Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the European Foundation for the improvement of living and working conditions (Eurofound), and repealing Council Regulation (EEC) No 1365/75
Date: 2016-08-23
Institutions: Directorate-General for Employment, Social Affairs and Inclusion, European Commission
Subjects: Eurofound, operation of the Institutions

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   EUROPEAN COMMISSION  Brussels, 23.8.2016  COM(2016) 531 final 2016/0256 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing the European Foundation for the improvement of living and working conditions (Eurofound), and repealing Council Regulation (EEC) No 1365/75  
 
EXPLANATORY MEMORANDUM 

1.  

 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  proposal  aims  to  revise  the  founding  regulation  of  the  European  Foundation  for  the 
Improvement of Living and Working Conditions (Eurofound) from 1975. The reasons for the 
revision are twofold.  

The  revision  of  the  Eurofound's  Founding  Regulation  will  align  certain  provisions  of  the 
existing  Regulation  governing  Eurofound  with  the  Common  Approach  on  Decentralised 
Agencies.  

The  revision  also  offers  the  opportunity  to  update  the  objectives  and  tasks  of  Eurofound. 
Since  its  establishment  in  1975,  the  Foundation  has  adapted  its  activities  to  the  overall 
societal, institutional and economic developments and emerging trends in European policies 
in the field of living and working conditions. The new objectives and tasks will be adjusted to 
better reflect these developments and Eurofound's current contribution to the development of 
social and work-related policies, by providing relevant and high quality research output in the 
field of employment, industrial relations, working and living conditions.  

The revision is not an initiative within the Regulatory Fitness Programme (REFIT). 

The other two so-called tripartite Agencies of the European Union, the European Agency for 
Safety  and  Health  at  Work  (EU-OSHA)  and  the  European  Centre  for  the  Development  of 
Vocational  Training  (CEDEFOP)  will  also  undergo  a  revision  of  their  respective  Founding 
Regulations at the same time as Eurofound. 

 

Consistency with the existing policy provisions in the policy area 

The  Eurofound's  Founding  Regulation  has  been  amended  three  times,  in  1993,  2003,  and 
2005,  mainly  to  take  account  of  EU  enlargement  or  Treaty  changes.  However,  such 
amendments have not significantly altered the fundamentals of the Agency. 

This  revision  will  provide  a  clearer  description  of  the  role  of  Eurofound  in  supporting  the 
Commission, other EU institutions and bodies, Member States and social partners in shaping 
policies  on  living  and  working  conditions  as  well  as  in  promoting  social  dialogue.  It  will 
update the mandate of Eurofound as a centre for analysis, research and policy monitoring in 
these policy areas. 

 

Consistency with other Union policies 

The  role  of  Eurofound  is  to  inform  and  contribute  towards  better  evidence-based 
policymaking  in  areas  relevant  to  living  and  working  conditions.  The  revision  takes  into 
consideration  the  existing  EU  policies  on  living  and  working  conditions,  and  foresees 
complementarity with ongoing and planned research in this area carried out with EU funding, 
such as those financed under the Horizon 2020 programme. 

2.  

 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposed  legal  basis  is  Article  153  of  the  Treaty  on  the  Functioning  of  the  European 
Union (TFEU), which covers the activities carried out by Eurofound in the area of working 
and living conditions where it refers to measures designed to encourage cooperation between 
Member States in Art 153(2)(a) TFEU.  

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 

Subsidiarity (for non-exclusive competence)  

This proposal addresses certain aspects relating to how the EU agency operates internally and 
within  the  EU  institutional  framework.  Therefore,  the  objectives  of  this  proposal  cannot  be 
achieved by action at national level. 

 

Proportionality 

The  revision  of  the  Founding  Regulation  should  be  considered  in  terms  of  its  impact  on 
administrative  burden  and  budgetary  costs  so  as  to  respect  the  proportionality  principle.  A 
general  principle  which  shall  guide  the  revision  is  the  necessity  to  keep  the  text  of  the 
Founding  Regulation  simple,  clear  and  flexible,  while  relying  on  other  forms  of  regulation 
(e.g. Rules of Procedure) for detailed provisions. A Founding Regulation should have a mid- 
term lifespan and ensure the necessary flexibility to allow for possible future developments in 
the organisation without a need for a further revision.  

 

Choice of the instrument 

The  instrument  will  be  a  Regulation  of  the  European  Parliament  and  the  Council  repealing 
and replacing the existing Regulation (EEC) 1365/75 of the Council. 

3. 

 

RESULTS  OF  EX-POST  EVALUATIONS,  STAKEHOLDER  CONSULTATIONS  AND 
IMPACT ASSESSMENTS 

Ex-post evaluations/fitness checks of existing legislation 

The most recent external ex-post evaluation was concluded by the Agency and  focused on the 
Multi-annual Work Programme 2009-2012. 

Stakeholder consultations 

In line with the requirements of Article 154 TFEU, management and labour at EU level have 
been consulted on both the possible direction of Union action and the content of the envisaged 
proposal. Both management and labour insisted in their opinion on maintaining the tripartite 
nature of the Agency and reflecting this in the objectives of the Agency and in the balanced 
representation  of  all  groups  in  its  governance  structures.  They  furthermore  requested  to 
maintain a Deputy Director function as foreseen under the 1975 Regulation.   

The  Commission  has  kept  other  relevant  stakeholders  informed  on  broad  decisions 
concerning this revision exercise and consulted them when necessary.  

 

Collection and use of expertise 

Not applicable. 

 

Impact assessment 

Given the limited revision of the founding act, an impact assessment was not carried out. 

 

Regulatory fitness and simplification 

Not applicable. The proposal is not linked to REFIT. 

 

Fundamental rights 

Not applicable. 

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4.  

BUDGETARY IMPLICATIONS 

The budgetary implications in terms of human and financial resources, as presented in more 
detail  in  the  Legislative  Financial  Statement,  are  in  line  with  Commission  Communication 
(2013)519.  

5. 

 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

 In  accordance  with  the  Common  Approach,  the  proposal  includes  a  provision  on  the 
evaluation  of  the  Agency  by  the  Commission.  In  addition  to  making  this proposal,  the 
Commission  envisages  to  carry  out  a  cross-cutting  evaluation  to  assess  the  Agency's 
objectives,  mandates,  governance  and  tasks,  also  in  relation  to  other  Agencies  acting  in  the 
field of labour market, working conditions, vocational education and training and skills. 

 

Explanatory documents (for directives) 

Not applicable.  

 

DETAILED  EXPLANATION  OF  THE  SPECIFIC  PROVISIONS  OF  THE 
PROPOSAL 

The revision offers the opportunity to update Eurofound's objectives and tasks to reflect the 
developments within the Agency and in the context in which it operates since the adoption of 
the  first  Founding  Regulation  in  1975.  It  will  allow  defining  more  precisely  the  role  of 
Eurofound in supporting the Commission, Member States and social partners in shaping and 
implementing  policies  aimed  at  the  improvement  of  working  and  living  conditions  and  in 
support of social dialogue. 

Furthermore, the revision of the Founding Regulation creates the opportunity to provide for 
anti-fraud measures, conflict of interest policy, evaluation and review and the establishment 
of a headquarters agreement.  

The  revision  will  also  harmonise  the  provisions  on  programming  and  reporting  with  the 
requirements  set  by  the  revised  Framework  Financial  Regulation.  It  will  lead  to  modifying 
and  aligning  the  appointment  procedure  of  the  Director  (Executive  Director)  with  the 
procedure provided for in the Common Approach and it will suppress the current position of 
Deputy Director. The role of appointing authority will be conferred to the Management Board 
of  the  Agency.  The  terminology  for  the  management  structure  will  be  aligned  with  the 
Common Approach. Certain elements of the Founding Act are not being reviewed in the light 
of the Common Approach in the framework of this proposal, pending further evaluation. 

Regarding the appointment by the Council of  the Management Board members representing 
the employers' and employees' organisations from each Member State, it is proposed that this 
is  done  on  the  basis  of  a  list  submitted  by  the  EU  social  partners'  organisations  Business 
Europe and ETUC. 

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2016/0256 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing the European Foundation for the improvement of living and working 
conditions (Eurofound), and repealing Council Regulation (EEC) No 1365/75 

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 153(2)a 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 European Economic and Social Committee1,  
Having regard to the opinion of the Committee of the Regions2, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

The  European  Foundation  for  the  improvement  of  living  and  working  conditions 
(Eurofound)  was  established  by  Regulation  (EEC)  No  1365/753  to  contribute  to  the 
planning  and  establishment  of  better  living  and  working  conditions  through  action 
designed to increase and disseminate knowledge likely to assist this development. 

Since its establishment in 1975 Eurofound has played an important role in supporting 
the improvement of living and working conditions throughout the European Union. At 
the  same  time  the  concepts  and  significance  of  living  and  working  conditions  have 
evolved under the influence of societal developments and fundamental changes in the 
labour markets. In this light terminological adjustments are required in describing the 
objectives and tasks of Eurofound as compared to Regulation (EEC) No 1365/75. 

Regulation  (EEC)  No  1365/75  has  been  amended  several  times.  Since  further 
amendments are to be made, it should therefore be replaced and repealed in the interest 
of clarity. 

The Agency should be governed and operated in line with the principles of the Joint 
Statement  of  the  European  Parliament,  the  Council  of  the  European  Union  and  the 
European  Commission  on  decentralised  agencies  of  19  July  2012  to  the  extent 
possible.  This  proposal  therefore  does  not  prejudge  any  further  amendments  to  the 
Founding  Regulation  of  Eurofound  which  the  Commission  may  wish  to  propose 
following  further  evaluation,  as  provided  for  in  this  act  or  on  its  own  initiative.  The 
Commission  will  evaluate  the  objectives,  mandate,  governance  and  tasks  of  all  EU 

1 
2 
3 

OJ C , , p. . 
OJ C , , p. . 
Regulation (EEC) No 1365/75 of the Council of 26 May 1975 on the creation of a European Foundation 
for the improvement of living and working conditions (OJ L 139, 30.5.1975, p.1). 

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(5) 

(6) 

(7) 

(8) 

(9) 

Agencies  acting  in  the  field  of  labour  market,  working  conditions,  vocational 
education and training and skills. 

As  the  three  so-called  tripartite  agencies,  the  European  Foundation  for  the 
improvement of living and working conditions (Eurofound), the European Agency for 
Safety and Health at Work (EU-OSHA) and the European Centre for the Development 
of  Vocational  Training  (CEDEFOP)  address  issues  related  to  the  labour  market  and 
working  environment  and  vocational  education  and  training  and  skills,  close 
coordination among the three Agencies is required and ways to enhance efficiency and 
synergies should be exploited. In addition, where relevant, the Agency should seek to 
engage  in  efficient  cooperation  with  the  European  Commission's  in-house  research 
capacities.  

The  financial  provisions  and  provisions  for  programming  and  reporting  set  out  in 
Regulation  (EEC)  No  1365/75  should  be  aligned  with  Commission  Delegated 
Regulation (EU) No 1271/2013.4 

The provisions concerning Eurofound's staff set out in Regulation (EEC) No 1365/75 
should  be  aligned  with  the  Staff  Regulations  of  Officials  of  the  European  Union 
(‘Staff  Regulations’)  and  the  Conditions  of  Employment  of  Other  Servants  of  the 
European Union (‘CEOS’), laid down by Council Regulation (EEC, Euratom, ECSC) 
No 259/68.5 

The  Agency  should  take  the  necessary  measures  to  ensure  safe  handling  and 
processing of confidential information. Where required Eurofound will adopt security 
rules  as  set  out  in  Commission  Decision  (EU,  Euratom)  2015/4436  and  Commission 
Decision (EU, Euratom) 2015/444.7 

It  is  necessary  to  provide  for  transitional  budgetary  provisions  and  transitional 
provisions  on  the  Management  Board,  Executive  Director  and  staff  to  ensure 
continuation  of  activities  of  the  Agency  pending  the  entry  into  force  of  this 
Regulation, 

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5 

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Commission  Delegated  Regulation  (EU)  No 1271/2013  of  30 September  2013  on  the  framework 
financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 
of the European Parliament and of the Council (OJ L 328, 7.12.2013, p. 42), 
Regulation  (EEC,  Euratom,  ECSC)  No  259/68  of  the  Council  of  29  February  1968  laying  down  the 
Staff  Regulations  of  Officials  and  the  Conditions  of  Employment  of  Other  Servants  of  the  European 
Communities  and  instituting  special  measures  temporarily  applicable  to  officials  of  the  Commission 
(OJ L 56, 4.3.1968, p. 1). 
Commission Decision (EU, Euratom) 2015/443 of 13 March 2015 on Security in the Commission (OJ L 
72, 17.3.2015, p. 41). 
Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the  security rules for protecting 
EU classified information (OJ L 72, 17.3.2015, p. 53). 

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HAVE ADOPTED THIS REGULATION: 

Chapter I 
Objectives and tasks of the Agency 

Article 1 - Objectives of the agency 

1. 

2. 

The  European  Foundation  for  the  improvement  of  living  and  working  conditions, 
('the  Agency'),  also  referred  to  as  'Eurofound',  is  hereby  established  as  a  European 
Union Agency. 

The  objectives  of  the  Agency  shall  be  to  increase  and  disseminate  knowledge  to 
assist the Commission,  other  EU institutions  and bodies, Member States  and social 
partners  in  shaping  and  implementing  policies  aimed  at  the  improvement  of  living 
and  working  conditions,  in  supporting  employment  policies  and  in  promoting  the 
dialogue between management and labour. 

1. 

The  Agency  shall  perform  the  following  tasks  with  respect  to  the  policy  areas 
referred to in Article 1(2): 

Article 2 – Tasks 

(a) 

(b) 

(c) 

analyse  developments  and  provide  comparative  analyses  of  policies, 
institutional frameworks and practices across countries; 

analyse 
trends 
developments; 

in 

living  and  working  conditions  and 

labour  market 

analyse the developments in industrial relation systems and in particular social 
dialogue at EU level and in the Member States; 

(d)  undertake  or  commission  studies  and  carry  out  research  on  relevant  socio-

economic developments and related policy issues; 

(e)  provide  forums  for  exchange  of  experiences  and  information  between 
stakeholders, including social partners, and support implementation of reforms 
and policies at national level; 

(f)  manage and make available tools and datasets to policymakers, social partners, 

academia and other stakeholders. 

In carrying out its tasks, the Agency shall maintain a close dialogue particularly with 
specialised  bodies,  whether  public  or  private,  public  authorities  and  workers'  and 
employers’  organisations.  The  Agency,  without  prejudice  to  its  own  aims,  shall 
ensure cooperation with other European Union Agencies aimed at avoiding overlaps 
and promoting synergy and complementarity in their activities, in particular with the 
European  Agency  for  Safety  and  Health  at  Work,  the  European  Centre  for  the 
Development of Vocational Training and, where relevant, with other EU Agencies. 

2. 

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Chapter II 
Organisation of the Agency 

Article 3  – Administrative and management structure 

The Agency's administrative and management structure shall comprise: 

(a) 

(b) 

(c) 

a Management Board, which shall exercise the functions set out in Article 5; 

an Executive Board which shall exercise the functions set out in Article 10; 

an Executive Director who shall exercise the responsibilities set out in Article 
11. 

SECTION 1: MANAGEMENT BOARD 

Article 4 – Composition of the Management Board 

1. 

The Management Board shall be composed of: 

(a)  one member representing the Government from each Member State; 

(b)  one  member  representing  the  employers'  organisations  from  each  Member 

State; 

(c)  one  member  representing  the  employees'  organisations  from  each  Member 

State; 

(d) 

three members representing the Commission. 

All members referred to in points (a)-(d) shall have voting rights.  

The members referred to in points (a), (b) and (c) shall be appointed by the Council 
on  the  basis  of  lists  of  candidates  submitted  by  the  Member  States,  the  European 
employers’  and  employees’  organisations  respectively.  The  Commission  shall 
appoint the members who are to represent it. 

Each member of the Management Board shall have an alternate. The alternate shall 
represent the member in his/her absence. The alternate shall be appointed following 
the procedure as provided for in the first paragraph.  

Members of the Management Board and their alternates shall be appointed in light of 
their knowledge in the field of social and work-related policies, taking into account 
relevant  managerial,  administrative  and  budgetary  skills.  All  parties  represented  in 
the Management Board shall make efforts to limit turnover of their representatives, 
in order to ensure continuity of the board's work. All parties shall aim to achieve a 
balanced representation between men and women on the Management Board. 

The  term  of  office  for  members  and  their  alternates  shall  be  four  years.  That  term 
shall be extendable. Upon the expiry of their term of office or in the event of their 
resignation, members shall remain in office until their appointments are renewed or 
until they are replaced. 

Within  the  Management  Board,  the  representatives  of  governments,  employers' 
organisations and employees' organisations shall each form a group. Each group shall 
designate a coordinator in order to enhance the efficiency of the deliberations within 
and between the groups. The coordinators of the employers' and employees' groups 
shall be representatives of their respective organisations at European level and do not 

2. 

3. 

4. 

5. 

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need to be designated from among the appointed Board members. Coordinators who 
are not appointed Board members within the meaning of paragraph 1 shall take part 
in the Management Board meetings without the right to vote.  

Article 5 – Functions of the Management Board 

1. 

The Management Board shall: 

(a)  give the general orientations for the agency's activities and adopt each year  the 
Agency's programming document by a majority of two-thirds of the members 
entitled to vote and in accordance with Article 6; 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

adopt, by a majority of two-thirds of the members entitled to vote, the annual 
budget  of the  Agency and exercise other functions in respect of the Agency's 
budget pursuant to Chapter III; 

adopt  the  consolidated  annual  activity  report  together  with  its  assessment  on 
the  Agency's  activities  and  send  these  by  1  July  each  year    to  the  European 
Parliament, the Council, the Commission and the European Court of Auditors. 
The consolidated annual activity report shall be made public; 

adopt  the  financial  rules  applicable  to  the  Agency  in  accordance  with  Article 
17; 

adopt an anti-fraud strategy, proportionate to fraud risks taking into account the 
costs and benefits of the measures to be implemented; 

adopt  rules  for  the  prevention  and  management  of  conflicts  of  interest  in 
respect of its members and independent experts; 

adopt and regularly update the communication and dissemination plans  based 
on an analysis of needs; 

(h) 

adopt its rules of procedure; 

(i) 

(j) 

(k) 

(l) 

in  accordance  with  paragraph  2,  exercise,  with  respect  to  the  staff  of  the 
Agency,  the  powers  conferred  by  the  Staff  Regulations  on  the  Appointing 
Authority  and  by  the  Conditions  of  Employment  of  Other  Servants  on  the 
Authority Empowered to Conclude a Contract of Employment ("the appointing 
authority powers");  

adopt appropriate implementing rules for giving effect to the Staff Regulations 
and  the  Conditions  of  Employment  of  Other  Servants  in  accordance  with 
Article 110 of the Staff Regulations; 

appoint the Executive Director and where relevant extend the term of office or 
remove the Executive Director from office in accordance with Article 19; 

appoint  an  Accounting  Officer,  subject  to  the  Staff  Regulations  and  the 
Conditions of Employment of other servants, who shall be totally independent 
in the performance of his/her duties; 

(m)  monitor adequate follow-up to findings and recommendations stemming from 
the  internal  or  external  audit  reports  and  evaluations,  as  well  as  from 
investigations of the European Anti-fraud Office (OLAF). 

(n) 

take all decisions on the establishment of the Agency's internal structures and, 
where  necessary,  their  modification,  taking  into  consideration  the  Agency's 
activity needs as well as having regard to sound budgetary management. 

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2. 

1. 

2. 

3. 

4. 

5. 

8 

(o) 

authorise  the  establishment  of  working  arrangements  in  accordance  with 
Article 30 (1). 

The  Management  Board  shall  adopt,  in  accordance  with  Article  110  of  the  Staff 
Regulations, a decision based on Article 2(1) of the Staff Regulations and on Article 
6 of the Conditions of Employment of Other Servants, delegating relevant appointing 
authority powers to the Executive Director and defining the conditions under which 
this  delegation  of  powers  can  be  suspended.  The  Executive  Director  shall  be 
authorised to sub-delegate those powers. 

Where exceptional circumstances so require, the Management Board may by way of 
a decision temporarily suspend the delegation of the appointing authority powers to 
the Executive Director and those sub-delegated by the latter and exercise them itself 
or delegate them to one of its members or to a staff member other than the Executive 
Director. 

Article 6 – Annual and multi-annual programming 

Each  year,  the  Executive  Director  shall,  in  line  with  Article  11  (5)  c,  draw  up  a 
programming document containing multiannual and annual programming in line with 
Article 32 of the Commission delegated Regulation (EU) No 1271/20138 and taking 
into account guidelines set by the Commission. 

By  30  November  each  year,  the  Management  Board  shall  adopt  the  programming 
document referred to in paragraph 1 and shall forward it to the European Parliament, 
the Council and the Commission no later than 31 January as well as any later updated 
version of that document.  

The  programming  document  shall  become  definitive  after  final  adoption  of  the 
general budget of the Union and if necessary shall be adjusted accordingly. 

The annual work programme shall comprise detailed objectives and expected results 
including performance indicators. It shall also contain a description of the actions to 
be financed and an indication of the financial and human resources allocated to each 
action, 
the  principles  of  activity-based  budgeting  and 
management.  The  annual  work  programme  shall  be  coherent  with  the  multi-annual 
work programme referred to in paragraph 5. It shall clearly indicate tasks that have 
been added, changed or deleted in comparison with the previous financial year.  

in  accordance  with 

The  Management  Board  shall  amend  the  adopted  annual  work  programme  when  a 
new task is given to the Agency. The Management Board may delegate the power to 
make  non-substantial  amendments  to  the  annual  work  programme  to  the  Executive 
Director. 

Any substantial amendment to the annual work programme shall be adopted by the 
same procedure as the initial annual work programme.  

The  multi-annual  work  programme  shall  set  out  overall  strategic  programming 
including objectives, expected results and performance indicators. It shall also set out 
resource  programming  including  multi-annual  budget  and  staff.  It  shall  include  a 

Commission  Delegated  Regulation  (EU)  No 1271/2013  of  30 September  2013  on  the  framework 
financial regulation for the bodies referred to in Article 208 of Regulation (EU, Euratom) No 966/2012 
of the European Parliament and of the Council (OJ L 328, 7.12.2013, p. 42). 

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strategy  for  relations  with  third  countries  and  international  organisations,  with  a 
specification of associated resources. 

The  resource  programming  shall  be  updated  annually.  The  strategic  programming 
shall be updated where appropriate, and in particular to address the outcome of the 
evaluation referred to in Article 28. 

Article 7 – Chairperson of the Management Board 

The Management Board shall elect a Chairperson and three Deputy Chairpersons as 
follows  –  one  from  amongst  the  members  representing  Member  States,  one  from 
amongst the members representing employers' organisations, one from amongst the 
members representing employees' organisations and one from amongst the members 
representing the Commission. The Chairperson and the Deputy Chairpersons shall be 
elected  by  a  majority  of  two-thirds  of  members  of  the  Management  Board  with 
voting rights. 

The  term  of  office  of  the  Chairperson  and  the  Deputy  Chairpersons  shall  be  two 
years. Their term of office may be renewed once. If, however, their membership of 
the  Management  Board  ends  at  any  time  during  their  term  of  office,  their  term  of 
office shall automatically expire on that date.  

Article 8 – Meetings of the Management Board 

The Chairperson shall convene meetings of the Management Board.  

The Executive Director of the Agency shall take part in the deliberations, without the 
right to vote. 

The Management Board shall hold one ordinary meeting a year. In addition, it shall 
meet on the initiative of its Chairperson, at the request of the Commission or at the 
request of at least one-third of its members. 

The Management Board may invite any person whose opinion may be of interest to 
attend its meetings as an observer. 

The Agency shall provide the secretariat for the Management Board. 

Article 9 – Voting rules of the Management Board 

Without  prejudice  to  Article  5  (1)  (a)  and  (b)  and  Article  19  (7),  the  Management 
Board shall take decisions by majority of members with voting rights.  

Each  member  with  voting  rights  shall  have  one  vote.  In  the  absence  of  a  member 
with  the  right  to  vote,  his/her  alternate  shall  be  entitled  to  exercise  his/her  right  to 
vote. 

The Chairperson shall take part in the voting.  

The Executive Director shall take part in the deliberations, without the right to vote 

The  Management  Board's  rules  of  procedure  shall  establish  more  detailed  voting 
arrangements, in particular the circumstances in which a member may act on behalf 
of another member. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

4. 

5. 

EN 

11 

   EN 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

1. 

2. 

SECTION 2: EXECUTIVE BOARD 

Article 10 – Executive Board 

The Management Board shall be assisted by an Executive Board.  

The Executive Board shall: 

(a)  prepare decisions to be adopted by the Management Board; 

(b)  monitor,  together  with  the  Management  Board,  adequate  follow-up  to  the 
findings  and  recommendations  stemming  from  the  internal  or  external  audit 
reports  and  evaluations,  as  well  as  from  investigations  of  the  European  Anti-
fraud Office (OLAF); 

(c)  without prejudice to the responsibilities of the Executive Director, as set out in 
Article 11, assist and advise him/her in the implementation of the decisions of 
the  Management  Board,  with  a  view 
to  reinforcing  supervision  of 
administrative and budgetary management. 

Where  necessary,  because  of  urgency,  the  Executive  Board  may  take  certain 
provisional  decisions  on  behalf  of  the  Management  Board,  in  particular  on 
administrative management matters, including the suspension of the delegation of the 
appointing authority powers and budgetary matters. 

The  Executive  Board  shall  be  composed  of  the  Chairperson  of  the  Management 
Board,  the  three  Deputy  Chairpersons,  the  coordinators  of  the  three  groups  as 
referred  to  in  Article  4  (5)  and  one  representative  of  the  Commission.  Each  group 
referred to in Article 4 (5) may designate up to two alternates to attend the meetings 
of the Executive Board, in the absence of the full members. The Chairperson of the 
Management  Board  shall  also  be  the  Chairperson  of  the  Executive  Board.  The 
Executive Director shall take part in the meetings of the Executive Board, but shall 
not have the right to vote. 

The term of office of members of the Executive Board shall be two years. That term 
shall be extendable. The term of office of members of the Executive Board shall end 
when their membership of the Management Board ends. 

The  Executive  Board  shall  meet  three  times  a  year.  The  Chairperson  can  convene 
additional meetings at the request of its members 

The  Management  Board  shall  lay  down  the  rules  of  procedure  of  the  Executive 
Board. 

SECTION 3: EXECUTIVE DIRECTOR 

Article 11 – Responsibilities of the Executive Director 

The  Executive  Director  shall  manage  the  Agency.  The  Executive  Director  shall  be 
accountable to the Management Board. 

Without prejudice to the powers of the Commission, the Management Board, and the 
Executive Board, the Executive Director shall be independent in the performance of 
the duties and shall neither seek nor take instructions from any government nor from 
any other body. 

EN 

12 

   EN 

3. 

4. 

5. 

The Executive Director shall report to the European Parliament on the performance 
of  his/her  duties  when  invited  to  do  so.  The  Council  may  invite  the  Executive 
Director to report on the performance of his/her duties. 

The Executive Director shall be the legal representative of the Agency. 

The  Executive  Director  shall  be  responsible  for  the  implementation  of  the  tasks 
assigned to the Agency by this Regulation. In particular, the Executive Director shall 
be responsible for: 

(a) 

(b) 

the day-to-day administration of the Agency; 

implementing decisions adopted by the Management Board; 

(c)  preparing  the  programming  document  and  submitting  it  to  the  Management 

Board after consulting the Commission; 

(d) 

implementing  the  programming  document  and  reporting  to  the  Management 
Board on its implementation;  

(e)  preparing  the  consolidated  annual  report  on  the  Agency's  activities  and 

presenting it to the Management Board for assessment and adoption; 

(f) 

preparing an action plan following-up conclusions of internal or external audit 
reports  and  evaluations,  as  well  as  investigations  by  the  European  Anti-fraud 
Office (OLAF) and reporting on progress twice a year to the Commission and 
regularly to the Management Board and the Executive Board; 

(g)  protecting the financial interests of the Union by applying preventive measures 
against  fraud,  corruption  and  any  other  illegal  activities,  by  effective  checks 
and,  if  irregularities  are  detected,  by  recovering  amounts  wrongly  paid  and, 
where  appropriate,  by  imposing  effective,  proportionate  and  dissuasive 
administrative and financial penalties; 

(h)  preparing  an  anti-fraud  strategy  for  the  Agency  and  presenting  it  to  the 

(i) 

(j) 

Management Board for approval; 

preparing draft financial rules applicable to the Agency; 

preparing the Agency's draft statement of estimates of revenue and expenditure 
and implementing its budget. 

The Executive Director shall also be responsible for deciding whether it is necessary 
for  the  purpose  of  carrying  out  the  Agency's  tasks  in  an  efficient  and  effective 
manner  to  establish  one  or  more  local  offices  in  one  or  more  Member  States.  That 
decision requires the prior consent of Commission, the Management Board and the 
Member State where the local office is to be established. That decision shall specify 
the  scope  of  the  activities  to  be  carried  out  that  that  local  office  in  a  manner  that 
avoids unnecessary costs and duplication of administrative functions of the Agency. 

SECTION 4: ADVISORY COMMITTEES 

Article 12 – Advisory Committees 

Advisory  Committees  are  established  by  the  Management  Board  in  line  with  the 
policy priority areas outlined in the Agency's programming documents.  

Advisory  Committees  are  operational  bodies  aimed  at  ensuring  the  quality  of  the 
research produced by the Agency, as well as a wide ownership of the projects and of 

6. 

1. 

2. 

EN 

13 

   EN 

the results, by participating in the implementation of the Agency's programmes and 
providing advice and new inputs. 

3. 

In  liaison  with  the  Management  Board  and  the  Executive  Board  Advisory 
Committees carry out the following  main functions related to research projects: 

(a)  give advice on their design and implementation; 

(b)  monitor progress of implementation; 

(c) 

(d) 

evaluate findings; 

advise on the dissemination of results. 

The Rules of Procedure of the Advisory Committees are adopted by the Management 
Board. The coordinators of the groups referred to in  Article 4 (5) shall  oversee the 
nomination  and  participation  of  the  members  of  the  Advisory  Committees  in  line 
with aforementioned Rules of Procedure. 

The Management Board decides on the dissolution of Advisory Committees, in line 
with the priorities outlined in the Agency's programming documents. 

Chapter III  
Financial provisions 

Article 13 - Budget 

Estimates  of  all  revenue  and  expenditure  for  the  Agency  shall  be  prepared  each 
financial  year,  corresponding  to  the  calendar  year,  and  shall  be  shown  in  the 
Agency's budget. 

The Agency's budget shall be balanced in terms of revenue and of expenditure. 

Without prejudice to other resources, the Agency's revenue shall comprise: 

(a) 

(b) 

(c) 

(d) 

a  contribution  from  the  Union  entered  in  the  general  budget  of  the  European 
Union; 

any voluntary financial contribution from the Member States; 

charges for publications and any service provided by the Agency; 

any contribution from third countries participating in the work of the Agency, 
as provided for by Article 30. 

The expenditure of the Agency shall include staff remuneration, administrative and 
infrastructure expenses and operational expenditure. 

Article 14 – Establishment of the budget 

Each  year,  the  Executive  Director  shall  draw  up  a  provisional  draft  estimate  of  the 
Agency's  revenue  and  expenditure  for  the  following  financial  year,  including  the 
establishment plan, and send it to the Management Board. 

The  Management  Board  shall,  on  the  basis  of  that  provisional  draft,  adopt  a  draft 
estimate of the Agency's revenue and expenditure for the following financial year. 

The  draft  estimate  of  the  Agency's  revenue  and  expenditure  shall  be  sent  to  the 
Commission by 31 January each year.  

4. 

5. 

1. 

2. 

3. 

4. 

1. 

2. 

3. 

EN 

14 

   EN 

4. 

5. 

6. 

7. 

8. 

9. 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

6. 

The Commission shall send draft estimates to the budgetary authority together with 
the draft general budget of the Union. 

On the basis of the draft estimates,  the Commission shall enter  in the draft general 
budget  of the Union the estimates  it considers necessary for the establishment plan 
and the amount of the contribution to be charged to the general budget, which it shall 
place before the budgetary authority in accordance with Articles 313 and 314 of the 
Treaty. 

The budgetary authority shall authorise the appropriations for the contribution to the 
Agency. 

The budgetary authority shall adopt the Agency's establishment plan. 

The  Agency's  budget  shall  be  adopted  by  the  Management  Board.  It  shall  become 
final following final adoption of the general budget of the Union. Where necessary, it 
shall be adjusted accordingly. 

For any building project likely to have significant implications for the budget of the 
Agency the provisions of Delegated Regulation (EU) No 1271/2013 shall apply. 

Article 15 – Implementation of the budget 

The Executive Director shall implement the Agency's budget. 

Each  year  the  Executive  Director  shall  send  to  the  budgetary  authority  all 
information relevant to the findings of evaluation procedures. 

Article 16 – Presentation of accounts and discharge 

By  1  March  of  the  following  financial  year,  the  Agency's  accounting  officer  shall 
send  the  provisional  accounts  to  the  Commission's  Accounting  Officer  and  to  the 
European Court of Auditors. 

By 31 March of the following financial year, the Agency shall send the report on the 
budgetary  and  financial  management  to  the  European  Parliament,  the  Council  and 
the European Court of Auditors. 

By  31  March  of  the  following  financial  year,  the  Commission's  accounting  officer 
shall  send  the  Agency's  provisional  accounts,  consolidated  with  the  Commission's 
accounts, to the European Court of Auditors. 

On  receipt  of  the  European  Court  of  Auditors'  observations  on  the  Agency's 
provisional  accounts  pursuant  to  Article  148  of  the  Financial  Regulation,  the 
Executive  Director  shall  draw  up  the  Agency's  final  accounts  under  his/her  own 
responsibility and submit them to the Management Board for an opinion. 

The Management Board shall deliver an opinion on the Agency's final accounts. 

The accounting officer shall, by 1 July following each financial year, send the final 
accounts to the European Parliament, the Council, the Commission and the Court of 
Auditors, together with the Management Board's opinion. 

The final accounts shall be published in the Official Journal of the European Union 
by 15 November of the following year. 

EN 

15 

   EN 

7. 

8. 

9. 

The  Executive  Director  shall  send  the  European  Court  of  Auditors  a  reply  to  its 
observations by 30 September. The Executive Director shall also  send this  reply to 
the Management Board. 

The  Executive  Director  shall  submit  to  the  European  Parliament,  at  the  latter's 
request,  any  information  required  for  the  smooth  application  of  the  discharge 
procedure for the financial year in question, in accordance with Article 165(3) of the 
Financial Regulation. 

On a recommendation from the Council acting by a qualified majority, the European 
Parliament  shall,  before  15  May  of  year  N  +  2,  give  a  discharge  to  the  Executive 
Director in respect of the implementation of the budget for year N. 

Article 17 – Financial rules 

The financial rules applicable to the Agency shall be adopted by the Management Board after 
consulting  the  Commission.  They  shall  not  depart  from  Regulation  (EU)  1271/2013  unless 
such a departure is specifically required for the Agency's operation and the Commission has 
given its prior consent. 

Chapter IV 
Staff 

Article 18 – General provisions 

1.  

2.  

1. 

2. 

3. 

The  Staff  Regulations  and  the  Conditions  of  Employment  of  Other  Servants  and  the 
rules adopted by agreement between the institutions of the Union for giving effect to 
those  Staff  Regulations  and  the  Conditions  of  Employment  of  Other  Servants  shall 
apply to the staff of the Agency.  

The Management Board shall adopt appropriate implementing rules for giving effect 
to  the  Staff  Regulations  and  the  Conditions  of  Employment  of  Other  Servants  in 
accordance with Article 110 of the Staff Regulations. 

Article 19 – Executive Director 

The  Executive  Director  shall  be  a  member  of  staff  and  shall  be  engaged  as  a 
temporary agent of the Agency under Article 2(a) of the Conditions of Employment 
of Other servants. 

The Executive Director shall be appointed by the Management Board, from a list of 
candidates proposed by the Commission, following an open and transparent selection 
procedure.  

For the purpose of concluding the contract with the Executive Director, the Agency 
shall be represented by the Chairperson of the Management Board.  

The term of office of the Executive Director shall be five years. By the end of that 
period,  the  Commission  shall  undertake  an  assessment  that  takes  into  account  an 
evaluation of the Executive Director's performance and the Agency's future tasks and 
challenges. 

EN 

16 

   EN 

 
 
4. 

5. 

6. 

7. 

1. 

2. 

1. 

2. 

3. 

4. 

The Management Board, acting on a proposal from the Commission that takes into 
account the assessment referred to in paragraph 3, may extend the term of office of 
the Executive Director once, for no more than five years.  

An Executive Director whose term of office has been extended may not participate in 
another selection procedure for the same post at the end of the overall period.  

The  Executive  Director  may  be  removed  from  office  only  upon  a  decision  of  the 
Management Board acting on a proposal from the Commission. 

The Management Board shall reach decisions on appointment, extension of the term 
of  office  or  removal  from  office  of  the  Executive  Director  on  the  basis  of  a  two-
thirds majority of its members with voting rights. 

Article 20 – Seconded national experts and other staff  

The Agency may make use of Seconded national experts or other staff not employed 
by the Agency.  

The Management Board shall adopt a decision laying down rules on the secondment 
of national experts to the Agency.  

Chapter V 
General Provisions 

Article 21 – Legal status 

The Agency shall be a body of the Union. It shall have legal personality. 

In  each  of  the  Member  States  the  Agency  shall  enjoy  the  most  extensive  legal 
capacity accorded to legal persons under their laws. It may, in particular, acquire and 
dispose of movable and immovable property and be party to legal proceedings. 

The seat of the Agency shall be Dublin, Ireland. 

The  Agency  may  establish  local  offices  in  one  or  more  Member  States,  subject  to 
their consent and in accordance with Article 11 (6). 

Article 22 – Privileges and immunities 

The  Protocol  on  the  Privileges  and  Immunities  of  the  European  Union  shall  apply  to  the 
Agency and its staff. 

Article 23 – Language arrangements 

1. 

2. 

3. 

The provisions laid down in Regulation No 1 shall apply to the Agency. 

The Management Board can decide on the languages to be used by the Agency in its 
internal functioning. 

The translation services required for the functioning of the Agency shall be provided 
by the Translation Centre of the bodies of the European Union. 

EN 

17 

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1. 

2. 

1. 

2. 

3. 

4. 

Article 24 – Transparency  

Regulation (EC) No 1049/2001 of the European Parliament and of the Council9 shall 
apply  to  documents  held  by  the  Agency.  The  Management  Board  shall,  within  six 
months  of  the  date  of  its  first  meeting,  adopt  the  detailed  rules  for  applying 
Regulation (EC) No 1049/2001.  

The processing of personal data by the Agency shall be subject to Regulation (EC) 
No 45/2001. The Management Board shall, within six months of the date of its first 
meeting,  establish  measures  for  the  application  of  Regulation  (EC)  No  45/2001  by 
the Agency, including those concerning the appointment of a Data Protection Officer 
of  the  Agency.  Those  measures  shall  be  established  after  consultation  of  the 
European Data Protection Supervisor.  

Article 25 – Combating fraud  

In order to facilitate combating fraud, corruption and other unlawful activities under 
Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the  Council10, 
within six months from the date of application of this Regulation, the Agency shall 
accede  to  the  Interinstitutional  Agreement  of  25  May  1999  concerning  internal 
investigations  by  the  European  Anti-fraud  Office  (OLAF)  and  adopt  appropriate 
provisions applicable to all employees of the Agency using the template set out in the 
Annex to that Agreement.  

The  European  Court  of  Auditors  shall  have  the  power  of  audit,  on  the  basis  of 
the  spot,  over  all  grant  beneficiaries,  contractors  and 
documents  and  on 
subcontractors who have received Union funds from the Agency. 

OLAF  may  carry  out  investigations,  including  on-the-spot  checks  and  inspections 
with  a  view  to  establishing  whether  there  has  been  fraud,  corruption  or  any  other 
illegal  activity  affecting  the  financial  interests  of  the  Union  in  connection  with  a 
grant  or  a  contract  funded  by  the  Agency,  in  accordance  with  the  provisions  and 
procedures  laid  down  in  Regulation  (EC)  No  1073/1999  and  Regulation  (Euratom, 
EC) No 2185/96. 

Without  prejudice  to  paragraphs  1,  2  and  3,  cooperation  agreements  with  third 
countries  and  international  organisations,  contracts,  grant  agreements  and  grant 
decisions of the Agency shall contain provisions expressly empowering the European 
Court of Auditors and OLAF to conduct such audits and investigations, according to 
their respective competences. 

Article 26 – Security rules on the protection of classified and sensitive non-classified 
information  

The Agency shall adopt own security rules equivalent to the Commission's security rules for 
protecting  European  Union  Classified  Information  (EUCI)  and  sensitive  non-classified 

9 

10 

Regulation  (EC)  No  1049/2001  of  the  European  Parliament  and  of  the  Council  of  30  May  2001 
regarding  public  access  to  European  Parliament,  Council  and  Commission  documents  (OJ  L  145, 
31.5.2001, p. 43). 
Regulation  (EC)  No  1073/1999  of  the  European  Parliament  and  of  the  Council  of  25  May  1999 
concerning investigations conducted by the European Anti-Fraud Office (OLAF) (OJ L 136, 31.5.1999, 
p.1). 

EN 

18 

   EN 

                                                 
information,  as  set  out  in  the  Commission  Decisions  (EU,  Euratom)  2015/44311  and 
2015/44412, when required. The security rules of the Agency shall cover, inter alia and where 
appropriate, provisions for the exchange, processing and storage of such information. 

1. 

2. 

3. 

4. 

5. 

1. 

2. 

3. 

Article 27 - Liability 

The  Agency's  contractual  liability  shall  be  governed  by  the  law  applicable  to  the 
contract in question. 

The Court of Justice of the European Union shall have jurisdiction to give judgment 
pursuant to any arbitration clause contained in a contract concluded by the Agency. 

In  the  case  of  non-contractual  liability,  the  Agency  shall,  in  accordance  with  the 
general  principles  common  to  the  laws  of  the  Member  States,  make  good  any 
damage caused by its departments or by its staff in the performance of their duties. 

The Court of Justice of the European Union shall have jurisdiction in disputes over 
compensation for damages referred to in paragraph 3. 

The  personal  liability  of  its  staff  towards  the  Agency  shall  be  governed  by  the 
provisions  laid  down  in  the  Staff  Regulations  or  Conditions  of  Employment 
applicable to them. 

Article 28 – Evaluation  

No  later  than  5  years  after  the  date  referred  to  in  Article  37,  and  every  5  years 
thereafter,  the  Commission  shall  perform  an  evaluation  in  compliance  with  the 
Commission  guidelines  to  assess  the  Agency's  performance  in  relation  to  its 
objectives,  mandate  and  tasks.  The  evaluation  shall,  in  particular,  address  the 
possible need to modify the mandate of the Agency, and the financial implications of 
any such modification.  

Where  the  Commission  considers  that  the  continuation  of  the  Agency  is  no  longer 
justified  with  regard  to  its  assigned  objectives,  mandate  and  tasks,  it  may  propose 
that this Regulation be amended accordingly or repealed. 

The  Commission  shall  report  to  the  European  Parliament,  the  Council  and  the 
Management Board the evaluation findings. The findings of the evaluation shall be 
made public. 

Article 29 – Administrative inquiries  

The activities of the Agency shall be subject to the inquiries of the European Ombudsman in 
accordance with Article 228 of the Treaty. 

1. 

11 

12 

Article 30 – Cooperation with third countries and international organisations 

In so far as is necessary in order to achieve the objectives set out in this Regulation, 
and  without  prejudice  to  the  respective  competences  of  the  Member  States  and  the 
institutions of the Union, the Agency may cooperate with the competent authorities 
of third countries and/or with international organisations.  

Commission Decision (EU, Euratom) 2015/443 of 13 March 2015 on Security in the Commission (OJ L 
72, 17.3.2015, p. 41). 
Commission Decision (EU, Euratom) 2015/444 of 13 March 2015 on the security rules for protecting 
EU classified information (OJ L 72, 17.3.2015, p. 53). 

EN 

19 

   EN 

                                                 
To this end, the Agency may, subject to prior approval by the Commission, establish 
working  arrangements  with  the  authorities  of  third  countries  and  international 
organisations. These arrangements shall not create legal obligations incumbent on the 
Union and its Member States 

2. 

The  Agency  shall  be  open  to  the  participation  of  third  countries  that  have  entered 
into agreements with the Union to this effect.  

Under  the  relevant  provisions  of  the  agreements  referred  to  in  paragraph  1, 
arrangements  shall  be  developed  specifying,  in  particular,  the  nature,  extent  and 
manner  in  which  the  third  countries  concerned  will  participate  in  the  work  of  the 
Agency,  including  provisions  relating  to  the  participation  in  the  initiatives 
undertaken by the Agency, financial contributions and staff. As regards staff matters, 
those arrangements shall, in any event, comply with the Staff Regulations. 

The  Management  Board  shall  adopt  a  strategy  for  relations  with  third  countries  or 
international organisations concerning matters for which the Agency is competent. 

Article 31 – Headquarters Agreement and operating conditions 

The  necessary  arrangements  concerning  the  accommodation  to  be  provided  for  the 
Agency  in  the  host  Member  State  and  the  facilities  to  be  made  available  by  that 
Member State together with the specific rules applicable in the host Member State to 
the  Executive  Director,  members  of  the  Management  Board,  Agency  staff  and 
members of their families shall be laid down in a Headquarters Agreement between 
the Agency and Member State where the seat is located. 

The Agency’s host Member State shall provide the best possible conditions to ensure 
the functioning of the Agency, including multilingual, European-oriented schooling 
and appropriate transport connections.  

Chapter VI 
Transitional provisions 

Article 32 – Transitional provisions concerning the Management Board 

The  term  of  office  of  the  members  of  the  Governing  Board  of  the  Agency  as 
established on the basis of Article 6 of Regulation (EEC) No 1365/75 of the Council  
shall terminate on … [date of entry into force of this Regulation].  

The Governing Board established on the basis of Article 6 of Regulation (EEC) No 
1365/75 of the Council  shall within the period between …[date of entry into force of 
this Regulation] and … [date of application of this Regulation] exercise the functions 
of the Management Board as referred to in Article 5 of this Regulation. 

Article 33 - Transitional provisions concerning the staff 

The Director of the Agency appointed on the basis of Article 8 of Regulation (EEC) 
No 1365/75 of the Council shall, for the remaining periods of his/her term of office 
be assigned to the responsibilities of the Executive Director as provided for in Article 
11  of  this  Regulation.  The  other  conditions  of  his/her  contract  shall  remain 
unchanged.  

3. 

1. 

2. 

1. 

2. 

1. 

EN 

20 

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2. 

3. 

The  Deputy  Director  the  Agency  appointed  on  the  basis  of  Article  8  of  Regulation 
(EEC) No 1365/75 of the Council shall, for the remaining period of his/her term of 
office assist the Director or Executive Director.  

This  Regulation  shall  not  affect  the  rights  and  obligations  of  staff  engaged  under 
Regulation (EEC) No 1365/75 of the Council.  

Article 34 - Transitional budgetary provisions 

The  discharge  procedure  in  respect  of  the  budgets  approved  on  the  basis  of  Article  16  of 
Regulation (EEC) No 1365/75 shall be carried out in accordance with the rules established by 
that Regulation. 

Chapter VII 
Final provisions  

Article 35 – Repeal  

Regulation (EEC) No 1365/75 is repealed as from [date of application of this Regulation] and 
all references to the repealed Regulation shall be construed as references to this Regulation.   

Article 36 - Maintenance into force of the internal rules adopted by the Agency  

Internal rules adopted by the Governing Board on the basis of Regulation (EEC) No 1365/75 
shall remain in force after [date of application of this Regulation], unless otherwise decided 
by the Management Board in the application of this Regulation.  

Article 37 – Entry into force 

1. 

2. 

3. 

4. 

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

It shall apply from [date of application]. 

However,  Articles  32,  33,  34  shall  apply  from  [the  date  of  entry  into  force  of  this 
Regulation]. 

This Regulation shall be binding in its entirety and directly applicable in the Member 
States in accordance with the Treaties. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

21 

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LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on Eurofound's human resources 

3.2.3. Compatibility with the current multiannual financial framework 

3.2.4. Third-party contributions  

3.3.  Estimated impact on revenue

EN 

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   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  establishing  the 
European Foundation for the improvement of living and working conditions (EUROFOUND) 
Policy area(s) concerned in the ABM/ABB structure13  

1.2. 

04: Employment, social affairs and inclusion 

04 03: Employment, social affairs and inclusion 

04 03 11: European Foundation for the Improvement of Living and Working Conditions 

1.3. 

Nature of the proposal/initiative  

 The proposal/initiative relates to a new action  

  The  proposal/initiative  relates  to  a  new  action  following  a  pilot  project/preparatory 
action14  

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

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

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

Objectives/EU added value in line with Europe 2020 strategy 

A new Boost for Jobs Growth and Investment 

A deeper and fairer Economic and Monetary Union 

1.4.2. 

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

Specific objective No 

Increase  and  disseminate  knowledge  to  assist  the  Commission,  other  EU  institutions  and 
bodies, Member States and social partners in shaping and implementing policies aimed at the 
improvement  of  living  and  working  conditions,  in  supporting  employment  policies  and  in 
promoting the dialogue between management and labour.  

ABM/ABB activity(ies) concerned 

040311  –  European  Foundation  for  the  Improvement  of  Living  and  Working  Conditions  – 
Contribution under Titles 1, 2 and 3. 

13 
14 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

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1.4.3.  Expected result(s) and impact 

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

Eurofound’s  mission  is  to  provide  knowledge  to  assist  the  development  of  social  and  work-
related policies. 

Eurofound  advises  the  European  Institutions  and  serves  the  information  needs  of  policy 
makers in governments, in trade unions and in employer organisations. This tripartite approach 
is reflected in the structure of its Management Board (formerly named Governing Board) and 
constitutes a distinct added value. It is a key to the relevance of Eurofound’s work and to the 
credibility of the input provided to policymakers. 

Eurofound’s  main  target  audiences  include  the  public  authorities,  social  partners  and  those 
concerned  with  social  policymaking  at  EU  level.  By  linking  research  with  policy  concerns, 
Eurofound  aims  to  provide  information  that  is  relevant  to  those  who  design  and  implement 
policy.  Eurofound  also  communicates  its  findings  to  the  EU  citizen  through  its  website  at 
www.eurofound.europa.eu. 

Eurofound  contributes  by  building  upon  the  core  areas  of  expertise  it  has  developed.  The 
Agency is known for its strong knowledge base in the area of working conditions. It is also the 
first port of call for comparative information on industrial relations and social dialogue in the 
EU  and  is  recognised  for  a  deep  understanding  of  issues  related  to  living  conditions  and 
quality  of  life.  Another  area  of  expertise,  structural  change  and  restructuring,  has  been 
developed since 2001, following the conclusions of the Nice European Council. 

The  Agency  strives  to  provide  the  highest  quality  information  in  its  fields  of  expertise: 
scientifically sound and unbiased. Eurofound’s vision is that this knowledge is taken up for the 
development of effective policies that lead to the improvement of quality of life and work in a 
competitive and fair Europe. 

1.4.4. 

Indicators of results and impact  

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

A  comprehensive  monitoring  and  evaluation  system  both  ex-ante  and  ex-post  of  the  multi-
annual  work  programmes  is  already  in  place.  This  will  be  completed  by  the  evaluation  and 
review carried out by the Commission every five years.  

1.5. 

Grounds for the proposal/initiative  

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

Art  151  TFEU:  'The  Union  [..]  shall  have  as  their  objectives  the  promotion  of  employment, 
improved living and working conditions…. 

The Founding Regulation of Eurofound defines its role and objectives: 'The role of Eurofound 
is  to  contribute  to  the  planning  and  establishment  of  better  living  and  working  conditions 
through  action  designed  to  increase  and  disseminate  knowledge  likely  to  assist  this 
development.  With  this  aim  in  view,  the  tasks  of  the  Foundation  shall  be  to  develop  and  to 
pursue ideas on the medium and long-term improvement of living and working conditions in 
the light of practical experience and to identify factors leading to change.' 

Eurofound  supports  the  work  of  the  Commission  in  the  areas  of  employment,  social  affairs 
and  inclusion  by  carrying  out  research  and  policy  analysis  in  these  areas.    It  provides  long-
term  analysis  of  problems  and  policy  initiatives  with  a  view  to  identifying  'what  works  and 
what does not'.  It's surveys provide long-term analysis and information on underlying trends 

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24 

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and  developments  in  Working  Conditions,  Quality  of  Life  and  Company  behaviour;  it's 
observatories  provide  a  repository  of  descriptive  analysis  and  updated  information  about 
Industrial Relations and Working Conditions, Restructuring and Managing Change. 

Eurofound also carries out work in support of European Social Dialogue (Art 154-155 TFEU) 
in  the  form  of  the  representativeness  studies  of  the  European  Social  Partners,  providing  an 
independent  verification  of  their  capacity  to  participate  in  European  Social  Dialogue  and  to 
conclude agreements. 

1.5.2.  Added value of EU involvement 

Eurofound  advises  the  European  Institutions  and  serves  the  information  needs  of  policy 
makers in governments, in trade unions and in employer organisations. This tripartite approach 
is reflected in the structure of its Management Board (formerly named Governing Board) and 
constitutes a distinct added value. It is a key to the relevance of Eurofound’s work and to the 
credibility  of  the  input  provided  to  policymakers.  Eurofound's  observatories  and  surveys 
provide a unique source of independent information about Europe-wide developments, which 
is  not  available  anywhere  else.  Few  national  institutes  of  a  similar  nature  exist  in  Member 
States, and certainly none other which provide comparative information on all Member States.   

1.5.3.  Lessons learned from similar experiences in the past 

Eurofound  has  been  carrying  out  research,  observation  and  surveys  since  1975.    Eurofound 
can  make  its  most  valuable  contribution  by  building  upon  the  core  areas  of  expertise  it  has 
developed.  The  Agency  is  known  for  its  strong  knowledge  base  in  the  area  of  working 
conditions. It is  also  the first port of call  for comparative information  on industrial  relations 
and social dialogue in the EU and is recognised for a deep understanding of issues related to 
living conditions and quality of life. 

The  Agency  strives  to  provide  the  highest  quality  information  in  its  fields  of  expertise: 
scientifically sound and unbiased. Eurofound’s vision is that this knowledge is taken up for the 
development of effective policies that lead to the improvement of quality of life and work in a 
competitive and fair Europe. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

Eurofound  cooperates  with  other  EU  Agencies  working  in  related  fields.  Cooperation 
agreements exist with the European Agency for Safety and Health at Work (EU OSHA), the 
European  Centre  for  the  Development  of  Vocational  Training  (CEDEFOP),  the  European 
Training  Foundation  (ETF),  and  the  European  Institute  for  Gender  Equality  (EIGE)  and  the 
European  Union  Agency  for  Fundamental  Rights  (FRA).  These  agreements  foresee  in 
particular the early consultation on work programme development and are complemented by 
yearly  action  plans  that  agree  further  forms  of  exchange  and,  where  appropriate,  joint 
activities. This ensures complementarity of activities and allows for synergies to be achieved.  

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1.6. 

Duration and financial impact  

 Proposal/initiative of limited duration  

–    Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY  

–    Financial impact from YYYY to YYYY 

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) planned  

 Direct management by the Commission through 

–    executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

 international organisations and their agencies (to be specified); 

the EIB and the European Investment Fund; 

bodies referred to in Articles 208 and 209; 

 public law bodies; 

 bodies governed by private law with a public service mission to the extent that they provide 
adequate financial guarantees; 

  bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted  with  the 
implementation of a public-private partnership and that provide adequate financial guarantees; 

  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP  pursuant  to 
Title V of the TEU, and identified in the relevant basic act. 

Comments  

N/A 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

All  EU  agencies  work  under  a  strict  monitoring  system  involving  an  internal  control 
coordinator,  the  Internal  Audit  Service  of  the  Commission,  the  Governing  Board,  the 
Commission, the Court of Auditors and the Budgetary Authority.  The system as laid down in 
the Eurofound founding regulation will continue to apply. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

none 

2.2.2.  Control method(s) envisaged  

N/A 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

Anti-fraud measures had not been specifically foreseen in the current founding regulation of 
Eurofound, but the Director and the Governing Board have taken the appropriate measures in 
accordance with the Internal Control Standards applied across all EU institutions. In line with 
the Common Approach an anti-fraud strategy was adopted by the Agency in November 2014.   

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

Heading of 
multiannual 
financial 
framework 

Heading of 
multiannual 
financial 
framework 

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure 

Contribution  

Heading 1A – Competitiveness for growth and 
jobs 

Diff./Non-
diff.15 

from 
EFTA 
countries
16 

from 
candidate 
countries17 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

04  03  11  European  Foundation  for  the 
Improvement  of  Living  and  Working 
Conditions (EUROFOUND)  

  New budget lines requested : N/A 

Diff. 

YES 

YES 

NO 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Number  
[Heading……………………………………
…] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the meaning 
of Article 21(2)(b) 
of the Financial 
Regulation  

[XX.YY.YY.YY] 

YES/N
O 

YES/N
O 

YES/N
O 

YES/NO 

15 
16 
17 

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

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3.2. 

Estimated impact on expenditure  

The impact on expenditure as presented below is in line with Commission Communication (2013)519. 

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

1A 

Competitiveness for growth and jobs 

EUR million (to three decimal places) 

European Foundation for the 
Improvement of Living and Working 
Conditions (EUROFOUND) 

 Operational appropriations  

Number of budget line 

Number of budget line 

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

20,371 

20,371 

20,371 

20,371 

20,371 

20,371 

20,779 

21,195 

20,371 

20,371 

20,371 

20,371 

20,371 

20,371 

20,779 

21,195 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes18  

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

n/a 

Number of budget line 

TOTAL appropriations 
for European Foundation for the 
Improvement of Living and Working 
Conditions (EUROFOUND) 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

20,371 

20,371 

20,371 

20,371 

20,371 

20,371 

20,779 

21,195 

20,371 

20,371 

20,371 

20,371 

20,371 

20,371 

20,779 

21,195 

143,829 

143,829 

143,829 

143,829 

18 

EN 

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. 

29 

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3.2.2.  Estimated impact on Eurofound's human resources  

3.2.2.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–   The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

2016 

2017 

2018 

2019 

2020 

TOTAL 

Officials (AD Grades) 

Officials 
grades) 

(AST 

Contract staff 

Temporary staff  

Seconded National 
Experts 

8 

10 

14 

77 

1 

8 

9 

14 

76 

1 

8 

9 

14 

74 

1 

8 

9 

14 

74 

1 

8 

9 

14 

74 

1 

TOTAL 

114 

108 

106 

106 

106 

3.2.2.2.  Estimated requirements of human resources for the parent DG 

–    The proposal/initiative does not require the use of human resources.  

–   The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

2016 

2017 

2018 

2019 

2020 

0.8 

0.8 

0.8 

0.8 

0.8 

 Establishment plan posts (officials and 

temporary staff) 

XX 01 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) 

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 External staff (in Full Time Equivalent 

unit: FTE)19 

XX 01 02 01 (AC, END, INT from 
the ‘global envelope’) 

XX 01 02 02 (AC, AL, END, INT 
and JED in the Delegations) 

XX 01 04 
yy20 

- at 
Headquarters21 

- in 
Delegations  

XX 01 05 02 (AC, END, INT – 
Indirect research) 

10 01 05 02 (AC, END, INT – 
Direct research) 

Other budget lines (specify) 

TOTAL 

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: 

Officials and temporary staff 

Coordination and representation of the Commission's position towards the Agency. 

External staff 

19 

20 
21 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JED = 
Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 
Mainly for the Structural Funds, the European Agricultural Fund for Rural Development (EAFRD) and 
the European Fisheries Fund (EFF). 

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3.2.3.  Compatibility with the current multiannual financial framework  

–   The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–    The 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. 

–    The  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. 

3.2.4.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

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

EUR million (to three decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary 
to show the duration of the 
impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL 
co-financed  

appropriations 

22 

See  Articles  11  and  17  of  Council  Regulation  (EU,  Euratom)  No  1311/2013  laying  down  the 
multiannual financial framework for the years 2014-2020. 

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3.3. 

Estimated impact on revenue  

–   The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article …………. 

EUR million (to three decimal places) 

Impact of the proposal/initiative23 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

Enter as many years as necessary to show 
the duration of the impact (see point 1.6) 

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

Specify the method for calculating the impact on revenue. 

23 

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. 

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