Proposal for a Council Decision concerning the Community position within the Association Council on the participation of Slovenia in the Community programme Fiscalis
Date: 2001-08-02
Institutions: European Commission
Subjects: EU programme, Slovenia, action programme, association agreement (EU), indirect tax, tax system

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 2.8.2001
COM(2001) 458 final

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Slovenia in the Community programme Fiscalis

(presented by the Commission)

EXPLANATORY MEMORANDUM

1.

Introduction

In line with Article 7 of the European Parliament and Council Decision 888/98/EC1, the
existing Fiscalis programme may be opened to the candidate countries of Central and Eastern
Europe (CEECs) and Cyprus. No mention is made of Malta and Turkey in this provision.

Previously, the European Council, at its meeting in Luxembourg (December 1997), stressed
the importance of the participation of candidate countries in Community programmes in the
context of the pre-accession strategy, as a means to familiarise them with Community
working methods and procedures. The Helsinki European Council of December 1999
confirmed the enlargement process launched in Luxembourg. The enhanced Pre-Accession
Strategy defined in 1997 has been reiterated, which includes the participation of the
13 candidate States in Community programmes as an important part of such strategy.

As regards the ten candidate countries of Central and Eastern Europe (CEECs), participation
in Community programmes is provided in their respective Europe Agreements. Pursuant to
the Europe Agreements, the conditions and modalities of these countries’ participation are
defined by the respective Association Councils.

In addition to those Community programmes in which candidate countries already participate,
it is now proposed to decide terms and conditions for the participation of Bulgaria, the Czech
Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia
in the Community programme Fiscalis for the duration of its remaining lifetime, i.e. till
31 December 2002.

The general objectives of the Fiscalis programme are:

• to enable officials to achieve a high common standard of understanding of Community
law, in particular in the field of indirect taxation and of its implementation in Member
States;

• to secure efficient, effective and extensive co-operation among Member States and

between them and the Commission;

• to ensure the continuing improvement of administrative procedures to take account of the
needs of administrations and taxpayers through the development and dissemination of
good administrative practices.

The objective of opening it
to the candidate countries will further contribute to their
preparations for accession as a key feature of the pre-accession strategy. It will also enable
these countries to familiarise themselves with the procedures and methods used in this
Community programme.

2.

Candidate countries of Central and Eastern Europe (CEECs)

The Europe Agreements with these countries entered into force on various dates and provide
for their participation in Community programmes dealing with a wide range of areas. They

1

OJ L 126 of 28.4.1998, p.1.

2

provide the possibility that other fields of Community activities may be added, if considered
to be of mutual interest, so that activities in the field of internal market can be included too.

The decision-making process for this participation requires a decision by the Association
Council of each of these Europe Agreements, which sets up the terms and conditions for such
participation.

According to the provisions of the Europe Agreements or their additional protocols
concerning these countries’ participation in Community programmes, they will meet the costs
resulting from their participation.

In this connection, the Luxembourg European Council indicated that candidate countries
should steadily increase their own financial contribution, but agreed that Phare, if necessary,
would continue to part-finance these countries’ financial contributions; such support should,
however, “remain at around 10% of the Phare appropriation, not including participation in
the research and development framework programme”. The European Council also stated
that “The applicant States should be allowed to take part, as observers and for the points
which concern them,
in the management committees responsible for monitoring the
programmes to which they contribute financially, under specific arrangements adapted to the
case in question".

The ten CEECs, namely Bulgaria,
the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Poland, Romania, the Slovakia and Slovenia, confirmed to the Commission in
writing their willingness to participate in the Fiscalis programme as from 2001, under the
terms and conditions of the annexed draft Association Council Decisions, and to make
available the necessary budgetary appropriations, as calculated by the Commission services.

The main issues addressed in these draft Decisions between the EC and, respectively, the
above-mentioned 10 countries adopting the terms and conditions for their participation in the
Fiscalis programme are the following:

• conditions for submission, assessment and selection of applications will be as far as

possible in conformity with those prevailing for the Member States of the Union

• CEECs will contribute financially to the Community budget of the programme. The
financial contributions have been calculated with a view to approximating CEEC
conditions as far as possible to those applied to Member States. The annual contribution
from each CEEC may be financed partly from its own budget and partly from its national
Phare allocation, which should not exceed the above-mentioned 10% limit

• they will be invited as observers and for the points which concern them to the meetings of

the programme committee

• these countries will be associated to the monitoring of their participation in the programme

• the Decisions shall apply for the remaining lifetime of the programme. Nevertheless,
should the Community decide to extend the lifetime without any substantial change within
the programme, the Decisions may also be extended correspondingly and automatically if
no Party denounces them.

3

3.

Conclusions

The adoption of the Association Council Decisions for the ten CEECs, allowing these
candidate countries to participate in the Community’s Fiscalis programme as from 2001, will
offer them the opportunity to actively integrate in the Community’s policies in this area, as
part of the pre-accession strategy. It will also contribute to reinforce their institutional and
administrative capacity (“Institution Building”). It is, therefore, of considerable political
importance.

In order to allow the participation of Bulgaria, the Czech Republic, Estonia, Hungary,
Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia in the Community Fiscalis
programme as from 2001, the Council is invited to take the respective Community position
within the corresponding Association Council as set up in the ten annexed draft Council
Decisions.

4

Proposal for a

COUNCIL DECISION

concerning the Community position within the Association Council on the participation
of Slovenia in the Community programme Fiscalis

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 95 in connection with Article 300(2), second indent thereof,

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

(3)

(4)

The Europe Agreement
establishing an association between the European
Communities and their Member States, of the one part, and Slovenia, of the other part,
entered into force on 1 February 19992;

According to Article 106 of the Europe Agreement, Slovenia may participate in
framework programmes, specific programmes, projects or other actions of the
Community in the fields laid down in Annex XI and, according to this Annex, the
Association Council may agree to add other fields of Community activities to those
listed in the annex;

According to the above-mentioned Article 106, the terms and conditions for the
participation of Slovenia in these activities shall be decided by the Association
Council;

Decision No 888/98/EC of the European Parliament and of the Council of 30 March
19983 establishing a programme of Community action to ameliorate the indirect
taxation systems of the internal market (Fiscalis programme) provides in Article 7 that
this programme shall be open to the participation of the candidate countries of Central
and Eastern Europe (CEECs), in accordance with the terms laid down in the Europe
Agreements and the Additional Protocols relating to their participation in Community
programmes and insofar as Community law on indirect taxation so permits,

2

3

OJ L 51 of 26.2.1999, p. 3.
OJ L 126 of 28.4.1998, p. 1.

5

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council established by the
Europe Agreement between the European Communities and their Member States, of the one
part, and Slovenia, of the other part, concerning the participation of Slovenia in the
Community Programme Fiscalis,
in the attached draft decision of the
Association Council.

is that set out

Done at Brussels,

For the Council
The President

6

Decision n° ..../2001 of the Association Council between the European Communities and
their Member States, of the one part,
and Slovenia, of the other part,

of ..........2001

adopting the terms and conditions for the participation of Slovenia
in the Community programme Fiscalis

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement4 between the European Communities and their
Member States, of the one part, and Slovenia, of the other part, and in particular Article 106
thereof,

Whereas:

(1)

(2)

(3)

According to Article 106 of the Europe Agreement, Slovenia may participate in
framework programmes, specific programmes, projects or other actions of the
Community in the fields laid down in Annex XI;

According to this Annex, the Association Council may agree to add other fields of
Community activities to those listed in the Annex;

According to the above-mentioned Article 106, the terms and conditions for the
participation of Slovenia in these activities shall be decided by the Association
Council,

HAS DECIDED AS FOLLOWS:

Article 1

Slovenia shall participate in the European Community programme Fiscalis according to the
terms and conditions set out in Annexes I and II which shall form an integral part of this
Decision.

Article 2

This Decision shall apply for the duration of the remaining lifetime of the Programme.
Nevertheless, should the Community decide to extend the duration without any substantial
change within the Programme, this Decision would also be extended correspondingly and
automatically if no Party denounces it.

4

OJ L 51 of 26.2.1999, p. 3.

7

Article 3

This Decision shall enter into force the day of its adoption by the Association Council.

Done at Brussels,

For the Association Council
The President

8

ANNEX I

TERMS AND CONDITIONS FOR THE PARTICIPATION OF SLOVENIA
IN THE FISCALIS PROGRAMME.

As stated in Article 7 of Decision No 888/98/EC5 of the European Parliament and of
the Council of 30 March 1998 establishing a programme of Community action to
ameliorate the indirect
taxation systems of the internal market - the Fiscalis
programme (hereinafter called “the Programme”) - Slovenia’s participation in the
Programme shall be in accordance with the conditions laid down in the Europe
Agreement and insofar as Community law on indirect
taxation so permits.
Accordingly, Slovenia’s participation in the Programme’s activities shall be under
the following conditions:

– Activities foreseen in Article 4 (communication and information-exchange
systems, manuals and guides) will be allowed insofar as Community indirect
taxation provisions make it possible;

– Activities foreseen in Article 5 (1) (exchanges of officials) and (2) (seminars) as
well as those foreseen in Article 6 (common training initiative) will be allowed
under the conditions laid down in these articles;

– Activities foreseen in Article 5 (3) (multilateral controls) would not be allowed as
for co-operation in this domain is only

the Community legal framework6
applicable to countries which are Member States of the EU.

the submission, assessment and selection of
The terms and conditions for
applications for seminars and exchanges related to officials of Slovenia shall be the
same as those applicable to officials of the 15 national administrations of the
Member States of the European Union.

Annex II establishes the financial contribution to the general budget of the European
Union that Slovenia will have to pay at the beginning of every financial year to cover
the costs resulting from its participation in the Programme, from 2001 to 2002. The
Association Committee is entitled to adapt this contribution whenever necessary in
accordance with the principles laid down in Article 114 (2) of the Europe Agreement
between the European Communities and their Member States, of the one part, and
Slovenia, of the other part.

Representatives of Slovenia will participate, as observers and for the points which
concern them, in the Standing Committee on Administrative Co-operation in the
field of Indirect Taxation foreseen in Article 11 (1) of Decision No 888/98/EC. This
Committee shall meet without the presence of representatives of Slovenia for the rest
of the points, as well as at the time of voting.

The Member States of the European Union and Slovenia will make every effort,
within the framework of the existing provisions, to facilitate the free movement and
residence of all eligible persons to the Programme moving between Slovenia and the

OJ L 126 of 28.4.1998, p. 1.
Directive 77/799/EEC and Regulation (EEC) 218/92.

9

(1)

(2)

(3)

(4)

(5)

5

6

(6)

(7)

(8)

EU Member States for the purpose of participating in activities covered by the
Decision.

Without prejudice to the responsibilities of the Commission of the European
Communities and the Court of Auditors of the European Communities in relation to
the monitoring and evaluation of the Programme pursuant to the Decision concerning
Fiscalis,
the participation of Slovenia in the Programme will be continuously
monitored on a partnership basis involving Slovenia and the Commission. Slovenia
will submit the necessary reports to the Commission and take part in other specific
activities set out by the Community in that context.

The language to be used as regards the application process, contracts, reports to be
submitted and other administrative arrangements for the Programme, will be one of
the official languages of the European Community.

The Community and Slovenia may terminate activities under this Decision at any
time upon twelve months’ notice in writing. Activities in progress at the time of
termination shall continue until their completion under the conditions laid down in
this Decision.

10

(1)

(2)

(3)

(4)

(5)

(6)

ANNEX II

FINANCIAL CONTRIBUTION OF SLOVENIA
TO THE FISCALIS PROGRAMME

The financial contribution of Slovenia will be added to the amount available each
year in the general budget of the European Union for commitment appropriations to
meet the Commission’s financial obligations stemming from work to be carried out
for the implementation, management and operation of the Fiscalis programme.

The financial contribution has been calculated considering an average daily
allowance of EURO 146 and an average travel allowance of EURO 695 representing
costs incurred for participating in seminars and exchanges. It is estimated for the
calculation of the financial contribution that Slovenia will participate in 15 seminars
and 20 exchanges as an average number of activities per year. The financial
contribution may be adjusted at the beginning of each year to take into account the
actual number of activities in which Slovenia plans to participate during that year.
The adjustment will take place by means of the required call for funds that Slovenia
will receive from the Commission, as referred to under item 5 below.

Slovenia’s contribution will be of EURO 94 984 for every single year of
participation, unless determined otherwise within the conditions under item 2. From
this sum, an amount of EURO 6 214 will cover supplementary costs of an
the Programme by the
administrative nature related to the management of
Commission stemming from Slovenia’s participation.

Slovenia will pay the total contribution of its participation from its national budget,
since Phare assistance has not been requested for this purpose.

The financial regulation applicable to the general budget of the European Union will
apply, notably to the management of the contribution of Slovenia.

Upon entry into force of this Decision, the Commission will send to Slovenia one or
more call for funds corresponding to its contribution to the costs of the activities for
the current year. The contribution will be expressed in EURO and paid into an
EURO bank account of the Commission. Slovenia will pay its contribution to the
annual cost under this Decision according to the calls for funds and at the latest three
months after the calls for funds are sent. Any delay in the payment of the
contribution shall give rise to the payment of interest by Slovenia on the outstanding
amount from the due date. The interest rate corresponds to the rate applied by the
European Central Bank, on the due date, for its operations in EURO, increased by
1,5 percentage points.

The daily subsistence allowances are applicable to all participants in the Programme
and are determined on a country per country basis by the Commission. Slovenia will
receive a first budget advance from the Commission at the beginning of every year.
A second advance may be paid at the middle of the year depending on the actual
participation of Slovenia in the Programme activities and on the expected
participation for the rest of the year. The Slovenian department concerned will use
these advances to pay for the travel tickets and daily subsistence allowances for
Slovenian participants.

11

(7)

Travel costs and subsistence costs incurred by representatives and experts of
Slovenia for the purposes of taking part as observers in the work of the committee
referred to in Annex I, point 4 shall be reimbursed by the Commission on the same
basis as the Member States of the European Union.

12

FINANCIAL STATEMENT

1.

TITLE OF OPERATION

Opening of Community Programme Fiscalis to Slovenia

2.

BUDGET HEADING(S) INVOLVED

Revenue: 6091 Revenue accruing from the participation of candidate countries in
Community programmes

3.

LEGAL BASIS

Treaty establishing the European Community, and in particular Article 95,
conjunction with Article 300(2), second indent thereof.

in

The Europe Agreement7 with Slovenia, entered into force on 1 February 1999,
providing for the opening-up of Community programmes (Article 106 in conjunction
with Annex XI).

Decision No 888/98/EC8 of the European Parliament and of the Council of 30 March
1998 establishing a programme of Community action to ameliorate the indirect
taxation systems of the internal market.

4.

4.1

(1)

(2)

(3)

(4)

DESCRIPTION OF OPERATION

General objective

To enable officials to achieve a high common standard of understanding of
Community law,
its
in the field of
implementation in Member States.

taxation and of

in particular

indirect

To secure efficient, effective and extensive co-operation among Member States and
between them and the Commission.

To ensure the continuing improvement of administrative procedures to take account
of the needs of administrations and taxpayers through the development and
dissemination of good administrative practices.

Slovenia's participation in the Community programme Fiscalis will further contribute
to its preparation for accession as a key feature of a reinforced pre-accession
strategy. It will also enable Slovenia to familiarise itself with the procedures and
methods used in this Community programme.

7

8

OJ L 51 of 26.2.1999, p. 3.
OJ L 126 of 28.4.1998, p. 1.

13

(5)

(6)

The decision-making process for this participation requires a decision by the
Association Council of the Europe Agreement. This decision sets up the terms and
conditions for such participation.

The Europe Agreement with Slovenia entered into force on 1 February 1999 and
provides for Slovenia’s participation in Community Programmes dealing with a wide
range of areas. Since Annex XI of the Agreement also provides for addition of other
Community areas, activities in the field of internal market can be included too.

4.2

Period covered and arrangements for renewal

From the entry into force of this Decision until
programme, i.e. 31.12.2002.

the end of this Community

5.

5.1

5.2

5.3

CLASSIFICATION OF EXPENDITURE OR REVENUE

Non-compulsory expenditure

Differentiated appropriations

Type of revenue involved

Since Article 106 of the Europe Agreement stipulates that Slovenia itself will meet
the costs of its participation, it will be invited to transfer its contribution to item 6091
of the EU's budget receipts.

6.

TYPE OF EXPENDITURE OR REVENUE

Expenditure comprises reimbursement of participants’ travel expenses and daily
subsistence allowances, organisational costs and costs incurred through seminars and
exchanges.

As far as revenue is concerned, provision for Slovenia's contribution to cover the cost
of its participation is made under item 6091. The revenue will be allocated to the
items for expenditure on the programme concerned and, where appropriate, to the
relevant items of operating expenditure.

The total revenue expected is given under item 7.4.

14

7.

7.1

FINANCIAL IMPACT

Method of calculating total cost of operation for every single financial year
(relation between individual and total costs)

The calculation is based on the following preconditions:

– Slovenia’s contribution to the financing of the activities referred to in Article 106
of the Europe Agreement is calculated according to the principle that the country
bears the costs of participation itself. Heading 6091 has been created in the
statement of budget revenue for that purpose.

– Based on the Europe Agreement with Slovenia,

the financial and budgetary
arrangements for the programme concerned are as follows: the costs have been
calculated on the basis of various assumptions related to the participation in a
number of 15 seminars and 20 exchanges per year, including average costs of
travel of EURO 695 from Slovenia to the country of the host administration, the
duration of exchanges or seminars and average daily subsistence allowance of
EURO 146.

On the basis of these assumptions, the total cost of Slovenia's participation will be
EURO 94 984 per year from its national budget.

From the above-mentioned figure, the supplementary cost of an administrative nature
is of EURO 6 214 per year.

15

7.2

Itemised breakdown of costs in EURO

EXCHANGES

FINANCIAL CONTRIBUTION

Number of exchanges*

Length of exchanges (days)

Number of participants per exchange

Subsistence allowances**

Travel expenses***

TOTAL

PER YEAR

20

14

1

40 880

13 900

54 780

SEMINARS

FINANCIAL CONTRIBUTION

PER YEAR

Number of seminars*

Number of participants in each seminar

Length of seminar (days)

Subsistence allowances**

Travel expenses***

TOTAL

TOTAL SEMINARS+EXCHANGES

7% administrative costs

15

2

3

13 140

20 850

33 990

88 770

6 214

94 984

TOTAL PER YEAR
*

number of exchanges and seminars yearly attended by Member States with the same population as
Slovenia
€
€

146/day (average daily subsistence allowance)
695 (average travel allowance)

**
***

16

7.3

Operational expenditure for studies, experts etc. included in Part B of the
budget

None

7.4

Schedule for multi-annual operations:

TOTAL EXPENDITURE:

Item 6091

2001

2002

TOTAL

Seminars +
exchanges

7%
administrative
costs

88 770

88 770

177 540

6 214

6 214

12 428

TOTAL

94 984

94 984

189 968

8.

FRAUD PREVENTION MEASURES; RESULTS OF MEASURES TAKEN

All the Commission's contracts, agreements and other legal commitments provide for
on-the-spot checks by the Commission and Court of Auditors. Among other things,
the beneficiaries of the operations are obliged to file reports and financial statements.
These are analysed from the point of view of their content and the eligibility of the
expenditure in line with the objective of Community financing.

The anti-fraud provisions of the basic budget headings apply to this heading too
when adapted to the case of Slovenia.

9.

9.1

ELEMENTS OF COST-EFFECTIVENESS ANALYSIS

Specific and quantified objectives; target population

The main objectives of the programme are to contribute to the achievement of a high
common standard of understanding of Community legislation in the field of indirect
taxation, secure efficient co-operation among Member States and the Commission
and improve administrative procedures.

The Fiscalis programme allows exchanges of officials involved in implementing
Community legislation and the organisation of seminars.

The aim of opening up the Community programme Fiscalis is to bring to Slovenia
the same benefits as the Member States of the European Union already enjoy from
the Programme. The objective for each year is to have Slovenian officials participate
in an average number of 20 exchanges by a placement in one of the 15 EU members
and in an average number of 15 seminars.

The integration of Slovenian officials in Community networks will make a definite
contribution to preparing Slovenia for future membership.

17

9.2

Monitoring and evaluation of the operation

The monitoring and evaluation procedures included in the Fiscalis programme will
also cover Slovenian participants.

10.

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

Actual mobilisation of the necessary administrative resources will depend on the
Commission’s annual decision on the allocation of resources, taking into account the
number of staff and additional amounts authorised by the budgetary authority.

10.1

Effect on the number of posts

Type of post

Staff required to manage
the operation

Source

Duration

Per year

Permanent
posts

Temporary
posts

Additional
resources

Existing
resources of the
DG or
department
concerned

Officials or
temporary staff

A

B

C

0,02

0,02

0,02

Other resources
(Technical
assistance, item
A-7002)

TOTAL

0,06

0,02

0,02

0,02

0,06

18

10.2

Overall financial impact of additional human resources

(in EURO)

Total

Method of calculation (total cost of
the action per year)

EURO

6 480 0,06 man/year x 108 000 EURO

Officials *
Temporary staff
Other resources (Technical
assistance, item A-7002)

TOTAL

6 480

*

By using existing resources required to manage the operation (calculation based on A-1, A-2, A-4, A-5,
A-7).

10.3

Increase in other administrative expenditure as a result of the operation

2001

1 980

2002

1 980

TOTAL

3 960

A.701
(missions)*

A.7031

4 234

4 234

8 468

(compulsory
committees)**

TOTAL

6 214

6 214

12 428

*
**

Average cost for a 2-day mission of 2 officials per year in Slovenia
Participation of Slovenia in SCAC meetings

The above expenditure will be met from the receipts (art. 4 § 2 third indent of the
financial regulation) received from Slovenia (see point 5.3 and 7.4 of the financial
statement

19