[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 19.9.2008

COM(2008) 571 final

Proposal for a

COUNCIL DECISION

on a Community position in the EC-Croatia Stabilisation and Association Council on the participation of Croatia as an observer in the European Union Agency for Fundamental Rights' work and the respective modalities, within the framework set in Articles 4 and 5 of Council Regulation (EC) No 168/2007, including provisions relating to participation in initiatives undertaken by the Agency, to the financial contribution and to staff

EXPLANATORY MEMORANDUM

1. The context

The European Union Agency for Fundamental Rights (FRA, hereinafter “the Agency”) was set up by Council Regulation (EC) No 168/2007[1] (hereinafter, “the Regulation”). The Agency succeeded the European Monitoring Centre on Racism and Xenophobia (EUMC) on 1 March 2007.

According to Article 2 of the Regulation, the Agency's objective is to provide the relevant institutions, bodies and offices and agencies of the Community and its Member States when implementing Community law with assistance and expertise relating to fundamental rights in order to support them when they take measures or formulate courses of action within their respective spheres of competence to fully respect fundamental rights.

Pursuant to Article 28(1) of the Council Regulation 168/2007/EC, the Agency shall be open to the participation of candidate countries as observers. The participation and the respective modalities should be determined by a decision of the relevant Association Council, whereby the particular nature, extent and manner of participation will be defined. Upon adoption of this decision, the Agency will be able to deal with fundamental rights issues in the candidate country in question within the scope of Article 3(1) of the Regulation, to the extent necessary for the gradual alignment of the country to Community law.

2. The proposed Decision

Croatia expressed its interest in participating in the Agency by letter of 27 February 2008.

The Commission proposes to the Council the adoption of a decision on a Community position in the EC-Croatia Stabilisation and Association Council on the issue of the participation of Croatia in the Agency. The proposed Decision includes a draft decision of the Stabilisation and Association Council, which complies with the requirements of Article 28.

In conformity with one of the basic principles underpinning the Regulation (i.e., the Agency works on the basis of a thematic, as opposed to country-specific, approach) the draft Decision enables the Agency to carry out in Croatia the tasks laid down in Articles 4 and 5 of the Regulation.

The draft Decision also lays down that Croatia shall appoint an observer and alternate observer to the Management Board of the Agency. These persons should comply with the criteria laid down in Article 12(1) of the Regulation: They shall participate in the works of the Management Board on equal footing with the members and alternate members appointed by Member States, but without the right to vote.

The Decision for participation in the Agency's work also includes provisions relating to Croatia’s financial contribution and to staff.

The financial contribution of Croatia is established in proportion to, and in addition to, the amount available that year in the general budget of the Agency. The proportionality factor governing the contribution has been obtained by using a formula of the population of the country concerned and the gross domestic product (GDP) in Purchasing Power Standards (PPS). These are calculated on the basis of the 2007 statistical data published by the Statistical Office of the European Communities (Eurostat). The applied formula, which calculates the financial contribution of the candidate country, might be reviewed in 2009 on the basis of the latest statistical data published by Eurostat.

The proposed Decision makes provisions for a financial contribution based on a participation starting in 2009 (first year of participation in anex I, point 5).

The draft decision is also in line with the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of the European Communities. The ratio between administrative and operational costs of the Agency’s budget for the EU Member States is also applicable, on average, on the candidate countries' estimates.

The draft decision is accompanied by a financial statement.

Proposal for a

COUNCIL DECISION

on a Community position in the EC-Croatia Stabilisation and Association Council on the participation of Croatia as an observer in the European Union Agency for Fundamental Rights' work and the respective modalities , within the framework set in Articles 4 and 5 of Council Regulation (EC) No 168/2007, including provisions relating to participation in initiatives undertaken by the Agency, to the financial contribution and to staff

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 in conjunction with the second subparagraph of Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

1. The Luxembourg European Council of December 1997 made participation in Community agencies a way of stepping up the pre-accession strategy. The European Council's conclusions provide that "the Community agencies in which applicant countries will be able to participate will be determined on a case-by-case basis".

2. Council Regulation (EC) No 168/2007 establishing a European Union Agency for Fundamental Rights provides in its Article 28 that the Agency shall be open to the participation of Candidate Countries within the framework set in Articles 4 and 5.

3. Croatia shares the aims and objectives laid down for the Agency and subscribes to the scope and description of the tasks of the Agency laid down in the Regulation (EC) No 168/2007.

4. Croatia's ultimate objective is to become a member of the European Union, and its participation in the European Union Agency for Fundamental Rights will help Croatia to achieve this objective

HAS DECIDED AS FOLLOWS:

Article 1

The position on the participation of Croatia as an observer in the European Union Agency for Fundamental Rights' work and the respective modalities to be adopted by the Community in the Stabilisation and Association Council shall be based on the draft Decision of the EC-Croatia Stabilisation and Association Council annexed to this Decision.

Done at Brussels,

For the Council

The President

ANNEX

Draft

DECISION No …./2008

on the participation of Croatia as an observer in the European Union Agency for Fundamental Rights' work and the respective modalities , within the framework set in Articles 4 and 5 of Council Regulation (EC) No 168/2007, including provisions relating to participation in initiatives undertaken by the Agency, to the financial contribution and to staff

THE ASSOCIATION COUNCIL,

Having regard to the Stabilisation and Association Agreement (2005/40/EC, Euratom) between the European Communities and their Member States, on the one part, and the Republic of Croatia, on the other part.

Having regard to Council Regulation (EC) No 168/2007 establishing a European Union Agency for Fundamental Rights and in particular Article 28(2) thereof,

Whereas

(1) The Luxembourg European Council of December 1997 made participation in Community agencies a way of stepping up the pre-accession strategy. The European Council's conclusions provide that "the Community agencies in which applicant countries will be able to participate will be determined on a case-by-case basis".

(2) Croatia shares the aims and objectives laid down for the Agency and subscribes to the scope and description of the tasks of the Agency as laid down in the Regulation (EC) No 168/2007.

(3) It is appropriate to lay down the modalities of such participation including provisions relating to participation in initiatives undertaken by the Agency, to the financial contribution and to staff.

(4) It is also appropriate that the Agency should deal with fundamental rights issues within the scope of Article 3(1) of the Regulation (EC) No 168/2007 in Croatia to the extent necessary for its gradual alignment to Community law.

HAS DECIDED:

Article 1

Croatia, as a candidate country, shall participate as an observer in the European Union Agency for Fundamental Rights, (hereinafter referred to as the “Agency”), as set up by Council Regulation (EC) No 168/2007 (hereinafter referred to as "the Regulation").

Article 2

1. The Agency may deal with fundamental rights issues within the scope of Article 3(1) of the Regulation in the Croatia to the extent necessary for its gradual alignment to Community law.

2. To this end the Agency will be able to carry out in the Croatia the tasks laid down in Articles 4 and 5 of the Regulation.

Article 3

Croatia shall contribute financially to the activities of the Agency referred to Article 4 of the Regulation in accordance with the provisions laid down in Annex I to this Decision which shall form an integral part thereof.

Article 4

1. Croatia shall appoint persons complying with the criteria laid down of Article 12(1) of the Regulation as observer and alternate observer, respectively. They may participate in the works of the Management Board on equal footing with the members and alternate members appointed by Member States, but without right to a vote.

2. Croatia shall nominate a government official as a National Liaison Officer, in the terms laid down in Article 8 (1).

3. Within four months of the entry into force of this Decision, Croatia shall inform the European Commission of the names, qualifications and contact details of the persons referred to in the two previous paragraphs.

Article 5

The data supplied to or emanating from the Agency may be published and shall be made accessible to the public, provided that confidential information is afforded the same degree of protection in Croatia as it is afforded within the Community.

Article 6

The Agency shall enjoy in Croatia the same capacity as accorded to legal entities under Croatia's law.

Article 7

To enable the Agency and its staff to perform their tasks, Croatia shall grant the privileges and immunities identical to those contained in Articles 1 to 4, Articles 6 and 7, Articles 11 to 14, Article 16, Article 18 and Article 19 of the Protocol of Privileges and Immunities of the European Communities[2].

Article 8

By way of derogation from Article 12(2)(a) of the Conditions of Employment of Other Servants of the European Communities provided for in Article 3 of Council Regulation (EEC, Euratom, ECSC) No 259/68 on Staff Regulations of Officials and the Conditions of Employment of Other Servants of the European Communities, nationals of Croatia enjoying their full rights as citizens may be engaged under contract by the Director of the Agency.

Article 9

The Parties shall each take any general or specific measures required to fulfil their obligations under this Decision and shall notify them to the Stabilisation and Association Council.

Article 10

This Decision shall enter into force on the first day of the second month following the date of the notification referred to in Article 9.

Article 11

This Decision is adopted for an unlimited period of time.

ANNEX

I

FINANCIAL CONTRIBUTION OF CROATIA TO THE EUROPEAN UNION AGENCY FOR FUNDAMENTAL RIGHTS

1. The financial contribution to be paid by Croatia to the budget of the European Union to participate in the European Union Agency for Fundamental Rights shall be established in proportion to, and in addition to, the amount available each year in the general budget of the Agency.

2. The proportionality factor governing the contribution has been obtained by establishing the ratio of 0.6 to the population of Croatia and the ratio of 0.4 for the gross domestic product (GDP) in Purchasing Power Standards (PPS). These ratios has been calculated on the basis of the 2007 statistical data published by the Statistical Office of the European Communities (Eurostat). The natural economies of scale that can be absorbed by the staff and budget allocated under the Financial Perspectives has been also considered.

3. The weighting factor of the economies of scale shall be applied reducing the proposal by 20%. This reduction shall refer to both the financial and human resources. The financial resources have been increased appropriately in cases where the result of the above formula was below the unitary costs estimated for the participation of the candidate country to the European Agency for Fundamental Rights.

4. The estimates provided are provisional and could be revised in the light of the Agency’s Multiannual Framework, as soon as it is adopted by the Budgetary Authority. The Agency’s Management Board might adapt the provisions of the current proposal, if it considers this necessary.

5. The financial contribution to be paid by Croatia to the budget of the European Union shall be as follows:

Year 1 : | EUR 180,020 |

Year 2 : | EUR 180,020 |

Year 3 : | EUR 180,020 |

Year 4 : | EUR 205,020 |

Year 5 : | EUR 205,020 |

6. The possible financial support from Community assistance programmes will be agreed separately according to the relevant Community programme.

7. The contribution of Croatia will be managed in accordance with the Financial Regulation applicable to the general budget of the European Union.

8. Travel costs and subsistence costs incurred by representatives and experts of Croatia for the purposes of taking part in the European Union Agency for Fundamental Rights or meetings related to the implementation of the Agency’s work programme shall be reimbursed by the European Union Agency for Fundamental Rights on the same basis as and in accordance with the procedures currently in force for the Member States of the European Union.

9. After the entry into force of this Decision and at the beginning of each following year, the Commission will send to Croatia a call for funds corresponding to its contribution to the European Union Agency for Fundamental Rights under this Decision. For the first calendar year of its participation Croatia will pay a contribution calculated from the date of participation to the end of the year on a pro rata basis. For the following years the contribution will be in accordance with this decision.

10. This contribution shall be expressed in euro and paid into a euro bank account of the Commission of the European Communities.

11. Croatia will pay its contribution according to the call for funds for its own part at latest within 30 days after the call for funds is sent by the Commission.

12. Any delay in the payment of the contribution shall give rise to the payment of interest by Croatia on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the European Central Bank, on the due date, for its operations in euro, increased by 1,5 pecentage points.

LEGISLATIVE FINANCIAL STATEMENT

1. NAME OF THE PROPOSAL:

COUNCIL DECISION on a Community position in the EC-Croatia Stabilisation and Association Council on the participation of Croatia as an observer in the European Union Agency for Fundamental Rights' work and the respective modalities, within the framework set in Articles 4 and 5 of Council Regulation (EC) No 168/2007, including provisions relating to participation in initiatives undertaken by the Agency, to the financial contribution and to staff

2. ABM / ABB FRAMEWORK

Title 18: Freedom, Security and Justice, Chapter 1804: Fundamental Rights and Citizenship

3. BUDGET LINES

3.1. Budget lines (operational lines and related technical and administrative assistance lines (ex- B..A lines)) including headings:

Article 603.1 Association agreement between the Communities and the third countries, items 18040503, 18040504

The contribution of Croatia to the Community Budget for its participation in the FRA's work has been calculated as described in the Annex to this financial statement.

3.2. Duration of the action and of the financial impact:

Until the date of Croatia's accession to the EU

3.3. Budgetary characteristics : N/A

Budget line | Type of expenditure | New | EFTA contribution | Contributions from applicant countries | Heading in financial perspective |

Comp/ Non-comp | Diff[3]/ Non-diff[4] | YES/ NO | YES/NO | YES/NO |

Comp/ Non-comp | Diff/ Non-diff | YES/ NO | YES/NO | YES/NO |

4. SUMMARY OF RESOURCES

4.1. Financial Resources

4.1.1. Summary of commitment appropriations (CA) and payment appropriations (PA)

EUR million (to 3 decimal places)

Expenditure type | Section no. | 2009 | 2010 | 2011 | 1012 | 2013 | n + 5 and later | Total |

Operational expenditure[5] |

Commitment Appropriations (CA) | 8.1 | a |

Payment Appropriations (PA) | b |

Administrative expenditure within reference amount[6] |

Technical & administrative assistance (NDA) | 8.2.4 | c |

TOTAL REFERENCE AMOUNT |

Commitment Appropriations | a+c |

Payment Appropriations | b+c |

Administrative expenditure not included in reference amount[7] |

Human resources and associated expenditure (NDA) | 8.2.5 | d | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,2925 |

Administrative costs, other than human resources and associated costs, not included in reference amount (NDA) | 8.2.6 | e |

Total indicative financial cost of intervention

TOTAL CA including cost of Human Resources | a+c+d+e |

TOTAL PA including cost of Human Resources | b+c+d+e | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,2925 |

Co-financing details N/A

If the proposal involves co-financing by Member States, or other bodies (please specify which), an estimate of the level of this co-financing should be indicated in the table below (additional lines may be added if different bodies are foreseen for the provision of the co-financing):

EUR million (to 3 decimal places)

Co-financing body | Year n | n + 1 | n + 2 | n + 3 | n + 4 | n + 5 and later | Total |

…………………… | f |

TOTAL CA including co-financing | a+c+d+e+f |

4.1.2. Compatibility with Financial Programming

X Proposal is compatible with existing financial programming.

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

( Proposal may require application of the provisions of the Interinstitutional Agreement[8] (i.e. flexibility instrument or revision of the financial perspective).

4.1.3. Financial impact on Revenue

( Proposal has no financial implications on revenue

X Proposal has financial impact – the effect on revenue is as follows:

EUR million (to one decimal place)

Prior to action [Year n-1] | Situation following action |

Total number of human resources | 0,5 | 0,5 | 0,5 | 0,5 | 0,5 |

5. CHARACTERISTICS AND OBJECTIVES

5.1. Need to be met in the short or long term

This decision will allow Croatia to participate in the work of the European Union Agency for Fundamental Rights and thus, will help the country to achieve its ultimate objective to become a member of the European Union.

5.2. Value-added of Community involvement and coherence of the proposal with other financial instruments and possible synergy

By dealing with fundamental rights issues in Croatia the Agency will be of help to the necessary gradual alignment to Community law of the country concerned.

5.3. Objectives, expected results and related indicators of the proposal in the context of the ABM framework

This decision should allow Croatia to participate as an observer in the FRA's work and the Agency to cover fundamental rights issues in Croatia. This will contribute to a successful preparation of Croatia for the full-fledged membership in the European Union.

5.4. Method of Implementation (indicative)

( Centralised Management

( directly by the Commission

X indirectly by delegation to:

( executive Agencies

X bodies set up by the Communities as referred to in art. 185 of the Financial Regulation

( national public-sector bodies/bodies with public-service mission

( Shared or decentralised management

( with Member states

( with Third countries

( Joint management with international organisations (please specify)

Relevant comments:

6. MONITORING AND EVALUATION

6.1. Monitoring system

The work of the Fundamental Rights Agency shall be regularly evaluated in accordance with the framework laid down in Regulation 168/2007 and taking into account the Agency's Multi-Annual Framework as well as the Annual Work Programmes.

6.2. Evaluation

6.2.1. Ex-ante evaluation

The proposal for the FRA Regulation contained an impact assessment dealing with the issue of the geographical scope of the Agency's activities.

6.2.2. Measures taken following an intermediate/ex-post evaluation (lessons learned from similar experiences in the past)

The EUMC (the pre-cursor of the Agency) carried out PHARE projects in different candidate countries (i.e. RO, BG, TK and HR) which proved very positive for both candidate countries and the EUMC.

6.2.3. Terms and frequency of future evaluation

The participation of candidate countries in the FRA's activities will be evaluated in future evaluations of the Agency.

7. ANTI-FRAUD MEASURES

In order to combat fraud, corruption and other unlawful activities, the provisions of Regulation (EC) No 1073/1999 shall apply without restrictions to the Agency.

The Agency shall accede to the Inter-institutional Agreement of 25 May 1999 between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF) [11] and shall issue, without delay, the appropriate provisions applicable to its entire staff.

The decisions concerning funding and the implementing agreements and instruments resulting from them shall explicitly stipulate that the Court of Auditors and OLAF may carry out, if necessary, on-the-spot checks on the recipients of the Agency's funding and the staff responsible for allocating it.

8. DETAILS OF RESOURCES

N/A

8.1. Objectives of the proposal in terms of their financial cost

Commitment appropriations in EUR million (to 3 decimal places)

2009 | 2010 | 2011 | 2012 | 2013 |

Officials or temporary staff[10] (XX 01 01) | A*/AD | 0,5 | 0,5 | 0,5 | 0,5 | 0,5 |

B*, C*/AST |

Staff financed[11] by art. XX 01 02 | 0 | 0 | 0 | 0 | 0 | 0 |

Other staff[12] financed by art. XX 01 04/05 | 0 | 0 | 0 | 0 | 0 | 0 |

TOTAL | 0,5 | 0,5 | 0,5 | 0,5 | 0,5 |

8.2.2. Description of tasks deriving from the action

Management of the Croatia's financial contribution under Financial Regulation.

8.2.3. Sources of human resources (statutory)

X Posts currently allocated to the management of the programme to be replaced or extended

( Posts pre-allocated within the APS/PDB exercise for year n

( Posts to be requested in the next APS/PDB procedure

( Posts to be redeployed using existing resources within the managing service (internal redeployment)

( Posts required for year n although not foreseen in the APS/PDB exercise of the year in question

8.2.4. Other Administrative expenditure included in reference amount (XX 01 04/05 – Expenditure on administrative management) N/A

EUR million (to 3 decimal places)

Budget line (number and heading) | 2009 | 2010 | 2011 | 2012 | 2013 | TOTAL |

Other technical and administrative assistance |

- intra muros |

- extra muros |

Total Technical and administrative assistance |

8.2.5. Financial cost of human resources and associated costs not included in the reference amount

EUR million (to 3 decimal places)

Type of human resources | 2009 | 2010 | 2011 | 2012 | 2013 |

Officials and temporary staff (XX 01 01) | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,0585 |

Staff financed by Art XX 01 02 (auxiliary, END, contract staff, etc.) (specify budget line) | 0 | 0 | 0 | 0 | 0 | 0 |

Total cost of Human Resources and associated costs (NOT in reference amount) | 0,0585 | 0,0585 | 0,0585 | 0,0585 | 0,0585 |

Calculation– Officials and Temporary agents |

Calculation– Staff financed under art. XX 01 02 |

8.2.6. Other administrative expenditure not included in reference amount N/A EUR million (to 3 decimal places) |

2008 | 2009 | 2010 | 2011 | 2012 | 2013 | TOTAL |

XX 01 02 11 01 – Missions |

XX 01 02 11 02 – Meetings & Conferences |

XX 01 02 11 03 – Committees[14] |

XX 01 02 11 04 – Studies & consultations |

XX 01 02 11 05 - Information systems |

2 Total Other Management Expenditure (XX 01 02 11) |

3 Other expenditure of an administrative nature (specify including reference to budget line) |

Total Administrative expenditure, other than human resources and associated costs (NOT included in reference amount) |

Calculation - Other administrative expenditure not included in reference amount

ANNEX

(method of calculation)

The proportionality factor governing the contribution has been obtained by establishing the weighting factor of 0.6 to the population of Croatia and the weighting factor of 0.4 for the gross domestic product (GDP) in Purchasing Power Standards (PPS) as shown in tabular format below. These weighting factors have been calculated on the basis of the 2007 statistical data published by the Statistical Office of the European Communities (Eurostat). The natural economies of scale that can be absorbed by the staff and budget allocated under the Financial Perspectives has been also considered.

The weighting factor of the economies of scale has been applied reducing the proposal by 20%. This reduction shall refer to both the financial and Human Resources. The financial resources have been increased appropriately in cases where the result of the above formula was below the unitary costs estimated for the participation of the candidate country to the European Agency for Fundamental Rights.

The average increase of the budget over the years 2009-2013 is based on the financial perspectives and the increase of the Agency’s budget as follows: 2010 +18%, 2011 remains constant, 2012 +10% and 2013 remains constant.

A |B |C |D | |E |F |G | |H |I |J |K | | |Population |Pop. weighting factor |Results on population (based on 2013 budget) | |GDP |GDP weighting factor |Results on GDP (based on 2013 budget) | |Economies of scale |operations leading from "results" to "contribution" |Contribution (based on 2013 budget) |Contribution through the years | |HR |4,441,238 |0.60 |118,402 | |51.60 |0.40 |40,730 | |N/A |Minimum sustainable budget |205,020 |(a) 180,020

(b) 180,020

(c) 205,020 | |The ratio was fixed by taking into consideration the Agency’s work and peculiarities, the population was given a weighting factor of 0.60. This is to cover the higher costs in studies and research, as well as increasing awareness. This higher cost is required to achieve reliable quota sampling taking into consideration that the population is also linked to geographical coverage.

As regards Croatia, the function estimating the budget resulted in a small amount. This amount was not considered to be adequate to cover the needs of the Agency’s work for this country. Therefore, based on the Agency’s experience a minimum amount was estimated for it.

The 2013 budget was reduced in accordance with the Agency’s budget and the Financial Perspectives in order to estimate the amounts for the previous years. In cases where small amounts were involved the minimum amounts required for the implementation of the Agency’s work were considered.

(a) refers to 2009

(b) refers to 2010 and 2011

(c) refers to 2012 and 2013

The following years will always be calculated on the basis of the function. Where this function will result in an amount that would not be adequate for the implementation of the Agency’s work, this will be adapted on the basis of the Agency’s experience.

[1] Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights, JO L 53 of 22.2.2007, p.1.

[2] Protocol on the Privileges and Immunities of the European Communities to the Treaty establishing a Single Council and a Single Commission of the European Communities, OJ L 152, 13.7.1967, p. 13 (DE, FR, IT, NL).

[3] Differentiated appropriations

[4] Non-differentiated appropriations hereafter referred to as NDA

[5] Expenditure that does not fall under Chapter xx 01 of the Title xx concerned.

[6] Expenditure within article xx 01 04 of Title xx.

[7] Expenditure within chapter xx 01 other than articles xx 01 04 or xx 01 05.

[8] See points 19 and 24 of the Interinstitutional agreement.

[9] As described under Section 5.3

[10] Cost of which is NOT covered by the reference amount

[11] Cost of which is NOT covered by the reference amount

[12] Cost of which is included within the reference amount

[13] Reference should be made to the specific legislative financial statement for the Executive Agency(ies) concerned.

[14] Specify the type of committee and the group to which it belongs.