Council Decision 2004/197/CFSP of 23 February 2004 establishing a mechanism to administer the financing of the common costs of European Union operations having military or defence implications

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European Union, and in particular Article 13(3) and Article 28(3) thereof,

Whereas:

The European Council, meeting in Helsinki on 10 and 11 December 1999, agreed in particular that, cooperating voluntarily in EU-led operations, Member States must be able by 2003 to deploy within 60 days, and sustain for at least one year, military forces of up to 50 000 to 60 000 persons, capable of the full range of Petersberg tasks.
The European Council, meeting in Thessaloniki on 19 and 20 June 2003, welcomed the conclusions of the Council meeting on 19 May 2003, which in particular confirmed the need for a European Union military rapid-reaction capability.
On 22 September 2003, the Council decided that the European Union should acquire the flexible capacity for managing the financing of common costs of military operations of any scale, complexity or urgency, in particular by setting up, by 1 March 2004, a permanent financing mechanism to assume charge of the financing of common costs of any future Union military operation.
On 17 June 2002, the Council approved Document 10155/02 on the financing of EU-led crisis-management operations having military or defence implications.
The Treaty on European Union provides in its Article 28(3) that Member States whose representatives in the Council have made a formal declaration pursuant to its Article 23(1), second subparagraph, shall not be obliged to contribute to the financing of the operation having military or defence implications concerned.
In conformity with Article 6 of the Protocol on the position of Denmark annexed to the Treaty on European Union and the Treaty establishing the European Community, Denmark does not participate in the elaboration and implementation of decisions and actions of the European Union which have defence implications, and Denmark does not participate in the financing of the mechanism,

HAS DECIDED AS FOLLOWS:

Article 1 Definitions

For the purpose of this Decision:

‘participating Member States’ shall mean the Member States of the European Union, except Denmark;
‘contributing States’ shall mean the Member States contributing to the financing of the military operation in question in accordance with Article 28(3) of the Treaty on European Union and the third States contributing to the financing of the common costs of this operation pursuant to agreements between themselves and the European Union;
‘operations’ shall mean the EU operations having military or defence implications;
‘military supporting actions’ shall mean the EU operations, or parts thereof, decided by the Council in support of a third State or a third organisation, which have military or defence implications, but which are not under the authority of EU Headquarters.

CHAPTER 1 MECHANISM

Article 2 Establishment of the mechanism

A mechanism to administer the financing of the common costs of operations is hereby established.

The mechanism shall be called ATHENA.

ATHENA shall act on behalf of the participating Member States or, regarding the specific operations, the contributing States as defined in Article 1.

Article 3 Legal capacity

With a view to the administrative management of the financing of European Union operations with military or defence implications, ATHENA shall have the necessary legal capacity, in particular, to hold a bank account, acquire, hold or dispose of property, enter into contracts and administrative arrangements and be a party to legal proceedings. ATHENA shall be non-profit-making.

Article 4 Coordination with third parties

CHAPTER 2 ORGANISATIONAL STRUCTURE

Article 5 Management bodies and staff

Article 6 The Special Committee

Article 7 The administrator

Article 8 The operation commander

Article 9 The accounting officer

Article 10 General provisions applicable to the administrator, the accounting officer and ATHENA's staff

CHAPTER 3 ADMINISTRATIVE ARRANGEMENTS WITH MEMBER STATES, EU INSTITUTIONS, THIRD STATES AND INTERNATIONAL ORGANISATIONS

Article 10a Administrative arrangements with Member States or EU institutions

Article 10b Administrative arrangements with a third State or an international organisation

Article 11 Standing and ad hoc administrative arrangements on modalities for the payment of third States' contributions

CHAPTER 4 BANK ACCOUNTS

Article 12 Opening and purpose

Article 13 Management of funds

CHAPTER 5 COMMON COSTS

Article 14 Definition of common costs and periods for eligibility

Article 15 Exercises

Article 16 Reference amount

CHAPTER 6 BUDGET

Article 17 Budgetary principles

Article 18 Establishment and adoption of the annual budget

Article 19 Amending budgets

Article 20 Transfers

Article 21 Carryover of appropriations

Article 22 Anticipated implementation

CHAPTER 7 CONTRIBUTIONS AND REIMBURSEMENTS

Article 23 Determination of contributions

Article 24 Schedule for payment of contributions

Article 25 Early financing

Article 26 Reimbursement of prefinancing

Article 27 Management by ATHENA of expenditure not included in common costs

Article 28 Interest on late payment

CHAPTER 8 IMPLEMENTATION OF EXPENDITURE

Article 29 Principles

Article 30 Common costs incurred in preparation for, or further to, operations

Article 31 Operational common costs

CHAPTER 9 FINAL DESTINATION OF EQUIPMENT AND INFRASTRUCTURE FINANCED IN COMMON

Article 32

CHAPTER 10 ACCOUNTING AND INVENTORY

Article 33 Principles

Article 34 Accounting for operational common costs

Article 35 Consolidated accounts

CHAPTER 11 AUDIT AND PRESENTATION OF ACCOUNTS

Article 36 Regular reports to the Special Committee

Article 37 Auditing the accounts

Article 38 Annual presentation of accounts

Article 39 Presentation of the accounts of an operation

CHAPTER 12 LEGAL LIABILITY

Article 40

Article 42 Review

Article 43 Final provisions

ANNEX ICommon costs borne by ATHENA whenever they are incurred

ANNEX IIOperational common costs relative to the preparatory phase of an operation borne by ATHENA

ANNEX III

ANNEX IVOperational common costs relative to the winding-up of an operation, borne by ATHENA