Decision No 804/2004/EC of the European Parliament and of the Council of 21 April 2004 establishing a Community action programme to promote activities in the field of the protection of the Community's financial interests (Hercule programme)
Date: 2004-04-21
Institutions: Council of the European Union, European Parliament
Subjects: Bulgaria, EFTA countries, EU financing, EU programme, European Anti-fraud Office, European Economic Area, Romania, Türkiye, accession to the European Union, action programme, economic support

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Official Journal of the European Union

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DECISION No 804/2004/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 21 April 2004

establishing a Community action programme to promote activities in the field of the protection
of the Community's financial interests (Hercule programme)

EUROPEAN

THE
COUNCIL OF THE EUROPEAN UNION,

PARLIAMENT AND THE

Having regard to the Treaty establishing the European
Community, and in particular Article 280(4) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Court of Auditors (1),

Acting in accordance with the procedure laid down in Article
251 of the Treaty (2),

Whereas:

illegal

activities

The Community and the Member States have set
themselves the objective of countering fraud and any
other
the Community's
financial interests. All available means must be deployed
to attain that objective, whilst maintaining the current
distribution and balance of responsibilities between the
national and Community levels.

affecting

Activities with the purpose of providing better
information, carrying out studies and providing training
or technical and scientific assistance in the fight against
fraud help significantly to protect
the Community's
financial interests.

(1)

(2)

(3)

(4)

Activities in this field should therefore be promoted and
bodies engaged in this field should be supported by
awarding operating grants. Experience has shown the
value of providing support at Community level as
compared with national promotional activities.

(10)

Support
for bodies and activities was provided until
2003 by credits entered in lines A03600 and A03010
(Conferences, congresses and meetings in connection
the associations of European
with the activities of
interests of
lawyers for the protection of the financial

(5)

(6)

(7)

(8)

(9)

the Community) and in line B5-910 (General measures
to combat fraud) of the general budget of the European
Union.

Article 112 of Council Regulation (EC, Euratom) No
Financial
1605/2002 of 25 June 2002 on the
Regulation applicable to the general budget of
the
European Communities (3)
lays down strict conditions
for financial assistance for measures specified in a basic
instrument which have already begun.

It is therefore necessary to adopt that basic instrument
so that, by adopting this Decision establishing a
structured, specific and multidisciplinary Community
action programme for a substantial period, all existing
support measures are rationalised and supplemented.

The programme should be opened up to all Member
the
States and neighbouring countries
in view of
and equivalent
importance of providing
effective
protection for
interests
beyond the Member States alone.

the Community's

financial

European

Parliament,

the Council

The
the
Commission, when adopting Regulation (EC, Euratom)
No 1605/2002, undertook to achieve the objective of
ensuring that this basic act comes into force as from the
financial year 2004.

and

The support measures should also take account of the
particular
in
protecting the Community's financial interests.

characteristics

involved

bodies

of

This Decision lays down for the entire duration of the
programme a financial
framework constituting the
prime reference, 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
the
budgetary procedure (4),
the budgetary authority
during the annual budgetary procedure.

and improvement of

for

(1) OJ C 318, 30.12.2003, p. 5.
(2) Opinion of the European Parliament of 9 March 2004 (not yet
published in the Official Journal) and Council Decision of 5 April
2004.

(3) OJ L 248, 16.9.2002, p. 1. Corrigendum in OJ L 25, 30.1.2003,

p. 43.

(4) OJ C 172, 18.6.1999, p. 1. Agreement as amended by Decision
2003/429/EC of the European Parliament and of the Council (OJ L
147, 14.6.2003, p. 25).

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(11)

to the European
The Commission should present
Parliament and the Council an interim report by the
European
the
implementation of this programme and a final report
on the attainment of the said programme's objectives.

Anti-Fraud Office

(OLAF)

on

(12)

This Decision
subsidiarity and proportionality.

complies with

the

principles

of

(13)

This Decision is without prejudice to the grants awarded
in the field of protection of the Community's financial
interests on the basis of programmes concerning the
law-enforcement aspect,

HAVE DECIDED AS FOLLOWS:

Article 1

Objective of the programme

establishes

This Decision

1.
action
programme to promote activities in the field of the protection
of the financial interests of the Community. The programme
shall be known as the ‘Hercule programme'.

Community

a

2.
The purpose of the programme shall be to help protect
the Community's financial interests by promoting activities and
supporting bodies in accordance with the general criteria set
out in the Annex and specified in detail in each annual grants
programme.
It shall take transnational and multidisciplinary
aspects into account. It shall focus on aligning the substance of
activities so as to guarantee effective and equivalent levels of
protection on the basis of mutually agreed best practice while
also respecting the distinct traditions of each Member State.

Article 2

Access to the programme

financial

To qualify for a Community grant for an activity aimed
1.
at protecting the Community's
interests, grant
beneficiaries must comply with the provisions set out in the
Annex. The activity must conform to the principles underlying
the
Community activity in the field of
Community's
the
financial
specific criteria laid down in the related calls for proposals, in
accordance with the priorities set out in the annual grants
programme detailing the general criteria set out in the Annex.

the protection of
interests and take account of

protection of the Community's financial
concerned must satisfy the general criteria set out
Annex.

interests, the body
in the

Applications
3.
necessary information,
beneficiaries, on:

for operating grants must

contain all
to enable the Commission to select

— the type of body,

— the measures
interests,

to protect

the Community's

financial

— the likely cost of implementing the measures,

— all criteria set out in point 4 of the Annex.

Article 3

Participation by countries outside the Community

In addition to beneficiaries and bodies located in the Member
States, participation in the Community action programme shall
be open to those located in:

(a) acceding countries which signed the Accession Treaty on

16 April 2004;

(b) the EFTA/EEA countries, in accordance with the conditions

laid down in the EEA Agreement;

(c) Bulgaria and Romania, in accordance with the conditions
laid down in the Europe Agreements,
in their additional
protocols and in the decisions of the respective Association
Councils;

(d) Turkey, in accordance with Council Decision 2002/179/EC
of 17 December 2001 concerning the conclusion of a
Framework Agreement between the European Community
and the Republic of Turkey on the general principles for
the participation of the Republic of Turkey in Community
programmes (1).

Article 4

Selection of beneficiaries

2.
To qualify for a Community operating grant under the
ongoing work programme of a body which pursues an
the
objective of general European interest

in the field of

The programme covers one type of awarding procedure

1.
by means of a call for proposals for all beneficiaries.

(1) OJ L 61, 2.3.2002, p. 27.

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The bodies to receive grants for activities shall be selected
2.
following a call for proposals, in accordance with the priorities
set out in the annual grants programme, which details the
general criteria referred to in the Annex. Grants awarded for
an activity covered by the programme shall meet the general
criteria set out in the Annex.

3.
The bodies to receive operating grants shall be selected
following a call for proposals. The award of an operating grant
on the basis of a beneficiary's ongoing work programme shall
meet the general criteria set out in the Annex. On the basis of
the call for proposals, the Commission shall draw up a list of
the beneficiaries and the amounts approved,
in accordance
with Article 116 of Regulation (EC, Euratom) No 1605/2002.

percentage of Community co-financing represented by the new
grant shall be at least 10 percentage points lower than the
Community co-financing percentage represented by the grant
in the preceding year.

Article 6

Financial provisions

This programme shall start on 1 January 2004 and end

1.
on 31 December 2006.

The financial framework for the implementation of the
the period 2004 to 2006 shall be EUR

2.
programme for
11 775 000.

Article 5

Awarding of the grant

Financial assistance granted for activities may not cover
1.
all eligible expenditure. The amount of a grant for an activity
awarded under the programme may not exceed the following
rates:

(a) 50 % of eligible expenditure for technical support;

(b) 80 % of

eligible

expenditure

training measures,
promoting exchanges of specialised staff and the holding of
seminars and conferences, provided that the beneficiaries
are those referred to in point 2, first indent of the Annex;

for

The annual appropriations shall be authorised by the
financial

authority within the

limits of

the

3.
budgetary
perspective.

Article 7

Monitoring and evaluation

The Commission shall present to the European Parliament and
the Council:

(a) by 30 June 2006 at the latest, a report by OLAF on the
implementation of the programme and the appropriateness
of continuing it;

(b) by 31 December 2007 at the latest, a report by OLAF on
the achievement of the objectives of the programme. The
report, based on the results obtained by the beneficiaries,
shall assess,
in particular, their effectiveness in achieving
the objectives defined in Article 1 and in the Annex.

(c) 90 % of eligible expenditure for the holding of seminars
and conferences, etc., provided that the beneficiaries are
those referred to in point 2, second and third indents of
the Annex.

2.
The amount of an operating grant awarded under this
programme may not exceed 70 % of the eligible expenditure of
the body for the calendar year for which the grant is awarded.

Article 8

Entry into force

This Decision shall enter into force on the day following that
of its publication in the Official Journal of the European Union.

Done at Strasbourg, 21 April 2004.

Pursuant to Article 113(2) of Regulation (EC, Euratom) No
1605/2002, where such operating grants are renewed, they
shall be gradually decreased. If a grant is awarded to a body
the
which received an operating grant

the preceding year,

For the European Parliament

For the Council

The President

P. COX

The President

D. ROCHE

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Official Journal of the European Union

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ANNEX

1.

ACTIVITIES SUPPORTED

The general objective laid down in Article 1 is to reinforce Community action to prevent fraud affecting the
Community's financial interests and to combat such fraud by promoting actions in this field and the operation of
bodies engaged in it.

Activities of bodies which may help to reinforce and increase the effectiveness of Community action,
accordance with Article 2, include the following:

in

— organisation of seminars and conferences,

— promotion of scientific studies and discussions on Community policies in the field of the protection of the

Community's financial interests,

— coordination of activities relating to the protection of the Community's financial interests,

— training and awareness,

— promoting exchanges of specialised staff,

— dissemination of scientific information on Community action,

— development and supply of specific IT tools,

— technical assistance,

— promoting and expanding the exchange of data.

2.

CARRYING OUT THE ACTIVITIES SUPPORTED

The activities carried out by bodies which may receive a Community grant under the programme come under
the heading of actions aimed at strengthening Community measures to protect financial interests and pursue
objectives of general European interest in this field or an objective which is part of the European Union's policy
in this area.

In accordance with Article 2 of the Decision, the following bodies shall have access to the programme:

— all national or regional administrations of a Member State or country outside the Community, as defined in
Article 3, which promote the strengthening of the Community's action in the field of the protection of the
Community's financial interests,

— all research and education institutes that have had legal personality for at least one year and are established
and operating in a Member State or in a country outside the Community, as defined in Article 3, and that
promote the strengthening of the Community's action in protecting its financial interests,

— all non-profit-making bodies that have had legal personality for at least one year and are legally established
in a Member State or country outside the Community, as defined in Article 3, and that promote the
strengthening of Community action to protect the Community's financial interests.

An annual operating grant may be awarded to support implementation of such a body's ongoing programme of
work.

3.

SELECTION OF BENEFICIARIES

Bodies entitled to receive a grant for the activity or an operating grant under point 2 will be selected on the
basis of calls for proposals.

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4.

CHARACTERISTICS OF GRANT APPLICATIONS ON WHICH ASSESSMENT IS BASED

Applications for grants for activities or, where appropriate, operating grants are assessed in the light of:

— consistency of the proposed activity in relation to the objectives of the programme,

— complementarity of the proposed activity with other assisted activities,

— feasibility of the proposed activity, i.e. the real possibility that it can be carried out using the proposed

means,

— the cost-benefit ratio,

— the added utility of the proposed activity,

— size of public targeted by the proposed activity,

— transnational and multidisciplinary aspects of the activity,

— geographic scope of the proposed measure.

5.

ELIGIBLE EXPENDITURE

Pursuant to point 2, only the expenditure required for the successful implementation of the activity is taken into
account when calculating the grant.

Also eligible is expenditure in connection with the participation of representatives of the Balkan countries
forming part of the stabilisation and association process for countries of south eastern Europe (1) and certain
countries of the Commonwealth of Independent States (2).

6.

CHECKS AND AUDITS

6.1.

6.2.

The beneficiary of an operating grant must keep available for the Commission all the supporting documents, in
particular the audited financial statement, regarding expenditure incurred during the grant year for a period of
five years following the last payment. The beneficiary of a grant must ensure that, where applicable, supporting
documents in the possession of partners or members are made available to the Commission.

The Commission may have an audit of the use made of the grant carried out either directly by its own staff or
by any other qualified outside body of its choice. Such audits may be carried out throughout the lifetime of the
agreement and for a period of five years from the date of payment of the balance. Where appropriate, the audit
findings may lead to recovery decisions by the Commission.

6.3.

Commission staff and outside personnel authorised by the Commission have appropriate right of access to sites
and premises where the action is carried out and to all the information, including information in electronic
format, needed in order to conduct such audits.

6.4.

The Court of Auditors and OLAF must enjoy the same rights, especially of access, as the persons referred to in
point 6.3.

6.5.

to protect

the European Community's financial

in order
the Commission carries out on-the-spot checks and inspections under

Furthermore,
fraud and other
this programme in
irregularities,
accordance with Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot
checks and inspections carried out by the Commission in order to protect the European Communities' financial
interests against fraud and other irregularities (3). Where necessary, investigations must be conducted by the
European Anti-Fraud Office (OLAF) and governed by Regulation (EC) No 1073/1999 of the European Parliament
and of the Council (4).

interests against

(1) Former Yugoslav Republic of Macedonia, Albania, Serbia and Montenegro, Bosnia-Herzegovina and Croatia.
(2) Belarus, Moldavia, Russian Federation and Ukraine.
(3) OJ L 292, 15.11.1996, p. 2.
(4) OJ L 136, 31.5.1999, p. 1.

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7.

MANAGEMENT OF THE PROGRAMME

On the basis of a cost-effectiveness analysis, the Commission may employ experts and make use of any other
form of technical and administrative assistance not involving public authority tasks outsourced under ad hoc
service contracts. It may also finance studies and organise meetings of experts to facilitate the implementation of
the programme, and take information, publication and dissemination measures directly linked to fulfilling the
objectives of the programme.