Proposal for a Council Decision concerning the Community position within the Association Council on the financial contribution of Hungary for participation in the Socrates and Youth programmes in the years 2001 to 2006
Date: 2001-01-12
Institutions: European Commission
Subjects: EU programme, Hungary, financial agreement, teaching, youth exchange scheme

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 12.01.2001
COM(2001) 2 final

2001/0014 (ACC)

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the financial
contribution of Hungary for participation in the Socrates and Youth programmes in the
years 2001 to 2006

(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, which expired on 31 December 1999.
Their participation in these programmes has been an important element in these countries’
pre-accession process.

Moreover, Association Council decisions have already been adopted in 2000 to allow them to
participate in the second phase of Leonardo da Vinci, the second phase of Socrates, and the
new Youth programme, which have taken the place of the previous programmes as from 2000.
The CEECs have thus participated in these new programmes since their beginning, and the
activities undertaken within the first generation of programmes have been able to continue
within the successor programmes without any interruption.

For the Socrates and Youth programmes, the Association Council decisions adopted in 2000,
which apply until the end of the programmes, establish the financial contribution to be paid by
each CEEC for participation in the year 2000, and specify that their financial contribution for
the following years will be decided by the respective Association Councils in the course of
the year 2000. The Commission has calculated this contribution on the basis of the budgets
for the programmes concerned. All the CEECs have confirmed their agreement, and indicated
their willingness 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.

Therefore, the Commission now proposes to the Council to specify the financial contribution
of each CEEC to Socrates and Youth for the years 2001 to 2006 in a new decision, which will
complete the decisions of the respective Association Councils adopting the terms and
conditions for the participation of these countries in the Socrates and Leonardo da Vinci
programme on one part, and the Youth programme on the other.

Accordingly, the Council is invited to adopt the annexed proposal for a Council Decision
concerning the Community position within the Association Council on the financial
contribution of Hungary for participation in the Socrates and Youth programmes in the years
2001 to 2006.

2

2001/0014 (ACC)

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the financial
contribution of Hungary for participation in the Socrates and Youth programmes in the
years 2001 to 2006

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Articles
149 and 150, in conjunction with Article 300(2) thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

Decision 2/2000 of 24 July 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 part1, has adopted the terms and conditions for the participation of the
Republic of Hungary in the second phase of the Leonardo da Vinci and Socrates
programmes, and it applies for the duration of these programmes.

Decision 3/2000 of 21 September 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 part2 , has adopted the terms and conditions for the participation
of the Republic of Hungary in the Youth programme, and it applies for the duration of
this programme.

Annex II, point 2 of Decision 2/2000, and annex II, point 1 of Decision 3/2000 provide
that the financial contribution to be paid by Hungary to the budget of the European
Union to participate in these programmes in the years 2001 to 2006 will be decided by
the Association Council in the course of the year 2000,

1

2

OJ L 236, 20.9.2000, p. 14.
OJ L 273, 26.10.2000, p. 29.

3

HAS DECIDED AS FOLLOWS:

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 financial contribution of
Hungary for participation in the Socrates and Youth programmes in the years 2001 to 2006, is
the attached draft decision of the Association Council.

Done at Brussels,

For the Council
The President

4

Draft

DECISION N° …/ 2001 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 .....

establishing the financial contribution of Hungary for participation in the Socrates and
Youth programmes in the years 2001 to 2006

THE ASSOCIATION COUNCIL

Having regard to 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, concerning Hungary’s participation in Community
programmes, and in particular Articles 1 and 2 thereof3;

Whereas :

(1)

(2)

(3)

Decision 2/2000 of 24 July 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 part4, has adopted the terms and conditions for the participation of the
Republic of Hungary in the second phase of the Leonardo da Vinci and Socrates
programmes, and it applies for the duration of these programmes.

Decision 3/2000 of 21 September 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 part5, has adopted the terms and conditions for the participation
of the Republic of Hungary in the Youth programme, and it applies for the duration of
this programme.

Annex II, point 2 of Decision 2/2000, and annex II, point 1 of Decision 3/2000 provide
that the financial contribution to be paid by Hungary to the budget of the European
Union to participate in these programmes in the years 2001 to 2006 will be decided by
the Association Council in the course of the year 2000,

3

4

5

OJ L 317, 30.12.1995, p. 30.
OJ L 236, 20.9.2000, p. 14.
OJ L 273, 26.10.2000, p. 29.

5

HAS DECIDED AS FOLLOWS:

Article 1

The financial contribution to be paid by Hungary to the budget of the European Union to
participate in the Socrates II programme in the years 2001 to 2006 will be the following
(in

):

€

Year 2001

Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

5 430 000

5 570 000

5 699 000

5 860 000

6 042 000

6 278 000

Article 2

The financial contribution to be paid by Hungary to the budget of the European Union to
participate in the Youth programme in the years 2001 to 2006 will be the following (in

) :

€

Year 2001

Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

1 415 000

1 501 000

1 590 000

1 670 000

1 752 000

1 862 000

PHARE funds will be requested according to the following schedule :

Article 3

–

–

€

for the contribution to the Socrates II programme, the following yearly amounts
(in

)

Year 2001

Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

2 690 000

2 760 000

2 825 000

2 905 000

2 996 000

3 114 000
€

for the contribution to the Youth programme, the following yearly amounts (in

)

Year 2001

Year 2002

Year 2003

Year 2004

Year 2005

Year 2006

698 000

741 000

786 000

826 000

867 000

922 000

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

6

Article 4

This Decision shall enter into force on the first day of the month following its adoption by the
Association Council.

Done at Brussels,

For the Association Council
The President

7

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Participation of Hungary in Socrates and Youth in 2001-2006

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 and 150,
in conjunction with Article 300(2) thereof ;

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

Decisions 2/2000 of 24 July 2000 and 3/2000 of 21 September 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, and in particular
annex II thereof ;

4.

4.1

DESCRIPTION OF OPERATION

General objective

The Europe Agreement with Hungary provides for Hungary’s participation in
Community programmes in a wide range of areas, among which education and
youth.

Its participation will not only contribute towards the implementation of
the
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 first phase of the Leonardo da Vinci and
Socrates programmes,
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 these programmes has been part of the reinforced preaccession
strategy which assist this country in its preparation for future accession to the Union.

in the Youth for Europe programme,

and

8

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 establishing the participation of Hungary in the first generation
of programmes in the field of training, education and youth has expired on
31 December 1999. Two other Association Council decisions, one for Leonardo da
Vinci and Socrates, and one for Youth, have been adopted in 2000 to allow the
Hungarian participation to be carried on in the new generation of programmes,
starting from 2000. These two Association Council decisions established the
financial contribution of Hungary to Socrates and Youth for the year 2000, but not
for the years 2001 to 2006.

A new Association Council decision is thus needed to complete the former ones.

4.2

Period covered and arrangements for renewal

Until the end of the Community programmes 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 programmes. 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 two programmes in question and, where
appropriate, to the relevant items of operating expenditure. The total revenue
expected is given under item 7.4.

9

7.

7.1

FINANCIAL IMPACT

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

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

- the foreseeable operational costs, which have been calculated on the basis of the
programme budgets,
the country’s estimated take-up capacity, and previous
experience of its participation in the first phase of the Socrates programme, and in
the Youth for Europe programme,

- the foreseeable administrative costs, corresponding to the meetings and missions.
These estimated administrative costs amount yearly to 50 000
for Socrates, and
19 000

for Youth.

€

€

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 (in

€
)

2001

2002

2003

2004

2005

2006

Total

Socrates

5 430 000

5 570 000

5 699 000

5 860 000

6 042 000

6 278 000

34 879 000

Origin: National budget

2 740 000

2 810 000

2 874 000

2 955 000

3 046 000

3 164 000

17 589 000

of which administrative
costs Part B (see point 7.3)

of which administrative
costs Part A (see point 10)

150 000

154 000

158 000

162 000

167 000

174 000

965.000

50 000

50 000

50 000

50 000

50 000

50 000

300 000

Origin: PHARE funds

2 690 000

2 760 000

2 825 000

2 905 000

2 996 000

3 114 000

17 290 000

Youth

1 415 000

1 501 000

1 590 000

1 670 000

1 752 000

1 862 000

9 790 000

Origin: National budget

717 000

760 000

804 000

844 000

885 000

940 000

4 950 000

of which administrative
costs Part B (see point 7.3)

of which administrative
costs Part A (see point 10)

59 000

62 000

66 000

69 000

73 000

77 000

406 000

19 000

19 000

19 000

19 000

19 000

19 000

114 000

Origin: PHARE funds

698 000

741 000

786 000

826 000

867 000

922 000

4 840 000

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 Socrates and Youth, but within the limits allowed by the part
of the contribution which comes from the country's national budget.

10

7.4

Schedule of commitment and payment appropriations

Amounts to be charged to item B7-030

2000

2001

2002

2003

2004

2005

2006

TOTAL

Comm.
App.

3 388 000 3 501 000 3 611 000 3 731 000 3 863 000 4 036 000

22 130 000

Pay. app.

3 388 000 3 501 000 3 611 000 3 731 000 3 863 000 4 036 000 22 130 000

The foreseeable annual receipts are as follows:

Item 6091

2001

2002

2003

2004

2005

2006

TOTAL

Operational
part

Administrati
ve part

6 776 000

7 002 000

7 220 000

7 461 000

7 725 000

8 071 000 44 255 000

69 000

69 000

69 000

69 000

69 000

69 000

414 000

TOTAL

6 845 000

7 071 000

7 289 000

7 530 000

7 794 000

8 140 000 44 669 000

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 essential aim of Community action on education and youth is to enable all
European citizens to achieve their full potential and to display initiative and
creativity so that they can participate fully in society and in the building of Europe.

The target population comprises students, teachers, pupils, educational institutions,
youth organisations, young people aged 15 to 25 living in one or several Member
States, decision-makers in the field of educational and youth policies.

9.2

Grounds for the operation

– Need for Community financial aid

11

In view of the high cost of participation in the programmes 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 programmes concerned 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

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

9.3

Monitoring and evaluation of the operation

The monitoring and evaluation procedures included in the Socrates II and Youth
programmes (notably in respect of evaluation, as included in the decisions
establishing the two programmes) will also cover operations financed for Hungarian
beneficiaries.

10.

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

Actual mobilization 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 authorized 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

2

Additional
resources

2001-2006

Existing
resources in
the DG or
department
concerned

1
1

2

12

10.2

Overall financial impact of the human resources

Amounts

Method of calculation (total cost for the period 2001-2006)

EUR

Officials (*)

1 296 000

2 men x 6 years x 108 000

Temporary staff

Other resources

Total

1 296 000

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

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

12 000

1100 EURO x 11 yearly missions

A 7031 -committees

22 000

Travel allowance and subsistence allowance for 23 participants in
two-days meetings*

A 7030 - other meetings

26 000

9 000

Travel allowance and subsistence allowance for 27 participants in
two-days meetings*

Travel allowance and subsistence allowance for Hungarian experts
participating in 2 meetings of 7 days in average and 4 two-days
meetings

Total

69 000

* 2 representatives in 10 committee and subcommittee meetings (8 for Socrates and 2 for
Youth), and 1 representative in 3 Socrates subcommittee meetings

2 representatives in 4 Youth meetings, and 1 participant in 19 Socrates meetings

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).

13

*
*
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