Explanatory Memorandum to COM(2016)531 - European Foundation for the improvement of living and working conditions (Eurofound)

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1. Context of the Proposal

• Reasons for and objectives of the proposal

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

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

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

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

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

• Consistency with the existing policy provisions in the policy area

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

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

• Consistency with other Union policies

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

2. Legal Basis, Subsidiarity and Proportionality

• Legal basis

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

• Subsidiarity (for non-exclusive competence)

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

• Proportionality

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

• Choice of the instrument

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

3. Results of Ex-post Evaluations, Stakeholder Consultations and Impact Assessments

• Ex-post evaluations/fitness checks of existing legislation

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

Stakeholder consultations

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

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

• Collection and use of expertise

Not applicable.

• Impact assessment

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

• Regulatory fitness and simplification

Not applicable. The proposal is not linked to REFIT.

• Fundamental rights

Not applicable.

4. Budgetary Implications

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

5. Other Elements

• Implementation plans and monitoring, evaluation and reporting arrangements

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

• Explanatory documents (for directives)

Not applicable.

1.

DETAILED EXPLANATION


OF THE SPECIFIC PROVISIONS OF THE PROPOSAL

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

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

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


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