Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the Hercule III programme to promote activities in the field of the protection of the European Union's financial interests
Date: 2011-12-19
Institutions: European Commission
Subjects: EU action, EU financing, fraud against the EU

EUROPEAN COMMISSION 

Brussels, 19.12.2011 
COM(2011) 914 final 

2011/0454 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the Hercule III programme to promote activities in the field of the protection of the 
European Union's financial interests  

{SEC(2011) 1610 final} 
{SEC(2011) 1611 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  Hercule  I  programme  was  based  on  Decision  804/2004/EC1  which  essentially  put  on  a 
proper  footing  and  expanded  a  number  of  activities  in  the  field  of  the  protection  of  the 
financial interests which had developed over time. 

Decision 878/2007/EC2 extended this programme over the period 2007 to 2013, as Hercule II. 
This  2007  decision  placed  specific  emphasis  on  the  fight  against  cigarette  smuggling  and 
counterfeiting  to  reflect  the  legal  obligations  of  the  Commission  stemming  from  the  Anti-
Contraband  and  Anti-Counterfeiting  Agreement  with  Philip  Morris  International  signed  in 
2004.  The  latter  was  the  first  of  the  agreements  signed  with  international  cigarette 
manufacturers under which, in recognition of more than US$ 2 billion to be paid by them into 
national and the Union Budgets over periods of up to 20 years, the Commission and Member 
States agreed that European efforts to suppress the illegal traffic in tobacco products would be 
enhanced. The annual provision for Hercule was duly increased from 2007. 

As the legal base for Hercule II will expire at the end of 2013, its replacement should ensure 
the continuity  of European support for the activities carried  out by the Commission and the 
Member  States  with  the  purpose  of  providing  better  information,  carrying  out  studies  and 
providing training or technical and scientific assistance in the fight against fraud. 

The Treaty on the Functioning of the European Union (TFEU) reflects public concern about 
the  protection  of  Union  financial  interests  by  providing  for  the  principle  of  effective  and 
equivalent  protection  across  the  Member  States  and  the  Union's  Institutions,  bodies,  offices 
and  agencies  (Article  325  TFEU,  former  Article  280  TEC).  The  importance  of  gaining  and 
maintaining public trust in the Union's capacity to protect taxpayers' money  from fraudsters 
cannot  be  overstated,  particularly  in  the  present  context  of  budgetary  stringency  and  the 
negotiation of the Multiannual Financial Framework for 2014-2020 (MFF). 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

2.1.  The  Hercule  II  programme  comprises  a  heterogeneous  group  of  actions  involving 
stakeholders who are all important to the fight against fraud, corruption and any other illegal 
activities affecting the financial interests of the Union but whose contribution takes different 
forms. 

In 2011, the European Anti-Fraud Office (OLAF) has carried out an informal consultation of 
the following stakeholders, in part on the basis of questionnaires: 

- OLAF's Task Group Cigarettes partners (specialist services in Member Stated concerned in 
particular with the agreements with the tobacco manufacturers); 

- Member State services which use OLAF's Information Support Office - ISO; 

1 
2 

OJ L 143, 30.4.2004, p.9. 
OJ L 193, 25.7.2007, p.18. 

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-  the  Associations  for  European  Criminal  Law  and  for  the  Protection  of  the  EU  Financial 
Interests (European Lawyers Associations – ELAs). 

These stakeholders were asked to evaluate the implementation of the Hercule II programme 
and to provide ideas for future objectives. 

The  Task  Group  Cigarettes  identified  a  need  for  continuous  and  even  reinforced  support  at 
Union level. Some concrete suggestions were made, covering possible future useful activities, 
technical  matters  and  simplification.  The  Commission  proposal  takes  these  suggestions  into 
account to a significant extent. 

As regards the acquisition by the Commission/OLAF of commercially available data sources 
of value to operational services in Member States and to OLAF itself, the use of the same data 
sources  facilitates  a  common  approach  to  risk  analysis  in  Member  States.  OLAF  monitors 
database  usage  monthly,  promoting  effective  usage  by  Member  States,  allowing  for  the 
creation of shared pools where necessary and reacting when usage increases. Such flexibility, 
added  to  the  Commission's  purchasing  power  when  acting  on  behalf  of  all  Member  States, 
allows  significant  savings  compared  to  the  costs  which  Member  States  would  incur  if  they 
procured the data individually and in practice ensures that some Member States have access to 
data  which  they  could  not  otherwise  afford.  A  user  survey  on  external  databases  in  the 
summer of 2011 confirmed that the Member States recognise the added value of this service 
in the fight against fraud. The Commission proposal takes full account of the results of this 
survey. 

Training activities allow for a wide dissemination of anti-fraud and anti-corruption measures 
to better protect the financial interests of the Union. Close and regular cooperation between 
the competent national authorities and between these authorities and OLAF is a prerequisite to 
effectively implement the objectives of the treaty, and comply with the principles enshrined in 
article 325 paragraph 3 TFEU.  

Finally, as regards the actions targeting legal professionals, both practitioners and academics, 
with  an  interest  in  developing  the  legal  framework  relevant  to  the  protection  of  the  Union's 
financial  interests,  the  goal  is  to  work  towards  an  academic  consensus,  which  would  be 
supportive  to  strategic  and  legislative  work  related  to  the  protection  of  Union  financial 
interests.  Feedback  from  ELAs  has  been  positive.  Some  ELAs  advocate  simpler  procedures 
for application and final reporting and the Commission proposal takes this into account to a 
great  extent.  Some  very  detailed  suggestions  for  future  topics  of  study  or  discussion  were 
made. More generally, there was pressure to place more emphasis on national legal systems 
and  their  individual  problems  in  the  field  of  the  protection  of  Union  financial  interests, 
although the Commission has favoured supporting projects with a clear added value at Union 
level and should continue to do so. 

Regarding other activities financed under Hercule II, there is a continuous dialogue between 
OLAF  and  stakeholders,  in  particular  in  the  sensitive  sector  of  technical  assistance  where 
OLAF has received positive feedback over the years and has been able to adjust the details of 
the actions to reflect this feedback. 

2.2. An impact assessment that has been carried out by the Commission. Four  options have 
been considered, also taking account of the impact on the budgetary envelope: 

Option 1: to continue the programme with the same level of funding (baseline scenario);  

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Option  2:  to  renew  the  Hercule  programme  with  improved  objectives  and  a  better 
methodology, including in particular a higher maximum rate of co-financing for the activities 
of technical support such as the procurement of equipment; 

Option 3: to significantly alter the distribution between the different spending objectives and 
put much greater support on operational and law enforcement activities; 

Option 4: discontinue the Hercule programme, with the possibility to continue some actions 
under  other  Union  co-financing  programmes  and/or  to  leave  other  actions  to  the  Member 
States. 

In  view  of  the  past  experience,  which  is  closely  linked  to  operational  activities  of  both  the 
Member States and OLAF to protect Union financial interests as well as the expected impact 
for the future, including through developing actions, the option to renew the programme with 
improved  objectives  and  a  better  methodology  is  the  preferred  option  (option  2)  with  a 
budgetary  envelope  in  real  prices  which  remains  similar  to  the  current  envelope 
(approximately 15 million EUR per year). In contrast, the option to significantly change the 
distribution  between  different  spending  objectives  would  result  in  an  imbalance  to  the 
detriment of specific support for actions of prevention and detection of fraud and it might lead 
to confusion with regard to the attribution of responsibilities between Member States and the 
European  Union.  Member  States  are  with  their  national  authorities  and  budgets  primarily 
responsible  for  the  fight  against  fraud  by  means  of  justice  and  law  enforcement. 
Discontinuing  the  programme  would  reduce  expenditure  at  Union  level,  without  however 
creating  real  economies  and  offsetting  resources  at  national  level  or  in  the  framework  of 
another  Union  programme  and  therefore  put  at  risk  the  effective  and  equivalent  protection 
across  the  Member  States  and  the  Union  Institutions,  bodies,  offices  and  agencies  as 
enshrined in Article 325 TFEU. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

3.1. Protection of the European Union's financial interests 

Under articles 310(6) and 325 TFEU, the protection of the Union's financial interests against 
fraud, corruption and any other illegal activities affecting the financial interests of the Union 
is a shared responsibility between the Commission and Member States. 

The  Hercule  III  programme  concerns  this  specific  sphere  of  activity  of  the  European 
Commission  and  its  cooperation  with  both  Member  States  competent  authorities,  as  well  as 
with the other European institutions and bodies, more particularly through OLAF. 

It is essential that there should continue to be an instrument specifically dedicated to fighting 
fraud, corruption and any other illegal activities affecting the financial interests of the Union. 
Support from programmes designed for a wider impact would be less effective in addressing 
such a specific issue and in political terms, the Union institutions should demonstrate that they 
share a real determination to deal with this very sensitive subject and to put into practice the 
principles set out in the Treaty. Accordingly, the Hercule III programme would: 

- target exclusively the protection of the financial interests of the Union, in the context of a 
long term vision which is coherent with other Union objectives, on the basis of the priorities 
defined each year for this specific field of expertise; 

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- allow the implementation of other Union programmes to focus on priorities other than the 
protection of the financial interests; 

- fully take into account the results of the actions already co-financed in the past in this field, 
including in terms of targeted beneficiaries and geographical balance; 

- aim to have direct impact on not only some Member States investigations, but also on OLAF 
investigations. 

3.2. Simplification 

A  priority  for  the  Commission  and  for  this  programme,  as  in  other  programmes  under  the 
Multiannual  Financial  framework  (MFF),  is  to  simplify  the  regulatory  environment  and  to 
facilitate  to  the  greatest  possible  extent  the  access  to  this  programme  of  the  competent 
national  authorities,  non-profit  organisations  and  other  types  of  stakeholders  in  the  Member 
States,  candidate  and  acceding  countries,  as  well  as  EFTA/EEA  countries  and  partner 
countries of the European Neighbourhood Policy.  

Coherence with the Financial Regulation: 

The programme proposal is fully coherent with the Financial Regulation and its implementing 
provisions. Grants and procurement are the main financial instruments used to implement the 
programme.  The  simplification  measures  proposed  in  the  Commission  proposal  for  the 
revision  of  the  Financial  Regulation,  notably  the  recourse  to  lump  sums,  flat  rates  and  unit 
costs will already limit the administrative burden. In view of the importance of the processing 
of  subsistence  and  travel  costs  paid  under  the  programme,  the  programme  will  introduce 
simplification  measures  offered  by  the  new  Financial  Regulation  and  its  Implementation 
Rules  in  this  area.  For  grants  under  EUR  50  000  lighter  management  procedures  should  be 
foreseen.  In  particular,  the  Commission  may  authorize  reduced  requirements  in  terms  of 
breakdown of costs and estimates, the use of simplified requirements for application as well 
as for reporting of outcomes.  

Another measure of simplification envisaged concerns the direct information and consultation 
of  the  Member  States'  and  acceding  countries'  representatives  through  the  increased  use  of 
working groups and experts committees, such as the COCOLAF (Advisory Committee for 
the  Coordination  of  Fraud  Prevention)  at  different  stages  of  the  implementation  of  the 
Programme. Thus, improvements in the implementation and the procedures may be brought to 
the  Annual  Working  Programmes  based  on  the  feed-back  received  from  the  representatives 
participating to this Committee.  

3.3. Respect of the principles of subsidiarity, and proportionality and the added value of 
the Programme 

The  Hercule  programme  relates  in  part  to  activities  of  the  European  Commission  and  more 
particularly OLAF, and cooperation with the other European Institutions and bodies, as well 
as with Member States. Therefore, by definition, the key objectives of the proposal cannot be 
attained  by  action  at  the  national  level  alone.  This  programme  aims  at  ensuring  equivalent 
protection in the Member States and in all Union's institutions, bodies, offices and agencies. 
The programme has a cross-border dimension, reinforcing cooperation between stakeholders 
in different Member States and with third countries.  

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The  2011  consultation  of  the  main  stakeholders  concerned  by  the  implementation  of  the 
Hercule  II  programme  has  also  pointed  out  that  the  principles  of  subsidiarity  and 
proportionality  are  fully  respected;  the  measures  envisaged  under  the  programme  do  not  go 
beyond those necessary to achieve the objectives of the programme.  

The  European  Commission  initiates  the  Union's  annual  and  multiannual  programming 
(Article  17  TEU).  The  Union  may  support  the  efforts  of  Member  States  to  improve  their 
administrative  capacity  to  implement  Union  law.  Such  action  may  include  facilitating  the 
exchange of information and of civil servants as well as supporting training schemes (Article 
197  TFEU).  Expenditure  at  Union  level  on  the  protection  of  Union  financial  interests  is 
therefore justified in terms of subsidiarity where it facilitates cooperation between the Union 
and  Member  States  or  between  Member  States,  without  impinging  on  Member  States’ 
responsibilities. 

The added-value of the Hercule III programme is demonstrated by the savings that will derive 
from  the  collective  procurement  of  specialised  equipment  and  databases  to  be  used  by  the 
stakeholders  and  the  savings  derived  from  the  collective  specialised  training.  An  increased 
effectiveness  of  the  cross-border  operations  is  expected  on  the  basis  of  common  technical 
standards and joint training.  

In  addition,  the  objectives  have  been  renewed  with  a  specific  attention  paid  to  the  specific, 
measurable, achievable, relevant, and timed criteria (SMART). This will also help to ensure a 
proper implementation and monitoring. 

3.4. Legal basis 

The legal basis for the proposal is Article 325(4) TFEU; the opinion of the Court of Auditors 
is requested. 

4. 

BUDGETARY IMPLICATION 

The programme will cover the period 2014-2020, and the overall budgetary envelope is EUR 
110 000 000 in current prices. This amount is in line with the Commission's Communication 
on  the  next  Multi-Annual  financial  framework  for  the  period  2014-2020:  ''A  Budget  for 
Europe 2020''.3 

The  legislative  financial  statement  attached  to  this  proposal  for  a  Regulation  sets  out  the 
budgetary implications and the human and administrative resources needed. 

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COM(2011)500 

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2011/0454 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

on the Hercule III programme to promote activities in the field of the protection of the 
European Union's financial interests  

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 325 thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national Parliaments, 

Having regard to the opinion of the Court of Auditors4, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

The  Union  and  the  Member  States  have  set  themselves  the  objective  of  countering 
fraud, corruption and any other illegal activities affecting the financial interests of the 
Union,  including  cigarette  smuggling  and  counterfeiting.  Together  with  the 
Commission,  the  Member  States  should,  in  particular,  organise  close  and  regular 
cooperation between the competent authorities. 

Activities  with  the  aim  of  providing  better  information,  specialised  training  or 
technical and scientific assistance help significantly to protect the financial interests 
of the Union and at the same time to attain an equivalent level of protection across 
the Union. 

Past  support  for  such  initiatives  has  made  it  possible  to  enhance  the  activities 
undertaken  by  the  Union  and  the  Member  States  in  terms  of  fighting  fraud, 
corruption  and  any  other  illegal  activities  affecting  the  financial  interests  of  the 
Union. The objectives of the Hercule programme for both the period 2004-2006 and 
the period 2007-2013 were successfully achieved. 

The Commission has carried out an impact assessment in 2011, so as to evaluate the 
need to continue or not the programme.  

To  continue  and  even  develop  the  activities  at  Union  and  Member  State  level  to 
counter  fraud,  corruption  and  any  other  illegal  activities  affecting  the  financial 

4 

OJ C , p. 

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(6) 

(7) 

(8) 

(9) 

(10) 

(11) 

(12) 

(13) 

interests  of  the  Union,  including  the  fight  against  cigarette  smuggling  and 
counterfeiting, also taking into account the new challenges in a context of budgetary 
austerity, a new programme should be adopted. 

This  Regulation  shall  be  implemented  in  full  compliance  with  the  provisions  of 
Regulation (EC, Euratom) No. XX/XX of XX 2012 on the financial rules applicable 
to the annual budget of the Union.  

The  financial  interests  of  the  Union  should  be  protected  through  proportionate 
measures  throughout  the  expenditure  cycle,  including  the  prevention,  detection  and 
investigation of irregularities, the recovery of funds lost, wrongly paid or incorrectly 
used and, where appropriate, penalties. 

The programme is open to participation by acceeding countries, candidate countries 
and potential candidates benefiting from a pre-accession strategy, as well as partner 
countries of the European Neighbourhood Policy, provided that these countries have 
reached  a  sufficient  level  of  approximation  of  the  relevant  legislation  and 
administrative  methods  to  those  of  the  Union,  in  accordance  with  the  general 
principles and general terms and conditions for the participation of those countries in 
respective  Framework  Agreements, 
the 
Union  programmes  established 
Association Council Decisions or similar Agreements. 

in 

The  Commission  should  present  to  the  European  Parliament  and  to  the  Council  an 
independent  interim  report  on  the  implementation  of  this  Programme,  as  well  as  a 
final report on the achievement of the objectives of this programme. 

the  Union,  without  however 

This Regulation complies with the principles of subsidiarity and proportionality. The 
Hercule  III  programme  facilitates  cooperation  between  the  Member  States  and 
between  the  Commission  and  the  Member  States  in  order  to  protect  the  financial 
interests  of 
impinging  on  Member  States' 
responsibilities, and using resources more efficiently than could be done at national 
level. Action at EU level is necessary and justified as it clearly assists Member States 
collectively  to  protect  the  EU  and  national  budgets  and  encourages  the  use  of 
common  EU  structures  to  increase  cooperation  and  information  exchange  between 
competent authorities. 

The Programme should run for a period of seven years to align its duration with that 
of  the  multiannual  financial  framework  laid  down  in  [Article  1]  of  the  Council 
Regulation  No.  XXXX  laying  down  the  multiannual  financial  framework  for  the 
years 2014-2020. 

The Commission should adopt the annual work programmes setting out the priorities, 
the budget breakdown and the evaluation criteria for the grants for actions. In order 
to  ensure  uniform  conditions  for 
this  Regulation, 
the 
implementing powers should be conferred on the Commission.  

implementation  of 

This  Regulation  establishes,  for  the  entire  duration  of  the  Programme,  a  financial 
envelope  constituting  the  prime  reference,  within  the  meaning  of  point  [17]  of  the 
Inter-institutional Agreement of XX/YY/201Z between the European Parliament, the 
Council  and  the  Commission  on  cooperation  in  budgetary  matters  and  on  sound 

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financial  management,  for  the  budgetary  authority  during  the  annual  budgetary 
procedure, 

HAVE ADOPTED THIS REGULATION: 

Chapter I 

General provisions 

Article 1 

Subject matter  

The  multi-annual  action  programme  "Hercule  III"  (hereinafter  referred  to  as  “the 
Programme”)  is  hereby  established  to  promote  activities  against  fraud,  corruption  and  any 
other illegal activities affecting the financial interests of the Union. The Programme shall run 
from 1 January 2014 to 31 December 2020.  

Article 2 

Added value  

The Programme shall contribute to: 

(a) developing the activities at Union level and the Member States to counter fraud, corruption 
and  any  other  illegal  activities  affecting  the  financial  interests  of  the  Union,  including  the 
fight against cigarette smuggling and counterfeiting;  

(b)  an  increased  transnational  cooperation  at  the  Union  level  and  in  particular  to  the 
effectiveness of the cross-border operations; 

(c)  an  effective  prevention  of  fraud,  corruption  and  any  other  illegal  activities  affecting  the 
financial  interests  of  the  Union,  by  offering  joint  specialised  training  for  staff  of  national, 
regional administrations and to other stakeholders.  

The  programme  in  particular  creates  savings  deriving  from  the  collective  procurement  of 
specialised  equipment  and  databases  to  be  used  by  the  stakeholders  and  those  derived  from 
the collective specialised training.  

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Article 3 

General objective of the Programme  

The general objective of the Programme shall be to protect the financial interest of the Union 
thus enhancing the competitiveness of the European economy and ensuring the protection of 
the taxpayers' money. 

Article 4 

Specific objective of the Programme  

The specific objective of the Programme shall be to prevent and combat fraud, corruption and 
any other illegal activities against the Union's financial interest. 

This objective shall be measured, inter alia, through the amount of recoveries following fraud 
cases  detected  by  joint  actions  and  cross  border  operations,  the  increased  percentage  of 
successful  joint  operations,  and  the  increased  number  of  cases  accepted  by  the  criminal 
investigative authorities. 

Article 5 

Bodies eligible for funding 

The following bodies shall be eligible for Union funding under the programme: 

(a) 
national or regional administrations of a Member State or a third country, as identified 
in Article 6, which promote the strengthening of action at Union level to protect the Union's 
financial interests; 

(b) 
research  and  educational  institutes  and  non-profit  making  entities  provided  that  they 
have been established and have been operating for at least one year, in a Member State or in a 
third country, as identified in Article 6, and promote the strengthening of action at Union level 
to protect the Union's financial interests. 

Article 6 

Participation in the programme 

1. 

2. 

Participating  countries  shall  be  the  Member  States  and  the  countries  referred  to  in 
paragraph 2. 

The Programme shall be open to the participation of any of the following countries: 

(a) 

acceding  countries,  candidate  countries  and  potential  candidates  benefiting 
from  a  pre-accession  strategy,  in  accordance  with  the  general  principles  and 
general terms and conditions for the participation of those countries in Union 

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programmes established in the respective Framework Agreements, Association 
Council Decisions or similar Agreements; 

(b)  partner  countries  under  the  European  Neighbourhood  Policy  provided  that 
these  countries  have  reached  a  sufficient  level  of  alignment  of  the  relevant 
legislation  and  administrative  methods  with  those  of  the  Union.  The  partner 
countries  concerned  shall  participate  to  the  Programme  in  accordance  with 
provisions to be determined with those countries following the establishment of 
Framework Agreements concerning their participation in Union programmes; 

(c) 

the  EFTA/EEA  countries,  in  accordance  with  the  conditions  laid  down  in  the 
EEA Agreement. 

3. 

Representatives of countries forming part of the stabilisation and association process 
for countries of South-Eastern Europe, the Russian Federation, and certain countries 
with  which  the  Union  has  concluded  an  agreement  for  mutual  assistance  in  fraud-
related matters, and representatives of international and other relevant organisations, 
may take part in activities organised under the Programme wherever this is useful for 
the  achievement  of  the  objectives  referred  to  in  Articles  3  and  4.  These 
representatives shall be chosen on the basis of their skills, experience and knowledge 
relevant to the specific activities.  

Article 7 

Eligible actions 

The  Programme  shall  provide,  under  the  same  conditions  set  out  in  the  annual  work 
programme referred to in Article 10, financial support for the following actions: 

(a) 

– 

– 

– 

– 

– 

Provision of specialised technical assistance for national authorities through:  

providing  specific  knowledge,  specialised  and  technically  advanced  equipment  and 
effective information technology (IT) tools facilitating transnational cooperation and 
cooperation with the Commission; 

ensuring the necessary support and facilitating investigations, in particular the setting 
up of joint investigation teams and cross border operations; 

supporting Member States' capacity to store and destroy seized cigarettes as well as 
independent analytical services for the analysis of seized cigarettes; 

enhancing staff exchanges for specific projects, in particular in the field of the fight 
against cigarette smuggling and counterfeiting; 

providing  technical  and  operational  support  for  the  law  enforcement  authorities  of 
the  Member  States  in  their  fight  against  illegal  cross  border  activities  and  fraud 
affecting  the  Union  financial  interests,  including  in  particular  support  for  customs 
authorities; 

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– 

– 

building  information  technology  capacity  throughout  the  Member  States  and  third 
countries  as  referred  to  in  Article  6(2)  by  developing  and  providing  specific 
databases and IT tools facilitating data access and analysis; 

increasing data exchange, developing and providing IT tools for investigations, and 
monitoring intelligence work. 

(b) 

Organisation of  specialised training, and risk analysis training workshops, as well as 
conferences, aimed at: 

– 

– 

– 

– 

– 

– 

– 

further fostering better understanding of Union and national mechanisms; 

exchanging  experience  between  the  relevant  authorities  in  the  Member  States,  and 
third countries as referred to in Article 6(2) as well as representatives of international 
organisations  as  mentioned  in  Article  6  (3),  including  specialised  law  enforcement 
services; 

coordinating the activities of Member States, third countries, and international public 
organisations, as defined in Article 6 (2) and (3); 

disseminating  knowledge,  particularly  on  better 
investigative purposes; 

identification  of 

risk 

for 

developing high-profile research activities, including studies; 

improving cooperation between practitioners and academics; 

further  raising  the  awareness  of  the  judiciary  and  other  branches  of  the  legal 
profession for the protection of the financial interests of the Union. 

(c) 

Any other action, provided by the annual work programmes under article 10, which 
is necessary for attaining the general and specific objectives provided for in Articles 
3 and 4.  

Chapter II 

Financial framework 

Article 8 

Financial envelope 

The financial envelope for the implementation of the programme for the period 2014 to 2020 
shall be EUR 110 000 000, in current prices. 

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Article 9 

Types of financial intervention and co-financing 

The  Commission  shall  implement  the  Programme  in  accordance  with  the  Financial 

1. 
Regulation. 

2.  

Union funding for activities provided for under Article 7 shall take the form of: 

a) grants; 

b) public procurement. 

c)  reimbursement  of  costs  for  participation  in  activities  under  the  programmes  incurred  by 
representatives referred to in article 6(3). 

3. 

The purchase of equipment shall not be the sole component of the grant agreement. 

4. 
The co-financing rate for grants awarded under the programme shall not exceed 80 % 
of  the  eligible  costs.  In  exceptional  and  duly  justified  cases,  defined  in  the  annual  work 
programme referred to in article 10, the co-financing rate shall not exceed 90 % of the eligible 
costs. 

Article 10 

Annual work programmes 

In order to implement the Programme the Commission shall adopt annual work programmes. 
They shall set out the objectives pursued, the expected results, the method of implementation 
and their total amount. They shall also contain a description of the actions to be financed, an 
indication of the amount allocated to each action and an indicative implementation timetable. 
They shall include for grants the priorities, the essential evaluation criteria and the maximum 
rate of co-financing. 

Budget  allocated  to  communication  actions  to  be  carried  out  by  the  Commission  under  this 
Regulation  shall  also  cover  the  corporate  communication  of  the  political  priorities  of  the 
Union. 

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Chapter III 

Monitoring and evaluation 

Article 11 

Monitoring, evaluation and management 

The Commission shall provide annual information on the results of the programme to 
1. 
the European Parliament and to the Council. Information on consistency and complementarity 
with other programmes and activities at Union level shall be included. The Commission shall 
continually  disseminate  the  results  of  the  activities  supported  under  the  Programme.  All 
participating  countries  shall  provide  the  Commission  with  all  the  data  and  information 
necessary to permit the monitoring and evaluation of the Programme.  

2. 
An evaluation of the Programme shall be carried out by the Commission. No later than 
by  31  December  2017,  an  evaluation  report  shall  be  established  by  the  Commission  on  the 
achievement  of  the  objectives  of  all  the  measures,  results and  impacts,  the  efficiency  of the 
use  of  resources  and  its  European  added  value,  in  view  of  a  decision  on  the  renewal, 
modification  or  suspension  of  the  measures.  The  evaluation  shall  additionally  address  the 
scope  for  simplification,  its  internal  and  external  coherence,  the  continued  relevance  of  all 
objectives,  as  well  as  the  contribution  of  the  measures  to  the  Union  priorities  of  smart, 
sustainable and inclusive growth. It shall take into account evaluation results on the long-term 
impact of the predecessor measures. 

In addition, by 31 December 2021, the Commission shall present to the European Parliament 
and to the Council a report on the achievement of the objectives of the programme. 

The longer-term impacts and the sustainability of effects of the Programme shall be evaluated 
with  a  view  to  feed  into  a  decision  on  a  possible  renewal,  modification  or  suspension  of  a 
subsequent Programme. 

Article 12 

Protection of the financial interests of the Union  

1. 
The Commission shall take appropriate measures ensuring that, when actions financed 
under this Regulation are implemented, the financial interests of the Union are protected by 
the  application  of  preventive  measures  against  fraud,  corruption  and  any  other  illegal 
activities,  by  effective  checks  and,  if  irregularities  are  detected,  by  the  recovery  of  the 
amounts  wrongly  paid  and,  where  appropriate,  by  effective,  proportionate  and  deterrent 
penalties. 

2. 
The Commission or its representatives and the Court of Auditors shall have the power 
of audit, on the basis of documents and on-the spot, over all grant beneficiaries, contractors 
and subcontractors who have received Union funds under the Programme. 

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The European Anti-fraud Office (OLAF) may carry out on-the-spot checks and inspections on 
economic operators concerned directly or indirectly by such funding in accordance with the 
procedures  laid  down  in  Regulation  (Euratom,  EC)  No  2185/96  with  a  view  to  establishing 
whether  there  has  been  fraud,  corruption  or  any  other  illegal  activity  affecting  the  financial 
interests of the European Union in connection with a grant agreement or grant decision or a 
contract concerning Union funding. 
Without prejudice to the first and second sub-paragraphs, cooperation agreements with third 
countries  and  international  organisations  and  grant  agreements  and  grant  decisions  and 
contracts  resulting  from  the  implementation  of  this  Regulation  shall  expressly  empower  the 
Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot checks and 
inspections. 

Chapter IV 

Final provisions 

Article 13 

Repeal 

Decisions  804/2004/EC  and  878/2007/EC  of  the  European  Parliament  and  the  Council  are 
repealed with effect from 1 January 2014. 

However, financial obligations related to actions pursued under those Decisions shall continue 
to be governed by those Decisions until their completion. 

Article 14 

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.  

It shall apply as of 1st of January 2014.  

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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EN 

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ANNEX  

Operational objectives of the Programme  

The operational objectives of the Programme shall be the following: 

(1) to improve the prevention and investigation of fraud and other illegal activities beyond its 
currently reached levels by enhancing transnational and multi-disciplinary cooperation; 

(2) to increase the protection of the financial interests of the Union against fraud, facilitating 
the exchange of information, experiences and best practices, including staff exchanges 

(3)  to  strengthen  the  fight  against  fraud  and  other  illegal  activities  providing  technical  and 
operational support to national investigation, and in particular customs and law enforcement 
authorities; 

(4) to limit the exposure of the financial interests of the Union to fraud, corruption and other 
illegal activities, as compared to the level of exposure known today, with a view to reducing 
the development of an illegal economy in key risk areas such as organised fraud, smuggling 
and counterfeiting, especially of cigarettes; 

(5) to enhance the degree of development of the specific legal and judicial protection of the 
financial interests against fraud by promoting comparative law analysis.  

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

This  initiative  intends  to  continue  the  Hercule  programme  with  improved  objectives  and 
methodology. 

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation of The European Parliament and of The Council on the Hercule 
III programme to promote activities in the field of the protection of the European Union's 
financial interests 

1.2. 

Policy area(s) concerned in the ABM/ABB structure5 

Policy area 24.0201: Fight against fraud 

1.3. 

Nature of the proposal/initiative 

(cid:133) The proposal/initiative relates to a new action 

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action6 

X The proposal/initiative relates to the extension of an existing action 

(cid:133) The proposal/initiative relates to an action redirected towards a new action 

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative 

This proposal is part of the Commission’s package linked to the next Multiannual Financial 
Framework  (co-financing  EU  programme  in  the  context  of  the  2014-2020  Multiannual 
Financial Framework). 
The  general  objective  of  the  Programme  shall  be  to  protect  the  financial  interests  of  the 
Union  thus  enhancing  the  competitiveness  of  the  European  economy  and  ensuring  the 
protection of the taxpayers' money. 

1.4.2. 

Specific objective(s) and ABM/ABB activity(-ies) concerned  

Activity number: 24 0201 Fight against fraud 
(a)  The  specific  objective  of  the  Programme  shall  be  to  prevent  and  combat  fraud, 
corruption and any other illegal activities against the Union's financial interests.  
(b) The operational objectives of the Programme shall be the following: 
(1) to improve the prevention and investigation of fraud and other illegal activities beyond 
its currently reached levels by enhancing transnational and multi-disciplinary cooperation; 
(2) to increase the protection of the financial interests of the Union against fraud, facilitating 
the exchange of information, experiences and best practices, including staff exchanges; 

5 
6 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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(3) to strengthen the fight against fraud and other illegal activities providing technical and 
operational support to national investigation, and in particular customs and law enforcement 
authorities; 

(4) to limit the exposure of the financial interests of the Union to fraud, corruption and other 
illegal activities, as compared to the level of exposure known today,  with a view to reducing 
the development of an illegal economy in key risk areas such as organised fraud, smuggling 
and counterfeiting, especially of cigarettes; 

(5) to enhance the degree of development of the specific legal and judicial protection of the 
financial interests against fraud by promoting comparative law analysis.  

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  beneficiaries/groups  targeted  by  the  proposal  will  mainly  be  the  Member  State 
authorities which are competent in the field of the protection of the EU's financial interests. 

Effects shall comprise: 
(1)  possibility  for  the  beneficiaries  to  avail  themselves  of  the  necessary  capacities, 
including a technically equivalent level of  equipment across the EU; 

(2) a positive impact on national and EU investigations, including through the facilitation 
of joint operations, better disclosure of offences and higher quality evidence for the Courts; 

(3) beneficiaries will benefit from an appropriate dissemination of specific knowledge and 
the development of dedicated networks for the protection of the financial interests against 
fraud; 

(4) helping the beneficiaries to reach an academic consensus supporting the Commission, 
in particular as regards the effective legal protection of the financial interests. 

1.4.4. 

Indicators of results and impact 

Specify the indicators for monitoring implementation of the proposal/initiative. 

SPECIFIC OBJECTIVE   To prevent and combat fraud corruption and other illegal 

Result indicators 

1.the amount of recoveries 
following fraud cases 
detected by joint actions 
and cross-border 
operations;  
2. the increased percentage 
of successful joint 
operations 
3. the increased number of 
cases accepted by the 
criminal investigative 
authorities 

activities  
Latest known result 

Amounts recovered 
following OLAF cases in 
2010: 67.9 million EUR.  

Medium term target (result) 

Increase of this amount by 5-
10% 

3 joint customs operations 
supported in 2010 

Increase of 30% in the number 
of joint successful operations. 

Percentage of cases 
dismissed by the criminal 
investigative authorities 
43.9% 

Decease of cases dismissed by 
the criminal investigative 
authorities by 5-10% 

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Main indicators for monitoring the implementation operational objectives: 

(1) Indicator for expected result 1: The development of the perception by the beneficiaries 
of  the  effective  support  of  the  Programme  to  a  better  information  exchange  via  common 
databases  and  equivalent  specialised  equipment  purchased  and  put  into  place  in  the 
Member States; 
2) Indicator for expected result 2: concrete operational impact as expressed for instance by  
increased percentage of successful joint operations . 

(3)  Indicator  expected  result  3:  concrete  impact  on  development  of  relevant  professional 
networks as shown for instance by an increased number of beneficiaries participating in the 
dissemination of specific knowledge; 

(4) Indicator expected result 4: The development of the perception by the beneficiaries of 
the  effective  support  of  the  Programme  to  achieve  academic  consensus  with  a  view  to  
support the Commission in the effective legal protection of the financial interests. 

1.5. 

Grounds for the proposal/initiative 

Article 325 TFEU: close and regular cooperation between the competent authorities of the 
Member States, together with the Commission, in the field of the protection of the financial 
interests of the Union against fraud. 

1.5.1.  Requirement(s) to be met in the short or long term  

Taking  into  account  past  experience  and  results  under  Hercule I  and  II,  Hercule  III  shall 
address several new challenges to protect the EU budget from 2014 (budgetary austerity, , 
Commission new anti-fraud strategy -COM(2011)376 final). See also under 1.5.4 (need for 
coherence and synergies). 

1.5.2.  Added value of EU involvement 

The Hercule III programme is expected to contribute to:  

-  -  an  increased  transnational  cooperation  at  the  Union  level  and  notably  to  the 
effectiveness  of  the  cross-border  operations  on  the  basis  of  general  technical  assistance, 
resulting in a better level of equipment across the EU, thereby facilitating joint operations 
and international support for operations; 

- – an effective prevention of fraud, corruption and any other illegal activities affecting the 
financial interests of the Union offering joint specialised training for staff of national and 
regional administrations, as well as for other stakeholders involved  and also establishing 
useful networks between these authorities and organisations; 

-  -  an  improved  framework  for  the  fight  against  fraud,  corruption  and  any  other  illegal 
activities affecting the financial interests of the Union research and educational institutes 
and  non-profit  making  bodies,  ensuring  support  for  seminars,  conferences,  law  studies, 
dissemination of specialist knowledge and networking activities. 

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1.5.3.  Lessons learnt from similar experiences in the past 

Two  evaluations  of  the  Hercule  programme  have  been  conducted  so  far  by  the 
Commission  services.  The  results  of  these  consultations  in  the  Member  States  show  in 
particular that they are grateful to be given the opportunity to improve the effectiveness of 
their  performance  in  protecting  the  financial  interests  of  the  EU  and  to  reduce  the 
operational cost of their law enforcement activities directed at the latter. 

The intermediate review of the Hercule II programme (2007-2013) comprises the lessons 
learnt as well as the suggestions made by the stakeholders consulted. As a result, Hercule 
III takes into account the shortcomings identified by external stakeholders, in particular as 
regards the absence of possible support for technical assistance, due to a maximum rate for 
co-financing by the Commission below the rate applicable to other measures and the need 
to increase staff exchanges possibilities. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  impact  assessment  shows  that  the  Hercule  programme  is  the  only  EU  programme 
specifically dedicated to the protection of the financial interests of the Union. Hercule III 
should continue to support, for the period covered (2014-2020), a set of activities that are 
complementary to the activities covered by other programmes.  To  that end, a continuous 
dialogue  at  both  national  and  EU  level  will  be  organised  in  order  to  avoid  potential 
overlaps and ensure overall coherence. 

The  financing  programme  Hercule  III  (2014-2020)  will  further  promote  measures 
implementing the Commission Anti-Fraud Strategy (CAFS, COM (2011) 376, 24.6.2011). 
The annual assessment under article 11 paragraph 1 of the Regulation will serve as a basis 
to  monitor  the  results  of  the  programme.  The  reporting  requirements  by  2013  under  the 
CAFS will include relevant results in the implementation of the current Hercule II (2007 - 
2013) financing programme 

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1.6. 

Duration and financial impact 

X Proposal/initiative of limited duration (7 years: from 2014 to 2020). 

–  X  Proposal/initiative in effect from 1/1/2014 to 31/12/2020 

–  X  Financial  impact  from  2014  to  2023  (from  2021  to  2023  only  for  payment 

appropriations) 

1.7.  Management mode(s) envisaged7  

X Centralised direct management by the Commission 

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies 

–  (cid:133)  bodies set up by the Communities8 

–  (cid:133)  national public-sector bodies/bodies with public-service mission 

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of 
the  Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the 
meaning of Article 49 of the Financial Regulation 

(cid:133) Shared management with the Member States 

(cid:133) Decentralised management with third countries 

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments 

A  simplified  procedure  for  grants  under  EUR  50000  will  be  introduced  in  line  with  the 
requirements under the Financial Regulation and its Implementing Rules. 

7 

8 

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

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2. 

MANAGEMENT MEASURES 

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

See Article11 of the proposal according to which: 

- annual information on results, including consistency and complementarily with other EU 
programmes, shall be provided to the European Parliament and to the Council; 

- an independent assessment of the implementation of the objectives of the programme (no 
later than 31 December 2017) is foreseen; 

- in addition, a final report to the budgetary authority will be made on the achievement of 
the objectives of Hercule III by the end of 2021. 

2.2.  Management and control system 

2.2.1.  Risk(s) identified 

The level of risk is considered low for the grant agreements, since for 90% of the cases the 
beneficiaries are public administrations or law enforcement services in the Member States. 

For  the  contracts  awarded  after  a  procurement  process  the  risks  are  narrowed  since  an 
important  part  of  the  expenditure  is  legally  and  financially  covered  by  a  frame  work 
contract concluded for 1 year with the possibility to extend 3 times.  

In  line  with  the  Commission  requirements,  a  risk  assessment  exercise  will  be  performed 
each year. 

Important risks identified in grant files are: 

-  Lenient  interpretation  by  the  beneficiary  of  the  grant  conditions  regarding  eligibility  of 
costs occurred in the implementation of the action; 

-  Expenses  declared  by  the  beneficiary  which  don't  fall  under  the  scope  of  the  grant 
agreement; 

- Staff costs not sufficiently substantiated. 

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2.2.2.  Control method(s) envisaged 

The control procedures for both sections of the programme (grants & procurements) are in 
compliance with the Financial Regulation. 

Ex-ante verifications (commitment & payments) 

OLAF  has  chosen  for  a  financial  management  plan  which  is  a  partially  decentralised  model  for 
which  all  of  the  ex-ante  verification  is  done  in  the  central  Budget  Unit.  In  OLAF,  all  files  are 
verified by at least 3 agents (the file manager and financial verifying agent in the budget unit and 
the operational verifying agent in the unit responsible for the expenditure) before they are accepted 
by the Authorising Officer by sub-delegation. 

Every  head  of  unit  has  been  granted  a  sub-delegation  from  the  Director-General  consequently 
every head of unit is responsible for the implementation of his part of the programme. 

- Ex-ante controls are carried out by the FVA on every transaction which requires an approval of 
the AOSD.  
- Controls are done on the sensitive variables following the results of the risk assessment carried out 
in the context of the Accounting Quality Report (such as: LE and BA, G/L accounts, budget lines, 
amounts and calculations, etc...). 

In 25% of the Hercule files, an OLAF agent is present on the day action of the in order to supervise 
the good implementation of the funds (e.g. conferences and trainings).  

Grants 

- The grant agreement signed by the beneficiaries defines the conditions applying to the financing 
and activities resorting under the grant, including a chapter on control methods. OLAF participates 
in actions financed with members of its own staff. 

-Depending on various variables (the amount of the contract, the complexity of the file) an ex-post 
on  the  spot  control  is  carried  out  by  the  financial  and  operational  file  operators.  During  those 
controls the quality as well as the financial impact of the output is evaluated. OLAF intends to carry 
out approximately 10 on the spot checks per year. 

Procurement  
-  Detailed  terms  of  reference  are  drafted  and  form  the  basis  of  the  specific  contract.  Anti-fraud 
measures are foreseen in all contracts concluded between OLAF and the external party. 

-OLAF performs controls of all deliverables and supervises all operations and services carried out 
by our frame work contractor. 

Additionally, in compliance with Article 12 of the proposal, measures are foreseen at the 
level  of  the  beneficiaries  (supporting  documents  shall  be  made  available  to  the 
Commission).  Audits  may  be  carried  out  during  the  contract  or  the  agreement  and  for  a 
period  of  five  years  following  the  last  payment  in  order  to  lead,  where  appropriate,  to 
recovery decisions by the Commission. The rights of access of Commission staff as well as 
outside authorised personnel are defined and the Court of Auditors and OLAF shall enjoy 
the same rights. 

The  controls  established  enable  OLAF  to  have  sufficient  assurance  of  the  quality  and 
regularity  of  the  expenditure  and  reduce  the  risk  of  non-compliance.  The  depth  of  the 
assessment reaches  generally  Level  3  and  in  some  cases  Level  4  where an  on  the  spot 

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check has been carried9. The above mentioned controls reduce the potential risks virtually 
to zero and reach 100% of the beneficiaries. 

The costs entailed to implement the above control strategy represent 1,24% of the budget. 
This  estimation  is  based  on  the  control  measures  already  in  place  for  the  Hercule  II 
programme 

The  programme  control  strategy  is  deemed  efficient  to  limit  the  risk  of  non-
compliance and is proportionate with the risk entailed. 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 

See Article 12 (2) of the proposal. The Commission shall carry out on-the-spot checks and 
inspections  under  this  programme  in  accordance  with  Council  Regulation  (Euratom,  EC) 
No  2185/96  and,  where  necessary,  investigations  shall  be  conducted  by  OLAF  in 
accordance  with  Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the 
Council. 

9 

Control with reference to and including access to the underlying documentation that is available at the stage of 
the process in question. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected 

•  Existing expenditure budget lines 

In order of multiannual financial framework headings and budget lines 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……….] 

Diff./non-
diff 
(10) 

from 
EFTA11 
countries 

from 
candidate 
countries12 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

24.0201 

Community  action  programme  to  promote 
activities  in  the  field  of  the  protection  of  the 
Union's 
III 
programme) 

(Hercule 

financial 

interests 

Diff 

YES 

YES 

NO 

NO 

Heading of 
multiannual 
financial 
framework 

1 

10 
11 
12 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

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3.2. 

Estimated impact on expenditure 

3.2.1.  Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

1 

Smart and inclusive growth 

EUR million (to 3 decimal places) 
In current prices 

in million EUR with 3 decimal places. 

DG: OLAF 

(cid:121) Operational appropriations  

24 0201 

Year 
201413 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

Year 
2021-
2023 

TOTA
L 

Commitments 

Payments 

(1) 

(2) 

14,800 
12,000 

15,100 
12,500 

15,400 
13,000 

15,700 
13,500 

16,000 
14,000 

16,300 
14,500 

16,700 
14,600 

0  110,000 
15,900  110,000 

nature 

financed 

0 

0 

0 

0 

0 

0 

0 

0 

0 

of 

administrative 
Appropriations 
from the envelope for specific programmes14  
Number of budget line 

an 

TOTAL appropriations 
for DG OLAF 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

14,800 

15,100 

15,400 

15,700 

16,000 

16,300 

16,700 

0  110,000 

12,000 

12,500 

13,000 

13,500 

14,000 

14,500 

14,600 

15,900  110,000 

(cid:121) TOTAL operational appropriations  

Commitments 

(4) 

14,800 

15,100 

15,400 

15,700 

16,000 

16,300 

16,700 

0  110,000 

13 
14 

EN 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), indirect research, direct 
research 

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12,000 

12,500 

13,000 

13,500 

14,000 

14,500 

14,600 

15,900  110,000 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

Payments 

(5) 

(6) 

TOTAL appropriations  
under HEADING 1A 
of the multiannual financial framework 

Commitments 

=4+ 6 

Payments 

=5+ 6 

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

14,800 

15,100 

15,400 

15,700 

16,000 

16,300 

16,700 

0 

110,000 

Payments 

=5+ 6 

12,000 

12,500 

13,000 

13,500 

14,000 

14,500 

14,600 

15,900 

110,000 

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Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

Year 
201415 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

TOTAL 

EUR million (to 3 decimal places) 

DG: OLAF 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

1,842 

0,050 

1.842, 

1.842, 

1.842, 

1.842, 

1.842, 

1.842, 

0,050 

0,050 

0,050 

0,050 

0,050 

0,050 

TOTAL DG OLAF 

Appropriations  

1,892 

1,892 

1,892 

1,892 

1,892 

1,892 

1,892 

12,894 

0,350 

13,244 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

1,892 

1,892 

1,892 

1,892 

1,892 

1,892 

1,892 

13.244 

Year 
201416 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

Year 
2021-
2023 

TOTA
L 

EUR million (to 3 decimal places) 

TOTAL appropriations  

Commitments 

16,692 

16,992 

17,292 

17,592 

17,892 

18,192 

18,592 

0  123.244 

15 
16 

Year N is the year in which implementation of the proposal/initiative starts. 
Year N is the year in which implementation of the proposal/initiative starts. 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
                                                 
under HEADINGS 1 to 5 
of the multiannual financial framework  

Payments 

13,892 

14,392 

14,892 

15,392 

15,892 

16,392 

16,492 

15,900  123,244 

EN 

30 

EN 

 
  
3.2.2.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations 

–  (cid:59)  The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment appropriations in EUR million (to 3 decimal places) 

Indicate objectives 
and outputs  

(cid:216) 

Year  

2014 

Year  

2015 

Year 

2016 

Year  

2017 

Year  

2018 

Year  

2019 

Year 2020 

TOTAL 

OUTPUTS 

Aver
age 
cost  
of 
the 
outp
ut 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Type 
of 
outpu
t 

Cost 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Cost 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Cost 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Cost 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Cost 

s
t
u
p
t
u
o

.
r
e
b
m
u
N

Cost 

Nu
mbe
r. 
outp
uts 

Cos
t 

Tot
al 
Nu
mbe
r  of 
outp
uts 

Cos
t 

OPERATIONAL OBJECTIVE 
N° 1 

Improve 
the 
prevention  and 
investigation of 
fraud and other 
illegal 
activities 
enhancing 
transnational 
and 
disciplinary 

multi-

by 

EN 

31 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
cooperation 

Action  1:  Common  IT 
infrastructures 

Output 1: Co-financing 
of 
the  purchase  of 
technical  hardware  to 
be 
in 
used 
investigations 

2: 
IT 
Output 
the 
developments 
intelligence 
field 
facilitating  data  access 
and analysis. 

in 

0.150 

24 

3.600 

25 

3.800 

26 

3.900 

27 

4.000 

27 

4.100 

29 

4.200 

29 

0.800 

1 

0.800 

1 

0.900 

1 

0.900 

1 

1.000 

1 

1.000 

1 

1.100 

2 

4.400 

4.700 

.4.800 

5.000 

5.100 

5.300 

4.30
0 

187 

27.9
00 

8 

1.20
0 

6.90
0 

5.50
0 

34.8
00 

Sub-total Specific Objective N°1 

OPERATIONAL OBJECTIVE 
N° 2 

the 
Increase 
of 
protection 
financial 
the 
interests  of  the 
Union  against 
fraud 
facilitating  the 
exchange 
of 
information, 

EN 

32 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
experiences 
and 
practices 

best 

Action 1: Training 

0.550 

0.550 

0.550 

0.550 

0.550 

0.600 

Output 1: Co-financing 
of  training  activities  in 
the fight against fraud 

Action 
Organisation 
seminars 
conferences 

2: 
of 
and 

Output  1:  Organisation 
of  training  activities  in 
the fight against fraud 

Output  2:  Conference 
on  work  carried  out  in 
the intelligence field 

Action 
3: 
of 
Coordination 
activities  relating  to 
the  protection  of  the 
Union's 
financial 
interests 

Output  1:  Meetings 
the  national 
between 
authorities 
the 
Member  States  and 
third countries 

of 

5: 
Action 
Dissemination 
of 
scientific  knowledge 
to  Union 
relating 
action 

0.055 

10 

0.550 

1
0 

0.550 

10 

0.550 

10 

0.550 

10 

0.550 

11 

0.600 

11 

0.750 

0.750 

0.750 

0.750 

0.750 

0.750 

0.100 

6 

0.600 

6 

0.600 

6 

0.600 

6 

0.600 

6 

0.600 

6 

0.600 

6 

0.150 

1 

0.150 

1 

0.150 

1 

0.150 

1 

0.150 

1 

0.150 

1 

0.150 

1 

0.300 

0.300 

0.300 

0.300 

0.300 

0.300 

0.15 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.075 

0.075 

0.075 

0.075 

0.075 

0.080 

72 

0.60
0 

0.60
0 

0.75
0 

3.95
0 

3.95
0 

5.25
0 

42 

0.60
0 

4.20
0 

7 

0.15
0 

0.30
0 

1.05
0 

2.10
0 

14 

0.30
0 

2.10
0 

0.08
0 

0.53
5 

EN 

33 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Output  1:  Specialised 
Studies 

0.020 

2 

0.040 

2 

0.040 

2 

0.040 

Output 2: Publications 

0.035 

1 

0.035 

1 

0.035 

1 

0.035 

2 

1 

0.040 

2 

0.040 

2 

0.040 

2 

0.035 

1 

0.035 

1 

0.035 

1 

Sub-total for Specific Objective 2 

OPERATIONAL OBJECTIVE 
N° 3 

1.675 

1.675 

1.675 

1.675 

1.675 

1.730 

14 

7 

0.04
0 

0.04
0 

1.73
0 

0.28
0 

0.25
5 

11.8
35 

and 

Strengthen  the 
fight 
against 
fraud and other 
illegal 
activities 
providing 
technical 
operational 
support 
national 
investigation, 
and 
particular 
customs 
law 
enforcement 
authorities 

and 

to 

in 

Action 1:  

Output 
1:  Specific 
assistance  in  the  field 

EN 

0.030 

4 

0.120 

4 

0.120 

4 

0.120 

4 

0.120 

4 

0.120 

4 

0.120 

4 

28 

0.12
0 

0.60
0 

34 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
of 
computing” 

“forensic 

Output  2:  Subscription 
to  strategic  databases 
necessary 
to 
investigations 

Output  3:  Subscription 
to 
small 
various 
databases  according  to 
the 
the 
investigations 

needs 

of 

0.438 

4 

1.750 

4 

1.750 

4 

1.750 

4 

1.750 

4 

1.750 

4 

1.750 

4 

0.048 

10 

0.480 

1
0 

0.480 

10 

0.480 

10 

0.480 

10 

0.480 

10 

0.480 

10 

Sub-total for Specific Objective n°3 

OPERATIONAL OBJECTIVE 
N° 4 

2.350 

2.350 

2.350 

2.350 

2.350 

2.350 

activities 

interests  of 

Limit  the  exposure  of  the 
financial 
the 
Union  to  fraud  and  other 
as 
illegal 
compared  to  the  level  of 
exposure  currently  known  
with  a  view  to  reducing  the 
development  of  an  illegal 
economy  in  key  risk  areas 
such  as  organised  fraud, 
and 
smuggling 
counterfeiting of cigarettes 

Action  1  Training,  organisation  of 
conferences and seminars 

1.125 

1.125 

1.225 

1.225 

1.325 

1.420 

0.09 

8 

0.705 

8 

0. 705 

8 

0.805 

8 

0.805 

10 

0.905 

11 

1.000 

12 

28 

1.75
0 

12.2
50 

70 

0.48
0 

3.36
0 

2.35
0 

16.4
50 

1.52
0 

1.10
0 

65 

8.96
5 

6.02
5 

Output  1:  Training  in 
the 
joint 
field  of 
surveillance  operations 

EN 

35 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the  fight  against 

in 
cigarette smuggling 

Output  2:  Conferences 
in the field of cigarette 
smuggling 

Output  3:  Cigarettes 
Task  Force 
annual 
conferences 

Action  2:  Technical 
assistance  to  national 
authorities 
involved 
in  the  fight  against 
fraud,  including  the 
fight against cigarette 
smuggling 

and 

Output  1:  Cigarette 
databases 
IT 
developments 
facilitating  data  access 
and analysis relating to 
cigarettes 

Output 2: Co-financing 
activity  of 
of 
the 
equipment 
technical 
specific 
to 
investigations  forming 
part of the fight against 
cigarette smuggling 

Output  3:  Support  for 
joint  operations  in  the 
fight  against  cigarette 
smuggling 

0.150 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.120 

1 

0.120 

1 

0.120 

1 

0.120 

1 

0.120 

1 

0.120 

1 

0.120 

1 

4.450 

4.450 

4.550 

4.650 

4.750 

4.700 

0.150 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.148 

25 

3.700 

25 

3.700 

26 

3.800 

26 

3.900 

27 

4.000 

28 

4.100 

28 

0.075 

2 

0.150 

2 

0.150 

2 

0.150 

2 

0.150 

2 

0.150 

2 

0.150 

2 

Output  4:  Cross-checks  on  confiscated 
cigarettes 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

2 

0.300 

1 

0.150 

1 

0.500 

0.500 

0.500 

0.500 

0.500 

0.500 

14 

0.30
0 

2.10
0 

7 

0.12
0 

4.80
0 

0.84
0 

18.7
00 

14 

0.30
0 

1.80
0 

4.20
0 

185 

19.9
00 

14 

0.15
0 

0.75
0 

12 

0.15
0 

0.50
0 

1.80
0 

3.50
0 

Action  3:  Promoting 
exchanges  of  staff  in 
against 
the 

fight 

EN 

36 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6.075 

6.075 

6.275 

6.375 

6.575 

6.620 

6.82
0 

44.8
15 

cigarette smuggling 

TOTAL 

OPERATIONAL OBJECTIVE 
N° 5 

Enhance 
the  degree  of 
development  of  the  specific 
legal  and  judicial  protection 
interests 
of 
against  fraud  by  promoting 
comparative law analysis.  

the  financial 

Action 1: Scientific studies 

0.300 

0.300 

0.300 

0.300 

0.300 

0.300 

Output 
Comparative 
studies 

1: 
law 

2`: 
Output 
Conferences 
and 
seminars in the field of 
the 
of 
protection 
financial interests 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

4 

0.200 

4 

0.200 

4 

0.200 

4 

0.200 

4 

0.200 

4 

0.200 

4 

Output 
meeting 
chairmen 
Associations 
European lawyers 

3:  Annual 
the 
the 
of 

of 
of 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

0.050 

1 

TOTAL COST 

14,800 

15,100 

15,400 

15,700 

16,000 

16.300 

0.30
0 

0.05
0 

7 

2.10
0 

0.35
0 

28 

0.20
0 

1.40
0 

7 

0.05
0 

0.35
0 

16.7
00 

110,000 –  

EN 

37 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EN 

38 

EN 

 
  
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary 

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations 

–  (cid:59)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

Year 
201417 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

TOTAL 

EUR million (to 3 decimal places) 

1.842 

1.842 

1.842 

1.842 

1.842 

1.842 

1.842 

12.894 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.350 

HEADING 5 
of the 
multiannual 
financial 
framework 

Human 
resources  

Other 
administrative 
expenditure  

Subtotal 
HEADING 5 
of the 
multiannual 
financial 
framework  

Outside 
HEADING 518 
of the 
multiannual 
financial 
framework  

Human 
resources  

Other 
expenditure  
of an 
administrative 
nature 

Subtotal  
outside 
HEADING 5 

17 
18 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
of the 
multiannual 
financial 
framework  

TOTAL 

1.892 

1.892 

1.892 

1.892 

1.892 

1.892 

1.892 

13.244

EN 

40 

   EN 

 
 
3.2.3.2.  Estimated requirements of human resources 

–  (cid:133)  The proposal/initiative does not require the use of human resources 

–  (cid:59)  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full time equivalent units) 

Year 
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020  

(cid:121) Establishment plan posts (officials and temporary agents) 

24 01 06 –A3 01 01  (Headquarters and 
Commission’s Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

14,5 

14,5 

14,5 

14,5 

14,5 

14,5 

14,5 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)19 

XX 01 02 01 (CA, INT, SNE from the 
"global envelope") 

XX 01 02 02 (CA, INT, JED, LA and SNE 
in the delegations) 

XX 01 04 yy 20 

- at Headquarters21 

- in delegations  

XX 01 05 02 (CA, INT, SNE - Indirect 
research) 

10 01 05 02 (CA, INT, SNE - Direct 
research) 

Other budget lines (specify) 

TOTAL 

14,5 

14,5 

14,5 

14,5 

14,5 

14,5 

14,5 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

19 

20 
21 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines) 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

41 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Officials and temporary agents 

14,5 officials (5,5 AD and 9 AST)  

14,5 officials x 127.000€ = 1,842Mio 

External personnel 

EN 

42 

   EN 

 
 
3.2.4.  Compatibility with the current multiannual financial framework 

–  (cid:59)  Proposal/initiative  is  compatible  the  2014-2020  multiannual  financial  framework  as 

proposed by Communication COM (2011)500. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the  multiannual 

financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding amounts. 

–  (cid:133)  Proposal/initiative  requires  application  of  the  flexibility  instrument  or  revision  of  the 

multiannual financial framework22. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. 

3.2.5.  Third-party contributions 

–  (cid:59)The proposal/initiative does not provide for co-financing by third parties 

–  The proposal/initiative provides for the co-financing estimated below: 

3.3. 

Estimated impact on revenue 

–  (cid:59)  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:133) 

on own resources 

on miscellaneous revenue 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative23 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

Budget  revenue 
line: 

Appropriations 
available for the 
ongoing budget 
year 

Article 
…………. 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

22 
23 

See points 19 and 24 of the Interinstitutional Agreement. 
As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. 
gross amounts after deduction of 25% for collection costs. 

EN 

43 

   EN 

 
 
 
 
 
 
 
 
 
 
 
                                                 
Specify the method for calculating the impact on revenue. 

EN 

44 

   EN 

 
 
 
ANNEX to 
the LEGISLATIVE FINANCIAL STATEMENT 

Name of the proposal/initiative: 

Proposal for a regulation OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on 
the  Hercule  III  programme  to  promote  activities  in  the  field  of  the  protection  of  the  European 
Union's financial interests 

(1) 

(2) 

(3) 

NUMBER and COST of HUMAN RESOURCES CONSIDERED NECESSARY 

COST of OTHER EXPENDITURE of an ADMINISTRATIVE NATURE 

METHODS used for the CALCULATION of COSTS 

Relating to human resources 

(1) 

Relating to other administrative expenditure 

This annex will accompany the legislative financial statement during the inter-services consultation. 

The tables included in the present serve to fill in the tables in the legislative financial statement. 

The present annex is an internal document to be kept within Commission services. 

EN 

45 

   EN 

 
 
 
 
 
 
 
 
 
 
 
(1) 

Number and cost of human resources considered necessary 

X 

The proposal/initiative requires the use of human resources, described as follows: 

HEADING 5 
of the multiannual financial 
framework 

Year 2014 

Year 2015 

Year 2016 

Year 2017 

Year 2018 

Year 2019 

Year 2020 

TOTAL 

FTE 

Appropriat
ions 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropria
tions 

FTE 

Approp
riations 

FTE 

Appropri
ations 

FTE 

Appropria
tions 

FTE 

Appropriatio
ns 

EUR million (to 3 decimal places) 

(cid:121) Establishment Plan Posts (officials and temporary agents) 

24 01 06 – A3 01 01 (at 
in 
headquarters 
Commission 
representation 
offices in Member States) 

and 

XX 01 01 02  (in 
delegations) 

AD 

5,5 

0.699 

5,5 

0.699 

5,5 

0.699 

5,5 

0.699 

5,5 

0.699 

5,5 

0.699 

5,5 

0.699 

38.5 

4.893 

AST 

9 

1.143 

9 

1.143 

9 

1.143 

9 

1.143 

9 

1.143 

9 

1.143 

9 

1.143 

63 

8.000 

AD 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

AST 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

(cid:121) External personnel 24 

24 01 06 00  (the global 
envelop) 

CA 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

INT 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

TA 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

24 

EN 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National 
Expert;  

46 

E

 
  
 
                                                 
SNE 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

CA 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

INT 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

XX 01 02 02  (in 
delegations) 

JED 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

LA 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

SNE 

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Other budget line  
(please specify) 

Sub-total – 
HEADING 5 
of the multiannual 
financial framework 

14.5 

1.842 

14.5 

1.842 

14.5 

1.842 

14.5 

1.842 

14.5 

1.842 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

14.
5 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

1.842 

14.5 

1.842 

101.
5 

12.894 

24 is the policy area or budget title concerned 

Outside HEADING 5 
of the multiannual financial 
framework 

Year 2014 

Year 2015 

Year 2016 

Year 2017 

Year 2018 

Year 2019 

Year 2020 

TOTAL 

FTE 

Appropria
tions 

FTE 

Appropriat
ions 

FTE 

Approp
riations 

FTE 

Appropriatio
ns 

FTE 

Appropriatio
ns 

FTE 

Appropriatio
ns 

FT
E 

Appropri
ations 

FTE 

Appropriat
ions 

(cid:121) Establishment Plan Posts (officials and temporary agents) 

EN 

47 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
XX  01  05  01  
(indirect 
Research) 

AD 

p.m. 

p.m. 

AST 

p.m. 

p.m. 

10 01 05 01  
(direct 
Research) 

AD 

p.m. 

p.m. 

AST 

p.m. 

p.m. 

(cid:121) External personnel 25 

XX 01 04 
yy 

Appropriati
ons for 
external 
personnel 
authorised 
on former 
"BA" lines 

At 
headquarte
rs 

In 
delegation
s 

CA 

p.m. 

p.m. 

IN
T 

SN
E 

p.m. 

p.m. 

p.m. 

p.m. 

CA 

p.m. 

p.m. 

IN
T 

JE
D 

p.m. 

p.m. 

p.m. 

p.m. 

LA 

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m.

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m.

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

25 

EN 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young Experts in Delegations); LA= Local Agent; SNE= Seconded National 
Expert;  

48 

E

 
  
                                                 
SN
E 

p.m. 

p.m. 

CA 

p.m. 

p.m. 

IN
T 

SN
E 

p.m. 

p.m. 

p.m. 

p.m. 

CA 

p.m. 

p.m. 

IN
T 

p.m. 

p.m. 

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m
. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

XX 01 05 02  (Indirect 
research) 

10 01 05 02  (Direct 
research) 

Sub-total – Outside 
HEADING 5 
of the multiannual 
financial framework 

Year 2014 

Year 2015 

Year 2016 

Year 2017 

Year 2018 

Year 2019 

Year 2020 

TOTAL 

FTE 

Appropri
ations 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropr
iations 

FTE 

Appropria
tions 

EUR million (to 3 decimal places) 

14.5 

1.842 

14.5 

1.842 

14.5 

1.842 

14.5 

1.842  14.5 

1.842 

14.5 

1.842 

14.5 

1.842 

101.
5 

12.894 

49 

E

TOTAL 

HEADING 5 and 
Outside HEADING 5 
of the multiannual 

EN 

 
  
 
 
 
 
 
 
financial framework 

The human resources required will be met by the allocations already assigned to management of the action and/or to be redeployed, together if necessary with any additional allocation 
which may be granted to the managing DG under the annual allocation procedure and in the light of existing budgetary constraints 

Cost of other expenditure of an administrative nature 

X 

The proposal/initiative requires the use of appropriations of an administrative nature, described as follows: 

HEADING 5 
of the multiannual financial framework 

At headquarters: 

24  01 06 00 A3 01 02 11 - Missions and representation 
costs 

24 01 06 00 - Conferences and meetings 

24 01 06 00 - Meetings of Committees26  

24 01 06 00 - Studies and consultations 

24 01 06 00 - Management & information IT systems 

24 01 06 00 - Further training 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

26 

Specify the type of committee and the group concerned. 

EN 

Year  
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR million (to 3 decimal places) 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.350 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

50 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
24 01 06 00 - Equipment and furniture 

24 01 06 00 04 - Services & other operating expenditure  

In delegations: 

24 01 06 00 - Missions, conferences and representation 
costs 

24 01 06 00 - Further training of staff 

24 01 06 00 - Acquisition, renting and related expenditure 

24 01 06 00 - Equipment, furniture, supplies and services 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

Sub-total HEADING 5 
of the multiannual financial framework 

24 is the policy area or budget title concerned 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.350 

EN 

51 

E

 
  
 
 
 
 
 
 
 
 
 
Year  
2014 

Year 
2015 

Year 
2016 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

TOTAL 

EUR  million (to 3 decimal places) 

Outside HEADING 5 
of the multiannual financial framework 

24 01 06 - Administrative and technical assistance 
(excluded external personnel), financed by operational 
appropriations (former "BA" lines) 

- at Headquarters 

- in delegations 

24 01 06 00– other management expenditure for indirect 
research 

24 01 06 00 - other management expenditure for direct 
research 

Sub-total Outside HEADING 5 
of the multiannual financial framework 

24 is the policy area or budget title concerned 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

TOTAL 
HEADING 5 and Outside HEADING 5 
of the multiannual financial framework 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.050 

0.350 

EN 

52 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The administrative appropriations required will be met by the appropriations which are already assigned to management of the action and/or which have been redeployed, 
together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of existing budgetary constraints. 

EN 

53 

E

 
  
 
 
 
(1) 

Methods of calculation used to estimate costs 

Relating to human resources 

Give details of the method of calculation used for each category of staff (assumptions, average costs, etc.) 

HEADING 5 of the multiannual financial framework 

Reminder: Average costs for each category of staff are available on the BudgWeb site: 
http://www.cc.cec/budg/pre/legalbasis/pre-040-020_preparation_en.html#forms 

(cid:121) relating to establishment plan posts (officials and temporary agents) 
Administrative support: 0,5 AD + 2 AST Budgetary management and antifraud : 0,5 AST 
Programme management: 5 AD + 6,5 AST 

• 

• 

Official: 127.000 EUR/year 

Temporary agent: 127.000 EUR/year 

(cid:121) relating to external personnel 
Not applicable 
Current average rates for officials and temporary agents have been used: 

• 

• 

• 

Contractual agent: 64.000 EUR/year 

Technical assistance: 160,000 EUR/year 

Seconded National Expert: 73.000 EUR/year 

Outside HEADING 5 of the multiannual financial framework 

(cid:121) relating to establishment plan posts (Research officials and temporary agents) 

N/A 
(cid:121) relating to external personnel 

N/A 

Relating to expenditure of an administrative nature 

Give details of the method of calculation used for each budget line, 

underlying assumptions (e.g. number of meetings per year, average costs, etc.) 

HEADING 5 of the multiannual financial framework 

Missions: assumption of 50 missions per year with average cost of EUR 1,000 per mission 

EN 

54 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 5 of the multiannual financial framework 

N/A 

EN 

55 

   EN