Communication from the Commission - Protecting the Communities' financial interests - Fight against fraud : Action Plan for 2001-2003
Date: 2001-05-15
Institutions: European Commission
Subjects: European Union, cooperation policy, financial control, fraud, public finance

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 15.5.2001
COM(2001)254 final

COMMUNICATION FROM THE COMMISSION

Protecting the Communities' financial interests

Fight against fraud

Action Plan for 2001-2003

COMMUNICATION FROM THE COMMISSION

Protecting the Communities' financial interests

Fight against fraud

Action Plan for 2001-2003

The Commission adopted a communication on an overall strategic approach for the
protection of the Communities' financial interests and the fight against fraud,1 which
identifies the major challenges which have to be successfully tackled in the next five
years (2001-2005). The strategic approach was presented by Ms Schreyer,
in
agreement with M. Vitorino, Commissioners, and adopted on 28 June 2000. It was
adopted by the Council (Ecofin) on 17 July and the guidelines have been approved by
Parliament.2 The communication involves all Commission departments in the
protection of the Communities' financial interests and sets out the priority measures
on which they must collaborate when the initiatives are launched or implemented.

In response to the challenges identified in the overall strategic approach, and without
prejudice to more specific initiatives in each Directorate-General or to the operational
tasks assigned to the European Anti-Fraud Office by the Commission and the
legislator, the Commission intends to implement a number of specific measures over
the next three years. This is the purpose of the action plan for 2001-2003, the first
working programme fully covered by this overall strategic approach. It sets out the
priority measures and initiatives to be implemented by Commission departments,
including the European Anti-Fraud Office in its non-operational role. Work under the
latter category will
include developing and preparing legislative and regulatory
initiatives on the protection of the Communities' financial interests and the fight
against fraud as a support for operational activity, in accordance with the Commission
Decision of 28 April 1999.3 The Office's activities as an independent operational
department will be laid down in a separate working programme for which its
Director-General is directly responsible and for which he will have to produce a
separate report.

* * *

As pointed out in the overall strategic approach adopted on 28 June,4 protecting the
Communities' financial
its
departments and of the other institutions and the Member States. This is reflected in
the action plan for 2001-2003, which lays down the priority measures to be
implemented in line with the broad guidelines defined by the multiannual strategic
approach:

interests is the business of the Commission and all

1

2

3

4

COM(2000) 358 final.
Parliament approved the guidelines presented in its Resolution of 13 December 2000.
See Article 2 of the Commission Decision of 28 April 1999 establishing the European
Anti-Fraud Office (OLAF), OJ L 136 of 31.5.1999.
Communication from the Commission, Protection of the Communities’ financial interests -
The fight against fraud - For an overall strategic approach (COM(2000) 358 final).

2

•

developing an overall anti-fraud policy: the approach is based on Article 280 of
the Treaty, which combines measures to prevent and combat fraud in order to
afford effective and equivalent protection throughout the Community. Emphasis is
placed here on the all-encompassing and multifaceted nature of the measures to be
adopted - primarily legislation - in order to cut off existing opportunities for fraud,
corruption and activities harmful to the Community’s financial interests.

• fostering a culture of cooperation between all the authorities responsible: the
strategic approach underlines the fact that effective action to protect financial
interests and combat fraud must rely on the full participation and concerted
commitment of the national and Community authorities on the ground. The
creation of OLAF has given the European Union a powerful instrument for the
protection of the Communities' financial interests. The Commission now wants to
optimise this instrument, structuring the exchange of information and putting in
place innovative methods of cooperation so that OLAF can fully discharge its
functions and, in particular, provide an overview at Community level.

• an inter-institutional approach to preventing and fighting fraud and corruption:
the aim is to make all Commission officials and beneficiaries aware of the ethical
aspects of financial management and to lay down guidelines to prevent any
conduct which might harm the Community's political, legal and financial interests.
The legislator also wanted OLAF to have independent powers of
internal
the institutions and bodies. The effectiveness and
investigation across all
consistency of those powers must be evaluated.

•

to criminal proceedings, but

strengthening the criminal law dimension: the most serious cases of wrongdoing
must be subject
there are still obstacles to be
surmounted here. To this end, the Commission plans to encourage the adaptation
of national criminal
law policies to the new Treaty obligations and the
development of a strategy based on close and regular cooperation with the judicial
authorities in the Member States and the various extra-Community bodies.

The four challenges set out above are in line with the dynamic of the May 1999
anti-fraud reform and the creation of the European Anti-Fraud Office (OLAF), in
response to the high priority attached by the institutions and the Member States to the
fight against economic and financial crime. This approach is based on the new
Article 280, as amended by the Treaty of Amsterdam, with due regard for the fact that
the Commission’s special responsibility in this regard is also closely linked with its
budget implementation tasks under Article 274 of the EC Treaty.

Article 280 also makes the Commission and the Member States mandatory partners in
the protection of financial
interests and the fight against fraud, accountable to
Parliament and the Council. The Community must fully apply this principle of shared
responsibility in its new anti-fraud policy: the Commission can do this by, at each
stage, drawing the consequences from the new involvement of different players in
Community policies.

Cooperation between all the competent authorities (cf. Part 2 of the Action Plan) is
therefore the key to an efficient mobilisation of forces. Part 2 of the Action Plan
explores modes of cooperation and suggests a working method. It proposes that these

3

authorities be involved from a very early stage - i.e. when the rules are drawn up -
right through to implementation and final evaluation. To achieve this, the Advisory
Committee for the Coordination of Fraud Prevention will serve as a forum for joint
discussion between the Commission and Member States’ experts. The Committee will
also have to offer support to the authorities responsible for implementation on the
ground and strengthen the judicial dimension of joint action. The Office, for its part,
must organise itself in such a way as to exploit the full potential of a true Community
platform of services: an instrument for planning, action on the ground and assistance
to national authorities.

The preventive measures, inspections and penalties which are presented first cannot
therefore be dissociated from the working methods described in the chapter on
cooperation between the competent authorities and assistance from OLAF. Nor can
they be set apart from the measures aimed at strengthening the criminal
law
dimension, which confirm the added value, from a strategic and operational point of
view, which OLAF can offer to the judicial and police authorities in the Member
States and the other extra-Community bodies.

The purpose of increasing participation within the platform of services, without
prejudice to the Commission’s own responsibilities, including the operational tasks
carried out by OLAF in total independence,
is to keep pace with the growing
interdependence within the Union, inter alia in the area of criminal activity, and with
the greater sharing of responsibilities with national bodies. The introduction of new
working methods - without abandoning common objectives - should give the
Community the resources to enrich the rule-making process and exercise its
responsibilities more effectively in the protection of the Communities’ financial
interests, including action on the ground.

Part 3 clarifies the mandate set out by the legislator as a priority for the European
Anti-Fraud Office, within the Commission and in the context of its functional
autonomy in relation to investigations.

The measures put forward in the Action Plan will be implemented in respect of
fundamental rights and obligations, in particular the right to privacy, in accordance
with the relevant provisions of Community law, especially Regulation 45/2001 of the
European Parliament and the Council of 18 December 2000 concerning the protection
of individuals with regard to the processing of personal data by Community
institutions and bodies and the free movement of such data.

A synoptic table of the measures listed above is annexed to the Action Plan.

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1.

A COMPREHENSIVE AND CONSISTENT POLICY TO COMBAT FRAUD

interests,

illegal activity harmful

The Commission will endeavour to develop an approach towards preventing and
combating fraud, corruption and any other
to the
in accordance with the Community’s and the
Communities’ financial
Member States’ obligation under Article 280 of the EC Treaty to afford effective and
equivalent protection throughout the Community. The prevention aspect requires all
the Commission's legislative and policy initiatives with financial implications to be
if necessary, by appropriate anti-fraud provisions. Steps should also be
accompanied,
taken to strengthen the legal instruments for detecting, controlling and penalising
fraud and irregularities.

1.1

A culture of prevention

1.1.1

Better fraud-proofing of legislation and administration

Illegal activities affecting the Communities'
interests often exploit
shortcomings in legislation, which offenders not only circumvent but also use for their
own ends. This well-known fact requires a change in working methods.

financial

• One basic means of spreading a culture of prevention would be for Commission
departments to draw on the experience of the Office and sectoral and horizontal
control departments early on in the preparation of legislation in highly sensitive
this legislation is likely to have an impact on the
sectors, especially if
Communities’ financial interests. On the basis of the guidelines identified in the
strategic approach, legislation will be submitted to a risk analysis to filter out
highly sensitive cases, particularly where there could be an impact on the
Community’s financial interests (“fraud-proofing”). This preliminary examination
should be an opportunity to analyse proposed measures with a view to assessing
their vulnerability and the potential risks with regard to the protection of financial
interests and the fight against fraud. The Commission will propose a flexible
mechanism for consultations with the specialised unit set up in OLAF ahead of the
interdepartmental consultation procedure and for guidance throughout
the
legislative process. This approach also forms part of the Commission's reform and
appears in the White Paper as Action 94.5

A communication will be presented by the end of June 2001 spelling out in detail
this field of activity.

1.1.2 Greater security for various key sectors

The prevention aspect of protecting the Communities’ financial interests is based on
risk analysis and targeted efforts to tighten up security in sectors vulnerable to
economic and financial crime.

5

COM(2000) 200 final/2 - Reforming the Commission - A White Paper - Part II - Action plan.

5

• Public procurement is one vulnerable sector where the Commission wants to
bolster preventive mechanisms, covering both its own activities and those of the
Member States.6 A proposal for a European Parliament and Council Directive7 has
therefore been adopted,
introducing a compulsory mechanism for excluding
tenderers who have been convicted of belonging to a criminal organisation,
corruption or fraud against the Communities' financial interests, and an optional
mechanism for ruling out economic operators who are "not reliable". In this
connection, awareness-boosting measures are envisaged amongst the personnel
(see part 3.1.2), and the development of computing tools is foreseen.

Under a special initiative to be introduced in November 2001, a system is to be set
up for exchanging information between Member States, allowing tenderers who
have been convicted of certain offences to be excluded from public contracts.8

• In preparation for

the

introduction of

the euro against counterfeiting.9 At

the new European currency on
1 January 2002, the Commission has presented a proposal for a Council Regulation
on the protection of
its meeting on
12 February 2001, Ecofin reached political agreement on this proposal, which
introduces an obligation to transmit forged notes and coins for identification,
provides for information exchange, cooperation and mutual assistance mechanisms
and the centralisation of information on cases of forgery at national level and
imposes certain obligations on credit institutions. Adoption of the regulation in the
second half of 2001 will enable cooperation to get under way between the
Member States, the Commission and the ECB, and with Europol through the
conclusion of cooperation protocols.10

The arrangements for technical cooperation with national administrations and
institutional partners will have to be concluded before the end of 2001, i.e. in good
time for the introduction of the euro at the beginning of 2002, in particular so that
transmitting forged notes and coins and centralising
the mechanisms for
information at both national and Community level are fully operational. The
Commission will present a multi-annual and multi-disciplinary programme of
training, exchanges and assistance for the protection of the euro in the first half of
2001.

• After the Financial Services Action Plan was adopted on 11 May 1999 (regular
the Commission adopted on 9 February 2001 a
progress reports are issued),
communication and action plan on preventing fraud and counterfeiting of

6

7

8

9

10

Note the work of the expert group on organised crime and public contracts, which involves the
Commission, the EIB and experts from the Member States.
Proposal for a Directive on the coordination of procedures for the award of public supply
contracts, public service contracts and public work contracts, COM (2000) 275 final,
30.8.2000.
Without prejudice to the rules on the protection of personal data.
COM (2000) 492 final, 26.7.2000.
A steering group was set up in early March 2001 to establish an interinstitutional action plan
involving Commission, the ECB and Europol on training, communication and coordination
with non-Community countries. The European Technical and Scientific Centre has now been
set up to examine forged notes.

6

non-cash means of payment.11 The communication is primarily addressed to the
payment card industry and calls for a partnership between card-holders, retailers,
infrastructure network providers and national and international authorities.

• Economic

crime

against

intellectual property (industrial,

agricultural or
commercial counterfeiting, Community trademark, piracy) helps sustain the
underground economy and frequently involves smuggling, resulting in the loss of
own resources. Where organised networks or channels are involved, cooperation
is required between the competent authorities and the relevant industries: such is
the aim of the Communication on combating counterfeiting and piracy in the
single market adopted on 30 November 2000,12 following the 1998 Green Paper.13
The Communication states that the Commission will put forward a proposal for a
Directive aimed at aligning Member States’ legislation as regards ways to ensure
the respect of intellectual property rights14. A proposal for a Regulation will be
considered, if necessary, in 2003 to define a framework for the exchange of
information and administrative cooperation between all the competent authorities
in the Member States and with the Commission.

1.1.3

Involving applicant countries in prevention

• A study conducted in 1997 together with an expert group took stock of the
compatibility of national judicial systems with Community offences, as defined in
the Corpus Juris. The national plans presented by the applicant countries are now
being analysed and will be the subject of a general report in September 2001.

creation

administrative

of multi-disciplinary

• Already at the pre-accession stage, the Commission will systematically prioritise
structures with wide
the
competencies in the applicant countries. Cooperation in the operational field
between these
structures and the Commission will be formalised through
administrative arrangements with OLAF. Furthermore, pre-accession financing
programmes will make it possible for the Court of Auditors and the Commission,
including OLAF,
to carry out anti-fraud on the spot checks. A system of
communication to the Commission, modelled on the SAPARD financial
memorandum, of irregularities discovered by the accession countries themselves
should be provided for as and when the new programmes are implemented.

1.1.4

Involving industry in a policy of transparency

The ability of criminal organisations to blend into the general background of
economic activity and pretend to be lawful firms or professionals makes it
difficult to gain an overall picture of criminal behaviour and identify criminal
structures. It is therefore essential that awareness be raised among the most

11

12

13

14

Communication from the Commission to the Council, the European Parliament, the European
Central Bank,
the Economic and Social Committee and Europol, Preventing fraud and
counterfeiting of non-cash means of payment, COM(2001) 11 final.
COM(2000) 789 final.
COM(1998) 569 final.
Complementing existing legislation concerning the actions of customs administrations, in
particular Council Regulation (EC) n° 3295/94 of 22.12.1994, as well as the conditions for
their intervention at the occasion of declarations or controls.

7

vulnerable economic sectors. The professions and industries concerned should be
encouraged to draw up their own internal rules, provided there is a system of
public control for penalising for any shortcomings in these self-regulation
arrangements. Between now and 2003, the Commission will assess the most
effective methodological approach, drawing on among other things the Charter of
27 July 1999 on action to combat organised crime.

1.2

Strengthening legal instruments for detecting, controlling and penalising
fraud

A coherent anti-fraud policy must include sophisticated instruments for detecting
fraud, checking operations and penalising irregularities and fraud harmful to the
Communities’ financial interests in an effective and targeted manner. This concerns
all
level. The Commission
therefore intends to reinforce detection methods and control measures.

interested parties, at both Community and national

1.2.1. Detection and control in the financial field, including at international level

• Administrative cooperation and mutual assistance in the field of indirect taxation
should lead to more effective prevention of indirect tax fraud.15 The Commission
has put forward a proposal for a directive, based on Article 95 of the EC Treaty,
on improving cooperation between Member States' administrative departments
responsible for recovering debts.16 This proposal has been the subject of a political
agreement by the Council in January 2001. However, given that the legal base
proposed by the Commission was changed by the Council, a new consultation of
the European Parliament has been engaged. The proposal could be adopted during
the first semester 2001.

A comparable effort has been made to improve the European Union’s capacity to
control and detect fraud in its relationship with partner countries.

• On 15 December 2000, the Council authorised the Commission to negotiate a
cooperation agreement with Switzerland to fight against fraud and other illegal
activities affecting the financial interests of the Communities, the Member States,
as well as Switzerland. The aim of this agreement
is to strengthen existing
conventions and protocols, in particular the agreement on mutual assistance in the
customs field (1997 protocol). Given the strong economic relations between the
Community and Switzerland, organised fraud and smuggling as well as other
illegal activities carried out from Swiss territory cause the Communities financial
losses estimated at several billion euros per year. This cooperation agreement with
Switzerland concerning the fight against fraud should, if possible, be concluded
before the end of 2001.

15

16

In 1980, Council directive 76/308/EEC on the recovery of debts resulting from operations in
the framework of the financing of the EAGGF, agricultural levies and customs duties was
extended to the recovery of amounts resulting from VAT excise fraud (OJ L 73 of 19.3.1976).
Proposal COM(1998) 364 final (OJ C 269 of 28.8.1998). Amended proposal of 7.5.1999
COM(1999)183 final, OJ C 179 of 24.6.1999).

8

1.2.2

Improving financial follow-up and penalties

• On 12 December 2000, a Commission communication emphasised the importance
of improving administrative and financial follow-up in cases of fraud, particularly
as regards the recovery of unduly paid funds (subsidies and advances).17 This was
a response to the priority identified in Action 96 of the White Paper on Reform18,
which recommends a review of the responsibilities for recovery of funds unduly
paid which are at present dispersed between various departments. A structure is to
be set up within OLAF to follow up cases of fraud and irregularities as soon as
they are pursued as a criminal matter, so that
the Commission can, where
appropriate, bring a civil action. This redefinition of tasks will have administrative
consequences: the departments concerned will take appropriate steps in 2001.

in order

respectively,

to provide a framework for

Other priorities set out in the White Paper will be translated into legislative and
administrative action in 2001-2003. Management of
the Structural Funds
two new Commission regulations19 on the
(Action 97) was the subject of
management and control systems and on the procedure for making financial
corrections
improved
management of the Structural Funds by the Member States. Furthermore, the
Commission has reinforced both the quality and the quantity of the level of audit
work being carried out by the Commission services in the Member States as
regards the Structural Funds20. In the context of these tighter controls on aid
interdepartmental
management systems and the effectiveness of procedures,
agreements are to be drawn up between OLAF and the DGs responsible for the
Structural Funds (Regional Affairs, Employment, Agriculture and Fisheries) with
regard to the follow-up of irregularities notified by the Member States under
Regulation No 1681/94. In particular, the aim of these protocols will be to clarify
the breakdown between the various departments of responsibility for the recovery
of amounts evaded through fraud or irregularities, and the role of OLAF.

The improved clearance of accounts procedure for the EAGGF (Action 98 of the
White Paper on Reform) is already partly in place. The Commission departments
have also begun work on revising the “black list” mechanism in the agricultural
sector: a proposal for a horizontal Regulation to extend the scope of Regulation No
1469/95 is envisaged for 2003.

In its communication on an overall strategic approach,21 the Commission also
stressed the need to supplement the provisions on administrative controls with a
system of administrative penalties designed to prevent irregularities and improve
compliance with Community rules, in accordance with the framework set up by
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the

Communication by Mrs Schreyer, COM(2000) 2204 final, 13.12.2000.
Reforming the Commission (COM(2000) 200 final/2 of 5.4.2000).
No 438/2001 of 2.3.2001 (OJ L63 03.03.2001) and No. 448/2001 of 2.3.2001 (OJ L64 of
6.3.2001)
A separate communication on all the measures adopted by the Commission in this context is
being prepared.
COM(2000) 358 final, 14.11.2000.

9

•

17

18

19

20

21

the European Communities'

interests22 and Council
protection of
Regulation (Euratom, EC) No 2185/96 concerning on-the-spot checks and
inspections.23 This ties in with the advisory role (fraud-proofing) reserved for
OLAF in the legislative process and in the field of contracts.

financial

As regards direct expenditure, the Commission is studying the conditions for
introducing the existing rules set out in Regulations Nos 2185/96, 1073/99 and
1074/99 in this field,24 and for implementing a “black list” mechanism for
contracts awarded by the Commission to economic agents, or indeed any contracts
where Community finance is involved. An initiative may be launched in 2001.

• The provisions on on-the-spot checks and verifications, which form the basis for
OLAF's involvement in investigations by the Member States in the various areas
of the Community budget, are still widely dispersed. While leaving existing
mechanisms25 intact, the Commission will carry out a comparative study of
existing bases to ascertain whether a single base should be established in order to
improve its consistency of action in cases where OLAF asks Member States to
check the regularity of certain operations and where it asks to participate in
inspections. This will also enable OLAF to be more effective and consistent in
following up the results of its investigations, in particular with regard to the rules
on confidentiality and data protection. A summary of this study will be made by
2003 to determine the mechanism best suited to ensure more effective cooperation
with the Member States.

2.

STRENGTHENING OPERATIONAL COOPERATION BETWEEN ALL COMPETENT
AUTHORITIES

The creation of OLAF has given the Community a powerful instrument for the
protection of financial interests, the fight against fraud, corruption and all other illegal
activities damaging to the Communities’ financial interests. In relation to the first
theme set out in the strategic approach, which is concerned primarily with the drafting
of legislative and regulatory initiatives, OLAF can help organise and structure the
flow of operational, legal and statistical information without which no Community
overview can emerge. The key to the success of this exercise in introducing greater
subsidiarity to Community initiatives lies in better use of the available information
and in the definition of innovative working methods with the players on the ground
both within the Commission and throughout the Union. OLAF must therefore adapt

22

23

24

25

Council Regulation (EC, Euratom) No 2988/95 of 18.12.1995 (OJ L312 of 23.12.1995) on the
Protection of the Communities’ financial interests.
Council Regulation (Euratom, EC) No 2185/96 of 11.11.1996 (OJ L 292 of 15.11.1996)
concerning on-the-spot checks and inspections carried out by the Commission in order to
protect the financial interests of the Communities against fraud and other irregularities.
Regulation (EC) No 1073/99 of the European Parliament and of the Council and Council
Regulation (Euratom) No 1074/99 of 25 May 1999 concerning investigations conducted by
the European Anti-Fraud office (OJ L 136 of 31.5.1999).
In particular Regulations No 1150/2000, 2185/1996, 515/1997, 515/1991, 1258/1999,
4253/1988 and 1260/1999.

10

its structure to create a service able to offer expertise and operational support to the
national authorities and to devise new forms of cooperation.

2.1 Establishing a Community platform of services

The purpose of such a structure is to collect, exploit and make available to national
administrations and all Commission departments information gathered on the ground
relating to the protection of financial interests and fraud prevention.

2.1.1

Rationalising and improving common working structures

• The key to effective action in protecting financial interests lies in synergy between
existing capabilities for detection and analysis at Community level and the
capabilities of national administrations and Community and international bodies.

The Commission has begun to look at the type of services it can offer to the
Member States to ensure a “close and regular cooperation” with the competent
authorities. Information supplied by the Member States must be used in a
systematic and structured way, in some cases even for purely legislative activity.
And besides operational information, the Commission must make the existing
expertise and legal capabilities available to all parties involved in protecting
financial interests and combating fraud. The Commission also has statistical data
of interest to both the Member States and its own departments, which could be
used not only for risk analysis but also for formulating and defining coordinated
policies and strategies. This existing capacity for legal analysis and advice must be
put
in
investigations by national and Community administrations.

to better use both internally and externally, among other

things

The Commission will follow up this exhaustive inventory of the services it can
offer - to be carried out in 2001 - with a study of the Member States' own
capacities and the scope for adapting administrative structures to optimise
synergies in 2002.

• Following this

study,

the Commission,

together with experts

from the
Member States, will carry out a joint analysis of existing coordination structures in
the course of 2001. The Advisory Committee for the Coordination of Fraud
Prevention (COCOLAF) is a body which supplies advice and expertise on the
protection of financial interests to the Commission. It has attached to it a number
of working parties and structures for operational cooperation, all of which must be
more closely involved. This means enhancing COCOLAF's role as a horizontal
working group dealing with all aspects of the protection of financial interests and
fraud prevention. The aim is to develop closer cooperation in order to draw on the
experiences of those working on the ground at local, national and Community level
and to pass on information, once it has been exploited and analysed.

In redefining COCOLAF's internal working methods, special account must be
taken of the latest amendment to Article 280 of the Treaty, paragraph 5 of which
now implies that the Commission, in cooperation with national experts, must report
on the measures taken by national administrations to protect financial interests and
prevent fraud. To this end, thought will be given to how best to report on action

11

taken by national authorities and how to gradually develop comparative
instruments and indicators to help Member States evaluate their priority measures,
the progress made and any shortcomings in the action they take. Furthermore, the
Commission Decision of 23 February 1994 setting up COCOLAF will be updated
in early 2002.

2.1.2

Improved use and analysis of intelligence

• The Office can give national authorities and other Commission departments an
overview at Community level, provided that better use is made of the available
information. The Commission is a party to numerous cooperation agreements or
agreements concerning the exchange of administrative information, in particular
customs information, including at the international level. This applies both to
OLAF's investigation activities and to its role in drafting and preparing legislative
and regulatory initiatives on the protection of financial interests and the fight
against fraud.

The effort will focus on disseminating the information collected by operational
departments, external bodies responsible for police and justice matters and national
administrations by extending the various existing exchange systems.

• The possibilities for synergy between the Commission and other external organs
must be explored. The Commission takes part, on behalf of the European Union, in
Interpol meetings. It cooperates with the Member States in a number of working
groups of the Council. Structured relations must be established in 2002/2003 with
organs such as Eurojust, Europol and Interpol…

2.2

Developing the partnership with Member States and third countries

Effective action against organised crime, particularly transnational organised crime,
affecting Community interests linked to those concerned by the fight against fraud or
corruption is not possible in the absence of a strategy of cooperation and mutual
information between all public partners.26 To combat
the
European Union must take coordinated action against economic and financial crime
(including fraud, counterfeiting of money, corruption and money laundering) which is
either at its source (tax evasion) or is derived from it (laundering of the proceeds of
crime).

international crime,

2.2.1

Reinforcing cooperation to prevent money laundering and tax fraud

•

26

In accordance with its work programme, the Commission is preparing a proposal
for a European Parliament and Council Regulation intended to improve existing
mechanisms on mutual assistance and exchange of information on the protection
of financial interests from fraudulent activities, including VAT fraud and money
laundering. Efforts to crack down on the laundering of capital, i.e. the profits from

In October 1999 the Tampere European Council
comprehensive approach in the fight against all forms of [transnational] crime".

recommended "an efficient and

12

diverse illegal activities detrimental to the Communities’ financial interests, is a
priority for the Community.27 This initiative seeks to establish a mechanism for
mutual information, for example with regard to money laundering, on suspect
transactions that have a Community dimension,28 with a view to increasing the
potential for intelligence and information on the original illegal activities. The
proposal should be adopted by mid-2001 so that the Council can begin looking at
it in the second half of the year.

• The Commission plans to present a proposal, based on article 95 of the EC Treaty,
for a European Parliament and Council Regulation amending Council Regulation
(EEC) No 218/92 on administrative cooperation in the field of indirect taxation
(VAT).29 One of the aims is to replace the existing legal framework (Regulation
218/92 and Directive 77/799) with a single regulation ensuring the smooth
operation of the single market. Similar steps will be taken in 2001 with regard to
excise duties.

2.2.2

A policy of evaluation and forward planning

• A policy of ongoing evaluation of progress must be put in place. Following the
introduction of the new Article 280 of the EC Treaty, the measures taken by the
Member States to implement
that article will be presented in the annual
Commission report on the protection of financial interests and the fight against
fraud. The report for 2000, to be adopted in mid-2001, will include an inventory
of new measures adopted by the Member States in 1999 and 2000, drawn up on
the basis of a questionnaire covering new legislative and organisational measures
under the first and third pillars.

• An evaluation of OLAF's operational activities is also planned. OLAF's second
report under Article 12 of Council Regulation No 1073/1999, to be prepared
during the second half of 2001 following the opinion of the Supervisory
Committee30, will report on progress on the internal organisation of investigations
and operational cooperation with national administrations.

• Under Article 15 of Council Regulations Nos 1073/1999 and 1074/99,31 OLAF's
activities must be evaluated during the third year following entry into force of the
Regulations. The relevant Commission report, accompanied by the opinion of the
Supervisory Committee and, where appropriate, proposals to modify or extend
OLAF's tasks, will be adopted during the second half of 2002.

27

28

29

30

31

See the Commission proposal of 14 July 1999 to update Directive 91/308/EEC on prevention
of the use of the financial system for the purpose of money laundering. In its common position
of 30 November 2000, the Council provides, in addition, for obligations on credit institutions
and various non-financial activities and professions vulnerable to laundering (SEC(2001) 12
final).
As a complement to Articles 1(e) and 7.1 and 7.2 of the Second Protocol of 19.6.1997 to the
Convention on the protection of financial interests.
COM(2000) 349 final, 7.6.2000.
OLAF's Supervisory Committee is kept
the Office's activities,
investigations, findings and the action taken on them. A specific report should be adopted in
October 2001, in accordance with Article 11 of Council Regulation No 1073/1999.
Regulations
investigations conducted by the European Anti-Fraud Office (OJ L 136 of 31.5.1999).

(EC) No 1073/99 and Regulation (Euratom) No 1074/99 concerning

regularly informed of

13

3.

THE FIGHT AGAINST FRAUD AND OTHER ILLEGAL ACTIVITIES WITHIN THE
INSTITUTIONS

The fight against fraud, corruption, money laundering and other illegal activities is an
interinstitutional effort. When acting as an internal investigation service, OLAF's task
is not to investigate systematically but to process the information supplied to it. The
reform of disciplinary procedures proposed in the White Paper on Reform,
in
particular clarification of the rules and obligations laid down in the Staff Regulations,
will make it possible to take just and effective action in response to internal
investigations. Cooperation with the future Investigation and Disciplinary Office
(IDO) within the framework of
for Personnel and
Administration will be an important element to attain this objective.

the Directorate-General

3.1

Raising awareness among Community staff of the principles of sound
project management

3.1.1

Better coordination between OLAF and other departments

• Under Action 93 of the White Paper on Reform, better coordination and
cooperation between the Commission departments is needed in order to combat
fraud and corruption. The first step in establishing regular,
irregularities,
institutionalised relations between OLAF,
the Central Financial Service and
specialist financial departments (authorising officers and managers), subject to the
relevant confidentiality requirements, will be to identify the services which OLAF
is able to offer and to list the information available. This will be done by the end
of 2001 before work begins on defining cooperation agreements. A cooperation
agreement should also be concluded between the Office and the future
Investigation and Disciplinary Office.

3.1.2

Guidelines on sound financial management

• The White Paper on Reform (Action 92) stressed the importance to the
Commission of adopting guidelines on criteria for sound financial management
during the life-cycle of programmes and projects, from their conception to
evaluation of the final results.

In cooperation with the Administrative Reform Task Force32, the Internal Audit
Service, DG Budget, the Secretariat General, the Legal Service and DG Admin,
OLAF is preparing a draft communication for adoption by the end of 2001 which
will include guidelines on sound financial management and a training plan on
the protection of financial interests for staff involved in programme preparation
and financial management. The various Codes of Conduct adopted by the
European Commission since 16 September 1999 will be supplemented using
these ideas on criteria for sound management by the end of 2002.

• To make Action 92 more effective, the guidelines on sound financial management
need to be strengthened before the end of 2002 by including a list of types of

32

Or the Directorate General for Personnel and Administration after the Task force’s mandate
has expired, on 17 September 2001.

14

behaviour which can lead, at certain stages of the life-cycle of programmes and
projects, to non-intentional errors, conflicts of interest or irregularities.33

3.2

More effective internal investigations

3.2.1

Reforming disciplinary procedures

The legislator intended OLAF to have an independent power to conduct internal
investigations in all the institutions and bodies.34 This task is linked to the reform of
the Staff Regulations of Officials and the Conditions of Employment of Other
Servants of the European Communities with regard to disciplinary action and the
rights of defence, as set out in the White Paper on Reform, to be presented to the
Council at the end of 2001.35 In this context, the European Anti-fraud Office, which
does not have a mandate to carry out systematic controls, will act principally on the
basis of referral of cases made to it by the Appointing Authority but also using any
information supplied by the members and staff of the institutions, fulfilling their duty
of loyalty. The Office will decide on a case-by-case basis whether or not to open a
file, after examining carefully the information supplied. As far as investigations are
concerned,
it will be necessary to increase cooperation and to establish a clear
separation of functions between OLAF and the future Investigation and Disciplinary
Office.

3.2.2

Improving the effectiveness and consistency of internal investigations

There must be regular follow-up of investigative activities in order to take on board
observations by Parliament and by the Office’s Supervisory Committee. The findings
will be set out at the end of 2002 in the framework of the Commission report on the
Office’s activities provided for under Article 15 of Council Regulations No 1073/99
and 1074/1999.

4.

STRENGTHENING THE CRIMINAL JUDICIAL DIMENSION

In order to strengthen the criminal justice dimension of protection against illegal
activities harming the Communities’ financial interests, the Commission must take
initiatives targeted at the specific nature and requirements of action to prevent and
combat these types of crime “against Europe”.

33

34

35

Chapter XX of the Reform Action Plan (doc. COM(2000)200/2 final of 05.04.2000 and the
consultative document of 28 November 2000 (doc. SEC (2000) 2079/5).
Council Regulation (EC) No 1073/1999 of 25 May 1999 concerning internal investigations by
the European Anti-Fraud Office (OJ L136, 31.05.1999).
Without prejudice to the work of the Investigations and Disciplinary Office, which is designed
to establish a permanent
team responsible for investigations into cases of professional
misconduct and to speed up inquiries.

15

But it must also take full advantage of the European area of freedom, security and
justice provided for in the Amsterdam Treaty and put into tangible form in the
conclusions of the Tampere European Council in October 1999. The Commission can
take horizontal initiatives on judicial cooperation in criminal matters and make a
significant contribution to Member States’ efforts. The Commission may also use
these initiatives to tighten up the protection of the Communities’ financial interests.

4.1

Follow-up to the Commission communication on criminal-law protection
of the Community’s financial interests

• In the context of the 2000 Intergovernmental Conference,

the Commission
proposed enhancing protection of the Community’s financial interests by adding a
new Article 280bis to the EC Treaty, establishing a European public prosecutor.36
The proposal was not taken up at the Nice European Council. The Commission
will relaunch discussion of its proposal on establishing a European public
prosecutor in the form of a Green Paper to be adopted by the end of 2001, with a
view to having it reconsidered, on the basis of the results of these discussions, at
the next Intergovernmental Conference.37

The aim is to have as broad a consultation as possible throughout 2002 on the
powers and operation of a public prosecutor competent for internal and external
investigations relating to the protection of the Communities’ financial interests.
The Green Paper would further the Commission’s reflections, while taking into
account the detailed preliminary study conducted, inter alia, with the Corpus Juris
researchers for several years now. The Green Paper should be presented by the
Commission in view of the Laeken European Council of December 2001.

• The legal and judicial framework for the protection of the European Union’s
interests is suffering considerably from delays in Member States’
financial
ratification of the Convention of 26 July 1995 on the protection of the European
Communities' financial interests and its additional protocols.38 The Commission
will therefore table a proposal for a Directive seeking adoption under Article 280
EC of certain provisions contained in third pillar instruments. Such an instrument
would inter alia make it possible for the convergence of the Member States’
material penal law concerning fraud, corruption and money laundering detrimental
to the Community’s financial interests to be speeded up, and for activity in this
area to be enhanced.

4.2

Improving cooperation and facilities for action in criminal matters

regard for
Closer cooperation between the competent authorities, with full
fundamental rights, is a vital factor in establishing an area of freedom, security and

36

37

38

Additional Commission contribution (COM(2000) 608 final of 29.9.2000).
See point 20 of the Parliament resolution of 13.12.2000, adopted by a majority of its members,
and its resolution of 14.3.2001 on the Commission’s annual report for 1999.
See for example point 10 of the conclusions of the Ecofin Council of 17 July 2000, which
once more calls on the Member States which have not done so to ratify the 1995 Convention
and the protocols that go with it. At the end of February 2001, five Member States had still to
notify ratification of the Convention.

16

justice. The Union adopts a nuanced approach to judicial cooperation in criminal
matters, which is designed among other things to simplify procedures for judicial
assistance and letters rogatory and to improve the coordination of prosecutions and
the mutual recognition of decisions. Other initiatives on cooperation between police
services are also in the pipeline.

• The Convention of 29 May 200039 on judicial cooperation in criminal matters will
be a vital tool for the simplification of judicial assistance procedures. Once it has
been ratified by all the Member States, direct contact between the different judicial
authorities will be established as a general principle. Letters rogatory will be
executed more rapidly and using simpler procedures, with due respect for national
rules on the admissibility of evidence. Judicial authorities will also be able to use
modern communication methods such as videoconferencing etc. The Commission
is at present taking an active part in negotiations on a draft protocol to the
Convention on improving judicial assistance with regard to bank accounts and
banking transactions.

• To facilitate and speed up cooperation and coordination between judicial
authorities, the Tampere European Council agreed to set up a European unit for
judicial cooperation (Eurojust), which features in the Nice Treaty, before the end
of 2001 (see point 46 of its conclusions). Eurojust will comprise national
prosecutors, magistrates or police officers with equivalent powers seconded from
the Member States, essentially responsible for improving coordination between
national judicial authorities and operational judicial cooperation in cases of serious
transnational crime, particularly organised crime. Negotiations are still under way
in the Council on the decision concerning the creation of Eurojust, but the Council
has already set up, by decision of 14 December 2000, the provisional judicial
cooperation unit (Pro-Eurojust), 40 which took up its duties on 1 March 2001. Its
role is to help coordinate prosecutions and set up the future Eurojust unit proper.

In the Council negotiations and through its involvement
in the work of the
provisional unit, the Commission is striving to make Eurojust as effective as
possible, in line with its proposals in the Communication of 22 November 2000.41
More specifically, with regard to the protection of the Communities’ financial
interests, it is important to ensure a dovetailing of the roles of Eurojust and the
pool of magistrates in OLAF working on judicial cooperation in criminal matters
and to provide for close cooperation between these two bodies, on the basis of a
structured relationship to be in place by the end of 2002.

• With the adoption of the Second Protocol to the Convention on the protection of
the European Communities' financial interests of 19 June 199742, the Council

39

40

41

42

OJ C 197, 12.7.2000.
Set up by Joint Action 98/428/JHA, adopted by the Council on 29 June 1998. See the new
Article 31 TEU, as amended by the Treaty of Nice.
COM(2000) 746 final.
Explanatory Report on the Second Protocol to the Convention on the protection of the
European Communities' financial
interests (OJ C 91, 31.3.1999); see article 6 of the
Convention of 26 July 1995, which lays down both the Member States’ obligation to
cooperate in enquiries and judicial actions and their primary responsibility.

17

decided to introduce penalties for legal persons responsible for fraud, corruption or
money laundering and to develop a structure for cooperation between the
Commission and the Member-States for the purpose of combating these types of
crime affecting the Community’s financial interests and the money laundering that
goes with them. In particular, Article 7 of the Second Protocol specifies the
additional action that can be taken by the Commission (technical or operational
assistance). This assistance forms part of a package of anti-fraud measures to
counter criminal offences with a Community dimension (i.e. where the interests
affected or the evidence are spread across the Union or beyond, or where a
criminal organisation is involved, etc.).

The Commission will set out to define in more detail the nature of the assistance it
can provide to judicial authorities and the rules governing that assistance. It will
endeavour, in 2001, to produce a “judicial cooperation and assistance handbook”
specifying where the Commission and OLAF fit into this context and what role
they are to play.

• The mutual recognition of court decisions in criminal matters will also do a great
deal to facilitate judicial cooperation. The concept of mutual recognition is spelled
out in the Commission's Communication of 26 July 2000.43 In the programme of
measures designed to implement this principle for criminal-law decisions by the
end of 2002,44 the Commission and the Council announced a series of ambitious
measures including proposals for legal instruments on a European arrest warrant
and on pre-trial orders in investigations into computer crime, and a communication
on determining criteria for jurisdiction in criminal matters. Pilot projects are under
way on the freezing of assets and the enforcement of fines.

• On the question of police cooperation, both the Amsterdam Treaty and the
Tampere European Council envisage in particular a strengthening of Europol. The
Council has already extended Europol's mandate to cover the laundering of money
regardless of
its origin (by an Act adopted on 30 November 2000), and
negotiations are under way on the possibility of extending its sphere of
responsibility to cover all forms of crime, including fraud and corruption. The
Commission actively supports the extension of Europol's powers in all domains
relating to the fight against organised crime. As regards the protection of financial
interests, efficient cooperation between the Commission (OLAF) and Europol will
develop on the basis of structured relations which will ensure that their respective
roles and responsibilities complement each other.

* * *

The Commission’s 2001-2003 Action Plan follows on directly from the overall
strategic approach to the protection of financial interests and the fight against fraud,
adopted in July 2000. It sets out to make an effective contribution to the new
obligations on Member States and the European Community to achieve results,
arising from the new Article 280 of the EC Treaty. The various measures presented

43

44

COM(2000) 495 final.
OJ C 12, 15.1.2001,
30 November 2000.

adopted by the Council

(Justice

and Home Affairs) on

18

the institutional challenge of revitalising the processes of
are designed to meet
drafting and implementing the Communities’ policy rules that are shared between
different tiers of responsibility.

19

Protecting the Communities' financial interests

Fight against fraud

Action Plan for 2001-2003

20

OBJECTIVES MEASURES

LEAD DEPT.45

2001

2002

2003

1st half

2nd half

1st half

2nd half

1. A COMPREHENSIVE ANTI-FRAUD POLICY FOR LEGISLATION

1.1 Fostering a culture of prevention and tightening up legal texts

1.1.1.
Fraud-proofing
legislation and
contract
management

1.1.2. Greater
security for key
sectors

Preliminary
analysis of certain
new legislative
initiatives (Action
94 of the White
Paper on Reform)

Development of
information system
allowing the
exclusion of
tenderers who have
been convicted
(Action 94)

OLAF, Task
Force on
Reform46

Commission
communication

Implementation
at departmental
level

First
assessment

MARKT,
OLAF, BUDG,
JHA

(pm) Directive
submitted to the
Council

OLAF, MARKT

Proposal
(information
exchange)

45

46

Lead department, followed by associated departments.
See footnote n° 32.

21

OBJECTIVES MEASURES

LEAD DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

Protection of the
euro against
counterfeiting:
closer cooperation
between the
Member States, the
Commission, the
ECB and Europol

Training, exchange
and assistance
programme

Setting up and
developing the role
of the European
Scientific and
Technical
European Centre
for the protection
of the euro

Prevention of fraud
and of
counterfeiting of
non-cash payments

OLAF, ECFIN,
JHA, SJ, ECB,
EUROPOL

Agreement in
the Council
(Ecofin) on
12.2.2001
(guidelines)

Regulation

OLAF, ECFIN

Commission
Communication

Training activities

OLAF, ECFIN

Start-up

Development
of structure

MARKT, JHA

Commission
communication
of 19.1.2001

22

OBJECTIVES MEASURES

LEAD DEPT.

2001

2002

2003

Action to combat
piracy and
counterfeiting:
implementation of
Green Paper

MARKT,
OLAF, BUDG,
TAXUD, JHA

Framework for
cooperation and
information
exchange

OLAF,
MARKT,
BUDG,
TAXUD

ELAR, OLAF,
BUDG

OLAF , JHA

1.1.3. Involving
the applicant
countries in
fraud prevention

1.1.4. Involving
trade circles in
prevention

Creation of "anti-
fraud" structures
inside the candidate
countries,
reinforcement of
controls

Awareness-raising,
using as a model
the Charter of
27.7.1999 on action
to combat
organised crime

1st half

2nd half

1st half

2nd half

Proposal for a
Directive

Anti-fraud provisions (adaptation of various financing programmes)

Proposal for
a
Regulation
(stepping up
coopera-
tion with
the Member
States)

Feasibility
study

23

OBJECTIVES MEASURES

LEAD DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

1.2. Strengthening legal instruments for detecting, monitoring and penalising fraud

1.2.1. Improving
detection and
control in the
financial field,
including at
international
level

Computerised
tracking of the
movement and
inspection of
products subject to
indirect taxation

Conclusion of a
cooperation
agreement with
Switzerland
covering anti-fraud
measures

TAXUD

Proposal for a Directive
(Article 95 EC)

OLAF, RELEX Contacts with the Swiss authorities

Proposal for a Council
Decision

24

OBJECTIVES MEASURES

LEAD DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

1.2.2. Improving
financial follow-
up and penalties

Implementation of
the Communication
of 12.12.2000 on
the recovery of
funds (Actions 96,
97 et 98)

BUDG, OLAF,
ADMIN, AGRI,
REGIO, EMPL,
RELEX, SJ,
MCG47

Draft
Communica-tion
Action 97

Study on the
responsibilities
of departments
involved in
recovery

Interdepartmental protocols

Implementation and follow-up

Proposal for
a
Regulation
on the
"black list"
mechanism
in EAGGF
Guarantee
Section

OLAF, INFSO,
RTD, other
departments

"Direct
expenditure"
initiative

Integration of
administrative
measures and
penalties in the
field of direct
expenditure

47

Monitoring and Coordination Group for Reform Actions 92-98.

25

Harmonisation of
on-the-spot
inspection
arrangements

OLAF, other
departments

Comparative
study of legal
bases

Proposal for
a Council
Regulation

26

OBJECTIVES MEASURES

LEAD
DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

2. A NEW CULTURE OF COOPERATION

2.1. Establishing a Community platform of services

2.1.1.
Rationalising and
making better use
of cooperation
structures

Analysis of
services which
Commission/OL
AF can offer to
the institutions
and to the
Member States,
evaluation of
possible synergies

Strengthening
current
coordination
structures

OLAF

Inventory of services which
Commission/OLAF can offer

Feasibility study on the
organisation of the platform of
services

Start-up

OLAF

Evaluation

Amendment of
Decision
creating
COCOLAF

27

2001

2002

2003

1st half

2nd half

1st half

2nd half

Cooperation protocol

LEAD
DEPT.

OLAF

OBJECTIVES

MEASURES

2.1.2. Widening
the scope of
information-
gathering,
improving use
and analysis of
intelligence

Evaluation of
possible synergy
with national or
external anti-
fraud bodies
(Eurojust,
Europol, Interpol,
etc.)

Structure relations
with Eurojust,
Europol, Interpol

OLAF,
JHA,other
bodies

2.2. Developing a closer partnership with Member States and non-Community countries

OLAF,
TAXUD,
MARKT,
JHA

Proposal for a
Regulation Article
280

2.2.1.
Reinforcement of
cooperation to
prevent and
combat money
laundering and
VAT fraud

Money
laundering, VAT:
assistance and
mutual
information
between the
Commission and
Member States on
suspicious
transactions

28

Define synergies

Implementa
tion of
cooperation
and
exchange of
information

OBJECTIVES

MEASURES

2.2.2. A policy of
evaluation and
forward planning

Administrative
cooperation
between the
Member States
and mutual
assistance

Inventory of
national measures
taken by Member
States in 1999-
2000

Annual evaluation
of OLAF’s
operational
activities (Articles
11 and 12 of
Regulations No
1073/1999 and
1074/1999)

Definition of the
Office's strategic
objectives

LEAD
DEPT.

TAXUD

OLAF

2001

2002

2003

1st half

2nd half

1st half

2nd half

Draft Regulation
(Article 95 CE)

Annual report on
protection of
financial interests
under Article
280(5)

Report
(Article 280 EC)

Report
(Article 280
EC)

OLAF

Office report

Office report Office
report

OLAF

Office action
plan

Office
action plan

29

LEAD
DEPT.

OLAF

OBJECTIVES

MEASURES

Evaluation of the
Office’s
activities,
pursuant to
Article 15 of
Regulations No
1073/1999 and
1074/1999

2001

2002

2003

1st half

2nd half

1st half

2nd half

Commission
Report

Further
action

Opinion of
the
Supervisory
Committee

3. AN INTERINSTITUTIONAL APPROACH TO PREVENT AND COMBAT CORRUPTION

3.1. Raising awareness among officials of the institutions of the principles of sound project management

3.1.1 Improving
coordination and
cooperation
between OLAF
and other
Commission
departments
(Action 93)

Conclusion of
memoranda
between OLAF
and the
specialised
financial
departments

OLAF, IAS,
SG, CFS,
ADMIN
(IDO), other
departments

Definition of
the services to
be offered

Negotiation of
memoranda

Implementa
tion

30

OBJECTIVES

MEASURES

Training plan,
codes of conduct

3.1.2. Drawing up
guidelines for
sound financial
management
(Action 92)

Typology of high-
risk behaviour

LEAD
DEPT.

OLAF, Task
Force on
Reform48,
IAS, BUDG,
ADMIN, SG

ADMIN,
Task Force
on Reform49,
OLAF,
AUDIT,
BUDG, SG

2001

2002

2003

1st half

2nd half

1st half

2nd half

Communica-
tion

Criteria for
sound
management

Implementa
tion by
departments

Guide

48

49

See footnote n° 32.
See footnote n° 32.

31

OBJECTIVES

MEASURES

LEAD
DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

3.2. Improving the legal framework for administrative investigations

Commission
Decision

ADMIN
(IDO), Task
Force on
Reform50,
OLAF, SG

OLAF

3.2.1. Reforming
disciplinary
procedures
(Actions 57 and
58)

3.2.2. Improving
the effectiveness
and consistency
of administrative
investigations

Adjustment of
administrative
practices,
amendment of
rules and
disciplinary
obligations laid
down in the Staff
Regulations

Analysis of
conditions of
implementation of
Article 4 of
Regulation No
1073/99 in
Community
institutions and
bodies

50

See footnote n° 32.

32

Further
action

Report under
Article 15 of
Regulations
No 1073/1999
and 1074/1999

OBJECTIVES

MEASURES

LEAD DEPT.

2001

2002

2003

4. STRENGTHENING THE CRIMINAL-LAW DIMENSION

4.1. Following up the Commission communication on criminal-law protection of the Communities' financial
interests

1st half

2nd half

1st half

2nd half

Reviving the
debate on the
criminal-law
protection of
financial interests

Speeding up the
entry into force of
legal protection
in criminal
matters

Ongoing
discussions on the
detailed
arrangements for
introducing a
European public
prosecutor in
relation to the
protection of
financial interests

Implementation
of certain
provisions of the
Conventions on
the protection of
financial interests
on the basis of
new Article 280
EC

OLAF, JHA

Green paper

Consultations,
report

Public
hearing and
follow-up
report

OLAF

Proposal for a
Directive

33

34

OBJECTIVES

MEASURES

LEAD DEPT.

2001

2002

2003

4.2. Stepping up cooperation and facilities for action in criminal matters

1st half

2nd half

1st half

2nd half

Simplifying
judicial
assistance
procedures

Follow-up to
Commission
Communication
on the creation of
Eurojust

Establishment of
a European
judicial
cooperation unit

JHA/OLAF

Draft protocol to the Convention
of 29 May 2000

JHA/OLAF

Establishment of a provisional unit

Adoption of permanent
“Eurojust” mechanism

Search for synergies between
Eurojust and pool of
magistrates

35

OBJECTIVES

MEASURES

LEAD DEPT.

2001

2002

2003

1st half

2nd half

1st half

2nd half

OLAF

Analysis of technical and
operational assistance from OLAF
to judicial authorities

Guide on best practice in
judicial cooperation and
assistance

JHA / OLAF

Programme of implementing measures

Stepping up
cooperation in
criminal matters
for the criminal-
law protection of
financial interests

Vertical
cooperation with
the Member
States in
combating crime
affecting the
Communities'
financial interests

Mutual
recognition of
decisions in
criminal matters

Cooperation in
police matters

OLAF/JHA/
Europol

Closer cooperation with Europol
in combating illegal activities
related to the protection of
financial interests

36