European Railway Agency Administrative Board Position paper 26 th ERA Administrative Board meeting 26 June 2012 1 P a g e
Proposals by the European Railway Agency Administrative Board for an A. Context improved functioning and governance In 2010-2011 the European Commission, with the help of an independent company, conducted an ex-post evaluation of Regulation 881/2004 establishing the European Railway Agency (ERA) and of the functioning and delivery of the Agency itself 1. The assessment of ERA was generally quite positive; however, room for improvement was identified in certain areas, especially in relation to governance. A possible extension of role of the Agency was also outlined. It was decided by the Commission to address these issues in the forthcoming revision of ERA regulation within the planned broader legislative initiative. The European Commission has therefore decided to propose in its 2012 4 th Railway Package a revision of the institutional framework of the EU railway system, with a special consideration to the role of ERA. This process has been supported by an external impact assessment. In this framework, consultation took place with all relevant railway stakeholders. They were given the opportunity to express independently their opinion on the EU railway system, the way it operates today and the future role of the Agency. In addition, over the last few years an inter-institutional dialogue on the role of the EU agencies has been taking place. The three EU institutions the European Commission, the European Parliament and the Council - have agreed to reach a common understanding 2 in addressing concerns identified in the governance and functioning of the EU Agencies. These decentralized Agencies of the EU are now an established part of the way the European Union works. Agreement has already been achieved on a number of the issues that have been addressed whilst some issues are still being debated. The amendment of the regulation establishing the European Railway Agency could incorporate some of these proposals agreed at the EU inter-institutional level. On several occasions during its meetings, as well as during discussions following the recommendations arising from the evaluation of the Agency (which amongst other things, concerned the Administrative Board s functioning), members of the Administrative Board 1 Evaluation conducted for the European Commission by Steer Davies Gleave (SDG) http://ec.europa.eu/transport/evaluations/doc/2011_era-evaluation-881-2004.pdf 2 http://europa.eu/rapid/pressreleasesaction.do?reference=ip/12/604&format=html&aged=0&language=en&guilanguage=en 2 P a g e
expressed a wish to contribute to the discussion on the future role of the Agency, its tasks and its efficiency. It was agreed that the Administrative Board, as the supreme decision-making body of the Agency, should put forward its views on the possible revision of the Agency Regulation. The Administrative Board considered that the most appropriate way to communicate its position on the subject was by presenting this paper. The paper was drafted following the discussions during the recent (2011-2012) Board meetings and contributions were gathered and drafted by a representation of Board members who formed an ad hoc Reflection group on the future role of the Agency 3. The scope of the paper is concerned principally with improving the way in which the powers, functions and duties of the Board for oversight of the efficient functioning of the Agency can be carried out, (in particular its governance structure) and on enhancements through a revision of the legislation. It was agreed that, at a subsequent stage, it could be appropriate to review further modifications to this paper that might be required to accommodate any adjustments to the ERA s powers, functions and duties. The issues covered focus on how the processes of the Agency can be improved, in that they focus on the work programme development, introduction of multi-annual planning etc. as well as a vision on strategy and operational policies, as far as it is in line with the EU decision-making framework. The Agency identified several subjects to which it could bring additional value such as promoting a common European railway culture, the development of European specifications, making information available, reviewing the implementation of the EU framework, supervising and enforcing the framework and strategic planning. The discussions were consistent with three Commission operational policy objectives identified for the impact assessment study including the general objective of the policy initiative being "to contribute to the completion of the internal market for transport through improvements to the operation of the integrated EU railway system and its institutional framework". It will help to increase the usage of rail compared to other transport modes by developing further the Single European Rail Area by eliminating existing administrative and technical barriers. Specific objectives include: improving the efficiency of safety certification and vehicle authorisation processes; 3 Created by the Administrative Board during its 23th meeting on 24 June 2011 and consisting of the following members: France, Denmark, Germany, United Kingdom, the Netherlands, Sweden the European Commission, Railway undertakings and passengers 3 P a g e
ensuring non-discrimination in the granting and recognition of safety certificates and subsystem and vehicle authorisations across the EU; increasing the coherence of the national legal frameworks, notably those related to the safety and interoperability aspects of the internal market for railways. In reaching its conclusions on the proposals to pursue, the Reflection Group worked by consensus of all its participants. It evaluated options against the future objectives being proposed by the Commission for the Agency with a view to recommending proposals which would make a useful contribution to these objectives while taking account of the wider potential economic, social, environmental, administrative benefits. This position paper of the Administrative Board is addressed to the European Commission with the aim to take it into account in preparation of the legislative proposal for the 4 th Railway Package, in relation to the European Railway Agency. B. Situation analysis and needs The production by the Agency of its proposals for new measures implementing the railway interoperability and safety legislation (recommendations for Technical Specifications of Interoperability and Common Safety Methods) and the consequent legislative process must be followed by a period in which they are applied/implemented. This involves the engagement of all railway sector stakeholders as well as the public authorities. The upgrading / complementing / revising of the first set of measures will also be a major task. With the existing legislation, the Agency s contribution to improving the competitiveness of European railways should shift from producing EU technical and safety recommendations towards supporting their dissemination and full implementation at the EU level, including a strengthened control over national authorities. The Agency s strategic direction regarding dissemination should be reflected as an agreed mid (2016) and long term (2020) perspective of its activities (e.g. dissemination is a subtask attributed to many principal tasks in the 2012 work programme, but there is as yet, no integrated approach to this important task). From its earliest days Economic assessment has been a crucial element of the work of the ERA although, even now, there is scope for ensuring that it plays a fuller part in determining the strategic approach of the Agency. It is not yet fully integrated into the ERA s regulatory approach, although impact assessment is imposed on ERA for any recommendation addressed to 4 P a g e
the Commission. The evaluation of impacts prior to the definition of solutions must lead to the most appropriate measures and effective prioritisation of resource, thus delivering better regulation. The Agency is only partially involved in the worldwide dissemination and propagation of EU technology and standards, although it possesses the best knowledge on EU technical law. For an improved impact of other EU railway policies, and of railway research on the competitiveness of the railway sector, the Agency could be charged with the effective and efficient coordination of these areas as the European railway system authority. In the view of the Agency, it faces constraints on its ability to further improve its efficiency in the execution of its tasks due to the lack of flexibility of the EU financial rules that are imposed to all EU Agencies. These can complicate adjustments to budgetary and resource plans, particularly in relation to adapting staffing provision to actual needs. 5 P a g e
C. Proposals Strategy 1. Programming of activities and resources The Agency acknowledges the need to improve its Work Programme and budget planning and is now taking steps to introduce multi-annual programming and activity-based budgeting into its management processes. The Agency should report and explain delays to the Work Programme in its annual report, and set out recovery plans. The Agency should also establish a strategic highlevel multi-annual plan. This would facilitate the work of the Administrative Board in approving and adopting the Work Programme by providing multi-year vision of the Agency's activities. These multi-annual tasks should be linked to key performance indicators. Multi-annual programming has also been requested by the Court of Auditors and the Administrative Board has now agreed that this approach should be developed as an important step forward as a strategic perspective. 2. Representative Bodies/stakeholders The Representative Bodies 4 (RBs) and their role are provided for by the ERA regulation. Their participation in the Agency s work parties is guaranteed as well through their participation in the Administrative Board as members without voting rights. However, it would be suitable to involve appropriate stakeholders including the RBs, as a network (Network of Representative Bodies (NRB)), in an early stage of the discussion and reflection on the multi-annual work planning of the Agency. More specifically, stakeholders including RBs, should be empowered to provide, in due time, the Administrative Board with formal and non-binding opinions on the multi-annual work program of the Agency and other matters of strategic importance undertaken by the Administrative Board. 4 List of Representative Bodies from the Railway Sector referred to in Article 3 paragraph 2 of Regulation (EC) N 881/2004: Union of the European Railway Industries (UNIFE), Community of European Railways and Infrastructures Companies (CER), European Infrastructure Managers (EIM), International Association of Public Transport (UITP), International Union of Private Wagons (UIP), International Union of Combined Road-Rail Transport Companies (UIRR), European Rail Freight Association (ERFA), European Transport Federation (ETF); AutonomenLokomotivführer-GewerkschaftenEuropasAutonomen Lokomotivführer-Gewerkschaften Europas (ALE), European Passengers Train and Traction Operating Lessors' Association (EPTTOLA). 6 P a g e
The sector s stakeholders should be consulted on the development and definition of the multiannual plan. This consultation will be defined in a way to enable the Agency to enhance its contribution to the development of a genuine European railway culture and serve as an essential tool of dialogue, consultation and exchange between all the actors in the railway sector. The consultation of sector s stakeholders for the adoption of the annual work program will be further defined. 3. Economic Evaluation The following evaluations should be carried out prior to the adoption of the Agency's Work Programme by the Administrative Board: - All projects requested should be subject to an early cost-benefit analysis to make sure that the Agency s and stakeholders intervention is proportionate to the problems to be addressed and the possible benefits. This shall enable the limited resources of the Agency and its stakeholders to be prioritized on the most beneficial activities; - Work Programme items should be subject to an efficiency analysis, individually and in conjunction with each other, to make best use of budget and resources of the Agency. 4. Communication/ Dissemination In order to ensure sufficient level of dissemination of railway-related information and training within the EU, the ERA Regulation should make clearer provision for the Agency s engagement in communication and dissemination of the European framework of technical and safety legislation, standards and guidance. The Agency will present the Administration Board with communication and dissemination plans based on an integrated analysis of needs which will be updated as appropriate. 7 P a g e
5. International Relations Specific provision should be made for the Agency to cooperate with the railway authorities of third countries and with international organizations competent in matters covered by the Agency activities (e.g. non EU/non EEA (European Economic Area) entities or international organizations, OTIF, UNECE) in order to keep up with developments in the scientific and technical field and ensure progress. This would be beneficial to the EU as it entails the promotion of the European policies and standards including the opening of word markets to the EU actors. The Agency s work programme reflects the cooperation with third countries and/or international organizations. Provision should be made in the founding Regulation for the Agency to develop a strategy for relations with third countries or international organizations concerning matters for which the Agency is competent. 6. Research The Agency s involvement in research can help railway research become better focussed towards improving the competitive position of the sector by filling gaps in knowledge or understanding. Furthermore, the Agency also has an interest in focussing research that may form an input into the classical working domains of the Agency (e.g. TSIs, Safety, ERTMS, Cross-Acceptance). ERA should be empowered to play a strategic role in the railway research coordination at the EU level. This needs to be supported by a respective clause in the ERA regulation. The Agency should be making a contribution to the effectiveness of the EU initiatives in the field of rail research. 7. Interface with other EU policies ERA's main objective is to support the implementation of the interoperability, safety and drivers licences legislation. However, the Agency has skills, knowledge and competencies that can help facilitate other EU policies that have an impact on the development of railways. Therefore, the Agency should be able to effectively interact in a structured way with other services of the Commission (such as DG Enterprises in relation with the NRMM directive), especially with other agencies (such as the TEN-T Executive Agency). 8 P a g e
Governance 8. AB working groups/sub- Committee The mandate of the Sub-Committee (SC) has been defined by the Administrative Board (AB) and limits its involvement on opinions in matters that concern budget, finance and staff issues. In order to streamline the decision-making process of the Agency, the SC s terms of reference could be extended to involve the SC in the annual plan (work programme) and multi-annual plan work. AB might also extend the competencies of the SC to all other fields where the Board has competencies to act and powers to decide. Extension of the Sub-Committee s mandate could be combined with renaming it in a way that would better describe its function. Provision should be made for the AB to create working groups to operate as specialized subcommittees under its responsibility and supervision, without prejudice to the working parties foreseen in the ERA Regulation, or to amend the role of the existing ones. 9. Simplification of the implementation of the financial rules While respecting the budgetary principles of transparency, sound financial management, accountability and bearing in mind the on-going revision of the Financial Regulation, a continuing effort to simplify the financial rules and its implementation as well as the human resources rules should be envisaged at the level of the EU institutional framework. The results of the proceedings of the Inter-Institutional Group 5 on Agencies, when available, should be taken into account in this respect. 5 Draft Common Understanding between the European Parliament, the Council of the EU and the European Commission on decentralized agencies. It is based on the agreements reached by the Interinstitutional Working Group on regulatory agencies at technical and political level. The Group was created in March 2009 with the task to assess the exiting situation, specifically the coherence, effectiveness, accountability and transparency of EU Agencies and to find common ground on how to improve their work. 9 P a g e