Proposal for a Council Decision creating a European Refugee Fund
Date: 1999-12-14
Institutions: European Commission
Subjects: Structural Funds, aid to refugees, return migration, right of asylum, social integration

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 14.12.1999
COM(1999) 686 final

1999/0274 (CNS)

Proposal for a

COUNCIL DECISION

creating a European Refugee Fund

(presented by the Commission)

EXPLANATORY MEMORANDUM

A COMPREHENSIVE APPROACH INVOLVING SOLIDARITY

Since the entry into force of the Amsterdam Treaty, asylum and immigration have been
matters of Community responsibility under the new Title IV of the amended Treaty
establishing the European Community.

As a result, measures relating to the reception and voluntary repatriation of refugees,
displaced persons and asylum-seekers will now be dealt with in an entirely different setting,
which makes it possible for the first time to coordinate them with measures aimed at
promoting the integration of refugees, so as to bring together and give greater coherence to
the various strands of a comprehensive approach, as advocated by the Commission, the
European Parliament and the Member States alike.

Asylum policy forms a whole: there can be no possibility of receiving refugees and displaced
persons in accordance with Member States' international undertakings and their common
humanitarian tradition without:

•

applying eligibility procedures that are accessible, effective and fair and introducing
reception arrangements that guarantee them decent living conditions for the duration of
the procedures,

• making the necessary arrangements for the integration of the refugees in the society of

the host country in accordance with the requirements of the Geneva Convention,

•

taking the necessary measures so that persons who, upon conclusion of the procedures,
are not allowed to remain on the territory of the country where they have sought
protection are returned to their country of origin, in order to safeguard asylum as a
permanent and credible institution.

But the burden borne by individual Member States in this area differs greatly from one to the
next because of the different directions taken by the flows of persons in search of
protection and the uneven distribution of populations of refugees and displaced persons in the
European Union.

The Commission proposal therefore seeks to redress the balance between the efforts of the
Member States in matters of asylum, by creating a system for dividing resources in
proportion to the burden of expenditure on each Member State, while at the same time
encouraging those Member States with the least-developed infrastructure and services for
asylum and refugees to make good the disparities in this area.

the Commission proposal provides an initial

Finally,
response to the call by the
Tampere European Council on 15 and 16 October 1999 for provision to be made for
emergencies arising from a mass influx of refugees, displaced persons or asylum-seekers,
without
the
European Refugee Fund.

jeopardising the long-term measures which are the main objective of

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ACTIONS

To strike a balance in the efforts made by the Member States to receive refugees and
displaced persons and the consequences this entails, Member States should be given support
commensurate with the burden they have to bear in each of the areas identified, while at the
same time placing the Member States with the least developed facilities in a position to
assume their share of the joint effort.

1.

Reception conditions and asylum procedures

The Member States recognise the right of nationals of non-member countries to apply for
refugee status under the Geneva Convention of 28 July 1951 and to explain to the competent
authorities the reasons why it is impossible for them to return to their country of origin. This
right would be meaningless and impossible to exercise effectively if those seeking protection
were not informed of the procedures in operation and had no means of subsistence while
awaiting a decision on their application.

This is why the efforts of the Member States to receive refugees and other persons seeking
international protection in accordance with their international commitments and common
humanitarian traditions presuppose accessible, fair and effective procedures and suitable
reception arrangements.

However, there are variations in the extent and standard of reception arrangements in the
Member States. This encourages some of those applying for the status of refugee either to
choose the Member States which appear to offer the best reception conditions or to move
from one Member State to another. The increase in the number of such secondary movements
exacerbates the burden on those Member States with the most highly developed provisions
and complicates the process of determining the state responsible for examining a request for
asylum presented in one of the Member States of the European Communities.

To remedy this, it is essential that persons intending to seek international protection should
have a real possibility of making their request in the first Member State in which they arrive,
whichever one it is, and that they should be provided with appropriate means of subsistence
during the procedure.

Thus, the actions for which the European Refugee Fund will be able to provide assistance
must relate to the various aspects of these reception provisions (accommodation, access to
legal assistance, etc.) in order to encourage those Member States with the
healthcare,
least-developed provisions to make good the disparities and to facilitate changes in existing
provisions in those Member States experiencing large fluctuations in the volume or nature of
movements of refugees. Finally, in the light of recent experience, the Commission proposes
that the actions introduced in the area of reception of refugees should also benefit displaced
persons.

2.

Integration

The Geneva Convention of 28 July 1951 contains many provisions for refugees relating to
legal situation, conditions of access to paid employment, well-being and administrative
measures, the purpose of which is to aid their integration into the society of the host country.

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People who have had to flee their native country are often unable to take full advantage of the
general measures and programmes aimed at promoting social integration and vocational
training. They have special needs, which may be no more than a need for help to prepare
them for participation in the general programmes that already exist. Member States receiving
refugees are therefore frequently forced to apply pro-active policies to enable such persons to
integrate in the best possible conditions.

Seen in this light, specific measures for refugees, displaced persons and those in need of
international protection must be taken in the Member States and supported by the
Community, in order to achieve the "balance of effort" referred to in Article 63(2)(b) of
the Treaty.

The Commission identifies three areas of action in this proposal for a Decision:

–

provision to meet the immediate requirements that have to be satisfied as soon as people
are admitted to any form of protection;

– measures to help people adjust to the sociocultural situation in the host country;

– measures to foster autonomy,

the people
concerned develop the ability to provide for themselves by their own efforts and cease to
require any assistance.

the criterion for success here being that

Integration measures should be available to all categories of persons enjoying any form of
international protection as soon as their stay in the territory of the Member States acquires a
degree of permanence or stability.

3.

Voluntary repatriation and reintegration

Voluntary return should be the natural outcome of the end of temporary protection for the
majority of beneficiaries. Experience in Kosovo has shown that many displaced persons,
including those granted refugee status, are prepared to return to their country of origin when
conditions permit. However, the people concerned need reliable information. In addition, the
material conditions of life in a country recovering from a conflict mean that they often need
material assistance to prepare for their return or to rebuild their lives in the country of origin.

Persons seeking international protection whose requests are rejected and who cannot obtain
permission to stay on other grounds should in theory leave the territory of the Member States
and return to their own country. However, as the Commission remarked in its 1994
Communication to the Council and the European Parliament on immigration and asylum
policies1, Member States often have difficulty enforcing expulsion orders.

The High Level Group on Asylum and Migration concluded that developing voluntary return
programmes could be a credible and humane alternative to compulsory repatriation, offering
advantages to both the individuals concerned and the Member States, and potentially
attractive to countries of origin wishing to benefit from the efforts the European Union is
prepared to make to promote co-development. This approach was endorsed by the Tampere
European Council, which called for an increase in aid to countries of origin and transit in
order to encourage voluntary return.

1

COM(94) 23 final, 23.2.1994. See in particular paragraphs 111 and 112.

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4.

Other eligible measures

The Commission proposes adding to the three areas of action outlined above the possibility to
set aside a proportion of the available appropriations to support actions of Community
interest or innovative or transnational in nature or to carry out studies or an evaluation of the
measures taken.

5.

Emergency measures

The Commission believes that it should be possible, in a spirit of European solidarity, to
enact emergency measures as quickly as possible in the event of a mass influx of refugees or
displaced persons into the territory of one or more Member States, without this in any way
affecting or jeopardising the implementation of long-term actions. These measures relate to
the basic needs of those arriving under these conditions, i.e. food, shelter and medical care.

The urgency of the situation calls for the decision-making mechanism to be simplified and
for the Commission to be authorised to assess the needs of the Member States affected
that emergency
and to divide the extra resources available among them. The fact
measures are separate from the longer-term measures provided for under
the normal
European Refugee Fund scheme should be reflected in the creation of a separate budget
heading.

PRACTICALITIES

Drawing on the experience of implementing pilot projects and measures funded in the past2,
the Commission is taking advantage of this opportunity to make radical reforms to the
practical aspects of management and implementation.

The first innovation relates to the duration. The Commission is proposing a decision that will
remain in force for five years to allow for multiannual planning that is better suited to the sort
of medium and long-term measures envisaged while guaranteeing the possibility of adapting
the legal frame of reference to changes in the political and institutional environment. Indeed,
it follows from the evaluation of the pilot projects financed during previous years that the
duration is an essential element of the success of the measures and that a medium or long
term prospect can only facilitate the choices of the Member States and of the organisations
implementing projects by allowing real planning. As regards reception, the creation of the
necessary infrastructure requires long term forecasts, while the creation of services intended
for refugees and displaced persons cannot be conceived usefully for a period limited to
twelve months. As regards integration, the independent evaluation report of the measures
implemented by DG Employment and Social Affairs on the basis of the budget heading
B3-4113, carried out by the Berliner Institut für vergleichende Sozialforschung, notes that
“the interviews carried out with project coordinators revealed that one year was generally too
short to realise all the goals and at the same time secure an adequate follow-up. Funding
sustainability is furthermore at a crucial point in terms of overall cost-effectiveness of the
individual projects. In general, pilot projects should be supported for longer periods of time in
order to allow for the creation of follow-up measures and in order to avoid the common
scenario in which projects are ended so early that long-term benefits are unable to come

2

See Commission staff working papers SEC(1988) 1263 and SEC(1999) 1105 for implementation of
measures relating to reception and voluntary return. In the case of pilot schemes for integration, a complete
evaluation of the work carried out is currently under way.

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to fruition.” In addition, as regards voluntary return, the Commission noted in its evaluation
report (SEC(1999) 1105) that several months were often necessary before a person arrived
at a decision to return to his or her country of origin and that reintegration in the country
of origin, which is the guarantee of sustainable repatriation, is better ensured when there
this task should be entrusted to
is a follow-up on the spot, which suggests that
local return-counselling centres,
the lifetime of which should then exceed the usual
12-month period.

The second innovation concerns the arrangements for implementation which, following the
example of the Structural Funds, will be extensively decentralised; responsibility for drafting
multiannual programmes, selecting and administering the actions will
rest with the
Member States. Experience has shown that there is no substitute for physical proximity and
familiarity with the day-to-day practicalities when it comes to both selecting the actions and
ensuring effective monitoring and control of their implementation. This fundamental choice
implies that both the Member States and the Commission should make arrangements for
inspection (and financial control in particular), monitoring and evaluation that are suited to
both the division of responsibilities and the volume of appropriations involved.

COORDINATION AND COMPLEMENTARITY

is important

It
to ensure coherence and complementarity between all European Union
measures in order to avoid duplication and to derive maximum value from the resources
available. In particular, measures taken in the field of integration should take account of
possible synergies with programmes developed under the Structural Funds in matters of
access to employment and the EQUAL programme. Similarly, measures aimed at voluntary
repatriation should be compatible with the action taken by the Union more generally in the
area of development, humanitarian aid and relations with the non-member countries
concerned.

To this end, coordination mechanisms should be introduced at Community and Member State
level, for example to ensure that information is passed on to the various Committees and
other bodies responsible for monitoring and implementing activities with similar or
complementary objectives. The Member States, which are primarily responsible for
implementing the measures covered by the ERF, will also have to ensure coordination at their
level between the different measures and the officials responsible for their implementation.

SUBSIDIARITY AND PROPORTIONALITY

The insertion of the new Title IV on visas, asylum, immigration and other polices related to
free movement of persons into the Treaty establishing the European Community creates a
Community responsibility in these fields. This responsibility must, however, be exercised in
accordance with Article 5 of the Treaty, i.e. if and in so far as action taken at Community
level offers clear advantages, by reason of its scale or effects, over action at Member State
level. The proposal for a decision satisfies these criteria.

1.

Subsidiarity

It is clear that the requirement to promote a balance in the efforts made by the Member States
requires a financial contribution aimed at both relieving the pressure on the Member States
most affected and developing the capacity of the Member States whose asylum infrastructure
and services are inadequate, and presupposes a redistribution at European Union level which
cannot be achieved by the Member States in isolation.

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2.

Proportionality

The decision will make it possible to provide financial support from the European Refugee
Fund to the measures listed in each of the areas of action it refers to, while leaving the
Member States to select the actions and the way in which they are to be carried out under
schemes agreed in conjunction with the Commission. Because the Member States are
responsible for selecting and administering the actions, the use of Community funds must be
subject to clear and uniform rules contained in a Council decision, which is the appropriate
instrument for implementing Community programmes.

COMMENTARY ON THE ARTICLES

Article 1

This Article establishes the European Refugee Fund and describes in general terms the
objective of supporting the efforts of Member States to receive refugees and displaced
persons in order to help achieve a balance in the efforts made by each in this respect.

It stipulates that
five-year transitional period provided for by Article 67 of the Treaty will expire in 2004.

the Fund will operate from 1 January 2000 to 31 December 2004; the

Article 2

This Article contains the description of the various categories of people making up the target
groups which may be concerned in one way or another by the actions covered by the
Decision.

Article 3

This Article lists the three areas of action in which support from the European Refugee Fund
contributes to achieving the objective set in Article 1, namely:

• material reception conditions and eligibility procedures;

•

•

1.

2.

integration of refugees and displaced persons in the society of the host country;

voluntary repatriation of the beneficiaries to their country of origin.

As regards reception conditions for the duration of the procedures and the quality of
the procedures themselves,
the European Refugee Fund supports action by
Member States designed to maintain, develop or adapt infrastructure and services
available for the accommodation of the refugees and displaced persons; supply of
in the form of clothing or food for instance; or social assistance,
material aid,
i.e. information and aid to obtain the benefits which are available; and administrative
assistance in completing the formalities connected with the asylum procedure.

As regards integration, the European Refugee Fund supports action by Member States
concerning the satisfaction of the immediate needs of refugees and displaced persons
by means of assistance in completing the formalities for obtaining accommodation
and in claiming the benefits and allowances to which they are entitled by virtue of
their status and medical and mental-health care; sociocultural adjustment, for example
by teaching the language to as advanced a level as possible, supplying information on

7

values, customs and conventions of behaviour in the host country; helping to acquire
independence (enabling people to provide for themselves), mainly by helping to find a
job by means of career guidance, training, re-training and placements on terms that
take account of the fact that refugees and displaced persons are not necessarily
equipped for the labour market in the host country.

3.

With regard to voluntary repatriation and resettlement in the country of origin of
refugees and displaced persons wishing to return home as a result of a change in
circumstances and persons who drop their request to be granted the status of refugee
or to be granted temporary protection or whose requests are rejected by a negative
final decision,
the European Refugee Fund supports action by Member States
concerning information on the existence of return programmes and on the situation in
the countries of origin, guidance and general and vocational training to enable those
wanting to return to acquire or refresh skills that will be useful to them in their
countries of origin, for instance by means of follow-up on the spot.

Article 4

This Article enables the Commission to use up to 10% of the annual allocation to order or
select projects which it deems to be of particular importance to the Community but which
individual Member States would be unlikely to sponsor. These might be innovatory or
transnational projects or projects of an academic or speculative, rather than immediately
practical, nature. They might involve exchanges of experience or studies – to assess measures
implemented in the Member States, for example, or even technical assistance.

These measures may be financed entirely by the Fund.

Article 5

Under this Article, the European Refugee Fund can be used to support emergency measures
to deal with a sudden and massive influx of refugees or displaced persons in one or more of
the Member States.

Emergency measures fall outside the implementation of long-term measures supported by the
European Refugee Fund and are in addition to them. Their function is to meet the basic
requirements, i.e. shelter, food and healthcare, of people who have had to flee quickly.

Article 6

the decentralised implementation arrangements

This Article describes
inspired by
arrangements for the Structural Funds,3 in which the Member States play an essential role in
accordance with the principle of subsidiarity. Policy guidelines and priorities are arrived at
through dialogue between the Member States and the Commission, on the basis of a
co-financing application drawn up by each Member State. Once the objectives have been set,
the Member States are responsible for implementation of measures designed to achieve them.

3

Council Regulation (EC) No 1260/1999 of 21 June 1999 laying down general provisions on the
Structural Funds, OJ L 161, 26.6.1999, p. 1.

8

Article 7

This Article deals with the structure of the co-financing requests which form the basis for the
dialogue between the Commission and the Member State in question.

Article 8

This Article lists the criteria to be used for selecting projects for support from the Fund.
These form part of the decentralised management system whereby Member States, on the
basis of the programme negotiated with the Commission, are responsible for selecting the
projects best suited to achieving the objectives they have set themselves.

Actions are selected on the basis of a public call for proposals. They can be submitted by
public authorities, educational or research institutions, training bodies, the social partners,
international organisations and NGOs.

Article 9

This Article lays down the system for distributing available resources between the
Member States.

In keeping with the objective laid down by Article 63(2)(b) of the Treaty, resources will be
distributed in proportion to the number of applications for some form of protection registered
by each Member State and the number of people granted refugee status or temporary
protection in the reference period (which, to increase reliability and smooth out temporary
blips, will be the average for the last three years for which figures are available).

The number of applications for protection will be given a 65% weighting, against 35% for the
number of refugees accepted and displaced persons receiving temporary protection. This is
because refugees start out by seeking protection before they are granted refugee status.
Furthermore, most them are entitled to support for the duration of the procedure, which,
given the scope for appeal, can be very long. Lastly, integration measures concern only
recognised refugees and displaced persons. These groups account for only a relatively small
proportion of applicants and, as the integration measures take effect, they are expected to
become gradually less dependent on benefits.

Article 10

This Article sets out the timetable for implementation of the programmes.

The European Refugee Fund is set to run for five years, after which it will have to be adapted
to any changes in the political and institutional environment.

However, to allow for the fact that it is an entirely new arrangement in the field of Justice and
Home Affairs and also that this Decision will probably not enter into force until some time in
2000, it is provided that Member States' planned actions:

– may be revised each year on the initiative of the Member State or the Commission in the

light of the information contained in the annual report;

– must be subject to a mid-term review.

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Article 11

The purpose of the financing from the European Refugee Fund is to facilitate implementation
of national measures by lightening the burden they place on public finances. The Fund should
not replace action by the Member States or enable them to avoid their responsibilities.
Consequently, the Fund may not provide more than 50% of the total budget for any one
action. This proportion may be increased to 75% in Member States which receive support
from the Cohesion Fund, to help compensate for a possible lack of facilities.

Article 12

This Article is modelled on Article 30 of the Structural Fund Regulation referred to above. It
lays down eligibility criteria for expenditure. The Fund may not be used to reimburse the
Member State for past expenditure.

More detailed rules on the nature of eligible expenditure will be adopted by the Commission
after the Committee provided for in Article 19 has been consulted.

Article 13

it will, after
When the Commission approves a Member State's co-financing request,
consulting the Committee provided for
take a decision awarding the
Member State the co-financing it is entitled to in the light of the distribution of resources
stipulated in Article 9 and the amount of eligible expenditure stated in the request.

in Article 19,

Article 14

This Article, modelled on Article 31 of the Structural Fund Regulation, lays down rules for
the commitment of budget resources by the Commission.

Article 15

This Article describes the arrangements for making payments to the relevant authorities.

Article 16

This Article on control arrangements is modelled on Article 38 of the Structural Funds
Regulation referred to above, with certain adjustments. For instance, the amounts involved
are considerably smaller and the operations less complex, so the management and control
system should be simpler. The administrative burden of obtaining support from the Fund
must not be so great as to deter Member States from presenting ambitious national
programmes.

It also lays down the manner in which the Commission can react if a Member State fails to
respect the agreed programme.

Article 17

This Article, which is modelled on Article 39 of the Structural Funds Regulation, specifies
how financial corrections can be made if an agency responsible for undertaking an action
defaults or if a Member State fails to honour its obligations.

10

Article 18

This Article lays down the rules governing monitoring and assessment of actions supported
by the Fund. Organisations responsible for practical implementation of measures are required
to report annually to the relevant authority in the Member State. The Member State, in turn,
must present an annual report to the Commission.

Half-way through the period covered by the Decision and at the end of the period, the
Member State must have an independent evaluation of implementation of the actions carried
out. Up to 1% of the Member State's allocation may be set aside for this purpose.

The Commission is to present two reports to Parliament and the Council, one in the middle of
the period and the second in 2005.

Article 19

The Commission is to be assisted by an advisory committee. The decision on what type
of committee this will be is to be taken in accordance with the rules laid down in
Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise
of implementing powers conferred on the Commission4.

Article 20

Special arrangements apply to implementation of emergency measures:

•

•

•

Support for these measures may be given during the emergency period (no longer than
six months). It may not exceed 80% of the cost of any given measure.

The Member States affected must inform the Commission of their requirements and the
measures they intend to implement.

The Commission will select the measures which best match the criteria laid down by the
Decision and will distribute available resources between the Member State on the basis
of the number of people they have to deal with and the quality of the projects they
present. The Commission’s role as adjudicator will make for speedy decisions and
proportionality in the distribution of resources and selection of measures.

Article 21

This Article provides for exceptional transitional measures to enable projects eligible for
support from the Fund to go ahead in 2000. These measures will also make it possible to
continue with projects funded on the basis of the joint action of 26 April 1999 and
Commission-implemented pilot projects concerning integration of refugees, even though the
Decision will not enter into force until some time in 2000.

Article 22

This Article confirms that the Commission the adoption of implementing measures belongs to
the Commission’s area of responsibility.

4

OJ L 184, 17.7.1999, p. 23.

11

Article 23

This Article makes express provision for a review of the Decision at the end of the five-year
period.

Article 24

Addressees.

12

Proposal for a

COUNCIL DECISION

creating a European Refugee Fund

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 63(2)(b) thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Parliament2,

Having regard to the opinion of the Economic and Social Committee3,

Having regard to the opinion of the Committee of the Regions4,

Whereas:

(1)

(2)

(3)

(4)

The preparation of a common policy on asylum,
including common European
arrangements for asylum is a constituent part of the European Union’s objective of
gradually creating an area of freedom, security and justice open to those who, forced
by circumstances, legitimately seek protection in the European Union.

such a policy should be based on solidarity between
Implementation of
Member States and requires the existence of mechanisms intended to help to
achieve a balance in the efforts made by Member States in receiving refugees
and displaced persons and bearing the consequences of so doing. To that end, a
European Refugee Fund should be established.

It is necessary to support the efforts made by the Member States to grant appropriate
reception conditions to refugees and displaced persons, including fair and effective
asylum procedures, so as to protect the rights of persons requiring international
protection.

The integration of refugees into the society of the country in which they are
established is one of the objectives of the Geneva Convention and, to this end, there
should be support for actions by the Member States intended to promote their social
and economic integration, in so far as it contributes to economic and social cohesion,
the maintenance and strengthening of which is one of the Community’s fundamental
objectives referred to in Articles 2 and 3(1)(k) of the Treaty.

1

2

3

4

OJ C
OJ C
OJ C
OJ C

13

(5)

(6)

(7)

(8)

(9)

It is in the interests of both the Member States and the persons concerned that
refugees and displaced persons who are allowed to stay in the territory of the
Member States are given the opportunity to provide for themselves by working.

Since measures supported by the Structural Funds and other Community measures in
the field of education and vocational training are not in themselves sufficient to
promote such integration, support should be given for special measures to enable
refugees and displaced persons to benefit fully from the programmes which are
organised.

Practical support is needed to create or improve conditions enabling refugees and
displaced persons to take an informed decision to leave the territory of the
Member States and return home, should they so wish.

Practical ways must be found of testing innovatory actions in this field and exchanges
between Member States should be encouraged with a view to identifying and
promoting the most effective practices.

Account should be taken of the experience acquired during implementation of the
Council’s joint actions on the reception and voluntary repatriation of refugees,
displaced persons and asylum-seekers.

(10) As called for by the European Council at

its meeting in Tampere on 15 and
16 October 1999, a financial reserve should be established for the implementation of
emergency measures to provide temporary protection in the event of a mass influx of
refugees.

(11)

(12)

(13)

(14)

It is fair to allocate resources proportionately to the burden on each Member State by
reason of its efforts in receiving refugees and displaced persons.

The support provided by the European Refugee Fund will be more efficient and better
targeted if the co-financing of eligible actions is based on a request from each
Member State taking into account its situation and needs.

In order to speed up and simplify co-financing procedures, the responsibilities of the
Commission should be distinguished from those of the Member States. Provision
should, therefore, be made for the Commission, after examining the Member States’
requests for co-financing, to adopt co-financing decisions, while the Member States
are to assure the management of the actions.

Such decentralised implementation of the actions by the Member States should
provide sufficient guarantees as to the details and quality of implementation, the
results of actions and their evaluation and sound financial management and its
supervision.

(15) One way of ensuring that the action of the European Refugee Fund is effective is

efficient monitoring; the conditions of such monitoring should be set out.

(16) Without prejudice to the Commission’s responsibilities

financial control,
cooperation between the Member States and the Commission in this regard should be
established.

for

14

(17)

(18)

The responsibility of the Member States for the pursuit and correction of irregularities
and infringements, and that of the Commission where the Member States do not
comply with their obligations, should be specified.

The effectiveness and impact of the actions supported by the European Refugee Fund
also depend on the evaluation thereof and the responsibilities of the Member States
and the Commission in this regard, and arrangements to ensure the reliability of
evaluation, should be laid down.

(19) Actions should be evaluated with a view to their mid-term review and assessment of
their impact, and the evaluation process should be incorporated into the monitoring of
the actions.

(20)

(21)

In accordance with Article 2 of Council Decision 1999/468/EC of 28 June 1999
laying down the procedures for the exercise of implementing powers conferred on the
Commission5, the measures required for the implementation of the present Decision
should be adopted by the advisory procedure provided for in Article 3 of that
Decision.

In accordance with the principles of subsidiarity and proportionality as set out in
Article 5 of the Treaty, the objectives of the proposed action, namely to demonstrate
solidarity between Member States by achieving a balance in the efforts made by those
Member States in receiving refugees and displaced persons and bearing the
consequences of so doing, cannot be sufficiently achieved by the Member States and
can therefore, by reason of the scale or impact of the action, be better achieved by the
Community. This Decision confines itself to the minimum required in order to
achieve those objectives and does not go beyond what is necessary for that purpose.

HAS ADOPTED THIS DECISION:

CHAPTER I

OBJECTIVES AND TASKS

Article 1

Establishment and objective of the European Refugee Fund

1.

A European Refugee Fund (hereinafter “the Fund”) shall be established to support and
encourage the efforts made by the Member States in receiving refugees and displaced
persons and bearing the consequences of so doing.

2.

The Fund shall operate from 1 January 2000 to 31 December 2004.

5

OJ L 184, 17.7.1999, p. 23.

15

Article 2

Target groups

For the purposes of this Decision the target groups shall comprise the following categories:

1.

2.

“refugees”, meaning any third-country nationals or stateless persons having the
status defined by the Geneva Convention of 28 July 1951 relating to the Status of
Refugees and permitted to reside as refugees in one of the Member States and,
where appropriate, persons applying to be granted that status;

“displaced persons”, meaning any third-country nationals or stateless persons
benefiting from temporary protection arrangements in a Member State and, where
appropriate, persons applying for such protection.

Article 3

Tasks

1.

To achieve the objective described in Article 1, the Fund shall support Member States'
actions relating to:

(a)

(b)

(c)

conditions for reception of refugees and displaced persons;

integration of refugees and displaced persons;

where appropriate, voluntary repatriation of
those persons; “voluntary
repatriation” means the return of a person to the country of origin, without
compulsion, including where the person concerned is the subject of a decision
withdrawing permission to stay granted when they belonged to one of the
target groups referred to in Article 2.

With regard to the conditions for reception of refugees and displaced persons and
procedures, the actions may concern infrastructure or services for accommodation,
supply of material aid, social assistance or help with administrative formalities.

As regards integration into the society of the Member State of residence of persons
having the status of refugees or benefiting from temporary protection arrangements
and members of their family, actions may be to provide social assistance in areas such
as housing, means of subsistence and healthcare or to enable beneficiaries to adjust to
the society of the Member State or to provide for themselves.

As regards voluntary repatriation of refugees and displaced persons, including persons
from whom this status has been withdrawn or to whom it has been refused or who
have withdrawn their application, provided they have not acquired a new nationality
and have not
the actions may concern
information and advice about voluntary return programmes and the situation in the
country of origin and/or general or vocational training and help in resettlement.

the territory of the Member State,

left

2.

3.

4.

16

Article 4

Community actions

At the Commission’s initiative, up to 10% of the Fund’s annual allocation may be used to
finance innovatory actions or actions of interest to the Community as a whole, separate from
the actions implemented by the Member States, including studies, pilot projects, exchanges of
experience, measures to promote cooperation at Community level and assessment of the
implementation of those measures, and technical assistance.

The Fund may provide 100% of the funding for those actions.

Article 5

Emergency measures

1.

2.

The Fund may also be used to finance emergency measures, separate from and in
addition to the actions referred to in Article 3, to help one or more Member States in
the event of a sudden mass influx of refugees or displaced persons.

In the situation referred to in paragraph 1, eligible emergency measures cover the
following types of action:

(a)

(b)

(c)

(d)

reception and accommodation;

provision of means of subsistence, including food and clothing;

medical, psychological or other assistance;

staff and administration costs incurred as a result of the reception of persons
and implementation of the measures.

CHAPTER II

DETAILED PROVISIONS

Article 6

Implementation

The Member States shall be responsible for implementation of actions supported by the Fund.

To this end, each Member State shall appoint a responsible authority which shall handle all
communication with the Commission. That authority shall be a public administration but
may delegate its responsibility for implementation to another public administration or
non-governmental organisation.

17

Article 7

Requests for co-financing

1.

Member States shall send the Commission, in accordance with the timetable set out in
Article 10, a request for the co-financing of the actions referred to in Article 3 which
describes:

(a)

(b)

(c)

the requirements justifying the implementation of actions eligible for support
from the Fund;

actions planned for and during the period covered by this Decision;

funding from the Member State
organisation(s) involved;

and, where

applicable,

from the

(d)

the system put in place by the Member State to:

(i)

(ii)

(iii)

select actions and ensure the procedure is transparent;

manage, monitor, check and evaluate actions;

encourage coordination between actions and communication between
the people responsible for implementing them on the ground;

(iv)

ensure proper publicity for the Community’s contribution to funding.

The request shall contain, for each of the aspects referred to in the first subparagraph,
sufficiently detailed information to enable the Commission to take a fully informed
decision.

2.

The request referred to in paragraph 1 shall be the subject of concertation with the
Commission.

Article 8

Selection criteria

Member States shall have sole responsibility for the selection of individual actions and for the
financial management and administration of actions supported by the Fund with due respect
for Community policies and the criteria for eligibility.

Following a call for proposals, actions shall be presented by public authorities (national,
research institutions,
regional or
training
establishments,
international organisations or
non-governmental organisations, operating individually or in partnerships with a view to
obtaining funding from the Fund.

local, central or devolved), education or
the social partners, government agencies,

18

The responsible authority shall select actions on the basis of the following criteria:

(a)

(b)

(c)

(d)

(e)

the situation and requirements in the Member State;

the cost-effectiveness and benefit of the expenditure, in view of the number of
persons concerned by the action;

the innovatory nature of the measures and the scope for using the results to
strengthen cooperation between the Member States or enable other Member States to
benefit from experience;

the experience, expertise, reliability and financial contribution from the organisation
applying for funding and any partner organisation;

the extent to which the actions complement other actions funded by the budget of the
European Communities or as part of national programmes.

Furthermore, the responsible authority shall ensure that the actions are based on the principles
of partnership between all those involved and participation, in particular by the beneficiaries
in their conception and implementation, and encourage a multi-dimensional approach
incorporating coordinated action in all relevant areas and taking account of the complexity of
the beneficiaries’ position in the host society.

Article 9

Distribution of resources

Available resources shall be distributed proportionally between the Member States as
follows:

(a)

(b)

65% in proportion to the average number of persons having applied for a form of
international protection registered over the previous three years; and

35% in proportion to the number of persons granted refugee status or temporary
protection over the previous three years.

The reference figures shall be the most recent figures established by the Statistical Office of
the European Communities.

Article 10

Timetable

The actions shall be implemented between 1 January 2000 and 31 December 2004.

The Commission shall provide the Member States by 1 July each year at the latest with an
estimate of the amounts to be allocated to them for the following year from the total amounts
allocated within the framework of the annual budgetary procedure.

The Member States shall present the request for co-financing referred to in Article 7 to the
Commission within two months of the date on which this Decision takes effect.

19

The Commission and the Member State shall adopt the final list of actions accepted by
common accord within three months of submission of the request for co-financing.

Each year, the Commission and the Member State may, on the basis of the annual report
provided for in Article 18, make proposals for amendments to the list or the nature of the
actions.

The Commission and the Member State shall, in any event, by 1 June 2002 at the latest,
revise the list or nature of the actions on the basis of the mid-term evaluation provided for by
Article 18 and shall make the necessary changes by common accord.

CHAPTER III

FINANCIAL PROVISIONS

Article 11

Financing structure

For any given measure, the contribution from the Fund shall not exceed 50% of the total cost
of the measure.

That proportion may be increased to 75% in Member States covered by the Cohesion Fund.

Article 12

Eligibility

1.

2.

Expenditure may not be considered eligible for support from the Fund if it has
for
actually been paid before the date on which the Member State’s request
co-financing is approved by the Commission. That date shall constitute the starting
point for the eligibility of expenditure.

The Commission shall adopt
accordance with the procedure referred to in Article 19(2).

the rules governing eligibility of expenditure in

Article 13

Decision on co-financing from the Fund

After examining the request for co-financing, the Commission shall, in accordance with the
procedure referred to in Article 19(2), adopt the decision on co-financing by the Fund. The
decision shall state the amount allocated to the Member State.

20

Article 14

Budget commitments

Community budget commitments shall be made on the basis of the Commission decision on
co-financing.

Article 15

Payments

1.

2.

Payment by the Commission of the contribution from the Fund shall be made to the
responsible authority in accordance with the corresponding budget commitments.

As soon as the Commission decision on the contribution from the Fund is adopted, an
initial payment, respresenting 50% of the amount, shall be made to the Member State
for the year in question.

An interim payment of up to 30% shall be made when the Member State states that it
has actually spent half of the initial payment.

The balance shall be paid within three months of approval of the accounts submitted
by the Member State and the annual report on implementation of the programme.

CHAPTER IV

CHECKS AND EVALUATION

Article 16

Checks

1.

Without prejudice to the Commission’s responsibility for implementing the general
budget of the European Communities, Member States shall take responsibility in the
first instance for the financial control of the actions. To that end, the measures they
take shall include:

(a)

verifying that management and control arrangements have been set up and are
being implemented in such a way as to ensure that Community funds are being
used efficiently and correctly;

(b)

providing the Commission with a description of these arrangements;

(c)

(d)

ensuring that
Community rules and that
accordance with the principles of sound financial management;

the actions are managed in accordance with the applicable
their disposal are used in

the funds placed at

certifing that the declarations of expenditure presented to the Commission are
accurate and ensuring that
they result from accounting systems based on
verifiable supporting documents;

21

(e)

(f)

(g)

preventing, detecting and correcting irregularities, notifing these to the
in accordance with the rules and keeping the Commission
Commission,
informed of the progress of administrative and legal proceedings;

cooperating with the Commission to ensure that Community funds are used in
accordance with the principle of sound financial management;

recovering any amounts lost as a result of an irregularity detected and, where
appropriate, charging interest on late payments.

2.

The Commission, in its responsibility for the implementation of the general budget of
the European Communities,
shall ensure that Member States have smoothly
functioning management and control systems so that Community funds are efficiently
and correctly used.

To that end, without prejudice to the powers of the Court of Auditors or the checks
carried out by the Member States in accordance with national laws, regulations and
administrative provisions, Commission officials or servants may, in accordance with
arrangements agreed with the Member States in the framework of the cooperation
described in paragraph (1)(f), carry out on-the-spot checks, including sample checks,
on the operations financed by the Fund and on management and control systems with
a minimum of one working day’s notice. The Commission shall give notice to the
Member State concerned with a view to obtaining all
the assistance necessary.
Officials or servants of the Member State concerned may take part in such checks.

The Commission may require the Member State concerned to carry out an on-the-spot
check to verify the correctness of one or more transactions. Commission officials or
servants may take part in such checks.

3.

After completing the necessary verifications,
interim payments in the following situations:

the Commission shall suspend the

(a)

(b)

a Member State is not implementing the actions as agreed in the co-financing
decision; or

all or part of an action justifies neither part nor the whole of the co-financing
from the Fund.

the
In those cases,
Member State submit its comments and, where appropriate, carry out any corrections
within a specified period of time.

the Commission shall,

stating its reasons,

request

that

4.

the end of the period set by the Commission,

if no
At
agreement has been reached and the Member State has not made the corrections and
taking account of any comments made by the Member State, decide within three
months to:

the Commission may,

(a)

reduce the interim payment referred to in Article 15(2); or

(b) make the financial corrections required by cancelling all or part of the

contribution of the European Refugee Fund to the action in question.

22

In the absence of a decision to do either (a) or (b) the interim payments shall
immediately cease to be suspended.

Article 17

Financial corrections

1.

2.

3.

1.

2.

The Member States shall, in the first instance, bear the responsibility for investigating
irregularities, acting upon evidence of any major change affecting the nature or
conditions for the implementation or supervision of an action and making the
financial corrections required.

The Member State shall make the financial corrections required in connection with
the individual or systemic irregularity. The corrections made by the Member State
shall consist in cancelling all or part of the Community contribution. The Community
funds released in this way may be re-used by the Member State for actions in the
same field of action referred to in Article 3, in compliance with the arrangements to
be defined in accordance with the procedure referred to in Article 19(2).

If, after completing the necessary verifications, the Commission concludes that a
Member State has not complied with its obligations under paragraph 1 of this Article,
Article 16(3) and (4) shall apply.

Any sum received unduly and to be recovered shall be repaid to the Commission,
together with interest on account of late payment.

Article 18

Monitoring and evaluation

In each Member State the responsible authority shall take whatever measures are
necessary to monitor and evaluate actions.

To that end, the agreements and contracts it enters into with organisations charged
with implementing the actions shall contain clauses requiring them to present at least
one report a year detailing progress made with regard to implementation of the action
and achievement of the objectives attributed to it.

The responsible authority shall send the Commission each year financial accounts and
a detailed report, on implementation of the actions in accordance with the rules
adopted by the Commission by the procedure referred to in Article 19(2).

Furthermore, the responsible authority shall arrange for:

(a)

(b)

an independent mid-term evaluation to be carried out of the implementation of
the actions, with a view to the revision provided for in Article 10;

an independent evaluation of the implementation and impact of the actions,
after completion of the programme.

23

A sum not exceeding 1% of the Member State's total allocation may be set aside for
this purpose.

The evaluation report shall be attached to the final report.

3.

The Commission shall submit a mid-term report to the European Parliament and the
Council by 31 December 2002 at the latest and a final report by 1 June 2005 at the
latest.

CHAPTER V

THE COMMITTEE

Article 19

The Committee

1.

2.

3.

1.

2.

3.

4.

The Commission shall be assisted by a committee composed of representatives of the
Member States and chaired by the representative of the Commission.

Wherever reference is made to this paragraph, the advisory procedure set out in
Article 3 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) of that
Decision.

The Committee may consider any question relating to this Decision, raised by the
chairman or by a respresentative of a Member State.

CHAPTER VI

SPECIAL PROVISIONS CONCERNING EMERGENCY MEASURES

Article 20

Special provisions concerning emergency measures

Without prejudice to Articles 6 to 19, the provisions of paragraphs 2 to 5 of this
Article shall apply to the implementation of the emergency measures provided for in
Article 5.

Financial assistance from the Fund shall be limited to a period of six months and shall
not exceed 80% of the cost of each measure.

The Member State or Member States affected by a mass influx as referred to in
Article 5(1) shall provide the Commission with a statement of requirements and a plan
for the implementation of the emergency measures, including a description of the
planned measures and the bodies responsible for their implementation.

The Commission shall examine and select the projects submitted by the Member State
or Member States, taking account of the criteria laid down in Article 8.

24

5.

Where
Member States as follows:

appropriate,

available

resources

shall

be

distributed

between

the

(a)

80% shall be distributed on the basis of the number of persons having entered
each Member State as part of the mass influx referred to in Article 5(1); and

(b)

20% shall be distributed on the basis of the quality of the projects put forward.

CHAPTER VII

TRANSITIONAL PROVISIONS

Article 21

Transitional provisions

For implementation of this Decision in the first year, the Commission shall inform the
Member States of the estimated amounts allocated to them within two weeks of the date on
which this Decision takes effect. If the Statistical Office of the European Communities does
not yet have the statistics required by Article 9, the figures used shall be those supplied by the
Member States; in that case the Commission shall adopt, in accordance with the procedure
referred to in Article 19(2),
interpreting the statistics supplied by the
Member States.

the rules for

By way of derogation from Article 12, for the year 2000, expenditure actually paid between
1 January 2000 and approval of the request for co-financing may be eligible for support from
the Fund.

CHAPTER VIII

FINAL PROVISIONS

Article 22

Implementation

1.

2.

The Commission shall be in charge of the implementation of this Decision.

Where necessary, the Commission shall adopt any other provisions required for the
implementation of this Decision in accordance with the procedure referred to in
Article 19(2).

Article 23

Review clause

The Council shall review this Decision on the basis of a proposal from the Commission by
31 December 2004 at the latest.

25

Article 24

Addressees

This Decision is addressed to the Member States.

Done at Brussels,

For the Council
The President

26

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Council Decision creating a European Refugee Fund.

2.

BUDGET HEADING(S) INVOLVED

B5-803 (nomenclature PDB 2000) or B5-801N and B5-811N (EP nomenclature).

3.

LEGAL BASIS

Article 63 of the Treaty establishing the European Communities.

4.

4.1

DESCRIPTION OF OPERATION

General objective

The objective of the Decision is to provide the European Union with an instrument
for providing support under a multiannual programme for action by the
Member States in the following fields:

(a)

reception conditions for refugees and displaced persons, and fair, accessible
and efficient asylum procedures;

(b)

integration of refugees and displaced persons;

(c)

voluntary repatriation and resettlement in the country of origin,

in order to help achieve a balance in the efforts made by Member States in receiving
and in bearing the consequences this entails.

More specifically, the aim is to:

–

–

ensure proper reception conditions for persons applying for the status of refugee
or for temporary protection, for example as regards accommodation, legal advice
and other forms of assistance, and to make asylum procedures fairer, more
accessible and more efficient in order to promote the effective exercise of the
right
to apply for asylum under the Geneva Convention of 28 July 1951
relating to the Status of Refugees, as amended by the New York Protocol of
31 January 1967;

contribute to the integration of refugees and displaced persons in the society of
the Member State of residence, for example by measures to facilitate access to
employment,
the specific factors distinguishing these
categories of foreigners from other categories of migrants and the particular
difficulties they might encounter;

taking into account

27

–

–

–

create the conditions for refugees and displaced persons and also for persons
requesting one of these forms of international protection, including those from
whom one of these classifications has been withdrawn, to return to their country
of origin, by providing both the information they need to take a well-informed
decision and material assistance, for example in the form of preparation for
resettlement in their country of origin;

promote exchanges between the Member States to contribute to the exchange of
best practice;

enable emergency measures to be taken in the event of a sudden mass influx of
refugees or displaced persons into the territory of one or more Member States, to
provide for the immediate needs of the people concerned.

4.2

Period covered and arrangements for renewal

From 1 January 2000 to 31 December 2004; the Council will review the Decision by
31 December 2004, acting on a proposal from the Commission.

5.

5.1

CLASSIFICATION OF EXPENDITURE OR REVENUE

Compulsory/Non-compulsory expenditure

Non-compulsory expenditure.

5.2

Differentiated/Non-differentiated appropriations

Differentiated.

5.3

Type of revenue involved

Not applicable.

6.

TYPE OF EXPENDITURE OR REVENUE

Grant for co-financing with other sources in the public and/or private sector.
However, the funding of operations administered directly by the Commission, on the
basis of that part of the Fund's annual allocation for this purpose, may be up to 100%.

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation (relation between individual and
total costs)

The cost of the actions provided for in the Decision will be calculated on the basis of
the implementation of the pilot programmes administered by the Commission since
1997 to provide practical support for the reception and voluntary repatriation of
refugees, displaced persons and asylum-seekers (budget headings B3-4113, B5-803
and B7-6008) and the integration of refugees (budget heading B3-4113).

28

The total allocation for the three budget headings referred to above was as follows:

1997: EUR 23.75 million

1998: EUR 26.75 million

1999 first phase: EUR 20 million

1999 second phase: budgetary authority currently deciding on a sum expected to be
EUR 15 million.

annual

average

The
around
EUR 28.5 million (assuming an additional allocation of EUR 15 million for the
second phase of 1999). This amount fell far short of what was needed on the ground.

allocation may

estimated

therefore

be

at

As regards aid measures for reception and voluntary repatriation in particular, the
financial assistance requested in 1997 exceeded the allocation available by 30%. This
rose to 45% in 1998 and 850% in 1999 (as a result of the Kosovo crisis). The
Commission estimates that more than half of the requests which could not be
satisfied qualified for Community joint financing.

Experience in 1999 has also shown that the aim of financing "structural" measures in
the area covered by Article 63 of the EC Treaty can be completely undermined by
the sort of mass influx of refugees that occurs in the event of a crisis. In the absence
of a specific budget heading to cater for emergencies, the entire financial allocation
originally earmarked for heading B5-803 was spent on emergency measures for
people who had fled from Kosovo. It is thus essential to have a reserve so that both
emergency needs and structural requirements can be accommodated, as advocated by
the European Council in Tampere on 15 and 16 October 1999.

In the light of the foregoing, and taking into account
the procedure for approving the 2000 budget,
European Refugee Fund has been calculated as follows:

the annual allocation for

the current state of
the

(a)

budget heading B5-810 (Structural measures): EUR 26 million for 2000;

(b)

reserve (B5-811 in the nomenclature proposed by the European Parliament)
(Emergency measures to cope with mass influx of refugees): EUR 10 million
for 2000.

The overall budget for the action and the breakdown of the appropriations over the
period 2001-04 will be determined after the Commission's budgetary orientation
debate for 2001.

7.2

Itemised breakdown of cost

The following breakdown might be envisaged, based on the preparatory actions
carried out in 1997-99 and taking into account the need to retain sufficient funds for
promoting the dissemination of best practice at Community level. In any case, given
the instability of these situations and the differences in the scale of the projects that
might be subsidised, the following table is a provisional estimate of the breakdown
of expenditure mirroring the distribution made in 1997-1999.

29

B5 – 810

Breakdown

Reception

Integration

Voluntary repatriation

Dissemination of best practice

TOTAL

Estimated % of budget

36

36

18

10

100

Commitment appropriations EUR million (at current prices)

Breakdown

Reception

Integration

Voluntary repatriation

Dissemination of best practice

Total

Year n N+1

N+2

N+3

n+4

Total

9.36

9.36

4.68

2.6

26

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

Reserve (or B5 – 811 in nomenclature proposed by the EP)

It is not possible at this stage to give a breakdown of the cost of actions by type of measure.
The typology of actions is limited to emergency measures only, all of which are usually part
of a comprehensive project. In addition, the measures of this type funded in 1999 are still
ongoing and a classification can be made only after their completion.

Commitment appropriations EUR million (at current prices)

Breakdown

Year n

n+1

n+2

n+3

n+4

Total

n+5
and
subs.
years

Total emergency measures

10

p.m.

p.m.

p.m.

p.m.

p.m.

30

7.3

Operational expenditure for studies, experts etc.
the budget

included in Part B of

A maximum of EUR 800 000 per year will be used for technical and administrative
assistance. The purpose will be to ensure effective and practical implementation of the action.
This assistance will be provided to the Commission and to the beneficiaries of the operation
and will not
the preparation, management,
monitoring and evaluation of the programme. Such assistance will be restricted to the duration
of the programme.

involve ordinary public service tasks but

7.4

Schedule of commitment and payment appropriations

B5 – 810

Commitment appropriations EUR million

Year n

n+1

n+2

n+3

n+4

n+5
and
subs.
years

Commitment appropriations

Payment appropriations

26

13

p.m.

p.m.

p.m.

p.m.

0

p.m.

p.m.

p.m.

p.m.

p.m.

Total

p.m.

p.m.

Reserve (B5 – 811 in the nomenclature proposed by the EP)

Commitment appropriations EUR million

Year n

n+1

n+2

n+3

n+4

Total

n+5
and
subs.
years

Commitment appropriations

10

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

Payment appropriations

10

p.m.

p.m.

p.m.

p.m.

p.m.

p.m.

8.

FRAUD PREVENTION MEASURES

– Specific control measures envisaged

The Member States are responsible for selecting actions and for their financial
management and administration; they have prime responsibility for the financial
control of actions. To this end they must comply with the eligibility criteria laid
down in this Decision. The Decision also specifies that they must check the existence
and operation of appropriate management and control systems, a description of
which will be sent to the Commission, must ensure that management complies with
the relevant Community rules and the principles of sound financial management,
must certify the expenditure declarations and ensure that the accounting system relies
on verifiable documentary evidence, must prevent, detect and correct irregularities,
must
initiate the necessary legal proceedings and inform the Commission
accordingly, must cooperate with the Commission and recover amounts lost as a

31

result of irregularities. In addition, the Commission must satisfy itself as to the
existence and proper functioning of the management and control systems in the
Member States and may carry out on-site inspections or ask the Member State
concerned to carry out inspections in which Commission officials or other staff may
take part.

Provision is also made for financial corrections in the event of individual or systemic
shortcomings.

9.

9.1

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Specific and quantified objectives; target population

–

Specific objectives: links with general objective

• Creation or improvement of infrastructure or services,

•

Provision of material assistance to beneficiaries.

– Target population

• Refugees, displaced persons as described in Article 2, and people who

previously belonged to one of these categories.

9.2

Grounds for the operation

– Need for Community financial aid, with particular regard for the principle of

subsidiarity

The establishment of the European Refugee Fund is intended to support and
encourage the efforts made by Member States to receive refugees and displaced
persons and to bear the consequences this entails and,
to
complement national policies for assisting those seeking international protection;
secondly, to promote the development of programmes for the integration of refugees
and other categories of people enjoying such protection; and finally to encourage the
voluntary return of those applying for the status of refugee, particularly when their
application has been rejected, but also, in the case of displaced persons, refugees and
people requiring international protection, when the need for such protection has
ceased. In each of these areas it
is necessary to promote the idea of joint
responsibility and burden-sharing between Member States in the general effort to
assist these people, given that situations can vary considerably.

in the first place,

The need to balance the efforts of the Member States calls for a financial
commitment aimed both at easing the burden on the Member States most severely
affected and at developing the capacity of those Member States whose infrastructure
is inadequate. This implies a redistribution at European Union level that cannot be
achieved by the Member States individually.

32

– Choice of ways and means

* advantages over possible alternatives (comparative advantages)

The only alternative to the arrangements proposed is for the Commission to
administer individual measures and projects directly. Experience of the joint
actions and pilot projects that preceded this Decision suggests that this imposes
a disproportionate administrative burden without maximising efficiency.

Devolving administration to the Member States allows the Commission to
concentrate on general objectives and overall consistency and ensures that the
choice and implementation of individual actions occurs at grassroots level,
taking account of the specific situation in the Member State and the needs to be
met. It will also obviate the need to enlist the services of a technical assistance
bureau in future to select and monitor the actions.

* explanatory reference to similar Community or national operations

* spin-off and multiplier effects expected

The contribution of the European Refugee Fund is confined to 50% of the total
cost of the measures (75% in Member States benefiting from the Cohesion
Fund), with the result that there should be an increase in overall spending to
achieve the Fund's objectives. Experience has also shown that national public
funding often takes over from Community joint financing in the case of actions
which have proved their worth.

The success of eligible projects has a number of spin-off benefits for both the
Member States and the beneficiaries, such as:

- a reduction in the number of hardship cases requiring emergency welfare
assistance and in social exclusion and its consequences for the welfare
budgets of the Member States in the case of refugees, displaced persons and
people requiring international protection,

- a reduction in the number of non-nationals without a legal right of residence
who disappear underground because there is no prospect of legalising their
situation or returning to their country of origin, in the case of people eligible
for voluntary repatriation measures, such as those applying for the status of
refugee whose application has been definitively refused.

– Main factors of uncertainty which could affect the specific results of the operation

• Variation in flows of refugees.

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9.3

Monitoring and evaluation of the operation

– Performance indicators selected

* output indicators (measurement of resources employed)

• Reception and integration: accommodation available (number of beds, standard
of premises), creation of new services or increase in capacity of existing
services, level of occupancy, number of beneficiaries.

• Voluntary repatriation: creation of new services or increase in capacity of
training),

existing services, number of people using services (information,
number of returnees.

*

impact indicators (measurement of performance against objectives)

• Reception:

reduction in number of

secondary movements by refugees

(movement from one Member State to another in search of better conditions).

•

Integration:
concerned.

reduction in rate of social exclusion among the categories

• Voluntary repatriation: increase in the number of returnees, interest of countries

of origin in "co-development" policies.

– Details and frequency of planned evaluations

Bodies responsible for carrying out the measures will report at least annually to the
relevant authority in the Member State.

Annual report by Member States to the Commission.

Independent evaluation of each action in each Member State.

– Assessment of the results obtained (where the operation is to be continued or

renewed)

An interim report on the implementation in 1997 of budget headings B7-6008 and
B5-803 was presented to the European Parliament and the Council on 16 July 1998
(Commission staff working paper SEC(1998) 1263).

A second evaluation of results achieved by projects funded in 1997 under the same
budget headings was presented to the European Parliament on 13 July 1999
(Commission staff working paper SEC(1999) 1105.

The conclusions of this evaluation may be summarised as follows:

(a) Community joint financing acted as a catalyst, promoting concerted action at
national level, particularly in Member States that until recently had had little
experience of accommodating refugees and where the general reception
structures urgently need to be improved.

34

(b) Better coordination in implementing measures is needed at two levels: first
between national governments and the Commission, to harmonise existing
European and national programmes,
and secondly between national
administrations and NGOs to ensure that their projects form part of a concerted
strategy approved by all parties.

(c) Community funding should focus more particularly on creating infrastructures
providing counselling for returnees, on specific training projects, on improving
reception conditions and on making asylum procedures more accessible.
On-the- spot monitoring of people voluntarily repatriated would be particularly
valuable.

(d) Demand for funding far exceeds the available budget, and a new evaluation of
the impact of funding relative to the scale of the problems to be solved must be
carried out.

The evaluation of projects funded in 1997 under budget heading B3-4113 has been
entrusted to outside consultants. The report is currently being finalised and should be
presented to the European Parliament and the Council before the end of 1999.

The projects funded in 1998 and 1999 are currently being implemented. The
Commission will evaluate the results when it has received the final reports
(first quarter of 2000 for projects funded in 1998 and for emergency aid
measures funded in 1999). It also intends to commission an independent evaluation
(procedure for awarding the contract currently under way).

In any event, one of the lessons that can be learned from the implementation of the
pilot projects is that a duration of one year is unsuited to the medium or long term
nature of the majority of the projects and that both Member States and the
implementing organisations need longer term visibility to ensure coherent planning
of their actions.

10.

ADMINISTRATIVE EXPENDITURE (SECTION III, PART A OF THE BUDGET)

the necessary administrative resources will depend on the
Actual mobilisation of
Commission’s annual decision on the allocation of resources, taking into account the number
of staff and additional amounts authorised by the budgetary authority.

35

10.1

Effect on the number of posts

Type of post

Staff to be assigned to managing
the operation

Source

Duration

Permanent
posts

Temporary
posts

Officials
temporary staff

or

A
B
C

Other resources

Total

3
2
2

__

7

__

__

Additional
resources

Existing
resources in
the DG or
department
concerned

2
1
1

__

4

1
1
1

__

3

Additional resources should be available from the year 2000.

10.2

Overall financial impact of additional human resources

2000-04

__

2000-04

EUR

Amounts

Method of calculation

Officials

EUR 3 780 000

7 man/years x EUR 108 000 per man/year = EUR 3 780 000.
Titles A1, A2, A4, A5 and A7.

Temporary staff

Other resources
(indicate budget
heading)

__

__

__

__

Total

EUR 3 780 000

The amounts are the total cost of additional posts for the entire duration of the operation, if
this duration is predetermined, or for 12 months if it is indefinite.

10.3

Increase in other administrative expenditure as a result of the operation

EUR

Budget heading

Amounts

Method of calculation

Meetings - A7031

3 meetings of advisory committee per year =

Committees
(compulsory)

EUR 146 250

3 meetings x 15 representatives x EUR 650 per representative x
5 years = EUR 146 250

Total

EUR 146 250

__

Expenditure for Title A-7 shown at 10.3 will be covered by the DG's share of the
overall allocation.

36