Amended proposal for a Council Regulation concerning the European Agency for Reconstruction (presented by the Commission pursuant to Article 250(2) of the EC-Treaty)
Date: 2000-10-04
Institutions: European Commission
Subjects: European Agency for Reconstruction, cooperation agreement, economic reconstruction, financial aid, third country

27.2.2001

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Official Journal of the European Communities

C 62 E/135

Amended proposal for a Council Regulation concerning the European Agency for Reconstruction

(2001/C 62 E/09)

COM(2000) 628 final (cid:15) 2000/0112(CNS)

(Submitted by the Commission pursuant to Article 250(2) of the EC Treaty on 12 October 2000)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) Assistance for Albania, Bosnia and Herzegovina, Croatia,
the Federal Republic of Yugoslavia and the
former
Yugoslav Republic of Macedonia has been implemented
essentially
EC)
No 2185/96 (1), as
last amended by Regulation (EC)
No 2454/1999 (2), and under Council Regulation (EEC)
No 3906/89 (3), as
last amended by Regulation (EC)
No 1266/1999 (4).

under Council Regulation (Euratom,

(2) Regulation (EC) No 1628/96 as amended by Regulation
(EC) No 2454/1999 set up the European Agency for Recon-
struction, for which it was the legal basis.

(3) On [date of adoption of CARDS] the Council adopted
Regulation [CARDS] which lays down a single legal
framework for assistance to those countries and repeals
Regulation (EC) No 1628/96.

(4) The provisions governing the creation and operation of the
European Agency for Reconstruction should therefore be
adapted to Regulation [CARDS] and incorporated in a new
Regulation, and the appropriate changes made at the same
time.

in Feira on 19 and
(5) The European Council which met
20 June 2000 emphasised that
an
the Agency as
authority implementing the future CARDS programme
in order to
should be allowed to use its full potential
in
achieve the goals set out by the European Council
Cologne.

(6) The Treaty does not provide, for the adoption of this Regu-

lation, powers other than those under Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

1.
The Commission may delegate to an agency implemen-
tation of the assistance provided for in Article 1 of Regulation
[CARDS],
initially in Kosovo and also in other parts of the
Federal Republic of Yugoslavia, when conditions permit.

(1) OJ L 204, 14.8.1996, p. 1.
(2) OJ L 299, 20.11.1999, p. 1.
(3) OJ L 375, 23.12.1989, p. 11.
(4) OJ L 161, 26.6.1999, p. 68.

The European Agency for Reconstruction, hereinafter referred
to as the @AgencyA, shall be set up to that end with the aim of
implementing
first
subparagraph.

assistance

referred

the

the

to

in

than Kosovo,

Any decision to extend the Agency’s activities to parts of
2.
including decisions on the
the FRY other
arrangements
referred to in
for determining the bodies
Article 1(2) of Regulation [CARDS], shall be taken by the
from
Council acting by a qualified majority on a proposal
the Agency
the Commission.
may establish other operational centres.

In the light of

that decision,

Article 2

To achieve the objective laid down in Article 1,

the
1.
Agency shall carry out
the following duties, within the
bounds of its powers and in accordance with the decisions
taken by the Commission:

(a) gathering, analysing and communicating information to the

Commission on:

(i) damage, the requirements for reconstruction and the
return of refugees, and related initiatives taken by
governments,
regional authorities and the
international community;

local or

(ii) the

urgent

requirements

communities
concerned, taking account of the various population
displacements and the possibilities for the return of
those displaced;

the

of

(iii) the priority sectors and geographical areas requiring
urgent assistance from the international community;

(b) preparing draft programmes

the reconstruction of
Kosovo and the return of refugees in accordance with
guidelines provided by the Commission;

for

(c) implementing the assistance referred to in Article 1,
wherever possible in cooperation with the local population
and where necessary by drawing on the services of
operators
selected by tender. The Commission may
accordingly make the Agency responsible for all operations
required to implement the programmes, including:

(i) drawing up terms of reference;

(ii) preparing and evaluating invitations to tender;

(iii) signing contracts;

(iv) concluding financing agreements;

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Official Journal of the European Communities

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(v) awarding contracts, in accordance with the provisions

of this Regulation;

(vi) evaluating projects;

(vii) checking project implementation;

(viii) effecting payments.

2. Without prejudice to any operations cofinanced in the
framework of
the responsibilities entrusted to the Agency
under Article 1, the Agency may implement reconstruction
programmes and programmes
refugees
which the Member States and other donors entrust to it, inter
alia under the arrangements for cooperation established by the
Commission with the World Bank, international financial insti-
tutions and the European Investment Bank (EIB).

the return of

for

Such implementation shall be
conditions:

subject

to the

following

(a) the financing must be provided in full by the other donors;

(b) the financing must cover any associated administrative

costs;

(c) the duration of these tasks must be compatible with the
deadline for winding up the Agency set in Article 13.

The Commission may also entrust

3.
the Agency with
following up (including carrying out monitoring, evaluation
and auditing) decisions regarding support for UNMIK taken
within the framework of Regulation (EC) No 1080/2000.

Article 3

the Member States

The Agency shall have legal personality. It shall enjoy in each
of
the most extensive legal capacity
accorded to legal persons under their laws; it may, in particular,
acquire or dispose of movable and immovable property and be
a party to legal proceedings. The Agency shall be non-profit-
making.

the Agency, which shall have a
The operational centre of
considerable degree of management autonomy, shall be estab-
lished initially in Pristina in order to embark on the recon-
struction work in Kosovo, drawing on the Agency’s general
services located at its seat in Thessaloniki.

Article 4

The Agency shall have a Governing Board composed of
1.
one representative from each Member State and two represen-
tatives of the Commission.

The Member State representatives shall be appointed by
2.
the Member State concerned, paying due regard to experience
and qualifications relevant to the Agency’s activities.

The term of office of representatives shall be thirty

3.
months.

The Governing Board shall be chaired by a Commission

4.
representative. The Chairman shall not vote.

5.

6.

The EIB shall appoint a non-voting observer.

The Governing Board shall adopt its rules of procedure.

The Commission and Member State representatives on the

7.
Governing Board shall each have one vote.

Governing Board decisions shall be adopted by a two-thirds
majority.

8.
The Governing Board shall determine by unanimous
decision the rules governing the languages used by the Agency.

9.
The Governing Board shall be convened by the Chairman
whenever necessary, and at least three times per year. It shall
also be convened at the request of the Agency’s Director or at
least a simple majority of its members.

10. (a) The Governing Board shall examine the assistance
strategy framework, presented by the Commission, on
which the annual programme for reconstruction is to
be based.

relating to it,

(b) Using as a basis this strategy framework and the
the Director
Commission guidelines
shall present to the Governing Board a draft annual
programme for reconstruction. The draft programme
shall set out for the operational year in question the
aims being pursued, the fields of action and the budget
provided for. Once the Governing Board has delivered
an opinion on the draft annual programme for recon-
struction, the Director shall forward the latter to the
Commission.

(c) On a proposal
decide on:

from the Director,

the Board shall

(i) proposals for programmes by other donors for

possible implementation by the Agency;

(ii) setting the multiannual contractual

framework
with the provisional authority responsible for the
administration of Kosovo, for implementation of
the assistance referred to in Article 1(3) of Regu-
lation [CARDS];

(iii) whether

representatives of

countries and
organisations delegating implementation of
their
programmes to the Agency should be present as
observers on the Governing Board.

the

11.
The Governing Board shall present a draft annual report
to the Commission by 31 March each year at the latest on the
Agency’s activities in the previous year and how they were
financed.

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The Commission shall adopt the annual report and submit it to
the European Parliament and the Council.

Article 5

1.
The director of the Agency shall be appointed by the
Governing Board on a proposal from the Commission for a
term of office of thirty months. The term of office may be
terminated by the same procedure.

The Director shall be responsible for:

(a) preparing the draft annual programme for reconstruction

referred to in Article 4(10)(b);

(b) preparation and organisation of the work of the Governing

Board;

(c) day-to-day administration of the Agency;

(d) preparation of the statement of revenue and expenditure

and execution of the Agency’s budget;

(e) preparation and publication of the reports specified in this

Regulation;

(f) all staff matters;

(g) implementation of

the Governing Board’s decisions and

guidelines laid down for the Agency’s activities.

The Director shall be accountable to the Governing Board

2.
for his activities and shall attend its meetings.

The Director shall be the legal representative of

3.
Agency.

the

The Director

4.
Authority.

shall hold the power of Appointing

The Director shall present a quarterly activity report to

5.
the European Parliament.

Article 6

Estimates of all the Agency’s revenue and expenditure
1.
shall be prepared for
each financial year, which shall
correspond to the calendar year, and shall be shown in the
Agency’s budget, which shall include an establishment plan.

The revenue and expenditure shown in the Agency

2.
budget shall be in balance.

3.
The Agency’s revenue shall comprise, without prejudice
to other types of income, a subsidy from the general budget of
the European Union, payments made as remuneration for
services performed and funding from other sources.

4.
The budget shall also include details of any funds made
available by the recipient countries themselves for projects
receiving financial assistance from the Agency.

Article 7

1.
The Director shall establish each year a draft budget for
the Agency covering administrative expenditure and oper-
ational expenditure for the following financial year, and shall
submit it to the Governing Board.

2.
On this basis, the Governing Board shall adopt a draft
budget for the Agency by 15 February of each year at the
latest, and shall submit it to the Commission.

3.
the
The Commission shall assess the draft budget of
Agency having regard to the priorities it has established and
the overall financial guidelines for reconstruction assistance for
Kosovo.

It shall establish on this basis and within the proposed limits of
the overall amount to be made available for aid to Kosovo, the
indicative annual contribution to the Agency budget to be
included in the preliminary draft of the general budget of the
European Union.

The Governing Board, after receiving the opinion of the
4.
Commission, shall adopt
the
the budget of
beginning of each financial year, adjusting it to the various
contributions granted to the Agency and to funds from other
sources. The budget shall also specify the number, grade and
category of staff employed by the Agency during the financial
year in question.

the Agency at

Article 8

1.

The Director shall implement the budget of the Agency.

The competent departments of the Commission shall be

2.
responsible for financial checks.

By 31 March each year at the latest, the Director shall
3.
submit to the Commission, the Governing Board and the Court
of Auditors the detailed accounts of all revenue and expen-
diture from the previous financial year.

The Court of Auditors
in
shall
accordance with Article 248 of the Treaty. It shall publish a
report on the Agency’s activities every year.

accounts

examine

the

4.
On a recommendation from the Council, the European
Parliament shall give a discharge to the Director in respect of
the implementation of the Agency’s budget.

Article 9

the Agency’s

The Governing Board, having received the agreement of the
Commission and the opinion of the Court of Auditors, shall
adopt
in
the procedure to be used for drawing up and
particular
implementing the Agency’s budget,
in accordance with
Article 142 of
the Financial Regulation applicable to the
general budget of the European Communities.

Financial Regulation,

specifying

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Article 10

The Agency’s staff shall be subject to the rules and regulations
applicable to officials and other servants of
the European
Communities. The Governing Board,
in agreement with the
Commission, shall adopt the necessary implementing rules.

The Agency’s staff shall consist of a strictly limited number of
officials assigned or seconded by the Commission or Member
States to carry out management duties. The remaining staff
shall consist of other employees recruited by the Agency for
a period strictly limited to its requirements.

Article 11

The Governing Board shall decide on the Agency’s accession to
the Interinstitutional Agreement on internal investigations by
the European Anti-Fraud Office (OLAF).
the
provisions necessary for the conduct of internal investigations
by OLAF.

It shall adopt

Financing decisions and any implementing instrument or
contract arising therefrom shall expressly provide that
the
if necessary, carry out
Court of Auditors and OLAF may,
on-the-spot checks on recipients of Agency funds and on the
intermediaries distributing them.

Article 12

The contractual liability of the Agency shall be governed

1.
by the law applicable to the contract in question.

2.
In the case of non-contractual liability, the Agency shall,
in accordance with the general principles common to laws of
the Member States, make good any damage caused by the
Agency or its servants in the performance of their duties.

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

The personal

3.
liability of servants towards the Agency
shall be governed by the relevant provisions applying to the
staff of the Agency.

Article 13

Once the Commission considers that the Agency has fulfilled
the mandate described in Article 1,
to the
Council a proposal for the winding up of the Agency. In any
event, at least six months before this Regulation expires, the
Commission shall submit a proposal to the Council on the
status of the Agency.

it shall submit

Article 14

The translation services necessary for the operation of
the
Agency shall, as a rule, be provided by the Translation
Centre of the bodies of the European Union.

Article 15

into force on the third day
This Regulation shall enter
following that of its publication in the Official Journal of the
European Communities.

It shall apply until 31 December 2004.

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