cumbersome procedures, authorisations should be made compulsory where there are follow-up costs.

Amendment 7

Recital 13

(13) In relation to the principle of specification of the budget, the rules governing transfers of appropriations should be simplified and clarified on certain points because in practice they have proven cumbersome or unclear. The intention was for Article 22 of the Financial Regulation to apply to institutions other than the Commission since the Commission has its own regime. That provision should therefore be amended accordingly.

Amendment 8

Recital 14

(14) As regards the "notification procedure", the Commission and the other institutions notify their transfer proposals to the budgetary authority, which may invoke the normal procedure if it wishes to raise objections. In such cases, in theory, the normal deadlines apply for the decision of the budgetary authority on the transfer. However, the text does not state when time for the purposes of the deadline is to be deemed to start running, and that omission should be remedied.

Amendment 9

Recital 16

(16) For reasons of efficiency, the Commission should be allowed to decide autonomously on transfers from the reserve in cases where no basic act, within the meaning of Article 49 of the Financial Regulation, exists for the action concerned at the time when the budget is established, but where the basic act is adopted in the course of the year.

Amendment 10

Recital 17

(17) The rules on the Commission's administrative transfers should be adapted to the new Activity-Based Budgeting (ABB) structure. Thus, the "notification procedure" should be limited to transfers between articles, within the administrative chapter of each title, which exceed 10 % of the appropriations of the year. On the other hand, transfers between articles of different titles financing expenditure of identical nature should be decided autonomously by the Commission.

Amendment 11

Recital 22 a (new)

(22a) The rules on the liability of authorising officers should be more clearly defined in the interests of greater legal certainty.

Amendment 12

Recital 27

(27) A period of limitation on the validity of claims should be introduced. The Community, unlike many of its Member States, is not subject to a period of limitation under which financial claims are extinguished after a certain period of time. Nor is the Community restricted by a period of limitation in the pursuit of its claims against third persons. The introduction of such a period of limitation in a new Article 73b corresponds to sound financial management.

(27) A period of limitation on the validity of claims should be introduced. The Community, unlike many of its Member States, is not subject to a period of limitation under which financial claims are extinguished after a certain period of time. Nor is the Community restricted by a period of limitation in the pursuit of its claims against third persons. The introduction of such a period of limitation in a new Article 73b corresponds to sound financial management. However, perpetrators of deliberate damage should not be able to invoke limitation to the same extent as other debtors. The start of the limitation period should therefore be confined to the point in time when the entire scope of a claim has been established.

Amendment 13

Recital 27 a (new)

(27a) Award procedures should, where possible and appropriate, be carried out on an interinstitutional basis so as to ease the administrative burden on smaller entities too.

Amendment 14

Recital 27 b (new)

(27b) Supply and service contract award procedures must be streamlined and brought more into line with the needs of tenderers. In this connection, attention should be paid in particular to ensuring that the principle of proportionality also extends to documentation efforts. Framework contracts should be reflected in the Financial Regulation. Competition should not be constrained as a result of unnecessarily long contractual ties in framework contracts, and small and medium-sized undertakings should not be effectively debarred right from the outset, because of their size, from contract award procedures.

Amendment 15

Recital 29

(29) The Financial Regulation rules on the exclusion of tenderers impose a stricter regime for the Community institutions than that provided for in Directive 2004/18/EC. The Financial Regulation makes no distinction between the most serious grounds for exclusion and other grounds. Directive 2004/18/EC, on the other hand, does make such a distinction and that distinction should be made available for the Community institutions. Articles 93 and 94 of the Financial Regulation should provide for mandatory exclusion in the most serious cases, while allowing the possibility for the contracting authority, on the basis of a risk assessment, to add other cases of exclusion. The same distinction should be made in Article 114 of the Financial Regulation, as regards grants. The rules on penalties, laid down in Article 96 of that Regulation, should be adjusted accordingly.

(29) The Financial Regulation rules on the exclusion of tenderers impose a stricter regime for the Community institutions than that provided for in Directive 2004/18/EC. The exclusion of tenderers should be subject to the principle of proportionality. The exclusion period should be limited to no more than 10 years so as to prevent disproportionate penalties. Exclusions for more than five years should take place only on the basis of an unappealable judgment.

Amendment 16

Recital 30 a (new)

(30a) The requirement to provide supporting documents should be confined to what is necessary. The documentation effort required should be based, inter alia, on the value of the contract concerned.

Amendment 17

Recital 30 b (new)

(30b) To preserve the institutions' reputation for administrative fairness and propriety, Community servants involved in grant procedures should always notify their superiors accordingly so as to rule out any conflict of interest.

Amendment 18

Recital 32 a (new)

(32a) Tenderers who have been passed over should have effective legal safeguards, which the Member States are also required to provide. To that end, independent vetting bodies should be set up which can verify award procedures quickly, without disproportionate effort, and provide effective legal protection.

Amendment 19

Recital 32 b (new)

(32b) Protecting the Union's financial interests must not demand too much of contractors. The provision of security by contractors should therefore be restricted to instances where this is justified and must not go beyond the purpose of providing the security.

Amendment 20

Recital 34

(34) As regards grants, simplification of the rules is needed. Requirements for checks and guarantees should be more proportionate to the financial risks involved. Some essential changes need to be made first in the Financial Regulation, so that detailed provision can later be made in the implementing rules. The scope of grants needs to be clarified in Article 108 of the Financial Regulation, in particular as regards financing related to loan activities and share-holdings. The principle of proportionality has to be added.

(34) As regards grants, simplification of the rules is needed. The requirements which the administrative procedure imposes on the parties involved in it must be proportionate at all times. Accordingly, unsuccessful applications should be screened out at the earliest possible stage in the procedure, in order to spare applicants needless efforts. The scope of grants needs to be clarified in Article 108 of the Financial Regulation, in particular as regards financing related to loan activities and share-holdings. Particularly in the case of small amounts, it must be possible to provide assistance on the basis of an individual decision instead of a voluminous, complex assistance agreement.

Amendment 21

Recital 36

(36) The rule that grants should be awarded on the basis of calls for proposals has proved its worth. Experience has shown, however, that in certain situations the nature of the action leaves no choice in the selection of beneficiaries, and Article 110 of the Financial Regulation should expressly recognise that such exceptional cases arise.

(36) The rule that grants should be awarded on the basis of calls for proposals has proved its worth. In this connection, it should be ensured in the interests of both legal and planning certainty that requirements notified to applicants at the start of the tendering process do not change during the procedure. Experience has shown, however, that in certain situations the nature of the action leaves no choice in the selection of beneficiaries, and Article 110 of the Financial Regulation should expressly recognise that such exceptional cases arise.

Amendment 22

Recital 37

(37) The rule that the same action should not give rise to more than one grant to any one beneficiary should be adjusted because some basic acts do permit Community funding to be combined and such cases may increase in future in order to ensure the effectiveness of expenditure. However, the opportunity should be taken to make clear in Article 111 of the Financial Regulation that the same costs can never be financed twice by the Community budget.

(37) The opportunity should be taken to make clear in Article 111 of the Financial Regulation that the same costs can never be financed twice by the Community budget and that cost eligibility may not exceed 100 %.

Amendment 23

Recital 39

(39) For reasons of clarity and transparency, the use of flat-rate payments should be authorised in a new Article 113a of the Financial Regulation, to co-exist with the more traditional method of reimbursing costs actually incurred.

(39) For reasons of clarity and transparency, the use of flat-rate payments should be authorised in a new Article 113a of the Financial Regulation, to co-exist with the more traditional method of reimbursing costs actually incurred. There should be a clearer definition of eligible costs.

Amendment 24

Recital 40

(40) In Article 114 of the Financial Regulation, certain restrictions on the eligibility of beneficiaries should be removed in order to allow for grants to natural persons and certain types of entity which lack legal personality.

(40) The obligation for grant beneficiaries to provide supporting documents and the penalties to which they are subject should at all times be proportionate to the risk involved. Furthermore, certain restrictions on the eligibility of beneficiaries should be removed in order to allow for grants to natural persons and certain types of entity which lack legal personality.

Amendment 25

Recital 40 a (new)

(40a) To enhance information for applicants, a joint service should be set up to deal with standardising applications for similar types of funding, providing applicants with information, and benchmarking for awarding funding.

Amendment 26

Recital 47

(47) It is necessary to allow appropriations which have been decommitted as a result of total or partial non-implementation of the projects for which they were earmarked to be made available again. However, that should be possible only under strict conditions, and only in the area of research, since research projects present a higher financial risk than those in other policy areas.

(47) Because of the special importance of research support for European Union competitiveness, it is necessary to allow commitment appropriations which have not been used or have been decommitted as a result of total or partial non-implementation of the projects for which they were earmarked to be made available again.

Amendment 27

Article 1, point 2

Article 2 (Regulation (EC, Euratom) No 1605/2002)

2. Any provision concerning the implementation of the revenue and expenditure of the budget, contained in another legislative act, must comply in particular with the budgetary principles set out in Title II.

2. Any provision concerning the implementation of the revenue and expenditure of the budget, contained in another legislative act, must comply with the budgetary principles set out in Article 268 et seq. of the EC Treaty.

Amendment 28

Article 1, point 2

Article 2, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

Amendment 29

Article 1, point 2

Article 2, paragraph 1 b (new) (Regulation (EC, Euratom) No 1605/2002)

(1b) If the Commission, in a proposal for another legislative act, intends to depart from the provisions of the Financial Regulation, it must explicitly and separately inform the European Parliament committee responsible for budgetary matters of this fact.

Amendment 136

Article 1, point 5 a (new)

Article 9, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(5a) In Article 9, paragraph 1 is replaced by the following:

1. Appropriations which have not been used at the end of the financial year for which they were entered shall in principle be cancelled.

However, they may be carried over to the following year only, by a decision taken by the institution concerned by 15 February at the latest, in accordance with paragraphs 2 and 3, or be carried over automatically in accordance with paragraph 4.

However, commitment appropriations not used and the commitment appropriations corresponding to the amount of the commitments decommitted as a result of total or partial non-implementation of projects for which they were earmarked, may, in duly substantiated cases provided for by a joint decision of the budgetary authority, by a basic act or by agreement of the budgetary authority, be made available again, up to a maximum amount of […] euro a year, where it is essential to carry out the programmes originally planned or to have funds available to finance new actions.

Amendment 30

Article 1, point 6

Article 12, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 31

Article 1, point 6 a (new)

Article 14, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(6a) In Article 14, paragraph 2 is replaced by the following:

2. Without prejudice to Article 46(1)(4), the European Community and the European Atomic Energy Community, as well as the bodies set up by the Communities as referred to in Article 185, may not raise loans except in the case of direct financing necessary for the acquisition of immovable property intended to be used by the institutions on which the budgetary authority has issued a favourable opinion under Article 179(3).

Amendment 32

Article 1, point 7

Article 16, paragraph 2, sentence 2 (new) (Regulation (EC, Euratom) No 1605/2002)

Amendment 33

Article 1, point 9

Article 19, paragraph 2, sentence 1 (Regulation (EC, Euratom) No 1605/2002)

Amendment 34

Article 1, point 10

Article 22, paragraph 1, point (ba) (new) (Regulation (EC, Euratom) No 1605/2002)

(ba) from one article to another without limit.

Amendment 35

Article 1, point 10

Article 22, paragraph 2, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

2. Three weeks before making the transfers referred to in paragraph 1, the institutions shall inform the budgetary authority and the Commission of their intentions. In the event of duly substantiated reasons being raised within this period by either branch of the budgetary authority, the procedure laid down in Article 24 shall apply.

2. Three weeks before making the transfers referred to in paragraph 1, the institutions shall inform the budgetary authority of their intentions. In the event of reasons being raised within this period by either branch of the budgetary authority, the procedure laid down in Article 24 shall apply.

Amendment 36

Article 1, point 10

Article 22, paragraph 2, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 37

Article 1, point 10

Article 22, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

3. Any institution other than the Commission may propose to the budgetary authority, within its own section of the budget, transfers from one title to another exceeding the limit of 10 % of the appropriations for the financial year on the line from which the transfer is to be made. The budgetary authority shall inform the Commission accordingly. Those transfers shall be subject to the procedure laid down in Article 24.

3. Any institution other than the Commission may propose to the budgetary authority, within its own section of the budget, transfers from one title to another exceeding the limit of 10 % of the appropriations for the financial year on the line from which the transfer is to be made. Those transfers shall be subject to the procedure laid down in Article 24.

Amendment 38

Article 1, point 10

Article 22, paragraph 4 (Regulation (EC, Euratom) No 1605/2002)

4. Any institution other than the Commission may, within its own section of the budget, make transfers within chapters without first informing the budgetary authority.

Amendment 39

Article 1, point 11(a) (i)

Article 23, paragraph 1, point b (Regulation (EC, Euratom) No 1605/2002)

(i) point (b) is replaced by the following:

(b) as regards staff and operating expenditure, transfer appropriations from one title to another only between articles financing expenditure of identical nature;

Amendment 40

Article 1, point 11(a) (ii)

Article 23, paragraph 1, point d (Regulation (EC, Euratom) No 1605/2002)

(ii) the following point (d) is added:

(d) transfer appropriations from the "provisions" title referred to in Article 43 for the cases where no basic act exists for the action concerned when the budget is established but is adopted during the course of the budget year;

Amendment 41

Article 1, point 11(a) (iii)

Article 23, paragraph 1, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

(iii) the second subparagraph is deleted;

(iii) the second subparagraph is replaced by the following:

Three weeks before making the transfers referred to in points (b) and (c), the Commission shall inform the budgetary authority of its decision. In the event of duly justified reasons being raised within this period by either branch of the budgetary authority, the procedure laid down in Article 24 shall apply.

Three months before the end of the budgetary year, the Commission shall report to the budgetary authority on the implementation of expenditure referred to in point (b), and shall announce its intention to make transfers regarding staff, external staff and other agents in accordance with point (b). If, within the six weeks following the announcement, the budgetary authority does not object to the intended transfers, the Commission may proceed and shall inform the budgetary authority of the transfers in the following month.

Amendment 42

Article 1, point 11(b)

Article 23, paragraph 1 a (Regulation (EC, Euratom) No 1605/2002)

(b) the following paragraph 1a is inserted:

1a. The Commission shall inform the budgetary authority three weeks before making the following:

(a) transfers between articles within the chapter corresponding to administrative appropriations of the same title which exceed 10 % of the appropriations of the year shown on the article from which the transfer is made;

(b) transfers referred to in point (c) of paragraph 1.

In the event of duly substantiated reasons being raised within that three-week period by either branch of the budgetary authority, the procedure laid down in Article 24 shall apply. The budgetary authority shall take decisions on these transfers within the time limits laid down in Article 24, which shall be deemed to begin on the date on which the budgetary authority was informed by the Commission of the intended transfer.

Amendment 43

Article 1, point 11(c)

Article 23, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(c) in paragraph 2, "paragraph 1(c)" is replaced by "paragraphs 1 and 1a".

Amendment 44

Article 1, point 12

Article 26, paragraph 2, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

(12) In Article 26(2), the first subparagraph is replaced by the following:

Decisions on transfers to allow the utilisation of the reserve for emergency aid shall be taken by the budgetary authority on a proposal from the Commission. A separate proposal must be submitted for each individual operation.

Amendment 45

Article 1, point 12 a (new)

Article 27, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(12a) In Article 27, paragraph 1 is replaced by the following:

1. Budget appropriations shall be used in accordance with the principle of sound financial management, namely in accordance with the principles of economy, efficiency, effectiveness and proportionality.

Amendment 46

Article 1, point 12 b (new)

Article 27, paragraph 2, subparagraph 3 a (new) (Regulation (EC, Euratom) No 1605/2002)

(12b) In Article 27(2), the following subparagraph is added:

The principle of proportionality is concerned with an appropriate relationship between effort, including effort on checks, and the amounts and risks involved.

Amendment 47

Article 1, point 12 c (new)

Article 27, paragraph 4 a (new) (Regulation (EC, Euratom) No 1605/2002)

(12c) In Article 27, the following paragraph is added:

4a. For carrying out programmes and activities, procedure shall be governed by their content. The requirements of this Article shall be specified in the implementing rules.

Amendment 48

Article 1, point 12 d (new)

Article 27, paragraph 4 b (new) (Regulation (EC, Euratom) No 1605/2002)

(12d) In Article 27, the following paragraph is added:

4b. Institutions shall set up systems for measuring and comparing efficiency and effectiveness as regards procurement procedures and the procedure for the award of grants.

Amendment 49

Article 1, point 12 e (new)

Article 28, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(12e) In Article 28, paragraph 2 shall be replaced by the following:

2. During the budgetary procedure, institutions and other bodies shall provide the necessary information for a comparison between changes in the appropriations required and the initial forecasts made in the financial statements. This information shall include progress made and the stage reached by the legislative authority in its consideration of proposals presented. The appropriations required shall, where appropriate, be revised in the light of the progress of deliberations on the basic act.

Amendment 50

Article 1, point 12 f (new)

Article 28, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

(12f) In Article 28, paragraph 3 shall be replaced by the following:

3. In order to prevent risk of fraud or irregularity, institutions and other bodies shall record in the financial statement any information regarding existing and planned fraud prevention and protection measures.

Amendment 51

Article 1, point 13

Article 29, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(13) In Article 29, paragraph 2 is replaced by the following:

(13) Article 29 is replaced by the following:

Article 29

1. The budget shall be established and implemented and the accounts presented in compliance with the principle of transparency.

2. The President of the European Parliament shall have the budget and amending budgets, as finally adopted, published in the Official Journal of the European Union.

2. The President of the European Parliament shall have the budget and amending budgets, as finally adopted, published in the Official Journal of the European Union.

Amendment 52

Article 1, point 13 a (new)

Chapter 9 and Article 30a (new) (Regulation (EC, Euratom) No 1605/2002)

(13a) The following Chapter and Article are added in Title II of Part One:

Chapter 9

Principle of effective and efficient internal control

Article 30a

1. The implementation of the budget shall be ensured through effective and efficient internal control in accordance with each management mode.

2. For the purpose of implementation of the budget, internal control is defined as a process applicable at all levels in the chain of control and designed to provide reasonable assurance on the achievement of the following objectives:

(a) effectiveness and efficiency of operations,

(b) reliability of financial reporting,

(c) safeguarding of assets and information, and prevention and detection of fraud and irregularities,

(d) adequate management of the risks related to the legality and regularity of the underlying transactions.

Amendment 53

Article 1, point 16(a)

Article 43, paragraph 1, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

(a) in the second subparagraph of paragraph 1, "Article 24" is replaced by "Articles 23 and 24";

Amendment 54

Article 1, point 16(b)

Article 43, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(b) in paragraph 2, "Article 24" is replaced by "Articles 23 and 24".

Amendment 55

Article 1, point 19(a) (ii)

Article 46, paragraph 1, point (1) (f) (Regulation (EC, Euratom) No 1605/2002)

(ii) point (f) is deleted;

Amendment 56

Article 1, point 19(b)

Article 46, paragraph 1, point (2) (Regulation (EC, Euratom) No 1605/2002)

(b) point (2) is replaced by the following:

2. In the section for each institution, the revenue and expenditure shall be shown in the same structure as in point 1;

Amendment 57

Article 1, point 19(c)

Article 46, paragraph 1, point (3) (c) (Regulation (EC, Euratom) No 1605/2002)

(c) in point (3), point (c) is replaced by the following:

(c) as regards scientific and technical staff, the classification may be based on groups of grades, in accordance with the conditions laid down in each budget; the establishment plan must specify the number of highly qualified technical or scientific personnel who are accorded special advantages under the specific provisions of the Staff Regulations;

Amendment 58

Article 1, point 19(d)

Article 46, paragraph 1, point 5 (Regulation (EC, Euratom) No 1605/2002)

(d) point (5) is replaced by the following:

(5) the budget lines under revenue and expenditure necessary for implementing the Guarantee Fund for external actions.

Amendment 59

Article 1, point 20 a (new)

Article 48, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(20a) In Article 48, paragraph 1 shall be replaced by the following:

1. The institutions shall implement the revenue and expenditure of the budget in accordance with this Regulation, on their own responsibility and within the limits of the appropriations authorised.

Amendment 60

Article 1, point 22(a)

Article 53, paragraph 3, subparagraph 2, introduction (Regulation (EC, Euratom) No 1605/2002)

Amendment 61

Article 1, point 22(a)

Article 53, paragraph 3, subparagraph 2, point (b) (Regulation (EC, Euratom) No 1605/2002)

(b) prevent and deal with irregularities and fraud;

(b) prevent and deal with irregularities, mismanagement and fraud;

Amendment 62

Article 1, point 23(b) (i) (new)

Article 54, paragraph 2, introduction (Regulation (EC, Euratom) No 1605/2002)

(i) the introduction is replaced by the following:

2. Where the Commission implements the budget on a centralised and indirect basis, pursuant to Article 53(2), or pursuant to Article 53(4), it may, subject to compliance with the restrictions laid down in paragraph 1, delegate sovereign tasks, in particular budget implementation tasks, to the following bodies:

Amendment 63

Article 1, point 23 (c a) (new)

Article 54, paragraph 3 a (new) (Regulation (EC, Euratom) No 1605/2002)

(ca) the following paragraph is added:

3a. When exercising the powers conferred on it by the Commission pursuant to Article 50, the European Parliament may, in keeping with the provisions of its Rules of Procedure, and by adopting specific rules, delegate implementation tasks to its political groups for well defined appropriations.

This specific regulation may not deviate from Article 56, unless the specific operating needs of the political groups require it.

Amendment 64

Article 1, point 24

Article 56, paragraph 1, introduction (Regulation (EC, Euratom) No 1605/2002)

1. Where the Commission implements the budget by indirect centralised management, it shall first obtain evidence of the existence, relevance and proper operation within the entities to which it entrusts implementation, in accordance with the rules of sound financial management, of the following:

1. Where the Commission or the European Parliament implements the budget by indirect centralised management, they shall first obtain evidence of the existence, relevance and proper operation within the entities to which they entrust implementation, in accordance with the rules of sound financial management, of the following:

Amendment 65

Article 1, point 24

Article 56, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

3. The Commission shall ensure supervision, evaluation and control of the implementation of the tasks entrusted. It shall take the equivalence of control systems into account when it carries out controls using its own control systems.

3. The Commission and/or the European Parliament shall ensure supervision, evaluation and control of the implementation of the tasks entrusted. They shall take the equivalence of control systems into account when they carry out controls using their own control systems.

Amendment 66

Article 1, point 27

Article 60, paragraph 7, sentence 1 (Regulation (EC, Euratom) No 1605/2002)

(27) In Article 60, the first sentence of paragraph 7 is replaced by the following:

7. The authorising officer by delegation shall report to his/her institution on the performance of his/her duties in the form of an annual activity report together with financial and management information and a declaration of assurance certifying that the information contained in the report presents a true and fair view.

(27) In Article 60, paragraph 7 is replaced by the following:

7. The authorising officer by delegation shall report to his/her institution on the performance of his/her duties in the form of an annual activity report together with financial and management information and any reservations in relation to the latter accompanied by a declaration of assurance certifying that the information contained in the report presents a true and fair view.

Amendment 67

Article 1, point 28 (a) (new)

Article 61, paragraph 1, point (e a) (new) (Regulation (EC, Euratom) No 1605/2002)

(a) in paragraph 1, the following point (ea) is inserted:

(ea) the effective functioning of these systems;

Amendment 68

Article 1, point 28 (a)

Article 61, paragraph 2 a (Regulation (EC, Euratom) No 1605/2002)

2a. The accounting officer shall prepare the accounts on the basis of the information presented under paragraph 2. The final accounts drawn up under Article 129(2) and (3) shall be accompanied by a certificate established by the accounting officer, by which he declares that they were prepared in accordance with Title VII and with the accounting principles, rules and methods set out in annex to the financial statements.

2a. Before their adoption by the institution, the accounting officer shall sign off the accounts, certifying that they present a true and fair view of the financial situation of the institution.

Amendment 69

Article 1, point 32 (a)

Article 66, paragraph 1, sentence 1 (Regulation (EC, Euratom) No 1605/2002)

(a) in paragraph 1, the first sentence is replaced by the following:

(a) paragraph 1 is replaced by the following:

1. The authorising officer shall be liable for payment of compensation as laid down in the Staff Regulations.

The requirement to pay compensation shall apply in particular if:

- the authorising officer, whether intentionally or through serious negligence on his part, determines entitlements to be recovered or issues recovery orders, commits expenditure or signs a payment order without complying with this Regulation and the implementing rules,

- the authorising officer, whether intentionally or through serious negligence on his part, omits to draw up a document establishing a debt, neglects to issue a recovery order or is late in issuing it or is late in issuing a payment order, thereby rendering the institution liable to civil action by third parties.

Amendment 70

Article 1, point 32 (b a) (new)

Article 66, paragraph 4, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

(ba) in paragraph 4, the first subparagraph is replaced by the following:

4. Each institution shall set up or participate in the joint establishment of a specialised financial irregularities panel which shall function independently and determine whether a financial irregularity has occurred and what the consequences, if any, should be. Joint panels may be set up by a group of institutions. The members of a specialised panel may be appointed from any institution.

Amendment 71

Article 1, point 33 a (new)

Article 72, paragraph 2 a (new) (Regulation (EC, Euratom) No 1605/2002)

(33a) In Article 72, the following paragraph is added:

2a. Unduly paid amounts belong to the Community budget and should be recovered, taking into account the principle of proportionality, and entered in the budget.

When recovery procedures are dealt with by the Member States or by other institutions, the Community budget may be used to reimburse the costs associated with these recoveries. Such reimbursements shall be governed by the implementing rules.

Amendment 72

Article 1, point 35

Article 73b (Regulation (EC, Euratom) No 1605/2002)

Amendment 73

Article 1, point 35 a (new)

Article 74, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(35a) In Article 74, the first paragraph is replaced by the following:

Revenue received by way of fines, agreements, periodic penalty payments and other penalties, amounts recovered and any accrued interest shall not be finally recorded as budgetary revenue as long as the decisions imposing them may be annulled by the Court of Justice.

Amendment 74

Article 1, point 37 a (new)

Article 79, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

(37a) In Article 79, the following paragraph is added:

Claims for payment shall give rise to payments by the Commission only in duly substantiated cases.

Amendment 75

Article 1, point 37 b (new)

Article 80, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

(37b) In Article 80, the following paragraph is added:

Where periodic payments are made with regard to services rendered or goods delivered and subject to his risk analysis, the authorising officer may order the application of a direct debit system.

Amendment 76

Article 1, point 37 c (new)

Article 83, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

(37c) In Article 83, the following paragraph is added:

The institutions shall submit to the budgetary authority a report on compliance with the time-limits laid down in the implementing rules and on the suspension of those time-limits.

Amendment 77

Article 1, point 39 (a a) (new)

Article 88, paragraph 1, subparagraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

(aa) in paragraph 1, the following subparagraph is added after the first subparagraph:

A start may be made on implementing the contract only after it has been signed.

Amendment 78

Article 1, point 39 a (new)

Article 89, paragraphs 2 a and 2 b (new) (Regulation (EC, Euratom) No 1605/2002)

(39a) In Article 89, the following paragraphs are added:

2a. With a view to minimising marginal costs and avoiding parallel procurement procedures, the contracting authority shall take appropriate measures to ensure that procurement procedures are carried out on an interinstitutional basis.

2b. Due account shall be taken of the interests of small and medium-sized undertakings primarily by splitting contracts, where appropriate, into specialist or part-lots. The thresholds laid down in Articles 105 and 167 may not be circumvented by means of such splitting.

Amendment 79

Article 1, point 39 b (new)

Article 90, paragraph 1, subparagraph 1, sentence 2 (new) (Regulation (EC, Euratom) No 1605/2002)

(39b) In Article 90(1), the following sentence is added to the first subparagraph:

This shall also apply to contracts concluded under a framework contract if, as a result of the conclusion of an individual contract or of the aggregate volume of the contracts concluded under the framework contract, the thresholds provided for in Articles 105 and 167 are exceeded.

Amendment 80

Article 1, point 41 a (new)

Article 91 a (new) (Regulation (EC, Euratom) No 1605/2002)

(41a) The following article is inserted:

Article 91a

1. If the contracting authority establishes that:

(a) the likely administrative costs of implementing several simultaneous or successive procurement procedures in respect of similar items exceed the likely savings to be achieved by implementing those procurement procedures and are therefore inefficient, or

(b) the subject of the contract necessitates such a step, and

(c) competition would not be disproportionately restricted as a result,

it may decide to conclude a framework contract. The authorising officer must include a copy of the duly substantiated decision to conclude a framework contract in the relevant files.

2. The duration of the framework contract for the provision of services may not exceed 24 months, although tacit extension for a period of up to 24 months shall be admissible (basic duration). Provision may be made for partial termination, provided that this is consistent with the purpose of the contract.

3. The contract may be tacitly extended only if the requirements laid down in paragraph 1 have been met at the time the decision to extend the contract is taken. The authorising officer must check that the requirements have been met and include a document setting out the results in the relevant files.

4. If, on the basis of an assessment carried out at the time when the contract is concluded, the purpose of the contract can be achieved only if the contract is concluded for a period in excess of the basic duration, the authorising officer must also include a document setting out the reasons for exceeding that basic duration in the relevant files.

5. If the contract is for the supply of goods, when the framework contract is concluded, and notwithstanding the requirements laid down in paragraph 1, suitable arrangements must be made to ensure that the contracting authority does not suffer any economic disadvantage for the period of the framework contract.

Amendment 81

Article 1, point 41 b (new)

Article 92 (Regulation (EC, Euratom) No 1605/2002)

(41b) Article 92 is replaced by the following:

Article 92

1. A full, clear and precise description of the subject of the contract must be given in the documents relating to the invitation to tender.

2. The selection criteria for evaluating the capability of candidates or tenderers and the award criteria for evaluating the content of the tenders shall be defined in advance and set out in the call for tender.

3. Candidates or tenderers shall be informed in advance of the grounds for exclusion (Articles 93 and 94).

4. Subject to the provisions of Article 93a, candidates' or tenderers' attention shall be drawn to the requirement that they must notify the contracting authority without delay if one or more of the exclusion criteria applies to them and, if necessary, confirm that none of the criteria applies. Attention shall be drawn to the legal implications of Article 96.

5. In the case of a framework contract, candidates' or tenderers' attention shall be drawn to the fact that other institutions are also entitled to receive deliveries on the basis of the terms and conditions laid down in the framework contract.

Amendment 82

Article 1, point 42

Article 93, paragraph 1, point (a) (Regulation (EC, Euratom) No 1605/2002)

(a) they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation, money laundering or any other illegal activity detrimental to the Communities' financial interests;

(a) during a period of five years prior to the date on which the invitation to tender is issued they have been the subject of a judgment which has the force of res judicata for fraud, corruption, involvement in a criminal organisation, money laundering or a similar criminal activity; the duration of the exclusion may be extended to up to 10 years if the candidate or tenderer has been the subject of a judgment which has the force of res judicata for an action detrimental to the Communities' financial interests;

Amendment 83

Article 1, point 42

Article 93, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

3. The situations of exclusion shall be defined in advance and communicated to candidates or tenderers.

Amendment 84

Article 1, point 42

Article 93, paragraph 4, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

4. Candidates or tenderers must certify that they are not in one of the situations listed in paragraph 1 and, as appropriate, that they are not in one of the situations listed in paragraph 2.

4. Subject to the provisions of Article 93a, candidates or tenderers must certify that they are not in one of the situations listed in paragraph 1 and, as appropriate, that they are not in one of the situations listed in paragraph 2.

Amendment 85

Article 1, point 42

Article 93, paragraph 4, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 86

Article 1, point 42

Article 93a (new) (Regulation (EC, Euratom) No 1605/2002)

Article 93a

1. Notwithstanding the provisions of Article 89, at all stages of the procurement procedure administrative requirements and requirements to produce supporting documents must be clearly defined and directly linked to the procedure in question. In particular:

(a) except in the case of contracts involving small amounts for which a single tender lodged under the negotiated procedure is admissible, authorising officers may, on the basis of their risk assessment, waive the requirement to supply one or more supporting documents;

(b) in the case of other procurement procedures conducted pursuant to Article 91(3), the contracting authority may require a certificate and/or other supporting documents which prove that the candidate is not in one of the situations listed in Articles 93 and 94 and that he meets the other award criteria;

(c) in all other cases, the contracting authority may require candidates or tenderers to produce those supporting documents which it regards as essential to the implementation of the procurement procedure.

In addition, at the request of the contracting authority, candidates or tenderers must state who owns the legal entity submitting a tender, or who makes up its management, or who exercises control or power of representation.

2. Notwithstanding the provisions of Section 4, payments on account may not be retained on the sole grounds that no use was made of the possibility of requiring candidates or tenderers to produce supporting documents.

Amendment 87

Article 1, point 42

Article 94, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

Amendment 88

Article 1, point 43

Article 95, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(43) In Article 95, the following paragraph is added:

However, for cost-effectiveness reasons, two or more institutions may agree to use a common database.

(43) Article 95 is replaced by the following:

Article 95

1. Each institution shall communicate the details of candidates and tenderers who are in one of the situations described in Articles 93 and 94 to a central database operated by the Commission.

2. The database shall be consulted by authorising officers in all institutions and agencies before awarding a tender. Access to the database shall be granted also to the relevant authorities of the Member States. Access may be granted to third countries and international organisations if this is necessary on important public interest grounds without prejudice to Community rules on the processing of personal data.

3. Member States shall communicate to the Commission details of economic operators in one of the situations referred to in Article 93(1)(a) and (2)(b) and (c) where the conduct of these operators was detrimental to the Communities' financial interests and the Communities have not already been part of judicial proceedings. Member States' authorities shall consult the Commission's databases when awarding a contract if financial resources from EU funds are involved and use the information accordingly.

Amendment 89

Article 1, point 44

Article 96, paragraph 2 a (new) (Regulation (EC, Euratom) No 1605/2002)

2a. A candidate or tenderer may be excluded for a period of more than five years only on the basis of a judgment or analogous decision against the candidate or tenderer which has the force of res judicata for an action justifying exclusion which is detrimental to the Communities' interests.

Amendment 90

Article 1, point 44 a (new)

Bofore Article 97, Section 3a (new) (Regulation (EC, Euratom) No 1605/2002)

(44a) Before Article 97, the following new Section 3a is inserted:

Section 3a

Rights of parties involved in procurement procedures

Amendment 91

Article 1, point 44 b (new)

Article 97, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(44b) In Article 97, paragraph 1 is deleted.

Amendment 92

Article 1, point 46 (a a) (new)

Article 98, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(aa) paragraph 2 is replaced by the following:

2. Only in duly justified cases, the contracting authority may require tenderers, as provided in the implementing rules, to lodge a security in advance as a guarantee that the bids made will not be withdrawn.

Amendment 93

Article 1, point 46 a (new)

Article 100, paragraph 2 a (new) (Regulation (EC, Euratom) No 1605/2002)

(46a) In Article 100, the following paragraph is added:

2a. The contract may not be signed prior to the expiry of a period of 14 weekdays commencing on the date on which the candidate or tenderer was notified of the rejection of its tender (paragraph 2, first phrase), provided that the Communities would not suffer a significant financial loss as a result. The time-limit shall begin to run only once the candidate or tenderer has been informed in writing of the legal remedies available against the decision, in particular as regards the instance, time-limit and form. A contract signed prior to expiry of the time-limit shall be null and void.

Amendment 94

Article 1, point 46 b (new)

Article 100 a (new) (Regulation (EC, Euratom) No 1605/2002)

(46b) The following article is inserted:

Article 100a

1. The Commission shall take the necessary measures to ensure that, as regards procedures for the award of public contracts falling within the scope of the Financial Regulation, decisions taken by the contracting authorities may be reviewed effectively and, in particular, as rapidly as possible in accordance with the conditions set out, in particular, in Article 100b(7) in order to determine whether such decisions have infringed Community law in the field of public procurement or other provisions implementing that law.

2. The Commission shall ensure that the review procedure is available, in accordance with conditions to be laid down in the implementing rules, at least to any person having or having had an interest in obtaining a particular public supply or public works contract and who has been or risks being harmed by an alleged infringement. In particular, the Commission may require that the person seeking the review must have previously notified the contracting authority of the alleged infringement and of his intention to seek review.

Amendment 95

Article 1, point 46 c (new)

Article 100 b (new) (Regulation (EC, Euratom) No 1605/2002)

(46c) The following article is inserted:

Article 100b

1. The Commission shall ensure that the measures taken concerning the review procedures specified in Article 100a include provision for the powers required to:

(a) take, at the earliest opportunity and by way of interlocutory procedures, interim measures with the aim of correcting the alleged infringement or preventing further damage to the interests concerned, including measures to suspend or to ensure the suspension of the procedure for the award of a public contract or the implementation of any decision by the contracting authority;

(b) either set aside or ensure the setting aside of decisions taken unlawfully, including the removal of discriminatory technical, economic or financial specifications in the invitation to tender, the contract documents or in any other document relating to the contract award procedure;

(c) award damages to persons harmed by an infringement.

2. The powers specified in paragraph 1 may be conferred on separate bodies responsible for different aspects of the review procedure.

3. Review procedures need not in themselves have an automatic suspensive effect on the contract award procedures to which they relate.

4. The Commission may provide that when considering whether to order interim measures the body responsible may take into account the probable consequences of the measures for all interests likely to be harmed, as well as the public interest, and may decide not to grant such measures where their negative consequences could exceed their benefits. A decision not to grant interim measures shall not prejudice any other claim of the person seeking these measures.

5. The Commission may provide that where damages are claimed on the grounds that a decision was taken unlawfully, the contested decision must first be set aside by a body having the necessary powers.

6. The effects of the exercise of the powers referred to in paragraph 1 on a contract concluded subsequent to its award shall be laid down in the implementing rules.

Furthermore, except where a decision must be set aside prior to the award of damages, the Commission may provide that, after the conclusion of a contract following its award, the powers of the body responsible for the review procedures shall be limited to awarding damages to any person harmed by an infringement.

7. The Commission shall ensure that decisions taken by bodies responsible for review procedures can be effectively enforced.

8. Where bodies responsible for review procedures are not judicial in character, written reasons for their decisions shall always be given. Furthermore, in such a case, provision must be made to guarantee procedures whereby any allegedly illegal measure taken by the review body or any alleged defect in the exercise of the powers conferred on it can be the subject of judicial review or review by another body which is a court or tribunal within the meaning of Article 234 of the EC Treaty and independent of both the contracting authority and the review body.

The members of such an independent body shall be appointed and leave office under the same conditions as members of the judiciary as regards the authority responsible for their appointment, their period of office, and their removal. At least the President of this independent body shall have the same legal and professional qualifications as members of the judiciary. The independent body shall take its decisions following a procedure in which both sides are heard, and these decisions shall, by means determined by the Commission, be legally binding.

Amendment 96

Article 1, point 46 d (new)

Article 102 (Regulation (EC, Euratom) No 1605/2002)

(46d) Article 102 is replaced by the following:

Article 102

In certain duly substantiated cases, the contracting authority may require contractors to lodge a guarantee in advance in order to:

(a) ensure full performance of the contract;

(b) limit the financial risks connected with pre-financing and payments on account. In the case of payments on account, guarantees shall be required only if the payment does not relate to supplies already delivered or services provided on the basis of instalments agreed in advance.

Amendment 97

Article 1, point 50 (a) (new)

Article 108, paragraph 1, introduction (Regulation (EC, Euratom) No 1605/2002)

(a) in paragraph 1, the introduction is replaced by the following:

1. Grants are direct financial contributions, by way of donation, from the budget of the European Communities in order to finance:

Amendment 98

Article 1, point 50(a a) (new)

Article 108, paragraph 1, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

(aa) in paragraph 1, the second subparagraph is replaced by the following:

Grants shall be the subject of a written award agreement or an award decision to be notified to the applicant. The decision to award a grant may lay down terms and conditions, requirements or time-limits provided that those provisions could also have been the subject of a grant award agreement.

Amendment 99

Article 1, point 50 (a)

Article 108, paragraph 2, points g a and g b (new) (Regulation (EC, Euratom) No 1605/2002)

(ga) expenditure on organisations consisting of members and former members and staff and former staff of an Institution that:

- promote the interests or support the functioning of the institution; and/or

- organise cultural, sporting, social and other activities for the benefit of the institution and/or its members and former members and staff and former staff; and

(gb) expenditure in the framework of cooperation with third persons, not governed by the provisions on procurement, and related to the information policy of the institution.

These categories are considered administrative expenditure within the meaning of Article 49. They shall be dealt with in a separate budget item.

Amendment 100

Article 1, point 52

Article 109, paragraph 1, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 101

Article 1, point 52

Article 109, paragraph 3, point d (Regulation (EC, Euratom) No 1605/2002)

(d) low-value grants taking one of the forms provided for in points (b) or (c) of Article 113a(1), or a combination thereof, in accordance with the implementing rules.

(d) grants taking one of the forms provided for in points (b) or (c) of Article 113a(1), or a combination thereof, in accordance with the implementing rules.

Amendment 102

Article 1, point 52

Article 109, paragraph 3, point (d a) (new) (Regulation (EC, Euratom) No 1605/2002)

(da) own resources, in particular contributions and membership fees, aggregated in the annual operations of a political party at European level in accordance with Article 2(1) and (2) of Regulation (EC) No 2004/2003 [2], which exceed the 25 % of eligible cost to be borne by the beneficiary according to Article 10(2) of that Regulation.

Amendement 103

Article 1, point 52 a (new)

Article 109 a (new) (Regulation (EC, Euratom) No 1605/2002)

(52a) The following Article is inserted:

Article 109a

A joint service shall have the task of providing information and advice to applicants. In particular, this service shall:

- lay down joint standards for application forms for similar grants and monitor the size and readability of the application forms,

- supply information to potential applicants (in particular by means of seminars and the provision of handbooks), and

- maintain a database with the help of which the Commission can notify applicants.

Amendment 104

Article 1, point 52 b (new)

Article 110, paragraph 1, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

(52b) In Article 110(1), the first subparagraph is replaced by the following:

1. Grants shall be the subject of an annual programme, to be published at the start of the financial year, and at all events not later than 15 March. This provision shall not apply to crisis management aid and humanitarian aid operations.

Operating grants as defined in Article 112 shall also be the subject of an annual programme, which may already be published during the previous year, subject to the availability of appropriations in the following year.

Amendment 105

Article 1, point 53

Article 110, paragraph 1, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendement 106

Article 1, point 53 a (new)

Article 110, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(53a) In Article 110, paragraph 2 is replaced by the following:

2. All grants awarded in the course of a financial year shall be published annually, where appropriate by electronic means, with due observance of the requirements of confidentiality and security.

Amendment 107

Article 1, point 53 b (new)

Article 110, paragraph 2 a (new) (Regulation (EC, Euratom) No 1605/2002)

(53b) In Article 110, the following paragraph is added:

2a. Simultaneously with publication pursuant to paragraph 2, the Commission shall forward to the European Parliament a report on:

(a) the number of applicants in the past year;

(b) the number and percentage of successful applications per call for proposals and per subsidising agency;

(c) the mean duration of the procedure from publication of the call for proposals to the conclusion of the grant agreement or the issuing of a decision on awarding a grant per call for proposals and per subsidising agency;

(d) the mean period until the final assessment and final payment (Article 119(1)).

Amendment 108

Article 1, point 54

Article 111 (Regulation (EC, Euratom) No 1605/2002)

1. One action may give rise to the award of only one grant from the budget to any one beneficiary, except where otherwise authorised by the basic acts concerned.

2. A beneficiary may be awarded only one operating grant from the budget per financial year. The applicant shall immediately inform the authorising officers of any multiple applications and multiple grants for the project.

3. In any case, the same costs shall not be financed twice by the budget. On no account may the combined total costs eligible for financing be exceeded.

Amendment 109

Article 1, point 55 a (new)

Article 113, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(55a) In Article 113, paragraph 2 is replaced by the following:

2. Unless otherwise specified in the basic act with regard to bodies pursuing an objective of general European interest and notwithstanding the provisions governing the award of grants as lump sums or on the basis of flat-rate financing (Article 113a(1)(b) and (c)), when operating grants are renewed, they shall be gradually decreased in a proportionate and equitable manner.

Amendment 110

Article 1, point 56

Article 113 a, paragraph 1, point a (Regulation (EC, Euratom) No 1605/2002)

(a) reimbursement of a specified proportion of the eligible costs actually incurred;

(a) reimbursement of a maximum or specified proportion of the eligible costs actually incurred;

Amendment 111

Article 1, point 56

Article 113 a, paragraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

1a. The following, in particular, may be claimed as costs eligible for financing:

(a) the costs of a bank guarantee or comparable surety to be lodged by the beneficiary of the grant pursuant to Article 118;

(b) the amounts of turnover tax which the beneficiary of the grant cannot claim as a deduction of input tax;

(c) the costs of an external audit (Articles 117 and 119)

(d) administrative expenditure and staff and equipment costs;

(e) depreciation.

Amendment 112

Article 1, point 57

Article 114, paragraph 3, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 113

Article 1, point 57

Article 114, paragraph 4, subparagraph 2 (Regulation (EC, Euratom) No 1605/2002)

Amendment 114

Article 1, point 57

Article 114, paragraph 4 a (new) (Regulation (EC, Euratom) No 1605/2002)

4a. The authorising officer shall propose that declarations be issued, applications be made or declarations or applications be corrected if it is clearly only due to an oversight or ignorance that they have not been issued or made or have been issued or made incorrectly. In so far as necessary and feasible and permissible in the light of the possibilities available, he shall provide information about the rights and obligations of the participants in the procedure.

The authorising officer shall keep appropriate records of contacts with applicants during the procedure.

Amendment 115

Article 1, point 57 a (new)

Article 115, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(57a) In Article 115, paragraph 1 is replaced by the following:

1. Taking account of the principles referred to in Article 109(1) and using selection criteria stated in advance in the call for proposals, the applicant's ability to complete the proposed action or work programme shall be evaluated. This shall be without prejudice to Article 110(1). The award criteria shall give a picture of the specific characteristics of the projects and their quality and implementation.

Amendment 116

Article 1, point 57 b (new)

Article 115, paragraphs 2 a (new) and 2 b (new) (Regulation (EC, Euratom) No 1605/2002)

(57b) In Article 115, the following paragraphs are added:

2a. The award procedure shall as a matter of principle be divided into several procedural stages, the first of which shall comprise solely an approximate evaluation of the permissible applications submitted. If an application has already no prospect of success after this stage of the procedure, the applicant shall be informed accordingly in accordance with Article 116(3). Each subsequent stage of the procedure must be clearly distinct from the previous one, particularly as regards the quantity and substance of the evidence to be submitted by the applicant. If evidence is required from an applicant, it may be required only once in the course of the procedure. Data which have been obtained shall be stored in a database (Article 109a). Efforts shall be made to complete the procedure speedily.

2b. Notwithstanding the principles referred to in Article 109(1), the authorising officer shall, throughout the procedure, take particular care to ensure that the effort required of an applicant for purposes of publication, documentation and the provision of other compulsory evidence pertaining to a grant is not disproportionate to the value of the grant to be awarded.

Amendment 117

Article 1, point 58

Article 116, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

1. Proposals shall be evaluated, on the basis of pre-announced selection and award criteria, with a view to determining which proposals may be financed.

1. Proposals shall be evaluated within two months on the basis of pre-announced selection and award criteria, with a view to determining which proposals may be financed.

Amendment 118

Article 1, point 58 a (new)

Article 116, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

(58a) In Article 116, paragraph 3 is replaced by the following:

3. The authorising officer responsible shall inform applicants in writing of the decision concerning their application and sign the contract after expiry of the period referred to in Article 100(2a).

If the grant requested is not awarded, the institution shall give the reasons for the rejection of the application, with reference in particular to the selection and award criteria already announced.

Amendment 119

Article 1, point 58 b (new)

Article 117 (Regulation (EC, Euratom) No 1605/2002)

(58b) Article 117 is replaced by the following:

Article 117

1. The pace of payments shall be determined by the financial risks involved, the duration and progress of the action or the costs incurred by the beneficiary. Payments must be made within a reasonable period.

If the schedule of payments is laid down contractually or by a decision, payments shall be made without any further demand when they fall due. This shall be without prejudice to Article 119(2).

2. In order to ascertain the financial risks, the authorising officer may, taking account of the principles referred to in Article 109(1), require the beneficiary of the grant to submit an attestation by an independent auditor. The implementing provisions may provide for cases in which an attestation is to be obtained from an external auditor or in which an attestation is not required.

Amendment 120

Article 1, point 58 c (new)

Article 118 (Regulation (EC, Euratom) No 1605/2002)

(58c) Article 118 is replaced by the following:

Article 118

The authorising officer responsible may, if other equally effective ways of minimising risk are not available, require the beneficiary to lodge a guarantee in advance in order to limit the financial risks connected with the payment of pre-financing.

Amendment 121

Article 1, point 58 d (new)

Article 119 (Regulation (EC, Euratom) No 1605/2002)

(58d) Article 119 is replaced by the following:

Article 119

1. The amount of the grant shall not become final until after the institution has accepted the final reports and accounts, without prejudice to subsequent checks by the institution. In this case the limitation period (Article 73b) against the institution shall commence when the last payment is made. The limitation period (Article 73b) against the beneficiary shall commence when the amount of the grant becomes final.

2. Should the beneficiary fail to comply with his/her legal or contractual obligations or with obligations laid down in the decision on the award of a grant, the grant may be suspended, reduced or terminated in accordance with the provisions provided for by the implementing rules after the beneficiary has been given the opportunity to make his/her observations.

Reductions must be proportionate to the error objected to.

If the breach of duty is not due to the conduct of the beneficiary, the grant shall be suspended, reduced or terminated only in exceptional cases, particularly if implementing or upholding the grant would result in the ceiling for project costs eligible for financing being exceeded or if the dereliction of duty has the effect of making it impossible for the aim of the grant to be achieved any longer.

Amendment 122

Article 1, point 59

Article 120, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

1. Where implementation of the action requires the award of procurement contracts by the beneficiary, the relevant procedures shall be as set out in the implementing rules.

1. Where implementation of the action requires the award of procurement contracts, this shall be subject to the principles in Title V of this Part.

Amendment 123

Article 1, point 61

Article 122 (Regulation (EC, Euratom) No 1605/2002)

(61) In Article 122, "Article 185" is replaced by "Article 121".

(61) Article 122 is replaced by the following:

Article 122

A report on budgetary and financial management in the financial year concerned shall be attached to the accounts of the institutions and of the bodies referred to in Article 121, which gives an account, inter alia, of the rate of implementation of the appropriations and of transfers of appropriations among the various budget items.

Amendment 124

Article 1, point 68 a (new)

Article 139, paragraph 2 (Regulation (EC, Euratom) No 1605/2002)

(68a) In Article 139, paragraph 2 is replaced by the following:

2. The institutions shall forward their internal financial rules to the Court of Auditors and the budgetary authority, for information.

Amendment 125

Article 1, point 68 b (new)

Article 143, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

(68b) In Article 143, paragraph 3 is replaced by the following:

3. The annual report shall contain an assessment of the soundness of financial management. It shall contain an evaluation of the efficiency and regularity of budgetary and economic management.

Amendment 126

Article 1, point 75

Article 153, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(75) In Article 153, paragraph 1 is replaced by the following:

1. Where the Commission may transfer appropriations pursuant to Article 23, it shall take its decision by 31 January of the following financial year at the latest and shall inform the budgetary authority three weeks before making the transfers referred to in point (a) of Article 23(1).

Amendment 127

Article 1, point 82 a (new)

Article 160 b (new) (Regulation (EC, Euratom) No 1605/2002)

(82a) The following Article 160b is inserted:

Article 160b

Notwithstanding Article 110, a call for proposals may already be published in the previous year, subject to the availability of appropriations in the following year. Irrespective of the time of publication and notwithstanding Article 115, the Commission shall indicate all the rules which apply to the award of the grant (particularly the exclusion criteria as referred to in Articles 93 and 94), in which connection references to provisions are permissible. Throughout the procedure, the rules to be applied shall be binding in the version applicable at the time of the announcement.

Amendment 128

Article 1, point 85 a (new)

Article 168, paragraph 1, subparagraph 1 a (new) (Regulation (EC, Euratom) No 1605/2002)

(85a) In Article 168(1), the following subparagraph is added:

As regards Community external assistance, the rules for the participation in tendering procedures laid down in Regulation (EC) No 2110/2005 of the European Parliament and of the Council of 14 December 2005 on access to Community external assistance [3] and Council Regulation (EC) No 2112/2005 of 21 November 2005 on access to Community external assistance [4] shall apply.

Amendment 129

Article 1, point 87

Article 169a, paragraph 1a (new) (Regulation (EC, Euratom) No 1605/2002)

The following, in particular, may be claimed as costs eligible for financing:

(a) the costs of a bank guarantee or comparable surety to be lodged by the beneficiary of the grant pursuant to Article 118;

(b) the amounts of turnover tax which the beneficiary of the grant cannot claim as a deduction of input tax;

(c) the costs of an external audit (Articles 117 and 119);

(d) the costs of administrative expenditure and staff and equipment costs;

(e) depreciation.

Amendment 130

Article 1, point 94 a (new)

Article 179, paragraph 3, subparagraph 1 (Regulation (EC, Euratom) No 1605/2002)

(94a) In Article 179(3), the first subparagraph is replaced by the following:

3. The institutions shall inform the two branches of the budgetary authority as soon as possible, but at least 3 weeks prior to any deadline before which a decision has to be taken by the budgetary authority, of any building project likely to have significant financial implications for the budget.

Amendment 131

Article 1, point 94 b (new)

Article 183, sentence 2 (new) (Regulation (EC, Euratom) No 1605/2002)

(94b) In Article 183, the following sentence is added:

It shall seek the opinion of the budgetary authority and take due account thereof, where appropriate.

Amendment 132

Article 1, point 94 c (new)

Article 185, paragraph 1 (Regulation (EC, Euratom) No 1605/2002)

(94c) In Article 185, paragraph 1 is replaced by the following:

1. The Commission shall adopt a framework financial regulation for the bodies set up by the Union and having legal personality. The financial rules governing these bodies may not depart from the framework regulation except where their specific operating needs so require and with the Commission's prior consent.

Amendment 133

Article 1, point 95

Article 185, paragraph 3 (Regulation (EC, Euratom) No 1605/2002)

3. Each body referred to in paragraph 1 shall establish an internal audit function which must be performed in compliance with the relevant international standards. The Commission's internal auditor shall certify that the operation of the audit function respects international audit standards and, for that purpose, may conduct quality audits.

3. The Commission's internal auditor shall conduct the audits for the bodies referred to in paragraph 1. The bodies referred to in paragraph 1 may establish an internal audit function. The Commission's internal auditor may, in duly substantiated cases, delegate his task to their internal auditors. This delegation shall be made in writing, setting out the reasons for delegation and the names of the responsible auditors (delegating and delegate). Notwithstanding the delegation, the Commission's internal auditor may conduct internal audits for the bodies referred to in paragraph 1 and revoke the delegation at any time he thinks fit.

In cases in which an internal audit function is set up by the bodies referred to in paragraph 1, it shall be performed in compliance with guidelines established by the Commission's internal auditor. These guidelines shall include a duty to submit all and any reports made to the Commission's internal auditor. The Commission's internal auditor shall certify that the operation of the audit function meets internal audit standards and, for that purpose, may conduct quality audits.

Amendment 134

Article 1, point 95

Article 185, paragraph 4 (Regulation (EC, Euratom) No 1605/2002)

4. The bodies referred to in Article 121 shall apply the accounting rules set out in Article 133 so that their accounts can be consolidated with the Commission's accounts.

[1] The matter was then referred back to committee pursuant to Rule 53(2) (A6-0057/2006).

[2] Regulation (EC) No 2004/2003 of the European Parliament and of the Council of 4 November 2003 on the regulations governing political parties at European level and the rules regarding their funding (OJ L 297, 15.11.2003, p. 1).

[3] OJ L 344, 27.12.2005, p. 1.

[4] OJ L 344, 27.12.2005, p. 23.

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