Proposal for a Council Regulation (EC, Euratom) establishing a European Fraud Investigation Office
Date: 1998-12-01
Institutions: European Commission
Subjects: Community budget, EU action, fact-finding mission, fraud, fraud against the EU

C  21/10

EN

Official  Journal  of  the  European  Communities

26.1.1999

II

(Preparatory  Acts)

COMMISSION

Proposal  for  a  Council  Regulation  (EC,  Euratom)  establishing  a  European  Fraud  Investigation
Office

(1999/C  21/06)

COM(1998)  717  final  -  98/0329(CNS)

(Submitted  by  the  Commission  on  4  December  1998)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and  in  particular  Article  235  thereof,

checks  and  inspections  provided  for  by  Community
law,  without  jeopardising  the  responsibilities  and
powers  exercised  by  the  institutions  in  accordance
with  the  Treaties;

Having  regard  to  the  Treaty  establishing  the  European
Atomic  Energy  Community,  and  in  particular  Article  203
thereof,

Having  regard  to  the  proposal  from  the  Commission,

Having 
Parliament,

regard 

to 

the  Opinion  of 

the  European

Having  regard  to  the  Opinion  of  the  Court  of  Auditors,

(1)(cid:217)Whereas  the  institutions  and  the  Member  States
attach  great  importance  to  the  protection  of  the
Communities’  financial  interests  and  to  the  fight
against  fraud  and  all  illegal  activites  detrimental  to
the  Communities’  financial  interests;  whereas  the
importance  of  action  to  that  end  is  confirmed  by
Article  209a  of  the  EC  Treaty  and  Article  183a  of
the  Euratom  Treaty;

(2)(cid:217)Whereas  all  available  means  must  be  deployed  to
fully  attain  this  objective,  notably  in  terms  of  inves(cid:220)
tigation  functions  devolved  to  the  Community  level,
the  current  distribution  and  balance  of
while 
responsibilities 
and
Community  levels  should  be  maintained;

the  national 

as  between 

(3)(cid:217)Whereas 

for 

the  effective  attainment  of 

these
objectives  the  requisite  autonomy  in  the  investi(cid:220)
gative  function  should  be  secured;  whereas  to  boost
the  means  available  for  combating  fraud  a  body
should  be  established  with  adequate  legal,  adminis(cid:220)
trative  and  financial  autonomy  to  enable 
it  to
the  on(cid:220)the(cid:220)spot
exercise, 

independence, 

full 

in 

legal  personality, 

to  be  known  as 

(4)(cid:217)Whereas  a  body  should  accordingly  be  established
with 
the
European  Fraud  Investigation  Office  (hereinafter
referred  to  as  "the  Office’)  and  to  be  responsible  for
anti(cid:220)fraud 
the
institutions  and
Member  States  and  within  the 
bodies  established  by  or  on 
the
Treaties;

the  basis  of 

adminstrative 

investigations 

in 

it 

interests 

financial 

the  Communities’ 

(5)(cid:217)Whereas  to  boost  the  effectiveness  of  the  fight
against  fraud  and  other  illegal  activities  detrimental
is
to 
necessary  that  the  Office  assist  the  Commission
and,  where  appropriate,  the  other  institutions  and
bodies  established  by  the  Treaties  or  by  secondary
legislation;  whereas  it  is  important  in  this  context
that  the  Office  should  be  able  to  conduct  its  investi(cid:220)
gations  without  affecting  the  Commission’s  role
and  responsibilities  for  implementing  the  budget,
for  monitoring  the  application  of  Community  law
and  for  coordinating  the  Member  States’  anti(cid:220)fraud
activities,  or  the  responsibilities  of  the  Court  of
Auditors  for  verifying  the  legality  and  regularity  of
Community  revenue  and  expenditure;

(6)(cid:217)Whereas  the  Commission  must  be  in  a  position  to
instruct  the  Office  to  conduct  on(cid:220)the(cid:220)spot  checks
and  inspections  in  the  Member  States  or  to  take
part  in  them,  notably  for  the  purpose  of  detecting
irregularities  as  required  by  Council  Regulation
(EC,  Euratom)  No  2988/95  of  18  December  1995
on  the  protection  of  the  European  Communities’
financial 
and  Council  Regulation
(Euratom,  (EC)  No  2185/96  of  11  November  1996
inspections
concerning  on(cid:220)the(cid:220)spot  checks  and 

interests(cid:216)(˛) 

(˛)(cid:217)OJ  L  312,  23.12.1995,  p.  1.

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financial 
irregularities(cid:216)(˛),  or 

carried  out  by  the  Commission  in  order  to  protect
interests
the  European  Communities’ 
against  fraud  and  other 
in
accordance  with  the  sectoral  regulations;  whereas
to  that  end  the  conditions  governing  such  investi(cid:220)
gations 
separate
instrument  to  determine  the  allocation  of  tasks  and
organise  the  smooth  functioning  of  cooperation
in
between 
particular  with  respect  to  the  preparation  of  investi(cid:220)
gations  with 
the  Member  States  and  action
thereafter;

the  Commission  and 

the  Office, 

laid  down 

should  be 

in  a 

(7)(cid:217)Whereas,  given  the  need  to  boost  internal  investi(cid:220)
gations  in  the  institutions  and  other  bodies  estab(cid:220)
lished  by  the  Treaties  and  secondary  legislation,  the
Office  should  be  given  the  requisite  authority  to
conduct  such  investigations  in  full  independence;

(8)(cid:217)Whereas  the  terms  on  which  the  Office’s  agents  will
discharge  their  duties  and  the  terms  governing  the
Director’s  exercise  of  his  responsibility  for  the
conduct  of  investigations  by  the  agents  should  be
laid  down;

the  Commission  and 

(9)(cid:217)Whereas,  for  the  sake  of  successful  cooperation
between 
the  Office  and
between  the  Office  and  the  Member  States,  the
relevant  institutions  and  other  bodies,  the  exchange
of  information  must  be  organised,  subject  to  rules
of  confidentiality  where  information  is  subject  to
professional  secrecy,  while  ensuring  that  it  enjoys
the  proper  data  protection;

(10)(cid:217)Whereas,  to  ensure  that  the  results  of  investigations
conducted  by  the  Office’s  staff  are  taken 
into
account  and  that  the  Commission  is  able  to  take  the
requisite  follow(cid:220)up  action,  their  reports  should  have
the  status  of  admissible  evidence  in  administrative
and  judicial  proceedings,  and  whereas,  to  that  end,
they  should  be  drawn  up  in  a  manner  compatible
with  the  rules  governing  administrative  reports  in
the  Member  States;

(11)(cid:217)Whereas 

the 

the  Office 

should  enjoy 

fullest
autonomy  in  the  discharge  of  its  function;  whereas
the  Board  of  Management  should  accordingly  be
composed  not  only  of  representatives  of  the  insti(cid:220)
tutions  directly  responsible  for  the  protection  of  the
Communities’  financial  interests  but  also  of  inde(cid:220)
pendent  personalities  being  experts  in  the  Office’s
field  of  activity;

(12)(cid:217)Whereas  administrative 
conducted  under 

investigations  should  be
the

the  sole  responsibility  of 

Director  of  the  Office,  in  full  independence  from
the  Community  institutions  and  bodies  and  from
the  Board  of  Management;

the  course  of 

the  Communities’ 

(13)(cid:217)Whereas  entrusting  to  an  independent  body  the
task  of  conducting  administrative  investigations  for
the  protection  of 
financial
interests  should  not  have  the  effect  of  reducing  the
level  of  legal  protection  enjoyed  by  the  persons
concerned,  in  particular  as  regards  the  protection  of
personal  data  and  respect  for  condifentiality  of
information  gathered 
investi(cid:220)
in 
gations;  whereas  provision  should  accordingly  be
made  for  jurisdiction  to  be  conferred  on  the  Court
of  Justice  of  the  European  Communities  to  review
the  legality  of  acts  performed  by  the  Office  and  to
rule 
the  non(cid:220)contractual
liability  of  the  Office;  whereas  officials  and  other
legal
servants  of  the  Communities  should  enjoy 
protection  equivalent 
for  by
to 
Articles  90  and  91  of  the  Staff  Regulations  of
officials  of  the  European  Communities  and  by  the
conditions  of  employment  of  other  servants  of  the
European  Communities;

in  cases  concerning 

that  provided 

(14)(cid:217)Whereas  the  activities  of  the  Office  should  be

assessed  after  a  three(cid:220)year  period;

to  combat 

fraud  affecting 

(15)(cid:217)Whereas  this  Regulation  in  no  way  diminishes  the
powers  and  responsibilities  of  the  Member  States  to
take  measures 
the
Communities’  financial  interests;  whereas  the  estab(cid:220)
lishment  of  an  independent  Office  to  conduct  the
external  administrative  investigations  in  this  area
hitherto 
is
by 
accordingly  in  full  compliance  with  the  subsidiarity
principle  laid  down  by  Article  3b  of  the  EC  Treaty;
whereas 
is
establishment  of 
accordingly  likely  to  boost  the  fight  against  fraud
and 
the
Communities’  financial 
is  therefore
compatible  with  the  proportionality  principle;

activities 
interests  and 

the  Commission 

the  Office 

conducted 

affecting 

illegal 

other 

the 

(16)(cid:217)Whereas  the  EC  Treaty  confers  no  powers  for  the
adoption  of 
those
this  Regulation  other 
provided  for  by  Article  235,  and  the  EAEC  Treaty
confers  no  powers  other  than  those  provided  for  by
Article  203,

than 

HAS  ADOPTED  THIS  REGULATION:

Article  1

Establishment  of  the  Office

(˛)(cid:217)OJ  L  292,  15.11.1996,  p.  2.

A  European  Fraud  Investigation  Office  (hereinafter
referred  to  as  "the  Office’)  is  hereby  established.

C  21/12

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Official  Journal  of  the  European  Communities

26.1.1999

Article  2

Objective  and  tasks

conditions  and 
the  procedures
in  accordance  with 
provided  for  by  the  instruments  conferring  on  the  Office
the  power  to  carry  out  external  investigations.

In  order  to  step  up  the  fight  against  fraud  and  any  other
illegal  activity  affecting  the  financial 
interests  of  the
European  Community  and  the  European  Atomic  Energy
Community,  the  Office  shall  assist  the  Commission  and
the  other  institutions  and  bodies  set  up  by,  or  on  the
basis  of,  the  EC  and  EAEC  Treaties  establishing  these
Communities  (hereinafter  referred  to  as  "the  institutions
and  bodies’),  by  conducting  administrative  investigations
in  the  Member  States  and  within  the  institutions  and
bodies.

The  Office  may  also:

(a)(cid:217)support  the  Commission  in  developing  a  concept  for
the  fight  against  fraud  and  any  other  illegal  activity
affecting  the  financial  interests  of  the  Communities;

(b) help  develop  the  necessary  infrastructure;

(c) help  collect  and  analyse  information;

2.(cid:218)(cid:217)Every  institution  or  body  may  confer  on  the  Office
the  task  of  carrying  out  administrative 
investigations
internal  to  that  institution  or  body  (hereinafter:  "internal
investigations’),  by  way  of  a  decision  laying  down  the
conditions  and  rules  under  which  internal  investigations
are  to  be  conducted.

The  institutions  shall  collaborate  on  the  content  of  such
a  decision.

3.(cid:218)(cid:217)The  Office  may  be  asked  to  undertake  investi(cid:220)
gations  in  other  fields.

Article  4

Investigations  procedure

1.(cid:218)(cid:217)The  Director  of  the  Office  shall  be  responsible  for
the  carrying  out  of  the  investigations.

(d) take  part  in  the  Commission’s  cooperation  with  the

Member  States;

2.(cid:218)(cid:217)The  Office’s  officials  shall  exercise  their  powers  on
production  of  a  written  authorisation  showing  their
identity  and  their  position.

(e) give  technical  support  to  the  Commission,  the  other
institutions  and  bodies  and  the  competent  national
authorities.

Article  3

Investigations

1.(cid:218)(cid:217)The  Commission  may,  on  its  own  initiative  or  at
the  request  of  a  Member  State  or  the  Office,  ask  the
Office  to:

(a)(cid:217)carry  out  on(cid:220)the(cid:220)spot  inspections  and  checks  in  the
in  Regulation

for 

Member  States  as  provided 
(Euratom,  EC)  No  2185/96;

3.(cid:218)(cid:217)For  each  action,  the  Office’s  officials  shall  be
equipped  with  a  document  issued  by  the  Director  indi(cid:220)
cating  the  subject  matter  and  purpose  of  the  investi(cid:220)
gation.

4.(cid:218)(cid:217)During  the  on(cid:220)the(cid:220)spot  inspections  and  checks,  the
inspectors  shall  adopt  an  attitude  compatible  with  the
rules  and  practices  governing  the  officials  of  the  Member
State  concerned.

5.(cid:218)(cid:217)The  Member  States 
their
competent  authorities  give  the  necessary  support  to
enable  the  inspectors  to  perform  their  task.

shall  ensure 

that 

(b) carry  out  on(cid:220)the(cid:220)spot 

inspections  and  checks  as
provided  for  by  the  sectoral  rules  referred  to  in
Article  9(2)  of  Regulation 
(EC,  Euratom)  No
2988/95;

(c) take  part  in  the  on(cid:220)the(cid:220)spot  inspections  and  checks
by  the  Commission  in  the  Member  States  referred  to
in  Article  9(1)  of  Regulation  (EC,  Euratom)  No
2988/95.

These  inspections  and  checks,  and  the  participation  in
these  inspections  and  checks,  hereinafter  referred  to  as
"external  investigations’,  shall  be  carried  out  under  the

Article  5

Exchange  of  information

1.(cid:218)(cid:217)The  Commission  and,  if  necessary,  the  other  insti(cid:220)
tutions  and  bodies,  shall,  at  the  request  of  the  Office  or
of  their  own  initiative,  send  the  Office  any  document  or
information  they  hold  which  is  necessary  for  current
investigations.

2.(cid:218)(cid:217)The  Commission  may 
the  Office  any
document  or  information  it  holds  which  is  useful  in  a
general  sense  for  the  fight  against  fraud  or  any  other
illegal  activity  affecting 
financial
interests.

the  Communities’ 

send 

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3.(cid:218)(cid:217)The  Member  States  shall  send  the  Office  any
document  or  information  which  they  consider  useful  to  a
current  investigation.  They  may  also  send  the  Office  any
document  or  information  that  they  consider  useful,  in  a
general  sense,  in  the  fight  against  fraud  or  any  other
illegal  activity  affecting 
financial
interests.

the  Communities’ 

4.(cid:218)(cid:217)Without  prejudice  to  Articles  6  and  7,  the  Office
may  at  any  time,  if  it  considers  it  appropriate,  send
information  obtained  in  the  course  of  external  investi(cid:220)
gations  to  the  Commission  and  to  the  competent  auth(cid:220)
orities  in  the  Member  States  in  question,  and  also  any
information  obtained  in  the  course  of  internal  investi(cid:220)
gations  to  the  institution  or  body  making  the  request  for
the  investigation.  In  the  latter  case,  the  Office  may  also
the
inform  directly 
Member  State  concerned  if  it  considers  this  necessary
given  the  seriousness  of  the  information  obtained.

the  prosecuting  authorities  of 

Article  7

Investigation  report

1.(cid:218)(cid:217)On  completion  of  an  investigation  carried  out  by
the  Office,  the  Office,  led  by  the  Director,  shall  draw  up
a 
the
financial  loss,  if  any,  and  the  findings  of  the  investi(cid:220)
gation.

final  report  specifying 

facts  established, 

the 

2.(cid:218)(cid:217)In  drawing  up  the  final  reports,  account  shall  be
taken  of  the  procedural  requirements  laid  down  in  the
law  of  the  Member  State  concerned.  The
national 
reports  shall  constitute  admissible  evidence  in  adminis(cid:220)
trative  or  judicial  proceedings  of  the  Member  State  in
which  their  use  proves  necessary,  in  the  same  way  and
under  the  same  conditions  as  administrative  reports
drawn  up  by  national  administrative  inspectors.  They
shall  be  subject  to  the  same  evaluation  rules  as  those
applicable  to  administrative  reports  drawn  up  by  national
administrative  inspectors  and  shall  be  of  indentical  value
to  such  reports.

Article  6

Confidentiality  and  data  protection

3.(cid:218)(cid:217)Reports  drawn  up  following  an  external  investi(cid:220)
gation  and  any  useful  related  documents  shall  be  sent  to
the  Commission.

1.(cid:218)(cid:217)Information  obtained  in  the  course  of  external  and
internal  investigations,  in  whatever  form,  shall  be  subject
to  professional  secrecy  and  shall  enjoy  the  protection
given  to  similar  information  by  the  national  law  of  the
Member  State  in  which  it  was  collected  and  by  the
corresponding  provisions  applicable  to  the  Community
institutions.

Such  information  may  not  be  communicated  to  persons
other  than  those  within  the  Community  institutions  or  in
the  Member  States  whose  functions  require  them  to
know  it,  nor  may  it  be  used  by  Community  institutions
for  purposes  other  than  to  ensure  effective  protection  of
the  Communities’ 
in  all  Member
States,  without  the  prior  consent  of  the  Member  State  in
which  the  information  was  gathered  or  of  the  institution
or  body  concerned.

financial 

interests 

2.(cid:218)(cid:217)The  Director  shall  ensure  that  the  inspectors  and
the  other  persons  acting  under  his  authority  observe  the
Community  and  national  provisions  on  the  protection  of
for  by
personal  data, 
Directive  95/46/EC  of  the  European  Parliament  and  of
the  Council(cid:216)(˛).

those  provided 

in  particular 

(˛)(cid:217)OJ  L  281,  23.11.1995,  p.  31.

4.(cid:218)(cid:217)Reports  drawn  up  following  an  internal  investi(cid:220)
gation  and  any  useful  related  documents  shall  be  sent  to
the  institution  or  body  raising  the  request  for  the  investi(cid:220)
gation.

5.(cid:218)(cid:217)The  Commission  or,  if  necessary,  the  institution  or
body  concerned  shall  decide  how  to  follow  up  the  inves(cid:220)
tigation  on  the  basis  of  the  report  drawn  up  by  the
Office.

Article  8

Legal  personality

1.(cid:218)(cid:217)The  Office  shall  have  legal  personality.

2.(cid:218)(cid:217)The  Office  shall  enjoy,  in  each  of  the  Member
States,  the  most  extensive  legal  capacity  accorded  to
legal  persons  under  their  respective  laws.

Article  9

Board  of  Management

1.(cid:218)(cid:217)The  Office  shall  have  a  Board  of  Management
composed  of  nine  members,  as  follows:

(a)(cid:217)three  independent  persons  having  expertise  in  the
the  European
appointed 

field, 

by 

Office’s 
Parliament;

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26.1.1999

(b) three  independent  persons  having  expertise  in  the

Office’s  field,  appointed  by  the  Council;

(c) two  representatives  of  the  Commission;

(d) one  representative  of  the  Court  of  Auditors.

2.(cid:218)(cid:217)The  term  of  office  of  the  members  referred  to  in
paragraph  1(a)  and  (b)  shall  be  three  years.  This  term  of
office  shall  be  renewable.

On  expiry  of  their  term  of  office,  members  shall  remain
in  office  until  their  appointments  are  renewed  or  until
they  are  replaced.

3.(cid:218)(cid:217)Decisions  by  the  Board  of  Management  shall  be
taken  by  a  majority  of  two(cid:220)thirds  of  its  members.

4.(cid:218)(cid:217)The  Board  of  Management 
its
Chairman  from  the  members  referred  to  in  points  (a)
and  (b)  of  paragraph  1.

shall  appoint 

5.(cid:218)(cid:217)The  Board  of  Management  shall  adopt  its  own
rules  of  procedure.

6.(cid:218)(cid:217)At  the  Director’s  request  or  on  its  own  initiative,
the  Board  of  Management  shall  give  its  opinion  to  the
Director  on  the  Office’s  activities,  without,  however,
interfering  with  investigations  in  progress.

7.(cid:218)(cid:217)The  Board  of  Management  shall  adopt  the  annual
report  and  transmit  it  to  the  institutions.

Article  10

Director

1.(cid:218)(cid:217)The  Office  shall  be  headed  by  a  Director  appointed
by  the  Board  of  Management  on  a  proposal  from  the
Commission  for  a  period  of  five  years,  which  shall  be
renewable.

2.(cid:218)(cid:217)The  Director  shall  be  the  legal  representative  of  the
Office.

Article  11

Staff

1.(cid:218)(cid:217)The  Staff  of  the  Office  shall  be  subject  to  the  Rules
and  Regulations  applicable  to  officials  and  other  servants
of  the  European  Communities.

2.(cid:218)(cid:217)The  Director  shall  exercise  in  respect  of  the  staff
the  powers  devolved  upon  the  Appointing  Authority.

The  Board  of  Mangement  shall  exercise  disciplinary
authority  over  the  Director.

3.(cid:218)(cid:217)The  Board  of  Management,  in  agreement  with  the
Commission, 
for
implementing  paragraphs  1  and  2.

rules  necessary 

shall  adopt 

the 

Article  12

Privileges  and  immunities

The  Protocol  on  the  Privileges  and  Immunities  of  the
European  Communities  shall  apply  to  the  Office.

Article  13

Budget

1.(cid:218)(cid:217)Estimates  shall  be  drawn  up  of  all  the  Office’s
revenue  and  expenditure  for  each  financial  year,  which
shall  correspond  to  the  calendar  year,  and  shall  be
entered  in  the  Office’s  budget.

following 

2.(cid:218)(cid:217)By  February  15  of  each  year  at  the  latest,  the
Director  shall  draw  up  the  preliminary  draft  budget  for
the 
financial  year.  The  preliminary  draft
budget  shall  cover  the  operating  expenditure  scheduled
for  the  following  financial  year.  The  Director  shall
submit  the  preliminary  draft,  together  with  an  estab(cid:220)
lishment  plan,  to  the  Board  of  Management.

3.(cid:218)(cid:217)The  revenue  and  expenditure  shown  in  the  budget
shall  be  in  balance.

4.(cid:218)(cid:217)The  Office  shall  be  financed  from  the  general
budget  of  the  European  Communities,  without  prejudice
to  other  resources.

5.(cid:218)(cid:217)The  Office’s  expenditure  shall  include  staff  remun(cid:220)
eration,  administrative  and  infrastructure  expenses  and
operating  expenses.

6.(cid:218)(cid:217)The  Board  of  Management  shall  adopt  the  draft
budget  and  transmit  it  to  the  Commission.  On  this  basis,
the  Commission 
the  corresponding
shall  draw  up 
estimates  in  the  preliminary  draft  general  budget  of  the
European  Communities,  which 
the
Council  pursuant  to  Article  203  of  the  EC  Treaty  and
Article  177  of  the  EAEC  Treaty.

it  places  before 

7.(cid:218)(cid:217)The  Board  of  Management  shall  adopt  the  Office’s
final  budget  before  the  beginning  of  the  financial  year,
adjusting  it  where  necessary  to  the  Community  subsidy
and  the  Office’s  other  resources.

8.(cid:218)(cid:217)The  Director  shall  implement  the  Office’s  budget.

9.(cid:218)(cid:217)Monitoring  to  the  commitment  and  payment  of  all
the  Office’s  expenditure  and  of  the  establishment  and
recovery  of  all  its  revenue  shall  be  carried  out  by  the
Commission’s  Financial  Controller.

26.1.1999

EN

Official  Journal  of  the  European  Communities

C  21/15

10.(cid:218)(cid:217)By  31  March  each  year  at  the  latest,  the  Director
shall  send  the  Commission,  the  Board  of  Management
and  the  Court  of  Auditors  the  accounts  for  all  the
Office’s  revenue  and  expenditure 
in  respect  of  the
preceding  financial  year.

The  Court  of  Auditors  shall  examine  these  accounts  in
accordance  with  Article  188c  of  the  EC  Treaty  and
Article  160c  of  the  EAEC  Treaty.

11.(cid:218)(cid:217)The  Board  of  Management  shall  give  a  discharge
to  the  Director  for  the  implementation  of  the  budget.

12.(cid:218)(cid:217)The  Board  of  Management  shall,  after  consulting
the  Commission  and  the  Court  of  Auditors,  adopt  the
internal  financial  provisions  specifying  in  particular  the
arrangements 
the
Office’s  budget.

for  establishing  and 

implementing 

Article  14

Judicial  review

1.(cid:218)(cid:217)The  Court  of  Justice  of  the  European  Communities
shall  have  jurisdiction  in  actions  brought  against  the
Office  under  the  conditions  provided  for  in  Articles  173
and  175  of  the  EC  Treaty,  without  prejudice  to  the
procedure  provided  for  in  paragraph  2.

The  Office  shall  take  the  necessary  measures  to  comply
with  the  Court’s  judgment.

2.(cid:218)(cid:217)Any  official  or  other  servant  of  the  Communities
may  submit  to  the  Board  of  Management  a  complaint
against  an  act  adversely  affecting  him  committed  by  the
Office  as  part  of  an  internal  investigation.  The  complaint
must  be  lodged  within  three  months  of  the  date  on
which  the  person  concerned  became  aware  of  the  act.

The  Board  of  Management  shall  take  a  decision  on  the
merits  of  the  complaint  within  one  month.  If  at  the  end
of  that  period  no  reply  to  the  request  has  been  received,
this  shall  be  deemed  to  constitute  an  implied  decision
rejecting  it.

implicit,  by  the  Board  of
Any  decision,  explicit  or 
Management  shall  be  subject  to  appeal  under  Article  91
of  the  Staff  Regulations  of  Officials  of  the  European
Communities.

Article  15

Liability

1.(cid:218)(cid:217)The  Office’s  contractual  liability  shall  be  governed
by  the  law  applicable  to  the  contract  in  question.

The  Court  of  Justice  shall  have 
jurisdiction  to  give
judgment  pursuant  to  an  arbitration  clause  contained  in
a  contract  concluded  by  the  Office.

2.(cid:218)(cid:217)In  the  case  of  non(cid:220)contractual  liability,  the  Office
shall,  in  accordance  with  the  general  principles  common
to  the  laws  of  the  Member  States,  make  good  any
damage  caused  by  the  Office  or  its  servants  in  the
performance  of  their  duties.

The  Court  of  Justice  shall  have  jurisdiction  in  disputes
relating  to  compensation  for  any  such  damage.

3.(cid:218)(cid:217)The  personal  liability  of  servants  towards  the  Office
shall  be  governed  by  the  provisions  applying  to  the  staff
of  the  Office.

Article  16

Progress  report

During  the  third  year  following  the  entry  into  force  of
this  Regulation,  the  Commission  shall  transmit  to  the
European  Parliament  and  the  Council  a  progress  report
on  the  Office’s  activities,  together  with  proposals, 
if
appropriate,  to  modify  or  extend  its  tasks.

Article  17

Entry  into  force

This  Regulation  shall  enter 
into  force  on  the  day
following  the  date  of  the  decision  by  the  competent
authorities  on  where  the  seat  of  the  Office  should  be
located.

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

in 

its  entirety  and