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COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 18.07.1997 
COM(97) 379 final 
REPORT TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE 
ECONOMIC AND SOCIAL COMMITTEE 
ON THE EUROPEAN TRAINING FOUNDATION 
(ARTICLE 17 OF COUNCIL REGULATION NO 1360/90 OF 7 MAY 1990) 
(presented by the Commission) 

1. INTRODUCTION 1 
2. THE FOUNDATION'S BACKGROUND, OBJECTIVES AND ROLE 1 
2.1 Political background 1 
2.2 Objectives and tasks 3 
3. THE FOUNDATION'S ESTABLISHMENT, ORGANISATION AND 
OPERATIONS 3 
3.1 Establishment and infrastructure 3 
3.2 Decision making and internal organisation 4 
3.3 Working methods and operations 4 
3.4 Financial resources and expenditure 7 
4. EVALUATION OF THE EUROPEAN TRAINING FOUNDATION 8 
4.1 Context and objectives of the evaluation 8 
4.2 The evaluators' findings, conclusions and recommendations 9 
4.3 Follow-up to the evaluation 11 
5. FUTURE PROSPECTS FOR THE EUROPEAN TRAINING FOUNDATION 11 
5.1 Clarification of the Foundation's mission 11 
5.2 Orientations for the Foundation's role in the context of Community actions 13 
6. CONCLUSION 15 
i-
REPORT TO THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE 
ECONOMIC AND SOCIAL COMMITTEE 
ON THE EUROPEAN TRAINING FOUNDATION 
(ARTICLE 17 OF COUNCIL REGULATION NO 1360/90 OF 7 MAY 1990) 
1. INTRODUCTION 
The objective of the present report is to provide an overview of the experience acquired by 
the work of the European Training Foundation to date. The report is being presented under 
application of Article 17 of the Council Regulation establishing the European Training 
Foundation1 which requires the Commission to create a monitoring and evaluation 
procedure for the Foundation and report on the first results of this procedure. 
This report addresses four topics (chapters 2-5): 
• the Foundation's background, objectives and role; 
• the Foundation's establishment, organisation and operations; 
• the evaluation of the Foundation's work to date; and 
• reflections on the Foundation's future prospects. 
As required by Article 17 of the Council Regulation, the report draws on material gathered 
by monitoring the Foundation's activities and on an independent evaluation. The 
Commission's experience in cooperating with the Foundation has been taken into account. 
2. THE FOUNDATION'S BACKGROUND, OBJECTIVES AND ROLE 
2.1 Political background 
The European Council, meeting in Strasbourg on 8-9 December 1989, requested the 
Commission to prepare a proposal for the establishment of a European Training Foundation 
for Central and Eastern Europe. This proposal was subsequently adopted by the Council on 
7 May 1990. 
The European Council took this initiative in the context of the political, social and 
economic reforms in Eastern Europe that were beginning, with the aim of addressing the 
need to support the emerging democracies and market economies. The Community's 
overall assistance programme to support these reforms (Phare) was adopted by the Council 
on 18 December 19892, initially for Hungary and Poland, and subsequently extended to the 
remaining Central and East European countries. The Phare programme provided assistance 
1 Council Regulation (EEC) no 1360/90 of 7 May 1990 establishing a European Training Foundation 
(OJ L 131 of 23 May 1990, p. 1), later amended by Council Regulation no 2063/94 of 27 July 1994 
(OJ L 216 of 20 August 1994, p. 9). These legal acts are hereafter referred to as the "Council 
Regulation". 
2 Council Regulation (EEC) no 3906/89 of 18 December 1989 (OJ L 375 of 23 December 1989, p. 11) 
1 
in areas including training, a sector which was considered important for the restructuring of 
the partner countries' economies at large.3 
Coordination of foreign assistance to the partner countries was considered important at the 
time by the Group of 24 industrialised countries (G 24) which had asked the Commission 
to take the lead in co-ordinating such assistance. It was felt that the Foundation could play 
a useful role in co-ordinating foreign assistance in the vocational training field. 
Within this context, the decision to establish a European Training Foundation was based on 
the following considerations: 
• The problems of professional/vocational training of the workforce in Central and 
Eastern Europe, and in particular the reconstruction of training systems as a whole, 
were so complex that it was found necessary to establish a special agency 
concentrating on this mission alone. 
• The experience in vocational training gained at Community level, by Member States 
and third countries, both in the private and public sectors, could be most effectively put 
at the disposal of the countries in transition to support their reforms, if channelled 
through an appropriate institutional framework. 
• While the Foundation needed a certain autonomy and flexibility to cooperate with 
national and international facilities, it was expected to maintain a close corporate 
relationship with the Commission and respect the overall political responsibilities of 
the Community and its institutions. 
Although the European Training Foundation was legally established by Council Regulation 
in May 1990, the Regulation only entered into force in October 1993 when the European 
Council in Brussels decided on Turin as the seat of the Foundation4. 
The delayed start-tip meant that the Foundation had to adapt to an environment different 
from the one in which it had been conceived. Important Community assistance 
programmes, the Phare and Tacis programmes, were underway, addressing the human 
resources development priorities expressed by the partner countries. These actions and 
priorities did not necessarily coincide with what had originally been foreseen in the 
Council Regulation establishing the Foundation (but not acted upon in the absence of a 
decision on the Foundation's seat). It was therefore felt necessary to involve the 
Foundation in the on-going assistance programmes, by adding to its statute a clause 
permitting it to implement training programmes agreed by the Commission5. 
5 The Independent States of the former Soviet Union and Mongolia were included as the Foundation's 
partner countries by Council Regulation no 2063/94 of 27 July 1994 (OJ L 216 of 20 August 1994, p. 
9), following the recommendation of the Brussels European Council in October 1993. The 
Commission has proposed further extending the Foundation's geographical remit to the countries 
participating in the MEDA programmes (Commission proposal of 28 April 1997, COM(97)177). 
Decision taken by common agreement between the Representatives of the Governments of the 
Member States on 29 October 1993 (OJ C 323 of 30 November 1993, p. 1) 
Article 3 (c), third indent of the Council Regulation, added by Regulation no 2063/94 of 27 July 1994 
(OJ L 216 of 20 August 1994, p. 9). 
2.2 Objectives and tasks 
The objective of the Foundation, as defined in the Council Regulation (Articles 1 and 2), is 
to contribute to the development of the vocational training systems of the countries of 
Central and Eastern Europe and the former Soviet Union and Mongolia. Vocational 
training is defined by the Regulation as comprising initial and continuing vocational 
training as well as retraining for young people and adults, including in particular 
management training. 
In pursuit of its objective, the Foundation is called upon to fulfil four core tasks which are 
its primary domains of activity (Article 3 of the Council Regulation): 
• to assist the partner countries in the definition of training needs and provide the 
Community, the Member States and-third countries with advice and information on 
such needs and on training initiatives (policy advice); 
• to assist the Commission in the implementation of training programmes-as part of the 
Community's assistance to the partner countries (Phare and Tacis), and in the 
monitoring and evaluation of training assistance to these countries; 
to facilitate international cooperation, in particular by promoting joint-ventures and 
preparing pilot projects. The Foundation's contribution, which may also include co-
financing, should lead to the financing of multi-national projects by one or several 
countries. More generally, the Foundation was created to act as a "clearing house" 
through which international offers of training assistance could be channelled; 
to disseminate information and encourage exchange of experience in the area of 
vocational training, for instance through publications and meetings. 
3. THE FOUNDATION'S ESTABLISHMENT, ORGANISATION AND OPERATIONS 
3.1 Establishment and infrastructure 
Following the decision of the European Council and after a 6-month preparatory period, the 
Foundation started its activities in Turin in January 1995, with the Commission lending 
comprehensive support to the emerging agency. 
The building hosting the Foundation was provided by the Italian authorities at a nominal 
rent for thirty years. Extensive refurbishing works are being financed from the Community 
subsidy to the Foundation (5 MECU6). In addition, a total investment of 3.3 MECU was 
made for office equipment and general operating expenses from 1994 to 1996. As of 1997, 
the on-going investments and running costs will amount to appr. 1.7 MECU per annum. 
Today, the Foundation has at its disposal, inter alia, state-of-the-art data processing 
facilities which enable it to operate a high performance Internet-site and address a vast 
audience world-wide. 
A site agreement covering the terms under which the Italian Government agrees to host the 
Foundation and, in particular, clarifying the status of the Foundation's personnel, was 
signed on 19 December 1994 and ratified by the Italian Parliament in April 1997. 
6 1994: 2 MECU; 1995: 1 MECU; 1996: 1 MECU; 1997: 1 MECU. 
3 
Personnel for the Foundation were recruited from mid-1994, commencing with the 
appointment of the Director by the Foundation's Governing Board on 20 May 1994. At 
present, the Foundation employs a total of 150 staff (130 temporary agents, 16 auxiliary 
and local agents, 4 experts on secondment from national administrations)7. The duration of 
contracts, which are renewable, varies from 3 to 5 years. 
Once the decision on the Foundation's seat had finally been taken, its establishment on site 
was accomplished in a comparatively very short time. 
3.2 Decision making and internal organisation 
The Foundation has a Governing Board consisting of representatives of the Member States 
and chaired by a Commission representative which acts as the agency's supreme decision 
making body. During 1994-97 the Board, meeting twice per year: 
- appointed the Director and the Advisory Forum; 
- adopted rules on local agents and a staff committee; 
- set down the financial rules of the Foundation; 
- adopted the Foundation's annual work programmes; 
- adopted the annual budgets; 
- gave budgetary clearance to the Director for 1994 and 1995; 
- approved the draft annual reports. 
The role of the Director is central in the organisation. He prepares and organises the work 
of the Governing Board, being especially responsible for the drawing-up and 
implementation of the work programme, the execution of the budget and all staff matters. 
He is the legal representative of the Foundation, and maintains relations with the 
Commission as well as Member State and partner country authorities. 
The Foundation is divided into three operational departments, responsible respectively for 
vocational training programmes, analysis and development, and technical assistance to 
Tempus. These are complemented by a Directorate, which consists of the post of Director 
and two Deputy Directors. Management training takes place by means of a horizontal 
matrix organisation, using the staff of the operational departments. These departments are 
supported by four central service units: financial and legal matters, administration and 
personnel, information and publications, and computer systems. An organisational chart is 
attached as Annex 2. 
Financial control of expenditure from the Foundation's own budget is assumed by the 
Financial Controller of the Commission. In the interest of administrative efficiency, this 
function was recently delegated to the Commission's Financial Control subsidiary at Ispra. 
The control of Phare and Tacis operational funds handled by the Foundation is also ensured 
by the Financial Controller of the Commission. 
3.3 Working methods and operations 
The Foundation's operational activities have made considerable progress over a period of 
almost three years commencing mid-1994. The emphasis during the initial phase (1994) 
was on developing a conceptual structure,, in particular by designing the Observatory 
concept. From 1995, once the Foundation was installed in Turin, programme management 
functions were established, starting with the transfer of the task to assist the Commission in 
7 The Foundation's establishment plan is included as Annex 1. 
4 
the management of the Tempus programme. The Commission provided active support in 
developing tools and methodologies, especially where these were of immediate relevance 
for Community actions (Observatory, management of Community programmes). 
The Foundation's tools - the Observatory and the Advisory Forum 
The objective of the Observatory, a concept initiated and supported by the Commission, is 
to gather and analyse accurate and up-to-date information and analyse developments, needs 
and priorities in vocational training in the partner countries. Such information and analyses 
are, in principle, destined for the partner states' competent authorities as well as those who 
are seeking to support training reforms within the partner states, in particular the 
Community and its Member States. The observatory function is being performed with the 
support of a network of 'national observatories' in the partner countries (contractors who 
are attached to an existing institution or authority). By 1996, national observatories had 
been set up in 11 countries in the Phare area and 8 countries in the Tacis area in 
cooperation with the national authorities of the countries concerned. The Foundation 
provided necessary staff training, organised networking activities, and established 
structured reporting, support and monitoring systems. In 1996, a first series of analytical 
reports on the vocational training systems of the 11 Phare countries was produced. Within 
the Foundation, a special observatory unit was set up which, inter alia, has completed a 
feasibility study for the development of a database (1996). Today, the Observatory can be 
considered largely operational. 
The Foundation's Advisory Forum, established by its Council Regulation and composed of 
vocational training experts from the Member States, the partner countries, the social 
partners and international organisations, represents a considerable source of knowledge and 
experience in training matters from all the countries involved. Meeting once a year in 
plenary and in sub-groups, it assists the Foundation by giving advice on vocational training 
issues and by suggesting priority areas for the Foundation's work. 
Generally speaking, the Foundation's operations were conceived and developed in line 
with its basic tasks (cf section 2.2 of this report). The following describes the progress 
made to date for each of these tasks: 
The definition of training needs and the provision of information and advice to the 
Community, the Member States and the partner countries (policy advice) 
Having developed its observatory function, the Foundation has so far deployed its 
analytical capacity mainly for the benefit of the Commission by providing advice and 
information. 
At the request of the Commission, the Foundation prepared a number of analyses and 
strategy papers, for instance by contributing to an assessment of vocational training in the 
associated Central and Eastern European countries in the context of the pre-accession 
exercise (1996) and to the Tacis 1996-99 Indicative Programmes and 1996-97 Action 
Programmes. Moreover, a number of concrete project proposals in areas of key interest 
were prepared by the Foundation for the Commission. 
In contrast to the extensive input received by the Commission, the Member States are not 
yet relying to the same degree on the Foundation's assistance and advice for the 
programming and design of their bi-lateral aid programmes. This remains an area to be 
developed further. 
However, the Foundation provided a range of services to the partner countries' authorities, 
namely policy advice, networking within and amongst partner countries, and human 
resources development. Targeted staff development programmes have been put in place 
since 1995, aiming to promote competence and policy development skills amongst key 
actors in partner countries, from the public and private sectors and the social partners. 
Regional 'partner conferences' served as the principal forum for networking and policy 
advice. The Foundation has also organised round tables, workshops and seminars for the 
dissemination of good practice and the provision of policy advice and has given advice on 
the drafting of new vocational training legislation. Regular meetings have been organised 
since 1995 for the local Programme Management Units (PMUs) in all Phare countries in 
order to encourage cooperation in vocational training. 
The provision of programme management services to the Commission 
The management, technical support and monitoring of projects/programmes for the 
Commission has, de facto, become the main thrust of the Foundation's activity during its 
first three years. The Foundation assisted the Commission in managing and monitoring 
such projects/programmes in three areas: 
• A number of Phare and some Tacis training assistance projects, which either focus on 
one country or are multi-country programmes, were transferred to the Foundation, 
representing aggregate operational funding of 81.5 MECU8. The Foundation initially 
provided these administrative services on the basis of contractual agreements 
concluded with the Commission which determined, for each programme or project, the 
Foundation's terms of reference and the handling of operational Community funds. 
A Framework Agreement was concluded between the Foundation and the Commission 
in March 1997, standardising the mechanisms for the transfer of project management 
and clarifying the repartition of roles between Commission and Foundation in the 
Phare/Tacis project cycle. Under this agreement, the Foundation enjoys autonomy in 
the management of Community projects, subject to ex-post controls, but may 
contribute to project identification and design only under the Commission's guidance. 
• From its establishment in Turin, the Foundation was given the task of providing the 
Commission with technical assistance with regard to the implementation of the 
Tempus programme, also on the basis of annual agreements. In this respect the 
Foundation has completed a range of continuous administrative activities following the 
Commission's guidelines, by preparing the project selection process, managing grant 
contracts and the payment of grants, monitoring projects, promoting the dissemination 
of results, preparing and publishing documents, and providing general administrative 
support. Operational Community funds of 321 MECU were handled. 
• During 1996-97, the Commission involved the Foundation in the implementation of 
some measures preparing the associated Central and Eastern European countries for 
participation in the Community's Leonardo da Vinci programme. 
The facilitation of international cooperation and the channelling of international 
assistance ('clearing house ') 
Some promising initiatives were undertaken in this domain, leaving room for further 
development and broadening of activities: 
8 A detailed list is attached as Annex 4. 
Following an initiative by the Russian Ministers of Education and Labour, a joint pilot 
project was designed to promote vocational training reform in four sectors 
(electronics/telecommunication, tourism, transport and wood production) in North-West 
Russia, through the linking of EU and Russian institutes. The project started in April 1996 
and has the active support of Austria, Finland, Germany, the Netherlands and the Region of 
Flanders. The Foundation assumes a coordinating role. The Member States are expected 
to contribute a total amount of 1.5 MECU in 1996-97; the Foundation's co-financing is 
0.175 MECU to date. 
At a more general level, the Foundation has begun to contribute to the coordination of 
international training assistance, by organising a first "donors workshop" in June 1996. 
Representatives of national ministries, national and international funding providers, and 
experts from partner countries participated. Similar workshops were held in Albania and 
Bosnia-Herzegovina (January and April 1997). A study into strategies for international 
cooperation has been carried out (1997). Future actions by the Foundation in this field will 
be based on this study. 
The dissemination of information and exchange of experience 
In addition to international meetings such as the "donors workshop" and the follow-up 
measures planned, the Foundation has begun to develop two thematic vocational training 
glossaries and a list of general key terms in vocational training, in order to encourage a 
common working terminology amongst the partner countries. 
The Foundation also uses its Advisory Forum network (cf section 3.3) and other networks 
as a vehicle to promote the exchange of information and experience. It relies on its 
cooperation with CEDEFOP to gather information and materials for the preparation for 
accession of the associated countries. A detailed memorandum of understanding, laying 
out concrete cooperation measures, is being drawn up by the two agencies. 
3.4 Financial resources and expenditure 
Being a European agency of the "second generation", the Foundation's financial resources 
could in principle consist of contributions from various interested parties (Article 9 of the 
Council Regulation). De facto, the Foundation has been financed exclusively by the 
Community to date. 
The Community financing is provided through an annual subsidy (budget line B7-501), the 
amount of which is determined taking into account the overall orientations for Community 
assistance to the Foundation's partner countries (Article 10 of the Council Regulation). 
This subsidy constitutes the Foundation's own budget which is executed by its Director. 
The Community subsidy serves to fund the Foundation's personnel, its infrastructure and 
running costs, the overheads ensuing from the execution of the Foundation's statutory tasks 
(cf section 1.1 of this report), and operational expenditure relating to its specific missions. 
The subsidy has been used as follows9: 
Budgetary year 
1994 
1995 
1996 
1997 Community 
financing 
5,000,000 
11,000,000 
16,500,000 
15,400,000 . Funds committed 
'3,159,569 
10,079,446 
14,507,757 Funds carried over 
to the following year 
319,000 
142,370 
665,000 Unused funds10 
1,521,431 
778,184 
1,327,243 
In addition to the subsidy paid into the Foundation's budget, the Commission provided 
supplementary funding with regard to some of the Foundation's key statutory functions 
during a limited initial period on the basis of contractual agreements. This was done in 
order to accelerate the setting-up of the national observatories network from which other 
Community actions will potentially benefit (financing from the Foundation's budget to 
date: 0.95 MECU; co-financing by the Commission: 2.57 MECU). 
Direct expenses associated with Community programmes administered by the Foundation 
were financed from the respective programme budgets, leaving staff salaries and overhead 
expenses to be funded from the annual subsidy. In particular, the direct expenses ensuing 
from the administration of Tempus were funded directly from the respective Community 
budget lines as of 1997 (1.55 MECU). 
4. EVALUATION OF THE EUROPEAN TRAINING FOUNDATION 
4.1 Context and objectives of the evaluation 
An external evaluation was carried out as part of a continuous monitoring and evaluation 
procedure jointly developed by the Foundation and the Commission in accordance with 
Article 17 of the Foundation's Council Regulation. The monitoring and evaluation process 
aims at assisting the Foundation to keep track of the accuracy and effectiveness of its 
procedures and activities and is designed to build confidence in the Foundation. 
The present evaluation was carried out by an external and independent contractor from 
February to April 1997. It covers the period from mid 1994 to early 1997. The terms of 
reference for the evaluation covered: 
achievements vs. the objectives outlined 
organisational and operational measures. in the basic Council Regulation; 
A more detailed breakdown is included as Annex 3. 
10 The existence of surplus funds in 1994 was due to the time lapse between the formal establishment of 
the Foundation and the recruitment of staff and investment in infrastructure. The budget execution in 
1995 and 1996 was hampered by the late release of funds kept in reserve by the European Parliament. 
4.2 The evaluators' findings, conclusions and recommendations11 
The following section summarises those findings, conclusions and recommendations in the 
evaluation report which in the Commission's view deserve highlighting: 
Findings and conclusions 
• The evaluators note that the Foundation presently focuses on the implementation of 
training programmes for the Commission, following the amendment of the 
Foundation's Council Regulation in 1994. This testifies in their view to a shift in its 
role in regard to the role envisaged when the Foundation was set up in 1990: from that 
of an international "clearing house" towards an "implementing agency" for the 
Commission. As a consequence, the evaluators consider that the Foundation's strategy 
on its "own" mission has emerged only recently. From the Commission's point of 
view, this shift of focus was largely caused by the Foundation's delayed start-up (cf 
section 2.1). 
• The evaluators consider that the Foundation offers a distinct "added value" with regard 
to the management of Phare and Tacis projects, through its higher staffing level 
(compared to Commission services), its technical competence and its expert view of 
the recipient countries. In none of the recipient countries visited was the Foundation's 
expertise questioned. The Phare and Tacis projects entrusted to the Foundation could 
be rated as bringing effective support to vocational training reforms. The Foundation's 
impact has consisted in significantly enhancing the effectiveness of projects which had 
often already commenced. 
• The Framework Agreement concluded with the Commission (cf section 3.3 above) is 
seen as an instrument to clarify and standardise the Foundation's contributions to the 
Phare and Tacis project cycle, while maintaining the Commission's responsibility for 
the decision on the transfer of projects, for the project identification and programming 
process and for the ex-post control of project management. The evaluators consider 
that the agreement paves the way for increased efficiency of the Foundation. However, 
they stress the Foundation's currently limited role in Phare and Tacis project 
identification. 
• The "national observatories" in the field are considered to represent a "unique network 
for the creation, analysis and dissemination of (relevant) data". When fully 
operational, this network will be able to contribute to the assessment of needs and 
strategies and offer the Foundation a valuable source of information in preparing in-
depth studies and other materials for its own use, for the Commission and for a wide 
public. The evaluators express their concern about giving the observatory network a 
strategy for its long-term development, in particular about not overloading it with too 
many functions, and stress the importance of continuing to support the network, not 
least financially. 
• The policy advice and training activities financed from the Foundation's own budget 
have brought concrete results. Both thematic workshops/seminars and staff 
development activities are highlighted as pertinent to the Foundation's core mission of 
Further details concerning methodology, evaluation activities and their results can be found in the 
complete evaluation report which can be provided upon request. The evaluator's findings, 
conclusions and recommendations do not necessarily represent the position of the European 
Commission. 
providing advice in vocational training matters, with the latter being seen as the best 
instrument to give such advice. Likewise, the Foundation's Advisory Forum, despite 
its large size, has in the evaluators' opinion been able to demonstrate its impact with 
regard to the development of vocational training policies. Having designed and put 
into practice a pilot project in North-West Russia with five bi-lateral donors represents 
in the evaluator's view a significant achievement. 
The Foundation's organisational structure is considered to be adequate for its present 
role (i.e. mainly management of Phare and Tacis programmes) but might have to be 
adapted if the Foundation were to act more as a "clearing house" and "centre of 
training expertise". The level of competence of its personnel, while globally adequate 
to the present task profile, could be enhanced by increasing the number of staff with 
specific vocational training expertise in the department responsible for vocational 
training programmes. The Foundation has in the evaluators' view a substantial base 
for the development of "institutional expertise", i.e. for rendering its potential effective 
in a given area. 
The evaluators draw the overall conclusion that, over a period of two years, the Foundation 
has achieved important positive results. 
However, they also highlight certain issues which need to be improved, in line with the 
Commission's perception of the situation: 
• The Foundation's management requires a number of adjustments, such as (1) the 
installation of an internal management information system which would supervise the 
advancement of different programmes and projects, and communicate such information 
to the Governing Board and interested Commission departments; (2) more transversal 
communication within the Foundation, building on measures already underway, and 
the development of wider competencies in order to build up institutional expertise; and 
(3) the creation of a framework for quantitative, activity-related cost analysis which 
will make the cost of the Foundation's different activities transparent. The evaluators 
consider the latter an urgent necessity. 
• The Foundation's financial procedures, as well as the organisation of its financial 
services, are considered to be in need of further improvement. The evaluators consider 
that the Foundation should continue the current re-organisation of its financial services 
in order to install a more uniform and transparent financial function, proceed with 
subject-related training and harmonise its own tender rules for operational activities 
with those applied to Phare and Tacis funds. 
This assessment coincides with the Commission's understanding. The Commission's 
Financial Controller recommends establishing a uniform financial management which 
covers the Foundation's different operations and guarantees a coherent approach in 
terms of financial management, accounting and reporting. The Commission also 
welcomes the fact that, according the evaluators, measures are currently being 
undertaken to improve the knowledge of and assistance to operational managers in 
preparing and adjudicating tenders. 
Recommendations 
A range of concrete recommendations have been made which will have to be analysed in 
detail and by the competent bodies. At policy level, the evaluators suggest considering a 
shift of emphasis from the present "strategy of volume" (i.e. accumulating responsibility 
for as many projects as possible) towards a strategy of focus. The Foundation should 
concentrate more on its "original" mission of acting as an international "clearing house" 
10 
and a focal point for training expertise, and therefore develop its observatory function, staff 
development and policy advice activities etc. While the administration of projects for the 
Commission should continue, the Foundation should closely liaise with the Commission in 
order to ensure that the projects transferred are in line with the Foundation's statutory 
objectives. 
4.3 Follow-up to the evaluation 
It is considered crucial that the evaluators' conclusions and recommendations be analysed 
and acted upon where necessary. The Foundation itself is the immediate addressee of the 
evaluation. Therefore, it is primarily the responsibility of the Foundation, and especially 
its Director, to provide an appropriate follow-up to the evaluation. A number of 
recommendations are directed at the improvement of the Foundation's management, of its 
financial procedures and of relations with the Foundation's different "clients". 
A more general discussion about the Foundation's future missions and strategy might 
ensue, taking up the evaluators' recommendation that the Foundation clarifyJts priorities. 
All matters of policy will be discussed by the appropriate bodies, in particular the 
Foundation's Governing Board which will address these matters soon when considering the 
Foundation's 1998-2000 work programme. 
The Foundation's Governing Board has stated that it is committed to contribute to the 
political conclusions to be drawn from the evaluation and supervise necessary 
administrative adjustments. 
FUTURE PROSPECTS FOR THE EUROPEAN TRAINING FOUNDATION 
The following chapter sets out the Commission's own proposals with regard to the 
Foundation's future strategy. These are intended as a contribution to a wider discussion in 
which further contributions would be welcome. Two themes will be addressed: a clearer 
definition of the Foundation's mission, as recommended by the evaluators, and orientations 
for the Foundation's future work within the framework of Community programmes and 
policies. 
5.1 Clarification of the Foundation's mission 
The Commission notes the evaluators' recommendation that the Foundation "focus more 
energy on its original mission" as an international clearing house for training initiatives 
and as a focal point for expertise which supports vocational training reforms through 
targeted advice. While the Foundation will no doubt continue to assist the Commission in 
implementing Community (Phare and Tacis) projects* this should not be to the detriment of 
the Foundation's core missions. 
To reinforce its original missions, the Commission recommends that the Foundation: 
• consolidate its analytical capacity. This will require earmarking the necessary funds in 
the Foundation's own budget to sustain the observatory network; 
• keep developing its internal expertise and its understanding of European best practice 
in key vocational training areas, making full use of the expertise of CEDEFOP; 
• further develop its policy advice activities for the partner countries, including staff 
development programmes, contribution to vocational training legislation, targeted 
studies, workshops and conferences etc.; 
11 
• reinforce its capacity as a "clearing house" providing national and international bodies 
with needs analyses and channelling assistance initiatives. This can only be done in 
close cooperation with the partner countries. 
In particular, in the light of the Foundation's original tasks as laid down in its Council 
Regulation (cf section 2.2 above), there would seem to be scope for giving more weight to 
the following: 
Dissemination and exchange of information and expertise 
Since the vocational training reform process in the partner countries depends to a large 
degree on the ready availability of expertise and know-how, the dissemination of 
information and exchange of experience needs to be reinforced. The Commission 
encourages the Foundation to continue developing a structured information flow from the 
European Union to the partner countries (and also between partner countries), through 
networking amongst competent bodies and targeted information activities (publications, 
seminars, use of the Internet etc.), assisting the partner countries to take fulLbenefit from 
best practice in the Union and orient their policies towards modern European standards in 
vocational training. 
In providing the know-how required for the restructuring of vocational training systems, 
the Foundation should draw on: 
• the Community's vocational training policies developed under Article 127 of the 
Treaty and the experience acquired by the Community through its various vocational 
training programmes. The action proposals made within this framework, relating for 
instance to the mutual recognition of qualifications, transparency of standards, cross-
border mobility and new technologies in training, are equally relevant for certain 
partner countries which are facing a similar need to increase competitiveness, defuse 
the employment crisis and combat social exclusion. It is evident that close cooperation 
with CEDEFOP must continue in this context; 
• the vocational training policies of the Member States and the experience gained at 
national level, in particular the expertise of regional, public and private bodies and 
institutes within the Member States, which represent a vast and diverse source of 
information. 
Reinforced cooperation with the Member States 
In accordance with its mandate to provide the Community's Member States with advice 
and information on training assistance to the partner countries, and to act as a "clearing 
house" for international cooperation (Article 3 (b) of the Council Regulation), the 
Foundation could broaden its cooperation with Member States by: 
• making the data and analysis resulting from the Foundation's observatory network 
available to Member States in a systematic manner, and providing advice on this basis; 
• based on the positive experience with the North-West Russia pilot project, initiating 
further multi-national pilot projects with technical and financial contributions from 
Member States and in conformity with the Foundation's tasks and objectives; 
• improving the flow of information amongst national authorities about training needs 
and assistance, through targeted networking activities; 
12 
• reinforcing the Governing Board's role with regard to the Foundation's work 
programme, for instance by organising discussions amongst its members on specific 
issues of common interest. 
5.2 Orientations for the Foundation's role in the context of Community actions 
While the need to strengthen the Foundation's original role can readily be acknowledged, 
the Commission expects the operational link with the Phare and Tacis programmes to 
continue. Precise coordination with the relevant Community actions and policies is 
therefore crucial. The Commission considers on-going close links with the Foundation 
indispensible to ensure a common approach on vocational training policies. 
The Framework Agreement 
The Framework Agreement signed recently clarifies the Foundation's operational link with 
the Commission and its contribution to the Community's overall assistance programmes. 
It will serve as a tool to define this contribution more accurately, by clearly, laying down 
the areas in which projects can be entrusted to the Foundation. This will go some way 
towards fulfilling the evaluators' recommendation to select such programmes "carefully". 
The Foundation 's contribution to the pre-accession process 
In the context of Community actions preparing the accession of associated Central and 
Eastern European countries, the Foundation, as an agency specially designated to assist the 
countries in question, is invited to target its efforts at the specific requirements of 
vocational training reform in the pre-accession process. The following priorities can be 
quoted in this context: 
• The integration of the associated countries into the European Union presupposes the 
existence of vocational training systems which are flexible enough to respond to the 
structural economic adjustments likely to result from membership in the Union, to cope 
with competitive pressure and market forces within an enlarged Union and to foster 
employment. Systemic training reform and the adaptation of vocational training 
structures to these needs should be the Foundation's overriding aim. To this end, the 
Foundation should promote the transfer of expertise acquired by the Community and 
its Member States (cf section 5.1) and provide policy advice on this basis. It should 
deepen its staff development activities and might envisage establishing networks 
between the reference groups it is already addressing in the partner countries (decision 
makers in vocational training administrations, social partners) and EU counterparts. 
• The implementation of the acquis communautaire in social policy may include aspects 
of vocational training in a broader sense. First, the involvement of the social partners 
in the identification of labour market needs, the definition of skill requirements and the 
design of training measures, in particular continuing training, needs to be enhanced. 
Second, the cooperation between enterprises and authorities to foster the continuing 
training of specific target groups may have to be deepened. Also, national and regional 
administrations in partner countries need to be familiarised with Community 
objectives, methods and procedures in this context. Future activities might build on the 
preparatory work already undertaken by the Foundation. 
• The adaptation to the acquis communautaire in key sectors of the economy will 
necessitate various forms of investment, to be supported, for instance, through national 
investment funds and facilities for the financing of SMEs. In addition to capital 
investment, attention will be paid to the necessary immaterial investment. Vocational 
training assistance could be needed to back up the capital investment made and ensure 
13 
that it serves the adaptation to European standards. The Foundation's possible 
contribution to such sectoral measures will be explored further. 
The former Yugoslav Republics and Albania 
In these countries the Foundation is invited to continue and broaden its activities to support 
the restructuring of the vocational training systems and the co-ordination of the work of 
donors organisations. 
The Tacis countries 
A key challenge in these countries will be to raise awareness of the importance of 
vocational training reform, given that the breakdown of centrally planned economies and 
the previously over-specialised training courses pose fundamental problems. 
Consequently, this topic should receive a higher profile in European and international 
assistance. It follows that the Foundation should: 
• initially focus on skill needs analysis in order to determine the precise nature of the 
structural training reforms required by these countries, and develop its capacity to 
provide competent advice to these countries, the Commission and international donors; 
• at the request of the Commission, make a more important contribution to the 
programming and design of vocational training assistance within the framework of the 
Tacis programmes, and pilot innovative solutions to problems; 
• improve the coordination of international training assistance. * 
The extension to the MED A countries - Amendment to the Council Regulation 
The Barcelona Euro-Mediterranean conference, the conclusions of which were accepted by 
the European Council in November 1995, stressed the importance of vocational training for 
Euro-Mediterranean cooperation. The work programme adopted by the conference called, 
inter alia, on the European Training Foundation to contribute. The Commission agrees that 
within the institutional framework established for the Foundation, the Community's 
vocational training experience can be placed at the disposal also of the Mediterranean 
partners, and has therefore proposed extending the Foundation's geographical remit to the 
countries participating in the MEDA programme by amending the Foundation's basic 
Council Regulation12. 
The Commission has worked extensively on upgrading technical and vocational training in 
the MEDA region and has developed a close and fruitful working relationship with 
Member State institutions and consultancies in so doing. It welcomes the involvement of 
the Foundation as an additional resource upon which it can draw. Starting anew in this 
region, the Foundation will have to build up its internal competence and determine its role 
in close cooperation with the Commission's MEDA services. The creation of analytical 
tools would seem a logical and likely first step. 
Efficient coordination with Community policies and bodies 
The legislative proposal to extend the European Training Foundation's basic Council 
Regulation to the Mediterranean countries also contains certain measures designed to 
further enhance the Foundation's efficiency. These measures can be seen as 
12 Commission proposal of 28 April 1997, COM(97)177. 
14 
complementary to the findings of the external evaluation. In particular, it is proposed to 
provide the Foundation with general policy guidelines which will allow for its activities to 
be aligned efficiently with the Community policies adopted with respect to the partner 
countries, in particular the pre-accession strategy. The Commission will also reinforce 
efficient coordination with other Community bodies, in particular CEDEFOP. 
6. CONCLUSION 
The Commission shares the evaluators' overall positive assessment of the work of the 
Foundation and its staff and considers that the Foundation's achievements to date have 
demonstrated its ability to make a valuable contribution to vocational training reform in the 
partner countries. 
The Foundation's progress has, in the Commission's view, been fostered by the 
Foundation's Governing Board which lias invested an important effort in the establishment 
and development of the Foundation, through the rapid adoption of all necessary rules, the 
annual budgets and work programmes and by the comprehensive support it provided. 
The Foundation also owes its successful and rapid establishment to the constructive and 
significant input from the Italian authorities at national, regional and local level. 
The evaluation's findings can be summarised by stating that Foundation has been able to 
demonstrate its "added value" in key areas: the management of Phare and Tacis training 
projects, the gathering and analysis of information through its observatory network, and the 
provision of competent advice to the Commission and to partner countries on vocational 
training matters. 
However, some areas of activity in the Foundation's statutory mandate deserve more 
attention. These are notably: cooperation with the Member States; facilitation of 
international cooperation ("clearing house"); and dissemination of information about 
European expertise and experience in vocational training. This needs to be reinforced 
without prejudice to the Foundation's continuous involvement in the implementation of the 
Phare and Tacis programmes. The latter will become more focused following the 
conclusion of a Framework Agreement with the Commission. The Commission expects 
that due attention will be paid to the evaluation report's recommendations with regard to 
the Foundation's management and financial procedures. 
The Foundation's will have a role in the pre-accession process. Its contribution in the 
context of the MEDA programmes will have to be planned carefully once the legislative 
basis has been established by the Council. In this context, the Commission considers on­
going close links with the Foundation indispensible to ensure a common approach on 
vocational training policies. It has proposed some modifications to the Council Regulation 
in order to further enhance the Foundation's guidance and efficiency. 
The Commission would welcome a broader discussion on the Foundation's future 
orientations and in particular invites the Foundation's Governing Board to contribute. 
15 
Annex 1 
Establishment plan 
{& 
1. Temporary agents 
A 2 1 
A3 2 
A4 7 
A 5 16 
A 7 ' • 34 
B 1 4 
B 3 10 
B 5 32 
C 1 2 
C 3 3 
C 5 19 
TOTAL 130 
Other agents of the Foundation 
Auxiliary agents A Q.25 fte* 
B 3.50 fte 
C 3.16 fte 
D 0.66 fte 
Total 7.75 fte 
Local agents 9.00 fte 
Detached National Experts 4.00 fte 
fte = full time equivalent 
» 
Annex 2 
Organisational chart 
\£ 
EUROPEAN TRAINING FOUNDATION : Organigramme 
Directorate 
Office 
2A,1C Director 
Peter DE ROOI] 
1A December 1996 
Deputy Director 
Ulrich HILLENKAMP 
1A,1C 
Tempus Dept. 
Olivier RAMSAYER 
16A, 12B, 4C 
J> 
Phare Unit 
Peter 
BEDEWELL 1 
Deputy Director 
Livio PESCIA 
1A,1C 
Vocational Education & Training Dept. 
]ean - Raymond MASSON 
16A, 11B, 3C 
Tacis Unit 
Sandra 
STEFANI Phare Unit 
Anthony 
GRIBBEN Analysis & Development Dept. 
Hans Konrad KOCH 
12A,5B,2C 
Tacis Unit 
Markku 
JUNKKARI Observatory 
Unit 
Ton 
FARLA Strategy 
Unit 
Lindsay 
JACKSQN 
Management 
training 
programme 
Financial and Legal Dept. 
Dominique HUBART 
4 A, 6B, 2C Administration & Personnel Dept. 
Francesco PANZICA 
2A, 4B, 5C Information & Publications Dept. 
Gisela SCHURINCS 
2A, 3B, 4C ; Computer Systems Dept. 
jeffHARRlS 
3A, 5B, 1C 
Annex 3 
Breakdown of revenue and expenditure 
lo 
Budgetary 
year Budget title Community 
financing Funds committed Funds carried over 
to the following 
year Unused funds 
1994 
1995 
1996 
K> Title 1 - Personnel expenses 
Title 2 - Building, equipment and running expenses 
Title 3 - Operational expenses 
Title 9 - Reserve 1,391,750 
3,323,250 
285,000 620,089 
2,387,193 
152,286 
Total 5,000,000 3,159,569 
Title 1 - Personnel expenses 
Title 2 - Building, equipment and running expenses 
Title 3 - Operational expenses 
Title 9 - Reserve 6,769,953 
2,471,538 
1,658,509 
100,000 6,360,136 
2,271,926 
1,447,384 
Total 11,000,000 10,079,446 
Title 1 - Personnel expenses 
Title 2 - Building, equipment and running expenses 
Title 3 - Operational expenses 
Title 9 - Reserve 9,794,188 
2,485,062 
4,220,750 8,715,845; 
2,453,404 
3,338,508 
Total 16,500,000 14,507,757 WÊ8ÊÈ 
319,000 
142,370 
142,370 
665,000 
665,000 771,661 
617,057 
132,714 
1,521,431 
409,817 
199,612 
68,755 
100,000 
778,184 
1,078,343 
31,658 
217,242 
1,327,243 
Annex 4 
List of Phare and Tacis projects managed by the Foundation 
11 
COUNTRY PROGRAMME TITLE CONVENTION 
NO. BUDGET PAIDBYETF 
31/12/96 Date 
signed End of 
convention 
Czech. Republic 
Estonia 
i 
Latvia 
Lithuania 
Poland 
Romania 
Sîovak Republic 
Sioveniâ 
Albania 
Estonia 
Latvia 
Bulgaria 
Bulgaria 
Estonia 
^ Estonia Vocational education and training reform CZ9305 
Vocational education and training reform ES9409 
Vocational education and training reform LA9408 
Vocational education and training reform LI9410 
Vocational education and training reform PL9416 
Vocational education and training reform RO9405 
Vocational education and training reform SR9403 
Vocational education and training reform SL9405 
: Vocational education and training reform AL9506 
\ Business and Higher Education, Language training ES9502 
i Business education reform LE9502 
\ Management training BG9315 
; Vocational education and training reform BG9506 
I Higher educational science ES961201 
; Education, science, information system ES961202 4,000,000 
3,000,000 
3,000,000 
4,000,000 
4,000,000 
25,000,000 
4,000,000 
3,000,000 
700,000 
1,700,000 
1,000,000 
1,399,000 
9,000,000 
1,600,000 
600,000 3,215,836 
1,244,163 
2,069,795 
2,048,079 
3,442,759 
10,491,487 
1,144,220-
1,803,197 
641,435 
122,237 
1,885,140 14/02/95 
14/02/95 
14/02/95 
14/02/95 
14/02/95 
14/02/95 
14/02/95 
14/02/95 
14/03/96 
01/03/96 
01/03/96 
17/10/96 
26/06/96 
18/02/97 
18/02/97 31/12/97 
31/12/98 
31/12/98 
31/12/98 
31/12/97 
31/12/98 
31/12/98 
31/12/98 
31/12/99 
31/12/99 
31/12/99 
31/12/97 
31/12/99 
31/12/99 
31/12/99 
Phare multi-country 
Phare mufti-country 
Phare multi-country 
Pbaœ multi-country 
Phare Staff development 
National Observatories 
Higher Education 
Distance Education 
Preparatory measures ZZ9432 
ZZ9407 
ZZ9520 
ZZ9507 
Leonardo 1,400,000 
1,000,000 
3,500,000 
5,000,000 
700,000 558,473 
339,016 
64,000 
13,788 
510 15/03/95 
23/03/95 
15/07/96 
16/07/96 
23/01/96 31/12/98 
31/12/98 
31/12/98 
31/12/98 
30/11/97 
COUNTRY PROGRAMME TITLE CONVENTION NO. BUDGET PAID BY ETF 
31/12/96 Date 
signed End of 
convention 
Tacis multi-country 
Tacis multi-country 
i 
Tacis multi-country 
Tacis multi-country 
Tacis multi-country 
Tacis multi-country Tacis National Observatories 
Tacis National Observatories 
Management training 
Information, dissemination, monitoring Tempus 
Language training 
Language training 93,0509 
96,5166 
96,5167 
WW94.03 
96,5168 
96,5572 602,400 
969,800 
530,200 
577,000 
500,000 
782,649 101,320 
100,000 
174,032 
131,456 17/08/95 
03/07/96 
03/07/96 
10/11/95 
03/07/96 
07/02/97 31/12/97 
31/12/97 
31/12/97 
31/12/96 
31/12/97 
31/12/97 
TOTAL 81,561,049 29,590,942 
Phare 
Phare 
Phare 
Phare 
Phare 
^ Tacis 
Tacis 
Tacis 
Tacis Tempus II Programme (1995-98) 
Tempus II Programme (1996-99) 
Tempus II Programme (1997-2000) 
Tempus technical assistance 
Tempus technical assistance 
Tempus II programme (1995-1998) 
Tempus II programme (1996-1999) 
Tempus II programme (1997-2000) 
Tempus technical assistance Tempus 
Tempus 
Tempus 
Tempus 
ZZ9432 
Tempus 
Tempus 
Tempus 
Tempus II Phare 
II Phare 
II Phare 
II Phare 
II Tacis 
II Tacis 
II Tacis 
II Tacis 102,100,000 
83,000,000 
56,500,000 
930,000 
1,200,000 
23,000,000 
29,660,000 
24,000,000* 
624,360 66,534,495 
24,244,002 
1,058,428 
15,265,082 03/04/96 
27/01/95 
27/01/95 
22/01/97 
15/03/95 
09/03/95 
30/06/96 
22/01/97 
22/01/97 31/12/98 
31/12/99 
31/12/2000 
31/12/97 
» 31/12/96 
31/12/98 
31/12/99 
31/12/2000 
31/12/97 
TOTAL 321,014,360 107,102,007 
GRAND TOTAL 402,575,409 136,692,949 
Estimation. 
ISSN 0254-1475 
COM(97) 379 final 
DOCUMENTS 
EN 16 11 
Catalogue number : CB-CO-97-369-EN-C 
ISBN 92-78-22807-9 
Office for Official Publications of the European Communities 
L-2985 Luxembourg 
Is