title: 2011/901/EU: Council Decision of 12 December 2011 on the conclusion of the Agreement on the promotion, provision and use of Galileo and GPS satellite-based navigation systems and related applications between the European Community and its Member States, of the one part, and the United States of America, of the other part#Agreement on the promotion, provision and use of Galileo and GPS satellite-based navigation systems and related applications

text:
               31.12.2011

               EN

               Official Journal of the European Union

               L 348/1

         COUNCIL DECISION
   of 12 December 2011
   on the conclusion of the Agreement on the promotion, provision and use of Galileo and GPS satellite-based navigation systems and related applications between the European Community and its Member States, of the one part, and the United States of America, of the other part
   (2011/901/EU)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 171 and Article 172, first subparagraph, in conjunction with Article 218 (6) (a) and the first subparagraph of Article 218(8) thereof,
   Having regard to the proposal from the European Commission,
   Having regard to the consent of the European Parliament (1),
   Whereas:

               (1)

               On 30 September 1999, the Council authorised the Commission to open negotiations with the United States of America for the conclusion of an agreement concerning the development of a Civil Global Navigation System.

               (2)

               In accordance with the decision of the Council of 22 June 2004, the Agreement on the promotion, provision and use of Galileo and GPS satellite based navigation systems and related applications between the European Community and its Member States, of the one part, and the United States of America, of the other part (Agreement), was signed in Dromoland Castle, Ireland, on 26 June 2004 and has been provisionally applied since 1 November 2008, pending its entry into force.

               (3)

               Member States will be represented, as appropriate, in the working groups established by virtue of the Agreement.

               (4)

               The Agreement should be approved,

         HAS ADOPTED THIS DECISION:
   Article 1
   The Agreement on the promotion, provision and use of Galileo and GPS satellite-based navigation systems and related applications between the the European Community and its Member States, of the one part, and the United States of America, of the other part, is hereby approved on behalf of the European Union.
   The text of the Agreement is attached to this Decision.
   Article 2
   The President of the Council shall, on behalf of the Union deliver to the United States of America the diplomatic note provided for in Article 20(1) of the Agreement (2) and make the following notification:

      ‘As a consequence of the entry into force of the Treaty of Lisbon on 1 December 2009, the European Union has replaced and succeeded the European Community and from that date exercises all rights and assumes all obligations of the European Community. Therefore, references to “the European Community” in the text of the Agreement are, where appropriate, to be read as to “the European Union”.’.

   Article 3
   1.   The Union shall be represented in the working groups established under Article 13 of the Agreement by a representative of the Commission and the Member States, as appropriate, by their respective representative.
   2.   The information referred to in Article 19(2) of the Agreement shall be provided jointly by the Union and the Member States. The Commission shall present the information on behalf of the Union and the Member States.
   3.   The position to be taken by the Union in the groups referred to in paragraph 6 of the Annex to the Agreement shall be adopted by the Council, on a proposal from the Commission.
   Article 4
   This Decision shall enter into force on the day of its adoption.

      Done at Brussels, 12 December 2011.

            For the Council

            The President

         S. NOWAK

      (1)  Opinion delivered on 26 October 2010.

      (2)  The date of entry into force of the Agreement will be published in the Official Journal of the European Union by the General Secretariat of the Council.

      AGREEMENT
      on the promotion, provision and use of Galileo and GPS satellite-based navigation systems and related applications
      THE UNITED STATES OF AMERICA,
      of the one part,
      and
      THE KINGDOM OF BELGIUM,
      THE CZECH REPUBLIC,
      THE KINGDOM OF DENMARK,
      THE FEDERAL REPUBLIC OF GERMANY,
      THE REPUBLIC OF ESTONIA,
      THE HELLENIC REPUBLIC,
      THE KINGDOM OF SPAIN,
      THE FRENCH REPUBLIC,
      IRELAND,
      THE ITALIAN REPUBLIC,
      THE REPUBLIC OF CYPRUS,
      THE REPUBLIC OF LATVIA,
      THE REPUBLIC OF LITHUANIA,
      THE GRAND DUCHY OF LUXEMBOURG,
      THE REPUBLIC OF HUNGARY,
      THE REPUBLIC OF MALTA,
      THE KINGDOM OF THE NETHERLANDS,
      THE REPUBLIC OF AUSTRIA,
      THE REPUBLIC OF POLAND,
      THE PORTUGUESE REPUBLIC,
      THE REPUBLIC OF SLOVENIA,
      THE SLOVAK REPUBLIC,
      THE REPUBLIC OF FINLAND,
      THE KINGDOM OF SWEDEN,
      THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
      CONTRACTING PARTIES to the Treaty establishing THE EUROPEAN COMMUNITY, hereinafter referred to as the ‘Member States’, and THE EUROPEAN COMMUNITY,
      of the other part,
      RECOGNISING that the United States operates a satellite-based navigation system known as the Global Positioning System, a dual use system that provides precision timing, navigation, and position location signals for civil and military purposes,
      RECOGNISING that the United States is currently providing the GPS Standard Positioning Service for peaceful civil, commercial, and scientific use on a continuous, worldwide basis, free of direct user fees, and noting that the United States intends to continue providing it, and similar future civil services under the same conditions,
      RECOGNISING that the European Community is developing and plans to operate a civil global satellite navigation, timing and positioning system, GALILEO, which would be radio frequency compatible with GPS and interoperable with civil GPS services at the user level,
      RECOGNISING that GPS signals are used worldwide for satellite-based navigation services including augmentations,
      RECOGNISING that civil GPS and GALILEO, if radio frequency compatible and interoperable at the user level, could increase the number of satellites visible from any location on the Earth and aid accessibility to navigation signals for civil users worldwide,
      RECOGNISING that the International Civil Aviation Organisation (ICAO) establishes international standards and recommended practices and other guidance applicable to the use of global satellite-based navigation systems for civil aviation, that the International Maritime Organisation (IMO) establishes international standards and other guidance applicable to the use of global satellite-based navigation systems for maritime navigation, and that the International Telecommunication Union (ITU) establishes multilateral regulations and procedures applicable to the operation of global radio-navigation systems, as well as to other radio communication systems,
      DESIRING to provide satellite navigation users and equipment providers with a broader range of services and capabilities, leading to increased user applications, while assuring radio frequency compatibility with systems and equipment already in use,
      DESIRING to promote open markets and to facilitate growth in trade with respect to commerce in global navigation and timing goods, value-added services, and augmentations,
      CONVINCED of the need to prevent and protect against the misuse of global satellite-based navigation and timing services without unduly disrupting or degrading signals available for civilian uses,
      CONVINCED of the need to cooperate so that the benefits of this important technology are fully achieved for all relevant applications,
      RECOGNISING that consultations are desirable for the purpose of avoiding or resolving any disputes that may arise under this Agreement, including those relating to the way in which the Parties discharge their respective responsibilities for the obligations within their areas of competence,
      HAVE AGREED AS FOLLOWS:
      Article 1
      Objectives
      1.   The objective of this Agreement is to provide a framework for cooperation between the Parties in the promotion, provision and use of civil GPS and GALILEO navigation and timing signals and services, value-added services, augmentations, and global navigation and timing goods. The Parties intend to work together, both bilaterally and in multilateral fora, as provided herein, to promote and facilitate the use of these signals, services, and equipment for peaceful civil, commercial, and scientific uses, consistent with and in furtherance of mutual security interests. This Agreement is intended to complement and facilitate agreements in force, or which may be negotiated in the future, between the Parties related to the design and implementation of civil satellite-based navigation and timing signals and services, augmentations, or value-added services.
      2.   Nothing in this Agreement shall supersede, modify or derogate from standards, procedures, rules, regulations and recommended practices adopted in ICAO, or IMO. The Parties confirm their intent to act in a manner consistent with these bodies’ regulatory framework and processes.
      3.   Nothing in this Agreement shall affect the rights and obligations of the Parties under the Marrakech Agreement Establishing the World Trade Organisation (hereinafter ‘the WTO Agreements’).
      Article 2
      Definitions
      For the purposes of this Agreement, the following definitions shall apply:

                  (a)

                  ‘Augmentation’ means civil mechanisms, which provide the users of satellite-based navigation and timing signals with input information, extra to that derived from the main constellation(s) in use, and additional range/pseudo-range inputs or corrections to, or enhancements of, existing pseudo-range inputs. These mechanisms enable users to obtain enhanced performance, such as increased accuracy, availability, integrity, and reliability.

                  (b)

                  ‘Civil satellite-based navigation and timing service’ means the civil satellite-based navigation or timing service provided by GPS or GALILEO, including secured governmental service.

                  (c)

                  ‘Civil satellite-based navigation and timing service provider’ means any government or other entity that provides civil satellite-based navigation or timing service.

                  (d)

                  ‘Civil satellite-based navigation and timing signals’ means the civil satellite-based navigation or timing signals provided by GPS or GALILEO, including secured governmental service signals.

                  (e)

                  ‘Civil satellite-based navigation and timing signals provider’ means any government or other entity that supplies GPS and/or GALILEO signals or augmentations.

                  (f)

                  ‘Classified information’ means official information that requires protection in the interests of national defense or foreign relations of the Parties, and is classified in accordance with applicable laws and regulations.

                  (g)

                  ‘GALILEO’ means an autonomous civil European global satellite-based navigation and timing system under civil control, developed by the European Community, its Member States, the European Space Agency and other entities. GALILEO includes an open service and one or more other services, such as a safety of life, commercial, and a secured governmental service, such as the Public Regulated Service (‘PRS’), and any augmentations provided by the European Community, its Member States or other entities.

                  (h)

                  ‘Global navigation and timing equipment’ means any civil end user equipment designed to transmit, receive, or process satellite-based navigation and timing signals, to provide value-added services, or to operate with an augmentation.

                  (i)

                  ‘GNSS’ means Global Navigation Satellite System.

                  (j)

                  ‘GPS’ means the Global Positioning System Standard Positioning Service, an open service, (or future civil services) provided by the United States Government for civil use. GPS is currently provided by the United States in its exercise of governmental authority as it is neither supplied on a commercial basis nor offered in competition with one or more service suppliers. GPS includes any augmentation or improvements to that service provided directly by the United States Government.

                  (k)

                  ‘Intellectual property’ shall have the meaning found in Article 2 of the Convention Establishing the World Intellectual Property Organisation, done at Stockholm, 14 July 1967.

                  (l)

                  ‘Interoperability at the user level’ is a situation whereby a combined system receiver with a mix of multiple GPS or GALILEO satellites in view can achieve position, navigation and timing solutions at the user level that are equivalent to or better than the position, navigation or timing solutions that could be achieved by either system alone.

                  (m)

                  ‘Measure’ means any law, regulation, rule, procedure, decision, administrative action or similar binding action by the Parties at the national or supranational level.

                  (n)

                  ‘Military satellite-based navigation and timing service’ means a satellite-based navigation and timing service provided by a Party and specifically designed to meet the needs of defense forces.

                  (o)

                  ‘Radio frequency compatibility’ means the assurance that one system will not cause interference that unacceptably degrades the stand-alone service that the other system provides.

                  (p)

                  ‘Secured governmental service’ means a secured, restricted access satellite-based navigation and timing service provided by a Party and specifically designed to meet the needs of authorised governmental users.

                  (q)

                  ‘Value-added service’ means a downstream service or application, excluding augmentations, that uses civil satellite-based navigation and timing signals or services in a manner intended to provide additional utility or benefit to the user.

            Article 3
      Scope
      Except as otherwise provided herein, this Agreement pertains to all measures established by the Parties concerning civil satellite-based navigation and timing signals and signal providers, civil satellite-based navigation and timing services and service providers, augmentations, value-added services and value-added service providers, and global navigation and timing goods.
      The provision of military satellite-based navigation and timing services is outside the scope of this Agreement, except as provided in Article 4 as far as radiofrequency compatibility is concerned, Article 11 and in the Annex to this Agreement.
      Secured governmental services are outside the scope of Articles 5 and 6, Article 8 paragraph 2, and Article 10, paragraph 3.
      Article 4
      Interoperability and Radio Frequency Compatibility
      1.   This Article is applicable to GPS and GALILEO as defined and, as far as radiofrequency compatibility is concerned, to all satellite-based navigation and timing services.
      2.   The Parties agree that GPS and GALILEO shall be radio frequency compatible. This paragraph shall not apply locally to areas of military operations. The Parties shall not unduly disrupt or degrade signals available for civil use.
      3.   The Parties also agree that GPS and GALILEO shall be, to the greatest extent possible, interoperable at the non-military user level. In order to achieve this interoperability and facilitate the joint use of the two systems, the Parties agree to realise their geodetic coordinate reference frames as closely as possible to the International Terrestrial Reference System. The Parties also agree to transmit the time offsets between GALILEO and GPS system times in the navigation messages of their respective services, as outlined in the document entitled ‘GPS/GALILEO Time Offset Preliminary Interface Definition’ referred to in the Annex.
      4.   The Parties agree that the radio frequency compatibility and interoperability working group established pursuant to Article 13 shall continue work already underway with a view toward achieving, inter alia:

                  (a)

                  radio frequency compatibility in the modernisation or evolution of either system; (The Parties need to assess further the radiofrequency compatibility of GALILEO and GPS III).

                  (b)

                  enhanced signal availability and reliability through complementary system architectures for the benefit of users worldwide.

                  (c)

                  interoperability at the non-military user level.

            5.   To further ensure radio frequency compatibility and non-military service interoperability, the Parties shall ensure that their augmentations meet the requirements of ICAO, IMO and the ITU to which such Parties are bound and such other requirements as the Parties may find mutually acceptable.
      6.   Nothing in this Agreement shall supersede, modify or derogate from standards, procedures, rules, regulations and recommended practices adopted in the ITU. The Parties confirm their intent to act in a manner consistent with this body’s regulatory framework and processes.
      Article 5
      Standards, Certification, Regulatory Measures, and Mandates
      The Parties agree to consult with each other before the establishment of any measures:

                  (1)

                  establishing, directly or indirectly (such as through a regional organisation), design or performance standards, certification requirements, licensing requirements, technical regulations or similar requirements applicable to civil satellite-based navigation and timing signals or services, augmentations, value-added services, global navigation and timing equipment, civil satellite-based navigation and timing signals or service providers, or value-added service providers; or

                  (2)

                  that have the effect, directly or indirectly, of mandating the use of any civil satellite-based navigation and timing signals or services, value-added service, augmentation, or global navigation and timing equipment within its respective territory (unless the mandating of such use is expressly authorised by ICAO, or IMO).

            Article 6
      Non-Discrimination and Trade
      1.   The Parties affirm their non-discriminatory approach with respect to trade in goods and services related to civil satellite-based navigation and timing signals, augmentations, and value-added services.
      2.   The Parties affirm that measures with respect to goods and services related to civil satellite-based navigation and timing signals or services, augmentations, and value-added services should not be used as a disguised restriction on or an unnecessary obstacle to international trade.
      3.   The trade and civil applications working group established pursuant to Article 13 shall consider, inter alia, non-discrimination and other trade related issues concerning civil satellite-based navigation and timing signals or services, augmentations, value-added services, and global navigation and timing goods, including the potential for additional commitments in relevant bilateral or multilateral fora.
      Article 7
      Open Access to Civil Satellite-based Navigation or Timing Signals
      1.   Except for reasons of national security, the Parties shall not restrict either use of or access to the positioning, navigation and timing information of their respective open services by end users, including for augmentation. This provision does not preclude the ability to make access to such information by other entities, such as manufacturers of satellite based navigation and timing equipment, subject to non-discriminatory commercial arrangements.
      2.   The Parties shall endeavour to provide signals intended for safety of life services with the required level of safety as recognised by competent international bodies.
      Article 8
      Open Access to Information
      1.   Subject to applicable export controls, the Parties agree to make publicly available on a non-discriminatory basis, sufficient information concerning their respective unencrypted civil satellite-based navigation and timing signals and augmentations, to ensure equal opportunity for persons who seek to use these signals, manufacture equipment to use these signals, or provide value-added services which use these signals. Such information shall include, but not be limited to, signal specifications, including elements such as minimum usage conditions, radio frequency characteristics, and navigation message structure.
      2.   To the extent that a Party provides civil satellite-based navigation and timing signals or services, augmentation, or value-added service for civil users that is encrypted or otherwise has features that allow the global navigation service provider to deny access, the Party shall, subject to applicable export controls, afford to the other Party’s manufacturers of global navigation and timing equipment or augmentation or value-added services providers, on a non-discriminatory basis, access to the information necessary to incorporate such encryption or other similar features into their equipment, through licensing of necessary information or other means at market prices.
      Article 9
      Intellectual Property
      Nothing in this Agreement is intended to affect intellectual property rights related to global satellite-based navigation and timing signals, services or goods.
      Article 10
      Cost Recovery for Civil Satellite-Based Navigation and Timing Signals
      1.   The Parties shall each endeavour to provide open service navigation and timing signals without direct fees for end use or for augmentation.
      2.   To the extent that a Party pursues a system that would be used for charging fees for international aviation or maritime safety of life users, it intends to do so in a manner consistent with ICAO and IMO.
      3.   The Parties shall consult each other where appropriate on cost recovery policies. The Parties shall encourage practicable steps to ensure transparency and accountability for fees incurred in providing their services.
      Article 11
      National Security Compatibility and Spectrum Use
      1.   The Parties shall work together to promote adequate frequency allocations for satellite-based navigation and timing signals, to ensure radio frequency compatibility in spectrum use between each other’s signals, to make all practicable efforts to protect each other’s signals from interference by the radio frequency emissions of other systems, and to promote harmonised use of spectrum on a global basis, notably at the ITU. The Parties shall cooperate with respect to identifying sources of interference and taking appropriate follow-on actions.
      2.   The Parties intend to prevent hostile use of satellite-based navigation and timing services while simultaneously preserving services outside areas of hostilities. To this end, their respective satellite based navigation and timing signals shall comply with the National Security Compatibility criteria set forth in the documents entitled ‘National Security Compatibility Compliance for GPS and GALILEO Signals in the 1 559-1 610 MHz Band, Part 1, Part 2 and Part 3’ (hereinafter ‘Criteria, Assumption and Methodology Documents’), referenced in the attached Annex, using the methodology and assumptions contained in the Criteria, Assumption and Methodology Documents.
      3.   The Parties agree that the signal structures specified in the Annex to this Agreement comply with the National Security Compatibility criteria set forth in the Criteria, Assumption and Methodology Documents.
      4.   In order to maintain and continuously improve the quality and security of services, the systems will need to respond effectively to unforeseen changes in technology, user needs and the spectrum environment. The Parties intend to pursue modernisation and development of their respective systems while maintaining the security and market benefits of compatible and interoperable common civil signals.
      5.   The Parties shall inform and consult one another on the implementation of the baseline signal structures specified in the Annex. A Party shall notify the other Party in writing through diplomatic channels if it desires in the future to change or add to the baseline signal structures specified and agreed to in the Annex.
      6.   Unless a Party voices concerns on the basis of National Security Compatibility, as taken into account in the Criteria, Assumption and Methodology Documents, or on the basis of radio-frequency compatibility, within a time period of three months after its receipt of the notification mentioned in paragraph 5, that Party will not oppose the adoption and implementation of the alternative signal structure specified in the notification. If a Party voices National Security or radio-frequency compatibility concerns within that time period, the Parties shall without delay enter into consultations to verify that the alternative signal structures comply with the National Security Compatibility criteria set forth in the Criteria, Assumption and Methodology Documents and with radio-frequency compatibility, using the respective Assumptions and Methodology documents referred to in the Annex for compatibility analysis.
      7.   The Parties agree to use the common baseline modulation for the GALILEO Open Service and the future GPS III civil signal (Standard Positioning Service) as described in the Annex. The Parties shall work together without delay toward achieving optimisation of that modulation for their respective systems. If a Party changes or adds to its modulation for the GALILEO Open Service or the future GPS III civil signal, pursuant to the process set forth in paragraphs 5 and 6, the other Party shall not be obliged to change or add to its modulation.
      8.   The Parties agree to study the means to protect the secured governmental service in the context of national security compatibility, under the working group on security issues established in Article 13, paragraph (2)(d).
      Article 12
      GPS and GALILEO Search & Rescue Services
      A global search and rescue service is planned for both GALILEO and future generations of GPS satellites. The Parties agree that these services shall be radio frequency compatible and to the greatest extent possible, interoperable at the user level. The Parties will cooperate as appropriate on matters related to global search and rescue services for GALILEO and future generations of GPS satellites at the COSPAS-SARSAT Council or at any other mutually agreeable forum.
      Article 13
      Modalities
      1.   The Parties shall establish working groups for mutually agreed upon topics. Each working group will include participation, as appropriate, from the competent authorities of the Parties. Third party participation in working groups shall be only by mutual consent of the Parties.
      2.   The following working groups shall be established pursuant to paragraph 1.

                  (a)

                  A working group on radio frequency compatibility and interoperability for civil satellite-based navigation and timing services.

                  (b)

                  A working group on trade and civil applications.

                  (c)

                  A working group to promote cooperation on the design and development of the next generation of civil satellite-based navigation and timing systems.

                  (d)

                  A working group on security issues relating to GPS and GALILEO, including information exchange on possible applications for secured governmental services, and including interactions between their respective signals. The group shall also work towards defining the details of the notification and consultation procedure referred to in Article 11, as well as possible interfaces.

            3.   The Parties may establish terms of reference for working groups established pursuant to paragraph 1, as appropriate.
      4.   All exchanges of information, equipment, technology or other data (including that which is classified), as well as the delivery of services, pursuant to this Agreement shall be subject to all applicable laws and regulations, including export control laws and regulations. All such information, equipment, technology or other data transferred shall be used only for the purposes of this Agreement and shall not be transferred to, or used by, any third country, firm, person, organisation or government without the prior written approval of the originating party.
      5.   Subject to applicable laws, regulations, and official governmental policies, the Parties agree to handle as expeditiously as possible license applications for the export of goods, information, technology or other data appropriate for the development and implementation of GALILEO or GPS.
      6.   Classified information relating to the implementation of this Agreement may be exchanged at working groups or otherwise only in accordance with the conditions set forth in paragraph 2 of the Annex to this Agreement.
      7.   The Parties shall meet as needed, and in principle once a year, to assess the need for working groups, define or modify working group terms of reference, and review working group progress.
      Article 14
      Follow-up Activities
      The Parties intend to commence discussions of a follow-on agreement regarding potential cooperation between their respective independently funded and operated civil satellite-based navigation and timing systems for the period following achievement by GALILEO of initial operational capability. In those discussions the Parties intend to explore various coordination options, such as creating a high-level interface council that would meet once or twice a year to discuss policy issues and future system planning, a small GPS-GALILEO secretariat to share interface data and provide day-to-day coordination, and liaison officers as mutually agreed.
      Article 15
      Activities in International Fora
      To promote and implement the objectives of this Agreement, the Parties shall, as appropriate, cooperate on matters of mutual interest related to civil satellite-based navigation and timing signals and systems, value-added services, and global navigation and timing goods in ICAO, ITU, IMO, WTO and other relevant organisations and fora.
      Article 16
      Funding
      Each Party shall bear the costs of fulfilling its respective responsibilities under this Agreement. Obligations of each Party pursuant to this Agreement are subject to the availability of appropriated funds.
      Article 17
      Consultation and Dispute Resolution
      1.   Any dispute arising under or related to the terms, interpretation or application of this Agreement shall be resolved by consultation.
      2.   Representatives of the Council of the European Union and the European Commission, of the one part, and of the United States, of the other part, shall meet as needed for the consultations foreseen in paragraph 1 and in Article 5, Article 10 paragraph 3, and Article 11 paragraphs 5 and 6.
      3.   Nothing in this Agreement shall affect the Parties’ right to recourse to dispute settlement under WTO Agreements.
      Article 18
      Definition of the Parties
      For the purpose of this Agreement, ‘the Parties’ shall mean the European Community or its Member States or the European Community and its Member States, within their respective areas of competence, on the one hand, and the United States, on the other.
      Article 19
      Responsibility and Liability
      1.   The Parties shall have responsibility for failure to comply with obligations under this Agreement.
      2.   If it is unclear whether an obligation under this Agreement is within the competence of either the European Community or its Member States, at the request of the United States, the European Community and its Member States shall provide the necessary information. Failure to provide this information with all due expediency or the provision of contradictory information shall result in joint and several liability.
      Article 20
      Entry into Force and Termination
      1.   This Agreement shall enter into force on the date on which the European Community and its Member States and the United States inform the Depository through diplomatic notes that their respective internal procedures necessary for its entry into force have been completed.
      2.   This Agreement shall be subject to accession by States that become Members of the European Union after the date it is signed by the Parties.
      3.   Notwithstanding paragraph 1, the Parties agree to provisionally apply this Agreement from the first day of the month following the date on which the Parties have notified each other of the completion of the procedures necessary for this purpose.
      4.   The European Community shall serve as the Depository for this Agreement.
      5.   This Agreement shall remain in force for ten years. At least three months before the end of the initial 10-year period, the Parties shall inform each other of their intention whether to extend the Agreement for a period of five years. Thereafter, it shall be extended automatically for additional five-year periods, unless the European Community and its Member States, on the one hand, or the United States, on the other, gives notice to the Depository in writing at least three months prior to the end of any subsequent five-year period, of its intention not to extend the Agreement.
      6.   This Agreement may only be amended by agreement of the Parties. Any amendment to this Agreement shall be subject to approval by the Parties in accordance with their respective internal procedures.
      7.   The Parties shall review the implementation of this Agreement in 2008 and, may consider at that time to amend it in accordance with the procedure in paragraph 6.
      8.   This Agreement may be terminated at any time upon one year’s written notice.

         Done at Dromoland Castle, Co. Clare, on the twenty-sixth day of June 2004, in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish, Czech, Estonian, Hungarian, Latvian, Lithuanian, Maltese, Polish, Slovakian and Slovenian languages. English shall be the authentic language.

            Pour le Royaume de Belgique
            Voor het Koninkrijk België
            Für das Königreich Belgien

            Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.
            Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brussels Hoofdstedelijk Gewest.
            Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

            Za Českou republiku

            På Kongeriget Danmarks vegne

            Für die Bundesrepublik Deutschland

            Eesti Vabariigi nimel

            Гια την Eλληvιкή Δημoкρατία

            Por el Reino de España

            Pour la République française

            Thar cheann Na hÉireann
            For Ireland

            Per la Repubblica italiana

            Гια την Kυπριαкή Δημoкρατία,

            Latvijas Republikas vārdā

            Lietuvos Respublikos vardu

            Pour le Grand-Duché de Luxembourg

            A Magyar Köztársaság részéről

            Għar-Repubblika ta’ Malta

            Voor het Koninkrijk der Nederlanden

            Für die Republik Österreich

            W imieniu Rzeczypospolitej Polskiej

            Pela República Portuguesa

            Za Republiko Slovenijo

            Za Slovenskú republiku

            Suomen tasavallan puolesta

            För Konungariket Sverige

            For the United Kingdom of Great Britain and Northern Ireland

            Por la Comunidad Europea
            Za Evropské společenství
            For Det Europæiske Fællesskab
            Für die Europäische Gemeinschaft
            Euroopa Ühenduse nimel
            Για την Ευρωπαϊκή Κοινότητα
            For the European Community
            Pour la Communauté européenne
            Per la Comunità europea
            Eiropas Kopienas vārdā
            Europos bendrijos vardu
            Az Európai Közösség részéről
            Għall-Komunità Ewropea
            Voor de Europese Gemeenschap
            W imieniu Wspólnoty Europejskiej
            Pela Comunidade Europeia
            Za Európske spoločenstvo
            Za Evropsko skupnost
            Euroopan yhteisön puolesta
            På Europeiska gemenskapens vägnar

            For the United States of America

         ANNEX

            GPS AND GALILEO SIGNAL STRUCTURES

                     (1)

                     For reasons of National Security Compatibility, avoidance of unacceptable radio-frequency interference, and suitability of GNSS performance, the Parties agree to the baseline signal structures described below:

                                 —

                                 The GALILEO secured governmental service in the 1 559-1 610 MHz band using a Binary Offset Carrier (BOC) cosine phased modulation with a 15,345 MHz sub-carrier frequency and a code rate of 2,5575 mega-chips per second (Mcps) centred at 1 575,42 MHz (cosine phased BOC (15, 2,5)), and a signal power as specified in the document, referred to below, entitled ‘Reference Assumptions for GPS/GALILEO Compatibility Analyses.’

                                 —

                                 The GALILEO signal structures used for any or all other services, including the Open Service (OS), Safety-of-Life service (SoL), and Commercial Service (CS), in the 1 559-1 610 MHz band using a Binary Offset Carrier (BOC) modulation with a 1,023 MHz sub-carrier frequency and a code rate of 1,023 mega-chips per second (Mcps) (BOC (1,1)) centred at 1 575,42 MHz, and a signal power as specified in the document, referred to below, entitled ‘Reference Assumptions for GPS/GALILEO Compatibility Analyses.’

                                 —

                                 The GPS signal structure in the 1 559-1 610 MHz band, centred at 1 575,42 MHz, will be a Binary Phase Shift Key (BPSK) modulation with a code rate of 1,023 Mcps; a BPSK modulation with a code rate of 10,23 Mcps; and a BOC modulation with a 10,23 MHz sub-carrier frequency and a code rate of 5,115 Mcps, and a signal power as specified in the document, referred to below, entitled ‘Reference Assumptions for GPS/GALILEO Compatibility Analyses.’ In the future, a BOC (1, 1) modulation centred at 1 575,42 MHz will be added to this signal structure.

                     (2)

                     The classified assumptions and methodology used to determine the National Security Compatibility criteria, and the criteria themselves, are contained in the following documents: National Security Compatibility Compliance for GPS and GALILEO Signals in the 1 559-1 610 MHz Band, Part 1, Part 2 and Part 3, (hereinafter, ‘Part 1,’‘Part 2,’ and ‘Part 3,’ respectively) dated 9 June 2004, including any future amendments, changes or modifications to these documents as mutually agreed in accordance with paragraph 6.a. of this Annex. Access to Part 1, Part 2 and Part 3 shall be only by the United States and those Member States that are a party to a General Security of Military Information Agreement (hereinafter ‘GSOMIA’) or a General Security of Information Agreement (hereinafter ‘GSOIA’) with the United States, which shall apply to the access, maintenance, use and release of these classified documents. Should an applicable agreement regarding security of information between the European Community and the United States be concluded in the future, it shall govern the access, maintenance, use and release of Part 1, Part 2 and Part 3. For the time being, representatives of the European Commission and staff members of the GALILEO Joint Undertaking and European Space Agency shall be granted oral and visual access to Part 2 for the purposes of implementation of and compliance with this Agreement, on the basis of an established security clearance with a Member State that has a GSOMIA or GSOIA with the United States, in accordance with the national security procedures and laws of the Member State, and with the GSOMIA or GSOIA with the United States. Representatives of the European Commission and staff members of the GALILEO Joint Undertaking and European Space Agency shall be granted access to Part 1 and Part 3 in accordance with applicable security rules. The classified information shall at all times be protected and handled only in facilities with an appropriate facility security clearance in accordance with the applicable security procedures, laws and the GSOMIA or GSOIA.

                     (3)

                     Assumptions for radio frequency signal compatibility analyses are contained in the following document: ‘Reference Assumptions for GPS/GALILEO Compatibility Analyses’, 9 June 2004 including any future amendments, changes or modifications to this document as mutually agreed by the Parties.

                     (4)

                     Methodology for radio frequency compatibility analysis is contained in the following document: ‘Models and Methodology for GPS/GALILEO Radio Frequency Compatibility Analyses’, dated 18 June 2004, including any future amendments, changes or modifications to this document as mutually agreed by the Parties.

                     (5)

                     The provision of the time offsets between GALILEO and GPS system time in the navigation messages of their respective services is outlined in the following document: ‘GPS/GALILEO Time Offset Preliminary Interface Definition’ dated 20 March 2003, including any future amendments, changes or modifications to this document as mutually agreed by the Parties.

                     (6)

                                 (a)

                                 Notwithstanding Article 20, paragraph 6, any future amendments, changes or modifications to the documents entitled ‘National Security Compatibility Compliance for GPS and GALILEO Signals in the 1 559-1 610 MHz Band, Part 1, Part 2 and Part 3’ shall be decided by mutual agreement by a sub-group of the working group established under Article 13, paragraph 2 (d), composed of representatives of the United States on the one hand, and representatives of the European Commission, acting on behalf of the European Community, who have access to these classified documents in accordance with paragraph 2 of this Annex, and representatives of those Member States who have access to these classified documents in accordance with paragraph 2 of this Annex, on the other hand. These decisions shall be binding on the Parties.

                                 (b)

                                 Notwithstanding Article 20, paragraph 6, any future amendments, changes or modification to the following documents shall be adopted by mutual agreement between appropriate representatives of the Parties in the working group established under Article 13, paragraph 2(a), including the United States: ‘Reference Assumptions for GPS/GALILEO Compatibility Analyses’; ‘Models and Methodology for GPS/GALILEO Radio Frequency Compatibility Analyses’; ‘GPS/GALILEO Time Offset Preliminary Interface Definition.’ These decisions shall be binding on the Parties.


title: 2013/566/EU: Decision of the European Parliament of 17 April 2013 on discharge in respect of the implementation of the budget of the European Banking Authority for the financial year 2011#Resolution of the European Parliament of 17 April 2013 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Banking Authority for the financial year 2011

text:
               16.11.2013

               EN

               Official Journal of the European Union

               L 308/196

         DECISION OF THE EUROPEAN PARLIAMENT
   of 17 April 2013
   on discharge in respect of the implementation of the budget of the European Banking Authority for the financial year 2011
   (2013/566/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the European Banking Authority for the financial year 2011,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the European Banking Authority for the financial year 2011, together with the Authority’s replies (1),

               —

               having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

               —

               having regard to Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

               —

               having regard to Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (4), and in particular Article 64 thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Economic and Monetary Affairs (A7-0113/2013),

               1.

               Grants the Executive Director of the European Banking Authority discharge in respect of the implementation of the Authority’s budget for the financial year 2011;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Executive Director of the European Banking Authority, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Martin SCHULZ

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 388, 15.12.2012, p. 60.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 298, 26.10.2012, p. 1.

      (4)  OJ L 331, 15.12.2010, p. 12.

      (5)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 17 April 2013
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Banking Authority for the financial year 2011
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the European Banking Authority for the financial year 2011,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the European Banking Authority for the financial year 2011, together with the Authority’s replies (1),

                  —

                  having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

                  —

                  having regard to Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

                  —

                  having regard to Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (4), and in particular Article 64 thereof,

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Economic and Monetary Affairs (A7-0113/2013),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the European Banking Authority (‘the Authority’) for the financial year 2011 are reliable and that the underlying transactions are legal and regular,

                  B.

                  whereas the Authority, a newly created Agency which is located in London, was established by Regulation (EU) No 1093/2010 and officially started its operations on 1 January 2011 as an independent authority,

                  C.

                  whereas the Authority should be considered in the context of its legal transition from its predecessor, the Committee of European Banking Supervisors (CEBS), and as a result, apart from its new mandate, it has taken over all existing and ongoing tasks and responsibilities from the CEBS,

                  D.

                  whereas the Authority is an integral part of the European System of Financial Supervisors and works in close cooperation with its sister authorities, the European Insurance and Occupational Pensions Authority and the European Securities and Markets Authority, within a Joint Committee, and with the European Systemic Risks Board,

                  E.

                  whereas the Authority’s overall budget for 2011 was EUR 12 685 000,

                  F.

                  whereas in accordance with its Founding Regulation (6), 60 % of the 2011 budget was financed by contributions from the Member States and the European Free Trade Association (EFTA) countries and 40 % was financed by the Union budget,

                  G.

                  whereas at the end of 2011, the Authority recorded a positive budget outturn of EUR 3 579 861 (7), which was then recorded in the accounts as a liability towards the Commission,

         Budgetary and financial management

                  1.

                  Takes note from the annual accounts (8) that the initial Union contribution to the Authority’s budget for 2011 was EUR 5 073 000; notes that this was the first year of the Authority’s activities;

                  2.

                  Acknowledges from the annual accounts that the Authority’s overall budget for 2011 amounted to EUR 12 865 000 (including a contribution of EUR 7 413 000 from national supervisory authorities and a contribution of EUR 199 000 from observers);

                  3.

                  Calls on the Commission to evaluate the possibility of coming up with a proposal ensuring that the budgets of the three European Supervisory Authorities (ESAs) are fully funded by the Union budget;

                  4.

                  Notes with concern that the provisions of the Financial Regulation are not fully adapted to the Authority’s financing scheme as 60 % of its budget is financed by contributions from Member States and EFTA countries; believes that that issue should be addressed, at the latest, in the course of the next revision of the Financial Regulation as regards agencies, and calls on the Commission evaluate this situation and to report on this issue to the discharge authority;

                  5.

                  Notes from the annual accounts that in 2011, the major focus of the Authority was its establishment and further extension;

                  6.

                  Stresses the importance of adequately matching the allocated budget and available posts on one hand and the tasks entrusted to the Authority on the other hand, as a mismatch may result in unbalanced staffing as regards the recruitment of the Authority’s staff on one hand and the involvement of national experts on the other; expresses concern about the fact that the Commission has altered the establishment plan, as proposed by the Authority without clearly indicating this; urges the Commission to be fully transparent on this and other issues;

                  7.

                  Notes the concerns that were raised in the preliminary conclusions of the IMF financial sector assessment of December 2012 on the Union in which it is recommended to increase the resources and powers of the ESAs in order to enable them to successfully fulfil their mandates, while enhancing their operational independence;

                  8.

                  Acknowledges from the annual accounts that in its inauguration meeting on 12 January 2011, the Authority’s Management Board adopted and approved the principal financial rules and the Authority’s Financial Regulation in order to enable it to execute its powers as a European authority;

                  9.

                  Notes that the two rented offices, with a total area of 1 089 m2, incurred expenditure of EUR 1 016 512,64 and calls on the Authority to ensure that office rentals and expenditure do not exceed normal local market prices and also to seek to reduce costs year on year as market conditions improve;

         Accounting system

                  10.

                  Takes note from the annual accounts (9) that the standard and general budget structure adopted by the Authority at the beginning of 2011 needed to be adapted according to its needs (as the budget was prepared before the first year of the activity, there was no previous experience available);

                  11.

                  Observes from the annual accounts that on 10 June 2011, the Authority introduced accrual based accounting (ABAC), the accounting system used by the Commission for budgetary accounting; notes, furthermore, that during the transition period from 1 January to 10 June 2011, the Authority used an Excel-based tool for its budgetary accounting and at the time of transition, a report with commitments and payments loaded in ABAC was drawn up;

                  12.

                  Takes note of the fact that payments made prior to the implementation of ABAC are only reflected in the transition system and not reflected in ABAC; notes that each time a report on budgetary consumption and execution is tracked from ABAC, a manual aggregation is made in an Excel spreadsheet to fully reflect the initial budget and the consumption of commitments and payments for the entire financial year;

                  13.

                  Acknowledges from the annual accounts that from 2012 onwards, all financial transactions are fully represented in ABAC;

                  14.

                  Observes from the annual accounts that for general accounting, the Authority implemented SAP on 10 June 2011, a system directly linked to ABAC which is the system used by the Commission; notes, furthermore, that until this date, the Authority used SAGE (10), the system established by CEBS, for financial accounting, and that as of 10 June 2011 a transition balance was established;

                  15.

                  Notes that on 28 August 2011, the Authority established the asset registration system of the Commission (ABAC Assets) in order physically to track the individual items of the fixed assets (ABAC Assets is integrated in the Authority’s accounting system); notes, furthermore, that no system existed for that purpose in CEBS;

                  16.

                  Observes from the annual accounts (11) that during the months of August and September 2011, the Authority proceeded with a physical inventory of the fixed assets received from CEBS and concluded that no significant variances have been identified;

                  17.

                  Welcomes the validation of the Authority’s accounting system carried out by the external auditor, Deloitte Consulting (12); notes that the review of the Authority’s accounting system took place in November 2012;

                  18.

                  Observes from Deloitte’s report that ‘on the basis of the compliance validation procedures performed, Deloitte overall conclusion is that EBA accounting system is compliant with the criteria specified by the European Commission (DG Budget). A number of internal controls are already in place and are adequately executed by the EBA responsible for the accounting process, and for granting access to the key involved IT infrastructure elements, in line with good practices’;

         Commitments

                  19.

                  Observes from the annual accounts that the Authority registered a budget execution ratio of 71 % for commitments and of 59 % for payments at the end of 2011;

                  20.

                  Notes that the commitment execution rate for Title I (Staff expenditure) is 91 % and is in line with the number of positions filled on 31 December 2011 (41 out of 46 foreseen in the establishment plan); also notes that the lower rate in terms of payments (83 %) is mainly due to late invoicing of the seconded staff by national supervisory authorities; calls on the Authority to inform the discharge authority of the actions taken to address this deficiency;

                  21.

                  Observes from the annual accounts that the lower level of execution in Title III (Operational expenditure) relates mainly to the information technology (IT) area, which is explained by both a longer than expected recruitment of the necessary IT staff and length in the procurement procedure; calls on the Authority to inform the discharge authority of the actions taken to improve the level of execution in Title III;

                  22.

                  Observes from the Authority’s Annual Report (13) that in 2011, it used only non-differentiated appropriations; also notes that commitments amounted to EUR 9 054 030 or 71 % of the 2011 budget, of which EUR 7 436 217 has been paid and EUR 1 617 813 was automatically carried over, as per Article 10 of the Authority’s Financial Regulation;

                  23.

                  Notes with concern the observation by the Court of Auditors that the commitments rates were low, especially for Title II (Administrative expenditure) (57 %) and Title III (Operational expenditure) (46 %), which impacted on the Authority’s IT objectives, which were not entirely achieved; calls on the Authority to inform the discharge authority of the measures taken to improve these rates, as the low execution rates shows difficulties in budget planning and implementation;

                  24.

                  Notes that the Court of Auditors pointed out weaknesses as regards three legal commitments made in advance of budget commitments (EUR 742 000); calls on the Authority to inform the discharge authority of the actions it has taken to address this deficiency;

         Procurement procedures

                  25.

                  Notes that according to the Authority’s Annual Report (14), in 2011, a number of procurement procedures for goods and services were initiated; notes, furthermore, that the Authority has made use of existing Commission framework contracts, especially in the IT area where it deployed a number of internal IT systems, such as e-mail and intranet, as well as an IT platform for collecting and analysing data from national supervisory authorities;

                  26.

                  Acknowledges that the Authority has made significant progress in updating its procurement procedures so as to comply with Union procurement rules; notes that the backlog of outstanding procurement procedures was substantially reduced and that according to the Authority, the remaining backlog/areas of non-compliance will be corrected in 2013; calls on the Authority to follow up this issue and to report to the discharge authority on the progress achieved;

                  27.

                  Acknowledges that some exceptions to the procurement rules were granted; notes, however, that the number was much lower in 2012 than in 2011 and that most areas of significant non-compliance have been corrected; calls on the Authority to inform the discharge authority of any further actions taken to address this deficiency;

         Recruitment procedures

                  28.

                  Takes note from the Court of Auditors that the Authority needs to improve the transparency of recruitment procedures; urges the Authority to inform the discharge authority of the actions it has taken to address this deficiency; considers that some of the provisions of the Staff Regulations may present a considerable administrative burden; therefore encourages the Commission to allow for a certain degree of simplification under Article 110 of the Staff Regulations in regard to the agencies;

                  29.

                  Observes from the Authority’s Annual Report (15) that 2011 was a crucial year for the Authority in setting up and extending the human resources team in order to adequately source its new functions and tasks; also notes that 33 recruitment procedures have been conducted in total, and that the Authority’s staff increased from 31 to 52 between 1 January and 31 December 2011 and is comprised of 19 nationalities;

                  30.

                  Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 17 April 2013 (16) on the performance, financial management and control of the agencies.

         (1)  OJ C 388, 15.12.2012, p. 60.

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

         (3)  OJ L 298, 26.10.2012, p. 1.

         (4)  OJ L 331, 15.12.2010, p. 12.

         (5)  OJ L 357, 31.12.2002, p. 72.

         (6)  OJ L 331, 15.12.2010, p. 12, Article 62(1).

         (7)  Annual accounts 2011, p. 19.

         (8)  Annual accounts 2011, p. 18.

         (9)  Annual accounts 2011, p. 31.

         (10)  SAGE is a tailor-made accounting system for small and medium-sized business companies, organisations and institutions.

         (11)  Annual accounts 2011, p. 26.

         (12)  European Banking Authority (EBA), Validation of accounting systems, 7.12.2012, Deloitte.

         (13)  Annual Report 2011, p. 41.

         (14)  Annual Report 2011, p. 36.

         (15)  Annual Report 2011, p. 36.

         (16)  Texts adopted, P7_TA(2013)0134 (see page 374 of this Official Journal).


title: 2013/598/EU: Decision of the European Parliament of 17 April 2013 on discharge in respect of the implementation of the budget of the European Agency for Safety and Health at Work for the financial year 2011#Resolution of the European Parliament of 17 April 2013 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Agency for Safety and Health at Work for the financial year 2011

text:
               16.11.2013

               EN

               Official Journal of the European Union

               L 308/295

         DECISION OF THE EUROPEAN PARLIAMENT
   of 17 April 2013
   on discharge in respect of the implementation of the budget of the European Agency for Safety and Health at Work for the financial year 2011
   (2013/598/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the European Agency for Safety and Health at Work for the financial year 2011,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2011, together with the Agency’s replies (1),

               —

               having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

               —

               having regard to Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

               —

               having regard to Council Regulation (EC) No 2062/94 of 18 July 1994 establishing a European Agency for Safety and Health at Work (4), and in particular Article 14 thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Employment and Social Affairs (A7-0085/2013),

               1.

               Grants the Director of the European Agency for Safety and Health at Work discharge in respect of the implementation of the Agency’s budget for the financial year 2011;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Director of the European Agency for Safety and Health at Work, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Martin SCHULZ

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 388, 15.12.2012, p. 219.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 298, 26.10.2012, p. 1.

      (4)  OJ L 216, 20.8.1994, p. 1.

      (5)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 17 April 2013
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Agency for Safety and Health at Work for the financial year 2011
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the European Agency for Safety and Health at Work for the financial year 2011,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the European Agency for Safety and Health at Work for the financial year 2011, together with the Agency’s replies (1),

                  —

                  having regard to the Council’s recommendation of 12 February 2013 (05753/2013 – C7-0041/2013),

                  —

                  having regard to Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

                  —

                  having regard to Council Regulation (EC) No 2062/94 of 18 July 1994 establishing a European Agency for Safety and Health at Work (4), and in particular Article 14 thereof,

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Employment and Social Affairs (A7-0085/2013),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the European Agency for Safety and Health at Work (‘the Agency’) for the financial year 2011 are reliable and that the underlying transactions are legal and regular,

         Budgetary and financial management

                  1.

                  Notes from the Court of Auditors’ report that the Agency’s 2011 budget amounted to EUR 16,4 million, compared to EUR 15,5 million in 2010, which represents a 5,8 % increase;

                  2.

                  Regrets that at the same time, the cancellation rate for appropriations doubled from 4 % in 2010 to 8 % (EUR 1,3 million) of the total budget for 2011, indicating difficulties in the implementation of the actions foreseen in the annual work programme and in complying with the budgetary principle of annuality; calls for a more realistic and feasible programme to be presented in future;

                  3.

                  Acknowledges from the Agency that the levels of budget implementation for the financial year 2011 were generally better than in 2010, in particular the cancellation of C8 appropriations and the reduction of the carryforward of C1 appropriations for Title III ‘Operational Activities’; notes that the higher cancellation rate for 2011 appropriations was partly due to some vacant posts in the Agency and the need to not engage in a major activity (the OSHWikipedia project: an online occupational safety and health encyclopaedia) until international cooperation was secured; calls on the Agency to address the situation and to report on the actions taken to the discharge authority;

                  4.

                  Notes with concern that whereas the Agency’s Financial Regulation and the corresponding Implementing Rules provide for a physical inventory at least once every three years, at the time of Court of Auditors’ audit, the latest physical inventory was carried out in 2006;

                  5.

                  Acknowledges from the Agency that the physical inventory was carried out in 2012;

         Seat agreement

                  6.

                  Notes with concern the Court of Auditors’ finding that the Agency has not concluded a seat agreement;

                  7.

                  Takes note of the Agency’s reply that negotiations concerning the Agency’s seat agreement continue and that the earlier negotiated draft of the agreement was again subject to interconsultations involving several ministries; calls on the Agency to duly inform the discharge authority on the progress of the negotiations and invites the Member State hosting the Agency to take steps to speed up the negotiations and to conclude the seat agreement in the near future;

         Performance

                  8.

                  Invites the Commission, together with the European Training Foundation, the European Centre for the Development of Vocational Training, European Foundation for the Improvement of Living and Working Conditions and the European Agency for Safety and Health at Work to further explore the synergies that exist between those agencies and to report to the discharge authority before any decisions concerning possible changes to the respective responsibilities and/or working methods of these agencies are considered on the possible deeper integration of those four agencies; invites those agencies and the Commission to evaluate whether closer cooperation could lead to economies of scale and optimisation of their performance;

         Internal audit

                  9.

                  Notes that in 2011, the Agency’s Internal Audit Service delivered an audit report on ‘Website and external communications in the EU-OSHA’, resulting in no critical recommendations, two ‘very important’ recommendations and five ‘important’ recommendations; notes that all seven recommendations were accepted by the management and are already implemented (six out of seven in 2011 and the remaining one in 2012); notes that the Agency carried out an ‘IT task assessment in the EU-OSHA’, issued the corresponding report and carried out a report out a review on the status of recommendations of previous audits;

                  10.

                  Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its resolution of 17 April 2013 (6) on the performance, financial management and control of the agencies.

         (1)  OJ C 388, 15.12.2012, p. 219.

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

         (3)  OJ L 298, 26.10.2012, p. 1.

         (4)  OJ L 216, 20.8.1994, p. 1.

         (5)  OJ L 357, 31.12.2002, p. 72.

         (6)  Text adopted, P7_TA(2013)0134. (See page 374 of this Official Journal).


title: 2013/608/EU: Decision of the European Parliament of 17 April 2013 on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2011#Resolution of the European Parliament of 17 April 2013 with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2011

text:
               16.11.2013

               EN

               Official Journal of the European Union

               L 308/319

         DECISION OF THE EUROPEAN PARLIAMENT
   of 17 April 2013
   on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2011
   (2013/608/EU)
   THE EUROPEAN PARLIAMENT,

               —

               having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2011,

               —

               having regard to the Court of Auditors’ report on the annual accounts of the European Fundamental Rights Agency for the financial year 2011, together with the Agency’s replies (1),

               —

               having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013),

               —

               having regard to Article 319 of the Treaty on the Functioning of the European Union,

               —

               having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

               —

               having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

               —

               having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights (4), and in particular Article 21 thereof,

               —

               having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

               —

               having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

               —

               having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0102/2013),

               1.

               Grants the Director of the European Union Agency for Fundamental Rights discharge in respect of the implementation of the Agency’s budget for the financial year 2011;

               2.

               Sets out its observations in the resolution below;

               3.

               Instructs its President to forward this Decision and the resolution that forms an integral part of it to the Director of the European Union Agency for Fundamental Rights, the Council, the Commission and the Court of Auditors, and to arrange for their publication in the Official Journal of the European Union (L series).

            The President

         Martin SCHULZ

            The Secretary-General

         Klaus WELLE

      (1)  OJ C 388, 15.12.2012, p. 196.

      (2)  OJ L 248, 16.9.2002, p. 1.

      (3)  OJ L 298, 26.10.2012, p. 1.

      (4)  OJ L 53, 22.2.2007, p. 1.

      (5)  OJ L 357, 31.12.2002, p. 72.

      RESOLUTION OF THE EUROPEAN PARLIAMENT
      of 17 April 2013
      with observations forming an integral part of its Decision on discharge in respect of the implementation of the budget of the European Union Agency for Fundamental Rights for the financial year 2011
      THE EUROPEAN PARLIAMENT,

                  —

                  having regard to the final annual accounts of the European Union Agency for Fundamental Rights for the financial year 2011,

                  —

                  having regard to the Court of Auditors’ report on the annual accounts of the European Fundamental Rights Agency for the financial year 2011, together with the Agency’s replies (1),

                  —

                  having regard to the Council’s recommendation of 12 February 2013 (05753/2013 — C7-0041/2013),

                  —

                  having regard to Article 319 of the Treaty on the Functioning of the European Union,

                  —

                  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities (2), and in particular Article 185 thereof,

                  —

                  having regard to Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (3), and in particular Article 208 thereof,

                  —

                  having regard to Council Regulation (EC) No 168/2007 of 15 February 2007 establishing a European Union Agency for Fundamental Rights (4), and in particular Article 21 thereof,

                  —

                  having regard to Commission Regulation (EC, Euratom) No 2343/2002 of 19 November 2002 on the framework Financial Regulation for the bodies referred to in Article 185 of Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities (5), and in particular Article 94 thereof,

                  —

                  having regard to Rule 77 of, and Annex VI to, its Rules of Procedure,

                  —

                  having regard to the report of the Committee on Budgetary Control and the opinion of the Committee on Civil Liberties, Justice and Home Affairs (A7-0102/2013),

                  A.

                  whereas the Court of Auditors stated that it has obtained reasonable assurances that the annual accounts of the European Union Agency for Fundamental Rights (‘the Agency’) for the financial year 2011 are reliable and that the underlying transactions are legal and regular,

                  B.

                  whereas the Agency’s overall budget for the year 2011 was EUR 20 180 000, whereas the initial contribution of the Unionto the Agency’s budget for 2011 was EUR 19 978 200,

         Budgetary and financial management

                  1.

                  Welcomes the fact that the Agency’s annual accounts present fairly, in all material respects, its financial position as of 31 December 2011 and the results of its operations and its cash flows for the year then ended, in accordance with the provisions of its Financial Regulation and the accounting rules adopted by the Commission’s accounting officer;

                  2.

                  Welcomes the fact that the transactions underlying the Agency’s annual accounts for the financial year ended 31 December 2011 are legal and regular in all material respects;

                  3.

                  Takes note that the Court of Auditors did not make any critical remarks in its report;

                  4.

                  Acknowledges that in 2011, the Agency committed 100 % of the appropriations received; observes, however, that in terms of paid appropriations, the Agency’s execution rate stands at 75 % under Title II (Administrative expenditure) and at only 27 % under Title III (Operational expenditure); calls on the Agency to implement specific measures to improve its budgeting process and execution rate of payment in the case of administrative and operational expenditure;

         Human resources

                  5.

                  Notes that in 2012, there were three cases dealt with by the Court of Justice of the European Union regarding an allegation of psychological harassment, the rejection of an application for a post and the non-extension of a contract of an agent; notes that on 6 July 2011, the Ombudsman opened Case 0917/2011/(PMC) EIS, which is based on allegations regarding the failure to investigate properly the complainant’s allegations of psychological harassment and incorrect storage of documents;

                  6.

                  Notes that in one of the cases referred to in paragraph 5, the European Union Civil Service Tribunal decided in favour of the applicant (Case F-58/10, judgment of 18 September 2012) and annulled the Agency’s decision of 16 October 2009 not to bring disciplinary proceedings against two members of staff for alleged psychological harassment due to the lack of impartiality on the part of the investigator and his refusal to guarantee the anonymity of the witnesses and ordered it to pay damages to the applicant and the costs; notes that in case F-112/10, the Tribunal decided in favour of the Agency but the applicant brought an appeal before the General Court against the judgment; notes that judgement is pending in case F-38/12;

                  7.

                  Urges the Agency, given the risks at stake, as far as its reputation is concerned, to inform the discharge authority in detail on the rules of procedure, legal framework and hearing modalities established for the launch and conduction of internal investigations and the protection of witnesses’ anonymity in the occurrence of such internal investigations;

                  8.

                  Notes that in 2011, the European Anti-Fraud Office (OLAF) opened an investigation; requests that the Agency inform the discharge authority on the results of both the OLAF investigation and the Ombudsman case;

                  9.

                  Acknowledges that every two years, the Agency launches an anonymous well-being survey among staff; notes in particular from the 2012 survey that concerns have been raised regarding the handling of in-house conflicts and the attention paid to the well-being of the staff; takes note that the Agency introduced an anti-harassment policy and a network of confidential counsellors in order to minimise situations of conflict in the workplace and to address them in a comprehensive manner; urges the Agency to act on the recommendations made by the Court of Auditors with regard to the problems detected and to take all the necessary steps to ensure that these problems do not reoccur under any circumstances;

         Transparency

                  10.

                  Notes that on 12 and 14 December 2012, the Agency presented the draft rules on whistle blowing to its Executive Board and to its Management Board; notes that the decision was taken to adopt those rules formally after consultation with the Commission services; notes that in the meantime, the Agency adopted the principles of the Commission guidelines; calls on the Agency to inform the discharge authority on the implementation of the rules;

                  11.

                  Observes that some of the curricula vitae (CV) and the declarations of interest of the Management Board members are available on the Agency’s website; notes that as far as the Executive Director and the management team are concerned, only CVs are available; calls on the Agency to make the missing information publicly available and to inform the discharge authority of the progress made on this matter as soon as possible;

         Internal audit

                  12.

                  Notes from the Agency that it introduced a procurement procedure mitigating possible conflicts of interest and the internal audit services (IAS) audited the procedure and made nine recommendations, all of which have been introduced; notes that the IAS considered some of the actions introduced by the Agency to be good practices, in particular, the introduction of an IT application ‘tender contract maker’, developed by the Agency to generate standard documentation for the procurement process; notes that the budget module of the IT application ‘matrix’ used for the Agency project management has been coupled with the accounting records retrieved from accrual-based accounting, allowing a daily online update of the budgetary implementation;

                  13.

                  Refers, in respect of the other observations accompanying its Decision on discharge, which are of a horizontal nature, to its Resolution of 17 April 2013 (6) on the performance, financial management and control of the agencies.

         (1)  OJ C 388, 15.12.2012, p. 196.

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

         (3)  OJ L 298, 26.10.2012, p. 1.

         (4)  OJ L 53, 22.2.2007, p. 1.

         (5)  OJ L 357, 31.12.2002, p. 72.

         (6)  Texts adopted, P7_TA(2013)0134 (see page 374 of this Official Journal).