Council Regulation (EC) No 58/2003 of 19 December 2002 laying down the statute for executive agencies to be entrusted with certain tasks in the management of Community programmes
Date: 2002-12-19
Institutions: Council of the European Union
Subjects: EU office or agency, EU programme, drafting of EU law, legal status, management, outsourcing

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(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 58/2003

of 19 December 2002

laying down the statute for executive agencies to be entrusted with certain tasks in the manage-
ment of Community programmes

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 308 thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

Having regard to the opinion of the Court of Auditors (3),

Whereas:

An increasing number of programmes are being created
in a wide range of fields targeting a variety of categories
of beneficiaries, as part of the activities provided for in
Article 3 of the Treaty. The Commission is, as a rule,
responsible for adopting measures to implement such
programmes (Community programmes).

of

the

Implementation
programmes
concerned is financed, at least in part, from appropria-
tions entered in the general budget of the European
Union.

Community

(7)

(8)

(9)

Under Article 274 of the Treaty, the Commission is
responsible for implementing the budget.

If the Commission is to be properly accountable to citi-
zens, it must focus primarily on its institutional tasks. It
should therefore be able to delegate some of the tasks
relating to the management of Community programmes
to third parties. Outsourcing certain management tasks
could, moreover, be a way of achieving the goals of such
Community programmes more effectively.

Outsourcing of management tasks should nevertheless
stay within the limits set by the institutional system as
laid out in the Treaty. This means that tasks assigned to
the institutions by the Treaty which require discretionary
powers in translating political choices into action may
not be outsourced.

(10)

Outsourcing should, moreover, be subject
to a cost-
benefit analysis taking account of a number of factors
such as identification of the tasks justifying outsourcing,

(1)

(2)

(3)

(4)

(5)

(6)

a cost-benefit analysis which includes the costs of coor-
dination and checks, the impact on human resources,
efficiency and flexibility in the implementation of
outsourced tasks, simplification of the procedures used,
proximity of outsourced activities to final beneficiaries,
visibility of the Community as promoter of the Commu-
nity programme concerned and the need to maintain an
adequate level of know-how inside the Commission.

One form of outsourcing consists in using Community
bodies which have legal personality (executive agencies).

In order to ensure uniformity of executive agencies in
institutional terms, their statute should be laid down, in
particular as regards certain essential aspects of their
structure, tasks, operation, budget system, staff, supervi-
sion and responsibility.

As the institution responsible for implementing the
various Community programmes,
the Commission is
best qualified to assess whether and to what extent it is
appropriate to entrust management tasks relating to one
or more specific Community programmes to an execu-
tive agency. Recourse to an executive agency does not,
however, relieve the Commission of its responsibilities
under the Treaty, and in particular Article 274 thereof.
It must therefore be able closely to circumscribe the
action of each executive agency and maintain real
control over its operation, and in particular its governing
bodies.

This means that the Commission must have the power
to decide to create and, where appropriate, wind up an
executive agency in accordance with this Regulation.
Since the decision to set up an executive agency is a
measure of general scope within the meaning of Article
2 of Council Decision 1999/468/EC of 28 June 1999
laying down the procedures for the exercise of imple-
menting powers conferred on the Commission (4), such
decisions should be adopted in accordance with Decision
1999/468/EC.

(1) OJ C 120 E, 24.4.2001, p. 89 and OJ C 103 E, 30.4.2002, p. 253.
(2) Opinion delivered on 5 July 2001 (not yet published in the Official

Journal).

(3) OJ C 345, 6.12.2001, p. 1.

(4) OJ L 184, 17.7.1999, p. 23.

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(11)

(12)

(13)

(14)

The Commission must also be able to appoint both the
members of the Steering Committee of each executive
agency and its director, to ensure that in delegating tasks
which are its own prerogative to an executive agency,
the Commission does not thereby relinquish control of
it.

The activities performed by an executive agency must
also fully comply with the programming which the
Commission defines for the Community programmes in
the management of which the agency is involved. The
agency's annual work programme must
therefore be
subject to the Commission's approval and comply with
budgetary decisions.

full
To ensure that outsourcing is effective and that
benefit
is drawn from the expertise of an executive
agency, the Commission must be allowed to delegate to
it all or some of the implementing tasks for one or more
Community programmes, except
for those requiring
discretionary powers in translating political choices into
action. Tasks which may be delegated include managing
all or some of the phases in the lifetime of a given
project, implementing the budget, gathering and proces-
sing information to be forwarded to the Commission
and preparing recommendations for the Commission.

Since the budget of an executive agency is intended to
finance only its running costs, its revenue should consist
chiefly of a subsidy entered in the general budget of the
European Union, to be determined by the budgetary
authority, and drawn from the financial allocation to the
Community programme in the management of which
the agency is involved.

(15) With a view to the application of Article 274 of the
Treaty, the operational appropriations of the Community
programmes which an executive agency is involved in
managing must continue to be entered in the general
budget of
the European Union and must be imple-
mented by direct charging to that budget. The financial
operations relating to these appropriations must there-
fore be carried out in accordance with Council Regula-
tion (EC, Euratom) No 1605/2002 of 25 June 2002 on
the Financial Regulation applicable to the general budget
of the European Communities (1).

to

tasks

relating

the management

(16) An executive agency may be entrusted with imple-
menting
of
programmes which are financed from sources other than
the general budget of the European Union. However, this
should not lead even indirectly to extra administrative
costs, which should be covered by additional appropria-
tions entered in the general budget concerned. In such
cases, this Regulation should apply, subject to specific
provisions in the basic acts relating to the Community
programmes concerned.

(18)

(19)

their actions and the Commission should exercise
administrative supervision over the executive agency,
without ruling out the possibility of an audit by the
Court of Justice.

The public should have access to the documents held by
the executive agencies, on terms and within limits
similar to those in Article 255 of the Treaty.

the Community programmes which it

Each executive agency must collaborate intensively and
continuously with the Commission departments respon-
sible for
is
involved in managing. To facilitate such collaboration as
much as possible, each executive agency should be
the place where the Commission and its
located at
departments are located in accordance with the Protocol
on the location of the seats of the institutions and of
certain bodies
the European
and departments of
Communities and of Europol annexed to the Treaty on
European Union and to the Treaties establishing the
European Community,
the European Coal and Steel
Community and the European Atomic Energy Commu-
nity.

(20)

For the adoption of this Regulation, the Treaty does not
provide for powers other than those conferred by Article
308,

HAS ADOPTED THIS REGULATION:

Article 1

Aim

This Regulation lays down the statute of executive agencies to
which the Commission, under its own control and responsi-
bility, may entrust certain tasks relating to the management of
Community programmes.

Article 2

Definitions

For the purpose of this Regulation:

(a) ‘executive agency’ means a legal entity established in accor-

dance with this Regulation;

(b) ‘Community programme’ means any activity, set of activ-
ities or other initiative which the relevant basic instrument
or budgetary authorisation requires the Commission to
implement for the benefit of one or more categories of
specific beneficiaries, by committing expenditure.

Article 3

(17)

transparency and reliability in the
The objective of
management of executive agencies requires that internal
and external checks be made on their operation. To this
end, executive agencies should be made accountable for

(1) OJ L 248, 16.9.2002, p. 1.

Setting-up and winding-up of executive agencies

The Commission may decide, after a prior cost-benefit
1.
analysis,
to set up an executive agency with a view to
entrusting it with certain tasks relating to the management of
one or more Community programmes. It shall determine the
lifetime of the executive agency.

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The cost-benefit analysis shall take into account a number of
factors such as identification of the tasks justifying outsourcing,
a cost-benefit analysis which includes the costs of coordination
and checks, the impact on human resources, possible savings
within the general budgetary framework of
the European
Union, efficiency and flexibility in the implementation of
outsourced tasks, simplification of the procedures used, proxi-
mity of outsourced activities to final beneficiaries, visibility of
the Community as promoter of the Community programme
concerned and the need to maintain an adequate level of
know-how inside the Commission.

2.
At the date determined when setting up the executive
agency, the Commission may extend the duration of its lifetime
for a period not exceeding that originally provided for. Such
extension may be renewed. Where the Commission considers
that it no longer requires the services of an executive agency
which it has set up, or that its existence no longer complies
with the principles of sound financial management,
it shall
decide to wind it up. In that event, it shall appoint two liquida-
tors. The Commission shall determine the conditions for liqui-
dation of the executive agency. The net result after liquidation
shall be taken up in the general budget of the European Union.
The decision to extend its lifetime, renew such extension or
wind up the agency shall be taken on the basis of the cost-
benefit analysis referred to in paragraph 1.

3.
The Commission shall adopt the decisions referred to in
paragraphs 1 and 2 in accordance with the procedure laid
down in Article 24(2). They shall be amended in accordance
with the same procedure. The Commission shall forward to the
Committee referred to in Article 24(1) all
the information
necessary in this context, in particular the cost-benefit analysis
referred to in paragraph 1 of this Article and the evaluation
reports referred to in Article 25.

4. When adopting a Community programme, the Commis-
sion shall inform the budgetary authority of whether it intends
to set up an executive agency to implement the programme.

All executive agencies set up under paragraph 1 of this

5.
Article must comply with this Regulation.

Article 4

Legal status

An executive agency is a Community body with a public

1.
service role.

2.
An executive agency shall have legal personality. In each
of the Member States, it shall enjoy the most extensive legal
capacity accorded to legal persons under national law. It may,
in particular, acquire or dispose of movable and immovable
property and be a party to legal proceedings. To this end, it
shall be represented by its Director.

Article 5

Location

1.
An executive agency shall be located at the place where
the Commission and its departments are located, in accordance
with the Protocol on the location of the seats of the institutions
the European
and of certain bodies and departments of
Communities and of Europol.

It shall organise its departments according to the manage-
2.
ment needs of the Community programmes for which it is
responsible and according to the criteria of sound financial
management.

Article 6

Tasks

To attain the objective set out

1.
the
Commission may entrust an executive agency with any tasks
required to implement a Community programme, with the
exception of tasks requiring discretionary powers in translating
political choices into action.

in Article 3(1),

Executive agencies may in particular be entrusted with

2.
the following tasks:

(a) managing some or all of the phases in the lifetime of a
project, in relation with specific individual projects, in the
context of implementing a Community programme and
carrying out the necessary checks to that end, by adopting
the relevant decisions using the powers delegated to it by
the Commission;

(b) adopting the instruments of budget implementation for the
revenue and expenditure and carrying out all activities
required to implement a Community programme on the
basis of the power delegated by the Commission, and in
particular activities linked to the awarding of contracts and
grants;

(c) gathering, analysing and transmitting to the Commission all
the information needed to guide the implementation of a
Community programme.

3.
The terms, criteria, parameters and procedures with
which an executive agency must comply when performing the
tasks referred to in paragraph 2 and the details of the checks to
be performed by the Commission departments responsible for
Community programmes in the management of which an
agency is involved shall be defined by the Commission in the
instrument of delegation.

Article 7

Structure

An executive agency shall be managed by a Steering

1.
Committee and a director.

An executive agency's director shall have authority over

2.
its staff.

Article 8

Steering Committee

The Steering Committee shall consist of five members

1.
appointed by the Commission.

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the members of

The term of office of

the Steering
2.
Committee shall be two years in principle and shall take into
account the length of time fixed for implementation of the
Community programme, management of which has been
entrusted to the executive agency. The appointment may be
renewed. On expiry of their term of office, or should they
resign, the members shall remain in office until their appoint-
ment is renewed or they have been replaced.

The Steering Committee shall choose a chairperson and

3.
deputy-chairperson from among its members.

The Steering Committee shall meet when convened by
4.
the chairperson, at least four times a year.
It may also be
convened at the request of its members, by at least a simple
majority, or at the request of the director.

5.
Any member of the Steering Committee unable to attend
a meeting may be represented by another member specially
empowered for the meeting concerned. Each member may
represent only one other member. Should the chairperson be
unable to attend, the Steering Committee shall be chaired by
the deputy-chairperson.

6.
The Steering Committee's decisions shall be adopted by a
simple majority of votes. In the event of a tie, the chair shall
have the casting vote.

Article 9

Tasks of the Steering Committee

The Steering Committee shall adopt its own rules of

1.
procedure.

On the basis of a draft submitted by the director and after
2.
approval by the Commission, the Steering Committee shall, no
later than the beginning of each year, adopt the executive agen-
cy's annual work programme comprising detailed objectives
and performance indicators. The work programme must
comply with the programming defined by the Commission in
accordance with the instruments establishing the Community
programmes in the management of which the executive agency
is involved. The annual work programme may be amended
during the year following the same procedure, in particular to
take account of Commission decisions relating to the Commu-
nity programmes concerned. The projects included in the
annual work programme shall be accompanied by an estimate
of the necessary expenditure.

3.
The Steering Committee shall adopt the executive agen-
cy's administrative budget by the procedure laid down in
Article 13.

The Steering Committee shall obtain the Commission's
legacies and

4.
agreement before deciding to accept any gifts,
grants from sources other than the Community.

The Steering Committee shall decide on the organisation

5.
of the departments of the executive agency.

6.
The Steering Committee shall adopt any special rules
needed to implement the right of access to the executive agen-
cy's documents in accordance with Article 23(1).

No later than 31 March of each year,

the Steering
7.
Committee shall adopt and submit
to the Commission an
annual activity report together with financial and management
information. The report shall be drawn up in accordance with
Article 60(7) of Regulation (EC, Euratom) No 1605/2002. The
report shall cover both implementation of the operating appro-
priations
to the Community programme
managed by the executive agency and the implementation of
its administrative budget.

corresponding

The Commission shall no later than 15 June each year send to
the budgetary authority a summary of executive agencies'
annual reports for the previous year, to be attached to that
referred to in Article 60(7) of Regulation (EC, Euratom) No
1605/2002.

The Steering Committee shall adopt and apply measures

8.
to combat fraud and irregularities.

The Steering Committee shall perform the other tasks

9.
entrusted to it by this Regulation.

Article 10

Director

1.
The director of the executive agency shall be appointed
by the Commission, which shall to that end appoint an official
within the meaning of the Staff Regulations of officials and the
conditions of employment of other servants of the European
Communities laid down by Council Regulation (EEC, Euratom,
ECSC) No 259/68 (1), hereafter referred to as ‘Staff Regulations’.

2.
The director shall be appointed for a term of four years
in principle and shall take into account the length of time fixed
for implementation of the Community programme, manage-
ment of which had been entrusted to the executive agency. This
appointment may be renewed. After receiving the opinion of
the Steering Committee,
the Commission may remove the
director from office before expiry of the term of office.

Article 11

Tasks of the director

The director shall represent the executive agency and shall

1.
be responsible for its management.

The director shall prepare the work of

2.
the Steering
Committee, in particular the draft annual work programme of
the executive agency. The director shall participate, without
voting, in the work of the Steering Committee.

the

that

shall

The director

3.
annual work
ensure
programme of the executive agency is implemented. In parti-
cular, the director shall be responsible for performance of the
tasks referred to in Article 6 and shall take the relevant deci-
sions to that effect. The director shall act as the executive agen-
cy's authorising officer by delegation as regards implementation
of the operational appropriations relating to the Community
programmes in the management of which the executive agency
is involved, where the Commission has delegated powers to the
agency to perform budget implementation tasks.

(1) OJ L 56, 4.3.1968, p. 1. Regulation as last amended by Regulation

(EC, ECSC, Euratom) No 490/2002 (OJ L 77, 20.3.2002, p. 1).

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The director shall draw up the provisional statement of
4.
revenue and expenditure and, as authorising officer, shall
implement
in
accordance with the Financial Regulation referred to in Article
15.

the executive agency's administrative budget

The director

5.
shall be responsible for preparing and
publishing the reports which the executive agency must present
to the Commission. These are the annual reports on the activ-
ities of the executive agency referred to in Article 9(7) and all
other reports, of a general or specific nature, which the
Commission asks the executive agency to produce.

6.
The director shall be empowered under the arrangements
applicable to other servants of the European Communities to
conclude employment contracts in respect of staff of the execu-
tive agency. The director shall be responsible for all other
matters relating to personnel management within the executive
agency.

7.
In accordance with the financial Regulation applicable to
the general budget of the European Communities, the director
shall set up management and internal control systems adapted
to the tasks entrusted to the executive agency to ensure the
operations it performs are lawful, comply with the rules and
are effective.

Article 12

Operating budget

the executive agency, shall be sent

1.
Forecasts of all the executive agency's revenue and expen-
diture shall be prepared for each financial year, which shall be
the same as the calendar year, and shall be shown in its oper-
ating budget. The forecasts, which shall include the establish-
to the
ment plan of
budgetary authority with the documents relating to the preli-
minary draft general budget of the European Union. The estab-
lishment plan, consisting only of temporary posts and speci-
fying the number, grade and category of the staff employed by
the executive agency during the financial year concerned, shall
be approved by the budgetary authority and published in an
annex to Section III — Commission — of the general budget of
the European Union.

The revenue and expenditure of the executive agency's

2.
operating budget shall be in balance.

The executive agency's revenue shall

3.
include a subsidy
entered in the general budget of the European Union, without
prejudice to other revenue to be determined by the budgetary
authority, drawn from the financial allocation to the Commu-
nity programmes which the agency is involved in the manage-
ment of.

Article 13

Preparation of the operating budget

1.
Each year the director shall draw up a draft operating
budget for the executive agency covering the agency's running
costs for the following financial year and shall submit it to the
Steering Committee.

No later than 1 March each year, the Steering Committee
2.
shall adopt the draft operating budget, including the establish-
ment plan, for the following financial year and shall submit it
to the Commission.

3.
On the basis of this draft budget and in the light of the
Commission's programming for the Community programmes
in the management of which the executive agency is involved,
the Commission shall propose, as part of the annual budget
procedure, the annual subsidy to the executive agency's oper-
ating budget.

At

the beginning of each financial year,

4.
the Steering
Committee shall adopt the executive agency's operating budget,
on the basis of the annual subsidy thus determined by the
budgetary authority, at the same time as it adopts the annual
work programme, adjusting the budget in accordance with the
different contributions granted to the executive agency and any
funds from other sources.

5.
The operating budget of the agency may not be adopted
definitively until the general budget of the European Union has
been finally adopted.

6. When the Commission contemplates setting up an execu-
tive agency, it shall inform the budgetary authority in accor-
dance with the budgetary procedure and respecting the prin-
ciple of transparency:

(a) of

the resources in terms of appropriations and jobs

required to run the executive agency;

(b) of planned secondments of officials from the Commission

to the executive agency;

(c) of administrative resources freed by transferring tasks from
the Commission departments to the executive agency, and
the re-allocation of those freed administrative resources.

7.
In accordance with the Financial Regulation referred to in
Article 15, all amendments to the operating budget, including
the establishment plan, shall be submitted in an amending
budget adopted in accordance with the procedure provided for
in this Article.

Article 14

Implementation of the operating budget and discharge

The director shall implement the executive agency's oper-

1.
ating budget.

2.
The executive agency's accounts shall be consolidated
with those of the Commission in accordance with the proce-
dure laid down in Articles 127 and 128 of Regulation (EC,
Euratom) No 1605/2002 and in accordance with the following:

(a) each year, the director shall submit detailed provisional
accounts of all revenue and expenditure for the previous
financial year
to the Steering Committee, which shall
forward them, by 1 March at the latest, to the Commis-
sion's accounting officer and to the Court of Auditors;

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(b) the final accounts shall be sent

to the Commission's
accounting officer and the Court of Auditors by 1 July of
the following year at the latest.

3.
The European Parliament, acting on a recommendation
from the Council, shall grant a discharge to the executive
agency for the implementation of its budget no later than 29
April of year n+2 after examination of the report by the Court
of Auditors.

of other temporary staff members directly recruited by the
executive agency, as well as of other servants recruited by the
executive agency on renewable contracts. The nature of the
contract, governed by either private law or public law, its dura-
tion and the extent of the servants' obligations vis-à-vis the
agency, and the appropriate eligibility criteria shall be deter-
mined on the basis of the specific nature of the tasks to be
performed, and shall comply with the Staff Regulations as well
as with current national legislation.

Such discharge shall be granted together with that relating to
implementation of the general budget of the European Union.

Subject to permanent activities and regardless of the type

2.
of secondment of the official, the institution of origin:

Article 15

(a) shall not, for the duration of the secondment, fill the posts

vacated by that secondment;

Financial Regulation applicable to the operating budget

The standard financial regulation applicable to the operating
budget of an executive agency shall be adopted by the Commis-
sion. That standard regulation may deviate from the financial
Regulation applicable to the general budget of the European
Communities only if the specific operating requirements of the
executive agencies so require.

Article 16

Financial Regulation applicable to the operational appro-
priations

1. Where the Commission has delegated tasks to the execu-
tive agency relating to the budget implementation of opera-
tional appropriations for Community programmes in accor-
dance with Article 6(2)(b), such appropriations shall be entered
in the general budget of the European Union and shall be
implemented by direct charging to that budget under the
responsibility of the Commission.

The director shall act as the executive agency's author-
2.
ising officer by delegation as regards implementation of these
operational appropriations and shall comply to that end with
the obligations laid down in the financial Regulation applicable
to the general budget of the European Communities.

3.
Discharge in respect of implementation of the operational
appropriations shall be given within the framework of the
discharge given in respect of
the
European Union, in accordance with Article 276, of which it is
an integral part.

the general budget of

Article 17

Programmes financed from sources other than the general
budget of the European Union

Articles 13 and 16 shall apply without prejudice to specific
provisions laid down in the basic instruments relating to
programmes financed from sources other than the general
budget of the European Union.

Article 18

Staff

1.
The executive agency's staff shall consist of Community
officials seconded as temporary staff members by the institu-
tions to positions of responsibility in the executive agency, and

(b) shall

take into account

the
expenses of the officials transferred to the executive agen-
cies.

in the standard abatement

Nevertheless, the total number of posts concerned by para-
graph 1 and the first subparagraph of paragraph 2 shall not
exceed the number of posts necessary for performance of the
tasks conferred upon the executive agency by the Commission.

The Steering Committee, in agreement with the Commis-
3.
sion,
for
shall
personnel management within the executive agency, if neces-
sary.

the necessary implementing rules

adopt

Article 19

Privileges and immunities

The Protocol of 8 April 1965 on the privileges and immunities
of the European Communities shall apply to both the executive
agency and its staff, insofar as it is subject to the Staff Regula-
tions.

Article 20

Supervision

1.
Implementation of the Community programmes entrusted
to executive agencies shall be supervised by the Commission.
Such supervision shall follow the procedures it shall adopt in
accordance with Article 6(3).

The function of internal auditor shall be performed in the

2.
executive agencies by the internal auditor of the Commission.

The Commission and the executive agency shall imple-
the internal auditors, each
the recommendations of

3.
ment
according to their respective powers.

The European Anti-Fraud Office (OLAF)

set up by
4.
Commission Decision 1999/352/EC, ECSC, Euratom of 28
April 1999 (1) shall enjoy the same powers in respect of execu-
tive agencies and their staff as it enjoys in respect of Commis-
sion departments. As soon as the executive agency is set up, it
shall subscribe to the Interinstitutional Agreement of 25 May
1999 between the European Parliament, the Council of the
the European
European Union and the Commission of
the
by
Communities

investigations

concerning

internal

(1) OJ L 136, 31.5.1999, p. 20.

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European Anti-Fraud Office (OLAF) (1). The Steering Committee
shall formalise this acceptance and adopt the provisions needed
to facilitate internal inquiries conducted by OLAF.

Executive agencies must

take the necessary measures
4.
within a reasonable period to comply with the Commission's
decision.

The Court of Auditors shall examine the executive agen-

5.
cy's accounts in accordance with Article 248 of the Treaty.

6.
All acts of the executive agency, and in particular all deci-
sions adopted and contracts concluded by it, must provide
explicitly that the Commission's internal auditor, OLAF and the
Court of Auditors may conduct on-the-spot inspections of the
documents of all contractors and sub-contractors which have
received Community funds, including at the premises of the
final beneficiaries.

Article 21

Liability

The contractual liability of the executive agency shall be

1.
governed by the law applicable to the contract in question.

liability,

In the case of non-contractual

2.
the executive
agency shall make good any damage caused by the agency or
its servants in the performance of their duties, in accordance
with the general principles common to the laws of the Member
States. The Court of Justice shall have jurisdiction in disputes
relating to compensation for any such damage.

The personal

3.
liability of staff
agency shall be governed by the rules applicable to them.

towards the executive

Article 22

Legality of acts

1.
Any act of an executive agency which injures a third
party may be referred to the Commission by any person
directly or individually concerned or by a Member State for a
review of its legality.

Administrative proceedings shall be referred to the Commission
within one month of the day on which the interested party or
Member State concerned learnt of the act challenged.

After hearing the arguments adduced by the interested party or
by the Member State concerned and those of the executive
agency, the Commission shall take a decision on the adminis-
trative proceedings within two months of the date on which
proceedings were instituted. Without prejudice to the Commis-
sion's obligation to reply in writing giving grounds for its deci-
sion, the failure by the Commission to reply within that dead-
line shall be taken as implicit rejection of the proceedings.

2.
On its own initiative the Commission may review any act
of an executive agency. It shall decide within two months of
the day on which that review, after having heard the arguments
adduced by the agency.

3. Where an act is referred to the Commission in accordance
with paragraphs 1 or 2, the Commission may suspend imple-
mentation of the act at issue or prescribe interim measures. In
its final decision the Commission may uphold the executive
agency's act or decide that the agency must modify it either in
whole or in part.

5.
An action for annulment of the Commission's explicit or
implicit decision to reject the administrative appeal may be
brought before the Court of Justice, in accordance with Article
230 of the Treaty.

Article 23

Access to documents and confidentiality

Executive agencies shall be subject to Regulation (EC) No
1.
1049/2001 of the European Parliament and of the Council of
30 May 2001 on public access to European Parliament, Council
and Commission documents (2) when it receives a request for
access to a document in its possession.

The Steering Committee shall adopt any special rules needed to
implement these provisions no later than six months after the
setting-up of the executive agency.

2.
The members of the Steering Committee, the director and
members of staff and all persons involved in the activities of
the executive agency shall be required, even after their duties
have ceased, not to disclose information of the kind covered by
the obligation of professional secrecy.

Article 24

Committee

The Commission shall be assisted by a committee, herein-

1.
after referred to as the ‘Committee for Executive Agencies’.

2. Where reference is made to this paragraph, Articles 5 and
7 of Decision 1999/468/EC shall apply.

The period laid down in Article 5(6) of Decision 1999/468/EC
shall be set at three months.

3.

The Committee shall adopt its rules of procedure.

Article 25

Evaluation

1.
An external evaluation report on the first three years of
operation of each executive agency shall be drawn up by the
Commission and submitted to the steering committee of the
executive agency, to the European Parliament, to the Council
include a cost-benefit
and to the Court of Auditors. It shall
analysis as referred to in Article 3(1).

The evaluation shall subsequently be repeated every three

2.
years under the same conditions.

3.
Further to the evaluation reports, the executive agency
and the Commission shall take all appropriate steps to resolve
any problems identified.

(1) OJ L 136, 31.5.1999, p. 15.

(2) OJ L 145, 31.5.2001, p. 43.

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Official Journal of the European Communities

16.1.2003

If, further to an evaluation, the Commission finds that the
4.
very existence of an executive agency is no longer justified with
a view to sound financial management, the Commission shall
decide to wind up that agency.

(b) the deadline referred to in Article 14(2)(b) for transmission
of the final accounts shall apply for the first time to the
2005 financial year;

(c) for the financial years prior to 2005 the deadline for trans-

mission of the final accounts shall be 15 September.

Article 26

Interim measures

Article 27

Entry into force

As far as executive agencies have already been set up:

(a) the annual activity report referred to in Article 9(7) shall be
drawn up for the first time for the 2003 financial year;

into force on the 10th day
This Regulation shall enter
following that of its publication in the Official Journal of the
European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 19 December 2002.

For the Council

The President

L. ESPERSEN