European Parliament legislative resolution on the proposal for a Council decision establishing the European Fund for the Integration of Third-country Nationals for the period 2007-2013 as part of the General programme "Solidarity and Management of Migration Flows" (COM(2005)0123 - C6-0238/2005 - 2005/0048(CNS))
Date: 2006-12-14
Institutions: Committee on Civil Liberties, Justice and Home Affairs, European Parliament
Subjects: EU programme, economic and social cohesion, equal treatment, foreign national, fund (EU), integration of migrants, migratory movement, residence permit, third country

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P6_TA(2006)0583

European Fund for the Integration of Third-country Nationals *

European Parliament legislative resolution on the proposal for a Council decision establishing the
European Fund for the Integration of Third-country Nationals for the period 2007-2013 as part of
(COM(2005)0123 —
the General programme ‘Solidarity and Management of Migration Flows’

C6-0238/2005 — 2005/0048(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2005)0123) (1),

— having regard to Article 63(3)(a) of the EC Treaty, pursuant to which the Council consulted Parliament

(C6-0238/2005),

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

— having regard to the report of the Committee on Civil Liberties, Justice and Home Affairs and the
the Committee on Budgets and the Committee on Employment and Social Affairs

opinions of
(A6-0419/2006);

1. Approves the Commission proposal as amended;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3. Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4. Asks the Council to consult Parliament if it intends to amend the Commission proposal substantially;

Instructs its President to forward its position as annexed to this legislative resolution to the Council and

5.
Commission.

(1) Not yet published in OJ.

ANNEX

Amended Proposal for a Council decision establishing the European Fund for the Integration of
Third-country nationals for the period 2007-2013 as part of the General programme ‘Solidarity and
Management of Migration Flows’

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 63(3)(a) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of the European Parliament (2),

(1) OJ C …
(2) OJ C …

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Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

With a view to the progressive establishment of an area of freedom, security and justice, the
Treaty establishing the European Community provides both for the adoption of measures aimed
at ensuring the free movement of persons,
in conjunction with flanking measures relating to
external borders controls, asylum and immigration, and for the adoption of measures relating to
asylum, immigration and safeguarding the rights of third country nationals.

The European Council, at its special meeting in Tampere on 15 and 16 October 1999, stated that
the European Union must ensure fair treatment of third country nationals who reside legally on
the territory of its Member States. A more vigorous integration policy should aim at granting
them rights and obligations comparable to those of EU citizens. It should also enhance non-discri-
mination in economic, social and cultural
racism and
xenophobia.

life and develop measures against

The integration of third-country nationals in the Member States is a key element in promoting
economic and social cohesion, a fundamental objective of the Community stated in the Treaty.
However, having regard to the Treaty establishing the European Community, this instrument is
primarily targeted to third-country nationals who are newly-arrived, as far as the co-financing
of concrete actions supporting the integration process.

In the Hague Programme of 4-5 November 2004, the European Council underlines that to
achieve the objective of stability and cohesion within Member States' societies it is essential to
develop effective policies. It calls for greater coordination of national integration policies on the
basis of a common framework and invites the Member States, the Council and the Commission to
promote the structural exchange of experience and information on integration.

As requested in the Hague Programme, the Council of the European Union and the representatives
of the governments of the Member States established on 19 November 2004 ‘Common Basic
Principles for immigrant integration policy in the European Union’. The Common Basic Principles
assist Member States in formulating integration policies by offering them a thoughtful guide of
basic principles against which they can judge and assess their own efforts.

The Common Basic Principles are complementary and in full synergy with the Community legis-
lative instruments on the admission and stay of legally residing third country nationals
concerning family reunion and long term residents, and other relevant existing legislative
frameworks,
including those relating to gender equality, non discrimination and social
inclusion.

Recalling the presentation of the Communication of the Commission of 1 September 2005 on a
common Agenda for Integration: framework for the integration of third country nationals in
the EU, the Council Conclusions on a common agenda for integration of 1-2 December 2005
underline the need to strengthen the integration policies of the Member States and acknowledge
the importance of defining a framework at European level for the integration of legally residing
third country nationals in all aspects of society and in particular concrete measures for imple-
menting the Common Basic Principles.

The failure of an individual Member State to develop and implement integration policies can have
in different ways adverse implications for other Member States and the European Union.

To underpin this programming in the area of integration, the budgetary Authority entered specific
appropriations in the general budget of the European Communities from 2003 to 2006 for the
financing of pilot projects and preparatory actions in the field of integration (INTI).

(10)

Deleted

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(11)

(12)

(13)

(14)

In light of INTI and referring to the Commission Communications on immigration, integration
and employment and the First annual report on Migration and Integration, it is considered neces-
sary to endow the Community from 2007 with a specific instrument designed to contribute to
the national efforts of Member States to develop and implement integration policies which enable
third-country nationals of different cultural, religious, linguistic and ethnic backgrounds to fulfil
the conditions of residence and to facilitate their integration into European societies, in accord-
ance with the Common Basic Principles and in complementarity with the ESF.

To ensure the consistency of the Community's response to integration of third country nationals,
actions financed under this instrument should be specific and complementary to actions financed
under the ESF and the European Refugee Fund. In this context, specific joint programming
arrangements to ensure the consistency of the Community's response to integration of third
country nationals through the ESF and this instrument will be developed.

Bearing in mind that this instrument and the ESF are under shared management with Member
States, arrangements should also be made at national level to ensure consistency in implementa-
tion. For that purpose, the authorities of the Member States responsible for the implementation of
this instrument should be required to establish cooperation and coordination mechanisms with
the authorities designated by the Member States for managing the implementation of the ESF and
the European Refugee Fund and to ensure that actions under this Fund should be specific and
complementary to actions financed under the ESF and the European Refugee Fund.

This instrument is designed to form part of a coherent framework consisting of this Decision,
the Decision of the European Parliament and the Council establishing the European Refugee
Fund for the period 2008-2013, the Decision of the European Parliament and the Council
establishing the External Border Fund for the period 2007-2013 and the Decision of the
European Parliament and the Council establishing the European Return Fund for the period
2008-2013, which aims at addressing the issue of a fair share of responsibilities between Member
States as concerns the financial burden arising from the introduction of an integrated management
of the Union's external borders and from the implementation of common policies on asylum and
immigration, as developed in accordance with Title IV of the Treaty establishing the European
Community.

(14a)

This instrument should be targeted primarily, as far as the co-financing of concrete actions
supporting the integration process of third country nationals in Member States is concerned, to
actions relating to third country nationals who are newly arrived Reference could be made in
this context to the Council Directive 2003/109/EC which refers to the period of five years of
legal residence as a requirement with which third-country nationals have to comply in order to
qualify for long-term residence status.

(14b)

This instrument should also support Member States in enhancing their capacity to develop,
implement, monitor and evaluate in general all integration strategies, policies and measures for
third country nationals as well as the exchange of information, best practices and co-operation
in and between Member States contributing to enhancing this capacity.

(15)

(16)

The support provided by the Fund will be more efficient and better targeted if co-financing of
eligible actions is based on strategic multiannual programming drawn up by each Member State
in dialogue with the Commission.

On the basis of the strategic guidelines adopted by the Commission, each Member State should
prepare a multiannual programming document taking into account its specific situation and needs
and setting out its development strategy that should constitute the framework for preparing the
implementation of the actions to be listed in annual programmes.

(17)

Deleted

(18)

Deleted

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(19)

In the context of shared management as referred to in Article 53(1), point (b), of Council
Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable
to the general budget of the European Communities (1), the conditions allowing the Commission
to exercise its responsibilities for
the European
Communities should be specified and the obligations for the cooperation of the Member States
clarified. Applying these conditions will enable the Commission to satisfy itself that Member
States are utilising the Fund in a lawful and correct manner and in accordance with the principle
of sound financial management within the meaning of Articles 27 and 48(2) of the Financial
Regulation.

the general budget of

implementation of

(20)

Deleted

(21)

Objective criteria should be established to allocate the funds to the Member States. These criteria
should take into account the total amount of third country nationals legally staying in Member
States and the total new admission of third country nationals over a given reference period.

(22)

Deleted

(23)

Member States should adopt adequate measures to guarantee the proper functioning of manage-
ment and control system. To this end, it is necessary to establish the general principles and the
necessary functions which the systems of all programmes shall fulfil.

(24)

Deleted

(25)

(26)

In accordance with the principles of subsidiarity and proportionality, Member States have the
primary responsibility for the implementation and control of the interventions.

The obligations on the Member States as regards management and control systems, the certifica-
tion of expenditure, and the prevention, detection and correction of irregularities and infringe-
ments of Community law should be specified to guarantee the efficient and correct implementa-
tion of their multiannual and annual programmes. In particular, as far as the management and
control are concerned, it is necessary to establish the modalities by which Member States ensure
that the systems are in place and function satisfactorily.

(27)

Without prejudice to the Commission's powers as regards financial control, cooperation between
the Member States and the Commission in this field should be encouraged.

(28)

Deleted

(29)

(30)

(31)

The effectiveness and impact of actions supported by this instrument also depend on their evalua-
tion. The responsibilities of the Member States and the Commission in this regard, and arrange-
ments to ensure the reliability of evaluation, should be formalised.

Actions should be evaluated with a view to a mid-term review and impact assessment, and the
evaluation process should be incorporated into project monitoring arrangements.

A financial reference amount, within the meaning of point 38 of the interinstitutional agreement
the Council and the Commission on
of 17 May 2006 between the European Parliament,
budgetary discipline and sound financial management (2) is included in this Decision for the
entire duration of the programme, without thereby affecting the powers of the budgetary
authority as they are defined by the Treaty.

(31A)

Bearing in mind the importance of visibility of the Community funding, the Commission
should provide guidance to facilitate that any authority, non-governmental organisation, inter-
national organisation or other entity receiving a grant by this Fund properly acknowledges the
support received, taking into account the practice for other instruments under shared manage-
ment, such as the Structural Funds.

(1) OJ L 248,16.9.2002, p. 1.
(2) OJ C 139, 14.6.2006, p. 1.

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(32)

(33)

Since the objectives of the proposed action, namely to promote the integration of third country
nationals in the host societies of Member States within the framework of the Common Basic
Principles, cannot be sufficiently achieved by the Member States and can therefore, by reason of
the scale and effects of the action, be better achieved by the Community, the Community may
adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportionality, as set out in that Article, this Decision
does not go beyond what is necessary in order to achieve those objectives.

the implementation of

The measures necessary for
this Decision should be adopted in
accordance with Council Decision 1999/468/EC of 28 June 1999, as amended by Council
Decision 2006/512/EC of 17 July 2006 (1) laying down the procedures for the exercise of imple-
menting powers conferred on the Commission. The implementing measures will be subject to a
management committee procedure, this provision being the more appropriate in certain cases in
order to increase efficiency.

(33A)

In order to ensure a timely implementation of the Fund, this Decision should apply from
1 January 2007.

(34)

(35)

(36)

In accordance with Article 1 and 2 or the Protocol on the position of Denmark, annexed to the
Treaty on European Union and to the Treaty establishing the European Community, Denmark
does not take part in the adoption of this Decision, and is not bound by it or subject to its
application.

In accordance with Article 3 of the Protocol on the position of the United Kingdom and
Ireland, annexed to the Treaty on European Union and to the Treaty establishing the European
Community, Ireland has notified, by letter of 6 September 2005, its wish to take part in the
adoption and application of this Decision.

In accordance with Article 3 of the Protocol on the position of the United Kingdom and
Ireland, annexed to the Treaty on European Union and to the Treaty establishing the European
Community, the United Kingdom has notified, by letter of 27 October 2005, its wish to take
part in the adoption and application of this Decision.

The European Economic and Social Committee has delivered an opinion (2)

The Committee of the Regions has delivered an opinion (3)

HAS ADOPTED THIS DECISION:

CHAPTER I

SUBJECT MATTER, OBJECTIVES AND ACTIONS

Article 1

Subject matter and scope

1.
This Decision establishes for the period from 1 January 2007 to 31 December 2013 the European
Fund for integration of third-country nationals, hereinafter referred to as ‘The Fund’, as part of a coherent
framework also including the Decision of the European Parliament and the Council establishing the
European Refugee Fund for the period 2008-2013, the Decision of the European Parliament and the
Council establishing the External Border Fund for the period 2007-2013 and the Decision of the
European Parliament and the Council establishing the European Return Fund for the period 2008-2013,
in order to contribute to the strengthening of the area of Freedom, Security and Justice and the applica-
tion of the principle of solidarity between the Member States.

(1) OJ L 200, 22.7.2006, p. 11.
(2) OJ C …
(3) OJ C …

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This Decision defines the objectives to which the Fund contributes, its implementation, the available finan-
cial resources and the distribution criteria for the allocation of the available financial resources.

Thursday, 14 December 2006

It establishes the Fund's management rules, including financial ones, monitoring and control mechanisms
based on a share of responsibilities between the Commission and the Member States.

2.
Third-country nationals who are on the territory of a third country and who are complying with
specific pre-departure measures and/or conditions set out in national law, including those relating to the
ability to integrate in the society of this Member State fall under the scope of this Decision.

3.
Third-country nationals who have made an application for asylum in respect of which a final deci-
sion has not yet been taken, or enjoy refugee or subsidiary protection status, or qualify as refugees or are
eligible for subsidiary protection in accordance with Council Directive 2004/83/EC of 29 April 2004, are
excluded from the scope of this Decision.

Third country national means any person who is not a Union citizen within the meaning of

4.
Article 17(1) of the Treaty.

Article 2

General Objective of the Fund

1.
The general objective of the Fund is to support the efforts of Member States in enabling third-country
nationals of different economic, social, cultural, religious, linguistic and ethnic backgrounds to fulfil the
conditions of residence and to facilitate their integration into the European societies.

The Fund shall primarily focus on actions relating to the integration of newly arrived third-country
nationals.

2.
In order to further the objective mentioned in paragraph 1 the Fund will contribute to the develop-
ment and implementation of national integration strategies for third-country nationals in all aspects of
society in particular taking into account the principle that integration is a two-way dynamic process of
mutual accommodation by all immigrants and residents of Member States.

The Fund shall contribute to the financing of the technical assistance on the initiative of the Member

3.
States or the Commission.

Article 3

Specific objectives

The Fund shall contribute to the following specific objectives:

(a)

Facilitation of the development and implementation of admission procedures relevant to and supportive
of the integration process of third country nationals;

(b) Development and implementation of the integration process of newly-arrived third country nationals

in Member States;

(c)

Increase of the capacity of Member States to develop, implement, monitor and evaluate policies and
measures for the integration of third country nationals;

(d) Exchange of information, best practices and co-operation in and between Member States in devel-
oping, implementing, monitoring and evaluating policies and measures for the integration of third
country nationals.

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Article 4

Eligible actions in the Member States

As regards the objective defined in Article 3, point (a), the Fund shall support actions in Member

1.
States which:

(a)

(b)

(c)

facilitate the development and implementation by Member States of admission procedures, inter alia
by supporting consultation processes with relevant stakeholders and expert advice or information
exchanges on approaches which target specific nationalities or categories of third country nationals;

render the implementation of admission procedures more effective and accessible to third-country
nationals inter alia by using user-friendly Communication and Information Technology, information
campaigns and selection procedures;

prepare third-country nationals for their integration into host society in a better way by supporting
pre-travel measures which enable them to acquire knowledge and skills necessary for their integra-
tion, such as vocational training, information packages, comprehensive civic orientation courses and
language tuition in the country of origin.

As regards the objective defined in Article 3, point (b), the Fund shall support actions in Member

2.
States which:

(a)

set up programmes and activities aiming at introducing newly arrived third country nationals to the
host society and enabling them to acquire basic knowledge about the host society's language,
history, institutions, socio economic features, cultural life and the fundamental norms and values, as
well as complement such existing programmes and activities;

(b) develop and improve the quality of such programmes and activities at local and regional level, with a

particular emphasis on civic orientation;

(c)

(d)

(e)

(f)

reinforce the capacity of such programmes and activities to reach out to particular groups, such as
dependants of persons subject to admission procedures, children, women, elderly, illiterate or persons
with disabilities;

increase the flexibility of such programmes and activities, in particular through part time courses, fast
track modules, distance or E-learning systems or similar models, enabling third-country nationals to
complete the programmes and activities while at the same time working or studying;

develop and implement such programmes or activities, targeting at young third-country nationals,
with specific social and cultural challenges related to identity issues;

develop such programmes or activities encouraging the admission and supporting the integration
process of highly qualified and qualified third-country nationals;

As regards the objectives defined in Article 3 points (c) and (d), the Fund shall support actions in and

3.
between Member States which:

(a)

(b)

improve the access of third-country nationals to public and private goods and services, inter alia by
intermediary services, interpretation and translation services and by improving the staff's intercul-
tural capacities;

build sustainable organisational structures for integration and diversity management, promote
durable and sustainable participation in civil and cultural life, and develop modes of co-operation
between different relevant stakeholders enabling officials at various levels to swiftly gain informa-
tion about experiences and practices else where and, where possible, to pool resources;

(c)

develop and implement intercultural training, capacity building and diversity management, training
of staff within public and private service providers, including educational institutions;

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(d)

reinforce the capacity to coordinate, implement, monitor and evaluate national integration strategies
for third-country nationals across the different levels and departments of government;

(e)

(f)

(g)

contribute to the evaluation of admission procedures or the programmes and activities referred to in
paragraph 2 by supporting representative surveys among third-country nationals having benefited
from them and/or among relevant stakeholders, such as enterprises, non-governmental organisations
and regional or local authorities;

introduce and implement schemes to gather and analyse information about the needs of different
categories of third-country nationals at local or regional level by involving platforms for consulta-
tion of third country nationals and for exchange of information between stakeholders and by
conducting surveys among immigrant communities on how best to respond to those needs;

contribute to the two-way process underlying integration policies by developing platforms for consul-
tation of third country nationals, exchange of information between stake holders and intercultural,
inter-faith and religious dialogue platforms between communities and/or between communities and
policy and decision making authorities;

(h) develop indicators and benchmarking for measuring progress at national level;

(i)

develop high quality monitoring tools and evaluation schemes for integration policies and measures;

(j)

increase the acceptance of migration in host societies as well as the acceptance of integration
measures through awareness-raising campaigns, particularly in the media.

Article 5

Actions of interest to the Community

1.
At the Commission's initiative, up to 7 % of the Fund's available resources may be used to finance
transnational actions or actions of interest to the Community as a whole (‘Community actions’) concerning
immigration and integration policy.

2.

To be eligible for funding, Community actions shall in particular:

(a)

(b)

further Community cooperation in implementing Community law and good practices in the field of
immigration and implementing good practices in the field of integration;

support the setting-up of transnational cooperation networks and pilot projects based on transnational
partnerships between bodies located in two or more Member States designed to stimulate innovation,
facilitate exchanges of experience and good practice and improve the quality of integration policies;

(c)

support transnational awareness-raising campaigns;

(d)

support studies, dissemination and exchange of information on best practices and all other aspects of
immigration and integration policies, including for the use of state of the art technology;

(e)

(f)

support pilot projects and studies exploring the possibility of new forms of Community cooperation in
the field of immigration and integration and Community law in the field of immigration;

support the development and application by Member States of common statistical tools, methods and
indicators for measuring policy developments in the fields of immigration and integration.

The annual work programme laying down the priorities for Community actions shall be adopted in

3.
accordance with the procedure referred to in Article 51(2).

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Deleted

Article 6

[Target Groups]

CHAPTER II

PRINCIPLES OF ASSISTANCE

Article 7

Complementarity, consistency and compliance

The Fund shall provide assistance which complements national, regional and local actions, integrating

1.
into them the priorities of the Community.

In particular, to ensure the consistency of the Community's response to integration of third country
nationals, actions financed under this instrument shall be specific and complementary to actions financed
under the European Social Fund and the European Refugee Fund.

The Commission and the Member States shall ensure that assistance from the Fund and the Member
2.
States is consistent with the activities, policies and priorities of the Community. This consistency shall be
indicated in particular in the multiannual programme referred to in Article 18.

Operations financed by the Fund shall comply with the provisions of the Treaty and of acts adopted

3.
under them.

Article 8

Programming

1.
The objectives of the Fund shall be pursued in the framework of a multiannual programming period
(2007-2013), subject to a mid-term review, in accordance with Article 21A. The multiannual program-
include the priorities and a process of management, decision making, auditing and
ming system shall
certification.

The multiannual programmes approved by the Commission shall be implemented by means of annual

2.
programmes.

Article 9

Subsidiary and proportional intervention

Implementation of multiannual and annual programmes referred to in Articles 19 and 21 shall be the
1.
responsibility of Member States at the appropriate territorial
in accordance with the institutional
system specific to each Member State. This responsibility shall be exercised in accordance with this Decision.

level,

The means employed by the Commission and the Member States shall vary according to the size of
2.
the Community contribution in relation to audit provisions. Differentiation also applies to provisions on
evaluation and to the reports on multiannual and annual programmes.

Article 10

Implementation methods

1.
The Community budget allocated to the Fund shall be implemented in accordance with Article 53(1),
point (b) of Council Regulation (EC, Euratom) No 1605/2002, with the exception of the Community
Actions referred to in Article 5 and the technical assistance referred to in Article 16. The Member States and
the Commission shall ensure compliance with the principle of sound financial management.

The Commission exercises its responsibility for implementing the general budget of the European

2.
Communities by:

(a)

checking the existence and proper functioning of management and control systems in the Member
States in accordance with the procedures described in Article 30;

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(b)

interrupting or suspending all or part of payments in accordance with Articles 40 and 41 if the
national management and control systems fail, and by applying any other financial correction required,
in accordance with the procedures described in Articles 44 and 45.

Thursday, 14 December 2006

Deleted

Article 11

[Additionality]

Article 12

Partnership

1.
Each Member State shall organise, in accordance with current national rules and practices, a partner-
ship with the authorities and bodies which are involved in the implementation of the multiannual
programme or are able to provide a useful contribution to its development according to the Member State
concerned.

Such authorities and bodies may include the competent regional, local, urban and other public authorities,
international organisations and bodies representing civil society such as non-governmental organisations,
including migrant organisations, or social partners.

This partnership shall include at least the implementing authorities designated by Member States for the
purpose of the management of the interventions of the European Social Fund and the responsible
authority of the European Refugee Fund.

The partnership shall be conducted in full compliance with the respective institutional, legal and finan-

2.
cial jurisdiction of each partner category.

CHAPTER III

FINANCIAL FRAMEWORK

Article 13

Global resources

The financial reference amount or the implementation of actions financed by this Fund for the

1.
period from 1 January 2007 until 31 December 2013 shall be 825 million euro.

1bis.
limits of the financial framework.

The annual appropriations for the Fund shall be authorised by the budgetary authority within the

The Commission shall make indicative annual breakdowns by Member States in accordance with the

2.
criteria established in Article 14.

Article 14.

Annual distribution of resources for eligible actions in the Member
States

1.

Each Member State shall receive a fixed amount of 500 000 euro from the Fund's annual allocation.

This amount shall be fixed at 500 000 euro per annum for Member States which will accede to the European
Union in the period 2007-2013, for the remaining part of the period 2007-2013 from the year following
their accession.

The remainder of the available annual resources shall be broken down between the Member States as

2.
follows:

(a)

40 % in proportion to the average of the total number of legally residing third country nationals in
Member States over the previous three years; and

(b) 60 % in proportion to the number of third country nationals who have obtained an authorisation
issued by the authorities of a Member States to reside on its territory over the previous three years.

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However, for the purpose of the calculation referred to in point (b) of paragraph 2, the following cate-

3.
gories of persons shall not be included:

(a)

seasonal workers, as defined under national law;

(b)

(c)

(d)

third country nationals admitted for the purposes of studies, pupil exchange, unremunerated training
or voluntary service in accordance with Council Directive 2004/114/EC of 13 December 2004 (1);

third country nationals admitted for purposes of scientific research in accordance with Council
Directive 2005/71/EC of 12 October 2005 (2);

third country nationals who have received a renewal of an authorisation issued by the authorities of a
Member State or a change of status, including third country nationals who acquire long-term resident
status in accordance with Council Directive 2003/109/EC of 25 November 2003 (3).

The reference figures shall be the latest statistics produced by the Statistical Office of the European

4.
Communities on the basis of data provided by Member States in accordance with Community law.

Where Member States have not supplied to the Commission (Eurostat) the statistics concerned, they shall
provide provisional data as soon as possible.

Before accepting these data as reference figures, the Commission (Eurostat) shall evaluate the quality,
comparability and completeness of the statistical information in accordance with normal operational
procedures. At the request of the Commission (Eurostat), Member States shall provide it with all the
necessary information to do so.

Article 15

Financing structure

1.

The Fund's financial contribution shall take the form of grants.

2.
Actions supported by the Fund shall be co-financed by public or private sources, shall be of a
non-profit nature and shall not be eligible for funding from other sources covered by the general budget of
the European Communities.

Fund appropriations shall be complementary to public or equivalent expenditure allocated by Member

3.
States to the measures covered by this Decision.

The Community contribution to supported projects, as regards actions implemented in the Member

4.
States under Article 4 shall not exceed 50 % of the total cost of a specific action.

This may be increased to 75 % for projects addressing specific priorities identified in the strategic guidelines
as defined in Article 18.

This shall be increased to 75 % in the Member States covered by the Cohesion Fund.

In the framework of the implementation of national programming as set out in Chapter IV,

5.
Member States shall select projects for financing on the basis of the following minimum criteria:

(a) The situation and requirements in the Member State;

(b)

(c)

(d)

the cost-effectiveness of the expenditure, inter alia in view of the number of persons concerned by
the project;

the experience, expertise, reliability and financial contribution of the organisation applying for funding
and any partner organisation;

the extent to which the projects complement other action funded by the general budget of the
European Union or as part of national programmes.

(1) OJ L 375, 23.12.2004, p. 12.
(2) OJ L 289, 3.11.2005, p. 15.
(3) OJ L 16, 23.1.2004, p. 44.

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As a general rule, Community financial aid granted for actions supported by the Fund shall be given

6.
for a period of no more than three years, subject to periodic progress reports.

Thursday, 14 December 2006

Article 16

Technical assistance at the initiative of the Commission

1.
At the initiative of and/or on behalf of the Commission, subject to a ceiling of 500 000 of the Fund's
annual allocation, the Fund may finance the preparatory measures, monitoring, administrative and technical
support measures, as well as evaluation, audit and inspection measures necessary for implementing this
Decision.

2.

(a)

(b)

(c)

(d)

(e)

(f)

Those actions shall include:

studies, evaluations, expert reports, statistics, including those of a general nature concerning the opera-
tion of the Fund;

information measures for the Member States the final beneficiaries and the general public, including
awareness-raising campaigns and a common data base on the projects financed under the Fund;

the installation, operation and interconnection of computerised systems for management, monitoring,
inspection and evaluation;

the design of a common framework for evaluation and monitoring as well as a system of indicators,
taking into account, where appropriate, national indicators;

improvements in evaluation methods and the exchange of information on practices in this field.

information and training measures for the authorities designated by Member States in accordance
with Chapter V, complementary to the efforts of the Member States to provide guidance to their
authorities in accordance with Article 31, paragraph 2.

Article 17

Technical assistance of the Member States

1.
At the initiative of the Member State in question, for each annual programme, the Fund may finance
preparatory measures, management, monitoring, evaluation, information and control measures, as well as
measures for the reinforcement of the administrative capacity for the implementation of the Fund.

2.

The annual amount set aside for technical may not exceed

(a) 7 % of the total annual amount of co-financing allocated to the Member State, plus 30 000 euro for

2007-2010 and

(b) 4 % of the total annual amount of co-financing allocated to the Member State, plus 30 000 euro for

2011-2013.

CHAPTER IV

PROGRAMMING

Article 18

Adoption of strategic guidelines

1.
The Commission shall adopt strategic guidelines setting out a framework for the intervention of the
Fund, taking into account the progress in development and implementation of Community legislation in the
area of immigration and other areas related to the integration of third country nationals as well as the indi-
cative distribution of the financial resources of the Fund for the period concerned.

For each of the objectives of the Fund, those guidelines shall in particular give effect to the priorities

2.
of the Community with a view to promoting the common basic principles.

The Commission shall adopt the strategic guidelines relating to the multiannual programming period

3.
on 31 May 2007 at the latest.

4.

The strategic guidelines shall be adopted in accordance with the procedure referred to in Article 51(2).

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Preparation and approval of national multiannual programmes

Article 19

Each Member State shall propose on the basis of the strategic guidelines referred to in Article 18 a

1.
draft multiannual programme which shall consist of the following elements:

(a)

(b)

(c)

(d)

(e)

(f)

(g)

a description of the current situation in the Member State as regards the implementation of national
integration strategies in light of the common basic principles and, where available, as regards the devel-
opment and implementation of national admission and introduction programmes;

an analysis of requirements in the Member State in question in terms of the national integration strate-
gies and, where available, admission and introduction programmes, and an indication of operational
objectives designed to meet
these requirements during the period covered by the multiannual
programme;

the presentation of an appropriate strategy to achieve these objectives and the priorities attached to
their attainment, and a description of the actions envisaged to implement these priorities;

an indication of whether this strategy is compatible with other regional, national and Community
instruments;

information on the priorities and their specific targets. Those targets shall be quantified using a limited
number of indicators, taking into account the proportionality principle. The indicators must make it
possible to measure the progress in relation to the baseline situation and the effectiveness of the targets
implementing the priorities;

a description of the approach chosen for the implementation of the principle of partnership laid
down in Article 12;

a draft financing plan which sets out, for each priority and each year, the Fund's proposed financial
contribution and the overall amount of public or private co-financing;

(h)

implementing provisions for the multiannual programme, consisting of:

— the designation by the Member State of all the entities stipulated in Article 24;

— a description of the implementation, monitoring, control and evaluation systems, including descrip-
tion of measures taken to ensure complementarity of actions with those financed under the
European Social Fund;

— a definition of the procedures for the mobilisation and circulation of financial flows in order to

ensure their transparency;

— the provisions laid down to ensure that the multiannual programme is publicised.

2. Member States shall submit their draft multiannual programme no later than four months after the
Commission has provided the strategic guidelines for the period in question.

3.

In order to approve the draft multiannual programme, the Commission shall examine:

(a)

its consistency with the objectives of the Fund and the strategic guidelines defined in Article 18;

(b)

the relevance of the actions envisaged in the draft in light of the strategy which is proposed;

(c)

(d)

the compliance of the management and control arrangements set up by the Member State for the
implementation of the Fund's interventions with the provisions set out in this Decision;

its compliance with Community law and in particular with Community law aiming at ensuring the free
movement of persons in conjunction with the directly related flanking measures with respect to
external borders controls, asylum and immigration.

4. Where the Commission considers that a draft multiannual programme is inconsistent with the stra-
tegic guidelines or does not comply with the provisions of this decision setting out management and
control systems or with Community law, it shall invite the Member State to provide all necessary informa-
tion and, where appropriate, to revise the proposed programme accordingly.

The Commission shall approve each multiannual programme within three months following its formal

5.
submission, in accordance with the procedure referred to in Article 51(2).

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Article 20

Revision of multiannual programmes

Thursday, 14 December 2006

1.
At the initiative of the Member State in question or the Commission, the multiannual programme
shall be re-examined and, if necessary, revised for the rest of the programming period in order to take
greater or different account of the Community priorities. Multiannual programmes may be re-examined in
the light of evaluations and/or following implementation difficulties.

2.
The Commission shall adopt a decision approving the revision of the multiannual programme as soon
as possible after the formal submission of a request by the Member State concerned. The revision of the
multiannual programme shall be done in accordance with the procedure referred to in Article 51(2).

Article 21

Annual programmes

The multiannual programmes approved by the Commission shall be implemented by means of annual

1.
programmes.

2.
The Commission shall provide the Member States, no later than 1 July of each year, with an estimate
of the amounts to be allocated to them for the following year from the total appropriations allocated under
the annual budgetary procedure, calculated as provided by Article 14.

3.
The Member States shall submit to the Commission, no later than 1 November of each year, a draft
annual programme for the following year, established in accordance with the multiannual programme and
consisting of the following elements:

(a)

the general rules for selection of projects to be financed under the annual programme;

(b)

a description of the tasks to be supported under the annual programme;

(c)

the proposed financial breakdown of the Fund's contribution between the programme's various actions
and an indication of the amount requested to cover technical assistance under Article 17 for the
purpose of implementing the annual programme.

4. When examining the draft annual programme of a Member State, the Commission shall take account
of the final amount of the appropriations allocated to the Fund under the budgetary procedure […].

Within one month of the formal submission of this draft, the Commission shall inform the Member
State whether it can approve it or not. If the draft annual programme is inconsistent with the multi-
annual programme, the Commission shall invite the Member State to provide all necessary information
and, where appropriate, to revise the proposed programme accordingly.

The Commission shall adopt the financing decision, approving the annual programme, no later than
1 March of the year in question. The decision shall indicate the amount allocated to the Member State and
the period for which the expenditure is eligible.

Article 21A

Mid-term review of the multiannual programme

The Commission shall review the strategic guidelines and where necessary, adopt, on 31 March 2010

1.
at the latest, new strategic guidelines for the period 2011-2013.

If such strategic guidelines are adopted, each Member States shall re-examine its multi-annual

2.
programme and where appropriate, revise it.

The rules in Article 19 on the preparation and approval of national multi-annual programmes shall

3.
apply mutatis mutandis for the preparation and approval of these revised multi-annual programmes.

The revised strategic guidelines shall be adopted in accordance with the procedure referred to in

4.
Article 51(2).

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CHAPTER V

MANAGEMENT AND CONTROL SYSTEMS

Article 22

Implementation

The Commission shall be responsible for implementing this Decision and shall adopt such implementing
rules as may be necessary.

General Principles in the management and control systems

Article 23

The management and control systems of multiannual programmes set up by Member States shall provide
for:

(a)

(b)

(c)

(d)

(e)

(f)

the definition of the functions of the bodies […] concerned in management and control and the alloca-
tion of functions within each body […];

the respect of the principle of separation of functions between and within such bodies;

adequate resources for each body or department to carry out the functions which have been allocated
to it throughout the period of implementation of actions financed by the Fund;

procedures for ensuring the correctness and regularity of the expenditure declared under the multi-
annual programmes;

reliable accounting, monitoring and financial reporting systems in computerised form;

a system of reporting and monitoring where the responsible body entrusts the execution of tasks to
another body;

(g) manuals of procedures in relation to the functions to be performed;

(h)

arrangements for auditing the functioning of the system;

(i)

(j)

systems and procedures to ensure an adequate audit trail;

reporting and monitoring procedures for irregularities and for the recovery of amounts unduly paid.

Article 24

Designation of authorities

For implementing its multiannual programme and annual programmes the Member State shall desig-

1.
nate the following:

(a)

(b)

(c)

a responsible authority: a functional body of the Member State or national public authority or body
designated by the Member State or a body governed by the private law of the Member State and
which has a public sevice mission, which shall be responsible for the management of multi-annual
and annual programmes supported by the Fund and shall handle all communication with the
Commission;

a certifying authority: a national public authority or body, or individual acting as such body or
authority, designated by the Member State to certify declarations of expenditure and applications for
payment before they are sent to the Commission;

an audit authority: national public authority or body, provided that it is functionally independent of
the responsible authority and the certifying authority, designated by the Member State and responsible
for verifying the effective functioning of the management and control system;

(d) where appropriate, a delegated authority;

The Member State shall lay down rules governing its relations with those authorities referred to in

2.
paragraph 1 and their relations with the Commission.

Subject to Article 23(b), some or all of the authorities referred to in paragraph 1 maybe located

3.
within the same body.

The rules for implementing Articles 25 to 29 shall be adopted by the Commission in accordance with

4.
the procedure referred to in Article 51(2).

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Article 25

Responsible authority

Thursday, 14 December 2006

1.

The responsible authority shall meet the following minimum conditions. It shall:

(a)

have legal personality, except where it is a functional body of the Member State;

(b) have the infrastructure required for easy communication with a wide range of users and with the

responsible bodies in the other Member States and the Commission;

(c) work in an administrative context allowing it to carry out its tasks correctly and avoiding any conflict

of interest;

(d)

be in a position to apply Community fund management rules;

(e)

(f)

have financial and management capacities proportionate to the volume of Community funds which it
will be called upon to manage;

have at its disposal personnel with appropriate professional qualifications and language skills for
administrative work in an international environment.

The Member State shall provide the responsible authority with adequate funding so that it can

2.
continue to carry out its tasks properly and uninterruptedly throughout the period 2007-2013.

The Commission may assist the Member States in the training of staff, in particular as regards

2a.
the correct application of Chapter V-IX of this Decision.

Article 26

Tasks of the responsible authority

The responsible authority shall be responsible for managing and implementing the multi-annual

1.
programme in accordance with the principle of sound financial management.

It shall in particular:

(a)

consult partners in accordance with Article 12;

(b)

(c)

submit to the Commission the proposals for multiannual and annual programmes defined in Arti-
cles 19 and 21;

set up a cooperation mechanism with the managing authorities designated by the Member State for the
purposes of the implementation of the actions under the European Social Fund and the European
Refugee Fund;

(d) organise and advertise calls for tenders and proposals, if appropriate;

(e)

organise selection and award procedures for co-financing actions under the Fund in accordance with
the principles set out in Article 15 paragraph 5;

(f)

receive payments made by the Commission, and make payments to the final beneficiaries;

(g)

ensure consistency and complementarity between co-financing under the Fund and from other relevant
national and Community financial instruments;

(h) monitor the delivery of the co-financed products and services and that the expenditure declared for

actions has actually been incurred and complies with Community and national rules;

(i)

(j)

ensure that there is a system for recording and storing in computerised form accounting records of
each action under the annual programmes and that the data on implementation necessary for financial
management, monitoring, control and evaluation is collected;

ensure that final beneficiaries and other bodies involved in the implementation of actions co-financed
by the Fund maintain either a separate accounting system or an adequate accounting code for all trans-
actions relating to the action, without prejudice to national accounting rules;

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(k)

(l)

ensure that the evaluations of multiannual programmes referred to in Article 48 are carried out within
the time limits laid down in this Decision and meet the quality standards agreed between the
Commission and the Member State;

set up procedures to ensure that all documents regarding expenditure and audits required to ensure an
adequate audit trail are held in accordance with the requirements referred to in Article 42;

(m) ensure that the audit authority receives,

for the purposes of carrying out the audits defined in
Article 29(1) all necessary information on management procedures operated and the projects co-fi-
nanced by the Fund;

(n)

(o)

(p)

(q)

(r)

ensure that the certifying authority receives all necessary information on the procedures and verifica-
tions carried out in relation to expenditure for the purpose of certification;

draw up and submit to the Commission progress and final reports on the implementation of the
annual programmes, declarations of expenditure certified by the certifying authority and requests for
payment or where appropriate declaration of reimbursement;

carry out information and advisory activities; and disseminate results of supported actions;

cooperate with the Commission and the responsible authorities in the other Member States;

verify the implementation by the final beneficiaries of the guidelines referred to in Article 32(6).

The responsible authority's management activities for projects implemented in the Member States can

2.
be financed under the technical assistance arrangements referred to in Article 17.

Article 27

Delegation of tasks by the responsible authority

1. Where all or some of the responsible authority's tasks are delegated to a delegated authority, the
responsible authority shall define precisely the scope of the tasks delegated, and set out detailed procedures
for the implementation of the delegated tasks, which shall comply with the conditions laid down in
Article 25.

These procedures shall include supplying the responsible authority with regular information on the

2.
effective performance of the delegated tasks and a description of the means employed.

Article 28

Certifying authority

The certifying authority shall:

certify that:

— the declaration of expenditure is accurate, results from reliable accounting systems and is based on

verifiable supporting documents,

— the expenditure declared complies with applicable Community and national rules and has been
incurred in respect of actions selected in accordance with the criteria applicable to the programme
and complying with Community and national rules;

ensure for the purposes of certification that it has received adequate information from the responsible
authority on the procedures and verifications carried out in relation to expenditure included in declara-
tions of expenditure;

take account for the purposes of certification of the results of all audits carried out by or under the
responsibility of the audit authority;

1.

(a)

(b)

(c)

(d) maintain accounting records in computerised form of expenditure declared to the Commission;

(e)

ensure the recovery of any Community financing found to have been unduly paid as a result of irregu-
larities detected, together with interest where appropriate, keeping an account of amounts recoverable
and repaying amounts recovered to the general budget of the European Communities, where possible
by deducting them from the next declaration of expenditure.

2.
The certifying authority's activities relating to projects implemented in the Member States can be
financed under the technical assistance arrangements referred to in Article 17, provided that the prerogatives
of this authority as described in Article 24 are respected.

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Article 29

Audit authority

Thursday, 14 December 2006

1.

(a)

(b)

(c)

The audit authority shall:

ensure that audits are carried out to verify the effective functioning of the management and control
system;

ensure that audits are carried out on actions on the basis of an appropriate sample to verify expendi-
ture declared; the sample shall represent at least 10 % of the total eligible expenditure for each annual
programme;

present to the Commission within six months of the approval of the multiannual programme an audit
strategy covering the bodies which will perform the audits referred to under subparagraphs (a) and (b),
ensuring that the main beneficiaries of co-financing by the Fund are audited and that audits are spread
evenly throughout the programming period.

2. Where the designated audit authority under this decision is also the designated audit authority under
Decisions …, … and … (1), or where common systems apply to two or more of these Funds, a single
combined audit strategy may be submitted under paragraph 1 point (c).

3.

(a)

(b)

For each annual programme, the audit authority shall draft a report which shall comprise:

an annual audit report setting out the findings of the audits carried out in accordance with the audit
strategy in respect of the annual programme and reporting any shortcomings found in the systems for
the management and control of the programme.

an opinion, on the basis of the controls and audits that have been carried out under the responsi-
bility of the audit authority, as to whether the functioning of the management and control system
provides reasonable assurance that declarations of expenditure presented to the Commission are
correct and that the underlying transactions are legal and regular.

(c)

a declaration assessing the validity of the request for payment of the final balance and the legality and
regularity of the expenditure concerned.

The audit authority shall ensure that the audit work takes account of internationally accepted audit

4.
standards.

5.
The audit relating to projects implemented in the Member States can be financed under the technical
assistance arrangements referred to in Article 17, provided that the prerogatives of this authority as
described in Article 24 are respected.

CHAPTER VI

RESPONSIBILITIES AND CONTROLS

Article 30

Responsibilities of the Member States

1. Member States shall be responsible for ensuring sound financial management of multiannual and
annual programmes and the legality and regularity of underlying transactions.

2.
They shall ensure that responsible authorities and any delegated authority, certifying authorities, audit
authorities and any other bodies concerned receive adequate guidance on setting up the management and
control systems referred to in Articles 23 to 29 to ensure that Community financing is used efficiently and
correctly.

3. Member States shall prevent, detect and correct
Commission, and keep the Commission informed of
proceedings.

irregularities. They shall notify these to the
the progress in the administrative and legal

When amounts unduly paid to the final beneficiary cannot be recovered, the Member State is responsible
for reimbursing the amounts lost to the general budget of the European Communities when it is established
that the loss has been incurred as a result of its fault or negligence.

(1) References will be inserted to decisions establishing the ERF, the External Borders Fund and the Return Fund.

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4. Member States shall be primarily responsible for the financial control of actions and shall ensure that
management systems and audits are implemented in such a way as to guarantee that Community funds are
used properly and effectively. They shall provide the Commission with a description of these systems.

The detailed rules for implementing paragraphs 1 to 4 shall be adopted in accordance with the proce-

5.
dure referred to in Article 51(2).

Article 31

Management and control systems

1.
Prior to the approval of the multiannual programme by the Commission in accordance with the
procedure referred to in Article 51(2), the Member States shall ensure that management and control
systems have been set up in accordance with Articles 23 to 29. They shall be responsible for ensuring that
the systems function effectively throughout the programming period.

2. Member States shall submit to the Commission, together with their draft multiannual programme, a
description of the organisation and procedures of the responsible authorities, delegated authorities and certi-
fying authorities, and the internal audit systems operating in these authorities and bodies, the audit
authority, and any other bodies carrying out audits under its responsibility.

The Commission shall review the application of this provision in the context of the preparation of

3.
the report for the period 2007-2013, set out in Article 49(3).

Article 32

Responsibilities of the Commission

The Commission shall satisfy itself in accordance with the procedure laid down in Article 31 that the
1.
Member States have set up management and control systems that comply with Articles 23 to 29, and on
the basis of the annual audit reports and its own audits that the systems function effectively during the
programming period.

2. Without prejudice to audits carried out by Member States, Commission officials or authorised
Commission representatives may carry out on-the-spot audits to verify the effective functioning of the
management and control systems, which may include audits on actions included in the annual programmes,
with a minimum of three working day's notice. Officials or authorised representatives of the Member State
concerned may take part in such audits.

The Commission may require a Member State to carry out an on-the-spot check to verify the correct
the systems or the correctness of one or more transactions. Commission officials or

3.
functioning of
authorised Commission representatives may take part in such audits.

The Commission shall, in cooperation with the Member States, ensure that appropriate information,

4.
publicity and follow-up are provided for actions supported by the Fund.

The Commission shall, in cooperation with the Member States, ensure that actions are consistent with,

5.
and complementary to, other relevant Community policies, instruments and initiatives.

The Commission shall lay down guidelines to ensure the visibility of the funding granted under this

6.
Decision.

Cooperation with the control bodies of the Member States

Article 33

1.
The Commission shall cooperate with the audit authorities to coordinate their respective control plans
and audit methods and shall immediately exchange the results of audits carried out on management and
control systems in order to make the best possible use of control resources and to avoid unjustified duplica-
tion of work.

The Commission shall provide its comments on the audit strategy presented under Article 29 not later than
three months.

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In determining its own audit strategy, the Commission shall identify those annual programmes which

2.
it considers satisfactory on the basis of its existing knowledge of the management and control systems.

For those programmes, the Commission may conclude that it can rely principally on the audit evidence
provided by the Member States and that it will carry out its own on-the-spot audits only if there is
evidence to suggest shortcomings in the systems.

Thursday, 14 December 2006

CHAPTER VII

FINANCIAL MANAGEMENT

Article 34

Eligibility — Declarations of expenditure

All declarations of expenditure shall include the amount of expenditure incurred by final beneficiaries

1.
in implementing the actions and the corresponding contribution from public or private funds.

Expenditure shall correspond to the payments effected by the beneficiaries. It shall be justified by

2.
receipted invoices or accounting documents of equivalent evidential value.

3.
Expenditure may be considered eligible for support from the Fund only if it is actually paid no earlier
than 1 January of the year referred to in the financing decision, approving the annual programme indicated
in Article 21(4). Actions co-financed must not have been completed before the starting date for eligibility.

By way of exception, the period for which the expenditure is eligible shall be fixed at three years for the
expenditure implementing the actions supported under the 2007 annual programmes.

4.
The rules governing eligibility of expenditure within the framework of actions co-financed by the Fund
in the Member States under Article 4 shall be adopted in accordance with the procedure provided for by
Article 51(2).

Article 35

Completeness of payment to beneficiaries

Member States shall satisfy themselves that the responsible authority ensures that the final beneficiaries
receive the total amount of the contribution from public funds as quickly as possible. No amounts shall be
deducted or withheld, nor any further specific charge or other charge with equivalent effect shall be levied
that would reduce these amounts for the final beneficiaries provided that the final beneficiaries meet all
the requirements regarding the eligibility of actions and expenses.

Article 36

Use of the euro

1.
Amounts set out in the draft multi-annual and annual programmes of the Member States referred
to in respectively Articles 19 and 21, certified declarations of expenditure, requests for payments referred
to in Article 26(1) point (o) and expenditure mentioned in the progress report on the implementation of
the annual programme referred to in Article 38(4) and the final report on the implementation of the
annual programme referred to in Article 50 shall be denominated in euro.

Commission financing decisions, approving the annual programmes of Member States referred to in

2.
Article 21(4), commitments and payments shall be denominated and carried out in euro.

3. Member States which have not adopted the euro as their currency on the date of the request for
payment shall convert into euro the amounts of expenditure incurred in national currency. This amount
shall be converted in euro using the monthly accounting exchange rate of the Commission in the month
during which the expenditure was registered in the accounts of the responsible authority of the
programme concerned. This rate shall be published electronically by the Commission each month.

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4. When the euro becomes the currency of a Member State, the conversion procedure set out in the
preceding paragraph shall continue to apply to all expenditure recorded in the accounts by the certifying
authority before the date of entry into force of the fixed conversion rate between the national currency
and the euro.

Article 37

Commitments

Community budgetary commitments shall be made annually on the basis of
approving the annual programme referred to in Article 21(4).

the financing decision,

Article 38

Payments — Pre-financing

Payments by the Commission of the contribution from the Funds shall be made in accordance with

1.
the budget commitments.

Payments shall take the form of pre-financing and payment of the balance. They shall be made to the

2.
responsible authority designated by the Member State.

3.
A pre-financing payment representing 50 % of the amount allocated in the Commission's financing
decision approving the annual programme shall be made to the Member State within sixty days following
the adoption of that decision.

4.
A second pre-financing payment shall be made no more than three months after the Commission has
approved, within two months of the formal submission, a progress report on the implementation of the
annual programme and a certified declaration of expenditure drawn up in accordance with Articles 28(1)(a)
and 34 accounting for at least 60 % of the amount of the initial payment. The amount of the second pre-
financing payment made by the Commission shall not exceed 50 % of the total amount allocated by the
financing decision, approving the annual programme and,
in any event, where a Member State has
committed nationally an amount less the amount indicated in the financing decision, approving the
annual programme, the balance of the amount of Community funds actually committed by the Member
State for selected projects under the annual programme minus the first pre-financing payment.

5.
Any interest generated by pre-financing payments shall be posted to the programme concerned, being
regarded as a resource for the Member State as national public contribution and shall be declared to the
Commission at the time of the final declaration of expenditure of the programme concerned.

The amounts paid as pre financing shall be cleared from the accounts when the annual programme is

6.
closed.

Article 39

Payments of balance

1.
The Commission shall pay the balance provided it has received the following documents no later than
nine months after the eligibility deadline for expenditure laid down in the financing decision, approving
the annual programme:

(a)

a certified declaration of expenditure duly drawn up in accordance with Articles 28(1) point (a) and
34 and a request for payment of the balance or a declaration of reimbursement;

(b)

the final report on the implementation of the annual programme, as set out in Article 50;

(c)

the annual audit report, opinion and declaration provided for in Article 29(3).

The payment of the balance is subject to the acceptance of the final report on the implementation of the
annual programme and of the declaration assessing the validity of the request for payment of the balance.

2.
If the responsible authority fails to provide the documents required in paragraph 1 by the due date
and in an acceptable format, the Commission shall decommit any part of the budget commitment of the
corresponding annual programme that has not been used for payment of the pre-financing.

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3.
The automatic cancellation procedure defined in paragraph 2 shall be suspended, for the amount of
the projects concerned, where legal proceedings or administrative appeal having suspensive effects are
ongoing at Member State level at the time of submission of the documents defined in paragraph 1. The
Member State shall, in the partial final report submitted, give detailed information on such projects, and
send reports on progress made with regard to these projects every 6 months. Within 3 months of the
conclusion of the legal proceedings or administrative appeal procedure, the Member State shall present the
documents required in paragraph 1 for the projects concerned.

4.
The nine months period referred to in paragraph 1 shall be interrupted if the Commission has
adopted a decision suspending payments of the co-financing for the relevant annual programme in accord-
ance with the provisions of Article 41. The period shall start to run again from the date when the
Commission decision referred to in Article 41(3) has been notified to the Member State.

5. Without prejudice to the provisions of Article 40, the Commission shall, within six months of
receiving the documents referred to in paragraph 1, inform the Member State of the amount of expenditure
recognised by the Commission as chargeable to the Fund, and of any financial corrections deriving from the
difference between declared expenditure and the expenditure recognised. The Member State shall have three
months to present its comments.

6. Within three months of receiving the Member State's comments, the Commission shall decide on the
amount of expenditure recognised as chargeable to the Fund, and recover the balance arising from the differ-
ence between final recognised expenditure and the sums already paid to the Member States.

7.
Subject to available funding, the Commission shall pay the balance within no more than sixty days
from the date on which it accepts the documents referred to in paragraph one above. The balance of the
budgetary commitment shall be decommitted six months following the payment.

Article 40

Interruption

The payment deadline shall be interrupted by the authorising officer by delegation within the meaning

1.
of Regulation (EC, Euratom) No 1605/2002 for a maximum period of six months if […]:

(a)

(b)

in a report of a national or Community audit body there is evidence to suggest a significant defi-
ciency in the functioning of the management and control systems […],

that officer has to carry out additional verifications following information coming to his notice
which alerted him that expenditure in a certified declaration of expenditure is linked to a serious
irregularity which has not been corrected.

2.
The Member State and the certifying authority shall be informed immediately of the reasons for the
interruption. The interruption shall be ended as soon as the necessary measures have been taken by the
Member State.

Article 41

Suspension

1.

(a)

All or part of the pre-financing and balance payments may be suspended by the Commission when:

there is a serious deficiency in the management and control system of the programme which affects
the reliability of the procedure for certification of payments and for which corrective measures have
not been taken; or

(b)

expenditure in a certified declaration of expenditure is linked to a serious irregularity which has not
been corrected; or

(c)

a Member State has not complied with its obligations under Articles 30 and 31.

The Commission may decide to suspend pre-financing and balance payments after having given the

2.
Member State the opportunity to present its observations within a period of three months.

The Commission shall end the suspension of pre-financing and balance payments when it considers

3.
that the Member State has taken the necessary measures to enable the suspension to be lifted.

If the required measures are not taken by the Member State, the Commission may adopt a decision to

4.
cancel all or part of the Community contribution to the annual programme in accordance with Article 45.

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Article 42

Conservation of documents

the responsible
Without prejudice to the rules governing State aid under Article 87 of the Treaty,
Authority shall ensure that all
the supporting documents regarding expenditure and audits on the
programmes concerned are kept available for the Commission and the Court of Auditors for a period of
five years following the closure of the programmes as defined in Article 39(1).

This period shall be interrupted either in the case of legal proceedings or at the duly motivated request of
the Commission.

The documents shall be kept either in the form of the originals or in versions certified to be in conformity
with the originals on commonly accepted data carriers.

CHAPTER VIII

FINANCIAL CORRECTIONS

Article 43

Financial corrections established by the Member States

The Member States shall in the first instance bear the responsibility for investigating irregularities,
1.
acting upon evidence of any major change affecting the nature or the conditions for the implementation or
control of programmes and making the required financial corrections.

The Member State shall make the financial corrections required in connection with the individual or
2.
systemic irregularities detected in actions or annual programmes. The corrections made by the Member
States shall consist in recovering all or part of the Community contribution. The Member State shall take
into account the nature and gravity of the irregularities and the financial loss to the Fund.

3. Member States shall include in the final report on the implementation of the annual programme
referred to in Article 50 a list of cancellation proceedings initiated for the annual programme concerned.

The corrections made by the Member State shall consist in cancelling all or part of the Community contri-
bution, and, where the amount is not repaid in the time allowed by the relevant Member State, default
interest shall be due at the rate provided for by Article 46(2).

In the case of systemic irregularities the Member State shall extend its enquiries to cover all operations

4.
liable to be affected.

Audit of accounts and financial corrections by the Commission

Article 44

1. Without prejudice to the powers of the Court of Auditors or the checks carried out by the Member
States in accordance with national laws, regulations and administrative provisions, Commission officials or
authorised Commission representatives may carry out on-the-spot checks, including sample checks, on the
operations financed by the Fund and on management and control systems with a minimum of three
working days' notice. The Commission shall give notice to the Member State concerned with a view to
obtaining all the assistance necessary. Officials or authorised representatives of the Member State concerned
may take part in such checks.

The Commission may require the Member State concerned to carry out an on-the-spot-check to verify the
correctness of one or more transactions. Commission officials or authorised Commission representatives
may take part in such checks.

2.
If, after completing the necessary verifications, the Commission concludes that a Member State is not
complying with its obligations under Article 30, it shall suspend the pre-financing or final payment in
accordance with Article 41.

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Article 45

Criteria for the corrections

Thursday, 14 December 2006

The Commission may make financial corrections by cancelling all or part of the Community contri-

1.
bution to an annual programme where, after carrying out the necessary examination, it concludes that:

(a)

(b)

(c)

there is a serious deficiency in the management and control system of the programme which has put
at risk the Community contribution already paid to the programme;

expenditure contained in a certified declaration of expenditure is irregular and has not been corrected
by the Member State prior to the opening of the correction procedure under this paragraph;

a Member State has not complied with its obligations under Article 30 prior to the opening of the
correction procedure under this paragraph.

The Commission shall decide after having taken into account any comments made by the Member State.

2.
The Commission shall base its financial corrections on individual cases of irregularity identified, taking
account of the systemic nature of the irregularity to determine whether a flat-rate or extrapolated correction
should be applied. Where the case of irregularity relates to a declaration of expenditure for which a positive
assurance had previously been given in accordance with the Article 29(3)(b) in an annual report, there will
be a presumption of a systemic problem giving rise to the application of a flat-rate or extrapolated correc-
tion, unless the Member State can provide proof within three months to rebut this presumption.

3.
The Commission shall, when deciding the amount of a correction, take account of the importance of
the irregularity and the extent and financial implications of the deficiencies found in the annual programme
concerned.

4. Where the Commission bases its position on the facts established by auditors other than those of its
own services, it shall draw its own conclusions regarding the financial consequences, after examining the
measures taken by the Member State concerned under Article 31, the reports of notified irregularities and
any replies from the Member State.

Article 46

Repayment

Any repayment due to be made to the general budget of the European Communities shall be effected
1.
before the due date indicated in the order for recovery drawn up in accordance with Article 72 Council
Regulation (EC, Euratom) No 1605/2002 (1). This due date shall be the last day of the second month
following the issuing of the order.

2.
Any delay in effecting repayment shall give rise to interest on account of late payment, starting on the
due date and ending on the date of actual payment. The rate of such interest 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 due date falls,
increased by three and a half percentage points.

Article 47

Obligations of Member States

A financial correction by the Commission shall not prejudice the Member State's obligation to pursue
recoveries under Article 45.

(1) OJ L 248, 16.9.2002.

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CHAPTER IX

MONITORING, EVALUATION AND REPORTS

Article 48

Monitoring and evaluation

The Commission shall carry out regular monitoring on the Fund in cooperation with the Member

1.
States.

2.
The Fund shall be evaluated regularly by the Commission in partnership with the Member States to
assess the relevance, effectiveness and impact of actions in the light of the general objective referred to in
Article 2 in the context of the preparation of the report set out in Article 49(3).

The Commission shall also look at the complementarity between the actions implemented under the

3.
Fund and those pursued under other relevant Community policies, instruments and initiatives.

Article 49

Reporting obligations

In each Member State the responsible authority shall

1.
project-monitoring and evaluation.

take the necessary measures to ensure

To that end, the agreements and contracts it concludes with the organisations responsible for the implemen-
tation of the actions shall include clauses laying down an obligation to submit regular and detailed reports
on the state of progress of implementation and completion of the assigned objectives which shall be the
basis for respectively the progress and final reports on the implementation of the annual programme.

2.

(a)

The Member States shall submit to the Commission:

no later that 30 June 2010, an evaluation report on the implementation of actions co-financed by the
Fund;

(b) no later than 30 June 2012 (for the period 2007-2010) and 30 June 2015 (for the period 2011-2013)

respectively, an evaluation report on the results and impact of actions co-financed by the Fund.

The Commission shall submit to the European Parliament, the Council, the Economic and Social

3.
Committee and the Committee of the Regions:

(a)

no later than 30 June 2009, a report on and a review of the application of the criteria set out in
Article 14 for the annual breakdown of resources between member States; together with proposals for
amendments if deemed necessary;

(b) no later than 31 December 2010, an intermediate report on the results achieved and on qualitative
and quantitative aspects of implementation of the Fund, together with a proposal on the Fund's future
development;

(c)

no later than 31 December 2012 (for the period 2007-2010) and 31 December 2015 (for the period
2011-2013) respectively, an ex post evaluation report.

Article 50

Final report on the implementation of the annual programme

The report shall include the following information in order to obtain a clear view of the implementa-

1.
tion of the programme:

(a)

the financial and operational implementation of the annual programme;

(b)

the progress made in implementing the multiannual programme and its priorities in relation to their
specific, verifiable targets, with a quantification, wherever and whenever they lend themselves to quanti-
fication, of the indicators;

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(c)

the steps taken by the responsible authority to ensure the quality and effectiveness of implementation,
in particular:

— monitoring and evaluation measures, including data collection arrangements;

— a summary of any significant problems encountered in implementing the operational programme

and any measures taken;

— the use made of technical assistance;

(d)

the measures taken to provide information on and make public the annual and multiannual
programmes.

2.
The report shall be judged acceptable where it contains all the information listed in paragraph 1. The
Commission shall reach a decision on the content of the report submitted by the responsible authority
within two months of having received all the information referred to in paragraph 1, which shall be
acknowledged to the Member States. If the Commission does not respond within the time-limit laid down,
the report shall be deemed to be accepted.

CHAPTER X

TRANSITIONAL PROVISIONS

Article 50A

The preparation for the multi-annual programme

1.

By way of derogation from Article 19, Member States shall

(a) as soon as possible after the entry into force of this Decision but no later than 1 March 2007, desig-
nate the national responsible authority referred to in Article 25, paragraph 1, point (a), as well as,
where appropriate, the delegated authority;

(b) no later than 1 May 2007, submit the description of the management and control systems referred

to in Article 32, paragraph 2.

2.

By 31 May 2007, the Commission shall provide Member States with

(a) an estimate of the amounts allocated to them for the financial year 2007;

(b)

estimates of the amounts to be allocated to them for the financial years 2008-2013, on the basis of
an extrapolation of the calculation for the estimate for the financial year 2007, bearing in mind the
proposed annual appropriations for the years 2007-2013 as set out by the financial perspectives.

Article 50B

The preparation for the 2007 annual programme

By way of derogation from Article 21, the following time table shall apply for implementation in

1.
the financial year 2007:

(a) By 31 May 2007, the Commission shall provide Member States with an estimate of the amounts

allocated to them for the financial year 2007;

(b) By 1 September 2007, Member States shall present the draft annual programme to the Commission.

2.
Expenditure actually disbursed between 1 January 2007 and the date on which the financing deci-
sion approving the annual programme of the Member State in question is adopted, may qualify for
support from the Fund.

3.
To allow for the adoption in 2008 of financing decisions, approving the annual programme for
2007, the Commission shall make the Community budgetary commitment for 2007 on the basis of the
estimate of the amount to be allocated to the Member States, calculated as provided by Article 14.

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CHAPTER XI

FINAL PROVISIONS

Article 51
Committee

The Commission shall be assisted by the common Committee ‘Solidarity and Management of
1.
Migration Flows’, established by the Decision establishing the External Borders Fund for the period
2007-2013 as part of the General programme ‘Solidarity and Management of Migration Flows’ …/… (1)
(the ‘Committee’).

2. Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall apply.

3.

The Committee shall adopt its Rules of Procedure.

The Council shall review this Decision on the basis of a proposal from the Commission by 30 June 2013 at
the latest.

Article 52
Review

This Decision shall apply from 1 January 2007.

Article 53
Entry into force

This Decision is addressed to the Member States.

Article 54
Addressees

(1) References will be inserted to decisions establishing the ERF, the External Borders Fund and the Return Fund.

P6_TA(2006)0584

Prevention,
(Programme on Security and Safeguarding Liberties) *

Preparedness

and Consequence Management

of Terrorism

European Parliament legislative resolution on the proposal for a Council decision establishing the
specific programme ‘Prevention, Preparedness and Consequence Management of Terrorism’ for the
period 2007-2013 — General Programme ‘Security and Safeguarding Liberties’ (COM(2005)0124 —
C6-0241/2005 — 2005/0034(CNS))

(Consultation procedure)

The European Parliament,

— having regard to the Commission proposal to the Council (COM(2005)0124) (1),

— having regard to Article 308 of the EC Treaty, pursuant to which the Council consulted Parliament

(C6-0241/2005),

(1) Not yet published in OJ.