WRITTEN QUESTION E-1863/03 by Bernd Lange (PSE) to the Commission. Problems in the implementation of the sixth research framework programme owing to auditing costs.
Date: 2003-06-06
Institutions: European Parliament, Provisional data
Subjects: EU programme, approval, audit, auditing, management audit, project management, research programme

6.3.2004

EN

Official Journal of the European Union

C 58 E/105

In relation to the Protocol on animal welfare in the Amsterdam Treaty there is no suggestion by the
Honourable Member that Union policies are a factor influencing the practice complained of and therefore
the Protocol would not appear to be relevant in this case.

The Commission is not aware of the exact conditions under which wild hares are transported to coursing
events in Ireland.

Council Directive 91/628/EEC of 18 November 1991 on the protection of animals during transport
(amending Directives 90/425/EEC and 91/496/EEC), as amended by Council Directive 95/29/EC of
29 June 1995, does not apply to transport of animals on journeys of less than 50 kms, transport which is
not of a commercial nature or to transport of any individual animal accompanied by a person who has
responsibility for it during transport. With these exceptions, transport of wild hares would be covered by
the relevant provisions of the Directive relating to ‘other mammals and birds’.

(2004/C 58 E/120)

WRITTEN QUESTION E-1863/03

by Bernd Lange (PSE) to the Commission

(6 June 2003)

Subject: Problems in the implementation of the sixth research framework programme owing to auditing

costs

In order to be eligible for reimbursement under the sixth research framework programme, the costs of
integrated projects and networks of excellence must be certified each year by an independent auditor.
The result is that auditing costs are extremely high, and much of the funding provided is not used for
actual research.

Moreover, the way in which public bodies are required to conduct audits is still not sufficiently clear.

Why are partners with small shares in projects not required simply to conduct an audit of the total costs
of the project instead of obtaining an annual certificate, so as to reduce auditing costs?

Can public bodies be exempted from the external certification requirement, or is verification by an
independent expert required here too?

Answer given by Mr Busquin on behalf of the Commission

(25 July 2003)

The Commission fully shares the concern of the Honourable Member to keep the audit certificate costs as
low as possible. Certification by an external auditor of actual expenses incurred, as a condition for their
reimbursement, is a principle established in Article 14 of Regulation (EC) 2321/2002 of the Parliament
and of the Council of 16 December 2002 concerning the rules for the participation of undertakings,
research centres and universities in, and for the dissemination of research results for, the implementation
of the European Community Sixth Framework Programme (2002-2006) (1). The requirement of annual
audit certificates for Networks of Excellence (NoE’s) and Integrated Projects (IP’s) results from the
characteristics of these new instruments, which will involve significant Community contributions and will
last over a number of years.

On the other hand, for other instruments, although an audit certificate will be required at some point, it is
not necessarily annual. This is an issue to be determined in the negotiation between the Commission and
the contractors, depending on the duration of the project, its nature and estimated budget and in respect
of the provisions of the Financial Regulation and its implementing modalities requiring audit certificates in
certain cases.

C 58 E/106

Official Journal of the European Union

EN

6.3.2004

The Honourable Member will understand that for reasons of non-discrimination, entities from both the
private and the public sector have to submit audit certificates. However, public entities can have their audit
certificates delivered either by an external auditor or by a public competent officer (see also Article 14 of
the above mentioned Regulation). The latter will certainly reduce the costs related to the audit certificates
for public bodies.

It should also be noted that the costs of audit certificates are fully covered by the Community funding
contribution under the management activity foreseen in each project and represent only a minor portion
of the total costs of the projects, the great bulk of which is devoted to carrying out the research work.

(1) OJ L 355, 30.12.2002.

(2004/C 58 E/121)

WRITTEN QUESTION E-1883/03

by Christopher Huhne (ELDR) to the Commission

(6 June 2003)

Subject: Trade impact of euro

Will the Commission summarise the conclusions of any major studies, including its own, on the impact of
the euro on trade within the euro-area? Will it estimate the size of any increase in trade as a result of the
introduction of the euro?

Answer given by Mr Solbes Mira on behalf of the Commission

(14 July 2003)

Several studies have been made on the impact of the euro on trade within the euro-area, although the
period since the introduction of the single currency is still short and the total effect has probably not yet
occurred. These studies find a significant increase of trade as a result of the euro-introduction.

Looking at the euro-area Barr, Breedon and Miles (1) come to the conclusion that the Economic and
Monetary Union (EMU) has already led to a 29 % increase in the level of trade between euro members.
Also using data from European countries Micco, Stein and Ordonez (2) find a sizeable effect for the bilateral
trade between the members of the Eurozone: the EMU effect is estimated to have increased trade between
12 and 19 %. Finally, Bun and Klaassen (3) conclude in their study on the effect on trade an increase of 4 %
in the first year and a projected long run effect of about 40 %.

Recently the United Kingdom Treasury has published several background EMU-studies to inform the
assessment of the five economic tests on UK-membership of the single currency. In one of these studies,
EMU and trade, an overview of studies on the effects of currency-unions on trade and specifically of EMU
on trade can be found.

(1) Barr D., F. Breedon and D. Miles, Life on the outside: economic conditions and prospects outside Euroland in

Economic Policy, 2003, forthcoming.

(2) Micco A., E. Stein and G. Ordonez, The currency union effect on trade: early evidence from the European Union,

Inter American Development Bank 2002.

(3) Bun M. and F. Klaassen, Has the euro increased trade?, Tinbergen Institute Discussion Paper No 02-108/2,

University of Amsterdam 2002.