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«Brussels, 27.3.2013 COM(2013) 173 final 2013/0091 (COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the European Union ...»

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Whereas the phenomenon of cybercrime is growing and is increasingly complex, prior to the establishment of the EC3, the EU has not had an adequate capacity to tackle cybercrime due to the fact that cybercrime is extremely complex, evolves very rapidly and requires a high-level technical expertise to understand its characteristics and modus operandi, but also due to insufficient flow of information. High-skilled expertise gained at national and the EU level needs to be exchanged among all Member States so that the EU can improve its response to cybercrime, a phenomenon which is inherently of a cross-border nature and therefore requiring cooperation.

1.5.2. Added value of EU involvement Law enforcement cooperation within the EU cannot exist without an effective exchange of information and intelligence on crime between national law enforcement authorities and other relevant entities within and outside the EU. The access to, sharing and analysis of relevant and up-to-date criminal information is critical for the effective fight against crime. Europol is ideally placed to support the cooperation in this area and guarantee coordination at the EU level.

Effective prevention and the fight against cross-border crime cannot be successfully conducted by national police forces alone. It requires a coordinated and collaborative approach together with public and private stakeholders across the EU. Europol is the only EU agency supporting EN EN law enforcement agencies in the Member States in this endeavour. It provides them with a unique set of operational services to fight serious cross-border crime (i.a.: criminal analyses, forensic and operational support to cross-border investigations). However, the current legislative set-up prevents Europol from being fully effective and equipping Member States with the necessary, complete and up-to-date tools. Such legislative set-up can be amended only through a legislative reform at the EU level. It cannot be carried out at a national, regional or local level or addressed by Europol itself through internal action.

In addition, the Treaty of Lisbon calls for establishing a mechanism of the parliamentary scrutiny over Europol’s activities and the Joint Statement on Regulatory Agencies requires aligning Europol’s governance with the one of other EU agencies. This requires an EU legislative intervention.

The added value of EU involvement in law enforcement training is to ensure a coordinated approach developing and implementing such training. Much is already done in this field, whether nationally by Member States or at EU-level by CEPOL. However, as explained in the accompanying Communication on a European Law Enforcement Training Scheme, more needs to be done e.g. to ensure that training responds to needs relating to crime topics prioritised at EU level and to ensure a coherent approach to deliver training at EU level according to the highest quality standards.

The EC3 is established in order to overcome the many obstacles for the effective investigation of cybercrime and prosecution of offenders at the EU level. It is a key step taken in the EU’s overall strategy to improve cyber-security and to render cyberspace an area of justice where human rights and fundamental freedoms are guaranteed through the cooperative efforts of all stakeholders.

1.5.3. Lessons learned from similar experiences in the past The external evaluation of the Europol Council Decision has provided food for thought on improving the effectiveness of Europol. It has confirmed that Europol is a well-functioning agency which is operationally relevant and adds value to the security of the European citizens.

Nevertheless, the evaluation identified a number of areas where improvements are needed.

The consultations with the external stakeholders on the reform of Europol and a number of annual and specific reports by Europol contributed to a clear understanding of what shall be changed in Europol. The recurring issues were: insufficient provision of information by Member States, legal restrictions on direct cooperation with the private sector and a rigid legal regime on the cooperation with the third countries (which, nota bene, will need to be changed as a result of the entry into force of the Treaty of Lisbon).

In a wider context, the access to and the sharing of relevant and up-to-date criminal information among law enforcement agencies has proven to be critical for successfully tackling cross-border crime. This has been confirmed by the implementation of a number of the EU measures like, e.g. the “Prüm Framework Decision”, and the “Swedish Initiative” Framework Decision.

As regards training, the accompanying Communication on a European Law Enforcement Training Scheme draws on a mapping exercise undertaken by CEPOL in 2012 as well as extensive consultations with experts from Member States and from JHA agencies. The results indicated a need for a more coordinated approach, including a strong role for an EU agency as driving force and coordinator for implementing the Scheme, in close cooperation with other agencies and national training academies. CEPOL has been the subject of a five-year EN EN evaluation completed in 2011 and an external study commissioned by the Commission to support preparation of an impact assessment. The results indicated needs for increasing training on EU dimensions of policing, for better coordination between CEPOL, Member States and other agencies, and for improvements in CEPOL’s current governance and structure.

Moreover, the technical sophistication required to tackle cybercrime comprehensively means that traditional ways of investigating this kind of crime are not sufficient. Without a high-level of IT training of the law enforcement services to understand the intricacies of the technology involved, the new landscape of digital forensics and the ability to keep up with rapidly changing technology and modus operandi of cybercriminals, the EU’s capacity to tackle cybercrime adequately will continue to lag behind. Fast-changing technology has to be matched with fast-developing technological tools to employ in the fight against cybercrime as well as with personnel capable of adapting and building upon previous knowledge and expertise.

1.5.4. Compatibility and possible synergy with other appropriate instruments The regulation on Europol, making it the criminal intelligence hub of Europe, will contribute to achieving an Open and Secure EU Serving and Protecting Citizens, as set forth by the Stockholm Programme. Bringing together operational and training functions in a single agency will create a mutually-reinforcing dynamic that will enhance the effectiveness of operational activity and the relevance and focus of EU training.

In addition, an effective Europol will be in a better position to assist in reaching the goals of the Commission’s Communication on The Internal Security Strategy In Action and to reinforce in general police cooperation in the EU.

Governance of Europol as proposed contributes to the overall coherence of the governance model of the EU agencies envisaged in the Joint Statement on the EU Regulatory Agencies.

The establishment of the parliamentary scrutiny of Europol’s activities and new means of cooperation with third countries align Europol with the requirements of the Treaty of Lisbon (which make the Commission, rather than Europol, competent to negotiate international information sharing agreements).

The proposal seeks also to define clearly the limits of the competence of Europol, to avoid duplications with the other JHA agencies and to streamline their cooperation with Europol. To reinforce this process, the solutions proposed in the regulation (e.g. on requests to member States to initiate criminal investigations, keeping Eurojust informed) would need to be mirrored in the legal bases of other agencies (e.g. of Eurojust) over time.

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Comments The figures on financial and human resources combine the foreseen total amount for Europol as it is planned for the period until 2020 with the additional financial needs which are necessary to implement the proposed wider mandate for Europol, including training, as described in the present form.

Details of management modes and references to the Financial Regulation may be found on the BudgWeb site:

http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html As referred to in Article 185 of the Financial Regulation.

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Monitoring and evaluating the implementation of the activities of the Agency will be important to ensure the effectiveness of Europol. In accordance with the Joint Statement on the EU regulatory agencies, Europol will accompany its activities included in its working programme by key performance indicators. The activities of Europol will be then measured against these indicators in the Annual Activity Report.

In addition to the horizontal governance rules applicable to agencies, Europol will in particular elaborate an annual report and there will be provision for a periodic overall evaluation to be commissioned by the Commission every 5 years.

To regularly monitor the provision of information by the Member States, Europol will report annually to the European Parliament and the Council on the performance of each individual Member State. Such reports will contain specific quantitative and qualitative indicators and demonstrate trends.

The proposal lays down also the rules on the scrutiny of Europol’s activities by the European Parliament and national parliaments, i.e. ultimately on the implementation of Europol’s work programme and the execution of the budget.

The Management Board of Europol will be responsible for supervision of the administrative operational and budgetary efficient management of the Agency.

2.2. Management and control system 2.2.1. Risk(s) identified Activities of criminals are currently more complex, diverse and international than ever before.

Large scale criminal and terrorist networks pose a significant threat to the internal security of the EU and its citizens. Criminal activities have become more and more multi-commodity, poly-criminal and cross-border of nature. The national law enforcement forces cannot longer work in isolation but need to cooperate with each other and with Europol, designed to be the criminal intelligence hub of the EU. Reinforcement of Europol’s staff is necessary to comply with the new tasks and requirements laid down in the new regulation. Redeployment opportunities within the existing staff have been fully exploited. Lack of provision of the requested new posts will result in permanent infringement of the applicable Union law and a compromised level of internal security in the EU.

2.2.2. Control method(s) envisaged Europol will be subject to the following controls: budgetary control, internal audit, annual reports by the European Court of Auditors, the annual discharge for the execution of the EU budget and possible investigations conducted by OLAF to ensure, in particular, that the resources allocated to agencies are put to proper use. The activities of Europol will also be subject to the supervision of the Ombudsman in accordance with Article 228 of the Treaty.

These administrative controls provide a number of procedural safeguards to ensure that account is taken of the interests of the stakeholders.

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In order to combat fraud, corruption and other unlawful activities, the provisions of Regulation (EC) No 1073/1999 shall apply without restriction to the Agency, as stipulated in Article 21 of the Regulation.

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Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations.

EFTA: European Free Trade Association.

Candidate countries and, where applicable, potential candidate countries from the Western Balkans.

Existing budget lines 18.050201, 18.050202, 18.050501 and 18.050502 related to Europol and CEPOL respectively will be replaced by a single budget line.

–  –  –

Year N is the year in which implementation of the proposal/initiative starts.

The final number of posts and the overall budget are subject to the outcome of both an internal Commission review of the resource needs of decentralised agencies for the period 2014-2020 and the MFF negotiations with especial regard to an assessment of ‘real needs’ in the context of competing demands for very limited budget resources and in view of respecting the 5% staff cut in Agencies.

These figures take account of savings resulting from the merger of CEPOL into Europol, amounting to €17.2m (€10.1m in staff costs and €7.1m in building and other administrative costs) over the period 2015-2020.

–  –  –

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.).

As described in point 1.4.2. ‘Specific objective(s)…’

–  –  –

CA= Contract Agent; LA = Local Agent; SNE= Seconded National Expert; INT= agency staff (‘Intérimaire’); SNE= Seconded National Expert.

Sub-ceiling for external staff covered by operational appropriations (former “BA” lines).

Mainly for the Structural Funds, the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF).

–  –  –

CA= Contract Agent; LA = Local Agent; SNE= Seconded National Expert; INT= agency staff (‘Intérimaire’); SNE= Seconded National Expert.

Sub-ceiling for external staff covered by operational appropriations (former “BA” lines).

Mainly for the Structural Funds, the European Agricultural Fund for Rural Development (EAFRD) and the European Fisheries Fund (EFF).

–  –  –

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 25% for collection costs.

–  –  –

1. DATA FUSION Definition Data Fusion is a new capability within Europol required by the implementation of the EC3. It is recognised by the Commission’s and RAND’s analysis as fundamental to the success of the EC3.

In its Communication to the Council and European Parliament, the Commission stated:

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