EN    EN  
EN    EN  EUROPEAN COMMISSION 
Brussels, 24.3.2010 
SEC(2010) 257 
  
COMMISSION STAFF WORKING DOCUMENT  
 
CHANGES REQUIRED IN THE IM PLEMENTING RULES OF THE 
FINANCIAL REGULATION AS REGARDS THE EUROPEAN EXTERNAL 
ACTION SERVICE 
accompanying the 
  
Proposal for a 
 
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 
 
amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation 
applicable to the general budget of the Eu ropean Union, as regards the European 
external action service 
{COM(2010) 85 final} 
EN 2   EN  
Introduction  
The present document, which is not a formal proposal, presents the changes which would be 
required to the Implementing Rules (IR) of the Financial Regulation (FR) to accommodate for 
the creation of the European External Action Service (EEAS). These changes are coherent 
and complementary to the Commission proposal amending the FR itself for the creation of 
EEAS. 
For procedural reasons, the Commission will make  its formal proposal for amending the IR, 
which is a Commission Regulation, at a later st age. However, since the provisions of the FR 
and IR are linked, and taking into  account the traditional close cooperation with the European 
Parliament, the Council and the Court of Aud itors on the IR, the Commission considers that 
the changes envisaged should be made availbale for information at least. This should allow 
the concerned institutions to have a complete overview of the consequences of the creation of 
the EEAS on the financial rules. 
Main changes required for the creation of the EEAS in the Implementing Rules  
 The Commission proposal amending the FR fo resees a derogation from current rules 
of delegation (Article 51 FR), which aut horises the Commission to sub-delegate its 
powers of budget implementation of operatio nal expenditure to Heads of Union 
Delegations, who belong to another Institution in the sense of Article 1 FR (EEAS).  
 As a consequence of such derogation, sp ecific provisions in the FR set out the 
respective duties and obligations of Heads of Union Delegations, when they act as authorising officers by sub-delegation of the Commission. These specific provisions 
also have an impact on the corresponding provisions of the IR, in particular:  
- the rules preventing conflicts of interests; - the Internal Rules of the Commissi on for the execution of the Budget;  
- the code of professional standa rds adopted by the Commission;  
- the panel of irregulari ties of the Commission; 
Moreover, in order to avoid disrupting the functioning of Delegati ons or the Commission 
services when EEAS is put in place, specific provi sions should be proposed to ease daily 
management issues such as the rules appli cable to imprest accounts or the composition of 
evaluation committees for grant applications.  
The changes envisaged are show n in the table in Annex. They  are indicative and do not pre-
empt the changes which will be finally proposed by the Commission. 
 
EN 3   EN ANNEX – INDICATIVE TABLE ON THE CHANGES REQUIRED IN THE IMPLEMENTING RULES FOR THE CREATION OF THE EEAS 
 
COMMISSION REGULATION 2342/ 2002 CHANGES NECESSARY TO 
ACCOMMODATE THE CREATION OF 
THE EUROPEAN EXTERNAL ACTION 
SERVICE COMMENTS 
CHAPTER 3 
Financial actors CHAPTER 3 
Financial actors  
SECTION 1 
RIGHTS AND OBLIGATIONS OF THE 
FINANCIAL ACTORS  SECTION 1 
RIGHTS AND OBLIGATIONS OF THE 
FINANCIAL ACTORS   
Article 44 
Rights and obligations of the financial actors 
(Article 58 of the Financial Regulation) Article 44 
Rights and obligations of the financial actors 
(Article 58 of the Financial Regulation)  
Each institution shall provide each financial actor 
with the resources requir ed to perform his duties 
and a charter describing in  detail his tasks, rights 
and obligations. 1. Each institution shall provide each 
financial actor with the resources required to perform his duties and a charter describing in 
detail his tasks, rights and obligations. 
2.
  Heads of Union Delegations acting as 
authorising officers by sub-delegation in  
  Modification which provides that Heads of 
Delegations need to sign the charter of the 
 
EN 4   EN accordance with the second paragraph of 
Article 51 of the Financia l Regulation shall be 
submitted to the Charter provided by the 
Commission for the implementation of the 
financial management tasks subdelegated to 
them.  Commission for sub-delegated authorising 
officers (AOSDs), when they act as AOSDs of the Commission. 
 
SECTION 2 
AUTHORISING OFFICER  SECTION 2 
AUTHORISING OFFICER   
Article 45 
Assistance for authorising officers by delegation 
and subdelegation 
(Article 59 of the Financial Regulation) Article 45 
Assistance for authorising officers by delegation 
and subdelegation 
(Article 59 of the Financial Regulation)  
1. The authorising officer responsible may be 
assisted in his duties by persons covered by the Staff Regulation (hereinaft er «staff») entrusted, 
under his responsibility, with certain operations required for the implemen tation of the budget and 
production of the financial and management information. In order to prevent any conflict of 
interests, staff assisting authorising officers by delegation or subdelegation shall be subject to the 
obligations referred to in Article 52 of the Financial Regulation. 1. The authorising officer responsible may be 
assisted in his duties by persons covered by the Staff Regulation (hereina fter «staff») entrusted, 
under his responsibility, with certain operations 
required for the implementation of the budget and production of the financial and management information. In order to prevent any conflict of 
interests, staff assisting authorising officers by delegation or subdelegation shall be subject to the 
obligations referred to in Article 52 of the Financial Regulation. . 
 1a.  Heads of Union Delegations acting as 
authorising officers by subdelegation in 
accordance with the second paragraph of In line with the Commission proposal on the 
FR, financial circuits in Delegations should remain homogeneous and under the same 
 
EN 5   EN Article 51 of the Financial Regulation may be 
assisted in their duties by Staff of the 
Commission . line of responsibility. Therefore, only 
Commission Staff in De legations may assist 
the Head of Delegation when he acts as AOSD of the Commission. 
2. Each institution shall inform the budgetary authority whenever an authorising officer by delegation takes up his du ties, changes duties or 
terminates his duties. 2. Each institution shall inform the budgetary 
authority whenever an authorising officer by delegation takes up his du ties, changes duties or 
terminates his duties.  
Article 46 
Internal provisions governing delegations 
(Article 59 of the Financial Regulation) Article 46 
Internal provisions governing delegations 
(Article 59 of the Financial Regulation)  
In accordance with the Financial Regulation and 
this Regulation, each institution shall lay down in its internal rules such measures for the management of appropria tions as it considers 
necessary for proper implem entation of its section 
of the budget. 1.  In accordance with the Financial 
Regulation and this Regulation, each institution shall lay down in its internal rules such measures for the management of appropriations as it considers necessary for proper implementation of 
its section of the budget.  
 2.  Heads of Union Delegations acting as 
authorising officers by subdelegation in 
accordance with the second paragraph of 
Article 51 of the Financial Regulation,  shall be 
submitted to the Internal Rules of the 
Commission for the implementation of the 
financial management tasks subdelegated to 
them.  Modification which provides that Heads of 
Delegations need to respect the Internal Rules of the Commission when they act as AOSDs of the Commission. 
 
EN 6   EN Article 50 
Code of professional standards 
(Article 60(5) of the Financial Regulation) Article 50 
Code of professional standards 
(Article 60(5) of the Financial Regulation)  
1. The staff designated by the authorising 
officer responsible to verify financial operations shall be chosen on the grounds of their knowledge, skills and particul ar qualifications as 
evidenced by diplomas or by appropriate 
professional experience, or  after an appropriate 
training programme. 1. The staff designated by the authorising 
officer responsible to ve rify financial operations 
shall be chosen on the grounds of their knowledge, skills and particul ar qualifications as 
evidenced by diplomas or by appropriate 
professional experience, or  after an appropriate 
training programme.  
2. Each institution shall draw up a code of 
professional standards which determine, on matters of internal control: 2. Each institution shall draw up a code of 
professional standards which determine, on matters of internal control:  
(a) the level of technical and financial 
competence required of the staff referred to in paragraph 1; (a) the level of technical and financial 
competence required of the staff referred to in paragraph 1;  
(b) the obligation for such staff to undergo 
continuing training; (b) the obligation for such staff to undergo 
continuing training;  
(c) the mission, role and tasks allocated to 
them; (c) the mission, role and tasks allocated to 
them;  
(d)  the rules of conduct, in particular the 
standards of ethics and integrity that they must comply with and the rights they enjoy. (d)  the rules of conduc t, in particular the 
standards of ethics and in tegrity that they must 
comply with and the rights they enjoy.  
 
EN 7   EN  2a.  Heads of Union Delegations acting as 
authorising officers by subdelegation in 
accordance with the second paragraph of 
Article 51 of the Financia l Regulation shall be 
submitted to the Commission code of 
professional standards referred to in 
paragraph 2 of this Article for the 
implementation of the financial management 
tasks subdelegated to them.  Modification which provides that Heads of 
Delegations need to respect the Commission code of professional standards when they act as AOSDs of the Commission. 
3. Each institution shall put in place the appropriate structures to distribute to authorising 
departments and update pe riodically appropriate 
information concerning the control standards and the methods and techniques available for that purpose. 3. Each institution shall put in place the 
appropriate structures to distribute to authorising 
departments and update pe riodically appropriate 
information concerning the control standards and the methods and techniques available for that purpose.  
SECTION 4 
IMPREST ADMINISTRATOR  SECTION 4 
IMPREST ADMINISTRATOR   
Article 66 
Conditions of use of imprest accounts 
(Article 63 of the Financial Regulation) Article 66 
Conditions of use of imprest accounts 
(Article 63 of the Financial Regulation)  
1. Where, owing to the limited amounts 
involved, it is materially  impossible or inefficient 
to carry out payment operations by budgetary procedures, imprest accounts may be set up for the payment of such expenditure. 1. Where, owing to the limited amounts 
involved, it is materially impossible or inefficient to carry out payment operations by budgetary procedures, imprest accounts may be set up for the payment of such expenditure.  
 
EN 8   EN 2. The imprest administrator may 
provisionally validate and pay expenditure, on the basis of a detailed framework set out in the instructions from the authorising officer responsible. Those instructions shall specify the rules and conditions under  which the provisional 
validation and payments sh all be carried out and, 
where appropriate, the te rms for signing legal 
commitments within the meaning of Article 
94(1)(e). 2. The imprest administrator may 
provisionally validate and pay expenditure, on the basis of a detailed framework set out in the instructions from the authorising officer responsible. Those instruct ions shall specify the 
rules and conditions under  which the provisional 
validation and payments sh all be carried out and, 
where appropriate, the terms for signing legal commitments within the meaning of Article 
94(1)(e).  
3. The creation of an imprest account and the 
appointment of an imprest administrator shall be the subject of a decision by the accounting officer, 
on a duly substantiated proposal from the authorising officer responsi ble. That decision shall 
set out the respective responsibilities and obligations of the impres t administrator and the 
authorising officer. 3. The creation of an imprest account and the 
appointment of an impres t administrator shall be 
the subject of a decision by the accounting officer, on a duly substantiated proposal from the authorising officer responsi ble. That decision shall 
set out the respective  responsibilities and 
obligations of the impres t administrator and the 
authorising officer.  
Amendment of the operating terms for an imprest 
account shall also be the s ubject of a decision by 
the accounting officer on a duly substantiated proposal from the authoris ing officer responsible. Amendment of the operating terms for an imprest 
account shall also be the subject of a decision by the accounting officer on a duly substantiated proposal from the authoris ing officer responsible.  
 4.  In Union Delegations, imprest accounts 
shall be set up for the payment of expenditure 
from both the Commission section of the 
Budget and the EEAS section of the Budget.  For reasons of efficiency, only one imprest 
account should be set up in Delegations, even if it should concern ap propriations from both 
the Commission and EEAS sections of the Budget. 
 
EN 9   EN Article 75 
Financial irregularities panel 
(Articles 60(6) and 66(4) of the Financial 
Regulation) Article 75 
Financial irregularities panel 
(Articles 60(6) and 66(4) of the Financial 
Regulation)  
1. Cases of financial irregularities as referred 
to in Article 74 of this Regulation shall be referred to the Panel by the appointing authority for an opinion referred to in th e second subparagraph of 
Article 66(4) of the Financial Regulation. 1. Cases of financial irre gularities as referred 
to in Article 74 of this Regulation shall be referred to the Panel by the appointing authority for an opinion referred to in th e second subparagraph of 
Article 66(4) of the Financial Regulation. 
Where Heads of Union Delegations act as 
authorising officers by subdelegation in 
accordance with the second paragraph of 
Article 51 of the Financial Regulation, the 
responsible authorising officer may refer 
directly to the Panel for an opinion on cases of 
financial irregularities as referred to in Article 
74 of this Regulation.   
  The Appointing Author ity for Heads of 
Delegations is the High Representative for Foreign Affairs. Thus, a specific provision is required to provide for the possibility that the AO (i.e. Directors-Generals of the Commission) can directly refer to the Panel of irregularities on cases which might concern Heads of Delegations when they act as AOSDs of the Commission. 
 
An authorising officer by delegation may refer a 
matter to the panel if he considers that a financial irregularity has occurre d. The Panel shall deliver 
an opinion evaluating whethe r irregularities within 
the meaning of Article 74 have occurred, how serious they are and what their consequences might be. Where the Panel' s analysis suggests that 
the case referred to it is a matter for OLAF, it An authorising officer by delegation may refer a 
matter to the panel if he considers that a financial irregularity has occurred. The Panel shall deliver an opinion evaluating wh ether irregularities 
within the meaning of Ar ticle 74 have occurred, 
how serious they are and what their consequences might be. Where the Panel' s analysis suggests that 
the case referred to it is a matter for OLAF, it  
 
EN 10   EN shall transmit the file to the appointing authority 
without delay and shall inform OLAF at once. shall transmit the file to the appointing authority 
without delay and shall inform OLAF at once. 
When the panel is directly  informed of a matter by 
a member of staff in accordance with Article 
60(6) of the Financial Re gulation, it shall transmit 
the file to the appointing authority and shall inform the member of staff accordingly. The appointing authority ma y request the panel’s 
opinion on the case. When the panel is directly informed of a matter by 
a member of staff in accordance with Article 60(6) of the Financial Re gulation, it shall transmit 
the file to the appointing authority and shall inform the member of staff accordingly. The appointing authority ma y request the panel’s 
opinion on the case.  
2. The institution or, in the case of a joint 
panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition,  which shall include an external participant with the required qualifications and expertise. 2. The institution or, in the case of a joint 
panel, the participating institutions shall, depending on its or their own internal organisation, specify the operating arrangements of the panel and its composition,  which shall include an external participant with the required qualifications and expertise.  
Article 178 
Evaluation of applications and award 
(Article 116 of the Financial Regulation) Article 178 
Evaluation of applications and award 
(Article 116 of the Financial Regulation)  
1. The authorising officer responsible shall 
appoint a committee to evaluate the proposals, unless the Commission deci des otherwise in the 
framework of a specific sectoral programme. The authorising officer may appoint such a committee before the final date for the submission of proposals provided for in point (d) of Article 167. 1. The authorising officer responsible shall 
appoint a committee to evaluate the proposals, unless the Commission deci des otherwise in the 
framework of a specific sectoral programme. The authorising officer may appoint such a committee 
before the final date for the submission of proposals provided for in point (d) of Article 167.  
 
EN 11   EN The committee shall be made up of at least three 
persons representing at least two organisational entities of the Commission with no hierarchical link between them. To avoid any conflict of 
interests, those persons shall be subject to the obligations laid down in Article 52 of the Financial Regulation. The committee shall be made up of at least three 
persons representing at least two organisational entities either 
of the Commission or any staff of 
any other institution involved in the 
management of the budget with no hierarchical 
link between them. To avoid any conflict of interests, those persons shall be subject to the obligations laid down in Article 52 of the 
Financial Regulation. This change aims at allowing staff in 
Delegations to participate in evaluation committees for grants. This corresponds to current practice and should be maintained once the EEAS is created. 
In the representations and local units referred to in Article 254 and the delegate d bodies referred to in 
Article 160(1), if there are no separate entities, the requirement of organisational entities with no hierarchical link between them shall not apply. In the representations and local units referred to in 
Article 254 and the delegate d bodies referred to in 
Article 160(1), if there are no separate entities, the 
requirement of organisational entities with no hierarchical link between them shall not apply.  
Outside experts may assist the committee by 
decision of the authorising officer responsible. Outside experts may assist the committee by 
decision of the authorising officer responsible.  
1a. The authorising officer responsible shall, 
where appropriate, divide the process into several procedural stages. The rules governing the process shall be announced in the call for proposals. 1a. The authorising officer responsible shall, 
where appropriate, divide the process into several procedural stages. The rules governing the process shall be announced in the call for proposals.  
Where a call for proposals specifies a two-stage 
submission procedure, only those applicants whose proposals satisfy the evaluation criteria for the first stage shall be requested to submit a complete proposal in the second stage. Where a call for proposals specifies a two-stage 
submission procedure, only those applicants whose proposals satisfy th e evaluation criteria for 
the first stage shall be requested to submit a complete proposal in the second stage.  
Where a call for proposals specifies a two-stage 
evaluation procedure, onl y those proposals that Where a call for proposals specifies a two-stage 
evaluation procedure, only those proposals that  
 
EN 12   EN pass the first stage, based on the evaluation 
against a limited set of criteria, shall go forward for further evaluation. pass the first stage, based on the evaluation 
against a limited set of criteria, shall go forward for further evaluation. 
The applicants whose proposals are rejected at any stage shall be informed in accordance with Article 116 (3) of the Financial Regulation. The applicants whose proposals are rejected at 
any stage shall be informed in accordance with Article 116 (3) of the Financial Regulation.  
Each subsequent stage of  the procedure must be 
clearly distinct from the previous one. Each subsequent stage of  the procedure must be 
clearly distinct from the previous one.  
The same documents and information shall not be 
required to be provided mo re than once during the 
same procedure. The same documents and information shall not be 
required to be provided mo re than once during the 
same procedure.  
2. The evaluation committee or, where 
appropriate, the authoris ing officer responsible 
may ask an applicant to provide additional information or to clarif y the supporting documents 
submitted in connection with  the application, in 
particular in the case of  obvious clerical errors. 2. The evaluation committee or, where 
appropriate, the authoris ing officer responsible 
may ask an applicant to provide additional information or to clarif y the supporting documents 
submitted in connection with the application, in particular in the case of  obvious clerical errors.  
The authorising officer shall keep appropriate 
records of contacts with  applicants during the 
procedure. The authorising officer shall keep appropriate 
records of contacts with applicants during the procedure.  
3. Upon completion of its work, the members 
of the evaluation committee shall sign a record of all the proposals examined, containing an assessment of their quality and identifying those which may receive funding. Where necessary that record shall rank the proposals examined. 3. Upon completion of its work, the members 
of the evaluation committee shall sign a record of all the proposals examined, containing an assessment of their quality and identifying those which may receive funding. Where necessary that record shall rank the proposals examined.  
 
EN 13   EN The record shall be kept for future reference. Th e record shall be kept for future reference.  
4. The authorising officer responsible shall 
then take his deci sion giving at least: 
(a) the subject and the overall amount of the 
decision; 
(b) the name of the beneficiaries, the title of 
the actions, the amounts accepted and the reasons for that choice, including where it is inconsistent with the opinion of the evaluation committee; 
(c) the names of any applicants rejected and 
the reasons for that rejection. 4. The authorising officer responsible shall 
then take his deci sion giving at least: 
(a) the subject and the overall amount of the 
decision; 
(b) the name of the beneficiaries, the title of 
the actions, the amounts accepted and the reasons for that choice, including where it is inconsistent with the opinion of the evaluation committee; 
(c) the names of any applicants rejected and 
the reasons for that rejection.  
5. The provisions of paragraphs 1 to 4 shall 
not apply to beneficiaries of grants who are identified in the basic act. 5. The provisions of paragraphs 1 to 4 shall 
not apply to beneficiar ies of grants who are 
identified in the basic act.