Communication from the Commission - Progress Review of Reform
Date: 2003-01-30
Institutions: European Commission
Subjects: European Commission, administration of the Institutions, financial management, institutional reform

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 7.2.2003
COM(2003) 40 final/2

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COMMUNICATION FROM THE COMMISSION

Progress Review of Reform

PROGRESS REVIEW OF REFORM

1.  INTRODUCTION

Administrative reform has been one of the main objectives of the Prodi Commission.
Upon  taking  office,  the  Commission  embarked  on  an  unprecedented  programme  of
reform,  which  was  adopted  in  the  form  of  a  White  Paper  on  1st  March  2000.  It  is
based on principles and objectives that have underpinned the modernisation of other
public  administrations  across  Europe  and  beyond.  The  White  Paper  committed  the
Commission 
independence,
accountability,  efficiency,  transparency  and  the  highest  standards  of  responsibility.
The  European  Parliament  strongly  supported  the  approach  proposed  by  the
Commission in its resolution on the Second Report of the Committee of Independent
Experts,  while  the  European  Council  in  Helsinki  also  welcomed  the  proposed
modernisation of the Commission.

to  an  ambitious  programme 

for  strengthening 

The White Paper mandated the Commission to publish a full progress review of the
reforms  by  December  2002.  This  Progress  Review  fulfils  the  mandate  of  the  White
Paper,  and  also  responds  to  recent  calls  from  the  European  Parliament  for  more
comprehensive information on reform implementation.

The review demonstrates that the Commission has successfully achieved the majority
of commitments made in the White Paper Action Plan: to date, a total of 87 of the 98
Actions have been implemented. At the same time, it is clear that reform has been a
process  of  change  and  discovery,  through  which  new  issues  have  been  identified
during implementation. The Commission has shown substantial flexibility during this
change process and a willingness to respond to the difficulties that reform initiatives
have  themselves  highlighted.  Therefore  this  review  is  more  than  a  simple  case  of
checking  the  Commission’s progress against the Action  Plan, since  it  looks  towards
the longer-term objectives of reform which extend beyond the 98 reform actions and
the White Paper itself.

The Progress Review comprises a political assessment of progress since the adoption
of the White Paper, a detailed implementation report on the Action Plan, and a table
detailing  the  state  of  play  on  all  the  98  White  Paper  Actions.  It  also  includes  a
diagram  outlining  the  development  of  different  elements  of  reform  and  indicating
when they should have reached the necessary maturity for their overall effectiveness
to be assessed.

The  substantive  objectives  of  the  White  Paper  are  long-term  attainments  that  will
require sustained efforts going even beyond this Commission’s mandate. Nonetheless,
enlargement in May 2004 presents an important testing ground for the success of the
reform under this Commission. This historically unprecedented enlargement presents
the Commission with a challenging set of deadlines, while the institution at the same
time  manages  the  demanding  agenda  of  a  profound  administrative  reform.  This
Progress Review intends to help clarify what practical achievements should be made
before enlargement and the end of this Commission’s mandate. For these purposes it
is  important  to  start  to  measure  performance  against  the  substantive,  long-term
objectives  of  the  White  Paper,  in  order  to  build  up  a  picture  of  the  multi-annual
evolution of the reform programme and its ongoing achievements.

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2.  TO WHAT EXTENT HAS THE COMMISSION DELIVERED ON THE COMMITMENTS OF
THE  WHITE  PAPER?  WHAT  FURTHER  INITIATIVES  AND  PROBLEMS  HAVE
EMERGED DURING THE DYNAMIC REFORM PROCESS?

(cid:1)  Creating a culture based on service  (White Paper Actions: 1-11)

Underlying the direct commitments of the White Paper was the aim of creating a more
service-based  culture  in  the  Commission  and  achieving  a  culture  change  in  the
Commission’s  relations  with  the  public.  In  this  pillar  of  reform,  9  out  of  11  of  the
White Paper Actions have already been implemented.

the  Commission’s 

New rules on access to documents and a new Code of good administrative behaviour
have resulted in visible changes being implemented. Furthermore, work is in progress
as  regards  simplifying 
internal  administrative  procedures.
Achievements  to  date  include  the  marked  improvement  in  Commission  services’
ability to meet payment deadlines. The average in 2002 was 43.7 days, compared with
54 days in 1999. The Commission is also able to track and monitor its efficiency in
responding  to  public  requests  -  around  70%  of  public  mail  is  replied  to  within  the
standard deadline in the Code of good administrative behaviour. The Commission has
also recently adopted a set of minimum standards for the consultation of stakeholders
on new policy proposals. Other White Paper actions, such as the ‘e-Commission’, are
multi-annual programmes that have progressed but which are still ongoing.

On  the  other  hand,  feedback  from  the  European  institutions  on  the  Commission's
proposal for an Advisory Group on Standards in Public Life made it clear that these
institutions  were  not  ready  to  move  forward.  Against  this  background,  there  is
regrettably no prospect of progress in this area. Also, the White Paper Action aimed at
electronic public procurement and transactions is somewhat delayed.

While progress has been made there remains scope for improvement in this pillar of
reform.  It  involves  a  process  of  adjustment  that  is  happening  steadily  across  the
Commission but is more apparent in some parts than in others due to the diversity of
the Commission’s activities. The achievement of a change of culture is a far-reaching
qualitative process, the results of which will not be fully clear in the short term. This
process has also highlighted that significant investments will be needed in some areas,
for instance in the modernisation of archiving systems, to ensure that the Commission
services meet the new standards set by the reform. It has also brought out the need to
develop  an  internal  service  culture  within  the  Commission,  to  further  improve  the
performance  and  responsiveness  of  central  services  when  dealing  with  the  other
Directorates  General.  The  central  services  are  currently  intensifying  their  efforts  to
support  operational  services  in  their  efforts  to  implement  reform.  The  wider
application  of  Service  Level  Agreements  is  just  one  example  of  how  this  is  being
achieved.

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Outlook

Substantive  progress  in  building  up  a  service  culture  has  been  achieved.  The
Commission must ensure that the remaining scope for increased performance is fully
used. By May 2004 the Commission will have:

- 

- 

Improved its document management system

Improved  the  efficiency  and  quality  of  information  provided  to  the  public  by
having  implemented  a  new  editorial  approach  for  its  internet  site  (Europa  2nd
generation.)  This  site  better  reflects  the  priorities  and  daily  activities  of  the
the  President  and  other
Commission,  increases  visibility  and  access 
Commissioners and is arranged thematically.

to 

Furthermore, the Commission will sustain its vigorous efforts further to increase the
speed of payments.

(cid:1)  Priority setting and the efficient use of resources   (White Paper Actions: 12-20)

8  out  of  9  of  the  White  Paper  Actions  in  this  field  have  been  implemented.  The
introduction  of  the  Activity  Based  Management  (ABM)  system,  in  particular  the
Strategic Planning and Programming  (SPP) cycle reinforce the central political steer
of  the  Commission  and  match  the  services’  tasks  to  resources,  thereby  improving
efficiency  across  the  Commission.  ABM  thereby  gives  the  Commission  clear
guidance  on  which  resources  are  best  allocated  to  each  task  thereby  helping  to
facilitate movement to meet new priorities. This will help reinforce the Commission’s
capacity to negotiate over resources and priorities with the other institutions.

All  the  components  of  the  planning  and  programming  cycle  are  now  in  place.
Meanwhile, the transition to Activity Based Budgeting (ABB) is in its final stage and
the first budgetary exercise to be entirely based on ABB will begin in 2003 with the
preparation  of  the  2004  budget.    Under  the  new  system  for  planning  and
programming,  priorities  are  now  set  more  clearly  on  a  central  level  and  the
Commission exercises its right of initiative through issuing legislative proposals in a
more transparent and systematic manner.

The process has been implemented as follows:

(cid:1)  in  the  Annual  Policy  Strategy  (APS)  the  Commission  identifies  priorities,
priority actions and corresponding resources. This decision forms the framework
for the budgetary procedure and for the preparation of the work programme. The
2003  work  programme  announced  which  proposals  will  undergo  an  extended
impact  assessment.  An  extensive  inter-institutional  dialogue  has  also  been
developed both with the European Parliament and the Council: this dialogue is an
important building block for the preparation of the work programme.

(cid:1)  Subsequently,  each  Directorate-General  establishes  Annual  Management  Plans
(AMPs)  on  the  basis  of  the  above  framework.  This  translates  the  activity-based
management  principles  into  the  internal  management  of  Directorates  General,
including  performance  management  based  on  objectives  and  indicators.  All
services  operate  annual  management  plans  and  can  use  a  common  IT  system

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(Integrated Resource Management System, IRMS) for their planning, monitoring
and reporting activities. All of the Directorates General are in a position to report
their annual management plans on this system.

(cid:1)  For  the  first  time,  all  Directors-General  have  presented  an  Annual  Activity
Report  (AAR)  for  the  year  2001  and  signed  a  declaration  on  the  quality  of
internal controls. This exercise was followed by a Synthesis Report for the entire
Commission  that  included  a  comprehensive  Action  Plan  to  remedy  weaknesses
identified  by  the  Directors-General.  The  whole  process,  which  has  demanded
considerable  efforts  from  services  and  staff,  has  radically  improved  the
transparency of the management of activities and the ability to identify and correct
deficiencies. Further improvements to be made to the annual declaration exercise
include  the  application  of  more  precise  guidelines  on  the  identification  of
reservations.  These  guidelines  have  been  adopted  and  are  being  applied  for  the
reporting exercise for 2002. It is envisaged that the Annual Activity Reports take
over  from  a  series  of  other  reporting  requirements,  helping  to  lighten  the
administrative burden on services.

Reform has thus been successful in introducing the procedures foreseen in the White
Paper. This has involved a major overhaul of management and planning activities in a
relatively short space of time, leading to a better matching of tasks and resources and
a clearer focus on the core tasks of the Commission. The Peer-Group exercise of July
2000 was a major step forward in this direction, leading to the identification of human
resource needs corresponding to 1254 posts in specific areas of Commission activity.
In  order  to  close  this  gap  a  substantial  number  of  activities  were  reduced  or
discontinued, staff redeployment took place on an unprecedented scale and additional
posts  were  granted  by  the  Budgetary  Authority.  Further  evidence  of  successful
implementation of this pillar of reform will come in 2003, when one will be able to
judge  the  Commission’s  ability  to  convert  its  Annual  Policy  Strategy  priorities  for
2003  into  practice.  The  2003  APS  (adopted  by  the  Commission  in  February  2002)
identified internal redeployments to match priorities amounting to around 300 staff, of
which around 175 are to be re-deployed between services.  It also identified the need
to  recruit  500  external  staff  for  the  enlargement  preparations.  Moreover,  an  early
retirement scheme adopted in September 2002 will lead to 600 officials leaving over
the next 3 years  - a 1st group of officials will leave in the 1st half of 2003.

The  creation  of  Executive  Offices  is  a  further  important  step  leading  to  improved
efficiency.  From  the  beginning  of  2003  new  Commission  Executive  Offices  will
already  perform  important  administrative  activities.  The  Offices  will  allow  for
potential savings through reinforced inter-institutional co-operation and increased use
of  contract  staff  once  the  new  Staff  Regulations  are  agreed,  and  will  enable  the
Commission further to focus its resources on its core activities. They will also lead to
greater quality of service, more visibility and clearer division of responsibilities. The
Commission  has  already  approved  the  establishment  of  3  new  Offices  aimed  at
rationalising the day to day management of administration and support services. It is
estimated that once fully operational, this alone will lead to annual savings on overall
operating  costs  of  up  to  12  million  euros  –  roughly  14%  of  the  current  cost  of
providing  these  services.  Equally,  the  creation  of  the  European  Personnel  Selection
Office, established in July 2002, is a significant step in rationalising the workings of
the institutions.

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The  ABM  process  up  to  now  has  allowed  the  Commission  to  identify  the
improvements  needed  to  fine-tune  operational  systems,  to  ensure  ownership  by
middle management and to realise further efficiency gains over the years to come. In
particular, the Commission needs to provide its services with additional support tools.
Improvements  are  being  made,  for  instance,  to  IRMS  and  the  interoperability  of
management systems, and the task now is to ensure that the services are fully able to
exploit the capabilities of the IRMS system which, equally, must evolve to meet the
needs of services. Another example where the Commission has had to focus its efforts
is the need to arrive at a clear methodology for identifying human resource needs and
to build this methodology into the ABM approach.

2003  will  be  the  first  year  for  which  all  the  elements  of  the  Strategic  Planning  and
Programming  (SPP)  cycle  are  operational  and  the  internal  management  system
(ABM) is developed to support it. Future cycles will be easier to handle as they will
be informed by the experiences and work carried out in previous years. For example,
the drawing up of future Annual Management Plans will not require modification to
the  mission  statement,  nor  are  major  changes  to  the  strategic  objectives  at  service
level likely.

Simplification

Simplification of procedures and working methods are inherently an on-going element
of  reform  and  have  developed  beyond  what  was  envisaged  in  the  White  Paper.  An
Interim Action Plan of 12 measures was adopted by the Commission in 2000: most of
the  actions  have  now  either  been  entirely  completed  or  are  in  process  of  being
completed  (more  details  are  given  in  Annex  1  to  the  Communication).  A  major
overhaul  of  the  Commission’s  Manual  of  Operating  Procedures  has  also  been
undertaken,  and  two  Quality  Circles  have  been  working  on  ways  of  simplifying  the
rules  on  who  signs  which  documents,  and  the  wider  application  of  service  level
agreements to help improve co-operation between central departments and operational
services.  These  issues  were  highlighted  through  the  Annual  Activity  Reports  –  an
example of how reform is self-propelling.

Outlook

The  Commission  has  significantly  increased  the  efficiency,  transparency  and
accountability  of  its  operations.  These  changes  will  continue  to  bear  fruit  over  the
coming  years.  By  2004  the  Commission  will  have  realised  the  following  through
reform:

-  Through the implementation of Activity Based Management, the Commission will
have  ensured transparency of its tasks and resources. Activity Based Management
enables the Commission to ensure that political priorities are sufficiently resourced
and to determine the degree to which resources have been used  for their intended
purpose.

-  Through  Annual  Activity  Reports,  following  their  fine-tuning  during  2003,  the
Commission  will  have  implemented  a  system  where  the  administration  –  and  in
particular  senior  managers  –  are  accountable  for  ensuring  the  use  of  resources  at
their disposal for the intended purpose.

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-  A  new  generation  of  Executive  Offices  will  have  been  established  and  the
Commission will have all the necessary legal and practical means to realise further
efficiency gains and focus resources on core activities.

(cid:1)  Towards a modernised human resources policy  (White Paper Actions: 21-62)

In  total,  38  out  of  42  of  the  White  Paper  Actions  within  this  reform  strand  are
complete.  The  Commission  has  delivered  on  its  central  commitment  to  issue
proposals to modernise the Staff Regulations. In addition, the large majority of reform
initiatives  that  can  be  achieved  under  the  existing  Staff  Regulations  have  been
finalised  and  are  being  implemented.  The  Commission  has  thereby  lived  up  to  its
commitment to design a once in a generation reform of personnel policy. Some delays
occurred due to consultations with staff, staff representatives and the other institutions
on  an  unprecedented  scale,  but  they  were  necessary  to  ensure  consensus  within  the
Commission  and  with  the  other  institutions.  The  implementation  of  individual  but
closely  interrelated  measures  has  to  be  undertaken  over  a  period  of  time,  and  a
significant chapter of personnel reform is still under negotiation in the Council.

Nevertheless,  a  centrepiece  of  the  new  personnel  policy  -  the  new  appraisal  and
promotion  system  -  is  now  being  implemented  as  of  January  2003.  This  is  an
opportunity to monitor the success of a key element of personnel reform. The system
is designed to reinforce the link between demonstrated merit and career development,
and  gives  particular  importance  to  each  official’s  ability  to  attain  agreed  objectives.
The defining of objectives is  clearly  linked  to  priority  setting  under  ABM,  ensuring
that individual roles are linked to the objectives of the organisation and clearly located
within the ABM framework.

The  appraisal  system  will  be  closely  linked  to  reinforced  training  for  every  official,
which  is  possible  since  the  budgetary  means  were  strongly  reinforced  as  a  result  of
reform.  Furthermore,  the  new  appraisal  rules  will  promote  mobility,  and  assist  the
early  detection  of  any  problems  with  staff  members  meeting  professional  standards.
Implementation of all these elements of the new staff policy will be facilitated by the
system of job descriptions for all staff, which has been in place since the second half
of 2002. This system has been built up using a new IT tool to ensure greater clarity on
the functions and duties of each post in an easily accessible manner. Further software
for  human  resource  management  will  become  available  in  2003  as  foreseen  in  the
White Paper.

The Commission has decided to put in place a system for the performance appraisal of
senior  officials  (A1  and  A2).  An  initial  pilot  project  is  already  underway  and
proposals  to  generalise  the  approach  will  be  put  to  the  College.  In  addition,  the
Commission is about to start the test phase of development/assessment centres which
will  provide  officials  seeking  a  management  career  with  detailed  advice  on  their
aptitude  for  management  posts  and  recommend  in  connection  with  the  training
services personal development plans to help develop the full range of skills required
for such posts.

One White Paper project under the new staff policy has had to be abandoned: the new
officials' training programme, as a first step to a more ambitious trainee programme.
Given the current level of resource pressure, it has not been possible to go beyond the
already substantial induction training provided for newcomers.

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Progress  has  been  made  in  implementing  the  policy  of  equal  opportunities,  in
particular  in  the  area  of  management  appointments.  For  example,  the  number  of
women at A1 and A2 level has risen from 22 out of 262 in 1998 to 35 out of 276 in
2002 (from around 8% to around 13%). It is clear that this number should be further
increased.  Moreover,  in  order  to  fully  implement  a  meaningful  policy  of  equal
opportunity continued emphasis will have to be given to accompanying measures, in
particular in the Commission’s social policy and in terms of working arrangements.

The  new  rules  and  organisational  changes  already  being  implemented  impose  new
requirements  on  staff,  particularly  managers,  who  need  to  adjust  to  new  procedures
and to a reinforced management culture and to devote an important part of their time
to  staff  management.  Such  a  change  takes  time,  requires  general  acceptance  that
managers  delegate  operational  tasks,  and  has  proven  challenging.  Inevitably,
managers have had to take on tasks related to the implementation of reform.

Three  factors  will  continue  to  be  crucial  in  managing  this  change  process  and
maintaining  momentum  during  the  next  phase.  First,  building  ownership  and
consensus in a change process that requires dialogue, training of those involved  and
flexibility to address justified criticism. Secondly, the availability of resources needed
to invest in reform, for instance for training and the up-front investment to implement
the new Staff Regulations. And thirdly, the provision of strong  and interoperable  IT
tools to help manage staff in a consistent and efficient way and reduce the workload
on managers.

The ‘second phase' of implementation will be based on the new Staff Regulations to
be  implemented  in  2004/2005,  extending  beyond  the  mandate  of  this  Commission.
The full  benefit of  the  reform  of  staff  policy  will  only  be  visible  once  the  amended
Staff  Regulations  allow  stronger  merit  incentives  for  officials  under  the  more  linear
career  system  and  the  recruitment  of  contract  agents  within  Commission  Executive
Offices.

Outlook

The  Commission  considers  the  successful  implementation  of  the  reforms  to  staff
policy that have already been agreed, to be of paramount importance during 2003 and
the years to come. Further progress on the reform of personnel policy depends greatly
on the conclusion of negotiations on the Staff Regulations in the Council in mid-2003
– the key milestone  remaining  for  the  reform  of  personnel  policy,  and  an  important
landmark for Commission reform as a whole. A priority for the Commission in 2003
is  the  successful  conclusion  of  these  negotiations.  It  will  be  for  the  Commission  to
secure an outcome which ensures that staff support this reform of  staff policy.

As a result of the reform of personnel policy, by May 2004:

-  Provided  the  necessary  support  from  the  other  institutions  is  forthcoming,  new
officials will be recruited from the new Member States into a new career system
with  2  function  groups  and  a  more  linear  pay  structure.  In  this  system,  strong
incentives  will  be  available  for  high  performing  officials  through  the  annual
appraisal system.

-  The  Commission  will  have  implemented  a  policy  of  mobility  and  life-long

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learning  for  officials  to  ensure  a  motivated,  highly  capable  and  flexible  staff
where excellence is standard throughout an official’s career.

-  All senior officials will be covered by a system of appraisal as well as structured
mobility  to  ensure  that  posts  are  not  occupied  by  a  single  individual  for  longer
than  5  years  apart  from  exceptional  cases.  All  managers  will  have  improved
management  skills  through  mandatory  management  training  and  applying  clear
management criteria to selections.

(cid:1)  The overhaul of financial management, control and audit

(White Paper Actions: 63 – 98)

The large majority of the White Paper actions within this field - 32 out of 36 - have
been  completed  and  are  being  implemented.  A  fundamental  overhaul  of  financial
management and  control structures has been achieved entailing major organisational
changes. The key organisational elements have been put in place, namely the Internal
Audit Capabilities, the Internal Audit Service, the Audit Progress Committee and the
Central  Financial  Service.  In  parallel,  financial  rules  have  been  recast  with  the
adoption  of  a  new  Financial  Regulation  and  its  implementing  Rules  which  entered
into  force  in  January  2003.  Meanwhile,  guidelines  for  sound  project  management
have  not  been  put  in  place  in  the  timeframe  foreseen  by  the  White  Paper.  Another
action that has been delayed is the conclusion of agreements between OLAF and other
services  on  efficient  and  timely  exchange  of  information,  apart  from  an  agreement
concluded between OLAF and the Internal Audit Service.

Globally the reform of financial management, control and audit is well on track. The
recast Financial Regulation marks a major achievement in fundamentally reorienting
the  working  methods  of  the  Commission’s  services  by  integrating  financial  control
into  the  decision-making  process,  to  enable  officials  to  take  responsibility  for
activities  over  which  they  have  control.  This  involves  a  fundamental  change  in  the
roles and responsibilities of the different actors, and has been accompanied by a major
training effort for financial and other relevant staff: more than 3,500 staff have been
trained  in  their  new  responsibilities.  All  Directorates  General  have  defined  new
financial circuits laying down more clearly responsibilities, and the Central Financial
Service  has  been  established.  The  Commission  has  adopted  a  comprehensive  set  of
internal  control  standards.  Beyond  complying  with  these  standards,  it  has  been  the
responsibility  of  individual  Directorates  General  to  implement  control  measures
according to their individual needs, in order to allow for reasonable assurance that the
resources assigned to the activities of Commission services have been used for their
intended  purpose  and  in  accordance  with  the  principles  of  sound  financial
management.

A  series  of  areas  have  been  identified  where  additional  efforts  and  fine-tuning  are
needed to enhance management and control systems. The Commission has been led to
look  at  the  wider  picture  beyond  the  control  activities  related  to  each  individual
financial  transaction,  and  the  role  of  actors  in  control  and  audit  has  been  clarified,
thereby  also  drawing  more  clearly  the  borderline  between  responsibilities  of  central
and  operational  services.  In  presenting  the  Court  of  Auditors’  report  on  2001,  the
President  of  the  Court  considered  the  increased  level  of  accountability  in  the
Commission’s  management  entails  a  ‘genuine  revolution  in  the  Commission’s

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management culture,’ while underlining the need to fine-tune the approach to drawing
up Annual Activity Reports  and declarations, for  example to ensure consistency and
to specify possible observations and reservations.

As  has  been  the  case  in  previous  years,  the  Court  certified  the  reliability  of  the
Commission’s  accounts.  It  also  included  a  number  of  reservations  concerning  the
nature of the Commission’s accounting system, underlining the need to move towards
full accrual accounting, as well as shortcomings connected  with  the  Member  States’
management of European Funds under ‘shared management’, and the role of national
authorities in the management of external aid. On 17 December 2002 the Commission
produced  a  comprehensive  Accounting  Reform  Project  which  includes  tackling  the
Court’s concerns in the accounting field.

As is indicated in Action 11 of the Synthesis Report on the Annual Activity Reports
for  2001,  the  transition  to  a  new  control  system  requires  targeted  management
measures to address specific risks. In addition, risks cannot be fully eliminated in the
Commission’s  financial  management  activities  and  the  Commission  is  not  in  a
position to exercise total control over all its financial activities, not least because the
Treaty provisions mean that the management of more than 80% of Community funds
is shared between the  Commission  and  Member  States.  To  tackle  these  risks,  better
developed accountability of the different actors in the process will be required.

Outlook

With the  entering  into  force  of  the  recast  Financial  Regulation  in  January  2003,  the
remaining  major  milestone  of  reform  in  the  financial  field  has  been  attained.  The
further  implementation  of  reform  will  consist  of  fine-tuning  and  improving  the
working level functionality of the systems already in place, as well as ensuring a high
level of training for the financial actors.

-  The major project that the Commission must implement by 2005 in the financial
field concerns the modernisation of the accounting system. On 17 December 2002
the  Commission  mapped  out  the  major  tasks  to  be  fulfilled,  and  called  for
Commission-wide co-ordination and resource mobilisation.

-  As  was  made  clear  in  the  readiness  assessment  the  Commission  adopted  on  17
December  2002,  while  internal  control  has  improved  and  become  fully
transparent,  further  and  continuing  efforts,  in  particular  training,  will  be  needed
throughout 2003.

-  At the end of 2003, a  full  cycle  of  in-depth  audits  will  have  been  carried  out  to
provide the  Commission with  reasonable assurance  regarding  its  internal  control
systems.

Further fine-tuning of the system will take place through the Annual Activity Report
process which itself serves to identify and  correct any shortcomings in financial and
resource management within Directorates General.

3.  MAKING  A  DIFFERENCE:  HOW  FAR  HAS  THE  REFORM  ACHIEVED  ITS  WIDER

OBJECTIVES?

10

(cid:1)  Preparing for enlargement

The  Commission  is  well  on  track  to  being  ready  for  enlargement.  Nonetheless,
enlargement  imposes  a  very  tight  deadline  on  important  elements  of  Commission
reform.  Commission  staff  have  to  take  on  new  responsibilities  while  operating  in  a
rapidly changing environment. A large number of reform actions will be implemented
in  2003,  which  will  be  a  crucial  year  for  implementation  and  will  put  the
Commission’s  new  structures  to  the  test:  during  2003  the  new  Financial  Regulation
will come into force, the Activity Based Management cycle will be fully bedded down
and the new appraisal and promotion system will be applied  for the first time. Solid
implementation  of  these  changes  should  enable  clear  guidance  to  be  given  to  staff
from new Member States on taking up their responsibilities within the institution. The
administration will need to recruit 3900 staff from 10 new Member States, following
intensive efforts on the part of the newly created European Personnel Selection Office
to manage selection procedures on an unprecedented scale.

It is equally  essential  that the new Staff Regulations are  ready  to enter  into  force  in
2004  to  coincide  with  accession,  so  that  Commission  staff  can  be  recruited  into  the
new career system, not least to ensure an orderly and cost-effective transition. For this
the Commission depends on the other institutions to respect the deadline of June 2003
for agreement on the revised Staff Regulations.

The Commission should be able to stabilise the administration before May 2004 and
be ready in time for enlargement. It will need to make all the necessary administrative
preparations  to  recruit,  train  and  integrate  new  staff  from  the  accession  countries
effectively and rapidly.

(cid:1)  Contributing to better European governance

European governance is about the principles and tools for decision-making within the
context of the multiple layers of decision-making in the European Union. Governance
reform  is  thus  also  directly  linked  to  administrative  reform  in  the  institutions.  The
Commission  is  not  only  focussing  on  improving  the  Commission’s  role  of  policy
initiator and executive, it is at the same time modernising its functioning as a public
administration. In this respect, the Commission reform has been and will continue to
be  conducive  to  the  openness,  participation,  accountability,  effectiveness  and
coherence required by good governance.

One  notable  example  is  the  “better  regulation”  action  plan  adopted  by  the
Commission in June 2002, which proposes a broad range of initiatives to simplify and
improve the regulatory environment, covering the entire legislative cycle from policy
conception  over  decision-making  to  implementation.  Also  in  line  with  Commission
reform  objectives  are  the  initiatives  adopted  in  December  2002  to  follow  up  the
Governance  White  Paper  of  July  2001,  namely  the  Commission’s  principles  and
minimum standards for consulting the public, guidelines for the collection and use of
expert  advice,  and  the  commitment  to  conduct  Impact  Assessments  for  all  major
legislative and policy initiatives having economic, social and environmental impacts.
These new initiatives are fully embedded in the Strategic Planning and Programming
(SPP)  cycle;  their  gradual  implementation  has  started  with  the  Commission
Legislative and Work Programme for 2003. Moreover, the December 2002 follow up
report included communications on the better application and respect of Community

11

law,  and  on  a  framework  for  the  creation  and  operation  of  regulatory  agencies,  to
focus on improving the way rules are applied and enforced across the EU.

Through  a  systematic  consultation  of  interested  parties,  the  carrying  out  of  impact
assessments  for  all  its  major  legislative  and  policy  initiatives,  guidelines  for  the
collection  and  use  of  expertise,  and  the  improvements  to  the  Europa  site,  the
Commission will have implemented practical steps to improve European governance.

(cid:1)  Strengthening the Commission through improved planning and sound financial

management

The success of reform in strengthening the Commission will be measured to a  great
extent by the confidence the institution is able to  inspire in  the outside  world.  This
confidence depends to a large extent on the citizen’s ability to ascertain exactly what
the Commission does and how it does it.  Therefore, reform in the field of planning
and programming as well as sound financial management are key factors that should
increase public confidence in the institution.

The  added  value  of  better  planning  and  resource  management  will  bring  further
visible  efficiency  gains  during  the  present  Commission,  in  accordance  with  the
reform’s important aim of better quantifying resource needs in the different services.
Reform  of  planning  and  programming  has  already  enabled  a  clearer  public
presentation  of  the  Commission’s  activities,  and  an  improved  inter-institutional
dialogue  on  political  priorities,  upcoming  legislative  initiatives,  and  achievements
made. These global benefits of Reform will increase in the longer term.

thus  making 

impact  are  made, 

The  rapid  and  profound  changes  in  the  way  the  Commission  manages  financial
resources  are  essential  for  the  restoration  of  public  confidence  in  the  European
institutions.  Financial  responsibility  has  been  placed  where  the  decisions  with  a
financial 
institution  more  accountable.
Furthermore,  the  Annual  Activity  Reports  have  proven  to  be  a  strong  tool  in
emphasising  responsibility  for  sound  financial  management  within  services  and
building  up  a  culture  of  transparent  self-analysis  and  improvement.  With  the
implementation  of  Accounting  Reform,  the  Commission  will  comprehensively
address criticisms of the Court of Auditors. Financial Reform has also contributed to
an open discussion of systemic problems – such as shared management of Community
funds.

the 

By introducing a clear and transparent process of planning and programming, and by
implementing the most profound financial reform in the history of the institution, this
Commission will improve service delivery and reduce the level of risk inherent in its
activities.  This will help lay the ground to enable the Commission to continue to play
its role with maximum effectiveness.

(cid:1)  Creating a culture of change and continuous improvement

Experience  within  the  Commission  has  already  demonstrated  that  exchange  of  best
practice has begun to bear fruit, and that the implementation of reform  goes beyond
the letter of the White Paper. Understanding of the goals of reform has increased and

12

numerous  bottom-up  initiatives  for  modernisation  within  the  institution,  such  as
Quality  Circles,  the  suggestion  box  on  the  new  simplification  web  site,  and  various
networks  of  officials,  have  sprung  up.  Heads  of  Unit,  who  are  central  to  the
implementation of the reform, have expressed critical support for the process despite
the  burden  it  imposes.  Nevertheless,  continued  political  support  and  intensified
communication efforts will be crucial for practical success in the upcoming difficult
phase of rapid change. Experience so far has shown that operational services have had
to  invest  significantly  in  the  appropriate  and  timely  implementation  of  reform,  and
that  for  some  this  has  imposed  a  significant  resource  strain  with  regard  to  their
operational activities.

This  phase  will  involve  the  challenging  final  stage  of  negotiations  on  the  Staff
Regulations where difficult discussions between the institutions can be expected and
the  risk  of  confrontation  is  high.  It  will  also  see  the  implementation  of  the  new
appraisal  system:  this  will  effectively  be  a  litmus  test  of  reform  and  will  gauge  the
Commission’s  attempts  to  bring  about  a  change  in  culture.  As  far  as  resources
dedicated to reform implementation are concerned, in the orientation debate 2004 the
Commission confirmed that part of the posts freed under the early retirement scheme
will be used for implementation of reform needs not covered by previous allocations.
Success during this period is vital to ensure the support of the services and staff of the
Commission for a real culture of change to take root.

Up to now it has been possible to describe what has been achieved through reform in
terms of implementing the White Paper Actions, but there  has  been  less  scope for  a
clear  quantitative  measurement  of  effectiveness  in  achieving  the  longer-term
objectives of reform. Nevertheless, during the reform process key measures have been
decided.  Based on these measures, it should be possible to have a clear quantitative
picture over time of the evolution of the reform and the differences it is making in the
Commission. Consequently, in order to demonstrate the achievements of reform and
also to identify shortcomings at an early stage, performance indicators should be used
from this point on. The objective is to develop a comprehensive set of indicators by
June 2003. As foreseen in annex 3, these will consist of existing indicators as in table
1, which are to be complemented by further indicators, to be taken from the indicative
list as in table 2.  This will require staff surveys and analysis of available statistics and
data, which will generate clear results for 2003 and 2004.

Furthermore, it should be noted that the Commission has committed itself to evaluate
all  areas  of  its  policies  in  the  future.  This  commitment  naturally  also  applies  to
reform.  Therefore  the  Commission  will  identify  in  the  short  term  an  assessment
framework and methodology, including  feedback from  users,  as  well  as  the  specific
reform initiatives which should be subject to more in-depth evaluation that will yield
more qualitative results on the affects of reform. This latter list should be identified by
June 2003.

By  2004  the  Commission  will  have  addressed  the  needs  of  managers  through  the
development of the most important IT tools for coherent human resource management
and interoperability of different management systems. It will also have demonstrated
its  continued  commitment  to  reform  by  dedicating  posts  under  the  early  retirement
scheme to reform implementation.

Moreover,  by  initiating  a new phase of performance measurement  directly  linked  to

13

the  purposes  of  the  Reform  White  Paper,  beginning  with  the  attached  table  of
performance  indicators,  this  Commission  will  provide  clear  data  on  the  progress  of
reform  over  2003  and  2004.  Going  further  still,  this  Commission  will  start
systematically evaluating whether the intended impact of reform has been achieved, in
order  to  allow  the  process  of  continuous  self-improvement  identified  in  the  White
Paper to take hold and continue under the next Commission.

4.  ROLE OF THE OTHER INSTITUTIONS

The Commission is not able to implement all the reforms proposed in the White Paper
without the support of the other institutions. Besides budgetary questions, the support
of the EP and the Council is essential on two main levels – political and legislative.

First,  both  institutions  gave  a  clear  mandate  and  offered  broad  political  support  for
Commission  reform.  However,  some  criticism  has  emerged  from  the  European
Parliament in recent months.  The comments and questions raised by the Parliament
tend  to  focus  on  disciplinary  cases,  the  Commission’s  accounting  system,  and
individual  instances  of  alleged  fraud.  This  has  distracted  attention  from  the  overall
picture  of  reform.  A  perceived  lack  of  reporting  to  the  outside  world  by  the
Commission on reform progress has contributed to this attitude. The Commission will
have  to  intensify  its  efforts,  in  particular  through  communicating  achievements,  in
order to ensure reform continues to receive the political support needed to make it a
success. The launching of performance measurement linked to reform, as referred to
in the previous chapter, responds to this need.

Secondly, legislative support has been effective in the context of the recast Financial
Regulation, but will be tested when the other institutions conduct the negotiation on
the  proposed  changes  to  the  Staff  Regulations.  Here,  the  legislative  support  of  the
other  institutions  is  crucial  to  the  Commission’s  ability  to  implement  reform.  The
Commission  is  confident  that  the  necessary  level  of  priority  will  be  given  to  the
negotiations, which are currently on track in the Council.

In  addition,  the  dialogue  with  the  other  institutions  on  political  planning  and
programming  has  now  taken  a  more  important  dimension  than  foreseen,  for  two
reasons:

-  Following  the  discussions  with  Parliament  on  how  to  organise  the  political
dialogue  in  view  of  preparing  the  work  programme,  a  procedure  was  agreed  to
provide a framework for exchange of views between the Commissioners and the
parliamentary  committees, and  to take stock  of  the  results of  these  exchanges  in
order to prepare the work programme (the APS+ decision).

(cid:2)  Following  the  European  Council  in  Seville,  the  Council  has  organised  its  own
political  planning  procedure.  Although  the  procedures  are  different  from  the
strategic  planing  and  programming  of  the  Commission,  the  concept  is  the  same,
and  the  Commission  has  an  important  role  to  play  as  a  contributor.  In  addition,
this  goes  in  the  direction  of  a  European  Union  political  planning  which  is
advocated by the Commission.

Another  area  that  closely  involves  the  other  institutions  is  intensified  administrative
collaboration.  The  Secretaries  General  of  the  institutions  have  deepened  inter-

14

institutional administrative co-operation so as to explore the possibilities for realising
efficiency  gains in particular  in  the  areas  of  staff  policy,  buildings  policy,  linguistic
services and administrative preparations for enlargement. This approach has borne its
first  fruits  for  example  through  the  establishment  of  the  inter-institutional  European
Personnel Selection Office. A co-ordinated approach will lead to greater efficiency in
this area and will enable the institutions to cope with the recruitment demands brought
by  enlargement.  Important  progress  has  also  been  made  in  considering  a  European
training  school  for  the  staff  of  the  European  institutions.  Such  a  school  could  help
staff,  particularly  managers,  to  build  up  skills  and  better  understanding  of  the
challenges of the different institutions.

5.  CONCLUSIONS

In less than three years, the Commission has implemented 87 of the 98 actions set out
in the March 2000 White Paper Action Plan, an effort which has been recognised by
the Court of Auditors.   Presenting the Court’s 2001  annual report, its President  said
the  ‘overall  assessment  of  reform  is  positive.  Much  remains  to  be  done…[but]  the
Commission is fulfilling its commitment to work hard at improving its administrative
and  control  practices’.  The  first  phase  of  reform  has  thus  been  achieved  through
structural  and  procedural  changes  and  legislation,  which  has  either  already  been
adopted  or,  in  the  case  of  the  Staff  Regulations,  is  under  discussion  with  the  other
institutions.  The  second  phase  –  implementation  on  the  ground  –  is  now  underway.
The  achievements  described  in  this  Communication  were  possible  thanks  to  the
sustained  commitment  and  effort  of  the  Commission  officials  concerned.  The
Commission must be able to continue to change and modernise. It is becoming  more
important to evaluate progress against the long-term objectives of reform as set out in
the  White  Paper,  and  this  should  start  in  2003  which  is  a  crucial  year  for
implementation.

Despite the considerable achievements made, many of the benefits of reform have yet
to be felt. This is unsurprising because, as the Court of Auditors noted in its report on
the 2001 financial year, the wide-reaching and ambitious nature of the reform means
that  it  requires  time  for  effective  implementation.  Implementing  the  reform  has
uncovered  new  issues  that  were  not  foreseen  by  the  White  Paper.  The  Commission
has identified areas where there are particular difficulties and where extra efforts are
needed. Some have proven particularly complex and resource-intensive, while others
have evolved into initiatives that go beyond the letter of the 98 actions.

Moreover,  the  beginning  of  2003  marks  a  challenging  moment  for  Commission
reform.  The  coming  year  will  see  the  new  Financial  Regulation  fully  implemented
throughout the Commission involving a total shift to decentralised controls, alongside
the  implementation  of  a  central  element  of  the  modernised  staff  policy  -  the  new
appraisal  and  promotion  system.  In  parallel,  negotiations  are  still  ongoing  on  a
significant  chapter  of  the  reform  of  personnel  policy  –  the  revision  of  the  Staff
Regulations  -  for  the  success  of  which  the  Commission  remains  dependent  on  the
continued commitment and support of the other institutions.

Reform  has  also  highlighted  the  need  to  join  up  initiatives  across  the  services.  This
issue  has  been  addressed  by  developing  existing  or  creating  new  structures  for  co-
ordination, such as the Directors General group, the Group of Resource Directors and

15

the Inter-service Co-ordination Group, and  by  charging  the ABM Steering  Group to
co-ordinate reform issues.

For  the  rest  of  its  mandate,  this  Commission  will  continue  its  vigorous  efforts  to
implement  the  concrete  proposals  set  out  in  the  White  Paper  and  thus  ensure  that
reform achieves wider objectives such as preparing the institution for the enlargement
of the EU to 25 Member States.

This effort will reinforce the position of the next Commission by demonstrating that it
is  a  modern,  efficient  and  transparent  organisation  staffed  by  a  highly  talented  and
motivated body of civil servants.

The  Commission  calls  on  the  other  institutions  to  give  it  their  full  support,  in
particular in the forthcoming final phase of negotiations on the Staff Regulations.

16

ANNEXES

Annex 1:

Detailed implementation report

Annex 2: 

Table of state of play on the 98 reform actions

Annex 3:

Indicative list of results-oriented indicators

Annex 4:

Diagram plotting the phases of reform

17

ANNEX 1

DRAFT

IMPLEMENTATION REPORT ON THE WHITE PAPER
ACTION PLAN ON REFORMING THE COMMISSION

18

DRAFT

IMPLEMENTATION REPORT ON THE WHITE PAPER
ACTION PLAN ON REFORMING THE COMMISSION

I.

Introduction

The  White  Paper  on  Commission  reform  sets  out  a  reform  strategy  founded  on  the
implementation  of  a  culture  based  on  service;  improvements  in  the  way  political
priorities  are  set  and  resources  are  allocated;  modernisation  of  human  resources
policy; and a fundamental overhaul of financial management.

A central element of the White Paper is a 98-point Action Plan listing specific action
to be undertaken by the end of 2002. Progress updates on the implementation of the
action plan have been given to the European Parliament and the Council on a regular
basis since early 2000. The present report aims at providing factual information on all
aspects  covered  by  the  White  Paper  Action  Plan,  thereby  updating  the  previous
progress report of May 2002.

II.

A Culture Based on Service

(cid:1)  Actions 1 to 6: Ethical standards in public life

In  line  with  its  undertakings,  the  Commission  presented  a  proposal  for  an  inter-
institutional Committee on Standards in Public Life on 29 November 2000. However,
work did not reach a point where the proposed inter-institutional agreement could be
adopted,  as  the  other  institutions  did  not  accord  the  project  the  required  level  of
support. Against this background, there is regrettably no prospect of progress in this
area.

The Code of Good Administrative Behaviour for Commission staff in their relations
with  the  public  was  adopted  on  17  October  2000  and  has  been  in  effect  since
1 November  2000.    This  Code  is  intended  to  guide  Commission  officials  in  their
dealings with the public and ensure that citizens know what standards to expect when
dealing with the Commission and it has been backed up by an information campaign,
training and monitoring.   A first report on the Code’s implementation was presented
as a Commission Staff Working Paper on 20 November 2002 (SEC(2002)1266).

The  public's  right  of  access  to  documents  of  the  institutions  was  set  down  in
Regulation  (EC)  No 1049/2001  of  the  European  Parliament  and  of  the  Council,
adopted  on  30 May  2001.  The  Commission  adopted  detailed  rules  of  application  on
5 December 2001 and is continuing internally to make sure its departments are aware
of these rights and to see that best practices are applied. The Commission has updated
the 'Europa' and 'Intracomm' web sites and produced user guides.

The  Commission,  the  European  Parliament  and  the  Council  have  also  published
together an inter-institutional guide for citizens available in all the official languages.

19

The inter-institutional Committee foreseen by Article 15 of the Regulation was set up
on  13  March  2002.  This  Committee,  whose  role  is  to  ensure  a  coherent
implementation of the Regulation by the three institutions and develop best practices,
has met twice in 2002.

The  Commission  has  also  provided  access  to  a  register  of  documents  in  electronic
form by 3 June 2002 as foreseen by Article 11 of the Regulation. This register, which
is accessible on the  Internet,  contains  the  references  of the  documents, such  as their
title, date and author, and also makes directly accessible the text of several categories
of documents.

Moreover the Commission adopted on 17 July 2002 a proposal for amendment of the
Constituent  Acts  of  Community  bodies,    in  order  to  extend  the  applicability  of  the
Regulation to the Agencies, according to the joint Declaration made by the European
Parliament,  the  Council  and  the  Commission  relating  to  the  Regulation.  Finally  the
Commission  adopted  on  18  August  2002  a  proposal  for  a  Regulation  (EEC
EURATOM) modifying Regulation N° 354/83 concerning the opening  to  the public
of the historical archives of the EEC and the EAEC (COM (2002) 462 final), in order
to put it into conformity with Regulation (EC) N° 1049/2001, according to Article 18
of this Regulation.

In terms of improving the dialogue with civil society, the draft of minimum standards
for  the  conduct  of  consultation  procedures  was  redesigned  and  integrated  into  the
Commission’s  White  Paper  on  European  Governance.  The  follow-up  involved  the
incorporation  of  a  Communication  on  minimum  standards  for  consultation  in  the
Commission’s Action Plan for Better Regulation, adopted in June. The draft standards
were  themselves  open  to  consultation,  and  the  views  collected  will  inform  the  final
design  of  the  guidelines  approved  by  the  Commission  on  03.12.2002.  Additionally,
the  database  "Consultation:  European  Commission  and  Civil  Society"  (CONECCS),
translating  the  Commission's  commitment  to  inform  the  public  better  about  its
consultation  processes,  went  on-line  in  August  2001  and  further  developments  are
underway.

The  framework  agreement  on  relations  between  the  Commission  and  the  European
Parliament was concluded on 5 July 2000. The Commission's internal Practical Guide
to  the  Framework  Agreement  is  kept  permanently  under  review  in  the  light  of  the
experience.

In  January  2002,  the  Commission    agreed  with  the  European  Parliament  on  a
timetable  for  the  Commission's  legislative  and  work  programme  (annex  IV  to  the
Rules of Procedure of the European Parliament) that sets out procedure and timing for
the  presentation  of  the  document  "Annual  Policy  Strategy"  and  its  legislative  and
work programme.

(cid:1)  Actions 7 to 9: e-Commission

Information  and  Communication  Technology 

Actions 7 and 8a have been integrated into a single Communication on a new strategy
for 
(ICT),  “e-Commission”
(SEC(2001) 924). The fundamental purpose of the e-Commission Communication is
to establish a strategy by which ICT can better contribute towards the implementation
of  the  organisational  and  procedural  changes  required  to  meet  the  objectives  laid

20

down in the White Paper. The Communication set out an e-Commission  provisional
work  plan  (blueprint)  defining  the  required  actions;  this  is  now  being  updated.  The
Steering  Committee  adopted  the  results  of  a  stocktaking  on  the  level  of  ICT
application  in  the  domain  of  internal  administration  in  May  2002.  An  inter-service
working  group  has  now  been  established  to  achieve  better  interoperability  of  the
Commissions  internal  administrative  processes  and  related  management  information
systems, as one of the prerequisites for a more effective and efficient administration.
Furthermore, a Symposium entitled “making the e-Commission work” was organised
with  a  view  to  exchange  information  on  different  projects  covered  by  the  e-
Commission.  The  major  corporate  information  systems  are  being  significantly
enhanced in order to support the internal planning and resource management reforms.

The  underlying  technical  infrastructure  is  being  progressively  upgraded  to  ensure  a
stable and secure platform for the e-Commission.

Concerning action 8b, on 3 April 2002 the Commission adopted a Communication on
Interactive  Policy  Making  (IPM  -  C(2001) 1014).  This  aims  to  improve  governance
by  using  the  Internet  for  collecting  and  analysing  reactions  in  the  marketplace,  thus
providing useful input for the European Union's policy-making process. This initiative
will  be  used  by  the  Commission  to  evaluate  existing  EU  policies  and  for  open
consultations on new initiatives.

The  IPM  instruments  are  now  available  via  a  new  web  service:  "Your  voice  in
Europe" (http://europa.eu.int/yourvoice). This web portal enables citizens, consumers
and businesses to provide input to new initiatives, give feedback on the application of
existing legislation, discuss the future of Europe, or lodge complaints.

The SOLVIT Network has been set up  in June 2002  to help  citizens and  businesses
when they run into a problem resulting from possible incorrect application of internal-
market  rules  by  public  administrations  in  another  Member  State.  It  builds  on  an
existing  network  of  co-ordination  centres,  one  for  each  Member  State,  which  were
established in 1997 to deal with this type of problem. Further steps in order to make
progress on the basis of the SOLVIT-Network were proposed by the Commission on
27 October 2001 (COM(2001) 702) and are currently being implemented.  A database
is being set up that should create peer pressure to encourage Member States to make
the internal market function better.

Action  8c  has  resulted  in  the  creation  of  a  new  Internet  portal  of  the  Commission.
This site better reflects the priorities and daily activities of the Commission, increases
visibility  and  access  to  the  President  and  the  other  Commissioners,  and  is  arranged
thematically.  Development  of  the  EUROPA  2nd  generation  editorial  approach  is
pushing forward, which involves a progressive overhaul of the present structure with
the  objective  of  simplifying  the  search  for  information  independently  of  the
organisational structure of the Commission. The first batch of  generic core  e-service
has  been  made  available  to  all  Commission  services.  A  pilot  interactive  policy-
making  tool  has  been  tested  throughout  2002  and  will  be  soon  made  available.
Finally,  a  call  for  tenders  for  a  web-content  management  system  capable  of  dealing
with  large  multilingual  sites  has  been  launched  in  view  of  improving  the  efficiency
and quality of information produced by the Commission’s services on EUROPA.

21

The  provisional  roadmap  for  the  e-procurement  project  (Action  9)  has  been
established and  the  project team set  up.  The  project  will  be  broken  down  in  several
phases.  The  financing  for  the  first  phase  ("e-noticing")  is  available  and  will  be
implemented under the control of the Office for Official Publications.

(cid:1)  Action 10: Meeting payment deadlines

The  measures  taken  to  implement  the  recommendations  contained  in  an  internal
communication  from  Mrs Schreyer  have  resulted  in  a  marked  improvement  in  the
performance  of  Commission  departments  in  meeting  payment  deadlines,  as  the
attached Annex shows.

III. Priority Setting, Allocation and Efficient Use of Resources

(cid:1)  Actions 12 to 16: Activity-Based Management

Strategic planning and programming cycle and activity-based management

Following  the  adoption  of  the  White  Paper,  the  year  2000  saw  the  launch  of  the
Strategic  Planning  and  Programming  cycle  (ACTION  12),  accompanied  by  the
development of Activity Based Management (ABM).

A specific function was gradually set up in the Secretariat general of the Commission
in  the  second  half  of  2000.  It  became  fully  operational  at  the  beginning  of  2001
(ACTION 13). The main task of this function is to design, carry out and follow up the
above cycle that would define the Commission's policy priorities and ensure the right
match between priorities, actions and resources. In addition, this function ensures the
co-ordination of the introduction of activity based management in the Commission’s
services. The function is made of a dedicated unit in the SG (SG-C1) supported by a
network of correspondents within each DG and Service.

The  first  annual  policy  strategy  (APS),  adopted  in  2001  for  2002,  was  a  pilot
exercise,  by  which  the  Commission  set  up  for  the  first  time  the  framework  for
preparing  the  preliminary  draft  budget  and  for  the  operational  programming  to  be
developed by the services.

The  cycle  continued  with  the  adoption  of  the  work  programme,  by  which  the
Commission  announced  the  detailed  actions  it  intended  to  take  forward  over  the
following year. The work programme found its natural follow-up in the new 3-months
rolling agenda of the Commission, now routinely used to define the weekly agenda
of the Commission in close co-ordination with the services and cabinets.

Following  the  different  steps  in  the  cycle,  all  services  developed  their  first  annual
management plans, on the basis of new common standards rationalising pre-existing
instruments  (established 
in  a  Commission  communication  on  activity-based
management  adopted  in  July  2001):  these  management  plans  translate  the  political
priorities  identified  by  the  Commission  into  the  internal  concrete  programming  of
each Directorate-general.

A major result in 2002 was the preparation of the first annual activity reports for the
2001 exercise by all services, which were subsequently consolidated in the Synthesis

22

of Annual Activity Reports (ACTION 82). This innovation in the system showed the
capacity  of  the  Commission  to  report  on  what  had  been  done  and  its  commitment
towards accountability and transparency. The report has been positively welcomed by
the other institutions, in particular by the Court of Auditors.

In light  of  the developments of  the first cycle  and of  the  experience  acquired  in  the
services, the second APS exercise was the first step in moving from a pilot exercise to
a  fully  operational  cycle  (started  in  2002  for  2003)  to  improve  on  the  identified
weaknesses.

The Commission singled out priorities that were wider by nature, spread all over the
Commission’s  activities  and  complementary  to  each  other,  and  able  to  give  a  clear
sense of the “core business” of the Commission. Those priorities have been welcomed
by  the  other  institutions.  The  APS  confirmed  its  role  as  the  framework  decision  for
the  budgetary  procedure  and  for  the  preparation  of  the  work  programme.  In  this
respect,  the  decisions  made  by  the  Commission  concerning  negative  priorities,
redeployments  to  meet  new  priorities,  and  recruitment  of  external  staff  in  view  of
enlargement must be noted as evidence of the efforts to match political priorities and
resources.

An  exhaustive  inter-institutional  dialogue  is  an  important  building  block  for  the
preparation of the work  programme  and this was  developed  both with the European
Parliament  and  the  Council.  These  institutions  confirmed  that  the  3  priorities  of  the
Commission for 2003 are at the heart of the EU agenda. A document was produced in
September to compile the results of this dialogue and update the APS decision.

Currently  all  Directorates-general  are  establishing  management  plans  on  this  basis.
They will monitor their execution, and at the end of the cycle, produce annual activity
reports to report on results; this framework translates the activity-based management
including
principles 
performance management based on objectives and indicators.

internal  management  of  Directorates-general, 

into 

the 

Reform saw IRMS (Action 14)  as the delivery vehicle for the management plan. To
achieve  this  a  considerable  support  effort  has  been  given  to  DGs  in  2002  with  the
objective of providing services with the ability to provide the central elements of their
management  plans    (Mission  Statement,  Objectives,  ABB  activities,  actions  and
indicators) and monitor and report on their execution through IRMS. Currently 100%
of DGs have established activity trees (identifying activities and related actions), 80%
have  allocated  resources  to  activities/actions  and  all  are  in  a  position  to  report  their
Annual Management Plans in IRMS in accordance with ABM principles.

Finally, the introduction of activity-based management is accompanied by a sustained
training  effort  (ACTION  15):  more  than  1000  officials  have  been  trained  in  the
ABM  concepts,  an  ABM  guide  has  been  published  on  IntraComm  and  a  standard
ADMIN training course on objectives and indicators is currently in preparation.

(cid:1)   Action 17: Externalisation

Under  action  17  of  the  White  Paper,  the  Commission  set  out  to  design  a  strategy
which  would  identify  cases  in  which  externalisation  was  advisable,  those  where
externalisation  would  not  be  appropriate,  and  the  various  possible  types  of

23

externalisation.  Three  main  ways  of  delegating  all  or  part  of  its  activities  and  tasks
were  set  out 
i.e.  delegation,  decentralisation  and
subcontracting.

the  White  Paper, 

in 

The "Planning and Co-ordination Group for Externalisation" (PCG) which was set up
in January 2000 began by presenting the Commission with a report defining in detail
the externalisation forms named in the White Paper. This report was adopted by  the
Commission  on  13 December  2000  as  COM(2000)  788  final.  This  Communication
also  contained  a  proposal  for  a  Council  Regulation  laying  down  the  legislative
framework for the creation of executive agencies to manage Community programmes,
translating the first type of externalisation (delegation) into a new type of body. This
proposal  was  scrutinised  by  the  Court  of  Auditors  (opinion  given  on  25 October
20011) and the European Parliament (resolution voted on 5 July 2001). Based on the
Court's suggestions and the amendments proposed by Parliament, a modified proposal
was adopted by the Commission on 28 December 2001 and forwarded to the Council.
Agreement has in principle been attained in the competent committee of the Council
(Budget  Committee)  on  the  Commission’s  modified  proposal.  Agreement  has  been
attained in the Council, which adopted the text on 19.12.2002.

On  the  second  form  of  externalisation,  i.e.  decentralisation,  the  discussions  within
the  PCG  Externalisation  resulted 
in  a  second  Communication,  adopted  on
13 November  2001 (COM(2001) 648 final),  which  defines  the  terms  and  conditions
for using networks of national bodies. Finally, subcontracting was the subject of an
internal guide strictly defining the tasks which may be subcontracted and how this is
to  be  done,  a  highly  sensitive  area  following  the  report  of  the  Independent  Experts.
This guide contains a standard form of contract. The PCG for Externalisation is now
looking  in  particular  at  the  area  of  Commission  offices  and  analysing  the  extent  to
which different departments need to externalise.

These various forms of externalisation have been written into the recast version of the
Financial  Regulation  (Part I,  Title IV,  Chapter 2,  detailing  ways  of  executing  the
budget).  Article 54  sets  out  a  legal  framework  for  the  executive  agencies,  while
Article 57 provides for subcontracting  and defines its limits with a view to  avoiding
past  problems.  The  New  Financial  Regulation  was  adopted  by  the  Council  on
26.06.2002.

Actions 18 to 20: More efficient, performance-oriented working methods

The  Interim  Action  Plan  of  simplification  measures  adopted  by  the  Commission  in
2000  contained  12  simplification  measures.  Five  of  these  simplification  measures
have  been  entirely  completed.  These  are  Action  1  relating  to  simplification  of  the
Commission’s  decision-making  process,  Action  5  on  changes  to  the  Greffe  2000
system,  Action  6  on  the  introduction  of  the  “Basil-QP”  website  on  Parliamentary
questions  and  Actions  7  and  8  on  rationalization  of  the  procedures  relating  to  the
AIPN  (Appointing  Authority)  function.  Action  3  relating  to  computerisation  of  the
interservice  consultation  procedure  and  Action  11  on  ways  of  rationalizing  regular
reports  will  both  be  wound  up  in  the  next  few  months.  In  the  case  of  another  three
actions,  Action  2  on  simplification  of  the  linguistic  process,  Action  4  extending  the

1

Opinion n° 8/2001.

24

                                                
Greffe 2000 system to other types of documents and Action 10 rationalizing treatment
of the President’s mail, part of the simplification measure has been implemented but
full implementation will depend on new technical tools which will become available
in  the  course  of  2003.  A  Communication  (C(2002)99)  on  Action  9  on  the
modernisation  of  archiving  documents  in  the  Commission  was  adopted  in  January
2002.  The  Communication  establishes  a  framework  for  the  revamping  and
modernisation  of  document  management.  The  required  organisation  has  been
established and a work plan covering the coming years has been adopted

Action  12,  the  setting  up  of  a  “suggestions  box”  has  been  implemented  on  the  new
simplification web site which has been launched in January 2003. Staff will be able to
put  forward  proposals  for  simplifying  and  rationalizing  the  way  they  work.  The
website  also  provides  full  information  on  the  progress  of  the  various  actions  of  the
interim  action  plan,  as  well  as  highlighting  the  new  strategy  on  simplification  (see
below).  In  additions,  the  web  site  provides  examples  of  best  practice  already
implemented within the Commission. The intention is that the website should become
a  comprehensive  information  resource  on  all  matters  relating  to  simplification  and
rationalisation of procedures and working methods across the Commission.

In  July  2002  a  new  strategy  on  simplifying  procedures  and  working  methods  was
defined.  This  proposed  ways  of  tackling  the  simplification  of  procedures  and  above
all  working  methods  in  order  to  consolidate  the  change  in  administrative  culture
brought  about  by  the  reform.  Following  on  from  this  two  Quality  Circles  were
launched.  These  circles  will  bring  together  staff  from  across  the  Commission  to
develop  practical  guidelines  on  specific  topics.  One  circle  is  considering  how  the
concept of “Service Level Agreements” can be used by central departments to provide
a better service for operational services, a problem raised in the AAR and the report
provided by 12 Heads of Unit  in July 2002. The other circle is looking at “Who signs
what”  and  aims  at  developing  recommendations  on  the  simplification  of  circuits  of
signature. Both circles are working intensively so that guidelines be made available in
early  2003.  The  list  of  simplification  measures  to  be  tackled  will  be  updated  on  a
continuous basis.

 A  further  aspect  of  the  work  on  simplification  concerns  the  clarification  and
codification  of existing procedures. Work  on  updating of  the  Commission’s  Manual
of Procedures started in October 2001 and by February this year the updated text will
be  available  to  all  services  via  a  new,  user  friendly  intranet  web  site.  Continuous
development and systematic updates of the new electronic Manual of Procedures are
foreseen.

The decision on job descriptions has been adopted in February 2002 and implemented
in  the  Commission  with  the  help  of  a  new  IT-tool,  the  Job  Information  System.  It
clarifies for each member of staff the functions and duties to be carried out within the
job  they  occupy  as  well  as  on  the  requirements  set  out  for  it.  This  will  allow  for  a
more efficient management of human resources.

New guidelines on the design of organisational charts are being prepared for adoption
in 2003.

25

IV. Human Resources

(cid:1)  Actions 21 to 62: Reform of Personnel Policy

With the adoption of the White Paper in March 2000, the Commission embarked on
an overhaul of personnel policy for its own staff  as well as on important changes to
the  Staff  Regulations  applicable  to  officials  and  other  servants  of  all  the  European
institutions.  Ambitious  reforms  embracing  all  aspects  of  personnel  policy  from
recruitment to retirement were sketched out in broad terms in the White Paper.

The  process  provided  for  the  adoption  of  Consultative  Documents  including
legislative  proposals  on  the  various  aspects  of  personnel  policy,  followed  by
negotiations with staff representatives at the Commission. In addition, throughout that
period internal extensive consultations were held with the staff and the administration
of the other institutions.

Two and a half years after the adoption of the White Paper the vast majority of actions
(38 of the 41) has been implemented:

(cid:3)  Firstly, the Commission initiated a series of  actions  to  fully  exploit  the  potential
for reform under the existing Staff Regulations. Consequently, a large number of
decisions  on  aspects  of  the  new  staff  policy  which  can  be  taken  by  the
Commission on its own have entered into force. Others will follow soon.

(cid:3)  Secondly, on 24 April 2002 the Commission adopted a draft Regulation amending
the Staff Regulations. This draft Regulation incorporates all changes to the basic
rules  governing  the  European  Public  Service,  which  the  Commission  deems
necessary.

A major success of reform was the agreement of the Commission staff representatives
representing the majority of staff in electoral terms to the global package of personnel
policy  reforms.  This  support  provides  a  solid  basis  for  the  process  of  implementing
decisions in the Commission and facilitates negotiations in the Council.

The Council formally consulted the other institutions on the proposal for revising the
Staff  Regulations  on  5  June  2002.  The  conclusions  of  the  General  Affairs  Council
(GAC) of 15 April 2002 invited the other institutions to provide their opinion by end
2002 and set June 2003 as the target date for adoption.  The Council has stuck to its
timetable and finalised a thorough article-by-article reading of the proposal by the end
of  October.  The  European  Parliament  appointed  two  Rapporteurs  but  has  scheduled
the  adoption  of  its  Opinion  for  May  2003.  A  first  position  document  is  being
discussed by the Legal Affairs committee which leads on the dossier.

The proposed amendments to the Staff Regulations and the Commission decisions are
based on the same approach:

(cid:3)  Strengthening the principle of merit in the  European Civil Service. A better  link

between performance and career development will serve this objective.

(cid:3)  Modernising  the policy  on  equal  treatment,  social  welfare  facilities  for  staff  and
working conditions. Such modernisation is essential in order to be able to continue

26

to  recruit  and  retain  the  best  staff  in  an  ever  more  competitive  environment  for
highly qualified multilingual staff.

(cid:3)  Maintaining budgetary rigour in carrying out the reform. The  proposed  costs are
modest  in  the  context  of  a  major  reform  and  are  in  accordance  with  the
Commission’s  commitment  to  respect  the  spending  ceiling  on  Heading V  of  the
Financial Perspectives. In addition, the measures will lead to durable cost control
in the medium term.

The reform of personnel policy should be seen in the context of other administrative
reform  projects,  where  only  the  totality  of  measures  will  enable  the  Commission  to
carry out its tasks under the Treaties with maximum effectiveness. As an example, the
status  of  contract  agent  proposed  for  inclusion  in  the  Staff  Regulations  for  use  in
Offices and Agencies will only bring about the full efficiency gains on the basis of an
increased use of Commission Executive Offices or Agencies for non-core tasks.

The  Commission’s  new  Staff  Policy:  Measures  taken  under  the  existing  Staff
Regulations

The reform process that was set out in the March 2000 Reform White Paper contained
a large number of elements that did not require new legislation by the Council. With
very  few  exceptions  all  of  these  measures  have  now  been  adopted,  broadly  in  line
with the original timetable.

The major innovations introduced by the Commission are as follows:

1.

An integrated appraisal and promotion system

The new system has been adopted by the Commission  and is being implemented.  It
will  not  apply  to  the  other  institutions.  The  system  is  designed  to  reinforce  the  link
between merit and career development and constitutes the centrepiece of an integrated
staff policy where the appraisal system is closely linked to training, mobility and the
early detection of professional incompetence. The system gives particular importance
to each official’s ability to attain fixed objectives. The appraisal will be based on an
intensive dialogue between members of staff  and their direct superiors  and will lead
annually to quantified results recorded in a “Career Development Report”. The basic
criteria  for  assessment  as  laid  down  in  the  Staff  Regulations  (ability,  efficiency  and
conduct  in  the  service)  remain  unchanged.  The  five  training  modules  foreseen  for
preparing  the implementation of this new system  have  all  taken  place  by the  end  of
2002.

The  promotion  exercise  will  in  future  be  based  on  the  quantified  appraisal  of  the
official by the immediate superior (CDR), the quantified assessment of special merit
by the Director-General (or Director for B, C and D staff) and, to a limited extent, the
appreciation of special work in the interest of the institution. The built-in mechanisms
of checks and balances will be maintained but adapted to the new system.

2.

Introduction of structured mobility and career guidance

The  new  guidelines  on  mobility  indicate  that  regular  mobility  is  the  norm  but  that
individual  decisions  are  voluntary.  They  also  introduce  the  notion  of  “reference

27

periods”, which are predefined indicative periods that allow staff to take stock of their
professional development at certain moments in their career. However, the benchmark
periods  and  mobility  are  compulsory  for  staff  occupying  a  post,  which  has  been
classified by their Directorate-General as sensitive.

Furthermore, the Commission has created a Central Career Guidance Function which,
supported by a Career Guidance Network, provides advice to officials who are in the
process of planning their next career moves.

3.

Reinforced training for staff

The  new  training  guidelines  contain  a  set  of  measures  aimed  at  better  alignment  of
training  on  the  Commission’s  strategic  goals  and  values,  and  encouraging  a  close
integration of training into the career development of individuals. A firm commitment
to  increasing  the  resources  devoted  to  training  over  the  coming  years  is  an  integral
part of the decision.

4.

Increased management capacity

A  basic  decision  on  the  selection,  appointment  and  appraisal  of  senior  Commission
officials  was  already  adopted  in  December  2000  and  subsequently  implemented.
Detailed  rules  on  their  appraisal  are  currently  being  prepared.  On  middle
management, the introduction of decentralised selection procedures for heads of unit
has  been  decided  while  negotiations  with  staff  representatives  have  been  concluded
on a decision introducing a probationary period and mechanisms for reassignment to
non-managerial posts.

5.

Safeguarding professional standards

A new Commission decision centres upon early detection of cases where performance
has  not  met  expected  standards.  Remedial  action  would  be  initiated  in  such
circumstances. If this proves unsuccessful, formal procedures may be launched which
could result in downgrading or dismissal.

6.

Effective administrative inquiries and disciplinary proceedings

The Commission decision currently being implemented introduces written procedural
rules  for  administrative  inquiries,  strengthens  defence  rights  for  officials  subject  to
these  inquiries,  and  provides  for  the  creation  of  an  Investigation  and  Disciplinary
Office of the Commission (IDOC). Furthermore, provisions are laid down concerning
the  chairman  of  the  Disciplinary  Board,  who  must  be  either  a  Commission  official
released  from  active  service,  a  former  Commission  official,  or  a  former  official  or
former member of one of the other institutions.

7.

Clear rules for reporting wrongdoings

The  Commission  decision  provides  for  the  possibility  of  reporting  evidence  of
wrongdoing  to  persons  outside  the  Commission  in  the  following  circumstances:  the
official  concerned  has  informed  OLAF  or  the  hierarchy  of  evidence  of  serious
wrongdoing,  which  he/she  reasonably  and honestly  believes  to be substantially  true,
and has allowed OLAF or the hierarchy a reasonable time to investigate the evidence.
Only  if  internal  channels  have  been  used  without  appropriate  action  being  taken,

28

would an official be entitled to report the  evidence to the Presidents of  the  Court of
Auditors,  the  European  Parliament  or  the  Council  or  to  the  Ombudsman.  Officials
meeting these conditions would be protected from adverse consequences.

8.

A reinforced mediation service

The Commission decision widens the role of the Commission Mediator in attempting
to  achieve  an  informal  settlement  of  disputes,  which  may  arise  in  the  context  of
working  relations.  The  number  of  court  cases  will  hopefully  be  reduced  by  this
measure.

9.

An effective social welfare policy for staff

A  Joint  Agreement  between  the  Commission  and  its  staff  representatives  has  been
concluded on the social welfare aspects of the Commission’s human resources policy.
An  Action  Plan  lays  down  the  Commission’s  clear  engagement  to  improve,  in
particular,  childcare  facilities,  social  assistance  activities,  measures  to  help  the
integration of families and sports facilities.

10.

More intensive use of Detached National Experts

The decision on the use of national experts within the Commission has been amended
to  allow  prolonged  detachments  of  four  years’  duration.  The  basic  obligations  of
national  experts  are  aligned  as  far  as  possible  with  those  of  officials  and  the
possibility of part-time work is included.

Overview of the changes to the Staff Regulations proposed by the Commission

The Commission's proposal for modifications  to the Staff Regulations is  outlined  in
Annex II.

Cost of reform

The  package  of  reform  measures  is  fully  consistent  with  the  Commission’s
commitment  to  respect  budgetary  rigour  and  to  leave  a  sufficient  margin  under  the
expenditure  ceiling  of  Heading V  of  the  Financial  Perspectives  for  the  other
institutions.  The  long-term  budget  effects  of  reform  ultimately  imply  a  reduction  in
both expenditure under Heading V and total cost to the budget. Initial "front-loading"
is  a  necessary  precondition  for  realising  the  savings  referred  to  above.  The  formal
legal  proposal  to  amend  the  Staff  Regulations  has  been  accompanied  by  a  financial
statement.

V.

Financial Management, Control and audit

(cid:1)  Actions 63 to 98: A new system of Financial Management, Control and audit

One central aim of the reforms is to create an administrative culture that encourages
officials to take responsibility for activities over which they have control – and gives
them control over the activities for which they are responsible. This should be done in
two  ways:  on  the  one  hand  by  making  authorising  officers  and  all  managers
responsible for the correctness and efficiency of what they do, and on the other hand

29

through  a  radical  overhaul  of  the  Commission’s  financial  management,  control  and
audit systems.

Giving more responsibility to authorising officers and line managers

It is important to establish respective responsibilities and to agree on the role of those
involved in financial management. To this end, the Commission has adopted several
charters relating to Authorising Officers by Delegation, Authorising Officers by Sub-
delegation,  the  Financial  Controller,  Accounting  Officers,  Assistant  Accounting
Officers, and the Internal Audit Service.. These charters describe the  responsibilities
of  each  player  in  the  financial  circuit.  Their  roles  are  based  on  the  delegation  of
powers  as  foreseen  by  the  reform  process,  under  which  Commissioners  no  longer
execute the tasks of Authorising Officer by Delegation.

Training has been organised on the expenditure cycle and for the different basic skills
needed  by  the  operational  services.  This  training  plan  is  being  implemented  and
further  developed  to  cover  the  existing  and  future  needs  of  the  Commission's
departments.  It  is  now  integrated  into  the  permanent  training  process  of  the
Commission.

A variety of support of services for Authorising Officers has been established by the
Central  Financial  Service.  Such  support  services  include  user  networks,  financial
information,  common  financial  information  systems,  and  information  on  specific
technical issues such  as contract management and procurement. Manuals and guides
have  also  been  made  available  on  one  global  website,  "BudgWeb",  on  the
Commission’s intranet.

The recast Financial Regulation was  adopted in June 2002 and has  come  into effect
from January 2003. It includes the appropriate specifications for

(cid:3)  pinpointing the responsibility of Authorising Officers in the financial management

of their procedures,

(cid:3)  switching from a centralised financial control system to one that forms an integral
part  of  daily  management  processes  in  the  Commission's  departments.  This  has
resulted in the abolition of centralised ex-ante control over individual transactions,
and  of  the  centralised  ACPC  advisory  function.  It  also  means  the  transfer  of  the
validation  of  discharge  (“acquit  libératoire”)  for  payments  from  the  accounting
services towards those of the Authorising Officers.

(cid:3)  implementing  the  necessary  internal  audit  and  internal  control  structures  and

responsibilities.

The  Regulation  laying  down  detailed  implementing  rules  for  the  implementation  of
the new Financial Regulation was  adopted by the  Commission on 17.12.2002.These
implementing  rules  will  further  enhance  the  clarification  of  the  responsibilities  and
tasks of the financial actors and contribute to better financial management.

30

A radical overhaul of the internal systems and organisational structures

The organisational structure of the Commission has been adapted in order to create an
appropriate  administrative  environment  for  supporting  the  new  model  of  financial
management  foreseen  under  the  reform  process.  This  has  resulted  in  several
initiatives:

(cid:3)  An initial strengthening of operational services through the decentralisation of the
financial controllers. This was decided on in April 2000 and implemented before
the end of that year.

(cid:3)  The creation of a Central Financial Service under the responsibility of the Budget
Commissioner.  This  service  provides  advice,  training  and  support  to  the
operational departments.

(cid:3)  The establishment of an independent Internal Audit Service in July 2001 under the

authority of the Vice-President for Reform.

(cid:3)  The establishment of specialised, internal audit capabilities in each  DG, reporting

directly to the director–general or head of department.

(cid:3)  The creation of an Audit Progress Committee, comprising four Commissioners and

an external member.

(cid:3)  The dismantling of technical assistance offices (TAOs) and the definition of a clear

framework for externalising some of the Commission’s executive tasks.

In  addition  to  these  organisational  structures,  the  necessary  procedures  and  internal
systems have been defined:

(cid:3)  A  number  of  models  for  financial  circuits  which  provide  a  clear  segregation  of
duties.  Each  operational  department  has  chosen  and  implemented  the  model
appropriate to its needs.

(cid:3)  The Commission has also adopted a set of minimum internal control standards to
be  put  in  place  in  each  DG.  Twenty-four  have  been  laid  down  and  the  detailed
rules for their implementation by departments have been progressively defined.

(cid:3)  Self-assessment  exercises  on  the  DGs’  risks  and  their  implementation  of  these
internal  control  standards  have  been  organised  in  all  DGs  in  order  to  measure
progress in reform and enhance awareness across the different departments.

(cid:3)  The  management  of  recovery  orders  has  been  reorganised  in  order  to  improve

effectiveness and efficiency.

(cid:3)  The  Process  Handbooks  (PHB)  are  intended  to  be  used  by  the  DGs  as  an  aid  in
identifying  risks  in  the  processes  that  are  being  evaluated  and  assess  both
compliance  with  relevant  mandatory  controls  and  adequacy  of  the  financial
controls  set  up  to  mitigate  those  risks.  Currently,  the  PHB  covers  the  following
processes, which have been selected based on those that apply to most operational
DGs:  Procurement,  Grant  Management,  Structural  Funds,  Information  Systems,

31

Recoveries,  Accounting  and  Financial  Reporting,  Fixed  Assets  (IT  equipment,
furniture and fixtures, etc.) and Cash Management.

(cid:3)  IAS  completed  a  review  of  the  process  of  reform  in  March  2001.  A  first  annual
declaration  by  each  director-general  on  the  progress  of  financial  reform  was
undertaken by 30 June 2001. A synthesis report on the progress made by each DG
was adopted by the Commission on 7 November 2001.

(cid:3)  On  1 May  2002,  each  director-general  produced  his/her  first  Annual  Activity
Report  for  2001.  This  report  included  a  results-based  declaration  of  his/her
reasonable  assurance  that  resources  have  been  used  for  the  intended  purpose,  in
accordance with the principles of sound financial management, and that the control
procedures  of  the  DG  give  the  necessary  guarantees  concerning  the  legality  and
correctness of the underlying transactions. The SG, with the assistance of BUDG,
drew  up  a  synthesis  report  of  AARs  and  declarations  which  was  adopted  by  the
College  on  24  July.  In  parallel,  to  give  additional  assurances  to  the  College,  the
IAS carried out a review of the process used by each DG to establish his/her AAR
and declaration. The College took note of this IAS review on 24 July. The action
plan adopted in conjunction with the synthesis report addresses the major findings
of the AAR of the DGs as well as of the process review.

(cid:3)  The new Financial Regulation was adopted by the Council on 25 June 2002. This
Regulation represents a major recasting  of the  previous  one  from  1977.  The  new
Financial  Regulation  lays  down  the  basic  principles  and  rules  for  a  modernised
regulatory framework in line with the latest developments in public administration
regarding  budgetary  and  financial  management.  Moreover,  the  recasting  of  the
Financial Regulation has strengthened budgetary principles, established new rules
on procurement, defined rules for grants, introduced internal control concepts and
clarified the responsibilities of the financial actors and the internal auditor.

(cid:3)  Subsequently,  the  Commission  adopted  a  draft  proposal  on  the  Implementing
Rules  on  24  July,  which  was  submitted  in  late  July  to  inter-institutional
consultation in order  to get the opinion of the  other  institutions, and  amended  on
the basis of the opinions received. The  Regulation laying down detailed rules  for
the  implementation  of  the  new  Financial  Regulation  was  adopted  by  the
Commission  on  23.12.2002.  It  entered  into  force  on  1  January  2003,  with
transitory regimes in some areas (for instance, although the first budget procedure
for  which  ABB  will  be  compulsory  is  the  budget  2004,  the  Commission  had
already  presented  documents  in  the  ABB  format  during  the  previous  two  budget
procedures;  the  chapter  on  accounts  will  apply  progressively  with  a  view  to
entering  into  full  application  as  from  the  budgetary  year  2005;  the  deadlines
concerning the Annual Report of the Court of Auditors will be applicable as from
2005, etc.).

(cid:3)  On  the  basis  of  the  information  provided  by  individual  DGs  and  Services,  a
Commission decision was adopted on 17.12.2002 on the overall state of readiness
of the Commission to operate under the new arrangements. The baseline should be
that the level of control is a least equal to that which operated before. By January
2003  DGs  and  Services  will  need,  if  appropriate,  to  have  adapted  their  financial
systems accordingly and to have integrated in their internal procedures the changes

32

resulting from the recast Financial Regulation and its Implementing rules. Equally
they  will  need  to  have  put  in  place  appropriate  internal  control  arrangements  to
support the abolition of the centralised ex-ante financial control and the ACPC, and
the transfer of the verification of the “acquit libératoire” function for payments to
the Authorising Officer.

Globally, the implementation of reform in the field of Financial Management, Control
and Audit is well advanced. All initiatives have been launched, and all services are in
the  implementation  phase.  Nevertheless,  it  is  clear  that  due  to  the  inherent  risk  of
many of  the Commission’s  activities, not all  control  problems  faced  by  services  are
directly manageable by them, in particular not those where Member States and other
decentralised  managers  exercise  first  level  controls.  Also  for  the  more  directly
manageable control problems reasonable assurance may be achievable only over time,
provided that the Commission disposes of the necessary skills and management tools.
These issues have been addressed in the action plan of the Synthesis Report on AAR
2001 adopted on 24 July.

The  major  challenge  for  the  future  is  to  maintain  the  change  of  culture  and  for  the
procedures  to  evolve  in  line  with  the  changing  needs  of  a  modern  administrative
environment.  In  addition,  completion  of  the  action  related  to  the  decentralisation  of
ex-ante financial control to the operational departments will require fully functioning
ex  ante  controls  and  adequate  control  of  the  compliance  and  effectiveness  of  the
internal  control  systems  in  the  DGs.  This  should  enable  the  related  procedures  and
internal  control  organisation  to  be  enhanced.  Finally,  the  modernisation  of  the
accounting  framework  and  the  progressive  implementation  of  accrual  accounting
principles,  to  be  completed  in  2005,  constitute  a  major  challenge  for  the  financial
framework of the Commission and its implementation will have strong consequences
as well for the accounting services as the operational services.

Results of the Internal Audit Service

The DG declarations substantiated the IAS's own view of three of the internal control
areas that require sustained attention as:

-

-

the need to renew the accounting framework and the underpinning IT systems

the  risk  posed  by  staff  and  skill  shortages  in  control  areas,  especially  in
programme management,

-
the incompatibility of the Treaty assumption of  full  budgetary  accountability
for the Commission versus the need and obligation of shared management applying to
80% of the budget.

Furthermore,  the  audit  work  carried  out  in  2002  provided  additional  examples  of
important  findings  presented  in  its  report  for  2001,  relating  in  particular  to  the
necessary clarification of the roles of key actors in internal control and internal audit.
The  matters  raised  include  on-going  central  management  oversight  which  can  and
should be achieved without jeopardising the Reform principles of decentralisation and
local ownership for control issues within departments.

33

The IAS continued to refine its picture of the Commission's risk profile in the second
part of 2002 and to emphasise DG-specific audit work, in accordance with the Reform
White Paper's action plan (Action 87, last phase).   By the end of  2003  the  IAS will
have carried through a risk-based in-depth audit programme across the Commission's
DGs and Services.  The accumulation of the results of these audits with those of the
second round  of  DG reports  and  declarations  will  help  maintain  the  impetus  behind
Reform and give the Commission a comprehensive picture of its residual risk profile.

34

Annex I

STATISTICS ON SPEED OF PAYMENTS

The table below reflects the situation in the last three budget years. For 2002, only the
period  January  to  October  is  covered.  The  figures  have  been  extracted  using  the
reporting  tool  made  available  to  the  Commission's  departments,  the  introduction  of
which  was  announced  in  Mrs Schreyer's  communication.  A  clear  improvement  over
performance in 1999 is evident.

Average payment times (days)

1995 1996

1997

1998

1999

2000

2001

2002

Account closed/

27.2

35.2

43.6

40.2

39.9

40.6

34.6

36.5

Payment ordered

Sign-off  by  Financial
Control

5.9

5.2

4.8

4.4

3.5

2.3

2.1

1.7

Accounting 
validation

Officer

2.5

2.3

2.7

3.7

4.5

2.9

2.2

1.3

Sent to bank/

7.7

8.0

7.4

7.0

6.2

4.5

4.2

4.2

Bank payment

Average performance

TOTAL 43.9

51.5

58.5

55.1

54.1

50.3

43.1

43.7

Percentage of

1995 1996

1997

1998

1999

2000

2001

2002

Payments executed in

Less than 60 days

83.7

77.7

73.4

73.6

65.1

74.5

79.7

78.8

Between  60  and  90
days

8.8

11.8

9.0

10.9

14.9

11.1

10.6

10.8

More than 90 days

7.5

10.5

17.6

15.5

20.0

14.4

9.7

10.4

35

Annex II

1.

THE PROPOSED CHANGES TO THE STAFF REGULATIONS

A more continuous career structure

A central objective of reforming the career structure of the European civil service has
been to link career development more closely with the performance of officials and to
simplify  the  rigid  system  of  categories.  Pay  progression  should  be  based  more  on
evidence of proven merit than on seniority of service. Furthermore, it is vital to solve
the  problem  of  bottlenecks  in  the  present  system,  where  a  large  number  of  officials
are blocked in the highest grade of their category at around the age of 50 and only a
few  officials  pass  internal  competitions  to  enter  a  higher  category.  The  new  more
continuous  career  structure  that  is  part  of  the  proposed  modifications  to  the  Staff
Regulations provides solutions to these problems by:

(cid:3)  establishing two function groups instead of four categories;

(cid:3) 

introducing  more  promotion  grades  and  fewer  seniority  steps  in  each  function
group.

The  new  career  system  is  based  on  two  function  groups  integrated  in  a  continuous
salary  matrix  of  16  grades  with  5  steps  each.  There  would  be  an  administrators
function  group  replacing  the  present  A  and  LA  categories.  This  function  group  is
envisaged  for  staff  engaged  in  administrative,  advisory,  linguistic  and  scientific
duties.  Candidates  would  need  a  university  degree  or  equivalent  to  enter  the
administrators’ function group.
The  new  assistants  function  group  would  be  created  by  merging  the  B  and  C
categories.  This  merger  is  proposed  mainly  because  more  and  more  C  grade  jobs
involve  increased  responsibilities,  and  it  has  become  difficult  to  make  a  clear
distinction between  the  growing number of  jobs  carried  out  in  these  two  categories.
The  minimum  requirements  to  enter  the  assistants  function  group  would  be  a  post-
secondary education diploma plus professional experience of at least three years. The
transfer from the assistants’ function group to the administrators’ function group will
be  based  on  a  certification  mechanism.  The  D  category  would  be  phased  out  and
gradually  replaced  by  a  new  category  of  staff  known  as  a  “contract  agent”  (see
below).

Another major change reflected in the new career structure is a much more linear pay
progression. The salary at a higher grade would always be equal to or higher than the
salary  in  the  previous  grade.    The  new  system  would  clearly  signal  that  more  merit
leads to more pay.

A vital objective has been to increase the number of grades in the new career system
and  to  reduce  the  number  of  seniority  steps.  This  opens  up  the  possibility  of  an
increased  number  of  promotions  and  thus  creates  the  motivation  for  a  continuous
improvement of performance.

The  new  system  constitutes  a  significant  simplification,  as  promotion  would  always
be  to  the  first  step  of  the  next  grade  with  the  exception  of  middle  and  -  in  specific

36

cases - senior managers, who would be promoted to the second step of the grade. This
exception  complements  the  proposal  to  recognise  the  special  responsibilities  of
middle  and  senior  managers  by  granting  them  an  additional  seniority  step  from  the
moment of their appointment.

The  number  of  seniority  steps,  which  currently  provide  an  automatic  rise  in  salary
every  two  years,  would  be  reduced  in  the  new  system.  The  existing  eight  steps  of
seniority  in  each  grade  with  an  automatic  pay  rise  of  around  20%  to  30  %  over  14
years would be reduced to five steps with a 12,6% rise in salary over 8 years.

In  parallel,  career  profiles  granting  more  administrative  independence  to  the
institutions  to  manage  the  career  of  their  staff  on  the  basis  of  a  statutory  collective
guarantee for career advancement would be introduced in the Staff Regulations. This
guarantee would, obviously, not apply to the individual official. This provision would
ensure  that  the  level  of  today’s  average  lifetime  earnings  would  be  maintained  and
give each institution more autonomy in the management of its human resources.

The  transition  to  the  new  career  structure  has  been  designed  with  the  objective  of
avoiding a  reclassification of staff, which would inevitably lead to  complaints about
the criteria that would have to be applied. Therefore, in the first phase of transition (2
years) the present categories would be maintained  and the individual official’s salary
would not be affected.

In the second phase of full implementation, one integrated pay scale covering the two
new  function  groups  would  be  applied.  Staff  that  cannot  be  placed  in  the  table
immediately would be put on notional steps temporarily added to each grade. Again,
salaries would remain unaffected at that point of transition.

Contract agents and other non-permanent staff

A  new  type  of  official,  the  “contract  agent”,  would  be  introduced  to  carry  out  non-
core activities. These agents would be used in Representations and Delegations of the
institutions,  in  agencies  and  in  other  bodies  created  by  a  specific  legal  act.
Furthermore, they would in the long term replace staff in Category D throughout the
Institutions.

Contract agents could be employed under two fixed-term contracts not exceeding five
years  each,  with  the  possibility  of  obtaining  contracts  of  indeterminate  duration
thereafter. The career structure of such agents would consist of four function  groups
(equivalent to the current A, B, C and D categories) and 18 grades.

The salary scale for contract agents would go up to the equivalent of grade A 6/2 of
the current scale, thus excluding managerial functions. Rights and obligations would
be  defined  by  analogy  to  those  of  temporary  servants,  particularly  as  regards  social
security, allowances and working conditions.

Modernisation of the pay and pension system

The main points in the proposals for reform of the pay and pension package are:

(cid:3)  simplifying the system of allowances;

37

(cid:3)  guaranteeing actuarial balance of the pension scheme;

(cid:3) 

(cid:3) 

introducing  a  permanent  framework  for  flexible  retirement  and  modernising  the
rules governing it, in particular by bringing these rules into line with decisions at
Community level on the free movement of workers and the protection of migrant
workers and

incorporating  a  permanent  method  for  automatic  adjustments  of  salaries  in  the
Staff Regulations.

A clear objective is to make the system of allowances simple, clear and transparent. It
is proposed to end several existing allowances such as the teaching allowance, the rent
allowance  and  the  transport  allowance.  Also,  the  secretarial  allowance  would  be
phased out. Further, the reimbursement of travel and mission expenses would be more
in line with real costs and simpler to administer. The  education allowance  would  be
aligned  more  closely  with  actual  expenditure.  Moreover,  the  reform  of  family
allowances would improve the situation of families and would address, in particular,
the problems faced by parents of young children.

The rights to transfer a part of the salary to another country, adjusted by a correction
coefficient,  would  be  limited  and  would  be  subject  to  the  fulfilment  of  more
restrictive  criteria.  This  weighting  would  be  calculated  on  the  basis  of  purchasing
power in the country as a whole and no longer on the basis of purchasing power in the
capital of the  country  concerned.  This  country-based  weighting  would  also  apply  to
the payment of pensions.

The  present  pension  system,  where  officials  contribute  one-third  of  the  cost  of  the
scheme  and  benefits  are  charged  to  the  budget  of  the  Communities,  would  be
maintained. However, the Commission proposes a systematic and regular examination
of the pension scheme based on strict standards, designed to ensure the short-term and
long-term actuarial balance of the scheme.

The  Commission  has  a  low  rate  of  early  retirement,  unlike  many  national
administrations.  That  is  partly  due  to  the  fact  that  the  reduction  factor  applied  to
pensions  (far  above  what  would  be  justified  by  an  actuarial-balance  approach)  is  a
punitive  element  for  officials  who  wish  to  retire  before  the  age  of  60.  The  pension
reduction factor would thus be diminished in order to remove this obstacle.

Furthermore,  the  Commission  proposes  a  stable  framework  of  circumstances  and
parameters  for  early  retirement  schemes  launched  by  the  institutions,  e.g.  in  the
context of enlargement or restructuring, under the control of the Budgetary Authority.
Although  the  schemes  would  be  voluntary,  the  Appointing  Authority  would  choose
candidates from among those aged 50 and over with more than 10 years’ service. The
financial  conditions  would  depend  on  age  and  seniority,  but  family  allowances  and
health insurance would be provided.

Another  measure  to  increase  flexibility  in  the  retirement  provisions  would  be  the
introduction  of  the  right  to  work  part-time  in  the  last  five  years  before  retirement
unless overriding service interests prevail. In addition, institutions would be given the
right to abolish the reduction factor for pensions in cases where early retirement is in
the interest of the institution.

38

Changes  are  also  proposed  concerning  the  system  of  invalidity  pensions  and
survivors’  pensions.  The  transfer  of  pension  rights  of  officials  leaving  the  service
would be updated, in particular, by limiting the departure allowance and introducing
the possibility of transferring the actuarial equivalent to an insurance or pension fund.

The unemployment fund is also covered by the proposal for amendment to the Staff
Regulations.  The  balance  of  the  fund  would  be  assured  by  increasing  contributions
and restructuring benefits. The benefits would be subject to a time limit depending on
the duration of the period of activity and the level of contributions would be reviewed
every two years.

It is proposed to incorporate a standing method for the annual adjustment of salaries
into  the  Staff  Regulations  in  a  manner  similar  to  that  used  for  the  method  of
adjustment  that  expires  in  2003.  In  this  way,  the  Commission  wishes  to  maintain  a
stable  and  secure  working  environment  and  to  defend  internationally  competitive
salaries for the European civil service.

Rights and obligations, professional standards

Several measures to safeguard professional and ethical standards are proposed:

(cid:3)  clarifying basic rights and obligations;

(cid:3) 

(cid:3) 

(cid:3) 

(cid:3) 

introducing new procedures to tackle professional incompetence;

introducing  new 
(whistleblowing);

rules  on 

the  disclosure  of  professional  wrongdoing

revising disciplinary rules;

tightening up procedures for absence from work.

Basic obligations recognised by case-law would be expressly mentioned in the Staff
Regulations.  These  include  the  obligations  on  the  part  of  officials  to  carry  out  their
duties loyally,  objectively  and impartially.  Also, rules on conflicts  of  interest  would
be defined more precisely.

Furthermore,  the  bounds  of  professional  discretion  would  be  mapped  out  more
precisely, taking account of the new rules on access to documents. The obligation to
seek permission to publish and the conditions for its refusal would be redefined in the
light of judicial decisions. More detailed rules on  ownership  of  intellectual  property
rights  would  also  be  introduced.  A  new  provision  specifies  the  duty  to  refrain  from
sexual and psychological harassment.

New  procedures  to  deal  with  officials  who  do  not  meet  expected  standards  of
performance  are  proposed.  These  procedures  would  be  distinct  from  the  rules
applying to disciplinary proceedings.

With  regard  to  disclosure  of  professional  wrongdoing,  the  proposed  changes  to  the
Staff  Regulations  include  introducing  clear  and  effective  rules  for  whistleblowing.
First,  the  existing  obligations  of  EU  officials  to  report  evidence  of  suspected

39

wrongdoing  to  OLAF  would  be  included  in  the  Staff  Regulations.  Secondly,  the
circumstances  in  which  external  reporting  is  justified  would  be  clarified.  Only  if
internal  channels,  in  particular  reporting  to  superiors  and  reporting  to  OLAF,  have
been used without appropriate action being taken, would an official be entitled to turn
to certain clearly defined persons outside the institution. In this case, evidence may be
reported  to  the  Presidents  of  the  Court  of  Auditors,  the  European  Parliament  or  the
Council or to the Ombudsman.

At  the  same  time,  there  are  provisions  to  protect  officials  who  report  serious
wrongdoing which they reasonably and honestly believe to be substantially true from
adverse  consequences.  In  this  context,  officials  receiving  information  on  serious
wrongdoing will be obliged to pass it on to OLAF.

The  amendment  of  the  disciplinary  rules  in  the  Staff  Regulations  would  result  in  a
more stable composition of the Disciplinary Board and a more appropriate system of
sanctions,  and  reflect  the  role  of  OLAF  within  the  Staff  Regulations.  As  far  as  the
Disciplinary  Board  is  concerned,  a  two-chamber  system  is  proposed.  The  first
chamber would be  responsible  for  officials  in  all  grades  except  for  senior  managers
and the second chamber for senior management grades. ,

Article 59, which has caused problems in all institutions in connection with short- and
long-term absences, would be substantially revised. The new suggested provision sets
out the consequences of a failure to produce a medical certificate to cover a short-term
absence.  It  also  simplifies  procedures  and  shortens  the  time  needed  to  reach  a  final
determination  in  cases  of  absence  where  the  findings  of  the  institution's  medical
examination are contested on medical grounds.

Equal treatment and working conditions

The Commission’s human resources policy in this field focuses on three objectives:

(cid:3)  promotion of equal treatment for both sexes, for disabled people, for people of all

ages, for ethnic minorities and for people in non-marital partnerships,

(cid:3)  creation  of  modern  working  conditions  that  help  to  reconcile  career  and  family

life,

(cid:3)  modernisation  of  social  welfare  policy  with  a  view  to  providing  adequate  social

services for members of staff, their partners and their families.

In  the  proposal  for  amendment  of  the  Staff  Regulations,  the  Commission  suggests
extending  the  principle  of  equal  treatment.  Discrimination  on  grounds  of  age  and
disability as well as racial and ethnic origin would be prohibited. The burden of proof
in establishing a breach of the principle of equal treatment would be reversed. Apart
from that, it is suggested that recognised non-marital partnerships should be  granted
rights  under  the  Staff  Regulations.  Furthermore,  full  equality  between  men  and
women in working life would become an institutional aim in the implementation of all
aspects of the Staff Regulations.

40

With a view to modernising working conditions, the Commission proposes  new  and
extended forms of family-related leave. Working arrangements should become more
flexible with the extension of part-time work and the introduction of job-sharing.

Officials would be granted the right to work part-time to care for a child or a seriously
ill or handicapped close relative.

The Commission suggests that the new Staff Regulations contain a clear commitment
on the part of the institutions to pursue a social welfare policy for their officials and
retired  officials  covering  social  assistance,  social  protection,  the  provision  of  social
infrastructures and appropriate health and safety standards.

41

ANNEX 2

DRAFT

REFORM ACTIONS
STATE OF PLAY AS AT 31 DECEMBER 2002

42

Action
n°

Title

White Paper Milestone2

White Paper
Milestone Target
Date

Current Revised
Target Date

Achievements
as at 31 December 2002

State of Play & Supplementary

Remarks

Interna
l Action
Comple
te3

1

2

3

4

5

Establishment 
of 
Committee on Standards in Public Life

an 

inter-Institutional

Draft 
Agreement

Inter-institutional

30/6/2000

Code of Good Administrative behaviour

Commission 
adopting new Code

Decision

30/4/2000

Proposal for a Regulation on Public access to EP,
Council & Commission documents

& 

Council
Parliament 
Regulation  on  Public  Access
to 
&
Council 
Commission documents

EP, 

31/5/2001

Communication  on  minimum  standards  for  the
conduct  of 
the  Commission’s  consultation
process.

Set  of  recommendations  on
best practice in consultation

31/12/2000

-

-

-

Proposal  adopted  29/11/2000
SEC(2000)2077.

Further  to  feedback  by  the  other  institutions
the proposal will be withdrawn

Implementation report (SEC(2002)1266)

Decision  adopted  17/10/2000  OJ
L 267 (20/10/00).

Regulation adopted (Parliament
&  Council)  28/5/2001  OJ  C223
(8/8/01).

of 

consultation
Approval 
document 
the
for 
"Proposal 
general  principles  and  minimum
standards  for  the  consultation  of
parties"
interested 
(COM(2002)277 
of
15.06.2002)

final 

culture  of 

Final  set  of  consultation  standards  adopted.
Commission  Communication  "Towards  a
reinforced 
and
dialogue  -  General  principles  and  minimum
standards for consultation of interested parties
by the Commission" COM(2002) 704 final of
11.12.2002

consultation 

Establishment of a list of committees & working
groups 
structured
in 
consultation procedures

formal  or 

involved 

New  Commission  database
on  consultation  bodies  for
Europa server

30/6/2001

 05/2002

Information Note on Consultation,
the  European  Commission  and
Civil 
Society
13/9/2001SEC(2001)1361.

The list of the Commission's formal and other
structured  civil  society  consultation  groups
was published  in  June  2002  on  the  CONECS
site.

2 Milestones in brackets refer to actions not originally foreseen in the White Paper but introduced in the course of the Reform process.

3 Action completed by Commission internally (e.g. All internal decisions taken & final proposals put forward)

43

√

√

√

√

√

                                                
6

Framework Agreement with the EP

of
Approval 
Framework  Agreement
by EP & Commission

As  early  as
possible 2000

-

Agreement 
5/7/2000 
(24/4/01).

signed
C121

OJ 

force  and  under  continuous

In 
implementation.

√

7

8

a)  Better  use  of 
Communication Technology (ICT)

Information  &

(Design of a  medium term  strategy  for
IT policy, organisation & resources)

b) Upgrading & improving the security
of  the  Commissions  communications
networks (Definition of strategy)

a) Feedback mechanisms & technology
development setting up procedures

overall
&

of 

Review 
Information 
Communications
Technology strategy

31/7/2000

ongoing

31/12/2000

b)  Moving 
consultation using Internet.

to 

interactive  policy

Review  of  interactive
policy consultations

31/12/2000

c) Constant improvement of the Europa
Website

Continual improvement
to 
Commission
INTERNET

ongoing

9

Electronic  public  procurement  &
transactions

31/12/2000

Review 
public
of 
procurement  Directives
&  internal  practices  &
internal 
of
electronic signatures

use 

-

-

-

-

-

-

Communication  adopted
by  Commission  8/6/2001
COM(2001)314.

Review  has  now  taken  the  form  of  a
Commission  Communication.    Actions
7  &  8a  have  been  integrated  into  a
single  Communication  on  a  new  ICT
strategy.  Implementation of a five year
programme now ongoing.

Communication  adopted
3/4/2001 C(2001)1014.

Communication  adopted
6/7/2001 C(2001)1753.

Communication  set  out  two  linked
mechanisms  for  IPM:  one  for  the
collection  of  feedback,  the  other  for
online consultations.  Development and
pilot actions are ongoing.

This has launched the modernisation of
EUROPA leading to  a  portal  approach
providing  access  to  information  by
theme.

Proposal  on  electronic
tendering 
adopted
10/5/2001 COM(2000)275

Internal  project  plan  set  up,  pilot
actions  launched.  Legislative  package
in process of adoption.

√

√

10

Reporting  on  the  record  of  individual Part 

of 

new 31/1/2001

1/5/2002 

(for

-

Standard  reports  on  payment  delays √

44

 
DGs in meeting payment deadlines

presentation  of  annual
activity  report  by  each
DG (see Action 82)

full report)

available to DGs.

11

Central Invoice register

Establishment 
Commission
information system

of

30/6/2001

 05/2002

12

Design  a  new  Strategic  Planning  and
Programming cycle (SPP)

Adoption  of  guidelines
to operational services

31/10/2000

annual 

2nd 
strategy for 2003

policy

31/12/2000

Structured 
with EP and Council

dialogue

28/2/2001

-

-

Application in tests for DG
BUDG  and  production  for
all  DGs  early  2002  on  a
voluntary basis.

Communication  adopted
25/10/2000
SEC(2000)1744.

Communication
SEC(2002)217/9  adopted
27/2/2002

APS+Communication
COM(2002)/427  adopted
on 28/8/2002

Discussion  with  EP  &
Council

30/11/2000

-

(full)  Annual
by
reports 

First 
Activity 
DGs

31/1/2001

1/5/2002

AAR  exercise  done  for
2001.

Test on-going within selected Services.

-

Definition  of  SPP  cycle  elements  and
of a calendar for action.

Pilot exercise 2002 achieved.

√

Discussion with Council & EP on their
  Agreement  on
system 
interinstitutional 
on
consultation 
Commission work programme

initiated. 

13

Establishment  of  Strategic  Planning  &
Programming function

Commission  Decision
on  SPP  organisation  &
resources

31/5/2000

Commission  Decision
on SPP function

31/7/2000

-

-

Communication  adopted
26/7/2000
SEC(2000) 1294.

The  two  White  Paper  subactions  were
amalgamated 
into  one  Commission
decision on the SPP function including
organisational structure & resources.

√

45

14

Development  of  an  activity-based  IT
instrument to support ABM

Development of IRMS

30/9/2000

IRMS  has  been  developed
to  incorporate  the  basic
reporting
ABM 
including
requirements 
Agenda
2003, 
AMP 
Planning  and  Commission
Work Programme

Deployment  of  IRMS
Commission wide.

31/1/2002

30/6/2002

IRMS  has  been  rolled  out
in all DGs.

15

Promote  diffusion  of  ABM  practise
(launch pilots + training programmes)

Launch  ABM  training
programme

5/2000

 06/2002

16

Strengthening the evaluation system

Communication  to  the
on
Commission 
strengthening 
the
evaluation system

31/5/2000

-

-  In  2002,  there  were  25
"ABM  Presentations  and
in  which
Workshops" 
1550  people  participated,
as well as other seminars.

Communication  adopted
26/7/2000
SEC(2000)1051.

46

the  system 

All  services  have  a  version  of  their
Annual Management Plan in IRMS and
use 
the  ongoing
management  of    Agenda  Planning  and
for the follow up of their contributions
to the Commission Work Programme

for 

Much  more 
APS-cycle and ABM-approach.

integrated 

in  standard

√

√

√

17

A framework for externalisation

Definition 
regulatory framework

of 

new

30/4/2000

Communication  to  the
Commission

30/9/2000

-

-

adopted 

single
Commission 
both
Communication 
subactions i.e. including proposal for a
new type of agency.

covering 

This action was added after publication
of  the  WP  but  is  in  line  with  the
requirements  of  the  WP  on  reform  of
the management of external aid.

√

Communication  adopted
13/12/2000
COM(2000)788.

Communication  adopted
on 
the
reforming 
management  of  external
aid 
16/5/2000
SEC(2000)814.

Council 
Regulation
adopted  19.12.2002  on
the  creation  of  executive
to  carry  out
agencies 
specific  tasks  relating  to
the  management 
of
Community programmes

Commission  Regulation
2343/2002 adopted on the
framework 
Financial
for
Regulation 
traditional  agencies,  of
23.12.2002

-

-

-

47

18

Simplification  of  procedures 
working methods

and

I.  Implementation  of
Interim  Action  Plan
(cf. 
SEC
(2000)1757/6))

-

Re  I:    Actions  1,  5,  6,  7
and 8 of the Interim Action
Plan  are  all  implemented.
These  actions  concern  the
fields of the Commission’s
decision-making  process,
procedures  of  the  AIPN
functions 
(appointing
authority),  Parliamentary
questions  and  the  Greffe
2000 system. Other actions
from the Plan continuously
being pursued.

II.  New  simplification
strategy 
SEC
2002(867))

(cf. 

a) Quality Circles

b) 
website

Simplification

c) 
of
Manual 
Operational  Procedures
of the Commission

48

launched. 

II:  New 

strategy
Re 
approved.  a)  Two  Quality
b)
Circles 
website
Simplification 
box
suggestions 
with 
launched.  c)  Electronic,
of
updated  Manual 
Operational 
Procedures
ready in “test mode”

and 

action 

Re I: The Interim Action Plan covered
12  simplification  actions.  Beyond  the
five  completed  actions  mentioned  in
the 
two
“achievements-“column, 
further  actions  are  being  finalised
(actions  concerning  rationalisation  of
reports 
Commission’s
the 
inter-service  consultation
electronic 
system).  An 
concerning
simplification  of  the  linguistic  process
has  been  finalised  within  the  existing
technical  means,  and  will  be  further
developed by extending the new Greffe
3000 system. The rationalisation of the
treatment of the President’s mail is also
entering  a  new  phase.  The  Interim
Action  Plan  should  be  phased-out  in
the  following  months,  while  allowing
the  above  mentioned  simplification
actions to be pursued.

set  up 

Re  II:  New  actions  of  simplification  have
been launched in 2002, based on a bottom-
up  methodology:  a)  Two  Quality  Circles
have  been 
(“Service  Level
Agreements”    and  “Who  signs  what”)  and
will  deliver  recommendations  on  best
practice  in  2003.  b)  An  interactive  website
on  simplification  has  been  launched  in
January 2003, in particular giving access to
a  “suggestions  box”  which  should  provide
ideas for future actions for simplification. c)
A  new,  electronic  Manual  of  Operational
Procedures will be on-line and  available  to
all  services  by  February  2003,  and  will
continuously 
and
systematically updated.

developed 

be 

(√)

Quality  circles 
October 2002

launched

Communication  adopted
(pilot  exercise)  24/5/2000
SEC(2000) 852.

Guidelines  adopted  on
19/2/2002 C(2002)539.

-

See Action 18.

Based  on  the  Communication  of  May
2000 and the subsequent pilot exercise,
guidelines  for  job  descriptions  were
adopted  and  implemented.  The  new
framework 
setting
for 
combined  with 
the  staff  appraisal
report  as  foreseen  in  the  White  Paper
are  part  of  the  general  implementing
rules  for  Article  43  of 
the  Staff
Regulations (see actions 32-33).

objective 

On-going process.

See action 18

√

√

19

Promoting  personal  responsibility  &
initiative  & 
administrative
leaner 
structures

Guidelines 
for 
description  & 
assignments

job
task

30/4/2000

Implementation  by  all
services

30/7/2000

More  efficient  working
methods - Action Plan

31/12/2000

20

Cross-fertilisation, teamwork & quality
of services

-

-

-

-

-

-

-

49

Note: Actions 21 & 22 have been merged & reviewed: one Communication has dealt with A1 & A2 & the other with Middle Management.

21

Selection of senior managers

31/7/2000

Commission  Decision
to 
the
improve 
Consultative
Committee 
Appointments

on

-

-

Senior

on) 

(Decision 
Management
Communication 
21/12/2000 SEC(2000)2305.

adopted

New  appointment  procedures
implemented

31/12/2000

Proposal  for  Head  of
Unit 
appointments
(A5/4/3)

of 

Assessment 
the
application of  rules on
appointments  to  A1  &
A2

30/6/2002

6/2003

-

22

Ensure 
management performance

continuing 

evaluation 

of

of
Introduction 
appraisal  for  A1s  &
A2s

30/4/2001

Incorporated 
Communication 
appraisal, 
appointment 
Commission 
20/12/00.

into
“The
and
senior
of

selection 
of 

officials” 

Implementation ongoing.

(√)

(√)

-

(√)

See above (21). Contract regarding the
introduction  of  new  management  tools
awarded  to  external  consultants  on
30/11/01. 
for  A1
  Pilot  project 
appraisal started.

Draft 
Commission
Decision  on  middle
management

31/10/2000

-

Commission  Decision
Middle
on 
Management

30/4/2001

Consultative
Communication 
Management) 
28/2/2001 SEC(2001)322.

(Middle
adopted

Final  orientations  adopted  by
on
Commission 
the 
30/10/2001  SEC(2001)1697/6
- 1697/7.

Subject  has  been  split  up  in  two
documents: Decision on Heads of Unit
and a Decision on advisors.

(√)

50

23

Creation of a training Centre

Results 
consideration 
creation  of 
centre

of
of
training

31/7/2000

-

Significant increase in number
of  training  days  in  2001  (+
100%  compared to 2000)

An  inter-institutional  working  group
has  been  set  up  by  the  Secretaries
General  of  the  institutions  in  order  to
for 
propose  different  options 
the
European
of 
establishment 
Administrative  School.  It  could  also
run  the  new  certification  system  for
changing 
groups
(SEC(2001)1697/6.  The  group  will
present  its  report  to  the  Secretaries
General in January 2003.

function 

a 

Management training

24-

Recruitment policy

29

Administrative  preparations  for  being
fully operational on 1 January 2003 are
ongoing.

-  No 
milestone 
foreseen.

specific  WP
originally

-

Draft Agreement on the
creation  of  an  Inter-
Institutional
recruitment office

Consultative
Communication 
recruitment policy

on

31/12/2000

31/12/2000

(Commission Decision)

-

Proposal  to  the  Staff
Regs committee

30/6/2001

Proposal to the Council
(Staff Regulations)

31/12/2001

-

-

-

-

-

-

51

Additional 
training implemented

management

European  personnel  selection
offices  (EPSO)  established  by
decision of the institutions, OJ
L197, 26 July 2002

Consultative
Communication 
28/2/2001 SEC(2001)294.

adopted

on 

Agreement 
common
inter-institutional  principles
for  recruitment  adopted  on
25 July 2002

-  No  changes  to  the  Staff
Regulations were necessary.

-  No  changes  to  the  Staff
Regulations were necessary.

√

√

√

30

New career system

31

Simplification of grading procedures

Consultative
Communication 
new career system

on

30/11/2000

-

Commission Decision

31/12/2001

Proposal  to  the  Staff
Regs committee

31/5/2001

Consultative
Communication 
28/2/2001 SEC(2001)337.

adopted

Final  orientations  adopted  by
the 
on
Commission 
30/10/2001  SEC(2001)1697/6
- 1697/7).

Done January 2002.

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

Draft 
Commission
Decision  on  grading
procedures

31/7/2000

Commission  Decision
on grading procedures

30/11/2000

-

-

(Proposal  to  the  Staff
Regs committee)

-

Proposal to the Council
(Staff Regulations)

Decision  on  changing 
Staff Regulations taken.

the

-

Done January 2002.

Adopted 24 April 2002

52

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

the 

Staff  Regulations 

Simplified grading has been introduced
in 
(see
Communication  “Global  Package”  of
30/10/01).      Legal  proposal  has  been
submitted 
and  Council.
to  EP 
Negotiations ongoing.

√

√

32-33 New 

staff 

appraisal 
Promotion based on merit

system  &

Draft 
Commission
Decision  on  an  annual
staff appraisal system

30/11/2000

-

Consultative
Communication 
28/2/2001 SEC(2001)319.

adopted

Commission  Decision
on  an  annual 
staff
appraisal system

31/5/2001

April 2002 Consultation 
Regulations 
finalised.

of 
Staff
Committee

Implementation  ongoing.  First  staff
report under new system to be prepared
between January and March 2003.

Implementation

2002

2002/2003 General 

rules 

for
implementing Art. 43 and 45
(appraisal  and  promotion)
adopted  by  the  Commission
on 26 April 2002

34

Flexible retirement

31/12/2000

31/12/2000

-

-

Consultative
Communication 
flexible retirement

on

Consultative
Communication 
specific 
scheme 
enlargement

on
retirement
for

Consultative
Communication 
adopted
18/7/2001  SEC  (2001)1207
(incorporating  new  regulatory
framework 
for  enlargement
schemes (see also Action 62).

Proposal  to  the  Staff
Regs committee

31/5/2001

Done January 2002.

Proposal to the Council
(Staff Regulations)

31/2/2001

April 2002 Adopted 24 April 2002

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing.

53

√

√

35

Access to career guidance

Creation 
career 
function

of 

central
guidance

31/12/2000

-

Central career guidance unit
established 1/9/2000.

Creation 
decentralised 
guidance system

of
career

31/7/2001

Career  guidance  system    is
now operational.

New 
SYSPER

version 

of

31/12/2003

2004

-

Development  of  a  new  IT  system  for
human 
management
resources 
(SYSPER II) ongoing.

-

-

Consultative
Communication  on  mobility
adopted 
28/2/2001
SEC(2001)325.

Guidelines 
mobility 
12/02/2002 SEC(2002) 146.

for 
adopted 

internal
on

specific  WP  milestone 
document 

or
No 
consultative 
originally
foreseen.    Legal  proposal  submitted  to
EP and Council. Negotiations ongoing.

(cid:1)

Done January 2002.

April 2002

Adopted 24 April 2002

36

Encouraging mobility

-

(Commission  Decision
on mobility)

(Proposal  to  the  Staff
Regs. Committee)

(Proposal 
Council 
Regulations))

to 

the
(Staff

-

-

-

-

54

37

Inadequate performance

Consultative
Communication 
professional
incompetence

on

31/10/2000

-

Implementation 
of
Early Warning System

31/12/2000

Consultative
Communication 
28/2/2001 SEC(2001)279.

adopted

Integrated  in  general  rules
for implementing Articles 43
and 45. (see action 33)

system: 

Early  warning 
Special
performance  plan  foreseen  in  case  of
the  career
insufficient  markings 
development  report.    Further  measures
foreseen  in  Decision  on  professional
standards  to  be  adopted  by  December
2002.

in 

Proposal  to  the  Staff
Regs Committee

30/4/2001

 Done January 2002.

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing.

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

No  changes  to  the  Staff  Regulations
necessary.

38

Promoting a learning culture

-

-

-

Commission  Decision
on Training Guidelines

31/7/2000

April 2002

39

Supporting the reform process

Report  on  necessary
training  action  linked
to the Reform

31/11/2000

-

Consultative
Communication  on  training
guidelines adopted 28/2/2001
SEC(2001)323.

Final  orientation  adopted  by
the 
on
Commission 
30/10/2001 SEC(2001)1697/6.
Commission 
on
training guidelines adopted on
7 May 2002 C(2002) 729

decision 

in 

Training has been organised in
the  areas  of
particular 
Financial 
Management
(internal and external) and the
policy.
personnel 
new 
Reporting  done  via  annual
reports of Training Office.

55

√

√

√

40

Integrating training  with other areas of
human resource management

41

Reform of language training

Ongoing

specific  WP
-  No 
milestone 
or
consultative  document
originally foreseen. See
Action 38.

of 

Phasing 
new
approach  to  language
training

30/9/2000

42

New officials training program

new
for 
Proposal 
officials’ 
programme
(over  a  new  12  month
probationary period)

31/10/2000

43

Increase training budgets

Increases 
budget 2001-2003

in 

training

-

-

-

-

-

-

New  "survival  courses"  for
and  FR  have  been
EN 
developed 
for
especially 
to
newcomers  who  have 
become quickly operational. A
similar 
the
reform 
pedagogy  (in  order  to  relate
the language courses closer  to
the  working  needs) is  planned
also for the other languages.

of 

Abandoned.

for 

budget 

general
The 
training  in  2001  has  almost
doubled  compared  with  2000
The  budget  for  2002  was
the  2001
comparable  with 
budget.  The  budget  for  2003
will increase by 6% compared
with 2002.

√

√

-

√

DG  ADMIN  has  published  detailed
activity  reports  for  2000  and  2001,
-general  and
covering  all  central 
linguistic- 
in
organised 
Brussels and Luxembourg.

training 

Report  on  measures  to
increase 
internal
training activities

31/10/2000

-

56

100  conversions  of  credits
into  permanent  posts  were
agreed in the 2001 budget.

90 conversions of temporary
into  permanent  posts  were
agreed in the 2001 budget.

Consultative
Communication 
28/2/2001 SEC(2001)295.

adopted

Final  Decision    adopted  by
the  Commission  on  30  April
2002. C( 2002)1559

Consultative
Communication 
28/2/2001 SEC(2001)295.

adopted

abandoned

-

√

Commission proposal for modifications
to  the  Staff  Regulations  foresees  the
creation of a “contract agent”. Decision
on  temporary  agents  abandoned  in  the
light of the Commission proposal.

Ongoing 

process.

44

a)  Multiannual 
transformation 
permanent posts

programme 
credits 

of 

for
into

2001  Budget  –  credits
-> permanent posts

31/12/2000

of
b)  Multiannual 
transformation  of  temporary  posts  into
permanent posts

programme 

2001 budget  –  temp  ->
permanent posts

31/12/2000

of  Commission
c)  Amendment 
decision on Seconded National Experts
(DNE)

Draft 
Decision on DNEs

Commission

30/11/2000

-

-

-

Commission  Decision
on DNEs

31/5/2001

April 2002

d) Recruitment of temporary agents

Draft 
Commission
Decision  on  temporary
agents

30/11/2000

Commission  Decision
on temporary agents

31/5/2001

e)  Phasing  out  of  all  other  contractual
staff on core tasks

Phasing out of all other
contractual 
staff  on
core tasks

31/12/2002

-

-

57

45

Use  of  non-permanent  staff  for  non-
core activities

Draft  Code  of  Conduct
for external personnel

30/11/2000

No 
document 
foreseen.

consultative
originally

Commission  Decision
adopting    new  Code  of
Conduct  for  external
personnel

31/5/2001

46

Examine  the  need  to  change  Staff
Regulations for non-permanent staff

Examination of need to
change the Staff Regs

31/12/2000

(Proposal  to  the  Staff
Regs Committee)

Proposal to the Council
(Staff Regulations)

-

-

Consultative
Communication 
permanent 
28/2/2001 SEC(2001)295

on  non-
staff  adopted

Final  orientation  adopted  by
the 
on
Commission 
30/10/2001

SEC(2001) 1697/6-1697/7

Fast track Decision on 3 years contract
for  auxiliaries  adopted  on  18/3/2002
and  Commission  Decision  on  ENDs
necessitate amendments of the Code of
Conduct for external personnel.

-

-

-

Consultative
Communication 
28/2/2001 SEC(2001)295

adopted

Done January 2002.

April 2002 Adopted 24 April 2002

New  “Contract  Agent”  for  non  core
tasks  executed  by  agencies  or  offices
proposed.

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

√

58

47-51

Equal opportunities

the 

Commission approves 'Targets
for 
and
appointment  of  women  2000'
(12/5/2000) C(2000)1071.

recruitment 

Consultative
Communication 
equal opportunities

on

31/10/2000

-

Commission Decision

-

May 2002

Proposal  to  the  Staff
Regs Committee

31/5/2001

Consultative
adopted
Communications 
29/11/2000  SEC(2000)2085
SEC(2000)2084.

Final 
30/10/2001.

Orientation 

on

Done January 2002.

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing.

Implementation  of 
the  Commission
orientations  of  31/10/2002  ongoing.
Some 
long-term  actions  will  be
included  in  the  4th  action  programme
for  equal  opportunities  for  men  and
women at the European Commission.

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

See action 30

52

A more service-oriented DG ADMIN

Creation of a Customer
Panel

31/7/2000

-

Customer  panel 
23/10/2000.

created

Commission  Decision
on role of DG Admin

28/2/2001

Commission  Decision  taken
on 6.11.02

 April
2002  and
October
2002

59

(cid:1)

(cid:1)

53

Reconciling  professional  &  private
lives

Consultative
Communication 
home 
balance

/  work 

on
life

31/10/2000

-

Commission  Decision
on 
life
home/work 
balance

-

Proposal  to  the  Staff
Regs Committee

31/5/2001

Consultative
Communication 
31/10/2000 SEC(2000)1806.

adopted

Final  orientations  adopted  by
the 
on
Commission 
30/10/2001  SEC(2001)1697/6
- 1697/7.

Done January 2002.

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

(cid:1)

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

54

Social policy

Consultative Document
on social policy

31/10/2000

-

(Commission  Decision
on  social  policy  and
possible proposal to the
Staff Regs Committee)

-

55

Clear rules applied in a clear way

Staff Regs etc on-line

31/7/2000

Results  of  review  of
administrative
procedures

31/12/2000

-

-

60

Consultative
Communication 
28/2/2001 SEC(2001)284.

adopted

Decision March 2002.

Joint agreement between the OSPs and
the Commission on the Social Welfare
aspects  of  its  human  resources  for
Commission  staff  and  action  plan  for
provision  of  facilities  and  services  for
Commission  staff  adopted  on  4  March
2002 (C 2002/842).

 (cid:1)

Legal  proposal  has  been  submitted  to
Council  and  EP  in  May.  Negotiation
ongoing.

Staff 
published 
1/12/2000.

Regulations 
on 

etc
intranet

Implementation of action plan ongoing.

(cid:1)

Action  Plan  for  simplification
and  transparency  in  personnel
policy  was  adopted  in  August
2001.

56

Examination  of  Staff  Regulations  to
remove outdated rules

Examination  of  Staff
Regs

31/12/2000

-

Proposal  to  the  Staff
Regs Committee

31/5/2001

Done  (Working  Document  :
“General  Review’  approved
on  basis  of  Commission
orientation of 18/07/2001)

Done January 2002.

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

+57-58 Discipline

Consultative
Communication 
discipline

on

31/10/2000

-

Consultative
Communication 
29/11/2001 SEC(2000)2079.

adopted

Commission  Decision
administrative
on 
improvements

30/4/2001

Proposal  to  the  Staff
Regs Committee

30/4/2001

Decision 
adopted 
19/2/2002 C(2002) 540.

Done January 2002.

Proposal to the Council
(Staff Regulations)

31/12/2001

April 2002 Adopted 24 April 2002

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

on

(cid:1)

(cid:1)

61

59

Whistleblowing  (rights  &  obligations
for reporting)

Consultative
Communication 
whistleblowing

on

31/10/2000

Proposal  for  an  Inter-
Institutional agreement

31/10/2000

Commission Decision

31/3/2001

-

-

Consultative
Communication 
29/11/2000 SEC(2000)2078.

adopted

Abandoned.

No changes to the Staff Regs originally
foreseen but now being proposed.

Commission  Decision  to  be
adopted on 4 April 2002

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

(cid:1)

(Proposal  to  the  Staff
Regs Committee)

to 

(Proposal 
Council
(Staff Regulations))

the

60

Creation of a central mediation service

-

-

-

-

Creation  of  a  central
mediation 
service
(Commission Decision)

31/12/2000

C (2002) 845

Done January 2002.

April 2002

-

Consultative
Communication 
on
mediation  service  adopted
SEC(2001)1109
18/7/2001 
SEC(2001)1201.

Decision 
on 
March 2002 C 2002/601.

adopted 

4

√

-

62

61

Proposed approach to pay & pensions

Extend 
Method

-

existing

30/6/2000

-

-

(Proposal  to  the  Staff
Regs Committee)

Proposal to the Council
(Staff Regulations)

-

-

adopted
Regulation 
(Council)  18/12/2000 
(two
year  roll  over).    OJ  L326
(22/12/00).

Consultative
Communication  on  pay  &
pensions  adopted  28/2/2001
SEC(2001)274.

Done January 2002.

31/12/2001

April 2002 Adopted 24 April 2002

Legal  proposal  has  been  submitted  to
Council and EP. Negotiations ongoing

62

Review  of  resources  implications  of
reform & policy action

PDB 2001

30/4/2000

Commission  Decision
on 200 ‘Reform’ posts

31/5/2000

Commission
Communication

30/9/2000

63

Description  of  the  responsibility  of
financial actors

Commission  Decision
on  Financial  Reform
package

31/5/2000

64

Delegation of powers

Commission  Decision

31/3/2001

-

-

-

-

-

63

Letter 
adopted 1/9/2000.

of 

amendment

Communication 
12/7/2000 SEC(2000)1142.

adopted

Communication 
26/7/2000 
COM(2001)50.

adopted
SEC(2000)2000

exercise.
review 
Group 
Peer 
Implementation 
ongoing.  Related
proposals  for  ad-hoc  early  termination
of  service  scheme  adopted  by  the
Council  in  September  2002.  The  717
new  posts  stemming  from  the  Peer
Group  review  were  authorised,  as
requested  by  the  Commission,  in  the
2001 and 2002 budgets.

Communication 
13/12/2000 SEC(2000)2203.

adopted

Adoption  des  chartes  du  comptable  et
du CF le 23/11/2001.

P.E. n° 2405/2001.

Communication 

adopted Charter  for  Authorising  Officers  by √

(cid:1)

√

√

on  Internal  Rules  on
of
Execution 
the 
Budget

2/4/2001 SEC(2001)454.

Delegation  &  sub-Delegation  now
operational.

65

Suppression  of  centralised  ex-ante
visas

Proposal  to theCouncil
(Financial Regulation)

30/4/2000

66

Financial Irregularities Panel

Commission  Decision
on setting-up Panel

30/6/2000

67

Financial liability governed only by the
Staff Regulations

Proposal to the Council
(Financial Regulation)

30/4/2000

68

Setting up of an Internal Audit Service

Setting up of the IAS

31/5/2000

-

-

-

-

69

Reporting & Planning of the IAS

Internal  &  Forward
Audit Plans 2001-2003

31/12/2000

-

Annual  Internal  Audit
Report 2000

31/3/2001

Communication 
26/7/2000 COM(2000)461.

adopted

Council Regulation 25/06/02.

New Financial Regulation of
June 2002.

Covered  by  new  Financial  Regulation.
Implementation  in  the  Commission  is
planned to start in 2003.

New  Financial  Regulation
adopted June 2002.

Communications 
21/6/2000 
and 
SEC(2000)1801.

adopted
SEC(2000)1354
31/10/2000

IAS operational on 15/9/2000.

Internal  &  Forward  Audit
Plans  agreed;  transmitted  to
DGs on 5/3/2002

Annual  Internal  Audit  Report
for  2000  taken  note  of  by
Commission on 3/7/2001.

Annual  Internal  Audit  Report
for  2001  taken  note  of  by
Commission on 24/7/2002

√

-

√

√

√

70

Separation  of 

internal  audit 

from Proposal to the Council

30/4/2000

-

Communication 

adopted Separation  of  the  Services  became √

64

effective  on  4 
(2001)1077).

  July  2001  (SEC

24/5/2000 
Regulation 
(Council) 
OJ L111 (20/4/01).

COM(2000)693;
adopted
9/4/2001

Communication 
31/10/2000 SEC(2000)1808.

adopted

Communication 
1/5/2000 SEC(2000)560.

adopted

Site created October 2000.

Unit created 1/2/2001.

Prototype  contract  database
operational 30/6/2001.

Construction  and  tests  of
version 4, 5 and 6.

Two  pilot  experiences  are  currently
implemented 
and  Ceca
(Syslog 
contracts). The deployment to the DGs
will  be  initiated  in  2003  and  has  to  be
completed before the end of 2004.

√

√

√

-

financial control

(Financial Regulation –
fast-track procedure)

71

An Audit Progress Committee (APC)

Commission  Decision
on setting up of APC

-

72

Creation of a Central Financial Service

73

Advice on contracting

74

Contracts database

Commission  Decision
on setting up CFS

31/5/2000

Creation 
intranet site

of 

CFS

30/6/2001

Creation  of  a  Central
Contract  Unit  in  DG
Budget

30/6/2000

Temporary  Contracts
Database operational

30/6/2001

Decision 
configuration 
of 
definitive database

on
a

30/6/2001

-

-

-

-

-

-

65

75

Operational  manuals 
management

for 

financial

Issue of manuals

30/11/2000

76

Contracts & grants

Proposal to the Council
(Financial Regulation)

30/4/2000

77

User networks

78

Minimum standards for internal control

Establishment 
Working Groups

of

31/12/2000

Draft 
Decision

Commission

30/6/2000

Commission Decision

30/9/2000

79

Segregation  of  duties  & 
circuits

financial

Internal  reorganisation
of duties

31/12/2000

-

-

-

-

-

66

Administrative  and  Technical
Vademecum
Assistance 
13/11/2001
adopted 
SEC(2001)1728.

-

Expenditure  life  cycle  manual
has been put on the Web on 17
December 2001.

Proposal  adopted  26/7/2000
COM(2000)461.

Council  Regulation  adopted
on 25 June 2002.

Working Groups established
31/1/2001.

Gradual 
implementation  for
the  financial  part  in  the  first
half of 2001.

Communication 
13/12/2000 SEC(2000)2203.

adopted

New  version  adopted  on
21/12/2001 SEC(2001)2037.

Communication 
13/12/2000 SEC(2000)2203.

adopted

Unique  site  for  all  financial  issues
available in BudgWeb

The  impact  of  the  implementation  of
the standards has been presented in the
first 
of
30/6/2001.

activity 

annual 

report 

A  revision  of  the  implementation  plan
has been adopted on 21/12/2001.

relevant
updating 
Continuous 
Guidelines. New version established in
September 2002.

of 

√

√

√

√

√

80

81

Evolution  of  the  role  of  Finance  Units
in DGs

Change  in  the  role  of
finance units

31/12/2000

Strengthening  the  role  of  the  DGs’
control function (Audit Capability)

Establishment 
Internal 
Capabilities 
Service

of
Audit
in  each

31/12/2000

82

Declaration  by  the  Director  general  in
her/his Annual Activity Report

-

-

-

-

-

Communication 
13/12/2000 SEC(2000)2203.

adopted

Communication 
31/10/2000 SEC(2000)1803.

adopted

Annual Reports done in 2002

First  annual  activity
report

31/1/2001

1/5/2002

Communication
COM(2002)426 
adopted 24/7/2002.

final

√

√

√

Internal  Audit  Capability  Units
established in all Commission Services
by 30/6/2001.

Staffing  problems  to  last  at  least  until
reserve  lists  have  become  available
through  2  external  audit  competitions
(end of 2002).

No  Commission  Decision  originally
envisaged  in  WP.  First  interim  report
on  the  state  of  implementation  of
Reform  on  30/6/2001  &  first  full
annual  report  established  for  1/5/2002.
Circular  SEC(2001)2057  on  Annual
Activity Report 2001 sent to DGs.

Synthesis  Report  adopted  on  24  July
2002.

83

84

Adequate levels of staffing

Amalgamated into Action 62.

See Peer Group review conclusions.

√

Review  &  assessment  of  current
internal controls & financial processes

Describe 
systems

current

30/4/2000

-

Self-assessment

30/9/2000

Description 
systems 
31/5/2000.

of 

current
completed

rounds 

Two 
assessment 
completed

of 

self-
exercise

DGs have undertaken a self-assessment
iteration
in  2000  and  2001.  Next 
planned for beginning 2003. A specific
readiness  assessment  is  underway  for
the  switch 
the  recast  Financial
Regulation  without  centralised  control
entities.

to 

√

67

85

Design of adequate internal controls &
financial processes

Definition  of  control
model

30/9/2000

-

Decisions  made  on  model
1/9/2000.

Changes in organisation
charts

31/12/2000

Compliance  with  all
minimum standards

30/6/2001

86

Deconcentration 
controllers

of 

financial

-

-

-

-

-

Organisational 
changed 1/10/2000.

charts

Summary report adopted
by  the  Commission  on
7/11/2001.

Communications
on
adopted 
of
reorganisation 
financial 
control
12/7/2000  SEC(2000)1146
& 
SEC(2000)1142  &
25/4/2001 SEC(2001)618.

The baseline for 2001 has been defined
in  the  communication  of  21/12/2001.
All  DGs  have  reported  on  progress  in
their  AAR  2001  and  an  overall
synthesis  has  been  adopted  by  the
Commission on 24/07/02

Physical 
started
deconcentration 
31/8/2000  &  should  be  completed  by
early 2003.

Deconcentration

31/8/2000

-

87

Review  made 
services in the change process

by  Commission’s

IAS  review  of  reform
in
progress 
implementation 
of
internal control in DGs.

31/3/2001

-

Completed 26/3/2001.

√

√

√

68

IAS  review  of  DGs’
management  &  control
systems

31/12/2002

31/12/2003

Delay  by  one  year  of  in-
depth  audits  due  to  knock
on  effect  of  decision  to
postpone  by  one  year  the
of
first 
DGs’ 
assurance statements

round 

IAS review of DGs’ process underlying
their  assurance  declarations  of  May
2002 completed in July 2002.

Cycle  of  DG-specific  in-depth  audits
started  in  July  2002,  to  be  completed
by December 2003.

88

Financial Control DG & IGS

Commission  Decision
on  the  abolition  of  the
Inspection  Generale  des
Services (IGS)

Commission  Decision
on  the  abolition  of  DG
Financial Control

89

Consultation  of  Advisory  Committee
on Procurement & Contracts (ACPC)

Commission  Decision
on  new 
implementing
rules

30/4/2000

-

Communication  adopted
18/04/2000
(PV(2000)1475).

following
recasting 
Financial
Regulation

of

30/6/2000

31/12/2002

Financial
New 
Regulation  of  June  2002
and APS 2003

Communication  adopted
15/11/2000
SEC(2000) 1890.

Regulation 
adopted
21/08/2001  OJ  L  228
(24/08/01)  and  has  taken
effect on 31/08/01.

Threshold  for  necessary  consultation
has  been  raised  to  300.000  €  in  a  first
period and to 500.000 € on the basis of
an evaluation on the first period.

90

91

Assessment of Human Resources needs
for financial management & control

a)  Training  on  principles  of  the  new
Commission's financial system

Amalgamated into Action 62

See Peer Group Conclusions.

31/7/2001

Provide 
training 
in 
organisation

in-depth
financial

Initial  Training  finalised
2000.  Now
end 
of 
integrated 
in  continuous
training schemes.

91bThis training will be provided on a
DG by DG basis.

training 

91c  Ongoing,  financial 
to
become  integral  part  of  Commission's
training  programme. 
  Currently  20
financial  courses  are  on  offer,  needs
analysed,  developement  for  additional
courses is under way.

69

√-

√

√

b) Training on 'value for money'

30/6/2001

c)  Training  on  budgetary  &  financial
management

31/7/2002

-

-

Trainingdates  have  been
agreed with two DGs.

Ongoing activity.

Guidelines 
management

for 

sound 

project

Guidelines
Communication

31/12/2000

June 2002

-

Action  delayed  due  to  change  of  lead
service.  Draft  practical  guide  prepared
by  OLAF.  Inter-service  consultation
done.

Better  co-ordination  of 
between OLAF & other services

interaction

Memorandum 
Understanding 
OLAF 
with 
services

of
of
other

31/12/2000

June 2002

Memorandum 
of
Understanding  with  IAS
signed.

Memorandum  of  Understanding  with
DG REGIO and AGRI currently under
preparation.

Fraud  “proofing”  of 
contract management

legislation  &

Commission  Decision
on 
assessment
risk 
procedures

From 
May
2000 onwards

Ongoing

92

93

94

the  follow-up  of 

 As  regards 
the
communication  as  far  as  legislation  is
concerned,  a  specific  working-group,
chaired  by  OLAF  has  beencreated.  A
follow-up 
the  whole
regarding 
communication  is  foreseen  within  the
framework  of  the  Commission  annual
report on the fight against fraud and the
protection 
the  Communities’
financial interests .

of 

Communication
fraud
concerning 
legislation
proofing  of 
and 
contract
management  adopted  on
7 
2001
November 
SEC(2001) 2029 final.

Communication  adopted
31/10/2000
SEC(2000)1811.

95

Optimisation of Early Warning System Commission  Decision
on optimisation of EWS

31/7/2000

-

70

√

-

-

√

√

Communication  adopted
on  the  improvement  of
recovery, 
03/12/2000
SEC(2000)2204.

Revision and consolidation
of  internal  procedures  for
recovery  of  debts
the 
direct
arising 
the
and 
management 
recovery  of 
fines  on
17.12.2002

from 

Communication  provides
the  improvement  of  the
roles  of 
the  different
actors.

Memorandum 
adopted
on  14  August  2001,  C
(2001) 2517

Communication  adopted
on  5  September  2001,
SEC (2001) 1921-

Legal  implementation  adopted:  new
financial regulation; new implementing
internal 
rules; 
procedure
provisions  on 
recovery;  and  new
Communication on recovery)

new 

Issue  of  an  Audit  report  from  IAS  on
recoveries  is  awaited.  This  report  will
make  particular  recommendations  to
improving the recovery activity..

√

√

√

96

More 
recovery of unduly paid funds

effective  management 

of

31/7/2000

-30/06/2002

of
Redefinition 
responsibilities 
and
setting up an adequately
staffed 
organisational
structure

97

98

Improved  financial  monitoring  and
control of Structural Funds

procedures 

on
Structural

New 
monitoring 
Funds

31/7/2000

31/12/2000

Simplified  clearance  procedure 
EAGGF (FEOGA)

for

Statistical 
recommendations

review  &

30/6/2000

71

ANNEX 3 

RESULTS-ORIENTED INDICATORS

(A synthetic index will be used to show the degree of implementation of control standards by DGs).

TABLE 1 : EXISTING PERFORMANCE INDICATORS

OBJECTIVE

PURPOSE

INDICATOR

2002

Promote greater efficiency

Average vacancy rate of available posts

2.5% (November 2002)

Improving  priority
setting 
and
efficient  use  of
resources

Strengthening the principle of merit

Average number of training days per official

6.9 (2001)

Bringing about  a
modernised staff
policy

Modernise  equal  treatment  provisions,
facilities  and  working
social  welfare 
conditions

% of women recruited annually

38.4% (as at November 2002)

% of women in management positions

13.2% Directors

10.1% across A1, A2 and A3

Length of waiting lists for crêches

Around 300 waiting as at January
2002.

Ensure  effectiveness  and  efficiency  of
operations

Average  number  of  days  to  carry  out  a
payment

43.7

RAL in % of total budget

11.6%

The  overhaul  of
financial
management,
control and audit

72

TABLE 2 :

INDICITATIVE LIST OF PERFORMANCE INDICATORS TO BE DEVELOPED

OBJECTIVE

PURPOSE

INDICATOR

a
Creating 
culture based on
service

Ensure timely response when dealing with the public

Average number of days to carry out a payment

transparent
Provide  user-friendly,  accessible  and 
information  on  Commission’s  role  and  activities  to  the
public

Rating by public users usefulness + quality of the Europa
site

Rating  by  public  users  of  the  usefulness  +  quality  of  the
Europe Direct service

Promote greater efficiency

% of officials redeployed to priority activities per year

Improving
priority 
setting
and  the  efficient
use of resources

Develop and communicate vision, mission and values of
link  between
to  staff,  ensure  clear 
organisation 
organisational objectives and  individual roles, and focus
management on obtaining results

%  of    staff  with  a  clear  view  of  the  mission  statement,
objectives and targets of their department.4

% of staff that are fully aware of the rules governing staff
conduct and prevention and reporting of irregularities. 5

% of staff that are fully aware of their individual objectives
and expected results,  and how these fit into the context of
objectives 
their  unit,  directorate  and  directorate
general;.6

for 

4 Internal control standard 9.
5 Internal control standard 1.
6 Internal Control standard 2.

73

                                                
Bringing about  a
modernised staff
policy

The  overhaul  of
financial
management,
control and audit

Strengthening the principle of merit

Difference  of  career  speed  between  fast  and  average
career

% of officials redeployed to priority activities per year

Modernise  equal  treatment  provisions,  social  welfare
facilities and working conditions

Number of officials on part time work

Level  of  staff  satisfaction  with  working  conditions  and
Commission as an employer (results of staff survey)

Number of sleeping commitments

Ensure effectiveness and efficiency of operations

Credit commitment rate per quarter

%  of  managers  and  other  staff  that  receive  reliable  and
accessible  information  on  budget  execution  and  use  of
resources.7

Use resources for intended purpose

% of the budget not committed as planned

% of DGs self-assessed in compliance with Commission’s
internal control standards

7 Internal control standard

74

                                                
Annex 4: Timeline of Reform under Prodi Commission

r
e
t
p
a
h
C
m
r
o
f
e
R

Minimum standards for consultation 

Code of Good Administrative Behaviour

Access to documents

E-commission

SPP cycle

IRMS

Simplification of working methods

Externalisation

Staff appraisal and promotion

Other staff policy under existing Regs

More linear career structure

Other changes to Staff Regulations

New Financial Regulation

Internal control: minimum standards

2000                      2001                    2002                     2003                     2004

Preparation Negotiation, Consultation & Adoption

Implementation/Transition

Full Implementation

75