Proposal for a COUNCIL DECISION concerning the Community position within the Association Council on the participation of Hungary in Community programmes in the fields of training, youth and education
Date: 1997-03-05
Institutions: European Commission
Subjects: EU programme, Hungary, education policy, vocational training, young person

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  0 5 . 0 3 . 1 9 97 
COM(97) 12  final 

97/ 0018 (CNS) 

Proposal  for a 

COUNCIL  DECISION 

concerning the Community position within the Association  Council 
on the participation of Hungary in Community programmes in the fields of training, 
youth and education 

(presented  by the Commission) 

Explanatory  Memorandum 

The  Additional  Protocols  with  Hungary,  the  Czech  Republic,  Slovakia,  Bulgaria  and 
Romania have entered  into force  on  1 February  1996 (Additional  Protocols  with Hungary 
and  the  Czech  Republic),  on  1 July  1996  (Additional  Protocol  with  Slovakia)  and  on  1 
August  1996 (Additional Protocols with Bulgaria and Romania). 

In  view  of  Association  Council  decisions  which,  according  to  Article  2  of  the 
Protocols,  are  to  fix  the  conditions  and  modalities  of  these  countries'  participation,  the 
Commission  services  have held exploratory  discussions  in the respective  capitals  during 
the  first  semester  of  1996  covering  a  first  group  of  programmes  (Leonardo  da  Vinci, 
Youth  for Europe III,  Socrates,  Media  II)  for  which  the legal  basis  has been  adopted  in 
1994 and  1995,  and provided  for  the participation  of  associated  CEC's. 

During  these  discussions,  information  has  been  provided  on  the  content  of  each  of  the 
programmes  concerned,  on  the  progress  and  timetable  of  preparatory  actions  which 
implemented,  and  on  conditions  and  modalities  for  these  countries' 
are  being 
participation,  including  the cost of  participation. 

More particularly,  taking  into account  that,  according  to  Article  3  of  the  Protocols,  the 
CEC's  will  themselves  meet  the costs  resulting  from  their participation,  they  have been 
invited  to  make the necessary  provisions  in  their  budgets  for  1997,  on  the  basis  of  cost 
estimates provided  by  the  Commission. 

CEC's  are,  of  course,  entitled  to  use  up  to  10  % of  their  Phare  National  Indicative 
Programme,  to  be  decided  according  to  normal  PHARE  programming  procedures,  for 
complementing  the contribution  from  their own  budget1. 

The  Commission  has  also  underlined  that,  after  this  first  set  of  programmes,  other 
programmes  in  the  fields  mentioned  in  Article  1  of  the  Additional  Protocols  will  be 
discussed  shortly  after  their  adoption  or  renewal.  This  will  be  the  case  notably  for 
programmes  in  the  field  of  culture,  the  environment,  social  policy  and  health,  energy, 
preparation  for  the internal  market. 

So  far,  the  Czech  Republic,  Hungary  and  Romania  have  been  the  only  CEC's  with  an 
operational  Additional  Protocol  that have confirmed  to  the Commission  in  writing  their 
willingness  to participate in Leonardo da Vinci,  Youth  for  Europe and  Socrates  as  from 
1997  and to  make available  the necessary  budgetary  appropriations.  Whereas  the  Czech 
Republic  envisages  to  pay  its  financial  contribution  entirely  from  its  national  budget, 
Hungary  and Romania intend  to spread the cost of  their participation  over  their  national 
budget and  Phare allocation. 

A  question  of  particular  importance  to  these  countries  relates  to  the  way  in  which  they 
will  be associated  to  the management  and  decision  making  process  of the programmes  to 
which  they  will  contribute financially; their  participation  will  be  an  opportunity  to  get 
acquainted with the Community's institutions and decision making mechanisms, in addition 

COR  1 8773/94 of 27.7.1994 

o2 

to  the  Structured  Dialogue.  In the  draft  Association  Council  decisions,  it  is  proposed  to 
closely  involve  them in the  monitoring  of their  participation  in the  Programmes,  to  invite 
them to coordination  meetings prior to  the meetings  of the Management  Committees,  and 
to inform them about their results. 

The  main  issues  addressed  in  the  draft  Decisions  of  the  EC  -  Czech  Republic,  EC-
Hungary  and  EC-Romania  Association  Councils  adopting  the  terms  and  conditions  for 
the  participation  of  the  Czech  Republic,  Hungary  and  Romania  in  Community 
programmes  in the fields of  training,  youth  and education  are the following  : 

• 

• 

• 

• 

the  Czech  Republic,  Hungary  and  Romania  shall  participate  in  all  measures  and 
actions  of  Leonardo  da  Vinci,  Socrates  and  Youth  for  Europe,  in  principle  on  the 
same footing  as the Member  States of  the Community  (Articles  1 and 2) 

a  minimum  number  of  partners  from  EC  Member  States  will  be  required  for  all 
transnational  projects  (Article  3)  proposed  by  the  Czech  Republic,  Hungary  or 
Romania 

the  Czech  Republic,  Hungary  and  Romania  shall  set  up  or  make  available  national 
structures and  mechanisms  in order to implement  their participation  (Article  4) 

the  financial  contribution  of  the  Czech  Republic,  Hungary  and  Romania  is  defined 
in  Article 5 and the  Annex 

•  best  efforts  shall  be  made  to  facilitate  the  free  movement  and  residence  of  students, 

teachers etc. (Article 6) 

• 

the  Czech  Republic,  Hungary  and  Romania  shall  be  associated  to  the  monitoring  of 
their participation in the Programmes (Article 7) 

•  the  Czech  Republic,  Hungary  and  Romania  shall  be  invited  to  coordination  meetings 
prior  to  the  meetings  of  the  Programmes  Committees;  they  will  be  informed  about 
their results (article  8) 

• 

the Decision  shall  apply  for the duration  of  the Programmes  (Article  10) 

The  adoption  of  Association  Council  decisions  to  allow  the  Czech  Republic,  Hungary 
and  Romania  to  participate  in  a  first  set  of  Community  programmes  in  the  fields  of 
training,  youth  and  education  from  1997  will  offer  these  countries  the  opportunity  to 
participate  actively  in  internal  Community  instruments,  in  principle,  on  the  same 
footing  as Member States.  It is,  therefore,  of  considerable  political  importance. 
Subject  to  their  capacity  to  fulfil 
in  time  relevant  administrative  and  budgetary 
requirements,  other  associated  CEC's  should  also  be  able  to join  these  programmes  in 
the course  of  1997. 

Accordingly,  the  Council  is  invited  to  adopt  the  annexed  proposal  for  Decision 
concerning  the  Community  position  within  the  Association  Council  with  Hungary  on 
its  participation  in  the  Community  programmes  in  the  fields  of  training  (Leonardo  da 
Vinci),  youth  (Youth  for  Europe)  and education  (Socrates). 

3 

Proposal for a 
COUNCIL DECISION 

of 

concerning the Community  position within the Association Council 
on the participation of Hungary in Community programmes in the fields of training, 
youth and education 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular 
Articles  126 and  127, in conjunction  with Article 228(3) first paragraph thereof, 

Having regard to the proposal from the Commission, 

Having regard to the opinion of the European Parliament, 

Whereas  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 Hungary, of the other part, has been concluded by decision of the Council and 
the Commission of 4 december 1995, 

Whereas,  according  to  Article  1 of the  Additional  Protocol,  Hungary  may  participate  in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
notably in the fields of training, youth  and education  and, pursuant to Article 2, the terms 
and  conditions  for  the  participation  of Hungary  in the  activities  referred  to  in  Article  1 
shall be decided by the Association Council, 

Whereas,  Council  Decision  (94/819/EC)  of  6  December  1994  establishing  an  action 
programme for  the implementation  of a European  Community  vocational  training policy, 
(hereinafter  called  "Leonardo  da  Vinci"1),  and  in particular  Article  9,1  thereof,  Decision 
(95/818/EC) of  14 March  1995 of the  European  Parliament  and the Council  adopting the 
third  phase  of the  "Youth  for  Europe"2  programme  and  in  particular  Article  7,4  thereof 
and  Decision  (95/819/EC)  of  14  March  1995  of  the  European  Parliament  and  of  the 
Council  establishing  the  Community  action  programme  in  the  field  of  education 
(hereinafter  called  "Socrates")3  and  in  particular  article  7,3  thereof,  provide  that  these 
programmes shall be open to the participation  of associated  Central European countries in 
accordance  with  the  conditions  set  out  in  the  Additional  Protocols  to  the  Association 
Agreements on participation in Community programmes, 

1 

2 

3 

O.J. n°L 340 of 29.12.1994 

O.J. no. L87 of 20.04.1995 

O.J. no. L87 of 20.04.1995 

<f 

Whereas,  during  the joint  meetings  of  Education  Ministers  held  in  Luxembourg  on  23 
October  1995 and in Brussels  on 21 November  1996 in the framework  of the  Structured 
Dialogue between the European Union and the associated  Central European  Countries the 
Parties  reconfirmed  their  willingness  to  extend  the  participation  in  Leonardo  da  Vinci, 
Youth for Europe and Socrates  to these countries, 

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 Hungary, of the other part,  concerning the  participation 
of Hungary  in Community  programmes  in the fields of training,  youth  and  education,  is 
the attached draft  decision of the Association Council. 

Done at Brussels 

For the Council 

s 

Draft Decision n°..../96 of the EC-Hungary Association Council of 

1996 

adopting the terms and conditions for the participation of Hungary m 
Community programmes in the fields of training, youth and education 

THE ASSOCIATION  COUNCIL 

Having  regard  to  the  Europe  Agreement  between  the  European  Communities  and  their 
Member States, of the one part, and the Republic of Hungary, of the other,1 

Having regard to the Additional Protocol to the Europe Agreement between the European 
Communities and their Member  States, of the one part,  and  the Republic  of Hungary,  of 
the  other  part  concerning  Hungary's  participation  in  Community  programmes,  and  in 
particular Article  1  and 2 thereof;2 

Whereas  according  to  Article  1 of  the  Additional  Protocol,  Hungary  may  participate  in 
Community  framework  programmes,  specific  programmes,  projects  or  other  actions 
notably in the fields of training, youth and education; 

Whereas pursuant to Article 2 of the Additional Protocol the terms and conditions for the 
participation  of Hungary  in the  activities  referred  to  in Article  1 shall  be  decided  by the 
Association Council; 

Whereas  during  the joint  meetings  of  Education  Ministers  held  in  Luxembourg  on  23 
October  1995 and in Brussels on 21 November  1996 in the framework  of the  Structured 
Dialogue  between  the  European  Union  and  the  associated  Central  European  Countries 
parties  reconfirmed  their  willingness  to  extend  the  participation  in  Leonardo  da  Vinci, 
Youth for Europe and Socrates to these countries; 

HAS DECIDED AS FOLLOWS: 

Hungary  shall  participate  in  the  European  Community  programmes  Leonardo  da Vinci, 
Youth  for  Europe  and  Socrates  according  to  the  attached  terms  and  conditions  which 
shall form an integral part of this Decision. 

Done at 

The Chairman 

For the Association Council 

OJ.  N°L  347 of 31.12.1993 

O.J. N°L 317 of 30.12.1995 

C 

Terms  and  conditions  for  the  participation  of Muag&r% 
in the  Leonardo  da  Vinci,  Youth  for  Europe  and  Socrates-progranmies 

Article 1 

Hungary  shall participate in all measures  and actions  of the Leonardo  da Vinci,  Youth  for 
Europe  and  Socrates  programmes  (hereinafter  called  "the  Programmes")  in  conformity, 
unless  otherwise  provided  in  this  Decision,  with  the  objectives,  criteria,  procedures  and 
deadlines  as  defined  in  Council  Decision  (94/819/EC)  establishing  an  action  programme 
for  the  implementation  of  a  European  Community  vocational  training  policy,  Decision 
95/818/EC  of the European Parliament  and of the Council  adopting the third phase  of the 
"Youth  for  Europe"  programme  and  Decision  n°  95/819/EC  of  the  European  Parliament 
and of the Council  establishing the European Community action programme in the field of 
education. 

Article  2 

The  terms  and  conditions  for  the  submission,  assessment  and  selection  of  applications 
related  to  eligible  institutions,  organisations  and  individuals  of  Hungary  shall  be the  same 
as those applicable to eligible institutions,  organisations and individuals of the Community. 

Language  preparation  and  training  activities  concern  the  official 
languages  of  the 
Community.  In  exceptional  circumstances,  other  languages  could  be  accepted  if  the 
implementation of the programmes so requires. 

Article  3 

To  ensure  the  Community  dimension  of  the  Programmes,  transnational  projects  and 
activities  proposed  by Hungary  will  be  required to  include  a minimum  number of partners 
from  the Member  States  of the  Community.  This  minimum  number will  be  decided  in the 
framework  of  the  implementation  of  the  Programmes,  taking  into  account  the  nature  of 
the  various  activities,  the  number  of  partners  in  a  given  project,  and  the  number  of 
countries  participating  in  the  Programme.  Projects  and  activities  carried  out  solely 
between  Hungary  and  the  EFTA-EEA  States  or  any  other  third  country,  including  those 
with  an  association  agreement  with  the  Community,  to  which  participation  in  the 
programmes is open,  shall not be eligible for Community financial  support. 

Article  4 

In conformity  with the terms  of the  relevant  provisions  of  the  Decisions  on  Leonardo  da 
Vinci,  Youth  for  Europe  and  Socrates,  Hungary  shall  provide  the  appropriate  structures 
and mechanisms at national level and shall take all other necessary  steps to  ensure  national 
coordination and organisation of the implementation  of the Programmes. 

Article 5 

Hungary  shall  pay  each year a contribution  to  the  budget  of the  Community  to  cover  the 
costs resulting from its participation in the Programmes. 

^ 

The  rules  governing  the  financial  contribution  of  Hungary  shall  be  those  set  out  in  the 
Annex,  which  constitutes  an  integral  part  of  this  Decision.  The  Association  Committee 
shall be entitled to adapt this contribution whenever necessary. 

Article 6 

The Community  and  its Member  States  and  Hungary  shall make every effort  to  facilitate 
the  free  movement  and  residence  of  students,  teachers,  university  administrators,  young 
people  and  other  eligible  persons  moving  between  Hungary  and  the  Community  for  the 
purpose of participating in activities covered by this Decision. 

Article 7 

Without prejudice to the responsibilities of the Commission and the Community's Court of 
Auditors  in  relation  to  the  monitoring  and  evaluation  of  the  programmes  pursuant  to 
Articles  10,  9  and  8  of  Leonardo  de  Vinci,  Youth  for  Europe  and  Socrates  decisions 
respectively,  the  participation  of  Hungary  in  the  programmes  shall  be  continuously 
monitored  on a partnership basis involving the Commission  and Hungary.  Hungary  shall 
submit to the Commission relevant reports and take part in other specific  activities set out 
by the Community to this end. 

Article 8 

Without  prejudice to the procedures referred  to in Article 6 of the Decision  on Leonardo 
da Vinci, article 6 of the Decision  on  Youth  for  Europe  and  article 4 of the Decision on 
Socrates,  Hungary  shall  be  invited  to  coordination  meetings  on  any  question  concerning 
the implementation  of this Decision prior to the regular  meetings of the Committees.  The 
Commission shall inform Hungary about the results of such regular meetings. 

Article 9 

The  language  to  be  used  as  regards  the  application  process,  contracts,  reports  to  be 
submitted  and  other administrative  arrangements for  the programmes,  shall be one of the 
official  languages of the Community. 

Article 10 

This Decision  shall  apply  for  the  duration  of the  Leonardo  da  Vinci,  Youth  for  Europe 
and Socrates programmes (until 31 December  1999). 

Article 11 

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

? 

ANNEX 

FINANCIAL CONTRIBUTION  OF HUNGARY TO 
LEONARDO DA VINCI, SOCRATES AND YOUTH FOR EUROPE 

1.  The financial contribution of Hungary will cover: 

-subsidies  or  any  other  financial  support  from  the  programmes  to  Hungarian 
participants: 

-the  financial  support  from  the  programmes  to  the  functioning  of  the  national 
agencies, where applicable; 

-supplementary administrative costs related to the management of the programmes 
by the Commission stemming from Hungary's participation. 

2.  For  every  budget  year,  the  aggregated  amount  of  subsidies  or  any  other financial 
support  received  from  the  programmes  by  the  Hungarian  beneficiaries  and  by  the 
national agencies of Hungary  will not  exceed the contribution  paid by Hungary,  after 
deduction of the supplementary administrative costs. 

Should  the  contribution  paid  by  Hungary  to  the  budget  of  the  Community,  after 
deduction  of the  supplementary  administrative  costs,  be  higher  than  the  aggregated 
amount  of  the  subsidies  or  other  financial  support  received  by  the  Hungarian 
beneficiaries  and  by the  national  agencies from the  programmes,  the  Commission  of 
the  European  Communities  will  transfer  the  balance  to  the  next  budgetary  exercise, 
and it will be deducted  from  the following  year's contribution.  Should  such a balance 
be left when the programmes come to an end, the corresponding amount will be reim 
bursed to Hungary. 

3.  Leonardo da Vinci 

Hungary's annual  contribution  will be of 2.654.000  ECU  from  1997. From this sum, 
an amount  of  175.000 ECU  will cover  supplementary  administrative  costs related  to 
the  management  of  the  programme  by  the  Commission  stemming  from  Hungary's 
participation. 

4.  Socrates 

Hungary's contribution will be : 

- 

3.297.000  ECU  in  1997  for  its  participation  in  Chapter  II  (School  education, 
Comenius)  and  Chapter  III  (horizontal  measures).  From  this  sum,  an  amount  of 
214.000  ECU  will  cover  supplementary  administrative  costs  related 
the 
management  of  the  programme  by  the  Commission  stemming  from  Hungary's 
participation. 

to 

- 

4.902.000  ECU  in  1998  and  in  1999,  for  its  participation  in  the  entire  Socrates 
programme,  including  Chapter  I  (Erasmus).  From  this  sum,  an  amount  of  320.000 

9 

ECU  will  cover  supplementary  administrative costs  related  to  the  management  of the 
programme by the Commission  stemming from Hungary's participation. 

5.  Youth for Europe 

Hungary's annual contribution will be: 

- 400 000 ECU in  1997 for participating in actions AI and BI; 

-  600 000 ECU in  1998  and  800  000  ECU in  1999 for participating in all the actions 
of the programme, except  Action  D 

From  these  sums,  a  yearly  amount  of  40.000  ECU  will  cover  supplementary 
administrative  costs related to the management  of the programme by the  Commission 
stemming from Hungary's participation. 

6.  The  financial  regulation  applicable  to  the  general  budget  of  the  Community  shall 

apply, notably to the management  of the contribution of Hungary. 

After the entry into force  of this decision  and at the beginning  of each following  year, 
the  Commission  shall  send  to  Hungary  a  call  for  funds  corresponding  to  its 
contribution to the costs under the Decision. 

This  contribution  shall  be  expressed  in  ECU  and  paid  into  an  ECU  bank  account  of 
the Commission. 

Hungary shall pay its contribution to the annual costs under this Decision according to 
the  call for funds,  at the  latest  three  months after the call  for funds  is  sent.  Any  delay 
in  the  payment  of  the  contribution  shall  give  rise  to  the  payment  of  interest  by 
Hungary  on the  outstanding  amount  from the due date.  The interest  rate  corresponds 
to the rate applied by the European Monetary  Cooperation Fund, for the month of the 
due date, for its operations in ECU1,  increased by  1,5  percentage points. 

7.  Hungary  shall pay the  supplementary  administrative  costs  referred  to  in paragraphs 3, 

4  and 5 from its national budget. 

8.  Hungary  shall  pay  50 % of the remaining  costs  of its participation  in the  programmes 

from its national budget. 

Subject to  regular PHARE programming  procedures,  the remaining  50 % will be paid 
from Hungary's annual  PHARE National  Indicative Programmes. 

Rate published monthly in the Official Journal of the European Communities - C series. 

O 

FINANCIAL  STATEMENT 

Article B7-503:  Opening of Community Programmes to the associated countries of Central 

and Eastern Europe 

1. TITLE OF OPERATION 

B7-50 -Cooperation with countries of Central and Eastern Europe 

2. BUDGET HEADING  INVOLVED 

B7-503  -  Opening  of  Community  Programmes  to  the  associated  countries  of  Central  and 

Eastern Europe 

3. LEGAL BASIS 

Treaty  establishing  the  European  Community,  and  in  particular  Articles  126  and  127,  in 
conjunction  with Article 228(3) thereof. 

Additional  Protocol to the Europe Agreement with Hungary (Articles 228 and 238) of 4 December 
1995, providing for the opening-up of Community programmes (OJ No 317/95, page 30) 

Council  Decision  (94/819/EC)  of  6  December  1994  establishing  the  Leonardo  da  Vinci 
programme, and in particular Article 9(1) thereof, 

Decision  of  the  European  Parliament  and  of  the  Council  (95/818/EC)  of  14  March  1995 
establishing the Youth for Europe programme, and in particular Article 7(4) thereof, 

Decision  of  the  European  Parliament  and  of  the  Council  (95/819/EC)  of  14  March  1995 
establishing the Socrates programme, and in particular Article 7(3) thereof, 

4. DESCRIPTION OF OPERATION: 

4.1 General objective 

Hungary's  participation  in the three  Community  programmes  concerned  on an  equal  footing  with 
the  Member  States  will  assist  in its  future  accession  to the Union, which  was  the  aim  set  by the 
Copenhagen  European  Council of June  1993 and confirmed  by subsequent  European  Councils. Its 
participation  will  not  only  contribute  towards  the  implementation  of  the  provisions  relating  to 
economic  and  cultural  cooperation  in  the  Europe  Agreements  but  will  also  enable  Hungary  to 
familiarise  itself with the procedures and methods used in Community programmes. 

The  decision-making  process  for  the  opening-up  of  programmes  involves  a  decision  by  the 
Association  Council  between the Union and  the associated  country.  This  decision  also  lays down 
the practical arrangements for opening up the programmes. 

h 

CUD 
The  Additional  Protocol  with  Hungary  entered  into  force  on  1 February  1995  ?xd  provides  for 
Hungary's participation in the three programmes concerned from  1997. 

The above  mentioned  programmes  are not  intended  to  form  an  exhaustive  list  as  the process  for 
opening them up has only recently  begun.  Other  Community  programmes,  notably  in the fields of 
culture, health and social policy, energy, the environment, etc, have been or will shortly be opened 
up to the countries of Central and Eastern  Europe, probably during 1997. 

4.2 Period covered and arrangements for renewal 

Up to the accession  of the country  concerned  to the European  Union,  but  dependent  on decisions 
taken as regards the budget after  1999. 

5. CLASSIFICATION OF EXPENDITURE OR REVENUE 

5.1 Non-compulsory  expenditure 

5.2 Differentiated  appropriations 

5.3 Type of revenue involved: 

Since the first paragraph  of Article 3 of the Additional  Protocol  stipulates that Hungary  itself will 
meet the costs resulting from  its participation,  it will be invited to transfer  its contribution  to item 
6091  of the  EU's  budget  receipts.  However,  as  the  second  paragraph  of Article  3 states  that  the 
Community  may  supplement  Hungary's  contribution  (by  up  to  10%  of  the  National  Indicative 
Programme), Hungary will contribute only part from  its national budget, with the remainder being 
charged to heading B7-503. 

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  Hungary'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  three  programmes  in question  and,  where  appropriate,  to  the  relevant  items  of  operating 
expenditure. 

The total revenue expected is given under item 7.4. 

'J2-

7.  FINANCIAL  IMPACT 

7.1  Method of calculating total  cost of operation for  1997,  1998 and  1999 financial years (link 

between individual costs and total cost) 

The calculation is based on the following preconditions: 

-  each partner country's contribution to the financing of the activities referred to in the Protocol is 
calculated  according  to  the  principle  that  the  country  bears  the  cost  of  participation  itself. 
Heading 6091 has been created in the statement of budget revenue for that purpose; 

- 

the  Community  may  decide  on  a  case-by-casc  basis  to  pay  a  supplement  to  the  partner 
country's contribution. The supplement  may be in the form of a contribution  under the PHARE 
programme, but the amount cannot exceed  10% of its  National Indicative Programme. 

Based on the Additional Protocol with Hungary, the financial and budgetary  arrangements  for the 
three programmes concerned are as follows: the costs have been calculated on the basis of various 
parameters  inherent  in the three  programmes,  i.e.  GDP,  population,  school  attendance,  distances 
involved. 

The cost of Hungary's  participation  in Leonardo  da Vinci  from  1997 will  be ECU 2 654 000 per 
year. 

For Socrates the amount will be ECU 3 297 000 in  1997, provided that  Erasmus  is not opened up 
that year. In  1998 and  1999, the cost will be ECU 4 902 000 per year. 

The cost of Youth  for  Europe  will  amount  to 400.000  ECU  in  1997, 600.000  ECU  in  1998 and 
800.000 ECU in  1999. 

The  above-mentioned  figures,  from  which  the  supplementary  administrative  costs  -to  be  borne 
exclusively by Hungary- have to be deducted, are divided per year and per programme as  follows. 
50%  of the operational  costs will be covered  from  Hungary's  national  budget  and - subject  to the 
Phare  procedures  for  programming  item  B7-500  -  50%  from  the  annual  PHARE  budget  for 
Hungary (National Indicative Programme). 

7.2  Itemised breakdown of cost 

Programme 

1997 

1998 

1999 

Total 

2 479 000 

2 479 000 

2 479 000 

7 437 000 

in ECU 

of which 
Hungary 
3 718 500 

of which 
Phare 
3 718 500 

da 

Leonardo 
Vinci 
Socrates 
Youth for Europe 
Total 

3 083 000 
360 000 
5 922 000 

4 582 000 
560 000 
7 621 000 

4 582 000 
760 000 
7 821 000 

12 247 000 
1 680 000 
21 364 000 

6 123 500 
840 000 
10 682 000 

6 123 500 
840 000 
10 682 000 

/3 

7.3  Operational  expenditure on studies, expert  meetings, etc., included  in Part B: 

None 

7.4 

Schedule for  multiannual  operations 

Amounts  to be charged to item  B7-503 

Comm.  app. 
Pay.  app.m 
1997 
1998 
1999 
subsequent 
years 
Total 

1997 

1998 

1999 

subsequent 
years 

TOTAL 

2 961000 

3 810 500 

3 910 500 

0 

10 682 000 

2 412 562 
469 403 
63 405 
15 630 

3  185 210 
538 570 
86 720 

3 260 210 
650 290 

2 961000 

3 810 500 

3 910 500 

2 412 562 
3 654 613 
3 862 185 
752 640 

10 682 000 

(*) Schedule based on the method of payment currently applying to these programmes. 

The foreseeable  annual  receipts are as follows: 

Item  6091 

1997 

1998 

1999 

subsequent 
years 

TOTAL 

operational 
part 
administrative 
part 
Total 

2 961 000 

3 810 500 

3 910 500 

0 

10 682 000 

429.000 

535 000 

535 000 

3 390 000 

4 345 500 

4 445 500 

1 499 000 

12  181000 

8. FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN 

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 and Eastern Europe. 

I<t 

9.  ELEMENTS  OF COST-EFFECTIVENESS  ANALYSIS 

9.1.  Specific and quantified  objectives;  target population 

The aim of opening  up the Leonardo  da Vinci,  Youth  for  Europe and  Socrates  programmes  to  Hungary 
is  to  bring  it  the  same  benefits  as  the  Member  States  of  the  Community  already  enjoy  from  the  three 
programmes.  The essentia! aim  of  Community  action  on  education  and  training  should  be  to  enable  all 
European  citizens  to  achieve  their  full  potential  and  display  initiative  and  creativity  so  that  they  can 
participate  fully  in  society  and  in  the  building  of  Europe.  This  objective  is  based  on  the  gradual 
establishment of an open European area for  education and training. 

In  the  field  of  education,  the  principal  aim  of  the  Socrates  programme  is  to  contribute  to  the 
development of quality  education by encouraging  cooperation  between Member  States. The specific  aims 
of the programme are: 

to  develop  the  European  dimension  in  education  at  all  levels  so  as  to  strengthen  the  spirit  of 
European citizenship, drawing on the cultural  heritage of each Member State; 

to  promote  a  quantitative  and  qualitative  improvement  of  the  knowledge  of  the  languages  of  the 
European  Union,  and  in  particular  those  which  are  least  widely  used  and  least  taught,  leading  to 
greater understanding  and solidarity  between  the peoples of the European  Union,  and to promote the 
intercultural dimension of education; 

to  promote  wide-ranging  and  intensive  cooperation  between  institutions  at  all  levels  of  education, 
enhancing their intellectual  and teaching potential; 

to  encourage  the  mobility  of  teachers,  so  as  to  promote  a  European  dimension  in  studies  and  to 
contribute to the qualitative  improvement of their skills; 

to  encourage  mobility  for  students,  enabling  them  to  complete  part  of  their  studies  in  another 
Member State, so as to contribute to the consolidation  of the European dimension  in education; 

to encourage contacts among pupils  in the European  Union,  and to promote  the European  dimension 
in their education; 

to encourage  the academic  recognition  of diplomas,  periods of  study  and  other  qualifications,  with 
the aim of facilitating  the development of an open European area for  education; 

to encourage open and distance education  in the context of the activities of this programme; 

to  foster  exchanges  of  information  and  experience  so  that  the  diversity  and  specificity  of  the 
educational  systems in the Member States become a source of enrichment and of mutual  stimulation. 

In  the  field  of  vocational  training,  the  principal  aim  of  the  Leonardo  da  Vinci  programme  is  to 
implement a vocational  training  policy  which  supports and  supplements the action  of the Member States. 
The main objectives  of the programme are to: 

improving  the  quality  of  the  Member  States'  continuing  vocational 

support  the improvement  of  the vocational-training  systems and arrangements  in the Member  States 
by:  improving  the  quality  of  initial  vocational  training  and  the  transition  of  young  people  to 
working  life, 
training 
arrangements,  supporting  vocational  information  and  guidance,  promoting  equal  opportunities  for 
men  and  women  in  vocational  training,  improving  the  quality  of  vocational  training  arrangements 
for persons disadvantaged  on the labour market,  for  example owing  to socio-economic,  geographical 
or  ethnic  factors  or  by  physical  or  mental  disabilities  or  a  lack  of  qualifications  or 
insufficient 
qualifications  such that they are at risk of social exclusion; 

the  improvement  of  vocational 

support  for 
training  measures  including  university/industry 
cooperation,  concerning  undertakings and workers:  innovation  in vocational  training,  with a view to 
taking into account technological  change and  its impact on work and the necessary  qualifications  and 
skills,  investment  in  continuing  vocational  training  for  workers,  the  transfer  of  technological 

U 

innovation  in  the  context  of  cooperation  between  undertakings  and  universities  in  the  field  of 
continuing vocational training, the promotion  of equal opportunities for  men and women; 

support  for  the development  of  language  skills,  knowledge  and  the dissemination  of  innovation  in 
the field  of vocational  training. 

In the area of youth policy,  the overall  objective  of the Youth  for  Europe programme  is to contribute  to 
the educational process of all young people through activities which complement those taking place in the 
Member  States  or  provided  at  Community  level  in  the  fields  of  education  and  training.  The  specific 
objectives of the programme are to: 

promote youth exchanges for young people aged  15 to 25 living in one or several Member States; 

support initiatives and  innovative projects  of Community  interest or of a transnational  nature  set up 
by  young  people  for  young  people,  which  allow  them  to play  an  active and  acknowledged  role  in 
society and to develop their personal abilities, creativity,  sense of solidarity and  independence; 

create  favourable  conditions  for  meetings  of  a  high  standard  and  ensure  the  high  quality  of  all 
measures taken under the programme; 

support  the training of youth  leaders to enable young  people to  benefit  from  high-quality  common 
measures related to the general objectives of the programme; 

step  up  cooperation  among  Member  States  and  between  them  and  the  Commission  through 
exchanges  of  experience  and  joint  initiatives  at  Community  level,  and  thus  to  support  Member 
States  in  their  endeavours  to  improve  the  quality  of  services  and  measures  for  young  people,  in 
particular  through  activities aimed at  providing  young people with  information  about  the  objectives 
of the programme; 

promote  exchanges  with  young  people  from  non-member  countries with  which  the Community  has 
concluded  in particular cooperation agreements. 

9.2.  Grounds for  the operation 

-  Need for  Community financial aid 

In  view  of  the  high  cost  of  participation  in  the  programmes  and  Hungary's  precarious  budgetary 
situation,  assistance from  PHARE as provided  for  in Article 3(2) of the Additional  Protocol  is essential. 

Choice of ways and means 

With a contribution  from  PHARE,  supplemented  by one from  the national budget,  Hungary's  integration 
in  the programmes  concerned  will  put  it  on  an  equal  footing  with  the current  EU  Member  States.  The 
integration of Hungarian nationals in Community networks will make a definite contribution  to preparing 
Hungary  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  Hungarian  firms'  capacity  to  respond  to the calls  for  proposal  to be launched 
by the Commission  under the three programmes. 

9.3  Monitoring and evaluation of the operation 

The  monitoring  and  evaluation  procedures  included  in  the  Leonardo  da  Vinci,  Youth  for  Europe  and 
Socrates programmes (notably  in respect of evaluation,  as included  in the decisions establishing  the three 
programmes) will also cover operations financed  for  Hungarian  beneficiaries. 

• 

U 

10. ADMINISTRATIVE EXPENDITURE 

The  administrative  resources  required  will  actually  be  mobilised  following  the  annual  Commission 
Decision  on the allocation of  resources, taking account  in particular  of manpower  and  additional  amounts 
granted  by the budgetary  authority.  The supplementary  needs  can  not,  in any  case, prejudge  the decision 
that the Commission  will need to take concerning: 

a) 
b) 

the request of new posts  in the framework  of the APB 
the resources  allocation 

10.1  Impact on the number of  posts 

Type of  post 

required 

Staff 
operation 
Permanent 
posts 

to  manage 

the 

including 

Temporary 
posts 

existing 
of 

using 
resources 
the 
departments 
concerned 

using 
additional 
resources 

duration 

1995-1999 

or 

Officials 
temporary  staff 
A 
B 
C 
Other  resources 

TOTAL 

1A 
IB 
1C 

3 

1A 

1C 

2 

IB 

1 

from  1997 

10.2 Overall financial impact of the additional  human  resources 

(in ECU) 

Total 

240 000 

Method  of  calculation  (total  cost  of 
the action  for  the period  1997-1999) 
80 000 ECU/year  =  240 000 ECU 
(Titles  Al,  A2, A3, A4 and  A5) 

Officials 
Temporary  staff 
Other  resources  (indicate  budget 
heading) 

TOTAL 
~ 
The expenses  concerning  the human  resources  needed  to  carry  out  this task  that  will  be  met through  the 
allocation  of  the  existing  resources  are  estimated  to  : two  officials  (1A,  1C)  =  165.000  ECU/year  = 
495.000 ECU  (Titles  Al,  A2, A3, A4 and A5) 

240 000 

1 

1 

n 

10.3 Increase  in other  operating  expenses  as a result  of the  operation 

^Jàsaki 

Budget  heading  (No and  title) 

Total 

A1178/A238 
assistance 

- 

technical 

A1300 -missions 
A2500 - meetings 

A2510 - compulsory  meetings 

(in  ECU) 

Method  of  calculation  (total  cost  of 
the action  for  the period  1997-1999) 

1298 000  6%  of  the  additional  funds 

to  be 
managed  by  the  agencies  assisting  the 
Commission  with  the 3  programmes 
30 000  3 missions  per year  per  programme 
30 000  Participation 

Hungarian 
representative  in  3  annual  meetings 
per  programme 

of 

a 

141 000  Based  on  the  EUR15  budget  required 
in  1996,  cost  of 
the  additional 
presence of Hungarian  representatives 

Total 
The above expenditure will  be  met  from  the  receipts  (article  4§2,  third  indent  of  the  financial  regulation)  received 
from  the Hungarian participation  in Community  Programmes (see § 5.3  of the financial  statement). 

1 499 000  1 

| 

it 

ISSN 0254-1475 

COM(97)  12 final 

DOCUMENTS 

EN 

11  16 

Catalogue  number  :  CB-CO-97-008-EN-C 

ISBN  92-78-14998-5 

Office  for Official  Publications of the European  Communities 

L-2985 Luxembourg 

'9