Reform progress report – February 2001
Date: 2001-02-28
Institutions: European Commission
Subjects: European Commission, action programme, administrative structures, institutional reform, management planning, organisation of work

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 28.2.2001
COM(2001) 115 final

REFORM PROGRESS REPORT – FEBRUARY 2001

(presented by the Commission)

REFORM PROGRESS REPORT – FEBRUARY 2001

1.

INTRODUCTION

The White Paper “Reforming the Commission” was adopted by the College on
1st March 2000. It set out to introduce new working systems which would allow the
Commission to be more independent, accountable, efficient, transparent and guided by
the highest standards of responsibility. The programme for achieving these objectives
included a detailed Action Plan of 98 separate actions with a timetable extending into
2002.

This report reviews the progress made by the Commission, after one year,
in
developing and introducing measures aimed at implementing the White Paper. It will
describe the approach used in each of the main areas of reform included in the White
Paper as well as review work resulting from the Reform of Management of
Community Progammes which is considered as part of the Commission’s Reform
initiative. It will also assess overall progress and look at likely developments over the
coming year.

2.

BACKGROUND

The Treaty of Rome defined the role of Commission in the newly created European
Community. Since then much has changed. The number of Member States has
increased to 15, and, over the years,
the Commission has been assigned many
managerial tasks by the Council and the European Parliament in addition to its initial
responsibilities. However, some of these management activities have tended to
detract from the Commission’s basic role as foreseen in the Treaty.

In order to respond to the prevailing situation and prepare the Commission for
enlargement,
the College adopted the White Paper on Reform proposed by
Mr. N. Kinnock Vice President, and took the strategic decision to focus the
Commission’s work on its key policy objectives. The Peer Group of Commissioners
conducted an overall assessment of activities and the resources used in order to
equate them. The exercise was completed in July 2000.

The development of this reform has benefited from steps taken by the Commission
early in its mandate, namely the Code of Conduct of Commissioners (Sept 1999),
Code of Conduct for Commissioners and Departments (Sept 1999), Commissioners’
Declaration of Interests (Aug 1999).

Considering the clear link between the on-going reform and governance, the two
teams are co-operating very closely to ensure coherence between the two exercises.

Unlike previous occasions, when individual aspects of Commission activity were the
subject of reform, the White Paper put forward for the first time a set of integrated
reforms proposing inter-linked actions covering several areas of Commissioner’s

2

activities, the overall objective being to fundamentally change the administrative
culture.

Clearly the Commission must have optimal structures and systems for the deployment
of its resources. The White Paper ‘Reforming the Commission’ set out a programme
review of working practices, programming of activities,
for a fundamental
management of human and financial resources; and, coupled with this, a reform of
financial management which would allow the Commission to ensure the highest
standard of effectiveness in the handling of public funds.

Much of the objective of the reform is centred around the reinforcement of five
principles namely independence,
efficiency and
transparency; all of which should foster a culture based on service, and oriented
towards results rather than inputs.

accountability,

responsibility,

The Action Plan, which is part of the White Paper, is an integrated set of 98 separate
actions divided into chapters each reflecting an aspect of the Reform. These proposed
measures are clearly complementary, since the setting of priorities and the efficient
use of resources have to be matched by a reform of human resource development to,
not least, facilitate improved financial management, control, and internal auditing.

The nature of an action determines the time needed to prepare it and put it into effect,
and not all actions will yield immediate results, eg. financial circuits have been re-
designed and are now operational, whilst actions related to Activity Based
Management are being carried out on a pilot basis for 2002.

3. REFORM PROCESS

From the very start of the Reform, the Commission adopted a process which would
ensure the direct
involvement of the Services in the development of ideas and
methods, and allow for broad consultation at all levels1. Indeed, during the drafting of
the White Paper, consultation was carried out through both direct meetings with staff
and electronic communication. This process is also being used in the formulation of
various communications related to human resources with draft documents posted on
the intranet inviting staff to comment. Discussions also took place in the General
Affairs’ Council of Ministers during the Portuguese presidency and concluded with a
supportive resolution.
In addition, numerous contacts and discussions took place
with Parliament. The Van Hulten resolution of January 2000 gave an initial steer on
the direction of the White Paper. The four substantial Parliamentary reports which
followed later in the year went into more specific details as to Parliament’s support
and concerns for the reform process.

A group of Reform Commissioners was set up to provide advice and in-put into the
main policy lines of reform, and comment on legislative proposals prior to their being
submitted to the College for approval.

1 See annex 1

3

Programming and Co-ordination Groups were established on Financial Circuits,
Internal Audit, Human Resources, Externalisation, Activity Based Management and
the Protection of Financial Interests. Each was headed by a Director General and
brought together senior staff and ‘end-users’ of the reform. Those that are still
operational continue to provide valuable input in the implementation phase of the
Reform.

The Group on Financial Circuits made recommendations on the financial organisation,
and other proposals put forward by DG Budget, i.e. the recasting of the Financial
Regulations, the Charter of Authorising Officers and Standards for internal control.
This Group is now conducting hearings of Directors General each of whom present
their services’ plans for the improvement of financial management and control
systems. The Group on Externalisation has identified three appropriate forms for the
Commission to externalise its non-core tasks, and has developed a Communication to
the Commission on the Externalisation of Management of Community Programmes.
The Group on Internal Audit greatly contributed to the drafting of appropriate
sections in the White Paper and completed its work on 22 February 2000. The
Activity Based Management (ABM) Group oversees the whole process leading to the
development and setting-up of the process related to the implementation of this new
approach to priority setting, operational planning and resource allocation. Another
Group is currently overseeing the implementation of reform actions in the field of
protection of the Communities’ financial interests.

During the implementation phase lead Services have taken over the responsibility for
carrying out actions whilst operational DG’s continue to apply reform measures.

In addition to this wide internal consultation process, the Commission has sought,
where appropriate, advice from a broad spectrum of external professionals and
specialists.

In general, where the drafting of documents has been an essential part of the activities
it has followed the sequence as shown by the following chart:

White Paper
(cid:1)

Issue Notes
(cid:1)

Preparation of Draft Consultative Documents
(cid:1)

Inter Service Consultation
(cid:1)

Adoption of Communications (Consultative or Final) and Draft

Legislative Proposals by the Commission (Reform Packages)

4

In the case of Human Resources, the process continues as follows.

(cid:1)

Consultation with Staff and their Representatives

(cid:1)

(cid:1)

(where no Staff Regulations’ changes required)
(cid:1)

(where Staff Regulations’ changes required)
(cid:1)

Adoption of Implementing Rules

(Decisions’, Guidelines)

by the Commission

Adoption of Global Package of Modifications to
the Staff Regulations by the Commission

(Middle of 2001)
(cid:1)

(cid:1)

Implementation during 2001

Consultation of Interinstitutional Staff

Regulations Committee
(cid:1)

Adoption of amended Global Package of
Modifications to the Staff Regulations by the
Commission

(End of 2001)
(cid:1)

Submission to Parliament & Council
(cid:1)

Adoption by Council
(cid:1)

Implementation from 2002

4.

AREAS OF REFORM

4.1.

A Culture Based On Service

4.1.1. Main points of this area of reform

The main objective is to improve relations between all European institutions and the
citizen through the improvement of standards of service provided and greater use of
information and communication technologies and networks (e-commission).

4.1.2.

Developments to date

Since the adoption of the White Paper, and building on a number of initiatives
launched by the previous Commission, several texts on self-regulation have been
adopted. Transparency measures have been taken and activities devised in order to
into place a coherent approach among all services to enable them to use
put
information and communications technology tools to their full potential.

5

The Commission has also adopted a proposal for an Inter-Institutional Agreement for
the setting up of an ‘Advisory Group on Standards in Public Life’. The need for
greater transparency has also been fully recognised by the Commission’s adoption of a
proposal for a Regulation on ‘Public Access to European Parliament, Council and
Commission documents’. This Regulation is to be adopted by Council and Parliament
in accordance with the co-decision procedure later in 2001.

On another – more ambitious – level, actions were started to ensure a higher profile
and user friendliness of the Commission’s EUROPA website, to explore the possibility
of using the Internet
to hold interactive policy consultations, and to promote
electronic public procurement and transactions.

4.1.3. Main achievements since 1 March 2000

• The Commission has adopted a Code of Good Administrative Behaviour for its

officials in their relations with the public (July 2000).

• A new framework agreement laying down the rules and procedures for co-
operation with the European Parliament has been agreed between the
Commission and Parliament (July 2000).

• A strategy on the e-Commission has been designed along three main strands
(internal administration; citizens and business; external partners). This work
will lead to a reform of the Commission’s information and communication
technology policy.

• Substantial efforts have been made to enable Services to abide by the new 60

day payment period for the settlement of Commission invoices.

• The Customer Panel has supported the work of DG Personnel and
Administration by putting forward suggestions to improve standards of service
and has met four times to date.

4.2.

Priority setting & the efficient use of resources

4.2.1. Main points of this area of reform

The first challenge in this area consisted of designing a coherent approach through
Activity Based Management (ABM) to bring together and integrate a series of
activities that were, until now, not coordinated in a systematic way, (ie. the definition
of policy objectives, the planning and programming of activities, the preparation of
the budget, and the allocation of resources). This would prepare future ABM
exercises and limit adjustments in the allocation of resources. The second challenge
was to increase efficiency and performance through the revision and improvement of
working methods including the development of a mechanism for permanent review
and adjustment.

4.2.2. Developments to date

The design by the responsible Services of the various elements necessary to establish
the ABM were discussed and tested within a joint services/cabinet working group

6

prior to launching official consultation. Although there were some delays in setting up
the appropriate structure, substantial progress was made in the second part of 2000.

The Peer Group of Commissioners under the chairmanship of the President carried
out an analysis of the work of Directorates General with a view to providing an
In the
equilibrium between tasks and the resources required to carry them out.
conclusions to its report the Peer Group identified, inter alia, a number of posts and
training needed by the Services (to implement measures stemming from the Reform)
and has indicated the budget required. As a result of this the College adopted in July
a letter of amendment to the 2001 Preliminary Draft Budget which proposed internal
redeployment of staff, early retirement for some 600 staff over 2001 and 2002, and a
request for complementary resources. The draft proposal for an early retirement
the peer group exercise was discussed with staff
scheme in the context of
representatives prior to being adopted by the Commission. The budgetary aspects of
the Peer Group proposals were then approved by the Council and introduced in the
2001 budget.

In the context of ABM and in order to adapt and respond to new challenges and
priorities the Commission may decide to re-allocate resources, this would require the
redeployment of people and not simply posts. Consequently there was a need to
establish accompanying measures in the form of “Guidelines for Redeployment”. The
Commission
a
staff
Communication in November.

representatives

these with

discussed

issuing

before

4.2.3. Main achievements since March 2000

The key actions of Activity Based Management (ABM) are now well advanced: a
Strategic Planning and Programming (SPP) function has been created within the
Secretariat-General of the Commission. A unit was set up which, with contribution
from a network of SPP correspondents representing each DG, has developed the
design of the SPP cycle. The first cycle - which covers the year 2002 - is largely a
pilot exercise, since not all the methodological tools are as yet available. This started
in December 2000 with a political orientation debate from which the Commission
identified six main priorities for 2002. It will be confirmed by an Annual Policy
Strategy decision to be taken by the Commission in February 2001. This will form the
basis on which the Preliminary Draft Budget and the Commission Work Programme
will subsequently be prepared.

The development of ABM relies on a comprehensive information technology (IT) tool
known as the Integrated Resource Management System (IRMS), which brings
together several other information instruments and provides an impressive range of
monitoring, reporting and data extraction functions. Eight DGs have operated pilot
schemes of IRMS, which will be fully deployed in 2002. The successful introduction
of Activity Based Management (ABM) has led to the adoption by the College of a
Communication aimed at strengthening the evaluation system within the DGs and at
Commission level. Evaluation of policies and activities plays a key role in the process
of Annual Policy Strategy and Strategic Planning and Programming.

A first interim action plan on the simplification of procedures and working methods
covering twelve actions has been adopted, paving the way for the subsequent

7

adoption of the first measure concerning the simplification of the Commission
decision-making process. As part of the process of developing management tools,
guidelines for drafting job descriptions for each official have been adopted and an
(IRMS-based) IT tool developed. The result of the ‘task assignments’ pilot exercise
launched last year will be integrated into the guidelines for completing the new staff
appraisal system to facilitate the setting and evaluation of individual objectives.

4.3.

Externalisation

4.3.1. Main points of this area of reform

The development of a policy on externalisation was born out of the need to phase out
the over reliance on Technical Assistance Offices (TAO), an objective strongly
supported by Parliament. The Commission has identified the circumstances in which
externalisation can be recommended, the limits of externalisation, and the types of
externalisation which are possible.
The Commission considers three forms of
delegation of all or some of certain activities, namely :

a)

devolution through the establishment of (executive) agencies;

b)

c)

decentralisation to networks where certain responsibilities are entrusted to
public service national bodies in Member States;

contracting out
(outsourcing).

to private sector entities certain non-core activities

4.3.2. Developments from March 2000 to date

A Communication on the Management of Community Programmes was approved by
the College in December 2000. A framework regulation for a new type of Executive
Agency was attached to this Communication.
This document will shortly be
discussed with Parliament and the Council.

The Commission is looking at other forms of externalisation and is developing a basic
and common framework for different types of agencies likely to be needed in the
future. As a result of the Peer Group conclusions and within the framework of
externalisation, Directorates General are carrying out two studies. The first will
calculate the cost/effectiveness of externalising non-core tasks,
the second will
identify the form of externalisation best suited on the basis of the results of the first.
Both of these studies are being closely monitored.

The question of defining core tasks which should be carried out by the Commission
Services will be discussed in March and a policy fixed by the College shortly
thereafter.

4.4. Human Resources

4.4.1. Main points of this area of reform

The main objective of this important area of the reform is the modernisation of
Human Resources policy from recruitment to retirement, in order respond to the
challenges of European public service for the benefit of citizens and staff. Many of

8

these reforms are being or will be implemented on the basis of existing rules during
2000 and 2001 but some of the proposed changes may require amendments to the
Staff Regulations.

4.4.2. Developments from 1 March 2000 to date

The reform of human resources policy is a necessarily lengthy procedure (see
Reform Process above) involving extensive consultation with staff and their
representatives. In the European institutions’ context, this is made more complex
by the fact that changes to officials’ terms and conditions of employment need
legislative amendments to be made by Council to the Staff Regulations.
In
addition, these formal changes affect all the European institutions and necessitate
an inter-institutional consultation process. As a result, although a substantial
amount of change can be and is being achieved in the short-term, some of the
intensive activity on Reform in the human resources area will not come to fruition
in terms of concrete achievements before 2002. Nevertheless, significant progress
has already been made in a number of fields.

The Directorates General for Personnel and Administration has carried out this
important preparatory work through the internal circulation of Issue Notes,
informal discussions with staff
representatives and consultations with the
Programming and Consultation Group on Human Resources and with other
services. This has culminated in the presentation of formal Consultative Documents
in addition to some specific activities or communications, have been
which,
grouped in three major packages: the first two were presented to the College in
October and November, the third one is to be submitted in February. These
developments are summarised below.

4.4.3. Management and Organisational Issues

• A Communication on Senior Management has been adopted which proposes
improvements to selection procedures, appointments and career mobility of
senior management (A1 and A2 officials) as well as regular performance
appraisals. It also proposes reforms to the role of the Consultative Committee
on Appointments (December 2000).

• The job descriptions pilot exercise has been launched. The evaluation of this
pilot phase will be completed shortly (April 2001), when final guidelines will be
drawn up for job descriptions and the setting of objectives for all staff (July
2001).

• A parallel Communication on Middle Management is due to be approved by the

Commission shortly (February 2001).

• Decisions on administrative transparency and simplification are being prepared

by the services.

9

4.4.4. Career Structure

• A Communication on non-permanent staff has been adopted which proposes
changing the Staff Regulations to allow the recruitment of auxiliary agents for
three years instead of just one year (October 2000). Staff representatives have
been consulted. The Commission will shortly adopt a further Communication
on the wider issues of the role of non-permanent staff (February 2001).

• The Council agreed to the Commission’s proposal to extend the current 1991
(10 year) agreement for the calculation of annual increases for the salaries and
pensions of civil servants for a further two years. This will allow time for
comprehensive proposals to revise the Staff Regulations - including pay and
pensions arrangements - to be prepared. (December 2000).

• The Commission is due to have an orientation debate on Pay and Pensions and
a More Linear Career Structure (February 2001) and approve a basis for
consultation shortly. (March/April 2001).

• A Communication on a Flexible Retirement Scheme is due to be approved by

the Commission shortly (March 2001).

4.4.5. Accountability

• The College has adopted a Communication on Disciplinary Proceedings which
aims to reform administrative and legal procedures in order to improve the
efficacy and coherence of disciplinary decisions (November 2000). Discussions
with staff representatives are ongoing

• A Communication on Whistleblowing has also been approved, which puts
forward legal proposals to establish formal procedures for the raising of
concerns on serious wrongdoing (November 2000). Discussions with staff
representatives are due to begin shortly.

4.4.6. Career Development

• A new Central Career Guidance Function was established within the
Directorates General for Personnel and Administration some months before
schedule (September 2000).

• The Commission has approved Communications on Equal Opportunities and
on Improving Perspectives for People with Disabilities which make proposals
to substantially reduce obstacles to jobs and to career development based on
gender, disability, ethnicity, age or sexual orientation (November 2000).

• A major staff development package is also due to be approved imminently
comprising: Recruitment Policy; Staff Appraisal; Promotion; Career Mobility;
Maintaining Standards of Professional Performance and Training Policy
(February 2001).

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4.4.7. Social Environment

• The Commission has approved consultative proposals concerning Family
Related Leave and Flexible Working Arrangements which proposes changes to
Staff Regulations to bring them more into line with legislation in Member
States (October 2000).

• In addition a Social Policy Communication which includes proposals for a
in human resources

involving staff
future strategy of
developments, is due for approval shortly (February 2001).

representatives

4.5.

Financial Management, Control and Internal Auditing2

4.5.1. Main points of this area of reform

The reform in this area operates at three complementary levels:

(1)

(2)

(3)

Renewing the regulatory framework - which implies fundamental changes
to the Financial Regulation, charter of responsibilities of authorising
officers, standards for
internal control, annual activity reports and
Director-Generals’ declaration of assurance.

the Commission’s system of

Overhauling the structure of
financial
management, control and internal auditing which includes dismantling
central ex-ante controls; decentralisation to DGs of responsibility for on-
the-spot control checks; reform of financial circuits; creation of Central
Financial Service, central Internal Audit Service (IAS),
internal audit
capabilities within DGs and Audit Progress Committee (APC).

Strengthening the financial management and audit control capacity of
Commission services (i.e. increased staffing (by 200 in total), training,
operational manuals, help-desk, and information systems).

4.5.2. Developments to date

As a prerequisite to the creation of a new administrative culture, the necessary
infrastructure, both in terms of regulatory framework and of new structures, had to be
put in place. In this context, the Commission presented proposals for a fast track
change to the Financial Regulation for the separation of internal auditing from
financial control (in May 2000) and for the general recasting of the Financial
Regulation (in July 2000). The Commission adopted the charters of the Internal Audit
Service (IAS) and the Audit Progress Committee (APC) as well as a Communication
on the conditions for the setting up of Internal Audit Capabilities in all Commission
services in October 2000. The Commission adopted the charter of responsibilities for
authorising officers and the standards of internal control in December 2000.

2

Annex 2 shows an overview of the new management, control and audit structures in the Commission.

11

4.5.3. Main achievements since 1 March 2000

• The creation of a strong commitment of Commission management and staff to
meet the high standards fixed by the White Paper. To this end, Directorates
General were asked to go through a process of self-assessment of internal
controls – (80% of Commission’s senior management participated), redesign
financial circuits, and produce action plans to reinforce their management and
control capacity. In addition, all senior and middle managers with responsibility
for spending activities underwent training on the life cycle of expenditure. This
process is about to be completed and has significantly increased the awareness
of line management on responsibilities for both financial management and
control and had a positive effect on the administrative culture.

• The Central Financial Service (CFS) within DG Budget became operational in
the second half of 2000. It has since concentrated, inter-alia, on the facilitation
of internal control self-assessment in all DGs, the setting of standards for
internal control, and the provision of training (e.g. on internal control and risk
management).

• The Commission succeeded in establishing - within less than one year - a new
internal auditing system. The Internal Audit Service became operational and is
carrying out a review of the progress made by all Commission services in the
Reform. The Audit Progress Committee had its first meeting just before
Christmas and Internal Audit Capabilities have been created in all Commission
services although not all are yet operational.

4.6.

Reform of the Management of External Assistance

4.6.1.

Main points of this area of reform

The reform of the management of external assistance aims at achieving a radical
improvement in the speed of delivery and quality of external assistance. This is being
achieved through a review of a number of related aspects.

4.6.2.

Developments to date

The Commission adopted the Communication on the Reform of the Management of
External Assistance on the 16th of May. An Action Plan consisting of 53 actions was
annexed to the Communication. The reform is being implemented by a standing
Interservice Working Group (Groupe Interservice Permanent – GIP). Four sub-
working groups were also established, dealing with decentralisation of management
responsibilities to delegations, the Interservice Agreement, Human Resources and
comitology.

4.6.3.

Main achievements since the 1st of March 2000

In September 2000, as one of the main measures to improve the quality of
programming documents, the Interservice Quality Support Group was established
with a secretariat in DG Development. The Commission adopted the decision on the
creation of the EuropeAid Co-operation Office on the 29th of November 2000. The

12

office has been effective since the 1st of January 2001. The first meeting of the
office’s Board was held on the 1st of February, 2001. An Interservice Agreement,
defining the division of
responsibilities between DG External Relations, DG
Development and the EuropeAid Co-operation Office in the management of the
project cycle, was adopted on the 13th of December 2000. Finally, the Budgetary
Authority granted the Commission supplementary resources for implementing external
assistance programmes in the 2001 Budget.

5.

ANTICIPATED DEVELOPMENTS IN 2001

As a consequence of the substantial progress made thus far, 2001 will be a busy year
in terms of the implementation and consolidation of the Reform. To list all the
specific actions due to be taken during the course of the year would be somewhat
lengthy, but the following selected highlights give a flavour of on-going progress in
2001.

This will be a pivotal year for the reform of human resources policy. The Commission
will adopt key Communications in February and March and extensive consultation
with staff representatives will continue. All those reforms which do not necessitate
changes to the Staff Regulations e.g.
In
addition, the Commission will submit a single global package of modifications to the
Staff Regulations to the Inter-Institutional Staff Regulations’ Committee and then on
to the Council and Parliament by year-end. It is clear that for this most crucial pillar of
the Reform 2001 will represent a demanding timetable.

training policy, will be implemented.

The efficient use of resources will be enhanced by the completion of the first pilot
Strategic Planning and Programming cycle for the Commission’s annual policy
strategy for 2002. This will, for the first time, enable the Commission to devote the
resources needed to put into effect the priority policy areas it has identified, and which
will be contained in the Annual Policy Strategy decision due to be taken in February.
As part of its efforts to fully assess work presently being carried out by the Services
and the resources allocated, the Commission will continue to refine the necessary
tools and complete the task assignments and job descriptions exercise for all of its
staff. In line with the objective of improving delivery of external aid, the Commission
will devolve programme management responsibility to a first group of 23 Delegations
in partner countries.

Advances in the reform of financial management have been, to date, the most visible.
2001 will see further progress with the publication of an annual activity report by each
of the Commission’s Directorates General on the implementation of financial reform,
as well as the publication of the first annual Internal Audit Report by the recently
established Internal Audit Service which will review progress of the reform. Given
the important changes that are taking place in this sector, and the new methods being
introduced, the Commission intends to deliver more than ten thousand man-hours of
training to staff. To improve its ability to settle payments promptly, a Commission-
wide computer system for registering and monitoring all incoming invoices will be
introduced. DGs will launch a major initiative to implement the new internal control
standards and prepare for the move away from the centralised prior financial approval
system.

13

In order to pursue the accountability and transparency agenda, it is hoped that the
European Institutions will come to an agreement on the setting up of an Advisory
Group for Standards in Public Life, based on the Commission’s proposal. In addition,
2001 should see the adoption of the ‘Regulation on Public Access to European
Parliament, Council and Commission documents’ by the European Parliament and the
Council.

6.

ASSESSMENT OF OVERALL PROGRESS

The Commission can be satisfied with the progress made since the 1st March 2000
when the ‘Reforming the Commission’ White Paper was adopted.

The first year of implementation has been a challenging one. Staff at all levels have
had - in addition to their usual workload - to develop and embrace wide-ranging new
systems, while sometimes also having to continue to live within the ‘old’ ones.
Change has been a difficult, but a rewarding process. Overall, progress on the
ambitious Action Plan of 1st March 2000 has been substantial.

One of the Reform’s major objectives was a restructuring of the organisation in order
to allow the Commission to fulfil the role bestowed on it by Member States through
the treaties. In this respect, the first year of Reform has been highly productive.

In the first instance, the comprehensive assessment made by the Commission of its
current activities provided a clear vision of its mission and core activities and an
accurate picture of the resources it required. As a result of this Peer Group process, a
strategy for the reallocation of existing resources and the externalisation of certain
activities was drawn up and the Budgetary Authority has allocated additional
resources.
financial
the structures and systems put
management, control and internal audit have now been brought up to the highest
international standards of modern and effective management.

in place for

Secondly,

One year on, the Commission’s lead services have fully taken over the ownership of
the Reform both in terms of planning and implementation. Operational services have
also begun to take on board those aspects of the Reform which directly concern them.
In the financial field, a tangible change of culture has been achieved in the way that
the Community’s budget is managed. This year has seen the first experiment in the
development of the Annual Policy Strategy for 2002 in which the whole of the
organisation has been involved. Staff are also immersed in a comprehensive review of
the Commission’s human resources strategy.

That is not to say that the Commission has been able to implement every planned
reform action without delay or modification. Some target dates have had to be re-
assessed e.g. in the human resources field where timings were redefined in order to
maintain the coherence of the process, i.e. the necessary conceptual
‘grouping’ of
related activities such as appraisal and promotion. Some other activities had initially
been under-estimated in their complexity and necessitated a pilot run in order to
ensure optimal
implementation. Necessary consultation with end-users had also
sometimes taken up more time than initially planned which has - on occasion - had a
‘knock-on’ effect on connected activities e.g. the Charter for Authorising Officers.

14

Nevertheless the general timetable has been respected and none of these delays have
been caused by fundamental problems with the direction of Reform.

The White Paper also recognised that the ambitious timetable could not be achieved
without the whole-hearted commitment of staff at all levels and the full participation
of all European institutions. If the milestones of the first year of Reform have been
globally met, it is not least because of the genuine commitment of the Commission’s
staff to the new agenda and the support and co-operation of other European
Institutions. The ultimate benefit of this unprecedented project will be the restoration
of public confidence in a streamlined, professional public service which aspires to the
highest international standards of best practice.

15

Annex 1

Lead Service *

prepares draft proposal

for each individual
action

Task Force for
Administrative Reform

advice, contributions

WWHHOO DDOOEESS WWHHAATT IINN TTHHEE RREEFFOORRMM PPRROOCCEESSSS

Planning and Co-ordination Groups ***

technical validation, users involvement

Directors General

(ad hoc seminar/weekly meeting)

early information and feedback

Interservice Consultation

Task Force for

Administrative Reform

process co-ordination, monitoring

Reform Vice President

and/or

Commissioner

* The White Paper designates a lead service for each
action:

Lead Service *

College

prepares final proposal

Legend:

Action

Consultation/Approval

Decision

Group Commissioners
Reform

political direction

early endorsement

Lead Service/

Directorates General/

Staff

Lead Service

Reform Area

PCG

Secretariat General

PCG Externalisation

DG Administration

DG Budget

Activity-based
management

Activity-based
management

Externalisation

Externalisation

Human resources

Human resources

Financial reforms

Financial reforms

** for human resources issues

*** Where applicable

*

Consultation with

staff representatives **

**

Council, EP

16

Task Force Administration Reform

ANNEX 2

Overview of Management, Control and Audit Structures in the Commission

Audit

Audit Progress
Committee

Commission

OLAF

Directorates General

Director General

Internal
Audit
Service

Internal Audit
Capability

Activity-Based Management

DG Budget

Resource
allocation

Activity-Based
Budgeting

Evaluation

Evaluation Unit

Secretariat
General

Strategic
Planning and
Programming

DG Financial
Control

Financial
Control

Financial Unit

Actions implementation

Financial operations

Internal controls

On-the-spot controls

Ex-ante visa

Deconcentrated
Financial Controller

17

Operational
departments

Accountant

Central
Financial
Service

CCAM

Financial Management and Control

18