14. Commission reform: budgetary aspects
A5-0327/2000
European Parliament resolution on the Commission White Paper on reforming the Commission
(aspects concerning the Committee on Budgets) (COM(2000) 200 /dash C5-0447/2000 /dash 2000/
2217(COS))
The European Parliament,
wdash having regard to the White Paper on reforming the Commission COM(2000) 200 wdash C5-0447/2000),
wdash having regard to the EC Treaty and, in particular, Article 274 thereof,wdash having regard to Letter of Amendment No 1/2001 to the preliminary draft budget for 200 (12071/
2000 wdash C5-0518/2000),
wdash having regard to the Interinstitutional Agreement of 6 May 1999 between the European Parliament,
the Council and the Commission on budgetary discipline and improvement of the budgetary proce-dure(
1),
wdash having regard to the first and second reports of the Committee of Independent Experts, Volumes. I
and II: analysis of current practice and proposals for tackling mismanagement, irregularities and fraud,
wdash having regard to its resolution of 23 March 1999 on the Commission working document on the
recasting of the Financial Regulation(SEC(1998) 1228 wdash C4-0689/1998)(2),
wdash having regard to its resolution of 19 January 2000 containing its observations on the action to be
taken on the second report of the Committee of Independent Experts on reform of the Commission(3),
wdash having regard to Rule 47(1) of its Rules of Procedure,
wdash having regard to its other resolutions of 30 November 2000 on the White Paper on reforming the
Commission(4),
wdash having regard to the report of the Committee on Budgets (A5-0327/2000),
A. whereas a large number of operational failures and mismanagement were at the root of the resigna-
tion of the Commission in March 1999, and whereas there is a need to restore public confidence inthe European institutions,
B. whereas it is for all the institutions to participate actively in the reform of the Commission, within the
limits of the powers and responsibilities conferred upon each of them by the EC Treaty,
C. whereas, under the terms of Article 274 of the EC Treaty, the Commission implements the budget on
its own responsibility, and whereas, therefore, it must allocate its resources in such a way as to servethe political priorities established by Parliament and the Council as the budgetary authority,
D. whereas, over recent years and in the wake of the problems encountered in programme implementa-
tion, with particular regard to external programmes, Parliament has called on the Commission toundertake a comprehensive review of its human resources with a view to enabling the budgetaryauthority to identify the reasons for late payments and to ascertain whether any additional resources
were required,
E. whereas the financial perspective for the period 2000-2006 imposes ceilings on each category of
expenditure,
F. whereas the reform of the Commission will entail a large number of specific legislative and budgetary
decisions on which Parliament will take a position on a case-by-case basis in accordance with currentprocedures,
(1) OJ C 172, 18.6.1999, p. 1.
(2) OJ C 177, 22.6.1999, p. 15.
(3) OJ C 304, 24.10.2000, p. 135.
(4) ‘Texts Adopted’, Items 15, 16 and 17.C 228/196 EN 13.8.2001 Official Journal of the European Communities
Thursday 30 November 2000
G. whereas consultation of Parliament on the White Paper should therefore provide an opportunity for
the establishment of principles which must not in any way encroach on the Commission’s indepen-dence as regards its internal organisation but, on the contrary, should enable it to carry out its rolesuccessfully within the institutional balance established by the Treaties,
Chapter II /dash A culture based on service
1. Notes the direct impact that a more efficiently organised Commission cannot fail to have, not only as
a result of the optimum use of human resources but also because of the effect on the implementation ofappropriations;
2. Takes the view that Parliament has a specific responsibility towards the citizens of the European
Union, must stand as guarantor for the proper functioning of the European public service and, as onearm of the budgetary authority, must ensure that public monies made available to the European Unionare properly used and that the use thereof reflects its political priorities in the expenditure that it
authorises;
3. Reiterates its intention of giving firm backing to the Commission in its efforts to reform and to
modernise its operations in strict compliance with the institutional balance established by the Treaties;
4. Takes the view that the reform must not be restricted to the attainment of a mathematical balance
between tasks and resources, nor to mere cosmetic changes to procedures, but that it must contribute tothe consolidation of the process of European integration by means of an in-depth reorganisation of struc-tures and methods so that the Commission fully assumes its responsibilities, with particular regard tomanagement, and can ensure optimum use of financial resources allocated to it by the budgetary authority;
5. Supports the efforts being made to develop a new culture geared to results and performance criteria,
provided that culture takes into account the difficulties involved in certain tasks where the cost-benefitratio may be high but which are required for the fulfilment of certain political priorities;
6. Takes the view that decentralisation and delegation of authority are essential tools in a modern and
efficient administration which entrusts responsibility to its staff, provided that power of decision and ofsupervision are guaranteed both inside and outside the institution;
7. Recalls that the human and financial resources made available to the Commission for informing
citizens and communicating with them are provided by the Union and that they must be used to delivera common message which reflects its political priorities; believes that information policy must be pursuedon an interinstitutional basis;
8. Calls for the reform to be used as an opportunity to improve the Union’s efficiency in programme
implementation:
wdash in the case of subsidies granted to direct beneficiaries whose projects have been selected on the basis
of criteria established by the legislative and budgetary authority, by the payment of instalmentsdirectly after selection of the projects, accompanied by internal and external supervision to ensurethat the funds have been properly used,
wdash in the case of external programmes, by the fixing of realistic objectives which seek to clear the backlog
and to restore balance in the ratio between commitments and payments, by the adoption of measureswhich enable contracts in force to be suspended, should political priorities have changed, and byconsistency between political commitments, legal conditions and on-the-spot feasibility;
9. Welcomes the various codes of conduct established as part of the reform; regrets that Parliament
could not give its views before their entry into force;
10. Emphasises that the sole objectives of such codes of conduct must be to translate principles com-
mon to all the institutions so as to strengthen the consistency and the specific nature of the Europeanpublic service, to increase the transparency of the consultation and interinstitutional decision-making pro-cess and, finally, to restore the confidence of the staff and of the general public in the European institu-tions, without impeding the smooth running of the Commission;13.8.2001 EN C 228/197 Official Journal of the European Communities
Thursday 30 November 2000
Chapter III /dash Priority-setting, allocation and efficient use of resources
Activity-based budgeting
11. Notes the Commission’s determination gradually to introduce a new budgetary nomenclature
through the establishment of activity-based budgeting (ABB);
12. Welcomes every effort seeking to improve transparency of management and of evaluation as well as
the principle of changes to the current nomenclature with a view to making visible the cost and perfor-mance of Community policies;
13. Stresses that establishing activity-based budgeting must not involve any increase in rigidity in the
allocation of human resources by the Commission’s services and should allow, where necessary, new tasksto be assumed and carried out;
14. Points out that, on many occasions during previous budgetary procedures, it has objected forcefully
to the Commission’s misuse of the current nomenclature, with administrative expenditure being charged tooperating appropriations (mini-budgets, TAOs) and has sought to restore transparency by means of ceil-ings or remarks which enable expenditure to be identified according to its nature in the context of theintended purpose;
15. Draws the Commission’s attention, nevertheless, to the risks of confusion that might arise from a
one-size-fits-all approach in which the powers of the budgetary authority as regards the allocation of
administrative appropriations would be reduced as a result of the specific presentation of expenditure byintended purpose, since that would entail a loss of visibility of the nature of the expenditure; is totallyopposed to the introduction of a system which would not guarantee either the transparency of the analysisor its powers of decision on the allocation of human and administrative resources; is nevertheless preparedto consider ABB in parallel to the current nomenclature and as a part of a future, wider system of definingobjectives, priorities and performances (ABM);
16. Emphasises that the total replacement of the current nomenclature by the ABB method would
entail, on the one hand, prior amendment of Article 19 of the Financial Regulation, which establishesthe distinction between Part A (administrative appropriations) and Part B (operating appropriations), and,in the long run, the abolition of heading 5 of the financial perspective which covers the institutions’administrative expenditure; points out that such decisions require the agreement of the budgetary authorityand of the other institutions;
17. Recalls, finally, that, while Article 274 confers on the Commission the power to implement the
budget on its own responsibility, it is not empowered to change the institutional balance; urges the Com-mission not to undermine, by setting its own priorities, the political priorities set out by Parliament andCouncil as the budgetary authority; instructs its committee responsible to monitor closely this part of thereform on an interinstitutional basis;
Externalisation and commitology
18. Welcomes the decisions on externalisation taken by the Commission set out in Letter of Amend-
ment No 1/2001; notes that they respond to the requirements of:
wdash Parliament, which, after deploring the failures of the mini-budgets and the TAOs, proposed solutions
which were radical as regards the principles to be adhered to and balanced as regards the proceduresfor their implementation, since it was concerned not to impede the current Commission, which isalready facing problems because of the resignation of the previous Commission, in the managementof its programmes,
wdash the Commission, whose authority in the exercise of its implementing powers and its power to repre-
sent the public authority has been strengthened,
wdash the management of Community policies, where improvements should become apparent in terms of
their efficiency, transparency and cost;
19. Approves, therefore, the findings set out in the report drawn up by the Planning and Coordination
Group, the conceptual bases of which were largely inspired by Parliament: delegation of responsibilities toCommunity-based public implementing agencies and outsourcing to the private sector limited strictly toimplementing tasks without any public authority dimension in the form of one-off contracts for the provi-sion of services;C 228/198 EN 13.8.2001 Official Journal of the European Communities
Thursday 30 November 2000
20. Takes the view that responsibility for the financial management of Community programmes lies
solely with the Commission and that, accordingly, committees consisting of representatives of the MemberStates should have no power of decision as regards management so as to ensure that national interests atodds with the principle of subsidiarity may not intervene;
21. Warns the Commission about the risks of confusion of responsibilities which certain forms of
decentralisation would involve for mixed public bodies, both national and Community, and points outthat the planning and verification of the implementation of decentralised tasks must remain exclusivelywithin the remit of the Commission, which must assume total responsibility for these, with monitoringbeing carried out by Parliament and the Court of Auditors; expects the Commission to adhere to the time-table for the dismantling of the TAOs and to submit without delay a proposal for a legal framework forthe creation of Community implementing agencies in order to reduce the transitional period to a mini-mum;
22. Believes, in this connection, that resumption of the monitoring of the process for externalising tasks
constitutes an essential element in strengthening the Commission’s executive role within the meaning ofArticle 274 of the EC Treaty; takes the view that the process of resuming control of implementation mustbe continued, in particular via a reform of the commitology procedure;
23. Calls on the Commission to refrain in future from including intervention by management and reg-
ulatory committees in its legislative proposals whenever those proposals refer to expenditure programmes;
Chapter IV /dash Human resources
24. Notes that, while the second report of the Committee of Independent Experts found that the imbal-
ance between the human resources available to the Commission and the new tasks entrusted to it over thelast ten years constituted a major obstacle to its efficient operation, and while the Members of both theprevious and the present Commission broadly acknowledged the truth of that finding, the Commission hasnever undertaken a wide-ranging consideration of policy nor submitted to the budgetary authority a com-prehensive request based on an evaluation of existing and new tasks and of the challenges ahead, such asenlargement, and is satisfied with tabling a report with a request for an increase in staff appropriationsaccompanied by a tentative list of activities to be discontinued or reduced wdash such as LIFE, SAVE andAltener wdash if this request is not agreed to;
25. Recalls that, well before the launch of the reform, and with a view to the negotiations concerning
the new financial perspective (2000-2006), Parliament had called on all the institutions, including theCommission, to submit an assessment of their human resources requirements;
26. Notes Letter of Amendment No 1/2001, which sets out a proposal for the additional expenditure
arising from the reform, and takes the view that it should in principle be considered in connection with
the 2001 budget;
27. Notes that the Letter of Amendment does not require any changes to the financial perspective but
that the additional appropriations requested will account for a large proportion of the surplus below theceiling for heading 5, in particular in 2002/2003; is concerned at the financing requirements of the otherinstitutions which may arise during the period or the funding of other new expenditure; notes that thetotal cost of the Letter of Amendment amounts to an additional €540 million over the period covered by
the financial perspective;
28. Supports the internal attempts envisaged to redeploy staff and improve productivity; regrets, how-
ever, that redeployment measures will affect no more than 4% of the staff and asks the Commission toexplain to Parliament the criteria selected for the abandonment or reduction in the scale of certain activ-ities;
29. Takes the view that, with a view to budgetary rigour and in order to optimise career development
opportunities, new officials in all categories should preferably be recruited in the basic grade; considers,furthermore, that the importance of management training must be duly emphasised when job specifica-tions are drawn up; stresses the need to achieve adequate specialisation in the Commission’s external ser-vices; believes that career plans should be updated;13.8.2001 EN C 228/199 Official Journal of the European Communities
Thursday 30 November 2000
30. Is prepared to consider in connection with the 2001 budgetary procedure the procedures for a
proposal concerning early retirement and is confident that such a measure could be implemented, giventhe provisions of the Staff Regulations of Officials; reiterates that early retirement measures should on noaccount be allowed to obscure the main priorities of the reform;
31. Calls on the Commission to clarify to what extent the increase in staff, requested in Letter of
Amendment No 1/2001, is in anticipation of additional staffing requirements as a result of enlargement;points out that a decision on the request for an increase in staff in 2002 will depend on the impact thatthe additional posts granted in 2001 have on the implementation of programmes and payment of appro-priations;
32. Calls for this issue to be entered on the agenda for the next trialogue meeting so that the budgetary
authority may:
wdash negotiate as to the principle,wdash assess the budgetary implications, andwdash take a joint decision on the appropriations required;
Chapter V /dash Audit, financial management and control
Financial Regulation
33. Recalls its position of 5 October 2000(
1) on the fast-track proposal concerning the future arrange-
ments for financial control in the institutions; takes the view that the quality of ex ante financial controlmust be guaranteed; emphasises the need to ensure appropriate independence for financial control dele-gated to the various directorates-general of the Commission;
34. Regards it as illogical that changes made to the Financial Regulation governing procedures for the
drawing up and implementation of the budget are determined by just one of the two arms of the budget-ary and legislative authority wdash the Council wdash after simple consultation of the other arm wdash Parliament;repeats the request it drew up for submission to the IGC so that the codecision procedure may henceforthbe applicable to this area and declares its political intention to introduce the requisite legal changes rightaway;
35. Urges the Commission to take into account its specific requests expressed on many occasions, most
recently in its aforementioned resolution of 23 March 1999, and, in particular:
wdash the possibility of suspending appropriations during a financial year, should implementation prove
difficult or performance be poor,
wdash the strengthening of the primacy in law of the Financial Regulation over internal implementing pro-
cedures,
wdash improvement of the information supplied to Parliament about implementing conditions under the
budgetary and discharge procedures,
wdash harmonisation of current provisions governing the decentralised agencies, and total inclusion of their
budgets and their establishment plans in the general budget;
Decentralisation of management and rationalisation of structures
36. Is prepared to take into account, in the budget and within the limits of the resources available, the
additional cost arising from the reform with a view to improving the efficiency and transparency of man-agement and, in particular, the impact on the budget of the internalisation of some tasks previously dele-gated and of the decentralisation of financial and control units and, finally, the strengthening of the role ofexternal delegations in programme management;
37. Supports more decentralised management on condition that the Commission undertakes to struc-
ture the chain of delegation of authority in such a way that responsibility is always identifiable at thetechnical and political levels and that the posts required are found initially through redeployment andonly subsequently through the creation of new posts;
(1) ‘Texts Adopted,’ Item 5.C 228/200 EN 13.8.2001 Official Journal of the European Communities
Thursday 30 November 2000
38. Welcomes the efforts made to improve the Union’s external representation by means of the restruc-
turing of the delegations; takes the view, however, that those efforts are inadequate and must be continuedalong the lines put forward by Parliament, with particular regard to regionalisation and horizontal rede-ployment in relation to the scale of the funds allocated to the programmes;
*
**
39. Instructs its President to forward this resolution to the Commission, the Council and the govern-
ments of the Member States.
15. Commission reform: budgetary control aspects
A5-0329/2000
European Parliament resolution on the Commission White Paper on reforming the Commission
(aspects concerning the Committee on Budgetary Control) (COM(2000) 200 /dash C5-0445/2000 /dash
2000/2215(COS))
The European Parliament,
wdash having regard to the White Paper on reforming the Commission (COM(2000) 200 wdash C5-0445/2000),wdash having regard to the EC Treaty and, in particular, Article 274 thereof,wdash having regard to its resolution of 19 January 2000 containing its observations on action to be taken
on the second report of the Committee of Independent Experts on the reform of the Commission(
1),
wdash having regard to Rule 47(1) of its Rules of Procedure,
wdash having regard to its other resolution of 30 November 2000 on the White Paper(2),
wdash having regard to the report of the Committee on Budgetary Control (A5-0329/2000),
A. whereas it is vital that the current Commission comply with the undertakings it gave Parliament dur-
ing and after its investiture concerning the fundamental principles of transparency, efficiency andaccountability, as well as the administrative reform process,
B. whereas the proposals contained in the White Paper are to a large extent drawn from the second
report of the Committee on Independent Experts, which Parliament has already welcomed in para-graph 1 of its abovementioned resolution of 19 January 2000,
C. whereas, by virtue of the principle that the Union institutions should enjoy autonomy in determining
their internal organisation, it is the Commission’s responsibility to equip itself with the optimumorganisational structure and operating methods so as to fulfil to the best of its ability the tasksassigned to it by the Treaties, and whereas Parliament makes a positive contribution to this,
D. whereas, however, by virtue of the powers and responsibilities conferred on it by the Treaties, Parlia-
ment has to exercise control over the Commission on the basis of the results of all the latter’s activ-
ities, including the implementation of the EU budget,
E. whereas the events which dominated the discharge procedure for 1996 were caused in part by the
failure of previous Commissions to modernise management and control systems and by their failure toapply fully the existing set of rules,
(1) OJ C 304, 24.10.2000, p. 135.
(2) ‘Texts adopted’, Items 14, 16 and 17.13.8.2001 EN C 228/201 Official Journal of the European Communities
Thursday 30 November 2000