[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 1.9.2006

COM(2006) 476 final

2004/0150 (COD)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the

common position of the Council on the adoption of a Decision establishing the Culture 2007 programme (2007-2013)

2004/0150 (COD)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251 (2) of the EC Treaty concerning the

common position of the Council on the adoption of a Decision establishing the Culture 2007 programme (2007-2013)

1. BACKGROUND

Date of transmission of the proposal to the EP and the Council (document COM(2004) 469 final – 2004/0150(COD)): | 14 July 2004 |

Date of the opinion of the European Committee of the Regions: | 23 February 2005 |

Date of the opinion of the European Parliament, first reading: | 25 October 2005 |

Date of the political agreement | 18 May 2006 |

Date of adoption of the common position: | 18 July 2006 |

2. OBJECTIVE OF THE COMMISSION PROPOSAL

The purpose of the Commission’s proposal is to establish a programme which can contribute to the flourishing of shared European cultural values on the basis of cultural co-operation between artists, cultural operators and cultural institutions. It will seek to promote multilateral cooperation within Europe as well as contribute to the bottom-up development of a European identity, thanks to interactions between citizens.

In comparison with the programmes that preceded it, the proposed programme goes further in the reinforcement of cultural cooperation by focussing the EU action on three main objectives which have been identified as having strong European added value: the trans-national mobility of people working in the cultural sector, the trans-national circulation of works of art as well as of artistic and cultural products and intercultural dialogue.

It consists of three strands: i) direct support for cultural co-operation projects, ii) support for European cultural co-operation organisations and iii) support for studies and for collecting and disseminating information in the field of cultural co-operation.

3. COMMENTS ON THE COMMON POSITION

The common position was adopted on 18 July 2006 by unanimity. The Commission is of the opinion that it is a compromise which fulfils most of the objectives of the amended Commission proposal, which, in turn, accepted a large number of the European Parliament’s amendments. All the EP amendments that the Commission could in full, in part or in principle accept have been integrated into the common position of the Council, in some cases subject to some rewording, i.e. amendments 1, 4, 7, 11, 15, 20, 23, 27, 33, 41, 43, 51, 52, 10, 14, 53, 55, 56, 59, 6, 8, 16, 26, 19, 24, 38, 42 and 62. Moreover, amendments 2, 3 and 13 (for which the Commission had a reserved position) as well as amendments 34, 47 and 49 are also included in the common position.

However, the Commission cannot support the common position with regard to two issues: the budgetary breakdown and the broadening of the comitology procedure to individual decisions on selection.

The Council decided to modify the Commission’s indicative budgetary breakdown, so that 32% of the programme budget could be dedicated to multiannual projects (strand 1.1 of programme), instead of 36 % in the Commission proposal, and 29% of the programme budget would be dedicated to cooperation measures (strand 1.2 of programme) instead of 24% in the Commission proposal. According to the Commission, its initial proposal enabled real structured European-wide cooperation to take place and thereby provided more visibility to sustainable long term projects and, as a consequence, to the programme. The initial emphasis on multi-annual projects should not be seen as an emphasis on big operators versus small operators; the aim was to encourage all the operators - whatever their scale - to participate within ambitious cooperation projects. The Commission also deems it necessary to dedicate 17% of the budget (as opposed to 16% in the common position) to special actions (strand 1.3 of programme) as this strand aims to strike a significant chord with the peoples of Europe and help them to increase their sense of belonging to the same community, which is highly instrumental towards the emergence of a European citizenship.

The Council decided to extend the comitology procedure to decisions on projects selection for grants over €200.000 (new Article 8.2d). This extension would imply, without a real added value, a longer internal decision-making procedure on the implementation of the programme.

The Commission also notes that the equivalent of the financial envelope of EUR 354 million in 2004 prices referred to in the Council common position (Article 2) is EUR 400 million in current prices.

4. CONCLUSION

The Commission considers that the common position adopted on 18 July 2006 by unanimity represents to a large extent a significant step forward in improving the clarity of the Decision and enhancing its provisions in line with the objectives to be achieved as set out by the Commission’s proposal. However, the Commission rejects two of its aspects regarding the budgetary split as well as the comitology (see statement annexed herewith) and therefore cannot accept it.

ANNEX

Commission statement on Article 8

The Commission regrets the wish of the Council to introduce into the “Culture 2007” Programme Decision a comitology procedure for individual activity selection decisions, in addition to the comitology procedure envisaged in the Commission’s original proposal for the selection procedure itself. The Commission notes that this would increase the time applicants have to wait for a decision on their proposals by 2 to 3 months, compared with the original proposal, which runs counter to the principle of simplification and user-friendliness espoused by the Commission, Council and European Parliament at the start of the legislative process. The Commission also notes that the European Parliament, in its First Reading opinion, was not in favour of subjecting individual selection decisions to a comitology procedure.

In implementing the Culture Programme, the Commission undertakes to inform the Council and the European Parliament without delay of all activity selection decisions that are taken without recourse to a comitology procedure.

The Commission furthermore undertakes to continue to seek ways to shorten the selection timetable through increases in administrative efficiency, in particular through use of the new Executive Agency for the implementation of the programme. It notes, however, that the scale of any such time-savings is substantially smaller than the 2 to 3 months that are at stake if recourse is made to a comitology procedure for individual selection decisions.

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Education and culture Activit(y/ies): Culture et Langues |

TITLE OF ACTION: CULTURE PROGRAMME |

1. BUDGET LINE(S) + HEADING(S) HEADING 3B

15 04 44 - Culture 2007

15 01 04 44 – Culture 2007 – Expenditure on administrative management

15 01 04 31 –Executive Agency for Education, Audiovisual and Culture – Subsidy for programmes of Heading 3b

2. OVERALL FIGURES

2.1. Total allocation for action : € 400,000 million

2.2. Period of application:

2007-2013

2.3. Overall multiannual estimate of expenditure:

(a) Schedule of commitment appropriations/payment appropriations (financial intervention) (see point 6.1.1)

Cash prices € million ( to 3rd decimal place)

2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013* | Total |

Commitments | 43,592 | 44,804 | 51,612 | 53,636 | 56,764 | 58,236 | 59,356 | 368,000 |

Payments | 16,750 | 35,574 | 41,605 | 46,729 | 49,343 | 52,531 | 125,468 | 368,000 |

* 2013 et seq for payments

(b) Technical and administrative assistance and support expenditure (see point 6.1.2)

Cash prices € million ( to 3rd decimal place)

2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013* | Total |

Commitments | 4,208 | 3,989 | 4,071 | 4,528 | 4,750 | 5,109 | 5,345 | 32,000 |

Payments | 4,208 | 3,989 | 4,071 | 4,528 | 4,75 | 5,105 | 5,344 | 32,000 |

* 2013 et seq for payments

Cash prices € million ( to 3rd decimal place)

Subtotal a + b | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013* | Total |

Commitments | 47,800 | 48,793 | 55,683 | 58,164 | 61,514 | 63,345 | 64,701 | 400,00 |

Payments | 20,958 | 39,563 | 45,676 | 51,257 | 54,093 | 57,636 | 130,812 | 400,00 |

* 2013 et seq for payments

(c) Overall financial impact of human resources and other administrative expenditure (see points 7.2 and 7.3)

Cash prices € million ( to 3rd decimal place)

2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Total |

Commitments/ payments | 2,239 | 2,239 | 2,239 | 2,240 | 2,240 | 2,240 | 2,241 | 15,678 |

Cash prices € million (to 3rd decimal place)

TOTAL a+b+c | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013* | Total |

Commitments | 50,039 | 51,032 | 57,922 | 60,404 | 63,754 | 65,585 | 66,942 | 415,678 |

Payments | 23,197 | 41,802 | 47,915 | 53,497 | 56,333 | 59,876 | 133,053 | 415,678 |

* 2013 et seq for payments

2.4. Compatibility with financial programming and financial framework

[X] Proposal is compatible with Annex I of the Interinstitutional Agreement on budgetary discipline and sound financial management on the financial framework 2007-2013 (JO C139 of 14 June 2006) and document V of the Commission on financial programming 2007-2013 (SEC(2006) 625 of May 2006)

2.5. Financial impact on revenue:

[X] Proposal has no financial implications (involves technical aspects regarding implementation of a measure)

3. BUDGET CHARACTERISTICS

Type of expenditure | New | EFTA contribution | Contributions form applicant countries | Heading in financial framework |

Non-comp | Diff | NO | YES | YES | 3b |

4. LEGAL BASIS

Treaty establishing the European Community, Article 151

5. DESCRIPTION AND GROUNDS

SEE INITIAL PROPOSAL.

6. FINANCIAL IMPACT

6.1. Total financial impact on Part B - (over the entire programming period)

6.1.1. Financial intervention

Commitments (cash prices)

2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 | Total |

Strand 1 –Support for projects | 36,422 | 37,499 | 43,197 | 44,891 | 47,509 | 48,741 | 49,741 | 308,000 |

-Multi-annual cooperation projects | 16,824 | 17,532 | 20,196 | 20,988 | 22,212 | 22,788 | 23,460 | 144,000 |

-Cooperation measures | 11,472 | 11,688 | 13,464 | 13,992 | 14,808 | 15,192 | 15,384 | 96,000 |

-Special Actions | 8,126 | 8,279 | 9,537 | 9,911 | 10,489 | 10,761 | 10,897 | 68,000 |

Strand 2 – Support to European Bodies active in the field of Culture | 4,780 | 4,870 | 5,610 | 5,830 | 6,170 | 6,330 | 6,410 | 40,000 |

Strand 3 – Analysis and Information | 2,390 | 2,435 | 2,805 | 2,915 | 3,085 | 3,165 | 3,205 | 20,000 |

TOTAL | 43,592 | 44,804 | 51,612 | 53,636 | 56,764 | 58,236 | 59,356 | 368,000 |

6.1.2. Technical and administrative assistance, support expenditure and IT expenditure (commitment appropriations) |

Commitments (cash prices)

Strand 1- Support for projects | 308,000 |

Multiannual cooperation projects | Subsidy/Grant to projects | 79 | 1,826 | 144,000 |

Cooperation measures | Subsidy /Grant to projects | 857 | 0,112 | 96,000 |

Special Actions | Subsidy/Grant to projects | 393 | 0,173 | 68,000 |

Strand 2-Support to European Bodies active in the field of culture | Subsidy for the functioning costs of Organisations | 268 | 0,149 | 40,000 |

Strand 3 – Analysis and Information | Subsidy/Grant to projects Market contracts: - Studies, collection, diffusion, exploitation of information and results Cultural Contact Points | 57 17 189 | 0,143 0,200 0,044 | 20,000 8,200 3,400 8,400 |

Management of the programme | Technical and administrative assistance (ATA)and support expenditure (DDA) | 32,000 |

TOTAL COST | 400,00 |

7. IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1. Impact on human resources

L'estimation des dépenses relevant de ce point 7 est une estimation moyenne sur la période 2007-2013. Il est envisagé d’augmenter les ressources humaines actuellement affectées à la gestion du programme Culture 2000 afin de prendre en compte l’évolution des crédits opérationnels affectés au programme; ces ressources humaines passeraient de 16 hommes/ans en 2007 à 20 hommes/ans en 2013 (pour 2013, les chiffres figurent entre parenthèses dans le tableau ci-dessous)

Types of post | Staff to be assigned to management of the action using existing and/or additional resources | Total | Description of tasks deriving from the action |

Number of permanent posts 2007 (2013) | Number of temporary posts 2007(2013) |

Officials or temporary staff | A B C | 4 (5) 3 (5) 6 (7) | 4 (5) 3 (5) 6 (7) | Implementation of programme |

Other human resources DNE/AUX | 1 2 | Support Staff National Experts (END) |

Total | 13 (17) | 16 (20) |

7.2. Overall financial impact of human resources – 2004 prices

Type of human resources | Amount (€ million) 2007(2013) | Method of calculation |

Officials Temporary staff | 1.404.000 (1.836.000) | 13* 108.000 17* 108.000 |

Other human resources (specify budget line) | 108.000 90.000 | 1* 108.000 Support Staff 2* 45.000 National Experts (END) |

Total | 1.602.000 (2.034.000) |

The amounts are total expenditure for twelve months.

7.3. Other administrative expenditure deriving from the action – 2004 prices

Budget line (number and heading) | Amount € million 2007(2013) | Method of calculation |

Overall allocation (Title A7) |

A0701 – Missions | 41.250 | 5 pers.*10 missions* € 825 (average) |

A07030 – Meetings | 116.000 | 2 meet.*50 pers.* (€ 860 + 2*(€ 150) |

A07031 – Compulsory committees 1 | 64.500 | 3 meet.*25 pers. *€ 860+2* (€ 150) |

A07032 – Non-compulsory committees |

A07040 – Conferences | 200.000 |

A0705 – Studies and consultations |

Other expenditure (specify) |

Information systems (A-5001/A-4300) |

Other expenditure - Part A (specify) |

Total | 421.750 |

The amounts are total expenditure for twelve months.

I. Annual total (7.2 + 7.3) II. Duration of action III. Total cost of action (I x II) | € 2.239.750 7 years € 15.678.250 |

The needs for human and administrative resources shall be covered within the allocation granted to the managing DG in the framework of the annual allocation procedure.

8. FOLLOW-UP AND EVALUATION

SEE INITIAL PROPOSAL.

9. ANTI-FRAUD MEASURES

SEE INITIAL PROPOSAL.