Annexes to COM(2023)113 - Conclusion of the Agreement with New Zealand on the participation of New Zealand in Union programmes

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dossier COM(2023)113 - Conclusion of the Agreement with New Zealand on the participation of New Zealand in Union programmes.
document COM(2023)113 EN
date March  7, 2023
Agreement between the European Union, of the one part, and New Zealand, of the other part, on the participation of New Zealand in Union programmes

2. BUDGET LINES:

Revenue line (Chapter/Article/Item): 6 0 1 0 — Horizon Europe — Assigned revenue

Amount budgeted for the year concerned:

(only in case of assigned revenues):

The revenues will be assigned to the following expenditure line (Chapter/Article/Item):

Whole article 01.0101 (01.010101, 01.010102, 01.010103, 01.010111, 01.010112, 01.010113, 01.010171, 01.010172, 01.010173, 01.010174, 01.010176)

Whole article 01.0202 (01.020210, 01.020211, 01.020212, 01.020220, 01.020230, 01.020231, 01.020240, 01.020241, 01.020242, 01.020243, 01.020250, 01.020251, 01.020252, 01.020253, 01.020254, 01.020260, 01.020261, 01.020270)

Article 01.0205

Budget line 20.XX Administrative expenditure of the European Commission

3. FINANCIAL IMPACT

◻    Proposal has no financial implications

◻    Proposal has no financial impact on expenditure but has a financial impact on revenue

☑    Proposal has a financial impact on assigned revenue


The effect is as follows: 

(EUR million to one decimal place)

Revenue lineImpact on revenue 5 6XX months period starting dd/mm/yyyy (if applicable)Year N

6 0 1 018.97260 months starting 01/01/20232.142

Situation following action
Revenue line20232024202520262027
6 0 1 02.1422.9584.3054.3265.242


(Only in case of assigned revenues, under the condition that the budget line is already known):

Situation following action
Expenditure line 720232024202520262027
Articles 01.0101, 01.0202 and 01.02052.1102.9004.2004.2005.040
20.XX0.0320.0580.1050.1260.202


4. ANTI-FRAUD MEASURES

Article 325 of the Treaty on the functioning of the European Union (TFEU) requires the Commission to counter fraud and any illegal activities affecting the financial interests of the Union. Preventing and detecting fraud is therefore a general obligation for all Commission Services in the framework of their daily activities involving the use of resources. Fraud involving EU funds has a particularly negative impact on the reputation of the Commission and the implementation of EU policies


The current Commission Anti-Fraud Strategy (COM(2019)196) was adopted on 29 April 2019, to replace the 2011 Strategy. It is a policy document setting out the Commission’s priorities in the fight against fraud in view of the 2021-2027 multiannual financial framework. The 2019 CAFS’ main objectives are to 1) “further improve the understanding of fraud patterns, fraudsters’ profiles and systemic vulnerabilities relating to fraud affecting the EU budget” (data collection and analysis), and 2) “optimise coordination, cooperation and workflows for the fight against fraud, in particular among Commission services and executive agencies” (coordination, cooperation and processes). The strategy is accompanied by a 63-point action plan, the full implementation of which is, in principle, due for end 2021.

The guiding principles and target standards of the 2019 CAFS are:

• zero tolerance for fraud;

• fight against fraud as an integral part of internal control;

• cost-effectiveness of controls;

• professional integrity and competence of EU staff;

• transparency on how EU funds are used;

• fraud prevention, notably fraud-proofing of spending programmes;

• effective investigation capacity and timely exchange of information;

• swift correction (including recovery of defrauded funds and judicial/administrative sanctions);

• good cooperation between internal and external players, in particular between the EU and national authorities responsible, and among the departments of all EU institutions and bodies concerned;

• effective internal and external communication on the fight against fraud.

The Articles 9 – 12 of the Agreement contain detailed provisions concerning anti-fraud measures. These meausures are to be applicable horizontally to ensure protection of EU financial interests across EU Programmes or activities covered in the future Protocols potentially to be adopted by the Joint Committee under the Agreement to associate New Zealand to a number of EU programmes or activities. They are applicable also to the association of New Zealand to the Horizon Europe Programme covered by the Protocol on the association of New Zealand to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027) which was negotiated in parallel to the Agreement and forms and integral part thereof.

Notably the above-mentioned provisions (Articles 9 – 12 of the Agreement) provide for the necessary details, processes and allows for unhampered execution of tasks by the bodies safeguearding the financial interests of the EU (the Commission, including OLAF, the European Court of Auditors and the EPPO). Througout the implementation of the Programmes or activities covered by the Protocols to the Agreement, the principle remains the same: the financial interests of the EU are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irreguralities, including fraud, to the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, to the imposition of the administrative penalties.

In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the financial interests of the Union, grant the necessary rights and access to the Commission, OLAF, the Court of Auditors and ensure that any third parties involved in the implementation of Union funds grant equivalent rights. As expressly provided in Article 9(4) of the Agreement, reviews and audits may be carried out also after the suspension of application of a Protocol, cessation of application or termination of the Agreement.

The Agreement ensures the possibility for the European Anti-Fraud Office (OLAF) to carry out administrative investigations, including on-the-spot checks and inspections on the territory of New Zealand, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union.

As regards the reviews and audits, as wel as fight against irregularities, fraud and other criminal offences affecting the financial interests of the Union (Cooperation with OLAF), agents of the institutions and bodies of the Union and the other persons mandated by the European Commission shall act in a manner consistent with New Zealand law.

The Agreement obliges the authorities of New Zealand to cooperate with the European Public Prosecutor’s Office to allow it to fulfil its duty to investigate, prosecute and bring to justice the perpetrators of, and accomplices to, criminal offences affecting the financial interests of the European Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law.

Furthermore the Agreement provides for effective mechanism to ensure swift recovery of financial amounts due from the New Zealand beneficiaires of the relevant Union programmes (i.e. those to which New Zealand is associated) pursuant to adoption of Commission decisions or judgments and orders of Court of Justice in relation to claims stemming from the Programme.

5. OTHER REMARKS

The method for calculation of New Zealand financial contribution across EU programmes is defined in Article 6, 7 and 8 of the Agreement. In relation to the financial contribution of New Zealand to the Horizon Europe Programme, further technical details for application of the automatic correction mechanism are laid down in Article 5 of the Protocol on the association of New Zealand to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027), and Annex I thereto. The financial contribution model applicable under the Horizon Europe Programme is specific amongst all other EU Programmes, providing for application of an automatic correction mechanism (in line with Article 16 of the Horizon Europe Regulation).

(1) Council Decision (EU) 2022/1527 of 9 September 2022 authorising the opening of negotiations with New Zealand for an Agreement on the general principles for the participation of New Zealand in Union programmes and on the association of New Zealand to Horizon Europe – the Framework Programme for Research and Innovation (2021-2027) (OJ L 237, 14.9.2022, p.18).
(2) […].
(3) […].
(4) Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing Horizon Europe – the Framework Programme for Research and Innovation, laying down its rules for participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 (OJ L 170, 12.5.2021, p.1). 
(5) The amounts per year need to be an estimation based on the formula or method defined under section 5. For the starting year, the yearly amount is normally paid without a reduction or pro rata.
(6) In the case of traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.
(7) To be used only if necessary.