Council Regulation (EC) No 2667/2000 of 5 December 2000 on the European Agency for Reconstruction
Date: 2000-12-05
Institutions: Council of the European Union
Subjects: Central and Eastern Europe, EU office or agency, cooperation policy, economic reconstruction, operation of the Institutions, peacekeeping

7.12.2000

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Official Journal of the European Communities

L 306/7

COUNCIL REGULATION (EC) No 2667/2000

of 5 December 2000

on the European Agency for Reconstruction

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 (1),

Whereas:

(1)

(2)

(3)

(4)

(5)

Assistance for Albania, Bosnia and Herzegovina, Croatia,
the Federal Republic of Yugoslavia and the former Yugo-
slav Republic of Macedonia has been implemented
essentially under Regulation (EC) No 1628/96 (2) and
under Council Regulation (EC) No 3906/89 of 18
December 1989 on economic aid to certain countries of
Central and Eastern Europe (3).

Regulation (EC) No 1628/96, established the European
Agency for Reconstruction.

The Council adopted Regulation (EC) No 2666/2000 (4),
which lays down a
framework for
single
Community assistance to those countries and repeals
Regulation (EC) No 1628/96.

legal

The provisions governing the establishment and opera-
tion of the European Agency for Reconstruction should
therefore be adapted to Regulation (EC) No 2666/2000
and incorporated in a new Regulation, and the appro-
priate changes made at the same time.

The Feira European Council of 19 and 20 June 2000
emphasised that the European Agency for Reconstruc-
tion, as an authority implementing the future CARDS
programme, should be allowed to use its full potential in
order to achieve the goals set by the Cologne European
Council of 3 and 4 June 1999.

(6)

The Treaty does not provide, for the adoption of this
Regulation, powers other than those under Article 308,

Regulation (EC) No 2666/2000 to the Federal Republic of
Yugoslavia.

The European Agency for Reconstruction, hereinafter referred
to as the ‘Agency’, shall be set up to that end with the aim of
implementing this Community assistance.

Article 2

1.
To achieve the objective laid down in the second
subparagraph of Article 1, the Agency shall carry out the
following tasks, within the limits of its powers and in accord-
ance 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 displaced persons, and related
initiatives taken by governments,
local or regional
authorities and the international community;

(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 for the reconstruction of the
Federal Republic of Yugoslavia and the return of refugees
in accordance with guidelines
and displaced persons
provided by the Commission;

(c) implementing the Community 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 referred to in (b),
including:

HAS ADOPTED THIS REGULATION:

(i) drawing up terms of reference;

Article 1

(iii) signing contracts;

(ii) preparing and evaluating invitations to tender;

The Commission may delegate to an Agency implementation
of the Community assistance provided for in Article 1 of

(1) Opinion delivered 15.11.2000 (Not yet published in the Official

Journal).

(2) OJ L 204, 14.8.1996, p. 1. Regulation as amended by Regulation

(EC) No 2454/1999 (OJ L 299, 20.11.1999, p. 1).

(3) OJ L 375, 23.12.1989, P. 11. Regulation as last amended by Regu-

lation (EC) No 1266/1999 (OJ L 161, 26.6.1999, p. 68).

(4) See page 1 of this Official Journal.

(iv) concluding financing agreements;

(v) awarding contracts, in accordance with the provisions

of this Regulation;

(vi) evaluating draft programmes referred to in (b);

(vii) checking implementation of the draft programmes

referred to in (b);

(viii) effecting payments.

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The Board of Management referred to in Article 4 shall be
2.
kept informed on the implementation of the tasks listed in
paragraph 1. It shall where necessary adopt recommendations
which shall be communicated to the Commission and brought
to the attention of the CARDS Committee set up by Article 10
of Regulation (EC) No 2666/2000.

3. 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, programmes for the restoration of civil society
and the rule of law and programmes providing aid for the
return of refugees and displaced persons which the Member
States and other donors entrust
inter alia under the
arrangements for cooperation established by the Commission
with the World Bank, international financial institutions and
the European Investment Bank (EIB).

to it,

Such implementation shall be subject to the following condi-
tions:

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

(b) the financing must cover any associated administrative

costs;

(c) the duration thereof must be compatible with the deadline

for winding up the Agency set in Article 14.

The Commission may also entrust

the Agency with
4.
following up (including monitoring, evaluation and auditing)
decisions regarding support for the United Nations Interim
Mission in Kosovo (UNMIK) taken within the framework of
Regulation (EC) No 1080/2000 (1).

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 partic-
ular, acquire or dispose of movable and immovable property
and be a party to legal proceedings. The Agency shall be
non-profit-making.

The Agency may establish operational centres with a consider-
able degree of management autonomy.

The Agency's general services shall be located at its seat in
Thessaloniki.

Article 4

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

2.
The Member State representatives shall be appointed by
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.

(1) OJ L 122, 24.5.2000, p. 27.

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

7.
the Governing Board shall each have one vote.

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

The Governing Board shall determine by unanimous
8.
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 once every three months. It
shall also be convened at the request of the Agency's Director
or at least a simple majority of its members.

of

the

strategy

The Governing Board shall be kept informed by the
10.
the multiannual
Director
programme and the annual action programme referred to in
Article 3(1) of Regulation (EC) No 2666/2000, which shall
include Community assistance to the Federal Republic of Yugo-
slavia as well as the list of projects to be implemented.

framework,

The Director shall regularly report to the Governing
implementation of projects. The
recommendations
then approve

11.
Board on the progress of
Governing Board may
concerning:

(a) conditions for implementation and proper execution of

projects

(b) possible adjustments to projects currently being executed

(c) individual projects which may be particularly sensitive.

The Director shall regularly report to the Governing
12.
the operational
Board on the functioning and activities of
centres set up in accordance with Article 3. The Governing
Board may approve recommendations to this effect.

On a proposal from the Director, the Governing Board

13.
shall decide on:

(a) arrangements

for

evaluating the

implementation and

proper execution of projects;

(b) proposals for programmes by the other donors referred to
in Article 2(3) for possible implementation by the Agency;

(c) setting the multiannual contractual framework with the
provisional authority responsible for the administration of
Kosovo, for implementation of the Community assistance
referred to in Article 1(3) of Regulation (EC) No 2666/
2000;

(d) whether representatives of the countries and organisations
their programmes to the
delegating implementation of
Agency should be present as observers on the Governing
Board;

(e) the establishment of new operational centres in accordance

with the second subparagraph of Article 3.

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The Governing Board shall present a draft annual report
14.
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.

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

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

Article 7

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 action programme referred to in
Article 4(1)(b) of Regulation (EC) No 2666/2000 and its
implementation;

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

Board and regularly informing the Board;

(c) informing the Governing Board of invitations to tender,

procurement and contracts;

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

(e) preparation of the statement of revenue and expenditure

and execution of the Agency's budget;

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

Regulation;

(g) all staff matters;

(h) 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

1.
The Director shall establish each year a draft budget for
the Agency covering administrative expenditure and opera-
tional 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 Commission shall assess the draft budget of the
Agency having regard to the priorities it has established and
the overall financial guidelines for Community assistance for
the reconstruction of the Federal Republic of Yugoslavia.

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

4.
The Governing Board, after receiving the opinion of the
Commission, shall adopt the budget of the Agency at the
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.

For

reasons of budgetary transparency,

from
5.
sources other than the Community budget shall be entered
separately in the Agency's revenue. In the expenditure section,
administrative and staff costs shall be clearly separated from
the operational costs of the programmes referred to in the first
subparagraph of Article 2(3).

funds

The Director

4.
Authority.

shall hold the power of Appointing

Article 8

The Director shall present a quarterly activity report to

5.
the European Parliament.

1.

The Director shall implement the budget of the Agency.

Article 6

1.
Estimates of all the Agency's revenue and expenditure
shall be prepared for each financial year, which shall corre-
spond 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.

The competent departments of the Commission shall be

2.
responsible for financial checks.

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

The Court of Auditors shall examine the accounts in accord-
ance with Article 248 of the Treaty. It shall publish a report on
the Agency's activities every year.

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.

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Article 9

The Governing Board, having received the agreement of the
Commission and the opinion of the Court of Auditors, shall
adopt the Agency's Financial Regulation, specifying in partic-
ular the procedure to be used for drawing up and imple-
menting the Agency's budget, in accordance with Article 142
of the Financial Regulation of the Council of 21 December
1977 applicable to the general budget of
the European
Communities (1).

Article 10

The Agency's staff shall be subject to the rules and regulations
applicable to officials and other servants of
the European
in agreement with the
Communities. The Governing Board,
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 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 12

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 13

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

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

Article 14

Once the Commission considers that the Agency has fulfilled
the mandate described in Article 1,
it shall submit to the
Council a proposal for the winding up of the Agency. In any
event, on 30 June 2004 at the latest, the Commission shall
submit to the Council an evaluation report on the application
of this Regulation and a proposal on the status of the Agency.

Article 15

The Commission may delegate to the Agency the execution of
the Community assistance decided upon for
the Federal
Republic of Yugoslavia under Regulation (EC) No 1628/96.

Article 16

This Regulation shall enter into force on the day of its publica-
tion 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.

Done at Brussels, 5 December 2000.

For the Council

The President

C. PIERRET

(1) OJ L 356, 31.12.1977, p. 1.