Proposal for a Regulation of the European Parliament and of the Council concerning European Union financial contributions to the International Fund for Ireland (2007-2010)
Date: 2010-02-05
Institutions: European Commission
Subjects: EU financing, Ireland, Northern Ireland, cross-border cooperation, economic development, financial aid, peacekeeping, social development

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EUROPEAN COMMISSION  

Brussels, 5.2.2010 
COM(2010)12 final 

2010/0004 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning European Union financial contributions to the International Fund for 
Ireland (2007-2010) 

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EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

•  Grounds for and objectives of the proposal 

The European Union has provided financial contributions to the International Fund for Ireland 
(IFI)  from  1989.  For  the  period  2005  to  2006  EUR  15  million  was  committed  from  the 
Community  budget  for  each  of  the  years  2005  and  2006  in  accordance  with  Council 
Regulation (EC) No 177/2005 of 24 January 2005 on Community financial contributions to 
the  International  Fund  for  Ireland1.  That  Regulation  has  expired  on  31  December  2006  and 
was  replaced  by  Council  Regulation  (EC)  No  1968/2006  of  21  December  2006  concerning 
Community  financial  contributions  to  the  International  Fund  for  Ireland  (2007-2010)2.  The 
regulation was adopted, like all previous regulations, on the basis of Article 308 of the Treaty 
establishing the European Community.  

The  European  Parliament  considered  that  the  regulation  should  have  been  adopted  under 
Article  159§3  of  the  Treaty  establishing  the  European  Community  (now  Article  175  of  the 
Treaty  on  the  Functioning  of  the  European  Union)  and  launched  an  action  for  annulment3 
before the Court of Justice. The Court has passed down its judgement on 3 September 2009 
and ruled that both Articles 159§3 and 308 should be used as the legal basis and has therefore 
annulled  Council  Regulation  (EC)  No  1968/2006  and  asked  the  institutions  to  adopt  a 
replacement regulation with a dual legal basis.  

In complying with the Court's ruling the European Commission is presenting a new proposal 
for a Regulation. 

In comparison with the annulled regulation the proposal for a new regulation reflects in the 
recitals  the  dual  legal  basis.  All  articles  remain  the  same  but  Article  12  provides  for  the 
retroactive  application  of  Article  6  since  in  the  annulled  regulation  the  said  article  was 
providing for a closure strategy to be submitted to the Commission by June 2008. The closure 
strategy in question has indeed been submitted to the Commission and it has been approved. 

•  General Context 

The International Fund for Ireland (IFI) was established in 1986 in order to contribute to the 
implementation of Article 10(a) of the Anglo-Irish Agreement of 15 November 1985 which 
provides  that  "the  two  governments  shall  co-operate  to  promote  the  economic  and  social 
development of those areas of both parts of Ireland which have suffered most severely from 
the  consequences  of  the  instability  of  recent  years,  and  shall  consider  the  possibility  of 
securing international support for this work". 

The  objectives  of  the  IFI  are  "to  promote  economic  and  social  advance  and  to  encourage 
contact, dialogue and reconciliation between nationalists and unionists throughout Ireland"4. 

1 
2 
3 
4 

OJ L 30, 03.02.2005, p. 1-3. 
OJ 2006 L409, p.86 
Case C-166/07 
Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and 
the  Government  of  Ireland  concerning  the  International  Fund  for  Ireland,  18  September  1986  (last 

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Following  early  contributions  from  the  United  States  and  other  countries,  the  European 
Union, recognising that the objectives of the IFI were a reflection of those pursued by itself, 
decided to give practical support to the initiative and it began contributing to the IFI in 1989. 
EU  funding  represented  approximately  58 %  of  2008  annual  contributions  to  the  Fund  and 
40 %  of  cumulative  contributions  to  date.  The  Commission  has  been  represented  by  an 
observer at all IFI Board meetings since the beginning in 1989. 

The  political  background  of  the  region  has  evolved  over  the  years.  In  1994,  the  main 
paramilitary  groups  announced  cease-fires  and  in  April  1998,  the  Belfast  (“Good  Friday”) 
Agreement set a political settlement for a peace process, including the devolution of powers to 
a Northern Ireland Assembly and Executive Committee, which were set up at the end of 1999. 
However,  there  is  still  a  significant  level  of  security  related  incidents  with  sectarian 
motivation and psychological and physical division between the main communities is on the 
rise.  Even  thought  there  has  been  considerable  progress  in  the  last  decade  the  fact  that 
devolution  has  been  suspended  on  four  occasions  illustrates  the  threats  and  uncertainties 
surrounding the peace process in the region.  

In  this  context,  economic  and  social  development  in  support  of  peace  and  reconciliation  at 
grassroots level is a long term process.  

The  International  Fund  has  acknowledged  that  the  current  level  of  international  support 
cannot be maintained indefinitely and has decided not to seek financial contributions from the 
donors  after  2010.  In  2005  the  Fund  performed  a  review  of  its  structures  and  priorities  in 
order to redefine its mission in light of the new  realities and adopted a strategic framework 
which  has  been  guiding  the  Fund  in  the  last  phase  of  its  activities.  This  strategy  is  entitled 
"Sharing  this  Space"  and  is  a  strategic  framework  for  action  for  the  period  2006  –  2010. 
During this period the Fund is targeting the areas of greatest need and seeks to ensure that its 
work is made sustainable in the longer term.  

•  Any existing provisions in this area 

Not applicable 

•  Consistency with other policies 

As  an  instrument  towards  this  goal,  the  IFI  complements  the  actions  carried  out  by  the  EU 
Programmes  for  Peace  and  Reconciliation  in  Northern  Ireland  and  the  Border  Region  of 
Ireland ("PEACE I" 1995-1999, "PEACE II" 2000-2006 and "PEACE III" 2007 - 2013).  

2. 

RESULTS  OF  CONSULTATIONS  WITH  THE  INTERESTED  PARTIES  AND  IMPACT 
ASSESSMENTS 

•  Consultations 

Not applicable 

•  Collection and use of expertise 

amended 10 October 2000) ; UK Treaty Series N°58 (1987) Cm 266 / Republic of Ireland N°1 (1986) 
Cmnd 9908. 

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In accordance with Council Regulation (EC) No. 177/20055 the annulled Regulation had been 
prepared  on  the  basis  of  the  Report  to  the  Budgetary  Authority  assessing  the  IFI  activities6 
which  accompanied  it.  The  Report  assessed  the  activities  of  the  Fund  utilising  Commission 
expertise in the analysis of information and data collected: 

•  from the continuous monitoring of the Fund by the Commission 

•  from  projects  visits  and  inspections  by  the  Commission  during  IFI  Board 

meetings 

•  by the management of the Fund and projects 

•  reports and studies produced by the Fund  

The Report acknowledged the IFI’s very valuable and positive actions in support of peace and 
reconciliation in the region, and thereby the fulfilment of its objectives. The report concluded 
that: 

"the  Commission  believes  that  funding  after  2006  should  be  provided  on  the 
basis of the observations made in this report, which could be reflected either in 
the  future  Council  Regulation  on  the  EC  contribution  to  the  IFI,  or  through 
other appropriate means of co-operation between the Commission and the IFI". 

•  Impact Assessment 

Given  the  fact  that  this  is  a  replacement  regulation  to  comply  with  a  Court's  decision 
concerning the choice of legal basis and taking into account that no articles of the Regulation 
have been amended it was not deemed proportional to carry out an Impact Assessment.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

•  Legal Basis 

Article 175 and Article 352 (1) of the Treaty on the Functioning of the European Union 

•  Choice of Instruments 

The proposed instrument is a Regulation to replace the annulled Regulation as per the Court's 
judgment. 

4. 

BUDGETARY IMPLICATION 

The proposal provides for EU contributions of €1 5 million per year to the IFI for a period of 4 
years from 2007 - 2010. The proposed new period will therefore end in 2010, which would 
coincide with the last year the Fund will be seeking financial contributions from the donors. 

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6 

OJ L 30, 03.02.2005, p. 1-3. 
COM (2006)563, 12.10.2006. 

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2010/0004 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

concerning European Union financial contributions to the International Fund for 
Ireland (2007-2010) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 175 and Article 352 (1) thereof, 

Having regard to the proposal from the European Commission7, 

Having regard to the opinion of the Committee of the Regions8, 

Having regard to the opinion of the European Economic and Social Committee9, 

After transmission of the proposal to the national Parliaments, 

Acting in accordance with the procedures laid down in Article 294 and in Article 352 (1) of 
the Treaty, 

Whereas: 

(1) 

(2) 

The International Fund for Ireland (hereinafter “the Fund”) was established in 1986 by 
the  Agreement  of  18  September  1986  between  the  Government  of  Ireland  and  the 
Government of the United Kingdom of Great Britain and Northern Ireland concerning 
the  International  Fund  for  Ireland  (hereinafter  “the  Agreement”)  in  order  to  promote 
economic  and  social  advance,  and  to  encourage  contact,  dialogue  and  reconciliation 
between nationalists and unionists throughout Ireland, in implementation of one of the 
objectives specified by the Anglo-Irish Agreement of 15 November 1985. 

The  Union,  recognising  that  the  objectives  of  the  Fund  are  a  reflection  of  those 
pursued by itself, has provided financial contributions to the Fund from 1989. For the 
period 2005 to 2006 EUR 15 million was committed from the Community budget for 
each  of  the  years  2005  and  2006  in  accordance  with  Council  Regulation  (EC)  No 
177/2005  of  24  January  2005  on  Community  financial  contributions  to  the 
International Fund for Ireland10. That Regulation expired on 31 December 2006. 

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OJ C […] 
OJ C […] 
OJ C […] 
OJ L 30, 3.2.2005, p. 1. 

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(3) 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The  assessments  carried  out  in  accordance  with  Article  5  of  Regulation  (EC)  No 
177/2005 have confirmed the need for further support for activities of the Fund, while 
continuing reinforcing synergy of objectives and co-ordination with Structural Funds 
interventions, in particular with the Special Programme for Peace and Reconciliation 
in  Northern  Ireland  and  the  Border  Counties  of  Ireland  (hereinafter  “the  PEACE 
programme”) set up in accordance with Council Regulation (EC) No 1260/1999 of 21 
June 1999 laying down general provisions on the Structural Funds11. 

The peace process in Northern Ireland requires a continuation of Union support to the 
Fund  beyond  31  December  2006.  In  recognition  of  the  special  effort  for  the  peace 
process,  the  PEACE  programme  has  been  allocated  additional  support  from  the 
Structural Funds for the period 2007 to 2013 pursuant to paragraph 22 of Annex II to 
Council  Regulation  (EC)  No  1083/2006  laying  down  general  provisions  on  the 
European  Regional  Development  Fund,  the  European  Social  Fund  and  the  Cohesion 
Fund and repealing Regulation (EC) No 1260/199912. 

At its meeting in Brussels on 15 and 16 December 2005, the European Council called 
on the Commission to take the necessary steps with a view to continued Community 
support for the Fund as it enters the crucial final phase of its work up to 2010. 

The main purpose of this Regulation is to support peace and reconciliation through a 
wider range of activities than those covered by the Structural Funds, and which extend 
beyond the scope of the Union policy on economic and social cohesion. 

The  Union  contributions  to  the  Fund  should  take  the  form  of  financial  contributions 
for the years 2007, 2008, 2009 and 2010, thus terminating at the same time as the life 
of the Fund. 

In  allocating  the  Union  contributions,  the  Fund  should  give  priority  to  projects  of  a 
cross-border or cross-community nature, in such a way as to complement the activities 
funded by the PEACE programme for the period 2007 to 2010. 

In accordance with the Agreement, all financial contributors to the Fund participate as 
observers at the meetings of the Board of the International Fund for Ireland. 

(10) 

It is vital to ensure proper co-ordination between the activities of the Fund and those 
financed  under  the  Structural  Funds  provided  for  by  Article  175  of  the  Treaty,  in 
particular the PEACE programme.  

(11)  A financial reference amount, within the meaning of Point 38 of the Interinstitutional 
Agreement  of  17  May  2006  between  the  European  Parliament,  the  Council  and  the 
Commission  on  budgetary  discipline  and  sound  financial  management13  should  be 
inserted  in  this  Regulation  for  the  entire  duration  of  the  programme,  without  the 
powers of the budgetary authority as defined by the Treaty being affected thereby. 

(12)  The amount of the Union contributions to the Fund should be EUR 15 million for each 

of the years 2007, 2008, 2009, and 2010, expressed in current values. 

11 
12 
13 

OJ L 161, 26.6.1999, p. 1.  
OJ L 210, 31.7.2006, p. 25. 
OJ C 139, 14.6.2006, p. 1. 

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(13)  The  Fund  strategy  launched  for  the  final  phase  of  its  activities  (2006  -  2010)  and 
entitled  "Sharing  this  Space"  focuses  on  four  key  areas:  building  foundations  for 
reconciliation  in  the  most  marginalised  communities,  building  bridges  for  contact 
between divided communities, moving towards a more integrated society and leaving 
a  legacy.  Consequently,  the  ultimate  aim  of  the  Fund  and  of  this  Regulation  is  to 
encourage inter-community reconciliation. 

(14)  The Union support will contribute to reinforcing solidarity between the Member States 

and between their peoples. 

(15)  Assistance  from  the  Fund  should  be  regarded  as  effective  only  in  so  far  as  it  brings 
about sustainable economic and social improvement and is not used as a substitute for 
other public or private expenditure. 

(16)  Council Regulation (EC) No 1968/2006 of 21 December 2006 concerning Community 
financial  contributions  to  the  International  Fund  for  Ireland  (2007  to  2010)14 
established the financial reference amount for the implementation of the Fund for the 
period 2007 to 2010. 

(17) 

In  its  judgement  of  3  September  2009  in  Case  C-166/07  (European  Parliament  v 
Council  and  Commission)15  the  Court  of  Justice  of  the  European  Communities 
annulled  Regulation  (EC)  No  1968/2006  as  it  was  based  only  on  Article  308  of  the 
Treaty establishing the European Community, ruling that both the third paragraph of 
Article 159 of the Treaty establishing the European Community and Article 308 of the 
Treaty  establishing  the  European  Community  were  the  appropriate  legal  basis. 
However, the Court also ruled that the effects of Regulation (EC) No 1968/2006 were 
maintained until the entry into force, within a reasonable period, of a new regulation 
adopted on an appropriate legal basis and that the annulment of Regulation (EC) No 
1968/2006  must  not  affect  the  validity  of  payments  made  or  of  undertakings  given 
under that Regulation, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

The financial reference amount for the implementation of the International Fund for Ireland 
(hereinafter “the Fund”) for the period 2007-2010 shall be EUR 60 million. 

Annual appropriations shall be authorised by the budgetary authority within the limit of the 
financial framework. 

Article 2 

The  contributions  shall  be  used  by  the  Fund  in  accordance  with  the  Agreement  of  18 
September  1986  between  the  Government  of  Ireland  and  the  Government  of  the  United 
Kingdom of Great Britain and Northern Ireland concerning the International Fund for Ireland 
(hereinafter “the Agreement”).  

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15 

OJ L 409, 30.12.2006, p. 86.  
Not yet published. 

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In  allocating  the  contributions  the  Fund  shall  give  priority  to  projects  of  a  cross-border  or 
cross-community  nature,  in  such  a  way  as  to  complement  the  activities  financed  by  the 
Structural  Funds,  and  especially  those  of  the  PEACE  programme  operating  in  Northern 
Ireland and the Border Counties of Ireland (hereinafter “the PEACE Programme”). 

The  contributions  shall  be  used  in  such  a  way  as  to  bring  about  sustainable  economic  and 
social improvement in the areas concerned. It shall not be used as a substitute for other public 
and private expenditure. 

Article 3 

The Commission shall represent the Union as an observer at the meetings of the Board of the 
Fund. 

The  Fund  shall  be  represented  as  an  observer  at  the  Monitoring  Committee  meetings  of  the 
PEACE programme, and of other Structural Funds interventions as appropriate. 

Article 4 

The  Commission  shall,  in  co-operation  with  the  Board  of  the  Fund,  determine  appropriate 
procedures to foster co-ordination at all levels between the Fund and the managing authorities 
and  implementing  bodies  set  up  under  the  Structural  Funds  interventions  concerned,  in 
particular under the PEACE programme. 

Article 5 

The  Commission  shall,  in  co-operation  with  the  Board  of  the  Fund,  determine  appropriate 
publicity  and  information  procedures  in  order  to  publicise  the  Union  contributions  to  the 
projects financed by the Fund. 

Article 6 

By  30  June  2008  at  the  latest,  the  Fund  shall  submit  to  the  Commission  its  strategy  for  the 
closure of the activities of the Fund, including: 

(a) 

(b) 

(c) 

an action plan with projected payments and a foreseen winding up date; 

a de-commitment procedure; 

the  treatment  of  any  residual  amounts  and  interest  received  at  the  closure  of  the 
Fund. 

Subsequent payments to the Fund are conditional on the Commission's approval of the closure 
strategy. If the strategy for closure is not submitted by 30 June 2008, payments to the Fund 
shall be interrupted until the strategy is received. 

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1. 

The Commission shall administer the contributions.  

Article 7 

Subject to paragraph 2 the annual contribution shall be paid in instalments as follows: 

(a) 

(b) 

(c) 

a first advance payment of 40% shall be made after the Commission has received an 
undertaking, signed by the Chairman of the Board of the Fund, to the effect that the 
Fund shall comply with the conditions for the grant of the contribution set out in this 
Regulation;  

a second advance payment of 40% shall be made six months later;  

a  final  payment  of  20%  shall  be  made  after  the  Commission  has  received  and 
accepted  the  Fund’s  annual  activity  report  and  audited  accounts  for  the  year  in 
question. 

2. 
Before paying out an instalment the Commission shall carry out an assessment of the 
Fund’s financial needs on the basis of the Fund’s cash balance at the time scheduled for each 
payment. If following that assessment, the Fund’s financial needs do not justify payment of 
one of those instalments, the payment concerned shall be suspended. The Commission shall 
review that decision on the basis of new information provided by the Fund and shall continue 
payments as soon as they are considered justified. 

Article 8 

A  contribution  from  the  Fund  may  be  allocated  to  an  operation  which  receives  or  is  due  to 
receive  financial  assistance  under  a  Structural  Funds  intervention,  only  if  the  sum  of  that 
financial assistance plus 40% of the contribution from the Fund does not exceed 75% of the 
operation’s total eligible costs. 

Article 9 

A final report shall be submitted to the Commission six months before the winding up date 
foreseen in the strategy for closure referred in point (a) of the first paragraph of Article 6 or 
six  months  after  the  last  Union  payment,  whichever  happens  first,  and  shall  include  all  the 
necessary  information  that  enables  the  Commission  to  evaluate  the  implementation  of  the 
assistance and the attainment of the objectives.  

Article 10 

The final year contribution shall be paid following the financial needs analysis referred to in 
Article 7(2) and provided the Fund's performance respects the closure strategy provided for in 
Article 6.  

The final date of eligibility of expenditure is 31 December 2013.  

Article 11 

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This Regulation shall enter into force on the […] day following that of its publication in the 
Official Journal of the European Union. 

Article 12 

Article 6 shall apply from 1 January 2007. 

This Regulation shall expire on 31 December 2010. 

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

Done at Brussels, […]  

For the European Parliament 
The President 
[…] 

For the Council 
The President 
[…]

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LEGISLATIVE FINANCIAL STATEMENT 

Policy area: REGIO 

Activity: Other regional actions 

TITLE  OF  ACTION:  UNION  CONTRIBUTIONS  TO  THE  INTERNATIONAL  FUND  FOR  IRELAND 

(2007-2010) 

1. 

BUDGET LINE(S) + HEADING(S) 

13.03.12 

2. 

OVERALL FIGURES  

2.1. 

Total allocation for action (Part B): 

€ 60 million for commitment 

2.2. 

Period of application: 2007-2010 

2.3. 

Overall multiannual estimate of expenditure: 

(a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1) 

(financial 

€ million ( to three decimal places) 

Year 
[n] 
2007 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

2008 

2009 

2010 

[n+5 
and 
subs. 
Year] 

Commitments 

15 

15 

Payments 

15 

15 

15 

15 

15 

15 

Total 

60 

60 

(b) 

Technical and administrative assistance and support expenditure(see point 6.1.2) 

Commitments 

Payments 

Subtotal a+b 

Commitments 

15 

15 

Payments 

15 

15 

15 

15 

15 

15 

60 

60 

(c) 

Overall  financial  impact  of  human  resources  and  other  administrative  expenditure 
(see points 7.2 and 7.3) 

Commitments/ 
payments 

0,042 

0,042 

0,042 

0,042 

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TOTAL a+b+c 

Commitments 

15,042  15,042  15,042  15,042 

60,168 

Payments 

0,042 

0,042 

15,042  15,042  15 

15 

60,168 

2.4. 

Compatibility with financial programming and financial perspective 

Proposal is compatible with existing financial programming. 

2.5. 

Financial impact on revenue: 

Proposal  has  no  financial  implications  (involves  technical  aspects  regarding 
implementation of a measure) 

3. 

BUDGET CHARACTERISTICS 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
form applicant 
countries 

Heading in 
financial 
perspective 

Non-comp 

Diff 

NO 

NO 

NO 

1A 

4. 

LEGAL BASIS  

Articles 352 (1) and 175 of the Treaty 

5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Union intervention  

5.1.1.  Objectives pursued 

To encourage contact, dialogue and reconciliation between nationalists and unionists 
throughout  Ireland  and  to  promote  the  economic  and  social  advance  of  the  two 
communities. 

5.1.2.  Grounds for the operation 

The European Union, recognising that the objectives of the Fund are a reflection of 
those  pursued  by  itself,  has  been  providing  financial  contributions  to  the  IFI  in 
support of the peace process since 1989. To date the EU has provided €289 million 
to the Fund. 

At its meeting in Brussels on 15 and 16 December 2005, the European Council called 
on the Commission to take the necessary steps with a view to continued EU support 
for the Fund as it enters the crucial final phase of its work up to 2010, the final year 
that the Fund will seek financial contributions from its donors. 

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Continuation of this contribution for another four years until the end of the life of the 
IFI illustrates the clear EU support for the peace process in Northern Ireland. 

5.2. 

Action envisaged and budget intervention arrangements 

•  To  encourage  contact,  dialogue  and  reconciliation  between  nationalists  and 
unionists throughout Ireland and to promote economic and social advance of the 
two communities. 

•  The  Fund  operates  mainly  in  Northern  Ireland  and  in  the  Border  Region  of 

Ireland; it targets designated disadvantaged areas. 

•  For a detailed analysis of Fund activities, see Commission report COM(2006) 563 

of 12 October 2006. 

5.3.  Methods of implementation 

Joint management with international organisations.  

Subject to an assessment of the Fund’s financial needs, the annual contribution shall 
normally be paid in instalments as follows: a first advance payment of 40% shall be 
made after the Commission has received an undertaking, signed by the Chairman of 
the Fund’s Board complying with the Council Regulation; a second advance payment 
of  40%  shall  be  made  six  months  later  and  a  final  payment  of  20%  shall  be  made 
after  the  Commission  has  received  and  accepted  the  Fund’s  annual  activity  report 
and audited accounts for the year in question. 

6. 

FINANCIAL IMPACT 

6.1. 

Total financial impact on Part B - (over the entire programming period) 

6.1.1.  Financial intervention 

Commitments (in € million to three decimal places) 

Breakdown 

[Year 
n] 

2007 

[n+1] 

[n+2] 

[n+3] 

[n+4] 

2008 

2009 

2010 

Total 

[n+5 
and 
subs. 
Years] 

15 

15 

15 

15 

Action 1 

Action 2 

etc. 

TOTAL  15 

15 

15 

15 

60 

60 

6.1.2.  Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 

(commitment appropriations) 

Not applicable. 

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6.2. 

Calculation  of  costs  by  measure  envisaged  in  Part  B  (over  the  entire 
programming period) 

Not applicable. 

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

7.1. 

Impact on human resources 

Staff to be assigned to management of the 
action using existing and/or additional 
resources 

Number of 
permanent posts 

Number of 
temporary posts 

0,2  

0,1  

0,3 

Description of tasks deriving from the 
action 

If necessary, a fuller description of the 
tasks may be annexed. 

Total 

0,2 

0,1 

0,3 

Types of post 

Officials 
temporary staff 

or 

A 

B 

C 

Other human resources 

Total 

7.2. 

Overall financial impact of human resources 

Type of human resources 

Amount (€) 

Method of calculation  *  

Officials 

Temporary staff 

Other human resources 

32400 

0,3 * €108000 

(specify budget line) 

Total  32400 

The needs for human and administrative resources shall be covered within the allocation that 
can be granted to the managing DG in the framework of the annual allocation procedure in the 
light of budgetary constraints. 

7.3. 

Other administrative expenditure deriving from the action 

Budget line (number and heading) 

Overall allocation (Title A7) 

A0701 – Missions 

A07030 – Meetings 

A07031 – Compulsory committees 

A07032 – Non-compulsory committees 

A07040 – Conferences 

A0705 – Studies and consultations 

Amount € 

Method of calculation 

8000 

€800  *  10  p.a.  (5  missions  of  2  days 
each on average) 

Other expenditure (specify) Audit 

1600 

€800 * 2 p.a. 

Information systems (A-5001/A-4300) 

EN 

14 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expenditure - Part A (specify) 

Total  9600 

The amounts are total expenditure for twelve months. 

I. 

II. 

Annual total (7.2 + 7.3) 

Duration of action 

III. 

Total cost of action (I x II) 

42000€  

4 years 

168000€ 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The Commission will monitor  the Fund’s  activities through its continuing presence 
on the Board as an observer and receives the papers of the IFI Advisory Committee 
meetings.  The  Fund  operations  are  moreover,  controlled  by  DG  REGIO  audit  and 
control  services.  The  result  indicators  will  be  the  number  and  value  of  projects 
approved by the IFI. 

Every year the IFI presents to the Commission its annual accounts and activity report 
which  must  satisfy  the  Commission  in  order  for  the  payments  to  the  Fund  to 
continue.  Moreover,  the  payments  to  the  Fund  are  also  subject  to  an  assessment  of 
the Fund’s financial needs to be carried out by the Commission on the basis of the 
Fund’s cash balance at the time scheduled for each payment.  

Given  that  the  Fund  is  coming  to  the  end  of  its  life  in  2010  it  has  been  asked  to 
submit  to  the  Commission  its  strategy  for  the  closure  of  the  Fund's  activities  and 
subsequent  payments  to  the  Fund  are  conditional  on  the  Commission's  approval  of 
the  closure  strategy.  This  Strategy  has  been  approved  by  the  Commission  in 
September  2009.  As  part  of  the  closure  package,  the  Fund  will  submit  all  the 
necessary 
the 
that  would  enable 
implementation of the assistance and the attainment of the objectives. 

the  Commission 

to  evaluate 

information 

8.2. 

Evaluation 

For an evaluation of Fund activities, see Commission report COM(2006) 563 of 12 
October 2006. 

9. 

ANTI-FRAUD MEASURES 

The  Commission  is  represented  on  the  Board  of  the  Fund  and  the  final  annual 
contribution is only paid over after receipt and acceptance of the Fund's annual report 
and audited accounts. The Fund operations are moreover, controlled by DG REGIO 
audit and control services. 

EN 

15 

   EN