2007/435/EC: Council Decision of 25 June 2007 establishing the European Fund for the Integration of third-country nationals for the period 2007 to 2013 as part of the General programme Solidarity and Management of Migration Flows
Date: 2007-06-25
Institutions: Council of the European Union
Subjects: EU programme, cooperation policy, financial management, foreign national, fund (EU), integration of migrants, migratory movement, third country

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II

(Acts adopted under the EC Treaty/Euratom Treaty whose publication is not obligatory)

DECISIONS

COUNCIL

COUNCIL DECISION

of 25 June 2007

establishing the European Fund for the Integration of third-country nationals for the period 2007 to
2013 as part of the General programme ‘Solidarity and Management of Migration Flows’

(2007/435/EC)

THE COUNCIL OF THE EUROPEAN UNION,

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

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and
Social Committee (1),

Having regard to the opinion of
Regions (2),

the Committee of

the

Having regard to the opinion of the European Parliament (3),

Whereas:

(1) With a view to the progressive establishment of an area of
freedom, security and justice, the Treaty provides both for
the adoption of measures aimed at ensuring the free
movement of persons, in conjunction with accompanying
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.

(2)

The European Council, at its 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 European

(1) Opinion of 14 February 2006 (OJ C 88, 11.4.2006, p. 15).
(2) Opinion of 16 November 2005 (OJ C 115, 16.5.2006, p. 47).
(3) Opinion of 14 December 2006 (not yet published in the Official

Journal).

(3)

(4)

Union citizens. It should also enhance non-discrimination
in economic, social and cultural life and develop measures
against racism and xenophobia.

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, the
European Fund for
third-country
nationals (hereinafter referred to as the Fund) should be
primarily targeted at newly-arrived third-country nationals,
as far as the co-financing of concrete actions supporting the
integration process in Member States is concerned.

the Integration of

In the Hague Programme of 4 and 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.

(5) As requested in the Hague Programme, the Council 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’
referred to as the Common Basic
Principles). The Common Basic Principles assist Member
States in formulating integration policies by offering them a

(hereinafter

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thoughtful guide of basic principles against which they can
judge and assess their own efforts.

(6)

The Common Basic Principles are complementary to and in
full synergy with the Community legislative 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-discrimin-
ation and social inclusion.

(7) Recalling 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 European Union, the Council Conclusions on that
Agenda of 1 and 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 implementing the Com-
mon Basic Principles.

(8)

(9)

(10)

The failure of an individual Member State to develop and
implement integration policies could in different ways have
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 Union for the period
2003 to 2006 for the financing of pilot projects and
preparatory actions in the field of integration (hereinafter
referred to as INTI).

In the light of
INTI and referring to the Commission
Communications on immigration, integration and employ-
ment and the First annual
report on Migration and
is considered necessary to endow the
it
Integration,
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 accordance with the Common Basic Principles
and in complementarity with the European Social Fund
(hereinafter referred to as ESF).

(11) To ensure the consistency of the Community's response to
third-country nationals, actions financed
integration of
under the Fund should be specific and complementary to
actions financed under the ESF and the European Refugee
Fund. In this context, specific joint programming arrange-
ments to ensure the consistency of
the Community's
response to integration of third-country nationals through
the ESF and the Fund should be developed.

(12) Bearing in mind that the Fund and the ESF are under shared
management with Member States, arrangements should
also be made at national
level to ensure consistency in
implementation. For that purpose, the authorities of the
Member States responsible for the implementation of the
Fund 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 the Fund should be specific and comple-
the ESF and the
mentary to actions financed under
European Refugee Fund.

third-country nationals

(13) This Decision should be targeted primarily, as far as it
concerns the co-financing of concrete actions supporting
the integration process of
in
Member States at actions relating to third-country nationals
who are newly arrived. Reference, could be made in this
context to Council Directive 2003/109/EC of 25 November
2003 concerning the status of third-country nationals who
are long-term residents (1) 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.

(14) The Fund 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 cooperation in and between
Member States contributing to enhancing this capacity.

(15) This Decision is designed to form part of a coherent
framework which also includes Decision No 573/2007/EC
of the European Parliament and the Council of 23 May
2007 establishing the European Refugee Fund for the
period 2008 to 2013 as part of the General programme
‘Solidarity and Management of Migration Flows’ and
repealing Council Decision 2004/904/EC (2), Decision
No 574/2007/EC of
the European Parliament and the
Council of 23 May 2007 establishing the External Borders
Fund for the period 2007 to 2013 as part of the General
programme ‘Solidarity and Management of Migration
Flows’ (3) and Decision No 575/2007/EC of the European
Parliament and the Council of 23 May 2007 establishing
the European Return Fund for the period 2008 to 2013 as
part of the General programme ‘Solidarity and Management
of Migration Flows’ (4), which aims to address the issue of
fairly sharing responsibilities between Member States as
concerns the financial burden arising from the introduction
of integrated management of the European Union's external
borders and from the implementation of common policies
on asylum and immigration, as developed in accordance
with Title IV of Part 3 of the Treaty.

(1) OJ L 16, 23.1.2004, p. 44.
(2) OJ L 144, 6.6.2007, p. 1.
(3) OJ L 144, 6.6.2007, p. 22.
(4) OJ L 144, 6.6.2007, p. 45.

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

(17) On the basis of

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

(18)

In the context of shared management as referred to in
Article 53(1)(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) (hereinafter referred to as the Financial
Regulation), the conditions allowing the Commission to
exercise its responsibilities for
the
general budget of the European Union should be specified
and the obligations for the cooperation of the Member
States clarified. Applying those conditions would enable the
Commission to satisfy itself that Member States are using
the Fund in a lawful and correct manner and in accordance
with the principle of sound financial management within
the meaning of Article 27 and Article 48(2) of the Financial
Regulation.

implementation of

arrangements by which Member States ensure that the
relevant systems are in place and function satisfactorily.

(23) 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.

(24) The effectiveness and impact of actions supported by the
Fund also depend on their evaluation and the dissemination
of their results. The responsibilities of the Member States
and the Commission in this regard, and arrangements to
ensure the reliability of evaluation and the quality of the
related information, should be formalised.

(25) 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 arrange-
ments.

(26) Bearing in mind the importance of visibility of

the
the Commission should provide
Community funding,
guidance facilitating the proper acknowledgement of the
received by any authority, non-governmental
support
organisation,
international organisation or other entity
receiving a grant under the Fund, taking into account the
practice with respect to other instruments under shared
management, such as the Structural Funds.

(19) Objective criteria should be established to allocate available
annual resources to the Member States. These criteria
should take into account the total number of third-country
nationals legally staying in Member States and the total new
admission of third-country nationals over a given reference
period.

(27) This Decision establishes a financial envelope for the entire
duration of the programme, within the meaning of point 38
of
the Interinstitutional Agreement of 17 May 2006
between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial
management (2) without thereby affecting the powers of the
budgetary authority as they are defined by the Treaty.

(20) Member States

should adopt adequate measures

to
guarantee the proper functioning of the management and
control system and the quality of implementation. To this
end, it is necessary to establish the general principles and
the necessary functions which all programmes should fulfil.

(21)

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

(22) The obligations on the Member States as regards manage-
ment and control systems, the certification of expenditure,
and the prevention, detection and correction of irregula-
rities and infringements of Community law should be
specified in order to guarantee the efficient and correct
implementation of
their multiannual and annual pro-
In particular, as far as the management and
grammes.
is necessary to establish the
control are concerned,

it

(28) Since the objective of this Decision, 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 that objective.

(29) The measures necessary for the implementation of this
Decision should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures
implementing powers
the exercise of
conferred on the Commission (3).

for

(30)

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

(1) OJ L 248, 16.9.2002, p. 1. Regulation as amended by Regulation (EC,

(2) OJ C 139, 14.6.2006, p. 1.
(3) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/

Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

512/EC (OJ L 200, 22.7.2006, p. 11).

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(31)

(32)

(33)

In accordance with Article 1 and 2 of 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.

are eligible for subsidiary protection in accordance with Council
Directive 2004/83/EC of 29 April 2004 on minimum standards
for the qualification and status of third-country nationals or
stateless persons as refugees or as persons who otherwise need
international protection and the content of
the protection
granted (1), shall be excluded from the scope 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, Ireland has notified, by letter of
6 September 2005, its wish to take part in the adoption and
application of this Decision.

4. Third-country national means any person who is not a
citizen of the Union within the meaning of Article 17(1) of the
Treaty.

Article 2

General objective of the Fund

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,

1. The general objective of the Fund is to support the efforts
made by the 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.

HAS ADOPTED THIS DECISION:

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

CHAPTER I

SUBJECT MATTER, OBJECTIVES AND ACTIONS

Article 1

Subject matter and scope

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

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 which also includes Decision
No 573/2007/EC, Decision No 574/2007/EC and Decision
No 575/2007/EC, in order to contribute to the strengthening of
the area of freedom, security and justice and the application of
the principle of solidarity between the Member States.

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

It establishes the Fund's management rules, including financial
rules, as well as monitoring and control mechanisms based on
the sharing 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 applied for asylum in
respect of which a final decision has not yet been taken, or enjoy
refugee or subsidiary protection status, or qualify as refugees or

3. The Fund shall contribute to the financing of the technical
assistance at
the
Commission.

the Member States or

the initiative of

Article 3

Specific objectives

The Fund shall contribute to the following specific objectives:

(a)

(b)

(c)

(d)

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

and implementation of

development
integration
process of newly-arrived third-country nationals in Mem-
ber States;

the

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

exchange of information, best practices and cooperation in
and between Member States in developing, implementing,
monitoring and evaluating policies and measures for the
integration of third-country nationals.

(1) OJ L 304, 30.9.2004, p. 12.

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Article 4

Eligible actions in the Member States

(f)

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

1. As regards the objective defined in Article 3(a), the Fund
shall support actions in Member States which:

3. As regards the objectives defined in Article 3(c) and (d), the
Fund shall support actions in and between Member States which:

(a)

(b)

(c)

facilitate the development and implementation by Member
inter alia by supporting
States of admission procedures,
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 proce-
dures;

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 integration, such as vocational
training, information packages, comprehensive civic orien-
tation courses and language tuition in the country of origin.

2. As regards the objective defined in Article 3(b), the Fund
shall support actions in Member States which:

(a)

(b)

(c)

(d)

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 eco-
nomic features, cultural life and the fundamental norms
and values, as well as complement such existing pro-
grammes and activities;

develop and improve the quality of such programmes and
level, with a particular
activities at
emphasis on civic orientation;

local and regional

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;

(a)

(b)

(c)

(d)

(e)

(f)

(g)

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 intercultural capacities;

build sustainable organisational structures for integration
and diversity management, promote durable and sustain-
life, and develop
able participation in civil and cultural
modes of cooperation between different relevant stake-
holders enabling officials at various levels to swiftly gain
information about experiences and practices elsewhere and,
where possible, to pool resources;

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

intercultural

reinforce the capacity to coordinate, implement, monitor
and evaluate national
third-
country nationals across the different levels and depart-
ments of government;

integration strategies

for

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-governmen-
tal 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 consultation 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 consultation of third-
country nationals, exchange of information between stake
holders and intercultural, inter-faith and religious dialogue
platforms between communities and/or between commu-
nities and policy and decision-making authorities;

(e)

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

(h)

develop indicators and benchmarking for measuring
progress at national level;

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(i)

(j)

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

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

CHAPTER II

PRINCIPLES OF ASSISTANCE

Article 6

Article 5

Community actions

Complementarity, consistency and compliance

1. The Fund shall provide assistance which complements
national, regional and local actions, integrating into them the
priorities of 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 (hereinafter
referred to as Community actions) concerning immigration and
integration policy.

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

2. To be eligible for funding, Community actions shall
particular:

in

(a)

(b)

further Community cooperation in implementing Commu-
nity 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 net-
works and pilot projects based on transnational partner-
ships between bodies from 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)

(e)

(f)

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

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.

3. The annual work programme laying down the priorities for
Community actions shall be adopted in accordance with the
procedure referred to in Article 52(2).

2. The Commission and the Member States shall ensure that
assistance from the Fund and the Member 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 16.

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

Article 7

Programming

1. The objectives of the Fund shall be pursued within the
framework of the multiannual programming period from 2007
to 2013, subject to a mid-term review,
in accordance with
Article 20. The multiannual programming system shall include
the priorities and a process of management, decision-making,
auditing and certification.

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

Article 8

Subsidiary and proportional intervention

1.
Implementation of multiannual and annual programmes
referred to in Articles 17 and 19 shall be the responsibility of
Member States at the appropriate territorial level, in accordance
with the institutional system specific to each Member State. This
responsibility shall be exercised in accordance with this Decision.

2.
In relation to audit provisions the means employed by the
Commission and the Member States shall vary according to the
size of the Community contribution. The same principle shall
apply to provisions on evaluation and to the reports on
multiannual and annual programmes.

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Article 9

Implementation methods

2. The annual appropriations for the Fund shall be authorised
by the budgetary authority within the limits of the Financial
Framework.

1. The Community budget allocated to the Fund shall be
implemented in accordance with Article 53(1)(b) of the Financial
Regulation, with the exception of
the Community actions
referred to in Article 5 and the technical assistance referred to in
Article 14. Member States and the Commission shall ensure
compliance with the principle of sound financial management.

2. The Commission shall
implementing the general budget of the European Union by:

responsibility for

exercise

its

3. The Commission shall make indicative annual breakdowns
by Member States in accordance with the criteria established in
Article 12.

Article 12

Annual distribution of resources for eligible actions in the
Member States

Each Member State shall

1.
EUR 500 000 from the Fund's annual allocation.

receive a fixed amount of

(a)

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

(b) withholding or suspending payments in full or in part in
accordance with the procedures described in Articles 39
and 40 if the national management and control systems
fail, and applying any other financial correction required, in
accordance with the procedures described in Articles 43
and 44.

Article 10

Partnership

Each Member State shall organise,

1.
in accordance with
current national rules and practices, a partnership with the
authorities and bodies which are involved in the implementation
of
the multiannual programme or which, according to the
Member State concerned, are able to make a useful contribution
to its development.

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

representing civil

This partnership shall
the implementing
include at
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.

least

Such partnership shall be conducted in full compliance with
2.
the respective institutional, legal and financial jurisdiction of each
partner category.

CHAPTER III

FINANCIAL FRAMEWORK

Article 11

Global resources

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

2. The remainder of the available annual resources shall be
broken down between the Member States as 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 a
Member State to reside on its territory over the previous
three years.

3. However, for the purpose of the calculation referred to in
paragraph 2(b), the following categories 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 volun-
tary service in accordance with Council Directive 2004/
114/EC (1);

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

third country nationals who have received a renewal of an
authorisation issued by a Member State or a change of
status, including third-country nationals who acquire long-
term resident status in accordance with Council Direc-
tive 2003/109/EC.

4. The reference figures shall be the latest statistics produced by
the Commission (Eurostat) on the basis of data provided by
Member States in accordance with Community law.

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

1. The financial envelope for the implementation of actions
financed by the Fund for the period from 1 January 2007 until
31 December 2013 shall be EUR 825 million.

(1) OJ L 375, 23.12.2004, p. 12.
(2) OJ L 289, 3.11.2005, p. 15.

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

the request of

Article 13

Financing structure

Article 14

Technical assistance at the initiative of the Commission

1. At the initiative of and/or on behalf of the Commission,
the Fund's annual
subject to a ceiling of EUR 500 000 of
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.

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

2. Those measures shall include:

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 Union.

3.
Fund appropriations shall be complementary to public or
equivalent expenditure allocated by Member States to the
measures covered by this Decision.

4. The Community contribution to supported projects, as
regards actions implemented in the Member 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 16.

The Community contribution shall be increased to 75 % in the
Member States covered by the Cohesion Fund.

5. Within the framework of the implementation of national
programming as set out in Chapter IV, 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)

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

(c)

(d)

the experience, expertise, reliability and financial contribu-
tion of the organisation applying for funding and any
partner organisation;

the extent to which the project complements other actions
funded by the general budget of the European Union or as
part of national programmes.

6. As a general rule, Community financial aid for actions
supported by the Fund shall be granted for a period of no more
than three years, subject to periodic progress reports.

(a)

(b)

(c)

(d)

(e)

(f)

studies, evaluations, expert reports and statistics, including
those of a general nature concerning the operation 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 compu-
terised 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 30(2).

Article 15

Technical assistance at the initiative of Member States

the initiative of a Member State,

for each annual
1. At
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 amount set aside for technical assistance under each
annual programme may not exceed:

(a)

(b)

for the period 2007 to 2010, 7 % of the total annual
amount of co-financing allocated to that Member State,
plus EUR 30 000; and

for the period 2011 to 2013, 4 % of the total annual
amount of co-financing allocated to that Member State,
plus EUR 30 000.

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CHAPTER IV

PROGRAMMING

Article 16

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 indicative distribution of the financial resources of the
Fund for the period concerned.

progress in relation to the baseline situation and the
effectiveness of the targets implementing the priorities;

a description of the approach chosen for the implementa-
tion of the principle of partnership laid down in Article 10;

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

(f)

(g)

(h)

a description of measures taken to ensure complementarity
of actions with those financed under the ESF;

2.
For each of the objectives of the Fund, those guidelines shall
in particular give effect to the priorities of the Community with a
view to promoting the Common Basic Principles.

(i)

the provisions laid down to ensure that the multiannual
programme is made public.

3. The Commission shall adopt the strategic guidelines relating
to the multiannual programming period by 31 July 2007.

4. The strategic guidelines shall be adopted in accordance with
the procedure referred to in Article 52(2).

shall

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

Article 17

In order to approve the draft multiannual programme, the

3.
Commission shall examine:

Preparation and approval of national multiannual
programmes

1.
the
Each Member State shall propose on the basis of
strategic guidelines referred to in Article 16 a draft multiannual
programme which shall consist of the following elements:

a description of the current situation in that Member State
as regards the implementation of national
integration
strategies in light of the Common Basic Principles and,
where available, as regards the development and imple-
mentation of national admission and introduction pro-
grammes;

an analysis of requirements in the Member State in question
in terms of the national integration strategies 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 that strategy is compatible with
other regional, national and Community instruments;

(a)

(b)

(c)

(d)

(e)

(a)

(b)

(c)

(d)

the draft multiannual programme's consistency with the
objectives of the Fund and the strategic guidelines defined
in Article 16;

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

the compliance of the management and control arrange-
ments set up by the Member State for the implementation
of the Fund's interventions with the provisions of this
Decision;

the draft multiannual programme's
compliance with
Community law and in particular with Community law
aiming at ensuring the free movement of persons in
conjunction with the directly related accompanying
measures with respect to external borders controls, asylum
and immigration.

4. Where the Commission considers that a draft multiannual
programme is inconsistent with the strategic guidelines or does
not comply with the provisions of this Decision setting out
management and control systems or with Community law, it
shall
all necessary
information and, where appropriate, to revise the draft multi-
annual programme accordingly.

the Member State

to provide

invite

information on the priorities and their specific targets.
Those targets shall be quantified using a limited number of
indicators, taking into account the principle of proportion-
ality. The indicators shall make it possible to measure the

5. The Commission shall approve each multiannual pro-
gramme within three months following its formal submission,
in accordance with the procedure referred to in Article 52(2).

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Article 18

Revision of multiannual programmes

The Commission shall adopt the financing decision, approving
the annual programme, by 1 March of the year in question. The
decision shall indicate the amount allocated to the Member State
concerned and the period for which the expenditure is eligible.

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
to that effect by the
the formal submission of a request
Member State concerned. The revision of
the multiannual
programme shall be carried out
in accordance with the
procedure referred to in Article 52(2).

Article 19

Annual programmes

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

2. The Commission shall provide the Member States, by 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 12.

shall

3. Member States
to the Commission, by
submit
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 actions to be supported under the
annual programme;

(c)

the proposed financial breakdown of the Fund's contribu-
tion between the programme's various actions and an
indication of
the amount requested to cover technical
assistance under Article 15 for the purpose of implement-
ing 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 the draft annual
inform the Member State
programme, the Commission shall
concerned whether it can be approved.
the draft annual
programme is inconsistent with the multiannual programme, the
Commission shall
invite that Member State to provide all
necessary information and, where appropriate, to revise the draft
annual programme accordingly.

If

Article 20

Mid-term review of the multiannual programme

1. The Commission shall review the strategic guidelines and
where necessary, adopt, by 31 March 2010, revised strategic
guidelines for the period 2011 to 2013.

2.
If such revised strategic guidelines are adopted, each Member
State shall re-examine its multi-annual programme and where
appropriate, revise it.

3. The rules laid down in Article 17 on the preparation and
approval of national multi-annual programmes shall apply
mutatis mutandis for the preparation and approval of
these
revised multi-annual programmes.

4. The
accordance with the procedure referred to in Article 52(2).

revised strategic guidelines

shall be adopted in

CHAPTER V

MANAGEMENT AND CONTROL SYSTEMS

Article 21

Implementation

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

Article 22

General principles of management and control systems

The management and control systems of multiannual pro-
grammes 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 allocation of functions
within each body;

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

functions

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 co-
financed by the Fund;

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

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

a system of reporting and monitoring where the respon-
sible body entrusts the execution of tasks to another body;

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

(b)

performed;

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;

(h)

arrangements for auditing the functioning of the system;

(i)

systems and procedures to ensure an adequate audit trail;

(j)

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

Article 23

Designation of authorities

1.
For the implementation of its multiannual programme and
annual programmes the Member State shall designate 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 the multiannual
programme 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
before they are sent to the Commission;

it

is

functionally independent of

an audit authority: a national public authority or body,
provided that
the
responsible authority and the certifying authority, desig-
nated by the Member State and responsible for verifying the
effective functioning of
the management and control
system;

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

(d)

(e)

(f)

be in a position to apply Community fund management
rules;

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.

2. The Member State shall provide the responsible authority
with adequate funding so that it can continue to carry out its
tasks properly and uninterruptedly throughout the period 2007
to 2013.

3. The Commission may assist
the Member States in the
training of staff, in particular as regards the correct application of
Chapters V to IX.

Article 25

Tasks of the responsible authority

1. The responsible authority shall be responsible for managing
and implementing the multi-annual programme in accordance
with the principle of sound financial management.

It shall in particular:

(d) where appropriate, a delegated authority.

(a)

consult partners in accordance with Article 10;

2. The Member State shall
lay down rules governing its
relations with the authorities referred to in paragraph 1 and their
relations with the Commission.

3.
Subject to Article 22(b), some or all of the authorities
referred to in paragraph 1 of this Article may be located within
the same body.

4. The rules for implementing Articles 24 to 28 shall be
adopted by the Commission in accordance with the procedure
referred to in Article 52(2).

Article 24

Responsible authority

1. The responsible authority shall meet the following mini-
mum conditions. It shall:

(a)

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

(b)

(c)

(d)

(e)

(f)

(g)

submit to the Commission the proposals for multiannual
and annual programmes to which Articles 17 and 19 refer;

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
ESF and the European Refugee Fund;

organise and advertise calls for tenders and proposals, if
appropriate;

organise the selection of projects for co-financing under the
Fund in accordance with the criteria set out in Article 13(5);

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

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

(i)

(j)

(k)

(l)

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(h) monitor the delivery of

the co-financed products and
services and check that the expenditure declared for actions
has actually been incurred and complies with Community
and national rules;

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 implementa-
financial management, monitoring,
tion necessary for
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 transactions relating to
the action, without prejudice to national accounting rules;

Article 26

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 24.

2. These procedures shall
include supplying the responsible
authority with regular information on the effective performance
of the delegated tasks and a description of the means employed.

Article 27

Certifying authority

ensure that the evaluations of the Fund referred to in
Article 47 are carried out within the time limits laid down
in Article 48(2) and meet the quality standards agreed
between the Commission and the Member State;

1. The certifying authority shall:

(a)

certify that:

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 41;

(m) ensure that the audit authority receives, for the purposes of
carrying out
the audits defined in Article 28(1), all
necessary information on management procedures oper-
ated and the projects co-financed by the Fund;

(n)

(o)

ensure that the certifying authority receives all necessary
information on the procedures and verifications 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
statements of reimbursement;

(p)

carry out information and advisory activities; and dissem-
inate results of supported actions;

(q)

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

(r)

verify the implementation by the final beneficiaries of the
guidelines referred to in Article 31(6).

(i)

(ii)

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;

(b)

(c)

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 declarations 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;

(d) maintain accounting records in computerised form of

expenditure declared to the Commission;

(e)

(f)

verify the recovery of any Community financing found to
have been unduly paid as a result of irregularities detected,
together with interest where appropriate;

keep an account of amounts recoverable and amounts
recovered under the general budget of the European Union,
where possible by deducting them from the next
declaration of expenditure.

2. The responsible authority's management activities
for
projects implemented in the Member States may be financed
the technical assistance arrangements referred to in
under
Article 15.

2. The certifying authority's activities relating to projects
implemented in the Member States may be financed under the
technical assistance arrangements referred to in Article 15,
provided that the prerogatives of this authority as described in
Article 23 are respected.

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Article 28

Audit authority

1. The audit authority shall:

(a)

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

(b)

(c)

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

to the Commission within six months of

present
the
approval of the multiannual programme an audit strategy
covering the bodies which will perform the audits referred
to under points (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 No 573/
2007/EC, No 574/2007/EC and No 575/2007/EC, or where
common systems apply to two or more of these Funds, a single
combined audit strategy may be submitted under paragraph 1(c).

For each annual programme, the audit authority shall draft a

3.
report which shall comprise:

(a)

(b)

(c)

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 responsibility 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;

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

reimbursement of

the request

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

CHAPTER VI

RESPONSIBILITIES AND CONTROLS

Article 29

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. Member States 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 22 to 28 to ensure that Community financing is used
efficiently and correctly.

3. Member States shall prevent, detect and correct irregula-
rities. They shall notify these to the Commission, and keep the
Commission informed of the progress in the administrative and
legal proceedings.

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

4. Member States shall be primarily responsible for
the
financial control of actions and shall ensure that management
and control 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.

5. The detailed rules for implementing paragraphs 1 to 4 shall
be adopted in accordance with the procedure referred to in
Article 52(2).

Article 30

Management and control systems

1. Before the Commission approves the multiannual pro-
gramme,
in accordance with the procedure referred to in
Article 52(2), the Member States shall ensure that management
and control systems have been set up in accordance with
Articles 22 to 28. They shall be responsible for ensuring that the
systems
the programming
period.

function effectively throughout

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

5. The audit relating to projects implemented in the Member
States may be financed under the technical assistance arrange-
ments referred to in Article 15, provided that the prerogatives of
the audit authority as described in Article 23 are respected.

3. The Commission shall
this
provision in the context of the preparation of the report for
the period 2007 to 2013, set out in Article 48(3).

review the application of

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Article 31

CHAPTER VII

Responsibilities of the Commission

FINANCIAL MANAGEMENT

1. The Commission shall satisfy itself in accordance with the
procedure laid down in Article 30 that the Member States have
set up management and control systems that comply with
Articles 22 to 28, 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 checks
to verify the effective
functioning of the management and control systems, which
may include
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.

audits on actions

included in the

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

4. The Commission shall,
in cooperation with the Member
States, ensure that appropriate information, publicity and follow-
up are provided for actions supported by the Fund.

5. The Commission shall,
in cooperation with the Member
States, ensure that actions are consistent with, and complemen-
tary to, other relevant Community policies,
instruments and
initiatives.

Article 33

Eligibility — declarations of expenditure

1. All declarations of expenditure shall include the amount of
expenditure incurred by final beneficiaries in implementing the
actions and the corresponding contribution from public or
private funds.

2.
Expenditure shall correspond to the payments effected by
the final beneficiaries. It shall be justified by 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 referred to in the third subparagraph of Article 19
(4). The co-financed actions 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
the expenditure
implementing the actions supported under the 2007 annual
programmes.

three years

for

4. The rules governing eligibility of expenditure within the
framework of implemented actions co-financed by the Fund in
the Member States under Article 4 shall be adopted in
accordance with the procedure referred to in Article 52(2).

Article 34

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

Completeness of payment to final beneficiaries

Article 32

Cooperation with the audit authorities of the Member
States

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

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 shall
any further specific charge or other charge with equivalent effect
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 35

Use of the euro

The Commission shall provide its comments on the audit
strategy presented under Article 28 within not more than
three months after receipt.

2.
In determining its own audit strategy, the Commission shall
identify those annual programmes which it considers satisfactory
on the basis of its existing knowledge of the management and
control systems.

1. Amounts set out in the draft multi-annual and annual
programmes of the Member States referred to in Articles 17
and 19 respectively, certified declarations of expenditure,
requests for payments referred to in Article 25(1)(o) and
expenditure mentioned in the progress report on the imple-
mentation of the annual programme referred to in Article 37(4)
and the final report on the implementation of
the annual
programme referred to in Article 49 shall be denominated
in euros.

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
checks only if there is evidence to suggest shortcomings in the
systems.

2. Commission financing decisions, approving the annual
programmes of Member States
referred to in the third
subparagraph of Article 19(4), Commission commitments and
Commission payments shall be denominated and carried out in
euros.

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

4. When the euro becomes the currency of a Member State, the
conversion procedure set out in paragraph 3 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 36

Commitments

Community budgetary commitments shall be made annually on
the basis of the Commission financing decision, approving the
annual programme referred to in the third subparagraph of
Article 19(4).

Article 37

Payments — Pre-financing

1.
Payments by the Commission of the contribution from the
Fund shall be made in accordance with the budget commitments.

Payments shall take the form of pre-financing and payment
2.
of the balance. They shall be made to the responsible authority
designated by the Member State.

3. A first pre-financing payment representing 50 % of the
amount allocated in the financing decision approving the annual
programme shall be made to the Member State within 60 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 of a request of payment by
a Member State, a progress report on the implementation of the
annual programme and a certified declaration of expenditure
drawn up in accordance with Article 27(1)(a) and Article 33
accounting for at
the initial
payment.

the amount of

least 60 % of

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 annual 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
declaration of expenditure relating to the final report on the
implementation of the annual programme concerned.

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

Article 38

Payment 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)

(b)

(c)

a certified declaration of expenditure duly drawn up in
accordance with Article 27(1)(a) and Article 33 and a
request for payment of the balance or a statement of
reimbursement;

the final report on the implementation of
programme, as set out in Article 49;

the annual

the annual audit report, opinion and declaration provided
for in Article 28(3).

The payment of the balance shall be 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.

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

required in paragraph 1 for

4. The nine months period referred to in paragraph 1 shall
cease to run if
the Commission has adopted a decision
suspending payments of the co-financing for the relevant annual
programme in accordance with Article 40. The period shall start
to run again from the date when the Commission decision
referred to in Article 40(3) has been notified to the Member
State.

5. Without prejudice to Article 39, the Commission shall,
within six months of receiving the documents referred to in
paragraph 1 of this Article, 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.

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

7.
Subject to available funding, the Commission shall pay the
balance within no more than 60 days from the date on which it
accepts the documents referred to in paragraph 1. The balance of
the budgetary commitment shall be decommitted six months
following the payment.

Article 39

Withholding of payments

1. The payment shall be withheld by the authorising officer by
delegation within the meaning of the Financial Regulation for a
maximum period of six months if:

(a)

(b)

in a report of a national or Community audit body there is
evidence
significant deficiency in the
functioning of the management and control systems;

to suggest

a

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

expenditure

2. The Member State and the responsible authority shall be
informed immediately of the reasons for the payment being
withheld. The payment shall be withheld until the necessary
measures are taken by the Member State.

Article 40

Suspension of payments

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

(a)

(b)

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

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 29 and 30.

2. The Commission may decide to suspend pre-financing and
payments of the balance after having given the Member State the
opportunity to present
its observations within a period of
three months.

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

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

4.
If the necessary measures are not taken by the Member State,
the Commission may adopt a decision to cancel all or part of the
Community contribution to the annual programme in accord-
ance with Article 44.

Article 41

Conservation of documents

Without prejudice to the rules governing State aid under
Article 87 of the Treaty, the responsible 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 in accordance with
Article 38(1).

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

legal
the

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 42

Financial corrections by Member States

shall

1. Member States
the
in the
responsibility for investigating irregularities, acting upon evi-
dence of any major change affecting the nature or the conditions
for the implementation or control of programmes and making
the required financial corrections.

instance bear

first

2. Member States shall make the financial corrections required
in connection with the individual or systemic irregularities
detected in actions or annual programmes.

Corrections made by Member States shall consist in cancelling,
and if applicable, recovering all or part of the Community
contribution. 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 in Article 45(2). Member States shall
take into account the nature and gravity of the irregularities and
the financial loss to the Fund.

3.
In the event of systemic irregularities the relevant Member
State shall extend its enquiries to cover all operations liable to be
affected.

include in the final report on the
4. Member States shall
implementation of
the annual programme referred to in
Article 49 a list of cancellation procedures initiated for the
annual programme concerned.

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Article 43

can provide proof within three months to rebut this presump-
tion.

Audit of accounts and financial corrections by the
Commission

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, Com-
mission officials or authorised Commission representatives may
carry out on-the-spot checks, including sample checks, on the
actions 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 accuracy of one or
more transactions. Commission officials or authorised Commis-
sion representatives may take part in such checks.

If, after completing the necessary verifications, the Commis-
2.
sion concludes that a Member State is not complying with its
obligations under Article 29, it shall suspend the pre-financing
or payment of the balance in accordance with Article 40.

Article 44

Criteria for the corrections

1. The Commission may make financial corrections by
cancelling all or part of the Community contribution to an
annual programme where, after carrying out
the necessary
examination, it concludes that:

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;

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
financial
consequences, after examining the measures taken by the
Member State concerned under Article 30,
the reports of
notified irregularities and any replies from the Member State.

regarding the

Article 45

Repayment

1. Any repayment due to be made to the general budget of the
European Union shall be effected before the due date indicated in
the order for recovery drawn up in accordance with Article 72 of
the Financial Regulation. 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 46

Obligations of Member States

A financial correction by the Commission shall not prejudice the
Member State's obligation to pursue recoveries under Article 42.

contained in a

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

CHAPTER IX

MONITORING, EVALUATION AND REPORTS

a Member State has not complied with its obligations under
Article 29 prior to the opening of the correction procedure
under this paragraph.

Article 47

Monitoring and evaluation

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
irregularity relates to a declaration of expenditure for which a
reasonable assurance had previously been given by the audit
authority in accordance with the Article 28(3)(b), there will be a
presumption of a systemic problem giving rise to the application
of a flat-rate or extrapolated correction, unless the Member State

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

2. The Fund shall be evaluated 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
for the reports set out in Article 48(3).

3. The Commission shall also consider the complementarity
between the actions implemented under the Fund and those
pursued under other relevant Community policies, instruments
and initiatives.

(a)

(b)

(c)

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Article 48

Reporting obligations

In each Member State the responsible authority shall take
to ensure project-monitoring and

1.
the necessary measures
evaluation.

To that end, the agreements and contracts it concludes with the
organisations responsible for the implementation 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. The Member States shall submit to the Commission:

(a)

by 30 June 2010, an evaluation report on the implementa-
tion of actions co-financed by the Fund;

(b)

by 30 June 2012 for the period 2007 to 2010 and 30 June
2015 for
the period 2011 to 2013 respectively, an
evaluation report on the results and impact of actions co-
financed by the Fund.

3. The Commission shall submit to the European Parliament,
the Council, the European Economic and Social Committee and
the Committee of the Regions:

(a)

(b)

by 30 June 2009, a report on and a review of
the
application of the criteria set out in Article 12 for the
annual breakdown of resources between Member States;
together with proposals
if deemed
necessary;

for amendments

by 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)

by 31 December 2012 for the period 2007 to 2010 and
31 December 2015 for
the period 2011 to 2013
respectively, an ex post evaluation report.

Article 49

Final report on the implementation of the annual
programme

the annual
1. The final report on the implementation of
programme shall include the following information in order to
obtain a clear view of the implementation of the programme:

(a)

the financial and operational implementation of the annual
programme;

(b)

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

(c)

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

(i) monitoring and evaluation measures, including data

collection arrangements;

(ii)

a summary of any significant problems encountered
in implementing the operational programme and any
measures taken;

(iii)

the use made of technical assistance;

(d)

the measures taken to provide information on and make
public the annual and multi-annual 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 50

Preparation of the multi-annual programme

1. By way of derogation from Article 17, Member States shall:

(a)

as soon as possible after 29 June 2007 but not later than
14 July 2007, designate the national responsible authority
referred to in Article 24(1)(a), as well as, where appropriate,
the delegated authority;

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(b)

by 30 September 2007, submit the description of the
management and control systems referred to in Article 31
(2).

2. By 1 July 2007, the Commission shall provide Member
States with:

(a)

(b)

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

estimates of the amounts to be allocated to them for the
financial years 2008 to 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 to 2013 as set out by the
Financial Framework.

Article 51

Preparation of the 2007 and 2008 annual programmes

1. By way of derogation from Article 19, the following time
table shall apply for implementation in the financial year 2007
and 2008:

(a)

(b)

(c)

by 1 July 2007, the Commission shall provide Member
States with an estimate of the amounts allocated to them
for the financial year 2007;

by 1 December 2007, Member States shall present the draft
annual programme for 2007 to the Commission;

by 1 March 2008, Member States shall present the draft
annual programme for 2008 to the Commission.

2. As concerns the 2007 annual programme, expenditure
actually disbursed between 1 January 2007 and the date on
which the financing decision approving the annual programme
of the Member State concerned 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 12.

CHAPTER XI

FINAL PROVISIONS

Article 52

Committee

1. The Commission shall be assisted by the
common
Committee ‘Solidarity and Management of Migration Flows’,
established by Decision No 574/2007/EC (hereinafter referred to
as the Committee).

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

Article 53

Review

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

Article 54

Entry into force and application

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

This Decision shall apply from 1 January 2007.

Article 55

Addressees

This Decision is addressed to the Member States in accordance
with the Treaty establishing the European Community.

Done at Luxembourg, 25 June 2007.

For the Council

The President

A. SCHAVAN