RESOLUTION OF THE EUROPEAN PARLIAMENT
of 24 April 2007
with observations forming an integral part of the Decision on the discharge for the implementation
of the budget of the European Agency for Reconstruction for the financial year 2005
THE EUROPEAN PARLIAMENT,
— having regard to the final annual accounts of the European Agency for Reconstruction for the financial
year 2005 (1),
— having regard to the Court of Auditors' report on the final annual accounts of the European Agency for
Reconstruction for the financial year 2005, together with the Agency's replies (2),
— having regard to the Council's Recommendation of 27 February 2007 (5711/2007 —C6-0080/2007),
— having regard to the EC Treaty, and in particular Article 276 thereof,
— having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
Regulation applicable to the general budget of the European Communities (3), and in particular
Article 185 thereof,
— having regard to Council Regulation (EC) No 2667/2000 of 5 December 2000 on the European Agency
for Reconstruction (4), and in particular Article 8 thereof,
— having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the
framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC,Euratom) No 1605/2002 (
5), and in particular Article 94 thereof,
— having regard to Rule 71 of and Annex V to its Rules of Procedure,
— having regard to the Report of the Committee on Budgetary Control (A6-0116/2007),
A. whereas the Court of Auditors stated that it obtained reasonable assurance that the annual accounts for
the financial year ended 31 December 2005 were reliable, and the underlying transactions, subject to the
reservation, were legal and regular,
B. whereas on 27 April 2006 Parliament gave discharge to the director in respect of the implementation of
the Agency's budget for the 2004 financial year (6) and in the Resolution accompanying the discharge
Decision Parliament, inter alia,
— urged the Agency to seek guidance to improve its Treasury Management Policy in order to make
best use of the often considerable sums maintained in current bank accounts,
— noted that the transactions relating to counterpart funds, credit line schemes and special funds had
been completely recorded in the absence of effective internal control procedures for long-termreceivables; insisted that all transactions be capable of verification by the Court of Auditors,15.7.2008 EN Official Journal of the European Union L 187/183
(1) OJ C 266, 31.10.2006, p. 7.
(2) OJ C 312, 19.12.2006, p. 18.
(3) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006,
p. 1).
(4) OJ L 306, 7.12.2000, p. 7. Regulation as last amended by Regulation (EC) No 1756/2006 (OJ L 332, 30.11.2006,
p. 18).
(5) OJ L 357, 31.12.2002, p. 72.
(6) OJ L 340, 6.12.2006, p. 74.
— in order to address the serious problems of unreliability (and accusations of corrupt practices) then
surrounding the conditions under which public procurement contracts and concessions wereawarded for highly sensitive projects (e.g. mobile telephony operators), urged the Commission andthe Agency, in close cooperation with UNMIK (United Nations Interim Administration Mission inKosovo) and the FIU (Financial Investigation Unit), to lay down clear and transparent procurementrules, to establish internal and supreme audit institutions, and to keep Parliament informed as toprogress made;
General points concerning the majority of EU Agencies requiring individual discharge
1. Considers that the ever-growing number of Community Agencies and the activities of certain of them do
not seem to form part of an overall policy framework, and that the remits of some Agencies do notalways reflect the real needs of the Union or the expectations of its citizens, and notes that in generalterms the Agencies do not always have a good image or a good press;
2. Invites the Commission therefore to define an overall policy framework for the setting up of new
Community Agencies and to present a cost-benefit study before the setting up of any new agency, whilebeing careful to avoid any overlap of activities between Agencies or with the remits of other Europeanorganisations;
3. Calls on the Court of Auditors to give its opinion on the cost-benefit study before Parliament takes its
decision;
4. Invites the Commission to present every five years a study on the added value of every existing Agency;
invites all relevant institutions in the case of a negative evaluation of the added value of an Agency to takethe necessary steps by reformulating the mandate of that Agency or by closing it;
5. Considers it regrettable, given the growing number of regulatory Agencies, that the negotiations on the
draft interinstitutional agreement on the operating framework for the European regulatory Agencies havenot yet been concluded, and calls on the relevant departments of the Commission, in consultation withthe Court of Auditors, to do their utmost to ensure that the agreement is brought to a rapid conclusion;
6. Notes that the Commission's budgetary responsibility calls for closer linking of the Agencies to the
Commission; calls on the Commission and the Council to take all necessary steps to give theCommission a blocking minority in the supervisory bodies of the regulatory Agencies by 31 December2007 and to provide for such a minority from the outset when new Agencies are set up;
7. Invites the Court of Auditors to create an additional chapter in its Annual Report, devoted to all Agencies
to be discharged under the Commission's accounts in order to have a much clearer picture of the use ofEU funds by Agencies;
8. Recalls the principle according to which all Community Agencies, whether subsidised or not, are subject
to discharge by the Parliament, even where a discharge authority exists by virtue of their constitutivetexts;
9. Calls on the Court of Auditors to perform performance audits for all Agencies and to report back to the
relevant committees of Parliament, including the Committee on Budgetary Control;
10. Notes that the number of Agencies is constantly increasing and that, in accordance with the
Commission's political responsibility for the operation of the Agencies, which goes far beyond merelogistical support, there is an even higher need for the Directorates-General of the Commission chargedwith the setting up and monitoring of Agencies to develop a common approach to the Agencies;considers that a structure similar to the one created by the Agencies for coordination among the DGsconcerned would be a pragmatic way forward towards a common approach by the Commission on allmatters relating to the Agencies;L 187/184 EN Official Journal of the European Union 15.7.2008
11. Invites the Commission to improve administrative and technical support to the Agencies, taking into
account the growing complexity of the Community's administrative rules and technical problems;
12. Notes the lack of a disciplinary body in any of the Community Agencies, and calls on the Commission to
take the necessary steps to ensure that such a mechanism is rapidly put in place;
13. Welcomes the considerable improvements in the coordination among the Agencies, which allows them
to tackle recurring problems and makes cooperation with the Commission and Parliament moreefficient;
14. Takes the view that the establishment by a number of Agencies of a shared support service aimed at
making their computerised financial management systems consistent with those of the Commission is ameasure that should be taken further and extended;
15. Calls upon the Agencies to improve their cooperation and benchmarking with actors in the field; urges
the Commission to adopt any measures it considers necessary to help the Agencies enhance their imageand raise the profile of their activities;
16. Calls upon the Commission to come up with a proposal to harmonise the format of the annual reporting
by the Agencies and to develop performance indicators which would allow a comparison of theirefficiency;
17. Invites the Agencies to present at the beginning of every year performance indicators against which they
could be measured;
18. Invites all Agencies to increasingly use SMART objectives which should lead to more realistic planning
and implementation of goals;
19. Agrees with the Court of Auditors that the Commission also bears responsibility for the (financial)
management of the Agencies; therefore, urges the Commission to monitor and where necessary directand help the management of the different Agencies, especially in relation to the proper application oftender procedures, transparency of recruitment procedures, sound financial management (underspendingand overbudgeting) and most importantly the proper application of the rules concerning the internalcontrol framework;
20. Considers that the Agencies' work programmes should express their contributions in operational and
measurable terms and that due consideration should be given to the Commission's Internal ControlStandards;
Specific points
21. Underlines its high appraisal of the results achieved by the Agency and the considerable improvements
the Agencies could put in place in order to respond positively to the recommendations of the Court ofAuditors and the Parliament;
22. Congratulates the Director and its staff for the work done in a very difficult environment improving
considerably the image of the EU and its visibility;
23. Insists that the Commission prolong the Agency's activity, which is scheduled to end in 2008; is of the
opinion that the Agency should be transformed into an Agency for implementation of certain EUexternal actions, which transformation should be based on a prior cost-benefit analysis, in particular witha view to managing post-conflict situations, while being careful to avoid any overlap with the activities ofother European or international organisations, in order to prevent acquired expertise being lost;
24. Calls on the Commission to inform Parliament which reasons, other than its intention to close the
Agency in 2008, led to the fact that the Agency was not given the task of implementing the Union'sspecial programme for the northern part of Cyprus and aid to the Palestinian population;15.7.2008 EN Official Journal of the European Union L 187/185
25. Considers that the Agency has not only the systems (logistics, IT systems, and others) to implement
swiftly large amounts of support in post-conflict areas, but that it has especially also proven high levelsof expertise and know how in post-war reconstruction;
26. Is convinced that at a point where the Commission wants to take over the management of the new
Instrument for Pre-Accession Assistance in view of the acquis-related tasks related to the Balkans, theAgency should take over the tasks required by a ‘RELEX external actions Agency’;
27. Considers that a new mandate of this successful agency would be the most efficient way to implement
the new tasks in external actions, which cannot be implemented by Commission services in Brussels orby delegations of the Commission;
28. Considers that the Agency could play a most efficient role in areas where traditional development
assistance cannot be implemented; considers also that this would significantly increase the EU's visibility;
29. Welcomes the measures taken by the Agency to improve contract award procedures following the Court
of Auditors' observations raised in its 2003 and 2004 annual reports, which resulted in increasedtransparency in various areas: for instance, important decisions made during the evaluation processwhich affect the contract award are better documented and furthermore the overall discipline of theevaluation and contract award procedures is improved;
30. Invites the Agency to further develop selection criteria in order to make them more realistic as they
sometimes are ill-suited to the circumstances in which the Agency is operating;
31. Welcomes the progress made in the area of tendering and encourages the Agency to further intensify its
efforts in order to ensure that contracts awarded fully comply with all regulatory provisions;
32. Notes that in its 2004 report the Court of Auditors stated in a review of operations entrusted to UNMIK
an absence of adequate financial control when making payments and serious difficulties in closing
operations, mainly due to an absence of adequate accounts for the projects and of sufficient justification
for the expenditure; welcomes the significant efforts made by the Agency in 2005 to resolve thissituation, but notes however that some problems for closing operations remained.L 187/186 EN Official Journal of the European Union 15.7.2008