Proposal for a Decision of the European Parliament and of the Council Amending Council Decision N° 1999/784/EC concerning Community participation in the European Audiovisual Observatory
Date: 2003-12-10
Institutions: European Commission
Subjects: EU financing, EU relations, European organisation, audiovisual communications policy, audiovisual industry

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 13.1.2004
COM(2003) 763 final/2

2003/0293 (COD)

CORRIGENDUM
Annule et remplace le point 5.2., 3ème tiret
de la « Fiche financière législative », page 9,
du document COM(2003) 763 final du 10.12.2003.
Cette correction concerne toutes les versions
linguistiques.

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Amending Council Decision N° 1999/784/EC concerning Community participation in the
European Audiovisual Observatory

(presented by the Commission)

EN

  EN

EXPLANATORY MEMORANDUM

By  Decision  1999/784/EC1,  the  Council  adopted  the  proposal  concerning  Community
participation in the European Audiovisual Observatory for a period ending on 31 December
2004.

The European Audiovisual Observatory is an  Enlarged Partial  Agreement  of  the  Council  of
Europe.  At  present,  35  States,  among  which  all  the  present  and  future  Member  States,
participate in the Observatory.

The Observatory was established in Strasbourg in 19922. Its Statute stipulates that "the aim of
the Observatory shall be to improve the transfer of information within the audio-visual industry,
to promote a clearer view of the market and a greater transparency. In doing so, the Observatory
shall  pay  particular  attention  to  ensuring  reliability,  compatibility  and  comparability  of
information".

The  1999  Decision  provided  for  a  legal  basis,  Art  157(3)  of  the  Treaty,  to  a  co-operation
between  the  Commission  and  the  Observatory  started  since  the  beginning  of  the  latter's
activity. The Commission represents the Community in its relations with the Observatory3.

The Commission considers that the policy objectives of knowledge dissemination and market
transparency  are  of  the  utmost  importance  for  the  development  of  the  audio-visual  sector
insofar  they  help  operators'  investment  decision  and  regulatory  instances  to  set  the  best
environment from an overall view point.

The activity of the Observatory in the area of market statistics, financial and legal information
effectively  contributes  to  the  achievement  of  such  objectives  and  therefore,  it  is  in  the
Community  interest  to  support  and  consolidate  the  structure  of  the  Observatory  as  well  as
bilateral co-operation.

The  Observatory's  contribution  to  the  achievement  of  the  mentioned  objectives  will  be
improved  by  the  implementation  of  a  new  strategy  at  present  under  development  with  the
participation of the Commission. The updated remit and the relevant financial framework will
be  adopted  by  the  responsible  instances  of  the  Observatory  at  the  end  of  2005.  The
implementation will start progressively in 2006, at the earliest.

Taking into account the positive experience of the co-operation developed in the past, which
was summarised in a mid-term report4, the Commission considers it would be appropriate to
extend the Community participation in the Observatory for a period of two years. This short
extension will allow to cover a critical period for the definition of the  future patterns of the
Observatory  activity  and  can  be  lodged  in  the  present  Community's  financial  perspectives
without  any  prejudice  for  future  decisions,  which  will  be  taken  in  2006  with  the  full
knowledge of the features of the Observatory's new remit and financial framework.

1

2

3

4

OJ No L 307, 2.12.1999, p. 61
Resolution (92)70 adopted by the Committee of Ministers of the Council of Europe on 15/12/1992. By
Resolution  (97)  4  of  20  March  1997,  the  Committee  of  Ministers  confirmed  the  continuation  of  the
Observatory for an indefinite period.
Council Decision 1999/784/EC, Article 2
Report  from  the  Commission  to  the  Council,  the  European  Parliament  and  the  Economic  and  Social
Committee on the implementation of Council Decision 1999/784 EC; doc COM (2002) 619 Final.

2

 
                                                
The European Commission therefore proposes:

- To prolong the Community participation in the Observatory for two years up to 31/12/2006;

- To maintain the yearly budget at the level of 2004, i.e. 235 000 €.

To this end the Commission submits the  appended proposal for  a Decision of the  European
Parliament and of the Council.

3

 
2003/0293 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

Amending Council Decision N° 1999/784/EC concerning Community participation in the
European Audiovisual Observatory

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article
157 (3) thereof,

Having regard to the proposal from the Commission5,

Having regard to the opinion of the European Economic and Social Committee6,

Having regard to the opinion of the Committee of the Regions7,

Acting in accordance with the procedure laid down in Article 251 of the Treaty8,

Whereas:

(1)

(2)

(3)

In Decision 1999/784/EC9 the Council decided that the Community should become a
member  of  the  European  Audiovisual  Observatory  (hereinafter  "the  Observatory)  in
order to support the latter's activity. The Observatory contributes to strengthening the
competitiveness  of  the  Community's  audio-visual  industry  by  improving  the  transfer
of information to the industry, in particular to small and medium-sized enterprises, and
promoting a clearer view of the market.

The  Community  participation  in  the  Observatory  has  proven  effective  in  supporting
the latter's activity.

It  is  appropriate  to  continue  such  participation  during  the  period  necessary  for  the
Observatory to adopt guidelines for its future activity, from 2006 onwards.

(4)

Decision 1999/748/EC should therefore be amended accordingly,

5

6

7

8

9

OJ C , , p. .
OJ C , , p. .
OJ C , , p. .
OJ C , , p. .
OJ L 307, 2.12.1999, p.61

4

 
                                                
HAVE DECIDED AS FOLLOWS:

Sole Article

Decision 1999/784/EC is amended as follows:

Article 5 is replaced by the following:

"Article 5

This decision shall apply until the last day of the last month of the seventh year following the
year of its adoption"

Done at Brussels,

For the European Parliament
The President

For the Council
The President

5

 
LEGISLATIVE FINANCIAL STATEMENT

Policy area(s): Education and Culture

Activit(y/ies): Audio-visual policy and sports

TITLE  OF  ACTION:  COMMUNITY  PARTICIPATION 

IN  THE  EUROPEAN  AUDIOVISUAL

OBSERVATORY

1.

BUDGET LINE(S) + HEADING(S)

B 3 2017 - Autres actions dans le domaine audiovisuel

2.

2.1.

2.2.

ABB "15 05 01 03"

OVERALL FIGURES

Total allocation for action (Part B): 0.470 € million for commitment

Period of application:

1/1/2005 - 31/12/2006

2.3.

Overall multiannual estimate of expenditure:

(a)

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1)

(financial

€ Million ( to three decimal places)

 [2005]

[2006]

Commitments

0.235

0.235

Payments

0.235

0.235

(b)

Technical and administrative assistance and support expenditure

Commitments

N/A.

N/A.

Payments

N/A.

N/A.

Subtotal a+b

Commitments

0.235

0.235

Payments

0.235

0.235

6

Total
0.470

0.470

N/A.

N/A.

0.470

0.470

 
(c)

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

Commitments/
payments

0.046

0.046

TOTAL a+b+c

2005

2006

Commitments

0.281

0.281

Payments

0.281

0.281

0.092

Total

0.562

0.562

2.4.

Compatibility with financial programming and financial perspective

X

Proposal is compatible with existing financial programming.

Proposal  will  entail  reprogramming  of  the  relevant  heading  in  the  financial
perspective.

Proposal  may  require  application  of  the  provisions  of  the  Interinstitutional
Agreement.

2.5.

Financial impact on revenue:10

X

Proposal  has  no  financial  implications  (involves  technical  aspects  regarding
implementation of a measure)

3.

BUDGET CHARACTERISTICS

Type of expenditure

New

EFTA
contribution

Contributions
form applicant
countries

Heading in
financial
perspective

Diff/

NO

NO

NO

No 3

Non-comp

4.

LEGAL BASIS

Article 157 (3)

10

For further information, see separate explanatory note.

7

 
                                                
5.

5.1.

DESCRIPTION AND GROUNDS

Need for Community intervention 11

5.1.1. Objectives pursued

The Commission considers that the policy objectives of knowledge dissemination and market
transparency  are  of  the  utmost  importance  for  the  development  of  the  audio-visual  sector
insofar they help operators' taking business decisions and assist regulatory instances to set the
best environment from an overall view point.

The activity of the Observatory in the area of market statistics, financial and legal information
can  effectively  contribute  to  the  achievement  of  such  objectives  and  therefore,  it  is  in  the
Community interest to support and consolidate the structure of the Observatory as well as the
bilateral co-operation.

Observatory's contribution to the achievement of the mentioned objectives will be improved
by  the  implementation  of  a  new  strategy,  which,  at  present,  is  undergoing  a  feasibility
assessment.

The  extension  of  the  Community  participation  in  the  Observatory  for  the  period  2005/2006
will  secure  political  guidance  and  an  important  financial  contribution  to  the  Observatory's
ordinary activity over the period necessary to define new strategies.

5.1.2. Measures taken in connection with ex ante evaluation

In  consideration  of  the  nature  of  "short  term  extension",  no  ex  ante  evaluation  has  been
conducted. In order to have an assessment of the Observatory activity, reference can be made
usefully to the mid term report12 adopted by the Commission on 11 November 2002.

The mid-term report points out that the  Commission and  the Observatory  have  developed  a
sound  professional  partnership  benefiting  both  the  industry,  who  receive  a  flow  of  timely
information  enhancing  transparency,  and  the  public  authorities,  who  can  launch  profitable
discussions  with  the  industry  representative  built  on  clear  views  of  the  market.  The
Observatory represents a model of integration between the activities of public bodies and the
private sector from several countries.

5.2.

Actions envisaged and budget intervention arrangements

–  The  activity  of  the  Observatory  targets  primarily  the  operators  of  the  audio-visual  sector
and,  secondly,  the  European  and  national  policy-makers  responsible  for  audio-visual
policy;

The  activity  of  the  Observatory  in  the  area  of  market  statistics,  financial  and  legal
information can effectively contribute to the  achievement of  the  objectives of knowledge
dissemination and market transparency.

11

12

For further information, see separate explanatory note.
COM(2002) 619 final

8

 
                                                
–  The  Community  will  participate  in  the  financing  of  the  Observatory  along  with  other  35
members. The Commission will represent the Community in all the statutory bodies of the
Observatory setting its policy and operations.

–  The Community participation and financing in the Observatory will substantially help the
Observatory to continue and develop its publications: the statistical "Yearbook", the "IRIS"
legal  newsletter,  the  database  "Lumière",  Korda"  and  "Iris  Merlin"  as  well  as  other
minor publications.

–  All Observatory's publications and database, released on paper and available on the Web in
three languages, are a primary source of financial, marketing and legal information for the
operators and the public instances.

In accordance with the Statute of the Observatory, the Community contributes along other 35
members  (in  2003)  to  the  financial  needs  of  the  Observatory.  It  has  a  status  of  "large
contributor", as it is the case for France, Germany, Italy, UK and Russia. As in the past, the
yearly contribution shall not exceed 12.25%  of the  total  budget,  which  is  fixed  annually  by
the Executive Council and adopted by the Financial Committee.

Moreover, in consideration of the nature of extension of this Decision, the Community yearly
contributions shall be kept in 2005 and 2006 within the same ceiling foreseen for 2004 by the
Decision in force (235,000 €), without any yearly increase.

5.3.

Methods of implementation

As  in  the  past,  the  Commission  will  formalise  the  Community  participation  in  the
Observatory through an Agreement, in the form of an Exchange of Letters with the Secretary
General of the Council of Europe. A document called Memorandum of Understanding will be
attached to the Exchange of Letters. It will be designed to establish the specific terms of the
yearly  Commission  commitments.  This  document  will  be  updated  and  underwritten  every
year by the Commission and the Observatory

For  what  concerns  the  ordinary  management  activity  of  the  Observatory,  the  Commission,
representing  the  Community,  participates  in  all  the  statutory  bodies  of  the  Observatory:  the
Financial Committee, the Executive Council and the Advisory Committee.

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

2005

2006

Membership contribution

0.235

0.235

TOTAL 0.235

0.235

Total

0.470

0.470

9

 
6.2.

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire
programming period)13

Breakdown

Action 1

Membership contribution

Commitments (in € million to three decimal places)

Type
of outputs
(projects, files )

Number of
outputs

(total for 2
years)

Average unit
cost

Total cost

(total for 2 years)

1

2

3

4=(2X3)

Yearly
Membership

Two years
membership

0.235

0.470

TOTAL COST

0.470

7.

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE

7.1.

Impact on human resources

Types of post

Officials or
temporary staff

A

B

C

Other human resources

Total

Staff to be assigned to management of the
action using existing and/or additional
resources

Number of
permanent posts

Number of
temporary posts

0.3

0.1

0.4

Description of tasks deriving from the
action

Definition of Community position in the
statutory bodies and participation in
the relevant meetings

Management of administrative
procedures

Total

0.3

0.1

0.4

13

For further information, see separate explanatory note.

10

 
                                                
7.2.

Overall financial impact of human resources

Type of human resources

Amount (€)

Method of calculation  *

Officials

Temporary staff

Other human resources

0.4 x 108,000

(specify budget line)

Total

43,200

The amounts are total expenditure for twelve months.

7.3.

Other administrative expenditure deriving from the action

Amount €

Method of calculation

3,000

Budget line

(number and heading)

Overall allocation (Title A7)

A0701 – Missions

A07030 – Meetings
A07031 – Compulsory committees 1
A07032 – Non-compulsory committees 1

A07040 – Conferences

A0705 – Studies and consultations

Other expenditure (specify)

Information systems (A-5001/A-4300)

Other expenditure - Part A (specify)

Total

3,000

The amounts are total expenditure for twelve months.

1 Specify the type of committee and the group to which it belongs.

I.

II.

III.

Annual total (7.2 + 7.3)

Duration of action

Total cost of action (I x II)

€ 46,200

2 years

€ 92,400

The needs for human and administrative resources shall be covered within the allocation
granted to the managing DG in the framework of the annual allocation procedure.

8.

FOLLOW-UP AND EVALUATION

8.1.

Follow-up arrangements

"On  going"  monitoring  activities  are  regularly  carried  out  by  the  Executive  Council,  which
meets twice a year, and by the Advisory Committee, which provides useful feed-backs from
the  operators,  as  well  as  valuable  inputs  to  define  the  yearly  Workplans.  The  Commission
takes part actively in the works of these bodies.

11

 
8.2.

Arrangements and schedule for the planned evaluation

The  Commission  on  11/11/2002  adopted  the  mid-term  report  on  the  implementation  of  the
Council  Decision.  A  report  will  be  transmitted  by  the  Commission  to  the  European
Parliament,  the  Council  and  the  Economic  and  Social  Committee  upon  expiration  of  the
Decision.

9.

ANTI-FRAUD MEASURES

Concerning the modalities  for  financial  inspections  and  audits,  it  has  to  be  recalled  that  the
present yearly Memorandum of Understanding between the Observatory and the Commission,
adopted in its present form by the Commission with Decision C(2000)3308, provides detailed
procedures  concerning  the  keeping  of  accounting  records  and  the  possibilities  of  checks.  In
case of extension of the Community participation, such procedures will be confirmed in order
to provide the necessary framework for a control of the use of Community funds.

12