AGREEMENT
BETWEEN THE EUROPEAN UNION AND THE REPUBLIC OF SERBIA ON THE PARTICIPATION OF THE REPUBLIC OF SERBIA IN THE EUROPEAN UNION PROGRAMME FOR EMPLOYMENT AND SOCIAL INNOVATION ("EaSI")

("Off. Herald of RS - Treaties", No. 18/2015)

The European commission, hereinafter referred to as "the Commission", on behalf of the European Union

on the one part, and

The Government of the Republic of Serbia, hereinafter referred to as the Republic of Serbia,

on the other part,

Whereas:

(1) Article 132 of the Stabilisation and Association Agreement between the European Communities and their Member States, of the one part, and Serbia,1 of the other part, stipulates that the Framework Agreement between the European Community and Serbia and Montenegro on the general principles for the participation of the Republic of Serbia in Community programmes2 signed on 22 November 2004 establishes the general principles for the participation of Serbia in Union programmes leaving the Commission and the competent authorities of the Republic of Serbia to determine the specific terms and conditions, including the financial contribution, with regard to such participation in each particular programme.

(2) the European Union Programme for Employment and Social Innovation ("EaSI") was established by Regulation (EU) No 1296/2013 of the European Parliament and of the Council of 11 December 20133.

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1 OJ L 278, 18.10.2013, p. 14
2 OJ L 192, 22.7.2005, p.28
3 OJ L 347, 20.12.2013, p. 238

HAVE AGREED AS FOLLOWS:

Article 1

Programme

The Republic of Serbia shall participate in the European Union Programme for Employment and Social Innovation ("EaSI") (hereinafter called "the Programme"), in accordance with the conditions laid down in the Framework Agreement between the European Community and the Republic of Serbia on the general principles for the participation of the Republic of Serbia in EU programmes.

Article 2

Terms and conditions with respect to participation in the Programme

1. The Republic of Serbia shall participate in the Programme in conformity with the objectives, criteria, procedures and deadlines as defined in Regulation (EU) No 1296/2013 of the European Parliament and of the Council, and according to the Articles 16 and 27 of the Regulation.

2. Notwithstanding paragraph 1, the Republic of Serbia shall not participate in activities of the Programme if there are limitations due to legal or regulatory constraints, or due to their subject matter, as shall be approved by the Committee under Article 36 of the Regulation (EU) No 1296/2013.

3. The terms and conditions applicable to the submission, assessment and selection of applications by eligible institutions, organisations and individuals of the Republic of Serbia shall be the same as those applicable to eligible institutions, organisations and individuals of the Member States of the European Union.

4. To participate in the Programme, the Republic of Serbia shall pay every year a financial contribution to the General Budget of the European Union in accordance with Article 3 below. The financial contribution of the Republic of Serbia in respect of its participation and implementation of the Programme shall be added to the amount earmarked each year in the General Budget of the European Union for commitment appropriations to meet the financial obligations arising out of different forms of measures necessary for the execution, management and operation of the Programme.

5. One of the official languages of the EU shall be used for the procedures related to requests, contracts and reports, as well as for other administrative aspects of the Programme.

Article 3

Financial contribution

The rules governing the financial contribution of the Republic of Serbia are set out in Annex I.

Article 4

Reporting and evaluation

Without prejudice to the responsibilities of the Commission and the European Court of Auditors in relation to the monitoring and evaluation of the Programme, the participation of the Republic of Serbia in the Programme shall be continuously monitored on a partnership basis involving the Commission and the Republic of Serbia. The Republic of Serbia shall submit relevant reports to the Commission and take part in other specific activities provided for by the EU in that context.

In accordance with Regulations (EU, Euratom) No 966/2012 of 25 October 2012 and (EU) No 1268/2012 of 29 October 2012 and with the other rules referred to in this Agreement, the contracts concluded with beneficiaries of the programmes established in the Republic of Serbia shall provide for financial or other audits, on the basis of documents and on the spot, to be conducted at any time by Commission agents or by other persons mandated by the Commission.

Commission agents and other persons mandated by the Commission shall have appropriate access to documents and to all the information required in order to carry out such audits, including in electronic form. This right of access shall be stated explicitly in the contracts concluded to implement the instruments referred to in this Agreement. The European Court of Auditors shall have the same rights as the Commission.

Article 5

Final provisions

This Agreement shall apply for the duration of the Programme. Nevertheless, should the European Union decide to extend the duration without any substantial change within the Programme/s, this Agreement would also be extended correspondingly and automatically if no Party denounces it within one month following the extension decision.

Projects and activities in progress at the time of termination shall continue until their completion under the conditions laid down in this Agreement, as well as the contractual arrangements applying to these projects and activities and the provisions of Annex II.

The annexes form an integral part of this Agreement.

This Agreement may only be amended in writing by common consent of the parties.

This Agreement shall enter into force on the day on which the Republic of Serbia notifies the Commission that its internal legal requirements for the entry into force of this Agreement have been fulfilled.

Done at Belgrade
on June 5th, 2015

For the Government
of the Republic of Serbia

Aleksandar Vulin

Minister of Labour, Employment,

Veterans and Social Affairs

Done at Brusell
on July 22nd 2015.

For the Commission,
on behalf of the European Union

Marianne Thyssen

Member of the Commission

for Employment, Social Affairs,
Skills and Labour Mobility

 

Annex I

RULES GOVERNING THE FINANCIAL CONTRIBUTION OF THE REPUBLIC OF SERBIA TO EUROPEAN UNION PROGRAMME FOR EMPLOYMENT AND SOCIAL INNOVATION ("EASI")

1. The financial contribution to be paid by the Republic of Serbia to the General Budget of the European Union to participate in the Programme shall be the following:

EUR 200.000 per year for the years 2015-2020,

Where 2015 is the first year of possible actual participation in the Programme.

The contribution of the Republic of Serbia shall cover costs related to the preparation, feasibility, development and execution of the projects of common interest, as well as for the development and implementation of horizontal measures as foreseen in the Programme.

2. Travel costs and subsistence costs incurred by representatives and experts of the Republic of Serbia for the purposes of taking part as observers in the work of the committee referred to in Article 36 of the Regulation (EU) No 1296/2013 or other meetings related to the implementation of the Programme shall be reimbursed by the Commission on the same basis as and in accordance with the procedures currently in force for representatives of the Member States of the European Union.

3. The Financial Regulation applicable to the General Budget of the European Union shall apply to the management of the contribution of the Republic of Serbia.

4. When this Agreement enters into force and at the beginning of each subsequent budgetary year, the Commission shall send to the Republic of Serbia a call for funds corresponding to its contribution of the costs covered by this Agreement.

5. That contribution shall be paid in euro to a euro denominated bank account of the Commission.

6. The Republic of Serbia shall pay its contribution to the annual costs in accordance with the call for funds request no later than three months after the date of the call. Any delay in the payment of the contribution shall give rise to the payment of default interest by the Republic of Serbia on the outstanding amount from the due date. The interest rate shall be the rate applied by the European Central Bank to its main refinancing operations, as published in the C series of the Official Journal of the European Union, in force on the first calendar day of the months in which the deadline falls, increased by 3.5 percentage points. If the delay in the payment of the contribution is such that it may significantly jeopardise the implementation and management of the programme, and in the absence of payment 20 working days after a formal letter of reminder has been sent by the Commission to the Republic of Serbia, participation of the Republic of Serbia in the programme for the relevant year will be suspended.

7. The Republic of Serbia will take all necessary measures, as appropriate, to ensure that goods and service, purchased in the Republic of Serbia or imported into the Republic of Serbia, which are partially or entirely financed to the grant agreements and/or contracts concluded for the realisation of the activities under this Agreement, are exempted from custom duties, import duties and other fiscal charges, including the VAT, that are applicable in the Republic of Serbia.

Annex II

FINANCIAL CONTROL, RECOVERY AND OTHER ANTIFRAUD MEASURES

I. Controls and antifraud measures by the Union

1. In accordance with the financial regulation applicable to the general budget of the European Union, and with the other rules referred to in this Agreement, the contracts and grant agreements concluded with beneficiaries of the programmes established in the Republic of Serbia may provide for financial or other audits may be conducted at any time during the implementation of the contract or the grant agreement and for a period of 5 years starting from the date of payment of the balance.

2. Commission agents and other persons mandated by the Commission shall have appropriate access on the premises of the contractors and their subcontractors and on the premises of the beneficiaries and their contractors and subcontractors, to sites, works and documents and to all the information required in order to carry out such audits, including in electronic form. This right of access shall be stated explicitly in the contracts and grant agreements concluded to implement the instruments referred to in this Agreement. The European Court of Auditors shall have the same rights as the Commission.

3. Within the framework of this Agreement, the European Anti-Fraud Office (OLAF) shall be authorised to carry out on-the-spot checks and inspections on territory of the Republic of Serbia, in accordance with the procedural provisions of Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 and Regulation (Euratom, EC) 2185/69 of 11 November 1996.

These checks and inspections shall be prepared and conducted in close collaboration with the competent authorities of the Republic of Serbia designated by the authorities of the Republic of Serbia, which shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help.

If the authorities of the Republic of Serbia concerned so wish, the on-the-spot checks and inspections may be carried out jointly with them.

Where the participants in the programmes resist an on-the-spot check or inspection, the authorities of the Republic of Serbia, acting in accordance with national rules, shall give Commission/OLAF inspectors such assistance as they need to allow them to discharge their duty in carrying out an on-the-spot check or inspection.

The Commission/OLAF shall report as soon as possible to the authorities of the Republic of Serbia any fact or suspicion relating to an irregularity which has come to its notice in the course of the on-the-spot check or inspection. In any event the Commission/OLAF shall be required to inform the above-mentioned authority of the result of such checks and inspections.

II. Information and consultation

1. For the purposes of proper implementation of this Annex, the competent authorities of the Republic of Serbia and EU authorities shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations.

2. The competent authorities of the Republic of Serbia shall inform the Commission without delay of any fact or suspicion which has come to their notice relating to an irregularity in connection with the conclusion and implementation of the contracts and grant agreements concluded in application of the instruments referred to in this Agreement.

III. Administrative measures and penalties

Without prejudice to application of criminal law of the Republic of Serbia, administrative measures and penalties may be imposed by the Commission in accordance with the financial regulation applicable to the general budget of the European Union.

IV. Recovery

Decisions taken by the Commission within the scope of this Agreement which impose a pecuniary obligation on persons other than States shall be enforceable in the Republic of Serbia. The enforcement shall be governed by the rules of civil procedure in force in the State in the territory of which it is carried out. The enforcement order shall be appended to the decision, without other formality than verification of the authenticity of the decision, by the national authority which the Government of the Republic of Serbia shall designate for this purpose and shall make known to the Commission. When these formalities have been completed on application by the Commission, the latter may proceed to enforcement in accordance with the national law, by bringing the matter directly before the competent authority. The legality of the Commission decision shall be subject to control by the Court of Justice of the European Union.

Judgments delivered by the Court of Justice of the European Union pursuant to an arbitration clause in a contract within the scope of this Agreement shall be enforceable on the same terms.

V. Direct communication

The Commission shall communicate directly with the participants and contractors in the European Union Programme for Employment and Social Innovation established in the Republic of Serbia. They may submit directly to the Commission all relevant information and documentation which they are required to submit on the basis of the instruments referred to in this Agreement and of the contracts and grant agreements concluded to implement them.