# EUR-Lex - 52013PC0534 - EN

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# 52013PC0534

**Proposal for a COUNCIL REGULATION on the establishment of the European Public Prosecutor's Office /* COM/2013/0534 final - 2013/0255 (APP) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Prosecuting offences against the EU budget
is currently within the exclusive competence of Member States and no Union authority
exists in this area. While their potential damage is very significant, these
offences are not always investigated and prosecuted by the relevant national
authorities, as law enforcement resources are limited. As a result, national
law enforcement efforts remain often fragmented in this area and the
cross-border dimension of these offences usually escapes the attention of the
authorities.

Whereas tackling cross-border fraud cases
would require closely coordinated and effective investigations and prosecutions
at European level, the current levels of information exchange and coordination
are not sufficient to achieve this, despite the intensified efforts of Union
bodies, such as Eurojust, Europol and the European Anti-Fraud Office (OLAF).
Coordination, cooperation and information exchange face numerous problems and
limitations owing to a split of responsibilities between authorities belonging
to diverse territorial and functional jurisdictions. Gaps in the judicial
action to fight fraud occur daily at different levels and between different
authorities and are a major impediment to the effective investigation and
prosecution of offences affecting the Union’s financial interests.

Eurojust and Europol have a general mandate
to facilitate exchange of information and coordinate national criminal
investigations and prosecutions, but lack the power to carry out acts of investigation
or prosecution themselves. The European Anti-Fraud Office (OLAF) has a mandate
to investigate fraud and illegal activities affecting the EU, but its powers
are limited to administrative investigations. Action by national judicial
authorities remains often slow, prosecution rates on the average low and
results obtained in the different Member States over the Union as a whole
unequal. Based on this track record the judicial action undertaken by Member
States against fraud may currently not be considered as effective, equivalent
and deterrent as required under the Treaty.

As Member States' criminal investigation
and prosecution authorities are currently unable to achieve an equivalent level
of protection and enforcement, the Union not only has the competence but also
the obligation to act. Article 325 of the Treaty so requires from a legal
perspective, but taking into account the specific Union rules which apply in
this field the Union is also best placed to protect its own financial
interests, including via the prosecution of offences against these interests.
Article 86 of the Treaty provides the necessary legal basis for such a new
Union-level prosecution system, the purpose of which is to correct the
deficiencies of the current enforcement regime exclusively based on national
efforts and add consistency and coordination to these efforts.

The current proposal seeks to set up the
European Public Prosecutor’s Office and define its competences and procedures.
It complements an earlier legislative proposal[1]
which defines the criminal offences as well as the applicable sanctions.

This proposal is part of a legislative
package as it will be accompanied by a proposal concerning the reform of
Eurojust.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

In order to prepare this Regulation, the
Commission has consulted widely with stakeholders, on a number of occasions,
also building on earlier discussions related to the European Public
Prosecutor's Office, which have been going on for more than a decade.[2] Preparatory consultations in
view of the present proposal have covered the main issues addressed in this
Regulation, including various options with regard to the institutional, legal,
organisational and operational set-up of a European system for the
investigation and prosecution of the relevant offences.

Early in 2012, two questionnaires were
published and distributed on-line, one to justice professionals and another to
the general public, respectively. In general, the replies were positive towards
taking new actions to strengthen the material and procedural framework to
counter offences affecting the EU’s financial interests, and most also
expressed support for the idea to set up a European Public Prosecutor’s Office.
A number of more detailed suggestions, concerns and questions were also voiced,
in particular on the relationship between such the European Public Prosecutor’s
Office and national prosecution authorities, the competence of the European
Public Prosecutor’s Office to direct and coordinate investigations at national
level, or the possible difficulties with any harmonised European rules of
procedure in the European Public Prosecutor’s Office's proceedings. In
parallel, field research has been conducted in a number of Member States, as
part of the external study in support of this report. In addition, throughout
2012 and at the beginning of 2013, a number of discussions or meetings took
place at European level:

· 
The network of Public Prosecutors or equivalent
institutions at the Supreme Judicial Courts of the Member States, Budapest,
25-26 May 2012.

· 
Conference: A Blueprint for the European Public
Prosecutor's Office? Luxembourg, 13-15 June 2012. The conference gathered
experts and high level representatives from academia, EU institutions and
Member States.

· 
Vice-President Reding's consultation meeting
with Prosecutors General and Directors of Public Prosecution from Member
States, Brussels, 26 June 2012. The meeting permitted an open discussion on specific
issues regarding the protection of the Union's financial interests.

· 
On 18 October 2012, the Commission organised a
consultation meeting on issues relating to a possible reform of Eurojust, in
which questions related to the setting up of a European Public Prosecutor’s
Office were also discussed with representatives of Member States. The meeting
generally supported establishing a close link between Eurojust and the European
Public Prosecutor’s Office.

· 
The 10th OLAF Conference of Fraud Prosecutors,
Berlin, 8-9 November 2012, was an opportunity to explore the ways in which
national prosecutors would interact with the European Public Prosecutor’s
Office, if set up.

· 
The informal consultation held on 26 November
2012 with defence lawyers (CCBE and ECBA) looked at procedural safeguards for
suspects and made useful recommendations in that regard.

· 
ERA seminar "Towards the European Public
Prosecutor's Office (EPPO)", 17 and 18 January 2013.

· 
Meeting of the Commission Expert Group on
European Criminal Policy, Brussels, 23 January 2013.

· 
Further consultation meeting with ECBA and CCBE,
Brussels, 9 April 2013.

Also, numerous bilateral consultation
meetings with Member States’ authorities have taken place over the second half
of 2012 and the beginning of 2013.

The Commission conducted an Impact
Assessment of policy alternatives taking account inter alia an external
study (Specific contract No. JUST/2011/JPEN/FW/0030.A4) which has considered
various options involving the establishment of a European Public Prosecutor’s Office.
According to the analysis of the Impact Assessment, setting up the European
Public Prosecutor’s Office as a decentralised integrated office of the Union,
which relies on national judicial systems, offers the most benefits and
generates the lowest costs.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

3.1.        The legal basis

The legal basis of the proposal is Article
86 of the Treaty. According to the first paragraph of that provision, “[i]n
order to combat crimes affecting the financial interests of the Union, the Council,
by means of regulations adopted in accordance with a special legislative
procedure, may establish a European Public Prosecutor's Office from Eurojust.
The Council shall act unanimously after obtaining the consent of the European
Parliament”. The second paragraph of that provision defines the responsibility
of the European Public Prosecutor’s Office as follows: “[t]he European Public
Prosecutor's Office shall be responsible for investigating, prosecuting and
bringing to judgment, where appropriate in liaison with Europol, the
perpetrators of, and accomplices in, offences against the Union's financial
interests, as determined by the regulation provided for in paragraph 1. It
shall exercise the functions of prosecutor in the competent courts of the Member
States in relation to such offences”. Finally, the third paragraph of Article
86 of the Treaty defines the substantive scope of the regulations to be adopted
pursuant to it: “[t]he regulations referred to in paragraph 1 shall determine
the general rules applicable to the European Public Prosecutor's Office, the
conditions governing the performance of its functions, the rules of procedure
applicable to its activities, as well as those governing the admissibility of
evidence, and the rules applicable to the judicial review of procedural
measures taken by it in the performance of its functions”.

3.2.        Subsidiarity and
proportionality

There is a need for the Union to act
because the foreseen action has an intrinsic Union dimension. It implies
Union-level steering and coordination of investigations and prosecutions of
criminal offences affecting its own financial interests, the protection of
which is required both from the Union and the Member States by Articles 310 (6)
and 325 TFEU. In accordance with the subsidiarity principle, this objective can
only be achieved at Union level by reason of its scale and effects. As stated
above, the present situation, in which the prosecution of offences against the
Union’s financial interests is exclusively in the hands of the authorities of
the Member States is not satisfactory and does not sufficiently achieve the
objective of fighting effectively against offences affecting the Union budget.

In accordance with the principle of
proportionality, this Regulation does not go beyond what is necessary to
achieve this objective. Throughout the proposed text, the options chosen are
those that are least intrusive for the legal orders and the institutional
structures of the Member States. Key features of the proposal, such as the choice
of the law that applies to investigative measures, the figure of Delegated
Prosecutors, the decentralised character of the European Public Prosecutor’s
Office and the system of judicial review, were designed in order not to go
beyond what was necessary to achieve the main objectives of the proposal.

The Union's competence to counter fraud and
other offences affecting its financial interests is unambiguously stipulated by
Articles 86 and 325 of the Treaty. As this Union competence is not accessory to
that of Member States and exercising it has become necessary to achieve a more
effective protection of the Union’s financial interests, the proposed package
complies with the requirement of subsidiarity.

3.3.        Explanation of the
proposal by chapters

The main objectives of the proposal are:

· 
To contribute to the strengthening of the
protection of the Union's financial interests and further development of an
area of justice, and to enhance the trust of EU businesses and citizens in the
Union’s institutions, while respecting all fundamental rights enshrined in the
Charter of Fundamental Rights of the European Union.

· 
To establish a coherent European system for the investigation
and prosecution of offences affecting the Union’s financial interests.

· 
To ensure a more efficient and effective
investigation and prosecution of offences affecting the EU’s financial
interests.

· 
To increase the number of prosecutions, leading
to more convictions and recovery of fraudulently obtained Union funds.

· 
To ensure close cooperation and effective
information exchange between the European and national competent authorities.

· 
To enhance deterrence of committing offences
affecting the Union’s financial interests.

3.3.1.     Chapter I: Subject matter
and definitions

This Chapter sets out the subject matter of
the Regulation, which is the setting up of the European Public Prosecutor’s
Office. In addition, it defines a certain number of terms used in the text,
such as the “financial interests of the Union”.

3.3.2.     Chapter II: General rules

This Chapter regulates the fundamental
features of the European Public Prosecutor’s Office, its status and structure
as a new Union office with investigation and prosecution functions. In doing
so, it provides specific rules on the appointment and dismissal of the European
Public Prosecutor and his/her delegates. It also sets out the basic principles
of its functioning.

Section 1 (Status, organisation and
structure of the European Public Prosecutor’s Office) clarifies how the European
Public Prosecutor’s Office is set up and what functions will be entrusted to
it. The text provides for its establishment as a new Union body with legal
personality and sets out its relationship with Eurojust. Among the key features
of the European Public Prosecutor’s Office, the text refers to independence and
accountability, which should guarantee that it is able to exercise its
functions and use its powers in a way that makes it immune from any improper
influence. The main characteristics of the structure of the European Public
Prosecutor’s Office are also described in the text.

Section 2 (Appointment and dismissal of the
members of the European Public Prosecutor’s Office) provides the rules
applicable to the appointment and dismissal procedure of the European Public
Prosecutor, his/her Deputies and staff. The appointment procedure for the
European Public Prosecutor is designed in a way that guarantees his
independence and accountability towards Union institutions, whereas his/her
dismissal procedure rests with the Court of Justice of the European Union. For
the European Delegated Prosecutors, who will be appointed and dismissed by the
European Public Prosecutor, the procedure ensures their integration into national
prosecution systems.

Section 3 (Basic principles) describes the
main legal principles that will govern the activities of the European Public
Prosecutor’s Office, including conformity with the Charter of Fundamental
Rights of the European Union, proportionality, national law being applicable to
implement the Regulation, procedural neutrality, legality and celerity of
investigations, Member States’ duty to assist the investigations and
prosecutions of the European Public Prosecutor’s Office.

Section 4 (Competence of the European
Public Prosecutor’s Office) clarifies the criminal offences which fall within
the material competence of the European Public Prosecutor’s Office. These
offences are to be defined by reference to national law implementing Union law
(Directive 2013/xx/EU). The text distinguishes between two categories of offences,
the first of which falls automatically within the competence of the European
Public Prosecutor’s Office (Article 12) and the second (Article 13) which
requires to establish its competence where there are certain connecting links
with offences of the first category. The Section also describes how the European
Public Prosecutor’s Office will exercise its competence over these offences.

3.3.3.     Chapter III: Rules of
procedure on investigations, prosecutions and trial proceedings

This Chapter covers the essential features
of the investigations and prosecutions of the European Public Prosecutor’s
Office, including provisions on how they should be controlled by national courts,
what decisions the European Public Prosecutor’s Office could take once the investigation
is completed, how it would exercise its prosecution functions and how the
evidence collected would be used in trial courts.

Section 1 (Conduct of the investigation)
provides the general rules that apply to the investigations of the European
Public Prosecutor’s Office, including the sources of information used, how
investigations are initiated and conducted and how the European Public
Prosecutor’s Office may obtain further information from databases or data
collected at its request.

Section 2 (Processing of information)
explains the functioning of the Case Management System.

Section 3 (Investigation measures) sets out
the types and conditions of the individual investigation measures which the European
Public Prosecutor’s Office will be able to use. The text does not regulate in
detail each of these measures but requires the application of national law.

Section 4 (Termination of the investigation
and powers of prosecution) stipulates the different types of decisions which the
European Public Prosecutor’s Office may take at the end of the investigation,
including indictments and dismissals.

Section 5 (Admissibility of evidence)
regulates the admissibility of evidence collected and presented by the European
Public Prosecutor’s Office in trial courts.

Section 6 (Confiscation) regulates the
disposition of the assets confiscated by national courts as a result of the
prosecution conducted by the European Public Prosecutor’s Office.

3.3.4.     Chapter IV: Procedural
safeguards

The rules of this Chapter provide safeguards
for suspects and other persons involved in the proceedings of the European
Public Prosecutor’s Office, which will need to comply with the relevant
standards, in particular the Charter of Fundamental Rights of the European
Union. The rules refer to Union legislation (Directives on various procedural
rights in criminal proceedings) with regard to certain rights but also define
autonomously other rights which have not yet been regulated in Union
legislation. As such, these rules provide an additional layer of protection
compared to national law so that suspects and other persons may benefit
directly from a Union-level protection.

3.3.5.     Chapter V: Judicial review

Article 86(3) of the Treaty prescribes the
Union legislator to determine the rules applicable to the judicial review of
procedural measures taken by the European Public Prosecutor’s Office in the
performance of its functions. This possibility reflects the specific nature of the
European Public Prosecutor’s Office, which is different from that of all other
Union bodies and agencies and requires special rules regarding judicial review.

Article 86(2) of the Treaty requires that
the European Public Prosecutor’s Office exercise its functions of prosecutor in
the competent courts of the Member States. The acts of investigation of the European
Public Prosecutor’s Office are also closely related to an eventual prosecution
and will mainly deploy their effects in the legal orders of the Member States.
In most cases they will also be carried out by national law enforcement
authorities acting under the instructions of the European Public Prosecutor’s
Office, and sometimes also after having obtained the authorisation of a
national court. The European Public Prosecutor’s Office is therefore a Union
body whose action will mainly be relevant in the national legal orders. It is
therefore appropriate to consider the European Public Prosecutor’s Office as a
national authority for the purpose of the judicial review of its acts of
investigation and prosecution. As a result, national courts should be entrusted
with the judicial review of all the challengeable acts of investigation and
prosecution of the European Public Prosecutor’s Office, and the Union courts
should not be directly competent with regard to those acts pursuant to Articles
263, 265 and 268 of the Treaty, since such acts should not be considered as
acts of an office of the Union for the purpose of judicial review.

In accordance with Article 267 of the
Treaty, national courts are able or, in certain circumstances, bound to refer
to the Court of Justice questions for preliminary rulings on the interpretation
or the validity of provisions of Union law which are relevant for the judicial
review of acts of investigation and prosecution of the European Public Prosecutor’s
Office. This may include questions on the interpretation of this Regulation. Since
the European Public Prosecutor’s Office will be considered a national authority
for the purpose of judicial review, national courts will only be able to refer
questions on interpretation to the Court of Justice regarding its acts. The
preliminary rulings procedure will thus ensure that this Regulation is applied
uniformly throughout the Union, whereas the validity of the acts of the European
Public Prosecutor’s Office may be challenged before national courts in
accordance with national law.

3.3.6.     Chapter VI: Data protection

This Chapter provides for rules governing
the data protection regime which in the specific context of the European Public
Prosecutor’s Office particularise and complement the Union legislation
applicable to processing of personal data by EU bodies (in particular
Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18
December 2000 on the protection of individuals with regard to the processing of
personal data by the Community institutions and bodies and on the free movement
of such data). The supervision of all personal data processing in the context
of the activities of the European Public Prosecutor’s Office has been entrusted
to the European Data Protection Supervisor (EDPS).

3.3.7.     Chapter VII: Financial and
staff provisions

The rules of this Chapter regulate how the European
Public Prosecutor’s Office shall handle its budget and staff. They are based on
the applicable Union legislation, i.e. for budget matters on Regulation (EU,
Euratom) No 966/2012 of the European Parliament and of the Council of 25
October 2012 on the financial rules applicable to the general budget of the
Union and repealing Council Regulation (EC, Euratom) No 1605/2002, and for
staff matters on Regulation 31 (EEC), as amended.

3.3.8.     Chapter VIII: Provisions on
the relations of the European Public Prosecutor’s Office

This Chapter regulates the relationship of
the European Public Prosecutor’s Office with Union institutions or other bodies
as well as actors outside the Union. Special rules apply to the relationship of
the European Public Prosecutor’s Office with Eurojust, given the special links
that tie them together in the area of operational activities, administration
and management.

3.3.9.     Chapter IX: General
provisions

These provisions address institutional
matters which arise with the setting up of any new Union office or agency. They
are largely inspired by the “Common Approach on decentralised agencies” but
take into account the specific (judicial) nature of the European Public
Prosecutor’s Office. The provisions covers matters such as legal status and
operating conditions, language arrangements, transparency requirements, rules
on the prevention of fraud, handling classified information, administrative
enquiries and liability rules.

3.3.10.   Chapter X: Final provisions

These provisions deal with the
implementation of the Regulation and provide for the adoption of implementing
provisions, transitional provisions, administrative rules and entry into force.

4.           BUDGETARY IMPLICATION

The proposal seeks to be cost-efficient for
the EU budget: part of OLAF's current resources will be used for setting up the
central headquarters of the European Public Prosecutor’s Office, which in turn
will rely on the administrative support of Eurojust.

Limited additional costs will arise in
relation to the position of the European Delegated Prosecutors who will be
located in the Member States and will be an integral part of the European
Public Prosecutor's Office. Given their dual status as both Union and national
prosecutors, they will receive remuneration from the EU budget and will be
covered by the Staff Regulations.

As the set-up phase of the European Public
Prosecutor’s Office will probably take several years, staff members will be gradually
transferred from OLAF to the European Public Prosecutor’s Office. The equivalent
number of the staff transferred and the corresponding credits to finance this
staff will be reduced in the establishment plan and budget of OLAF. The European Public Prosecutor's Office will
reach cruising speed once the full staff levels are achieved. The full staff
level will be achieved in 2023 with 235 staff, of which 180 establishment plan
posts and 55 external staff. The estimated cost for 2023 with this staff level
is approximately 35 million EUR.

2013/0255 (APP)

Proposal for a

COUNCIL REGULATION

on the establishment of the European
Public Prosecutor's Office

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 86 thereof,

Having regard to the proposal from the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the consent of the
European Parliament,

After consulting the European Data
Protection Supervisor,

Acting in accordance with a special
legislative procedure,

Whereas:

(1)       Both the Union and the
Member States have an obligation to protect the Union’s financial interests
against criminal offences, which generate significant financial damages every
year. Yet, these offences are currently not sufficiently investigated and
prosecuted by the relevant national authorities.

(2)       The setting up of the
European Public Prosecutor’s Office is foreseen by the Treaty on the
Functioning of the European Union (TFEU) in the context of the area of freedom,
security and justice.

(3)       The Treaty expressly
requires that the European Public Prosecutor’s Office be established from
Eurojust, which implies that this Regulation should establish links between
them.

(4)       The Treaty provides that
the mandate of the European Public Prosecutor’s Office is to combat crime
affecting the Union's financial interests.

(5)       In accordance with the
principle of subsidiarity, combatting crimes affecting the financial interests
of the Union can be better achieved at Union level by reason of its scale and
effects. The present situation, in which the prosecution of offences against
the Union’s financial interests is exclusively in the hands of the authorities
of the Member States does not sufficiently achieve that objective. Since the
objectives of this Regulation, namely the setting up of the European Public
Prosecutor’s Office, cannot be achieved by the Member States given the
fragmentation of national prosecutions in the area of offences committed
against the Union’s financial interests and can therefore, by reason of the fact
that the European Public Prosecutor’s Office is to have exclusive competence to
prosecute such offences, be better achieved at Union level, the Union may adopt
measures, in accordance with the principle of subsidiarity as set out in
Article 5 of the Treaty on European Union.

(6)       In accordance with the
principle of proportionality, as set out in Article 5 of the Treaty on European
Union, this Regulation does not go beyond what is necessary in order to achieve
these objectives and ensures that its impact on the legal orders and the
institutional structures of the Member States is the least intrusive possible.

(7)       The mandate of the European
Public Prosecutor’s Office should be to investigate, prosecute and bring to
judgment the perpetrators of offences against the Union’s financial interests.
This requires autonomous powers of investigation and prosecution, including the
ability to carry out investigations in cross-border or complex cases.

(8)       The organisational
structure of the European Public Prosecutor’s Office should also allow quick
and efficient decision-making in the conduct of criminal investigations and
prosecutions, whether they involve one or several Member States.

(9)       As a rule, the
investigations of the European Public Prosecutor’s Office should be carried out
by European Delegated Prosecutors in the Member States. In cases involving
several Member States or cases which are of particular complexity, the
efficient investigation and prosecution may require that the European Public
Prosecutor also exercise his powers by instructing national law enforcement
authorities.

(10)     Since the European Public
Prosecutor’s Office is to be granted powers of investigation and prosecution,
institutional safeguards should be put in place to ensure its independence as
well as its accountability towards the Union institutions.

(11)     Strict accountability is a
complement to the independence and the powers granted to it under this
Regulation. The European Public Prosecutor is fully accountable for the
performance of his/her duties as the head of the European Public Prosecutor’s
Office and as such he/she carries an overall institutional accountability for its
general activities before the Union institutions. As a result, any of the Union
institutions can apply to the Court of Justice of the European Union with a
view to his/her removal under certain circumstances, including in cases of
serious misconduct. This accountability should be combined with a strict regime
of judicial control whereby the European Public Prosecutor’s Office can only
use coercive investigation powers subject to prior judicial authorisation and
the evidence presented to the trial court should be subject to verification by
that court as to its compliance with the Charter of Fundamental Rights of the
European Union.

(12)     To ensure consistency in
its action and thus an equivalent protection of the Union's financial
interests, the organisational structure of the European Public Prosecutor’s
Office should enable central coordination and steering of all investigations
and prosecutions within its competence. The European Public Prosecutor’s Office
should therefore have a central structure where decisions are taken by the
European Public Prosecutor.

(13)     To maximise efficiency and
mimimise costs, the European Public Prosecutor’s Office should respect the
principle of decentralisation whereby it should in principle have recourse to
European Delegated Prosecutors located in the Member States to carry out
investigations and prosecutions. The European Public Prosecutor’s Office should
rely on national authorities, including police authorities, in particular for
the execution of coercive measures. Under the principle of loyal cooperation,
all national authorities and the relevant Union bodies, including Europol,
Eurojust and OLAF, are obliged to actively support the investigations and
prosecutions of the European Public Prosecutor’s Office as well as to cooperate
with it to the fullest extent possible.

(14)     The operational activities
of the European Public Prosecutor’s Office should be carried out under the
instruction and on behalf of the European Public Prosecutor by the designated European
Delegated Prosecutors or their national staff in the Member States. The
European Public Prosecutor and the Deputies should have the staff necessary to
carry out their functions under this Regulation. The European Public
Prosecutor’s Office should be considered indivisible.

(15)     The procedure for the appointment
of the European Public Prosecutor should ensure his/her independence and his/her
legitimacy should be drawn from
Union institutions. The Deputies of the European Public Prosecutor should be
appointed by the same procedure.

(16)     The procedure for the appointment
of the European Delegated Prosecutors should ensure that they are an integral
part of the European Public Prosecutor’s Office, and that they are integrated
at both an operational and functional level into the national legal systems and
prosecution structures.

(17)     The Charter of Fundamental
Rights of the European Union constitutes the common basis for the protection of
rights of suspected persons in criminal proceedings during the pre-trial and
trial phase. The activities of the European Public Prosecutor’s Office should
in all instances be carried out in full respect of those rights.

(18)     The investigations and
prosecutions of the European Public Prosecutor’s Office should be guided by the
principles of proportionality, impartiality and fairness towards the suspect.
This includes the obligation to seek all types of evidence, inculpatory as well
as exculpatory.

(19)     It is necessary to
determine the rules of procedure applicable to the activities of the European
Public Prosecutor’s Office. As it would be disproportionate to provide detailed
provisions on the conduct of its investigations and prosecutions, this
Regulation should only list the measures of investigation that the European
Public Prosecutor’s Office may need to use and leave the other matters, in
particular rules related to their execution, to national law.

(20)     In order to ensure legal
certainty and zero tolerance towards offences affecting the Union's financial
interests, the investigation and prosecution activities of the European Public
Prosecutor’s Office should be based on the principle of mandatory prosecution,
whereby it should initiate investigations and, subject to further conditions,
prosecute every offence within its competence.

(21)     The material scope of
competence of the European Public Prosecutor’s Office should be limited to criminal
offences affecting the financial interests of the Union. Any extension of this
competence to include serious crimes having a cross-border dimension would require
a unanimous decision of the European Council.

(22)     Offences against the
Union's financial interests are often closely connected to other offences. In
the interest of procedural efficiency and to avoid a possible breach of the
principle ne bis in idem, the competence of European Public Prosecutor’s
Office should also cover offences which are not technically defined under
national law as offences affecting the Union's financial interests where their
constituent facts are identical and inextricably linked with those of the
offences affecting the financial interests of the Union. In such mixed cases,
where the offence affecting the Union’s financial interests is preponderant,
the competence of the European Public Prosecutor’s Office should be exercised
after consultation with the competent authorities of the Member State
concerned. Preponderance should be established on the basis of criteria such as
the offences’ financial impact for the Union, for national budgets, the number
of victims or other circumstances related to the offences’ gravity, or the
applicable penalties.

(23)     The competence of the
European Public Prosecutor’s Office regarding offences affecting the financial
interests of the Union should take priority over national claims of
jurisdiction so that it can ensure consistency and provide steering of
investigations and prosecutions at Union level. With regard to these offences
the authorities of Member States should only act at the request of the European
Public Prosecutor’s Office, unless urgent measures are required.

(24)     As the European Public
Prosecutor’s Office should bring prosecutions before national courts, its
competence should be defined by reference to the criminal law of the Member
States, which criminalises acts or omissions affecting the Union's financial
interests and determines the applicable penalties by implementing the relevant
Union legislation, in particular [Directive 2013/xx/EU[3]], in national legal systems.

(25)     The European Public
Prosecutor’s Office should exercise its competence as broadly as possible so
that its investigations and prosecutions may extend to offences committed
outside the territory of the Member States. The exercise of its competence should
therefore be aligned with the rules pursuant to [Directive 2013/xx/EU].

(26)     Since the European Public
Prosecutor’s Office has exclusive competence to deal with offences affecting
the Union's financial interests, the investigations it conducts on the territory
of Member States should be facilitated by the competent national authorities
and the relevant Union bodies, including Eurojust, Europol and OLAF, from the
moment a suspected offence is reported to the European Public Prosecutor’s Office
until it determines whether to prosecute or otherwise dispose of the case.

(27)     In order to comply fully
with their obligation to inform the European Public Prosecutor’s Office where a
suspicion of an offence within its competence is identified, the national
authorities of the Member States as well as all institutions, bodies, offices
and agencies of the Union should follow the existing reporting procedures and have
in place efficient mechanisms for a preliminary evaluation of allegations
reported to them. The institutions, bodies, offices and agencies of the Union
may make use of OLAF to that effect.

(28)     It is essential for the
effective investigation and prosecution of offences affecting the Union's
financial interests that the European Public Prosecutor’s Office can gather
evidence throughout the Union by using a comprehensive set of investigative
measures, while bearing in the mind the principle of proportionality and the
need to obtain judicial authorisation for certain investigative measures. These
measures should be available with regard to the offences within the mandate of
the European Public Prosecutor’s Office for the purpose of its investigations
and prosecutions. Once ordered by the European Public Prosecutor’s Office or by
the competent judicial authority at its request, they should be carried out in
accordance with national law. In addition, the European Public Prosecutor’s Office
should have access to all relevant data sources, including public and private
registers.

(29)     The use of the
investigative measures provided for by this Regulation should comply with the
conditions set out in it, including the need to obtain judicial authorisation
for certain coercive investigative measures. Other investigative measures may
be subject to judicial authorisation if this is required by the national law of
the Member State where the investigation measure is to be carried out. The
general requirements of proportionality and necessity should apply to the
ordering of the measures by the European Public Prosecutor’s Office and to
their authorisation by the competent national judicial authority pursuant to
this Regulation.

(30)     Article 86 of the Treaty
requires the European Public Prosecutor’s Office to exercise the functions of
the prosecutor, which includes taking decisions on a suspect’s indictment and
the choice of jurisdiction. The decision whether to indict the suspect should be
made by the European Public Prosecutor so that there is a common prosecution
policy. The jurisdiction of trial should be chosen by the European Public
Prosecutor on the basis of a set of transparent criteria.

(31)     Taking into account the
principle of mandatory prosecution, the investigations of the European Public
Prosecutor’s Office should normally lead to prosecution in the competent
national courts in cases where there is solid evidence and no legal ground bars
prosecution. In the absence of such evidence and where there is no high
prospect that the required evidence could be produced in trial the case can be
dismissed. Additionally the European Public Prosecutor’s Office should have the
possibility to dismiss the case where the offence is a minor one. Where the
case is not dismissed on such grounds but prosecution is not justified either,
the European Public Prosecutor’s Office should have the possibility of
proposing a transaction to the suspect, if this would be in the interest of the
proper administration of justice. The rules applicable to transactions, and
those which apply to the calculation of the fines to be imposed, should be
clarified in the administrative rules of the European Public Prosecutor’s Office.
The closure of a case through a transaction in accordance with this Regulation should
not affect the application of administrative measures by the competent
authorities, as far as those measures do not refer to penalties that could be
equated to criminal penalties.

(32)     The evidence presented by
the European Public Prosecutor’s Office to the trial court should be recognised
as admissible evidence, and thus presumed to meet any relevant evidentiary
requirements under the national law of the Member State where the trial court is
located, provided that court considers it to respect the fairness of the
procedure and the suspect’s rights of defence under the Charter of Fundamental Rights
of the European Union. The trial court cannot exclude the evidence presented by
the European Public Prosecutor’s Office as inadmissible on the ground that the conditions
and rules for gathering that type of evidence are different under the national
law applicable to it.

(33)     This Regulation respects
fundamental rights and observes the principles recognised by the Charter of
Fundamental Rights of the European Union. It requires the European Public
Prosecutor’s Office to respect, in particular, the right to a fair trial, the
rights of the defence and the presumption of innocence, as enshrined in
Articles 47 and 48 of the Charter. Article 50 of the Charter, which protects
the right not to be tried or punished twice in criminal proceedings for the
same offence (ne bis in idem), ensures that there will be no double
jeopardy as a result of the prosecutions brought by European Public
Prosecutor’s Office. The activities of the European Public Prosecutor’s Office shall
thus be exercised in full compliance with these rights and the Regulation shall
be applied and interpreted accordingly.

(34)     Article 82(2) of the Treaty
allows the Union to establish minimum rules on rights of individuals in
criminal proceedings, in order to ensure that the rights of defence and the
fairness of the proceedings are respected. Although the Union has already
established a significant acquis, some of these rights have not yet been
harmonised under Union law. In respect of those rights, this Regulation should lay
down rules which would apply exclusively for the purposes of this Regulation.

(35)     The rights of defence
already provided for in the relevant Union legislation, such as Directive
2010/64/EU of the European Parliament and of the Council of 20 October 2010 on
the right to interpretation and translation in criminal proceedings[4], Directive 2012/13/EU of the
European Parliament and of the Council of 22 May 2012 on the right to
information in criminal proceedings[5],
and [Directive 2013/xx/EU of the European Parliament and of the Council of
xx xxxx 2013 on the right of access to a lawyer in criminal proceedings and on
the right to communicate upon arrest], as implemented by national law,
should apply to the activities of the European Public Prosecutor’s Office. Any
suspected person in respect of whom the European Public Prosecutor’s Office initiates
an investigation should benefit from them.

(36)     Article 86(3) of the Treaty
allows the Union legislator to determine the rules applicable to the judicial
review of procedural measures taken by the European Public Prosecutor’s Office
in the performance of its functions. This competence granted to the legislator
reflects the specific nature of the European Public Prosecutor’s Office, which
is different from that of all other Union bodies and agencies and requires
special rules regarding judicial review.

(37)     Article 86(2) of the Treaty
requires that the European Public Prosecutor’s Office exercise its functions of
prosecutor in the competent courts of the Member States. Acts undertaken by the
European Public Prosecutor’s Office in the course of its investigations are
closely related to the prosecution which may result therefrom and have effects
in the legal order of the Member States. In most cases they will be carried out
by national law enforcement authorities acting under the instructions of
European Public Prosecutor’s Office, sometimes after having obtained the
authorisation of a national court. It is therefore appropriate to consider the European
Public Prosecutor’s Office as a national authority for the purpose of the
judicial review of its acts of investigation and prosecution. As a result,
national courts should be entrusted with the judicial review of all acts of
investigation and prosecution of the European Public Prosecutor’s Office which
may be challenged, and the Court of Justice of the European Union should not be
directly competent with regard to those acts pursuant to Articles 263, 265 and
268 of the Treaty, since such acts should not be considered as acts of a body
of the Union for the purpose of judicial review.

(38)     In accordance with Article
267 of the Treaty, national courts are able or, in certain circumstances, bound
to refer to the Court of Justice questions for preliminary rulings on the
interpretation or the validity of provisions of Union law, including this
Regulation, which are relevant for the judicial review of the acts of
investigation and prosecution of the European Public Prosecutor’s Office.
National courts should not be able to refer questions on the validity of the acts
of the European Public Prosecutor’s Office to the Court of Justice, since those
acts should not be considered acts of a body of the Union for the purpose of
judicial review.

(39)     It should also be clarified
that issues concerning the interpretation of provisions of national law which
are rendered applicable by this Regulation should be dealt with by national
courts alone. In consequence, those courts may not refer questions to the Court
of Justice relating to the interpretation of national law to which this Regulation
refers.

(40)     As
the Treaty prescribes that the European Public
Prosecutor’s Office is to be set up from Eurojust, they
should organically, operationally and administratively co-exist, co-operate and
complement each other.

(41)     The
European Public Prosecutor’s Office should also work closely with other Union institutions and agencies
in order to facilitate the exercise of its functions under this Regulation and
establish, where necessary, formal arrangements on detailed rules relating to
exchange of information and cooperation. Cooperation with Europol and OLAF should
be of particular importance to avoid duplication and enable the European Public Prosecutor’s Office to obtain
the relevant information at their disposal as well as to draw on their analyis in
specific investigations.

(42)     Regulation (EC) 45/2001 of
the European Parliament and of the Council of 18 December 2000 on the
protection of individuals with regard to the processing of personal data by the
Community institutions and bodies and on the free movement of such data[6] applies to the processing of
personal data performed by the European Public Prosecutor’s Office. This
concerns the processing of personal data in the framework of the objectives and
tasks of the European Public Prosecutor’s Office, personal data related to
staff members as well as administrative personal data held by it. The European
Data Protection Supervisor should monitor the processing of personal data by
the European Public Prosecutor’s Office. The principles set out in (EC) No Regulation
45/2001 should be particularised and complemented as regards the processing of operational
personal data by the European Public Prosecutor’s Office when necessary. When
the European Public Prosecutor's Office transfers operational personal data to
an authority of a third country or to an international organisation or Interpol
by virtue of an international agreement concluded pursuant to Article 218 of
the Treaty, the adequate safeguards adduced with respect to the protection of
privacy and fundamental rights and freedoms of individuals should ensure that
the data protection provisions of this Regulation are complied with.

(43)     [Directive 2013/xx/EU on
the protection of individuals with regard to the processing of personal data
and on the free movement of such data] applies to the processing of personal
data by Member States competent authorities for the purposes of the prevention,
investigation, detection or prosecution of criminal offences or the execution
of criminal penalties.

(44)     The data processing system of
the European Public Prosecutor’s Office should build on the Case Management
System of Eurojust, but its temporary work files should be considered
case-files from the time an investigation is initiated.

(45)     The
financial, budgetary and staff regime of the European
Public Prosecutor’s Office should follow the relevant
Union standards applicable to bodies referred to in Article 208 of Regulation (EU, EURATOM) No 966/2012 of the European Parliament and
of the Council[7], with due regard, however, to the fact that the competence of the European Public Prosecutor’s Office to carry
out investigations and prosecutions at Union-level is unique. The European Public Prosecutor’s Office should be subject to an
annual reporting obligation.

(46)     The general rules of transparency
applicable to Union agencies should also apply to the European Public
Prosecutor’s Office but only with regard to its administrative tasks so as not
to jeopardise in any manner the requirement of confidentiality in its operational
work. In the same manner, administrative inquiries conducted by the European
Ombudsman should respect the requirement of confidentiality of the European
Public Prosecutor’s Office.

(47)     In accordance with Article
3 of Protocol (No 21) on the position of the United Kingdom and
Ireland in respect of the Area of Freedom, Security and Justice, annexed to the
Treaty on European Union and to the Treaty on the Functioning of the
European Union, those Member States have notified their wish [not] [to take
part] in the adoption and application of this Regulation.

(48)     In accordance with Articles
1 and 2 of Protocol (No 22) on the position of Denmark, annexed to the Treaty
on European Union and to the Treaty on the Functioning of the European Union,
Denmark is not taking part in the adoption of this Regulation and is not bound
by it or subject to its application,

(49)     The Representatives of the
Member States, meeting at Head of State or Government level in Brussels on 13
December 2003 have determined the seat of the European Public Prosecutor’s Office,

HAS ADOPTED THIS REGULATION:

CHAPTER I
SUBJECT MATTER AND DEFINITIONS

Article 1
Subject matter

This Regulation
establishes the European Public Prosecutor’s Office and sets out rules
concerning its functioning.

Article 2
Definitions

For the purposes of this
Regulation, the following definitions apply:

a)           ‘person’ means any natural or
legal person;

b)           ‘criminal offences affecting the
financial interests of the Union’ means the offences provided for by Directive
2013/xx/EU, as implemented by national law;

c)           ‘financial interests of the Union’
means all revenues, expenditures and assets covered by, acquired through, or
due to the Union budget and the budgets of institutions, bodies, offices and
agencies established under the Treaties and budgets managed and monitored by
them;

d)           ‘administrative personal data’
means all personal data processed by the European Public Prosecutor’s Office except
for operational personal data;

e)           ‘operational personal data’ means
all personal data processed by the European Public Prosecutor’s Office to meet
the purposes laid down in Article 37.

CHAPTER II
GENERAL RULES

Section 1
Status, organisation and structure of the European Public Prosecutor’s Office

Article 3
Establishment

1.           The European Public Prosecutor's
Office is established as a body of the Union with a decentralised structure.

2.           The European Public Prosecutor’s Office
shall have legal personality.

3.           The European Public Prosecutor’s Office
shall cooperate with Eurojust and rely on its administrative support in
accordance with Article 57.

Article 4
Tasks

1.           The task of the European Public
Prosecutor’s Office shall be to combat criminal offences affecting the financial
interests of the Union.

2.           The European Public Prosecutor’s Office
shall be responsible for investigating, prosecuting and bringing to judgment
the perpetrators of, and accomplices in the criminal offences referred to in
paragraph 1. In that respect the European Public Prosecutor’s Office shall
direct and supervise investigations, and carry out acts of prosecution,
including the dismissal of the case.

3.           The European Public Prosecutor’s Office
shall exercise the functions of prosecutor in the competent courts of the
Member States in respect of the offences referred to in paragraph 1, including lodging
the indictment and any appeals until the case has been finally disposed of.

Article 5
Independence and
accountability

1.           The European Public Prosecutor’s Office
shall be independent.

2.           The European Public Prosecutor’s Office,
including the European Public Prosecutor, his/her Deputies and the staff, the
European Delegated Prosecutors and their national staff, shall neither seek nor
take instructions from any person, any Member State or any institution, body,
office or agency of the Union in the performance of their duties. The Union
institutions, bodies, offices or agencies and the Member States shall respect
the independence of the European Public Prosecutor’s Office and shall not seek
to influence it in the exercise of its tasks.

3.           The European Public Prosecutor
shall be accountable to the European Parliament, the Council and the European
Commission for the general activities of the European Public Prosecutor's
Office, in particular by giving an annual report in accordance with Article 70.

Article 6
Structure and organisation
of the European Public Prosecutor’s Office

1.           The structure of the European
Public Prosecutor’s Office shall comprise a European Public Prosecutor, his/her
Deputies, the staff supporting them in the execution of their tasks under this
Regulation, as well as European Delegated Prosecutors located in the Member
States.

2.           The European Public Prosecutor’s Office
shall be headed by the European Public Prosecutor, who shall direct its
activities and organise its work. The European Public Prosecutor shall be
assisted by four Deputies.

3.           The Deputies shall assist the
European Public Prosecutor in all his/her duties and act as a replacement, in
accordance with the rules adopted pursuant to Article 72(d), when he/she is
absent or prevented from attending to them. One of the Deputies shall be
responsible for the implementation of the budget.

4.           The investigations and
prosecutions of the European Public Prosecutor’s Office shall be carried out by
the European Delegated Prosecutors under the direction and supervision of the
European Public Prosecutor. Where it is deemed necessary in the interest of the
investigation or prosecution, the European Public Prosecutor may also exercise his/her
authority directly in accordance with Article 18(5).

5.           There shall be at least one
European Delegated Prosecutor in each Member State, who shall be an integral
part of the European Public Prosecutor’s Office. The European Delegated
Prosecutors shall act under the exclusive authority of the European Public
Prosecutor and follow only his/her instructions, guidelines and decisions when
they carry out investigations and prosecutions assigned to them. When they act
within their mandate under this Regulation, they shall be fully independent
from the national prosecution bodies and have no obligations with regard to
them.

6.           The European Delegated
Prosecutors may also exercise their function as national prosecutors. In the
event of conflicting assignments, the European Delegated Prosecutors shall
notify the European Public Prosecutor, who may, after consultation with the
competent national prosecution authorities, instruct them in the interest of the
investigations and prosecutions of the European Public Prosecutor’s Office to
give priority to their functions deriving from this Regulation. In such cases,
the European Public Prosecutor shall immediately inform the competent national
prosecution authorities thereof.

7.           Acts performed by the European
Public Prosecutor, European Delegated Prosecutors, any of the staff members of
the European Public Prosecutor’s Office or any other person acting on behalf of
it in the performance of their duties shall be attributed to the European
Public Prosecutor’s Office. The European Public Prosecutor shall represent the European
Public Prosecutor’s Office towards the Union Institutions, the Member States
and third parties.

8.           Where necessary for the purpose
of an investigation or prosecution, the European Public Prosecutor may
temporarily allocate resources and staff to European Delegated Prosecutors.

Article 7
Internal rules of procedure
of the European Public Prosecutor’s Office

1.           The internal rules of procedure of
the European Public Prosecutor’s Office shall be adopted by a decision of the European
Public Prosecutor, his/her four Deputies and five European Delegated
Prosecutors, who shall be chosen by the European Public Prosecutor on the basis
of a system of strictly equal rotation, reflecting the demographic and
geographical range of all the Member States. The decision shall be taken by
simple majority, all members having one vote. Where the votes are equally
divided, the European Public Prosecutor shall have a casting vote.

2.           The internal rules of procedure shall
govern the organisation of the work of the European Public Prosecutor’s Office and
shall include general rules on the allocation of cases.

Section 2
Appointment and dismissal of the members of the European Public Prosecutor’s Office

Article 8
Appointment and dismissal
of the European Public Prosecutor

1.           The European Public Prosecutor
shall be appointed by the Council with the consent of the European Parliament
for a term of eight years, which shall not be renewable. The Council shall act
by simple majority.

2.           The European Public Prosecutor shall
be chosen from persons whose independence is beyond doubt and who possess the
qualifications required for appointment to high judicial office and relevant
prosecutorial experience.

3.           The selection shall be based on
an open call for candidates, to be published in the Official Journal of the
European Union, following which the Commission shall draw up and submit a
shortlist to the European Parliament and the Council. Before the shortlist is
submitted, the Commission shall seek the opinion of a panel set up by it and
composed of seven persons chosen from among former members of the Court of
Justice, members of national supreme courts, national public prosecution
services and/or lawyers of recognised competence, one of whom shall be proposed
by the European Parliament, as well as the President of Eurojust as an
observer.

4.           If the European Public Prosecutor
no longer fulfils the conditions required for the performance of his/her duties
or if he/she has been guilty of serious misconduct, the Court of Justice of the
European Union may, on application by the European Parliament, the Council, or
the Commission dismiss him/her.

Article 9
Appointment and dismissal
of the Deputies of the European Public Prosecutor

1.           The Deputies of the European
Public Prosecutor shall be appointed in accordance with the rules set out in
Article 8(1).

2.           The Deputies of the European
Public Prosecutor shall be chosen from persons whose independence is beyond
doubt and who possess the qualifications required for appointment to high
judicial office and relevant prosecutorial experience.

3.           The selection shall be based on
an open call for candidates, to be published in the Official Journal, following
which the European Commission shall draw up and submit, in agreement with the
European Public Prosecutor, a shortlist to the European Parliament and the
Council, reflecting the demographic balance and geographical range of the
Member States.

4.           The Deputies may be dismissed in accordance
with the rules set out in Article 8(4), on the initiative of the European
Public Prosecutor.

Article 10
Appointment and dismissal of the
European Delegated Prosecutors

1.           The European Delegated
Prosecutors shall be appointed by the European Public Prosecutor from a list of
at least three candidates, who comply with the requirements set out in
paragraph 2, submitted by the Member State(s) concerned. They shall be
appointed for a term of five years, which shall be renewable.

2.           The European Delegated
Prosecutors shall possess the qualifications required for appointment to high
judicial office and have relevant prosecutorial experience. Their independence
should be beyond doubt. Member States shall appoint the European Delegated
Prosecutor as a prosecutor under national law, if at the time of his/her
appointment as a European Delegated Prosecutor, he/she did not have this status
already.

3.           European Delegated Prosecutors may
be dismissed by the European Public Prosecutor if they no longer fulfil the requirements
set out in paragraph 2, or the criteria applicable to the performance of their
duties, or if they have been found guilty of serious misconduct. European
Delegated Prosecutors shall not be dismissed as national prosecutors by the
competent national authorities without the consent of the European Public Prosecutor
during the exercise of their functions on behalf of the European Public
Prosecutor’s Office.

Section 3
Basic Principles

Article 11
Basic principles of the
activities of the European Public Prosecutor’s Office

1.           The European Public Prosecutor’s Office
shall ensure that its activities respect the rights enshrined in the Charter of
Fundamental Rights of the European Union.

2.           The actions of the European
Public Prosecutor’s Office shall be guided by the principle of proportionality
as referred to in Article 26(3).

3.           The investigations and
prosecutions of the European Public Prosecutor’s Office shall be governed by this
Regulation. National law shall apply to the extent that a matter is not
regulated by this Regulation. The applicable national law shall be the law of
the Member State where the investigation or prosecution is conducted. Where a
matter is governed by national law and this Regulation, the latter shall
prevail.

4.           The European Public Prosecutor’s Office
shall have exclusive competence to investigate and prosecute criminal offences
against the Union’s financial interests.

5.           The European Public Prosecutor’s Office
shall conduct its investigations in an impartial manner and seek all relevant
evidence, whether inculpatory or exculpatory.

6.           The European Public Prosecutor’s Office
shall initiate investigations without undue delay and ensure that
investigations and prosecutions are conducted speedily.

7.           The competent authorities of the
Member States shall actively assist and support the investigations and
prosecutions of the European Public Prosecutor’s Office at its request and
shall refrain from any action, policy or procedure which may delay or hamper
their progress.

Section 4
Competence of the European Public Prosecutor’s Office

Article 12
Criminal offences within
the competence of the European Public Prosecutor’s Office

The European Public Prosecutor’s Office shall
have competence in respect of the criminal offences affecting the financial
interests of the Union, as provided for by Directive 2013/xx/EU and implemented
by national law.

Article 13
Ancillary competence

1.           Where the offences referred to in
Article 12 are inextricably linked with criminal offences other than those
referred to in Article 12 and their joint investigation and prosecution are in
the interest of a good administration of justice the European Public
Prosecutor’s Office shall also be competent for those other criminal offences, under
the conditions that the offences referred to in Article 12 are preponderant and
the other criminal offences are based on identical facts.

If those conditions are not met,
the Member State that is competent for the other offences shall also be
competent for the offences referred to in Article 12.

2.           The European Public Prosecutor’s Office
and the national prosecution authorities shall consult each other in order to
determine which authority has competence pursuant to paragraph 1. Where appropriate
to facilitate the determination of such competence Eurojust may be associated in
accordance with Article 57.

3.           In case of disagreement between
the European Public Prosecutor’s Office and the national prosecution
authorities over competence pursuant to in paragraph 1, the national judicial authority
competent to decide on the attribution of competences concerning prosecution at
national level shall decide on ancillary competence.

4.           The determination of competence pursuant
to this Article shall not be subject to review.

Article 14
Exercise of the competence
of the European Public Prosecutor’s Office

The European Public Prosecutor’s Office shall
exercise its exclusive competence to investigate and prosecute any criminal offence
referred to in Articles 12 and 13, where such offence was wholly or partly
committed

a)           on the territory of one or
several Member States, or

b)           by one of their nationals, or by Union
staff members or members of the Institutions.

CHAPTER III
RULES OF PROCEDURE ON INVESTIGATIONS, PROSECUTIONS AND TRIAL PROCEEDINGS

Section 1
Conduct of investigations

Article 15
Sources of investigation

1.           All national authorities of the
Member States and all institutions, bodies, offices and agencies of the Union
shall immediately inform the European Public Prosecutor’s Office of any conduct
which might constitute an offence within its competence.

2.           Where European Delegated
Prosecutors become aware of any conduct which might constitute an offence
within the competence of the European Public Prosecutor’s Office, they shall
immediately inform the European Public Prosecutor.

3.           The European Public Prosecutor’s Office
may collect or receive information from any person on conduct which might
constitute an offence within its competence.

4.           Any information brought to the
attention of the European Public Prosecutor’s Office shall be registered and verified
by the European Public Prosecutor or the European Delegated Prosecutors. Where
they decide, upon verification, not to initiate an investigation, they shall
close the case and note the reasons in the Case Management System. They shall inform
the national authority, the Union institution, body, office or agency, which
provided the information, thereof, and at their request, where appropriate, the
persons who provided the information.

Article 16
Initiation of
investigations

1.           The European Public Prosecutor or,
on his/her behalf, the European Delegated Prosecutors shall initiate an investigation
by written decision where there are reasonable grounds to believe that an
offence within the competence of the European Public Prosecutor’s Office is
being or has been committed.

2.           Where the investigation is initiated
by the European Public Prosecutor, he/she shall assign the case to a European
Delegated Prosecutor unless he/she wishes to conduct the investigation himself/herself
in accordance with the criteria set out in Article 18(5). Where the
investigation is initiated by a European Delegated Prosecutor, he/she shall
inform the European Public Prosecutor immediately. Upon receipt of such
notification, the European Public Prosecutor shall verify that an investigation
has not already been initiated by him/her or another European Delegated
Prosecutor. In the interest of the efficiency of the investigation the European
Public Prosecutor may allocate the case to another European Delegated
Prosecutor or decide to take over the case himself/herself in accordance with
the criteria set out in Article 18(5).

Article 17
Urgent measures and
referrals

1.           Where immediate action with
regard to an offence within the competence of the European Public Prosecutor’s Office
is required, the national authorities shall take any urgent measures necessary to
ensure effective investigation and prosecution. The national authorities shall subsequently
refer the case without delay to the European Public Prosecutor’s Office. In that
case, the European Public Prosecutor’s Office shall confirm, if possible within
48 hours from the initiation of its investigation, the measures taken by the
national authorities, even if such measures have been undertaken and executed
under rules other than those of this Regulation.

2.           At any stage of the
investigation, where the case gives rise to doubts as to its competence, the European
Public Prosecutor’s Office may consult the national prosecution authorities to
determine which authority is competent. Pending a decision on competence, the European
Public Prosecutor’s Office shall take any urgent measures necessary to ensure effective
investigation and prosecution of the case. Where the competence of the national
authority is established, the national authority shall confirm within 48 hours
from the initiation of the national investigation the urgent measures taken by
the European Public Prosecutor’s Office.

3.           Where an investigation initiated
by the European Public Prosecutor’s Office reveals that the conduct subject to
investigation constitutes a criminal offence, which is not within its
competence, the European Public Prosecutor’s Office shall refer the case
without delay to the competent national law enforcement and judicial
authorities.

4.           Where an investigation initiated
by national authorities subsequently reveals that the conduct constitutes an
offence within the competence of the European Public Prosecutor’s Office, the
national authorities shall refer the case without delay to the European Public
Prosecutor’s Office. In that case, the European Public Prosecutor’s Office shall
confirm, if possible within 48 hours from the initiation of its investigation,
the measures taken by the national authorities, even if such measures have been
undertaken and executed under rules other than those of this Regulation.

Article 18
Conducting the
investigation

1.           The designated European Delegated
Prosecutor shall lead the investigation on behalf of and under the instructions
of the European Public Prosecutor. The designated European Delegated Prosecutor
may either undertake the investigation measures on his/her own or instruct the
competent law enforcement authorities in the Member State where he/she is
located. These authorities shall comply with the instructions of the European
Delegated Prosecutor and execute the investigation measures assigned to them.

2.           In cross-border cases, where
investigation measures need to be executed in a Member State other than the one
where the investigation was initiated, the European Delegated Prosecutor who initiated
it, or to whom the case was assigned by the European Public Prosecutor, shall
act in close consultation with the European Delegated Prosecutor where the
investigation measure needs to be carried out. That European Delegated
Prosecutor shall either undertake the investigation measures himself/herself or
instruct the competent national authorities to execute them.

3.           In cross-border cases the
European Public Prosecutor may associate several European Delegated Prosecutors
with the investigation and set up joint teams. He/she may instruct any European
Delegated Prosecutor to collect relevant information or undertake specific
investigation measures on his/her behalf.

4.           The European Public Prosecutor
shall monitor the investigations conducted by the European Delegated
Prosecutors and ensure their coordination. He/she shall instruct them where
necessary.

5.           The European Public Prosecutor
may reallocate the case to another European Delegated Prosecutor or himself/herself
lead the investigation if this appears necessary in the interest of the
efficiency of the investigation or prosecution on the grounds of one or more of
the following criteria:

a)      the seriousness of the offence;

b)      specific circumstances related to the
status of the alleged offender;

c)      specific circumstances related to the
cross-border dimension of the investigation;

d)      the unavailability of national
investigation authorities; or

e)      a request of the competent authorities
of the relevant Member State.

6.           Where the investigation is
undertaken by the European Public Prosecutor directly, he/she shall inform the
European Delegated Prosecutor in the Member State where the investigation
measures need to be carried out. Any investigation measure conducted by the
European Public Prosecutor shall be carried out in liaison with the authorities
of the Member State whose territory is concerned. Coercive measures shall be carried
out by the competent national authorities.

7.           Investigations carried out under
the authority of the European Public Prosecutor’s Office shall be protected by the
rules concerning professional secrecy under the applicable Union legislation.
Authorities participating in the investigations of the European Public
Prosecutor’s Office are also bound to respect professional secrecy as provided
under the applicable national law.

Article 19
Lifting privileges or
immunities

1.           Where the investigations of the
European Public Prosecutor’s Office involve persons protected by privileges or
immunities under national law, and such privilege or immunity presents an
obstacle to a specific investigation being conducted, the European Public
Prosecutor’s Office shall make a reasoned written request for its lifting in
accordance with the procedures laid down by that national law.

2.           Where the investigations of the
European Public Prosecutor’s Office involve persons protected by privileges or
immunities under Union law, in particular the Protocol on the privileges and
immunities of the European Union, and such privilege or immunity presents an
obstacle to a specific investigation being conducted, the European Public
Prosecutor’s Office shall make a reasoned written request for its lifting in
accordance with the procedures laid down by Union law.

Section 2
Processing of information

Article 20
Access to information by
the European Public Prosecutor’s Office

From
the moment it registers a case, the European Public Prosecutor’s Office shall
be able to obtain any relevant information stored in national criminal
investigation and law enforcement databases, as well as other relevant
registers of public authorities, or have access to such information through European
Delegated Prosecutors.

Article 21
Collection of information

1.           Where necessary for the purpose
of its investigations, the European Public Prosecutor’s Office shall obtain, at
its request, from Eurojust and Europol, any relevant information concerning an
offence within its competence, and may also ask Europol to provide analytical
support to a specific investigation conducted by the European Public
Prosecutor's Office.

2.           The institutions, bodies, offices
and agencies of the Union and Member States’ authorities shall provide the
necessary assistance and information to the European Public Prosecutor’s Office
upon its request.

Article 22
Case Management System,
index and temporary work files

1.           The European Public Prosecutor’s Office
shall establish a Case Management System composed of temporary work files and
of an index which contain personal data as referred to in the Annex and
non-personal data.

2.           The purpose of the Case
Management System shall be to:

a)      support the management of
investigations and prosecutions conducted by the European Public Prosecutor’s Office,
in particular by the cross-referencing of information;

b)      facilitate access to information on
on-going investigations and prosecutions;

c)      facilitate the monitoring of
lawfulness and compliance with the provisions of this Regulation concerning the
processing of personal data.

3.           The Case Management System may be
linked to the secure telecommunications connection referred to in Article 9 of
Decision 2008/976/JHA[8].

4.           The index shall contain
references to temporary work files processed within the framework of the work of
the European Public Prosecutor’s Office and may contain no personal data other
than those referred to in points (a) to (i), (k) and (m) of point (1) and in point
2 of the Annex.

5.           In the performance of its duties under
this Regulation, the European Public Prosecutor’s Office may process data on
the individual cases on which it is working in a temporary work file. The European
Public Prosecutor’s Office shall allow the Data Protection Officer provided for
in Article 41 to have access to the temporary work file. The European Public
Prosecutor’s Office shall inform the Data Protection Officer each time a new
temporary work file containing personal data is opened.

6.           For the processing of case
related personal data, the European Public Prosecutor’s Office may not
establish any automated data file other than the Case Management System or a
temporary work file.

Article 23
Functioning of temporary
work files and the index

1.           A temporary work file shall be
opened by the European Public Prosecutor’s Office for every case with respect
to which information is transmitted to it in so far as this transmission is in
accordance with this Regulation or other applicable legal instruments. The European
Public Prosecutor’s Office shall be responsible for the management of the
temporary work files which it has opened.

2.           The European Public Prosecutor’s Office
shall decide, on a case-by-case basis, whether to keep the temporary work file
restricted or to give access to it or to parts of it to members of its staff,
where necessary to enable such staff to carry out its tasks.

3.           The European Public Prosecutor’s Office
shall decide which information related to a temporary work file shall be
introduced in the index. Unless otherwise decided by the European Public
Prosecutor, information registered and subject to verification in accordance
with Article 15(4) shall not be introduced in the index.

Article 24
Access to the Case
Management System

European Delegated Prosecutors and their
staff, in so far as they are connected to the Case Management System, may only
have access to:

a)           the index, unless such access has
been expressly denied;

b)           temporary work files opened by
the European Public Prosecutor’s Office related to investigations or
prosecutions taking place in their Member State;

c)           temporary work files opened by
the European Public Prosecutor’s Office related to investigations or
prosecutions taking place in another Member State in as far as they relate to
investigations or prosecutions taking place in their Member State.

Section 3
Investigation measures

Article 25
The European Public
Prosecutor’s Office’s authority to investigate

1.           For the purpose of investigations
and prosecutions conducted by the European Public Prosecutor’s Office, the
territory of the Union's Member States shall be considered a single legal area
in which the European Public Prosecutor’s Office may exercise its competence.

2.           Where the European Public
Prosecutor’s Office decides to exercise its competence over an offence which
was partly or wholly committed outside the territory of the Member States by
one of their nationals, by Union staff members or by members of the
Institutions, it shall seek assistance to obtain the cooperation of the third
country concerned pursuant to the instruments and procedures referred to in
Article 59.

Article 26
Investigation measures

1.           The European Public Prosecutor’s Office
shall have the power to request or to order the following investigative
measures when exercising its competence:

a)      search any premises, land, means of
transport, private home, clothes and any other personal property or computer
system;

b)      obtain the production of any relevant
object or document, or of stored computer data, including traffic data and
banking account data, encrypted or decrypted, either in original or in some
other specified form;

c)      seal premises and means of transport
and freezing of data, in order to preserve their integrity, to avoid the loss
or contamination of evidence or to secure the possibility of confiscation;

d)      freeze instrumentalities or proceeds
of crime, including freezing of assets, if they are expected to be subject to
confiscation by the trial court and there is reason to believe that the owner,
possessor or controller will seek to frustrate the judgement ordering
confiscation;

e)      intercept telecommunications,
including e-mails, to and from the suspected person, on any telecommunication
connection that the suspected person is using;

f)       undertake real-time surveillance of
telecommunications by ordering instant transmission of telecommunications
traffic data to locate the suspected person and to identify the persons who
have been in contact with him at a specific moment in time;

g)      monitor financial transactions, by
ordering any financial or credit institution to inform the European Public
Prosecutor’s Office in real time of any financial transaction carried out
through any specific account held or controlled by the suspected person or any
other accounts which are reasonably believed to be used in connection with the
offence;

h)      freeze future financial transactions,
by ordering any financial or credit institution to refrain from carrying out
any financial transaction involving any specified account or accounts held or
controlled by the suspected person;

i)       undertake surveillance measures in
non-public places, by ordering the covert video and audio surveillance of
non-public places, excluded video surveillance of private homes, and the
recording of its results;

j)       undertake covert investigations, by
ordering an officer to act covertly or under a false identity;

k)      summon suspected persons and witnesses,
where there are reasonable grounds to believe that they might provide
information useful to the investigation;

l)       undertake identification measures, by
ordering the taking of photos, visual recording of persons and the recording of
a person's biometric features;

m)     seize objects which are needed as
evidence;

n)      access premises and take samples of
goods;

o)      inspect means of transport, where
reasonable grounds exist to believe that goods related to the investigation are
being transported;

p)      undertake measures to track and
control persons, in order to establish the whereabouts of a person;

q)      track and trace any object by
technical means, including controlled deliveries of goods and controlled
financial transactions;

r)       undertake targeted surveillance in public
places of the suspected and third persons;

s)       obtain access to national or European
public registers and registers kept by private entities in a public interest;

t)       question the suspected person and
witnesses;

u)      appoint experts, ex officio or at the
request of the suspected person, where specialised knowledge is required.

2.           Member States shall ensure that
the measures referred to in paragraph 1 may be used in the investigations and
prosecutions conducted by the European Public Prosecutor’s Office. Such
measures shall be subject to the conditions provided for in this Article and
those set out in national law. Investigation measures other than those referred
to in paragraph 1 may only be ordered or requested by the European Public
Prosecutor’s Office if available under the law of the Member State where the measure
is to be carried out.

3.           The individual investigative
measures referred to in paragraph 1 shall not be ordered without reasonable
grounds and if less intrusive means can achieve the same objective.

4.           Member States shall ensure that the investigative
measures referred to in points (a) - (j) of paragraph 1 are subject to authorisation
by the competent judicial authority of the Member State where they are to be carried
out.

5.           The investigative measures
referred to in points (k) – (u) of paragraph 1 shall be subject to judicial
authorisation if required by the national law of the Member State where the
investigation measure is to be carried out.

6.           If the conditions set out in this
Article as well as those applicable under national law for authorising the
measure subject to the request are met, the authorisation shall be given within
48 hours in the form of a written and reasoned decision by the competent
judicial authority.

7.           The European Public Prosecutor’s Office
may request from the competent judicial authority the arrest or pre-trial
detention of the suspected person in accordance with national law.

Section 4
Termination of the investigation and powers of prosecution

Article 27
Prosecution before
national courts

1.           The European Public Prosecutor
and the European Delegated Prosecutors shall have the same powers as national
public prosecutors in respect of prosecution and bringing a case to judgement,
in particular the power to present trial pleas, participate in evidence taking
and exercise the available remedies.

2.           When the competent European
Delegated Prosecutor considers the investigation to be completed, he/she shall
submit a summary of the case with a draft indictment and the list of evidence
to the European Public Prosecutor for review. Where he/she does not instruct to
dismiss the case pursuant to Article 28, the European Public Prosecutor shall
instruct the European Delegated Prosecutor to bring the case before the
competent national court with an indictment, or refer it back for further
investigations. The European Public Prosecutor may also bring the case to the
competent national court himself/herself.

3.           The indictment submitted to the
competent national court shall list the evidence to be adduced in trial.

4.           The European Public Prosecutor
shall choose, in close consultation with the European Delegated Prosecutor
submitting the case and bearing in mind the proper administration of justice,
the jurisdiction of trial and determine the competent national court taking
into account the following criteria:

a)      the place where the offence, or in
case of several offences, the majority of the offences was committed;

b)      the place where the accused person has
his/her habitual residence;

c)      the place where the evidence is
located;

d)      the place where the direct victims
have their habitual residence.

5.           Where necessary for the purposes
of recovery, administrative follow-up or monitoring, the European Public
Prosecutor shall notify the competent national authorities, the interested
persons and the relevant Union institutions, bodies, agencies of the
indictment.

Article 28
Dismissal of the case

1.           The European Public Prosecutor
shall dismiss the case where prosecution has become impossible on account of
any of the following grounds:

a)      death of the suspected person;

b)      the conduct subject to investigation
does not amount to a criminal offence;

c)      amnesty or immunity granted to the
suspect;

d)      expiry of the national statutory
limitation to prosecute;

e)      the suspected person has already been
finally acquitted or convicted of the same facts within the Union or the case
has been dealt with in accordance with Article 29.

2.           The European Public Prosecutor may
dismiss the case on any of the following grounds:

a)      the offence is a minor offence
according to national law implementing Directive 2013/XX/EU on the fight
against fraud to the Union's financial interests by means of criminal law;

b)      lack of relevant evidence.

3.           The European Public Prosecutor’s Office
may refer cases dismissed by it to OLAF or to the competent national
administrative or judicial authorities for recovery, other administrative follow-up
or monitoring.

4.           Where the investigation was initiated
on the basis of information provided by the injured party, the European Public
Prosecutor’s Office shall inform that party thereof.

Article
29

Transaction

1.           Where the case is not dismissed
and it would serve the purpose of proper administration of justice, the European
Public Prosecutor’s Office may, after the damage has been compensated, propose
to the suspected person to pay a lump-sum fine which, once paid, entails the
final dismissal of the case (transaction). If the suspected person agrees, he/she
shall pay the lump sum fine to the Union.

2.           The European Public Prosecutor’s Office
shall supervise the collection of the financial payment involved in the
transaction.

3.           Where the transaction is accepted
and paid by the suspected person, the European Public Prosecutor shall finally
dismiss the case and officially notify the competent national law enforcement and
judicial authorities and shall inform the relevant Union institutions, bodies,
agencies thereof.

4.           The dismissal referred to in
paragraph 3 shall not be subject to judicial review.

Section 5
ADMISSIBILITY OF EVIDENCE

Article 30
Admissibility of evidence

1.           Evidence presented by the European
Public Prosecutor’s Office to the trial court, where the court considers that
its admission would not adversely affect the fairness of the procedure or the
rights of defence as enshrined in Articles 47 and 48 of the Charter of
Fundamental Rights of the European Union, shall be admitted in the trial
without any validation or similar legal process even if the national law of the
Member State where the court is located provides for different rules on
the collection or presentation of such evidence.

2.           Once the evidence is admitted, the
competence of national courts to assess freely the evidence presented by the European
Public Prosecutor’s Office at trial shall not be affected.

Section 6
Confiscation

Article 31
Disposition of the
confiscated assets

Where at the request of the European Public
Prosecutor’s Office the competent national court has decided by a final ruling
to confiscate any property related to, or proceeds derived from, an offence
within the competence of the European Public Prosecutor’s Office, the monetary
value of such property or proceeds shall be transferred to the Union’s budget,
to the extent necessary to compensate the prejudice caused to the Union.

CHAPTER IV
PROCEDURAL SAFEGUARDS

Article 32
Scope of the rights of the
suspects and accused persons as well as other persons involved

1.           The activities of the European
Public Prosecutor’s Office shall be carried out in full compliance with the rights
of suspected persons enshrined in the Charter of Fundamental Rights of the
European Union, including the right to a fair trial and the rights of defence.

2.           Any suspect and accused person
involved in the proceedings of the European Public Prosecutor’s Office shall,
as a minimum, have the following procedural rights as they are provided for in
Union legislation and the national law of the Member State:

(a) 
the right to interpretation and translation, as
provided for in Directive 2010/64/EU of the European Parliament and of the
Council,

(b) 
the right to information and access to the case
materials, as provided for in Directive 2012/13/EU of the European Parliament
and of the Council,

(c) 
the right of access to a lawyer and the right to
communicate with and have third persons informed in case of detention, as
provided for in [Directive 2013/xx/EU of the European Parliament and of the
Council of xx xxxx 2013 on the right of access to a lawyer in criminal
proceedings and on the right to communicate upon arrest],

(d) 
the right to remain silent and the right to be
presumed innocent,

(e) 
the right to legal aid,

(f) 
the right to present evidence, appoint experts
and hear witnesses.

3.           Suspects and accused persons
shall have the rights listed in paragraph 2 from the time that they are suspected
of having committed an offence. Once the indictment has been acknowledged by
the competent national court, the suspect and accused person's procedural
rights shall be based on the national regime applicable in the relevant case.

4.           The rights listed in paragraph 2
shall also apply to any person other than a suspect or accused person who is
heard by the European Public Prosecutor’s Office if, in the course of
questioning, interrogation or hearing, he/she becomes suspected of having
committed a criminal offence.

5.           Without prejudice to the rights
provided in this Chapter, suspects and accused persons as well as other persons
involved in the proceedings of the European Public Prosecutor’s Office shall
have all the procedural rights available to them under the applicable national
law.

Article 33
Right to remain silent and
to be presumed innocent

1.           The suspect and accused person
involved in the proceedings of the European Public Prosecutor’s Office shall
have, in accordance with national law, the right to remain silent when
questioned, in relation to the facts that he/she is suspected of having
committed, and shall be informed that he/she is not obliged to incriminate
himself/herself.

2.           The suspect and accused person
shall be presumed innocent until proven guilty according to national law.

Article 34
Right to legal aid

Any person suspected or accused of an
offence within the scope of the competence of the European Public Prosecutor’s Office
shall have, in accordance with national law, the right to be given legal
assistance free or partially free of charge by national authorities if he/she
has insufficient means to pay for it.

Article 35
Rights concerning evidence

1.            The suspect and accused person shall have, in accordance with
national law, the right to present evidence to the consideration of the European
Public Prosecutor’s Office.

2.            The suspect and accused person shall have, in accordance with
national law, the right to request the European Public Prosecutor’s Office to
gather any evidence relevant to the investigation, including appointing experts
and hearing witnesses.

CHAPTER V
JUDICIAL REVIEW

Article 36
Judicial review

1.           When adopting procedural measures
in the performance of its functions, the European Public Prosecutor’s Office shall
be considered as a national authority for the purpose of judicial review.

2.           Where provisions of national law
are rendered applicable by this Regulation, such provisions shall not be
considered as provisions of Union law for the purpose of Article 267 of the
Treaty.

CHAPTER VI
DATA PROTECTION

Article 37
Processing of personal
data

1.           The European Public Prosecutor’s Office
may process by automated means or in structured manual files in accordance with
this Regulation only the personal data listed in point 1 of the Annex, on
persons who, under the national legislation of the Member States concerned are
suspected of having committed or having taken part in an offence in respect of
which the European Public Prosecutor’s Office is competent, or who have been
convicted of such an offence, for the following purposes:

– 
criminal investigations and prosecutions
undertaken in accordance with the present Regulation;

– 
information exchange with the competent
authorities of Member States and other Union bodies in accordance with the present
Regulation;

– 
co-operation with third countries in accordance
with the present Regulation.

2.           The European
Public Prosecutor’s Office may process only the personal data listed in point 2
of the Annex, on persons who, under the national legislation of the Member
States concerned, are regarded as witnesses or victims in a criminal
investigation or prosecution regarding one or more of the types of offence for
which the European Public Prosecutor’s Office is competent, or persons under
the age of 18. The processing of such personal data may
only take place if it is strictly necessary for the purposes specified in
paragraph 1.

3.           In exceptional cases, the European
Public Prosecutor’s Office may also, for a limited period of time which shall
not exceed the time needed for the conclusion of the case related to which the
data are processed, process personal data other than those referred to in
paragraphs 1 and 2 relating to the circumstances of an offence where they are
immediately relevant to and included in on-going investigations which the European
Public Prosecutor’s Office is pursuing and when their processing is strictly
necessary for the purposes specified in paragraph 1, provided that the
processing of such specific data takes place in accordance with this Regulation.
The Data Protection Officer referred to in Article 41 shall be informed
immediately of recourse to this paragraph.

4.           Personal data, processed by
automated or other means, revealing racial or ethnic origin, political
opinions, religious or philosophical beliefs, trade union membership, and data
concerning health or sex life may be processed by the European Public
Prosecutor’s Office only when such data are strictly necessary for his
investigations and if they supplement other personal data already processed.
The Data Protection Officer shall be informed immediately of recourse to this
paragraph. Such data may not be processed in the Index referred to in Article 22(4).
Where such other data refer to witnesses or victims within the meaning of paragraph
2, the decision to process them shall be taken by the European Public
Prosecutor.

5.           Regulation (EC) No 45/2001 shall
apply to the processing of personal data by the EPPO in the context of its
activities. This Regulation particularises and complements Regulation (EC) No
45/2001 in as far as operational personal data are concerned.

Article 38
Time limits for the
storage of personal data

1.           Personal data processed by the European
Public Prosecutor’s Office may not be stored beyond the first applicable among
the following dates:

a)      the date on which prosecution is
barred under the statute of limitations of all the Member States concerned by
the investigation and prosecutions;

b)      the date on which the person has been
acquitted and the judicial decision became final;

c)      three years after the date on which
the judicial decision of the last of the Member States concerned by the
investigation or prosecutions became final;

d)      the date on which the European Public
Prosecutor’s Office established that it was no longer necessary for it to continue
the investigation or prosecution.

2.           Observance of the storage deadlines
referred to in paragraph 1 shall be reviewed constantly by appropriate
automated processing. Nevertheless, a review of the need to store the data shall
be carried out every three years after they were entered. If data concerning
persons referred to in the Annex are stored for a period exceeding five years,
the European Data Protection Supervisor shall be informed accordingly.

3.           When one of the storage deadlines
referred to in paragraph 1 has expired, the European Public Prosecutor’s Office
shall review the need to store the data longer in order to enable it to perform
its tasks and it may decide by way of derogation to store those data until the
following review. The reasons for the continued storage shall be justified and
recorded. If no decision is taken on the continued storage of personal data,
those data shall be deleted automatically after three years.

4.           Where, in accordance with
paragraph 3, data has been stored beyond the dates referred to in paragraph 1,
a review of the need to store those data shall take place every three years by
the European Data Protection Supervisor.

5.           Where a file exists containing
non-automated and unstructured data, once the deadline for storage of the last
item of automated data from the file has elapsed all documents in the file and
any copies shall be destroyed.

Article 39
Logging and documentation

1.           For the purposes of verification
of the lawfulness of the data processing, self-monitoring and ensuring proper
data integrity and security, the European Public Prosecutor’s Office shall keep
records of any collection, alteration, access, disclosure, combination or
erasure of personal data used for operational purposes. Such logs or
documentation shall be deleted after 18 months, unless the data are further
required for on-going control.

2.           Logs or documentation prepared
under paragraph 1 shall be communicated on request to the European Data
Protection Supervisor. The European Data Protection Supervisor shall use this
information only for the purpose of data protection supervision, ensuring
proper data processing, and data integrity and security.

Article 40
Authorised access to
personal data

Only the European
Public Prosecutor, the European Delegated Prosecutors and authorised members of
their staff may, for the purpose of achieving their tasks and within the limits
provided for in this Regulation, have access to personal data processed by the European Public Prosecutor’s Office for its
operational tasks.

Article 41
Data protection officer

1.           The European Public Prosecutor
shall appoint a Data Protection Officer in accordance with Article 24 of
Regulation (EC) No 45/2001.

2.           When complying with the
obligations set out in Article 24 of Regulation (EC) No 45/2001, the Data
Protection Officer shall:

a)      ensure that a written record of the
transfer of personal data is kept;

b)      cooperate with the staff of the
European Public Prosecutor’s Office responsible for procedures, training and
advice on data processing;

c)      prepare an annual report and
communicate that report to the European Public Prosecutor and to the European
Data Protection Supervisor.

3.           In the performance of his tasks,
the Data Protection Officer shall have access to all the data processed by the European
Public Prosecutor’s Office and to all of the Office’s premises.

4.           The staff members of the European Public Prosecutor’s Office assisting the Data Protection
Officer in the performance of his/her duties shall have access to the personal
data processed by it and to its premises to the extent necessary for the
performance of their tasks.

5.           If the Data Protection Officer
considers that the provisions of Regulation (EC) No 45/2001 or this Regulation
related to the processing of personal data have not been complied with, he/she
shall inform the European Public Prosecutor, requiring him/her to resolve the
non-compliance within a specified time. If the European Public Prosecutor does
not resolve the non-compliance of the processing within the specified time, the
Data Protection Officer shall refer the matter to the European Data Protection
Supervisor.

6.           The European Public Prosecutor
shall adopt the implementing rules referred to in Article 24(8) of Regulation (EC) No 45/2001.

Article 42
Modalities regarding the
exercise of the right of access

1.           Any data subject may exercise the
right of access to personal data in accordance with Regulation (EC) No 45/2001 and in particular Article 13
thereof.

2.           When the right of access is
restricted in accordance with Article 20 paragraph 1 of Regulation (EC) No 45/2001,
the European Public
Prosecutor’s Office shall inform the data subject in
accordance with Article 20(3) in writing. The
information about the principal reasons on which the
application of the restriction is based may be omitted where the provision of
such information would deprive the restriction of its effect. The data subject shall at least be informed that all necessary verifications by the
European Data Protection Supervisor have taken place.

3.           The European Public Prosecutor’s
Office shall document the grounds for omitting the
communication of the principal reasons on which the restriction referred to in
paragraph 2 is based.

4.           When in application of Articles
46 and 47 of Regulation (EC) No 45/2001, the European Data Protection Supervisor checks the
lawfulness of the processing performed by the European
Public Prosecutor’s Office, he/she shall inform the
data subject at least that all necessary verifications by the European Data
Protection Supervisor have taken place.

Article 43
Right to rectification,
erasure and restrictions on processing

1.           If personal data processed by the
European Public Prosecutor’s Office have to be rectified, erased or whose
processing has to be restricted in accordance with Articles 14, 15 or 16 of
Regulation (EC) No 45/2001 the European Public Prosecutor’s Office shall
rectify, erase or restrict the processing of such data.

2.           In the cases referred to in
Articles 14, 15 or 16 of Regulation (EC) No 45/2001, all addressees of such
data shall be notified forthwith in accordance with Article 17 of Regulation (EC)
No 45/2001. In accordance with rules applicable to them, the addressees shall
then rectify, erase or restrict the processing of those data in their systems.

3.           The European Public Prosecutor’s Office
shall inform the data subject in writing without undue delay and in any case
within three months of the receipt of the request that data concerning him or
her have been rectified, erased or their processing restricted.

4.           The European Public Prosecutor’s Office
shall inform the data subject in writing on any refusal of rectification, of
erasure or of restrictions to the processing, and the possibility of lodging a
complaint with the European Data Protection Supervisor and seeking a judicial
remedy.

Article 44
Responsibility in data
protection matters

1.           The European Public Prosecutor’s Office
shall process personal data in such a way that that it can be established which
authority provided the data or where the personal data has been retrieved from.

2.           The responsibility for compliance
with Regulation (EC) No 45/2001 and this Regulation shall lie with the European
Public Prosecutor. The responsibility for the legality of transfer of personal
data provided to the European Public Prosecutor’s Office shall lie with the
provider of the personal data, and with the European Public Prosecutor’s Office
for the personal data provided to Member States, Union bodies and third
countries or organisations.

3.           Subject to other provisions in
this Regulation, the European Public Prosecutor’s Office shall be responsible
for all data processed by it.

Article 45
Cooperation between the European
Data Protection Supervisor and national data protection authorities

1.           The European Data Protection
Supervisor shall act in close cooperation with national authorities competent
for data protection supervision with respect to specific issues requiring
national involvement, in particular if the European Data Protection Supervisor or
a national authority competent for data protection supervision finds major
discrepancies between practices of the Member States or potentially unlawful
transfers using the communication channels of the European Public Prosecutor’s Office,
or in the context of questions raised by one or more national supervisory
authorities on the implementation and interpretation of this Regulation.

2.           In cases referred to under
paragraph 1 the European Data Protection Supervisor and the national
authorities competent for data protection supervision may, each acting within
the scope of their respective competences, exchange relevant information,
assist each other in carrying out audits and inspections, examine difficulties
of interpretation or application of this Regulation, study problems related to
the exercise of independent supervision or to the exercise of the rights of
data subjects, draw up harmonised proposals for joint solutions to any problems
and promote awareness of data protection rights, as necessary.

3.           The National Supervisory
Authorities and the European Data Protection Supervisor shall meet for the
purposes outlined in this Article, as needed. The costs and servicing of these
meetings shall be for the account of the European Data Protection Supervisor. Rules
of procedure shall be adopted at the first meeting. Further working methods
shall be developed jointly as necessary.

Article 46
Right to lodge a complaint
with the European Data Protection Supervisor

1.           Where a complaint introduced by a
data subject pursuant to Article 32(2) of Regulation (EC) No 45/2001 relates to
a decision as referred to in Article 43, the European Data Protection
Supervisor shall consult the national supervisory bodies or the competent
judicial body in the Member State which was the source of the data or the
Member State directly concerned. The decision of the European Data Protection
Supervisor, which may extend to a refusal to communicate any information, shall
be taken in close cooperation with the national supervisory body or competent
judicial body.

2.           Where a complaint relates to the
processing of data provided to the European Public Prosecutor’s Office by Union
bodies, third countries or organisations or private parties, the European Data
Protection Supervisor shall ensure that the necessary checks have been carried
out by the European Public Prosecutor’s Office.

Article 47
Liability for unauthorised
or incorrect processing of data

1.           The European Public Prosecutor’s Office
shall be liable, in accordance with Article 340 of the Treaty, for any damage
caused to an individual which results from unauthorised or incorrect processing
of data carried out by it.

2.           Complaints against the European
Public Prosecutor’s Office pursuant to the liability referred to in paragraph 1
shall be heard by the Court of Justice in accordance with Article 268 of the
Treaty.

CHAPTER VII
FINANCIAL AND STAFF PROVISIONS

section 1
financial provisions

Article 48
Financial actors

1.           The European Public Prosecutor
shall be responsible for taking decisions on financial and budgetary matters.

2.           The Deputy designated by the European
Public Prosecutor in accordance with Article 6(3) shall be responsible for the implementation
of the budget of the European Public Prosecutor’s Office as authorising officer.

Article 49
Budget

1.           Estimates of all the revenue and
expenditure of the European Public Prosecutor’s Office shall be prepared for
each financial year, corresponding to the calendar year, and shall be shown in its
budget.

2.           The budget of the European Public
Prosecutor’s Office shall be balanced in terms of revenue and of expenditure.

3.           Without prejudice to other
resources, the revenue of the European Public Prosecutor’s Office shall
comprise:

a)      a contribution from the Union entered
in the general budget of the Union;

b)      charges for publications and any
service provided by the European Public Prosecutor’s Office.

4.           The expenditure of the European
Public Prosecutor’s Office shall include staff remuneration, administrative and
infrastructure expenses, and operating costs.

5.           Where European Delegated
Prosecutors act within the framework of the tasks of the European Public
Prosecutor’s Office, the relevant expenditure related to these activities shall
be regarded as operational expenditure.

Article 50
Establishment of the
budget

1.           Each year the Deputy of the European
Public Prosecutor referred to in Article 48 shall draw up a provisional draft
estimate of the revenue and expenditure of the European Public Prosecutor’s Office
for the following financial year. The European Public Prosecutor shall, on the
basis of that draft, produce a provisional draft estimate of the revenue and
expenditure of the European Public Prosecutor’s Office for the following
financial year.

2.           The provisional draft estimate of
the revenue and expenditure of the European Public Prosecutor’s Office shall be
sent to the Commission no later than 31 January each year. The European Public
Prosecutor shall send a final draft estimate, which shall include a draft
establishment plan, to the Commission by 31 March.

3.           The Commission shall send the
statement of estimates to the European Parliament and the Council (the
budgetary authority) together with the draft general budget of the Union.

4.           On the basis of the statement of
estimates, the Commission shall enter in the draft general budget of the Union
the estimates it considers necessary for the establishment plan and the amount
of the contribution to be charged to the general budget, which it shall submit
to the budgetary authority in accordance with Articles 313 and 314 of the
Treaty.

5.           The budgetary authority shall
authorise the appropriations for the contribution of the European Public
Prosecutor’s Office.

6.           The budgetary authority shall
adopt the establishment plan of the European Public Prosecutor’s Office.

7.           The European Public Prosecutor shall
adopt the budget of the European Public Prosecutor’s Office. It shall become
final following final adoption of the general budget of the Union. Where
necessary, it shall be adjusted accordingly.

8.           For any building project likely
to have significant implications for the budget the European Public
Prosecutor’s Office shall inform the European Parliament and the Council as
early as possible in accordance with the provisions of Article 203 of
Regulation (EU, Euratom) No 966/2012.

9.           Except in cases of force majeure
referred to in Article 203 of Regulation (EU, Euratom) No 966/2012 shall
deliberate upon the building project within four weeks of its receipt by both
institutions. The building project shall be deemed approved at the expiry of
this four-week period, unless the European Parliament or the Council take a
decision contrary to the proposal within that period of time. If the European
Parliament or the Council raise duly justified concerns within that four-week
period, that period shall be extended once by two weeks. If the European
Parliament or the Council take a decision contrary to the building project, the
European Public Prosecutor’s Office shall withdraw its proposal and may submit
a new one.

10.         The European Public Prosecutor’s Office
may finance a budget acquisition project through a loan subject to prior
approval of the budgetary authority in accordance with Article 203(8) of
Regulation (EU, Euratom) No 966/2012.

Article 51
Implementation of the budget

1.           The Deputy of the European Public
Prosecutor referred to in Article 48, acting as the authorising officer of the European
Public Prosecutor’s Office, shall implement its budget under his or her own
responsibility and within the limits authorised in budget.

2.           Each year the Deputy of the European
Public Prosecutor referred to in Article 48 shall send to the budgetary
authority all information relevant to the findings of the evaluation
procedures.

Article 52
Presentation of accounts
and discharge

1.           The accounting officer of
Eurojust shall act as the accounting officer of the European Public
Prosecutor’s Office in the implementation of its budget. The necessary
arrangements so as to avoid any conflict of interest shall be made.

2.           By 1 March following each
financial year, the accounting officer of the European Public Prosecutor’s Office
shall send the provisional accounts to the Commission's Accounting Officer and
the Court of Auditors.

3.           The European Public Prosecutor’s Office
shall send the report on the budgetary and financial management to the European
Parliament, the Council and the Court of Auditors, by 31 March of the following
financial year.

4.           By 31 March following each
financial year, the Commission's accounting officer shall send the provisional
accounts of the European Public Prosecutor’s Office consolidated with the
Commission’s accounts to the Court of Auditors.

5.           In accordance with Article 148(1)
of Regulation (EU, Euratom) No 966/2012, the Court of Auditors shall, by 1 June
of the following year at the latest, make its observations on the provisional
accounts of the European Public Prosecutor’s Office.

6.           On receipt of the Court of
Auditors' observations on the provisional accounts of the European Public
Prosecutor’s Office pursuant to Article 148 of Regulation (EU, Euratom) No 966/2012,
the accounting officer of the European Public Prosecutor’s Office shall draw up
its final accounts under his/her own responsibility.

7.           The accounting officer of the
European Public Prosecutor’s Office shall, by 1 July following each financial
year, send the final accounts to the European Parliament, the Council, the
Commission and the Court of Auditors.

8.           The final accounts of the European
Public Prosecutor’s Office shall be published in the Official Journal of the
European Union by 15 November of the following year.

9            The deputy of the European Public
Prosecutor referred to in Article 48 shall send the Court of Auditors a reply
to its observations by 30 September of the following year at the latest. The
replies of the European Public Prosecutor’s Office shall be sent to the
Commission at the same time.

10.         The Deputy of the European Public
Prosecutor referred to in Article 48 shall submit to the European Parliament,
at the latter's request, any information required for the smooth application of
the discharge procedure for the financial year in question in accordance with
Article 165(3) of Regulation (EU, Euratom) No 966/2012.

11.         On a recommendation from the
Council acting by a qualified majority, the European Parliament, shall, before
15 May of year N + 2, give a discharge to the deputy of the European Public
Prosecutor referred to in Article 48 in respect of the implementation of the
budget for year N.

Article 53
Financial rules

The financial rules applicable to the European
Public Prosecutor’s Office shall be adopted by the European Public Prosecutor
in accordance with [Regulation 2343/2002 of 23 December 2002 on the framework
Financial Regulation for the bodies referred to in Article 185 of Council Regulation
(EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the
general budget of the European Communities] and after consultation with the
Commission. They shall not depart from [Regulation 2343/2002] unless
such departure is specifically required for the operation of the European
Public Prosecutor’s Office and the Commission has given its prior consent.

Section 2
STAFF PROVISIONS

Article 54 
General provisions

1.           The Staff Regulations of the
European Union[9]
and the Conditions of Employment of Other Servants of the European Union and
the rules adopted by agreement between the institutions of the European Union
for giving effect to those Staff Regulations and those Conditions of Employment
of Other Servants shall apply to the European Public Prosecutor, the Deputies
and the staff of the European Public Prosecutor’s Office, unless otherwise
stipulated in this Section.

2.           The powers conferred on the
appointing authority by the Staff Regulations and by the Conditions of
Employment of Other Servants to conclude Contracts of Employment shall be
exercised by the European Public Prosecutor with respect to the staff of the European
Public Prosecutor’s Office.

3.           The European Public Prosecutor
shall adopt appropriate implementing rules to the Staff Regulations and the
Conditions of Employment of Other Servants in accordance with Article 110 of
the Staff Regulations. The European Public Prosecutor shall also adopt staff
resource programming as part of the programming document.

4.           The Protocol on the Privileges
and Immunities of the European Union shall apply to the European Public
Prosecutor’s Office and its staff.

5.           European Delegated Prosecutors
shall be engaged as Special Advisors in accordance with Articles 5, 123 and 124
of the Conditions of Employment of Other Servants of the European Union. The
competent national authorities shall facilitate the exercise of the functions
of European Delegated Prosecutors under this Regulation and refrain from any
action or policy which may adversely affect their career and status in the
national prosecution system. In particular, the competent national authorities
shall provide the European Delegated Prosecutors with the resources and
equipment necessary to exercise their functions under this Regulation, and
ensure that they are fully integrated into their national prosecution services.

Article 55
Seconded national experts
and other staff

1.           The European Public Prosecutor’s Office
may make use of Seconded national experts or other persons not employed by it. The
Seconded national experts shall be subject to the authority of the European
Public Prosecutor in the exercise of tasks related to the functions of the
European Public Prosecutor’s Office.

2.           The European Public Prosecutor
shall adopt a decision laying down rules on the secondment of national experts to
the European Public Prosecutor’s Office and further implementing provisions as
may be necessary.

CHAPTER VIII
PROVISIONS ON THE RELATIONS OF THE EUROPEAN PUBLIC PROSECUTOR’S OFFICE WITH ITS
PARTNERS

Section 1
COMMON PROVISIONS

Article 56
Common provisions

1.           In so far as necessary for the
performance of its tasks, the European Public Prosecutor’s Office may establish
and maintain cooperative relations with Union bodies or agencies in accordance
with the objectives of those bodies or agencies, the competent authorities of
third countries, international organisations and the International Criminal
Police Organisation (Interpol).

2.           In so far as relevant to the
performance of its tasks, the European Public Prosecutor’s
Office may, in accordance with Article 61, directly
exchange all information, with the exception of personal data, with the
entities referred to in paragraph 1.

3.           The European
Public Prosecutor’s Office may receive, in accordance
with Article 4 of Regulation (EC) No 45/2001, and process personal data received from the entities
referred to in paragraph 1 in so far as necessary for the performance of its
tasks and subject to the provisions of Section 3.

4.           Personal data shall only be
transferred by the European Public Prosecutor’s Office to third countries, international organisations, and Interpol if
this is necessary for preventing and combating offences that fall under the
competence of the European Public Prosecutor’s Office and in accordance with this Regulation.

5.           Onward transfers to third parties
of personal data received from the European Public
Prosecutor’s Office by Member States, Union bodies or agencies, third countries and
international organisations or Interpol shall be prohibited unless the European Public Prosecutor’s Office has
given its explicit consent after considering the circumstances of the case at
hand, for a specific purpose that is not incompatible with the purpose for
which the data was transmitted.

SECTION 2
RELATIONS WITH PARTNERS

Article 57
Relations with Eurojust

1.           The European
Public Prosecutor’s Office shall establish and maintain
a special relationship with Eurojust based on close cooperation and the
development of operational, administrative and management links between them as
defined below.

2.           In operational matters, the European Public Prosecutor’s Office may
associate Eurojust with its activities concerning cross-border or complex cases
by:

a)      sharing information, including
personal data, on its investigations, in particular where they reveal elements
which may fall outside the material or territorial competence of the European Public Prosecutor’s Office;

b)      requesting Eurojust or its competent national
member(s) to participate in the coordination of specific acts of investigation
regarding specific aspects which may fall outside the material or territorial
competence of the European Public Prosecutor’s Office;

c)      facilitating the agreement between the
European Public Prosecutor’s Office and the Member State(s) concerned on ancillary competence in
accordance with Article 13 without prejudice to a
possible settlement by the judicial authority of the Member State concerned and
competent to decide on the matter;

d)      requesting Eurojust or its competent national
member(s) to use the powers attributed to them by Union legislation or national
law regarding specific acts of investigation which may fall outside the
material or territorial competence of the European
Public Prosecutor’s Office;

e)      sharing information with Eurojust or
its competent national member(s) on prosecution decisions referred to at
Articles 27, 28 and 29 before their submission to the European Public
Prosecutor where Eurojust competences may be affected and this is appropriate
in the light of Eurojust’s previous involvement in the case;

f)       requesting Eurojust or its competent national
member(s) to provide support in the transmission of its decisions or requests
for mutual legal assistance to, and execution in, States members of Eurojust
but not taking part in the establishment of the European
Public Prosecutor’s Office or third countries.

3.           The European
Public Prosecutor’s Office shall have access to a
mechanism for automatic cross-checking of data in Eurojust’s Case Management
System. Whenever a match is found between data entered into the Case Management
System by the European Public Prosecutor’s Office and data entered by Eurojust, the fact that there is a match will
be communicated to both Eurojust and the European
Public Prosecutor’s Office, as well as the Member State
which provided the data to Eurojust. In cases where the data was provided by a
third country, Eurojust will only inform that third country of the match found
with the consent of the European Public Prosecutor’s Office.

4.           The cooperation established in
accordance with paragraph 1 shall entail the exchange of information, including
personal data. Any data thus exchanged shall only be used for the purposes for
which it was provided. Any other usage of the data shall only be allowed in as
far as such usage falls within the mandate of the body receiving the data, and
subject to the prior authorisation of the body which provided the data.

5.           The European Public Prosecutor
shall designate the staff members authorised to have access to the results of
the cross-checking mechanism and inform Eurojust thereof.

6.           The European
Public Prosecutor’s Office shall rely on the support
and resources of the administration of Eurojust. The
details of this arrangement shall be regulated by an Agreement.
Eurojust shall provide the following services to the European
Public Prosecutor’s Office:

a)      technical support in the preparation
of the annual budget, the programming document containing the annual and
multi-annual programming, and the management plan;

b)      technical support in staff recruitment
and career-management;

c)      security services;

d)      Information Technology services;

e)      financial management, accounting and
audit services;

f)       any other services of common
interest.

Article 58
Relations with Union
institutions, agencies and other bodies

1.           The European Public Prosecutor’s Office
shall develop a special relationship with Europol.

2            The cooperation established in
accordance with paragraph 1 shall entail the exchange of information, including
personal data. Any data thus exchanged shall only be used for the purposes for
which it was provided. Any other usage of the data shall only be allowed in as
far as such usage falls within the mandate of the body receiving the data, and
subject to the prior authorisation of the body which provided the data.

3.           The European Public Prosecutor’s Office
shall cooperate with the Commission, including OLAF, for the purpose of
implementing the obligations under Article 325(3) of the Treaty. To this end,
they shall conclude an agreement setting out the modalities of their
cooperation.

4.           The European Public Prosecutor’s Office
shall establish and maintain cooperative relations with other Union
institutions, bodies, offices and agencies.

Article 59
Relations with third
countries and international organisations

1.           The European Public Prosecutor’s Office
may establish working arrangements with the entities referred to in Article 56(1).
Such working arrangements may, in particular, concern the exchange of strategic
information and the secondment of liaison officers to the European Public
Prosecutor’s Office.

2.           The European Public Prosecutor’s Office
may designate, in agreement with the competent authorities, contact points in
third countries in order to facilitate cooperation.

3.           In accordance with Article 218 of
the Treaty, the European Commission may submit to the Council proposals for the
negotiation of agreements with one or more third countries regarding the
cooperation between the European Public Prosecutor's Office and the competent authorities
of these third countries with regard to legal assistance in criminal matters
and extradition in cases falling under the competence of the European Public
Prosecutor's Office.

4.           Concerning the criminal offences
within its material competence, the Member States shall either recognise the European
Public Prosecutor’s Office as a competent authority for the purpose of the
implementation of their international agreements on legal assistance in
criminal matters and extradition, or, where necessary, alter those
international agreements to ensure that the European Public Prosecutor's Office
can exercise its functions on the basis of such agreements when it assumes its
tasks in accordance with Article 75(2).

SECTION 3
TRANSFER OF PERSONAL DATA

Article 60
Transfer of personal data
to Union bodies or
agencies

Subject to any restrictions pursuant to
this Regulation, the European Public Prosecutor’s Office may directly transfer
personal data to Union bodies or agencies in so far as it is necessary for the
performance of its tasks or those of the recipient Union body or agency.

Article 61
Transfer of personal data
to third countries and international organisations

1.           The European Public Prosecutor’s Office
may transfer personal data to an authority of a third country or to an
international organisation or Interpol, in so far as this is necessary for it
to perform its tasks, only on the basis of:

a)      a decision of the Commission adopted
in accordance with [Articles 25 and 31 of Directive 95/46/EC] that that country
or international organisation, or a processing sector within that third country
or international organisation ensures an adequate level of protection (adequacy
decision); or

b)      an international agreement concluded
between the Union and that third country or international organisation pursuant
to Article 218 of the Treaty adducing adequate safeguards with respect to the
protection of privacy and fundamental rights and freedoms of individuals.

Such transfer does not require further
authorisation.

The European Public Prosecutor’s Office may
conclude working arrangements to implement such agreements or adequacy decisions.

2.           By way of derogation from
paragraph 1, the European Public Prosecutor may authorise the transfer of
personal data to third countries or international organisations or Interpol on
a case-by-case basis if:

a)      the transfer of data is absolutely
necessary to safeguard the essential interests of the Union, including its
financial interests, within the scope of the objectives of the European Public
Prosecutor’s Office;

b)      the transfer of the data is absolutely
necessary in the interests of preventing imminent danger associated with crime
or terrorist offences;

c)      the transfer is otherwise necessary or
legally required on important public interest grounds of the Union or its
Member States, as recognised by Union law or by national law, or for the
establishment, exercise or defence of legal claims; or

d)      the transfer is necessary to protect
the vital interests of the data subject or another person.

3.           Moreover the European Public
Prosecutor may, in agreement with the European Data Protection Supervisor,
authorise a set of transfers in conformity with points a) to d) above, taking
into account the existence of safeguards with respect to the protection of
privacy and fundamental rights and freedoms of individuals, for a period not
exceeding one year, renewable.

4.           The European Data Protection
Supervisor shall be informed of cases where paragraph 3 was applied.

5.           The European Public Prosecutor’s
Office may transfer administrative personal data in accordance with Article 9
of Regulation (EC) No 45/2001.

CHAPTER IX
GENERAL PROVISIONS

Article 62
Legal status and operating
conditions

1.           In each of the Member States the European
Public Prosecutor’s Office shall enjoy the most extensive legal capacity
accorded to legal persons under their laws. It may, in particular, acquire and
dispose of movable and immovable property and be party to legal proceedings.

2.           The necessary arrangements
concerning the accommodation provided for the European Public Prosecutor's
Office and the facilities made available by the host Member State together with
the specific rules applicable in that Member State to the European Public
Prosecutor, his/her Deputies and their staff, and members of their families,
shall be laid down in a Headquarters Agreement concluded between the European
Public Prosecutor's Office and the host Member State no later than [2 years
after the entry into force of this regulation].

3.           The host Member State of the European
Public Prosecutor's Office shall provide the best possible conditions to ensure
the functioning of the European Public Prosecutor's Office, including
multilingual, European-oriented schooling and appropriate transport
connections.

Article 63
Language arrangements

1.           Regulation No 1[10] shall apply to the acts
provided in Articles 7 and 72.

2.           The translation services required
for the functioning of the European Public Prosecutor’s Office shall be
provided by the Translation Centre of the bodies of the European Union.

Article 64
Confidentiality

1.           The European Public Prosecutor,
the Deputies and the staff, European Delegated Prosecutors and their national staff
shall be bound by an obligation of confidentiality with respect to any
information which has come to their knowledge in the course of the performance
of their tasks.

2.           The obligation of confidentiality
shall apply to all persons and to all bodies called upon to work with the European
Public Prosecutor’s Office.

3.           The obligation of confidentiality
shall also apply after leaving office or employment or after the termination of
the activities of the persons referred to in paragraphs 1 and 2.

4.           The obligation of confidentiality
shall apply to all information received by the European Public Prosecutor’s Office,
unless that information has already been made public or is accessible to the
public.

5.           Members and the staff of the
European Data Protection Supervisor shall be subject to the obligation of
confidentiality with respect to any information which has come to their
knowledge in the course of the performance of their tasks.

Article 65
Transparency

1.           Regulation (EC) No 1049/2001
shall apply to documents which relate to the administrative tasks of the
European Public Prosecutor’s Office.

2.           The European Public Prosecutor
shall, within six months of the date of its establishment, adopt the detailed
rules for applying Regulation (EC) No 1049/2001.

3.           Decisions taken by the European
Public Prosecutor’s Office under Article 8 of Regulation (EC) No 1049/2001 may
form the subject of a complaint to the Ombudsman or of an action before the
Court of Justice of the European Union, under the conditions laid down in
Articles 228 and 263 of the Treaty respectively.

Article 66
OLAF and the European
Court of Auditors

1.           In order to facilitate combating
fraud, corruption and other unlawful activities under Regulation (EC) No
1073/1999 of the European Parliament and of the Council[11], within six months from the
day the European Public Prosecutor’s Office becomes operational, it shall
accede to the Interinstitutional Agreement of 25 May 1999 concerning internal
investigations by OLAF and adopt the appropriate provisions applicable to all
the employees of the European Public Prosecutor’s Office using the template set
out in the Annex to that Agreement.

2.           The European Court of Auditors
shall have the power of audit, on the basis of documents and on the spot, over
all grant beneficiaries, contractors and subcontractors who have received Union
funds from the European Public Prosecutor’s Office.

3.           OLAF may carry out
investigations, including on-the-spot checks and inspections, in accordance
with the provisions and procedures laid down in Regulation (EC) No 1073/1999
and Council Regulation (Euratom, EC) No 2185/96[12] with a view to establishing
whether there have been any irregularities affecting the financial interests of
the Union in connection with expenditure funded by the European Public
Prosecutor’s Office.

4.           Without prejudice to paragraphs
1, 2 and 3, working arrangements with third countries and international
organisations or Interpol, contracts, grant agreements and grant decisions of
the European Public Prosecutor’s Office shall contain provisions expressly
empowering the European Court of Auditors and OLAF to conduct such audits and
investigations, according to their respective competences.

Article 67
Security rules on the
protection of classified information

The European Public Prosecutor’s Office shall
apply the security principles contained in the Commission's security rules for
protecting European Union Classified Information (EUCI) and sensitive
non-classified information, as set out in the annex to Commission Decision
2001/844/EC, ECSC, Euratom[13].
This shall cover, inter alia, provisions for the exchange, processing and
storage of such information.

Article 68
Administrative inquiries

The administrative activities of the European
Public Prosecutor’s Office shall be subject to the inquiries of the European
Ombudsman in accordance with Article 228 of the Treaty.

Article 69
General regime of
liability

1.           The contractual liability of the
European Public Prosecutor’s Office shall be governed by the law applicable to
the contract in question.

2.           The Court of Justice of the European
Union shall have jurisdiction to give judgment pursuant to any arbitration
clause contained in a contract concluded by the European Public Prosecutor’s Office.

3.           In the case of non-contractual
liability, the European Public Prosecutor’s Office shall, in accordance with
the general principles common to the laws of the Member States and independently
of any liability under Article 47, make good any damage caused by the European
Public Prosecutor’s Office or its staff in the performance of their duties in
so far as it may be imputed to them.

4.           Paragraph 3 shall also apply to
damage caused through the fault of a European Delegated Prosecutor in the
performance of his duties.

5.           The Court of Justice of the
European Union shall have jurisdiction in disputes over compensation for
damages referred to in paragraph 3.

6.           The national courts of the Member
States competent to deal with disputes involving the liability of the European
Public Prosecutor’s Office as referred to in this Article shall be determined
by reference to Council Regulation (EC) No 44/2001[14]

7.           The personal liability of its
staff towards the European Public Prosecutor’s Office shall be governed by the
provisions laid down in the Staff Regulations or Conditions of Employment
applicable to them.

Article 70
Reporting

1.           The European
Public Prosecutor’s Office shall issue an Annual Report
on its general activities. It shall transmit this report to the European
Parliament and to national Parliaments, as well as to the Council and the
Commission.

2.           The European Public Prosecutor
shall appear once a year before the European Parliament and the Council to give
account of the general activities of the European
Public Prosecutor’s Office, taking into account the
obligation of discretion and confidentiality. Upon request, he/she shall also
appear before the Commission.

3.           National Parliaments may invite the
European Public Prosecutor or European Delegated Prosecutors to participate in
an exchange of views in relation to the general activities of the European Public Prosecutor’s Office.

CHAPTER X
FINAL PROVISIONS

Article 71
Transitional provisions

1.           Before exercising its tasks the
European Public Prosecutor shall take any measures necessary for the setting up
of the European Public Prosecutor’s Office.

2.           Without prejudice to Article 9,
the first appointment of two of the Deputies to the European Public Prosecutor,
to be chosen by lot, shall be made for a period of 6 years.

3.           Member States shall remain
competent until the date on which the European Public Prosecutor's Office has
been set up and assumed its tasks in accordance with Article 75(2). The
European Public Prosecutor's Office shall exercise its competence with regard
to any offence within its competence committed after that date. The European
Public Prosecutor’s Office may also exercise its competence with regard to any
offence within its competence committed before that date if no competent
national authority is already investigating or prosecuting it.

Article 72
Administrative rules and
programme documents

The European Public Prosecutor shall:

a)           adopt each year the programming
document containing annual and multi-annual programming of the European Public
Prosecutor’s Office;

b)           adopt an anti-fraud strategy,
which is proportionate to the fraud risks having regard to the cost-benefit of
the measures to be implemented;

c)           adopt rules for the prevention
and management of conflicts of interest in respect of the European Delegated Prosecutors;

d)           adopt rules on the status, performance
criteria, rights and obligations of the Deputies and the European Delegated
Prosecutors, as well as the rotation of European Delegated Prosecutors for the
purpose of implementing Article 7;

e)           adopt rules on the handling of
transactions made in accordance with Article 29 and the modalities to calculate
the amounts of the fine to be paid;

f)            adopt rules on the modalities of
giving feedback to persons or entities which have provided information to the
European Public Prosecutor’s Office;

g)           adopt detailed rules concerning
the application of Regulation (EC) No 1049/2001 in its activities;

h)           implementing rules referred to in
Article 24(8) of Regulation (EC) No 45/2001.

Article 73
Notifications

Each Member State shall designate the
authorities which are competent for the purposes of Articles 6(6), 13(3), 17(2)
and 26(4). Information on the designated authorities, as well as on any
subsequent change, shall be notified simultaneously to the European Public
Prosecutor, the Council and the Commission.

Article 74
Review clause

1.           By [five years after the start
of application of this Regulation] at the latest the Commission shall present
its evaluation report to the European Parliament and the Council on the
implementation of this Regulation, which may be accompanied by any legislative
proposals. The report shall contain its findings on the feasibility and
advisability of extending the competence of the European Public Prosecutor’s Office
to other criminal offences in accordance with Article 86(4) of the Treaty.

2.           The Commission shall submit
legislative proposals to the European Parliament and the Council if it
concludes that more detailed rules on the setting up of the European Public
Prosecutor’s Office, its functions or the procedure applicable to its
activities are necessary. It may recommend to the European Council the
extension of the competence of the European Public Prosecutor’s Office in
accordance with Article 86(4) of the Treaty.

Article 75
Entry into force

1.           This Regulation shall enter into
force on the twentieth day following that of its publication in the Official
Journal of the European Union.

2.           The European Public Prosecutor’s Office
shall assume the investigative and prosecutorial tasks conferred on it by this
Regulation on a date to be determined by a decision of the Commission on a
proposal of the European Public Prosecutor once the European Public
Prosecutor's Office is set up. The decision of the Commission shall be
published in the Official Journal of the European Union.

This Regulation shall be binding in its
entirety and directly applicable in the Member States in accordance with the
Treaties.

Done at Brussels,

For
the Council

The
President

Annex

Categories of personal data

1.           a)       surname, maiden name,
given names and any alias or assumed names;

b)      date and place of birth;

c)      nationality;

d)      sex;

e)      place of residence, profession and
whereabouts of the person concerned;

f)       social security numbers, driving
licences, identification documents, passport data, customs and Tax
Identification Numbers;

g)      information concerning legal persons
if it includes information relating to identified or identifiable individuals
who are the subject of a judicial investigation or prosecution;

h)      bank accounts and accounts with other
financial institutions;

i)       description and nature of the alleged
offences, the date on which they were committed, the criminal category of the
offences and the progress of the investigations;

j)       the facts pointing to an
international extension of the case;

k)      details relating to alleged membership
of a criminal organisation;

l)       telephone numbers, e-mail addresses,
traffic data and location data, as well as the related data necessary to identify
the subscriber or user;

m)     vehicle registration data;

n)      DNA profiles established from the
non-coding part of DNA, photographs and fingerprints.

2.           a)       surname, maiden name,
given names and any alias or assumed names;

b)      date and place of birth;

c)      nationality;

d)      sex;

e)      place of residence, profession and
whereabouts of the person concerned;

f)       the description and nature of the
offences involving them, the date on which they were committed, the criminal
category of the offences and the progress.

LEGISLATIVE FINANCIAL STATEMENT

1.           FRAMEWORK OF THE
PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Commission proposal for a Council Regulation on the establishment of
the European Public Prosecutor's Office

1.2.        Policy area(s) concerned
in the ABM/ABB structure

Policy area: Justice

Activity: title 33

1.3.        Nature of the
proposal/initiative

X The proposal/initiative relates to a new action

 ̈ The proposal/initiative
relates to a new action following a pilot project/preparatory action

X The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objective(s)

1.4.1.     The Commission's
multiannual strategic objective(s) targeted by the proposal/initiative

To contribute to the strengthening of the protection of the
Union's financial interests and further development of an area of justice,
and to enhance the trust of EU businesses and citizens in the Union’s
institutions, while respecting all fundamental rights enshrined in the Charter
of Fundamental Rights of the European Union.

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Specific Objective No 2 Enhance judicial
cooperation in criminal matters and thus contribute to creating a genuine
European Area of Justice

(part of general Objective n° 2: Strengthen
confidence in the European Judicial Area)

ABM/ABB activity(ies) concerned

33 03: Justice in criminal and civil matters

1.4.3.     Expected result(s) and
impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

The establishment of the European Public Prosecutor’s Office is
expected to increase the protection of the Union's financial interests. Its
establishment is expected to lead to an increase in the number of prosecutions
of the perpetrators of crimes affecting the financial interests, leading to a
higher number of convictions, a higher level of recovery of illegally obtained
funds and increased deterrence. In addition, its independence will ensure that
investigations and prosecutions of the relevant crimes will be taken forward
without direct influence of national authorities.

1.4.4.     Indicators of results and
impact

Specify the
indicators for monitoring implementation of the proposal/initiative.

Increased number and percentage of successful criminal
investigations and prosecutions

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

Whereas both the Union and the Member States have an obligation to
protect the Union's budget, in reality the Union has little control over the
expenditure by Member States and virtually no power to intervene in cases of
criminal misuse of the EU's funds. The vast majority of the EU budget is
managed by national authorities (for example when they award public procurement
grants financed through the EU budget) and any criminal investigations or
prosecutions concerning offences affecting the Union's budget are within the
competence of the Member States. Criminal investigations into fraud and other
crimes against the EU budget are often hampered by divergent legislation
and uneven enforcement efforts in the Member States. National law
enforcement authorities, prosecutors and judges in the Member States decide in
accordance with priorities set by national criminal policy and on the
basis of national criminal law competences and procedural rules whether and, if
so, how they intervene to protect the Union's budget. Consequently, the level
of protection of the Union's financial interests differs significantly
from one Member State to another. The fact that the rate of successful
prosecutions concerning offences against the EU budget varies considerably
across the EU from one Member State to another (from 19% to 91%[15]) shows a gap in the
existing protection mechanisms and calls for corrective measures.

1.5.2.     Added value of EU
involvement

The added value of establishing a European Public Prosecutor's
Office is mainly to be found in the increased number of prosecutions of
crimes affecting the Union's financial interests.

The creation of a European Public Prosecutor’s Office would improve
the use of resources and information exchange necessary to be able to
conduct successful investigations and prosecutions of the relevant offences.
This, in turn, would strengthen the law enforcement response to these offences
in general, and increase the preventive effect (deterrence) for
potential criminals. The European Public Prosecutor’s Office would be able to
pool investigative and prosecutorial resources for the needs in a given
situation, thereby making law enforcement at European and national level more
efficient.

The European Public Prosecutor’s Office will direct investigations
and prosecutions in the Member States, ensure effective coordination of
investigations and prosecutions, and solve problems related to different
applicable legal systems. The current system, where the Member States are
solely responsible for such investigations and prosecutions, supported by
Eurojust and Europol, is not efficient enough to deal with the high levels of
relevant crime and associated damages.

Ensuring that the limited financial resources of the Union are used
in the best interests of EU citizens and are better protected against fraud is
indispensable also for the legitimacy of expenditure and for ensuring public
trust in the Union.

1.5.3.     Lessons learned from
similar experiences in the past

At national level, there is often insufficient information
exchange on suspected offences involving EU funds between the authorities
responsible for monitoring and control, those dealing with administrative
investigations and law enforcement bodies. This partly arises as a result of
loopholes in the procedural framework referred to above hampering efficient
multidisciplinary investigations involving judicial as well as administrative,
customs and tax authorities in the Member States. Agencies managing and
controlling the disbursement of EU funds sometimes focus solely on getting
their money back through administrative and civil law procedures even if there
are strong suspicions that a criminal act has occurred. This may lead to
neglecting criminal prosecutions, and with that deterrence and general
prevention.

The effective investigation and prosecution of offences against the
EU’s financial interests is, furthermore, hampered by the fact that law
enforcement authorities and prosecutors do not always transmit information
about criminal offences to their colleagues in other Member States, or to
Eurojust or Europol.

In addition, the classical ways of international cooperation via
mutual legal assistance (MLA) requests or via joint investigation teams (JITs)
are often not functioning well enough to allow for the effective investigation
and prosecution of these offences despite the efforts of European bodies such
as Eurojust and Europol. Responses to MLA requests are often very slow and
police and judicial authorities experience practical difficulties in contacting
and cooperating with colleagues abroad due to language problems and differences
in legal systems. In some States, slow and ineffective international
cooperation has frequently resulted in the impossibility to pursue the case due
to the fact that the prescription period had expired. In addition, cases
affecting the EU’s financial interests are particularly complex.

As regards cooperation at Union level, mixed
experiences have been reported regarding the cooperation with Eurojust and
Europol, and between the Member States and OLAF. Eurojust and Europol do not
always receive the information they need to be able to support the Member
States. OLAF provides support to Member States through its ability to grant
specialised technical and operational assistance as required by Article 7 of
second Protocol to the Convention on the Protection of the European
Communities’ Financial Interests. At the same time, OLAF's investigations are
conducted subject to specific conditions, in particular when it comes to
transmitting information to the national judiciary, including applicable data
protection rules. For this reason, the cooperation with OLAF has also been
criticised on occasion, in particular with respect to the long time it
sometimes takes for OLAF to share information with national prosecutors. Some
Member States also restrict the cooperation with non-judicial bodies like OLAF
based on rules of judicial secrecy.

OLAF's annual statistics demonstrate that the cases which are
transferred to national investigation and judicial authorities are not equally
effectively and efficiently prosecuted across the EU. In its eleventh
operational report, OLAF analysed the judicial follow-up given by Member States
to its cases over 12 years and found "very substantial differences between
countries with respect to their capacity to bring EU-budget related judicial
investigations and prosecutions to a conviction within a reasonable time".
The fact that the average prosecution rate lies under 50% shows that there are
serious difficulties in achieving overall effectiveness of investigation and
prosecution in the Member States.

1.5.4.     Compatibility and possible
synergy with other appropriate instruments

Anti-fraud Directive proposal

The Union's current actions to protect its financial interests
include administrative investigations, controls and audits, as well as
legislative action, including the Commission's proposal for a Directive on the
fight against fraud to the Union's financial interest by means of criminal law,
but do not address the deficiencies identified with respect to the
investigation and prosecution of criminal offences related to the protection of
the EU's financial interests.

Eurojust

Eurojust can only coordinate and encourage investigations and prosecutions,
and assist with information exchange. If a Member State refuses to investigate
or prosecute a case, Eurojust cannot compel it to do so. The National Members
of Eurojust often lack the powers to ensure effective follow-up in the Member
States, or if they do, they usually refrain from using the powers which they
derive from national laws – most decisions on these sort of issues are arrived
at through consensus.

The proposal on the establishment of the European
Public Prosecutor’s Office is accompanied by a proposal on the reform of
Eurojust which will align it with the common approach on European agencies
agreed by the Council, the European Parliament and the Commission, and will
establish a link between Eurojust and the European Public Prosecutor’s Office.
This reform might lead to more efficient information exchange and better
cooperation between the national authorities.

There are, and will always be, cases where both the European Public Prosecutor’s Office and Eurojust need to be
involved, in particular cases where the suspects are involved in both crimes
affecting the Union’s financial interests and other forms of crime. This
implies that there will be a need for continuous close cooperation. To ensure
that this takes place, provisions have been included in both Regulations to set
out that the European Public Prosecutor’s Office may request that Eurojust, or
its national members, intervene, coordinate, or otherwise use their powers in a
given case.

In addition it is envisaged that Eurojust will provide practical
support services, on a zero cost basis, to the European
Public Prosecutor’s Office in administrative issues, such as personnel, finance
and IT. This approach delivers considerable synergies. One example of such
synergy is that the European Public Prosecutor’s Office will be able to use the
IT infrastructure of Eurojust, including using its Case Management System,
temporary work files and index for its own cases. The details of this
arrangement will be laid down in an agreement between the European Public
Prosecutor’s Office and Eurojust.

OLAF

Currently OLAF conducts administrative investigations for the
protection of EU's financial interests. OLAF has specialised staff with
significant experience in cooperating with national criminal authorities. Many
members of OLAF staff have a relevant background in their national enforcement
and judicial administrations (police, customs, and prosecutorial functions).

A part of OLAF's resources would thus be used in order to set up the
European Public Prosecutor’s Office, taking into account their experience in
the conduct of administrative investigations and the objective of avoiding
duplication of administrative and criminal investigations. Another important
aspect is that of using the current networks which OLAF has developed over the
years in the area of anti-fraud investigations.

Finally, OLAF would contribute to the setting up of the European
Public Prosecutor’s Office with specialised support to facilitate forensic
analysis and technical and operational support to investigations and for the
establishment of evidence in criminal cases affecting the Union's financial
interests.

A proposal to amend Regulation 1073/1999 concerning investigations
conducted by OLAF (OLAF reform) is under inter-institutional
negotiation. While this proposal improves the information exchange between OLAF
and EU institutions bodies, agencies and offices (IBOA), as well as with the
Member States and it provides better governance for OLAF and a set of
procedural guarantees for the persons concerned by investigations, it does not
provide OLAF with any additional means of action, in particular criminal
investigation powers.

Europol

The role of Europol is limited to providing intelligence and support
to national law enforcement activities. It cannot ensure follow-up to its
analyses in the Member States, nor direct national investigations. The powers
of Europol are also limited by the TFEU. Under Article 88 TFEU Europol cannot
independently investigate crime, and any operational action must be carried out
by Europol in liaison and with the agreement of the national law enforcement
authorities. Whilst the support functions of Europol are certainly important,
these cannot substitute for the powers to independently investigate criminal
behaviour.

A proposal for a Regulation on Europol was adopted by the
Commission in March 2013, focusing on aligning Europol’s competences with the
TFEU and to make it a hub for information exchange, while granting new
responsibilities regarding training. It does not comprise police investigation
and law-enforcement powers in the area of the protection of EU’s financial
interests.

1.6.        Duration and financial
impact

 ̈ Proposal/initiative of limited
duration

– 
 ̈  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

– 
 ̈  Financial impact from YYYY to YYYY

X Proposal/initiative of unlimited
duration

– 
Implementation with a start-up period from 2017
to 2023,

– 
followed by full-scale operation.

1.7.        Management mode(s)
envisaged

Direct management by the Commission

– 
by its departments, including by its staff in
the Union delegations;

– 
     by the executive agencies;

 ̈ Shared management with the Member States

X Indirect management by delegating implementation tasks to:

– 
 ̈ third countries or the bodies they have designated;

– 
 ̈ international organisations and their agencies (to be specified);

– 
 ̈the EIB and the European Investment Fund;

– 
X bodies referred to in Articles 208 and 209 of
the Financial Regulation;

– 
 ̈ public law bodies;

– 
 ̈ bodies governed by private law with a public service mission to the
extent that they provide adequate financial guarantees;

– 
 ̈ bodies governed by the private law of a Member State that are
entrusted with the implementation of a public-private partnership and that
provide adequate financial guarantees;

– 
 ̈ persons entrusted with the implementation of specific actions in
the CFSP pursuant to Title V of the TEU, and identified in the relevant basic
act.

– If more than one management mode is
indicated, please provide details in the "Comments" section.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

The European Public Prosecutor’s Office shall issue an annual report
on its activities. The European Public Prosecutor shall
appear before the European Parliament and the Council once a year to give
account of the results and priorities of the investigations and prosecutions of
the European Public Prosecutor’s Office, taking into account the obligation of discretion and
confidentiality.

The European Public Prosecutor or European Delegated Prosecutors may
also be invited to provide information to national Parliaments.

In addition, within five years following the entry into force of the
Regulation establishing the European Public
Prosecutor’s Office, the European Commission shall
assess its implementation, including the feasibility and advisability of
extending the competence of the European Public
Prosecutor’s Office to other offences in accordance
with Article 86 (4) TFEU.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

Investigation and prosecution measures, including enforcements
powers are sensitive activities which partially affecting human rights and
therefore, can trigger claims for damages.

Processing of personal data in pending investigations can also be a
reason for claims for damages in case of unlawful processing.

2.2.2.     Control method(s) envisaged

Under the standard discharge procedure the European Public
Prosecutor’s Office is under the obligation, inter alia:

– 
to send the provisional accounts to the
Commission's Accounting Officer and the Court of Auditors;

– 
to send the final accounts to the European
Parliament, the Council, the Commission and the Court of Auditors;

– 
to submit to the European Parliament, at the
latter's request, any information required for the smooth application of the
discharge procedure for the financial year in question.

Moreover, as regards combating fraud and audits by the European
Court of Auditors, once operational:

– 
The European Public Prosecutor’s Office shall
accede to the Interinstitutional Agreement of 25 May 1999 concerning internal
investigations by the European Anti-fraud Office (OLAF) and adopt the
appropriate provisions applicable to all the employees of the Office using the
template set out in the Annex to that Agreement.

– 
The European Court of Auditors shall have the
power of audit, on the basis of documents and on the spot, over all grant
beneficiaries, contractors and subcontractors who have received Union funds
from the Office.

– 
OLAF may carry out investigations, including
on-the-spot checks and inspections, in accordance with the provisions and
procedures laid down the applicable EU rules with a view to establishing
whether there has been any irregularity affecting the financial interests of
the Union in connection with a grant or a contract funded by the European
Public Prosecutor’s Office.

– 
Working arrangements with third countries and
international organisations, contracts, grant agreements and grant decisions of
the European Public Prosecutor’s Office shall contain provisions expressly
empowering the European Court of Auditors and OLAF to conduct such audits and
investigations, according to their respective competences.

2.3.        Measures to prevent fraud
and irregularities

Specify existing or
envisaged prevention and protection measures.

Adoption of an anti-fraud strategy, which is proportionate to the
fraud risks having regard to cost-benefit of the measures to be implemented.

Adoption rules for the prevention and management of conflicts of
interest in respect of its staff members

3.           ESTIMATED FINANCIAL
IMPACT OF THE PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading........................................] || Diff./non-diff. ([16]) || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

|| || || || || ||

· New budget lines requested

In order of multiannual financial framework
headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

3 || 33.03.YY.YY EPPO || DIFF || NO || NO || NO || NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure (in 2013 prices)

EUR million (to three decimal places)

Heading of multiannual financial Framework: || Number 3 || Security and Citizenship

EPPO[17] || || || 2017 || 2018 || 2019 || 2020 || TOTAL

Title 1[18] || Commitments || (1) || 1.393 || 4.144 || 6.895 || 11.039 || 23.471

Payments || (2) || 1.393 || 4.144 || 6.895 || 11.039 || 23.471

Title 2[19] || Commitments || (1a) || 0.099 || 0.194 || 0.293 || 0.487 || 1.073

Payments || (2a) || 0.099 || 0.194 || 0.293 || 0.487 || 1.073

Title 3[20] || Commitments || (3a) || 1.052 || 2.455 || 3.507 || 4.558 || 11.572

|| Payments || (3b) || 1.052 || 2.455 || 3.507 || 4.558 || 11.572

TOTAL appropriations for EPPO || Commitments || =1+1a +3a || 2.544 || 6.793 || 10.695 || 16.084 || 36.116

Heading of multiannual financial framework: || 5 || ‘Administrative expenditure’

EUR million (to three decimal places)

|| || || 2017 || 2018 || 2019 || 2020 || TOTAL

DG: JUST ||

Ÿ Human Resources || 0.170 || 0.170 || 0.170 || 0.170 || 0.680

Ÿ Other administrative expenditure || 0.050 || 0.050 || 0.050 || 0.050 || 0.200

TOTAL DG JUST || Appropriations || 0.220 || 0.220 || 0.220 || 0.220 || 0.880

Ÿ Human Resources || 0.131 || 0.131 || 0.131 || 0.131 || 0.524

Ÿ Other administrative expenditure || 0.050 || 0.050 || 0.050 || 0.050 || 0.200

TOTAL OLAF || Appropriations || 0.181 || 0.181 || 0.181 || 0.181 || 0.724

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.401 || 0.401 || 0.401 || 0.401 || 1.604

EUR million (to three decimal places)

|| || || 2017 || 2018 || 2019 || 2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 2.945 || 7.194 || 11.096 || 16.485 || 37.720

Payments || 2.945 || 7.194 || 11.096 || 16.485 || 37.720

Reductions in order to achieve cost-efficiencies in Heading of multiannual financial framework: || 5 || ‘Administrative expenditure’

Reduction in Heading 5 (OLAF) || || || 2017 || 2018 || 2019 || 2020 || TOTAL

Title 1[21] || Commitments || (1) || -1.393 || -4.144 || -6.895 || -11.039 || -23.471

Payments || (2) || -1.393 || -4.144 || -6.895 || -11.039 || -23.471

Title 2[22] || Commitments || (1a) || -0.099 || -0.194 || -0.293 || -0.487 || -1.073

Payments || (2a) || -0.099 || -0.194 || -0.293 || -0.487 || -1.073

Title 3[23] || Commitments || (3a) || -0.350 || -1.051 || -1.401 || -1.750 || -4.552

|| Payments || (3b) || -0.350 || -1.051 || -1.401 || -1.750 || -4.552

TOTAL reductions in Heading 5 || Commitments || =1+1a +3a || -1.842 || -5.389 || -8.589 || -13.276 || -29.096

During the phase-in period any resource
increase in appropriations or FTE in EPPO is compensated by a corresponding
decrease in OLAF resources of the same amount in appropriations or FTE.

Difference, i.e. costs related to the
service contracts of the EDPs (title 3)

|| || || 2017 || 2018 || 2019 || 2020 || TOTAL

|| Commitments || (1) || 0.702 || 1.404 || 2.106 || 2.880 || 7.020

Payments || (2) || 0.702 || 1.404 || 2.106 || 2.880 || 7.020

These are the costs of 9, 18, 27 and 36
EDPs in FTE calculated.

These costs need to be covered by the
margin of title 3 or by reductions in other agencies.

3.2.2.     Estimated impact on
[body]'s appropriations

– 
 ̈  The proposal/initiative does not require the use of operational
appropriations

– 
X  The proposal/initiative requires the use of
operational appropriations, as described below:

– Commitment appropriations in EUR million
(to three decimal places) in 2013 prices

Indicate objectives and outputs ò || || || 2017 || 2018 || 2019 || 2020 || TOTAL ||

RÉALISATIONS (outputs) ||

Type || Average costs || Number [24] || Costs || Number || Costs || Number || Costs || Number || Costs || Total || Total Costs ||

SPECIFIC OBJECTIVE NO 1 Protection of financial interest investigations || || || || || || || || || || ||

- Réalisation || cases eerer of cases || 0.0083 || 184 || 1.526 || 491 || 4.076 || 773 || 6.417 || 1163 || 9.650 || || 21.669 ||

Subtotal for specific objective N°1 || || 1.526 || || 4.076 || || 6.417 || || 9.650 || || 21.669 ||

SPECIFIC OBJECTIVE NO 2 Protection of financial interest prosecutions || || || || || || || || || || ||

- Réalisation || cases || 0.0083 || 92 || 0.763 || 246 || 2.038 || 387 || 3.208 || 581 || 4.825 || || 10.834 ||

Subtotal for specific objective N° 2 || || 0.763 || || 2.038 || || 3.208 || || 4.825 || || 10.834 ||

SPECIFIC OBJECTIVE NO 3 Cooperation with others || || || || || || || || || || ||

- Réalisation || || 0.0083 || 31 || 0.254 || 82 || 0.679 || 129 || 1.069 || 194 || 1.608 || || 3.610 ||

Subtotal for specific objective N° 3 || || 0.254 || || 0.679 || || 1.069 || || 1.608 || || 3.610 ||

TOTAL COSTS || || 2.543 || || 6.793 || || 10.694 || || 16.083 || || 36.113[25] ||

3.2.3.     Estimated impact on EPPO's
human resources

3.2.3.1.  Summary

– 
 ̈         The proposal/initiative does not require the use of
appropriations of an administrative nature

– 
X          The proposal/initiative requires the
use of appropriations of an administrative nature, as described below:

Human resources || 2017 || 2018 || 2019 || 2020

Establishment plan posts (in headcounts) || 18 || 36 || 54 || 90

- Of which AD || 12 || 24 || 36 || 60

- Of which AST || 6 || 12 || 18 || 30

External personnel (FTE) || 6 || 11 || 17 || 28

- Of which contract agents || 5 || 9 || 14 || 23

- Of which Seconded National  Experts (SNE) || 1 || 2 || 3 || 5

Total staff || 24 || 47 || 71 || 118

EUR million (to
three decimal places)

Staff expenditure || 2017 || 2018 || 2019 || 2020 || Total

Establishment plan posts || 1.179 || 3.537 || 5.895 || 9.432 || 20.043

- Of which AD || 0.786 || 2.358 || 3.930 || 6.288 || 13.362

- Of which AST || 0.393 || 1.179 || 1.965 || 3.144 || 6.681

External personnel || 0.214 || 0.607 || 1.000 || 1.607 || 3.428

- Of which contract agents || 0.175 || 0.490 || 0.805 || 1.295 || 2.765

- Of which Seconded National Experts (SNE) || 0.039 || 0.117 || 0.195 || 0.312 || 663

Total staff expenditure || 1.393 || 4.144 || 6.895 || 11.039 || 23.471

Estimated requirements of human resources for the
parent DG

– 
 ̈         The proposal/initiative does not require the use of human
resources.

– 
X The proposal/initiative requires the use of
human resources, as described below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2017 || 2018 || 2019 || 2020 ||

Ÿ Establishment plan posts (officials and temporary staff) ||

|| 33 01 01 01 Staff JUST || 1.3 || 1.3 || 1.3 || 1.3 ||

|| 24 01 07 00 01 01 Staff OLAF || 1 || 1 || 1 || 1 ||

|| XX 01 01 02 (Delegations) || || || || ||

|| XX 01 05 01 (Indirect research) || || || || ||

|| 10 01 05 01 (Direct research) || || || || ||

|| || || || || ||

|| Ÿ External staff (in Full Time Equivalent: FTE)

|| XX 01 02 01 (CA, SNE, INT from the ‘global envelope’) || || || || ||

|| XX 01 02 02 (CA, LA, SNE, INT and JED in the delegations) || || || || ||

|| XX 01 04 yy || - at Headquarters || || || || ||

|| - in delegations || || || || ||

|| XX 01 05 02 (CA, SNE, INT - Indirect research) || || || || ||

|| 10 01 05 02 (CA, SNE, INT- Direct research) || || || || ||

|| Other budget lines (specify) || || || || ||

|| TOTAL || 2.3 || 2.3 || 2.3 || 2.3 ||

XX is the
policy area or budget title concerned.

The human resources
required will be met by staff from the DG who are already assigned to
management of the action and/or have been redeployed within the DG, together if
necessary with any additional allocation which may be granted to the managing
DG under the annual allocation procedure and in the light of budgetary
constraints.

Officials and temporary staff || Policy follow-up and advise to the EPPO, budgetary and financial advice to the EPPO and actual payments of the subsidy, discharge, draft budget procedures

External staff || Not applicable

Description of the calculation of cost for
FTE equivalent should be included in the Annex, section 3.

During the phase-in period any resource
increase in appropriations or FTE in EPPO is compensated by a corresponding
decrease in OLAF resources of the same amount in appropriations or FTE.

Human resources reductions in OLAF || 2017 || 2018 || 2019 || 2020

Establishment plan posts (in headcounts) || -18 || -36 || -54 || -90

- Of which AD || -12 || -24 || -36 || -60

- Of which AST || -6 || -12 || -18 || -30

External personnel (FTE) || -6 || -11 || -17 || -28

- Of which contract agents || -5 || -9 || -14 || - 23

- Of which Seconded National  Experts (SNE) || -1 || -2 || -3 || -5

Total staff || -24 || -47 || -71 || -118

EUR million (to
three decimal places) in 2013 prices

Reductions in Staff expenditure related to OLAF || 2017 || 2018 || 2019 || 2020 || Total

Establishment plan posts || -1.179 || -3.537 || -5.895 || -9.432 || -20.043

- Of which AD || -0.786 || -2.358 || -3.930 || -6.288 || -13.362

- Of which AST || -0.393 || -1.179 || -1.965 || -3.144 || -6.681

External personnel || -0.214 || -0.607 || -1.000 || -1.607 || -3.428

- Of which contract agents || -0.175 || -0.490 || -0.805 || -1.295 || -2.765

- Of which Seconded National Experts (SNE) || -0.039 || -0.117 || -0.195 || -0.312 || -663

Total staff expenditure 24.0107 || -1.393 || -4.144 || -6.895 || -11.039 || -23.471

3.2.4.     Compatibility with the
current multiannual financial framework

– 
X          Proposal/initiative is compatible with
the current multiannual financial framework.

– 
 ̈         Proposal/initiative will entail reprogramming of the
relevant heading in the multiannual financial framework.

– 
 ̈         Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework.

Heading 5
should be reduced to translate the decrease of the establishment plan of OLAF.

3.2.5.     Third-party contributions

– 
X The proposal/initiative does not provide for
co-financing by third parties.

– 
 ̈ The proposal/initiative provides for the co-financing estimated
below:

Appropriations in EUR million (to three decimal
places)

|| Year 2017 || Year 2018 || Year 2019 || Year 2020 || Total

Specify the co-financing body || || || || ||

TOTAL appropriations cofinanced || || || || ||

3.3.        
Estimated impact on revenue

– 
 ̈         Proposal/initiative has no financial impact on revenue.

– 
X          Proposal/initiative has the following
financial impact:

– 
 ̈            on own resources

– 
X            on miscellaneous revenue

EUR million (to three decimal places)

Budget revenue line: || Appropriations available for the current financial year || Impact of the proposal/initiative ||

2017 || 2018 || 2019 || 2020

Article XX || || pm || pm || pm || pm

For miscellaneous
‘assigned’ revenue, specify the budget expenditure line(s) affected.

[...]

Specify the method
for calculating the impact on revenue.

The revenues will be composed from so called “transaction fees”
which should be paid directly to the EU budget. As this point of time it is not
possible to reliably specify amounts.

[1]               Proposal
for a Directive of the European Parliament and of the Council on the fight
against fraud to the Union’s financial interests by means of criminal law, 11
July 2012 COM (2012) 363 final

[2]               See
Green Paper on criminal law protection of the financial
interests of the Community and the establishment of a European Public Prosecutor, 11 December 2001 COM (2001)715 final and its follow up report, 19
March 2003 COM (2003)128 final

[3]               Proposal
for a Directive of the European Parliament and of the Council on the fight
against fraud to the Union’s financial interests by means of criminal law, 11
July 2012 COM (2012) 363 final.

[4]               OJ
L 280, 26.10.2010, p.1.

[5]               OJ
L 142, 1.6.2012, p. 1.

[6]               OJ
L 8, 12.1.2001, p. 1.

[7]               Regulation
(EU, EURATOM) No 966/2012 of the European Parliament and of the Council of 25
October 2012 on the financial rules applicable to the general budget of the
Union and repealing Council Regulation (EC, Euratom) No 1605/2002, OJ L 298,
26.10.2012, p. 1.

[8]               OJ
L 348, 24.12.2008, p.130.

[9]               Council
Regulation No 31 (EEC), 11 (EAEC) of 18 December 1961 laying down the Staff
Regulations for Officials and the Conditions of Employment of Other Servants of
the European Economic Community and the European Atomic Energy Community, OJ P
045, 14.6.1962, p. 1385, as amended, in particular, by Council Regulation
259/68, of 29 February 1968 (OJ L 56, 4.3.1968, p. 1), as itself subsequently
amended.

[10]             OJ
L 17, 6.10.1958, p. 385

[11]             OJ
L 136, 31.5.1999, p.1.

[12]             OJ
L 292, 15.11.1996, p.2.

[13]             OJ
L 317, 3.12.2011, p. 1.

[14]             OJ
L 12, 16.1.2001, p. 1. Regulation (EC) 44/2001 is
replaced by Regulation (EU) No 1215/2012 as from 10.01.2015.

[15]             Commission
annual Report on the protection of the European Union's financial interests –
Fight against fraud; COM(2012) 408

[16]             Diff.
= Differentiated appropriations / Non-Diff. = Non-differentiated
appropriations.

[17]             Only
investigation and prosecution staff and corresponding costs are calculated. Administrative
support structures will be provided by EUROJUST on a zero cost basis.

[18]             A
progressive recruitment (10 % 20 % - 30 % - 40 %- 50 % - 75 %- 100 %) has been foreseen.

[19]             It
is expected that the host Member State offers a building and ensures the first
fitting of the building with all office, IT and security equipment. Purely
utility costs and ICT costs per square meter has been included here. Provided
that the host Member State does not offer this deal, this title will need to be
revised.

[20]             This
title is calculated based on the experience of OLAF in investigative work. In
addition the costs for the service contracts with up to 36 FTE delegated
European Prosecutors at 80 % of an AD 10 salary estimate are included. The
progression rate for those is 50 % - 75 % - 100 %.

[21]             A
progressive recruitment (10 % 20 % - 30 % - 40 %- 50 % - 75 %- 100 %) has been foreseen.

[22]             It
is expected that the host Member State offers a building and ensures the first
fitting of the building with all office, IT and security equipment. Purely
utility costs and ICT costs per square meter has been included here. Provided
that the host Member State does not offer this deal, this title will need to be
revised.

[23]             This
title is calculated based on the experience of OLAF in investigative work. In
addition the costs for the service contracts with up to 36 FTE delegated
European Prosecutors at 80 % of an AD 10 salary estimate are included. The
progression rate for those is 50 % - 75 % - 100 %. As the EDPs will be
suggested by the Member States it is likely that this progression rate might
not be achieved.

– 
[24]             The number of cases is based on the assumptions
analysed in the Impact assessment accompanying the draft proposal.

[25]             The
difference to the overall costs of 36.116 million euros mentioned under section
3.2.1 comes from rounding rules.