Common Position (EC) No 27/2008 of 18 November 2008 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to the adoption of a Regulation of the European Parliament and of the Council establishing a European Training Foundation (recast)
Date: 2008-12-05
Institutions: Council of the European Union
Subjects: European Training Foundation, action programme, budget estimate, development region, improvement of housing

5.12.2008

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III

(Preparatory Acts)

COUNCIL

COMMON POSITION (EC) No 27/2008

adopted by the Council on 18 November 2008

with a view to the adoption of Regulation (EC) No …/2008 of the European Parliament and of the
Council of … establishing a European Training Foundation

(recast)

(2008/C 310 E/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 150 thereof,

establishing the European

Having regard to the proposal from the Commission,

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

Having consulted the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty (2),

Whereas:

(1)

(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 estab-
lishment of a European Training Foundation for Central
from the
and Eastern Europe, acting on a proposal
Commission. To this end on 7 May 1990 the Council
adopted Regulation (EEC) No 1360/90.

Council Regulation (EEC) No 1360/90 of 7 May 1990
establishing a European Training Foundation (3) has been
substantially amended several times. Since further amend-
ments are to be made, it should be recast in the interests
of clarity.

(3)

On 18 December 1989 the Council adopted Regulation
(EEC) No 3906/89 on economic aid to the Republic

of Hungary and the Polish People's Republic (4) which
provided for aid in areas including training to support
the process of economic and social reform in Hungary
and Poland.

(4)

(5)

(6)

The Council subsequently extended such aid to other
countries of Central and Eastern Europe under relevant
legal acts.

On 27 July 1994 the Council adopted Regulation (EC)
No 2063/94 (5) amending Regulation (EEC) No 1360/90,
with a view to including in the activities of the European
Training Foundation the States receiving assistance under
Regulation (Euratom, EEC) No 2053/93 of 19 July 1993
concerning the provision of
technical assistance to
economic reform and recovery in the independent States
of the former Soviet Union and Mongolia (6) (the TACIS
Programme).

On 17 July 1998 the Council adopted Regulation (EC)
No 1572/98 (7) 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 economic and social structures pursuant
to Council Regulation (EC) No 1488/96 of 23 July 1996
on financial and technical measures
to accompany
(MEDA) the reform of economic and social structures in
the framework of the Euro-Mediterranean partnership (8).

(1) OJ C …
(2) Opinion of

the European Parliament of 22 May 2008 (not yet
published in the Official Journal), Council Common Position of 18
November 2008 and Position of the European Parliament of …(not yet
published in the Official Journal)

(3) OJ L 131, 23.5.1990, p. 1.

(4) OJ L 375, 23.12.1989, p. 11.
(5) OJ L 216, 20.8.1994, p. 9.
(6) OJ L 187, 29.7.1993, p. 1.
(7) OJ L 206, 23.7.1998, p. 1.
(8) OJ L 189, 30.7.1996, p. 1. Regulation repealed by Regulation (EC)

No 1638/2006.

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(7)

(8)

(9)

(10)

(11)

(12)

(13)

On 5 December 2000 the Council adopted Regulation
(EC) No 2666/2000 on assistance for Albania, Bosnia
and Herzegovina, Croatia, the Federal Republic of Yugo-
slavia and the Former Yugoslav Republic of Macedonia (1)
amending Regulation (EEC) No 1360/90 with a view to
including in the activities of the European Training Foun-
dation the Western Balkan States covered by Regulation
(EC) No 2666/2000.

the

instrument

External assistance programmes relating to the countries
covered by the activities of the European Training Foun-
dation are to be replaced by new external relations policy
instruments, mainly
established by
Council Regulation (EC) No 1085/2006 of 17 July 2006
establishing an Instrument for Pre-Accession Assistance
(IPA) (2) 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 (3).

its external

relations policy,

By supporting human capital development in the context
of
the European Union
contributes to economic development in these countries
by providing the skills necessary to foster productivity
and employment and supports
cohesion by
promoting civic participation.

social

In the context of the efforts of these countries 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.

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

In order to make its contribution, the European Training
Foundation will need to call upon the experience gained
within the EU in relation to education and training in a
lifelong learning perspective and upon those of its institu-
tions which are involved in this activity.

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.

(1) OJ L 306, 7.12.2000, p. 1.
(2) OJ L 210, 31.7.2006, p. 82.
(3) OJ L 310, 9.11.2006, p. 1.

(14)

(15)

(16)

(17)

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

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

The European Training Foundation should have close
links with the European Centre for the Development of
Vocational Training (Cedefop), 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 activ-
ities.

The European Training Foundation should be open to the
participation of countries which are not Member States
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.

(18) All Member States,

the European Parliament and the
Commission should be represented on a Governing
Board in order to oversee effectively the functions of the
Foundation.

(19)

(20)

In order to guarantee the full autonomy and indepen-
dence of the Foundation, it should be granted an autono-
mous budget the revenues of which come primarily from
a Community contribution. 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.

The Foundation is a body set up by the Communities
within the meaning of Article 185(1) of Council Regu-
lation (EC, Euratom) No 1605/2002 of 25 June 2002 on
the Financial Regulation applicable to the general budget
of the European Communities (4) (hereinafter referred to
as the ‘Financial Regulation’) and should adopt its finan-
cial rules accordingly.

(4) OJ L 248, 16.9.2002, p. 1.

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(21)

(22)

(23)

(24)

(25)

(26)

Commission Regulation (EC, Euratom) No 2343/2002 of
19 November 2002 on the framework Financial Regu-
lation for the bodies referred to in Article 185 of Council
Regulation (EC, Euratom) No 1605/2002 (1) (hereinafter
referred to as
the ‘Framework Financial Regulation’)
should apply to the Foundation.

In order to combat fraud, corruption and other unlawful
of Regulation (EC) No
activities,
the
1073/1999 of
the
Council of 25 May 1999 concerning investigations
conducted by the European Anti-Fraud Office (OLAF) (2)
should apply without restriction to the Foundation.

provisions
the European Parliament and of

Regulation (EC) No 1049/2001 of the European Parlia-
ment and of the Council of 30 May 2001 regarding
public access
to European Parliament, Council and
Commission documents (3) should apply to the Founda-
tion.

Regulation (EC) No 45/2001 of the European Parliament
and of the Council of 18 December 2000 on the protec-
tion of
individuals with regard to the processing of
personal data by the Community institutions and bodies
and on the free movement of such data (4) should apply
to the processing of personal data by the Foundation.

Pursuant to a Decision of 29 October 1993, taken by
common agreement between the representatives of the
Governments of the Member States, meeting at Head of
State and Government level, on the location of the seats
the European
of certain bodies and departments of
Communities and of Europol (5), the Foundation has its
seat in Turin, Italy.

Since the objective of this Regulation, namely assisting
third countries in the field of human capital develop-
ment, 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 subsidiarity as set out in Article 5
of the Treaty. In accordance with the principle of propor-
tionality, as set out in that Article, this Regulation does
not go beyond what is necessary in order to achieve that
objective.

(27)

This Regulation respects the fundamental rights recog-
nised by the Charter of Fundamental Rights of the Euro-
pean Union, in particular Article 43 thereof,

(1) OJ L 357, 31.12.2002, p. 72.
(2) OJ L 136, 31.5.1999, p. 1.
(3) OJ L 145, 31.5.2001, p. 43.
(4) OJ L 8, 12.1.2001, p. 1.
(5) OJ C 323, 30.11.1993, p. 1.

HAVE ADOPTED THIS REGULATION:

Article 1

Objective and scope

1.
The European Training Foundation (hereinafter referred to
as the ‘Foundation’) is hereby established. The objective of the
Foundation 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
that
includes an element of human capital development, and as
far as available resources allow.

international agreement

The countries referred to in points (a), (b) and (c) shall be desig-
nated as the ‘partner countries’.

2.
For the purpose of this Regulation, ‘human capital devel-
opment’ shall be defined as work which contributes to the life-
long development of
and competences
individuals'
through the improvement of vocational education and training
systems.

skills

3.
In order to achieve its objective,
provide assistance to partner countries in:

the Foundation may

(a) facilitating adaptation to industrial changes,
through vocational training and retraining;

in particular

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

(c) facilitating access to vocational training and encouraging the
mobility of instructors and trainees and particularly young
people;

(d) stimulating cooperation on training between educational

establishments and firms;

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

(f) increasing the adaptability of workers, particularly through
increased participation in education and training in a life-
long learning perspective;

(g) designing, introducing and implementing reforms in educa-
tion and training systems, in order to develop employability
and labour market relevance.

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Article 2

Functions

For the purpose of achieving the objective set out in Article 1
(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 func-
tions:

(a) to provide information, policy analyses 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 in

building 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;

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

The Foundation shall be subject

5.
to the administrative
review of the European Ombudsman, pursuant to the condi-
tions set out in Article 195 of the Treaty.

6.
The Foundation may establish co-operation agreements
with other relevant bodies active in the human capital develop-
ment field in the EU and worldwide. 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

(e) to support the delivery of Community assistance to partner

countries in the field of human capital development;

The Foundation shall act with a high level of transparency

1.
and comply, in particular, with paragraphs 2 to 4.

(f) to disseminate information and encourage networking and
the exchange of experience and good practice between the
EU and partner countries and amongst partner countries in
human capital development issues;

(g) to contribute, at the Commission's request, to the analysis
training assistance to the

the overall effectiveness of

of
partner countries;

(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

The Foundation shall make public within six months of

2.
setting up its Governing Board:

(a) the rules of procedure of the Foundation and those of the

Governing Board;

(b) the annual activity report of the Foundation.

3.
In appropriate cases, the Governing Board may authorise
representatives of interested parties to attend meetings of the
Foundation's bodies in the capacity of observers.

Regulation (EC) No 1049/2001 shall apply to documents

4.
held by the Foundation.

The Governing Board shall adopt practical arrangements for
applying that Regulation.

The Foundation shall have legal personality and shall
1.
enjoy in each of the Member States the most extensive legal
capacity accorded to legal persons under its laws. The Founda-
tion may,
in particular, acquire or dispose of movable and
immovable property and may be a party to legal proceedings.
The Foundation shall be non-profit making.

2.

The Foundation shall have its seat in Turin, Italy.

Article 5

Confidentiality

1. Without prejudice to Article 4(4), the Foundation shall not
divulge to third parties confidential information it has received
for which confidential treatment has been requested and is justi-
fied.

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 (Cedefop) in
the framework of a joint annual work programme annexed to
the annual work programme of each of the two agencies with
the objective of promoting synergy and complementarity
between their activities.

2.
The members of the Governing Board and the Director
shall be subject to the obligation of professional secrecy referred
to in Article 287 of the Treaty.

3.
The information gathered by the Foundation in accordance
with its establishing act shall be subject to Regulation (EC)
No 45/2001.

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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 one representative of each Member State, three representa-
tives of the Commission, as well as three non-voting 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 their alternates on the
Governing Board.

The representatives of the partner countries shall be appointed
by the Commission from a list of candidates proposed by those
countries on the basis of their experience and expertise in the
Foundation's areas of work.

The Member States, the European Parliament and the Commis-
sion shall endeavour to achieve a balanced representation of
men and women on the Governing Board.

The term of office of representatives shall be five years. It

3.
shall be renewable once.

4.
The Governing Board shall be chaired by one of the repre-
sentatives of the Commission. The term of office of the Chair-
person shall expire when his or her 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

The

representatives of

1.
the Member States on the
Governing Board shall each have one vote. The representatives
of the Commission shall have one shared vote.

ensure access to, and participation in, the work of the Founda-
tion 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 the members of the Governing
Board entitled to vote.

The Chairperson shall be
informing the
Governing Board of other Community activities relevant to its
work and the Commission's expectations concerning the Foun-
dation's activities in the forthcoming year.

responsible

for

Article 9

Powers of the Governing Board

The Governing Board shall have the following functions and
powers:

(a) to appoint and, where necessary, dismiss the Director in

accordance with Article 10(5);

(b) to exercise disciplinary authority over the Director;

(c) to adopt the Foundation's annual work programme on the
basis of a draft submitted by the Director after the Commis-
sion has delivered its opinion,
in accordance with
Article 12;

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

(e) to adopt the Foundation's draft establishment plan and the
definitive budget following completion of the annual budget
procedure, in accordance with Article 16;

(f) to adopt the Foundation's annual activity report, in accord-
ance with the procedure laid down in Article 13 and send it
to the Community institutions and the Member States;

(g) to 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) to 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) to adopt

the procedures

for applying Regulation (EC)
No 1049/2001, in accordance with Article 4 of this Regu-
lation.

Article 10

Director

Decisions of the Governing Board shall require a two-thirds
majority of its members 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, rules governing the
languages of the Foundation, taking into account the need to

1.
The Director of the Foundation shall be appointed by the
Governing Board for a period of five years from 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.

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In the course of the last nine months of that five-year period,
the Commission shall, on the basis of a prior evaluation by
external experts, undertake an evaluation which shall assess, in
particular:

— the performance of the Director,

— 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 of
In the
its intention to extend the Director's term of office.
month before the extension of his/her
the
Director may be invited to make a statement before the compe-
tent committee(s) of the European Parliament and answer ques-
tions put by its/their members.

term of office,

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 experi-
ence in the field of work of the Foundation.

The Director shall be the legal representative of the Foun-

3.
dation.

The Director shall have the following functions and

4.
powers:

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

rules, and the work of

its draft

financial

(b) to participate, without the right to vote, 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 Commis-
sion;

(e) to perform the duties of authorising officer, in accordance
with Articles 33 to 42 of the Framework Financial Regu-
lation;

(f) to implement the Foundation's budget;

(g) to put in place an effective monitoring system to enable the
regular evaluations referred to in Article 24 to be carried
out and, on this basis, prepare a draft annual activity report;

(h) to present the annual activity report to the European Parlia-

ment;

(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.

The Director shall be accountable for his/her actions to
5.
the Governing Board, which may, on a proposal
from the
Commission, remove the Director from office before his/her
term of office has expired.

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 influ-
ence. 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 be consistent with the
objective, scope and functions of the Foundation defined 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 priorities of external
relations with the countries and
regions concerned and on the basis of experience acquired in
education and training within the Community.

The projects and activities set out in the annual work
3.
programme shall be accompanied by an estimate of the neces-
sary expenditure and by allocations of staff and budgetary
resources.

The Director

4.
annual work
submit
programme to the Governing Board after the Commission has
delivered an opinion on it.

the draft

shall

The Governing Board shall adopt the draft annual work
5.
programme by 30 November of the preceding year at the latest.
The final adoption of the annual work programme shall take
place at the beginning of the financial year in question.

6. Where necessary, the annual work 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.

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2.
The annual activity report shall contain financial and
management information indicating the results of operations by
reference to the annual work programme and to the objectives
set, the risks associated with those operations, the use made of
the resources provided and the way the internal control system
has functioned.

The Governing Board shall draft an analysis and an assess-
3.
ment of the draft annual activity report on the previous finan-
cial year.

The Governing Board shall adopt

4.
the annual activity
report and forward it together with its analysis and an assess-
ment to the competent bodies of the European Parliament, the
Council, the Commission, the Court of Auditors and the Euro-
pean Economic and Social Committee by 15 June of
the
following year at the latest. This report shall also be forwarded
to the Member States and, for information, to the partner coun-
tries.

5.
The Director 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 the provision of assistance to the
partner countries.

Article 15

Budget

1.
Estimates of all the revenue and expenditure of the Foun-
dation shall be prepared for each financial year and shall be
shown in the budget of the Foundation, which shall include an
establishment plan. The financial year shall correspond to the
calendar year.

revenue and expenditure for the Foundation for the following
financial year. This estimate, which shall include a draft estab-
lishment plan, shall be forwarded by the Governing Board to
the Commission by 31 March at the latest.

The Commission shall examine the estimate, having regard
2.
to the proposed limits of
the overall amount available for
external actions, and enter in the preliminary draft general
budget of the European Union the resources it deems necessary
for the establishment plan and the amount of the subsidy to be
charged to the general budget of the European Union.

The estimate shall be forwarded by the Commission to the
3.
European Parliament and the Council
together
referred to as the ‘budgetary authority’) together with the preli-
minary draft general budget of the European Union.

(hereinafter

The budgetary authority shall authorise the appropriations

4.
for the subsidy to the Foundation.

The budgetary authority shall adopt the establishment plan for
the Foundation.

The budget of the Foundation shall be adopted by the
5.
Governing Board. It shall become final following final adoption
of the general budget of the European Union. Where appro-
priate, it shall be adjusted accordingly.

The Governing Board shall, as soon as possible, notify the
6.
budgetary authority of its intention to implement any project
which may have significant
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.

implications

financial

for

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

The revenue and expenditure shown in the budget of the

2.
Foundation shall be in balance.

Budget implementation and control

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, 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 bene-
fiting from financial assistance from the Foundation.

1.
By 1 March at the latest following each financial year, the
Foundation's accounting officer shall communicate the provi-
sional accounts to the Commission's accounting officer together
with a report on budgetary and financial management for that
financial year. The Commission's accounting officer shall conso-
lidate the provisional accounts of the institutions and decentra-
lised bodies in accordance with Article 128 of the Financial
Regulation.

Article 16

Budgetary procedure

1.
Each year, on the basis of a draft drawn up by the
Director, the Governing Board shall produce an estimate of

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 budgetary and financial management for that financial
year. The report on budgetary and financial management for
that financial year shall also be forwarded to the European
Parliament and the Council.

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The Director shall implement the budget of the Founda-

3.
tion.

Regulation (EC) No 1073/1999 shall apply to the Founda-

3.
tion in its entirety.

On receipt of the Court of Auditors' observations on the
4.
Foundation's provisional accounts, pursuant to Article 129 of
the Financial Regulation, the Director shall draw up the Founda-
tion's final accounts under his/her own responsibility and
forward them to the Governing Board for an opinion.

The Governing Board shall deliver an opinion on the

5.
Foundation's final accounts.

The Director shall, by 1 July at the latest following each
6.
financial year, forward these final accounts to the European
Parliament, the Council, the Commission and the Court of Audi-
tors, together with the Governing Board's opinion.

7.

The final accounts shall be published.

8.
The Director shall send the Court of Auditors a reply to
its observations by 30 September following each financial year
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 Regu-
lation.

The European Parliament, on a recommendation from
10.
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.

The Director shall take all appropriate steps called for by
the

the decision giving

accompanying

11.
the observations
discharge.

Article 18

European Parliament and Council

Without prejudice to the controls referred to in Article 17 and,
in particular the budgetary and discharge procedures, the Euro-
pean Parliament or the Council may ask at any time to hear 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 the Framework Financial
the Foundation's
Regulation unless specifically required for
operation and with the Commission's prior consent.

2.
In accordance with Article 133(1) of the Financial Regu-
lation, the Foundation shall apply the accounting rules adopted
by the Commission's accounting officer so that the accounts of
the Foundation can be consolidated with those of the Commis-
sion.

The Foundation shall respect the Interinstitutional Agree-
4.
ment of 25 May 1999 between the European Parliament, the
Council and the Commission concerning internal investigations
by the European Anti-fraud Office (OLAF) (1). 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 regulations

1.
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

2.
devolved to the Appointing Authority.

The Governing Board shall,

the appropriate implementing rules

in agreement with the
3.
Commission, adopt
in
accordance with the arrangements provided for in Article 110
of the Staff Regulations of Officials of the European Commu-
nities and Article 127 of the Conditions of Employment of
Other Servants of the European Communities.

The Governing Board may adopt provisions to allow
4.
national experts from Member States or partner countries to be
employed on secondment to the Foundation.

Article 22

Liability

The contractual

liability of
1.
governed by the law applicable to the contract in question.

the Foundation shall be

In the case of non-contractual

2.
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 of the European Communities 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.

(1) OJ L 136, 31.5.1999, p. 15.

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Article 23

Participation of third countries

The Foundation shall be open to the participation of coun-
1.
the Community and
tries which are not Member States of
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
(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 of these countries in
the work of the Foundation, including provisions on financial
contributions and staff. Such agreements may not provide for
third countries to be represented on the Governing Board with
voting rights or contain provisions not in accordance with the
staff regulations referred to in Article 21 of this Regulation.

2.
The participation of third countries in ad hoc working
parties may be decided upon as necessary by the Governing
Board, without an agreement as referred to in paragraph 1.

Article 24

Evaluation

In accordance with Article 25(4) of the Framework Finan-
1.
cial Regulation, 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 these evaluations.

2.
The Commission shall, every four years, in consultation
with the Governing Board, conduct an evaluation of the imple-
mentation of this Regulation, the results obtained by the Foun-
the objectives,
dation and its working methods in light of
mandate and functions defined in this Regulation. The evalua-

tion shall be carried out by external experts. The Commission
shall present the results of the evaluation to the European Parlia-
ment,
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 evalua-
tion.

Article 25

Review

Following its evaluation, the Commission shall present, where
necessary, a proposal for the revision 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

Council Regulations (EEC) No 1360/90, (EC) No 2063/94, (EC)
No 1572/98, (EC) No 1648/2003 and Article 16 of Council
Regulation (EC) No 2666/2000, as listed in Annex I to this
Regulation, are repealed.

References to the repealed Regulations shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table set out in Annex II to this Regulation.

Article 27

Entry into force

This Regulation shall enter into force on the 20th day following
the European
that of its publication in the Official
Union.

Journal of

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

Done at , …

For the European Parliament

The President

…

For the Council

The President

…

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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)

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ANNEX II

Correlation table

Regulation (EEC) No 1360/90

This Regulation

Article 1 first paragraph

Article 1 first to fourth intent

Article 1 second sentence

–

–

–

Article 2

Article 3 first paragraph

Article 3 points (a) to (g)

–

Article 3 point (h)

Article 4(1)

–

Article 4(3) first sentence

–

Article 4(2)

–

–

Article 4a(1)

Article 4a(2)

–

Article 4a(3)

Article 5(1)

Article 5(2)

–

Article 5(3)

Article 5(4) first subparagraph

–

Article 1(1) introductory words

–

–

Article 1(1) points (a) to (c)

Article 1(1) second subparagraph

Article 1(2) to (3)

–

Article 2 first paragraph

–

Article 2 points (a) to (f)

Article 2 point (g)

Article 3(1)

Article 3(2)

Article 3(3) first sentence

Article 3(3) second sentence

–

Article 3(4) and (5)

Article 4(1) to (3)

Article 4(4) first subparagraph

Article 4(4) second subparagraph

Article 5

Article 6

Article 7(1)

Article 7(2) first and second subparagraphs

Article 7(2) third and fourth subparagraphs

Article 7(3)

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 5(4) last subparagraph

Article 5(5) and (6)

Article 5(7) to (10)

–

Article 6

Article 7(1) first sentence

Article 7(1) second sentence

–

–

Article 7(2)

Article 8(1) second subparagraph

Article 8(1) last subparagraph

Article 8(2) and (3)

–

Article 9

–

Article 10(1) first sentence

–

Article 10(1) second sentence and second to fourth sub-
paragraphs

Article 10(2)

Article 10(5) first sentence

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Regulation (EEC) No 1360/90

This Regulation

Article 7(3)

–

–

–

–

Article 8

Article 9

Article 10(1)

–

Article 10(2)

Article 10(3)

Article 10(4) to (6)

Article 11(1)

Article 11(2) and (3)

Article 11(4) to (10)

–

–

Article 12

–

Article 13

Article 14

–

Article 15

Article 16(1)

–

Article 16(2)

–

Article 17

–

Article 18

–

–

Article 19

–

Article 10(3)

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

Article 11

Article 12

Article 13

Article 14

Article 15

Article 16(1)

Article 16(2)

Article 16(3)

–

Article 16(4) to (6)

Article 17(3)

Article 17(1) and (2)

Article 17(4) to (10)

Article 17(11)

Article 18

Article 19(1)

Article 19(2) to (4)

Article 20

Article 21(1)

Article 21(2) to (4)

Article 22

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

Article 23(1) last sentence of the second subparagraph

Article 23(2)

Article 24(1)

Article 24(2)

Article 24(3)

–

Article 25

Article 26

Article 27

Annex

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 25 July 2007 the Commission forwarded its proposal for a recast of the existing regulatory
framework (1) establishing the European Training Foundation (hereinafter referred to as the ‘ETF’) to
the European Parliament and to the Council.

2. From the outset of the procedure both sides acknowledged the need to ensure that the ETF would be
in a position as from 2009 to prepare its work programme on the basis of the renewed Regulation.
Therefore, recourse was made to informal contacts (2) between the three institutions with the aim of
moving forward the legislative process as efficiently as possible.

3. The Parliament adopted its opinion on 22 May 2008. As certain aspects of this proved unacceptable
to the Council, further contacts were held, following which it was agreed that an attempt should be
made to secure an early second reading agreement.

4. The European Economic and Social Committee delivered its opinion on 22 October 2008.

5. On 18 November 2008 the Council adopted its common position in accordance with Article 251 of

the Treaty.

II. ANALYSIS OF THE COMMON POSITION

The common position reflects the agreement reached between the three institutions as a result of the
informal contacts referred to above. Although the common position contains some significant changes
with regard to the Commission's initial proposal — notably in respect of the governance provisions in
Articles 7 to 10 — the essential structure of the proposal remains unaltered. The main changes are
detailed in sections (i), (ii) and (iii) below, while the remaining changes (in Articles 4(2), 12, 13(2), 13(4)
and19(4); and in recital 27) may be regarded as essentially of a technical/editorial nature whose sole
purpose is to improve the clarity of the text.

(i) Scope (Articles 1, 2(a),(c),(d),(e) and (f), 3(6) and 23; recitals 10, 11, 12, 14, 18 and 26)

The Commission proposal provided for a broadening of the Foundation's scope beyond education and
training to include human resources development, primarily on the grounds that the different education
sub-sectors (primary, secondary, vocational, higher, adult, etc.) should now be seen holistically within a
lifelong perspective that embraces them all. Although the Council can agree to some extension of the
scope of the ETF, it is generally felt that the recurrently used term ‘human resources development’ is too
broad in meaning, given the legal base chosen (Article 150 TEC). As a result, the Council prefers to
replace this expression throughout the text by the term ‘human capital development’, as well as to
include in Article 1 a clear definition of the term as used in the Regulation, a definition which is based
almost entirely on Article 150 of the Treaty.

As for the proposed extension of the ETF's geographical scope, an effort has been made — also in
Article 1 — to define more explicitly which countries would be eligible for support and, where appro-
priate, under which conditions.

In addition, the Council has incorporated two amendments adopted by the European Parliament — in
Articles 2(b) and 3(3) — aimed respectively at ensuring that the Foundation would promote knowledge
and analysis of skills needs in national and local labour markets, and that duplication would be avoided
between its activities and those of the complementary European Centre for the Development of Voca-
tional Training (Cedefop).

Finally, the Council has reinstated a reference absent from the Commission proposal to the potential
involvement in the ETF's work of representatives of the social partners at European level.

(1) For the details of the existing regulatory framework, see Annex I to the Council's common position.
(2) In accordance with the provisions of Article 251(2) of the EC Treaty and paragraphs 16 to 18 of the Joint Declaration on

Practical Arrangements for the Co-decision Procedure (OJ C 145, 30.6.2007, p. 5).

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(ii) Governance (Articles 4(3), 7, 8 and 10; recital 19)

The key amendments to the Commission proposal concern the management structure and specifically
the extent to which each of the three main institutions should be represented on the Governing Board.
On the grounds of streamlining the decision-making process, the Commission proposed to reduce the
level of Member State representation to no more than six members, whilst at the same time doubling
the size of its own representation to the same level, i.e. six, putting it on a par with the Council. The
Council considered this proposal very carefully, inter alia in the wider context of the ongoing horizontal
debate on the future governance of European agencies. Although sensitive to some of the Commission's
arguments in favour of a lighter management structure, the Council ultimately considers that the current
situation should be maintained, whereby each Member State is entitled to represent its own views by
having a seat on the Board and the right to vote. In the Council's view, individual representation repre-
sents the best way of enhancing Member States' ownership of the Foundation's work.

Similarly, the Council sees no valid reason to alter the existing arrangements concerning the Commis-
sion's representation on the Board and initially remained opposed to any form of representation by the
European Parliament on the grounds of a potential conflict of interests. Having said this, the Council is
prepared — in a spirit of compromise — to accept the formula ultimately devised, whereby three seats
would be allocated on the Board for ‘non-voting experts appointed by the European Parliament’.

The remaining changes agreed between the Council and Parliament in the area of governance are aimed
at clarifying the status and profile of representatives of the partner countries with which the ETF works,
reaffirming the objective of achieving gender balance on the Governing Board, specifying the voting
arrangements for reaching decisions and convening meetings, as well as laying down some additional
rules concerning the appointment and evaluation of the Foundation's Director.

(iii) Reporting and evaluation (Articles 13(5), 18 and 24)

The Council has supported those Parliamentary amendments aimed at ensuring a regular flow of infor-
mation and feedback to the relevant bodies of both the Parliament and the Council. This may be
provided in the form of both written reports and appearances of the Director before the relevant EP
Committee(s) and Council body.

In addition, the Foundation's activities will be subject to an evaluation every four years by external
experts in liaison with the Commission and the Governing Board.

III. CONCLUSION

The common position — the result of informal negotiations between the European Parliament, the
Council and the Commission — is largely consistent with the approach and aims pursued by the
Commission in its original proposal for a recast Regulation, with the exception of the provisions on
governance and, in particular, representation on the ETF's Governing Board. The scope of the Founda-
tion's work has been extended and more clearly prescribed, a number of provisions relating to the
Governing Board, its voting rules and the role of the Director have been clarified and the procedures for
reporting and evaluating the Foundation's activities and performance tightened up.