Proposal for a Council Decision concerning the Community position within the Association Council on the participation of Hungary in the «Youth» Community action programme
Date: 2000-04-26
Institutions: European Commission
Subjects: Association Council (EU), EU programme, Hungary, project evaluation, young person

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 26.04.2000
COM(2000) 240 final

2000/0100 (ACC)

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Hungary in the “Youth” Community action programme

(presented by the Commission)

EXPLANATORY MEMORANDUM

The Helsinki European Council of December 1999 confirmed the enlargement process
launched at its meeting of December 1997 in Luxembourg. The enhanced Pre-Accession
Strategy defined in 1997 has been reiterated, which includes the participation of the 13
candidate States in Community programmes as an important part of such strategy.

As regards the ten candidate countries of Central and Eastern Europe (CEECs), participation
in Community programmes is provided in their respective Europe Agreements. Pursuant to
the Europe Agreements, the conditions and modalities of these countries’ participation are
defined by the respective Association Councils.

In the case of the education, training and youth programmes, all the CEECs have been
participating in 1999 in the first phase of the Leonardo da Vinci and of the Socrates
programmes, and in the Youth for Europe programme. For some of them, participation in
these programmes started already in 1997, others joined the programmes in 1998 and others
in 1999. Their participation in these programmes has been an important element in these
countries’ pre-accession process. The Association Council decisions setting out
the
arrangements for this participation expired on 31 December 1999, as did the decisions
establishing the programmes themselves.

The second phase of Leonardo da Vinci, the second phase of Socrates, and a new Youth
programme, are succeeding the previous programmes. The decisions establishing the second
phase of Leonardo da Vinci and of Socrates provide that the programmes shall be open to the
participation of the CEECs. A similar provision is included in the draft decision of the
European Parliament and of the Council establishing the Community action programme
Youth, which is in the process of adoption.

All the CEECs have confirmed their willingness to participate in the new programmes as from
2000, and to pay their financial contribution partly from their national budget, and partly from
their annual Phare allocation. As provided in the conclusions of the meeting of the European
Council in Luxembourg of 12 and 13 December 1997, these countries’ financial contributions
of their own are steadily increasing.

Because of the transnational nature of these programmes, it is in the interests of all parties
that the activities undertaken within the first generation of programmes could continue within
the successor programmes without any interruption.

So as to allow the CEECs to participate in these new programmes since their beginning, the
Commission has tabled a proposal for the adoption of two decisions of each Association
Council, one for the two programmes already in force, Leonardo da Vinci II and Socrates,
and one for the Youth programme. So the proposed decisions concerning Leonardo da Vinci II
and Socrates II could be adopted first, and the proposed decisions concerning Youth could be
adopted as soon as the decision establishing the programme will enter into force.

The main issues addressed in the proposed draft Decisions of the Association Councils are the
following :

2

• projects and initiatives submitted by participants from the CEECs shall be subject to the
same conditions, rules and procedures pertaining to these programmes as are applied to
Member States, regarding in particular the submission, assessment, and selection of
applications and projects,
in the
implementation of the programmes, and the activities related to the monitoring of their
participation in the programmes ;

the responsibilities of

the national

structures

• the CEECs will pay each year a contribution to the programmes, as established in the
Association Council decisions. This contribution will not be reimbursed to the CEEC if, at
the end of the year, the results fall short of the contribution paid ;

• as provided in the conclusions of the meeting of the European Council in Luxembourg, the
CEECs will be invited to attend the Programme Committees as observers, for the points
which concern them ;

• the decisions will apply for the duration of the programmes and will enter into force the

day of their adoption.

The early adoption of Association Council decisions would allow the candidate countries to
continue being
integrated in Community networks and other activities in the fields of
education, vocational training and youth without any interruption.

Accordingly, the Council is invited to adopt the annexed proposal for a Council Decision
concerning the Community position within the Association Council on the participation of
Hungary in the “Youth” Community action programme.

3

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Hungary in the “Youth” Community action programme

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles
149, in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Additional Protocol to the Europe Agreement establishing an association between
the European Communities and their Member States, of the one part, and the Republic
of Hungary, of the other part, has been concluded by decision of the Council and the
Commission of 4 December 1995 ;

According to Article 1 of the Additional Protocol, Hungary may participate in
Community framework programmes, specific programmes, projects or other actions
notably in the field of youth and, pursuant to Article 2, the terms and conditions for the
participation of Hungary in these activities shall be decided by the Association
Council ;

Following the Decision 1/97 of 4 August 1997 of the Association Council between the
European Communities and their Member States, of the one part, and the Republic of
Hungary, of the other part1, Hungary has been participating in the Youth for Europe
programme since 1 September 1997 ;

Decision (…/2000/EC) of … 2000 of the European Parliament and the Council
establishing the “Youth” Community action programme2, and in particular Article 11
thereof, provide that this programme shall be open to the participation of associated
Central and Eastern European countries in accordance with the conditions set out in
the Europe Agreements, in their additional protocols and in the decisions of the
respective Association Councils,

HAS DECIDED AS FOLLOWS:

1

2

OJ L 260, 23.9.1997, p. 23.
OJ L …, ….2000, p.. [ agreement reached by the Conciliation Committee on 29 February 2000]

4

Sole Article

The position to be taken by the Community within the Association Council established by the
Europe Agreement between the European Communities and their Member States, of the one
part, and the Republic of Hungary, of the other part, concerning the participation of Hungary
in the “Youth” Community action programme,
is the attached draft decision of the
Association Council.

Done at Brussels,

For the Council
The President

5

Draft

DECISION N° …/ 2000 OF THE ASSOCIATION COUNCIL

between the European Communities and their Member States, of the one part, and the
Republic of Hungary, of the other part

of .....

adopting the terms and conditions for the participation of the Republic of Hungary in
the “Youth” Community action programme

THE ASSOCIATION COUNCIL

Having regard to the Additional Protocol to the Europe Agreement between the European
Communities and their Member States, of the one part, and the Republic of Hungary, of the
other part, concerning Hungary’s participation in Community programmes, and in particular
Articles 1 and 2 thereof3;

Whereas :

(1)

(2)

(3)

According to Article 1 of the Additional Protocol, Hungary may participate in
Community framework programmes, specific programmes, projects or other actions
notably in the field of youth ;

According to Article 2 of the Additional Protocol, the terms and conditions for the
participation of Hungary in these activities shall be decided by the Association
Council ;

Following the Decision 1/97 of 4 August 1997 of the Association Council between the
European Communities and their Member States, of the one part, and the Republic of
Hungary, of the other part4, Hungary has been participating in the Youth for Europe
programme since 1 September 1997, and has expressed the wish to participate in the
new Youth programme.

HAS DECIDED AS FOLLOWS:

Article 1

Hungary shall participate in the “Youth” Community action programme (hereinafter called
Youth) according to the terms and conditions set out in Annexes I and II which shall form an
integral part of this Decision.

3

4

OJ L 317, 30.12.1995, p. 30.
OJ L 260, 23.9.1997, p. 23.

6

This Decision shall apply for the duration of the Youth programme, starting from 1 January
2000.

Article 2

Article 3

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

Done at Brussels,

For the Association Council
The President

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ANNEX I

Terms and conditions for the participation of the Republic of Hungary
in the Youth programme

1. Hungary will participate in the activities of the Youth programme (hereinafter called “the
Programme”)
in conformity, unless otherwise provided in this Decision, with the
objectives, criteria, procedures and deadlines as defined in Decision (…/2000/EC) of …
2000 of the European Parliament and of the Council establishing this Community action
programme.

2. In conformity with the terms of Article 5 of the Decision establishing the Youth
programme and with the provisions relating to the responsibilities of the Member States
and of
the Commission concerning theYouth National Agencies adopted by the
Commission, Hungary shall establish the appropriate structure for the coordinated
management of the implementation of the programme actions at national level, and take
the measures needed to ensure the adequate funding of this Agency, which will receive
programme grants for its activities. Hungary will take all other necessary steps for the
efficient running of the Programme at national level.

3. To participate in the Programme, Hungary will pay each year a contribution to the general

budget of the European Union according to the modalities described in Annex II.

If necessary in order to take into account programme developments, or the evolution of
Hungary’s
this
contribution, so as to avoid budgetary imbalance in the implementation of the programmes.

the Association Committee is entitled to adapt

absorption capacity,

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

Hungarian experts may be taken into consideration by the Commission when appointing
independent experts according to the relevant provisions of the decision establishing the
programme to assist it in the project evaluation.

5. With a view to ensure the Community dimension of the Programme, to be eligible for
Community financial support, projects and activities will have to include at least a partner
from one of the Member States of the Community.

6. For the actions to be managed on a decentralised basis, as well as for financial support to
the activities of the National Agency set up in accordance with point 2 above, funds will be
allocated to Hungary on the basis of the annual programme budget breakdown decided at
Community level and the Hungary’s contribution to the programme.The maximal amount
of financial support to the activities of the National Agency will not exceed 50 % of the
budget for the National Agency’s work programme .

7. The Member States of the Community and Hungary will make every effort, within the
framework of existing provisions, to facilitate the free movement and residence of young
people and other eligible persons moving between Hungary and the Member States of the
Community for the purpose of participating in activities covered by this Decision.

8

8. Activities covered by this Decision shall be exempt from imposition by Hungary of
indirect taxes, customs duties, prohibitions and restrictions on imports and exports in
respect of goods and services intended for use under such activities.

9. Without prejudice to the responsibilities of the Commission of the European Communities
and the Court of Auditors of the European Communities in relation to the monitoring and
evaluation of the programme pursuant to Article 13 of the decision establishing it, the
participation of Hungary in the programme will be continuously monitored on a
partnership basis involving the Commission of the European Communities and Hungary.
Hungary will submit to the Commission relevant reports and take part in other specific
activities set out by the Community in that context.

10.In conformity with the Community’s Financial Regulations, contractual arrangements
concluded with, or by, entities of Hungary shall provide for controls and audits to be
carried out by, or under the authority of, the Commission and the Court of Auditors. As far
as financial audits are concerned, they may be carried out with the purpose of controlling
such entities’ income and expenditures, related to the contractual obligations towards the
Community. In a spirit of cooperation and mutual interest, the relevant authorities of
Hungary shall provide any reasonable and feasible assistance as may be necessary or
helpful under the circumstances to perform such controls and audits.

The provisions relating to the responsibilities of the Member States and of the Commission
concerning the Youth National Agencies adopted by the Commission will apply to the
relations between Hungary, the Commission and the Hungarian National Agency. In the
event of irregularity, negligence or fraud imputable to the Hungarian National Agency, the
Hungarian authorities shall be responsible for the funds not recovered.

11.Without prejudice to the procedures referred to in Article 8 of the Decision establishing the
Youth programme,
representatives of Hungary will participate as observers in the
Programme Committee, for the points which concern them. This committee shall meet
without the presence of representatives of Hungary for the rest of the points, as well as, at
the time of voting.

12.The language to be used in all sorts of contacts with the Commission, as regards the
to be submitted and other administrative
application process, contracts,
arrangements for the programmes, will be one of the official languages of the Community.

reports

13.The Community and Hungary may terminate activities under this Decision at any time
upon twelve months’ notice in writing. Projects and activities in progress at the time of
termination shall continue until their completion under the conditions laid down in this
Decision.

9

ANNEX II

Financial contribution of the Republic of Hungary
to the Youth programme

1. The financial contribution to be paid by Hungary to the budget of the European Union to

participate in the Youth programme in 2000 will be 1 539 000

€

.

The contribution to be paid by Hungary for the following years of the programme will be
decided by the Association Council in the course of the year 2000.

2. Hungary will pay the contribution mentioned above, partly from the Hungarian national
budget, and partly from Hungary’s PHARE National Programme. Subject to a PHARE
separate programming procedure, the requested PHARE funds will be transferred to
Hungary by means of a separate Financing Memorandum. Together with the part coming
from Hungary’s State budget, these funds will constitute Hungary’s national contribution,
out of which it will make payments in response to annual calls for funds from the
Commission.

3. PHARE funds will be requested according to the following schedule :

€

- 760 000

for the contribution to the Youth programme in 2000 ;

The remaining part of the contribution of Hungary will be covered from the Hungarian
State budget.

4. The financial regulation applicable to the general budget of the European Union will apply,

notably to the management of the contribution of Hungary.

Travel costs and subsistence costs incurred by representatives and experts of Hungary for
the purposes of taking part as observers in the work of the committee referred to in Annex
I, Point 11 or other meetings related to the implementation of the Programme shall be
reimbursed by the Commission on the same basis as and in accordance with the
procedures currently in force for nongovernmental experts of the Member States of the
European Union.

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

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

Hungary will pay its contribution according to the call for funds :

- by 1 May for the part financed from its national budget, provided that the call for funds is
sent by the Commission before 1 April, or at the latest one month after the call for funds is
sent if later ;

- by 1 May for the part financed from PHARE, provided that the corresponding amounts
have been sent to Hungary by this time, or at the latest in a period of 30 days after these
funds have been sent to Hungary.

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Any delay in the payment of the contribution shall give rise to the payment of interest by
Hungary on the outstanding amount from the due date. The interest rate corresponds to the
rate applied by the European Central Bank, on the due date, for its operations in EURO,
increased by 1.5 percentage points.

11

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Participation of Hungary in the Youth programme

2.

BUDGET HEADING INVOLVED

B7-030 Economic aid to the associated countries of Central and Eastern Europe
6091 Revenue accruing from the participation of the associated countries of central
Europe in Community programmes

3.

LEGAL BASIS

Treaty establishing the European Community, and in particular Articles 149, in
conjunction with Article 300(2) thereof ;

the Additional Protocol to the Europe Agreement with Hungary, providing for the
participation in Community programmes ;

Decision of the European Parliament and of the Council (…/2000/EC) of … 2000
establishing the Youth programme, and in particular Article 11 thereof.

4.

4.1

DESCRIPTION OF OPERATION

General objective

The Additional Protocol to the Europe Agreement with Hungary provides for
Hungary’s participation in Community programmes in a wide range of areas, among
which youth.

the
Its participation will not only contribute towards the implementation of
provisions relating to economic and cultural cooperation in the Europe Agreement,
but will also enable Hungary to familiarise itself with the procedures and methods
used in Community programmes.

Hungary has been participating in the Youth for Europe programme since 1
September 1997. In line with the Commission communication “Agenda 2000” of
16.7.1997 and of the conclusions of the European Council in Luxemburg, Hungary’s
participation in this programme has been part of the reinforced preaccession strategy
which assist this country in its preparation for future accession to the Union.

The decision-making process for the opening-up of programmes involves a decision
by the Association Council between the Union and Hungary. The decision of the
Association Council of 4 August 1997 establishing the participation of Hungary in
this programme has expired on 31 December 1999.

This new draft Association Council Decision aims at allowing the Hungarian
participation to be carried on and to ensure continuity between the new Youth

12

programme and its predecessor. Like the first one, it lays down conditions, notably as
for
concerns Hungary’s
participating in the programme.

financial contribution,

and practical

arrangements

4.2

Period covered and arrangements for renewal

Until the end of the Community programme concerned, i.e. 31.12.2006.

5.

5.1

5.2

5.3

CLASSIFICATION OF EXPENDITURE OR REVENUE

Non-compulsory expenditure

Differentiated appropriations

Type of revenue involved

Since Article 3 of the Additional Protocol to the Europe Agreement stipulates that
Hungary itself will meet the costs resulting from its participation, it will be invited to
pay a contribution for participating in the programme. As the same article states that
the Community may supplement Hungary’s contribution, Hungary will contribute
only part from its national budget. The remaining part of its contribution will be
taken from its PHARE National Programme. The required PHARE funds will be
charged to heading B7-030, and transferred to Hungary by means of a separate
Financing Memorandum. Together with the part coming from Hungary’s State
budget, these funds will constitute Hungary’s national contribution, out of which it
will make payments in response to annual calls for funds from the Commission. The
total contribution, once paid by Hungary, will be transferred to item 6091 of the
EU’s budget receipts.

6.

TYPE OF EXPENDITURE OR REVENUE

– 100% subsidy

– Subsidy for joint financing with other sources in the public and/or private sector

– No provision for all or part of the Community contribution to be reimbursed

– As far as revenue is concerned, provision for Hungary’s contribution to cover the
cost of its participation is made under item 6091. The revenue will be allocated to
the items for expenditure on the programme in question and, where appropriate, to
the relevant items of operating expenditure. The total revenue expected is given
under item 7.4.

7.

7.1

FINANCIAL IMPACT

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

Based on the Additional Protocol to the Europe Agreement with Hungary,
the
financial and budgetary arrangements for the programme concerned are as follows:
the Hungary’s contribution takes into account two elements :

13

- the foreseeable operational costs, which have been calculated on the basis of the
programme’s budget (the draft preliminary budget for Youth for 2000), the country’s
estimated take-up capacity, and previous experience of its participation in the Youth
for Europe programme,

- the foreseeable administrative costs, corresponding to the meetings and missions.
These estimated administrative costs amount yearly to 19 000

€

.

Hungary will use part of its national PHARE annual programme as a complement to
its state budget to finance its contribution to the operational costs.

7.2

Itemised breakdown of cost

€

1 539 000
budget, and 760 000 from Phare.

for 2000, of which 779 000 will be financed from the Hungarian national

7.3

Operational expenditure for studies, experts etc. included in Part B of the
budget

p.m : up to a maximum in proportion to the appropriations of that kind in the EUR 15
allocations for the Youth programme, but within the limits allowed by the part of the
contribution which comes from the country's national budget

7.4

Schedule of commitment and payment appropriations

Amounts to be charged to item B7-030

€

760 000

in 2000 in commitment appropriations and in payment appropriations.

The foreseeable annual receipts are as follows:

€

1 539 000
the administrative costs

in 2000, of which 1 520 000

€

for the operational costs, and 19 000 for

8.

FRAUD PREVENTION MEASURES

All the Commission’s contracts, agreements and other legal commitments provide
for on-the-spot checks by the Commission and Court of Auditors. Among other
things, the beneficiaries of the operations are obliged to file reports and financial
statements. These are analysed from the point of view of their content and the
eligibility of the expenditure in line with the objective of Community financing.

The anti-fraud provisions of the basic budget headings apply to this heading too
when adapted to the case of the countries of Central Europe.

9.

9.1

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Specific and quantified objectives; target population

The aim of opening up the Youth programme to Hungary is to bring about similar
benefits as for Member States of the Community. The essential aim of Community
action on youth is to enable all European citizens to achieve their full potential and to

14

display initiative and creativity so that they can participate fully in society and in the
building of Europe. This objective is based on the gradual establishment of an open
European area for youth.

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

–

–

–

–

–

–

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

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

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

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

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

of experience and joint

aim at reinforce the sense of solidarity, promoting the active participation and
integration in the society of young people and stimulating the acquisition of
new skills and competencies by young people through an informal learning
experience by means of participating to transnational European Voluntary
Service activities for the benefit of local communities .

9.2

Grounds for the operation

– Need for Community financial aid

In view of the high cost of participation in the programme and Hungary’s
precarious budgetary situation, assistance from PHARE is essential.

– Choice of ways and means

With a contribution from the national budget, supplemented by one from PHARE,
Hungary’s integration in the programme will allow its citizens to cooperate with
their counterparts in the current EU Member States. The integration of Hungarian
nationals in Community networks will make a definite contribution to preparing
Hungary for future membership

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

15

Since projects will be selected according to qualitative criteria, it will only be
possible to measure the real impact on the basis of Hungarian organisations’
capacity to respond to the calls for proposal launched by the Commission under
the programme.

9.3

Monitoring and evaluation of the operation

The monitoring and evaluation procedures included in the Youth programme
(notably in respect of evaluation, as included in the decision establishing the
programme) will also cover operations financed for Hungarian beneficiaries.

10.

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

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

10.1

Effect on the number of posts

Type of post

Staff to be assigned to managing
the operation

Source

Duration

Permanent
posts

Temporary
posts

A
B
C

Officials or
temporary staff

Other resources

Total

1

1

Additional
resources

2000-2006

Existing
resources in
the DG or
department
concerned

1

1

10.2

Overall financial impact of the human resources

Amounts

Method of calculation (total cost for the period 2000-2006)

EUR

Officials (*)

756 000

1 man x 7 years x 108 000

Temporary staff

Other resources

Total

756 000

(*) By using existing resources required to manage the operation (Calculation based on titles
A1, A2, A4, A5 and A7)

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10.3

Increase in other administrative expenditure as a result of the operation

EUR

Budget heading

Amounts

Method of calculation (yearly cost of the action)

A 7010 -missions

3 000

1100 EURO x 3 yearly missions

A 7031 -committees

4 000

Travel allowance and subsistence allowance for 2 participants in 2
two-days meetings

A 7030 - other meetings

8 000

Travel allowance and subsistence allowance for 2 participants in 4
two-days meetings

Total

4 000

19 000

Travel
participating in 4 two-days meetings

and subsistence

allowance

allowance

for

1

expert

The above expenditure will be met from the receipts (article 4 par.2, third indent of the
financial regulation) received from Hungary (see point 5.3 and 7.4 of the financial statement).

17