Local view for "http://purl.org/linkedpolitics/eu/plenary/2009-03-24-Speech-2-380"
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"en.20090324.31.2-380"2
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"Mr President, before us is the report on Activity Based Budgeting and Management. I would like to thank the entire Committee on Budgets for its robust and consistent support, as well as the Committee Secretariat and all those who assisted me.
This report is based on recent studies, the most important of which are listed in the explanatory statement section. Their general tone suggests that the implementation of ABB and ABM has been a success and has brought about a major cultural change in the Commission whilst at the same time helping to clarify personal responsibilities and accountability, and making management more effective, result-oriented and transparent.
Bureaucracy and the fact that it is on the increase, however, are a real danger. We particularly need to assess whether the current annual Planning and Review Process involves too much planning, especially in comparison to the presentation and evaluation of the results achieved.
We should also examine how the five-year strategic objectives of the Commission, its ‘Government Programme’, are linked to the multiannual financial frameworks (MFF) and, moreover, to the Annual Policy Strategy. The Annual Policy Strategy is often associated with elements that have no obvious connection with the Government Programme, the five-year strategic objectives or the multiannual financial framework. This generally causes problems for the drafting of the budget, as resources are included in the revision of the financial framework, which is what the Council objects to in particular. There have been clear examples of this virtually every five years.
The Commission has particular difficulties determining the ‘negative priorities’, to wit, the activities that are unnecessary or less important and which should be abandoned. It is to be hoped, in this respect, that the Commission will be bolder in its approach.
It is still hard to estimate administrative expenditure, although this is budgeted separately, because administration is still financed from functional appropriations, and that includes executive agencies and, frequently, technical assistance in Member States. That is why the report gives attention to the importance of monitoring human resources.
Finally, Mr President, the report before us is based on our European heritage – Article 15 of the Declaration of the Rights of Man and the Citizen of the great French Revolution of 1789: ‘Society has the right to ask a public official for an accounting of his administration.’.
Activity Based Budgeting (ABB) and Activity Based Management (ABM) were introduced during the Prodi Commission, spearheaded by Commissioner Kinnock. The stimulus for reform was provided by the report by an external group of experts that was commissioned to look into the crisis the previous Commission was going through. This report represents a sort of mid-stage review of what is referred to as the ‘Kinnock reforms’.
The aim of ABB and ABM is to clarify administration by budgeting available resources and human resources according to policy area. Administration should be able to show the results achieved clearly in order to make their value compared to input clearly visible.
The main focus is results and not so much how they have been achieved. The approach reflects that used in business.
The system can also be expressed more simply. It is not enough that money is spent – or even ‘blown’ – legally or in accordance with the rules: the results determine the quality of administration, not good intentions.
The results also show how efficient management and administration are. Let us take the structural and cohesion policy as an example. If, two years and three months after the programming period starts, over three-quarters of the administration and control systems have not been adopted, administration cannot be regarded as being efficient. It may be the fault of both the Commission and the Member States, though the fact remains that the administration is bureaucratic and inefficient.
ABB and ABM put the emphasis on and promote efficiency. They reduce bureaucracy and strengthen the legal status of citizens and those affected by the administration affects, as regards management.
Activity Based Management puts the emphasis on personal responsibility, but it also allows for freedom of action. With a good administrative system there is a clear division of responsibility. Management has a face, at both the lower and the upper level.
Because the goal of management is good productivity, a manager should not put unnecessary constraints on work. Only essential regulations are necessary. There is no need for inessential reports and planning."@en1
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