European Parliament legislative resolution on the draft Commission regulation (EC, Euratom) amending Regulation (EC, Euratom) No 2342/2002 laying down detailed rules for the implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (SEC(2005)1240 - C6-0355/2005 - 2005/0904(CNS))
Date: 2006-06-01
Institutions: Committee on Budgetary Control, European Parliament
Subjects: financial management, financial regulation, general budget (EU), implementation of the budget

8.12.2006

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P6_TA(2006)0235

Implementing rules for the Financial Regulation *

European Parliament legislative resolution on the draft Commission regulation (EC, Euratom)
amending Regulation (EC, Euratom) No 2342/2002 laying down detailed rules for the implemen-
tation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to
the general budget of the European Communities (SEC(2005)1240 — C6-0355/2005 — 2005/0904
(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the draft Commission regulation (SEC(2005)1240),

— having been consulted by the Commission by letter of 12 October 2005 in accordance with the declar-
ation (1) adopted in the context of the conciliation procedure prior to the adoption of the Financial
Regulation in relation to Article 183 thereof (C6-0355/2005),

— having regard to Rule 51 of its Rules of Procedure,

— having regard to the report of the Committee on Budgetary Control (A6-0135/2006),

1.

2.

Approves the draft Commission regulation as amended;

Calls on the Commission to alter its draft regulation accordingly;

Asks to be consulted again if the Commission should intend to depart from the text approved by

3.
Parliament;

4.

Instructs its President to forward its position to the Council and Commission.

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AMENDMENTS
BY PARLIAMENT

Amendment 1
ARTICLE 1, POINT (5A) (new)
Article 43, paragraph 2, point (ca) (new) (Regulation (EC, Euratom) No 2342/2002)

(5a)

In Article 43(2), the following point is added:

(ca)

the International Union for the Conservation of

Nature and Natural Resources.

Amendment 2
ARTICLE 1, POINT (9)
Article 56, paragraph 3 (Regulation (EC, Euratom) No 2342/2002)

Each institution shall

3.
the appointment or termination of duties of
officer.

inform the budgetary authority of
its accounting

Each institution shall

3.
inform the budgetary authority of
its accounting
the appointment or termination of duties of
officer. The handing over report shall also contain the result
of any trial balance made and in particular any reservations
made.

(1) Council document 10003/02 add. 1.

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Amendment 3

ARTICLE 1, POINT (14)
Article 68 (Regulation (EC, Euratom) No 2342/2002)

Imprest administrators shall be chosen from officials or, should
the need arise, from other members of staff.

Imprest administrators shall be chosen from officials or, should
the need arise, from other members of staff. Should the need
arise, temporary and/or auxiliary staff may only be chosen in
duly substantiated cases.

Amendment 4

ARTICLE 1, POINT (28) (AA) (new)
Article 106, paragraph 4 (Regulation (EC, Euratom) No 2342/2002)

(aa) Paragraph 4 is replaced by the following:

4.
The authorising officer responsible may suspend the
time limit for payment by informing creditors, at any
time during the period referred to in paragraph 1, that
the payment request cannot be met, either because the
amount is not due or because the appropriate supporting
documents have not been produced. If information comes
to the notice of the authorising officer responsible which
puts in reasonable doubt the eligibility of expenditure
appearing in a payment request, the authorising officer
may suspend the time limit for payment for the purpose
of further verification, including an on-the-spot check, in
order to ascertain, prior to payment, that the expenditure
is indeed eligible. The authorising officer shall inform the
beneficiary in question as soon as possible. He shall
inform the beneficiary also that payment may be withheld
information
until
required by the authorising officer. Time for the purposes
of the remainder of the payment period shall begin to run
again from the date on which the properly formulated
payment request is first registered. However, payment
must be made no later than the expiry of twice the initial
payment period, unless the beneficiary has by this time
not supplied the information required by the authorising
officer.

the beneficiary has

supplied the

Amendment 5

ARTICLE 1, POINT (36)
Article 129 (Regulation (EC, Euratom) No 2342/2002)

1.
A negotiated procedure with consultation of at least five
candidates may be used for contracts with a value less than or
equal to EUR 60 000.

1.
A negotiated procedure with consultation of at least five
candidates may be used for contracts with a value less than or
equal to EUR 80 000.

following consultation of

If,
the contracting
authority receives only one tender that is administratively and
technically valid, the contract may be awarded provided that the
award criteria are met.

the candidates,

following consultation of

If,
the contracting
authority receives only one tender that is administratively and
technically valid, the contract may be awarded provided that the
award criteria are met.

the candidates,

For

contracts with a value

2.
to
EUR 25 000, the procedure referred to in paragraph 1 with
consultation of at least three candidates may be used.

than or

equal

less

For

contracts with a value

2.
to
EUR 50 000, the procedure referred to in paragraph 1 with
consultation of at least three candidates may be used.

than or

equal

less

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Contracts with a value less than or equal to EUR 3 500

3.
may be awarded on the basis of a single tender.

Contracts with a value less than or equal to EUR 12 500

3.
may be awarded on the basis of a single tender.

Payments

in respect of

4.
items of expenditure for an
amount less than or equal to EUR 200 may consist simply in
payment against invoices, without prior acceptance of a tender.

Payments

in respect of

4.
items of expenditure for an
amount less than or equal to EUR 1 000 may consist simply
invoices, without prior acceptance of a
in payment against
tender.

Contracts may not be divided into individual
results in circumvention of the thresholds.

lots if this

Amendment 6
ARTICLE 1, POINT (38) (A)
Article 134, paragraph 2 (Regulation (EC, Euratom) No 2342/2002)

(a)

In paragraph 2, the second subparagraph is deleted.

(a) Paragraph 2 is replaced by the following:

2. Where the document or certificate referred to in
paragraph 1 is not issued in the country concerned and
for the other cases of exclusion referred to in Articles 93
and 94 of the Financial Regulation, it may be replaced by
a sworn or, failing that, a solemn statement made by the
interested party before a judicial or administrative auth-
ority, a notary or a qualified professional body in his
country of origin or provenance.

For contracts with a value of less than EUR 80 000, the
contracting authority may, depending on its analysis of
risks, ask candidates or tenderers to provide only a declar-
ation on their honour that they are not in one of the
situations referred to in Articles 93 and 94 of the Finan-
cial Regulation.

For contracts with a value of less than EUR 5 000, the
contracting authority may, depending on its analysis of
risks, award the contract without demanding such a
declaration.

Amendment 7
ARTICLE 1, POINT (39) (B)
Article 135, paragraph 6 (Regulation (EC, Euratom) No 2342/2002)

6.
The contracting authority may, depending on his assess-
ment of the risks, decide not to require proof of the financial,
economic, technical and professional capacity of candidates or
tenderers in the case of the following contracts:

6.
The contracting authority may, depending on his assess-
ment of the risks, decide not to require proof of the financial,
economic, technical and professional capacity of candidates or
tenderers in the case of the following contracts:

(a)

contracts awarded by the institutions on their own account,
with a value of less than or equal to EUR 60 000,

(a)

contracts awarded by the institutions on their own account,
with a value of less than or equal to EUR 80 000,

(b) contracts awarded in the field of external actions, with a
value below the thresholds referred to in Article 241(1)(a),
Article 243(1)(a), or Article 245(1)(a).

(b) contracts awarded in the field of external actions, with a
value below the thresholds referred to in Article 241(1)(a),
Article 243(1)(a), or Article 245(1)(a).

Where the contracting authority decides not to require proof of
the financial, economic, technical and professional capacity of
candidates or tenderers, no pre-financing or interim payment
may be made. However, a pre-financing can be made if a
financial guarantee of an equivalent amount is provided.

Where the contracting authority decides not to require proof of
the financial, economic, technical and professional capacity of
candidates or tenderers, interim payments may be made where
services have already been rendered or goods have already been
delivered. Interim payments may be made if a financial guar-
antee of an equivalent amount is provided or if the authoris-
ing officer can reduce the risk by other appropriate means to
the same effect.

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Amendment 8
ARTICLE 1, POINT (40A) (new)
Article 140 (Regulation (EC, Euratom) No 2342/2002)

(40a) Article 140 is replaced by the following:

The time limits for the receipt of

1.
tenders and
requests to participate, laid down in calendar days by the
contracting authorities, shall be long enough to allow
interested parties a reasonable and appropriate period to
prepare and submit
taking particular
account of the complexity of the contract or the need to
visit
the documents
annexed to the specifications.

the site or consult on the spot

tenders,

their

2.
In open procedures for contracts with a value equal
to or above the thresholds laid down in Article 158, the
time limit for receipt of tenders shall generally be between
26 and 52 days from the date on which the contract
notice is dispatched, depending on the complexity of the
contract.

3.
In restricted procedures, competitive dialogue pur-
suant to Article 125b and in negotiated procedures where
a contract notice is published for contracts with a value
equal to or above the thresholds laid down in Article 158,
the time limit for receipt of requests to participate shall
generally be between 18 and 37 days from the date on
which the contract notice is dispatched, depending on the
complexity of the contract.

In restricted procedures for contracts with a value equal to
or above the thresholds laid down in Article 158, the time
limit for receipt of tenders shall generally be between 20
and 40 days from the date on which the invitation to
tender is dispatched, depending on the complexity of the
contract.

in restricted procedures after a call

for
However,
expressions of interest as referred to in Article 128, the
time limit for receipt of tenders shall generally be between
10 and 20 days from the date on which the invitation to
tender is dispatched, depending on the complexity of the
contract.

4. Where the contracting authorities have published a
pre-information notice in accordance with Article 118(2),
the time limit for receipt of tenders may generally be
reduced to 18 days but shall in no circumstances be less
than 11 days from the date of dispatch of the contract
notice or invitation to tender.

The shortened time limit referred to in the first subpara-
graph shall be permitted only if the pre-information
notice satisfies the following conditions:

(a)

it contains all the information required for the con-
tract notice, insofar as that information is available
at the time the contract notice is published;

(b) it was sent for publication between 26 days and 6
months before the date on which the contract notice
was sent.

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The time limits for receipt of tenders may be short-
5.
ened by five days if unrestricted and direct access is avail-
able by electronic means to all documents constituting the
call for tenders from the date of publication of the con-
tract notice or the call for expressions of interest.

Amendment 9
ARTICLE 1, POINT (46A) (new)
Article 164, paragraph 3 (Regulation (EC, Euratom) No 2342/2002)

(46a)

In Article 164, paragraph 3 is replaced by the

following:

Amendments to grant agreements may be made if
3.
circumstances have changed and the change of circum-
stances was not foreseen or foreseeable by either party
and the unchanged performance of the agreement would
lead to unreasonable consequences for any one or several
of the parties or otherwise frustrate the contract.

Grant agreements may be amended only by written addi-
tional agreements. Such additional agreements shall not
have the purpose or the effect of making such changes
into question the grant
to agreements as would call
award decision or be contrary to the equal treatment of
the parties.

Should an amendment to the contract be an insufficient
remedy, the parties shall, as a whole or individually, be
allowed to terminate the agreement.

Amendment 10
ARTICLE 1, POINT (50) (A)
Article 173, paragraph 2, subparagraph 2 (Regulation (EC, Euratom) No 2342/2002)

For that purpose the authorising officer shall request a declar-
ation from potential beneficiaries on their honour. For appli-
cations for a grant exceeding EUR 25,000, the profit and loss
account, the balance sheet for the last financial year for which
the accounts were closed and any other supporting document
requested in the call for proposals shall, depending on the risk
analysis conducted by the authorising officer responsible on his
own responsibility, also be attached to the application.

For that purpose the authorising officer shall request a declar-
ation from potential beneficiaries on their honour. For appli-
cations for a grant exceeding EUR 50 000, the profit and loss
account, the balance sheet for the last financial year for which
the accounts were closed and any other supporting document
requested in the call for proposals shall, depending on the risk
analysis conducted by the authorising officer responsible on his
own responsibility, also be attached to the application.

Amendment 11
ARTICLE 1, POINT (50) (B)
Article 173, paragraph 4 (Regulation (EC, Euratom) No 2342/2002)

(b) Paragraph 4 is amended as follows:

(b) Paragraph 4 is replaced by the following:

(i) The first subparagraph is replaced by the following:

4. Where the application concerns grants for an
action for which the amount exceeds EUR 750 000 or
operating grants which exceed EUR 100 000, the appli-
cation shall be accompanied by an external audit
report produced by an approved auditor. That report
shall certify the accounts for the last financial year
available.

4. Where the application concerns grants for an action
for which the amount exceeds EUR 750 000 or operating
grants which exceed EUR 100 000, the application shall be
accompanied by an external audit report produced by an
approved auditor, or in the case of organisations possess-
ing an independent audit function, an independent audit.
That report shall certify the accounts for the last financial
year available.

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The provisions of the first subparagraph shall apply only
to the first application made by a beneficiary to an auth-
orising officer in any one budget year.

In the case of agreements linking the Commission and a
number of beneficiaries, those thresholds shall apply to
each beneficiary.

In the case of partnerships as referred to in Article 163,
an external audit, or in the case of organisations possess-
ing an independent audit function, an independent audit,
covering the last two financial years available must be
produced before the framework agreement is concluded.

(ii) The fifth subparagraph is replaced by the following:

‘The authorising officer responsible may, depending on
his risk analysis, waive the obligation of external audit
for beneficiaries who have accepted joint and several
liabilities in the case of agreements with a number of
beneficiaries.’

The authorising officer responsible may, depending on his
risk analysis, waive the obligation of external or indepen-
dent audit for beneficiaries who have accepted joint and
several liabilities in the case of agreements with a number
of beneficiaries.

(iii) The following sixth subparagraph is added:

‘The first
bodies,
national organisations referred to in Article 43(2).’

subparagraph shall not apply to public
establishments, and the inter-

educational

The first subparagraph shall not apply to public bodies,
educational establishments, and the international organi-
sations referred to in Article 43(2)(a), (b) and (c).

Amendment 12

ARTICLE 1, POINT (53A) (new)
Article 180, paragraph 2 (Regulation (EC, Euratom) No 2342/2002)

(53a)

In Article 180, paragraph 2 is replaced by the follow-

ing:

2.
An external audit of the financial statements and
underlying accounts produced by an approved auditor, or,
in the case of organisations possessing an independent
audit function, an independent audit, may be demanded
by the authorising officer responsible in support of any
payment on the basis of his analysis of risks. In the case
of a grant for an action or of an operating grant, the
audit report shall be attached to the request for payment.
Its purpose is to certify that the costs declared by the
beneficiary in the financial statements on which the
request for payment is based are real, exact and eligible
in accordance with the grant agreement. An external
audit, or, in the case of organisations possessing an inde-
pendent audit function, an independent audit, shall be
compulsory for interim payments per financial year and
for payments of balances in the case of the following:

(a) grants for an action of EUR 750 000 or more;

(b) operating grants of EUR 100 000 or more.

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Depending on his analysis of risks, the authorising officer
responsible may also waive the obligation of an external
or independent audit in the case of:

(a) public bodies and the international organisations ref-
erred to in Article 43(1) and (2)(a), (b) and (c);

(b) the beneficiaries of grants

in connection with
humanitarian aid and the management of crisis situ-
ations, save in respect of payments of balances;

(c)

for payments of balances, beneficiaries of grants in
connection with humanitarian aid who have signed
a framework partnership agreement as referred to in
Article 163 and who have in place a system of control
offering equivalent guarantees for such payments.

Amendment 13
ARTICLE 1, POINT (54)
Article 182 (Regulation (EC, Euratom) No 2342/2002)

(54) Article 182 is amended as follows:

(54) Article 182 is replaced by the following:

(a) Paragraph 1 is replaced by the following:

1.
The authorising officer responsible may require
the beneficiary to lodge a guarantee in advance, for
the same amount as the pre-financing,
in order to
limit the financial risks connected with the payment
of pre-financing.

(b) In paragraph 2, the first subparagraph is replaced by

the following:

2. Where the pre-financing represents over 80 % of
the
exceeds
EUR 60 000, a guarantee shall be required.

amount

grant

total

and

the

of

1.
The authorising officer responsible may on the basis
of a risk analysis require the beneficiary to lodge a guar-
antee in advance, for up to the same amount as the pre-
in order to limit the financial risks connected
financing,
with the payment of pre-financing if no other means to
secure the debt which is equally effective can be estab-
lished.

Such a guarantee may also be demanded by the authoris-
ing officer responsible, depending on his analysis of risks,
in the light of the method of funding laid down in the
grant agreement.

2. Where the pre-financing represents over 80 % of the
total amount of the grant and exceeds EUR 60 000, a guar-
antee shall be required if no other means to secure the
debt which is equally effective can be established. For
NGOs operating in the field of external action, that guar-
antee shall be demanded in respect of pre-financing
exceeding EUR 1 000 000 or representing over 90 % of
the total amount of the grant if no other means to secure
the debt which is equally effective can be established. The
guarantee shall be valid for a period sufficiently long to
allow it to be activated.

The guarantee shall be provided by an approved
3.
bank or financial
institution established in one of the
Member States. When the beneficiary is established in a
third country, the authorising officer responsible may
agree that a bank or financial institution established in
that third country may provide the guarantee if he con-
siders that the bank or financial institution offers equiv-
alent security and characteristics as those offered by a
bank or financial
institution established in a Member
State. At the request of the beneficiary, that guarantee

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may be replaced by a joint and several guarantee by a
third party or by the irrevocable and unconditional joint
guarantee of
the beneficiaries of an action who are
parties to the same grant agreement, after acceptance by
the authorising officer responsible.

The guarantee shall be denominated in euro. It shall have
the effect of making the bank or financial institution,
third party or the other beneficiaries stand as irrevocable
collateral security, or first-call guarantor of the grant
beneficiary's obligations.

Other means to secure the debt may, depending on a risk
analysis conducted by the authorising officer, include (but
are not restricted to) periodical payments, mortgages, land
charges or charges on tangible and intangible property
and pledges.

The guarantee or other security shall be released as
4.
interim
the pre-financing is gradually cleared against
payments or payments of balances to the beneficiary in
accordance with the conditions laid down in the grant
agreement. In the cases referred to in the second subpara-
graph of paragraph 1, it shall be released only upon pay-
ment of the balance.

5.
The authorising officer responsible may, on the
basis of an analysis of risks, waive the obligation laid
down in paragraph 2 for public-sector bodies and the
international organisations referred to in Article 43(1)
and (2)(a), (b) and (c). The authorising officer responsible
may also exempt from that obligation beneficiaries who
have
concluded a framework partnership agreement
under Article 163.

6. Where the grant does not exceed EUR 10 000, the
authorising officer shall require the lodging of a guaran-
tee only in duly substantiated cases.

P6_TA(2006)0236

Prohibitions on certain sex offenders *

European Parliament legislative resolution on the initiative by the Kingdom of Belgium with a view
to the adoption by the Council of a framework decision on the recognition and enforcement in the
European Union of prohibitions arising from convictions for sexual offences committed against
children (14207/2004 — C6-0244/2004 — 2004/0818(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the initiative by the Kingdom of Belgium (14207/2004) (1),

— having regard to Article 34(2)(b) and Article 31(1)(a) of the EU Treaty,

(1) Not yet published in OJ.