COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL A partial reallocation of the Commission's ex-Economat funds
Date: 2011-12-13
Institutions: European Commission
Subjects: building subsidy, child care, consumer cooperative, financial aid, fund (EU), social development, sports facilities, urban construction, urban renewal

EUROPEAN COMMISSION 

Brussels, 13.12.2011 
COM(2011) 891 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

A partial reallocation of the Commission's ex-Economat funds 

 
 
 
 
  
 
1. 

INTRODUCTION 

In  November  2008,  the  Commission  took  the  decision1  to  allocate  the  ex-Economat's 
operational  surplus  and  the  accrued  interests  to  four  specific  projects  dedicated  to  social 
actions in favour of the Institutions' staff for the following amounts: 

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support towards the integration of disabled children into the day-care facilities 
(100,000 €); 

upgrade of the sports facilities at the Overijse site (500,000 €); 

infrastructure  for  improving  conditions  at  work  in  the  European  Quarter 
(600,000 €); 

contribution to the EP's Fitness Centre (1,500,000 €). 

In June 2008, the abovementioned surplus amounted to exactly 2,733,356 € and, at the actual 
date  of  closure  of  the  source  accounts  in  April  2009  to  2,839,914.96  €.  This  sum  was 
registered as assigned revenue. 

Funds relating to the first project (support towards the integration of disabled children into the 
day-care  facilities)  have  already  been  assigned  and  used.  Those  relating  to  the  third  project 
(infrastructure for improving conditions at work in the European Quarter) have been assigned 
to works for which a building permit has been submitted. 

The European Parliament project (1,500,000 €) ha s been rendered impossible following their 
decision in 2009 not to pursue this project in its initial form, and this amount has been carried 
over since 2009.  

The  result  is  a  total  amount  of  1,639,914.96  €  availa ble  to  be  reassigned  to  a  new  project, 
composed of 1,500,000 € from the Parliament project and 139,914.96 € from the difference 
between  the  definitive  amount  recovered  from  the  ex-Economat  accounts  (2,839,914.96  €) 
and the sum of the amounts of the projects identified in the 2008 communication. 

Following  the  above  mentioned  event,  this  communication  aims  at  informing  the  European 
Parliament and the Council of the amendments related to the allocation of the unassigned ex-
Economat funds set up under the 2008 communication.  

2. 

THE DOWNSIZING OF THE PARLIAMENT'S FITNESS CENTRE PROJECT 

In the summer of 2009, the Commission was informed of the decision of the Bureau of the 
European  Parliament  to  considerably  downsize  the  project,  to  the  extent  that  the 
Commission's  participation  was  no  longer  required.  In  September  2009,  the  Commission 
services replied to the Parliament's administration taking note of this decision and announcing 
that a new destination for the 1.5 M€ would therefore be sought. 

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COM(2008)692 final of 12 November 2008 

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3. 

RENOVATING THE OVERIJSE SITE 

The  idea  to  renovate  the  Overijse  site,  owned  by  the  Commission  since  1974  has  been 
supported by the Staff representatives and foreseen in several Commission action plans.  

However,  lack  of  budgetary  resources  and  a  change  in  the  land-use  plan  by  the  local 
authorities  in  2009  rendered  the  developed  plans  unfeasible  and,  as  a  consequence,  held  up 
the  renovation.  A  study  of  a  new  project,  taking  into  account  the  additional  constraints 
stemming  from  the  land-use  plan,  has  been  launched  in  early  2011  and  is  now  ongoing.  It 
consists of the construction of a new building (for sport and social activities including sanitary 
facilities needed for the sports function) and allowing the use of the centre for the Easter and 
Summer  day-care  function  (child-minding  facilities2)  replacing  the  two  current  buildings 
which are totally obsolete, fitting out works of its surrounding areas, the refurbishment of the 
villa (i.a. to bring it up to better energy consumption standards), the renovation and the setting 
up of various sports facilities on the site. 

The  available  resources  from  the  ex-Economat  funds,  notably  expected  to  contribute  to  the 
European  Parliament's  Fitness  Centre  would  be  assigned  to  a  specific  project  within  the 
renovation of the Overijse site. 

The main goal of the new Overijse renovation plan is to provide for the Easter and Summer 
day-care  function  accessible  to  all  Institutions'  staff,  to  give  an  added  value  to  the  site,  to 
lower the operating costs inter alia by introducing recent heating and ventilation solutions, to 
maintain the site up to standard and in particular to: 

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accommodate  outdoor  and  indoor  activities  for  children  (day-care  facilities 
during Easter and Summer school holidays) in both quality and capacity; 

be  at  the  disposal  of  related  organisations  (presently  renting  similar  facilities 
from third parties, as for example the European Schools), against payment for 
their sports weeks; 

make it accessible to people of reduced mobility; 

offer  sports  and  recreation  activity  facilities  to  the  children  and  the  staff  and 
their families; 

also be available for some training activities. 

As a consequence, it is foreseen to allocate all the available amounts from the ex-Economat 
operational  surplus  of  1,639,914.96  € ,  as  well  as  the  500,000  €  already  foreseen  for  the 
upgrading  of  the  sports  facilities,  to  finance  the  Overijse  renovation  investment  costs 
primarily linked to the abovementioned specific project for the day-care function. 

In line with the general conditions for the use of ex-Economat funds, set out in the initial 2008 
Communication,  this  specific  investment  will  not  imply  additional  human  or  financial 
resources. The budget, needed to maintain the Commission's assets in an acceptable state and 

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During Summer and Easter break this service is very much demanded by staff /parents and cannot be 
assured in another way. 

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for the real estate running costs (maintenance, energy, security) will continue to be covered by 
the existing resources allocated to the Commission. 

It has to be observed that the actual commitment of the funds largely depends on the building 
permits still to be obtained. While the preliminary contacts with the local authorities do not 
indicate  any  specific  difficulties,  the  outcome  is  not  under  the  full  control  of  the 
Commission's services. This might further delay the project, and it cannot be totally excluded 
that  it  might  even  bring  into  question  the  mere  feasibility  of  the  project.  It  is  therefore 
appropriate  to  already  foresee  a  possible  new  assignment  of  the  funds  to  another  social 
project, would the building permits delay put the project at risk. 

4. 

CONCLUSION 

It  is  proposed  to  add  the  available  amount  of  1,639,914.96  €   to  the  500,000  €  originally 
assigned  to  the  renovation  of  the  sports  facilities  for  the  financing  of  the  specific  project 
linked to the day-care function within the renovation of the Overijse site as explained above.  

The time necessary for the definition of a new project, the relevant studies to be carried out, 
the building permits to be obtained, and the call for tenders to be done made it impossible to 
use the amounts as initially foreseen in the budgetary years 2009/2010/2011. At this stage, the 
date for the commitment or the funds related to the new project is expected in 2012/2013. 

Therefore,  in  application  of  the  Financial  regulation  (article  10)  the  unused  funds  will  be 
carried over the next year(s). 

The Commission: 

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Approves the assignment of 2,139,914.96 € to the specific project linked to the 
day-care  function  within  the  renovation  of  the  Overijse  site.  The  budgetary 
operations  to  implement  this  decision  will  be  assured  by  the  competent 
services.  

Hereby  informs  the  European  Parliament  and  the  Council  of  the  partial 
reallocation  of  the  ex-Economat  funds  and  of  the  need  to  carry  over  those 
funds. 

Agrees to assign the funds to another project in the social domain after a new 
communication, should the Overijse project be abandoned for external reasons.  

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