1. Externalisation Policy at the European Commission
Hans-Georg Gerstenlauer
DG Personal and Administration
7. Februar 2006 in Wien

2. Reform of the European Commission
The four principles of the reform:
Clearer responsibility
Strengthened accountability
Higher efficiency
Public and Internal Transparency
Greater personal responsibility at all levels of the Commission was – among other things – achieved through the process of externalisation.

3. Creation of Offices
Guidelines for a policy of externalisation, SEC (1999) 2051/7
Reforming the Commission, COM(2000) 200
A new type of office for managing support and administrative tasks at the European Commission, COM (2002) 264
Offices: Administrative entities aimed at providing support for the activities of COM departments or other COM Institutions
Creation of PMO, OIB and OIL (out of DG ADMIN)

4. Underlying Ideas
Need to find greater rationality in the allocation of responsibilities
Concentration of a DG‘s core activity
Challenges for DG ADMIN:
Demarcation line between decision making powers and the offices‘ executory role
Enable DG ADMIN to focus on and provide a high quality of services in the area of personnel policy, ICT, security and as guardian of the Staff Regulations

5. Better Quality and increased Efficiency
Advantages of externalisation:
Services become more visible, notably in the management of social welfare infrastructure and logistics
Decentralisation of responsibilities through definition of terms of reference and the full integration of and control over the resources and budget of each of the proposed offices
Activities of offices are more clearly focused

6. Potential Savings Savings are expected through
Impact of increased efficiency
Use of Contract Agents (up tp 75%) in accordance with Staff Regulations
Economies of scale from an improved inter-institutional approach: COM offices represent a first step in a possible transition to inter-institutional offices

7. More Independance for each Office
Distinction of responsibilities
Director is responsible for current management
Board (chaired by the DG) decides on the implementation of the work programme and controls the functionning of the Office
Commission exercises the political responsibility
More management independance for each Office through the allocation of all necessary resources (human, financial, ICT, etc)

8. Control and Audit System
Office Director has to provide the same formal declaration as a Director General or Head of Service concerning good management
The Director‘s responsibility comprises the establishment of adequate internal control mechanisms and audit capability
The Commission‘s Internal Audit Service remained competent
OLAF has all access rights to the new offices

9. The Case of EPSO
Creating inter-institutional Offices is a joint decision by the Institutions concerned
They are designed to carry out task that are common to several or all Institutions
Avantage is the accumulation of know-how, economies of scale and of a coherent practice throughout the Institutions
The inter-institutional Office is headed by a Director and controled by a management board; it adopts ist own rules on staff policy

10. Future of DG ADMIN
The creation of the offices attached to DG ADMIN is meant to enable the DG to concentrate on its core activities.
Implementation of rules as well as monitoring is the task of each DG under the policy of decentralisation, and of the Offices.
PMO, OIB and OIL are the response to the need to constantly improve the service provided, while making savings in terms of human and financial resources.

11. Externalisation Policy at the EC
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