Reforming the Commission - A White Paper - Part I
Date: 2000-03-01
Institutions: European Commission
Subjects: European Commission, action programme, administration of the Institutions, financial management, institutional reform

COMMISSION OF THE EUROPEAN COMMUNITIES 

*** 
* 
* 
* 
* 
* 
* 
*** 

Brussels,  1.3.2000 
COM(2000) 200 final 

VOLUME I 

REFORMING THE COMMISSION 

A  White  Paper- Part I 

(presented by the Commission) 

TABLE OF CONTENTS 

REFORMING THE COMMISSION 

INTRODUCTION BY THE MEMBERS OF THE COMMISSION ............................................ 3 

I  MEETING Tl-IE CHALLENGE  .................................................................................................. 5 

II  A  CUL11JRE BASED ON SERVICE ........................................................................................... ? 

Ill 

PRIORITY SETTING,  ALLOCATION AND EFFICIENT USE OF RESOURCES ................................ 8 

Ill.]  Activity-Based Management:  a tool for delivering policy priorities ............................ 9 

JJI.2  Developing an externalisation policy ........................................................................ 10 

1/l.3 . Perfomzance-oriented ·working methods .................................................................... 11 

IV 

HUMAN RESOURCES DEVELOPMENT .............................................................................. 12 

IV. l  Management ............................................................................................................. 12 

IV.2  Career developnzent .................................................................................................. 13 

/V.3  Non pemzanent staff ................................................................................................. . 16 

IV.4  The  working environment and equal opportunities .................................................... 17 

IV.5  Discipline .................................................................... .' ............................................. 17 

IV.6  Wlzistleblowing .......................................................................................................... 18 

IV. 7  Transparent Staff Regulations ................................................................................... 18 

IV.8  Other issues .............................................................................................................. 19 

V  AUDIT,  FINANCIAL MANAGEMENT AND CONTROL ............................................................ 19 

V.1  Defining the  responsibilities of authorising officers and line managers ..................... 20 

V.2  Overhauling financial management,  control and audit .............................................. 21 

V.3  Protecting the  Community's financial interests ......................................................... 23 

VI 

DELIVERING AND  SUSTAINING REFORM .......................................................................... 24 

VII  CONCLUSION ................................................................................................................ 26 

ANNEXES 

ANNEX  1:  KEY REFORM ISSUES 

ANNEX 2:  Tl-IE CONSULTATION PROCESS 

ANNEX 3:  GLOSSARY 

FIGURE I:  OVERVIEW OF THE NEW STRUC11JRE FOR FINANCIAL MANAGEMENT, 

CONTROL AND  INTERNAL AUDIT 

ANNEX 4:  TIMETABLE FOR ACTION PLAN 

ACTION PLAN ( SEE SEP ARA TE DOCUMENT) 

2 

LVTRODUCTION BY THE MEMBERS OF THE COMMISSION 

A  strong Europe  needs  a  strong  Commission.  This  motivates  our proposals  to  the  IGC  and  our 
five  year objectives.  It  also  means that  we  must equip ourselves with a  modem organisation and 
the resources to execute the tasks assigned to  us  by the Treaties. 

The  challenges  of globalisation  and  future  enlargement  require  better  governance  at  all  levels, 
including the  EU.  All  political  institutions  in  Europe must  rise  to this  challenge  and  sq  must  the 
Commission.  Reform is,  therefore, an essential pre-condition for realising our vision for Europe. 

That is  why, as a College and as  individuals, we are committed to the  Reform Programme set out 
in  this  White Paper.  We  are  not alone  in  that; the  staff of the Institution,  who deserve  tribute  for 
their  commitment  to  the  European  ideal  and  their  current  and  past  achievements,  have  made 
clear  their  wish  to  work  with  us  to  achieve  real  progress.  The  European  Council  and  the 
European Parliament have expressed clear support for the modernisation of our Institution. 

We  want  the  Commission  to  have  a  public  administration  that  excels  so  that  it  can  continue  to 
fulfil  its tasks under the Treaties with maximum effectiveness.  The citizens of the  Union deserve 
no  less,  the  staff of the  Commission  want  to  provide  no  less.  To  fulfil  that  objective,  we  must 
keep the best of the  past  and combine it  with new  systems designed to  face  the challenges of the 
future.  The  world  around  us  is  changing  fast.  The  Commission  itself,  therefore,  needs  to  be 
independent,  accountable,  efficient  and  transparent,  and  guided  by  the  highest  standards  of 
responsibility. 

This White Paper sets out an  ambitious programme for achieving that.  The hard work starts now 
as we further develop these  ideas and implement them. 

The  founders  of the  Communities  were  the  profound  modernisers  of their  day.  We  share  their 
ideals  and  their  sense  of  determination.  That  is  why  we  want  to  honour  their  legacy  by 
modernising the Commission they built to serve the citizens of Europe. 

3 

~~ --

Romano PROD! 

tl1~~ 4,  ~,.;~ 
,~::i:r VERHEUGEN 
(2(?~ 

Christopher PATTEN 

\ 

Pascal LAMY 

~~ 

M a r io~  

~rc/4w,-
1ranz FISCHLER 

.I 
_!1.rzu-~-·(,.,~  ~-<. 

·' 

,1 

David BYRNE 

Michel BARNIE 

_____..---•---•w  .,•-••- -• ••-• 

, 

~~'-~ ------

Erkki LIIKANEN 

Philippe BUSQUIN 

Pedro SOLBES 

. --
: ~ X-tJi/J4'\ 

/. 

Poul NIELSON 

Antonio VITORINO 

~--l 

j_ 

~r:~~wlo--'-IP_O_U~LO-U 

4 

I 

MEETING  THE CHALLENGE 

The  Role of the  Commission 

The  Treaty of Rome  assigned  a  special  role  and  responsibility  to  the  European  Commission  in 
the  newly created European Community.  It  was established to  act  impartially in  the  interests of 
the European Community as  a whole  and to  act  as  guardian of the  founding  Treaties,  notably  by 
exercising  its  right  of legislative  initiative;  controlling  Member  States'  respect  of Community 
law;  negotiating  commercial  agreements  on  behalf  of  the  Community,  implementing  the 
common policies and ensuring that competition in  the Community was not distorted. 

Since  then  much  has  changed.  The  Community  of six  Member States  has  become  a  Union  of 
fifteen,  with  further enlargement on the  horizon.  The Commission has been an engine of change 
in  the transformation from customs union to economic and then political union.  Its achievements 
have  been  substantial,  providing  much-needed  vision  in 
the  move  towards  . a  European 
integration  which  serves  the  interests  of the  Union  and  meets  the  aspirations  of its  citizens.  In 
addition to the important economic  landmarks of a single  market  and now a common currency,  it 
has  laid  the  foundations  for  a  cohesive  Europe  built  on  solidarity  between  its  people  and  its· 
regions.  Along  the  way,  many  managerial tasks  have  been  attributed to  the  Commission  by the 
Council and the European Parliament.  The societies and economies of the European Union have 
themselves changed significantly. 

One  thing  is  constant.  A  strong,  independent  and  effective  Commission  is  essential  to  the 
functioning  of the  European  Union  as  a whole  and its  standing  in  the  world.  Fulfilling  the  tasks 
established  by  the  Treaties  requires  substantial  improvement  in  structures  and  in  systems. 
Working practices, conventions and obligations that  have  accumulated over decades now  inhibit 
the  Commission's  effectiveness.  Administrative  Reform  will  help  the  Commission  to  fulfil  its 
institutional  role  as  the  motor of European  integration.  It  is  thus  a  political  project  of central 
importance for the European Union. 

The  Prodi  Commission  has  made  the  strategic  decision  to  focus  more  on  core functions  such  as 
policy  conception,  political  initiative  and  enforcing  Community  law.  This  approach  implies 
building  new  forms  of partnership  between  the  different  levels  of governance  in  Europe .and 
should  allow  the  Commission  to  better  reach  its  key  policy  objectives  set  for  the  period  2000-
2005: 

•  Promoting  new  forms  of European  governance  by  giving  people  a  greater  say  in  the  way 
Europe  is  run  and  making  the  European  Institutions  work  more  transparently  and  effectively. 
To this end, the Commission will adopt a White Paper on Governance shortly. 

•  A stable and enlarged Europe with a stronger voice  in  the world; 

•  A new  economic and social agenda to  modernise our economy for  the  digital  age  in  a  manner 

that promotes employment and sustainable development; 

•  Support  a  better  quality  of life  by  giving  effective  answers  to  issues  which  affect  the  daily 

lives of our citizens. 

· 

However,  nowadays,  almost  half of the  Commission  officials  are  fully  occupied  in  executive 
tasks,  notably  in  managing  programmes  and  projects  and  directly controlling  the  latter.  This  is 
not  an  efficient  use  of scarce  resources.  More  importantly,  it  detracts  from  the  Commission's 
role as defined in  the Treaties and the Prodi Commission's five  year priorities. 

Against  this  background,  this  Commission  has  recently  launched  an  overall  assessment  of its 
activities  and resources.  The  objective  is  to  concentrate  activities  on  its  core  policy  objectives. 
The  Commission  will  therefore  identify  activities  which  can  be  stopped  because  they  are  not 
priorities with sufficient value-added at  European level.  In addition, resources will  need to be  re-

5 

allocated within and across Commission departments on  an  unprecedented scale.  As  part of this 
the  Commission  will  identify  the  activities  which  could  be  more  usefully  and  efficiently 
executed  by  other  bodies,  where  necessary,  under  the  control  of the  Commission.  Together. 
these  projects  will  enable  the  Commission  to  focus  better on  its  core  functions.  By  September 
2000, the Commission will  have completed a comprehensive assessment of its current activities. 

The  Commission  will  ~hen  be  in  a  position  to  assess  accurately  whether  its  resources  are 
commensurate  with  its  tasks.  If they  are  proven  not  to  be,  additional  resources  will  have  to  be 
made available.  If such resources are  not  forthcoming,  the  Commission will  need to discontinue 
tasks  and  all  Institutions  w1ll  need  to  face  up  to  the  choices  honestly.  The  Commission  will 
report  the  results  of this  assessment  to  the  Council  and  the  European  Parliament  in  September 
2000 and make the necessary proposals. 

In this context,  it  is  clear that to  be  effective,  the  Commission  also  needs  optimal  structures  and 
systems  for  the  deployment  of its  resources.  This  White  Paper therefore  sets  out  a  programme 
for  a  fundamental  review  of  working  practices,  the  programming  of  activities  and  the 
management of human and financial  resources.  Obviously,  the  Commission's political  priorities 
in  no  way absolve it  of responsibility to meet the  highest  standards of effectiveness and  integrity 
in  the  handling  of public  money.  A  reformed system of financial  control will  allow  it  to  do  so. 
~h_e  events  of  1999,  including  the  resignation  of  the  College  of  Commissioners,  graphically 
demonstrated this need. 

Making reform a reality 

Upon taking office, the Prodi Commission immediately embarked on preparing  a  programme  of 
Reform.  In doing so,  it  could draw on the two reports of the  Committee of Independent Experts 
and  a  series  of  internal  analyses,  notably  the  Williamson  report  and  the  DECODE  exercise, 
which provided essential starting points for the present  Reform.  The SEM 2000 and  MAP 2000 
programmes  have  also  provided  useful  experience.  However,  the  scope  and  ambition  of the 
Reform programme far exceeds that of any previous exercise. 

On  this  basis,  the  Commission  published  a  consultative  document  on  18  January  for  detailed 
discussion on the proposed Reform strategy within  the Commission and with the  other European 
Institutions.  The degree to  which Commission staff participated individually and collectively in 
the  consultation exercise  was  unprecedented.  It  manifested  the  strong  interest  of staff,  and  the 
overwhelming majority of responses showed the clear commitment of staff to the process.  Those 
responses were highly constructive and they have  led to significant modifications in  the proposed 
approach (See  Annex 2).  The European Parliament's resolution of 19 January on the Committee 
of  Independent  Expert's  Second  Report  strongly  supported  the  approach  proposed  in  the 
Consultative Document and provided an  important  input  to this Reform.  Following on  from the 
conclusions  of the  European  Council  in  Helsinki,  the  Council  too  adopted  conclusions  on  the 
proposed approach on  14 February "warmly welcoming" the approach. 

Following  this  intensive  consultation  exercise,  the  Commission  now  proposes  a  strategy  with 
three related themes that are reflected in  the structure of this document: 

•  Reform  of  the  way  political  priorities  are  set  and  resources  allocated.  New  policy-driven 
decision-taking  mechanisms  will  ensure  that  activities  undertaken  by  the  Commission  are 
carried  out  with  the  necessary  human,  administrative,  IT  and  financial  resources.  The 
evaluation of results will  become a routine part of management activities. 

•  Important changes to  human  resources policy,  placing a  premium on performance, continuous 
training and quality of management, as  well as improving recruitment and career development. 
These changes will  also  place  an  emphasis on  improving  the  working  environment  and  equal 
opportunities,  as  well  as  the  evaluation  of management  and staff,  and will  enable  disciplinary 
matters or cases of under-performance to be dealt  with properly and fairly. 

6 

•  An  overhaul  of financial  management,  empowering  each  department  to  establish  an  effective 
internal control system appropriate  to its  own needs.  In  doing  so,  departments  will  be  able  to 
draw  on  the  advice  of the  Commission's  specialist  services.  Reform  is  predicated  upon  a 
precise  definition  of the  responsibilities  of each  actor,  and  upon  regular  checks  by  the  new 
Internal Audit Service on the quality and reliability of each internal control system. 

The Reform is  backed by  an  Action  Plan  set  out  in  Part  II  of the  White  Paper.  The programme 
runs  up  to  the  second  half of 2002  and  a  full  review  will  be  published  in  December  2002  and 
transmitted to the other institutions.  Regular monitoring reports  will  be  made to the Commission 
throughout  the  period  of the  programme.  These  reports  will  deal  not  only  with  the  delivery  of 
the  measures  set  out  in  the  Action  Plan  but  also  their  qualitative  impact  as  measured  by  staff 
feedback. 

Some  of the  Reform' s  effects  will  be  visible  in  the  near  future.  Others  will  take  longer  to  be 
fully  evident  because  certain  meqsures  need  changes  in  law  to  be  adopted  by  the  European 
Parliament  and  the  Council.  This  ambitious  timetable  can,  therefore,  be  realised  only  with  the 
full  participation  of  all  European  fostitutions.  All  institutions  share  the  need  for  reform  to 
succeed.  And  they  all  have  a  shared  interest  in  the  benefits  it  will  bring  -
for  example 
improvements  in  the  way external  aid  is  managed  brought  about  through  the  application  of the 
reform will increase the European Union's standing in the world. 

Reform  requires  technical  change.  Describing  this  unavoidably  means  using  technical  terms  -
jargon.  This  should  not  obscure  the  radical  nature  of the  proposals  put  forward,  to  which  the 
Commission is  fully committed.  A glossary of key terms and acronyms is annexed (Annex 3). 

]] 

A  CULTURE BASED ON SERVICE 

Reform must  better equip  the  Commission to  carr:1  out the  tasks  given  to  it  in  the  Treaties  and, 
thereby,  serve  the  European  Union.  In  line  with  the  tenets  of good  governance,  the  Reform  is 
based  on  the  following  key  principles: 
independence,  responsibility,  accountability,  efficiency 
and  transparency.  There  is  nothing  new  about  these  principles  or  about  the  desire  of  the 
Commission to  implement  them.  However,  by  underpinning  the  Reform,  they can  now  provide 
an explicit basis for a culture based on service: 

Independence 

The  original  and  essential  source  of  the  success  of  European  Integration  is  that  the  EU' s 
executive  body,  the  Commission,  is  supranational  and  independent  from  national,  sectoral  or 
other influences.  This is  at the heart of its ability to advance the  interests of the European Union. 
For  Commissioners  and  individual  officials,  it  means  that  they  shall  neither  seek  nor  take 
instructions from any government or from any other body.  Similarly, Member States should not 
seek to influence Members and staff of the Commission in  the performance of their tasks. 

Responsibility 

Responsibility  applies  at  all 
levels,  starting  with  the  College  when  it  defines  what  the 
Commission  will  do  and. how.  Political  responsibility  lies  with  each  Commissioner  and, 
collectively,  with  the  College,  whereas  day-to-day  management  responsibilities  rest  with  the 
Directors  General.  A  clear  definition  of tasks,' both  for  departments  and  for  individuals,  will 
reduce  ambiguity about who  is  responsible  for  what.  Each Commission official  should  be  clear 
about his or her responsibilities. 

Accountability 

Accountability goes hand in  hand with the exercise of responsibility.  The Commission is  always 
accountable  for  its  actions.  This  is  expressed  in  different  ways:  for  example,  the  Commission 
reports to  the  Council and  the  Parliament  on  its  activities.  But accountability goes  further  than 

7 

that:  exercising good stewardship of the  variety of resources available to the  Commission  means 
ensuring  they  are  used  efficiently  and  effectively. 
It  applies  within  the  Commission  too,  and 
relies  on  a  culture  of  co-operation  between  staff  and  between  departments  which  must  be 
strengthened. 

Efficiency 

All European Institutions are  faced  with  the challenge of ensuring  maximum results  with  limited 
resources.  To  achieve  this,  it  is  essential  to  improve  procedures,  both  internal  ones  and  those 
related  to  the  way  the  Commission  works  with  other  Institutions,  Member  States  and  citizens. 
Simplification  has  an  important  role  to  play  since  simpler  procedures  are  easier  to  understand 
and so are more likely to be effective.  Decentralisation too can increase efficiency and,  linked to 
a clear allocation of responsibility,  will empower officials to exercise their own initiative. 

Transparency 

those  to  whom  it 

The openness of an administration is  an essential sign of its confidence and trust  in  its  employees 
Transparency  within  the  Commission's  own 
and  in 
administration  is  a  vital  prerequisite  for the  greater openness towards the  outside  world  required 
in  the  Treaty.  This  means  transparency  internally  in  terms  of communicating  effectively  at  all 
levels,  showing  receptiveness  to  new  ideas  and  taking  a  positive  attitude  to  criticism;  and 
externally as an organisation fully open to public scrutiny. 

is  accountable. 

**** 

Whilst  the  whole  reform  process  will  contribute  to  developing  this  culture,  there  are  also  a 
number of specific actions of particular importance.  For example, the establishment of a code of 
conduct  for  relations  with  the  European  Parliament  will  enhance  efficiency  by  facilitating  co 
operation  between  the  Commission  and  the  European  Parliament.  . New  rules  to  enhance  the 
public's  aGcess  to  documents  of Community  Institutions  will  further  transparency,  in  line  with 
the  new  provisions  in  the  Amsterdam Treaty.  It  is  important  that  measures  are  taken  to  ensure 
that monies owed by the Commission are paid promptly, in  line with good practice. 

The measures proposed in  this Chapter are detailed in  Chapter II of the Action Plan  in  Part I I 
of the  White Paper: Actions 1-11 

III 

PRIORITY SETTING,  ALLOCATION AND EFFICIENT USE OF RESOURCES 

The Commission needs a  more effective  method for setting its  priorities and allocating  resources 
to  them. 
Its  limited  human  resources  have  become  too  thinly  spread  across  a  wide  range  of 
activities  and  tasks,  thus  damaging  its  effectiveness  and  credibility.  We  need  to  re-centre  the 
Commission on its core activities and political objectives. 

Resources  have  not generally  been  linked  to  priorities  for two  reasons.  First,  the  Commission's 
own decisions on activities  have  generally been  taken  separately  from  those on  the  allocation  of 
resources. 
Second,  the  Council  and  the  Parliament  have  given  additional  tasks  without 
approving  extra  resources.  Moreover,  the  prevailing  management  culture  emphasises  control 
rather  than  objectives.  The  fact  that  results  and  responsibilities  are  not  always  adequately 
defined or assigned further compounds the problem. 

As explained above,  the Commission will  address  the  problems  inherited  from  the  past  through 
an overall assessment of priorities, activities and resources to be completed by September 2000. 

8 

However, that can only  be  a start.  These  issues  need to  be  addressed on  a more continuous basis 
within  a rigorous  framework  that focuses  on  results  and efficiency.  There are  three  key areas of 
action  : 

•  The establishment of priorities,  including negative priorities,  at every level of the Commission. 

The adoption of new  priorities necessitates a rigorous re-evaluation of existing priorities. 

•  Striking a better balance  between internal and external management of activities. 

•  Promoting better working  methods. 

//1.1 

Activity-Based Management:  a tool for delivering policy priorities 

The  Commission  needs  to  focus  its  management  on  obtaining  results  on  its  policy  priorities. 
These  include  core activities  and new  policy priorities  and will  have  to take obligations  flowing 
from  the  Treaty  and  international  agreements  into  account.  To  this  end  the  Commission  will 
introduce  a  system of Activity-Based Management.  This  system aims  at  taking  decisions  about 
policy  priorities  and  the  corresponding  resources  together,  at  every  level  in  the  organisation. 
This  allows  the  resources  to  be  allocated  to  policy  priorities  and,  conversely,  decisions  about 
policy priorities to  be  fully  informed by the related resources requirements. 

This will  promote efficiency because decisions  on  priorities,  policy objectives and activities will 
be  matched  with  decisions  allocating  human,  administrative,  IT  and  financial  resources.  It  will 
allow  responsibilities  to be  assigned and delegated more  clearly,  including  greater flexibility  for 
managers in spending defined budgets.  Finally,  it  will give  managers at all  levels unprecedented 
access to  information that is  currently widely scattered and presented in  widely differing formats. 
More  streamlined  reporting  to  individual  Commissioners  and  the  College  by  individual 
departments  and  by  the  College  to  the  European  Parliament  and  the  Council  should  result, 
thereby significantly improving transparency at the Commission. 

The  Commission  aims  at  making  Activity-Based  Management  (ABM)  fully  operational 
throughout  the  Commission  by  July  2002.  To  do  this  a  number  of administrative  changes  will 
have  to  be  introduced,  including  the  development  of an  informatics  support  system  (Integrated 
Resources  Management  System),  that  are  set  out  in  Part  II  of this  White  Paper  (Action  Plan, 
Chapter III). 

A  key  feature  of the  system  is  that  the  planning  of Commission  activities  and  the  use  of  its 
resources  will  become  _much  more  policy-driven.  To  this  end  a  Strategic  Planning  and 
Programming function  will  be  set  up  in  the Secretariat-General in  July 2000 to assist the  College 
in  taking  decisions  on  policy  priorities  and  the  allocation  of resources  as  well  as  to  promote 
performance  management throughout the Commission. 

The  starting point of this  new  process  is  a  set  of clear policy orientations issued by the  Strategic 
Planning  and  Programming  function  under  the  authority  of  the  President,  following  an 
orientation debate in  the College. 

from 

input 

the  Commission  departments, 

Following 
the 
establishment  by  the  College  of  an  annual  policy  strategy  that  sets  out  policy  objectives, 
proposed policies  and  the  matching  human  and financial  resources  by policy area  for  the  whole 
Commission  (i.e.  roughly  by  Commission  Department).  The  policy  strategy  will  be  the 
Commission's  main  instrument  for  deciding  on  positive  and  - equally  importantly  - negative 
priorities.  The  strategy wi 11  be  discussed with  the  Council  and  Parliament  and  will  be  the  main 
driver  of  the  budgetary  process  including  guidelines  for  establishing  the  Preliminary  Draft 
Budget, in  which  it  will  be  further detailed. 

this,  subsequently, 

leads 

to 

The  policy  strategy  forms.  the  basis  of  the  work  programme  of  the  Commission  and  its 
departments  who  are  charged with  implementing the  policy priorities  and  with  translating  these 

9 

to  the  level  of individual  officials'  work  programmes. 
priorities will directly determine each of its officials'  tasks. 

In  this  way,  the  Commission's  policy 

Naturally,  the Commission will  need  to  be  able  to  adapt  its  priorities  flexibly  during  the  year  fo 
cope with  unforeseen events.  Account will,  therefore,  have to  be  taken  of the  possibility to  make 
fast-track adjustments of the policy strategy. 

Better monitoring  and evaluation  to properly  assess  the  effectiveness  and costs of activities  will 
also  be  introduced.  This will provide essential feedhack  into the  process and  help  identify those 
activities that should be considered negative priorities.  Reporting should also  be  streamlined.  An 
Annual Activity Report produced by each DG will  survey the  monitoring  results  for  its  activities 
and  assess  the  quality  of service  provided.  Other  reporting  requirements  will  need  to  be  re 
examined and simplified where possible. 

Thi~  system will  be  extended to  include  the  Commission  Delegations  in  non-member  countries 
to enable the  management of external aid programmes to be decentralised efficiently. 

The  policy  strategy,  the  budget  and  the  work  programme  together  will  provide  all  Community 
Institutions  with clearer information  about the  total  resource  costs of Community policies.  It  is 
essential,  however,  to  clearly  define  the  responsibilities  of  the  individual  Institutions.  The 
Commission  is  accountable  to  the  European  Parliament.  The  European  Parliament  could  not, 
however,  discharge  this  responsibility  under  the  Treaties  if  it  were  to  take  decisions  on 
operational  and  management 
In  addition,  by  undermining 
Commission  managers'  freedom  to  manage,  such  decisions  would  severely  damage  the 
Commission's  ability  to  deliver  results.  For  institutional  and  efficiency  reasons,  therefore, 
micro-management by the  Budgetary  Authority  of Commission  activities  must  be  avoided.  An 
inter-institutional agreement will  have to be  concluded to avoid this. 

the  Commission. 

issues 

in 

Ill.2  Developing an externalisation policy 

The  Prodi  Commission  has  made  the  political  decision  to  pursue  externalisation,  that  is  the 
delegation  by  the  Commission  of all  or  part  of its  tasks  or  activities,  as  one  of the  means  of 
implementing  its  strategy  to  re-cen~re  the  Commission  on  its  core-tasks  and  policy  priorities. 
Striking  the  right  balance  between  the  use  of internal  and  external  resources  will  be  especially 
important  in  a  system  where  decisions  on  resource  allocation  are  integrated  with  those  on 
priority-setting and programming. 

The  Commission  has  long  had  recourse  to  external  resources,  whether  through  the  use  of 
technical  assistance  in  running  operational  programmes  or  by  buying-in  services  from  outside. 
However there  has not been an  explicit  policy on externalisation, on the criteria to be  applied or 
the  legal  instruments to  be  used .. It  is  time  to  develop  one.  The Guide  on Technical  Assistance 
Offices published in  1999 was a first  step,  although,  as  the  European Parliament  has  indicated,  a 
clear strategy is  needed. 

Apart from the self-evident need for the  Commission to  have  an  adequate  level  of staffing,  there 
will  always  be  a  need  for  external  resources  too.  The  Commission  does  not  have  the  right 
Increasingly,  too,  experience  shows 
internal  resources  for  some  new  and/or  temporary  tasks. 
that  many  operations  are  best  delivered  close  to  the  target  group  rather  than  centrally  from 
Brussels.  Finally,  there  are  tasks  in  the  operation  of any  large  organisation  which  can  be  done 
more effectively by specialist firms. 

Through  the  development  of  a  policy  on  externalisation  -
the  term  covers  devolution  to 
Community  bodies,  decentralisation  to  national  public  bodies,  and  contracting  out  to  private 
sector bodies  - the  Commission  will  seek to  bring  order to  what  already  occurs  and,  notably,  to 
devise more efficient and accountable methods for handling financial  programmes. 

10 

Externalisation should only  be  chosen  when  it  is  a  more efficient  and  more cost effective  means 
of  delivering  the  service  or  goods  concerned. 
Externalisation  must  never  be  used  for 
administering  ill-defined  tasks  and  it  must  never  be  at  the  expense  of  accountability:  the 
Commission  must  be  able  to  exercise  its  political  responsibility  under  Article  274  of the  Treaty 
for the  implementation of the budget. 

A basic  principle  which  must  be  upheld  is  that  regulatory or negotiating  activities  and actions to 
allocate  funds  involving  the  exercise  of  discretionary  power  can  only  be  invested  in  public 
administrations.  Moreover,  the  Commission should refuse  to take on  any task  which  it  does  not 
consider  that  it  is  able  to  handle  within  an  acceptable  margin  of risk,  regardless  of whether  the 
task is  to be  managed in-house or externally. 

The externalisation policy being developed will  include testing a new type of implementing body 
headed  by  Commission  staff.  Special  attention  will  be  given  to  the  external  aid  sector,  which 
currently  handles  two-thirds  of all  external  technical  assistance  offices  used  by  the  Commission 
and thousands of individual experts'  contracts.  There  is  an  urgent need for  solutions which give 
the  Commission  ready  access  to  the  necessary  expertise  to  deliver  projects  in  a  timely  and 
effective way while ensuring the  necessary visibility and coherence of EU policy.  One option to 
be  examined for  the  management  of external  aid  is  an  office-type  structure/structures.  This  and· 
other options  need  to  be  linked  to  the  increased  de-concentration  and  decentralisation  which  is 
planned as part of improving the delivery of external aid. 

The  need  for  externalisation  differs  between  departments  according  to their  activities,  so  a  'one 
size  fits  all'  approach  will  not  be  appropriate.  It  must,  however,  be  possible to  ensure  that there 
is  more coherence so that similar instruments are  used for similar cases. 

In  devising  this  policy,  it  is  definitely  not  the  Commission's  intention  to  launch  a  generalised 
externalisation  of  its  activities  or  to  avoid  tackling  the  question  of  internal  resources. 
Externalisation  will  only  be  undertaken  where  it  is  justified  on  its  own  merits  and  will  not  be 
regarded as  a  substitute for  shortfalls  in  the  staff required for carrying out core tasks.  Indeed the 
proper  use  of external  resources  is  conditional  on  there  being  an  adequate  provision  of internal 
resources to exercise control or direction. 

1/l.3  Performance-oriented ivorking methods 

The  consultation  process  has  shown  that  staff  generally  agree  on  the  need  for  working 
procedures  in  the  Commission  to  be  simplified  and  modernised.  Good administrative  practices 
already  exist  in  various  Directorates-General.  These  need  to  be  spread  throughout  the 
Commission.  However, there  is  a  limit  to  how  far  departments can act autonomously since  some 
of the  systems or procedures in  question  may need to  be  tackled on a Commission-wide  basis or 
across  a  set  of  Commission  activities.  Moreover,  in  developing  such  methods  it  will  be 
necessary to study which improvements in  working  methods with other Institutions can  be  made, 
for  example  exercising  self-restraint  in  respect  of comitology.  The  results  of that  study  will  be 
reflected in  the Commission's proposals. 

Staff  have  made  many  helpful  suggestion·s  for  improving  working  systems  and  procedures. 
Machinery  is  needed  for  sending  in  suggestions  of this  kind  and  following  them  up.  Such 
mechanisms  exist  already  in  some  Directorates-General.  Others  that  do  not  yet  have  them  will 
be  encouraged  to  bring  them  in.  The  Secretariat-General  will  link  up  the  schemes  in  the 
Directorates-General  into  a  network constituting a  shared 'ideas  bank'.  Each  idea submitted will 
be  evaluated  and  the  official  ~ubmitting  it  will  be  given  feedback.  Some  proposals  will  be 
relevant  only  to  a  specific  Directorate-General,  but  many  others  are  likely  to  have  a  wider 
application.  Having  an  ideas  bank  like  this  will  help  the  Commission  to  improve  its  working 
methods continuously through  incremental change. 

11 

To  begin  with,  however,  a  more  structured  approach  is  required.  A  second  Deputy  Secretary 
General  will  therefore  be  appointed  to  the  Secretariat  General  with  the  specific  mandate  of 
improving working  methods  and promoting  their application  across the  Commission.  An  action 
plan  will  be  drawn  up  by  the  end of this  year  for  tackling  these  issues,  drawing  on  internal  and 
external  expertise.  Areas  for  attention  include  new  rules  on  the  delegation  of responsibility  in 
the College on which a  first  report should be  produced as  a  priority; simplifying decision-making 
and  administrative  procedures  at  headquarters  and  in  Commission  offices  world-wide:  better 
interservice  co-ordination:  improving  the  keeping  of  archives  throughout  the  Commission: 
flexible  and  adaptable  administrative  structures;  making  better  use  of modern  technologies;  and 
introducing quality-management techniques which are already in  use in parts of the Commission. 
Advances in  information systems.  in  particular,  such as electronic  document  management  means 
that we should be making progress towards a paperless Commission. 

The measures proposed in  this  Chapter are detailed in  Chapter III of the Action Plan  in  Part 
II of the  White Paper: Actions 12-20 

IV 

HUMAN RESOURCES DEVELOPMENT 

The  people  working  in  the  Commission  are  its  main  asset.  Their  abilities  and  dedication  have 
been  key  to  all  the  Commission's  accomplishments.  An  integrated  human  resources  policy 
which  allows  all  of its  members  of staff to  fulfil  their potential  is  vital  if the  Commission  is  to 
work  effectively.  Maintaining  an  independent,  permanent  and  high-quality  European  civil 
service will enable the European Institutions to  perform their roles within  the European  Union to 
maximum  effectiveness.  To  this  end,  the  modernisation  of  human  resources  policy  from 
recruitment to retirement is required for the benefit of staff of all  grades. 

In  the  course  of this  year,  consultative  documents  setting  out  detailed  proposals  for  reform  of 
recruitment  policy,  management  policy,  career  structure  etc  will  be  available.  Each  document 
will  set out a policy framework  based on analysis of best practice  in  Member State civil  services 
and in  other international organisations.  Drafts of the  legal  texts  to  implement  the  policy.  either 
amendments  to  the  Staff  Regulations  themselves  or  to  implementing  texts,  will  be  included. 
Taking  these  consultative  documents  as  a  basis,  staff  will  be  consulted  and  involved  not  only 
regarding  the  general  principles  of reform  set  out  in  this  White  Paper  but  also  regarding  their 
implementation. 

A  comprehensive  outline  of the  reform  of human  resources  policy  is  set  out  below.  Further 
details  are  presented in  the  Action  Plan.  Many  of the  proposed changes  can  be  achieved  under 
the existing Staff Regulations by  better application  and implementation  of the existing  rules.  In 
some areas, however, it  will be necessary to change the Staff Regulations.  In all  areas,  involving 
the staff will be a prerequisite for success. 

JV.]  Management 

As  in  any other organisation,  managers  play a  key role  in  the  Commission.  Their role  is  a  dual 
one:  they  must  possess  specialised  professional  knowledge  and  experience  but  also  have  a 
general ability to motivate and  lead teams.  The Reform will  contribute to better management  by 
introducing  clearer  rules  and  a  better  definition  of  responsibilities.  The  role.  of  middle 
management in  reforming the Commission is of particular importance.  Heads of Unit  will  be the 
driving  force  for decentralised reform activities:  such  as  implementing  team work and ensuring 
incremental improvement in  the  organisation of work.  Specific action  is  also  needed to  raise  the 
level of management skills and create a common management culture across the Commission. 

12 

The  Commission  will  therefore  be  g1vmg  more  weight  to  management  abilities  in  making 
appointments,  and  these  will  be  subject  to  a  probationary period.  The  principle  of reversibility 
will  be  applied:  managers  not  demonstrating  the  required  standard of managerial  capability,  or 
who  voluntarily opt out,  would revert to  a non-management position, at the same grade. 

A  programme  of management  training  will  be  introduced  for  all  managers  with  provision  for 
specific  needs such as  those of heads  of delegation.  Satisfactory participation  will  be  required of 
anyone  exercising  management  responsibility.  Finally,  the  performance  of  all  managers  -
including Directors General and Directors - will  be  systematically assessed. 

IV.2 

Career development 

Recruitment 

Current  recruitment  policy  based  on  open  compet1t1ons  has  provided  the  Commission  with 
highly  qualified  and  reliable  staff.  A  system  of  open  competitions  will  be  maintained  for 
generalists  and  for  specialists.  With  the  improved  programming  of Commission  activities  and 
the  definition  of the  related  competency  profiles,  better  forward  planning  of human  resources 
needs will  be  possible,  in  terms of both skills and numbers of people. 

Experience  and  the  submissions  from  the  consultation  exercise  show  that  the  organisation  of 
open  competitions  and  the  tests  used  need  to  be  improved  to  ensure  that  the  Commission· s 
personnel  needs are  met  and to take  account of advances in  selection techniques  and information 
technology. 
In  particular,  consideration  will  be  given  to  means  of improving  the  logistics  of 
parts  of  the  competitions.  The  Commission,  however,  must  retain  effective  control  of  its 
recruitment.  The need to ensure  a  reasonable  geographical  balance among Commission  staff  in 
keeping  with the  provisions of the  Staff Regulations  (notably Article  27),  will  also  be addressed. 
However,  neither competitions  organised  by  nationality,  national  quotas,  nor  a  general  move  to 
competitions  by language  are  appropriate.  In  developing  new  tests, full  account  will  be  taken of 
the  multicultural  dimension  of  the  EU  as  well  as  gender  so  as  to  set  the  conditions  for 
geographical  balance:  and equal opportunities. 

Recruitment to  other European  Institutions  is  also  on the  basis  of competitions.  Priority will  be 
given  to  examining,  together  \\·ith  the  other  Institutions,  the  possibility  of  creating  an  inter 
institutional recruitment office. 

Career guidance and mobility 

After recruitment, the Commission must make  best  use of the skills of new  staff and help them to 
develop  their potential  in  the  multinational  environment  of the  Commission.  New  officials  will 
follow  a  thorough  induction  programme  of  training  during  a  probationary  period  of  twelve 
months  for  all  grades.  The  assessment  at  the  end  of this  period  will  be  rigorous,  reflecting  the 
fact  that  admission to  the status of permanent official carries with  it  important rights. 

The  Commission  will  introduce  a  central  careers  guidance  function  to  spread  best  practice 
amongst  Directorates-General  and  advise  and  assist  officials  in  their  career  development.  A 
network of similar functions  will  be  established  within  each Directorate-General so  that  officials 
have access to the  best possible advice throughout their working lives. 

Internal  mobility  will  be  encouraged  by  removing  barriers  such  as  those  caused  by  the  existing 
promotion  system.  The  mobility  rules  specific  to  the  External  Service  will  be  maintained  and 
improved where  necessary.  The terms  and conditions  for  mobility among  European  Institutions, 
and  between  them  and  Member  State  administrations  and  possibly  other  public  and  private 
bodies,  will  be  explored  with  a  view  to  facilitating  exchanges.  More  generally,  to  respond  to 
limited  mobility of certain  people  and  to  provide  an  incentive  to  mobility,  it  will  be  considered 
an  asset in  staff appraisals and in  appointing  managers.  The continuity of activities  in  the  face  of 

13 

greater  mobility  will  be  ensured,  notably,  by  better  organisation  of  the  handover  of 
responsibilities between officials. 

Training 

The  training  budget  for  Commission  staff  is  proportionately  far  lower  than  even  the  average 
achieved in  national civil  services.  It  is  equivalent  to  two  days  training  per  member of staff per 
year.  This  figure  covers  general,  language  and  information  technology training.  Training  also 
takes time,  which  means that  attendance  at  training courses needs  to  be  factored  into  each  unit's 
activities.  Task  assignments  must  take  account  of  it.  The  Commission  needs  to  develop  a 
learning  culture  which  views  training  as  essential  rather  than  an  optional  extra.  Staff  of  all 
grades  should be  encouraged,  and  allowed,  to  develop  their personal  potential.  Implementation 
will require a step-change increase  in  the  budget for training and a higher level of staffing. 

The  focus  will  be  on continuous  training  throughout the  working  life ..  Specific  training  may  be 
recommended  at  certain  points  in  an  official's  career  (such  as  strengthening  drafting  skills  or 
'managing diversity').  Other forms  of training  will  be  required.  Some  would  have  to  be  taken 
by  all  officials,  for  example  to  develop  basic  legal,  economic,  drafting  and  budgetary  skills. 
Others would vary according to the nature of the work or the career stage (for example,  induction 
courses; specific training in  budget and finance,  training in  management skills). 

Finally,  the  creation  of a  dedicated  European  Civil  Service  Training  Centre  will  be  explored. 
together with the other Institutions,  in  particular for  middle and senior.management. 

Career stmcture 

The  present  distinction  between  different  categories  of  staff  is  very  heavily  based  on 
qualifications  and  training  at  the  moment  of recruitment.  As  a  consequence,  the  structure  does 
not  adequately reflect  the  evolution  of the  capacities  of individual  members  of staff,  or  provide 
for  instance  decision-making  abilities  or 
properly  for  assessment  of  broader  capabilities  -
managerial potential.  In  addition.  it  generally  takes  too  little  account  of qualifications  acquired 
by  B,  C  and  D  staff after  recruitment,  of their  skills  and  of the  reality  of the  tasks  that  they 
perform.  Movement  between categories  is  difficult  and  internal  competitions  are  not  organised 
regularly.  With  only  ~ limited  number of grades  in  each  category,  most  officials  are  promoted 
only three or four times in  the course of their careers.  The  limited numbers of grades also  means 
that significant bottlenecks occur at the top of the B, C  and D  categories and at  A4  level. 

To  sum  up,  the  current  system  provides  little  incentive  to  good  performance  or  reward  for 
personal  initiative,  whether  in  the  work-place  or  in  acquiring  new  skills  and  qualifications.  It 
acts  as  an  artificial  constraint  on  the  advancement  of those  manifesting  particular  talent  and 
capability.  It  fails  to  give  due  recognition  to  the  tasks  performed  by  B,  C  and  D  grade  staff. 
which often involve far  greater responsibility than  is  implied by the  standard job descriptions  set 
out in  the Staff Regulations.  This  is  to the  detriment of both staff and the Institution.  It  is  to  the 
credit of Commission staff that they have performed well despite these structural deficiencies. 

In  view of the  weaknesses  in  the current system,  the  Commission proposes to  develop a new  and 
more  linear career structure without categories.  It  would contain  more grades than  in  the  current 
system but  fewer steps per grade.  Recruitment  would  be  to  certain  levels  of the  grading  scale  in 
line with  minimum levels of qualification and professional experience. 

The  new  career structure  should  also  provide  for  certain  well-defined  posts  or functions  to  carry 
a  specific  grade.  Officials  occupying  these  posts.  involving  special  responsibiliti~s,  would  be 
rewarded  in  the  form  of  payment  at  that  grade  for  the  duration  that  they  occupy  this  post. 
Appointments to such posts would be on an objective basis following transparent procedures. 

Whilst  merit would determine  promotion  from  grade  to  grade,  seniority would  be  acknowledged 
by progress through the steps in  each grade. Finally. the system should ensure that  there  are  good 
career possibilities  for  officials  who  are  not  managers.  but  who  have  knowledge  and  skills  that 

14 

are  valuable  to  the  organisation.  This  implies,  in  particular,  that  promotion  to  higher  grades 
should not generally depend on occupying a  management post. 

In any public administration, the creation of a new career structure is  of major significance as  the 
implications can  be  far-reaching.  Developing a  new  structure also  requires a  detailed analysis  of 
many issues,  including staff appraisal  and promotions.  This White Paper gives a  broad outline of 
a  new  career  structure  for  EU  civil  servants.  Following  thorough  examination  of  the  various 
options  for  a  linear  career  structure,  the  Commission  will  publish  a  detailed  proposal  in 
November 2000. 

The Commission undertakes to ensure that any new career structure  honours its commitment that 
the  reform  will  not  result  in  deterioration  either  in  the  overall  terms  and  conditions  of 
employment  of existing  staff or in  its  multi-cultural  composition.  This  will  be  reflected  in  any 
Commission proposal to the Council on the  subject. 

Perfonnance appraisal 

Any  staff appraisal  system  serves  a  number  of purposes  from  providing  feedback  to  staff  and 
assessing  performance  against  agreed objectives  to judging  their  suitability  for  promotion.  The 
starting  point  for  staff appraisal  in  the  Commission  must  be  clearly  defined  mission  statements· 
for  each department  and job descriptions  and task assignments  for  each  member of staff.  These 
are,  in  any  event,  key  elements  of the  system  of  planning  and  programming  of Commission 
activities. 

While  a  new  system is  needed,  experience  has  shown that the  key to  a  successful  staff appraisal 
system  lies  in  its  fair  and  proper  application  by  assessors.  As  a  priority,  management  will 
receive  special  training  in  appraisal  and  there  will  be  checks  on  their  application  of the  system. 
Further thought  will  be  given  to  ways  to  guarantee  that  appraisals  are  conducted  equitably  and 
efficiently. 

, 

The  heart of the  new  system of appraisal  should be  an  annual  dialogue  between the  assessed and 
their  assessor to  discuss  how  far  clearly  set  objectives  have  been  achieved.  This  is  common  in 
other  European  administrations  and  would  provide  staff  with  objective  feedback  on  their 
performance,  recognising  achievement  and,  if  necessary,  encouraging  them  to  do  better  by 
identifying  areas  for  improvement.  Career  development  issues,  such  as  training  and  mobility, 
should also  be discussed. 

Appraisal  should  also  help  in  assessing  a  person's  suitability  for  promotion  based  on  past 
performance and aptitude for new tasks and responsibilities.  Merit  is  a  relative concept requiring 
staff to be  assessed for  promotion  by comparison  with  their peers.  This  means that the  appraisal 
needs to  include  the  attribution  of a  mark  (or marks).  At  present,  appraisals  in  the  Commission 
are  made every two years.  The link  between the new annual appraisal  and promotion procedures 
will  be  examined  carefully  to  avoid  placing  an  undue  burden  on  managers  and  staff.  More 
investment of time and effort in  the  new appraisal system is,  however, needed. 

This  new  staff  appraisal  system  must  clearly  be  fair,  transparent  and  objective.  Assessment 
should  be  carried  out  by  th_e  staff  member's  immediate  superior,  perhaps  involving  other 
colleagues, and the  use of "'two-way feedback". 

Finally,  the  appraisal  of  managers  should  include  an  element  of  assessment  by  their  staff. 
Safeguards. will  be  developed  for  those  involved  in  assessing  their  managers.  A  separate 
appraisal  system  will  be  introduced  for  Directors-General  and  Directors,  which  will  assist  the 
Commission in judging Directors for promotion to Director-General. 

Promotion 

One  of the  benefits  of a  better appraisal  system will  be  meeting  the  explicit  requirement  in  the 
Staff  Regulations  that  promotions  should  be  based  on  merit.  Further  improvements  to  the 

15 

promotion  system  are  needed  to  bolster  the  aim  that  good  performance  should  be  properly 
rewarded.  This  should  include  taking  account  of  mobility  and  the  development  of  specialist 
skills. 

Procedures to help zmder-perfonning staff 

A clear definition  of each  official"s  tasks  will  give  them and  their  managers  an  agreed  basis  on 
which  to  assess  performance.  The  annual  appraisal  dialogue  ought  then  to  lead  to  an  earlier 
detection of under-performance.  The new  career guidance  function  will  include  counselling  for 
apparent  under-performers  .and  a  skills  review.  There  will  be  a  guide  to  provide  a  clear 
definition  of  under-performance  and  guidelines  for  detecting  it  as  well  as  procedures  to  be 
followed.  Remedial measures may include additional training and reassignment to other posts. 

A  specific  procedure  that  is  distinct  from  the  disciplinary  procedure  will  be  introduced  for 
dealing  fairly  with  established  cases  of professional  incompetence  under  Artie le  51. of the  Staff 
Regulations. 

Flexible  retirement 

Flexibility  in  retirement  age  is  one  of the  instruments  that  can  contribute  to  optimum  use  of 
human 'resources.  The current  rules  on  the  age  and conditions  of retirement  penalise  those  \vho 
~ish to leave the  service  before  the  age of 60.  No  official can continue  work beyond the  age  of 
65.  These  issues  need to  be  addressed.  A  new  early-retirement  scheme  needs  to  be  developed. 
This will  have implications for the Staff Regulations and the pension scheme. 

More  specifically,  it  is  clear that  further  enlargement  of the  European  Union  will  confront  the 
Commission  with  a  significant  challenge.  An  early-retirement  scheme  could  play  an  important 
role  in  easing the  integration of members of staff from  new  Member States.  In  the  light  of this. 
reflection is  needed on a special scheme of early retirement directly  linked to enlargement. 

IV.3  Non permanent staff 

Contract  staff  have  always  made  a  useful  contribution  to  the  Commission· s  work  bringing  in 
skills  not  otherwise.  available  within  the  Commission. 
local  agents  in  the 
representations  in  Member  State~  and  Delegations  in  non-member  countries  have  played  an 
important role in assuring Commission activities in those countries. 

In  addition, 

The commitment of such staff to the  goals of the  European Union  is  not in  doubt.  Ho\vever  the 
variety of the  terms  and conditions  on  which  they  are  employed  and  deployed  is  confusing.  In 
addition,  recourse  to  contractual  staff can  be  wasteful  as  the  cost  of employing  them  can  be 
greater than  for  permanent  officials.  yet  the  Commission  cannot  count  on  retaining  their  skills. 
The  Commission  will  continue  to  use  contract  staff but  intends  to  reduce  its  reliance  on  them. 
especially  at  headquarters.  It  \vill  therefore  make  a  proposal  to  convert  part  of its  budget  for 
such staff into permanent posts. 

Any ambiguity about the  rules  under which  contract  staff operate  and  the  tasks  which  they  may 
and  may not  perform will  be  addressed.  The new  rules  should  also  provide  some  flexibility  for 
executing  certain  activities  with  contractual  staff,  for  example,  given  the  need  to  attract 
individuals with specific technical knowledge  not otherwise available to the  Commission.  There 
is  a  link  between these  rules  on  the  one  hand  and  policy on externalisation  and  the  definition  of 
activities on the other hand:  the extent to  which contract staff are  used will  vary according to  the 
nature of the activities; and the  scope for using contract staff within the Commission can  have  an 
impact on the need for externalisation. 

16 

IV.4 

The  working environment and equal opportunities 

Working environment 

The  Commission  ought  to  be  a  model  employer offering  its  staff a  good working  environment. 
The  legacies of the  past  mean that  the  organisation  of work in  the  Commission tends  to  be  rigid. 
with  insufficient  understanding  of how  the  cultural  diversity  that  characterises  and  enriches  the 
Commission  can  affect  working  relationships.  Further enlargement of the  European  Union  will 
increase  this  diversity.  Finally,  both  the  working  culture  in  the  Commission  and. the  fact  that 
resources  in  some  areas  have  been  insufficient  have  extended  hours  worked  and  often  made  it 
hard for many officials to reconcile their professional and private lives. 

Various  steps  will  be  taken  to  improve  working  conditions.  Greater  emphasis  will  be  put  on 
training related to  working  in  a  multicultural environment  and  to  managing diversity.  There  is  a 
growing demand from officials of all  grades for  more flexible  working  hours.  In  a  more  results 
oriented  organisation,  these  aspirations  must  now  be  met,  since  they  could  provide  increased 
flexibility  and  productivity  for  the  Commission  and  better  motivation  and  job  satisfaction  for 
staff.  Measures  will  be  taken  to  facilitate  flexible  working,  include  flexitime,  job sharing,  part 
time  working,  and  teleworking. _ The  issue  of replacing  staff who  work flexible  hours  will  need 
to be addressed. 

In order to  allow  parents to  balance their professional  lives  with  their family  obligations,  a  right 
to  parental  leave  will  be  introduced  for  both  natural  an~  adoptive  parents.  The  existing 
provisions  on  maternity  leave  will  also  need  to  be  improved  as  will  the  infrastructure  provided 
by the Commission for childcare.  Finally, a right to family leave will be introduced. 

Equal opportunities 

The  improvements  sought  in 
contribution to promoting equal opportunities. 

the  \VOrking  environment  are  likely  to  make  a  significant 

Beyond  this,  gender  mainstreaming  must  be  central  to  the  new  integrated  human  resources 
policy.  The  Commission  has  already  committed  itself to  tackling  the  current  gender  imbalance 
in  the  staffing structure, for example  by giving women preference  for  senior appointments  when 
there are  male  and female  candidates of equal  merit.  It  has  also  set itself the  minimum target of 
doubling the number of women in  top management by the end of its  mandate.  In  no  case  should 
geographical  balance  be  an  obstacle  to  appointments.  At  the  entry  level,  special  care  will  be 
taken  to  ensure  that  the  tests  for  competitions  do  not  disadvantage  women  and  that  selection 
boards  include  a  sufficient  number  of women.  Finally,  improved  access  to,  and  provision  of, 
training for management should also enhance potential promotion opportunities. 

The  Commission  intends  to  abolish  the  existing  age  limits  for  recruitment  by  competition. 
Consultation  with other EU Institutions on this  issue  is  underway and the  Commission  is  wiJiing 
to  lead by example.  The conditions  for  recognising  stable  partnerships outside  marriage  will  be 
defined.  Further  thought  should  be  given  to  ways  of ensuring  that  the  cultural  diversity  and 
ethnicity of today's Europe  is  reflected in  the  staff of the  Commission and the  Commission  will 
promote discussions with Member State administrations to that end. 

IV.5  Discipline 

Few  Commission  staff  members  ever  have  reason  to  encounter  the  disciplinary  system. 
However,  the  current  system  has  shortcomings.  The  system  is  too  slow,  has  many  layers  of 
procedure  and  is  based  around  a  disciplinary  board  that  varies  in  composition  and  is  purely 
internal.  Staff  are  not  sufficiently  well-informed  about  their  obligations  and  the  possible 
consequences of breaches of the rules. 

17 

A number of administrative  measures can be  taken  to  improve the  situation without changing the 
Staff Regulations:  clear rules will  be  set out in  a handbook together with an explanation of rights 
and  obligations;  guidelines  will  be  developed  for  penalties  related  to  the  gravity  of the  offence: 
an  enlarged  permanent  secretariat  for  the  Disciplinary  Board  will  provide  greater  consistency: 
and disciplinary decisions will  be  published (with names removed to protect confidentiality). 

Further  actions  in  this  field  to  make  the  system  more  effective  and  less  subject  to  delays  will 
require  amendments  to  the  Staff  Regulations.  These. include  setting  up  an  Inter-Institutional 
Disciplinary  Board  and  the  possibility  for  the  Administration  to  present  its  case  to  the 
Disciplinary Board. 

IV. 6  Whistleblowing 

All  responsible  organisations,  particularly public  administrations,  need  provisions  which  ensure 
that  employees  with  serious  reason  to  suspect  that  wrongdoing  either  has  taken,  is  taking  or 
could take  place  can report their concerns and  be  sure  there  will  be  a  thorough  investigation  and 
an effective response.  In  the  Commission,  there  is  a  need  to clarify the  rights  and obligations of 
officials  who  report  alleged  wrongdoing  and  to  provide  a  workable  system  that  is  fair  to 
"whistleblowers", to the people accused of wrongdoing,  and to the Institution.  At the  same  time, 
there should be guarantees that  when legal or administrative proceedings are  undertaken they are 
not compromised by untimely disclosures of evidence. 

The OLAF Regulation that came  into effect  in  June  1999 gives a clear indication of the channels 
to  be  used  for  reporting  irregularities.  Officials  are  obliged  to  report  suspected  irregularities  to 
their  superiors  or to  the  Secretary-General  or  to  OLAF.  There  is  now  a  need  to  clarify  that 
reporting a case to OLAF for investigation does  not absolve  managers  from taking  the  necessary 
steps themselves to remedy problems brought to their attention. 

There  is  also  a need to  establish  more  precisely  the  rights  and  obligations  of officials  to  report 
wrongdoing  responsibly  through  internal  channels  (but  not  exclusively  through  the  hierarchical 
line),  and  to  define  appropriate  rules  for  the  use  of external  reporting  channels.  The  external 
the  circumstances  in  which  going  outside  the 
channel  should  act  as  a  "safety  valve": 
Commission would be  allowed will have to be carefully defined.  A  reinforced central  mediation 
service should act  as  a contact point for cases of alleged wrongdoing  that  do  not  involve  alleged 
fraud or action affecting the financial  interests of the Community. 

In  keeping  with  best  practice  in  Member  States,  necessary  protection  consistent  with  the 
provisions  in  the  OLAF  Regulation  will  be  provided  for  officials  making  reports  through  the 
legally established means,  and - in  the  interest of all  staff and the Institution - safeguards  will  be 
provided against frivolous or malicious allegations. 

IV. 7 

Transparent Staff Regulations 

A  large  number  of  legal  texts  have  been  adopted  over  the  years  to  implement  the  Staff 
Regulations.  Some  of them  apply  to  all  EU  Institutions,  while  others  apply  only  within  the 
Commission.  Little  effort  has  been  made  to  make  these  texts  accessible  to  staff,  nor  have  the 
many  administrative  decisions  adopted  by  the  Commission  under  the  Staff  Regulations  been 
made available.  As  a result,  no  clear,  consolidated set of rules can  be  consulted.  Both the  issue 
of transparency and the  proper application  of the  rules  must  now  be  addressed.  Common  Staff 
Regulations applying to all  EU Institutions will be  maintained. 

The  rules  adopted  to  implement  the  Staff  Regulations  will  be  simplified,  consolidated  and 
published.  The Commission's administrative  procedures for applying  the  Staff Regulations  will 
also  be reviewed.  At  the  same  time,  the Staff Regulations  themselves  need to  be  examined - in 
full  consultation with staff representatives - in  order to  identify any provisions  which  are clearly 

18 

into  question 

outdated and which are  no  longer needed to  ensure the  permanence, quality and  independence  of 
the  European  Civil  Service.  In  this  context,  it  is  important  to  stress that  this  Reform  in  no  way 
calls 
involving  staff 
representatives  and the  Administration  in  the  Commission's human  resources policy.  To ensure 
the  effectiveness  of involvement  in  the  interests  of staff,  the  operation  and  function  of those 
committees will be  reviewed in  each specific area . 

the  principle  of  involvement  of  joint  committees 

. These changes will  be  undertaken as  part of an  on-going commitment to  simplify and clarify the 
staff's rights and obligations. 

IV.8  Other issues 

The  human  resources  policy  outlined  in  this  White  Paper  is  a  key  component  of  the 
Commission's  strategy  for  reaching  the  objectives  set  out  in  the  2000-2005  programme,  for 
example,  the  challenge  which  enlargement  of  the  European  Union  will  bring  in  terms  of 
integrating  members  of staff from  new  Member  States.  Two  further  areas  of human  resources 
policy  which  merit  particular  attention  in  the  years  ahead  have  been  identified.  The  first 
concerns  staff who  are  paid  from  the  Research  budget:  Specific  rules  apply to  this  category of' 
staff.  The  longer-term  objective  of  this  Commission  is  to  integrate  Research  Staff  into  the 
mainstream  of the  Commission's  personnel  policy.  The  possibility  to  recruit  some  specialist 
staff on  a  temporary  basis  will  be  retained.  The  second  concerns  the  Commission's  external 
service.  Special  consideration  will  be  given  to  managing  the  career  of officials  in  delegations 
and at  headquarters, including the  rotation exercise, the  provision of language and other training, 
the treatment  of couples  of EU civil  servants  when  one  is  posted to  a Delegation  and the  policy 
towards local staff. 

Implementing  the  framework  of  reforms  set  out  here  represent  a  significant  and  sustained. 
challenge to the  Commission's central administrative services.  It  is  a challenge which they  must 
now  meet. 

The measures proposed in  this Chapter are detailed in  Chapter IV of the Action Plan  in  Part 
II of the  White Paper: Actions 21-62 

V 

AUDIT,  FINANCIAL MANAGEMENT AND CONTROL 

One  central  aim ·of the  Reform  is  to  create  an  administrative  culture  that  encourages officials  to 
take responsibility for  activities· over which  they  have  control - and  gives  them control over the 
activities  for  which  they  are  responsible.  The  Commission  as  a  whole  has  a  particular 
responsibility  for  managing  EU  funds,  i.e.  the  taxpayers'  money. 
Improving  and  modernising 
financial  management  is,  therefore.  desirable  on  its  own  merits  and  can  make  a  direct  and 
practical contribution to lifting operational performance generally. 

The Commission's systems for  financial  management and control are  no  longer suited to the  type 
and  number of transactions  which  they  have  to  deal  with.  When the  present centralised  systems 
were designed,  the Commission was processing sums of money  very  much smaller than  today's. 
Financial  transactions  have  grown  exponentially  -
for  instance,  they  have  doubled  in  the  past 
five  years  to  more than  620,000.  External aid  has  increased by  a  factor of three  over the  last  ten 
years and is set to grow by a further 44% between  1999 and 2000. 

These  realities  mean  that  procedures  need  to  be  made  simpler  and  faster,  more  transparent  and 
decentralised.  There  has  to  be  a  clear  distribution  of  tasks  and  responsibilities  among  all 
participants - both financial  and  ·technical'  - who  have  a  role  in  managing  operations that  have 
financial  implications.  Adequate organisational  rules  and  structures are  also  essential.  Specific 

19 

arrangements will  be  needed to equip the Commission's external delegations to  handle these  new 
responsibilities. 

A  key  component  of  better  financial  management  will  be  the  new  approach  introduced  by 
Activity-Based  Management  for  allocating  resources  of  all  kinds  to  match  the  Commission· s 
priorities  (see  Part III of this White Paper).  The Commission should then  no  longer  find  itself in 
a position of having taken on tasks without the  means to execute them properly. 

In addition, the following actions are needed: 

•  The financial  management,  control and audit  system  will  be  radically  overhauled,  updated 
and  brought  into  line  with  best  practice. 
In  order  to  make  the  best  use  of  resources  and 
expertise  and  take  account  of the  different  types  of spending  for  which  the  Commission  is 
responsible,  new  organisational  structures  will  have  to  be  brought  in  and  others  phased  out. 
Benchmarks  will  be  introduced  to  measure  progress  in  reducing  payment  delays  and 
recovering funds  unduly paid. 

•  Authorising  officers  and  indeed  all  managers  must  take  responsibility  for  the  quality, 
correctness and efficiency of what they do.  The rules  should be  communicated to  all  officials 
in  a consolidated, simplified and easily accessible form. 

•  Steps to better protect the  Community's financial interests  will  be  taken,  in  particular  fraud 
proofing  of legislation  not  just  at  the  proposal  stage  but  throughout  the  legislative  process. 
Co-operation between the  Commission and the  Member States will  be  significantly improved. 
As  the  Court  of  Auditors  points  out,  it  is  in  the  Member  States  that  the  "vast  bulk"  of 
expenditure that is  not properly used and/or accounted for takes place. 

V.1 

Defining the  responsibilities of authorising officers and line managers 

Creating a real sense of responsibility for sound financial  management  means,  first  of all.  clearly 
defining 
their 
responsibilities;  thirdly,  quality  controls  built  into  management  processes;  and  finally,  fair  and 
trusted ways of dealing with breaches of the rules. 

that  e\'.eryone  knows  and  understands 

tasks;  secondly,  making 

sure 

Financial  management is  only one  aspect of operational  management.  The delegation of powers 
to  authorise  expenditure  also  has  to  parallel  the  management  chain  of  command,  from  the 
individual official to Director-General, to the  individual Commission~r and to the College. 

The  Commission  will  draw  up  clear  rules  defining  the  responsibilities  of each  financial  actor. 
These  will  be  handed  out  to  each  one  when  they  are  appointed  and  be  accompanied  by 
If they  fail  to  meet  these  standards,  they  will  have  the  responsibilities 
appropriate  training. 
withdrawn. 

These  rules  on the  responsibilities  of authorising  officers  will  include  procedures  for  delegating 
responsibility  for  authorising  expenditure  within  departments.  As  far  as  possible,  the  person 
taking  the  operational  decision  to  go  ahead  with  an  operation  involving  expenditure  should also 
be  the  one  authorising  the  expenditure.  However.  an  adequate  system  needs  to  be  in  place  to 
check the correctness of transactions. 

The  best  way of ensuring  that  these  rules  and  procedures  are  followed  is  to  make  them  readily 
available  to  all  officials.  The  rules  will  therefore  be  consolidated  and  presented  in  simple, 
clearly set-out manuals that are  updated as  needed. 

Simpler,  consolidated  rules  and  procedures  are  especially  necessary  in  the  areas  of grants  hnd 
procurement.  A  number  of principles  must  be  rigorously  applied:  competitive  procedures  for 
allocating  funding,  full  information  about  funding  available,  equal  treatment  of all  tenderers, 
transparent  selection  procedures,  publication  of  the  outcome,  and  proper  follow-up  and 
evaluation. 

20 

At  the  margins,  the  dividing  line  between  a  grant  and  a  procurement  procedure  is  a  delicate 
issue.  Authorising  officers  need  to  be  able  to obtain  advice  on  what  type  of procedure  to  adopt 
from the  Contracts unit  of the  Central Financial Service (see Chapter V.2).  This problem will  be 
addressed in  a separate section of the draft  proposal revising the Financial Regulation. 

The  Commission  will  also  be  proposing  improvements  to  its  procurement  procedures:  in 
particular it  will consider the creation of an  independent  body to  handle complaints arising out of 
procurement procedures. 

Without calling  into question the role  of OLAF, where  financial  errors or suspected irregularities 
occur  which  do  not  involve  fraud,  Directors-General  will  be  able,  before  initiating  disciplinary 
proceedings,  to  refer  a  case  to  a  panel  which  has  a  helpdesk  function  advising  on  possible 
financial  irregularities.  This  panel  will  be  set  up  by  1 July 2000.  The  panel  will  naturally  hear 
the  official  or  officials  involved.  This  advisory  panel  is  designed  to  be  an  intermediary  step 
between  detection  of  an  irregularity  and  the  possible  start  of  formal  disciplinary  procedures. 
Where  possible,  the  panel  should  recommend  corrective  and  preventive  measures  to  the 
Director-General concerned. 

Finally, the provisions in  the current Financial Regulation which provide that authorising officers  . · 
are  professionally and  financially  liable  are  likely  to  severely  hamper  the  'responsibilisation ·  of 
authorising  officers.  This  clash  could  be  highly  counter-productive.  The  new  disciplinary 
procedures  proposed  in  Chapter IV  already  provide  fair  and  adequate  means  of  dealing  with 
financial  irregularities  and  fraud  through  the  Staff  Regulations'  provisions  on  civil  servants' 
liability  for  serious  misconduct.  Accordingly,  the  Commission  will  be  proposing  that  these 
specific provisions be  dropped from the Financial Regulation. 

V.2 

Overhauling financial management,  control and audit 

The  Commission's  present  financial  management,  control  and  audit  system  has  been  heavily 
criticised,  from  both inside  and outside the  Institution,  for  not preventing significant  wrongdoing 
in  a  number of major  instances  (see,  for  example,  the  reports  of the  Committee  of Independent 
Experts and the Court of Auditors). 

Basically,  the  current  financial  ex-ante  controls  consist  of centralised checking  and  approval  of 
financial  transactions  against  largely  procedural  rules  laid  down  in  the  Financial  Regulation  -
called the  "ex-ante visa" - but this  has proved inadequate as  a way of comprehensively assessing 
the  added value  and correctness  of financial  operations.  As  a  result,  the  system gives  decision 
makers a  false  sense of security,  leading  to  a culture  that  "de-responsibilises"  managers.  At  the 
same  time,  by  being  cumbersome  and  procedurally  complex,  it  has  made  efficient  execution  of 
the budget harder. 

Added to  this,  the  Financial  Regulation  gives  responsibility  for  both  ex-ante  vetting  (the  ·visa') 
and ex-post evaluation of systems ("audit') to the  Commission's Financial Controller, giving  rise 
to a significant potential for conflicts of interest within the Financial Control DG. 

Proposed changes 

The solution proposed in  this paper is  presented schematically in  Figure I.  The aim is  to devolve 
controls currently  under  the  responsibility  of the  Financial  Controller to  DGs  so  that  Directors 
General  are  made  directly  answerable  for  adequate  internal  controls  in  their  departments  and 
managers are  made  wholly  responsible  for  the  financial  decisions  they  take.  This  responsibility 
should find  expression  in  a declaration  by each Director-General in  their Annual  Activity  Report 
that adequate internal  controls have  been  put  in  place and that, on  the  basis of the  analysis  made 
in  the  Report,  the  resources  have  been  used. for  the  intended  purposes.  Once  the  Financial 
Regulation  has  been  changed  to  create  the  conditions  for  more  secure,  efficient  and  effective 
resource management, the centralised  'ex-ante visa·  would be  abandoned. 

21 

Within Directorates-General,  the  Finance  Units  will  have  the  basic  function  of providing  advice 
and  assistance  to  operational  units.  They  may  be  given  additional  functions  depending  on  the 
specific  organisational  set-up  in  each  DG.  Because  spending  profiles  and  requirements  for 
financial  management  vary  between  departments,  each  Director-General  will  have  to  define  the 
appropriate financial  processes to  be  followed  in  his  or her department,  within  the  framework of 
a  set of minimum standards for  all  departments to be defined in  line  with  the  principles set out  in 
this  White  Paper.  These  standards  will  include  the  principle  of segregating  duties,  in  order to 
ensure  that  every decision  involving  expenditure  in  any  department  has  been  assessed  from  the 
operational and financial  viewpoints by at  least two persons. 

A Central Financial Service will  be created which will  provid~  advice to operational departments 
in  the  Commission.  This  Service  would  come  under  the  direct  responsibility  of  the  Budget 
Commissioner and would define financial  rules and procedures and common minimum standards 
for internal controls in  DGs as  well as  advising on their application. 

An  Internal  Audit  Service  under the  authority of the  Vice-President for Reform will  be  set  up  to 
assist  management  within  the  Commission  to  (1)  control  risks,  (2)  monitor  compliance.  (3) 
provide  an  independent  opinion  about  the  quality  of management  and  control  systems,  and  (-+) 
make  recommendations  for  improving  the  efficiency  and  effectiveness  of  operations  and 
ensuring that Commission resources  are  used cost-effectively ( 'security for money and  value  for 
money'). 

Each  DG  will  set  up  a  specialised  audit  capability  (that  could  range  from  an  individual  relying 
largely on the work of the Internal Audit Service to a  fully-fledged  unit),  reporting directly to the 
Director-General,  to  carry  out  reviews  of  the  internal  control  system  of  the  DG  as  well  as 
reviews of the  management and use of Commission funds paid to external beneficiaries. 

Finally,  an  Audit  Progress  Committee  will  be  set  up.  Its job will  be  to  monitor  (1)  the  control 
processes of the  Commission through the  results  of audits  of the  Internal  Audit  Service  and  the 
Court  of Auditors,  (2)  the  imp Iementation  of audit  recommendation-s,  including  those  from  the 
Court  of  Auditors  accepted  by  the  Commission,  and  (3)  the  quality  of  audit  work.  The 
Committee  will  be  chaired  by  the  Budget  Commissioner  and  will  be  further  composed  of the 
Vice-President  for  Reform,  two  other  Commissioners  and  an  external  member.  The  latter  will 
have to have relevant knowledge a~d experience of corporate governance and controls.  All  these 
new Services and the Audit Progress Committee will be set up by  l  May 2000. 

The  proposed  changes  will  ensure  that  responsibilities  are  properly  assigned  to  managers  who 
take decisions with financial implications; they,  in  tum,  will  be  properly advised and guided  by a 
central financial  function.  To complement this,  the Internal Audit  Service will play an  important 
oversight  role  and  its  recommendations  will  be  given  due  attention  by  the  Audit  Progress 
Committee. 
In  the  final  analysis,  this  approach  should  fully  remedy  the  'de-responsibilising 
effect'  and the potential conflict of interest between financial control and internal audit  that  mark 
current arrangements. 

The  Transition 
Moving  to  the  system  set  out  above  will  be  a complex  process  and  cannot  be  achieved  in  the 
very  short  term.  The  existing  legal  framework,  in  particular  the  Financial  Regulation.  requires 
that  the  centralised  ex-ante  visa  be  maintained  and  it  also  assigns  responsibility  for  ex-ante 
financial  controls  and  internal  auditing  to  the  Financial  Controller.  As  a  result,  the  ex-ante  visa 
function  as carried out  by the  Financial  Control DG cannot be  ended  without  amendment  to  the 
Regulation nor, therefore,  be replaced by an automatic technical visa on all transactions. 

The Commission will tackle this problem in two ways. 

First, to shorten the period of transition to the new system as much as possible, it  will propose, as 
part  of the  revision  of the  Financial  Regulation,  that  responsibilities  for  financial  controls  and 

22 

internal  auditing  are  separated.  This  should  make  it  legally  possible  for  the  Commission  to 
transfer  responsibility  for  internal  auditing  from  the  Financial  Controller  to  another  senior 
official  with  equivalent  independence  (the  Internal  Auditor).  The  Commission  hopes  that  this 
part  of  the  recasting  of  the  Financial  Regulation  can  be  processed  speedily  and  adopted  by 
1 January 2001. 

Secondly,  pending  adoption  of  the  general  revision  of  the  Regulation,  the  Commission  will 
already  begin  to  decentralise  audit  and  ex-post  control  activities - currently performed centrally 
under the  responsibility of the Financial Controller - to operational Directorates-General.  Before 
any  decentralisation  of responsibilities,  the  obligations  of every  person  intervening  in  financial 
decisions  will  be  defined  and  communicated.  The  traditional  ex-ante  visa  control  will  be 
deconcentrated  by  locating  the  controllers  in  the  Directorates-General  whilst  maintaining  their 
reporting  lines  to the  Financial  Controller,  as  required  by the  Financial Regulation.  During  this 
period,  the  Financial  Controller  will  report  separately  to  the  Vice-President  for  Reform  on 
internal auditing,  so immediately reducing the potential for conflicts of interest. 

Human  resources and training 

A  fundamental  factor necessary  to  ensure  the  robustness  of the  new  audit,  financial  and  control 
system  is  that  financial  operations  must  be  run  by  highly  competent  staff.  Any  shortfall  in 
human  resources,  skills  or  expertise  would  seriously  undermine  the  reliability  of the  system. 
Insufficient emphasis  may have  been given to  such jobs, to the  support systems, and to specialist 
training  in  the  past,  making  a  career  in  this  sector  less  attractive,  so· increasing  the  shortfall. 
Financial  management  and  control  should,  therefore,  be  a  priority  for  Directors  General  in 
making an  assessment of their  human  resources  needs.  If necessary,  resources  should  be  made 
available  immediately.  A  specialised competition could  be  envisaged  if - after redeployment of 
existing staff in  the Financial Control DG, the  allocation of additional  posts and the  provision of 
internal training - there were still inJufficient numbers of personnel with the necessary expertise. 

To ensure  a  common  understanding  of the  concepts  and  vocabulary  of the  new  audit,  financial 
and  control  system  across  the  Commission,  staff will  be  trained  immediately  on  the  principles 
behind the  financial  reforms.  Managers in  charge of spending programmes will  be  given training 
courses  on  strategies  for  maximising  the  value  for  money  of their  activities.  Once  the  new 
operational  manuals  with  simplified  and  consolidated  rules  and  procedures  are  available.  an 
intensive  and thorough training  programme will  be  provided for  operational staff responsible  for 
programmes  that  involve  expenditure,  in  particular  dealing  with  project  management.  public 
procurement  and  award  of subsidies.  An  introduction  to  the  way  the  Commission's  budgeting 
and financial  systems work will be  compulsory for all  staff. 

V. 3 

Protecting the  Community's financial  interests 

A  series  of measures  are  necessary  to  maximise  the  prevention  of irregularities  and  the  fraud 
proofing of legislation  and  financial  management rules  and procedures.  A  wide  range of actions 
include: 

•  Guidelines for sound project  management. 

•  Better  co-ordination  of the  interaction  between  the  independent  Anti-Fraud  Office  (OLAF) 

and other Commission departments. 

•  Closer  involvement  of OLAF in  the  fraud-proofing  of legislation  and  systems  for  tender  and 

contract management. 

•  Optimisation of the central early warning system for beneficiaries of EU funds. 

•  More effective management of the recovery of unduly paid funds. 

23 

In  addition,  co-operation  among  Commission  departments  and  between  the  Commission  and 
Member  States,  particularly  in  the  area  of  the  Structural  Funds  and  the  EAGGF  clearance 
procedure,  will  need to  be  better defined to ensure  that  more  effective  action  is  taken  to  improve 
the prevention and detection of irregularities, fraud  and corruption. 

The measures proposed in  this Chapter are detailed in  Chapter V of the Action Plan in  Part I I 
of the  White Paper: Actions 63-98 

VJ 

DELIVERING AND SUSTAINING REFORM 

Implementation  of many  measures  can  start  immediately  as  set  out  in  this  document  and  in  the 
Action  Plan.  The Commission  attaches  particular  importance  to  pressing  ahead  with  Reform  to 
maintain  the  momentum  and  to  reaping  early  benefits  from  the  Reform  for  staff  and  the  other 
Institutions 

Achievements by July 2000 

In  particular,  the  Commission  is  committed  to  delivering  the  following  essential  measures  by 
July 2000: 

•  The establishment of the Internal Audit Service, the Audit Progress Committee and the  Central 

Financial Service. 

•  Departments  will  draw  up  an  inventory  and  evaluation  of their  financial  organisation  and  a 

first  assessment of the staff needs in  this area. 

•  The  setting  up  of a  Commission-wide  programme  of training  and  information  on  the  ne\v 

Commission financial  architecture. 

•  The  establishment  of a  mission  statement  for  every  Directorate  and  unit  on  the  basis  of the 

mission statement 9f its Directorate-General. 

•  Job descriptions for each official/staff member on the  basis of clear guidelines and the  mission 

statement of the unit  in  which he/she works. 

•  The  completion  of a  comprehensive  programme  of pilot  projects  for  the  new  management 
training  scheme  and  improvements  in  the  operation  of the  appointment  procedure  to  senior 
posts. 

•  The setting  up of a representative  Customer Panel to  advise  the  Vice-President  for  Reform on 

the quality of the services provided by the Department for Personnel and Administration. 

•  A proposal for a major revision of the Financial Regulation. 

•  A  proposal  on  the  urgent  task  of  improving  the  management  and  delivery  of external  aid 

programmes and the  implementation of the first  steps of this Reform. 

Implementation 2000-2002 

By the end of 2000, consultative documents on all  key areas of Human Resources policy  such as 
career  development  and  structure.  discipline,  and  recruitment  - including  proposals  for  any 
necessary  legal  changes  - will  have  been  tabled.  These  documents  will  set  out  detailed 
proposals  in  areas  where  this  paper  provides  general  orientations.  Full  consultation  on  these 
proposals  will  take  place.  The  Commissioners'  Group  on  Reform  will  be  habilitated  to  adopt 
draft  proposals  for consultation.  In  order to  ensure  full  transparency,  all  Commissioners  will  be 
kept informed throughout. 

24 

This  will  comprise consultation  with  the  Commission's staff representatives and,  where  changes 
to  the  Staff  Regulations  applying  to  all  Institutions  are  concerned,  also.  with  the  Inter 
Institutional Committee.  The Commission aims at completing the  internal consultations by early 
2001.  Implementation  of  measures  not  requiring  changes  to  the  Staff  Regulations  will  then 
commence immediately.  The inter-Institutional consultations should be completed by November 
2001  at  the  latest.  The  Commission  will  subsequently  propose  an  integrated  proposal  for 
modifying the  Staff Regulations, covering personnel policy and pay and pensions, to the  Council 
to  be  presented  by  December  2001.  On  this  basis,  the  full  implementation  of  the  Reform 
proposals set out in  this White Paper should be achieved by the  second half of 2002. 

Pay and pensions 

The  objective  of  Reform  is  to  ensure  that  the  Commission  has  an  administration  where  the 
highest  standards  of  performance,  integrity  and  service  prevail.  Quality  should  be  properly 
rewarded  and  the  general  conditions  of employment  of European  civil  servants  must,  therefore. 
not deteriorate. 

Meeting  these  objectives  means  that  major challenges  for  the  pay and pension  system will  have 
to  be  faced.  First,  the  current  system  for  adjusting  salaries  will  expire  in  June  200 l.  Secondly. 
there  is  a  legal obligation to achieve an actuarial  balance of the pension regime. 

Given  the  link  between  pay and  pensions  and reform - notably  insofar •as  changes  to  the  career 
structure  are  concerned - and  the  complexities  of what  would  be  two  successive  and  major sets 
of  negotiations,  the  best  solution  for  staff,  Commission  and  Council  will  be  a  single  global 
negotiation in  Council on pay and pensions and revised Staff Regulations. 

This objective can  be  reached  by presenting  a  proposal to  the  Council  in  the  course  of this  year, 
containing  two  parts.  First,  a  proposal  to  maintain  the  status  quo  for  a  short  period  of.  say,  2 
years  by  extending  the  existing  Method,  crisis  levy,  salary  structure  including  allowances  and 
pensions regime.  Secondly,  a  firm  commitment to  present  an  integrated package  for  revision  of 
the  Staff  Regulations  together  with  a  new  Method  and  measures  to  address  the  long-term 
equilibrium of the pension regime  by December 2001. 

This  would  allow  the  Commission  to  present  an  integrated package  to  Council allowing  time  to 
reach  agreement  before the expiry of the short term extension of the  Method.  There  are  no  legal 
impediments to such an  approach and there are considerable practical advantages. 

Investing  in  Refomz 

Implementing  the  Reform  will  require  an  investment  of  resources.  Accordingly,  as  already 
mentioned,  posts  will  be  made  available  immediately  by  means  of administrative  measures  to 
reduce the  vacancy rate in  the Commission, for a  period of two  years,  notably to support the new 
internal control system and to  develop  Activity-Based Management  in  the  Directorates-General. 
In  addition,  substantial  increases  will  be  sought  from  the  Budgetary  Authority  in  the  level  of 
resources allocated to training and to  information technology.  In  the  latter area,  this  will  help  to 
the  rest  of  the  Commission. 
close 
Strengthening  IT  provision  in  delegations  is  a  prerequisite  for  greater de-concentration  of tasks 
from  headquarters.  Resources  need  to  be  released  to  tackle  the  backlog,  notably  in  the  external 
aid sector. 

the  gap  between  the  provision 

in  delegations  and 

Strnctures for delivering and communicating Refom1 

Establishing  and  implementing  the  process  of Reform  has  several  aspects  and  the  Commission 
has consequently set  up  several  structures for delivering the  Reform,  including the  Reform Task 
Force,  Planning  and  Co-ordination  Groups  chaired  by  Directors  General  to  test  proposed 
measures  from  an  implementation  point  of  view  and  a  Reform  Group  of Commissioners. 
In 
parallel, Relex Commissioners are reviewing the management and delivery of external aid  in  line 
In  addition,  the  horizontal  Budget  and  Personnel  and 
with  the  principles  of  the  Reform. 

25 

Administration  departments  have  also  been  given  significant  responsibilities  and  a  Deputy 
Secretary General  will  be  appointed with  the  specific  remit  of improving  working  practices  and 
associated  tasks.  The  Vice-President  for  Reform  is  setting  up  an  External  Advisory  Group 
composed of experienced  leaders  from  public  administrations  and  the  private  sector to  provide 
advice on the Reform process.  The Commission will  review  the  structure for delivering  Reform 
regularly,  starting in  July 2000 and will  make any changes needed. 

The Commission will  continue  to  ensure  full  communication  with  and  involvement  of staff and 
provide for effective means of feedback and input.  This communication strategy is  intended as  a 
supplement to, and not a replacement for,  the normal consultations with staff representatives. 

Role of European Parliament and Council 

The Commission cannot achieve  the objectives of comprehensive Reform on its  own.  A  results 
based  approach  to  setting  and  implementing  priorities  represents  a  change· of behaviour  within 
the  Commission.  It  can  only  succeed  if there  is  a  parallel  change  within  the  Council  and  the 
Parliament  so  that,  when  they  ask  the  Commission  to  assume  new  tasks,  they  are  conscious  of 
The 
the  implications  for  the  Commission's  ability  to  execute  existing  responsibilities. 
Commission  will  have  to  refuse  these  tasks  when  it  is  not  properly  resourced:  the  other 
institutions  should  not  regard  such  a  refusal  as  a  negation  of  the  democratic  will  but  as 
responsible  and  reasonable  behaviour  necessary  to  safeguard  the  interests  of EU  citizens  and 
taxpayers.  Better planning  and  programming  of activities  and  improved  dialogue  between  the 
Institutions should, however, prevent matters ever getting to such a situation. 

Finally,  as  legislators,  the  Council  and  the  European  Parliament  will  handle  the  revision  of the 
Financial  Regulation  and the  Staff Regulations.  The Court of Auditors  will  also  be  called on  to 
give  an Opinion on the new Financial Regulation.  Unlike most other legislative proposals, these 
me<)Sures  have a direct impact on the way the other institutions operate.  Therefore, achieving the 
objective  of full  implementation  of the  action  programme  set  out  in  this  White  Paper  by  the 
second  half of 2002  requires  the  active  support  and  commitment  of all  European  Institutions, 
each of which has emphasised its desire for effective and comprehensive Reform. 

Vil 

CONCLUSION 

This  White  Paper  sets  out  a  programme  of  reform  to  equip  the  Commission  with  an 
administration  that  excels.  The  programme  runs  to  the  second  half  of  2002,  and  includes 
legislative  changes  to  the  Staff and  Financial  Regulations.  Like  all  such  programmes,  it  will 
require  a  significant investment  in  change.  The Council and the  European Parliament  must  al~o 
play  their  part.  They  have  rightly  willed  the  ends,  it  is  sensible  to  expect  them  to  will  the 
necessary means 

This  Reform is  a  once-in-a-generation  programme.  One of its  purposes  is  to create  a culture of 
continuous improvement and to ensure that the Commission is  flexible  enough to change itself in 
the future  as new challenges confront it  in  an ever-changing world.  The Commission will review 
progress  in  the  second  half of 2002.  when  it  expects  to  have  implemented the  Reform  Strategy 
set out in this Paper. 

As the  key principles of independence, accountability, responsibility, efficiency and transparency 
are  further  embedded  in  working  practices,  further  change  can  be  incremental  and  led  by  the 
staff themselves.  Indeed,  without the  full-hearted  commitment of staff at  all  levels,  no  progress 
will  be  made.  Part  of the  purpose  of this  programme  is  precisely to  release  further  the  energies 
and  talents  of the  high  quality  staff of the  Institution,  and  to  provide  better  working  lives  for 
them.  The  scale  and  nature  of many  of the  changes  will  pose  a  challenge  to  the  people  in  the 
Commission. 
It  is  a  challenge  to  which  they  will  rise,  due  to  their  high  level  of ability  and 
commitment, together with the new support systems and training provision. 

26 

But the  underlying objective  must  be to  serve  the citizens of Europe,  and  the European  ideal,  by 
maintaining and strengthening  the  key role  of the  Commission  as  an  independent public  service 
acting as  the guardian of the Treaties and th~  motor of the  Union.  The Commission  has  a  proud 
history and an essential role to  play  now.  It is  more important than  ever as the Union faces  up to 
the  governance  of  the 
the  challenges  of  enlargement  and  globalisation.  Modernising 
Commission,  as  part  of the  wider  challenge  of modernising  the  governance  of the  Union,  will 
enable the Commission to play its essential role  for the future of Europe. 

0-0-0-0-0-0-0-0-0-0-0-0-0-0-0-0 

27 

ANNEX 1 TO CONSULTATIVE DOCUMENT ON REFORMING THE COMMISSION 

•  KEY REFORM ISSUES  • 

I. 

KEY CHANGES IN  ADMINISTRATIVE FUNCTIONS AND STRUCTURES  INTRODUCED BY THE REFORM 1 

A.New 

Under the authority of the President, a Strategic  Planning and  Programming  function  in  the Secretariat-General  will  assist  the College in  setting  priorities and  allocating resources 
and  in  promoting performance  management  and  a second  Deputy  Secretary-General  will  have  the  specific  responsibility  for  devising  more efficient  working  methods,  cutting  red 
tape and simplifying systems. 

An  Internal  Audit  Service,  under  the  responsibility  of the  Vice-President  for  Reform,  will  carry  out  the  ex-post  examination  of the  Commission  services'  internal  control  and 
management  systems  and  performance, and  provide  necessary advice  to  management.  An  Audit  Progress  Committee,  under  the  responsibility of the  Budget  Commissioner,  will 
ensure that the recommendations are followed  up. 

An  Committee on Standards in  Public  Life will  advice on  ethics and  Standards of Conduct  in  all  European  Institutions. 

B.  Adapted 

Building on  the  existing structure,  a central  Career Guidance  function  will  ensure that  the Commission can  better  match  its  staff with jobs,  assess  and  guide  mobility and  provide 
training. 

Bringing  together existing  functions  and  adding  new  ones,  a  Central  Financial  Service, operating  under  the  responsibility of the  Budget  Commissioner,  will  define  the  financial 
rules and  procedures and  the minimum standards for  internal  control, provide advice to operational departments and  develop  and  manage common  financial  management  information 
systems. 

Building on  the  existing  structure,  a  Central  Mediation  Service  will  be  created  to  offer  assistance  to  staff members  reporting  alleged  wrongdoing  tbat  docs  not  involve  fraud  or 
other action  affecting the financial  interests of the Community. 

An  Inter-institutional  Disciplinary  Board  will  replace  the  present  Disciplinary  Board  and  a  function  in  the  Commission  will  he  created  to  prepare and  bring  the  Administration's 
case to the  Disciplinary  Board. 

1  For a full  overview of all  administrative  functions  and  structures sec action  plan. 

28 

C.  Abolished 

The current DG  Financial  Control  will  be  abolished  following  the  incorporation of its  internal audit activities  into the  Internal  Audit  Service and  the abolition,  in  the new Financial 
Regulation, of the ex-ante visa  by the financial  controller. 

The Inspectorate General of Services will  be  abolished  following the incorporation of its activities into the Internal  Audit Service. 

As part of the programme  of administrative  simplification  the second Deputy Secretmy-General,  the  Strategic  Planning  and Programming function  and the  Internal Audit Service 
will stll{f\' any further changes to simplify existing.fu11ctio11.\· and structures. 

29 

II. 
YEAR 

= 
= 
= M 

CHRONOLOGY OF KEY  REFORM ACTIONS

1 

QUARTER 

KEY  REFORM  ACTION 

Commission proposal  for  a Regulation on  public access  to  European  Parliament, Council and Commission documents 

2000/1 

Continuing  work  on  the  development  of the  information  technology  tool  (Integrated  Resource  Management  System)  to  support  the  introduction  of 
Activity-Based  Management. 

Commission proposal  for  recasting the Financial  Regulation  (induding the suppression of the ex-ante  visa). 

-r 

Creation of an  Internal  Audit Service, an  Audit  Progress Committee and a Central  Financial Service. 

2000/11 

Strengthening of internal  control  in  Commission depat1ments. 

Diffusion  of Activity-Based  Management. 
Establishment of the new Strategic  Planning and  Programming cycle (SPP)  necessary  for  lhe operation or Activity-Based  Management. 

Appointment of second  Deputy Secretary-General 

2000/III 

Commission Communication on  externalisation. 

Commission Communication on  the resource  implications of reform. 

Consultative documents on discipline, professional  incompetence,  whistleblowing,  new career system and  new management policy. 

2000/IV 

Commission decision on  a financial  corrections mechanism for  the Structural  Funds. 

Commission Action  Plan on  the simplification of administrative procedures. 

1  For a full  chronology of all  actions sec  Annex  2 

,, 

JO 

YEAR 

QUARTER 

< 

.'. 

2001/1 

~ 

= =  2001/11 

N 

Commission Decision  on  further decentralisation in  terms of internal  working practices. 

Consultation of OSPs  within Commission on  the proposed changes to  the Staff Regulations. 

.  Contracts database 

KEY  REFORM  ACTION 

!. 

·,. 

Commission decisions on  a new evaluation system for  staff,  a new  promotion system  for  staff and a new  management policy. 

2001/IV 

Consultation of Inter-Institutional Staff Regulations Committee on  the proposed changes to the Staff Regulations. 
Commission submits integrated  proposal  to Council on  Method,  pension  regime and the changes to  the Staff Regulations necessary for  Retcxm. 

Agreement by Council  to the amendments to the Staff Regulations and  the Financial regulation  necessary for  Reform. 

Commission adopts review of progress on  Reform. 

·: 

' 

N 

= 
= N 

JI 

Annex 2 

THE CONSULTATION PROCESS 

Following  the  adoption  by  the  Commission  on  18  January  of a  consultation  document  as  the 
basis  for  internal debate on the  shape  of the  Reform,  staff throughout the  Commission  took  part 
in  structured discussions within  their Directorates General as  well  as  participating directly in  the 
consultation  whether  through  direct  messages  to  the  Vice  President  for  Reform,  through 
contributions  to  the  Reform  Forum  website  on  the  Commission's  intranet,  or  in  cross-service 
groups established spontaneously by officials themselves.  Comments came  from  throughout the 
Commission, regardless of grade or location.  Full consultation with staff representatives has also 
taken  place,  leading  to  a  clarification  of  positions  as  well  as  a  resolution  of  the  General 
Assembly of personnel, both in Brussels and Luxembourg. 

This  level of staff interest is  important for the  success of the  Reform and ways  will  be  sought to 
maintain  it  at the  level of Directorates General and generally across the  Commission,  both in  the. 
formal  consultation  on  detailed  measures  and  on  the  implementation  itself.  This  will  include  a 
mechanism  for  submitting  and  acting  on  suggestions  for  improving  the  way  the  Commission 
works.  Naturally,  none  of  this  will  replace  the  existing  arrangements  for 
inter-service 
consultation and the social dialogue on specific proposals in  the areas set out in the  Action Plan. 

This  note  summarises  the  main  comments  and  the  way  the  White  Paper  has  taken  them  into 
account. Other comments will provide an  input to the preparation of implementing measures. 

I. THE REFORM CONTEXT 
Key concerns 

• 

Political vision not evident 

•  Reform strategy not clearly stated 
•  Tone of document negative about staff 
•  No reference to external policy 
•  Consultation too short 
•  Assumes no big change in  staffing levels 

K'ey responses in the White Paper 

• 

Introduction by the College and other 
references 

Text recast plus College introduction 
External service and external aid added 

•  Reform linked clearly to  strategic objectives 
• 
• 
•  Consultation continues on  measures 
•  Commission ready to ask for  more staff after an 

internal restructuring and shoukl a needs 
assessment prove it necessary 

II. A SERVICE CULTURE 

Key concerns 

•  Understates political role of Commission 
•  Retention of Commission's independence 
•  Empowerment/decentralisation missing 
•  Responsibility of Commissioners 

Key responses in the White Paper 
Spelt out in  Section  I and introduction 
• 
Spelt out in  Section  I and introduction 
• 
• 
Empowerment/decentralisation added 
•  Responsibilities already clearly stated 

III. PRIORITY SETTING AND ALLOCATION OF RESOURCES 

Key concerns 

Key responses in the White Paper 

•  ABM seems complex 
•  Need for  flexibility to respond to events 
•  College must take political decisions 
•  Role of other institutions in  priority setting 
•  Externalisation text weak 
•  Fear of widespread privatisation 
•  Control over external  bodies 
•  Little detail on  working method improvements  •  Detail in  White Paper and Action  Plan 
•  Greater flexibility needed in  structures 
•  Too much centralisation at  present 

•  Presentation improved 
•  Room for  flexibility more clearly explained 
•  Text made more explicit 
•  Seek agreement with EP and Council 
•  Rewritten 
•  Explicitly ruled out 
•  Highlighted as a key issue - ref.  to Article 274 

• 
Specified in  Action Plan 
•  Emphasis on greater delegation 

32 

IV.  HUMAN RESOURCES 

Key concerns 

•  No reference to research or external service 
•  Negative tone 
•  Nationality element in  recruitment 
•  Suggested inter-Institutional recruitment office 
•  Temporary contracts for  new staff opposed 
•  Concern about  link between  pay & linear 

career 

•  Time needs to be given to attend training 
•  Training seems to be mainly for  managers 
•  Doubts about annual staff appraisals 
•  Opposition to quota of notation points 
•  Equal opportunities section weak 
•  Sexual/other harassment not addressed 
•  General concern about pay and pensions 
•  Universal opposition to "light" Statute 
•  Early retirement needs to be more attractive 
•  No reference to joint staff committee system 

• 
• 
• 
• 
• 
• 

• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

Key responses in the White Paper 

Both areas specifically mentioned 
Ambiguous phrases clarified 
Nationality element dropped from competitions 
Such an  office to be considered urgently 
Temporary contract for  new staff dropped 
Specific conditions to ensure that there will  be 
no deterioration  in  terms and conditions 
Emphasis on learning culture and provision 
Continuing training for all  staff confirmed 
Issue of apparent burden to be addressed 
Further consultation on  variety of options 
Actions much more specific 
Provision for  mediation function 
Clear description of the Commission strategy 
'"Light" Statute suggestion dropped 
Commitment to develop a framework 
Principle of involving staff committees in 
human resources policy is  maintained 

IV.  FINANCIAL MANAGEMENT Al\l) CONTROL 

Key concerns 
•  Need for financial  training 
•  Responsibilities need to be clear 
•  Need to address issue of financial liability 
•  Staffing implications of DG level  controls 
•  More information needed on transition phase 
•  Role of accounting officer unclear 
•  Timetable tight 
•  Redeployment of DG Audit's current staff 

V.  DELIVERING AND SUST AINI2'G  REFORM 
Key concerns 

•  Feasibility of timetable 
•  Complicated implementing structure 
•  Resource implications 
•  Workload for  all DGs not just lead services 

•  Need for staff involvement 
•  Need system for  monitoring .the reform 

VI.  CONCLUSION 

•  Self-critical tone of parts of the document 

Key concerns 

• 
• 
• 
• 
• 
• 
• 
• 

• 
• 
• 
• 

• 
• 

• 

Key responses in the White Paper 
Detailed outline of training programme 
Text more explicit 
Proposal to change Financial  Regulations 
Additional resources to be made available 
Detailed outline of the implementation process 
Text more explicit 
Mobilise resources to meet the objectives 
Redeployment strategy designed 

Key responses in the White Paper 

Some dates adjusted; progress to be monitored 
System to be reviewed in July 
Extra resources to be  allocated; more sought 
Extra resources for  to additional  work in  short 
term 
Further consultation; ideas bank 
Regular reports to the Commission 

Key responses in the White Paper 

Text revised 

. 33 

GLOSSARY 

Annex 3 

A 

Accountability 

Obligation to answer for a responsibility that has  been conferred. 

Accounting Officer 

One of the three  financial  actors defined by the Treaty.  In  charge of the  accounting systems,  the 
treasury  and  the  financial  reporting  to  other  institutitons. 
In  the  organigramme  of  the 
Commission, the director of the  Accounting Directorate within DG Budget. 

Activity Based Budgeting (ABB) 

Budgetary building block of the wider Activity Based Management approach. 

Activity Based Management (AB:\·I) 

New  programming,  budgeting,  managing  and reporting  method adopted by  the  Commission.  It 
encompasses  prioritisation  and  resource  allocation  at  the  level  of  the  College  and  general 
principles for management at  the  level of departments. 

Audit Progress Committee (APC) 

Committee chaired by the Budget Commissioner and further composed of the  Vice-President  for 
Reform, two other Commissioners and an  external member.  It will monitor the control processes 
of the  Commission  through  the  results  of audits  of the  Internal  Audit  Service  and  the  Court  of 
Auditors;  the  implementation  of  audit  recommendations,  including  those  from  the  Court  of 
Auditors accepted by the Commission; and the quality of audit work. 

Authorising Officer 

One  of the  three  financial  actors  defined  by  the  Treaty.  Authorises  expenditure  and  issues 
recovery orders.  The College  has  the primary power to  authorize expenditure.  It  can delegate  it 
to  officials  (i.e.  Directors  General  )  who  may  subdelegate  that  power  under  the  conditions 
defined by the Commission's internal rules on the execution of the budget. 

C 

Central Financial Service (CFS) 

Central  financial  help-desk  within  DG  Budget  in  charge  of  defining  rules,  procedures  and 
minimum  standards  for  internal  control,  providing  advice  on  their  application,  developing 
financial information systems and delivering training. 

34 

Committee of Independent Experts ( CIE) 

In  the context of the  refusal  by the European Parliament (EP) of the  1996 discharge,  a  resolution 
of  14  January  1999  called  for  a  Committee  to  be  set  up  to  "examine  the  way  in  which  the 
including  a 
Commission  detects  and  deals  with  fraud,  mismanagement  and  nepotism, 
fundamental  review  of Commission  practices  in  the  awarding  of all  financial  contracts".  The  5 
members  were  appointed jointly  by  the  EP  and  the  Commission  and  submitted  a  report  on  15 
March  1999 which led to the resignation of the  Commission the  following day.  A second report, 
listing  90 
focusing  on 
recommendations  to  prevent  mismanagement,  irregularities  and  fraud  was  submitted  on  l 0 
September 1999. 

reosurces  management  practices  and 

and  human 

financial 

Committee on Standards in Public Life 

Inter-institutional Committee which will provide advice on ethics and standards of conduct  in  all 
EU Institutions. 

Control 

Any action taken by management to enhance the  likelihood that established objectives and  goals 
will  be  achieved.  Management plans,  organises and directs the performance of sufficient  actions 
to provide reasonable  assurance  that objectives and goals will  be  achieved.  The result  of proper 
planning, organising and directing by management. 

Control Self-Assessment 

Process which  involves  line  management and staff in  identifying objectives, controls and risks  in 
their area and agreeing and implementing improvements. 

Cost-Effectiveness 

Relationship  between  the  cost  of a  given  level  of output  and  the  extent  to  which  such  output 
achieves, or helps to achieve an objective. 

D 

DECODE 

Designing Tomorrow's Commission (from French title  "Dessiner la Commission de demain").  A 
"screening  exercise"  launched  in  October  1997  by  the  Commission  to  provide  up-to-date 
analysis  of all  activities  carried  out  by  the  Commission,  as  well  as  the  resources  and  working 
methods.  Placed under the responsibility of the  Inspectorate General,  the  exercise resulted  in  47 
reports  on  each  DO/Service  produced  by  twelve  screening  teams,  and  in  a  series  of working 
documents  covering  more  horizontal  issues.  A  summary  report  providing  a  broad  picture  was 
issued on 7 July  1999. 

35 

E 

Early Warning System (EWS) 

Computer-based  system  for  the  signalling  of  beneficiaries  of  EU  funds  linked  to  senous 
administrative errors, irregularities or fraud. 

Economy ("doing things cheap") 

Minimising  the  cost  of  resources  acquired  or  used  for  an  act1v1ty,  having  regard  to  the 
appropriate quality.  Cost of actual  input in  comparison with planned input. 

Effectiveness ("doing things right") 

The  extent  to  which  objectives  are  achieved  and  the  relationship  between  the  intended  impact 
and the actual impact of an  activity. 

Efficiency ("doing things well") 

Relationship  between the  output,  in  terms ofgoods, services and other results,  and  the  resources 
used  to  produce  them.  An  efficient  activity  maximises  output  for  a  given  input  or  minimises 
input for a given output. 

Evaluation 

Judgement of interventions  according  to  their results,  impacts  and the  needs  they  aim  to  satisfy. 
Ex-ante  evaluation  is  the  evaluation  of  an  activity  carried  out  before  implementation  and 
examines needs and foreseeable  results and impacts.  Ex-post evaluation is  the evaluation carried 
out either during or after the completion of an  activity and examines impacts. 

F 

Financial control 

(See  also  internal  control)  Set  of  mechanisms  designed  to  ensure  that  the  use  of  financial 
resources  is  made  in  compliance  with  rules  and  procedures.  Its  scope  is,  by  definition.  thinner 
that the one of internal control. 

Financial Irregularities Panel (FIP) 

A  panel  with  helpdesk  function  to  advise  on  possible  financial  irregularities.  Designed  to  be  an 
intermediary  step  between  detection  of  an 
irregularity  and  the  possible  start  of  formal 
disciplinary procedures. 

36 

I 

Information and Communication Technology (ICT) 

The  technology  - hardware  (computers,  personal  computers,  networks,  printers,  scanners,  etc.) 
and  software  (information  systems.  data-bases,  search  and  retrieval  tools,  communication  and 
presentation  facilities,  etc.)  - supporting  the  processes  of  an  organisation  by  providing 
appropriate  information,  supporting  procedures,  communicating  results. 
JCT  enables  the 
redesign of processes to become  more efficient  and effective  not only in  administration,  but  also 
in  policy-making, strategy development and client relations. 

Information System 

A  structured  set  of  hardware  and  software  organised  within  a  functional  and  technical 
architecture.  It  supports  a  vertical  or  horizontal  business  domain  by  supporting  its  workflow 
(e.g.  processing transactions, passing documents, accumulating and consolidating information). 

Internal Audit 

An  independent  and  objective  assurance  and  consulting  act1v1ty  designed  to  add  value  and 
improve  an  organisation's operations  by  bringing  a  systematic, disciplined approach to evaluate 
and  improve  effectiveness  of  risk  management,  control  and  governance  process  (Institute  of 
Internal  Auditors).  The  word  "internal"  is  describing  the  placement  within  an  organisation  and 
not the  subject of an  audit  (complete chain  of management,  if necessary down to  the  level of the 
final  beneficiary). 

Internal Audit Service (IAS) 

New Service,  under the responsibility of the  Vice-President for Reform,  which  will carry out the 
ex-post  examination of the  Commission  services'  internal  control  and  management  systems  and 
performance, and provide necessary advice to  management. 

Internal Control 

The  globality  of  policies  and  procedures  conceived  and  put  in  place  by  an  organisation's 
management  to  ensure  the  economic.  efficient  and  effective  achievement  of its  objectives;  the 
adherence  to  external  rules  and  to  management  policies  and  regulations;  the  safeguarding  of 
assets  and  information;  the  prevention  and  detection  of  fraud  and  error,  and  the  quality  of 
accounting  records and the  timely production of reliable  financial  and  management  information. 
Internal  control  has  five  components:  1)  control  environment,  2)  risk  assessment,  3)  control 
activities, 4) information and communication, and 5) monitoring. 

Internal Control System 

The  whole  network  of systems  established  in  an  organisation  to  ensure  that  its  objectives  are 
achieved and in  the  most economic and efficient  manner. 

37 

M 

MAP2000 

Modernising  the  Administration  and  the  Personnel  policy  with  2000  on  the  horizon  (From 
French:  Modernisation  de  l'administration  et  de  la  politique  du  personnel  a }'horizon  2000). 
Initiative  launched  by  the  Commission  in  April  1997,  building  on  a  report  on  decentralisation 
carried  out  by  the  Inspectorate  General.  The  objectives  were  to  achieve  a  higher  degree  of 
decentralisation  transferring  administrative  management  responsibility  to  Directorates  GeneraL 
to  simplify  procedures  and  to  rationalise  the  usage  of  human  resources. 
It  resulted  in  25 
measures  to  be  implemented  in  two  different  phases:  the  second  one  was  due  to  start  in  March 
1999  but  the  overall ·process  was  put  on  hold  after  the  resignation  of the  Commission  on  15 
March  1999. 

Monitoring 

individuals. 
Observing  and  testing  act1v1t1es  and  appropriately  reporting·  to  responsible 
Monitoring  provides  an  ongoing  verification  of progress  towards  the  achievement  of objectives 
and goals. 

p 

Performance Indicators 

Direct or indirect  measures of the  extent to  which effectiveness~  efficiency and economy.  quality 
and service levels have  been achieved in  an activity or function. 

R 

Risk Analysis 

A  formal  method of evaluating the  vulnerability of a  particuiar system or group of systems.  Risk 
in  systems  may  be  viewed  as  the  chance  (or  probability)  of  one  or  more  management's 
objectives not being met. 

s 

SEM 2000 

Sound and Efficient  Management.  a  reform  programme  of financial  and  resources  management 
adopted,  in  three  successive  stages  by  the  Commission  during  1995.  The  objectives  were  the 
rationalisation  and  simplification  of  financial  management  procedures,  the  evaluation  and  the 
cost effectiveness  analysis  of Community  programmes,  and  a  better taking  into  account  of the 
observations  of  the  Court  of  Auditors,  the  Council  and  the  European  Parliament.  The 
implementation of the programme. which has been reviewed and updated since  then,  is  regularly 
evaluated by external consultants. 

38 

Strategic Planning and Programming function 

Set  up  in  the  Secretariat-General  of the  Commission,  it  will  assist  the  College  in  defining  its 
annual  policy strategy (policy  priorities  and  allocation  resources)  and _will  promote performance 
management throughout the Commission. 

w 

Williamson Report 

Report issued  in  on 6  November  1999  by  the  "'Reflexion Group on personnel policy" chaired by 
the former Secretary General of the  Commission,  David Williamson.  The Group was composed 
on an  equal basis of representatives of the  Administration and of the Trade Unions /  Professional 
Associations  (OSPs);  it  was  set  up  following  an  agreement  between  the  Commission  and  Trade 
Unions/Professional  Associations  (OSPs)  on  18  May  1998  and  reviewed,  during  the  July 
November  1998 period,  a wide  range of human resources related issues.  The report resulted in  a 
series of conclusions and recommendations for further action. 

· 39 

FIGURE I:  OVERVIEW OF THE NEW STRUCTURE FOR  FINANCIAL MANAGEMENT, CONTROL AND  INTERNAL AUDIT 

COMMISSION 

Vice-President 
ror Reform 

.................... 

Budget Commissioner 

1 
' 
! 
I 
' 

Audit Progress 

.. 

Internal Audit Service 

•  Advice on  risk 

management, control  and 
governance  processes 
•  Independent appraisal  of 

adequacy of internal 
control  and  management 
systems 

•  Performance audit 
•  Set audit  standards 

J;. 

[____________________ 
Advice,  il!lor111atio11 

------~ 

! 

I 
I 
I 
I 
I 

------------------------------ -----------------------

----------------i--~ 
I 
: 
I 
I 
I 
I 
i.--------------- j--~ 

I 
' 
' 
I 
' 
I 
' 
I 

Commissioner 

Director General 

•  Responsihle  for  the adequacy 
of management and control 
systems (1) 

I 

1 

I 

Horizontal functions  (2) 

Line Managers 

•  Glohal  hudgeting and resource 

•  Budgeting and  resource 

planning 

•  Actions design, planning and 

monitoring 

•  Define terms of reference (calls 
for  tenders, calls for  proposals) 

•  Decisions on  selection of 

actions for support, monitoring 
and  follow-up. 

planning 

•  Assistance and advice 
•  Management of financial 

systems 

•  Financial  monitoring 
•  Annual  DG  accounts 
•  Financial quality assurance  (4) 
•  Ex-post on-the-spot checks on 

legality and regularity 
•  Audit of decentralised 

management systems Hf 
Community spending 
programmes 

•  Evaluation of internal  controls, 

risk  assessment 

•  Evaluation of actions 

COM Accounting Officer 

•  Consolidated accounts, 

legal  reporting 

•  Treasury,  payments,  hank 

1ransac1i,ms 

•  Accounling systems 

I 
Central Financial Service 
for sound an efficient 
management 

•  Define financial  rules, 

pnx.:cdurcs and  minimum 
standards for internal 
control  and advice on  their 
application 

•  Deliver training and 

manuals (including to 
accession countries) 
•  Provide support  as a help 

desk (networking, 
evaluation, contracts, 
externalisation) 

•  Datahascs (early warning 

system, contracts datahasc) 

L ____________________________________________________________________________________________________________ _ 

---------------------------------------------------------1 

I 

(I) The  Audit  Progress Commi11ee  will  assign  responsibilities in  the Commission  relating to 1he  follow-up  lo he given to audit  reports, lo  monitor progress and lo ensure that  the  Audit  Service's work 

is  fully cmhi:-ddcd in  the  Commission. 

· 

(2)  _The  Director General  will  decide on  the  most  appropriate organisation lo unde11ake  these  functions. 
(3)  The authorising officer checks the  validity of the discharge ('acquit  lihcratoire')  for each transaction.  The  ·acquit  l1hcra1oire·  implies that  lhe  invoice  is  ready lo he  paid hy the  accounting onicer. 
(4)  The  Director General  to decide  whether 1he  linancial  quality assura.nce  should  include ex-anle control  of transaclions (1mtdu/og). 

40 

Annex 4 to White Paper on Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

lsG 

lsG 

lsG 

(cid:143) G 

lsG 

II.  A CULTURE BASED ON SERVICE 

I Lead Service 

11 

Actions 

I.  Standards of behaviour In public life 

1. 

A Committee on Standards in Public Life 

Commission Proposal 
Institutional Agreement 

II.  A code of good administrative behaviour 

2. 

A Code of Good Administrative Behaviour 

Ill.  New rules  to enhance Public Access to documents of Community Institution. 
Proposal for a Regulation on public access to European  Parliament, Council 
and Commission documents 

3. 

IV.  Improving the dialogue with civil society 

4. 

5. 

Development of a set of  recommentations identifying best practices in 
consultation 

Establishment of a list of the committees and working droups involved in 
formal or structured consultation procedures. 

I 

V.  Code of conduct with the European Parliament framework 

6. 

Negotiate a new framework agreement in line with  Parliament's  Resolution 
of 15 September 1999 on the new Commission. 

DG  ADMIN/DIL, 
CTI, SG, OPOCE, 
INFSO, Press 
Service 

VI.  Towards the e-Commfssion 

7. 

Towards the a-Commission 

(a)  ICT support 

(b) Communications networks 

8. 

Meeting users' needs 

(a) feedback mechanisms and technology developments 

(b) Moving to interactive policy consultations using Internet 

(c) Constant improvement of the "Europa" Web site 

9. 

Electronic public procurement and transactions 

I IMrchl  Apr I May I Jun I Jul I Aug I Sep I Oct I Nov I Dec I ~ 

I I  I  I ~  I  I  I  I  I  I , I CJ 

✓ 

CJ 

~ 

I>>  I >>  I >>I>>  I>>  I>>  I >>  I >>I>>  I>>  I (cid:143) 

>> 

>> 

>> 

>> 

\ 

>> 

>> 
>> 

>> 
>> 

>> 
>> 

>> 
>> 

>> 

>>.  >> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 
>> 

'ii 

✓ 

>> 
,; 

VII.  Speeding-up payments 

AIIDGs 

BUDG 

10. 

11. 

Reporting on the  record of individual OGs in  meeting payment deadlines 

Central invoices register 

I I I I I I I I I I I~ 

✓ =Target Month 

>> = Ongoing process or preparation time 

41 

Annex 4 to White Paper o~ Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

Ill.  PRIORITY SETTING. ALLOCATION AND EFFICIENT USE OF RESOURCES 

ILead Serv.ice 

I I 

Actions 

I IMrch!  Apr I May I Jun I Jul I Aug l Sep I Oct I Nov I Dec I  120011  2002  I 

VIII.  Activity based management (ABM) 

SG with support ABM 
group 

12. 

SG with support ABM 

13. 

IRMS working to the 
ABM group 

ADMIN/DI with support 
ABM group 
BUDG with support 
ABM _grouQ_ 

14 

15 

16 

A new strategic planning and programming (SPP) cycle (see Figure  1 and 
related text of chapter 111.1  in White Paper) 
Discussion with EP & Council 
Adoption guidelines to operational services 
First SPP circular 
First annual Activity Report by DGs 
Establishment of a Strategic Planning and Programming (SPP) function 
Commission decision on definitions 
Commission decision on establishment SPP function 
Development of an activity-based IT instrument to support Activity Based 
Management 
Development IRMS instrument in line with ABM specs 
Full deployment of IRMS 

Promote diffusion of Activity Based Management practice and 'learning by 
doing'. 
Strengthening of the evaluation system. 

>> 

>> 

>> 

>> 

>> 

>> 

r 

,: 

✓ 

\/ 

✓ 

Jan 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

Jan. 

✓ 

✓ 

IPCG  EXT +PCGHA 

IX.  Developing an Externalisation Polley 
A framework for externalisation 

17 

I 
\/ 

I 
IJ 

D 

SG+ADMIN/D1/IAS 

X.  More efficient, performance-oriented working methods : a work programme 

18 

19 

20 

Decentralisation of decision-making and simplification of administrativ~ 
procedures 
Promoting personal responsibility and initiative and leaner administrative 
structures 
Guidelines job description & task assignment 
Generalised implementation 
Cross-fertilisation, teamwork and quality of  services - guidelines 

✓ = Target Month 

>> ==  Ongoing process or preparation time 

42 

Annex 4 to White Paper on Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

IV.  HUMAN RESOURCES 

I Lead Service 

11 

ADMIN/PCG  HR 

XI.  Management performance 

Actions 

I IMrchlApr  j MaylJun  I  Jul  I Aug  ISeptl  Oct I  Novi Deel  120011 

!2002! 

21. 
a. 
b. 

c. 
22. 

23. 

Selection of senior managers 
Proposals to render the selection procedures more professional 
An  assessment of the application of the new rules on  merit based 
appointments. 
The selection procedures for Heads of  Units will also be revised. 
Ensure continuing evaluation of management performance 
Adoption draft Commission Decision 
Adoption Commission Decision 
Management training 

ADMIN/PCG  HR 

XII.  Recruitment policy 

24. 
25. 
26. 
27. 
28. 
29. 
All 

Better identification of the Commission's needs 
Improving the organisation of competitions 
Geographical balance 
Equal opportunities 
Improving selection boards 
Ensuring transparency for candidates 
Consultative document 
Inter-institutional consultation 
Proposals  for changes in  Staff  Regulations 

XIII.  Career structure,  staff appraisal and promotion 

ADMIN/PCG  HR 

30. 

31. 

32. 

33. 

34. 

Creation of a more linear career system 
Communication on  new career system, incl. proposal to amend the Staff 
Regulations 
Submission of proposal to SAC 

Submission of proposal to the Council 
Agreement by the Council and implementation 
Simplification of existing grading procedures - draft 
Adoption of Commission Decision 
Establishment of a new annual staff appraisal system 
Draft Commission Decision 
Decentralised system 
Promotion based on merit 
Adoption draft Decision 
Adoption Decision 
Application of new system 
Flexibility in  retirement age 
Consultative document setting out framework retirement + proposal to 
amend  Staff  Regulations  & proposal scheme for enlagement 
Submission of  proposal to SAC 
Submission of proposal to the Council 

-.; 

-..: 

. 

GJ 

'I 

' 'i 

-

Aoril 

\jl 

I 

" 

Dec 

Ma 
Dec 

Ma 

May 

-.; 

-.; 

m 

m 

I I I II I I I I I · I ~ 

✓ =Target Month 

>> = Ongoing process or preparation time 

43 

Annex 4 to White Paper on Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

IV.  HUMAN RESOURCES continued ... 

I Lead Service 

I I 

Actions 

I IMrchl Apr I May I Jun I Jul I Aug I Sepq  Oct l Nov I Dec I  120011 

120021  20031 

35 
and 36. 

XIV.  Career guidance,  mobility and underperformance 
Provide access to career guidance 
Encouraging mobility 
Creation central career guidance function 
Decentralised career guidance system 
New version  SYSPER available 
Tackling inadequate performance 
Implementation earty warning system 
Consultative document on professional  incompetence + draft Commission 
Decision + proposals to amend Staff ReQulations 
Adoption of Commission Decision + submission amcnclmcnl  Slaff 
Regulations lo SAC 

37. 

Submission of  proposal  to the Council 
Agreement by the Council and implementation 

XV.  Training 

38. 
39 
40. 
41 
42. 

43. 

Promoting a learning culture 
Supporting the Reform process 
Integrating training with other areas of  human  resource management 
Reform of language training 
Create a New Officials Programme 
Proposals 
Increase training budgets 
Report on measures to increase internal  training activities 
Initial increase in budget of  1.5 Mio€ 
Further total  increase of at  least 4Mio€ 

XVI.  Non-permanent staff 

44. 
a. 
b. 
c. 

d. 

e. 
43. 

45 
46 

Performance of core activities 
Multiannual programme for transformation of credits 
Multiannual programme of transformation of temporary posts 
Amendment  Commission Decision on detached national experts 
Adoption of Commission Decision 
Adoption Draft Commission Decision on  recruitment of temporary agents 
Adoption of  Commission Decision 
Phasing out of all other contractual  staff on  core tasks 
Use of non-permanent staff for non-core activities 
Adoption of draft Code of Conduct 
Adoption of Code of Conduct 
Examine the neerl to change the Staff RegulatiOlls 

ADMIN/PCG  HR 

ADMIN/PCG  HR 

BUOG 
BUDG 
ADMIN/PCG/HR 

ADMIN/PCG/HR 

ADMIN/PCG  HR 

... 

✓ 

.... 

.... 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 
.... 

>> 
>> 

... 

... · 

>> 
.... 

>> 
>> 

>> 

>> 
>> 

m 

m 

Jul. 

Apr. 

Dec 

>> 

>> 
>> 

... 

.... 

.... 

.... 

~ .... 
... 

Ma 

.• May 

=f May 

I Deel 

✓ = Target Month 

>>=Ongoing process or preparation time 

44 

Annex 4 to White Paper on Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

IV.  HUMAN RESOURCES continued ... 

ILead Service 

I I 

Actions 

I IMrchl  Apr I May!  Jun I Jul I Aug I Sep I Octj Nov I Dec I  I  20011 

120021 

ADMIN/PCG  HR 

XVII - Equal opportunities and gender balance 

47. 

48. 
49. 
50. 
51. 

Gender balance 
Equal opportunities in the work place 
Modernising the staff regulations 
Disability 
Racial and ethnic diversity 
Age 
Sexual orientation 

47-51  Consultative document+ Draft Proposal for changes to the Staff Regulations 

... 

Proposal changes Staff Regulations to SAC 
Commission proposal to Council 

Dec 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

>> 

ADMIN/PCG HR 

XVIII.  A better working environment and social policy 

52. 
53. 

54. 

A more service-oriented Directorate General for Personnel & Admin. 
Reconciling professional and private lives 
Consultative document + draft p,:oposal modification Staff Regulations 
Submission proposal to SAC 
Commission proposal to Council 
Social Policy 

XIX.  Transparency of personnel policy 

ADMIN/PCG  HR 

55. 

56. 

Clear rules applied in  a clear way 
Publication Staff Reg. + other Commission's decisions & documents 
Results review admin. proc. for application Slaff Regulations 
The Staff Regulations 
Results examination + consultative document if necessary + draft proposals to 
Submission proposal to SAC 
Submission proposal lo Council 

change Staff Regulations 

'\ 

ADMIN/PCG  HR 

XX.  Discipline 

57.  + 
58. 

Improvements al the level of administrative practice 
Improvements in  the staff Regulations 
Consultative document + proposals improving admin.proc. & amendments to S 
Adoption Draft Commission Decision 
First reading proposal amendment Staff Regulations 
Adoption Commission Decision 
Submission proposal to amend Staff Regulations to SAC 
Submission proposal to Council 

i.R. 

✓ =Target Month 

>> = Ongoing process or preparation time 

45 

"I 

"I 

"I 

"I 

"I 

✓ 

✓ 

Dec 

Dec 

Annex 4 to White Paper on  Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

IV.  HUMAN  RESOURCES continued ... 

llead Service 

I I 

Actions 

I IMrchl  Apr I May I Jun I Jul I Aug I Sep I Oct I Nov I Dec I  120011 

120021 

XX/.  Rules for whistleblowers 

59. 

ADMIN/PCG/HRDI 

60. 

Rights and obligations on reporting  wrongdoing  to be inserted in  the Staff 
Regulations 
Creation of a central mediation service 

56-60  Communication rules whislleblowing + proposal changes S.R.  + 

clarification reporting wrongdoing to OLAF 
Adoption Draft  Commission Decision 
Draft Inter-institutional agreement on  whistleblowers 
Creation central  mediation service 
Adoption Commission Decision 

IADMIN 

61. 

Proposocf appr0c1ch to pay &  pensions 

XXII.  Pay and pension 

..  I 

,. 
,· 
,· 

Mrch 

D 

BUDG/ADMIN 

XX/II.  Resource implications of reform 

62. 

Review of the resource implications of reform and policy action to deal 
with it. 
Preliminary Drafl  Budget 
Decision on allocation of  posts 
Communication on requirements 

11,1,1111,1111~ 

✓ = Target Month 

>>=Ongoing process or preparation time 

46 

V.  AUOfT,  FINANCIAL  MANAGEMENT AN> CONTROL 

j Lead Sefvice 

I 

Action$ 

j  jM,chf " "  f May f Jm  f  J1~  f Aug  f Soplf  &t f  N,>v f Dec j  CE] 

Annex 4 1o White Paper on Aafonnlng lhe Commlsalon 
TIMETABLE OF ACTIONS 
• ACTIONS 2000/2001  • 

XXIII.  Empo-rment, responsibility and accountability of aulhorlsing o"lc•rs 
and line managen 

63. 

Description of the reapo,_ibi.tiea of each financial actor 

BLOG/TFAA •  PCG FC 
11100&.  BUOG.PCG 
re 
BLOG+PCG FC 
SG.  Bl.OG.  TFAA+PCr. 
FC 
BU)G 

64 

65 
66 

Oelllgationotpowera 

Sllptlfession of ex-a1~e visas 
Financial lrreglJllrihea Panel 

67. 

Financial •ahl•ty governed only by  the  Stall Regulations 

""'N."")"'"M""'1N>.,.'l""'r""'A1""'1.""·u"'"1J1""'x"'"l--,xx~8 Crea::t:,: l-: :~:.;~=~~:-::h~r:::N; .. by  M,ly 2000 

ADMIN'l F AAIBIJOG 
ADMIN'ff AA/81..0G 
SG 01 BLOG 

Reporting and Pla1n11g of the  Internal Aul,t Stirvice 
Separation of mlernal audit from fmancial conlrol 
AA  Audit Progress Cormitlee 

XXIII.  Creation of a Central Financial Service 

BI.Jl:>G•PCG FC 
BtDG 
BI.Jl:>G+P<'..G  FC 

llt.UO,  lfUA  ,f'CCi IC: 
ttt•Kirl'CCi I c; 
UUlO 

I  76 

11 

c,eahon of a Central Financial Service 
Advice on Contraclfng 
Contracts database 
O,Nt1dt101~,1 ""''""'!,; ol fmmo;url n••MIJ""•"" 

(;,11drc1c:1h  arof ,,mdh 
lh,ur 1w1lwrnkH 

69 
70 

71 

I 72 

73 
74 

75 

I IJU 11111  I~ 
1:11  1111111'1 ~ 

11~[1]]]]~[1 ~ 

CfS+IAS, OLAr. PCG 
re.  lfAA 

IIIOOa+CfS+ PCG 
FC.  TFAA 
All DGa+CFS+ PCG 
FC.  TFAR 
1\1 IJGa+CFS,  TFAll 
AIIIJG11 
AIIDOs 

AM  OC:i,+CFS+ PCG 
F-C,  TFAfl 

Ill OGS • CFS+ PCG 
FC. TFAA 

BLOG,  TFAA. AOMIN 
IAS 
AOMIN 
BLOG 

XXIIII.  Financial Management and Control within DirectoralH-Genera/ 

78 

70. 

M,111mum sldnJ,m/s /or mlumal C(Jfl/1'<•1 
Orah Propoa11I 
CornnHron llt,c1sK111 
Segreyat1011 ol dtdms anLI t,narx:ial circ11ts 

80. 

Evoluhon of the role of finance unit&  in DG 

81 
82 
83 

Strenglhenrny the rolll of the OGa' control h•x:t,on 
[)oclardlion by lhe Direclor Gonmal m IM:r/1•" 11,nml l\i:hv11y  l"luport 
Ado<1ua1e  ltivu .. ol atattmu 

XXV//1.  The  Tran•illon Phase 
I 

84 

llev,ew 1111d  assessment ol cu;ront intem;rl co11trc•ls  11111I  li11ancial processes 

Description of Cla'rent  syste1n1 
SeN·asseasmenl 
Oesign ol .tdequate ,ntemal co1111ols  and finiln<:1111 processes 
Set 141 of control hn:lio•• 
Chanue• in or91111isation charts 
Conpllance with al rrinirnrm stanrlards 
OecenlraMsation 
Review ol progreas made by Cormiss10n's services in the change process 
Financial Control 00 and lnapeclorate Genaral of Servx:es 
Cor111ullation ol ACPC 

85 

86 
87 
88 
89. 

XXIX.  Human Resoun:H and Training 

BLOG.  TF AA+  PCG FCI 

110 

!JI 

Assessment of human resources needs  /or linancial management and 
con/Toi 
IV.  lhe level of operat10nal OGa 
IV.  the  level of the Cormiss10n 
11)  Trai11111g  on lire p,11rc111les  of #1e  new Co11w1riss1on's  fr11a1rci1,/  system 
b)  Trainmg on 'value for money· 

c) Training on budgetary 1111d  financial m1m11ge11,ent 

IIUDG,  SO.  IS 
Of  N, IA.',,  lllUGf-l, 
/\llMIN 

/IM  DGs. OI.AI:.  BlUG 
llUIKlE I.  IAS, l S, 
01.AF+PCGFC 
BLOG. OI.AF.  LS 
llfGIO 
1\0111 

XXX.  Prott1cllng lht, Community's Financial lnlere•I• 

92 
!13 

Gukle~nus tor so11id pro,.,cl llktrlilOC,rncrd 
Bollor cn·orcJ11 .. 11ion of mlmachon bolwnon Ol.Af  aud olh,,r smv";u~ 

!14 

I 11.ul "timulu~( ol lu1ps~11ion 1111d i:ordrm:t ""''"'\rimll~ 

95 

Opt1111sahon ol Early  Warml\l System 

!J6 
!J7 
98 

More ellective m11111!)111nenl  of recovery of 1ffdut)' paitt huts 
1r,,11ovml rnmilonng ol Slruct..-al huts 
Su,,,hhml ck,arance pmcodure ~>r  f.AUGI 

I l,lll-11:·llll 

~ "  Target Month 

»  = Ongoing procasa or preparation tlma 

47 

Annex 4 to White Paper on  Reforming the Commission 
TIMETABLE OF ACTIONS 
- ACTIONS 2000/2001  -

ABM 

= WORKING GROUP ON B7ACTIVITY BASED MANAGEMENT 

ADMIN 

= DG PERSONNEL AND ADMINISTRATION 

AGRI 

AISM 

BUDG 

DI 

= DG  AGRICULTURE 

= WORKING GROUP ON ACTIVITY EXT BASED MANAGEMENT 

= DG  BUDGET 

= INFORMATICS DIRECTORATE 

F.CONTROL 

= DG  FINANCIAL CONTROL 

IAS 

IGS 

INFSO 

OLAF 

= INTERNAL AUDIT SERVICE 

= INSPECTORATE GENERAL 

= DG INFORMATION SOCIETY 

= ANTI-FRAUD OFFICE 

OPOCE 

= OFFICE OF PUBLICATIONS 

PCG EXT 

= PLANNING COORDINATION GROUP ON EXTERNALISATION 

PGG HAD 

= PLANNING COORDINATION GROUP ON  HUMAN RESOURCES 

PCGIAS 

= PLANNING COORDINATION GROUP ON INTERNAL AUDIT SERVICE 

PCG  FIN 

= PLANNING COORDINATION GROUP ON THE FINANCIAL CIRCUIT 

REGIO 

=  DG  REGIONAL POLICY 

SG 

SJ 

SAC 

TFAR 

= SECRETARIAT GENERAL 

= LEGAL SERVICE 

= STAFF REGULATIONS COMMITTEE 

= TASK FORCE ON ADMINISTRATIVE REFORM 

48 

ISSN  0254-1475 

COM(2000) 200  final 

Vol. I 

DOCUMENTS 

EN 

01  06  04  17 

Catalogue number: KT-CO-00-113-EN-C 

Office for Official Publications of the European Communities 

L-2985  Luxembourg