Brussels, 03/05/2005 (Agence Europe) - On Tuesday the European Commission adopted a proposal to simplify rules for the June 2002 regulation on financial regulation applicable to the general budget of the European Communities. The revised financial regulation proposed will enter into force in January 2007at the same time as many important EU-funded programmes, such as scientific research and structural funds. After having consulted the European Parliament, the Court of Auditors and Economic and Social Committee, the Council of Ministers of the EU will have to pass these new rules unanimously. Dalia Grybauskaité, European Commissioner for Budget and Financial Programming, said: “The Commission is making the rules more user-friendly and streamlining requirements that were excessively burdensome, while maintaining strict controls on the use of taxpayer's money”. The proposal includes:
Reduced red tape business: the Commission wants more use of lump sum payments for small grants-the ceiling for such payments is currently €5000, this will be raised to €10 000 to allow faster access to funds. Schools, universities, development agencies and small municipalities would benefit. Under the existing rules such bodies must provide very detailed information on all expenses, even on grants for very small amounts.
Another advantage proposed: the Commission is also in favour of reduced paperwork for Small and Medium-Sized Enterprises that hold contracts with the Commission. For contracts under €50 000, a lower burden of documentary proof of a company's reliability will apply. Presently, all companies must supply evidence to show they have no previous malpractice convictions, are not bankrupt, and are making correct tax and social security contributions. A simple declaration will now suffice for low-value contracts.
Simpler management systems: easier outsourcing of minor tasks to private bodies, allowing more cost-effective work. Such tasks might include organising conferences and travel for visiting scientific or public health experts. More activities can also be delegated to national authorities, bringing management and control to a more appropriate local level.
More flexible and transparent procedures: the proposal includes the possibility of reusing funds in research (according to very strict conditions); to provide advances of funds for crisis management and humanitarian aid and use of differentiated appropriations for funding veterinary policy measures.