# C_2005332EN.01009701.xml

| 28.12.2005 | EN | Official Journal of the European Union | C 332/97 |
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28.12.2005

EN

Official Journal of the European Union

C 332/97

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REPORT

REPORT

on the annual accounts of the European Monitoring Centre on Racism and Xenophobia for the financial year 2004 together with the Monitoring Centre's replies

(2005/C 332/14)

CONTENTS

| 1-2 | INTRODUCTION |
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1-2

| 3-6 | THE COURT'S OPINION |
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3-6

| 7-10 | OBSERVATIONS |
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7-10

Tables 1 to 4

The Monitoring Centre's replies

The Monitoring Centre's replies

INTRODUCTION

| 1. | The European Monitoring Centre on Racism and Xenophobia (‘the Centre’) was established by Council Regulation (EC) No 1035/97 of 2 June 1997 (1). The Centre's primary tasks are to provide the Union and the Member States with reliable information on racism, xenophobia and anti-Semitism in the Union and to cooperate with the Council of Europe in these areas. Table 1 summarises the Centre's competencies and activities on the basis of information it has supplied. |
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1.

The European Monitoring Centre on Racism and Xenophobia (‘the Centre’) was established by Council Regulation (EC) No 1035/97 of 2 June 1997 (1). The Centre's primary tasks are to provide the Union and the Member States with reliable information on racism, xenophobia and anti-Semitism in the Union and to cooperate with the Council of Europe in these areas. Table 1 summarises the Centre's competencies and activities on the basis of information it has supplied.

1

Table 1

| 2. | For information purposes the annual accounts drawn up by the Centre for the financial year 2004 are summarised in Tables 2, 3 and 4. |
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2.

For information purposes the annual accounts drawn up by the Centre for the financial year 2004 are summarised in Tables 2, 3 and 4.

Tables 2, 3 and 4

THE COURT'S OPINION

| 3. | The Court's opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Centre's accounts, as required by Article 248 of the Treaty establishing the European Community. |
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3.

The Court's opinion is addressed to the European Parliament and the Council in accordance with Article 185(2) of Council Regulation (EC, Euratom) No 1605/2002 (2); it was drawn up following an examination of the Centre's accounts, as required by Article 248 of the Treaty establishing the European Community.

2

| 4. | The Centre's accounts for the financial year ended 31 December 2004 (3) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions. |
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4.

The Centre's accounts for the financial year ended 31 December 2004 (3) were drawn up by its Director, pursuant to Article 12 of Regulation (EC) No 1035/97, and sent to the Court, which is required to give its opinion on their reliability and on the legality and regularity of the underlying transactions.

3

| 5. | The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular. |
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5.

The Court conducted an audit in accordance with its policies and standards, which are based on international auditing standards that have been adapted to the Community context. The audit was planned and performed to obtain reasonable assurance that the accounts are reliable and the underlying transactions are legal and regular.

| 6. | The Court has obtained a reasonable basis for the opinion expressed below. |
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6.

The Court has obtained a reasonable basis for the opinion expressed below.

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2004 are, in all material respects, reliable.Legality and regularity of the underlying transactionsExcept for the situations described in points 9 and10, the transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.]

Reliability of the accountsThe Centre's accounts for the financial year ended 31 December 2004 are, in all material respects, reliable.Legality and regularity of the underlying transactionsExcept for the situations described in points 9 and10, the transactions underlying the Centre's annual accounts, taken as a whole, are legal and regular.]

OBSERVATIONS

| 7. | The cancellations of the appropriations carried over from the previous financial year remained at the same level (20 %) as last year. There is a need for the Centre to improve the way carry-overs are established (4). |
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7.

The cancellations of the appropriations carried over from the previous financial year remained at the same level (20 %) as last year. There is a need for the Centre to improve the way carry-overs are established (4).

4

| 8. | Internal control standards have been developed. These standards have not yet been formally adopted by the Centre's Management Board as required by its Financial Regulation (5). A risk analysis should be carried out in order to assess their relevance. The ex-ante verification checklists should be improved and filled in all cases. |
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8.

Internal control standards have been developed. These standards have not yet been formally adopted by the Centre's Management Board as required by its Financial Regulation (5). A risk analysis should be carried out in order to assess their relevance. The ex-ante verification checklists should be improved and filled in all cases.

5

| 9. | The Centre annually carries out a tendering procedure for selecting 25 national focal points under RAXEN (6). Contrary to the Centre's rules for the implementation of its financial regulation (7), the relative weighting to be applied in order to determine the most economically advantageous offers were included neither in the procurement notice nor the tender documents. One out of the 25 contracts (8) was not awarded to the offer identified as being the most economically advantageous. |
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9.

The Centre annually carries out a tendering procedure for selecting 25 national focal points under RAXEN (6). Contrary to the Centre's rules for the implementation of its financial regulation (7), the relative weighting to be applied in order to determine the most economically advantageous offers were included neither in the procurement notice nor the tender documents. One out of the 25 contracts (8) was not awarded to the offer identified as being the most economically advantageous.

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7

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| 10. | In the case of one contract for the provision of administrative services (9) the documents relating to the tendering procedure used could not be traced. In another similar case, the services were directly awarded although, there was no reason justifying such procedure (10). In a last case (11), the contract was not awarded to the lowest bidder. |
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10.

In the case of one contract for the provision of administrative services (9) the documents relating to the tendering procedure used could not be traced. In another similar case, the services were directly awarded although, there was no reason justifying such procedure (10). In a last case (11), the contract was not awarded to the lowest bidder.

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10

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This report was adopted by the Court of Auditors in Luxembourg at its meeting of 5 October 2005.

For the Court of Auditors

Hubert WEBER

President

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(1)  OJ L 151, 10.6.1997, p. 6.

1

(2)  OJ L 248, 16.9.2002, p. 1.

2

(3)  These accounts were drawn up on 27 June 2005 and received by the Court on 19 September 2005.

3

(4)  Notwithstanding the above the level of carry-over of appropriations under Title III, ‘Operating activities’ significantly decreased (from 36 % in 2003 to 19 % in 2004). This is the result of a more detailed assessment at year end to identify which obligations will give rise to payments in the following financial year.

4

(5)  See Article 38(4) of the Centre's financial regulation.

5

(6)  See Table 1.

6

(7)  Article 116(3) of the Centre's Regulation laying down detailed rules for the implementation of its Financial Regulation.

7

(8)  Amounting to 70 000 euro in total.

8

(9)  Maintenance of photocopiers amounting to approximately 25 000 euro.

9

(10)  Security of the building amounting to approximately 92 000 euro.

10

(11)  Printing of Annual Report amounting to approximately 35 000 euro.

11

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Table 1

European Monitoring Centre on Racism and Xenophobia (Vienna)

| Areas of Community competence deriving from the Treaty | Competence of the Centre as specified in the Council Regulation
  (Council Regulation (EC) No 1035/97 of 2 June 1997) | Governance | Resources made available to the Centre in 2004

  (2003 data) | Products and services supplied in 2004 |
| --- | --- | --- | --- | --- |
| Free circulation of goods and persons.
  Freedom of establishment. | Objectives







  — | To provide the Community and its Member States with objective, reliable and comparable data at European level on the phenomena of racism, xenophobia and anti-Semitism. |

Areas of Community competence deriving from the Treaty

Competence of the Centre as specified in the Council Regulation

(Council Regulation (EC) No 1035/97 of 2 June 1997)

Governance

Resources made available to the Centre in 2004

(2003 data)

Products and services supplied in 2004

Free circulation of goods and persons.

Freedom of establishment.

Objectives

—

To provide the Community and its Member States with objective, reliable and comparable data at European level on the phenomena of racism, xenophobia and anti-Semitism.

| — | Close cooperation with the Council of Europe in order to avoid duplication and obtain added value. |
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—

Close cooperation with the Council of Europe in order to avoid duplication and obtain added value.

Tasks

| — | To study the extent and development of the phenomena of racism and xenophobia. |
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—

To study the extent and development of the phenomena of racism and xenophobia.

| — | To collect and analyse information, via the European Racism and Xenophobia Information Network (RAXEN), and in particular: |
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—

To collect and analyse information, via the European Racism and Xenophobia Information Network (RAXEN), and in particular:

| — | To carry out scientific surveys. |
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—

To carry out scientific surveys.

| — | To encourage widespread dissemination of such information. |
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—

To encourage widespread dissemination of such information.

| — | To formulate opinions for the Community and its Member States. |
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—

To formulate opinions for the Community and its Member States.

| — | To develop indicators and criteria to improve the comparability of data. |
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—

To develop indicators and criteria to improve the comparability of data.

| — | To publish an annual report on the situation regarding racism and xenophobia. |
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—

To publish an annual report on the situation regarding racism and xenophobia.

1. Management Board

Composition

One independent person appointed by each Member State, one independent person appointed by the European Parliament, one independent person appointed by the Council of Europe and a representative of the Commission.

Duties

To adopt the work programme and the general annual report. To adopt the final budget and the establishment plan. To give an opinion on the final accounts.

2. Executive Board

Composition

| — | Chairman of the Management Board |
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—

Chairman of the Management Board

| — | One representative of the Council of Europe |
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—

One representative of the Council of Europe

| — | One representative of the Commission |
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—

One representative of the Commission

| — | Two other members of the Management Board. |
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—

Two other members of the Management Board.

3. Director

Appointed by the Management Board on a proposal from the Commission.

4. External audit

European Court of Auditors.

5. Internal control

The Commission's Internal Audit Service.

6. Discharge authority

Parliament on a recommendation from the Council.

Final budget: 7,9 million euro (6,6 million euro) including Community contribution: 99 % (99 %).

Staff numbers at 31 December 2004:

34 (30) posts in establishment plan,

posts occupied: 30 (26)

+ 4 (4) other staff (auxiliary contract, seconded national experts, local and employment-agency staff).

Total staff: 34 (30)

Assigned to the following duties:

operational: 21 (17)

administrative: 8 (8)

mixed: 5 (5).

ORAXEN:

number of contributions through the 25 national focal points:

389 number of meetings:

41 meetings for the external evaluators of ORAXEN,

2 meetings to draw up guidelines for the special study on Roma.

Research reports:

number of reports: 9

number of meetings: —

Annual Report: 2

EUMC News: 2

Cooperation with the Member States and the other institutions (number of events organised jointly):

| — | Member States: 7 |
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—

Member States: 7

| — | Commission: 5 |
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—

Commission: 5

| — | European Parliament: 3 |
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—

European Parliament: 3

| — | COR: 3 |
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—

COR: 3

| — | Council of Europe: 2 |
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—

Council of Europe: 2

| — | OSCE: 7 |
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—

OSCE: 7

| — | UN: 4 |
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—

UN: 4

| — | Inter-agency: 3 |
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—

Inter-agency: 3

| — | NRT:4 |
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—

NRT:4

| — | ERT:1 |
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—

ERT:1

Source: Information sent by the Centre.

Table 2

European Monitoring Centre on Racism and Xenophobia — Implementation of the budget for the financial year 2004

| (1000 euro) |
| --- |
| Revenue | Expenditure |
| Source of revenue | Revenue entered in the final budget for the financial year | Revenue received | Allocation of expenditure | Final budget appropriations | Appropriations carried over from the previous financial year | Available appropriations
  (2004 budget and financial year 2003) |
| entered | committed | paid | carried over | cancelled | commitments outstanding | paid | cancelled | appropriations | committed | paid | carried over | cancelled |
| Community subsidies | 7 800 | 5 675 | Title I
  Staff | 3 316 | 2 730 | 2 645 | 85 | 586 | 64 | 47 | 17 | 3 380 | 2 794 | 2 692 | 85 | 604 |
| Other revenue | 100 | 558 | Title II
  Administration | 746 | 484 | 447 | 37 | 262 | 51 | 34 | 17 | 797 | 535 | 481 | 37 | 279 |
| Title III
  Operating activities | 3 838 | 3 097 | 2 352 | 745 | 741 | 1 162 | 955 | 207 | 5 000 | 4 259 | 3 307 | 745 | 947 |
| Total | 7 900 | 6 233 | Total | 7 900 | 6 311 | 5 444 | 867 | 1 589 | 1 277 | 1 036 | 241 | 9 177 | 7 588 | 6 480 | 867 | 1 830 |
| NB: Totals may include differences due to rounding.

  Source: Data supplied by the Centre — This table summarises the data supplied by the Centre in its annual accounts. |

(1000 euro)

Revenue

Expenditure

Source of revenue

Revenue entered in the final budget for the financial year

Revenue received

Allocation of expenditure

Final budget appropriations

Appropriations carried over from the previous financial year

Available appropriations

(2004 budget and financial year 2003)

entered

committed

paid

carried over

cancelled

commitments outstanding

paid

cancelled

appropriations

committed

paid

carried over

cancelled

Community subsidies

7 800

5 675

Title I

Staff

3 316

2 730

2 645

85

586

64

47

17

3 380

2 794

2 692

85

604

Other revenue

100

558

Title II

Administration

746

484

447

37

262

51

34

17

797

535

481

37

279

Title III

Operating activities

3 838

3 097

2 352

745

741

1 162

955

207

5 000

4 259

3 307

745

947

Total

7 900

6 233

Total

7 900

6 311

5 444

867

1 589

1 277

1 036

241

9 177

7 588

6 480

867

1 830

NB: Totals may include differences due to rounding.

Source: Data supplied by the Centre — This table summarises the data supplied by the Centre in its annual accounts.

Table 3

European Monitoring Centre on Racism and Xenophobia — Revenue and expenditure account for the financial years 2004 and 2003

| (1000 euro) |
| --- |
| | 2004 | 2003 |
| Revenue |
| Community subsidies | 5 675 | 7 318 |
| Other revenue | 455 | 374 |
| Financial revenue | 21 | 21 |
| Phare subsidy | 82 | 676 |
| Total revenue (a) | 6 233 | 8 389 |
| Expenditure |
| Staff — Title I of the budget |
| Payments | 2 645 | 2 618 |
| Appropriations carried over | 85 | 64 |
| Administration — Title II of the budget |
| Payments | 447 | 412 |
| Appropriations carried over | 37 | 51 |
| Operating activities — Title III of the budget |
| Payments | 2 352 | 1 678 |
| Appropriations carried over | 745 | 1 162 |
| Assigned revenue (Phare and other) |
| Payments | 7 | 376 |
| Appropriations carried over | 0 | 694 |
| Total expenditure (b) | 6 318 | 7 055 |
| Outturn for the financial year (a – b) | –85 | 1 334 |
| Balance carried over from the previous financial year | 98 | –1 579 |
| Appropriations carried over, cancelled | 241 | 301 |
| Appropriations for re-use from the previous financial year, not used | 0 | 37 |
| Amounts due written off | –23 | 0 |
| Exchange-rate differences | 0 | 5 |
| Balance for the financial year | 231 | 98 |
| NB: Totals may include differences due to rounding.

  Source: Data supplied by the Centre — This table summarises the data supplied by the Centre in its annual accounts. |

(1000 euro)

2004

2003

Revenue

Community subsidies

5 675

7 318

Other revenue

455

374

Financial revenue

21

21

Phare subsidy

82

676

Total revenue (a)

6 233

8 389

Expenditure

Staff — Title I of the budget

Payments

2 645

2 618

Appropriations carried over

85

64

Administration — Title II of the budget

Payments

447

412

Appropriations carried over

37

51

Operating activities — Title III of the budget

Payments

2 352

1 678

Appropriations carried over

745

1 162

Assigned revenue (Phare and other)

Payments

7

376

Appropriations carried over

0

694

Total expenditure (b)

6 318

7 055

Outturn for the financial year (a – b)

–85

1 334

Balance carried over from the previous financial year

98

–1 579

Appropriations carried over, cancelled

241

301

Appropriations for re-use from the previous financial year, not used

0

37

Amounts due written off

–23

0

Exchange-rate differences

0

5

Balance for the financial year

231

98

NB: Totals may include differences due to rounding.

Source: Data supplied by the Centre — This table summarises the data supplied by the Centre in its annual accounts.

Table 4

European Monitoring Centre on Racism and Xenophobia — Balance sheet at 31 December 2004 and 31 December 2003

| (1000 euro) |
| --- |
| Assets | 2004 | 2003 | Liabilities | 2004 | 2003 |
| Fixed assets | | | Own capital | | |
| Computer software | 82 | 72 | Own capital | 123 | 108 |
| Computer equipment | 206 | 148 | Balance for the financial year | 231 | 98 |
| Furniture and other equipment | 252 | 250 | Subtotal | 354 | 206 |
| Depreciation | – 417 | – 362 | Current liabilities | | |
| Subtotal | 123 | 108 | Automatic carry-overs of appropriations | 866 | 1 277 |
| Current assets | | | Automatic carry-overs of assigned revenue and Phare | 41 | 694 |
| Community subsidies | 0 | 23 | Taxes and other related expenditure | 113 | 454 |
| Recoverable VAT | 159 | 456 | EC Commission | 214 | 0 |
| Phare subsidy | 0 | 169 | Sundry accounts payable | 111 | 275 |
| Sundry accounts receivable | 138 | 77 | Subtotal | 1 345 | 2 700 |
| Subtotal | 297 | 725 | | | |
| Cash accounts | | | | | |
| Bank accounts | 1 279 | 2 073 | | | |
| Subtotal | 1 279 | 2 073 | | | |
| Total | 1 699 | 2 906 | Total | 1 699 | 2 906 |
| NB: Totals may include differences due to rounding.

  Source: Data supplied by the Centre — This table summarises the date supplied by the Centre in its annual accounts. |

(1000 euro)

Assets

2004

2003

Liabilities

2004

2003

Fixed assets

Own capital

Computer software

82

72

Own capital

123

108

Computer equipment

206

148

Balance for the financial year

231

98

Furniture and other equipment

252

250

Subtotal

354

206

Depreciation

– 417

– 362

Current liabilities

Subtotal

123

108

Automatic carry-overs of appropriations

866

1 277

Current assets

Automatic carry-overs of assigned revenue and Phare

41

694

Community subsidies

0

23

Taxes and other related expenditure

113

454

Recoverable VAT

159

456

EC Commission

214

0

Phare subsidy

0

169

Sundry accounts payable

111

275

Sundry accounts receivable

138

77

Subtotal

1 345

2 700

Subtotal

297

725

Cash accounts

Bank accounts

1 279

2 073

Subtotal

1 279

2 073

Total

1 699

2 906

Total

1 699

2 906

NB: Totals may include differences due to rounding.

Source: Data supplied by the Centre — This table summarises the date supplied by the Centre in its annual accounts.

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THE MONITORING CENTRE'S REPLIES

| 7. | The EUMC has taken measures to reduce the level of carry-overs at the year end. The EUMC continues to improve controls so as to ensure that the amounts carried over reflect more accurately the value of outstanding obligations. |
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7.

The EUMC has taken measures to reduce the level of carry-overs at the year end. The EUMC continues to improve controls so as to ensure that the amounts carried over reflect more accurately the value of outstanding obligations.

| 8. | The Internal Audit Capability has presented internal control standards to the Executive Board in February 2005, in view of their formal adoption in October 2005 after examination. A risk analysis is being carried out. The Internal Audit Capability has reviewed the existing checklists. More relevant checklists integrated into SI2 will be put in place before the end of 2005. |
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8.

The Internal Audit Capability has presented internal control standards to the Executive Board in February 2005, in view of their formal adoption in October 2005 after examination. A risk analysis is being carried out. The Internal Audit Capability has reviewed the existing checklists. More relevant checklists integrated into SI2 will be put in place before the end of 2005.

| 9. | EUMC is reviewing its procedures and new ones will be issued before the end of 2005 to avoid the repetition of the situations described by the Court. |
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9.

EUMC is reviewing its procedures and new ones will be issued before the end of 2005 to avoid the repetition of the situations described by the Court.

| 10. | The directly awarded contract concerned security services which were considered to be sensitive and therefore not fit for a general invitation to tender. In 2005, the EUMC has launched a call for tender in order to test this specific market. |
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10.

The directly awarded contract concerned security services which were considered to be sensitive and therefore not fit for a general invitation to tender. In 2005, the EUMC has launched a call for tender in order to test this specific market.

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