8 April 1994

Doc. 7057

1403-31/3/94-1-E

REPORT

expressing an opinion on

the Council of Europe general accounts and budgets

for the years 1992, 1994 and 1995

(Rapporteur: Mr COX,

United Kingdom, Socialist Group)

Summary

      Every year the Assembly is required to present an opinion to the Committee of Ministers assessing political aspects of the Council of Europe budget as a whole. The Assembly makes general recommendations on the Council's functioning on the basis of:

      i.       the most recent accounts approved by the Board of Auditors (1992 financial year);

      ii.       the budget for the current year (1994);

      iii.       the budget forecasts for the following year (1995).

      The Assembly found the 1992 accounts to be correct and in order and stated that the Council's financial management had been conducted with a commendable sense of economy.

      It notes from the 1994 budget a slowing of budgetary growth which might jeopardise efforts to adapt the Council of Europe's structures and activities to the new tasks entrusted to it at the Vienna Summit (8-9 October 1993).

      As regards the 1995 budget, the Assembly takes the view that the Council of Europe must be enabled to rise to its new challenges and asks that member states take a consistent approach by making available the necessary resources in terms of funding and manpower so that it might fulfil its new role in guaranteeing democratic stability and security.

I. Draft opinion

1.       The 1995 Council of Europe budget is being prepared in the context of implementation of the decisions taken by the Summit of Heads of State and Government of Council of Europe Member States held in Vienna on 8 and 9 October 1993, which confirmed the Council of Europe's identity as a political body open to all European democracies.

2.       The summit also underlined the desire to foster the integration of new member states (Estonia, Lithuania and Slovenia acceded on 14 May 1993, the Slovak and Czech Republics on 30 June and Romania on 7 October) and undertake necessary institutional reform.

3.       The 1995 budget must therefore take this political objective into account, together with the inevitable administrative consequences it entails, both for the programme of activities and working methods and for human and financial resources.

4.       Consequently,

A.       With regard to the Council of Europe general accounts for 1992, the Assembly:

      a.       is satisfied with the opinion of the Board of Auditors which certified that the general accounts were accurate and in keeping with the rules, as were those of the Cultural Fund, the Sports Fund and the European Youth Foundation and, in particular, that financial management had been conducted with a commendable sense of economy;

      b.       supports the recommendations of the Board of Auditors and the Secretary General's intentions with regard to the implementation of the new information management strategy and new computerised accounting and staff management systems;

      c.       asks that all Council of Europe member states pay their contributions within the time limits set, failing which the penalties incurred may even be increased. If states enjoying special guest status fail to fulfil their financial obligations to the Council, they should be excluded from the activities in which they would normally participate and, in cases where they have applied for membership, the procedure should be suspended pending payment of the amounts due;

B.       With regard to the 1994 budget, the Assembly:

      a.       has mixed feelings over the budget increase (+ 5,40%), which has considerably diminished in relation to the three previous years (+ 10% on average), despite the Council of Europe having to face up to new tasks and new objectives;

      b.       expresses its concern over cutbacks in certain sectors such as Vote I (common expenditure) or Vote II (intergovernmental programme of activities) which are both vital to the proper running of the Council, particularly in the light of the foregoing statement;

      c.       welcomes the increase in the organisation's staff which will go part of the way to remedying the permanent structural deficit in staff. This deficit is resulting in a work overload for the Secretariat, which cannot go on performing its tasks effectively, particularly where implementation of the decisions adopted at the Vienna Summit is concerned.

C.       With regard to its own budget for 1994, the Assembly:

      a.       appreciates the fact that several of its requests have been taken into account, resulting in the sustained growth of its budget (+ 7,69%) and share of the general budget (8,28%);

      b.       welcomes the creation of a number of new posts, which will make it possible to consolidate the Office of the Clerk of the Assembly and better deploy its staff, particularly for its new tasks involving the countries of central and eastern Europe;

D.       With regard to the budget prospects for 1995, the Assembly:

      a.       wishes detailed consideration to be undertaken, to which it would be willing to contribute, as to future policy on the continued enlargement of the Council of Europe and the budgetary consequences for the Organisation;

      b.       believes it essential that, following the decisions taken at the Vienna Summit, all the necessary resources be made available to the Council of Europe so that it might perform its new task of guaranteeing democratic security;

      c.       hopes that the policy of consolidating the Secretariat (notably through permanent staff) will be pursued, with a view to running new activities as effectively as possible: reform of the European Convention on Human Rights supervision machinery; protection of national minorities; the campaign to combat racism, xenophobia, anti-Semitism and intolerance; setting up of a Congress of Local and Regional Authorities of Europe;

      d.       asks member states, in these circumstances, to pursue coherent policies, given that their contributions and the Council of Europe budget as a whole are of modest proportions in contrast to the considerably expanded role of the Council in integrating new democracies and guaranteeing democratic stability and security;

      e.       proposes that Council of Europe budgetary policy be geared henceforth to medium-term planning, which will obviate the need for annual policy rethinks and smooth the way for more effective implementation of the organisation's activities and, in particular, compliance with the decisions already taken by the Committee of Ministers on both institutional and operational matters;

      f.       welcomes the opportunity to send a representative to meetings of the Ad Hoc Working Group on the revision of the method of calculating the scale of member states' contributions and hopes that this revision, while maintaining the criteria of fairness, proportionality and solidarity, will be chiefly geared to improving the funding of the Council of Europe;

      g.       reiterates the wish that, in the statutory improvements to be made, due account be taken of its proposals, particularly those concerning its budgetary powers;

      h.       hopes to see the completion of projects aimed at providing the Council of Europe with modern, efficient and computerised management tools for both accounting and staff management and that computer resources will be properly developed to this end;

      i.       also hopes that a special effort will be made to improve the working conditions (notably in terms of offices and meeting rooms) of not only the Secretariat but also its own members and governmental experts;

      j.       stresses the importance of establishing a real Council of Europe communication policy, making European citizens aware of its objectives and achievements, particularly as far as central and east European countries are concerned, and welcomes, in this connection, the setting up of Council of Europe information centres in these countries, an initiative it hopes will be consolidated upon;

      k.       emphasises its keen support for the objective of a European civil service and wishes to help strengthen the legal protection of Council of Europe staff and extend their statutory rights.

II. Explanatory memorandum

by Mr COX

A. Introduction

      Every year the Assembly has to present an opinion to the Committee of Ministers concerning the political implications of the whole Council of Europe budget. The Assembly's opinion makes general recommendations on the Council's functioning, which are based on:

      i.       the most recent accounts approved by the Board of Auditors (1992 financial year);

      ii.       the budget for the current year (1994);

      iii.       budget forecasts for the following year (1995).

B. 1992 accounts

      At their 500th meeting (October 1993), the Ministers' Deputies approved the accounts under the general budget for the financial year 1992 (ordinary budget, subsidiary budget of the European Youth Centre, subsidiary budget for publications, extraordinary budget and pensions budget) and discharged the Secretary General from her financial responsibilities for that year (Resolution (93) 39).

      She was also given a discharge for the accounts of the following partial agreements:

      —Pa       rtial Agreement in the Social and Public Health Field (Resolution (93) 40);—

      —Eu       ropean Pharmacopoeia (Resolution (93) 41);—

      —Pa       rtial Agreement on the Social Development Fund (Resolution (93) 42);—

      —Pa       rtial Agreement on the Co-operation Group to Combat Drug Abuse and Illicit Trafficking in Drugs (Pompidou Group) (Resolution (93) 43);—

      —Pa       rtial Agreement on the Co-operation Group for the Prevention of, Protection against, and Organisation of Relief in Major Natural and Technological Disasters (Resolution (93) 44);—

      —Pa       rtial Agreement on the European Commission for Democracy through Law (Resolution (93) 45);—

      —Pa       rtial Agreement on the Youth Card (Resolution (93) 46).Th

      The Secretary General was also discharged from her financial responsibilities in respect of the accounts of the Partial Agreement establishing the European Centre for Global Interdependence and Solidarity (Resolution (93) 47), the accounts of the Partial Agreement on the European Support Fund for the Co-production and Distribution of Creative Cinematographic and Audio-visual Works ("Eurimages") (Resolution (93) 48), as well as those of the Cultural Fund (Resolution (93) 49) and of the Sports Fund (Resolution (93) 50).

a.       General observations

      As required by the Financial Regulations, the Secretary General submitted the Council of Europe general accounts for 1992 to the Board of Auditors, which noted that:

      —am       ounts in current accounts and time deposits were as recorded in statements and certificates issued by the Council's banks;—

      —in       come during the financial year had been in accordance with the regulations;—

      —ex       penditure had been in accordance with the purpose and within the limits of appropriations in the amended budget;—

      —sp       ecial funds had been managed in accordance with the rules governing them;—

      —al       l transactions were properly vouched for; —

      —fi       nancial management generally had been conducted with a commendable sense of economy.Th

      The audit of the general accounts includes the ordinary budget, the subsidiary budget of the European Youth Centre, the extraordinary budget, the pensions budget, the special accounts and the Partial Agreements, which include the European Centre for Global Interdependence and Solidarity and the European Support Fund for the Co-production and Distribution of Creative Cinematographic and Audio-visual Works ("Eurimages").

      On completion of the audit, the Board certified that the general accounts and those of the Cultural Fund, the Sports Fund and the European Youth Foundation were correct and in order and recommended that the Secretary General be discharged from her financial responsibilities.

b.       Report of the Board of Auditors (CVC) and the Secretary General's comments on the report

      Some of the matters dealt with in these two documents are summarised here:

      i.       Computer systems

      The CVC again stresses the need for a uniform and co-ordinated strategic plan and guidelines for the development of computer systems at the Council of Europe. It notes that the Committee of Experts responsible for monitoring computer strategy and the Computer Management Committee have met only once in three years. It draws attention

to the high level of investment approved for computer hardware (around 43 million French francs for 1 100 workstations) and doubts whether the Council of Europe is able to derive maximum benefit from it (lack of access to certain applications, inadequate co-ordination, etc.).

      The CVC recommends that stock should be taken of the current situation before the next phase of investment begins (preparation of a strategic plan and an implementation plan, increasing staff awareness, etc.).

      The Secretary General refers to the efforts made since 1990 to overcome the inadequacy of the Council of Europe's computer equipment. The high costs involved have been offset by staff savings of around 14 million francs, even though the actual investments made have been around 25% lower than the estimates, despite the new demands arising from the enlargement of the Council. This lack of resources, which was partially remedied in 1993, poses particular problems as regards the staffing of the Computer Division.

      The CVC's various recommendations concerning the development of computer systems (preparation and implementation of a strategic plan) were put into effect at the end of 1993. An Orientation Committee for Information Systems (OCIS) was set up on 5 October 1993. The Council of Europe's new information management strategy (1994-96) was agreed in November 1993.

      ii.       Accounting system

      The CVC recognises the improvement brought about by the new computerised accounting system introduced in 1990, despite some difficulties over its use. It hopes that the existing system will be updated in a well-though-out manner, with proper planning and monitoring.

      The Secretary General states that studies on how to improve the system have already started and that the CVC will be consulted systematically.

      iii.       Personnel management

      The CVC welcomes the introduction in 1994 of a new computerised personnel management system which will modernise and simplify administrative procedures, and whose costs should be offset by staff savings.

      The Secretary General believes that the investments required will be recouped from the third year of use onwards.

      iv.       Internal control

      The CVC draws attention to its previous comments on the duties of the Financial Controller, whose powers it believes should be extended. It also calls for increased internal controls and auditing. It welcomes the first initiatives taken by the Financial Controller since his responsibilities were widened.

      The Secretary General points out that financial controls have been improved by the creation of a temporary post of internal auditor. Given the usefulness of the post, it should be confirmed on an indefinite basis and a second post should also be created.

      v.       Delay in the payment of contributions

      The CVC again points out that some member states have not met the payment deadlines for their contributions, adding that the sums due but not paid at the end of 1992 (32 400 000 FF) far exceeded the amount in the Working Capital Fund (20 600 000 FF), causing the Council serious solvency problems. The Secretary General urges member states to comply with the payment deadlines laid down in the Financial Regulations.

      vi.       Partial Agreements

      Although the CVC finds the overall situation satisfactory, it notes some difficulties concerning the financial control of the accounts of certain Partial Agreements (Partial Agreement on the Prevention of, Protection against, and Organisation of Relief in Major Natural and Technological Disasters, European Centre for Global Interdependence and Solidarity, Partial Agreement on the European Support Fund for the Co-production and Distribution of Creative Cinematographic and Audio-visual Works ("Eurimages")). It would like the relevant financial regulations to be amended.

      The Secretary General has taken note of the CVC's suggestions, some of which have already been acted on.

C. 1994 Budget

      The 1994 ordinary budget, as adopted by the 502nd meeting of the Committee of Ministers on 10 December 1993 (Resolution (93) 57), comes to 784 000 000 FF, an increase of 40 133 000 FF over 1993, that is 5,40% in nominal terms. This increase is, however, much smaller than those in preceding years (+10,76% in 1993, +9,57% in 1992). It implies a slowdown in the growth of the Council, at a time when growth seemed essential in view of the geographical enlargement of the Organisation (six new member states in 1993) and its new responsibilities.

      The Committee of Ministers also approved additional expenditure estimated at the time the budget was adopted to total around 24 500 000 FF, financed by the balance of the general budget for the preceding years (including 13 000 000 FF for co-operation with central and east European countries and 4 000 000 FF for follow-up to the Vienna Summit).

      While recognising the financial difficulties affecting several member states because of the unfavourable economic situation, it has to be said that the budget adopted threatens to cause problems over the implementation of the activities programme (which, in fact, has been scaled down in 1994), in particular following the decisions arising from the Summit of Heads of State and Government of the Council of Europe Member States (Vienna, 8-9 October 1993).

      The budget adopted has led to spending cuts in several areas (especially common expenditure and intergovernmental activities). These are partly the result of decisions involving expenditure which cannot be reduced, such as that caused by the accession of new member states (six in 1993), the cost over a full year of the new posts created, the coming into service of the new Human Rights Building and the establishment and funding of a second youth centre in Budapest.

      The following comparative tables are appended to this report:

      —Ap       pendix I — Table 1Bu

      Budget figures for the last five financial years showing trends in appropriations, in francs;

      —Ap       pendix II — Table 2De

      Details of appropriations and increases in real terms compared with 1993, broken down by vote of the ordinary budget;

      —Ap       pendix III — Table 3Fi

      Field-by-field comparison of intergovernmental activity programmes for the last three years.

      —Ap       pendix IV — Table 4Pa

      Partial agreement budgets, compared with 1993.

      Despite the slowdown in the growth of the budget in 1994, it must be said that the trend is still positive and that the Council's total budgetary resources are still growing, albeit inadequately. The total appropriations at the Council of Europe's disposal in 1994 (ordinary budget, subsidiary budgets and partial agreement budgets) thus exceed 1,1 thousand million francs.

      As far as the breakdown of the ordinary budget for 1994 by votes is concerned, priority has been given to the organs of the European Convention on Human Rights, the Parliamentary Assembly and co-operation with the countries of central and eastern Europe. The following figures are of particular note, the percentages being expressed in nominal terms:

      —Vo       te I (common expenditure) Th

      This vote, which covers expenditure on staff, buildings, equipment and publications, etc. totals 446 021 000 FF (+4,99%).

      —Vo       te II (expenditure pertaining to the intergovernmental programme of activities)Th

      The appropriations total 78 320 000 FF (-2,65%).

      —Vo       te III (expenditure of the Parliamentary Assembly)Th

      The Assembly's appropriations total 64 940 000 FF (+7,69%). It also has appropriations totalling 3 500 000 FF for its co-operation programme (Vote IX), as against 3 010 000 FF in 1993 (+16,28%).

      —Vo       te IV (operational expenditure of the European Court and Commission of Human Rights)Th

      The appropriations total 110 071 000 FF (+9,08%), that is 44 720 000 FF (40,63%) for the Court and 65 351 000 FF (59,37%) for the Commission.

      —Vo       te V (expenditure of the Standing Conference of Local and Regional Authorities of Europe)Th

      The CLRAE's appropriations total 11 931 000 FF (+15,72%). The increase is due to the current reform of the CLRAE and the establishment in 1994 of the Congress of Local and Regional Authorities of Europe.

      —Vo       te VI (sundry institutional expenditure)Th

      The total appropriations of 10 217 000 FF (+2,74%) are broken down between the European Social Charter (2 895 000 FF, that is +1,65%) and the European Convention for the Prevention of Torture (7 322 000 FF, that is +5,86%).

      —Vo       te VII (Ad Hoc Committee of Experts on Combating Racism, Xenophobia, Anti-Semitism and Intolerance)Th

      This vote, with a new heading, totals 1 100 000 FF.

      —Vo       te VIII (investment expenditure)Th

      The appropriations approved total 20 000 000 FF (+17,65%), around 50% of which is for investment expenditure on buildings (the construction of the new Human Rights Building is funded from an extraordinary budget of 35 363 000 FF) and 40% for expenditure on computerisation and communications systems.

      —Vo       te IX (co-operation with the countries of central and eastern Europe)Th

      This vote totals 41 400 000 FF (50 783 000 FF in 1993: ordinary budget and additional expenditure), but the Committee of Ministers also authorised additional expenditure of 13 000 000 FF from the balance remaining from previous years. The overall total available thus represents an increase in appropriations of 7,12%.

      Subject to final approval by the Committee of Ministers of the budget of the European Centre for Global Interdependence and Solidarity, the budgets of all the Partial Agreements have been increased.

      Some have even been increased significantly, as can be seen below:

      —Pa       rtial Agreement on the European Commission for Democracy through Law: 7 661 000 FF (+35,93%).—

      —Pa       rtial Agreement on the Youth Card: 528 000 FF (+26,01%).—

      —Eu       ropean Pharmacopoeia (including extraordinary budget): 48 349 666 FF (+24,69%).—

      —Eu       ropean Support Fund for the Co-production and Distribution of Creative Cinematographic and Audio-Visual Works ("Eurimages") (operational expenditure): 9 204 000 FF (+21,33%).Th

      The programme expenditure (national contributions) for 1994 is not yet known (120 809 000 FF in 1993).

      —So       cial Development Fund: 9 706 000 FF (+19,33%).In

      In terms of percentage share of total appropriations, Vote I (Common expenditure) heads the list with 56,89% (57,20% in 1993) of the budget. Next come Vote IV (Court and Commission of Human Rights) with 14,04% (13,57% in 1993), Vote II (Intergovernmental programme of activities) with 9,99% (10,82% in 1993), and Vote III (Parliamentary Assembly) with 8,28% (8,11% in 1993 and 7,81% in 1992). This last figure does not take into account the 3 500 000 FF allocated to the Assembly under Vote IX (Co-operation with the countries of central and eastern Europe).

      There has thus been a very slight shift of resources away from Votes I and II towards Votes III and IV, which are regarded as priorities for 1994.

      With more specific reference to the Assembly, it can be seen that its appropriations have risen as a result of the budgetary priority it has been granted for 1994. Its budget (Vote III only) has thus increased by 7,69% (7,65% in 1993), as compared to an increase of only 5,40% in the ordinary budget as a whole. This is no doubt in recognition of the importance of the Assembly's role and responsibilities during the current phase of enlargement of the Council. Further confirmation of this can be found in the increase in appropriations to the Assembly under Vote IX for its co-operation programme (+16,28%).

      Examination of the breakdown of the appropriations under Vote III shows that practically all of the Assembly's requests have been met. Head I (staff) totals 52 272 000 FF (+10,62%), Head II (allocation to the political groups) 3 081 000 FF (+10,79%) and Head III (budgetary package covering supplies and operational expenditure) 9 587 000 FF (-6,63%). It should be noted here that, in view of the likely budgetary constraints for 1994, the Assembly itself chose to give precedence to those appropriations which enable it to strengthen and rationalise the structure of its Secretariat.

      As regards personnel, despite the budgetary constraints the Committee of Ministers has approved the creation of sixty-nine established posts — fifteen in categories A and L and fifty-four in categories B and C — under the general budget. This brings the total of established posts to 1 067. Twenty-three additional posts have been created under the partial agreement budgets. The staff of the Council of Europe will therefore total 1 188 in 1994 (1 096 in 1993).

      The breakdown by category is as follows: 362 in category A (330 in 1993), 71 in category L (67 in 1993), 571 in category B (531 in 1993) and 184 in category C (159 in 1993).

      By way of information, it has been estimated that twenty-three category C posts and seven category B posts will need to be created in 1994 solely to meet staffing requirements arising from the coming into service of the new Human Rights Building.

      As regards the Assembly's staffing requests, the Committee of Ministers has acceded to the proposals submitted by the Secretary General (in agreement with the President of the Assembly). These took account both of the Assembly's requests for 1994 (Opinion No. 172) and of those which the Committee of Ministers had been unable to accept for 1993 but had agreed to re-examine under the 1994 budget.

      The Assembly has thus obtained the following new posts for 1994: one A5 post (head of division), one A4 post (executive assistant to the Clerk), two A2/A3 posts (committee secretaries), one B5 post (administrative assistant with particular responsibility for promoting the pan-European programme of interparliamentary co-operation), two B4 posts (administrative assistants) and three B3 posts (assistants to heads of division or committee secretaries). However, the Committee of Ministers has decided that these new posts may not be filled until 1 July on average.

D. 1995 Budget

      The 1995 budget is being prepared in the context of the continuing enlargement of the Council of Europe to take in central and east European countries, which remains the Organisation's chief priority. 1993 saw the accession of Estonia, Lithuania and Slovenia (14 May), the Slovak and Czech Republics (30 June) and Romania (7 October), bringing the number of member states to thirty-two.

      In addition, at the time of writing, nine countries have been granted special guest status (Albania, Belarus, Bosnia-Herzegovina, Croatia, the Former Yugoslav Republic of Macedonia, Latvia, Moldova, Russia and Ukraine), of which eight have applied for membership of the Council of Europe (Bosnia-Herzegovina has not yet applied). The Principality of Andorra has also applied for membership. As opinions on the accession of several of these countries are being prepared by the Assembly, it is likely that the enlargement process will continue in 1994. There will be sustained financial pressure, therefore, on the organisation.

      This pressure, exacerbated by a continuing poor economic climate, is felt everywhere in the Council of Europe, particularly in the Parliamentary Assembly, and could well lead to serious malfunctions. As this situation reaches chronic proportions, with no real assessment having been made of the consequences of enlargement, the Assembly could help shed some light on the real consequences of present developments. The Political Affairs Committee has already been instructed to prepare a report on the enlargement of the Council of Europe and the Committee on the Budget and the Intergovernmental Work Programme is to produce a report on the budgetary consequences of the geographical extension of the Council of Europe. Both these reports would no doubt be useful in this connection.

      Another most important consideration is the holding of the Vienna Summit on 8 and 9 October 1993. The heads of state and government of Council of Europe member states declared that the Council of Europe was the pre-eminent European political institution capable of welcoming the democracies of Europe. They also affirmed their will to promote the integration of new member states and to undertake the necessary reforms of the Organisation. With these aims in mind, the heads of state and government decided on various measures and activities to be implemented by the Council from 1994 onwards (notably the reform of the European Convention on Human Rights supervision machinery, the drawing-up of confidence-building measures in the area of national minorities, a plan of action to combat racism, xenophobia, antisemitism and intolerance, reform of the CLRAE, etc.).

      Other decisions already taken by the Committee of Ministers (construction and commissioning of the new human rights building, setting up of a second European youth centre, etc.) have already had severe budgetary consequences in 1994, since they have mobilised financial resources tapped from other budget provisions. The consequences will be even more far-reaching in 1995 once the effects of these decisions have run a full year. It should also be pointed out that budget restrictions have led to priorities being defined, resulting in cutbacks in certain areas, notably common expenditure (Vote I) and the intergovernmental programme of activities (Vote II).

      While fully aware that member states have their own budget problems, the Assembly stresses that they should be consistent with the decisions taken by both the heads of state and government and the Committee of Ministers. It reiterates the concern already expressed in 1993 that the Council of Europe Secretariat has not yet attained the critical mass required to perform its tasks. Present resources, both financial and human are excessively restricted and jeopardise the raison d'être of the Council of Europe if not its very future.

      Following the confirmation of the role of the Council of Europe by the Vienna Summit, the Secretary General expressed the wish that funding of the Council be doubled in the coming years to enable it to fulfil its tasks effectively.

      The Assembly shares this opinion and, while acknowledging present economic difficulties, would like to see the political priority granted to the Council of Europe translated into budgetary terms. For several years, the organisation had been at a crossroads resembling the political situation which led to its foundation in 1949. The Vienna Summit confirmed that the direction to take was the merger of two until recently distinct entities: western Europe and central and eastern Europe. It is hardly necessary to remind ourselves of the tremendous need for change felt by both the new Council of Europe member states and those which have applied to join. As an Organisation recognised as guaranteeing democratic stability and security, the Council of Europe is duty bound to provide maximum assistance for this change and the establishment of democracy.

      If there is a real political desire to see the Council of Europe play a truly effective and credible role, substantial resources will be required. The Assembly therefore believes it necessary to pursue the expansion policy, which has marked recent years but began to lose momentum in 1994. It acknowledges in any case the economic difficulties experienced by many member states, which impinge on their levels of contribution to the Organisation's budget. Nevertheless, the Council of Europe budget is still a relatively modest one, which should allow a growth curve defined by its operational resources on the one hand and the political objectives and tasks entrusted to it on the other hand.

      In this respect, the Assembly wishes to continue to benefit from a degree of budgetary priority, not only because it is a statutory body but also because of its great involvement in co-operation with central and east European countries (special guest status and interparliamentary co-operation) and the procedures for admitting new member states. Notwithstanding this, it feels that the other sectors of the Council must in no way be neglected.

      The general services commonly enjoyed by all sectors of the Council (common expenditure: Vote I and investment expenditure: Vote VIII) are experiencing a crisis owing to insufficient resources; one noteworthy example is the staffing problem affecting various departments: the Directorate of Information (with regard to both the press and public relations department and the publishing and documentation service), the Directorate of Administration (Finance Division, Human Resources Division, Technical Resources Division, Computer and Telecommunications Division, Interpretation Division and Translation Divisions). All these deficiencies are delaying and undermining various projects seeking to modernise the Council of Europe: new communication policy, modernisation of document production and despatching system, new computerised accounting system, new computerised staff management system, adaptation of buildings and meeting rooms, implementation of the new information management strategy, maintenance of high-quality interpretation and translation.

      Most operational services are also stretched to their utmost limit. Their budgets, both for traditional activities and new tasks, require considerable bolstering. Indeed, significant budget increases are vital if the Secretariat is to provide useful back-up for the processes of political reform and legislative harmonisation under way in central and eastern Europe, not forgetting that the long-standing co-operation between longer established member states must also be maintained.

      Such an increase could, and should, be implemented on the basis of medium-term planning designed to double the Council's resources by the time the enlargement process has been completed.

      Similarly, further thought should be given to the programme of activities and working methods which need to be adapted as the Council changes. The Assembly supports the current initiative and is willing to contribute to it. In any case, it would certainly be useful to reconsider, cut back or even eliminate certain traditional activities altogether and define new priorities more in keeping with the needs and present complexion of the Council of Europe.

      The Assembly also supports the proposal to revise the method of calculating the scale of member states' contributions, for which the Ministers' Deputies have formed a working group and will invite the Assembly to send a representative. Again, this should be done with a view to adapting scales, in a spirit of fairness, to the real needs of the Council of Europe.

      Vote II of the budget (Intergovernmental programme of activities, one of the Council's raisons d'être despite being revised in terms of content, should be reinforced. Yet its appropriations have been reduced for 1994. Vote III (Parliamentary Assembly) should retain its priority status for the reasons mentioned above, as indeed should Vote IV (Court and Commission of Human Rights), which is the Council of Europe's flagship. Vote V (CLRAE) should be substantially increased if the new Congress of Local and Regional Authorities of Europe is to get off to a good start. Finally, we cannot neglect funds allocated to co-operation with central and east European countries (Vote IX), which, in the new configuration of the Council of Europe, has become a key activity.

      These remarks apply not only to appropriations but also to the staff serving the Council. Although staff levels are continuing to grow in 1994 — ultimately not fast enough to make up for lost ground — thought must be given to consolidating the Council's structure and expanding the Secretariat accordingly. The number of staff assigned to the various departments and directorates is clearly insufficient in view of the present workload. The work might be done but not always as well as it should be, and where work is carried out efficiently, it is often only thanks to the commitment of staff on whom greater demands are made; this may be acceptable in periods of difficulty but not on a permanent basis. While the Council of Europe has now been on the point of "overheating" for several years, owing to the impromptu enlargement which it has had to undertake, this situation is no longer acceptable, with the new roles and tasks conferred upon it by the Vienna Summit.

      The Assembly wishes therefore that considerations also cover the Council of Europe's real staff needs so that it might properly fulfil its tasks. Among the many sectors affected are human rights, with the imminent structural reform of the two present bodies (Court and Commission), the CLRAE, with the setting up of a new congress comprising two chambers and the Assembly itself, with the participation of numerous "special guests".

      The Assembly furthermore maintains a number of earlier requests such as a communication policy which builds awareness of the work achieved by the Council of Europe among ordinary citizens and not just certain audiences (authorities, media, etc.), the modernisation of its working tools (continued computerisation, refitting of offices and meeting rooms, etc.), improvements in work regulations (bargaining rights, legal protection, etc.).

E. Conclusions

      The Assembly hopes that the Vienna Summit (8-9 October 1993) has signalled the end of the stop-gap measures and improvisation that have dominated much of the Council of Europe's operations in recent years. It believes that it is now time to make a rapid assessment of the Organisation's present and future needs and provide the necessary resources.

      While acknowledging the efforts made by member states in recent years, the Assembly is concerned at the chronically low levels of resources made available to the Council of Europe and asks that these be reviewed as soon as possible, in line with their solemn political statements recognising the role of the Council of Europe.

      Moreover, the Assembly upholds and will continue to uphold the legitimate claims of the Organisation's staff who serve it with commitment and seek rights on a par with those enjoyed by the officials of member states and the European Union.

      Finally, in keeping with the proposals set out in its Recommendation 1212 (1993) on the adoption of a revised Statute of the Council of Europe, the Assembly reiterates its wish to be granted increased budgetary powers, in line with all other democratic parliamentary bodies, at least with regard to its own budget if not the general budget of the Organisation. It also suggests that budget forecasts on an annual basis be replaced by medium-term budget planning, within which more flexible annual budgets would be adopted.

APPENDIX I - TABLE 1

Heads

1990

initial appropriations

FF

1991

initial appropriations

FF

1992

initial appropriations

FF

1993

initial appropriations

FF

1994

initial appropriations

FF

GENERAL BUDGET

I.       Common expenditure (staff, supplies, publications,

    information, etc.)

II.       Intergovernmental activities (Work Programme)

III.       Parliamentary Assembly:

    a. Staff

    b. Political groups

    c. Overall appropriations (budgetary package)

    Total

IV.       Court and Commission of Human Rights and Tribunal in matters of state immunity

V.       Standing Conference of Local and Regional Authorities of Europe

VI.       Sundry institutional expenditure (Social Charter and European Convention for the prevention of torture and inhuman or degrading treatment of punishment)

VII.       European Youth Foundation

    Ad hoc Committee of government experts on the combat against racism, xenophobia, antisemitism and intolerance

VIII.       Investment expenditure (exceptional expenditure until 1987)

IX.       Contact and co-operation with Central and East Euroupean countries

299.557.000

59.204.000

( 33.635.000)

( 1.619.000)

( 5.334.000)

40.588.000

55.679.000

5.027.000

4.481.000

2.393.000

/

6.000.000

4.350.000

477.279.000

336.688.000

69.063.000

( 38.960.000)

( 2.167.000)

( 6.469.000)

47.596.000

66.590.000

5.872.000

7.286.000

2.490.000

/

20.580.000

16.329.000

572.494.000

372.449.000

84.653.000

( 42.226.000)

( 2.221.000)

( 8.000.000)

52.447.000

82.752.000

7.587.000

8.571.000

2.654.000

/

20.000.000

34.807.000

665.920.000

424.827.000

80.456.000

( 47.255.000)

( 2.781.000)

( 10.267.000)

60.303.000

100.913.000

9.180.000

9.765.000

/

/

17.000.000

41.423.000

743.867.000

446.021.000

78.320.000

( 52.272.000)

( 3.081.000)

( 9.587.000)

64.940.000

110.071.000

11.931.000

10.217.0001

/

1.100.0002

20.000.0003

41.400.000

784.000.000

APPENDIX II - TABLE 2

APPENDIX III - TABLE 3

APPENDIX IV - TABLE 4

PARTIAL AGREEMENTS

 

1993 BUDGET

1994 BUDGET

DIFFERENCE

IN NOMINAL TERMS

P A SOCIAL AND PUBLIC HEALTH FIELD

EUROPEAN PHARMACOPOEIA

SOCIAL DEVELOPMENT FUND

POMPIDOU GROUP

P A NATURAL DISASTER PROTECTION AND RELIEF

EURIMAGES

─ Operational expenditure

─ Programme expenditure (received contributions 1993)

P A EUROPEAN COMMISSION FOR DEMOCRACY THROUGH LAW

LISBON CENTRE

YOUTH CARD

8 400 000

39 732 2944

8 134 000

6 828 000

13 001 000

7 586 000

120 809 000

5 636 000

5 215 000

419 000

8 927 000

48 349 666

9 706 000

7 157 000

13 049 000

9 204 000

5

7 661 000

4 969 0966

528 000

6,27 %

24,69 %

19,33 %

4,82 %

0,37 %

21,33 %

35,93 %

- 4,72 %

26,01 %

      Reporting committee: Committee on the Budget and the Intergovernmental Work Programme.

      Budgetary implications for the Assembly: The report makes general recommendations on the 1995 budget but without specifying the desired rate of growth. The committee's proposals on the programme budget for the Assembly's 1995 operational expenditure are in a separate opinion.

      Reference to committee: standing mandate.

      Draft opinion adopted unanimously by the committee on 22 March 1994.

      Members of the committee: Sir Keith Speed (Chairman), MM. Cox (Vice-Chairman), Adamiak, Attard Montalto, Battistuzzi (Alternate: Ferrarini), Biefnot, Boucheron, Bugli, Daniel, Dimmer, Gjellerod, Gunnarsson, Mrs Hacklin, Mrs Hjelm-Wallen, MM. Jurgens, Kolar, Luptak, Maass, Martins, Mautner-Markhof, Mrs Moreno, Mr Motiu, Ms Moynihan-Cronin Ms Özver, MM. Pavlides, Pukl, Mrs Ringstad, MM. Schiesser (Alternate: Ruffy), Steiner, Ternak, Visibelli (Alternate: Guzzetti).

      N.B.       The names of members who took part in the meeting are printed in italics.

      Secretaries to the committee: MM. Palmieri and Sixto.

1 1 1. Expenditure on the Social Charter (2.895.000 FF) and the European Convention for the Prevention of Torture and Inhuman and Degrading Treatment or Punishment (7.322.000 FF).

2 2 2. The EYF appropriations having been tranferred to Votes I and II, Vote VII henceforth applies to the ad hoc Committee of government experts on the combat against racism, xenophobia, antisemitism and intolerance

3 3 3. Investment expenditure concerning buildings (10.500.000 FF); computerisation and communication systems (7.900.000 FF); repayment of the advance for computerisation of the telephone system (1.600.000 FF).

4 1 1. Including extraordinary budget.

5 2 2. Programme expenditure under the EURIMAGES budget in 1994 will depend on the EURIMAGES member States' contributions, which have not yet been announced.

6 3 3. Not yet finally approved.