Commission Regulation (EC, Euratom) No 1248/2006 of 7 August 2006 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
Date: 2006-08-07
Institutions: European Commission
Subjects: financial management, financial regulation, general budget (EU), implementation of the budget

19.8.2006

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COMMISSION REGULATION (EC, EURATOM) No 1248/2006

of 7 August 2006

amending Regulation (EC, Euratom) No 2342/2002 laying down detailed rules
the
implementation of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation
applicable to the general budget of the European Communities

for

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty
Community,

establishing the European

Having regard to the Treaty establishing the European Atomic
Energy Community,

Having regard to Council Regulation (EC, Euratom) No
1605/2002 of 25 June 2002 on the Financial Regulation
the European Commu-
applicable to the general budget of
nities (1), and in particular Article 183 thereof,

Having consulted the European Parliament, the Council, the
Court of Justice of the European Communities, the Court of
Auditors, the European Economic and Social Committee, the
Committee of
the Ombudsman and the
European Data Protection Supervisor,

the Regions,

Whereas:

(1)

(2)

(3)

The obligation for
the Commission to inform the
budgetary authority by 15 April of the cancellation of
appropriations which have not been
carried over
committed by 31 March has proven to be too strict
and it should therefore be extended by two weeks to
30 April.

It should be specified that where the system of provi-
sional twelfths is to be applied, the total allotted appro-
priations of
financial year are to be
the
understood as
financial year after adjustment for any transfers made
during that financial year.

referring to appropriations

the previous

for

It should be made clear that the rules on the rate of
conversion between the euro and another currency set
out in Articles 7 and 8 of Commission Regulation (EC,
Euratom) No 2342/2002 (2) apply only to conversions
to those
carried out by authorising officers and not

(1) OJ L 248, 16.9.2002, p. 1.
(2) OJ L 357, 31.12.2002, p. 1. Regulation as amended by Regulation

(EC, Euratom) No 1261/2005 (OJ L 201, 2.8.2005, p. 3).

carried out by contractors or beneficiaries, on the basis of
the specific rules agreed in contracts or grant agreements.
For reasons of efficiency, the Commission's accounting
officer should be authorised to establish the monthly
accounting exchange rate of the euro to be used for
accounts purposes.
trans-
parency and equal treatment of Community officials, a
specific rule on conversion rates should be established for
staff expenditure paid in a currency other than the euro.

for reasons of

In addition,

(4)

(5)

(6)

(7)

As regards the principle of sound financial management,
the content of the ex ante evaluation should be clarified
and the scope of the ex ante, interim or ex post evaluation
should be better targeted, having due regard to the
principle of proportionality. The priorities of evaluation
should thus be redirected in order to focus on proposals
with an impact on business and/or citizens and to cover
pilot projects and preparatory actions to be continued. In
addition, complementarity should be ensured when
projects or actions are already subject to evaluation (for
example,
tasks shared between the Commission and
Member States).

reimbursement of mission expenses

For the purpose of ex ante verification for the authori-
sation of expenditure, a series of similar individual trans-
actions relating to routine staff expenditure on salaries,
pensions,
and
medical expenses may be considered by the authorising
office responsible to constitute a single operation. In that
case, the authorising officer responsible,
in accordance
with his risk assessment, should carry out appropriate
ex post verification.

It is appropriate to include in the report on negotiated
the use of negotiated
procedures only the cases of
procedures which constitute exceptions to the normal
procurement procedures.

Following the introduction of accrual accounting on 1
January 2005, and the availability of accounting data at
any moment in the informatics system, it is more logical
and quicker to draw up the trial balance on the day on
which the accounting officer terminates his duty. If he
terminates his duty on 31 December, the trial balance
could be prepared the same day without waiting for the
provisional accounts to be finalised.

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to render effective the accounting officer's
In order
responsibility for treasury management, he should be
authorised to communicate
institutions
with which he has opened accounts the names and
specimen signatures of the officials authorised to sign
banking operations.

to financial

The maximum amount which can be paid by the imprest
administrator should be increased from EUR 30 000 to
EUR 60 000 when payments by budgetary procedures
are materially impossible or less effective.

it

‘essential elements’ of an action involving expenditure
from the budget should be defined in more detail.
Moreover,
the work
programme referred to in Article 110 of Regulation
(EC, Euratom) No 1605/2002, hereinafter ‘the Financial
Regulation’, may constitute a financing decision provided
that it contains a sufficiently detailed framework.

should be made clear

that

(16) Where a global budgetary commitment

is made, any
authorising officer — not only the authorising officer
by delegation — may be responsible for
the legal
commitments implementing the global commitment.

(8)

(9)

(10)

In the light of Article 21a of the Staff Regulations of
Officials and the Conditions of Employment of other
Servants of the European Communities, the authorising
officer by delegation or sub-delegation should, in the case
of confirmation of instruction, be allowed not to carry
out the instruction if it is manifestly illegal.

(17)

(11) Given the

complementary roles of

the authorising
officers and the accounting officer in the process of
recovery by offsetting, providing
consultation
for
between them before offsetting is justified.

levels,

(12) When the debtor is a national authority or one of its
in order to take account of the
administrative entities,
procedures existing at national
the accounting
officer should inform the Member States concerned at
least 10 working days in advance of his intention to
resort to recovery by offsetting. However, in agreement
with
entity
concerned,
the accounting officer should be able to
proceed with the recovery by offsetting before that
deadline.

administrative

the Member

State

or

(13) Where the debt is paid before the deadline no default
interest will be due (period of grace) and recovery by
offsetting before that deadline should be limited to
cases where the accounting officer has justified reasons
for considering the financial interests of the Communities
to be at stake.

(14)

In order to protect the financial interests of the Commu-
nities, bank guarantees that secure a Community claim
pending appeal against a fine should be completely inde-
pendent of the obligation laid down in the contract.

(15)

The content of the financing decision should be further
the notion of
specified. For grants and procurement,

for

contracts

time-limits

and grant
The payment
agreements which depend on the approval of a report
or certificate should be revised in order to make certain
that payments are made on the basis of an approved
for
report or
approval of a report
related to a grant agreement
involving actions which are particularly complex to
evaluate should be brought into line with the current
time-limit for complex service contracts.

certificate. Moreover,

time-limit

the

(18) Without modifying the existing time-limits or affecting
beneficiaries’
officer
authorising
rights,
the
responsible should also,
for simplification reasons, be
able to decide that approval of the report or certificate
and payment can be made within a single time-limit.

the

(19)

(20)

The thresholds for low-value contracts, fixed in 1994,
should be updated and raised from EUR 50 000 to
EUR 60 000 and from EUR 13 800 to EUR 25 000
it should be specified that all
respectively. Moreover,
contracts with a value equal
than EUR
60 000 may be awarded after a negotiated procedure.

to or

less

In addition, the implementing rules should define more
precisely the procedure to be followed for certain
research and development service contracts and certain
service contracts intended for broadcasting which are
excluded from the scope of the Directive 2004/18/EC
of the European Parliament and of the Council of 31
March 2004 on the coordination of procedures for the
award of public work contracts, public supply contracts
and public service contracts (1).
the
principle of
contracts may be
awarded following a negotiated procedure after publi-
cation of a tender notice.

In the light of

transparency,

those

(1) OJ L 134, 30.4.2004, p. 114. Directive as last amended by
L 333,

(EC) No 2083/2005 (OJ

Commission Regulation
20.12.2005, p. 28).

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(21) With a view to further simplifying the management of
the procurement procedures, economic operators should
be able to participate in a procedure on the basis of a
declaration on their honour stating that they are not in
one of the situations giving grounds for exclusion from
that procurement procedure, except
in the case of
restricted procedures, competitive dialogue and nego-
tiated procedures after publication of a contract notice
whenever the contracting authority limits the number of
candidates to be invited to negotiate or submit a tender.
However,
in line with the principles of Directive
2004/18/EC and in order better to protect the financial
interests of the Communities, for contracts covered by
Directive 2004/18/EC and high value contracts in the
to whom the
the economic operator
external
contract is to be awarded should nevertheless have to
initial declaration.
provide
confirming the
Whenever
required to
provide evidence, the contracting authority should also
consider evidence provided by that candidate or tenderer
in another procurement procedure launched by the same
contracting authority, provided that the evidence is not
more than one year old starting from its issuing date and
that it is still valid.

evidence
a

candidate or

tenderer

field,

is

(22)

(23)

In external actions, the competitive negotiated procedure
should be rendered more efficient and the negotiated
procedure should be allowed in the event of
two
failures of a competitive negotiated procedure and in
the event of one failure when the competitive negotiated
procedure follows the unsuccessful use of a framework
contract. The option of not requiring proof of technical
and economic capacity should be allowed up to the
thresholds appropriate in that specific policy area for
each type of contract. In that case also, the authorising
officer responsible should be able to justify his choice.
The evaluation committee or the contracting authority
should have
asking candidates or
tenderers to supply additional documents or clarify infor-
mation, as provided for in the case of contracts awarded
by the institutions on their own account.

the option of

the

legal

actions,

framework for

the
In external
procurement should also be simplified as regards the
inter-
publication of
the pre-information notice for
national calls for tenders and the requirement
for a
performance
guarantee. The pre-information notice
should be published as early as possible and not neces-
sarily before 31 January. Moreover,
the performance
guarantee should be required only in the event of
procurement with a high value and the authorising
officer responsible should have the option of waiving
for a guarantee in the case of pre-
the requirement
financing to a public body, depending on his
risk
assessment.

(24) With regard to the award of grants, in order to reduce
the administrative burden, it should be accepted that the
de jure or de facto monopoly of the beneficiary can be
substantiated in the award decision.

(25)

(26)

The requirement to attach an external audit to the appli-
cation should apply only to applications for grants with a
value equal to or more than EUR 500 000 for actions
and to operating grants with a value equal to or more
than EUR 100 000.

Co-financing in kind by beneficiaries should be made
if appropriate or necessary, and the notion of
easier,
bodies which pursue an aim of European general
interest and which may receive operating grants should
include European bodies involved in promoting citi-
zenship or innovation.

(27) Applicants should be informed as soon as possible of the

rejection of their application.

(28)

In the case of operating grants to bodies which pursue an
aim of general European interest, the implementation of
the non-profit rule should be limited to the percentage of
co-financing corresponding to the Community’s contri-
bution to the operating budget in order to take account
of the rights of the other public contributors which are
also required to recover the percentage of annual profit
corresponding to their contribution. For the purpose of
calculating the amount to be recovered, the percentage of
the contributions in kind to the operating budget should
not be taken into account.

(29)

In order to protect the Communities’ financial interests,
the requirement of guarantees for pre-financing should
apply to any pre-financing exceeding 80 % of the amount
of the grant and EUR 60 000.

(30) Where pre-financing is split, where the consumption of
any earlier pre-financing is less than 70 %, a new pre-
financing should be possible but the amount of the new
payment should be reduced by the unused amounts of
the previous payment.

(31)

(32)

It should be specified that in the case of public bodies,
external audit or certification to be attached to grant
applications or requests for payments, may be carried
out by a competent and independent public officer.

Following the adoption by the Commission's accounting
officer in December 2004, pursuant to Article 133 of the
and
Financial Regulation, of
accounting rules
methods and the harmonised chart of accounts,
the
Title on presentation of the accounts and accounting
should be updated by deleting provisions which are no
longer necessary.

the

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(33)

Justice, Court of Auditors,

In order to take account of Decision 2005/118/EC of the
European Parliament, the Council, the Commission, the
Court of
the European
Economic and Social Committee, the Committee of the
Regions and the Ombudsman of 26 January 2005 setting
up a European Administrative School (1),
the list of
European offices should be adjusted to reflect that the
is presently attached
European Administrative School
administratively
Communities
the
Personnel Selection Office.

European

to

(34)

Regulation (EC,
therefore be amended accordingly,

Euratom) No 2342/2002 should

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC, Euratom) No 2342/2002 is amended as follows:

arrangements

specific
procurement contracts, grant agreements or
agreements shall apply.

conversion

for

contained

in
financing

2.
If no daily euro exchange rate is published in the
Official Journal of the European Union for the currency in
question, the responsible authorising officer shall use the
accounting rate referred to in paragraph 3.

to Article 213 of

For the purposes of the accounts provided for in
3.
the Financial Regulation and
Articles 132 to 137 of
subject
this Regulation, conversion
between the euro and another currency shall be made
using the monthly accounting exchange rate of the euro.
That accounting exchange rate shall be established by the
Commission's accounting officer by means of any source of
the
information he regards as reliable, on the basis of
exchange rate on the penultimate working day of
the
month preceding that for which the rate is established.

1.

In Article 6(3), second subparagraph, ‘15 April’ is replaced
by ‘30 April’.

Article 8

2. The following Article 6a is inserted:

‘Article 6a

Provisional twelfths

( A r t i c l e 1 3 ( 2 ) o f

t h e F i n a n c i a l R e g u l a t i o n )

The total allotted appropriations of the previous financial
year, as specified in Article 13(2) of the Financial Regu-
lation, shall be understood to refer to the appropriations
for the financial year referred to in Article 5 of this Regu-
lation, after adjustment for the transfers made during that
financial year.’

3. Articles 7 and 8 are replaced by the following:

‘Article 7

Rate of conversion between the euro and other
currencies

( A r t i c l e 1 6 o f

t h e F i n a n c i a l R e g u l a t i o n )

1. Without prejudice to specific provisions arising from
the application of sector-specific regulations, conversion
between the euro and another currency by the responsible
authorising officer shall be made using the daily euro
the Official
exchange rate published in the C series of
Journal of the European Union.

Where conversion between the euro and another currency
the
is to be made by the contractors or beneficiaries,

(1) OJ L 37, 10.2.2005, p. 14.

Rate to be used for conversion between the euro and
other currencies

( A r t i c l e 1 6 o f

t h e F i n a n c i a l R e g u l a t i o n )

sector-specific regulations, or

1. Without prejudice to specific provisions deriving from
the application of
from
specific procurement
contracts, grant agreements and
financing agreements, the rate to be used for conversion
between the euro and other currencies shall, in cases where
the conversion is carried out by the responsible authorising
officer, be that of the day on which the payment order or
recovery order is drawn up by the authorising department.

In the case of euro imprest accounts, the rate to be
2.
used for
the conversion between the euro and other
currencies shall be determined by the date of payment by
the bank.

3.
For the regularisation of imprest accounts in national
currencies, as referred to in Article 16 of the Financial
Regulation,
conversion
rate to be used for
between the euro and other currencies shall be that of
the month of the expenditure from the imprest account
concerned.

the

the

For the reimbursement of

4.
flatrate expenditure, or
expenditure arising from the Staff Regulations of Officials
and the Conditions of Employment of Other Servants of
the European Communities (hereinafter: Staff Regulations)
which is fixed at a ceiling, and which is paid in a currency
other than the euro, the rate to be used shall be that which
is in force when the entitlement arises.’

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4. Article 21 is replaced by the following:

(b) activities financed on an annual basis shall have their

results evaluated at least every six years.

‘Article 21

Evaluation

( A r t i c l e 2 7 o f

t h e F i n a n c i a l R e g u l a t i o n )

1.
All proposals for programmes or activities occa-
sioning budget expenditure shall be the subject of an ex
ante evaluation, which shall address:

(a)

the need to be met in the short- or long-term;

Points (a) and (b) of the first subparagraph shall not apply
to each of the projects or actions conducted within the
activities for which the requirement may be met by the
final reports sent by the bodies which carried out
the
action.

4.
The evaluations referred to in paragraphs 1 and 3
shall be proportionate to the resources mobilised for and
the impact of the programme or activity concerned.’

(b) the added value of Community involvement;

5. Article 45 is amended as follows:

(c)

the objectives to be achieved;

(d) the policy options available,

including the risks asso-

ciated with them;

(e)

and

results

impacts

the
economic, social and environmental
indicators
measure them;

in particular
impacts, and the
and evaluation arrangement needed to

expected,

(a)

In paragraph 1, the first sentence is replaced by the
following:

‘The authorising officer responsible may be assisted in
his duties by persons covered by the Staff Regulations
(hereinafter: staff) entrusted, under his responsibility,
with certain operations required for the implementation
of
the financial and
management information.’

the budget and production of

(f)

the most appropriate method of implementation for
the preferred option(s);

(b) Paragraph 2 is replaced by the following:

(g) the internal coherence of the proposed programme or
relevant

relations with

other

and

its

activity
instruments;

Each institution shall

‘2.
inform the budgetary
authority whenever an authorising officer by delegation
takes up his duties, changes duties or terminates his
duties.’

(h) the volume of appropriations, human resources and
other administrative expenditure to be allocated with
due regard for the cost-effectiveness principle;

6. Article 47 is amended as follows:

(i)

the lessons learned from similar experiences in the past.

(a)

In paragraph 3, the following subparagraphs are added:

2.
The proposal shall set out the arrangements for moni-
toring, reporting and evaluation, taking due account of the
respective responsibilities of all levels of government that
will be involved in the implementation of the proposed
programme or activity.

3.
All programmes or activities, including pilot projects
and preparatory actions, where the resources mobilised
exceed EUR 5 000 000 shall be the subject of an interim
and/or
the human and financial
resources allocated and the results obtained in order to
verify that they were consistent with the objectives set, as
follows:

ex post evaluation of

(a)

be

shall

the results obtained in carrying out a multiannual
in
programme
accordance with a
the
findings of that evaluation to be taken into account
for any decision on the renewal, modification or
suspension of the programme;

evaluated
timetable which enables

periodically

‘For the purpose of ex ante verification, a series of
similar individual transactions relating to routine expen-
diture on salaries, pensions, reimbursement of mission
expenses and medical expenses may be considered by
the authorising officer responsible to constitute a single
operation.

In the case referred to in the second subparagraph, the
authorising officer responsible shall, depending on his
risk assessment, carry out an appropriate ex post verifi-
cation, in accordance with paragraph 4.’

(b) Paragraph 5 is replaced by the following:

‘5.
The members of staff responsible for the verifi-
cations referred to in paragraphs 2 and 4 shall be
different from those members of staff performing the
tasks of initiation referred to in paragraph 1 and they
shall not be subordinate to the latter.’

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7.

In Article 54, the first sentence is replaced by the following:

(b) Paragraph 1 is replaced by the following:

‘Authorising officers by delegation shall record, for each
financial year, contracts concluded under the negotiated
procedures
to (g),
127(1)(a) to (d), 242, 244 and 246.’

referred to in Articles 126(1)(a)

8. Article 56 is replaced by the following:

‘Article 56

Termination of duties of the accounting officer

( A r t i c l e 6 1 o f

t h e F i n a n c i a l R e g u l a t i o n )

A trial balance shall be drawn up without delay in the
1.
event of termination of the duties of the accounting officer.

The trial balance accompanied by a handing-over
2.
report shall be transmitted by the accounting officer who
is terminating his duties or, if this is not possible, by an
in his department to the new accounting officer.
official

The new accounting officer shall sign the trial balance in
acceptance within one month from the date of
trans-
mission and he may make reservations.

The handing-over report shall also contain the result of the
trial balance and any reservations made.

Each institution shall inform the budgetary authority
its

termination of duties of

the appointment or

3.
of
accounting officer.’

9.

In Article 60, the second paragraph is replaced by the
following:

‘To that end, the accounting officer of each institution shall
communicate to all financial
institutions with which the
institution concerned has opened accounts the names and
specimen signatures of the authorised members of staff.’

10. Article 64 is amended as follows:

‘1.
The accounting officer may make payments by
bank credit transfer only if the payee's bank account
details and information confirming the payee's identity,
or any modification, have first been entered in a
common file by the institution.

Any such entry in the file of the payee's legal and bank
account details or modification of those details shall be
based on a supporting document, the form of which
shall be defined by the Commission's accounting
officer.’

(c)

In paragraph 2, the second subparagraph is replaced by
the following:

‘Authorising officers shall inform the accounting officer
of any change in the legal and bank account details
communicated to them by the payee and shall check
that these details are valid before a payment is made.’

11. In Article 66, paragraph 2 is replaced by the following:

‘2.
The imprest administrator may provisionally validate
and pay expenditure, on the basis of a detailed framework
in the instructions from the authorising officer
set out
responsible. Those instructions shall specify the rules and
conditions under which the provisional validation and
payments shall be carried out and, where appropriate, the
terms for signing legal commitments within the meaning of
Article 94(1)(e).’

12. In Article 67(2), the second subparagraph is replaced by the

following:

‘The maximum amount which may be paid by the imprest
administrator where it is materially impossible or inefficient
to carry out payment operations by budgetary procedures
shall not exceed EUR 60 000 for each item of expenditure.’

(a) The title is replaced by the following:

13. In Article 68, the first and second sentences are replaced by

the following:

‘Article 64

Legal Entities File

( A r t i c l e 6 1 o f

t h e F i n a n c i a l R e g u l a t i o n ) ’

‘Imprest administrators shall be chosen from officials or,
should the need arise and only in duly substantiated
cases, from other members of staff.’

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14. Article 70 is amended as follows:

(e)

(a)

In paragraph 1, the second sentence is replaced by the
following:

to protect

the accounting officer may effect recovery by offsetting
before the deadline referred to in point (b), where it is
necessary
financial
interests when he has justified reasons for believing
that the amount due to the Commission would be
lost, after
the
reasons and date of the recovery by offsetting.’

the debtor has been informed of

the Communities’

transactions shall be established at

‘Statements of that account shall be accessible at all
times to the authorising officer responsible and a list
of
least once a
month and be sent
the following month together
with supporting documents by the imprest adminis-
trator
for
authorising officer
settlement of the imprest operations.’

responsible

to the

17. In Article 81(1), point (f) is replaced by the following:

‘(f)

the deadline referred to in Article 78(3)(b).’

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

18. Article 83 is replaced by the following:

following:

‘The accounting officer shall carry out, or have carried
out by a staff member in his own department or in the
authorising department specially empowered for that
purpose, checks, which must as a general rule be
effected on the spot and without warning, to verify
the existence of
the funds allocated to the imprest
administrators and the bookkeeping and to check that
imprest transactions are settled within the time-limit
set.’

15. In Article 73(1), the second sentence is replaced by the

following:

‘If that instruction is confirmed in writing and that confir-
mation is received in good time and is sufficiently clear, in
that it refers explicitly to the points which the authorising
officer by delegation or subdelegation has challenged, the
authorising officer may not be held liable; he shall carry out
the instruction, unless it is manifestly illegal or constitutes a
breach of the relevant safety standards.’

16. In Article 78(3), points (b)

to (e) are replaced by the

following:

‘(b)

(c)

if payment of the debt is made before the deadline
specified, no default interest will be due;

failing payment by the deadline referred to in point (b)
the debt shall bear interest at the rate referred to in
Article 86, without any prejudice to any specific regu-
lations applicable;

‘Article 83

Recovery by offsetting

( A r t i c l e 7 3 o f

t h e F i n a n c i a l R e g u l a t i o n )

1. Where the debtor has a claim on the Communities
that is certain, of a fixed amount and due, relating to a sum
established by a payment order, the accounting officer shall,
once the deadline referred to in Article 78(3)(b) has passed,
recover established amounts receivable by offsetting.

is necessary to
In exceptional circumstances, where it
the Communities,
safeguard the financial
when the accounting officer has
for
believing that the amount due to the Communities would
be lost, the accounting officer shall recover by offsetting
before the deadline referred to in Article 78(3)(b).

justified reasons

interests of

2.
Before proceeding with any recovery in accordance
with paragraph 1, the accounting officer shall consult the
responsible and inform the debtors
authorising officer
concerned.

Where the debtor is a national authority or one of its
administrative entities,
the accounting officer shall also
inform the Member State concerned at least 10 working
days in advance of his intention to resort to recovery by
offsetting. However, in agreement with the Member State
or administrative entity concerned, the accounting officer
may proceed with the recovery by offsetting before that
deadline has passed.

(d)

failing payment by the deadline referred to in point (b)
the institution shall effect recovery either by offsetting
or by enforcement of any guarantee lodged in advance;

3.
The offsetting referred to in paragraph 1 shall have
the same effect as a payment and discharge the Commu-
nities for the amount of the debt and, where appropriate,
of the interest due.’

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19.8.2006

19. In Article 84, paragraph 1 is replaced by the following:

‘1. Without prejudice to Article 83, if the full amount
has not been recovered by the deadline referred to in
Article 78(3)(b) and specified in the debit note,
the
accounting officer
inform the authorising officer
responsible and shall without delay launch the procedure
for effecting recovery by any means offered by the law,
including, where appropriate, by enforcement of any
guarantee lodged in advance.’

shall

20. In Article 85, point (a) of the first paragraph is replaced by

the following:

‘(a)

the rate
the debtor undertakes to pay interest at
specified in Article 86 for the entire additional period
allowed, starting from the deadline referred to in
Article 78(3)(b).’

21. The following Article 85a is inserted:

‘Article 85a

Recovery of
other penalties

fines, periodic penalty payments and

( A r t i c l e s 7 3 a n d 7 4 o f
l a t i o n )

t h e

F i n a n c i a l R e g u -

1. Where an action is brought before a Community
court against a Commission decision imposing a fine,
periodic penalty payment or other penalty under the EC
Treaty or Euratom Treaty and until such time as all legal
remedies have been exhausted, the accounting officer shall
provisionally collect
the amounts concerned from the
debtor or request him to provide a financial guarantee.
The guarantee requested shall be independent of the obli-
gation to pay the fine, periodic penalty payment or other
penalty and shall be enforceable upon first call.
It shall
cover the claim as to principal and the interest due as
specified in Article 86(5).

After all

legal remedies have been exhausted,

2.
the
provisionally collected amounts and the interest they have
yielded shall be entered into the budget or repaid to the
debtor. In the event of a financial guarantee, the latter shall
be enforced or released.’

22. Article 86 is amended as follows:

receivable not

lations, any amount
deadline referred to in Article 78(3)(b)
interest
this Article.

repaid on the
shall bear
in accordance with paragraphs 2 and 3 of

The interest

rate for amounts

2.
receivable not
repaid on the deadline referred to in Article 78(3)(b)
shall be the rate applied by the European Central Bank
to its principal refinancing operations, as published in
the C series of the Official Journal of the European Union,
in force on the first calendar day of the month in
which the deadline falls, increased by:

(a) seven percentage points where the obligating event
is a public supply and service contract referred to in
Title V;

(b) three and a half percentage points in all other cases.

3.
Interest shall be calculated from the calendar day
following the deadline referred to in Article 78(3)(b)
and specified in the debit note up to the calendar day
on which the debt is repaid in full.’

(b) Paragraph 5 is replaced by the following:

‘5.
In the case of fines, where the debtor provides a
financial guarantee which is accepted by the accounting
officer in lieu of a provisional payment, the interest rate
applicable from the deadline referred to in Article
78(3)(b) shall be the rate referred to in paragraph 2
of
this Article increased by only one and a half
percentage points.’

23. Article 90 is replaced by the following:

‘Article 90

Financing decision

( A r t i c l e 7 5 o f

t h e F i n a n c i a l R e g u l a t i o n )

The financing decision shall set out

1.
the essential
elements of an action involving expenditure from the
budget.

(a) Paragraphs 1, 2 and 3 are replaced by the following:

‘1. Without prejudice to any specific provisions
deriving from the application of sector-specific regu-

For grants, the decision adopting the annual work
2.
the Financial
programme referred to in Article 110 of
financing
the
Regulation shall be
decision within the meaning of Article 75 of
the
Financial Regulation, provided that it constitutes a suffi-
ciently detailed framework.

considered to be

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As regards procurement, where the implementation of the
corresponding appropriations is provided for by an annual
work programme
sufficiently detailed
framework, this work programme shall also be considered
to be the financing decision for the procurement contracts
involved.

constituting

a

In order

3.
framework,
Commission shall set out the following:

to be considered a sufficiently detailed
the

the work programme

adopted

by

‘(d) where the global commitment is implemented by a
for which different

legal commitments,

number of
authorising officers are responsible;

(e) where, in connection with imprest accounts available
for external action, legal commitments must be signed
by members of staff of the local units referred to in
the authorising
Article 254 on the instructions of
fully
officer
responsible for the underlying transaction.’

responsible, who remains, however,

(a) For grants:

(i) the reference to the basic act and the budgetary

line;

25. Article 100 is amended as follows:

(a) Points (b) and (c) are replaced by the following:

(ii) the priorities of

the objectives to be
fulfilled and the foreseen results with the appro-
priations authorised for the financial year;

the year,

(iii) the essential selection and award criteria to be used

to select the proposals;

(iv) the maximum possible rate of co-financing and if
rates are envisaged the criteria to be

different
followed for each rate;

‘(b)

in respect of other remunerations such as staff paid
on an hourly or daily basis: a statement signed by
the authorised member of staff showing the days
and hours worked;

(c)

in respect of overtime: a statement signed by the
authorised member of staff certifying the amount
of overtime worked;’

(v) the timetable and the indicative amount of the calls

(b) In point (d), point (ii) is replaced by the following:

for proposals.

(b) For procurement:

(i) the global budgetary envelope reserved for the

procurements during the year;

(ii) the

indicative number and type of

contracts
envisaged and if possible their subject in generic
terms;

‘(ii)

the statement of mission expenses, signed by the
member of staff on mission and by the adminis-
trative superior to whom the appropriate powers
have been delegated, and showing,
in particular,
the dates and times of
the place of mission,
departure and arrival at
the place of mission,
travel expenses, subsistence expenses, and other
expenses
authorised on production of
duly
supporting documents.’

(iii) the

indicative

time

frame

for

launching the

procurement procedures.

26. Article 101 is replaced by the following:

the annual work programme does not provide this
If
detailed framework for one or more actions,
it must be
modified accordingly or a specific financing decision must
be adopted containing the information referred to in points
(a) and (b) of
the actions
concerned.

the first subparagraph for

4. Without prejudice to any specific provision of a basic
act, any substantial change in a financing decision already
follow the same procedure as the initial
adopted shall
decision.’

24. In Article 94(1), points (d) and (e) are replaced by the

following:

‘Article 101

Material form of ‘passed for payment’

( A r t i c l e 7 9 o f

t h e F i n a n c i a l R e g u l a t i o n )

or

officer

responsible

‘passed for payment’ shall
In a non-computerised system,
take the form of a stamp incorporating the signature of the
authorising
technically
competent member of staff, empowered by the authorising
In a
officer responsible in accordance with Article 97.
‘passed for payment’ shall take the
computerised system,
an electronically secured validation by the
form of
authorising officer
technically
responsible or
competent member of staff, empowered by the authorising
officer responsible.’

by

of

a

a

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27. In Article 106, paragraph 3 is replaced by the following:

30. In Article 118(3), the second sentence of the first subpar-

agraph is replaced by the following:

‘3.
For contracts and grant agreements under which
payment depends on the approval of a report or a certi-
ficate,
the payment
periods referred to in paragraphs 1 and 2 shall not begin
to run until the report or certificate in question has been
approved. The beneficiary shall be informed without delay.

for the purposes of

the time-limit

The time allowed for approval may not exceed:

(a) 20 calendar days for straightforward contracts relating

to the supply of goods and services;

‘Without prejudice to contracts concluded after a negotiated
procedure as referred to in Article 126, the contract notice
shall be compulsory for the following contracts: contracts
with an estimated value equal to or above the thresholds
laid down in points (a) and (c) of Article 158(1); research
and development contracts listed in category 8 of Annex II
A to Directive 2004/18/EC with an estimated value of
equal to or above the threshold laid down in point (b) of
Article 158(1) of this Regulation for research and devel-
opment contracts listed.’

31. In Article 119(1), point (b) is replaced by the following:

(b) 45 calendar days

for other

contracts

and grant

agreements;

‘(b)

(c) 60 calendar days for contracts and grant agreements
involving technical services or actions which are parti-
cularly complex to evaluate.

The authorising officer responsible shall inform the bene-
ficiary by means of a formal document of any suspension
of the period allowed for approval of the report or certi-
ficate.

The authorising officer responsible may decide that a single
time-limit for the approval of the report or the certificate
and payment shall apply. This single time-limit cannot
exceed the aggregated maximum applicable periods for
approval of the report or certificate and for payment.’

28. In Article 114, the fourth paragraph is replaced by the

following:

‘On the basis of the report and the hearing, the institution
shall adopt either a reasoned decision terminating the
proceedings or a reasoned decision in accordance with
Articles 22 and 86 of, and Annex IX to, the Staff Regu-
lations. Decisions
imposing disciplinary measures or
financial penalties shall be notified to the interested party
and communicated, for information purposes, to the other
institutions and the Court of Auditors.’

the annual publication of
contractors,
specifying the subject and the value of the contract
to or
awarded,
greater than EUR 25 000.’

for contracts with a value equal

a list of

32. In Article 126(1), the second subparagraph is replaced by

the following:

‘Contracting authorities may also use
the negotiated
procedure without prior publication of a contract notice
in the case of contracts with a value less than or equal
to EUR 60 000.’

33. In Article 127(1), the following points (f) and (g) are added:

‘(f)

(g)

for research and development services other than those
where the benefits accrue exclusively to the contracting
authority for its use in the conduct of its own affairs,
on condition that
the service provided is wholly
remunerated by the contracting authority;

for service contracts for the acquisition, development,
production or co-production of programme material
intended
and
by
contracts for broadcasting time.’

broadcasting

broadcasters

for

29. In Article 116, paragraph 1 is replaced by the following:

34. In Article 128, paragraph 1 is replaced by the following:

Building contracts cover the purchase,

‘1.
long lease,
usufruct, leasing, rental or hire purchase, with or without
option to buy, of land, existing buildings or other real
estate.’

‘1.
A call for expressions of interest shall constitute a
means of pre-selecting candidates who will be invited to
submit tenders in response to future restricted invitations
to tender for contracts with a value of more than EUR
60 000, subject to Articles 126 and 127.’

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35. Article 129 is replaced by the following:

evidence referred to in paragraph 3, confirming the
declaration referred to in paragraph 1 in the following
cases:

‘Article 129

Lowvalue contracts

( A r t i c l e 9 1 o f

t h e F i n a n c i a l R e g u l a t i o n )

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.

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

the

2.
For contracts with a value less than or equal to EUR
25 000, the procedure referred to in paragraph 1 with
consultation of at least three candidates may be used.

Contracts with a value less than or equal to EUR

3.
3 500 may be awarded on the basis of a single tender.

4.
Payments in respect of 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.’

36. Article 134 is replaced by the following:

‘Article 134

Evidence

( A r t i c l e s 9 3 a n d 9 4 o f
l a t i o n )

t h e

F i n a n c i a l R e g u -

1.
Candidates and tenderers shall provide a declaration
on their honour, duly signed and dated, stating that they
are not in one of the situations referred to in Article 93 or
94 of the Financial Regulation.

However, in the case of restricted procedures, competitive
dialogue and negotiated procedures after publication of a
contract notice, whenever the contracting authority limits
the number of candidates to be invited to negotiate or
submit a tender, all the candidates shall provide the certi-
ficates referred to in paragraph 3.

2.
The tenderer to whom the contract is to be awarded
shall provide, within a time-limit defined by the contracting
authority and preceding the signature of the contract, the

(a)

for contracts awarded by the institutions on their own
account, with a value equal
to or greater than the
thresholds referred to in Article 158;

(b) for contracts in the field of external actions with a
than the thresholds laid
value equal
down in Article 241(1)(a), Article 243(1)(a), or Article
245(1)(a).

to or greater

For contracts with a value less than the thresholds referred
to in points (a) and (b), the contracting authority may,
where it has doubts as to whether the tenderer to whom
the contract is to be awarded is in one of the situations of
exclusion, require him to provide the evidence referred to
in paragraph 3.

The contracting authority shall accept as satisfactory
3.
evidence that
the candidate or tenderer to whom the
contract is to be awarded is not in one of the situations
described in point (a), (b) or (e) of Article 93(1) of the
Financial Regulation, a recent extract
from the judicial
record or,
failing that, an equivalent document recently
issued by a judicial or administrative authority in the
those
country of origin or provenance showing that
requirements are satisfied. The contracting authority shall
accept, as
the candidate or
tenderer is not in the situation described in point (d) of
Article 93(1) of the Financial Regulation, a recent certificate
issued by the competent authority of the State concerned.

satisfactory evidence that

Where the document or certificate referred to in the first
subparagraph is not issued in the country concerned and
for the other cases of exclusion referred to in Article 93 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 authority, a
notary or a qualified professional body in his country of
origin or provenance.

is established,

Depending on the national legislation of the country
4.
in which the candidate or tenderer
the
documents referred to in paragraphs 1 and 3 shall relate
to legal persons and/or natural persons including, where
considered
authority,
company directors or any person with powers of represen-
tation, decision-making or control
in relation to the
candidate or tenderer.

contracting

necessary

the

by

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5. Where they have doubts as to whether candidates or
the situations of exclusion,
tenderers are in one of
contracting authorities may themselves
apply to the
competent authorities
referred to in paragraph 3 to
obtain any information they consider necessary about
that situation.

tenderer

to submit

6.
The contracting authority may waive the obligation of
the documentary
a candidate or
evidence referred to in paragraph 3 if such evidence has
already been submitted to it for the purposes of another
procurement procedure and provided that the documents
are not more than one year old starting from their issuing
date and that they are still valid.

In such a case, the candidate or tenderer shall declare on
his honour that the documentary evidence has already been
provided in a previous procurement procedure and confirm
that no changes in his situation have occurred.’

37. Article 135 is amended as follows:

(a) Paragraph 2 is replaced by the following:

‘2.
The selection criteria shall be applied in every
procurement procedure for the purpose of assessing
technical and professional
the financial, economic,
capacity of the candidate or the tenderer.

financing shall be made unless a financial guarantee
of an equivalent amount is provided.’

38. In Article 138(1), the introductory words are replaced by

the following:

‘Without prejudice to Article 94 of the Financial Regu-
lation, contracts shall be awarded in one of the following
two ways:’.

39. In Article 145(2), the first subparagraph is replaced by the

following:

‘Where the value of a contract exceeds the threshold laid
down in Article 129(1), the authorising officer responsible
shall appoint a committee to open the tenders.’

40. In Article 146(1), the second subparagraph is replaced by

the following:

‘That committee shall be appointed by the authorising
an advisory opinion on
officer
contracts with a value above the threshold referred to in
Article 129(1).’

responsible

to give

41. Article 152 is replaced by the following:

The contracting authority may lay down minimum
capacity levels below which candidates may not be
selected.’

‘Article 152

Guarantee for pre-financing

(b) Paragraph 6 is replaced by the following:

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

( A r t i c l e 1 0 2 o f

t h e F i n a n c i a l R e g u l a t i o n )

A guarantee shall be required in return for the payment of
pre-financing exceeding EUR 150 000 or
in the case
referred to in Article 135(6), second subparagraph.

the
However, where the contractor
authorising officer responsible may, depending on his risk
assessment, waive that obligation.

is a public body,

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

The guarantee shall be released as and when the pre-
financing is deducted from interim payments or payments
of balances to the contractor in accordance with the terms
of the contract.’

(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).

42. In Article 155, the title is replaced by the following:

‘Article 155

Where the contracting authority decides not to require
proof of the financial, economic, technical and profes-
sional capacity of candidates or tenderers, no pre-

Separate contracts and contracts with lots

( A r t i c l e s 9 1 a n d 1 0 5 o f
l a t i o n ) ’

t h e F i n a n c i a l R e g u -

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43. In Article 157, point (b) is replaced by the following:

(a)

In paragraph 2, the first sentence is replaced by the
following:

‘(b) EUR 5 278 000 for works contracts.’

44. Article 158(1) is replaced by the following:

‘The authorising officer responsible may accept co-
financing in kind,
if considered necessary or appro-
priate.’

The thresholds referred to in Article 105 of

‘1.
Financial Regulation shall be:

the

(b) The following paragraph 3 is added:

(a) EUR 137 000 for the supply and service contracts listed
in Annex IIA to Directive 2004/18/EC, with the
exception of the research and development contracts
listed in category 8 of that Annex;

(b) EUR 211 000 for the service contracts listed in Annex
IIB to Directive 2004/18/EC and for the research and
development service contracts listed in category 8 of
Annex IIA to Directive 2004/18/EC;

(c) EUR 5 278 000 for works contracts.’

45. In Article 162, point (a) is replaced by the following:

‘(a) a European body involved in education, training, infor-
mation, innovation or research and study on European
policies, any activities contributing to the promotion
a European
of
standards body.’

citizenship or human rights, or

46. In Article 164, the following paragraph 1a is inserted:

‘3.
For grants with a total value of less than or equal
to EUR 25 000, the authorising officer responsible may,
depending on his risk assessment, waive the obligation
to provide the evidence for co-financing referred to in
paragraph 1.

Where a single beneficiary is awarded several grants in
a financial year, the threshold of EUR 25 000 shall
apply to the total of those grants.’

50. Article 173 is amended as follows:

(a) Paragraph 2 is replaced by the following:

‘2.
The application shall show the legal status of the
applicant and his financial and operational capacity to
carry out the proposed action or work programme,
subject to Article 176(4).

The

grant

‘1a.
the
agreement may
arrangements and time-limits for suspension in accordance
with Article 183.’

down

lay

47. In Article 165, the following paragraph 3 is added:

general

an aim of

European interest,

‘3.
In the case of operating grants to bodies which
pursue
the
Commission shall be entitled to recover the percentage of
the annual profit corresponding to the Community contri-
bution to the operating budget of the bodies concerned
where these bodies are also funded by public authorities
which are themselves required to recover the percentage of
the annual profit corresponding to their contribution. For
the purpose of calculating the amount to be recovered, the
percentage corresponding to the contributions in kind to
the operating budget shall not be taken into account.’

48. In Article 168(1), point (c) is replaced by the following:

‘(c)

to bodies with a de jure or de facto monopoly, duly
substantiated in the award decision;’.

49. Article 172 is amended as follows:

the

shall

submit

applicant

exceeding

that purpose,

a
For
declaration on his honour and, for applications for a
supporting
grant
EUR 25 000,
documents
risk
assessment, by the authorising officer responsible. The
request for such documents shall be indicated in the
call for proposals.

requested, on the basis of his

any

The supporting documents may consist in particular in
the profit and loss account and the balance sheet for
the last
financial year for which the accounts were
closed.’

(b) Paragraph 4 is amended as follows:

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

amount

‘Where the application concerns grants for an
exceeds EUR
action for which the
500 000 or operating grants which exceed EUR
an
100 000,
approved external auditor
submitted.
That report shall certify the accounts for the last
financial year available.’

report produced by
shall be

an audit

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(ii) The fourth and fifth subparagraphs are replaced by

the following:

The payment in full of the new pre-financing payment
shall be subject to the consumption of at least 70 % of
the total amount of any earlier pre-financing.

‘In the case of partnerships as referred to in Article
163, the audit report referred to in the first subpar-
two financial years
agraph,
last
available, must
the
before
produced
framework agreement is concluded.

covering the
be

The authorising officer responsible may, depending
on his risk assessment, waive the obligation of
audit
referred to in the first subparagraph for
secondary and higher education establishments
and beneficiaries who have accepted joint and
several liabilities in the case of agreements with a
number of beneficiaries.’

Where the consumption of the previous pre-financing
is less than 70 %, the amount of the new pre-financing
payment shall be reduced by the unused amounts of
the previous pre-financing payment.

The statement of
the beneficiary's outlay shall be
produced in support of any request for a new payment.’

(iii) The following subparagraph is added:

(b) Paragraph 2 is amended as follows:

‘The first subparagraph shall not apply to public
bodies and the international organisations referred
to in Article 43(2).’

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

51. Article 176 is amended as follows:

(a) Paragraph 3 is replaced by the following:

Financial

and operational

‘3.
shall be
verified in particular on the basis of an analysis of
referred to in
any of
Article 173 and requested by the authorising officer
responsible in the call for proposals.’

the supporting documents

capacity

(b) In paragraph 4, the first subparagraph is replaced by

the following:

‘The verification of
financial capacity in accordance
with paragraph 3 shall not apply to natural persons
in receipt of scholarships, to public bodies or to the
international organisations referred to in Article 43(2).’

52. Article 179 is replaced by the following:

‘Article 179

Information for applicants

( A r t i c l e 1 1 6 o f

t h e F i n a n c i a l R e g u l a t i o n )

Applicants shall be informed as soon as possible and in any
case within 15 calendar days after the award decision has
been sent to the beneficiaries.’

53. Article 180 is amended as follows:

(a) Paragraph 1 is replaced by the following

For each grant, pre-financing may be split into

‘1.
several instalments.

‘A certificate on the financial
statements and
underlying accounts, produced by an approved
in the case of public bodies, by a
auditor, or,
competent and independent public officer, may
be demanded by the authorising officer responsible
in support of any payment on the basis of his risk
assessment. In the case of a grant for an action or
the certificate shall be
of an operating grant,
attached to the request for payment. The certificate
shall certify,
in accordance with a methodology
approved by the authorising officer responsible,
that the costs declared by the beneficiary in the
for
statements on which the request
financial
is based are real, accurately recorded
payment
and
grant
in accordance with the
agreement.’

eligible

(ii) In the

the
words are replaced by the following:

second subparagraph,

introductory

‘Except in the case of
lump sums and flat rate
financing, the certificate on the financial statements
and underlying accounts shall be compulsory for
interim payments per
and for
payments of balances in the following cases.’

financial year

(iii) In the third subparagraph, the introductory words

are replaced by the following:

‘Depending on his risk assessment, the authorising
officer responsible may also waive the obligation to
provide such certificate on the financial statements
and underlying accounts in the case of.’

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54. Article 182 is amended as follows:

(a) Paragraph 1 is replaced by the following:

‘The rate to be used for conversion between the euro
and another currency to draw up the balance sheet at
31 December of year N shall be that of
the last
working day of year N.’

responsible may, on the basis of his

‘1.
In order to limit the financial risks connected
the authorising
with the payment of pre-financing,
officer
risk
assessment either require the beneficiary to lodge a
guarantee in advance, for up to the same amount as
the pre-financing, or split the payments into several
instalments.

However, for grants with a value of less than or equal
to EUR 10 000, the authorising officer responsible may
require the beneficiary to lodge a guarantee in advance
only in duly substantiated cases.

Such a guarantee may also be
required by the
authorising officer responsible, depending on his risks
assessment, in the light of the method of funding laid
down in the grant agreement.

Whenever a guarantee is required, it is subject to the
assessment and acceptance of the authorising officer
responsible.’

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

the following:

‘Where the pre-financing represents over 80 % of the
total amount of the grant and provided it exceeds EUR
60 000, a guarantee shall be required.’

55. Articles 195, 196, 197, 198, 200 and 202 are deleted.

56. Article 211 is replaced by the following:

‘Article 211

Accounting reconciliations

( A r t i c l e 1 3 5 o f

t h e F i n a n c i a l R e g u l a t i o n )

The data in the general

1.
ledger shall be kept and
organised in such a way as to justify the content of each
of the accounts included in the trial balance.

As

2.
provisions of Articles 220 to 227 shall apply.’

inventory of

regards

the

fixed assets,

the

57. Article 212 is deleted.

58. Article 213 is amended as follows:

(a)

In paragraph 2, the fourth subparagraph is replaced by
the following:

(b) The following paragraph 3 is added:

‘3.
The accounting rules adopted under Article 133
of the Financial Regulation shall specify the conversion
and re-evaluation rules to be provided for the purposes
of accrual accounting.’

59. Article 222 is replaced by the following:

‘Article 222

Entry of items in the inventory

( A r t i c l e 1 3 8 o f

t h e F i n a n c i a l R e g u l a t i o n )

All items acquired with a period of use greater than one
year, which are not consumables, and whose purchase price
or production cost is higher than that indicated in the
the
accounting rules
Financial Regulation shall be entered in the inventory and
recorded in the fixed assets accounts.’

adopted under Article 133 of

60. In Article 240, paragraph 1 is replaced by the following:

‘1.
The pre-information notice for international calls for
tender shall be sent to the office for Official Publications of
the European Communities as early as possible for supply
and service contracts and as quickly as possible after the
decision authorising the programme for works contracts.’

61. Article 241 is amended as follows:

(a) Paragraph 1 is amended as follows:

(i) In the first subparagraph, point (a) is replaced by

the following:

‘(a)

for contracts with a value of EUR 200 000 or
more: an international restricted invitation to
tender within the meaning of Article 122(2)
and point (a) of Article 240(2).’

(ii) The

second subparagraph is

replaced by the

following:

‘Contracts with a value less than or equal to EUR
5 000 may be awarded on the basis of a single
tender.’

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(b) In paragraph 2, the following subparagraph is added:

‘If the number of candidates satisfying the selection
criteria or the minimum capacity levels is less than
the minimum number, the contracting authority may
invite to submit a tender only those candidates who
satisfy the criteria to submit a tender.’

‘Where the Commission is not
the contracting
authority, the use of the negotiated procedure is
subject to the prior agreement of the responsible
authorising officer.’

(b) Paragraph 2 is amended as follows:

(c) Paragraph 3 is replaced by the following:

(i) Point (b) of the first subparagraph is replaced by the

following:

‘3.
Under the procedure referred to in point (b) of
paragraph 1, the contracting authority shall draw up a
its choice. The
list of at
three tenderers of
procedure
tendering,
without publication of a notice and shall be known
as a competitive negotiated procedure not covered by
Article 124.

limited competitive

least
involves

Tenders shall be opened and evaluated by an evaluation
committee with the necessary technical and adminis-
evaluation
trative
committee must sign a declaration of impartiality.

expertise. The members of

the

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.’

tenderers,

the

62. Article 242 is amended as follows:

(a) Paragraph 1 is amended as follows:

(i) The first subparagraph is amended as follows:

— The introductory words are replaced by the

following:

‘For service contracts, contracting authorities
may use
the negotiated procedure with a
single tender in the following cases:’

— The following point (g) is added:

‘(g) where one attempt

use

failed.

the use of

for
negotiated
unsuccessful

the
procedure
competitive
of
a
following
the
In this
framework contract has
case, after cancelling the competitive nego-
tiated procedure, the contracting authority
may negotiate with one or more tenderers
of its choice, from among those that took
part in the invitation to tender, provided
that the original terms of the contract are
not substantially altered.’

(ii) The following subparagraph is added:

‘(b) additional services consisting in the repetition
of similar services entrusted to the contractor
providing services under
contract,
provided that:

first

a

(i) a contract notice was published for the first
service and the possibility of using the
negotiated procedure for new services for
the project and the estimated cost were
clearly indicated in the contract notice
published for the first service;

(ii) the extension of the contract is a single one
and for a value and duration not exceeding
the value and the duration of the initial
contract.’

(ii) The second subparagraph is deleted.

63. Article 243 is amended as follows:

(a) Paragraph 1 is amended as follows:

(i) In the first subparagraph, points (a) and (b) are

replaced by the following:

‘(a)

(b)

for contracts with a value of EUR 150 000 or
more:
an international open invitation to
tender within the meaning of Article 122(2)
and point (a) of Article 240(2);

for contracts with a value of EUR 30 000 or
more but less than EUR 150 000: a local open
invitation to tender within the meaning of
Article 122(2) and point (b) of Article 240(2).’

(ii) The

second subparagraph is

replaced by the

following:

‘Contracts with a value less than or equal to EUR
5 000 may be awarded on the basis of a single
tender.’

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(b) Paragraph 2 is replaced by the following:

(i) In the first subparagraph, points (a) and (b) are

replaced by the following:

‘2.
Under the procedure referred to in point (c) of
paragraph 1, the contracting authority shall draw up a
its choice. The
list of at
three suppliers of
procedure
tendering,
without publication of a notice and shall be known
as a competitive negotiated procedure not covered by
Article 124.

limited competitive

least
involves

Tenders shall be opened and evaluated by an evaluation
committee with the necessary technical and adminis-
trative
evaluation
committee must sign a declaration of impartiality.

expertise. The members of

the

following

consultation of

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

suppliers,

the

64. Article 244(1) is amended as follows:

(a) The introductory words are replaced by the following:

‘Supply contracts may be awarded by negotiated
procedure with a single tender in the following cases:’

(b) The following point (e) is added:

‘(e) where after two attempts the competitive nego-
tiated tender procedure has been unsuccessful,
that is to say, where no administratively and tech-
nically valid tender or no qualitatively and/or finan-
cially worthwhile tender has been received. In such
cases, after cancelling the competitive negotiated
authority may
procedure,
contracting
its
negotiate with one or more tenderers of
choice, from among those that took part in the
invitation to tender, provided that
the original
terms of the contract are not substantially altered.’

the

(c) The following subparagraph is added:

‘Where
authority,
subject
authorising officer.’

the use of

the Commission is not

contracting
the
the negotiated procedure is
the responsible

to the prior agreement of

‘(a)

for contracts with a value of EUR 5 000 000
or more:

(i) in principle an international open invitation
to tender within the meaning of Article
122(2) and point (a) of Article 240(2);

(ii) exceptionally, in view of the characteristics
of certain works and after the agreement of
the
the authorising officer responsible if
Commission
contracting
not
authority, an international restricted invi-
tation to tender within the meaning of
Article 122(2) and point
(a) of Article
240(2).

the

is

(b)

for contracts with a value of EUR 300 000 or
more but less than EUR 5 000 000: a local
open invitation to tender within the meaning
(b) of Article
of Article 122(2) and point
240(2);’

(ii) The

second subparagraph is

replaced by the

following:

‘Contracts with a value less than or equal to EUR
5 000 may be awarded on the basis of a single
tender.’

(b) Paragraph 2 is replaced by the following:

‘2.
Under the procedure referred to in point (c) of
paragraph 1, the contracting authority shall draw up a
its choice. The
list of at
three contractors of
procedure
tendering,
without publication of a notice and shall be known
as a competitive negotiated procedure not covered by
Article 124.

limited competitive

least
involves

Tenders shall be opened and evaluated by an evaluation
committee with the necessary technical and adminis-
trative
evaluation
committee must sign a declaration of impartiality.

expertise. The members of

the

65. Article 245 is amended as follows:

(a) Paragraph 1 is amended as follows:

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.’

contractors,

the

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66. Article 246(1) is amended as follows:

However, a performance guarantee shall be required where
the following thresholds are exceeded:

(a) The first subparagraph is amended as follows:

(i) EUR 345 000 for works contracts;

(i) the

introductory words

are

replaced by

the

following:

(ii) EUR 150 000 for supply contracts.

‘Works contracts may be awarded by negotiated
procedure with a single tender in the following
cases:’

(ii) the following point (d) is added:

‘(d) where

the

negotiated

competitive

tender
procedure, after two attempts, has been unsuc-
cessful, that is to say, where no administra-
tively and technically valid tender or no quali-
tatively and/or financially worthwhile tender
has been received.
after
negotiated
cancelling
procedure,
authority may
contracting
negotiate with one or more tenderers of its
choice, from among those that took part in
the invitation to tender, provided that
the
original terms of the contract are not substan-
tially altered.’

In such cases,

competitive

the
the

(b) The following subparagraph is added:

‘Where
authority,
subject
authorising officer.’

the use of

the Commission is not

contracting
the
the negotiated procedure is
the responsible

to the prior agreement of

67. In Article 250, paragraphs 3 and 4 are replaced by the

following:

‘3. Where the pre-financing exceeds EUR 150 000, a
guarantee shall be required. However, where the contractor
is a public body, the responsible authorising officer may,
depending on his risks assessment, waive that obligation.

The guarantee shall be released as and when the pre-
financing is deducted from interim payments or payments
of balances made to the contractor in accordance with the
terms of the contract.

remain valid at

The guarantee shall
final
acceptance of the supplies and works. If the contract is
not properly performed the entire guarantee shall be
retained.’

least until

68. In Article 252(3) the following subparagraph is added:

‘However,
the evaluation committee or the contracting
authority may ask candidates or tenderers to supply addi-
tional material or to clarify the supporting documents
submitted in connection with the exclusion and selection
criteria, within the time-limit
they specify and having
respect to the principle of equal treatment.’

69. In Article 257, in the first paragraph, point (c) is replaced

by the following:

‘(c) The European Communities Personnel Selection Office
and the European Administrative School administra-
tively attached to it.’

70. In Article 260, the second paragraph is deleted.

71. In Article 262, the following paragraphs are added:

‘Budgetary commitments corresponding to administrative
appropriations of a type common to all titles and which
are managed globally may be recorded globally in the
budgetary accounting following the summary classification
by type as set out in Article 27.

The corresponding expenditure shall be booked to the
budget lines of each title according to the same distribution
as for appropriations.’

72. In Article 264, the following paragraph is added:

A performance guarantee may be required by the
4.
contracting authority for an amount set in the tender file
and corresponding to between 5 and 10 % of the total
value of the contract. That guarantee shall be determined
on the basis of objective criteria such as the type and value
of the contract.

‘However, where, for transactions in third countries,
it is
not possible to use any of those forms of rent guarantees,
the authorising officer responsible may accept other forms
provided that those forms ensure equivalent protection of
the Communities’ financial interests.’

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73. In Article 271, paragraphs 1 and 2 are replaced by the

following:

‘1.
The thresholds and amounts laid down in Articles
54, 67, 119, 126, 128, 129, 130, 135, 151, 152, 164,
172, 173, 180, 181, 182, 226, 241, 243, 245 and 250
shall be updated every three years in line with movements
in the consumer price index in the Community.

The thresholds referred to in point (b) of Article 157
2.
and in Article 158(1) in respect of procurement contracts
shall be adjusted every two years pursuant to Article 78(1)
of Directive 2004/18/EC.’

Article 2

Public procurement and grant award procedures
launched
before the entry into force of this Regulation shall continue
to be subject to the rules applicable at the time when those
procedures were launched.

Article 3

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

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 7 August 2006.

For the Commission
Dalia GRYBAUSKAITĖ
Member of the Commission