WRITTEN QUESTION E-0942/01

by Johannes Voggenhuber (Verts/ALE) to the Commission

(28 March 2001)

Subject: Conclusion of an aid contract with the designated Austrian national agency for the EU's Youth programme

The Republic of Austria has designated EuroTech Management Consulting GmbH as the Austrian national agency for the EU's Youth programme.

This appointment may be in contravention of Commission directives. In particular, as a GmbH (limited liability company) EuroTech is by definition a profit-making organisation and has expressed a gainful intent with regard to its activity as a national agency. An inquiry is under way in Austria.

Was there any reason why the Commission did not continue to use the existing national agency? Why was EuroTech preferred to the existing national agency?

What specific experience and specialist competencies does EuroTech have in the field of youth exchanges, international/intercultural education, the further training of youth workers, the handling of EU action programmes and/or the management of EU funds on behalf of third parties? Did EuroTech have staff with appropriate qualifications at the time when it was nominated?

Is it possible that EuroTech will make a profit through its activity as national agency? Is it not the logical conclusion from Commission directives that only a non-profit-making organisation can be used as a national agency?

Is the Commission planning to cofinance the Austrian national agency to the maximum amount of 50 %, even though EuroTech's gross contract price is some 40 000 higher than that of other tenderers?

Is it true that EuroTech is planning to invest only about half as many man-hours as other tenderers in its activity as national agency, even though the gross costs are higher?

Would an aid contract between the Commission and EuroTech be in contravention of the law?

What is the potential damage to the Commission if it concludes an aid contract with EuroTech and the supervisory bodies to whom an appeal has been made subsequently declare the grant to EuroTech to be illegal?

Answer given by Mrs Reding on behalf of the Commission

(14 June 2001)

The Community YOUTH programme is implemented through a network of national agencies. The Commission has adopted provisions, after the approval by the YOUTH Programme Committee, relating to the responsibilities of the Commission and of the Member States concerning the national agencies.

According to the provisions, the authorities in the Member States are responsible for the designation of an agency in their country. In Austria, the Federal Ministry of Social Security and Generations has designated EuroTech as national agency following a call for tender.

In addition, the provisions establish the minimum requirements, which apply to the national agencies. According to the provisions the body designated as the national agency must, among other things, have at their disposal personnel qualified for administrative work in an environment of international co-operation. Language, management, financial management and computer skills as well as knowledge on the youth sector are very desirable.

The Commission has verified that the appointed national agency complies with these requirements. For this purpose, the Commission has visited EuroTech in their premises in Vienna. The personnel of EuroTech covers a wide range of competencies including experience with youth research, management of Community programmes and funds (including the European Voluntary Service) as well as general management and financial management skills. The proposed organisation and number of man-hours seem to be appropriate for the expected tasks.

The Community contribution is limited to 50 % of the operating costs of the agency. The contribution is calculated on the real operating costs of the agency and excludes any possible profits.

The Commission will, in the contract with the new agency, protect its interest with regard to any possible outcome of the ongoing appeal.