Proposal for a Decision of the European Parliament and of the Council establishing a general Framework for financing Community actions in support of consumer policy for the years 2004-2007
Date: 2003-01-31
Institutions: European Commission
Subjects: EU policy, activity report, consumer movement, consumer protection, food safety

EN

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 31.1.2003
COM(2003) 44 final

2003/0020 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a general Framework for financing Community actions in support of
consumer policy for the years 2004-2007

(presented by the Commission)

 
EXPLANATORY MEMORANDUM

Decision 283/1999/EC1 establishing a general framework for Community activities in favour
of  consumers  1999-2003  provided  the  first  legal  framework  for  expenditure  on  activities  in
several  areas  of  health  and  consumer  protection.  Decision  283/1999/EC  expires  on  31
December 2003. The present proposal for a Decision of the European Parliament and of the
Council  establishes  a  general  Framework  for  Community  actions  in  support  of  consumer
policy for the period 2004-2007. At the same time, the Commission is submitting a report to
the European Parliament and the Council on the implementation of actions under the current
legal framework during the years 1999-2001, together with an overview of the state of play in
evaluating the activities financed2 during this period.

The  Group  of  Senior  Officials  responsible  for  Consumer  Policy  in  the  Member  States  has
been consulted on the general approach of this proposal on July 18, 2002. The representatives
of the Member States in  the  Advisory  Committee set  up by Decision 283/1999/EC, and  the
national and European consumer organisations represented in the Consumer Committee3 have
also  contributed  to  the  discussions.  These  consultations  confirmed  strong  support  for  the
Commission’s approach to the new legal framework.

The aim of this proposal is to establish an enabling framework for the Community actions in
support of consumer policy set out in the Consumer Policy Strategy 2002-20064, adopted by
the Commission in May 2002, which establishes the following objectives:
(cid:1)  a high common level of consumer protection
(cid:1)  effective enforcement of consumer protection rules
(cid:1)  proper involvement of consumer organisations in Community policy making.

These  objectives  will  be  implemented  through  actions  included  in  the  rolling  programme
(annexed to the Strategy) which will be regularly reviewed by the Commission. This proposal
establishes a direct link between the objectives and priorities of the Consumer Policy Strategy
2002-2006 and the actions to be financed under the proposed Decision. It also provides for the
participation  of  associated  countries  in  these  actions.  An  ex  ante  impact  assessment  of  the
Strategy  was  conducted by external  experts and completed  in February 2002.  The  assessors
broadly endorsed the chosen approach, while expressing some concerns about the sufficiency
of the proposed action programme.  The present proposal and future work programmes must
therefore focus on actions that have the highest impact/resource ratio.

Decision 283/1999/EC covers  various  activities  concerning  health  and  consumer  protection,
including  notably  certain  food  safety  related  actions.  In  line  with  the  Consumer  Policy
Strategy  and  activity  based  budgeting,  the  scope  of  this  proposal  covers  only  issues
concerning  consumer  safety  related  to  non-food  products,  consumer  economic  interests,
consumer  information  and  education,  the  promotion  of  consumer  organisations  at  European
level  and  their  contribution  to  EU  policies  affecting  consumer  interests.  As  set  out  in  the
White Paper on Food Safety5, and confirmed with the adoption of Regulation 178/20026, food
safety related expenditure will be financed under separate legislative acts.

1

2

3

4

5

6

O.J. L 34/1 of 9.2.1999
COM(to be completed)
as set up by Commission Decision 2000/323/EC, O.J. L111/30 of 4.5.2000
O.J. C 137/2 of 8.6.2002
COM(1999)719 final of 12.1.2000
O.J. L 31 of 1.2.2002

2

                                                
The proposal covers the four-year period from 2004  to  2007.  The total  budget proposed for
the four-year period amounts to € 72 million, or € 18 million per year, in operational credits
and  €  32  million,  or  €  8  million  per  year,  in  human  resources  and  other  administrative
expenditure.  This  represents  budgetary  stability  for  consumer  policy  actions,  taking  into
account the transfer of certain food safety related activities to other budget lines in accordance
with activity based budgeting.

The  Report  on  the  implementation  of  actions  under  the  Decision  283/1999/EC  found  that,
given  the  small  size  and  short  duration  of  many  of  the  specific  projects  co-financed,  the
administrative cost was often disproportionately high, and the effectiveness and impact of the
projects  limited.  The  present  proposal  therefore  includes  a  call  for  proposals  for  specific
projects at least every two years, and the possibility of co-financing up to a maximum of 70%.
Eligible projects will need to support the objectives of the Consumer Policy Strategy. In line
with subsidiarity, co-financing of specific projects will no longer be used as an instrument to
provide support to  weak  national consumer  organisations.  Instead,  capacity  building  actions
in  support  of  consumer  organisations,  promoting  the  training  of  staff  and  exchange  of  best
practices, will be directly financed by the Commission.

Decision  283/1999/EC  provides  that  financial  support  for  European  consumer  organisations
“may  not,  in  principle”,  exceed  50%  of  their  operational  expenditure.  The  present  proposal
fixes  a  definitive  ceiling  of  50%  for  this  type  of  financial  contribution.  The  proposal,
however, makes explicit provision for financing up to 95% of the expenditure of organisations
representing consumers interests in the development of standards for products and services at
Community level. This provision confirms the current practice of an exceptionally high level
of  support  in  this  area  and  makes  it  fully  transparent.  It  also  explicitly  recognises  the  high
policy relevance and general European interest of this work as provided for in Article 108 and
113  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European
Communities7.

The  present  proposal  introduces  specific  provisions  for  actions  jointly  undertaken  by  the
Commission and the Member States. It concerns: (a) financial contributions to bodies that are
part  of  existing  Community  networks  set  up  to  provide  information  and  assistance  to
consumers  to  help  them  exercise  their  rights  and  to  obtain  access  to  appropriate  dispute
resolution and (b) actions to be developed in the area of  administrative and enforcement co-
operation with the Member States.

The  proposal  modifies  the  eligibility  criteria  for  the  financial  contribution  to  a  European
consumer  organisation  in  order  to  clarify  that  they  must  be  independent  of  industry,
commerce  and other business interests,  and that their  primary objective  must be to  promote
the health, safety and economic interests of European consumers. 

The present proposal, as opposed to the current Decision, does not incorporate selection and
award criteria for financial contributions to specific projects. These will, instead, be set out in
an  annual  work  programme,  which  is  submitted  to  the  Advisory  Committee  assisting  the
Commission in the implementation of the proposed Decision. In line with the rolling plan of
actions  of  the  Consumer  Policy  Strategy,  the  work  programme  will  define  the  priorities  for
action by objective, the breakdown of the annual budget by type of action, the planned timing
of  calls  for  tender,  calls  for  proposals  and  joint  actions  with  the  Member  States,  and  the
selection and award criteria and indicative amount available for the calls for proposals. 

7

OJ L 248 of 16.9.2002

3

                                                
2003/0020 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a general Framework for financing Community actions in support of
consumer policy for the years 2004-2007

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having  regard  to  the  Treaty  establishing  the  European  Community,  and  in  particular
Article 153 thereof,

Having regard to the proposal from the Commission1,

Having regard to the opinion of the European Economic and Social Committee2,

Acting in accordance with the procedure laid down in Article 251 of the Treaty3,

Whereas:

(1) 

(2) 

(3) 

(4) 

(5) 

1

2

3

4

Consumer policy makes a crucial contribution to two of the European Commission’s
strategic objectives4, namely promoting a new and economic social agenda in order to
modernise  the  European  economy  and  ensuring  a  better  quality  of  life  for  Europe’s
citizens.

The Consumer Policy Strategy 2002-2006 establishes three key objectives. These will
be  implemented  through  actions  included  in  a  rolling  programme  to  be  reviewed
regularly by the Commission.

The objectives and actions in the Consumer Policy Strategy should steer the allocation
of funds for actions implemented under this Framework. 

In line  with the Consumer  Policy  Strategy,  consumer  policy within the scope of this
framework  should  cover  the  safety  of  services  and  non-food  products,  and  the
economic interests of EU consumers. Actions related to food safety are not covered by
this Framework. 

This Framework should provide for actions by the Community, in compliance with the
principle of subsidiarity, to support and build the capacity of organisations and bodies
which work to promote consumer interests at Community or national level.

OJ C […], […], p. […]
OJ C […], […], p. […]
OJ C […], […], p. […]
Commission  Communication  on  the  Strategic  Objectives  2000-2005  ‘Shaping  the  new  Europe’
COM(2000) 154 final

4

                                                
(6) 

(7) 

(8) 

(9) 

This Framework should provide for actions jointly undertaken by the Commission and
one or more Member States to implement the objectives of consumer policy. 

It is  of  general  European interest  within the meaning of  Article 108 of  the  Financial
Regulation  applicable  to  the  general  budget  of  the  European  Communities5  that  the
health,  safety  and  economic  interests  of  consumers,  as  well  as  consumer  interests  in
the development of standards for products and services, are represented at Community
level. 

This  Decision  establishes  a  financial  framework  for  the  entire  duration  of  the
programme which is to be the principal point of reference for the budgetary authority,
within  the  meaning  of  point  33  of  the  Interinstitutional  Agreement  of  6  May  1999
between  the  European  Parliament,  the  Council  and  the  Commission  on  budgetary
discipline and improvement of the budgetary procedure6. 

To  improve  the  effectiveness  and  impact  of  the  activities  of  European  consumer
organisations  and  of  consumer  organisations  representing  consumer  interests  in  the
development  of  standards  for  products  and  services  at  Community  level,  financial
contributions  for  eligible  organisations  may  be  subject  to  framework  partnership
agreements for the duration of this Framework.

(10) 

In  order  to  improve  administrative  efficiency,  and  the  effectiveness  and  impact  of
specific  projects,  calls  for  specific  projects  should  be  published  at  least  every  two
years and support should be provided for up to a maximum of 70% of the cost of the
eligible expenses for implementing the projects.

(11)  The Agreement on the European Economic Area (EEA Agreement) provides that the
countries  of  the  European  Free  Trade  Association  participating  in  the  European
Economic Area (EFTA/EEA countries) should, inter alia, strengthen and broaden co-
operation within the framework of the Community’s activities in the field of consumer
protection.

(12)  This general framework should be open to the participation of the associated Central,
Eastern  and  South  Eastern  European  countries,  Cyprus,  Malta  and  Turkey,  in
accordance  with  the  conditions  laid  down  in  the  respective  bilateral  agreements
establishing the general principles for their participation in Community programmes.

(13) 

In order to increase the value and impact of the framework, continuous monitoring and
regular evaluation of the actions undertaken should be carried out, with a view, where
appropriate, to making necessary adjustments.

(14)  The measures necessary for the implementation of this Decision should be adopted in
accordance with Council Decision 1999/468 of 28 June 1999 laying down procedures
for the exercise of implementing powers conferred on the Commission7.

5

6

7

OJ L 248 of 16.9.2002
OJ C 172/01 of 18.6.1999
OJ L 184, 17.7.1999, p.23

5

                                                
HAVE DECIDED AS FOLLOWS:

Article 1 - Scope 

1.
This Decision establishes a general  Framework for Community actions in support of
consumer  policy,  hereinafter  referred  to  as  “the  framework”,  for  the  period  from  1  January
2004 to 31 December 2007. 

The  actions  to  be  undertaken  under  the  Framework  shall  supplement  the  actions
2.
undertaken by and in the Member States to protect the interests of consumers and to promote
their right to information, education and organisation

The actions to be undertaken under the Framework shall concern the following specific areas:

Article 2 - Areas of action

(a)

(b)

(c)

(d)

protection  of  consumer  health  and  safety  with  respect  to  services  and  non-food
products;

protection of the economic interests of consumers;

promotion of consumer information and education; 

promotion of consumer organisations at European level.

Article 3 - Objectives of the actions

The  actions  to  be  taken  under  the  Framework  shall  help  to  achieve  the  following  general
objectives:

(a)
A high common level of consumer protection, through the  establishment of common
consumer protection  rules and practices  and the  integration  of  consumer  interests  into  other
Community policies; 

(b)
effective  enforcement  of  consumer  protection  rules,  through  market  surveillance,
administrative and enforcement co-operation and consumer access to resolution of complaints
and disputes; and

proper  involvement  of  consumer  organisations  in  the  development  of  Community

(c)
policies affecting consumer interests.

Article 4 - Types of action

1.

2.

3.

4.

The  actions  to  be  taken  under  the  Framework  shall  be  listed  in  the  Annex  by
objectives.

Actions 1 – 8, 11-15 and 19 are directly implemented by the Commission.

Actions 9 and 10 are jointly financed by the Community and one or more Member
States,  or  by  the  Community  and  the  competent  authorities  of  the  third  countries
participating pursuant to Article 9.

Actions 16, 17 and 18 benefit from financial contributions by the Community.

6

Article 5 - Funding

The financial  budget  for  the  implementation  of  this  framework  for  the  period  referred  to  in
Article 1 is set at € 72 million.

The annual appropriations will be authorised by the budgetary authority within the limits of
the financial perspectives.

1.

2.

3.

4.

5.

1.

2.

Article 6 - Financial contribution

The Community contribution to joint actions 9 and 10 as specified in the Annex will,
in principle, be 50%, and in no event exceed 70%, of the total cost of the action.

The financial contributions for action 16 will not exceed 50%, of the expenditure for
carrying out eligible activities.

The financial contributions for action 17 will not exceed 95% of the expenditure for
carrying out eligible activities.

The financial contributions for actions 16 and 17 to eligible organisations that in the
preceding year have proven actively and effectively to represent consumer interests
shall not be subject to the rule of gradual decrease upon renewal.

The financial contributions for action 18 will, in principle, be 50%, and in no event
exceed 70%, of the eligible expenses for implementing the project.

Article 7 - Beneficiaries

The  financial  contributions  for  joint  actions  9  and  10  may  be  awarded  to  a  public
body or a non-profit making body designated by the Member State or the competent
authority concerned and agreed by the Commission.

The  financial  contributions  for  action  16  may  be  awarded  to  European  consumer
organisations which:

(a)

(b)

are non-governmental, independent  of industry,  commerce and other business
interests  and  non-profit-making,  and  have  as  their  primary  objectives  and
activities  the  promotion  and  protection  of  the  health,  safety  and  economic
interests of consumers in the Community, and

have  been  mandated  to  represent  the  interests  of  consumers  at  Community
level by national consumer organisations in at least half of the Member States
that  are  representative,  in  accordance  with  national  rules  or  practice,  of
consumers and are active at regional or national level.

3.

The  financial  contributions  for  action  17  may  be  awarded  to  European  consumer
organisations which:

(a)

are non-governmental, independent of industry and commerce and non-profit-
making,  and  have  as  their  primary  objectives  and  activities  to  represent
consumer interests in the standardisation process at Community level, and

(b)

have  been  mandated  to  represent  the  interests  of  consumers  at  Community
level  by  national  consumer  organisations  in  the  Member  States  that  are

7

representative, in accordance with national rules or practice, of consumers and
are active at national level.

4.

The  financial  contributions  for  action  18  may  be  awarded  to  any  legal  person  or
association of legal persons that acts independently of industry and commerce and is
actually responsible for the implementation of the projects.

Article 8 - Exclusions

Applicants or tenderers and contractors who are found guilty of making false declarations, or
are found to have seriously failed to meet their contractual obligations, shall be excluded from
the award of further contracts in accordance with the rules set out in the Financial Regulation
applicable to the general budget of the European Communities, hereinafter referred to as “the
Financial Regulation”. 

Article 9 - Participation of third countries

The framework shall be open to the participation of:

EFTA/EEA  countries  in  accordance  with  the  conditions  established  in  the  EEA

(a)
Agreement;

(b)
Associated countries of Central, Eastern and South Eastern Europe, Cyprus, Malta and
Turkey,  in  accordance  with  the  conditions  laid  down  in  the  respective  bilateral  agreements
establishing the general principles for their participation in Community programmes. 

Article 10 - Consistency and complementarity

1.
The Commission shall ensure that the actions implemented under this framework are
consistent  with  the  Consumer  Policy  Strategy  2002-2006  and  subsequent  consumer  policy
development.

2.
The Commission shall ensure that there is consistency and complementarity between
the  actions  implemented  under  the  Framework  and  other  Community  programmes  and
initiatives.

The Commission shall adopt an annual work programme including:

Article 11 - Work programme

(a)

(b)

(c)

(d)

1.

the priorities for action under each objective,

the breakdown of the annual budget among the types of action identified in Article 4, 

the  planned  timing  of  the  calls  for  tenders,  the  joint  actions  and  the  calls  for
proposals,

in the case of calls for proposals, the selection and award criteria for actions 16, 17
and 18, and the indicative amount available for each of these calls for proposals. 

Article 12 - Publication

The Commission shall publish the following in the Official Journal of the European
Communities and on the Internet site of the European Commission:

8

(a)

(b)

2.

a call for proposals for actions 16 and 17; and

a call for proposals for action 18 describing the priorities for action to be undertaken,
at least every two years.

A  list  of  the  recipients  of  financial  contributions  and  a  list  of  the  actions  funded
under  the  Framework  shall  be  published  each  year  on  the  Internet  site  of  the
European Commission with indication of the amounts.

Article 13 - Monitoring and evaluation 

1.
The  Commission  shall  ensure  effective  and  regular  monitoring  of  the  actions
undertaken  under  the  Framework  and  shall  present  to  the  European  Parliament  and  to  the
Council a mid-term report on the implementation of the Framework by 31 December 2005.

2.
The  Commission  shall  present  to  the  European  Parliament  and  to  the  Council  an
evaluation report on actions carried out under the Framework before submitting a proposal for
its possible renewal, and in any case by 31 December 2007 at the latest.

Article 14 - Implementation of measures

The Commission shall be responsible for the management and implementation of this

1.
Decision in accordance with the Financial Regulation.

The Commission shall take the  measures provided for in Article 4(3) and  (4)  and  in

2.
Article 11 in accordance with the procedure referred to in Article 15(2).

Article 15 - Committee

The  Commission  shall  be  assisted  by  a  committee,  hereinafter  referred  to  as  “the

1.
committee”.

Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC

2.
shall apply, having regard to the provisions of Article 8 thereof. 

3.

The Committee shall adopt its rules of procedure.

Article 16 - Entry into force 

This Decision will enter into force on the third day of its publication in the Official Journal of
the European Communities.

Done at Brussels, 

For the European Parliament
The President

For the Council
The President

9

ANNEX 

The actions referred to in Article 4 listed by objectives

Objective (a): A high common level of consumer protection

Action 1.
regarding non-food products and services.

Scientific  advice  and  risk  analysis  relevant  to  consumer  health  and  safety

Action 2.
self-regulatory initiatives, including inter alia:

Preparation  of  legislative  and  other  regulatory  initiatives  and  promotion  of

2.1. Comparative analysis of markets and regulatory systems

2.2. Legal and technical expertise for policy development on the safety of services

2.3. Technical  expertise  for  the  development  of  standardisation  mandates  for
products and services

2.4. Legal and technical expertise for policy development on the economic interests
of consumers

2.5. Workshops with stakeholders and experts

Monitoring  and  assessment  of  market  developments  with  an  impact  on  the
Action 3.
economic and other interests of consumers, including, inter alia, price surveys, inventory and
analysis of consumer complaints and surveys of changes in the structure of markets.

Action 4.
The collection and exchange of data and information that provide an evidence
base for the development of consumer policy and for the integration of consumer interests in
other EU policies, including inter alia surveys of consumer and business attitudes, collection
and analysis of statistical and other relevant data. 

Objective (b): Effective enforcement of consumer protection rules

Action 5.

Co-ordination of surveillance and enforcement actions, including, inter alia:

5.1. Development  of  IT  tools  (e.g.  databases,  information  and  communication
systems) for enforcement cooperation

5.2. Training, seminars and exchanges of enforcement officials for joint enforcement
actions

5.3. Planning and development of joint enforcement actions

5.4. Pilot joint enforcement actions

Development  of  databases  covering  the  application  of  and  jurisprudence  on
Action 6.
consumer  rights  deriving  from  Community  consumer  protection  legislation,  including  the
completion and improvement of the database on unfair contract terms.

Action 7.
including, inter alia:

Monitoring  and  assessment  of  the  safety  of  non-food  products  and  services,

10

7.1. Reinforcement  and  extension  of  the  scope  of  the  RAPEX  alert  system,  taking
developments in market surveillance information exchange into account 

7.2. Technical analysis of alert notifications

7.3. Collection  and  assessment  of  data  on  the  risks  posed  by  specific  consumer
products and services

7.4. Development of the Consumer Product Safety Network1.

Action 8.
Monitoring  of  the  functioning  and  assessment  of  the  impact  of  Alternative
Dispute  Resolution  schemes,  in  particular  of  on-line  schemes  and  their  effectiveness  in
settling  cross-border  complaints  and  disputes,  as  well  as  technical  assistance  for  the  further
development of the European Extra-Judicial Network system.

Financial  contributions 

Action 9. (Joint Action)
for  public  or  non-profit  bodies
constituting  Community  networks  that  provide  information  and  assistance  to  consumers  to
help  them  exercise  their  rights  and  obtain  access  to  appropriate  dispute  resolution  (the
European  Consumer  Centres  Network  and  the  Clearing  Houses  of  the  European  Extra-
Judicial Network, under the conditions set out in Article 7(1).

Action 10. (Joint Action)
Financial  contributions  for  joint  surveillance  and  enforcement
actions  to  improve  administrative  and  enforcement  co-operation  on  Community  consumer
protection legislation, including the General Product Safety Directive, and other actions in the
context of administrative co-operation, under the conditions set out in Article 7(1).

Objective (c): Proper involvement of consumer organisations in EU policies

Action 11.
Provision of specific technical and legal expertise to consumer organisations to
support their participation in, and input into, consultation processes on Community legislative
and non-legislative policy initiatives, as well as their contribution to market surveillance.

Action 12.
including international standardisation bodies and international trade organisations.

Representation of the interests of European consumers in international forums,

Action 13.
building actions.

Training  for  staff  members  of  consumer  organisations  and  other  capacity

Action 14.
legislation and other Community consumer protection measures.

Information  actions  about  consumer  rights  conferred  by  consumer  protection

Action 15.
Consumer  education,  including  the  Young  Consumer  Competition  and  the
development  of  on-line  interactive  consumer  education  tools  on  consumer  rights  in  the
internal market and on cross-border transactions.

Action 16.
under the conditions set out in Article 7(2).

Financial contributions to the functioning of European consumer organisations,

1

as provided for in Directive 2001/95/EC on general product safety, OJ L 11/4 of 15.1.2002

11

                                                
Action 17.
Financial contributions to the functioning of European consumer organisations
representing consumer interests in the development of standards for products and services at
Community level, under the conditions set out in Article 7(3).

Objectives (a), (b) and (c):

Action 18.
Financial contributions for specific projects at Community or national level in
support of consumer policy objectives as defined in Article 2, under the conditions set out in
Article 7(4).

Action 19.

Evaluation of actions undertaken under this Framework.

12

LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): HEALTH AND CONSUMER PROTECTION
Activit(y/ies): Consumer policy

TITLE OF ACTION:
CONSUMER POLICY 2004-2007

FRAMEWORK  FOR  COMMUNITY  ACTIVITIES  IN  SUPPORT  OF  EUROPEAN

1.

BUDGET LINE(S) + HEADING(S)

Heading B5-10, lines B5-100 and B5-100A; Heading A7- lines A0701, A07030, A07040 and A-707

2.

2.1.

2.2.

2.3.

(a)

OVERALL FIGURES 

Total allocation for action (Part B): € 72 million for commitment

Period of application: 2004-2007

Overall multi-annual estimate of expenditure:

Schedule of commitment payment appropriations (financial intervention) (see 6.1.1)

2004 

2005

2006

€ million (to three decimal places)
Total
2007

2008

2009+
subs
yrs

Commitments
Payments

17.000
6.800

17.000
11.900

17.000
15.300

17.000
17.000

10.200

6.800

68.000
68.000

(b)

Technical and administrative assistance and support expenditure (see point 6.1.2)

Commitments
Payments

1.000
0.400

1.000
0.700

1.000
0.900

1.000
1.000

0.600

0.400

4.000
4.000

Subtotal a+b
Commitments
Payments

18.000
7.200

18.000
12.600

18.000
16.200

18.000
18.000

10.800

7.200

72.000
72.000

(c)

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure
(see points 7.2 and 7.3)

7.874

7.874

7.874

7.874

31.496

Commitments
/ payments

TOTAL
a+b+c
Commitments
Payments

2004

2005

2006

2007

2008

2009
+

25.874
15.074

25.874
20.474

25.874
24.074

25.874
25.874

10.800

103.496
7.200 103.496

2.4.

Compatibility with financial programming and financial perspective

[(cid:1)] Proposal is compatible with existing financial programming for 2004-2006.

13

2.5.

Financial impact on revenue:

[(cid:1)] Proposal  has  no  financial  implications  (involves  technical  aspects  regarding

implementation of a measure)

3.

BUDGET CHARACTERISTICS (B5-100)

Type of expenditure

New

Non-comp

Diff

NO

EFTA
participation
YES

Participation of
applicant countries
YES

Heading fin.
Perspective
No 3

4.

5.

LEGAL BASIS: ARTICLE 153 TEC

DESCRIPTION AND GROUNDS

5.1.

Need for Community intervention

Consumer  policy  measures  are  based  on  Articles  153  and  95  of  the  Treaty  establishing  the
European Community. The Community is to contribute to the protection of the health, safety
and  economic  interests  of  consumers,  as  well  as  to  promoting  their  right  to  information,
education  and  to  organise  themselves  to  safeguard  their  interests.  The  Community
contribution  envisaged  concerns  measures  in  the  context  of  the  completion  of  the  internal
market, and measures to support, supplement and monitor the policy pursued by the Member
States. Consumer policy at Community level  has developed as the  essential corollary  of  the
progressive  establishment of  the  internal  market.  The  free  circulation  of  goods  and  services
has  required  the  adoption  of  common,  or  at  least  convergent,  rules  to  ensure  sufficient
protection of consumer interests and the elimination of regulatory obstacles and competitive
distortions.

5.1.1. Objectives pursued

European  consumer  policy  is  central  to  two  of  the  aims  of  the  Commission’s  strategic
objectives1, namely modernising the European economy and ensuring a better quality of life
for  European  citizens.  The  Consumer  Policy  Strategy  2002  –  2006,  establishes  three  key
objectives  for  this  policy:  a  high  common  level  of  consumer  protection,  effective
enforcement of consumer protection rules and the involvement of consumer organisations in
EU policy making. These objectives steer the allocation of funds for actions under the present
proposal. 

5.1.2. Measures taken in connection with ex ante evaluation 

The objectives and priorities set out in the Consumer Policy Strategy were the subject of an ex
ante  impact  assessment,  conducted  by  Evaluation  Partnership,  an  independent  consulting
firm2.  The  assessment  report  analyses  the  consumer  policy  situation  at  the  end  of  2001  to
establish a base-line position. It then examines the intervention logic of the strategy and the
main areas of expected impact. 

1 

2

Commission  Communication  on  the  Strategic  Objectives  2000-2005  ‘Shaping  the  new  Europe’
COM(2000) 154 final
Ex  ante  impact  assessment  of  the  New  Consumer  Policy  Strategy,  undertaken  by  Evaluation
Partnership, final report January 2002

14

                                                
Its  conclusions  broadly  endorse  the  objectives  and  priorities  of  the  Strategy.  The  objectives
are  considered  to  be  consistent  with  the  needs  of  consumer  policy  and  EU-level  policy  in
general. The analysis on which the strategy is based is deemed comprehensive. The response
the strategy proposes to the current challenges is found to be sound and built on a coherent
approach. The assessment also identifies a clear logic of the interventions proposed, both in
terms of how its actions support policy objectives and in terms of the areas of impact that the
attainment of these objectives should have.

The report examines the views of key stakeholders as their effective engagement is considered
essential to the delivery of the strategy’s objectives. Stakeholders are found to agree with the
relevance  and  importance  of  the  objectives,  but  expect  that  policies  and  actions  may  prove
difficult  to  adopt  and  enforce,  notably  the  integration  of  consumer  policy  into  other  policy
areas.

The assessors support the  need for  Community  intervention  in  support  of  policy  objectives.
They conclude that it is unlikely Community funds will be used for actions that the Member
States  would  have  carried  out  themselves,  and  expect  they  will  produce  a  good  European
added  value.  However  they  highlight  the  need  to  adapt  actions  to  specific  national
environments and to check whether certain initiatives could be undertaken by markets.

The  assessors  expressed  concern  about  the  sufficiency  of  the  proposed  actions.  As  the
assessors  also  recognise,  the  regular  adjustment  of  the  strategy  via  a  rolling  plan  of  actions
provides an adequate mechanism for doing this. As a consequence, the actions to be financed
under  this  framework  will  also  have  to  be  adapted  accordingly.  The  present  proposal  and
future  work  programmes  implementing  it  must  therefore  focus  on  actions  that  have  the
highest  impact/resource  ratio.  To  secure  the  flexibility  needed  for  this,  this  enabling
framework gives a general and indicative rather than an exhaustive and detailed definition of
the actions. 

Further important elements of ex ante evaluation are the experience in recent  years with the
implementation  of  the  different  intervention  mechanisms  and  actions,  and  internal  and
external  interim  evaluations  of  actions  and  intervention  mechanisms  conducted  in  recent
years.

5.1.3. Measures taken following interim and ex post evaluation

A  report  from  the  Commission  to  the  European  Parliament  and  the  Council  on  the
implementation  and  evaluation  of  Community  activities  1999-2001  in  favour  of  consumers
under Decision 283/1999/EC is being presented at the same time as the current proposal. This
report sets out the Commission’s appraisal of the implementation of Decision 283/1999/EC.
This appraisal has induced the following changes with respect to the current Decision: 

* The focus of all proposed actions is firmly centred on the three consumer policy objectives;

* Eligibility criteria for operating grants to European consumer organisations are clarified to
further  concentrate  funding  on  those  organisations  whose  core  business  it  is  to  defend
consumer  interests  at  European  level,  notably  in  follow-up  to  an  external  evaluation,  while
leaving space for new initiatives in this area. 

* As  attempts  to  identify  alternative  funding  sources  for  consumer  representation  in
standardisation  have  failed  to  give  results,  and  an  evaluation  found  this  work  to  be  of  high
relevance,  a  consensus  has  developed  on  the  need  for  specific  provisions  for  funding  this
activity.

15

* In setting out detailed rules and criteria for awarding grants to specific projects, the current
Decision  has  succeeded  in  improving  the  transparency  of  the  process.  Management  of  the
annual  project  cycle  has,  however,  proved  to  be  a  major  drain  on  resources,  for  the
Commission as well as for applicants. This administrative burden outweighs the added value
at EU level or the (sustained) impact of the projects financed. The 50% level of co-financing
provided and the administrative burden on applicants have mainly worked to the advantage of
the stronger, well-financed organisations. Therefore, this instrument has proved unsuitable as
a  means  of  strengthening  the  weaker  and  smaller  national  consumer  organisations.  In  line
with  the  subsidiarity  principle,  this  is  primarily  the  task  of  national  authorities.  Community
intervention in this area can only be complementary and take the form of direct Commission
actions to stimulate capacity building, training and exchange of best practices. 

To  improve  effectiveness  and  reduce  administrative  costs  for  both  applicants  and  the
Commission,  the  present  proposal  provides  in  principle  for  a  two-year  project  cycle.  In
addition,  the  Commission  may  contribute  up  to  70%  of  the  total  cost,  in  order  to  facilitate
access to project financing for projects in line with the objectives.

* The inclusion of selection and award criteria for grants for specific projects in the current
Decision itself has meant that they could only be defined in general terms in order to ensure
their validity for the entire time-period. Consequently, they have not proved to be helpful in
practice. Member States and applicants have criticised the criteria, and the Commission itself
has  found  them  difficult  to  apply.  Therefore,  the  present  proposal  does  not  include  such
criteria, but instead provides that they should be defined in the annual work programme. This
will ensure that clear criteria can be set that reflect the work programme priorities.

An external evaluation to verify this internal assessment of specific projects co-financing has,
meanwhile, also been launched.

* A new intervention mechanism for actions jointly financed by the Commission and one or
more Member States is introduced. It will be used for subsidies, such as currently provided to
public and non-profit bodies that are part of the European Consumer Centre Network and the
European  Extra-judicial  Network,  on  the  basis  of  a  co-financing  arrangement  with  Member
States.  It  will  also  be  used  for  the  co-financing  of  enforcement  and  other  actions  with  the
Member States, as necessary in the framework of further administrative and enforcement co-
operation between the Commission and the Member States.

5.2.

Action envisaged and budget intervention arrangements

The  direct  beneficiaries  of  the  actions  are  consumer  organisations  and  other  non-profit
making bodies working on issues of interest to consumers, as defined in Article 7, as well as
private contractors. The ultimate beneficiaries will be consumers in the EU.

The following budget intervention arrangements are foreseen:

(cid:1)  Actions  taken  by  the  Commission  through  contracts  following  procurement  procedures,
such  as  calls  for  tenders.  Appropriate  technical  specifications  will  be  defined  for  each
action.

(cid:1)  Co-financing of specific projects in support of EU consumer policy, under the conditions
set out in Article 7(4), up to a maximum of 70% of the eligible expenses for implementing
the  project.  This  contribution  may  be  granted  to  any  legal  person  or  association  of  legal
persons that acts  independently of industry and  commerce  and  is actually responsible for
the implementation of the project.

16

(cid:1)  Operating  grants  for  the  activities  of  European-level  consumer  organisations  under  the
conditions set out in Article 7(2), up to a maximum of 50% of the expenditure for carrying
out  eligible  activities.  This  contribution  may  be  granted  to  European  level  consumer
organisations  that  are  non-governmental  and  non-profit-making,  and  that  have  as  their
main  objectives  and  activities  to  promote  and  protect  the  health,  safety  and  economic
interests of consumers in the Community. They must also have been mandated to represent
the interests of consumers at Community level by national organisations in at least half the
Member  States  that  are  representative,  in  accordance  with  national  rules  or  practice,  of
consumers and are active at regional or national level. 

(cid:1)  Operating  grants  for  the  activities  of  European  consumer  organisations  representing
consumer  interests  in  the  development  of  standards  for  products  and  services  at
Community level, under the conditions set out in Article 7(3), up to a maximum of 95% of
the  expenditure  for  carrying  out  eligible  activities.  This  contribution  may  be  granted  to
European-level  consumer  organisations  that  are  non-governmental,  independent  of
industry and commerce, and non-profit-making, and that have as their primary objectives
and activities to represent consumer interests in the standardisation process at Community
level. They must also have been mandated to do this by representative national consumer
organisations.

(cid:1)  Actions undertaken by the Commission jointly with one or more Member States under the
conditions set out in Article 7(1). These actions will be undertaken by public or other non-
profit bodies designated by the Member State concerned  and  agreed by  the  Commission.
The Commission contribution will in principle be 50% of the total costs of the action, and
may not exceed 70%.

These  arrangements  for  budget  intervention  will  be  applied  in  accordance  with  the  relevant
provisions  of  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European
Communities.

5.3.

Methods of implementation

The  actions  under  the  framework  will  be  implemented  and  managed  directly  by  the
Commission using either permanent or temporary staff.

17

6.

FINANCIAL IMPACT

6.1.

Total financial impact on Part B – (over the entire programming period)

6.1.1.

Financial intervention

Commitments (in € million to three decimal places)

Breakdown

2004

2005

2006

2007

Objective a
Objective b
Objective c

Objectives a, b and c

4.050
6.250
5.000
1.700

TOTAL 17.000 

4.050
6.250
5.000
1.700
17.000

4.050
6.250
5.000
1.700
17.000

4.050
6.250
5.0500
1.700
17.000

Total
16.200
25.000
20.000
6.800
68.000

6.1.2.

Technical and administrative assistance, support expenditure and IT expenditure

2004

2005

2006

2007

2008

2009

Total

1) Technical and
administrative assistance
a) T. A. Offices
b) Other:
- extra muros:
for IT systems maintenance 
Subtotal 1

0.100
0.100
0.100

2) Support expenditure
a) Studies 
b) Meetings of experts
c) Information/publications

0.475
0.400
0.025
0.900
TOTAL 1.000

Subtotal 2

0.100
0.100
0.100

0.475
0.400
0.025
0.900
1.000

0.100
0.100
0.100

0.475
0.400
0.025
0.900
1.000

0.100
0.100
0.100

0.475
0.400
0.025
0.900
1.000

0.400

0.400

1.900
1.600
0.100
3.600
4.000

18

6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)

Commitments (in € million to three decimal places)

Breakdown3

Action 1. Scientific advice and risk
analysis
Actions 2. Preparation of legislative
and other initiatives
Action 3. Monitoring and assessment
of market impact economic interests
Action 4. Evidence base for
consumer policy
Subtotal Objective 1
Action 5. Co-ordination of
surveillance and enforcement actions
Action 6. Development of databases
on application of consumer rights 
Action 7. Monitoring and assessment
of safety of non-food products and
services 
Action 8. Monitoring and assessment
of Alternative Dispute Resolution
Action 9. Networks for consumer
information/assistance
Action 10. Joint surveillance and
enforcement actions
Subtotal Objective 2
Action 11. Technical and legal
expertise for consumer organisations
Action 12. Representation of
European consumers in international
forums
Action 16. Consumer representation
at Community level 
Action 17. Consumer representation
in standardisation 

Action 13. Capacity building for
consumer organisations 
Action 14. Information on consumer
rights
Action 15. Consumer education 
Subtotal Objective 3
Action 16. Specific projects 
Action 19 Evaluation 

TOTAL COST

Number of
outputs
2
25

Average unit
cost 
3
0.040

Total Cost
2004-2007
4=(2X3)
1.000

76

0.200

15.200

24

0.250

16.200
6.000

Type of outputs

1
reports,  opinions,
workshops, etc.
reports, statistics,
surveys, opinion
polls, workshops,
etc. 

Networks
infrastructure,
databases,
training courses,
seminars, files,
reports, data etc.

networks,  reports,
files 

190

0.100

19.000

18

0.500

25.000
9.000

20

0.550

11.000

reports, policy
input, operational
grants, staff
exchanges,
networks

Training  courses,
consumer
information 
education 

and

Projects, reports 

34

0.200

20.000
6.800

68.000

3 A more detailed description of each action is provided in the Annex to the Decision

19

 
                                                
7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE 

The requirements in human and administrative resources will be met within the appropriation
allocated to the DG responsible in the framework of the annual allocation procedure.

7.1.

Impact on human resources

Types of post

Staff to be assigned to management of the
action using existing resources

Number of
permanent posts

Number of
temporary posts

Officials or
temporary staff

A
B
C
Other human resources
Total

30
11
17
13
71

Description of tasks deriving from the
action

If necessary, a fuller description of the
tasks may be annexed.

6 END, 6 Aux, 1 Int

Total

30
11
17
13
71

7.2.

Overall financial impact of human resources

Type of human resources

Amount (€)

Method of calculation * 

Officials
Temporary staff
Other human resources
A-7003 END 
A-7000 Auxiliary staffA-7001 Interim staff

6.048.000
216.000
258.000
252.000
50.000
6.824.000

Total

56*108.000
2*108.000
6*43.000
6*42.000
1*50.000

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

Budget line
(number and heading)

Overall allocation (Title A7)
A0701 – Missions
A07030 – Meetings
A07031 – Compulsory committees
A07032 – Non-compulsory committees
A07040 – Conferences
A0705 – Studies and consultations

Information systems (A-707)
Other expenditure - Part A (specify)

Amount €

Method of calculation

30*12*286.45
cf. budget 2002
10*15*650
4*20*650 +10*12*650
cf. budget 2002

103.000
297.000
97.500
130.000
300.000
-

122.500

Total

1.050.000

The amounts are total expenditure for twelve months.

I.
II.
III.

Annual total (7.2 + 7.3)
Duration of action
Total cost of action (I x II)

€ 7.874.000
4 years
€ 31.496.000

20

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

The  proposed  Decision  requires  the  Commission  to  take  the  necessary  measures  to  ensure
adequate  monitoring  and  evaluation.  The  Commission  will  present  to  the  European
Parliament and the Council a mid-term report on the implementation of the Decision as well
as an evaluation report.

To  this  end,  the  Commission  is  reinforcing  existing  monitoring  mechanisms,  will  use  the
results of evaluations  of  similar actions under the  previous  Decision  and  conduct  additional
evaluations of individual actions or  groups  of  actions as appropriate, drawing upon  external
expertise as necessary. In addition, in order to ensure increased effectiveness and efficiency of
grants, the Commission is introducing stricter reporting requirements on beneficiaries.

8.2.

Arrangements and schedule for the planned evaluation

An overall intermediary evaluation of the implementation of the Decision will be launched in
the autumn of 2005. Since only a limited number of actions undertaken since the start of this
framework  will  have  been  completed  at  that  time,  this  report  will  be  largely  based  on  the
results of evaluations of relevant actions undertaken under the preceding framework. Actions
undertaken since 2004 will be evaluated at the appropriate stage of their execution

9.

ANTI-FRAUD MEASURES

The  Commission  will  ensure  the  coherence,  consistency  and  complementarity  between
financial contributions granted under this Framework and other contributions granted by  the
European Union institutions, in accordance with the Financial Regulation. 

In  order  to  prevent  and,  if  necessary,  take  action  against  irregularities,  mismanagement  or
fraud in relation to expenditure under this Framework, the Commission will carry out audits
of a sample of beneficiaries every year. The sample will be large enough to guarantee that a
significant  proportion  of  the  beneficiaries  will  be  audited.  All  contracts  and  agreements
signed will provide for the Commission to carry out such audits and other on-the-spot checks
and inspections, in accordance with the prevailing EU legislation.

In  accordance  with  the  general  rules  concerning  the  exclusion  of  grant  applicants  and
tenderers  as  set  out  in  Article  93  of  the  Financial  Regulation  (and  Article  131  of  the
implementing rules), any grant applicants or tenderers and contractors who are found guilty of
making  false  declarations  or  are  found  to  have  seriously  failed  to  meet  their  contractual
obligations will be excluded from the award of further contracts or grants. 

In the case of operational  grants to European consumer organisations, the Commission may
reduce or stop the grant for subsequent year(s), if the report(s) for a particular period shows
inadequate performance.

21