Proposal for a COUNCIL REGULATION on support to bodies set up by the international community after conflicts either to take charge of the interim civilian administration of certain regions or to implement peace agreements

(presented by the Commission)

EXPLANATORY MEMORANDUM

In some cases the political settlement of conflicts may involve the international community setting up bodies to be responsible for implementing aspects of the peace agreements or taking charge of the interim civilian administration of the regions concerned.

Such was the case with the appointment of a High Representative at the London Conference of 8 and 9 December 1995 for the implementation of the civilian aspects of the peace agreement for Bosnia-Herzegovina.

The European Union contributes to the implementation of the Bosnia-Herzegovina peace agreement in terms of the follow-up measures and by bearing some of the essential operating costs of the High Representative's mission in the context of equitable burden-sharing.

As regards Kosovo, the UN Security Council resolution of 10 June 1999 provided for an interim civil administration in Kosovo (UNMIK), headed by a Special Representative of the United Nations Secretary-General. The UN Secretary-General asked the EU to take the lead on Kosovo's economic reconstruction, rehabilitation and development.

The European Union is therefore responsible for setting up one of the "pillars" of UNMIK.

In the absence of a legal basis allowing the Community to contribute financially to the installation and operation of the bodies concerned, joint actions [1] have been adopted under the common foreign and security policy.

[1] Joint Action 95/545/CFSP of 11 December 1995 with regard to the participation of the Union in the implementing structures of the peace plan for Bosnia-Herzegovina, as last amended by Joint Action 99/844 of 17 December 1999.

A Community legal basis must therefore be laid down to cover the financing of such bodies and any set up by the international community in future which the Community might support.

This will allow the Community to respond rapidly if it has to provide support to these bodies following conflicts.

This proposal for a Council Regulation establishes the legal framework for the Community's financial contribution to the operation of such bodies, while at the same time ensuring transparency in the financing. The financing will be in the form of a grant.

The Commission will adopt financing decisions on the basis of this Regulation in accordance with the management procedure laid down in Article 4 of Council Decision 1999/468/EC of 29 June 1999.

Such decisions will be taken on the basis of a detailed budget of the bodies concerned.

The Commission will conclude financing agreements with these bodies on behalf of the Community. The financing agreements will relate to the amount of the grant, the eligible expenditure, the period covered, the implementing procedures and procedures for verifying the management and ultimate destination of the Community grant.

2000/0042 (CNS)

Proposal for a

COUNCIL REGULATION

on support to bodies set up by the international community after conflicts either to take charge of the interim civilian administration of certain regions or to implement peace agreements

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) To help resolve conflicts, the international community may set up bodies to take charge of the interim civilian administration of certain regions and implement peace agreements.

(2) The European Community must be able to play a full role in the establishment and operation of such bodies.

(3) A legal framework should be established to cover the Community's financial contribution to such bodies and ensure its transparency.

(4) Two such bodies have been set up, one in Kosovo and one in Bosnia-Herzegovina, respectively, the United Nations Interim Administration Mission in Kosovo (UNMIK) and the Office of the High Representative in Bosnia-Herzegovina (OHR).

(5) A legal basis should therefore be laid down to enable the Community to contribute to the operation of both bodies.

(6) The same legal basis should also be able to cover the Community's participation in the establishment and operation of similar bodies which may be set up in future by the international community, should the Community decide to support them.

(7) As the measures required to implement this Regulation constitute management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 29 June 1999 laying down the procedures for the exercise of the implementing powers conferred on the Commission, they must be adopted in accordance with the management procedure laid down in Article 4 thereof.

(8) The Treaty does not provide, for the adoption of this Regulation, powers other than those laid down in Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

1. The Community shall contribute financially to the establishment and operation of the bodies listed in the Annex, which have been set up by the international community following conflicts either to take charge of the interim civilian administration of certain regions or to implement peace agreements.

2. Amendments to the Annex shall be decided by the Council acting by a qualified majority on a proposal from the Commission.

Article 2

1. The financing shall be in the form of a grant to the budget of the bodies referred to in Article 1.

2. The financing decisions shall be adopted in accordance with the procedure laid down in Article 4(2).

Article 3

1. Operations covered by this Regulation and financed by the budget of the Communities shall be implemented by the Commission in conformity with the Financial Regulation applicable to the general budget of the European Communities.

2. The amount of the grant, the eligible expenditure, the period covered, the implementing procedures and procedures for verifying the management and ultimate destination of the Community grant shall be the subject of a financing agreement between the Commission, acting on behalf of the Community, and the recipient bodies.

Article 4

1. The Commission shall be assisted by a management committee composed of the representatives of the Member States and chaired by the representative of the Commission.

2. Where this paragraph is referred to, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply.

3. The period as provided for in Article 4(3) of Decision 1999/468/EC shall be one month.

Article 5

Financing decisions and any contracts or implementing instruments resulting therefrom shall expressly provide that the Commission or bodies authorised by the Commission, the Court of Auditors and the Anti-Fraud Office (OLAF) may carry out inspections on the spot, if necessary.

Article 6

This Regulation shall enter into force on the 20th day following its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, [...]

For the Council

The President

ANNEX

BODIES REFERRED TO IN ARTICLE 1 OF THIS REGULATION

United Nations Interim Administration Mission in Kosovo (UNMIK). The fourth pillar.

Office of the High Representative in Bosnia-Herzegovina (OHR).

FINANCIAL STATEMENT

1. TITLE OF OPERATION

Proposal for a Regulation on support to bodies set up by the international community following conflicts to take charge of the interim civilian administration of certain regions and implement peace agreements.

2. BUDGET HEADING(S) INVOLVED

Chapter B7-54, Article B7-547.

3. LEGAL BASIS

Article 308 of the Treaty establishing the European Community.

Attached proposal for a Regulation.

4. DESCRIPTION OF OPERATION

4.1 General objective

The Regulation will enable the Community to contribute financially to the establishment and operation of bodies set up by the international community following conflicts to take charge of the interim civilian administration of certain regions or implement peace agreements.

4.2 Period covered and arrangements for renewal

Indefinite: the Regulation will also apply to the financing of bodies which may be set up in future by the international community, should the Community decide to support them.

5. CLASSIFICATION OF EXPENDITURE

5.1 Non-compulsory expenditure

5.2 Differentiated appropriations

5.3 Type of revenue involved

None.

6. TYPE OF EXPENDITURE OR REVENUE

- 100% grant

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

- Should the operation prove an economic success, is there provision for all or part of the Community contribution to be reimbursed-: No

- Will the proposed operation cause any change in the level of revenue- No

7. FINANCIAL IMPACT

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

The international community has set up two bodies: the Office of the High Representative for Bosnia and UNMIK in Kosovo.

The OHR's budget for 2000 is about EUR 28 million. The Community's contribution is expected to be 53%.

The Community will provide the whole budget for the fourth pillar of UNMIK, i.e. EUR 12 million in 2000.

For 2000 only, part of the budgets concerned will be financed under this Regulation. Some of the financing for this financial year has already been approved under the CFSP.

Financing for the bodies concerned will be approved by the Commission in accordance with this Regulation. The decisions will be taken on the basis of a detailed budget.

The amount of the grant, the eligible expenditure, the period covered, the implementing procedures and procedures for verifying the management and ultimate destination of the Community grant will be the subject of an annual financing agreement between the Commission, acting on behalf of the Community, and the recipient bodies.

7.2 Itemised cost breakdown

Commitment appropriations EUR million (current prices)

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7.3 Operational expenditure of an administrative or technical nature falling within Part B of the budget (indicative amounts only; subject to change in the light of the budget procedure)

Not applicable

7.4 Schedule of commitment and payment appropriations

Commitment appropriations EUR million

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8. FRAUD PREVENTION MEASURES

- Specific checks planned

Financing decisions and any contracts or implementing instruments resulting therefrom shall expressly provide for the Commission or bodies authorised by the Commission, the Court of Auditors and the Anti-Fraud Office (OLAF) to carry out inspections on the spot, if necessary.

9. ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

9.1 Specific and quantified objectives; target population

The Community's financial contribution will enable the bodies referred to in this Regulation to fulfil their mandate. That mandate consists of carrying out interim tasks relating to the establishment, strengthening and operation of administrative structures in the regions concerned. In certain instances it also involves the implementation of peace agreements. The activities of these bodies are of vital importance for the stability of the regions concerned.

The work done by these bodies is of direct benefit to the people of the regions concerned: 3 million in Bosnia and 2 million in Kosovo.

9.2 Grounds for the operation

- The bodies covered by this Regulation help ensure peace and stability in certain regions in the post-conflict phase. The Community's contribution enables them to fulfil their mission in this respect.

- Choice of ways and means The Regulation specifies that the financial contribution will be in the form of a grant.

9.3 Monitoring and evaluation of the operation

In Bosnia-Herzegovina the operation will be managed by ECRO as a decentralised relief operation.

The Commission will undertake evaluation exercises under its powers of budgetary execution.

10. ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)

The actual mobilisation of administrative resources for the programme will depend on the Commission's annual decision on the allocation of resources, taking account of the additional personnel and amounts allowed by the budgetary authority.

Any extra requirements will not affect the decision the Commission will take with regard to:

- requests for posts;

- the allocation of resources.

10.1 Effect on the number of posts

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(1) (Part A)

10.2 Overall financial impact of the human resources

(EUR)

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10.3 Increase in other administrative expenditure as a result of the operation, in particular the costs of committee and expert group meetings

(EUR)

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(1) Management committee

The figures give the total cost of the posts for the entire duration of the project if it is of a fixed duration or for 12 months if it is of unlimited duration.