3.2.2. Medium-term planning, annual planning, reporting and controlling

In terms of forward-looking planning process the Commission prepares the strategic planning and programming cycle. This cycle is multi-annual with a seven years horizon to take account of the fact that a significant quantity of Commission work spreads over several years. It is the major planning framework within which the Commission operates and ensures that the broad political objectives of the Commission as laid down in Europe 2020 filter down into the work of every DG.

The triangle of Secretariat General, DG Budget and DG Human Resources are the most important horizontal actors in the Commission to prepare the Commission’s strategic resource allocation decisions.

The key planning document in this respect is the Commission Work Programme which has the purpose to set political priorities, define and deliver clear objectives and to allocate resources effectively in light of policy priorities. This document is a very important political, technical and practical document which gives a transparent overview of the main actions the Commission plans to implement over the coming years. It is accompanied by a seven year multiannual financial framework prepared and coordinated by DG Budget to ensure that sufficient financial resources are allocated to the political priorities. The next financial cycle which is currently under preparation concerns the period 2014 to 2020.

The medium-term planning is then broken down in annual planning, budgeting and reporting. The Commission’s annual cycle can be summarized as follows:

• The orientation debate held amongst the College of Commissioners initiates the strategic planning and programming cycle and defines priorities and strategic objectives of the Commission for the following year.
• Based on proposals coming from the Commission services, the Commission decides upon its annual policy strategy which provides the framework for the preliminary draft budget and for the Commission’s Annual Work Programme. The Annual Work Programme translates policy strategy into a concrete action plan and a set of deliverables.
• At the level of each Directorate General, Annual Management Plans translate the priorities of the Commission into a detailed set of initiatives at sector level. The Annual Management Plan of a Directorate General describes how each department plans their activities and how they contribute to the priorities of the Commission, including the allocation of human and financial resources to the activities. Since the introduction of activity based management these plans have to set out clear, specific, measurable and verifiable objectives for each activity as well as indicators for the monitoring and reporting on progress made and the impact of the activities on EU citizens. The selected indicators allow the Secretariat General and other actors to follow implementation and to monitor any deviations. This de factor corresponds to the function of strategic controlling.
• DG Budget collects the necessary information from all DGs about their financial needs. After their examination and discussions with the DGs, a draft budget is adopted by the Commission, and transmitted to the European Parliament and the Council of Ministers for approval.
• DG Human Resources ensures that the different Directorates General have the right people in the right place at the right time.
• Once the budgetary year has ended, all Directorates General have to report on the degree of achievement of the objectives that were set in their annual management plans. They establish Annual Activity Reports. The Commission collects the main conclusions of the individual activity reports in a synthesis report which is presented to the Parliament and the Council of Ministers.

It is from this broad framework of prioritization and resource allocation that new policies are taken forward within the Commission. This is also the framework within which the Commission can adapt to external and internal changes.