Reforming the Commission - A White Paper - Part II - Action plan
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 

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Brussels,  1.3.2000 
COM(2000) 200 final 

VOLUME II 

REFORMING THE COMMISSION 

·  A  White Paper - Part II 

ACTION PLAN 

(presented by the Commission) 

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REFORMING THE COMMISSION 
ACTION PLAN 

CHAPTER II - A CULTURE BASED ON SERVICE 

I - Standards of Behaviour in Public Life ..................................................................................... 3 
II - A Code of Good Administrative Behaviour ........................................................................... 4 
III - New Rules to Enhance Public Access to Documents of Community Institutions ................... 5 
IV - Improving The Dialogue With Civil Society ............................................................... : ........ 6 
V - Framework Agreement with the European Parliament ........................................................... 7 
VI _,  Towards the E-Commission ................................................................................................. 8 
VII - Speeding Up Payments ..................................................................................................... 11 

CHAPTER III - PRIORITY SETTING, ALLOCATION AND EFFICIENT USE OF , 
RESOURCES 

VIII - Activity Based Management (ABM) ................................... , ............................................. 13 
IX - Developing an Externalisation Policy ................................................................................. 18 
X - More Efficient, Performance-Oriented Working Methods: A Work Programme .................. 21 

CHAPTER IV - HUMAN RESOURCES 

XI - Management Performance .................................................................................................. 24 
XII  - Recruitment Policy ........................................................................ .-.................................. 26 
XIII - Career Structure, Staff Appraisal and Promotion .............................................................. 28 
XIV - Career guidance, mobility and underperformance ............................................................ 32 
XV - Training .......................................................................... .-... : ............................................. 34 
XVI - Non-Permanent Staff ....................................................................................................... 37 
XVII - Equal Opportunities and Gender Balance ....................................................................... 39 
XVIII - A Better Working Environment and Social Policy ........................................................ 41 
XIX - Transparency of Personnel Policy .................................................................................... 43 
XX - Discipline ......................................................................................................................... 45 
XXI - Rules on Whistleblowing ................................................................................................. 47 
XXII  - Pay and Pensions ......................................................... ; ................................................. 48 
XXIII - Resource Implications of Reform .................................................................................. 51 

CHAPTER V - AUDIT, FINANCIAL MANAGEMENT AND CONTROL 

XXIV - Empowerment, Responsibility and Accountability of Authorising Officers and Line Managers 
.................................................................................................................................................. 53 
XXV - Creation of a Central Internal Audit Service .................. ~ ............................................... 55 
XXVI - Creation of a Central Financial Service ........................................................................ 58 
XXVII - Financial Management and Control within Directorates-General··:····························· 60 
XXVIII - The Transition Phase ................................................................................................. 64 
XXIX.- Human Resources and Training ., .................................................................................. 67 
XXX_ - Protecting the Community's Financial Interests ..... : ....................................................... 69 

Annual Strategic Planning and Programming Cycle 

Figure I: 
Figure II:  Reform of Personnel Policy 
Figure III:  The Financial Circuit 
Figure IV:  Overview of the implementation process for strengthening financial  management and 

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control capacity within DGs 

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CHAPTER II -A CULTURE BASED ON SERVICE 

I - STANDARDS OF BEHAVIOUR IN PUBLIC LIFE 

1. 

OBJECTIVE 

To  support  holders  of public  office  and  officials  in  maintaining  high  standards  of ethical  behaviour 
thereby contributing to the confidence of the public in the functioning of the European Institutions. 

Standards in public life are not static.  Although ethical standards must be reflected in the  legal  framework 
of the European Institutions,  an  additional explicit ethical  framework  can  help  to  focus. on results  and. to 
clarify remaining grey areas.  In the context of the current administrative reform the additional challenges 
that  a  clear  and  workable  framework  for  ethics  will  have  to  address  are  greater  decentralisation  and 
delegation of authority, new forms of service delivery and a greater focus on the interests of users. 

All this puts greater emphasis on accountability.  The purpose of action in  this  area is to  supply a general 
framework  to  support  holders  of public  office  and  officials  in  dealing  with  the  more  complex  ethical 
issues involved in  new  ways of delivering public services and new  management  approach,  and to  prevent 
corruption. 

2. 

ACTION RECENTLY TAKEN 

A  Code  of  Conduct  for  Commissioners  and  a  Code  of  Conduct  governing  relations  between 
Commissioners and Departments were adopted by the Commission in the second half of 1999. 

In  November  1999  the  Commission  approved  at  first  reading  a  draft  Code  of  Good  Administrative 
Behaviour (see Chapter II-II - A Code of Good Administrative Behaviour). 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 1 

A  Committee on Standards in  Public Life 

The  Commission  will  propose  that  such  a  Committee  will  be  established  via  an  inter-Institutional 
Agreement.  The  Committee's  role  would  be  to  provide  advice  on  ethical  standards  in  the  European 
Institutions.  This could include a contribution  in  the  context of a general  Code of Conduct applicable  to 
the European Institutions and of specific Codes of Conduct for each Institution as  well  as assistance in  the 
monitoring and implementation of these codes. 

Coherence will  be sought with other measures concerning· professional standards,  in  particular with those 
laid down in  legal instruments (see Chapter IV-XIX,  Action 55  & Action 56). 

4. 

LEAD SERVICE(S) 

Action 1 

SG 

5. 

TIMING 

Action 1 

June 2000- Commission proposal. 

December 2000: target date for inter-Institutional agreement 

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II - A CODE OF GOOD ADMINISTRATIVE BEHAVIOUR 

1. 

OBJECTIVE 

To  establish  guidelines  for  officials  in  their  relations  with  the  public  following  the  call  for  a  Code  of 
Conduct in this area by the Ombudsman in July 1999. 

2. 

ACTION RECENTLY TAKEN 

Preparation for a Code of Conduct for  staff of the  European Commission dates  back to Autumn  1997. · A 
first  draft  code  was  made  available  to  staff on  the  Commission's  Intranet  in  April  1998.  In  November 
1999  the  Commission  approved  at  first  reading  a  draft  Code  of Good  Administrative  Behaviour.  The 
Commission is currently consulting the staff representatives on the draft. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 2 

A Code of Good Administrative behaviour 

The  Code  applies  to  Staff employed  under  the  Staff Regulations  and  the  Conditions  of Employment  of 
Other Servants of the European Communities.  It establishes guidelines for good administrative behaviour 
in the relations with the public. 

4. 

LEAD SERVICE 

Action 2 

SG 

5.. 

TIMING 

Action 2 

April 2000, second reading by the Commission and adoption of the Code 

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III - NEW RULES TO ENHANCE PUBLIC ACCESS TO DOCUMENTS OF 
COMMUNITY INSTITUTIONS 

1. 

OBJECTIVE 

To implement  the  right  of access  of citizens  and  residents  in  the  European  Union  to  documents  of the 
three institutions in line with Art.  255 of the Amsterdam Treaty. 

2. 

,I  ACTION RECENTLY TAKEN 

Code  of · Conduct  concerning  public  access  to  Commission  and  Council  documents  implementing 
declaration  No.  17  attached  to  the  Maastricht  Treaty.  Adopted  on  6.12.1993  by  the  Council  and  on 
8.4.1994 by the Commission. The Eumpean Parliament adopted virtually identical rules on 25.9.1997. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 3 

Proposal  for  a  Regulation  on  public  access  to  European  parliament,  Council  and 
Commission documents 

In  drawing  up  this  proposal  for  a  regulation,  the  Commission  has  taken  into  account,  inter-alia,  best 
practices in Member States'  legislation on access to documents. 

The proposal represents  an  extension to the existing  voluntary code  which  has  existed for  five  years.  It 
includes incoming documents as  well as those drawn  up  by the  institutions.  It requires the  institutions to 
provide public registers of documents and to help citizens exercise their rights. 

Providing the widest possible access is the rule and the provisions in the proposed regulation which  limits 
the  general  rule  ~f access  are  not  new  restrictions  but  merely  a  clarification  of existing  practice.  The 
definition of what is  a document excludes  ''texts  for internal  use  such  as  discussion documents,  opinions 
of departments and informal messages".  This is  in  agreement with the second report of the Committee of 
Independent  Experts  which  emphasised  that  "like  all  political  institutions,  the  Commission  needs  the 
space to think to formulate policy before it enters the public domain". 

4. 

LEAD SERVICE(S) 

Action 3 

SG 

5. 

TIMING 

Action 3 

Adopted by the Co~ission on 26 January 2000.  According to Art.  255.(2) of the Treaty 
of Amsterdam this regulation  will  have to be  adopted by the  Council  according to  the  co 
de~ision procedure before May2001. 

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IV - IMPROVING THE DIALOGUE WITH CIVIL SOCIETY 

1. 

OBJECTIVE 

The Commission adheres to the  principle of open  government.  Timely consultation  with  all  stakeholders 
at  an  early  stage  of  policy-shaping  is  therefore  increasingly  part  of  the  Commission's  practice  of 
consulting  widely,  in  particular  before  proposing  legislation,  to  improve  policy  design  and  to  increase 
efficacy. 

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In order to  be  mutually beneficial, dialogue_ and consultation require proper planning  and  a high  level ·of 
commitment  by  all  participants  throughout  the  process.  The  Commission  therefore  wishes  to  develop  a 
framework of principles for creating a  more  structured and  more transparent  dialogue  with Civil Society 
Organisations. 

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2. 

ACTIONS RECENTLY TAKEN 

On  18 January 2000 the Commission approved the Discussion Paper entitled ''The Commission and Non 
governmental Organisations:  Building a Stronger Partnership". The purpose of this document is  two-fold. 
First of all,  it  aims to  give an overview of the  existing relationships between the  Commission and NGOs 
including  some  current  problems.  Secondly,  it  aims  to  suggest  possible  ways  of  developing  these 
relationships  by  considering  the  measures  needed  to  improve  and  strengthen  the  existing  relationship 
between the  Commission and the NGOs.  Thus,  the Discussion Paper suggests ways  of prnviding  a  more 
coherent Com.mission-wide  framework  for  co-operation  that  has  hitherto  been  organised on  a  sector-by 
sector basis. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 4 

Action 5 

Development of a set of recommendations identifying best practice in. consultation 

Establishment  of a  list  of the  committees  and  working  groups  involved  in  formal  or 
structured  consultation  procedures, 
information  about  the  civil  society 
including 
organisations belonging to  them  (their legal  status,  objectives,  membership structure,  and 
main  sources of financing).  This  information  will be  made available to  the  general public 
on the EUROPA server. 

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4. 

LEAD SERVICE 

Action 4 

Action 5 

SG 

SG 

5. 

TIMING 

Action 4 

December 2000 

Action 5 

June 2001 

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CHAPTER II -A CULTURE BASED ON SERVICE 

I  V - FRAMEWORK AGREEMENT WITH THE EUROPEAN PARLIAMENT 

1. 

OBJECTIVE 

To negotiate  a  new  Framework  Agreement  providing  a  clear codification  of relations. between  the  new 
Commission  and  Parliament.  The  new  agreement  will  build  on  the  principles  and  the  practices  of the 
current agreement, bringing them into line  with the  institutional changes that resulted from the Treaty of 
Amsterdam. 

2. 

ACTION RECENTLY TAKEN 

There is  a Code of Conduct in force  that was agreed between the previous Commission and Parliament in 
1995. 

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3. 

NEW ACTION TO BE IMPLEMENTED 

Action 6 

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

4. 

LEAD SERVICE(S) 

Action 6 

SG 

5. 

TIMING 

Action 6 

Negotiations are underway and they will be concluded at the earliest opportunity. 

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VI - TOW ARDS THE E-COMMISSION 

1. 

OBJECTIVES 

Technological deve.lopment  holds  out the  potential  of modernising  the  administration  and  improving  its 
communication and working methods both internally and with its partner organisations and interlocutors. 
The  Commission's  initiative  "eEurope  - An  information  Society  for  all" 1
,  under  its  action  line  10 
"Government  online",  set  ambitious· targets  for  the  Member  States  and  the  Commission  for  harnessing 
information technology and  Internet  to  provide  better public  services  to the  citizens.  An  easy  access 'to 
public sector statistics and data and electronic public procurement can also give a strong stimulus for new 
private sector value-added services. 

An  administration  based  on  a  high-performance  informatics  infrastructure  will  be  able  to  progressively 
reduce  the  usage  of paper:  it  will  keep  information  electronically  stored  (archiving  and  management  of 
documents  by  e-mail)  and  it  will  undertake  communications  and  presentations  based  on  computer 
technology. This requires effective use of security and encryption technologies. 

In  1995,  "Europa"  was  established  as  the  single  Internet  site  of  the  European  Commission.  The 
Commission uses this site to provide information to and communicate with European citizens. 

The growth of "Europa" has been very significant; recent data shows an impressive level of consultations: 
100 million hits were recorded in November 1999. "Europa" has become the main  information site on EU 
affairs  in  the  world.  "EuropaPlus",  the  internal  Commission's  Intranet  site,  is  also  widely  used  by 
Commission officials and those of the other EU Institutions. 
It is  foreseen  that the use of the Internet will grow strongly over the coming  years.  At  the  same time,  the 
development  and  introduction  of new  technologies  will  have  a  major  impact  on  the  way  in  which  the 
Internet  is  used.  The Commission must  be  at  the  forefront  of web-based technologies,  which  is  the  only 
solution to cope with the ·iQcreased demand and to offer a professional service.  This requires a substantial 
up-grading of Commission's communications networks to ensure appropriate data transmission capacity. 

2. NEW ACTION TO BE IMPLEMENTED 

Action 7 

Definition of a strategy towards the  e-Commission:  better use of JCT and communications 
networks 

(a) 

Better use of JCT 

The  Commission  must  design  a  medium-term  strategy  to  adapt  its  current  IT  policy,  organisation  and 
resources  in  order  to  create  the  e-Commission,  thereby  progressively  reducing  the  use  of paper,  and 
developing an essential building block for the Reform . 

It is  evident  that  all  working  methods  have  to  make  use  of the  potential  of ICT.  The  Reform  approach 
with  its  intention  to  improve· procedures  within  new  ·organisational  frames  is  an  opportunity  to  apply 
business-engineering techniques to streamline  and  simplify  procedures  and then  to build the  appropriate 
JCT support. This calls for a revision of internal policy, organisation and resources. 

JCT support will concentrate on: 

•  Review  of current  ICT  policy  (assessment  of services  needs  - including  specific  profiles,  feedback 

mechanisms, priorities setting, decision-making process, etc.) and proposal for a new approach; 

• 

Information systems to assist operations like policy making (see ABM) and spending funds; 

1 COM (1999) 687, 8 December  1999 

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Information systems to assist administration like accounting, contracts, clients, personnel etc.; 

•  Electronic  document  management  to  support  working  in  groups  and  to  facilitate  research  of 

information, composition of documents, communication of documents etc; 

• 

Information  tools  for  researching  and  aggregating  information  as  input  to  strategic,  conceptual  and 
planning work. The same tools can also be used in audit and evaluation procedures; 

•  A coherent policy to increase the availability of advanced cpmmunications systems and facilities,  with 
a  view  to improving real-time communication  between Commission  sites  and  offices  world-wide,  as 
well as with other European institutions and Member States administrations; 

•  Training,  technical  advice  and  helpdesk  that  will  accompany  the  implementation  of  information 

technology supported working metho~s. 

Urgent  attention  has  to  be  given  in  particular to the  specific  needs  of delegations  some  of which  do  not 
even  have  adequate  access  to  the  most  basic  facilities  (e-mail,  internet,  video-conferencing)  not  to 
mention  the  financial  management  systems  they  will  need  in  order to  take  on  more  responsibilities  for 
project implementation. 

(b) 

Up-grading and improving the security of the Commission's communications networks 

The Commission's communications'  networks will  need to  be  up-graded and made  more  secure  in  order 
to meet the challenge of the e-Commission.  The first step will thus be the definition of a general strategy. 
Communication networks both internal to the Commission and the Institution's connections to the outside 
world, as  well as supporting server. infrastructure and the software it  uses need to be at the cutting edge, if 
the ambitions of the e-Commission are to be  achieved.  As far as telecommunications costs are concerned, 
the liberalised markets should offef'opportunities for savings. 

Action 8 

Meeting users' needs:  internally and externally 

(a) 

Feed-back mechanisms and technology developments 

The  Commission  must  set-up  a  procedure  to  obtain  regular  feedback  from  users  and  regularly  monitor 
technological developments. This will allow to properly assess the level of equipment of consumers, their 
needs and their comments,  with  a  view  to  meeting  their requirements  (multi-lingual,  access  for  disabled 
. and visually impaired people, presentation of information, a rapid reply system, etc.). 

(b)  Moving to interactive policy consultations using Internet 

In  line  with  the  targets  of eEurope  Initiative,  the  Commission  should  extend  the  use  of the  Internet  to 
ensure  consultation  and  feedback  on  major  political  initiatives.  The  aim would  be  to  go  beyond  simply 
publishing policy documents on Internet, and to establish  appropriate  feedback  mechanisms.  Resources 
will have to be made available to this end.  · 

(c) 

Constant improvement of the "Europa" Web site 

The  Commission  must  allocate  the  necessary  financial,  technical  and  personnel  resources  for  constant 
maintenance and up-grading of the  "Europa" site.  Defining the necessary resources  will  thus  be  the  first 
step.  "Europe" is  alreaoy a well-known site,  and maintaining it  up to  highest  standards is  vital  for  the  e-
Commission's image and credibility. 

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Action 9 

Electronic public procurement and transactions 

The Commission will  propose changes to the EU' s public  procurement  legal  framework to  allow  the  use 
of  electronic  means  in  all  public  procurement  procedures  and  transactions.  For  its  own  part,  the 
Commission  will  aim  to  offer  the  possibility  to  citizens  to  carry  out  all  their  interaction  with  the 
Commission electronically.  Internally,  the  use  of electronic  signatures  will  be  accepted  and  encouraged 
for administrative acts, in  line with the electronic signatures directive adopted in November 1999. 

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3. LEAD SERVIC~(S) 

Action 7 

(a) DG Admin/DIL, CTI, DG BUDG, DG INFSO, SG 

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(b) DG Admin, DG INFSO, DG BUDG, SG 

Action 8 

(a) DG Admin, supported ~y OPOCE, INFSO, Press Service, DG BUDG, SG 

(b)  DG  MARKT  to  lead  pilot  exercise,  supported  by  OPOCE,  INFSO,  SG  and  Press 
Service 

(c) DG ADMIN~ DI, SG 

Action 9 

Modifications  to  public  procurement Directives:  DG MARKT,  supported by INFSO,  DG 
ADMIN, and SG 

Commission procurement practices:  DG BUDG, SG,  supported by DG MARKT and  DG 
ADMIN 

Electronic Signatures Directive: DG BUDG, SG, supported by DG ADMIN 

4. TIMING 

Action 7 

(a) July 2000: review of the Commission's overall JCT policy. 

Action 8 

(b) On-going 

(a) Decem~r 2000 
(b) Review by end 2000 
(c) On-going 

Action 9 

Review by end 2000 

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CHAPTER II - A CULTURE BASED ON SERVICE 

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1. 

OBJECTIVE 

Delays in  the payment by the Commission of monies  it owes causes difficulties  for the beneficiaries  and 
is  bad  for  the  Commission's  image  not  least  because  the  Commission  itself,  in  its  Enterprise  Policy, 
proposed legislation to end such practices. 

It  is  Commission  policy  that' all  valid  invoices  should  be  submitted  within  60  days.  For  a  variety  of 
reasons, this timeframe is respected for only 60% of the current payments respect it.  The objective of the 
Reform is  to raise this to 95% by 2002. In addition to the current central monitoring of the performance of 
departments in this  area,  Directorates General will be asked to include  information about their. record on 
meeting  the  60  day  rule  when  reporting  on  performance  generally  in  their  Annual  Activity  Report. 
Improved information systems will assist monitoring across the Commission on a consistent basis.  In any 
case,  the  Commission  is  committed  to  working  towards  the  same  discipline  in  its  payments  as  it  has 
proposed for the  public  authorities  of Member States in  its  proposal  for  the Directive on combating  late 
payments in commercial transactions. 

The sheer scale of the number of individual financial transactions handled annually by the Commission -
now over 600 000 and more than double what it  was five  years ago - is a factor in delaying the processing 
of payments.  When  designing their  systems  for  financial  management,  Directorates General  should  also 
take account of the different workload involved in handling grants, say, as opposed to contracts and of the 
number of payments per commitment. 

2. 

COMPLEMENTARY ACTIONS 

Various  actions  under the· Reform will reduce  the  number  of controls  and  increase  the  efficiency of the 
system. Their implementation will have an  impact on the time taken to process payments: 

•  The  abolition  of the  centralised  ex-ante  visa  and  the  rationalisation  of the  respective  tasks  of the 

authorising officer and the accounting officer 

Expected impact on average time to make Pfl,Yments:  15 days. 

•  The responsibilisation  of managers  will  have  a  double  impact  on the  shortening  of payment  delays: 
first,  managers  will  be  directly  accountable  for  the  output  of their  service  and  their  performance 
assessed  against  objective  criteria  such  as  the  payment  performance  of their  service;  secondly,  the 
review  of  financial  processes  in  order  to  better  define  tasks  and  responsibilities  will  make 
redundancies visible and therefore allow to avoid them 

Expected impact on ave.rage time to make payments:  10 days.· 

•  The  standardisation  of contracts  will  establish  common  rules  and  provisions  on  the  way  claims  are 

submitted and this should speed up the processing of invoices. 

Expected impact on average time to make payments:  10 days. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 10 

Reporting on the record of individual DGs in meeting payment deadlines 

Services will be asked to set their own targets for meeting the Commission-wide target of payment in  60 
.days  for  95%  of invoices  by  2002  and  to  report  on  the  measures  taken  as  well  as  the  results  in  their 

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Annual  Activity Report. The  appraisal by  the  Commission of the  outputs delivered by  services  will  take 
into account this indicator. 

Action 11 

Central invoices register 

A  common  information  system  for  registering  invoices,  also  covering  delegations,  will  be  available 
services  to  allow  a  better  follow-up.  This  system  will  be  linked  to  the  contracts  database,  the  bank 
accounts  system (third-party file)  and  the  accounting  system (Sincom)  and  will  need  to  be  accessible  to 
delegations as well as to headquarters departments. 

4. 

LEAD SERVICE (S) 

Action 10 

All DGs. 

Action 11 

DGBUDG. 

5. 

TIMING 

Action 10 

January 2001  - Annual Activity Reports for 2000 and annually thereafter. 

Action 11 

June 2001. 

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CHAPTER III - PRIORITY SETTING, ALLOCATION AND EFFICIENT USE OF 
RESOURCES 

VIII - ACTIVITY BASED MANAGEMENT (ABM) 

1. 

OBJECTIVE 

Activity  Based  Management  (ABM)  is  the  covering  notion  for  the  new  programming,  budgeting, 
management  and  reporting  methods  adopted  by  the  Commission.  It  encompasses  prioritisation  and 
resource  allocation  at  the  level  of the  College  and  general  principl~s  for  management  at .the  level  of 
departments.  It covers all  resources  managed by the Commission regardless of the  budgetary source  and 
thus covers the European Development Fund and the ECSC as well as the Community Budget. 

In  future,  planning  and  programming  must  be  seen  as  organising  resources  to  carry  out  activities  that 
pursue  clearly  defined  policy  objectives  and  priorities.  Management  by  activities  aims  to:  (1)  increase 
cost  awareness  through  integrated decisions  on priorities,  objectives,  activities  and  allocation  of human, 
administrative and financial· resources,  (2) articulate  strategic planning with the operational programming 
of activities  and  the  monitoring  and  evaluation  of their  implementation,  and  (3)  develop  performance 
management by emphasising results rather than input control. 

Activity Based Management brings together the following elements: 

a) 

Strategic planning and budgeting 

Planning will  take the form of 5-year strategic priorities  and of an Annual Policy Strategy (APS) 
comprising policy objectives, the main activities designed to pursue the objectives for each policy 
and  the  corresponding  human,  administrative  and  financial  resources.  Policy  priorities  and 
budgetary orientations will provide the basis  for the  preparation of the activity-based Preliminary 
Draft Budget (PDB) and the Commission's decision on the allocation of human resources. 

b) 

Operational programming and management 

The  Annual  Policy  Strategy  will  be  translated  into  specific  policy  objectives  and  operatiQnal 
activities (DG mission statements and work programmes) and human, financial  and administrative 
resources  assigned  to  these  activities.  The  Commission  Work  Programme  covers  the  new 
operational decisions to be taken by the College in execution of the Annual Policy Strategy. 

Programming  of  operational  activities  must 
provisions. 

include  monitoring,  evaluation  and  reporting 

c) 

Monitoring and reporting 

Monitoring. is  crucial  for  timely  adjustments  in  programming.  Each DG  must  design  monitoring 
arrangements that ensure that information on outcomes and use of resources is  regularly collected. 
This  information  will  be  aggregated  into  an  Annual  Activity  Report  issued  by  each  DG  and 
providing feedback for planning and programming for subsequent years. 

An  IT  instrument  will  help  to  stock  and  process  monitoring  information  and  to  compile  annual 
reports. 

d) 

Evaluation 

Good monitoring is a prerequisite for proper evaluation. Policy and programm~/project evaluation, 
ex-ante  and  ex-post,  must  become  systematic  within  operational  DGs  and  address  effectiveness 
and  added  value  in  achieving  results  and  economy  and  efficiency  in  the  use  of  human, 

13 

administrative  and  financial  resources.  Evaluation  results  must  be · fed  into  the  planning  and 
programming process. 

e) 

Internal Audit 

The  new  Internal  Audit  Service  will  contribute  to  the  consolidation  of  Activity  Based 
Management  through  its  independent  appraisals  of  the  management  systems  of  Commission 
departments.  It  will  report to the  Audit  Progress Committee  on the  evolution  of ABM  practices 
and on the quality of information supplied in the annual reports. 

2. 

ACTION RECENTLY TAKEN 

Since  September  1999_  the  Commission  has  taken  important  decisions  in  order  to  improve  strategic 
planning and co-ordination and· adapt service structure to new needs. These include: 

• 

• 

• 

the adoption of 5-year strategfo priorities; 

an annual orientation debate on policy priorities and objectives; 

the  allocation  of  resources  in  accordance  with  the  priorities  and  objectives,  and  on  the  basis  of 
accurate and transparent assessments of organisational requirements; 

• 

the gradual introduction of activity-based budgeting (ABB) ensuring that: 

budgeting  and  financial  management  takes  place  in  an  integrated  manner  on  the  basis  of 
activities linked closely to the Commission's priorities and objectives; 

-

these decisions are informed through dependable monitoring, evaluation and auditing systems. 

• 

the  pilot  implementation  and  introduction throughout the  Commission  of a  computerised  instrument 
to.support the planning and programming process. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 12 

A  new strategic planning and programming (SPP)  cycle (see  Figure  I  and related text of 
chapter lll.1 in  White Paper) 

The Commission will  institute a new,  policy-driven,  planning and programming cycle synchronised with 
the  budgetary process.  A policy circular issued by the President will  provide orientation to  Directorates 
General  for  the  elaboration  of an  annual  policy  strategy  (APS)  which  will  set  out  policy  objectives, 
proposed policies and corresponding resources.  The APS  will  provide the  basis  for  the establishment of 
the  Preliminary  Draft  Budget,  operational  programming  by  the  DGs  and  of the  Commission's  Work 
Programme.  The  length  of the  budget  approval  procedure  means  that  this  work  has  to  begin  thirteen 
months before the start of the programming year (i.e. for the 2002 budget in December 2000). 

The  Gommission  will  initiate  discussions  with  the  European  Parliament  and  the  Council  with  a  view  to 
reaching a satisfactory agreement  with  them on  the  scope of the  Annual Policy Strategy,  the  structure of 
the  Activity-Based  Budget,  their  respective  roles  and  the  workings  of  the  strategic  planning  and 
programming cycle.  The  latter must  also  provide  for  fast-track  adjustment  of the  Policy Strategy and of 
the Commission's Work Programme in the light of n.ew  urgent circumstances. 

Action 13 

Establishment of a Strategic Planning and Programming function 

The need to articulate strategic planning and operational programming of activities,  to  integrate decisions 
on  priorities,  policy  objectives,  activities  with  those  on  the  allocation  of  resources  and  to  promote 
management  by  objectives  and  results  calls  for  the  creation  of a  new  central  function  to  prepare  the 
Annual Policy Strategy debate, ensure a consistent follow-through and promote performance management. 

This  Strategic  Planning and Programming  (SPP)  function  will  be  created  in  the  Secretariat-General.  Its 
role will be twofold: 

14 

a) 

Assisting the College in the setting of policy priorities and reso~rce allocation by: 

• 

• 

• 

issuing  the  annual  policy  circulai:  on  the  initiative  of  the  President  and  following  a 
Commission debate  and drafting  the  Commission's  Annual Policy Strategy (APS)  and Work 
Programme,  in  close  co-operation  with  DG  Budget  and  other  DGs.  The  planning  and 
programming  function . will  synthesise  the  information  available  in  a  common  format, 
including  ex-ante  and  ex-post  policy  evaluation  and  human  and  financial  resource 
implications  and  will  thus  facilitate  an  integrated  discussion  between  the  Institutions  on 
policies and budgetary implications.  The  preparation  of the  Preliminary Draft  Budget (PDB) 
and  the  actual  allocation  of resources  will  be  undertaken  by  DG  Budget  in  line  with  the 
Annual Policy Strategy, 

assessing  the  coherence  of  operational  proposals  made  in  implementation  of  the  Work 
Programme, 

assisting  the  Commission  in  the establishment· and  overall  direction  of a  coherent  evaluation 
programme with due attention to strategic planning priorities and timetable, 

•  monitoring the pertinence of administrative structures and the adequacy of staff forces. 

b) 

Promoting  performance  management  by  ensuring  co-ordinated  norms  and  diffusion  of  good 
practice  in  respect  of the  planning  and  programming  process,  monitoring  and  evaluation,  the 
integration  of  information  systems,  and  the  organisation  of  administrative  structures.  Special 
attention  will  be  given  to  streamlining  reporting  arrangements  and  ensuring  that  the  Annual 
Activity Report becomes a simple and efficient instrument for presenting monitoring information. 

The  strategic  planning  and  programming  function  will  be  established  in  July  2000  and  endowed  with 
adequate human, administrative and financial resources to fulfil the above duties. 

The  division  of tasks  between  the  strategic  planning  and  programming  function,  DG  Budget  and  the 
Internal  Audit  Service  in  setting  standards  and  providing  advice  on  different  aspects  of Activity  Based 
· Management, particularly on monitoring, reporting and evaluation, will be defined at the same time. 

Action 14 

Development of an activity-based IT instrument to support Activity Based Management 

The successful introduction of Activity Based Management will depend crucially on the deployment of an 
adequate  IT  instrument  for  stocking  and  transmitting  management  information  both  at  strategic  and  at 
operational  level.  A  prototype  has  been  prepared  under  the  name  Integrated  Resource  Management 
System  (IRMS).  The  scope  of this  instrument  must  be  adapted  to  cover  the  information  systems  for 
planning  and  programming,  budget,  financial  and  human  resource  management.  The  instrument  should 
respond. flexibly  to basic  harmonised requirements across the  Commission, thus  avoiding  proliferation  of 
disconnected  systems.  It  will  extend  to  the  External  Service  activities  and  resources  including  the 
European Development Fund. 

Action 15 

Promote diffusion of Activity Based Management practice and 'learning by doing' 

More than establishing a planning tool, the introduction of Activity Based Management entails a profound · 
cultural  change  in  management  practices,  strong  and  persistent  commitment  at  the  highest  level,  a 
continual  process  of  'learning  by  doing'  and  effective  ownership  by  users.  Its  implementation  is  also 
closely linked to the actions proposed under the section VIII on  'More efficient working methods'  and the 
chapter IV on  'Human resources development'. It is,  therefore, necessary to: 

I 

•  establish an awareness-raising and training programme on Activity Based Management, 

• 

implement pilot exercises in several DGs (in conjunction with the dissemination of IRMS). 

The  dissemination  of ABM  (and  of IRMS)  will  become  an  essential  concern  and  responsibility  of the 
strate~ic planning and programming function and of the corresponding planning services within DGs. 

Action 16 

Strengthening of the evaluation system 

15 

The  general  principles  for  evaluation  of SEM  2000  need  consolidation  and  further  precision  to  fully 
coincide with Activity Based Management. The Commission will issue  a Communication on the  ways to 
strengthen the instruments and structures for evaluation following the lines presented above. 

4. 

LEAD SERVICE(S) 

1 

Action 12 

Action 13 

SG with the support of the Activity Based Management (ABM) group, DG BUDG. 

SG with the support of the ABM group, DG BUDG. 

Action 14 

IRMS working to the ABM group. 

Action 15 

DG Admin-DI with the support of the ABM group. 

Action 16 

DG  Budget  (pending  the  establishment  of  the  strategic  planning  and  programming 
function) with the support of the ABM group. 

5. 

TIMING 

Action 12 

Autumn 2000 - Discussion with EP and Council; 

October 2000 - adoption of guidelines to operational services; 
December 2000 - 1st  Strategic Planning and Programming Circular; 

January 2001  First Annual.Activity Report by DGs. 

Action 13 

May 2000 - Commission decision  on definition  of organisational  structure  and  resources 
of Strategic Planning and Programming function; 

July 2000 - Commission decision on the, establishment of SPP func,tion. 

Action 14 

February-September 2000 - Development of IRMS  instrument in  line with Activity Based 
Management specifications; 

January 2002 - Full deployment of IRMS throughout the Commission. 

Action 15 

May 2000 - Definition and launch of Activity Based Management training programme and 
· 
pilot actions. 

Action 16 

May 2000 - Commission Communication on strengthening of the evaluation system. 

16 

Figure I:  Annual Strategic Planning and Programming Cycle 

On the President's initiative and following a College debate 
SPP function  assisted by DG BUDG issues joint SPP circular to 
DGs for Year n 

Dtcember 
Year n-2 

DGs propose policy priorities, strategic activities and 
corresponding resources by Policy Area 

SPP function receives proposals and prepares draft Annual 
Policy Strategy (APS) in close co-operation with DG BUDG 
and other DGs 

Februarv 
Year n-1 

, , 

Co11ege  APS  debate including orientation on budgetary 
priorities by Policy Area 

Februarv 
Year n-1 

,, 
Budget circular and 
preparation of PDB  by 
Strategic Activities 

~  , 

Feb-April 
Year 11-l 

Commission adoption of 
PDB 

May 
Yearn-] 

Budgetary 
Authority 
(Council, .EP) 

... 
.... 

Budgetary 
Authority 
(Couricil, EP) 

... 
.... 

... 

,  r 

Operational 
programming by DGs 
(DG work 
programmes) in co-
operation with SPP 
function 

... 

'H 

-

DGs present proposals 
· for Commission Work 
Programme 

, , 

... 
...... 

~ ...... 

~ 

.... 

... 
.... 

Budgetary 
Authority  ~ 

(Council, EP) 

SPP function prepares 
Commission Work 
Programme 

,, 

~ 

... 

~ 

... 

First Budget reading by EP 

~, 
Adoption of Budget by EP 

,, 

, , 

Adoption of Commission Work Programme and final  allocation 
of human resources 

17 

Seplember 
Year n-1 

October 
Year n-1 

December 
Year n-1 

Early 
Jamuzrv 
Yearn 

CHAPTER III- PRIORITY SETTING, ALLOCATION AND EFFICIENT USE OF 

RESOURCES 

IX - DEVELOPING AN EXTERNALISATION POLICY 

1. 

OBJECTIVE 

The Commission services perform a variety of different  activities.  The Commission's origins were  those 
of an  organisation that initiated measures to further European  integration and acted as  the guardian of the 
Treaties - with a heavy emphasis on regulatory activities.  With the  passage of time,  the  Commission has 
concentrated  more  and  more  on  a  third  activity  - managing  significant  budgets  and  operatiol)al 
programmes.  It is  clear that the Commission will continue  in  the  future  to engage  in  all  three  activities, 
but  the  degree  of relative  emphasis  placed  on  each  of them  is  crucial  in  determining  resource  needs, 
organisational structures and management requirements. 

The  more  rigorous  approach  to  priority  setting,  which·  lies  at  the  heart  of  the  reform  process,  will 
contribute  to  a  clearer  identification  of the  Commission '.s  core  activities.  It  provides  also  the  wider 
context in which to address the central questions of why and when externalisation is  to be recommended, 
how far externalisation can go, and the form it  should' take.Core activities2  are those that the Commission 
exercises by virtue of its role  and powers under the Treaty and are thus central to  its  raison  d'etre. These 
are the  missions which the Commission carries out in  pursuit of the· Union's objectives:  accordingly they 
may change as  the  Union  develops.  Core activities  will  always  be  carried out by the  Commission  itself, 
although certain support tasks that are not fundamental to the activity itself could be outsourced. 

Non-core  activities  can  be  externalised  if  this  is  more  effective  and  efficient,  without  a  loss  of 
accountability.  Non-core activities are  public  service activities that do  not necessarily have to be  done  at 
EU level  but, if they are,  they must be done by the Commission. The way  in  which the Commission does 
so does not preclude a degree of externalisation of related tasks provided that the form chosen enables the 
Commission  to  retain  the  appropriate  level  of control.  Moreover,  an  alternative  to  externalisation  for 
certain non-core tasks can be to perform them in-house with contractual staff . 

. In any event, the Commission should refuse to take on any non-core activity which it  does not feel  able to 
discharge· within  an  acceptable  margin  of risk,  regardless  of whether  the  activity  is  to  be  managed  in 
house  or externally.  The  performance of core  activities  will  continue  to  be  confined  to  the  Commission 
services~ 

For the execution of non-core activities involving budgetary outlays - notably the running of programmes 
and actions - a choice needs to be made between carrying these activities out internally, externally, or in  a 
mixed  manner.  The  guiding  principles  for  the  choice  should  be  cost-effectiveness  and  accountability,  in 
particular  taking  full  account  of such  elements  as  the  political  presence  and  visibility  of the· European 
Union  as  well  as  the  ability  of the  Commission  to  exercise  its  responsibilities  under  Article  274  of the 
Treaty for the execution of the budget. 

2 Activities are established following an examination of the strategic objectives of the Commission which have been set by 
political decisions: Treaties; Council/Parliament; Commissioner; Director General; (a  contrario, activities can only be deleted 
by a political decision at the same political level). A task relates to any type of work that has to be carried out as part of an 
activity. The DECODE list included management, co-ordination, policy development and methodology, representation and 
negotiation, relations with other institutions, drafting and monitoring legislation, case handling, management and execution of 
programmes/projects, Financial/& budgetary management, statistics & economic analysis,  'on the spot' controls, evaluation, 
informatics, information & communication, staff management, administrative/logistic support, linguistic. See DECODE 
Vademecum. 

18 

2. 

ACTION RECENTLY TAKEN 

Guide to Technical Assistance Offices - July  1999 

Decision by the Commission on general guidelines for an externalisation policy - December 1999 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 17 

A framework for externalisation 

The  Commission  intends  to  elaborate  a  policy  on  externalisation  which  will  cover  the  issues  of the 
circumstances in which externalisation is to  be  recommended, the  limits  to externalisation,  and  the types 
of externalisation which are possible. 

By externalisation,  the  Commission  has  in  mind three  main  forms  of the  delegation  of all  or part of the 
Commission's activities or tasks, namely: 

' 

•  Devolution,  defined  as  the  delegation  of responsibilities  to  public  service  bodies  that  can  either  be 
part  of  the  Community  administrative  structures  (including,  for  example,  existing  agencies,  new 
implementing  bodies  as  suggested  by  the  EP  and  Committee  of  Independent  experts)  or 
nationaVtransnational  public  bodies  acting  as  'intermediaries;  for  the  implementation  of  certain 
Community policies. The extent of activities/tasks that may be  devolved to these bodies can go much 
further than what is or could be externalised to private-sector bodies. 

This type of externalisation may be appropriate for non-core activities that can be done  more flexibly 
and efficiently, with a certain degree of independence from the Commission services in  a strict sense: 
frequently, these are the technical activities linked to policy implementation which have  been given to 
Agencies  such  as  the  European  Medicines  Evaluation  Agency.  However,  in  the  case  of either  other 
agencies  of the  traditional  t"ype  (e.g.  the  future  Food  Authority)  or  new  implementing  bodies,  it  is 
conceivable that the delegation of responsibilities may go beyond purely technical activities. 

•  Decentralisation, defined as the delegation of responsibilities to public service national public  bodies 
acting as intermediaries for the implementation of certain Community policies.  A  variant of this is the 
delegation of responsibilities to transnational public such  as  CENE-CENELEC or the  UN).  As  in  the 
case of devolution,  the extent to .which  activities/tasks  may be  devolved to  these  bodies  goes  further 
than what is or could be externalised to private-sector bodies. 

This type of externalisation may be appropriate for non-core activities or tasks where the execution of 
clearly defined objectives  is  carried out in  a  partnership with  public  bodies.  This  is  already the  case, 
for example, in the Structural Funds and some internal policy and external aid programmes. 

•  Outsourcing  (Fr.  sous-traitance),  defined  here  as  the  delegation  to  private  sector entities,  typically 

involving a contractual relationship. This mostly includes non-core tasks (e.g.  security guards). 

This  may  be  appropriate  for  non-core  activities  as  well  as,  possibly,  specific  tasks  related  to  core 
activities  that  can  be  wholly  or partly  entrusted to  external  contractors:  these  are  typically  support 
tasks  which  can  be  clearly  defined  and  for  which  expected  outputs  can  be  readily  measured.  This 
category  covers  tasks  that  require  specialist  expertise  not  easily  available  in  the  Commission  (for 
example,  for evaluations)  as  well  as  tasks  that  are  more  efficiently externalised,  such  as  the  security 
guards. 

The policy will establish  a  set of criteria so that the decision  to  externalise  for  any given task or activity 
and the way in  which it is done is done on a consistent basis across the Commission. 

The option of externalisation will only be chosen if it  is a more efficient and effective means of delivering 
the service or goods concerned.  Within this,  important factors  include  the  respect  of the rules  set  by the 
legislative  and  budget  authority;  the  proximity  to  the  target  population;  the  visibility  of the  European 
Union's role; the need to retain an appropriate level of expertise in-house; ensuring that the delegation of 
activities or tasks  do not  reduce the  Commission's freedom  of action;  and ensuring,  where  appropriate, 
that basic principles like objectivity, impartiality, and proportionality are duly taken into account. 

19 

Each  cost/benefit  analysis  of the  possibility  to  externalise  an  activity  will  take  account  of opportunity 
costs  and  of the  resource  costs  for  the  Commission  in  technical  preparation,  support,  supervision  and 
control. There should be clear reporting guidelines for bodies carrying out externalised activities and they 
should be able to carry out their work for the Commission without interference from outside. The issue of 
how  responsibility is to be exercised by the  authorising  service  in  the Commission will  need to  be  given 
special attention. 

A Communication in  September will  set out  a proposed regulatory framework,  an  inventory of activities 
that  could  be  externalised,  a  possible  timetable · for  testing  new  arrangements  by  2001,  and  a  first 
assessment of the human resource implications. The Communication will review the experience to date of 
the  different  types  of externalisation.  It  will  take  account,  among  others,  of a  review  launched  by  DG 
AD MIN into the future role of the DG which includes consideration of which of its tasks, if any, could be 
externalised. Finally, the issue of accountability (to whom, by whom, and for what) will be addressed. 

\ 

The  work under the  auspices  of the  Relex  Commissioners  to  improve  the  management  and  delivery ·of 
external  aid  will  be  an  integral  part  of the  exercise  since  there  is  an  urgent  need  to  optimise  the  use  of 
external  resources  in  this  area.  This  will  include  the  use  made  by  the  Commission's  Delegations  of 
external resources in implementing aid programmes. 

· 

4. 

LEAD SERVICES 

Action 17 

Planning  and  Co-ordination  Group  on  Externalisation  in  co-operation  with  the  Planning 
and  Co-ordination  Group  on  Human  Resources  insofar  as  the  latter Group  addresses  the 
issue of the work which may be performed by non-permanent staff. 

5. 

TIMING· 

Action 17 

· April 2000:  Definition of the regulatory framework,  structure and mandate of the different 
instruments  .of  externalisation  .including  the  possibility  to  create  a  new  category  of 
Commission or Community bodies for the implementation of Community programmes and 
actions·. 

September 2000: Adoption by Commission of the Communication. 

20 

CHAPTER III - PRIORITY SETTING, ALLOC~ TION AND EFFICIENT USE OF 
RESOURCES 

X - MORE EFFICIENT,PERFORMANCE-ORIENTED WORKING METHODS: 
A WORK PROGRAMME 

1. 

OBJECTIVE 

The Commission has  been a  powerful advocate of the  benefits of simplifying  administrative  procedures. 
Yet  it  has  been  slower in  simplifying  its  own  procedures,  especially  internal  ones.  Simplification  is  not 
always easy:  rules build up over the  years,  becoming more complicated as they are amended and adapted 
to  the  point  where  the  underlying  objective  is  obscured.  It  does  no  disservice  to  these  rules  or  to  the 
people who made them to develop the habit  of systematically questioning whether such rules  still  have  a 
purpose  and,  if so,  how  they can be  simplified. A  mechanism  for the  submission  and  follow-up  of staff 
suggestions  on  these  issues,  and  to  establish  a  network  of DG  level  schemes  so  that  a  common  'ideas 
bank' will be established. 

Along  the  same  lines,  the  Commission  has  already embarked on the  route of decentralised  management 
(SEM 2000 and  MAP 2000),  and  a  number of good practices  have  developed  over the  years  within  the 
terms  of  financial  savings  and  increased 
services.  The  advantages  of  decentralisation  both  in 
responsibility  for the  services,  is  not questioned.  In  particular,  support  services  should only  be  provided 
· centrally where  added  value  can be  demonstrated.  However, the  decentralisation  of management-related 
activities  should  be  based  on  an  appropriate  cost-effectiveness  analysis.  Before  moving  further,  it  is 
necessary to carry out  a wide review  of internal decentralisation and  assess  benefits  and costs,  tools  and 
quality of service delivered. 

In  this  context,  performance  management  requires  that  officials  be  allowed  and  aided  to  take  more 
responsibility  for  their  work  by  internal  devolution  and  simplification  of administrative  decisions  and 
structures.  However,  this  calls  for  a  proper  definition  of  each  official's  role  through  adequate  job 
descriptions and task-assignments and the setting of a  clear framework  allowing for further  delegation  of 
responsibility to take place. 

In  parallel,  adequate  organisation  structure  should  be  devised,  including  provisions  to  guarantee  the 
necessary  flexibility  to  tackle  new  challenges  and  promote  new  working  habits  based  on  increased  co 
operation  among  the  services.  The  fragmentation  and  lack  of coherence  in  the  organisation  charts  of 
departments· needs to be addressed. 

To keep the Commission at  the  leading edge of modem administrative  management,  it  will  be  necessary 
to  provide  for  continuous  monitoring  and  implementation  of  modem  quality  assurance  methods, 
including exchanges of information with  advanced public  and private  sector administrations  world-wide. 
Internally,  this requires  an  improvement of the co-operation  between  horizontal  and  operational  services 
and a more service-oriented approach. 

, 

The  use  of information  communications  and  web-based  technologies  is  dealt  with  in  Chapter  II  - VI  -
Towards the E-Commission. 

2. 

ACTIONS TO BE IMPLEMENTED 

The  above  objectives  are  all  inter-related  and  must  be  addressed  in  a  comprehensive  framework.  They 
will  be  pursued through  a  set of actions  carried out  under the  authority of the  second Deputy Secretary 
General. 

Action 18 

Decentralisation of decision-making and simplification of administrative procedures 

21 

A  detailed  survey  will  be  undertaken  rapidly  to  analyse  the  current  state  and  cost-effectiveness  of 
decentralisation,  and  the  way  it  is  implemented  within  the  services.  Bearing  in  mind  the  principle  of 
subsidiarity, the  analyses will  identify those services currently provided by horizontal DGs which  should 
be provided centrally, as well as  further tasks that  may be decentralised.  It should be clear what the costs 
and  the  anticipated  benefits  (including  increased  responsibility  of  the  services)  at  Commission  level 
would  be.  The  resources  necessary  to  deliver  an  appropriate  service  will  be  quantified  and  transferred 
accordingly.  Horizontal'  services  should  provide  vademecums,  guidelines,  help-desk,  facilities  and 
advice.  Delegation  of responsibility  in  the  College  will  also  be  covered  by  this  action  and  should  be 
addressed as a matter of priority. 

Simplification  means  designing  and  re-designing  procedures  to  offer  the  quickest,  simplest  ~nd  more 
transparent way to  achieve an  objective. Firstly,  it  will  be  necessary to engage  a  systematic  review  of all 
current procedures and assess whether they are  still justified and  implemented in  the  most  effective  way. 
This will result in proposals to simplify and improve the decision-making process. 

A  permanent  mechanism  must  be  provided  for  to  identify  and  disseminate  best  practices  to  formalise 
proposals  for  change  and  to  review  progress.  In  order to  promote  staff involvement,  it  would  typically 
include  designing  a  staff suggestions  scheme  about  how  systems  and  procedures  can  be  improved  and 
carrying  out  employee  satisfaction  surveys  on  regular  basis.  A  common  'ideas  bank'  will  be  created, 
where each idea submitted should be assessed and the official submitting it given a response. 

Action 19 

Promoting personal responsibility and initiative and leaner administrative structures 

Strengthened  responsibility  and  initiative  require  greater  delegation.  DG  mission  statements  and  work 
programmes  should  be  translated  into  job descriptions  and  flexible  task  assignments  setting  out  annual 
targets for each official, the means to achieve them, milestones and deadlines, and performance indicators 
where possible. Their annual review will be combined with the staff appraisal report (see Chapter IV). 

Managers must be able to delegate decisions independently of grade and seniority (subject to special rules 
for  financial  management)  and  to  promote  teamwork.  Heads  of Unit  must  be  able  to  define  working 
arrangements and responsibilities flexibly.  For example,  'project leaders'  will  be given responsibility for 
a  project  regardless  of grade  and  seniority.  It  is,  therefore,  necessary  to  revisit  the  official  rules  for 
delegating responsibility (and signature) and to work out the  form and procedure for the  definition of job 
descriptions and task assignments.  In addition,  managers will be expected to respond to any requests and 
comments made by their staff. 

Current  practices  on job-descriptions  and  task  assignments  will  be  reviewed  and  tested,  and  guidelines 
established  including  the  role  and  responsibility  of each  level  of hierarchy.  Any  changes  required  in 
Commission rules  of procedure and  of the  Appointing  Authority concerning  delegation  of responsibility 
will be proposed. Periodic revisions of these measures will be provided. 

New guidelines will be elaborated on the design of organisational charts. All organisational arrangements, 
including the implementation of structures laid down in organisational charts and the allocation of tasks 
to individuals, will be subject to management audits by the Internal Audit Service. 

Action 20 

Cross-fertilisation,  teamwork and quality of services 

Sometimes  a  task  cannot  be  dealt  with  adequately  within ·current  structures  yet  revising  the  structures 
themselves would be a disproportionate response.  The use  of short-term (e.g.  3-6 months)  full-time  Task 
Forces  or  multidisciplinary  groups  with  specific  mandates  on  crosscutting  issues  increases  managerial 
flexibility,  improves coherence across departmental  boundaries and can produce more effective  solutions 
more rapidly.  It can also increase job satisfaction for the staff involved.  It  should be possible to establish 
such  teams  by  written  agreements  between  departments  covering  the  objectives,  mission,  respective 
responsibilities,  and  duration  and  staffing  arrangements.  Some  guidance  to  promote  inter-departmental 
networks will be needed. 

With decentralisation horizontal services increasingly play an  advisory/ guidance role,  while  operational 
services  assume  increased  administrative  management  responsibility.  For the  benefit  of both  horizontal 
and  operational  services,  it  is  necessary  to  develop  a  service.;.oriented  relationship.  This  approach  is 

22 

already advanced with those services that are more clearly identified with a  'product'  such as Translation, 
Publications, and Statistics.  Steps in  this direction  have now  been  taken in  other areas  (DG AO:MIN,  DG 
BUDG) in the form of 'service agreements' with user department,s. The benefit of this approach is that the 
operational  departments  are  called  on  to  define  their  needs  in  an  explicit  way,  often  for  the  first ·time, 
while  the  horizontal  services  now  have  a  sound  base  on  which  to  plan  their  activities.  Planning  of 
activities in the horizontal services will thus be more in tune with Activity Based Management (ABM). 

An examination of the  scope  for greater use of the  'service agreement'  approach  will  be  carried out and 
will  result  in  designing  practical  guidelines  and  explore  methods  allowing  horizontal  and  operational 
services to evaluate service delivery and procedures. 

Finally  the  potential  for  using  modem  quality  assurance  methods  will  be  examined:  a  number  of 
Commission departments already use  quality management techniques.  The scope for  extending  their use 
and for evaluating the applicability of such techniques will be explored. 

3. 

LEAD SERVICE(S) 

Action 18 

The SG (second Deputy Secretary General) supported by the operational DGs takes overall 
lead for the action p Ian;. 

Action 19 

DG ADMIN, supported as necessary by SG and the Internal Audit Service; 

Action 20 

DG ADMIN, supported as necessary by SG, Internal Audit Service. 

4. 

TIMING 

Immediate launching of some preparatory sub-actions : 

Action 18 

· October  2000:  Report  on  current  decision-making  and  administrative  procedures  and 

review of current state of decentralisation. 

Action 19 

April 2000: Guidelines for job description and task assignment; 

July 2000:  Generalised implementation by all services. 

All Actions  The implementation of all actions will be detailed in an "action plan" to be presented at the 

end 2000. 

· 

23 

CHAPTER IV - HUMAN RESOURCES 

XI - MANAGEMENT PERFORMANCE 

1. 

OBJECTIVE 

The  issue  of  management  in  the  Commission  has  been  addressed  critically  by  the  reports  of  the 
Committee  of Independent  Experts and  also  by  the  Williamson  Report.  The  accent  has  been  put  on  the 
urgent  need  to  put  in  place  a  comprehensive  approach  to  improve  management  standards  within  the 
. Commission and to develop a culture of accountability. This approach will consist in:  a clear definition of 
competence  and  responsibilities;  transparent  and  reliable  selection  procedures  ensuring  appointments  of 
high  quality  officials  in  management  posts;  measures  to  ensure  regular  performance  evaluation  at  all 
management levels and solid training programmes for managers as well as potential managers. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 21 

Selection of senior managers 

The  Commission  has  already  established,  clear  procedures  and  criteria  ( 18th  September  1999)  and 
guidelines  (8th  December)  for  merit-based  appointments  to  Director  General  (Al)  and  Director  (A2) 
posts including provisions for increasing the number of women. Further action will involve : 

a) 

b) 

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. 

Action 22 

Ensure continuing evaluation of management performance 

The C~mmission will  introduce individual performance appraisal for  Al  and A2  officials,  along the  lines 
that  will  apply to  all  officials  (see  Chapter IV-XIII  - Career  Structure,  Staff Appraisal  and  Promotion). 
The  procedures for  appraising  Al  officials  will  involve  the  responsible  Commissioner and  the  Secretary 
General.  Mobility rules  involving periodic  transfers,  with  safeguards to  avoid  long  periods  of vacancies 
in  management positions, will be established for A2 officials as they have been for Al officials~ 

A  probationary  period  will  be  introduced  for  all  senior  and  middle  management.  The  principle  of 
'reversibility'  will  be  introduced  for  all  management  positions:  this  means  that  managers  who  do  not 
reach the required standard, or who voluntarily opt out, would revert to  a non-management position  in the 
same  grade,  without  prejudice  for  further  re-appointment  in  another  management  position  ( although  a 
further  probationary  period  would  apply).  Decisions  in  this  area  will  be  taken  following  the  same 
procedures as for appointments. 

Action 23 

Management training 

A systematic programme of training, covering all  aspects of management - including staff appraisal - will 
be  introduced  for  all  managers  from  Head  of Unit  upwards.  Satisfactory  participation  in  a  preliminary 
management course will be  mandatory foi new Heads of Unit. 

Commission Heads  of Delegation will  receive  additional  management  training  specific  to  that  function. 
Training  in  management  skills  will  also  be  made  available  to  those  who  have  some  managerial 
responsibilities, regardless of their category and grade.  Preparatory management training will be  available 
for all potential managers from A6. 

24 

The  creation  of a  dedicated  European  Civil  Service  training  centre,  in  particular  for  middle  arid  senior 
manag~ment, will  be explored together with the other Institutions (also dealt with under Action 38). 

3. 

LEAD SERVICE(S) 

All Actions  DG AD MIN with support of the Planning and Co-ordination Group on Human Resources 

(PCG) 

4. 

TIMING 

Action 21 

July 2000: proposals to improve the operation of the Consultative Committee on 
Appointments; 

December 2000: proposal for appointments of Heads of Unit; 

Mid 2002: assessment of the application of new rules on merit based appointments for Al 
and A2 officials. 

Action 22 

October 2000:  adoption of draft Commission Decision on management; 

April 2001:  adoption of Commission decision on management; introduction of individual 
performance appraisal for Al and A2 officials. 

Action 23 

July 2000:  results of consideration on creation of a training centre. 

25 

~  L I  _______  C_H_A_P_T_E_R_I---:-V_-_HUM __ A_N_R_E_S_O_U_R_C_E_S ______  ___. 

XII - RECRUITMENT POLICY 

1. 

OBJECTIVE 

The  Commission's recruitment  policy  has  allowed it  to  recruit  highly  qualified  personnel.  However,  its 
organisation needs to be improved. Recruitment policy should be based on the following principles: 

•  Open competitions should be retained for the recruitment of both generalists and specialists. Specialist 

competitions should be organised to meet particular needs; 

•  The Commission must retain effective overall control of recruitment. Competitions must be organised 
in  a cost-effective manner and the tests used should be~designed tO' attract and identify candidates who 
most closely match the Commission's needs; 

•  Tests must take account of the multicultural dimension of the EU in order to ensure equal treatment of 

candidates from all Member States; 

•  Equal opportunities and geographical balance must also be addressed at the testing phase. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 24 

Better identification of the Commission's needs 

Accurate  identification of human resources  needs,  in  terms  of both  profiles  and  numbers,  is  an  essential 
element  of  any  recruitment  system.  This  should  also  be  the  starting  point  for  the  Commission's 
recruitment policy. 

The  new  system  of  Activity-Based  Management  (ABM)  will  improve  the  programming  of  activities 
within the Commission and define the related competency profiles.  This will already contribute to  a more 
focussed recruitment policy as better forward planning of human resources needs will be possible in terms 
of both the skills and numbers of people.  As  ABM will by applied in  all Directorates General,  individual 
Directorates General will be in a position to define more specifically the skills which they require  in  staff. 
In  addition,  a new  human  resources  management tool to  replace  the existing  SYSPER system is  needed 
so that management is more aware of the skills and qualifications of existing members of staff. 

The  Commission  should  remain  focussed  on  the  recruitment  of generalists  as  they  ought  to  be  able  to 
adapt to  a  variety of jobs during  their working  lives.  However,  there  is  also  a need  for  individuals  with 
more  specialised  skills.  More  specialised  competitions  tailored  to  the  needs  of individual  Directorates 
General or groups of Directorates General should therefore be organised. 

The  tests  used  in  competitions  should thus  be  designed  to  assess  candidates  in  relation  to  the  profile  of 
skills and qualifications sought. 

Action 25 

Improving the organisation of competitions 

As  all  European Institutions recruit principally by  open competition,  priority will  be  given to  examining, 
together  with  the  other  Institutions,  the  possibility  of creating  an  inter-institutional  recruitment  office. 
Each Institution would inform the office of its specific human resources needs.  The office would then be 
responsible for the organisation of the appropriate competition. 

The  most  cumbersome  aspect  of existing  competitions · is  the  pre-selection  phase  as  it  often  involves 
thousands of candidates.  Currently, this phase of competitions involves multiple choice tests.  This form 
of  test  should  be  continu~d  but  with  improved  use  of  information  technologies  to  increase  cost 
effectiveness. 
Action 26 

Geographical balance 

· 26 

Ensuring  a  reasonable  geographical  balance  among  staff  is  one  of  the  aims  of  the  Commission's 
recruitment policy in  accordance with Article 27  of the Staff Regulations.  This  will  be  addressed  in  the 
first place by ensuring a wide publication of the notices announcing competitions and by ensuring that the 
tests  used  take  account  of  the  multicultural  dimension  of  the  European  Union. 
In  this  way,  equal 
treatment  of candidates  fro.m  all  Member  States  will  be  ensured.  Neither  competitions  organised  by 
nationality, national quotas nor a  general move to  competitions by language,  would~ approp~ate.  The 
Commission will reflect on further means of ensuring reasonable geographical balance. 

Action 27 

Non-discrimination and equal opportunities 

The  gender  and  ethnic  composition  of the  Commission's  staff will  be  addressed  in  the  design  of tests 
which  ensure  equal  treatment  in  conformity  with  the  provisions  of Article  27  of the  Staff Regulations. 
The Commission will abolish age limits for recruitment by open competition.  Consultation with the other 
Institutions  on  the  abolition  of age  limits  for  recruitment  to  all  EU  Institutions  is  underway,  and  the 
Commission is willing to lead by example (also dealt with under Action 50). 

Action 28 

Improving Selection Boards 

Competition  Selection  Boards  should  be  composed  of  Commission  officials  and  presided  by  a 
Commission official.  An effort should be made to ensure that a sufficient number of women are appointed 
to  Selection  Boards.  The task  assignments  of those  appointed  to  Selection  Boards  must  be  adapted  to 
allow  them time  for this.  Specific  training will  be provided to  officials  serving  on Selection  Boards.  A 
limited  number  of  outside  specialists  should  also  be  involved  in  an  advisory  capacity,  but  the  final 
· decision on recruitment must remain with the Commission. 

Action 29 

Ensuring transparency for candidates 

All  information  about recruitment  procedures  and organisation  of competitions will  be  published on the 
Internet.  It  will  also  be possible to  apply  via Internet,  with  official documentation  to  be  provided  at  an 
appropriate  stage.  The  Commission  will  also  consider  improving  its  co-operation  with  European 
universities to increase students' awareness of career possibilities in the EU Institutions. 

The number of successful  candidates  for  each  competition  will  be  in  reasonable  proportion  to  the  posts 
available.  The procedures for  recruiting  after competitions will  be expedited with  a  view  to cutting  the 
delay  in  filling  vacancies.  This  should  also  ensure  recruitment  of candidates  within  two  years  of the 
publication of results of competitions. 

Finally, pursuant to the European Ombudsman's recommendation,  the Commission will  allow candidates 
access to their corrected tests in all competitions launched after July 2000. 

The overhaul of recruitment  policy and selection procedures described  above  will  require  a  Commission 
Decision and an.inter-Institutional agreement for the creation of an Inter-Institutional Recruitment Office. 
It  may  also  imply  modifications  to  the  Staff Regulations  (in  particular,  to  Annex  Ill)  -
this  requires 
further examination. 

3. 

LEAD SERVICE(S) 

DG ApMIN with support from the Planning and Co-ordination Group on Human Resources. 

4. 

TIMING 

Action 24-29  December 2000.:  Consultative document on recruitment policy,  including proposals for any 
necessary amendments to the Staff Regulations;  Draft agreement on the creation of Inter 
Institutional Recruitment Office; 

June  2001:  after  consultation  of OSPs,  Commission  submits  proposal  for  any  necessary 
changes to the Staff Regulations to the Inter-Institutional Staff Regulations Committee; 

December  2001:  Commission  submits  proposal  for  any  necessary  changes  to  Staff 
Regulations to Council. 

27 

~  L I  _______  C_H_A_P_T_E_R_I_V_-_HUM 

_  _.._A_N_R_E_S_O_U_R_C_E_S ______  - - . .J  

I 

XIII- CAREERSTRUCTURE, STAFF APPRAISAL AND PROMOTION 

1. 

OBJECTIVE 

·  The  present  career  structure  in  the  EU Institutions  distinguishes  between  A,, LA,  B,  C  and  D  category 
staff with grades 'in each category. This distinction is largely based on the level of academic qualifications 
and length of professional experience acquired before joining the European civil service.  The weaknesses 
of this system have become apparent and now need to be addressed: 

•  Many staff are frustrated at being excluded from any further progress, often in  mid-career. 

•  The  current  procedures  for  grading  new  recruits  are  complicated,  slow  and  do  not  acknowledge 

different ways in which professional experience and ability is acquired. 

•  Attempts at reforming the staff report system have been largely unsuccessful. 

•  Within the service, merit is not sufficiently rewarded,  in particular in determining progress within the 

career system. 

An integrated human  resources  policy which  makes optimum use  of the Commission's human  resources 
is  needed,  including  more  flexible  retirement  provisions.  Such  a  system w9uld  promote job satisfaction 
by offering  members of staff proper career development,  involving  merit-based promotion  linked to  fair 
and  meaningful  appraisal  procedures.  As  the  people  working  in  the  Commission  are  its  main  asset,  it 
would also increase the effectiveness of the Institution generally. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 30 

Creation of a new and more linear career system 

The new  system would be  linear,  without categories.  Recruitment of officials would be at certain levels 
concomitant  with  requirements  in  terms  of the  necessary  competence,  backed  up  by  qualifications  and 
professional experience  where  appropriate.  Special responsibilities  linked to  a  well-defined  time-limited 
function,  will be seen as deserving a time:limited reward in the form of payment at a higher grade. 

Whilst  merit  would  determine  promotion  from  grade  to  grade,  seniority  would  be  acknowledged  by 
progress  within  a  grade.  However,  the  number  of steps  within  each  grade  will  be  limited,  as  will  the 
circumstances in which the highest  step of any grade  allow  for  higher payment  than  the  basic  step in  the 
next grade. 

The  system  must  make  provision  for  good career possibilities  for  officials  who  do  not  wish  to  become 
managers or who do not possess general management ability,  but who  do  command know ledge and skills 
which are otherwise of great value to the organisation.  This implies in particular that  promotion to higher 
grades should not generally be made dependent on occupying a management post. 

New officials would be recruited in accordance with the new system. Officials recruited following the old 
system would  be  graded corresponding  to  the  new  system with  a  commitment  that their pay conditions 
will not be affected. 

The  new  career  system  will  require  modification  of the  Staff Regulations.  Pending  this,  the  internal 
competitions system will be improved, thus increasing the possibilities for access to higher categories. 

Obviously,  various  forms  of linear  career  structure  could  be  envisaged  within  the  framework  set  out 
above  (for example,  the  number of grades  and qualification requirements), taking  into  account the  needs 
of the  Institution and its  work.  In  any public  administration,  the development  of a  new  career structure 
represents a significant change, and the transition requires careful handling. 

28 

The following specific commitments in terms of the transition to a new  system for EU civil servants will 
be reflected in a detailed proposal for a new career structure: 

• 

• 

• 

the  pay of individual  members of staff would not  be negatively affected at the  moment of transition 
to a new system; 

thereafter, the speed of career of individuals of average achievement would not be affected,  although 
the very best would proceed more quickly, and those below average more slowly; and 

there  w_ould  be  no  deterioration  in  the  life-time  earnings  of existing  members  of staff of average 
achievement. 

The Commission is well  aware of the  I.ink  between the  motivation of its  staff and their material  security. 
It  will  ensure  that  reform  does  not  result  in  deterioration  in  the  overall  terms  and  conditions  of 
employment of existing staff, and any proposal to Council for a new career structure will reflect this. 

Action 31 

Simplification of existing grading procedures 

All professional. experience gained after obtaining relevant professional or academic qualifications will be 
taken  into  account  by  the  administration  in  grading  new  recruits  under  a  transparent  and  consistent 
framework of rules.  It  will  obviously be necessary to consider measures  in  order to  address the issue of 
equal treatment between new and current members of staff. 

A Commission Decision is  necessary to change the existing procedures. 

Action 32 

Establishment of a new annual staff appraisal system 

A  rigorous,  objective  and  fair  system  for  the  appraisal  of  staff  performance  1s  essential. 
prerequisite for the proper functioning of a new more linear career structure. 

It  is  a 

Achieving such a system requires action on two fronts. 

First, assessors must  apply the  system properly.  Specific  training  in  staff appraisal  will  be  provided and 
there  will  be  checks  on  assessors'  application  of the  system.  Thought  will  be  given  to  other  means  of 
ensuring  that  the  system is  properly  applied  and  in  particular  that  there  is  no  inflation  of assessments. 
The attribution of a quota of points to each-Directorate General to be shared amongst members of staff of 
the same grade could be one way of providing assessors with an incentive to avoid such inflation. 

Secondly, a new  annual system of appraisal  is  needed based on job descriptions and task assignments for 
each  member of staff.  The appraisal would be based on extensive dialogues,  possibly mediated by other 
colleagues,  and the  use  of modem  methods  such  as  two-way feed  back.  Whilst  appraisal  should  be  the 
responsibility  of the  immediate  superior the  possibility  of involving  a  third  party  in  the  assessment  will 
also be studied. The system would have two distinct roles: 

•  The first  would  be to provide staff with  objective description  of,  and  feed  back on,  work carried out, 
and  to  encourage  staff  to  do  better  through  a  detailed  qualitative  assessment  of each  individual's 
performance judged against  their job description and task  assignments.  Appraisal  reports  should first 
and foremost be factual, describing in great detail what officials have done, and what results they have 
obtained.  The  system  should  include  discussion  of career  development  issues  such  as  training  and 
mobility. 

· 

•  . The  second  would  be  for  the  administration  to  assess  fairly·  both  past  performance  and  where 
appropriate the  potential that  the  individual  being  appraised  may  have  to  assume  other  and/or  more 
significant  responsibilities.  This  appraisal  of merit  should  be  more  directly  linked  to  the  promotion 
procedures.  Criteria will  therefore  be  laid down  to  assess  merit  in  a  coherent  manner,  and  to  ensure 
that less visible, but equally important tasks are evaluated in a fair manner. 

Some  concern  has  been  raised  that  an  annual  evaluation  system  will  impose  an  undue  burden  on 
management and staff.  This will be taken account of in the development of a new system. 

The  appF~isal  system  for  management  should  provide  for  appraisal  by  those  whom  they  manage,  and 
possibly a peer review element. Full safeguards would be provided for those assessing managers. 

29 

A  specific evaluation system for  Directors General  and Directors will  be  developed.  The  procedures  for 
appraising Al officials will involve the responsible Commissioner and the Secretary General. 

A Commission Decision would be needed to set up the new system.  It seems unlikely that changes to the 
Staff Regulations  woulp be required.  However,  closer examination  of whether  such  a  change  would  Qe 
necessary in order to  allow  for the appraisal of staff at the level of Directorates-General rather than  in  the 
Commission as a whole will be necessary. 

Action 33 

Promotion based on merit 

The  current  promotion  system  can  .be  improved  significantly  without  having  to  change  the  Staff 
Regulations which already provide that promotion should be based on merit. 

First,  the  rules  and procedures  will  be  published  on  EuropaPlus,  as  will  all  relevant _data  on  promotion 
exercises. 

Secondly, the system will be simplified.  A single system will apply to all categories. The longer-term aim 
is to apply the same system to staff paid from the· oper~tional and research budgets. 

Thirdly, there will be a stronger link between promotion and staff appraisal, and a  marking system will be 
kept. 

Finally,  individual  departments  will  be  encouraged . to  take  greater  responsibility  for  their  promotion 
proposals by limiting recommendations to the number of promotion possibilities.  As a consequence of the 
annual appraisal exercise, the notion that unsuccessful candidates on one year's list  will  be  automatically 
included  the  following  year  ("reliquats")  will  be  eliminated.  This  will  give  everyone  a  fairer  chance, 
including those who have mov~d betwe~n departments, and so contribute to mobility. 

A  Commission  decision  is  required  for  a  new  promotion  system.  The  introduction  of  comparative 
evaluation  of staff at  the  level  of Directorates-General  would  require  a  corresponding  change  to  the 
provisions of the Staff Regulations concerning promotion. 

Action 34 

Flexible retirement 

The present  system for retirement  is  inflexible and penalises those  who  wish  to leave  the  service  before 
the age of 60.  It also makes no provision for those who wish to work beyond the age of 65.  These issues 
were  examined  in  the  Williamson  Report  and  now  need  to  be  addressed  by the  development  of a  new 
framework on retirement.  This would require changes to the Staff Regulations. 

The  forthcoming  enlargement  of the  Union  will  also  create  a  major  challenge  for  personnel  policy.  A 
specific  early retirement  scheme  could  have  an  important  role  to  play  in  easing  the  integration  of staff 
from new Member States. Further thought on this issue is needed. 

3. 

LEAD SERVICE(S) 

DG ADMIN, with the support of the Planning and Co-ordination Group on Human Resources. 

4. 

TIMING 

Action 30 

November  2000:  Consultative  document  Communication  on  a  new  career  system, 
including a proposal to amend the Staff Regulations; 

May 2001:  After consultation of the OSPs, the  Commission will  submit  a  proposal  to  the 
Inter-Institutional Staff Regulations Committee (SRC); 

December 2001: Commission submits proposal to amend Staff Regulations to Council; 

The  objective  is  for  a  new  system to  be  implemented  in  2002  (after  consultation  of the 
SRC, submission to the Council and agreement by the Council). 

Action 31 

July 2000: adoption of draft Commission decision; 

30 

·" 

November 2000: adoption of Commission Decision. 

Acnon 32 

November 2000: adoption of draft Commission Decision. 

May 2001: adoption of Commission Decision. 

The objective is for the new system to be applied in the course of 2002. 

Action 33 

November 2000:  adoption of draft Commission Decision. 

May 2001:  adoption of Commission Decision. 

The objective is  for the new system to be applied in the course of 2002. 

Acti,on 34 

December 2000: Consultative document on framework for retirement including proposal 
to amend the Staff Regulations and proposal on specific scheme for enlargement; 

May 2001:  After consultation of the OSPs, the Commission will submit a proposal to the 
Inter-Institutional Staff Regulations Committee (SRC). 

December 2001: Commission submits propos~l to amend Staff Regulations to Council. 

31 

• 

I 
I 

CHAPTER IV - HUMAN RESOURCES 

XIV - CAREER GUIDANCE, MOBILITY AND UNDERPERFORMANCE 

1. 

OBJECTIVE 

An  integrated  human  resources  policy  must  make  better  provision  for  career  guidance,  mobility  and 
tackling  underperformance.  The  following  specific  problems  with  the  current  system  have  been 
identified and now need to be addressed: 

•  Career guidance hardly exists. 

•  There  is  no  early  warning  system  or  specific  procedure  to  deal  satisfactorily  with  cases  of 
incompetence.  Instead, the Staff Regulations provide that  professional  incompetence  should be  dealt 
with under the same procedures as disciplinary matters. 

•  The  current  probationary  period  (in  terms  of the  use  to  which  it  is  put  and  its  duration)  is  not 

sufficient to identify cases where new recruits are unsuitable. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 35 

Provide access to career guidance 

A central function  needs  to  be  set  up  to  spread  best  practice  amongst  Directorates  General  and  to  offer 
guidance  to  individuals,  on  career  prospects  throughout  their  working  lives.  A  network  of  similar 
functions in each Directorate General will be created. 

A personnel database  to  replace  the  current  SYSPER  will  be  developed  to  include  information  profiles, 
job descriptions  and  skills  of individuals.  This  database  will  be  a  useful  tool  for  better career  guidance 
and development.  In developing the new  database,  specific  attention will  be  paid to  security aspects,  and 
to the protection of confidential and of personal data in accordance with Community law. 

Action 36 

Encouraging mobility 

· Mobility increases officials'  experience,  range of abilities  and  know ledge;  it  also  benefits  the  Institution 
as a whole. 

However,  it  would be  counterproductive to lay down generally binding rules  for  mobility.  In  particular, 
such  rules  might  lead  to  a loss  of specific  expertise  that  is  often  acquired  after years  of "training on  the 
job".  Other· disruptive  effects  also  need  to  be  avoided,  including  those  provoked  by  the  often  too  long 
period  of  vacancy  after  a  mobility.  Efforts  to  speed  up  the  publication  and  filling  of  vacancies  will 
. continue.  A variety of actions are nevertheless needed to facilitate  mobility. 

Barriers  to  mobility  posed,  in  particular,  by  the  current  promotion  system  will  be  removed.  Special 
training  in  preparation for changing posts will  be  offered where  appropriate.  The  central career guidance 
function  will  develop clear and transparent  guidelines  for  mobility.  On  this  basis,  Directorates  General 
will  be  encouraged to organise  mobility  in  line  with  their specific  needs.  Responsibility  for  monitoring 
mobility  would  lie  with  the  personnel  departments  of each  Directorate  General.  Guidelines  need  to  be 
established and measures should be taken by each Directorate General for better organisation of the  hand 
over of responsibilities between officials in order to minimise any loss of continuity. 

Conditions for  mobility within European Institutions,  and  between  national  administrations  and  possibly 
also the private sector will be devised. 

Special measures will be set up, in co-ordination with the Steering Committee for the External Service, to 
ensure  that the  annual  rotation  system ensures that  officials  returning  from  Delegations to  Headquarters 
are  found jobs that  correspond to  their experience  and  profile  and  that  further  the  development  of their 
career. 

32 

Finally, as an  incentive  for  mobility,  it  should be regarded positively in  the  framework of staff appraisal, 
appointments and promotions. 

Action 37 

Tackling inadequate performance 

A series of measures to prevent and deal with inadequat~ performance will  be taken. 

A specific system for dealing with  inadequate performance will  be established,  safeguarding the  rights of 
the person concerned. This will involve the following: 

•  Better use  of the probationary period to  identify officials who  are  unlikely  ever to  meet  the  required 
standards.  An  increase in  the  length of this period to  12  months will contribute to this objective.  The 
possibility of extending the probationary period should be retained.  The measures proposed for better 
use of the probationary period are set out in Chapter IV-XV -Training. 

•  An  early warning  system based on  reports  (probationary,  annual  appraisal  etc.)  triggering  corrective 
measures will be set up.  Open discussions, analysis of personal potential, retraining and efforts to find 
a  more  appropriate  post  will  help  to  deal  with  cases  of inadequate  performance.  The  central  career 
guidance function and those in the Directorates General will have an  important role to play in  addition 
to that of managers. 

•  A  clear  procedure  for  identifying  and  dealing  with  inadequate  performance  will  be  established.  A 
Commission Decision  is  necessary  for  this  action  and  it  will  specify  management's  duty  to  identify 
incompetence and deal with it fairly and thoroughly.  A Handbook will be made available to  all staff. 

•  A  specific  procedure  for  dealing  with  professional  incompetence,  distinct  from  the  disciplinary 

procedure will be instituted. 

The  measures  relating  to  the  probationary  period  and  to  the  specific  procedure  for  professional 
incompetence will require modifications of the Staff Regulations. 

3. 

LEAD SERVICE(S) 

DG ADMIN, with the support of the Planning and Co-ordination Group on Human Resources. 

4. 

TIMING 

Action 35-37  December 2000: creation of centrai career guidance function; 

July 2001: creation of decentralised career guidance system; 

2003:  new version of SYSPER will be available. 

Action 37 

December 20~: early warning system implemented by administrative measures. 

October  2000:  Consultative  document  on  professional  incompetence,  including  draft 
Commission Decision and proposals to amend the Staff Regulations. 

April 2001:  adoption of Commission decision and submission of amendment of the  Staff 
Regulations 
(following 
consultation of the OSPs). 

Inter-Institutional  Staff  Regulations  Committee 

the 

to 

December 2001: Commission submits proposal to amend Staff Regulations to Council. 

Implementation scheduled for 2002·(after agreement by the Council). 

33 

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fl 

I 

1 

OBJECTIVES 

XV - TRAINING 

Training  is  of crucial  importance  for the  success  of the  Reform.  The  overall  objective  is  to  provide  the 
right training to the right  people at the right time in  a cost-effective way as part of a  coherent strategy of 
human resource management and development in the Commission. 

In recent  years,  some  progress  has  already  been  made  in  achieving  this  objective:  Directorates  General 
have  begun to develop improved training plans with the advice  of the  Gentral  training  service; clear lines 
of  responsibility  have  been  drawn  between  the  central  service  for  general  training  and  Directorates 
General  for  specific  training;  an  increasing  number  of Directorates  General  have  initiated  their  own 
internal courses; improved procedures for evaluating training courses have been established; budgets have 
increased but remain  very small. 

What  is  still  lacking  however is  a  widespread culture of training  and  learning  during  the  entire  working 
life. The result is that despite the importance apparently attached to continuing training,  it  is  still regarded 
too often as a non-priority and takes second place in  the event of conflicting priorities. This has to change. 

A significant increase in the training budget will be necessary.  The current budget equates to two days of 
training per member of staff per year. · This figure  includes general,  language and IT training  and  is  well 
below the level in Member State administrations.  Moreover, as training takes time and is  sometimes best 
conducted in-house  by members of staff,  there will  be a need to consider the implications of an extended 
training programme for general human resources needs. 

2 

ACTION RECENUY TAKEN 

Training in management skills 

At  the  end  of  1999,  a  contract  was  signed  to  put  in  place  for  the  first  time  in  the  Commission,  a 
compulsory training programme for  senior and  middle  management.  The detailed course design  phase  is 
currently unde( \1/ay  and pilot courses will  run  from May to July 2000. The definitive programme will  be 
established  shortly  thereafter.  It  is  imperative  that  all  senior  and  middle  management  attend  this 
programme when  invited.  At the same time,  a  completely new  set  of skills-based courses will  be  offered 
from  April  onwards  for  people  below  Head  of Unit  level  who  have  some  managerial  responsibilities 
(irrespective of category and grade). 

Improved induction training 

With effect from January 2000,  induction training has  been substantially modified. The main features are: 
compulsory  attendance  ( 12  days  training  divided  into  4  modules  during  the  probationary  period),  the 
introduction  from  Apru2000  of an  entirely  new·  5-day  course  within  these  12  days  called  "Working 
Together" for  all new  officials,  which replaces the  rather elitist existing "A-grade" course;  an  individual 
training  plan  to  be  drawn  up  by  line  management  for  each  new  entrant  to  cover  the  first  two  years  of 
her/his career; encouragement to use a mentoring system; improved advice to new entrants about training 
possibilities. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 38 

Promoting a learning culture 

Whilst  such  a  culture  cannot  be  introduced  by  decree,  certain  specific  measures  can  be  introduced. 
Among these could be the following:  obligation on line managemenno give absolute priority for officials 
to attend training courses for whteh they are enrolled in the DG' s annual training planning; greater efforts 

34 

to  provide  in-house  training  events  at  DG  level;  more  regular  availability  of  appropriately  qualified 
people  to  provide  training  services  (e.g.  iri  areas  such  as  financial  management,  budgets,  administration 
etc) together with formal recognition of the services so supplied; awareness-raising campaigns etc. 

The  creation  of a  dedicated European  Civil  Service  training  centre,  in  particular  for  middle  and  senior 
management, will be explored together wjth the other Institutions (also dealt with under Action 23). 

Action 39 

Supporting the Reform process 

The  success  of the  actions  foreseen  in  the  Action  Plan  depends  on  the  continual  development  of the 
corresponding knowledge  and  skills.  To this  end training  programmes  in  the  Directorates  General  must 
identify the  training  needs  for  the  proper implementation of the  various  actions  of the  Action  Plan  with 
respect in particular to:  Activity Based Management, new working methods,  administrative,  financial  and 
budgetary procedures. 

Action 40 

Integrating training with other areas of human resource management 

•  The assessment of training needs should be made an  integral part of the  staff appraisal  system both in 
relation  to  the  current  post  held  and  future  career  development.  Such  a  measure  would  allow  the 
notion of the "individual trai~ing plan" decided by the Commission in  1991  to become a reality. 

•  - At  certain stages of an  official's career and  in  relation  to  certain  posts,  specific  training  actions  may 

be advisable or even required, for example: 
(cid:143)  Activity  Based  Management,  new  working  methods,  administrative,  financial  a~d  budgetary 

(cid:143) 
(cid:143) 
(cid:143) 
(cid:143) 

procedures; 

after promotion; 

refresher courses for specific skills, such as the use of modem ICT tools and systems; 

as preparation for managerial responsibilities or before transfer abroad; 

on  specific  issues  e.g.  relating  to  dealing  with inadequate  performance,  equal  opportunities,  the 
multicultural dimension of work in the Commission, discipline and whistle-blowing; 

A  comprehensive  list  of  situations  and  the  training  recommended  or  required  will  be  drawn  up. 
Directorates  General  should  look  at  training  needs  globally  and  integrate  into  their  overall  training 
strategy and their annual planning of courses all training needs  irrespective of subject  matter or mode 
of delivery.  This  will  have  consequences  for  the  way  in  which  training  is  delivered  by  Commission 
services. 

•  Arrangements  should  be  made  to  ensure  that  officials  in  the  External  Service  receive  adequate 

targeted training (including language training) before taking up a new posting. 

Action 41 

Reform of language training 

The  present  language  training  is  not  sufficiently related  to the  real  needs  of the  service.  There  are  high 
rates of absence from courses.  A customer survey was conducted by the central training unit  in  1999.  On 
that  basis,  the  training  unit  will  propose  a  series  of reforms  to  make  the  language  training  programme 
more responsive to needs. For example, the creation of a number of "training posts" will  be considered to 
enable  officials  to  undertake  full-time  language  study at  certain  moments  in  their  career such  as  before 
taking up assignments in delegations / representation offices. 

Action 42 

Create a new officials training programme 

The  measures  already  taken  to  itnprove  induction  training  should  only  be  regarded  as  a  first  step  to  a 
more  ambitious  trainee  programme  for  new  officials  to  equip  them  better  with  the  skills  needed  to 
succeed in  the Comnussion and to promote the system of values that  must  underpin the culture of service 
in  a  European  Public  Administration.  This  programme  will  run  for  a  year and  will  therefore  require  an 
extension  of  the  length  of the  probationary  period  to  12  months.  The  possibility  for  extending  the 
probationary  period  should  be  retained  (see  Chapter  IV  - XIV  - Career  guidance,  mobility  and 
underperformance) 

35 

This new officials programme will provide for thorough training and evaluation of all  new recruits.  Issues 
of career  planning,  mobility  and  systematic  training  on  the  job  will  have  to  be  addressed.  A  mentor 
should be appointed to each new recruit in order to assist him or her in  adapting to life in  the  multicultural 
It  would  be  preferable  that  that  these  mentors  are  of  a  different 
environment  of  the  Commission. 
nationality to the recruit.  However, this issue should be dealt with flexibly. 

Action 43 

Increase training budgets 

Although  appropriations  have  doubled  for  general  training  activities  over  the  last  two  years,  the  funds 
available are inadequate for a properly-developed training policy and fall  far short of the amounts devoted 
to  training  by  organisations  which  place  it  high  on  their  list  of priorities.  Funds  should  therefore  be 
doubled,  at  least,  over the  next  three  years  for  non-IT  and  non-:language  training.  A  further  need  is  to 
make appropriately qualified staff re~ularly available to provide training when an  in-house  solution  is  the 
best.  This  requires  some  form  of resource  compensation  for  the  providing  services  in  a  situation  where 
human resources are already generally over-stretched. 

4. 

LEAD SERVICE(S) 

All Actions:  DO AD MIN, with the support of the Planning and Co-ordination Group on Human 

Resources. 

5. 

TIMING 

Action 38 

Action 39 

July 2000:  Guidelines to 'services and results of consideration of dedicated training facility. 
Implementation will be on-going thereafter. 

November 2000:  Identification  of DGs training  needs  linked  to the  Reform and  report  on 
specific training actions considered advisory or mandatory. 

Action 40 

Implementation on-going. 

Action 41 

September 2000: Phasing-in of new approach. 

Action 42 

Action 43 

October 2000: Proposals for new officials' programme. 

October 20~0: Report on measures to increase internal training activities. 

Initial increase of 1,5 Mio€  in 200 I  budget. 

Further total increase of, at least, 4 Mio€  in 2002-2003 budgets. 

36 

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XVI - NON-PERMANENT STAFF 

1. 

OBJECTIVE 

In  addition  to  permanent  civil  servants,  the  Commission's  staffing  includes  various  categories  of 
contractual  staff.  Some  contractual  staff are  covered  by  the  Staff Regulations,  others  are  not.  Statutory 
staff include  temporary,  auxiliary and local agents; external  staff comprise casual staff,  freelancers,  staff 
employed under private law contracts and seconded national experts. 

In some Commission departments, the reliance on non-permanent staff is  unacceptably high. This is not a 
criticism of the  staff themselves  but  it  does  bring  risks  for  departments  in  maintaining  continuity  in  the 
performance of activities in the face of a high turnover of staff. This, together with the variety of contracts 
under which these staff are employed, is confusing for the staff concerned and for the departments which 
manage  their  work.  Moreover  there  is  an  insufficient  guarantee  that  core  public  service  tasks  are 
performed only by staff subject to the  standards  laid down  in the  Staff Regulations.  Finally,  the  cost of 
employing  non-permanent  staff can be  close  to,  or even  above,  that of employing  a  permanent  official: 
while  non-permanent  staff will  always  be  needed to fill  short-term gaps  or to  bring  specialist  skills,  the 
high percentage of non-permanent officials in the Commission cannot be justified. 

There is a need therefore to address the degree to which the Commission relies on contractual staff and to 
rationalise  the  rules  on which tasks they may perform.  There is  a  link  between this  exercise  and that  of 
developing a policy of externalisation. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 44 

Peif ormance 7Jf core activities 

Core tasks should only be carried out by staff directly employed by the Commission who  are  covered by 
the high standards laid down in the Staff Regulations. 

Where  these  staff  are  not  permanent  officials,  they  will  be  required  to  respect  the  same  ethical  and 
professional.standards as officials.  Their recruitment or secondment will be  strictly time-limited to ensure 
that they  are  really  temporary.  Temporary agents  and experts  seconded  by  national  administrations  will 
always work under the guidance of permanent officials and they should not account for more than a small 
minority of overall staff. 

The above action will require: 

a) 

b) 

c) 

d) 

a  multiannual  programme  for  the  transformation  of credits  (for  auxiliary  and  casual  staff)  into 
permanent posts, starting with the 2001  budget. 

a multiannual pr_ggramme  for the transformation of temporary posts into permanent posts,  starting 
with the 2001  budget. 

an  amendment  to  the  Commission  Decision  on  seconded  national  experts  to  ensure  their  full 
accountability. 

, 

a Commission Decision on the recruitment of temporary agents under Article 2(b ), the methods of 
selection and the maximum proportion of temporary agents. 

e) 

phasing out of all other contractual staff (e.g. free  lancers) on core tasks. 

Action 45 

Use ·of non-permanent staff for non-core activities 

Simple  rules  need  to  be  developed  to  ensure  that  non-permanent  staff  working  on  the  execution  of 
policies  can. be  recruited  according  to  the  needs  of the  Commission.  Beside  local  agents  used  in  the 
Commission's delegations and representations, only two types of contractual staff should be  recruited for 

37 

non-core  activities:  auxiliaries  and  individuals  subcontracted  by  specialised  companies  (thereby 
progressively removing the need for other forms  of staff). The contracts would be flexible  in  their timing 
but  with a maximum duration.  In  general,  the  Commission  will  privilege the  use  of contracts covered by 
the Staff Regulations. 

Action 46 

Examine the need to change the Staff Regulations 

,In  the  context of the  externalisation policy  and  the  creation  of implementing  agencies,  the  Commission 
will  examine  the  need  to  amend  the  Staff Regulations  to  provide  for  the  necessary  flexibility  to  recruit 
contractual  staff.  The  opportunity  will  also  be  taken  to  consider  whether  the  Regulations  need  to  be 
modified  in  order to  meet  the  needs  in  the  Parliament  since  the  current  rules  on  temporary agents  have 
little relevance to the employment of such staff by the political groups. 

3. 

LEAD SERVICE(S) 

Action 44a, b 

DG BUDG 

Action 44c,d,e,45,46  DG  ADMIN  supported  by  the  Planning  and  Co-ordination  Group  on  Human 

Resources. 

4. 

TIMING 

Action 44a, b 

2001  budget: Multiannual programme of transformation of credits and of temporary 
posts into permanent posts. 

Action 44c 

November  2000: · adoption  of  draft  Commission  Decision  -on  detached  national 
experts. 

May 2001: adoption of Commission Decision. 

Action 44d 

November 2000: adoption of draft Commission Decision on temporary agents. 

May 2001:  adoption of Commission Decision. 

Action 44e 

Action 45 

December 2002: phasing out of all other contractual staff on core tasks. 

November 2000:  adoption of draft Code of Conduct for external personnel. 

May 2001: adoption of Code of Conduct. 

Action 46 

December 2000: examination of need to amend Staff Regulations completed. 

38 

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. 

I 

XVII - EQUAL OPPORTUNITIES AND GENDER BALANCE 

1. 

OBJECTIVE 

The  basis  for  the  Commission's  human  resources  policy  must  be  a  commitment  to  ensure  effective 
equality of opportunities for,  and the elimination of discrimination against, its staff. 

This implies not only the development of an environment which  favours  individual's career development 
regardless  of  their  race,  sex,  sexual  orientation,  disability  or  religious  conviction  but  also  action 
specifically aimed at increasing access to senior management posts. 

This  latter  point  is  of particular  importance  in  respect  of women.  The  Commission  thus  decided  in 
December  1999  that  "in  making  appointments  to  senior  management  posts,  the  Appointing  Authority 
will,  in  principle,  give priority to women  where  it  finds,  after conducting  an  assessment,  that  candidates 
are  of equal  merit".  This policy  will  not  be  followed  automatically,  but  it  will  be  one  of the  important 
means used by the  Appointing  Authority to  reach the objective of the  Commission to double  the  present 
number of women at Director General and Director level during its mandate. 

In  addition,  for the  last  five  years,  the  Commission  has  adopted  annual  objectives  for  recruitment  to  the 
Commission  and  appointments  of women  to  middle  management  posts  although  these  targets  have  not 
always been respected. 

Measures wi'll also be taken to allow  both women and men to reconcile more easily their professional and 
private lives (see Chapter IV-XVIII - A Better Working Environment and Social Policy). 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 47 

Gender balance 

The principle of "mainstr~aming", that is  the systematic consideration of gender issues  in  all policies and 
actions, must be a basic parameter for the reform of human resources policy. 

The measures necessary to promote· equal opportunities will be taken by creating an environment which  is 
favourable to the recruitment of women, to their promotion and career development  within the Institution. 
The document produced by the INTERCOPEC reflection group in  1998 sets out a basis for future work. 

Equal opportunities in the work place 

•  Reversal of the burden of proof in  cases of sex discrimination in  line  with Council Directive 97 /80  of 

15 December 1997 

•  Bal8;nced representation of women in  competition selection boards and committees based on  principle 

of parity 

•  Provisions to protect the dignity of the person in the workplace (notably against sexual harassment) 

•  Professional training (see Chapter IV-XV - Training) 

. Modernising the Staff Regulations 

•  The terminology employed will be made gender neutral. 

•  Modernisation· of the job description  for  C grades  in  Annex I  which  no  longer reflects  the  reality  of 

the work of this category of staff. 

Action 48 

Disability 

39 

The  Commission  will  take  the  necessary  measures  to  facilitate  the  access  of the  disabled to  work in  the 
European  Public  Service.  The  issues  which  need  to  be  addressed  include:  the  organisation  of 
competitions, career development,  administrative  assistance  and  the  provision  of appropriately  equipped 
offices  and  buildings.  Posts  which  can  be  most  easily  occupied  by  those  with  a  disability  will  also  be 
identified. 

Action 49 

Racial and ethnic diversity 

Although  non-discrimination·  on  grounds  of  race  figures  explicitly  in  the  Staff  Regulations,  the 
composition- of the  staff of the  EU Institutions  does  not  reflect  the  racial  and ethnic  diversity  of today's 
Europe.  The  Commission  will  take  the  measures  necessary  to  put  in  place  a  more  pro-active  policy  in 
favour of racial and ethnic diversity.  Co-operation with Member States to this end will be necessary. 

Action 50 

Age 

The Commission will abolish age limits for recruitment by ~pen competition.  Consultation with the other 
Institutions  on  the  abolition  of age  limits  for  recruitment  to  all  EU  Institutions  is  underway,  and  the 
Commission is willing to lead by example (also dealt with in Action 27). 

Action· 51 

Sexual orientation 

Conditions for recognising stable partnerships outside marriage will be established. 

3. 

LEAD SERVICE 

Action 47-51  DG  ADMIN  with  the  support  of  the  Planning  and  Co-ordination  Group  on  Human 

Resources. 

4. 

TIMING 

Action 47-51  October  2000:  Consultative  document  containing  an  overall  evaluation  of its  ongoing 
activities  in  the  area  of equal  opportunities  and  its  action  plan  for  the  coming · years, 
including a draft proposal for the necessary changes to the Staff Regulations. 

May  2001:  Proposal  for  changes  to  the  Staff  Regulations  submitted  to  the  Inter 
Institutional  Staff  Regulations  Committee  (after  internal  consultation  within·  the 
Commission). 

· 

December  2001:  Commission  proposal  to  Council  for  amendments  to  the  Staff 
Regulations. 

40 

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XVIII - A BETTER WORKING ENVIRONMENT AND SOCIAL POLICY 

1. 

QBJECTIVE 

The creation of a  better working environment  is  essential  for  impro.ving  job satisfaction  and  getting  the 
best  out  of the  people  working  in  the  Commission.  All  aspects  of  the  Reform  will  contribute  to 
improving  working  conditions  in  the  Commission  from  a  clearer  attribution  of responsibilities  and  a 
better match between tasks and resources through Activity-Based Management and externalisation;  more 
efficient  and  decentralised working  methods;  and  an  improved system of financial  control.  The  general 
reform of human resources policy will also contribute to this goal. 

More specific action to improve the accessibility of the service provided by the Commission's Directorate 
General  for  Personnel  and  Administration  is  needed,  as  is  action  to  allow  both  men  and  women  to 
reconcile  more  easily their  professional  and  private  lives.  This  latter  action  will  also  contribute  to  the 
promotion of equal opportunities.  The Commission's social policy is also in need of an overhaul. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 52 

A  more service-oriented Directorate General for Personnel and Administration 

An  initiative has already been launched to screen the quality of the services provided to the Commission's 
staff.  Vice-President  K.inqock  will  be  advised  by  a  representative  Customer ·Panel  composed  of 
Commission staff in improving the service provided and in guiding future action. 

In  particular, consideration will  be  given to means of better meeting  the  reasonable  expectations of staff 
in  terms  of the  speed  of  delivery  of  classical  administrative  tasks  (sickness  insurance  repayments, 
administrative acts); improving the Commission's procurement practices with the  aim of providing  better 
offices and office equipment  to  staff;  instituting  a  system of pay-roll  giving  which  would  make  it  easier 
for  officials  to  donate  part of their income  to  charitable  organisations  on  a regular  basis;  and  improving 
-the operation of the Commission's central telephone switchboard. 

The following concrete improvements are already foreseen: 

Creation  of an  lnfoservice  by  1  March  2000:  this  will  provide_  a  central  contact  point  for  DGs  and 
individual  members  of staff  and  will  provide  both  answers  to  routine  questions  and  the  name  of the 
person  to  contact _for  issues, of a  more  complex  nature.  This  lnfoservice  will  develop  into  a  "'one-stop 
shop"  for  all  DG ADMIN's customers providing  answers  to  individuals'  questions  by  telephone,  e-mail 
and in  specific meetings. 

Commitment to reimburse mission expenses within 30 days. 

Action 53 

Reconciling professional and private lives 

A series of actions will be undertaken: 

•  Parental leave (the possibility for both parents to take one  year's  leave  after the  birth or adoption  of a 
child).  The aim will  be  to provide at  least  social  security provision during  this  leave.  However,  the 
budgetary  implications  of  this,  together  with  seniority,  pension  rights  and  remuneration,  require 
further examination; 

· •  Family le~ve  (identical to the above but for family reasons which are not limited to children:  parents, 
siblings  etc.).  This  is  particularly  important  given  the,  often  significant,  geographical  distance 
between members of staff and their families in their countries of origin; 

•  More flexibility in working conditions (flexi-time; part-time; job-sharing; teleworking).  The aim will 
be  to  introduce  a  right  to  part-time  working.  However,  further  consideration  of  the  budgetary 

41 

implications is required.  A working group in DG ADMIN is  currently examining the practicalities of 
introducing  more  flexibility  in  working  conditions.  The  results of the  pilot  projects  on tele-working 
are expected in  Spring 2000 and will provide the basis for further reflection; 

•  Maternity  leave:  the  duration  and  conditions  of the  present  provisions  shoul~  be  improved  taking 
account in particular of specific situations such as multiple births and pregnancy-related illnesses; 

' 

•  Paternity leave.  The current provisfons are very limited and should be improved; 

As  a counterpart to  the  measures  described above,  it  will  be  necessary to  consider means  to  address  the 
difficulties caused by the absence of officials on parental,  family,  maternity or paternity leave or officials 
working on flexible conditions.  Further work is needed on the appropriate response to this problem as all 
solutions  have  budgetary  implications:  job-sharing;  creation  of a  reserve  of posts  in  the  establishment 
plan or a reserve of credits for the recruitment of auxiliary staff. 

Conditions  for  recognising stable partnerships outside  marriage  will  be established.  Better provision  for 
couples  of officials  is  also  needed.  This  applies  in  particular  to  the  conditions  for  taking  special  leave 
(CCP)  when  one  official  is  posted to  a  delegation  in  a  third  country:  the  current  maximum  for  special 
leave is 5 years while successive postings to delegations can be longer. 

Finally,  the  provision  of social  infrastructure  will  need  to  be  addressed  (see  section  on  social  policy 
below).  In drawing up the new  provisions, full  account will be taken of the effects on the Commission's 
ability  to  recruit  on  a  wide  geographical  basis,  conditions  prevailing  in  Member  States,  and  other 
administrative and budgetary costs. 

Action 54 

Social Policy 

The Commission's social policy needs to be rethought in view of the following objectives: 

• 

Improving the provision of child care facilities; 

•  Helping  newly-recruited  members  of  staff,  their  partners  and  families  to  adapt  to  life  in  a  new 

country; 

•  Providing assistance to members of staff confronted with specific problems and to retired staff; 

•  Sports centre: the use and purpose of the Overijse centre should be rethought. 

3. 

LEAD SERVICE(S) 

DG AD MIN with the support of the Planning and Co-ordination Group on Human Resources. 

4. 

TIMING 

Action 52 

July 2000:  Creation of Customer Panel. 

February 2001:  Decision on future role of and improvements to DG ADMIN. 

Action 53 

October  2000:  Consultative  document  containing  an  overall  evaluation  of  its  ongoing 
activities  for  improving  working  conditions  and  its  action  plan  for  the  coming  years, 
including a draft proposal for the necessary changes to the Staff Regulations. 

May 2001:  Proposal for changes to the Staff regulations submitted to the Inter-Institutional 
Staff Regulations Committee (after internal consultation within the Commission). 

December  2001:  Commission  proposal  to  Council  for  amendments 
Regulations. 

to 

the  Staff 

Acti.on 54 

October 2000: Consultative document on social policy containing an overall evaluation of 
the policy to date and an action plan for the coming years. 

42 

CHAPTER IV - HUMAN RESOURCES 

XIX - TRANSPARENCY OF PE~SONNEL POLICY 

1. 

OBJECTIVE 

Changes in the Staff Regulations will be needed to implement certain reform actions in the field of human 
resources  policy.  The  areas  in  which  changes  will  be  required  are  indicated  in  respect  of each  action. 
Where  further  thought is  needed as  to  whether change  is  necessary,  this  is  also  indicated.  There  will  be 
no change to the fact that a single set of Staff Regulations applies to all Institutions. 

There is  a need to simplify and codify the  legal texts adopted in  implementation of the Staff Regulations. 
The  results  of  this  exercise  will  be  V1ade  available  to  all  staff.  The  Commission's  administrative 
procedures for application of the Staff Regulations must also  be  improved with the  objective of ensuring 
proper application of the Staff Regulations.  There is  also  a need to  conduct  an  examination of the  Staff 
Regulations with  a  view  to  identifying  any provisions  which  are clearly out-dated.  The ultimate  aim  of 
these actions is to ensure transparency in the staffs rights and obligations. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 55 

Clear rules applied in a clear way 

Improvements  can  be  made  by  means  of  changes  to  implementing  legislation  and  administrative 
procedures.  Codification and  simplification of texts implementing the Staff Regulations  will  be  pursued 
in  order  to  ensure  transparency  and  fairness  in  the  application  of the  Staff  Regulations.  Pending  this 
simplification, every effort will  be  made. to apply existing rules in the  most effective, clear and consistent 
manner .  .In  any  event,  the  Commission's  administrative  procedures  for  applying  the  Staff Regulations 
will be reviewed. 

Increased  transparency  will  be  achieved  by  publishing  a  consolidated  version  of the  Staff Regulations, 
implementing  texts,  important  Commission  Decisions  and  basic  administrative  decisions  on  the 
Commission's Intranet. Regular updating will be assured. 

Action 56 

The Staff Regulations 

The Staff R~gulations will be examined - in full consultation with the staff representatives - with the aim 
of identifying  any  clearly outdated rules  which  are  not  needed  to  ensure  the  permanence,  indt:pendence 
and  quality  of the  European  Civil  Service.  This  exercise  will  not  question  the  involvement  of joint 
committees  composed  of staff representatives  and  the  Administration  in  the  Commission's  (and  other 
Institutions')  human resources  policy.  However,  the function  and operation of these  committees  will  be 
reviewed in order to improve their operation. 

3. 

LEAD SERVICE(S) 

Action 55-56DG  AD MIN,  with  the  support  of the  Planning  and  Co-ordination  Group  on  Human 

Resources. 

4. 

TIMING 

Action 55 

July 2000: on-line publication of consolidated version of Staff Regulations and other 
related Commission's decisions and documents. 

December 2000: results of review of administrative procedures for application of Staff 
Regulations. 

43 

Action 56 

December 2000: results of examination of Staff Regulations.  Depending on the outcome, 
first reading of proposal to amend the Staff Regulations by the Commission. 

May 2001:  after consultation  of the  OSPs  the  Commission  will  submit  a  proposal  to  the 
Inter-Institutional Staff Regulations Committee (SRC). 

December 2001:  submission of proposal to the Council. 

44 

~ 

IL.,__ _______  C_H_A_P_T_E_R_I_V_-_HUM __ A_N_R_E_S_O_U_R_C_E_S ______  _____, 

XX - DISCIPLINE 

1. 

OBJECTIVE 

Fair and  effective  disciplinary  rules are  needed  in  any  organisation.  In  the  Commission,  this  requires  a 
clear set of rules and guidelines on the rights and obligations of civil servants; appropriate incentives; fair, 
effective and efficient disciplinary procedures; and appropriate sanctions where staff are  in breach of their 
professional obligations. 

· 

Currently,  the  Commission's  disciplinary  procedures  have  a  number  of shortcomings,  and  in  particular 
the  lack of a  more  stable  Disciplinary Board.  Furthermore,  the  proceedings  are  often  too  slow  and  staff 
are  not  sufficiently well  informed regarding their obligations  and the  possible consequences of breaches 
of those obligations. 

Many improvements can be  made within the existing rules Some changes to the Staff Regulations will  be 
required to improve the system in the interests of those accused, their colleagues and the Institution. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 57 

Improvements at the level of administrative practice 

Preventive  measures,.  including  the  publication  of a  handbook  clearly  explaining  officials'  rights  and 
obligations;  internal  rules  for  the  opening  of  proceedings;  the  creation  of  an  enlarged  permanent 
secretariat of the Disciplinary Board; guidelines on sanctions based on their proportionality in  relation to 
the gravity of the offence; provisions to enable OLAF to give evidence to the Disciplinary Board where it 
has  conducted  relevant  investigations;  publication  of  disciplinary  decisions  (with  names  removed  to 
protect confidentiality). 

Action 58 

Improvements in the Staff Regulations 

The  power to  undertake enquiries  to  be  made  explicit  and  clarified;  the  creation of an  Inter-Institutional 
Disciplinary  Board;  amendment  of the  conditions  relating  to  ~uspension  of  officials  in  serious . cases 
during  the  disciplinary proceedings;  the  creation of an  Attorney's office  to  prepare the  Administration's 
case  and  to  present  it  to  the  Disciplinary  Board  and  answer  its  questions  ( currently  the  accused,  often 
represented by  lawyers,  is  present  at  the  Disciplinary Board.  The  Administration's  case  is  presented  to 
the  Disciplinary  Board  in  writing  and  the  Administration  is  not  represented  thereafter  in  proceedings 
before the Board). 

3. 

LEAD SERVICE(S) 

Action 57-58  DG  AD MIN,  with  the  support  of  the  Planning  and  Co-ordination  Group  on  Human 

Resources and SG. 

4. 

TIMING· 

Action 57-58  October  2000:  Consultative  document  on  discipline,  including  proposals  for  improving 

administrative procedures and amendments to the Staff Regulations and. 

October 2000: adoption of draft Commission Decision on administrative  improvements to 
disciplinary procedures. 

October  2000:  first  reading  of  a  proposal  to  amend  the  Staff  Regulations  by  the 
Commission. 

April 2001: · adoption of Commission decision on administrative improvements. 

45 

April  2001:  submission  of  proposal  to  amend  the  Staff  Regulations  to  the  Inter 
Institutional Staff Regulations Committee, after consultation of the OSPs. 

December 2001:  submission of proposal to change Staff Regulations to Council. 

46 

" 

L -1  _______  C_H_A_P_T_E_R_I_V_-_HUM __  A_N_R_E_S_O_U_R_C_E_S ______  ___, 

. . .  

XXI - RULES ON WHISTLEBLOWING 

1. 

OBJECTIVE 

In a Commission Decision of 2nd· June  1999, staff were given clear indications of the channels to  be used 
for reporting irregularities as follows. 

Members of staff must inform the Head of Service or Director General,  the Secretary General or OLAF if 
they  come  across  evidence  of the  existence  of possible  fraud,  corruption  or  any  other  illegal  activity 
detrimental  to  the  interests  of the  Communities.  The  same  obligation  applies  in  relation  to  evidence  of 
serious  breaches  of professional  duties  liable  to  result  in  disciplinary  or criminal  proceedings.  Persons 
complying  with  the  above obligations  must  not  suffer inequitable  or discriminatory treatment  as  a  result 
of communicating such information. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 59 

Rights and obligations on reporting wrongdoing to be inserted in  the Staff Regulations. 

Rules  on  whistleblowing  will  ensure,  inter alia:  protection  for  the  whistleblower  who  acts  in  good  faith 
and  in  the  public  interest,  without  aiming  for  personal  gain,  and  according  to  departmental  procedures; 
protection  from  false  allegations;  the  possibility  to  report  wro·ngdoing  through  internal  channels  within 
each  Commission  department  but  not  exclusively  within  the .direct  hierarchical  line;  the  definition  of 
reporting channels outside the  Commission and the circumstances  in  which  disclosures  to  such  channels 
should be protected; clarification that the  reporting of a case to OLAF for  investigation  does  not  absolve 
managers within the Commission from taking the  necessary steps themselves to remedy problems which 
are brought to their attention. 

Action 60 

Creation of a central mediation service 

Building  on  the  existing  Mediator structure,  the  creatjon  of a  central  mediation  service  to  offer  further 
assistance,  impartial  advice  and  a  contact  point  for  cases  that  do  not  involve  alleged  fraud  or  action 
affecting the financial interests of the Community. 

3. 

LEAD SERVICE(S) . 

Action 59-6()  DG ADMIN with support of the  Planning and Co-ordination Group on  Human  Resources 

and SG. 

4. 

TIMING 

Action 59-60  October 2000:  Consultative. document on rules on  whistleblowing, including proposals for 
the necessary changes to the Staff Regulations and clarification concerning the reporting of 
wrongdoing to OLAF. 

October 2000:  adoption of a draft Commission Decision laying down rules for members of 
staff reporting misconduct under existing procedures. 

October 2000: draft Inter-Institutional agreement on whistleblowers. 

December 2000: creation of a central mediation service. 

March 2001: adoption of Commission decision. 

· 

47 

l'---______ C_H_A_P_T_E_R_IV_-_HUM __ A_N_R_E_S_O_U_R_C_E_S ______  _____. 

~ 

I 

1. 

OBJECTIVE 

XXII - PAY AND PENSIONS 

The objective is to ensure that the European civil service remains independent and permanent and that the 
Commission  is  able  to attract  and to  retain  appropriate  individuals  of the  highest  quality  and  ability  in 
order to  be  able  to  discharge  its  important  functions.  In  particular,  the  levels  of remuneration  must  be 
such  as  to  attract  and retain  a  sufficient  number and quality of staff from  all  Member States  in  order to 
maintain the broadest possible geographical balance as required by the Staff Regulations.  In light of this, 
the Commission is committed to ensuring that reform does not result  in  the deterioration of the terms and 
conditions of employment of existing staff. 

A  number of major  challenges  for  the  system of pay  and pensions  will  have  to  be  faced  in  the  coming 
years.  First,  the  existing  Method  for  the  annual  adjustment  of the  salaries  (including  allowances  and 
pensions) of staff of all EU institutions expires on 1 July 2001. It will be nec.essary for the Commission to 
propose a system for its replacement in  good time  in  the course of 2000.  Secondly,  the Commission will 
have to make a proposal to secure the long-term balance of the pension regime in the coming years. 

As staff has rightly pointed out during the consultation process, these  issues  are  in  principle unrelated to 
Reform.  However,  Reform will  add an  additional  dimension to the  negotiations  on method &  pensions. 
This  Action  Plan  proposes  significant  amendments  to  the  Staff Regulations,  and  some  (for  example, 
linear career system, early retirement and social provisions) have implications for Member States'  overall 
budgetary outlay for the  staff of the EU Institutions.  Time constraints  related to  the  need to  go through 
legally required consultations (see attached timetable) make it impossible for the Commission to present a 
proposal  whteh  takes  account  of these  implications  to  Council  this  year.  A  Commission  proposal  to 
Council for the changes to ihe Staff Regulations necessitated by reform is planned for December 2001. 

There is thus the prospect of 2 separate negotiations in  Council - the first on the Method from June 2000, 
the second on the  modification of the Staff Regulations from December 2001.  Both will  have  budgetary 
implications.  This  scenario  is  likely  to  be  counterproductive  for  all  concerned.  It  would  not  allow  the 
overall budgetary implications of the EU staff salary package to be  addressed.  For staff,  there  would be 
mid-term  material  insecurity  since  both  sets  of negotiations  would  address  financial  questions.  Those 
considerations,  would  be  likely  to  result  in  disruption,  and  even  scaling  back,  of  the  Commission's 
proposals for essenti~l reforms. 

The issue is, thus, how best to approach these two subjects - pay and pensions and Reform- with the 
ultimate goal of achieving both ambitious Reform and maintaining a remuneration package which allows 
the EU Institutions to attract and retain highly-qualified, multi-lingual staff. 

2. 

NEW ACTIONTO BE IMPLEMENTED 

" 
Action 61 

Proposed approach to pay & pensions 

Given the very real link between pay and pensions and reform and the complexities of two successive and 
major sets of negotiations,  the best  solution  for  staff,  Commission and Council  would be  a  single  global 
negotiation in Council on pay & pensions and revisions to the Staff Regulation~. 

This objective could be reached by the Commission presenting a proposal to Council in  the course of this 
year, containing two parts.  First, a proposal to extend the existing Method, temporary contribution, salary 
structure and pensions regime  for  a  short period of up to  2  years.  Secondly,  a commitment to present  an 
integrated package to Council  for  revision  of the  Staff Regulations  and  a  new  Method  and  measures  to 
address  the  long-term equilibrium of the  pension  regime  by December  2001.  This  would  allow  ample 

48 

,. 

time to reach agreement in  Council before the expiry of the method in  mid-2003.  There are considerable 
practical advantages to such an approach and no legal impediments. 

3. 

LEAD SERVICE(S) 

DGADMIN 

4. 

TIMING 

Action 61 

June 2000: Commission Communication 

49 

I.  REFORM OF  PERSONNEL POLICY - ILLUSTRATIVE  EXAMPLES OF  SUBJECT & TIMING 

,. 

Figure II 

(A)  SOCIAL POLICY  - WORKING  CONDITIONS & EQUAL OPPORTUNITIES 

Proposal to amend 
Staff Regs.  to Council 

,~-----~-

OSP Consultation 

Inter-Institutional Committee 
A ________ ,  ~----__,A,... _____ ......, 
' 

y 

Jul  Aug  Sep 

t  Nov  Dec  Jan  Feb  Mar  Apr  M  y  Jun 

2001 

Jul  Aug  Sep 

t  Nov 

Jun 2000 

Dec 2001 

Consultative Document 

Commission transmits 
proposed changes to 
Staff Regulations for  inter 
Institutional consultation 

Commission considers proposals 
following inter-Institutional  · 
consultation 

(8)  CAREER STRUCTURE 

Proposal to amend 
Staff Regs.  to Council 

OSP Consultation 
A 
.,. ___  _,  ...., ___  ......,y__. 
r 

Inter-Institutional Committee 
______ _..A ______ ...,. 
' 
-

Jul  Aug  Sep  Oct  N  v  Dec  Jan  Feb  Mar  Apr  M  y  Jun  Jul  Aug  Sep 

t  Nov 

2001 

Jun 2000 

Dec 2001 

Consultative document 

Commission transmits 
proposed changes to Staff 
Regulations for inter-Institutional 
consultation 

Commission considers 
proposals following inter 
Institutional consultation 

111.  PAY & PENSIONS 

(A)  CURRENT  COUNCIL POSITION 

I 

Jul  Aug  Sep  Oct  Nov  Dec  Jan 
2001 

Feb  Mar  Apr  May  J  n  Jul 

Aug  Sep  Oct  Nov 

Proposal to Council 
covering method, 
allowances & pension 

(8)  COMMISSION APPROACH 

Dec 2001 

Existing method 
expires 

Jul  Aug  Sep  Oct  Nov  Dec  Jan 
2001 

Feb  Mar  Apr  May  Jun  Jul 

Aug  Sep  Oct  Nov 

Jun  000 

Commission Communication ~tting out 2-step approach:  (i) proposal to 
extend existing method for 2 years (pension and allowances - Annex VII) 
unchanged for that period; (ii) committment to present integrated proposal 
in Dec 2001 

Integrated proposal covering Staff Regulations, 
method & pensions to Council 

r 

L . . - -1  ___ _ ___  CH_A_PT_E_R_IV_-_HUM __ A_N_R_E_S_O_U_R_C_E_S ______  ____, 

XXIII - RESOURCE IMPLICATIONS OF REFORM 

1. 

OBJECTIVE 

The Reform will  increase the efficiency and the effectiveness of the Commission's work and will  release 
resources  for  allocation  to  core  functions.  However,  an  initial  investment  will  be  needed  to  reap  these 
benefits  as  new  systems  are  phased  in.  The  Commission  has  already· diverted  human  resources  towards 
key reforn:i areas such as the financial control and activity based management systems within Directorates 
General.  The  Reform equally  requires  an  investment  to  upgrade  the  existing  provision  of skills  and  IT 
facilities and to make a more efficient use of human resources. 

It  is  already  clear  that  certain  reform  proposals  will  have  permanent  resource  implications.  These 
include: 

•  The development of training as a core component of a modem human resources policy; 

•  Development and- extension of the use of information systems at headquarters and in delegations; 

•  The modernisation of working conditions and social policy and implementation of an  improved equal 

opportunities programme. 

In addition, there will be a temporary need for an allocation of resources in  a number of areas to deal with 
the transition to new systems as reform proposals are phased in. This includes: 

•  The investment in Activity Based Management in Directorates General; 

•  The devel9pment of new guidelines for personnel policy, in the DGs and the central services; 

•  Tackling the backlog of.-outstanding commitments and payments.  In the external aid sector alone,  the 
backlog  involves  some  4300  files  which  have  to  be  checked  individually.  Some  date  back  twenty 
years; 

•  Financial management in DGs as new systems are phased in. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 62 

Review of the resource implications of reform and policy action to deal with  it 

A review  of the  full  resources  implications  of Reform will  be  carried out  as  part of the  resources  needs 
assessment  the  Commission  is  preparing  for  September 2000.  Th.e  Commission will  set  up  a mechanism 
to redeploy resources within and across policy areas  to ensure  that  its  resources  allocation dovetails  with 
its core tasks and policy priorities. A Peer group of Commissioners chaired by the President will  be  set up 
to  appreciate  the  full  potential  fqr  redeployment  within  and  across  DGs  and  assess  overall  staff needs. 
This exercise will take full  account of the potential for externalising non-core activities where this  is  more 
efficient and does not lead to a loss of accountability. 

Should  this  assessment  find  that,  after the  comprehensive  re-allocation  of staff,  the  Commission  would 
not  have  sufficient  resources  to  carry  out  its  core  tasks  and  policy  priorities,  it  will,  on  the  basis  of 
recommendations of the Peer group,  make  a proposal to the budgetary authority to provide the  necessary 
additional human r~sources. This would be done in the form of an amending let!er in September 2000. 

In  addition,  some  200  posts  will  be  made  available  for  two  years  (2000-2001)  to  cater  for  the  initial 
investment that the reform activities require. These posts will be allocated on the basis of a list of eligible 
activities.  These  posts  will  be  made  available  by  reducing  the  number  of  unused  posts  in  the 
establishment plan.  This measure will obviously respect both the  limits defined  in  the establishment plan 
and the maximum for appropriations in Title A-1  of the Budget. 

51 

3. 

t 

LEAD SERVICE 

DG BUDG and DG AD MIN. 

4. 

TIMING 

Action 62 

April 2000:  Preliminary Draft Budget for 2001. 

May 2000: Decision by the College on the allocation of 200 posts. 

September 2000:  Commission Communication on requirements. 

52 

CHAPTER V -AUDIT, FINANCIAL MANAGEMENT AND CONTROL 

XXIV - EMPOWERMENT, RESPONSIBILITY AND ACCOUNTABILITY OF 
AUTHORISING OFFICERS AND LINE MANAGERS 

1. 

OBJECTIVE 

The  conditions  for  creating  a  real  sense  of responsibility  are,  first  of all,  a  clear  definition  of tasks; 
secondly,  making  sure  that  everyone  knows  and  understands  their  responsibilities;  and,  thirdly,  fair  and 
trusted means for dealing with breaches of the rules. 

· 

Financial  management is  the  managing  of activities  that  use  Community  funds  t.o  reach' their objectives; 
hence financial  management is but one aspect of operational management.  In this  context, the  delegation 
of  the  power  to  authorise  expenditure  has  to  be  consistent  with  the  chain  of  responsibility  of  the 
management  process, ,from the  ordinary official to the Director General and the Commission.  Therefore, 
the person who takes the operational decision to go ahead with an action involving expenditure should be, 
as  far as possible, the person who authorises the expenditure. 

The  logical  consequence  is  that  the  tasks  and  responsibilities  of  an  authorising  officer  cannot  be 
dissociated from those of an operational manager.  However, it  is important to ensure that the stewardship 
of Community funds is entrusted to persons who are capable of this type of management. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 63 

Description of the responsibilities of each financial actor 

A set of clear rules on the rights and duties of each financial  actor ( authorising officer, accounting officer, 
. or financial controller) detailing the responsibilities will be drawn up.  This will be given to each financial 
actor  at  the  time  of his  or  her  nomination  and  supported  by  appropriate  training.  Failure  to  meet  the 
standards set in  this charter will result  in withdrawal of the granted delegation.  The withdrawal authority 
and procedure will be set out in the charter. 

Action 64 

Delegation of powers 

The power to authorise expenditure shall  be  attributed by the Commission to officials of the Community, 
to whom the rules on liability foreseen by the Staff Regulations apply. The charter on the responsibility of 
· authorising  officers  will  establish  the  rules  for  delegating  within  departments  the  power  to  authorise 
expenditure.  As  far as  possible, the  person who takes the  operational decision to  go  ahead  with  an  action 
involving  expenditure  should  be  the  person  acting  as  authorising  officer.  In  sotne  specific  areas  to  be 
determined,  the  College  itself could retain  the  power to  decide  an  item  of expenditure;  in  that  case,  the 
Commission's internal rules on the execution of the budget will  define the administrative responsibility of 
the department managing the expenditure. 

' 

. 

Action 65 

Suppression of centralised ex-ante visas 

The requirement to obtain prior approval  from the Financial Controller before committing or authorising 
expenditure  will  be  eliminated.  Likewise,  the  compulsory  opinion  of  the  Advisory  Committee  on 
Procurement  and  Contracts  will  no  longer  be  required  before  concluding  a  contract.  (See  Chapter  V -
XXVIII  - The  Transition  Phase  for  transitional  arrangements  pending  changes  to  the  Financial 
Regulation).  The  Accounting  Officer will  not  check  the  validity  of the  discharge  ("acquit  liberatoire") 
issued by the authorising officers. 

This action requires  a  unanimous  decision  of the  Council on  the  recasting  of the  Financial Regulations, 
taking into account the opinion of the Court of Auditors and European Parliament. 

53 

Action 66 

Financial Irregularities Panel 

Without calling into question the role of OLAF, in cases of financial  error or suspected irregularity which 
do  not  involve  fraud,  the  Director  General  of  the  department  concerned  will,  before  initiating  a 
disciplinary procedure, submit the  case  to  a Financial Irregularities Panel of a help-desk  nature  to  advise 
on possible financial irregularities. This Panel will consider whether there are systemic shortcomings and, 
if so, the relevant role of the person responsible for the  management  and control system.  The Panel  will 
have  an  advisory role  and it.  will  be an  intermediary step between the  detection of an  irregularity and the 
launching,  if appropriate,  of a formal  disciplinary procedure.  The  official  involved  should have  the  right 
to  be  heard  by  the  Panel.  As  far  as  possible,  t~e  Panel  will  recommend  corrective  and  preventative 
measures  to  the  Director General.  The  Panel  may call on  the  Internal  Audit  Service  (see  Action  68)  to 
establish facts by means of a special audit. 

Action 67 

Financial liability governed only by the.Staff Regulations 

The financial  liability of any official with  a role  in  the  management  process of activities  with  a financi~l 
impact  will  be  governed  by  the  provisions  made  in  the  Staff  Regulations.  The  redundant  specific 
provisions for financial actors made  in the existing Financial Regulations  will  be  deleted  in  the  recasting 
of  the  Financial  Regulations  to  be  proposed.  The  accounting  officers'  liability  under  the  Financial 
Regulation is not affected by this measure. 

3. 

LEAD SERVICE(S) 

Action 63 

DG  Budget,  TFAR,  supported  by  the  Planning  and·  Co-ordination  Group  (PCG)  on 
Financial Circuits. 

Action 64 

All DGs, DG Budget, supported by the PCG on Financial Circuits. 

Action 65 

DG Budget, supported by the PCG on Financial Circuits. 

Action 66 

DG Budget, supported by TFAR, DG ADMIN. 

Action 67 

DGBudget 

4. 

TIMING 

Action 63 

May 2000 (Commission decision). 

Action 64 

Early  2001  (approval  of the  Commission's  internal  rules  on  the  execution  of the  budget 
2001). 

Action 65 

April 2000 (Proposal for recasting of the Financial Regulations). 

Action 66 

June 2000 (Commission decision). 

Action 67 

April 2000 (Proposal for recasting of the Financial Regulations). 

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, .  

XXV - CREATION OF A CENTRAL INTERNAL AUDIT SERVICE 

1. 

OBJECTIVE 

Given  the  size  and  complexity  of  its  financial  operations,  the  Commission  needs  an  assurance  that 
financial  risks  are  being  properly  managed  and  that  resources  are  being  used  efficiently.  It  needs  an 
overall  strategy that  permits  ongoing  monitoring  of the  operation  of its  internal  control  systems  and  of 
controls on expenditure funded from the EU budget, revenues or own resources. 

An appropriate structure for the Commission's audit activities would be for systematic ex-post checks and 
systems  reviews  of activities  in  the  field  to  be  carried  out  by  specialist  staff in  Control  Units  within 
operational  DGs  (see  Action  81).  This  structure  would  be  complemented  by  a  central  Internal  Audit 
Service (IAS)  whose  main  task would be  to review  the  internal control functions  and systems  within  the 
Commission. 

The  mission  of the  new  service  will  be  to  assist  management  within  the  Commission  in  ( 1)  controlling 
risks,  (2)  monitoring  compliance  and  by  (3)  providing  an  independent  opinion  on  the  quality  of 
management and control systems and (4) making recommendations in  order to improve the efficiency and 
the effectiveness  of operations  and to  ensure economy  in  the  use  of Commission resources  (security for 
money and value for  money). The overall objective of the IAS  is  to  provide reasonable assurance  by way 
of audits  of all  Commission  activities,_ notably the  independent  apprai,sal  of the  adequacy and  quality  of 
the  Commission's  internal  control  systems  over  all  its  operations  as  well  as  the  examination  of the 
adequacy  and  effectiveness  of systems  and  operations  and,  more  widely,  the  quality  of performance  of 
Commission services in carrying out policies, programmes and actions. 

The  IAS  represents  a  key  element  in  the  Commission's  new  framework  for  resource  management  and 
internal  auditing  and  will  have  to  meet  highest  standards  in  terms  of  management,  competence  and 
capacity. 

2. 

ACTION RECENTLY TAKEN 

A  new  post  of Deputy  Director General,  responsible  for  internal  audit,  has  already  been  crated  in  the 
present Financial Control DG.  The recruitment process. for this post commenced on 3 February. 

· 

The  planning  and  co-ordination  group  on  Internal  Audit  has  submitted  its  final  report  on  "A  new 
Framework  for  Resource  Management  and  Internal  Auditing  in  the  Commission"  on  22.02.2000  to  the 
Vice-President for Reform. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 68 

Setting up of an Internal Audit _Service  by May 2000 

An  independent  and  professional Internal  Audit  Service  will  be  set  up  under  the  direct  responsibility  of 
the Vice-President for Reform in conformity with the recommendations of the Committee of Independent 
Experts, second report, 4.13.3.  The Head ofIAS will need to  have the same  independence as  is  currently 
guaranteed  by  the  Financial  Regulation  to  the  Financial  Controller,  thereby  enjoying  autonomy  in  the 
conduct of internal audits,  the  maintenance  of professional  standards and  the  contents of reports.  He/she 
will  be  a  highly qualified  and  experienced  member of the  audit  profession  recruited  specifically  for  this 
task. 

The  Commission  will  decide  in  March  2000  on  the  establishment  and  organisation  of the  new  Service. 
The  IAS  is  likely  to  have  a  staff of about  80  officials  of different  grades  of whom  about  65  will  be 
professionally qualified and experienced auditors.  The new  service  will  be  progressively built  up  on the 

55 

basis of inten;ial  audit  experience  in  the  Commission.  To  make  the  best  use  of the  available expertise,  a 
general call for interest from all Commission staff who have the necessary professional qualifications and 
background  will  be  launched to  be  followed  by  an  internal  competition.  External  recruitment,  including 
national experts coming from audit  services in  the Member States will  also  be  foreseen.  The preparatory 
work will comprise a draft  working plan  for the  period of 1 May to  31  December 2000,  a code  of ethics 
for IAS  staff  and the design of a common approach to internal auditing.  The new  organisation will  be set 
up by 1 May 2000. 

· 

Before the end of 2000, the Head of IAS  will  be responsible for preparing an Internal Audit Plan for 2001 
and a Forward Audit Plan for 2001-2003.  A second call for interest, based on requirements developed by 
the IAS,  will  be  published as  soon  as  the  Head of IAS  is  reasonably sure  of the  needs.  By March 2001, 
the  IAS  will  submit to  the  Audit  Progress  Committee  (see  Action  71)  and  the  College the  internal  audit 
report for 2000, in  which the setting up of the IAS  and the results of the auditing of the change process in 
the operational DGs should be presented. 

Action 69 

Reporting and Planning of the Internal Audit Service 

The Head of IAS will be  independent of other Services and report to the  Vice-President for  Reform with 
access  to  the  President  and the College,  whenever necessary.  The Head of IAS  will prepare on  the  basis 
of a three-ye,ar rolling Forward Audit Plan an Annual Internal Audit Plan for the  implementation of audit 
activities.  Both plans will  be risk-based.  Discussion between the  Internal  Audit  Service and its  auditees 
should last no. more than one month,  after which the  audit report should be  finalised.  The Head of IAS  is 
responsible for  all  audit  reports and  has  to· present  an  Annual  Audit  Report on activities  and  results.  The 
Annual  Audit Report will  be published.  Before the  end of 2000,  the Head of the IAS  will  be  responsible 
for preparing an Internal Audit Plan for 2001  and a Forward Audit Plan for 2001-2003. 

Action 70 

Separation of internal audit from financial control 

The  concern  for  rendering  internal  audit  independent  by  eliminating  the  potential  for  conflicts  between 
intern.al  audit  and financial  control would be  met  by  revising  article· 24 of the Financial  Regulation  (FR) 
in the context of its recasting and, as  much as possible in the interim, through a system by which the Head 
of IAS  reports - under the responsibility of the Financial Controller - to  the  Vice-President  for  Reform. 
The proposed revision  in  the FR would foresee  that,  in  the  case  of the  Commission, the Internal  Auditor 
will exercise with equivalent independence the responsibility of financial controller defined by the Treaty. 
The Commission will urge Council, Parliament and Court of Auditors to  deal rapidly with this change to 
article 24, which should be treated as  a separate train.  Until article 24 has been changed the IAS  will  have 
to  be  organised  within  the  present  Financial  Control  DG,  though  its  location  will  be  separate,  and  the 
Head of IAS  will be a Deputy Director General for  internal  audit  in  the Financial Control DG.  After the 
interim period the IAS  will  form a separate, independent structure. 

· 

Action 71 

An Audit Progress Committee 

An  Audit  Progress  Committee  shall  assist  the  College  of the  Commission  in  fulfilling  its  obligations 
under the Treaties and  under other statutory instruments  and agreements  by  assuring  the  maintenance  of 
· quality  and  integrity  in  the  accounting  and  reporting  practices  of  Commission  services.  The  Audit 
Progress Committee will ensure the  independence of the IAS  and monitor ( 1) the control processes of the 
Commission  through  the  results  of  audits  of  the  IAS  and  the  European  Court  of  Auditors,  (2)  the 
implementation of audit  recommendations,  and  (3)  the  quality of audit  work.  It  will  also  ensure efficient 
communication  between  the  College,  the  Court  of Auditors,  the  IAS  and  the  Directors-General  and 
financial services of the Commission.  Commissioners and Services could, through the Committee, call on 
the  IAS  to  provide  assistance  or  carry  out  specific  audits.  The  Committee  will  be  comprised  of  a 
maximum of five  members  of whom four  shall  be  Members  of the  Commission,  and  will  be  chaired by 
the  Budget Commissioner.  The other participant will  be  selected from outside the  Commission and will 
have  relevant  experience  and  knowledge  of  corporate  governance  and  control.  The  Audit  Progress 
Committee will be an advisory body without executive powers and will be assisted by a secretariat. 

56 

3. 

LEAD SERVICE(S) 

Action 68 

DG  ADMIN  (for  recruitment  and  logistics),  Task  Force  Reform  (for  Action  68  co 
ordination  of other preparatory work  until  May  2000),  Head  of IAS  (for  proposing  audit 
charters). 

Action 69 

Internal Audit Service 

Action 70 

DG Budget 

Action 71 

Secretariat General or DG Budget (for making arrangements to provide the secretariat). 

4. 

TIMING 

Action 68 

Before May 2000 and as soon as possible for the audit charters. 

Action 69 

December 2000 (Internal Audit Plan 2001  and Forward Audit Plan 2001-2003) and March 
2001  (Annual Internal Audit Report 2000). 

Action 70 

April 2000 (presentation of proposal for recasting of Financial Regulation). 

Action 71 

As soon as possible after adoption of the charter of the Audit Progress Committee. 

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, ,  

XXVI - CREATION OF A CENTRAL FINANCIAL SERVICE 

1. 

OBJECTIVE 

Central  professional  support  and  advice  need  to  be  available  to  anyone  dealing  with  budgetary  and 
financial  management.  This  will  provide  coherence  across  the  Commission  in  the  definition  and 
application of rules, procedures and Commission-wide standards for internal control.  It is  the corollary of 
giving more responsibility to financial  actors: to be  able to  act responsibly,  they need first  the knowledge 
and means to exercise those responsibilities. 

On  the  other hand,  the  best  means  of ensuring  respect  for  rules  and procedures  is  to  make  them readtly 
accessible to all officials in  a form which is consolidated, simplified, clearly set out and easily accessible. 
The  need  for  clear,  common  and  consolidated  rules  and  procedures  is  especially  urgent  for  grants  and 
procurement.  Competitive procedures for  allocating  funds,  full  information  about  financing  possibilities, 
fair  treatment  of  all  bidders,  transparent  selection  procedures,  publication  of the  results,  and  proper 
follow-up  and  evaluation  are  principles  that  must  be  rigorously  applied.  The  problem  of drawing  the 
dividing  line  between  a  grant  and  a  procurement  spending  needs  to  be  settled.  Last,  the  Commission 
needs to set a good example in procurement procedures. 

2. 

ACTION RECENTLY TAKEN 

A  Central  Contracts  Cell,  established  within  DG  Budget  since  1998,  has  started  defining  standard 
contracts, providing advice and designing a contracts database. 

A Vademecum on Grant Management was  agreed by the  Commission  in  July  1998  and  came  into  force 
on  1  January  1999.  An  evaluation  of its  application  is  underway  and  the  results  will  be  available  in 
February 2000. 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 72 

Creation ofa Central Financial Service 

A Central Financial Service (within DG Budget) will define the regulatory framework - including sectoral 
financial  rules  - for  using  Community finances  and  the  minimum  standards  for  internal  control,  provide 
advice  on  their  application  to  those  who  manage  financial  appropriations  and  who  take  care  of  their 
recovery, develop and manage common financial manag~ment  information  systems and define - together 
with  DG  Administration  and  operational DGs  - training  courses  on  financial  matters.  The  Service  will 
establish  a  user-friendly  and  interactive  Intranet  site  containing  all  the  rules,  manuals  and  other 
information on  all  aspects of direct  and  indirect  financial  management.  Its  service  will  be  attuned to  the 
needs of its  'clients', and feedback from a regular survey of the satisfaction of its  users will be  included in 
DG Budgef s annual report.  When  it  makes proposals on financial  procedures,  it  should obtain  the  views 
of  the  Internal  Audit  Service  in  order  to  ensure  that  the  expertise  of  the  Internal  Audit  Service  is 
appropriately taken into account. 

Action 73 

Advice on contracting 

Setting  up  of  a  Contracts  Unit  to  provide  advice  on  contracting  to  authorising  officers  and  to  the 
Commission. This Unit will  be  in  charge of defining standard contracts, managing the  contracts database 
(see  below),  and giving advice on contract management  and procurement procedures  (See  Action  94  for 
the fraud-proofing of systems for contract and tender management). 

Action 7 4 

Contracts database 

58 

A  central  database · will  bring  together  all  contracts  and  financing  agreements  concluded  by  the 
Commission.  It  will  be  a  precondition of any proposal to  undertake  financial  commitments that  the  data 
related  to  the  envisaged  contractor  have  been  entered  in  the  database.  The  database  will  contain  all 
relevant  information  on  the  object  of the  contract,  the  contractor,  the  beneficiaries  (including  major 
indirect beneficiaries) and implementation. 

Action 75 

Operational manuals of financial management 

The operating  rules  will  be  codified and presented in  simple  manuals  which  will  be  updated  as  needed. 
These manuals will translat~ into practical terms the principles of sound financial  management and act as 
a  guide to  dealing  with  a  financial  file  from the conception of the  action  to the evaluation of the  results. 
The training on financial and budgetary management will be based on these manuals. 

Action 76 

Contracts and grants 

The principles  for  awarding  and  monitoring contracts  and  grants  will  be  set  out in  a  separate  section· of 
the revised Financial Regulation. 

Consideration will  have to be given to the creation of a body independent of the  authorising  officers that 
could handle complaints against proctJrement procedures. 

Action 77 

User networks 

The Central Financial Service will set up user networks to ensure an effective diffusion of information, to 
identify  and exchange  best  practices  and to obtain feed-back  from operational  services.  The  functioning 
and number of existing user networks will  be reviewed and streamlined in this context. 

4. 

LEAD SERVICE(S) 

Action 72 

DG  Budget,  supported  by  the  Planning  and  Co-ordination  Group  (PCG)  on  Financial 
Circuits. 

Action 73 

DGBudget. 

Action 74 

Action 75 

Action 76 

DG Budget, supported by the PCG on Financial Circuits. 

DG Budget, TFRA, supported by the PCG on Financial Circuits. 

DG Budget, supported by _th~ PCG on Financial Circuits. 

Action 77 

DG Budget. 

5. 

TlMING. 

Action 72 

May 2000 (Commission's decision on the establishment  of the Ceritral Financial Service), 
intranet site completed by June 2001. 

Action 73 

June 2000. 

Action 74 

June  2001  (temporary contracts database  operational; decision  on the  configuration  of the 
.future definitive database). 

Action 75 

November 2000. 

Action 76 

April 2000 (Commission's proposal for recasting of the Financial Regulations); review  the 
need to change the Commission's internal rules of procedure. 

Action 77 

Throughout 2000.  . 

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. ,  

XXVII - FINANCIAL MANAGEMENT AND CONTROL WITHIN 
DIRECTORATES-GENERAL 

1. 

OBJECTIVE 

A Director General's responsibilities cover the entire management process, starting from the definition of 
objectives  to  delivering  results.  This  includes  ensuring  the  legality,  regularity  and  effectiveness  of the 
financial  decisions  he/she  takes,  a  responsibility  that  will  no  longer  be.  shared  with  the  Financial 
. Controller or the accounting officer after the elimination of their responsibility for the ex-ante visa and for 
the check of the  validity of the discharge.  Directors General will therefore  wish to  ensure that  they  have 
sound  internal  control  systems.  The  Commission's  Internal  Auditor  will  be  responsible  for  the 
examination  of  the  efficiency  and  effectiv.eness  of  management  and  departmental  internal  control 
systems. 

Int~rnal  control  covers  the  globality  of the  policies  and  procedures  conceived  and  put  in  place  by  an 
entity's  management  to  ensure  the  economic,  efficient  and  effective  achievement  of  the  entity's 
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. 

It  follows  that  internal  control  is  the  responsibility  of all  officials.  Internal  control  systems  should  be 
integrated  with  operating  activities,  so  that  prompt  reaction  to  changing  situations  is  possible  and  the 
quality of decision  making  and.delegation can be  improved.  The  key  financial  control  issue  is  to  define 
the tasks and responsibilities of each official involved in  the decision making process since all tasks carry 
financial implications

at some level. 

· 

1 

Each  DG  will  issue  an  Annual  Activity  Report  (See  Chapter  III-VIII  - Activity  Based  Management 
(ABM))  comprising  a  description  of the  results  achieved,  a  detailed  report  on  the  use  of the  allocated 
resources and an annex with the financial  accounts of the DG following a framework to be defined by the 
Commission's  Accounting  Officer.  The  Director General  shall  declare  explicitly  in  the  report  that  the 
internal  control  procedures  in  place  give  adequate  assurance  as  to  the  legality  and  regularity  of  the 
underlying transactions. 

Each DG will  have  to  adopt  the  organisational  structure  which  suits  its  needs  to ensure  that  its  internal 
controls function properly. Finance Units are to continue to have  important roles in  the budget procedures 
and  in  creating  and  managing  the  DGs'  financial  systems.  The  Director  General  must  decide  to  what 
extent  the  Finance  Unit  can  and  should  have  an  ex-ante  approval  role  on  critical  operations.  While  the 
structures  and  instruments  throughout  the  Commission  should  be  as  uniform  as  possible,  an  identical 
system  for  all  DGs  would  not  be  appropriate  given  that  spending  profiles,  requirements  for  financial 
management  and  control  capability,  and  corresponding  models  for  internal  control  systems  vary  across 
DGs.  It  seems prudent to  set  uniform minimum standards - validated by external expertise - rather than 
to  imp9se  a  harmonised  framework  on  all  services.  In  parallel,  an  analysis  of  human  resource 
requirements  will  be  needed  and  ways  found  to  attract  and  retain  competent  staff.  Management  skills, 
especially in  financial  management,  should be  developed  through  recruitment  and training  (see  Chapter 
V-XXIX-Human Resources and Training). 

Particular attention  will  need to  be  given  to the  area of external relations,  both  in  respect  of the  current 
split  in  responsibility  for  different  stages  of  the  project  cycle  and  of  the  deconcentration  and 
decentralisa,tion of financial interventions. 

2. 

ACTION RECENTLY TAKEN 

External Evaluation of the Implementation and Results of SEM 2000: July 1999 

60 

3. 

NEW ACTION TO BE IMPLEMENTED 

Action 78 

Minimum standards for internal control 

The  Central  Financial  Service  will  define  common  minimum  standards  for  internal  control  within  DGs 
and will  provide advice on their implementation. These standards will  describe the systems and  functions 
that  must  be  in  place  in  all  spending  departments  (e.g.  written  assignment  of  tasks,  definition  of 
responsibilities,  principle  of  segregation  of  duties,  control  function,  monitoring,  internal  manuals,. 
codification  of processes,  training,  etc.).  Each  authorising  service  must  take  ultimate  responsibility  for 
reviewing its own internal control systems, and it  will  be  for Directors General to ensure the  adequacy of 
internal controls  in  their  services.  Each DG will  set  out  in  writing  its  financial  management  and  control 
systems following a format  defined by the Central Financial Service. This document  should be  accessible 
to  all  staff and kept up to date.  A copy would be  sent for information to the Central Financial Service and 
the Internal Audit Service. These documents, the user networks and the audit reports from DGs and  from 
the  Internal  Audit  Service  will  provide  the  Central Financial  Service  with  the  necessary  information  to 
oversee  the  implementation  of the  minimum  standards  across  the  Commission.  The  Central  Financial 
Service will update them when necessary. 

Action 79 

Segregation of duties and financial circuits 

Every single  financial  transaction will  be  assessed from  the  operational  and the  financial  point  of view, 
prior to the  authorisation  of the  expenditure.  On  the  basis  of a  risk  assessment  of activities  and  a  cost 
effectiveness analysis of the use of resources and expertise, each Director General will decide on the most 
appropriate  division  of duties  and  the  resulting  organisation chart.  Recommended organisational  models 
will  be  designed  for  each  type  of  expenditure  (see  the  indicative  basic  models  of  financial  circuits 
annexed to this fiche). 

Action 80 

Evolution of the role of Finance Units in DGs 

Finance Units will  be  the  main  point  of contact  with DG Budge~,  ensuring  that  rules  and  procedures  are 
known  throughout  the  DG  and  feeding  back  the  experience  of users.  They  will  create  and  manage  the 
DGs' financial systems, produce the financial  section of the DG's Annual Activity Report and ensure that 
accounting  information  is  complete,  comprehensible,  and  available  to  all  officials.  These  Units  will 
provide  advice  and  assistance  to  operational  units.  In  some  financial  circuits  they  will  carry  out  the 
financial  assessment of a  financial  transaction  (see  Action  79),  this  will  be  generally the  case  for  public 
procurement  procedures. They could combine  an  ex-ante  approval  role,  if considered appropriate  by  the 
Director General,  with  other aspects of financial  planning  and  monitoring.  This  ex-ante check  will  be  an 
additional guarantee for the authorising officer but it will not diminish his responsibility. 

Action 81 

Strengthening the role of the DGs' control function 

An  Audit Capability will be created in each DG, the primary objective of which is to provide assurance to 
the  Director  General  as  to  the  functioning  of internal  controls  over  the  activities  of the  DG,  including 
financial activities. This function  (depending on the scale of the DG's financial responsibilities, this  might 
be one person or a sector rather than a unit)  should also be  involved in  the evaluation and improvement of 
internal control mechanisms,  internal  rules  and  procedures  and  risk  assessment.  It  will  report  directly  to 
the  Director  General,  ~o  ensure  its  necessary  independence  and  authority  within  the  DG.  This  function 
will  undertake  an  independent  review  of the  use  made  of the  budget  by  the  DG,  and  undertake  systems, 
programme  and  performance  reviews,  and  ex-post  checks  on  activities  in  the  field.  The  annual 
programme of the function would be prepared in agreement with the Director General and take account of 
'requests  of  any  Unit,  or  Directorate,  involved  in  the  management  of  the  DG's  funds.  The  resulting 
programm~  will  be  communicated  to  the  Internal  Audit  Service,  with  a  view  to  avoiding  duplication. 
Finally, under the overall responsibility of the DG Budget, the  audit capability within DGs would also  be 
responsible for liaising with the Court of Auditors on matters of interest to the DG. 

Action 82 

Declaration by the Director General in her/his Annual Activity Report 

Each  Director  General  is  accountable  for  sound  and  efficient  resource  management  both  in  decision 
making  and through the follow  up  of decisions  taken,  i.e.  internal control.  This  responsibility  should be 

61 

expressed  in  a  declaration  by  each  Director  General  in  her/his  Annual  Activity  Report,  that  adequate 
internal controls have been put in place  and that, on the basis of the analysis made in  the report, resources 
have  been  used  for  the  intended  purposes.  The  DG's  annual  accounts  shall  be  included  in  the  Annual 
Activity Report. The Heads of Unit and Directors should take responsibility for their contributions to this 
report.  By  signing  the  annual  report,  the  Director  General takes  responsibility  for  the  accuracy  and 
completeness of the information presented, confirms, that the resources were used as intended and that the 
internal  control  procedures  in  place  give  adequate  assurance  as  to  the  legality  and  regularity  of the 
underlying transactions. These annual  activity reports should be  presented by the College to the  Council, 
the European Parliament and the Court of Auditors. 

Action 83 

· Adequate levels of staffing 

Directors General should only accept new  spending obligations if they are satisfied that there are adequate 
levels  of staffing,  in  qualitative  and  quantitative  terms,  to  manage  them.  In  line  with  Activity  Based 
Management  (ABM),  new  programmes  of financial  interventions  will  earmark  in  their  legal  base  the 
human and administrative resources needed for their proper monitoring and control, these resources being 
expressed as a percentage of the financial envelope for the programme. 

4. 

LEAD SERVIC~(S) 

Action 78 

Central  Financial  ·service  (CFS),  supported  by  the  Internal  Audit  Service,  OLAF,  the 
Planning and Co-ordination Group (PCG) on Financial Circuits and the TF AR. 

Action '79 

All DGs, with the assistance of the CFS, the PCG on Financial Circuits and the TF AR. 

Action 80 

All DGs, with the assistance of the CFS, the PCG on Financial Circuits and the TF AR. 

Action 81 

All DGs, with the assistance of the CFS and the TFAR. 

4.ction 82 

. All DGs. 

Action 83 

All DGs. 

S. 

TIMING 

Action 78 

June 2000 (draft proposal), September 2000 (Commission's decision). 

Action 79 

Throughout 2000. 

Action 80 

Throughout 2000. 

Action 81 

Throughout 2000. 

Action 82 

April 2001  for the first  Annual Activity Report. For the following  years, the optimal timing 
will be defined to ensure a proper use of that Report as  a reporting tool in  the  annual cycle 
of resources allocation. 

Action 83 

As of 2000. 

62 

Action with 
a financial  impact 

nP.-.:k 
officer 

Financial 
officer 

FIGURE III : THE FINANCIAL CIRCUIT 
.... 
....  Expenditure 

Authorisine; 
officer 

Double assessment 
(principle of segregation of duties) 

BASIC MODELS OF FINANCIAL CIRCUITS 
To be defined by the Director General. Criteria for choice: risk analysis and cost-effectiveness in the use of resources. One DG could have various financial circuits if it manages several types of expenditure. 

Model 1 : fuUy decentralised without« counter-weight» 
(Example:  direct management of a high number of projects) 

Director General 

Financial Unit 

Line manager = 
authorising officer 

Financial 
officer 

----+---- Desk 
officer 

Model 2: partially decentralised 
(Examples: public procurement procedures; direct 
management of a small number of projects; shared 
management) 

Director General 

Financial Unit 

Line manager = 
authorising officer 

Financial .....,.--------+-
officer  1 

I  officer 

Model 3: fully decentralised with« counter-weight» 
(Examples: sensitive transactions;  probatory period for the line manager) 

Director General 

Model 4 : centralised 
(Example: very small spending DGs) 

Director General 

Financial Unit 

<I 

1  •  Line manager= 
authorising officer 

Financial Unit= 
authorising officer 

cial 
officer 

Desk 
officer 

~~ 

Financial 
officer 

Desk 
officer 

CHAPTER V - AUDIT, FINANCIAL MANAGEMENT AND CONTROL 

XXVIIl-THE TRANSITION PHASE 

1. 

OBJECTIVE 

The  existing  legal  framework,  notably  the  current  Financial  Regulation,  requires  the  maintenance  of a 
centralised ex-ante visa and enshrines the role of the Financial Controller as being responsible for ex-ante 
financial  control  and  internal  audit.  As  a  result,  the  ex-ante  visa  as  carried  out  by the  Financial  Control 
DG  cannot  be  totally  abandoned  immediately  or  be  replaced  by  an  automatic  technical  visa  on  ·an 
transactions .. However,  the  recasting  of the  Financial  Regulation  is  no  obstacle  to  the  reinforcement  of 
departmental internal controls and the strengthening of internal audit's independence and professionalism. 

The  Commission  will  ensure  that  responsibilities  of  officials  during  the  transition  period  are  fully 
clarified and that ex-ante control - whether centralised or decentralised - operates swiftly and effectively. 
To this  end,  the  implementation  process  has  been  designed  so  as  to  guarantee  that  any  change  will  be 
preceded by the provision of the necessary means and tools to allow  a  safe implementation (see overview 
of the  implementation  process  annexed to  this  fiche): 
the  charter of responsibilities  of financial  actors 
(Action 63) will specify their financial liability; operational DQs' financial departments will be reinforced 
by the redeployment of financial  controllers (Action  86); assistance will  be  given to operational DGs for 
setting  up  their  action  plan  to  ~omply  with  the  minimum  standards  for  internal  control  (Action  85); 
simplified  and  consolidated  rules  and  procedures  wiU  be  produced  (Action  75);  all  staff dealing  with 
financial  matters  will  be  thoroughly  trained  (Action  91);  progress  in  the  process  of  change  will  be 
reviewed (Action 87); Directors General will declare whether they have put in place the adequate internal 
controls  (Action  82).  This  implementation  process  should  make,  by  mid-2001,  the  Commission's 
financial  and control systems effective and reliable enough to be ready to operate without centralised ex 
ante  visa.  However,  ,  if some  spending  departments  do  not  reachthe  high  standards  pursued  by  this 
reform  by  the  time  the  New  Financial  regulation  enters  into  force,  then  the  ex-ante  visa  on  their 
transactio!ls will be maintained until they have done so. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 84 

Review and assessment of curr(!!nt internal controls and financial processes 

Each  DG  will  describe  in  writing,  according  to  a  format  defined  by  DG  Budget,  its  current  internal 
controls  and  financial  processes.  It  will  also  undertake  a  control  self-assessment  of the  adequacy  of the 
systems  in  place.  The  current  state  of play  of the  financial  management  and  control  practices  in  the 
Commission will  be assessed against the draft proposal for minimum standards (see Action 78). The state 
of play will be taken into account in the finalisation of the minimum standards. 

Action 85 

Design of adequate internal controls and financial processes 

Taking into account the results of the assessment of current systems, each DG will design a  basic control 
model (in conformity with Figure Ill)  to put in place adequate  internal controls  . DGs will  also  design  a 
plan to  provide their staff with the necessary means and training to perform sound financial  management. 

Action 86 

Decentralisation 

The ex-ante visa will be carried out by delegated financial controllers in  operational DGs reporting to the 
Financial  Controller of the  Commission.  A  central  unit  in  the  Financial  Control DG will  ensure  the  co 
ordination and assistance to delegated financial controllers. The redeployment of financial controllers will 
be made according to the needs of operational DGs. 

64 

Action 87 

Review of progress made by Commission's services in the change process 

The  Internal  Audit  Service  will  review  the  improvement  and  reinforcing  of the  DG's  internal  control 
systems.  Formal statements on the  progress made  by services will  be  provided (but no  formal  opinion on 
the  quality  of the  services'  inte~al  control  systems).  These  statements  will  be  used  for  DG's  Annual 
Activity Reports for 2000. The Internal Audit Service will advise the College through the Audit Progress 
Committee on the Annual Activity Reports from the  operational and  horizontal DGs  for  2000.  It  is  to  be 
expected that  from  April  2001  to December 2002,  the  Internal  Audit  Service  will  carry  out  a  complete 
cycle of in-depth audits of management and control systems in all DGs. 

Action 88 

Financial Control DG and Inspectorate General of Services 

Once  the  Financial Regulation  frees  the _Financial  Control  function  from  delivering  an  ex-ante  visa,  the 
Financial  Control  service  will  cease  to  exist. 
Its  current  tasks,  other  than  the  ex-ante  visa,  will  .be 
progressively decentralised in  parallel  with the  implementation process:  internal  audit  transferred  to  the 
Internal  Audit  Service  in  May  2000,  training  and  co-ordination  of  co-operation  protocols  on 
administrative agreements with Member States transferred to the Central Financial Service in  May 2000, 
ex-post  verifications  and  system audits  in  Member States transferred  to  operational  DGs  in  July-August 
2000.  As  to the IGS, it  will cease to  exist  in  May 2000 following  the  incorporation of its  activities  into 

· the Internal Audit Service. 

Action 89 

Consultation of ACPC 

Pending the recast of the Financial Regulation, the Commission will adopt new  implementing rules under 
the  current  Financial  Regulation  for  the  compulsory  consultation  of  the  Advisory  Committee  on 
Procurement and Contracts (ACPC).  Higher thresholds will  be  foreseen without preventing services from 
consulting the ACPC on a voluntary basis for any procurement under the thresholds. 

3. 

LEAD SERVICE(S) 

Action 84 

Action 85 

All  DGs,  supported  by  the  Central  Financial  Service  (provide  common  format),  the 
Planning and Consultation Group (PCG) on Financial Circuits and the TF AR. 

All  DGs,  supported  by  the  Central Financial  Service,  the  PCG  on  Financial  Circuits  and 
theTFAR. 

Action 86 

DG Budget, TFAR, DG Administration. 

Action 87 

Internal Audit Service. 

Action 88 

DG Administration. 

Action 89 

DG Budget. 

4. 

TIMING 

Action 84 

April 2000 (description of current systems); June-September 2000 (self-assessment). 

Action 85 

September  2000  (definition  of control  model),  September-December  2000  (changes  in 
organisation charts), June 2001  (compliance with all  minimum standards). 

Action 86 

July-August 2000. 

Action 87 

Octµber 2000 - March 2001. 

Action 88 

April 2000 (Commission's decision on the abolition of the IGS).  Commission Decision on 
the abolition of the Financial Control DG once the new financial regulations adopted. 

Action 89 

June 2000 (Commission's decision on new implementing rules). 

65 

FIGURE IV:  OVERVIEW OF THE IMPLEMENTATION PROCESS 
FOR STRENGTHENING FINANCIAL MANAGEMENT AND CONTROL CAPACITY WITHIN DGs 

" 

Description of current systems 

Self-assessipent of internal control systems 

Design of control system 

'--

' 

•··; 

.... '. 

. 

' 

Set up Internal Audit Service 

Set up Central Financial Service 

Charter of responsibilities of financial actors (CFS) 

Action and amstance by borlzontai. services 

. 

. 

I Compliance with 

minimum standards 

.,., . 

. 

! 

I 

.· 

Minimum standards for  internal control 

Operational manuals on simplified and consolidated rules and procedures 

I 

I 

Human resources 

Review of progress 
in the change process (IAS) 

. 

Assessment of HR needs of DGs (all  DGs) 

I Additional posts 

Training of staff dealing with ftnancial management 

Principles and  concepts of the new financial  system 

Redeployment of financial 
controllers to operational DGs 

Financial 
management 
( operational staff) 
P.M.  An  assessment of the Commission's global  Human Resources needs will  be carried out in the period March-September 2000 

Value for money (management) 

66 

, 

CHAPTER V - AUDIT, FINANCIAL MANAGEMENT AND CONTROL 

XXIX - HUMAN RESOURCES.AND TRAINING 

1. 

OBJECTIVE 

A fundamental element for the robustness of the new Commission's audit,  financial  and control system is 
to ensure  that  financial  operations  are· run  by  highly  competent  staff.  Any  shortage  in  human  resources, 
skills  or  expertise  will  seriously  undermine  the  reliability  of  the  system.  Moreover,  given  ihe 
sensitiveness of financial  matters, this  would give  staff an  incentive to  apply  for  functions  not  involving 
financial  responsibilities  as  a  result  of  which  the  shortage  would  widen.  Financial  management  and 
control  will,  therefore,  be  a  priority  in  the  global  assessment  of  the  human  resources  needs  of  the 
Commission. 

Training  is  equally  crucial.  Firstly,  all  staff  will  follow  awareness  sessions  on  the  principles  of  the 
financial reform in  order to  develop a common understanding of the  concepts and  vocabulary  underlying 
the new  audit, financial  management and control system of the Commission. Then, thorough training  will 
be  provided  to  operational  staff on  budgetary  and  financial  matters,  while  managers  will  be  trained  on 
how to  obtain the  maximum value for  money from spending programmes.  Training  modules will  have  to 
be .customised to the services' daily work and make ext.ensive use of case studies. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 90 

Assessment of human resources needs for financial management and control 

An  overall  assessment  of the  needs  for  human  resources  in  the  financial  management  field  will  be  made 
in parallel with the description of current financial  circuits (see Action 84). This assessment will take into 
account the quantitative needs as  well as the needs in terms of skills and expertise. Guidance will  be given 
by  DG  Budget  to  operational  DGs  in  order  to  draw  up  comparable  justifications  of the  needs. and  to 
envisage  alternative  ways  of  implementation  for  significantly  human  resources  consuming  spending 
activities.  The  assessment  will  also  seek  to  identify  benchmarks  in  the  use  of resources  for  financial 
management and control across the Commission. 

The  human  resources  needs  will  be  met  progressively  by  means  of redeployment  of the  current  DG 
Audit's  staff  (see  Action  86),  allocation  of part·  of the  200  posts  that  will  be  made  available  at  the 
beginning of May 2000 for t.he  implementation of the reform,  retraining of staff and,  if needed,  by a letter 
of amendment to the PDB 2001  and/or specialised competitions. 

Action 91 

Training 

A)  Training on the principles of the new Commission's financial system 

The  principles  of the  reform  (e.g.  responsibility,  a  culture  of accountability,  internal  control,  financial 
organisation of DGs,  etc.)  will  be  explained to  all  staff in  order to  build, up  a common  understanding  of 
concepts  and  vocabulary.  This  training  will  be  supported  by  a  practical  manual  comprising  concrete 
examples  of  the  application  of  these  principles  in  services'  daily  work.  Staff  performing  financial 
management  and/or control tasks  (following the  definition  of financial  management,  see  Action  63)  will 
be  trained  before  July  2000  and  it  will  be  made  sure  that  they  have  acquired  the  basic  principles.  The 
training will be delivered to the rest of staff afterwards. 

B)  Training on  "value for money" 

67 

Managers  of spending  programmes  will  be  trained  on  the  strategic  aspects  of the  management  of  a 
programme  in  order  to  maximise  the  "value  for  money":  objectives,  means  to  reach  the  targeted 
population,  who  applies  and  why,  assessment  of strengths  and  weaknesses,  feed-back  from  the  various 
constituencies,  diffusion of results,  etc.  The  design  of the  training  modules  will  require  external  support 
but a strong emphasis will  be  put on the  set  up of a completely customised product. The training  will be 
followed by a visit to an  international organisation - public or private - to exchange experiences. Trainees 
will  be  asked  to  apply  the  know ledge  acquired  by  producing  a  synthetic  strategic  assessment  of their 
programmes to be presented to Commission's political and budgetary decision-makers. 

C)  Training on budgetary and financial management 

All staff  performing  financial  management  and/or  control  tasks  will  be  thoroughly  trained  on  sound 
financial  management, ·commission's financial  rules  and  procedures, establishment  and  execution  of the 
budget,  internal  control  systems,  contract  management,  p10nttoring  and  control  of actions,  evaluation, 
information  systems,  anti-fraud  methods,  etc.  The rest  of staff will  follow  a compulsory training  to  raise 
their  awareness  on  financial  and  budgetary  matters.  Training  will  be  supported  by  operational  manuals 
(see Action 75) and case studies. 

3. 

LEAD SERVICE (S) 

Action 90 

DG Budget, TFAR, supported by the Planning and Consultation Group (PCG) on Financial 
Circuits . 

. Action 91 

A) 

DG Budget, TFAR, supported by the PCG on Financial Circuits (practical manual for 
training); 

DG Budget, TFAR (financial management and control staff); 

DG Budget, DG Administration (rest of the staff): 

B) 

C) 

DG Budget, DG Administration, TFAR, supported by the PCG on Financial Circuits. 

DG Budget, DG Administration, OLAF, TFAR, supported by the PCG on Financial 
Circuits.  · 

4. 

TIMING 

Action 90 

Action 91 

A) 

B) 

C) 

June 2000 (at the level of operational DGs), September 2000 (at the level of the 
Commission). 

April-July 2000 (financial management and control staff); 

September 2000 - July 2001  (rest of the staff). 

September-November 2000 (training); 

April-June 2001  (synthetic strategic assessment). 

January-June 2001  (financial management and control staff); 

September 2001  - July 2002 (rest of the staff). 

68 

CHAPTER V - AUDIT, FINANCIAL MANAGEMENT AND CONTROL 

XXX - PROTECTING THE COMMUNITY'S FINANCIAL INTERESTS 

1. 

OBJECTIVE 

The Reform needs to address the  issue of how  the  irregularity and  fraud  "proofing" of legislation  and  of 
financial  management  rules  and  procedures  can  be  maximised.  Co-operation  between  the  Commission 
services  and  between  the  Commission  and  Member States  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. 

2. 

NEW ACTION TO BE IMPLEMENTED 

Action 92 

Guidelines for sound project management 

To  contribute  to  a  proper  business  conduct  of officials  throughout  the  life  cycle  of programmes  and 
projects,  from the  conceptual level to the  evaluation  of final  results,  guidelines  will  ~ put  in  place.  The 
aim  will  be  to  prevent  an  administrative  behaviour detrimental  to  the  Communities'  political,  legal  and 
financial  interests  by  raising  awareness  on  the  part  of officials  and  beneficiaries  to  forms  of conduct 
which  in  certain  phases of the  life  cycle of programmes  and  projects  might  lead  to  unintentional  errors, 
conflicts of interest and irregularities. 

Action 93 

Better co-ordination of interaction between OLAF and other services 

Notwithstanding  the  legal  framework  for  the  creation  of  OLAF,  a  more  effective  fight  against 
irregularities,  fraud  and corruption requires  the  improvement  of co-ordination  and co-operation  between 
OLAF,  the  new  Internal  Audit  Service  and  DG  Budget  as  well  as,  in  certain  cases,  the  Financial 
Irregularities Committee and DG ADMIN.  A more practical  agreement  will  be elaborated to promote an 
efficient and timely exchange of information. This must lead to a more efficient use of available resources 
and  a  more  rapid  finalisation  of investigation  and  special  audit  reports,  at  the  same  time  improving  the 
irrefutability of results.  OLAF will  keep  those  DGs,  which  are  directly  concerned  by  its  administrative 
investigations, regularly informed about progress. 

Action 94 

Fraud  "proofing" of legislation and contract management 

To  render  the  p~esent  system  of fraud-proofing  more  effective,  Commission  services  will  be  required, 
when  proposing  new  legislation  with  a  potential  impact  on  the  Community  budget,  to  submit  draft 
proposals  to  OLAF for  a risk assessment  during  inter-service  consultations.  DG  Budget  will  be  assisted 
by  OLAF in  the  review  of the  Commission's systems  for  contract  management  ( e.g.  standard  contracts, 
central  contracts  database,  management  tools).  OLAF  will  also  provide  advice  on  fraud-proofing 
throughout the legislative process. 

Action 95 

Optimisation of Early Warning  System 

The  establishment  of a central  database  for  all  contracts  and  grants  (refer  to  Action  74)  will  permit  the 
monitoring  of funds  granted  to  beneficiaries.  While  the  setting  up  of the  database  will  take  time,  the 
functioning of the existing Early Warning System (EWS) will  be optimised through a mechanism making 
the  consultation  of the  EWS  compulsory  before  entering  any  commitments  in  the  accounting ·system  as 
well as through a better definition of the responsibilities of the  involved services,  greater involvement  of 
authorising services, and effective monitoring regarding identifiable links of signalled entities to the same 
or any other authorising department in the Commission. 

Action 96  More effective management of recovery of unduly paid funds 

69 

' 

To improve efficiency and effectiveness of the follow-up to and the  legal eriforcement of recovery orders 
the  definition  of responsibilities,  which  are  now  dispersed  between  DG  Budget,  the  Financial  Control 
DG, the Legal Service and - in the case of irregularities or fraud - OLAF, needs to be reviewed.  To deal 
for the Commission as a whole with all issues related to the recovery of unduly paid funds,  an adequately 
staffed central organisational structure will  be set up  by July 2000.  Dispute settlement procedures will  be 
clarified and simplified in  order to help in the recovery process.  In this context the existing arrangements 
for the recovery of own resources will be reviewed as well. 

/ 

Action 97 

Improved monitoring of Structural Funds 

The Member States should  make  available  detailed  information  on project  progress  and on payments  to 
final  beneficiaries,  together  with  a  set  of information  on  financial  corrections,  project  substitution  and 
additionality,  so  as to allow  better monitoring of actions.  The Commission will reinforce its  audits of the 
information submitted by the Member States, as well as its audits of the effectiveness of their procedures. 
Financial corrections enforced through compensation mechanisms will  be applied if a Member State fails 
to introduce sufficient controls or provide adequate information. 

Action 98 

Improved clearance procedure for EAGGF 

A  statistical  review  of the  length  of the  various  steps  of the  clearance  procedure  since  1996  will  be 
produced and improvements will be proposed. 

3. 

LEAD SERVICE(S) 

Action 92 

DG Budget, SG, Legal Service 

Action 93 

OLAF, Internal Audit Service, DG Budget, DG ADMIN 

Action 94 

All DGs, OLAF, DG Budget 

Action 95 

DG  Budget,. Internal  Audit  Service,  Legal  Service  and  OLAF,  supported  by  PCG  on 
Financial Circuits 

Action 96 

DG Budget, OLAF, Legal Service, DG AGRI 

Action 97 

DGREGIO 

Action 98 

DGAGRI 

4. 

TIMING 

Action 92 

December 2000 

Action 93 

December 2000 

Action 94 

From May 2000 onwards 

Action 95 

July 2000 

Action 96 

July 2000 

Action 97 

December 2000 

Action 98 

June 2000 

70 

j: 

I 

ISSN  0254-1475 

COM(2000) 200  final 

Vol. II 

DOCUMENTS 

EN 

01  06  04  17 

Catalogue number: KT-CO-00-114-EN-C 

Office for Official Publications of the European Communities 

L-2985 Luxembourg