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EUROPEAN UNION

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Title: EUROPEAN UNION


1
EUROPEAN UNION ATHENA
2007
Council decision 2007/384/CFSP of 14 May 2007
( OJ 13/06/2007 L152/14 )
2
Financing of EU Military Operations ATHENA
3
Treaty on the European Union
  • No distinction between civilian and military
    operations as regards tasks
  • Art 17(2)  humanitarian and rescue tasks,
    peacekeeping tasks and tasks of combat forces in
    crisis management, including peacemaking .
  • But military operations may not be financed from
    the budget of the European Communities
  • In principle, their operational expenditure are
    financed from contributions by Member States
    based on the GNI scale, except where the Council
    decides otherwise
  • Art 28(3)  Operational expenditure shall also
    be charged to the budget of the European
    Communities, except for such expenditure arising
    from operations having military or defence
    implications.
  • it shall be charged to the Member States in
    accordance with the gross national product scale,
    unless the Council acting unanimously decides
    otherwise. 

4
ATHENA
  •  A mechanism to administer the financing of the
    common costs of operations having military or
    defence implications 
  • Based on the experience of CONCORDIA and ARTEMIS
    (2003)
  • set up by Council Decision 2004/197/CFSP on 1
    March 2004
  • amended by 2 Council Decisions at end 2004 / in
    early 2005
  • amended again by a Council Decision adopted on 12
    Feb 2007
  • NB what is new in 2007 is shown in italics

5
ATHENA Overview
  • A permanent mechanism, ready ahead of any EU
    military operation, endowed with legal capacity
    (sign contracts!)
  • 1) Financing limited to certain common costs,
    based on GNI key
  • 2) Pre-financing of  Nation Borne Costs ,
    managed in common but billed to States based on
    their consumption
  • Annual budget includes provisional appropriations
    to finance the preparatory and early phases of
    operations
  • Management bodies
  • Special Committee
  • The Administrator
  • The Operation Commander(s)
  • The Accountant
  • College of auditors

6
Management bodies The Special Committee
  • Role a budget committee
  • Approves the budgets, the accounts, the financial
    rules, the final destination of equipment at the
    end of each operation
  • May extend common costs for a given operation
  • Composition
  • Member States contributing to the financing of
    each operation
  • The Commission attends without taking part in
    votes
  • Contributing Third States may attend without
    voting

7
Management bodies the Administrator
  • Permanent executive authority
  • Authorising officer where there is no Operation
    Commander (before he is officially appointed,
    after he has left office, and for the EU
    supporting action to AMIS)
  • Ensures that ATHENAs rules are complied with and
    may appoint an auditor at any time
  • May adopt any measures which he deems necessary
    to implement the expenditure financed through
    ATHENA
  • Contact point of national administrations and
    international organisations on financial questions

8
Management bodies the Operation Commander(s)
  • Authorising officer(s) for the operation, during
    term in office
  • In this capacity, implement expenditure financed
    or pre-financed in common and keep funds provided
    by ATHENA
  • Prepare draft budget(s) for the operation
  • Provide quaterly budget implementation reports
  • Provide ATHENAs accounting officer with the
    information necessary for the accounts by 31
    March of year n1

9
Management bodies ATHENAs accounting officer
  • Keeps the accounts at the central level
  • Prepares the annual accounts at the central level
  • ?OpCdr must provide information by 31 March each
    year
  • ?annual accounts require cut-off at end of each
    year
  • Lays down the accounting rules and methods and
    the chart of accounts
  • Responsible for payments and recovery of amounts
    (contributions, Nation Borne Costs) at the
    central level
  • Mid 2007 ATHENA has its own accounting software
  • help in accounting and reporting

10
ATHENAs auditors
  • College of auditors
  • 6 members appointed by Special Committee for 3
    years from national audit bodies
  • work for ATHENA only when necessary
  • An internal auditor must be appointed by the
    OpCdr
  • The administrator may appoint auditors at any
    time
  • Access to all premises and information

11
Sound Financial Management
  • ATHENA has its own Financial Rules
  • (based on the EC Directive on Public Procurement
  • and thus similar to national legislations)
  • Mid 2007 ATHENA will have its own accounting
    software
  • Reporting to the Special Committee by OpCdr(s)
    and Administrator
  • every month when spending on reference amount,
    before a budget is approved
  • every 3 months when Title for the operation
    introduced in budget
  • Accounts
  • information provided by each OpCdr by 31 March
    each year
  • consolidation by ATHENAs accountant by 30 April
  • Auditing
  • Each OpCdr must audit its operation according to
    own rules (NATO if Berlin , Framework Nation)
    and must appoint an internal auditor
  • ATHENAs College of Auditors
  • Administrator and Special Committee may trigger
    audits

12
Which operations?
  •  A mechanism to administer the financing of the
    common costs of operations having military or
    defence implications 
  • 2 sub-categories (new in 2007)
  •  classical  military operations, i.e. with EU
    HQs
  •  EU military supporting actions , in support of
    a Third State or a third organisation, without EU
    HQs
  • (cf. EU supporting action to AMIS, military
    component)

13
 Classical  military operations PREPARATORY
PHASE
  • Before the operation commander is officially
    appointed
  • Common costs
  • Costs of transport and accommodation necessary
    for exploratory missions and preparations
    (including fact-finding missions and
    reconnaissance) by military forces
  • MEDEVAC for those personnel
  • Authorizing officer Administrator,
  • (may delegate to future OHQ)
  • Funds available General Part of annual budget
  • (2007 480 000 euros)
  • Small stock of CIS equipment available (bought
    in 2006)

14
 Classical  military operations ACTIVE PHASE
(I)
  • Start when the OpCdr is appointed (usually by
    Joint Action)
  • Common costs, in all cases
  • Mostly Headquarters (OHQ, FHQ, Component
    Headquarters) deployment, barracks and lodging,
    CIS, admin, public info, representation and
    hospitality, Locally Hired Personnel
  • Forces as a whole infrastructure, Medevac
  • Reimbursements to/from NATO or other
    organisations (UN)
  • If the Council so decides Transport and lodging
    of forces, multinational HQs below FHQ,
    acquisition of information
  • Authorizing officer the OpCdr
  • OpCdr receives funds from ATHENA

15
 Classical  military operations other common
costs
  • The Special Committee may decide that any item
    other than transport and lodging of forces and
    multinational HQs below the FHQ is financed in
    common for one operation
  • New in 2007!
  • When requested by the Operation Commander and
    approved by the Special Committee, other items
    are financed in common
  • Essential additional equipment
  • Medical services (Roles 1, 2 and 3 facilities in
    theatre)
  • Acquisition of information (satellite images,
    theatre level intelligence, reconnaissance and
    surveillance, including AGSR, human intelligence)
  • Other critical theatre-level capabilities
    (demining, CBRN, fuel storage and supply
    facilities, storage and destruction of arms
    collected within the area of operations

16
 Classical  military operations strategic
airlift
  • New in 2007!
  • During the next two years
  • Financing in common of incremental costs
  • For EU Member States
  • When providing strategic airlift for short notice
    deployment of Battle Groups in accordance with
    the Battle Group concept.
  • The Council will determine the flat rates, below
    actual costs, applicable to the payment or
    reimbursement of these costs.
  •  The present arrangement will cease after two
    years, unless the Council agrees to extend it. 

17
Nation Borne Costs
  • Which costs? ?Decision by the Special Committee
    for each operation
  • (So far Messing Laundry, Lodging, Utilities,
    POL, Maps Medical care)
  • ALTHEA for FHQ, 3 million euros a year
  • CONGO for HQs and forces, 16 million euros
  • Advantages
  • Management in common of procurement
  • Prefinancing by ATHENA
  • Drawbacks
  • NBCs are billed to States based on their
    consumption, reimbursement due within 30 days
    from billing
  • ? Administrative burden for personnel in theatre
  • Financial burden for Troop Contributing Nations

18
 Classical  military operations ACTIVE PHASE
(II)
  • Funds and cash flow
  • When Joint Action is approved by the Council
  • Reference Amount in Joint Action
  • Call for contributions 30 of Reference Amount
    unless Council or Special Committee sets a higher
    percentage
    (70 for EUFOR RD CONGO)
  • Payable within 30 days from call
  • Later period (no date set)
  • Budget proposed by administrator with assistance
    of OpCdr
  • Approved by Special Committee acting unanimously
  • Call for contributions
  • equal to the budget minus first call based on
    reference amount
  • payable in 30 days or 2 installments if operation
    lasts more than 6 months

19
The Early Financing scheme
  • Contributions are called when Joint Action is
    adopted and are payable within 30 days ?Problem
    in funding the early phase of operations
  • Solution provisional appropriations in ATHENAs
    budget
  • (11 million euros provided by 18 Member States)
  • Rapid Response
  • these appropriations can be used
  • Member States other than the 18 pay their
    contributions within 5 days
  • Other operations
  • Each of the 18 may use its deposit to pay their
    contribution to the operation
  • 50 of the 11 million euros can be used with the
    assent of the 18 MS

20
 Classical  military operations Winding up
phase
  • Equipment purchased for an operation
  • final destination proposed by OpCdr, decided by
    Special Committee
  • CONGO storage by Germany (OHQ) and France (FHQ)
    during half-year where they make Battle Groups
    available
  • Equipment stored after the operation in CONGO
    will be available for the next operation(s)
  • Settling of invoices and drawing up of accounts
    must be completed even after repatriation of
    forces and termination of OpCdrs term in office
  • importance of rear parties

21
Military supporting actions
  • Only experience so far
  • EU military supporting action to AMIS, military
    component
  • New in 2007!
  • Common costs
  • to be decided on a case-by-case basis by the
    Council, by reference to common costs for
     classical  operations
  • The authority appointed to command the operation
    will play the role of  operation commander  for
    ATHENA
  • (notably that of authorising officer during term
    in office)
  • All other provisions apply as for  classical 
    military operations (including NBCs and Early
    Financing)

22
EXERCISES
  • Same financing as for operations,
  • except that more limited
  • Only headquarters, no forces
  • No capital acquisitions
  • No preparatory phase
  • CME 04
  • CMX 05
  • CME 06
  • CME 07 OpCentre / Sweden

23
ACTUAL OPERATIONS
  • ALTHEA
  • since 2 December 2004
  • common costs around 33 million euros spent per
    year
  • Nation Borne Costs  around 3.5 millions per
    year
  • budget for common costs 33.8 million euros for
    2007
  • EU Supporting Action to AMIS
  • 29 June 2005, extended until end June 2007 at
    present
  • around 1 million euros spent per year
  • EUSEC  Chain of payment  project
  • civilian operation financed from EC budget
  • start up phase by ATHENA (15.11. 2005-15.02.2006)
  • 0.9 million euros provided by 6 Member States,
    0.6 million spent
  • EUFOR RD CONGO
  • Common costs 19.2 mio euros in budget, 14 mio
    spent
  •  Nation Borne Costs  about 16 million euros
    spent

24
CHALLENGES AHEAD
  • Advanced parties / rear parties
  • Advanced parties should be deployed sufficiently
    early
  • Rear parties should remain in theatre until all
    financial issues settled
  • Manning should be sufficient
  • Should include  spending sections  (J1, J4, J6)
    together with J8 in same teams
  • Organisation of the chain of command
  • One single multinational team or HQ on each site,
    which includes  spending sections  (J1, J4, J6)
    together with J8
  • Division of labour should be in line with
    concepts approved by Military Committee and
    ATHENAs Financial Rules

25
CHALLENGES AHEAD
  • Common costs examine adaptation to operational
    needs
  • Tactical airlift, in a context where
    reinforcements could be called at short notice
    (cf. EUFOR RD CONGO)
  • CIMIC increase EUFORs acceptability by local
    population
  • Framework contracts
  • organise access for OpCentre to Member States
    contracts
  • Training
  • Train military personnel to ATHENA for future
    operations
  • J8s and  spending sections  (J1s, J4s, J6s)
  • General training ahead of future operations
  • Ad hoc training when a given operation starts
  • ATHENA needs cooperation and support
  • from Member States, on a voluntary basis

26
EUROPEAN UNION ATHENA
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