PRELIMINARY DRAFT AMENDING BUDGET No 6 TO THE BUDGET FOR 2004 - GENERAL STATEMENT OF REVENUE - STATEMENT OF REVENUE AND EXPENDITURE BY SECTION - Section III - Commission

(presented by the Commission)

Having regard to

- the Treaty establishing the European Community, and in particular Article 272 thereof,

- the Treaty establishing the European Atomic Energy Community, and in particular Article 177 thereof,

- Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities, [1] and in particular Article 37 thereof,

[1] OJ L 248, 16.09.2002, p. 1.

the European Commission hereby presents to the budgetary authority the preliminary draft amending budget No 6 to the 2004 budget for the reasons set out in the explanatory memorandum.

EXPLANATORY MEMORANDUM

1. Introduction

The purpose of this preliminary draft amending budget is to create a new budget line 06 01 04 30 "Executive Agency for Intelligent Energy" to receive this Agency's operating subsidy. This new budget line will receive appropriations from the other budget lines for the programme.

2. Creation of the Executive Agency for Intelligent Energy

Article 54 of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities [2] provides that the Commission may entrust tasks of public authority and in particular budget implementation tasks to agencies governed by Community law, referred to as "executive agencies", provided that these tasks do not involve a large measure of discretion implying political choices.

[2] OJ L 248, 16.9.2002.

Article 55 of that Regulation defines executive agencies as legal persons set up by Commission decision to which powers can be delegated to implement all or part of a Community programme or project on behalf of the Commission and under its responsibility. The same article makes the creation of such agencies subject to adoption of a Council Regulation laying down the statute and defining the conditions and arrangements for their creation and operation.

On 19 December 2002 the Council accordingly adopted Regulation (EC) No 58/2003 laying down the statute for executive agencies, [3] which is intended to enable the Commission, in exercising the implementing powers conferred on it, to set up Agencies to be entrusted with certain tasks relating to the management of Community programmes, including tasks of budget implementation.

[3] OJ L 11, 16.01.2003, p. 1.

The multiannual programme for action in the field of energy: "Intelligent Energy - Europe" was adopted by the European Parliament and the Council on 26 June 2003. [4]

[4] Decision No 1230/2003/EC, OJ L 176, 15.7.2003, p. 29.

In the light of the cost-benefit analysis carried out and in order to achieve more efficiently the objectives set by this Community programme, it was considered necessary to have an Executive Agency perform certain management tasks; the Commission accordingly adopted a decision on 23 December 2003, in line with the opinion of the Committee for Executive Agencies, setting up the Intelligent Energy Executive Agency. [5]

[5] OJ L 5, 09.01.2004, p. 85.

The Commission decision states that the Agency will receive a grant which will be entered in the general budget of the European Communities from the funds allocated to the Community programme Intelligent Energy - Europe.

In this preliminary draft amending budget the Commission proposes the creation of a new budget line 06 01 04 30 "Executive Agency for Intelligent Energy" to receive the Agency's operating subsidy.

This new budget line will receive appropriations from the other budget lines for the programme.

In the Commission decision setting up the above executive agency, the estimate of the annual operating expenditure of the Agency in 2004 assumed that the Agency would start operating in January 2004 with eight seconded officials. It also assumed that the remaining staff would join from May 2004. Under these assumptions the Commission estimated the 2004 subsidy to the Agency to be EUR3.385 million.

The Commission now expects the Agency to start operating in May 2004, including the eight seconded officials. Therefore, the annual subsidy in 2004 should be adapted to take into account the reduced operating costs that result. The 2004 subsidy to the Agency will amount to EUR2.770 million.

TECHNICAL ANNEX

STATEMENT OF REVENUE AND EXPENDITURE BY SECTION

SECTION III - COMMISSION

Statement of expenditure

Item 06 01 04 08 -- Intelligent energy for Europe programme (2003 to 2006) -- Expenditure on administrative management

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Remarks (unchanged)

Item 06 01 04 30 -- Executive Agency for Intelligent Energy

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Remarks

This appropriation constitutes the subsidy to cover the executive agency's expenditure on personnel and administration.

To the appropriations entered in this article must be added the contributions from the EFTA States pursuant to the Agreement on the European Economic Area, and in particular Article 82 thereof and Protocol 32 thereto. By way of information, these amounts derive from contributions from the EFTA States entered against Article 6 3 0 of the statement of revenue, which constitute assigned revenue in accordance with Article 18(1)(d) of the Financial Regulation; they give rise to the provision of corresponding appropriations and to implementation under Annex V to this part of the statement of expenditure in this section, which forms an integral part of the general budget.

Any revenue from the candidate countries' contribution to participation in Community programmes, entered in Item 6 0 9 1 of the statement of revenue, may give rise to the provision of additional appropriations, according to the same ratio as between the amount authorised for expenditure on administrative management and the total appropriations entered for the programme, in accordance with Article 18(1)(d) of the Financial Regulation.

Establishment plan:

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Legal bases

Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes. [6]

[6] OJ L 11, 16.01.2003, p. 1.

Decision No 1230/2003/EC of the European Parliament and of the Council of 26 June 2003 adopting a multiannual programme for action in the field of energy: "Intelligent Energy - Europe" (2003-2006). [7]

[7] OJ L 176, 15.07.2003, p. 29.

Reference acts

Commission Decision of 23 December 2003 setting up an executive agency, the "Intelligent Energy Executive Agency", to manage Community action in the field of energy in application of Council Regulation (EC) No 58/2003. [8]

[8] OJ L 5, 9.01.2004, p. 85.

Article 06 04 01 -- Intelligent Energy for Europe Programme (2003 to 2006)

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The likely schedule of payments vis-à-vis commitments is as follows:

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Remarks (unchanged)