Proposal for a COUNCIL DECISION concerning the Community position within the Association Council on the financial contribution of Bulgaria for participation in the Socrates programme in the years 2001 to 2006

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Helsinki European Council of December 1999 confirmed the enlargement process launched at its meeting of December 1997 in Luxembourg. The enhanced Pre-Accession Strategy defined in 1997 has been reiterated, which includes the participation of the 13 candidate States in Community programmes as an important part of such strategy.

As regards the ten candidate countries of Central and Eastern Europe (CEECs), participation in Community programmes is provided in their respective Europe Agreements. Pursuant to the Europe Agreements, the conditions and modalities of these countries' participation are defined by the respective Association Councils.

In the case of the education, training and youth programmes, all the CEECs have been participating in 1999 in the first phase of the Leonardo da Vinci and of the Socrates programmes, and in the Youth for Europe programme, which expired on 31 December 1999. Their participation in these programmes has been an important element in these countries' pre-accession process.

Moreover, Association Council decisions have already been adopted in 2000 to allow them to participate in the second phase of Leonardo da Vinci and the second phase of Socrates, which have taken the place of the previous programmes as from 2000. The CEECs have thus participated in these new programmes since their beginning, and the activities undertaken within the first generation of programmes have been able to continue within the successor programmes without any interruption.

For the Socrates programme, the Association Council decisions adopted in 2000, which apply until the end of the programme, establish the financial contribution to be paid by each CEEC for participation in the year 2000, and specify that their financial contribution for the following years will be decided by the respective Association Councils in the course of the year 2000. The Commission has calculated this contribution on the basis of the budget for the programme. All the CEECs have confirmed their agreement, and indicated their willingness to pay their financial contribution partly from their national budget, and partly from their annual Phare allocation. As provided in the conclusions of the meeting of the European Council in Luxembourg of 12 and 13 December 1997, these countries' financial contributions of their own are steadily increasing.

Therefore, the Commission now proposes to the Council to specify the financial contribution of each CEEC to Socrates for the years 2001 to 2006 in a new decision, which will complete the decision of the respective Association Councils adopting the terms and conditions for the participation of these countries in the Socrates and Leonardo da Vinci programmes.

Accordingly, the Council is invited to adopt the annexed proposal for a Council Decision concerning the Community position within the Association Council on the financial contribution of Bulgaria for participation in the Socrates programme in the years 2001 to 2006.

20001/0007 (ACC)

Proposal for a COUNCIL DECISION concerning the Community position within the Association Council on the financial contribution of Bulgaria for participation in the Socrates programme in the years 2001 to 2006

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles 149 and 150, in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) Decision 3/2000 of 2 August 2000 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part [1], has adopted the terms and conditions for the participation of the Republic of Bulgaria in the second phase of the Leonardo da Vinci and Socrates programmes, and it applies for the duration of these programmes.

[1] OJ L248, 3.10.2000, p. 23.

(2) Annex II, point 2 of Decision 3/2000 provide that the financial contribution to be paid by Bulgaria to the budget of the European Union to participate in this programme in the years 2001 to 2006 will be decided by the Association Council in the course of the year 2000,

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, concerning the financial contribution of Bulgaria for participation in the Socrates programme in the years 2001 to 2006, is the attached draft decision of the Association Council.

Done at Brussels,

For the Council

The President

Draft

DECISION N° .../ 2001 OF THE ASSOCIATION COUNCIL between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part

of .....

establishing the financial contribution of Bulgaria for participation in the Socrates programme in the years 2001 to 2006

THE ASSOCIATION COUNCIL

Having regard to the Additional Protocol to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other, concerning Bulgaria's participation in Community programmes, and in particular Articles 1 and 2 thereof [2];

[2] OJ L317, 30.12.1995, p. 25.

Whereas :

(1) Decision 3/2000 of 2 August 2000 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part [3], has adopted the terms and conditions for the participation of the Republic of Bulgaria in the second phase of the Leonardo da Vinci and Socrates programmes, and it applies for the duration of these programmes.

[3] OJ L248, 3.10.2000, p. 23.

(2) Annex II, point 2 of Decision 3/2000 provide that the financial contribution to be paid by Bulgaria to the budget of the European Union to participate in this programme in the years 2001 to 2006 will be decided by the Association Council in the course of the year 2000,

HAS DECIDED AS FOLLOWS:

Article 1

The financial contribution to be paid by Bulgaria to the budget of the European Union to participate in the Socrates II programme in the years 2001 to 2006 will be the following (in EUR):

>TABLE POSITION>

Article2

PHARE funds will be requested according to the following schedule :

- for the contribution to the Socrates II programme, the following yearly amounts (in EUR)

>TABLE POSITION>

The remaining part of the contribution of Bulgaria will be covered from the Bulgarian State budget.

Article 3

This Decision shall enter into force the day of its adoption by the Association Council.

Done at Brussels,

For the Association Council

The President

FINANCIAL STATEMENT

1. Title of operation

Participation of Bulgaria in Socrates in 2001-2006

2. Budget heading involved

B7-030 Economic aid to the associated countries of Central and Eastern Europe 6091 Revenue accruing from the participation of the associated countries of central Europe in Community programmes

3. Legal basis

Treaty establishing the European Community, and in particular Articles 149 and 150, in conjunction with Article 300(2) thereof ;

the Additional Protocol to the Europe Agreement with Bulgaria, providing for the participation in Community programmes ;

Decisions 3/2000 of 2 August 2000 of the Association Council between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, and in particular annex II thereof;

4. Description of operation

4.1 General objective

The Europe Agreement with Bulgaria provides for Bulgaria's participation in Community programmes in a wide range of areas, among which education.

Its participation will not only contribute towards the implementation of the provisions relating to economic and cultural cooperation in the Europe Agreement, but will also enable Bulgaria to familiarise itself with the procedures and methods used in Community programmes.

Bulgaria has been participating in the first phase of the Leonardo da Vinci and Socrates programmes since 1 April 1999. In line with the Commission communication "Agenda 2000" of 16.7.1997 and of the conclusions of the European Council in Luxemburg, Bulgaria's participation in these programmes has been part of the reinforced preaccession strategy which assist this country in its preparation for future accession to the Union.

The decision-making process for the opening-up of programmes involves a decision by the Association Council between the Union and Bulgaria. The decision of the Association Council establishing the participation of Bulgaria in the first generation of programmes in the field of training, education and youth has expired on 31 December 1999. Another Association Council decision has been adopted in 2000 to allow the Bulgarian participation to be carried on in the new generation of programmes, starting from 2000. This Association Council decision established the financial contribution of Bulgaria to Socrates for the year 2000, but not for the years 2001 to 2006.

A new Association Council decision is thus needed to complete the former one.

4.2 Period covered and arrangements for renewal

Until the end of the Community programme concerned, i.e. 31.12.2006.

5. Classification of expenditure or revenue

5.1 Non-compulsory expenditure

5.2 Differentiated appropriations

5.3 Type of revenue involved

Since Article 3 of the Additional Protocol to the Europe Agreement stipulates that Bulgaria itself will meet the costs resulting from its participation, it will be invited to pay a contribution for participating in the programme. As the same article states that the Community may supplement Bulgaria's contribution, Bulgaria will contribute only part from its national budget. The remaining part of its contribution will be taken from its PHARE National Programme. The required PHARE funds will be charged to heading B7-030, and transferred to Bulgaria by means of a separate Financing Memorandum. Together with the part coming from Bulgaria's State budget, these funds will constitute Bulgaria's national contribution, out of which it will make payments in response to annual calls for funds from the Commission. The total contribution, once paid by Bulgaria, will be transferred to item 6091 of the EU's budget receipts.

6. Type of expenditure or revenue

- 100% subsidy

- Subsidy for joint financing with other sources in the public and/or private sector

- No provision for all or part of the Community contribution to be reimbursed

- As far as revenue is concerned, provision for Bulgaria's contribution to cover the cost of its participation is made under item 6091. The revenue will be allocated to the items for expenditure on the programme in question and, where appropriate, to the relevant items of operating expenditure. The total revenue expected is given under item 7.4.

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

Based on the Europe Agreement with Bulgaria, the financial and budgetary arrangements for the programme concerned are as follows: the Bulgaria's contribution takes into account two elements :

- the foreseeable operational costs, which have been calculated on the basis of the programme budget, the country's estimated take-up capacity, and previous experience of its participation in the first phase of the Socrates programme,

- the foreseeable administrative costs, corresponding to the meetings and missions. These estimated administrative costs amount yearly to 50 000 EUR.

Bulgaria will use part of its national PHARE annual programme as a complement to its state budget to finance its contribution to the operational costs.

7.2 Itemised breakdown of cost (in EUR)

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7.3 Operational expenditure for studies, experts etc. included in Part B of the budget

p.m. : up to a maximum in proportion to the appropriations of that kind in the EUR 15 allocations for Socrates, but within the limits allowed by the part of the contribution which comes from the country's national budget.

7.4 Schedule of commitment and payment appropriations

Amounts to be charged to item B7-030

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The foreseeable annual receipts are as follows:

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8. Fraud prevention measures

All the Commission's contracts, agreements and other legal commitments provide for on-the-spot checks by the Commission and Court of Auditors. Among other things, the beneficiaries of the operations are obliged to file reports and financial statements. These are analysed from the point of view of their content and the eligibility of the expenditure in line with the objective of Community financing.

The anti-fraud provisions of the basic budget headings apply to this heading too when adapted to the case of the countries of Central Europe.

9. Elements of cost-effectiveness analysis

9.1 Specific and quantified objectives; target population

The essential aim of Community action on education is to enable all European citizens to achieve their full potential and to display initiative and creativity so that they can participate fully in society and in the building of Europe.

The target population comprises students, teachers, pupils, educational institutions, decision-makers in the field of educational policies.

9.2 Grounds for the operation

- Need for Community financial aid

In view of the high cost of participation in the programme and Bulgaria's precarious budgetary situation, assistance from PHARE is essential.

- Choice of ways and means

With a contribution from the national budget, supplemented by one from PHARE, Bulgaria's integration in the programme will allow its citizens to cooperate with their counterparts in the current EU Member States. The integration of Bulgarian nationals in Community networks will make a definite contribution to preparing Bulgaria for future membership

- Main factors of uncertainty which could affect the specific results of the operation

Since projects will be selected according to qualitative criteria, it will only be possible to measure the real impact on the basis of Bulgarian institutions' capacity to respond to the calls for proposal launched by the Commission under the programme.

9.3 Monitoring and evaluation of the operation

The monitoring and evaluation procedures included in the Socrates II programme (notably in respect of evaluation, as included in the decision establishing the programme) will also cover operations financed for Bulgarian beneficiaries.

10. Administrative expenditure (Section III, Part A of the budget)

Actual mobilization of the necessary administrative resources will depend on the Commission's annual decision on the allocation of resources, taking into account the number of staff and additional amounts authorized by the budgetary authority.

10.1 Effect on the number of posts

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10.2 Overall financial impact of the human resources

EUR

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(*) By using existing resources required to manage the operation (Calculation based on titles A1, A2, A4, A5 and A7)

10.3 Increase in other administrative expenditure as a result of the operation

EUR

>TABLE POSITION>

* 2 representatives in 8 committee and subcommittee meetings, and 1 representative in 3 subcommittee meetings

** 1 participant in 19 Socrates meetings

The above expenditure will be met from the receipts (article 4 par.2, third indent of the financial regulation) received from Bulgaria (see point 5.3 and 7.4 of the financial statement).