European Training Foundation (recast) ***I European Parliament legislative resolution of 22 May 2008 on the proposal for a regulation of the European Parliament and of the Council establishing a European Training Foundation (recast) (COM(2007)0443 — C6-0243/2007 — 2007/0163(COD))#P6_TC1-COD(2007)0163 Position of the European Parliament adopted at first reading on 22 May 2008 with a view to the adoption of Regulation (EC) No …/2008 of the European Parliament and of the Council establishing a European Training Foundation (recast)
Date: 2008-05-22
Institutions: Committee on Employment and Social Affairs, European Parliament
Subjects: Central and Eastern Europe, European Training Foundation, codecision procedure, drafting of EU law, economic reform, operation of the Institutions, resolution of parliament, social change, vocational training








CE2009279EN.01021701.xml










19.11.2009   


EN


Official Journal of the European Union


CE 279/217





European Training Foundation (recast) ***I

P6_TA(2008)0227

European Parliament legislative resolution of 22 May 2008 on the proposal for a regulation of the European Parliament and of the Council establishing a European Training Foundation (recast) (COM(2007)0443 — C6-0243/2007 — 2007/0163(COD))
(2009/C 279 E/41)
(Codecision procedure: first reading)

The European Parliament,






—


having regard to the Commission proposal to the European Parliament and the Council (COM(2007)0443),










—


having regard to Article 251(2) and Article 150 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0243/2007),










—


having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts (1),










—


having regard to the letter of 24 January 2008 from the Committee on Legal Affairs to the Committee on Employment and Social Affairs pursuant to Rule 80a(3) of its Rules of Procedure,










—


having regard to Rules 80a and 51 of its Rules of Procedure,










—


having regard to the report of the Committee on Employment and Social Affairs (A6-0131/2008),










A.


whereas, according to the Consultative Working Party of the Legal Services of the European Parliament, the Council and the Commission, the proposal in question includes no substantive amendment other than those identified as such in the proposal and whereas, as regards the unchanged provisions of existing texts, the proposal contains a straightforward codification of those texts without a change in substance,










1.


Approves the Commission proposal as amended below and as adapted to the recommendations of the Consultative Working Party of the Legal Services of the European Parliament, the Council and the Commission;










2.


Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;










3.


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






(1)  OJ C 77, 28.3.2002, p. 1.


P6_TC1-COD(2007)0163
Position of the European Parliament adopted at first reading on 22 May 2008 with a view to the adoption of Regulation (EC) No …/2008 of the European Parliament and of the Council establishing a European Training Foundation (recast)
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 150 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 the Committee of the Regions (2),
Acting in accordance with the procedure laid down in Article 251 of the Treaty (3),
Whereas:






(1)


Council Regulation (EEC) No 1360/90 of 7 May 1990 establishing a European Training Foundation (4) has been substantially amended several times. Since further amendments are to be made, it should be recast in the interests of clarity.










(2)

The European Council meeting at Strasbourg on 8 and 9 December 1989 called upon the Council to adopt, at the beginning of 1990, the necessary decisions for the establishment of a European Training Foundation for Central and Eastern Europe, acting on a proposal from the Commission. To this end 

the Council adopted Regulation (EEC) No 1360/90, which established that Foundation, on 7 May 1990.









(3)


Pursuant to a decision taken by common agreement between the representatives of the Governments of the Member States meeting at Head of State and Government level in Brussels on 29 October 1993 (5), the Foundation has its seat in Turin, Italy.










(4)


On 18 December 1989, the Council adopted Regulation (EEC) No 3906/89 (6) on economic aid to the Republic of Hungary and the Polish People's Republic, which provided for aid in areas including training to support the process of economic and social reform in Hungary and Poland.










(5)

The Council 

 subsequently extended such aid to other countries of Central and Eastern Europe 

.










(6)


On 27 July 1994, the Council adopted Regulation (EC) No 2063/94 (7) amending Regulation (EEC) No 1360/90 with a view to including in the activities of the European Training Foundation the countries receiving assistance under the 

Tacis Programme 

.










(7)



On 17 July 1998, the Council adopted Regulation (EC) No 1572/98 (8) amending Regulation (EEC) No 1360/90 with a view to including in the activities of the European Training Foundation the Mediterranean non-member countries and territories which are beneficiaries of the financial and technical measures to accompany the reform of their economy and social structures pursuant to the Meda Programme.











(8)


On 5 December 2000, the Council adopted Regulation (EC) No 2666/2000 (9) on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia amending Regulation (EEC) No 1360/90 with a view to including in the activities of the European Training Foundation the countries of the Western Balkans 

 covered by 

Regulation (EC) No 2666/2000.










(9)



External assistance programmes related to the countries covered by the activities of the European Training Foundation are to be replaced by new external relations policy instruments, mainly the instrument established by Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (10) and the instrument established by Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument (ENPI) (11).











(10)



Through supporting human 
capital
 development in the context of its external relations policy, the European Union contributes to economic development in those countries by providing the skills necessary to foster productivity and employment and supports social cohesion by promoting civic participation.











(11)



In the context of those countries' efforts to reform their economic and social structures, the development of human 
capital
 is essential for attaining long-term stability and prosperity and in particular for achieving socio-economic equilibrium.











(12)



The European Training Foundation could make an important contribution, in the context of the external relations policies of the European Union, to improving human 
capital
 development, in particular education and training in a lifelong learning perspective.











(13)



For its contribution, the European Training Foundation will need to call upon the experience gained within the European Union in relation to education and training in a lifelong learning perspective and upon its institutions involved in this activity.











(14)



There exist in the Community and in third countries, including the countries covered by the activities of the European Training Foundation, regional and/or national, public and/or private facilities which can be called upon to collaborate in the effective provision of aid in the area of human 
capital
 development, in particular education and training in a lifelong learning perspective.











(15)



The status and structure of the European Training Foundation should facilitate a flexible response to the specific and differing requirements of the individual countries to be assisted, and allow it to carry out its functions in close cooperation with the existing national and international bodies.











(16)



The European Training Foundation should be endowed with legal personality, while maintaining a close corporate relationship with the Commission and respecting the overall political and operational responsibilities of the Community and its institutions.











(17)



The European Training Foundation should have close links with the European Centre for the Development of Vocational Training, with the Trans-European Mobility Scheme for University Studies (Tempus) and any other schemes instituted by the Council to provide aid in the area of training to the countries covered by its activities.











(18)



The European Training Foundation should be open to the participation of countries which are not members of the Community and which share the commitment of the Community and the Member States to the provision of aid to the countries covered by the activities of the European Training Foundation in the field of human 
capital
 development, in particular education and training in a lifelong learning perspective, under arrangements to be laid down in agreements between the Community and themselves.











(19)




The European Parliament,
 the Commission, and 
all
 the Member States should be represented within a Governing Board in order to 
oversee
 effectively the functions of the Foundation. 













(20)



In order to guarantee the full autonomy and independence of the Foundation, it should be granted an autonomous budget whose revenues come 
primarily
 from a contribution from the Community. The Community budgetary procedure should be applicable as far as the Community contribution and any other subsidies chargeable to the general budget of the European Union are concerned. The auditing of accounts should be undertaken by the Court of Auditors.











(21)



The Foundation is a body set up by the Communities in the sense of Article 185(1) 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 (12) (hereinafter ‘the Financial Regulation’) and should adopt its financial rules accordingly.











(22)



Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (13) should apply to the Foundation.











(23)



In order to combat fraud, corruption and other unlawful activities the provisions of Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999 concerning investigations conducted by the European Anti-Fraud Office (OLAF) (14) should apply, without restriction, to the Foundation.











(24)



Regulation (EC) No 1049/2001 of the European Parliament and of the Council of 30 May 2001 regarding public access to European Parliament, Council and Commission (15) documents should apply to the Foundation.











(25)



Regulation (EC) No 45/2001 of the European Parliament and of the Council of 18 December 2000 on the protection of individuals with regard to the processing of personal data by the Community institutions and bodies and on the free movement of such data (16) should apply to the processing of personal data by the Foundation.











(26)



Since the objective of this Regulation, namely 
assistance to third countries in the field of
 human 
capital
 development



 cannot be sufficiently achieved by the Member States and can therefore be better achieved at Community level, the Community may adopt measures, in accordance with the principle of subsidiary as set out in Article 5 of the Treaty. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.











(27)


This Regulation 
observes
 the fundamental rights



 recognised 

 by the Charter of Fundamental Rights of the European Union
,
 in particular 

 Article 43 
thereof
,



HAVE ADOPTED THIS REGULATION:
Article 1
Subject matter and scope
This Regulation hereby establishes the European Training Foundation (hereinafter referred to as the ‘Foundation’), whose objective shall be to contribute, in the context of EU external relations policies, to improving human 
capital
 development  in the following countries:






(a)

the countries eligible for support under 

 Regulation (EC) No 1085/2006 and subsequent related legal acts;









(b)


the countries eligible for support under Regulation (EC) No 1638/2006 and subsequent related legal acts;










(c)


other countries designated by decision of the Governing Board on 
the basis of a proposal supported by two-thirds of its members and a Commission opinion, and covered by a Community instrument or international agreement that includes a component of human capital development,
 and as far as available resources allow.




The countries under (a), (b) and (c) are hereinafter designated as the ‘partner countries’.


For the purpose of this Regulation, ‘human capital development’ shall be defined as work that contributes to the lifelong development of each individual's skills and competences through the improvement of vocational education and training systems.




In order to achieve its objective, the Foundation may provide assistance to partner countries on:








—




facilitating adaptation to industrial changes, in particular through vocational training and retraining;












—




improving initial and continuing vocational training in order to facilitate vocational integration and reintegration into the labour market;












—




facilitating access to vocational training and encouraging mobility of instructors and trainees and particularly young people;












—




stimulating cooperation on training between educational establishments and firms;












—




developing exchanges of information and experience on issues common to the training systems of the Member States;












—




increasing the adaptability of workers, particularly through increased participation in education and training in a lifelong learning perspective; and












—




designing, introducing and implementing reforms in education and training systems, in order to develop employability and labour market relevance.






Article 2
Functions
For the purpose of achieving the objectives set out in Article 1, the Foundation, within the limits of the powers conferred on the Governing Board and following the general guidelines established at Community level, shall have the following functions:






(a)



to provide information, policy analysis and advice on human 
capital
 development issues



 in the partner countries;












(b)






to promote knowledge and analysis of skills needs in national and local labour markets;













(c)




to support relevant stakeholders in partner countries to build capacity in human 
capital
 development;











(d)




to facilitate the exchange of information and experience among donors engaged in human 
capital
 development reform in partner countries;











(e)




to support the delivery of Community assistance to partner countries in the field of human 
capital
 development;











(f)




to disseminate information and encourage networking and the exchange of experience and good practices between the European Union and partner countries and among partner countries on human 
capital
 development issues;











(g)



at the Commission's request, to contribute to the analysis of the overall effectiveness of training assistance to the partner countries; and












(h)




to undertake such other tasks as may be agreed between the Governing Board and the Commission, within the general framework of this Regulation.




Article 3
General provisions
1.   The Foundation shall have legal personality. It shall enjoy in each of the Member States the most extensive legal capacity accorded to legal persons under their laws; it may, in particular, acquire or dispose of movable and immovable property and may be a party to legal proceedings. It shall be non-profit making.
2.   The Foundation shall have its seat in Turin, Italy.
3.   The Foundation shall cooperate with the other relevant Community bodies, with the support of the Commission. The Foundation shall cooperate, in particular, with the European Centre for the Development of Vocational Training in the framework of a joint annual work programme annexed to the annual work programme of each agency with the objective of promoting synergy 
and complementarity
 between the activities of the two agencies.


4.
   
Representatives of the social partners at Community level already active in the work of Community institutions, and international organisations active in the training field, may be invited, where appropriate, to participate in the work of the Foundation.



5.   



 The Foundation shall be subject to the administrative control of the European Ombudsman, pursuant to the conditions set out in Article 195 of the 
Treaty.

6.   The Foundation may establish cooperation agreements with other relevant bodies active in the human 
capital
 development field in the EU and internationally. The Governing Board shall adopt such agreements on the basis of a draft submitted by the Director after the Commission has delivered its opinion. The working arrangements contained therein must comply with Community law.
Article 4
Transparency
1.   The Foundation shall act with a high level of transparency and comply with the provisions under paragraphs 2 to 4.
2.   The Foundation shall make public 
within six months of setting up its Governing Board
:






(a)


its own Rules of Procedure and those of the Governing Board;










(b)


its annual activity report.




3.   The Governing Board may



 authorise representatives of interested parties, in appropriate cases, to attend meetings of the Foundation's bodies in the capacity of observers.
4.   Regulation (EC) No 1049/2001 shall apply to documents held by the Foundation.
The Governing Board shall adopt the practical arrangements for applying the said Regulation.
Article 5
Confidentiality
1.   Without prejudice to Article 4(4), the Foundation shall  divulge to third parties no confidential information that it has received and in regard to which confidential treatment has been requested and is justified.
2.   The members of the Governing Board and the Director shall be subject to the confidentiality requirement referred to in Article 287 of the 
Treaty.
3.   The information gathered by the Foundation in accordance with this Regulation shall be subject to Regulation (EC) No 45/2001.
Article 6
Remedies
Decisions taken by the Foundation pursuant to Article 8 of Regulation (EC) No 1049/2001 may form the subject of a complaint to the Ombudsman or of an action before the Court of Justice of the European Communities, under the conditions laid down in Articles 195 and 230 of the Treaty respectively.
Article 7
Governing Board
1.   The Foundation shall have a Governing Board consisting of



 representatives of the Member States 
following the rotation stipulations of the Treaty of Lisbon regarding the appointment of Commissioners, three
 representatives of the Commission, as well as 
three experts appointed by the European Parliament. In addition,
 three representatives of the partner countries 
may attend meetings of the Governing Board as observers
. Representatives may be replaced by alternates appointed at the same time.
2.   
The
 Member States 
and the
 Commission shall 
each
 appoint 
their
 own representatives 
and alternates to the Governing Board
.
The representatives of the partner countries shall be appointed by the Commission 
on the basis of a list of candidates proposed by those countries and of their experience and expertise in the Foundation's areas of work
.


The Member States, the European Parliament and the
 Commission  shall endeavour to 
achieve
 a balanced representation of men and women on the Governing Board.
3.   The term of office of representatives shall be five years. It shall be renewable once.
4.   The Governing Board shall be chaired by one of the representatives of the Commission. The term of office of the Chairperson shall expire when their respective membership of the Governing Board ceases.
5.   The Governing Board shall adopt its Rules of Procedure.
Article 8
Voting rules and tasks of the Chairperson
1.   The representatives of the Member States 



 on the Governing Board shall each have one vote. 
The representatives of the Commission shall share one vote.









Decisions of the Governing Board shall require a two-thirds majority of the members of the board 
entitled to vote
, except in the 
cases
 referred to in 
paragraphs 2 and 3
.
2.   The Governing Board shall determine, by a unanimous decision of its members 
entitled to vote
, the rules governing the languages of the Foundation, taking into account the need to ensure access to, and participation in, the work of the Foundation by all interested parties.
3.   The Chairperson shall convene the Governing Board at least 
once
 a year
. Further meetings may be convened
 at the request of



 a 
simple
 majority of those members of the Board 
who are entitled to vote
.
The Chairperson shall be responsible for informing the board of other Community activities relevant to their work and the Commission's expectations concerning the Foundation 's activities in the forthcoming year.
Article 9
Powers of the Governing Board
The Governing Board shall have the following functions and powers:






(a)


appoint and, where necessary, dismiss the Director of the Foundation in accordance with 


Article 10(5);









(b)


exercise disciplinary authority over the Director;










(c)

adopt the Foundation's annual work programme on the basis of a draft submitted by the Director of the Foundation after the Commission has delivered its opinion, in accordance with 

Article 12;









(d)


draw up an annual estimate of expenditure and revenue for the Foundation and forward it to the Commission;










(e)

adopt the Foundation's definitive budget and establishment plan following completion of the annual budget procedure, in accordance with 

Article 16;









(f)


adopt the Foundation's annual activity report, in accordance with the procedure laid down in Article 13 and send to the institutions and the Member States;










(g)


adopt the Foundation's Rules of Procedure on the basis of a draft submitted by the Director after the Commission has delivered its opinion;










(h)

adopt the financial rules applicable to the Foundation on the basis of a draft submitted by the Director after the Commission has delivered its opinion, in accordance with 

Article 19;









(i)

adopt the procedures for applying Regulation (EC) No 1049/2001, in accordance with 

Article 4 of this Regulation.



Article 10
Director
1.   The Director of the Foundation shall be appointed by the Governing Board 
for a period of five years
 on the basis of a list of 
at least three
 candidates 
submitted
 by the Commission 



. Before being appointed, the candidate selected by the Governing Board 
shall
 be invited to make a statement before the competent committee(s) of the European Parliament and answer questions put by its/their members.
In the course of the nine months preceding the end of this period, the Commission shall undertake an evaluation 
on the basis of a prior evaluation by external experts, which
 shall assess in particular:






—


the performance of the Director; and











—


the Foundation's duties and requirements in the coming years.




The Governing Board, acting on a proposal by the Commission, taking into account the evaluation report and only in those cases where it can be justified by the duties and requirements of the Foundation, may extend the term of office of the Director once for not more than three years.
The Governing Board shall inform the European Parliament about its intention to extend the Director's term of office. Within a month before the extension of his/her term of office, the Director may be invited to make a statement before the competent committee(s) of the European Parliament and answer questions put by its/their members.
If the term of office is not extended, the Director shall remain in office until the appointment of his/her successor.
2.   The Director shall be appointed on the basis of merit, administrative and management skills and expertise and experience in the field of work of the Foundation.
3.   The Director shall be the legal representative of the Foundation.
4.   The Director shall have the following functions and powers:






(a)



to prepare, on the basis of general guidelines established by the Commission, the annual work programme, the draft estimate of expenditure and revenue of the Foundation, its Rules of Procedure and those of the Governing Board, its financial rules and the work of the Governing Board, and any ad hoc working parties convened by the Governing Board;










(b)


to take part, with no voting right 

, in meetings of the Governing Board;









(c)



to implement the decisions of the Governing Board;










(d)



to implement the Foundation's annual work programme and respond to requests for assistance from the Commission;










(e)


to perform the duties of authorising officer, in accordance with Articles 33 to 42 of 

Regulation (EC, Euratom) No 2343/2002;









(f)



to implement the Foundation's budget;










(g)



to put in place an effective monitoring system allowing the regular evaluations referred to in Article 24 to be carried out and, on that basis, to prepare a draft annual report on the Foundation's activities;










(h)



to present that annual report to the European Parliament;










(i)



to manage all staff-related matters, and, in particular, exercise the powers provided for in Article 21;










(j)



to define the Foundation's organisational structure and submit it to the Governing Board for approval;










(k)


to represent the Foundation before the European Parliament and the Council in accordance with 

Article 18.



5.   The Director shall be accountable for his/her actions to the Governing Board, which may remove the Director from his/her duties before his/her term of office has expired on a proposal of the Commission.
Article 11
Public interest and independence
The members of the Governing Board and the Director shall act in the public interest and independently of any external influence. To this end, they shall make a written declaration of commitment and a written declaration of interests every year.
Article 12
Annual work programme
1.   The annual work programme shall comply with the subject matter, scope and functions of the Foundation referred to in Articles 1 and 2 .
2.   The annual work programme shall be drafted within the framework of a four-year 
multiannual work programme
 in cooperation with the Commission services and with regard to the external relations priorities for the countries and regions concerned 
and on the basis of experience acquired in education and training within the Community
.
3.   The projects and activities in the annual work programme shall be accompanied by an estimate of the necessary expenditure and by allocations of staff and budgetary resources.
4.   The Director shall submit the draft work programme to the Governing Board after the Commission has delivered an opinion on it.
5.   The Governing Board shall adopt the draft annual work programme for the following year by 30 November at the latest. The final adoption of the work programme shall take place at the beginning of each year.
6.   Where necessary, the programme may be adapted during the year using the same procedure in order to ensure greater effectiveness of Community policies.
Article 13
Annual activity report
1.   The Director shall report to the Governing Board on the performance of his/her duties in the form of an annual activity report.
2.   The annual activity report shall contain financial and management information indicating the results of operations by reference to 
the annual work programme and
 the objectives set, the risks associated with 
those
 operations, the use made of the resources provided and the way the internal control system functioned.
3.   The Governing Board shall draft an analysis and an assessment of the annual activity report on the previous financial year.
4.   The Governing Board shall adopt the Director's annual activity report and forward it, together with its analysis and an assessment, to the 
competent bodies of the
 European Parliament, the Council, the Commission, the Court of Auditors and the European Economic and Social Committee by 15 June at the latest. The report shall also be forwarded to the Member States and, for information, to the partner countries.


5.
   
The Director of the Foundation shall present the Foundation's annual activity report to the relevant committees of the European Parliament and preparatory bodies of the Council.


Article 14
Links with other Community actions
The Commission, in cooperation with the Governing Board, shall ensure consistency and complementarity between the work of the Foundation and other actions at Community level, both within the Community and in assistance to the partner countries.
Article 15
Budget
1.   Estimates of all the revenue and expenditure of the Foundation shall be prepared for each financial year and shall be shown in the budget of the Foundation, which shall include an establishment plan, and each financial year shall correspond to the calendar year.
2.   The revenue and expenditure shown in the budget of the Foundation shall be in balance.
3.   The revenue of the Foundation shall comprise, without prejudice to other types of income, a subsidy from the general budget of the European Union (hereinafter referred to as ‘the general budget’), payments made as remuneration for services performed as well as finance from other sources.
4.   The budget shall also include details of any funds made available by the partner countries themselves for projects benefiting from financial assistance from the Foundation.
Article 16
Budgetary procedure
1.   Each year the Governing Board, on the basis of a draft drawn up by the Director, shall produce an estimate of revenue and expenditure for the Foundation for the following financial year. That estimate, which shall include a draft establishment plan, shall be forwarded by the Governing Board to the Commission by 31 March at the latest.
2.   The Commission shall examine the estimate, having regard to the proposed limits of the overall amount available for external actions, and enter in the preliminary draft general budget  the resources it deems necessary for the establishment plan and the amount of the subsidy to be charged to the general budget .
3.   The estimate shall be forwarded by the Commission to the European Parliament and the Council (hereinafter referred to as the ‘budgetary authority’) together with the preliminary draft general budget .
4.   The budgetary authority shall authorise the appropriations for the subsidy to the Foundation.
The budgetary authority shall adopt the establishment plan for the Foundation.
5.   The Foundation's budget and the establishment plan shall be adopted by the Governing Board. They shall become definitive after final adoption of the general budget. If necessary the budget and the establishment plan shall be adjusted accordingly.
6.   The Governing Board shall, as soon as possible, notify the budgetary authority of its intention to implement any project which may have significant financial implications for the funding of the Foundation's budget, in particular any projects relating to property such as the rental or purchase of buildings. It shall inform the Commission thereof.
Where a branch of the budgetary authority has notified its intention to deliver an opinion, it shall forward its opinion to the Governing Board within a period of six weeks from the date of notification of the project.
Article 17
Budget implementation and control
1.   By 1 March at the latest following each financial year, the Foundation's accounting officer shall communicate the provisional accounts to the Commission's accounting officer together with a report on the budgetary and financial management for that financial year. The Commission's accounting officer shall consolidate the provisional accounts of the institutions and decentralised bodies in accordance with Article 128 of the Financial Regulation.
2.   By 31 March at the latest following each financial year, the Commission's accounting officer shall forward the Foundation's provisional accounts to the Court of Auditors, together with a report on the budgetary and financial management for that financial year. The report on the budgetary and financial management for that financial year shall also be forwarded to the European Parliament and the Council.
3.   The Director shall implement the budget of the Foundation.
4.   On receipt of the Court of Auditors' observations on the Foundation's provisional accounts, pursuant to Article 129 of the Financial Regulation, the Director shall draw up the Foundation's final accounts under his/her own responsibility and forward them to the Governing Board for its opinion.
5.   The Governing Board shall deliver an opinion on the Foundation's final accounts.
6.   The Director shall, by 1 July at the latest following each financial year, forward those final accounts to the European Parliament, the Council, the Commission and the Court of Auditors, together with the Governing Board's opinion.
7.   The final accounts shall be published.
8.   The Foundation's Director shall send the Court of Auditors a reply to its observations by 30 September at the latest. He/she shall also send that reply to the Governing Board.
9.   The Director shall submit to the European Parliament, at the latter's request, any information required for the smooth application of the discharge procedure for the financial year in question, as laid down in Article 146(3) of the Financial Regulation.
10.   The European Parliament, on a recommendation from the Council acting by a qualified majority, shall, before 30 April of year N + 2, give a discharge to the Director in respect of the implementation of the budget for year N.
11.   The Director shall take all appropriate steps required, if necessary, by the observations accompanying the decision giving discharge.
Article 18
European Parliament and Council
Without prejudice to the controls referred to above and, in particular the budgetary and discharge procedures, the European Parliament or the Council may ask at any time



 for a hearing with the Director on any subject relating to the Foundation's activities.
Article 19
Financial Rules
1.   The financial rules applicable to the Foundation shall be adopted by the Governing Board after the Commission has been consulted. They may not depart from Regulation (EC, Euratom) No 2343/2002 unless specifically required for the Foundation's operation and with the Commission's prior consent.
2.   In accordance with Article 133(1) of the Financial Regulation, the Foundation shall apply the accounting rules adopted by the Commission's accounting officer so that its accounts can be consolidated with those of the Commission.
3.   Regulation (EC) No 1073/1999 shall apply to the Foundation in its entirety.
4.   The Foundation shall 
respect
 the Interinstitutional Agreement of 25 May 1999
between the European Parliament, the Council of the European Union and the Commission of the European Communities concerning internal investigations by the European Anti-fraud Office (OLAF) (17).
 The Governing Board shall



 adopt the necessary measures to help OLAF carry out 
such
 internal investigations.
Article 20
Privileges and immunities
The Protocol on the privileges and immunities of the European Communities shall apply to the Foundation.
Article 21
Staff rules
The staff of the Foundation shall be governed by the rules and regulations applicable to the officials and other servants of the European Communities.
The Foundation shall exercise over its staff the powers devolved to the appointing authority.
The Governing Board shall, in agreement with the Commission, adopt the appropriate implementing rules in accordance with the arrangements provided for in Article 110 of the Staff Regulations of Officials of the European Communities and Article 127 of the Conditions of Employment of Other Servants of the European Communities.
The Governing Board may adopt provisions to allow national experts from Member States or partner countries to be employed on secondment to the Foundation.
Article 22
Liability
1.   The contractual liability of the Foundation shall be governed by the law applicable to the contract in question.
2.   As regards of non-contractual liability, the Foundation shall, in accordance with the general principles common to laws of the Member States, make good any damage caused by the Foundation or its servants in the performance of their duties.
The Court of Justice shall have jurisdiction in disputes relating to compensation for any such damage.
3.   The personal liability of servants towards the Foundation shall be governed by the relevant provisions applying to the staff of the Foundation.
Article 23
Participation of third countries
1.   The Foundation shall be open to the participation of countries which are not members of the European Community and which share the commitment of the Community and the Member States to the provision of aid in the human 
capital development
 field to the partner countries defined in Article 1, under arrangements to be laid down in agreements between the Community and themselves, following the procedure laid down in Article 300 of the Treaty.
The agreements shall, inter alia, specify the nature and extent of and the detailed rules for the participation by those countries in the work of the Foundation including provisions on financial contributions and staff. Such agreements shall neither provide for third countries to be represented on the Governing Board with voting rights nor contain provisions that are not in accordance with the staff rules set out in Article 21 .
2.   Participation of such countries in ad hoc working parties may be decided as necessary by the Governing Board without the need for an agreement.
Article 24
Evaluation
1.   In accordance with Article 25(4) of Regulation (EC, Euratom) No 2343/2002, the Foundation shall regularly carry out ex ante and ex post evaluations of its activities where these necessitate significant expenditure. The Governing Board shall be notified of the results of those evaluations.
2.   The Commission shall, in consultation with the Governing Board, conduct an evaluation of the implementation of this Regulation, the results obtained by the Foundation and its working methods in line with the objectives, mandate and functions defined herein every four years. The evaluation shall be carried out 
by
 external experts. The Commission shall present the results of the evaluation to the European Parliament, the Council and the European Economic and Social Committee.
3.   The Foundation shall take all appropriate steps to remedy any problems which may come to light in the process of evaluation.
Article 25
Review
Following evaluation, the Commission shall present, if appropriate, a proposal for the revision of the provisions of this Regulation. If the Commission considers that the existence of the Foundation is no longer justified with regard to the objectives assigned to it, it may propose that this Regulation be repealed.
Article 26
Repeal
Regulations (EEC) No 1360/90, (EC) No 2063/94, (EC) No 1572/98, (EC) No 1648/2003 and Article 16 of Regulation (EC) No 2666/2000, as listed in Annex I, shall be repealed.
References to the repealed Regulations shall be construed as references to this Regulation and shall be read in accordance with the correlation table in Annex II.
Article 27
Entry into force
This Regulation shall enter into force on the 20th day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at …, on …

For the European Parliament

The President



For the Council

The President





(1)  OJ C …

(2)  OJ C …

(3)  Position of the European Parliament of 22 May 2008.

(4)  OJ L 131, 23.5.1990, p. 1. Regulation as last amended by Regulation (EC) No 1648/2003  (OJ L 245, 29.9.2003, p. 22).

(5)  OJ C 323, 30.11.1993, p. 1.

(6)  OJ L 375, 23. 12. 1989, p. 11.

(7)  OJ L 216, 20.8.1994, p. 9.

(8)  OJ L 206, 23.7.1998, p. 1.

(9)  OJ L 306, 7.12.2000, p. 1. Regulation as last amended by Regulation (EC) No 2112/2005 (OJ L 344, 27.12.2005, p. 23).


(10)  OJ L 210, 31.7.2006, p. 82.

(11)  OJ L 310, 9.11.2006, p. 1.

(12)  OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regulation (EC) No 1525/2007 (OJ L 343, 27.12.2007, p. 9).


(13)  OJ L 357, 31.12.2002, p. 72.

(14)  OJ L 136, 31.5.1999, p. 1.

(15)  OJ L 145, 31.5.2001, p. 43.

(16)  OJ L 8, 12.1.2001, p. 1.

(17)  

OJ L 136, 31.5.1999, p. 15.



ANNEX I
REPEALED REGULATION AND SUCCESSIVE AMENDMENTS
Council Regulation (EEC) No 1360/90 of 7 May 1990
(OJ L 131, 23.5.1990, p. 1)
Council Regulation (EC) No 2063/94 of 27 July 1994
(OJ L 216, 20.8.1994, p. 9)
Council Regulation (EC) No 1572/98 of 17 July 1998
(OJ L 206, 23.7.1998, p. 1)
Article 16 of the Council Regulation (EC) No 2666/2000 of 5 December 2000
(OJ L 306, 7.12.2000, p. 1)
Council Regulation (EC) No 1648/2003 of 18 June 2003
(OJ L 245, 29.9.2003, p. 22)


ANNEX II
CORRELATION TABLE






Regulation (EEC) No 1360/90


This Regulation




Article 1 introductory words


Article 1 introductory words




Article 1 end of introductory words


–




Article 1 first to fourth intent


–




Article 1 second sentence


–




–


Article 1 end of introductory words




–


Article 1 (a) to (c)





–


Article 1 second sentence




Article 2


–




Article 3 introductory words


Article 2 introductory words




Article 3 a) to g)


–




–


Article 2 (a) to (f)





Article 3 h)


Article 2 (g)





Article 4(1)


Article 3(1)




–


Article 3(2)




Article 4(3) first sentence


Article 3(3) first sentence




–


Article 3(3) second sentence




Article 4(2)


–




–


Article 3(4) and (5)




–


Article 4(1) to (3)




Article 4a(1)


Article 4(4) first subparagraph





Article 4a(2)


Article 4(4) second subparagraph





–


Article 5




Article 4a(3)


Article 6




Article 5(1)


Article 7(1)




Article 5(2)


Article 7(2) first and second subparagraphs





–


Article 7(2) third and fourth subparagraphs





Article 5(3)


Article 7(3)




Article 5(4) first subparagraph



Article 7(4) first sentence




–


Article 7(4) second sentence




Article 5(4) second subparagraph



Article 7(5)




Article 5(4) third and fourth subparagraphs



Article 8(1) first subparagraph





–


Article 8(1) second subparagraph





Article 5(4) last subparagraph



Article 8(1) last subparagraph





Article 5(5) and (6)


Article 8(2) and (3)




Article 5(7) to (10)


–




–


Article 9




Article 6


–




Article 7(1) first words


Article 10(1) first words




Article 7(1) end of first sentence and second sentence


–




–


Article 10(1) end of first sentence, second sentence and second to fourth subparagraphs





–


Article 10(2)




Article 7(2)


Article 10(5) first sentence




Article 7(3)


Article 10(3)




–


Article 10(4) points (a) to (k)





–


Article 11




–


Article 12




–


Article 13




Article 8 (partly)


Article 14




Article 9


Article 15




Article 10(1)


Article 16(1)




–


Article 16(2)




Article 10(2)


Article 16(3)




Article 10(3)


–




Article 10(4) to (6)


Article 16(4) to (6)




Article 11(1)


Article 17(3)




Article 11(2) and (3)


Article 17(1) and (2)




Article 11(4) to (10)


Article 17(4) to (10)




–


Article 17(11)




–


Article 18




Article 12


Article 19(1)




–


Article 19(2) to (4)




Article 13


Article 20




Article 14


Article 21 first and second sentences and first words of third sentence




–


Article 21 last words of third sentence and last sentence




Article 15


Article 22




Article 16(1)


Article 23(1) first subparagraph and first sentence of second subparagraph




–


Article 23(1) last sentence of second subparagraph




Article 16(2)


Article 23(2)




–


Article 24(1)




Article 17 (partly)


Article 24(2)




–


Article 24(3)




Article 18


–




–


Article 25




–


Article 26




Article 19


Article 27




–


Annex