Kiri

COUNCIL OF EUROPE

Observatoire européen de [‘audiovisuel European Audiovisual Observatory

%,.. Europäische Audiovisuelle Informationsstetle S •

MINISTRY OF CULTURE & EDUCATION OF ESTON IA Suur-Karja 23 15076 TALLINN Estonia

By email.: min@kuLee

Strasbourg, 2 January 2025

Subject: Cailfor contribution to the budget of the European Audiovisual Observatoryfor 2025

Dear Sir or Madame,

I have the pleasure of confirming you that, in its meeting of 18 November 2024, the Financial Committee of the European Audiovisual. Observatory formally adopted the 2025 Observatory Budget amounting to EUR 4 017 400.

The Budget 2025 of the Observatory is appended.

Please note the mode of payment of members’ contributions, as stated in Articl.e 11, par. 2 and 3 of the Financial Regul.ations of the Observatory: “Every Member shall pay at least one third of its compulsory contribution in the course of the first three months of the year. The balance shall be payable before the end ofa period ofsix months asfrom the date mentioned in the letter callingfor the contribution”.

We would be grateful. if you coul.d transfer to our bank account the contribution for Estonia, amounting to EUR 4 078,09, within the deadlines l.aid down in the Financial Regul.ations. You will find hereafter our bank details.

L Bank: Société Généra[e — Branch: Strasbourg Europe (02363)

L!BAN InternationaL Banking Account Number FR76 30003 02363 0005003168923

BIC Bank identification Code SOGEFRPPSTG

PLease do not hesitate to contact the Observatory Secretariat (Sandra Lécaillier, telephone: +33 (0)3 90 21 60 04, e-mail: [email protected]) shouLd you need any further information on the subject.

sincereLy,

Susanne Nikoltchev Executive Director

Copies to Ms Edith Sepp-Dallas, Eesti Filmi Instituut

Observatoire européen de ‘audiovisue 76 al[ée de La Robertsau — 67000 Strasbourg — France

Tél. : +33 (0)3 90 21 60 00 — [email protected] — www.obs.coe.int

CONSEIL DE [EUROPE

COUNCIL OF EUROPE

Observatoire européen de [‘audiovisuel European Audiovisual Observatory

%,.. Europäische Audiovisuelle Informationsstetle S •

MINISTRY OF CULTURE & EDUCATION OF ESTON IA Suur-Karja 23 15076 TALLINN Estonia

By email.: min@kuLee

Strasbourg, 2 January 2025

Subject: Cailfor contribution to the budget of the European Audiovisual Observatoryfor 2025

Dear Sir or Madame,

I have the pleasure of confirming you that, in its meeting of 18 November 2024, the Financial Committee of the European Audiovisual. Observatory formally adopted the 2025 Observatory Budget amounting to EUR 4 017 400.

The Budget 2025 of the Observatory is appended.

Please note the mode of payment of members’ contributions, as stated in Articl.e 11, par. 2 and 3 of the Financial Regul.ations of the Observatory: “Every Member shall pay at least one third of its compulsory contribution in the course of the first three months of the year. The balance shall be payable before the end ofa period ofsix months asfrom the date mentioned in the letter callingfor the contribution”.

We would be grateful. if you coul.d transfer to our bank account the contribution for Estonia, amounting to EUR 4 078,09, within the deadlines l.aid down in the Financial Regul.ations. You will find hereafter our bank details.

L Bank: Société Généra[e — Branch: Strasbourg Europe (02363)

L!BAN InternationaL Banking Account Number FR76 30003 02363 0005003168923

BIC Bank identification Code SOGEFRPPSTG

PLease do not hesitate to contact the Observatory Secretariat (Sandra Lécaillier, telephone: +33 (0)3 90 21 60 04, e-mail: [email protected]) shouLd you need any further information on the subject.

sincereLy,

Susanne Nikoltchev Executive Director

Copies to Ms Edith Sepp-Dallas, Eesti Filmi Instituut

Observatoire européen de ‘audiovisue 76 al[ée de La Robertsau — 67000 Strasbourg — France

Tél. : +33 (0)3 90 21 60 00 — [email protected] — www.obs.coe.int

CONSEIL DE [EUROPE

Budget 2025 Adopted

**v

OBS 2024.13-fin

Meeting: Financial Committee Date: 18 November 2024

BUDGET 2025

Table of contents

1. Remarks on the Observatory’s budget for 2025............................................................. 1

1.1. General remarks ............................................................................................................................................................................................. 1

1.2. Budget framework and composition ...................................................................................................................................................... 1

1.2.1. The total budget ...................................................................................................................................................................... 1

1.2.2. The activity budget ................................................................................................................................................................. 2

1.2.3. The EPRA special budget ...................................................................................................................................................... 3

2. Comments on the income and expenditure budgets ..................................................... 4

2.1. Income 4

2.1.1. Credit balance ........................................................................................................................................................................... 4

2.1.2. Fund for the extension of the Observatory’s premises .............................................................................................. 5

2.1.3. Income from products and services .................................................................................................................................. 5

2.1.4. Bank interest ............................................................................................................................................................................. 8

2.1.5. Members’ compulsory contributions ................................................................................................................................ 8

2.2. Expenditure ................................................................................................................................................................................................... 10

2.2.1. General remarks on the managerial projects ............................................................................................................. 11

2.2.2. The programme of activities ............................................................................................................................................ 12

2.2.3. The support units ................................................................................................................................................................. 14

2.2.4. The European Platform of Regulatory Authorities ................................................................................................... 17

2.3. Implementation of the budget .............................................................................................................................................................. 17

2.3.1. Contribution Agreements .................................................................................................................................................. 17

2.3.2. The EPRA budget .................................................................................................................................................................. 17

2.3.3. Role of the reserve ............................................................................................................................................................... 17

2.3.4. Transfers within the budget ............................................................................................................................................. 18

3. Summary tables ............................................................................................................... 19

3.1. The total budget ......................................................................................................................................................................................... 19

3.2. Activity budget............................................................................................................................................................................................. 21

3.3. Special budget ............................................................................................................................................................................................. 28

3.4. Staffing table ................................................................................................................................................................................................ 30

3.4.1. Posts and positions .............................................................................................................................................................. 30

3.4.2. Assignments ........................................................................................................................................................................... 30

BUDGET 2025

Figures Figure 1 – Total Budget structure (income) 2016-2025 .......................................................................................................................................... 2 Figure 2 – 2024 activity budget ........................................................................................................................................................................................ 3 Figure 3 – Income from products and services ........................................................................................................................................................... 6 Figure 4 – Sales of publications and online services, 2023 ................................................................................................................................... 7 Figure 5 – Weight of the co-financed projects in the activity budget, 2016-2025 ....................................................................................... 8 Figure 6 – Changes in members’ compulsory contributions over ten years .................................................................................................... 9 Figure 7 – Proportion of members’ compulsory contributions in the activity budget ................................................................................. 9 Figure 8 – Total income budget, 2023-2025 ............................................................................................................................................................. 10 Figure 9 – Composition of the expenses budget, 2021-2025 activity budget ............................................................................................. 16

Tables Table 1. Total budget: Receipts ....................................................................................................................................................................... 19 Table 2. Total budget: Expenses ...................................................................................................................................................................... 19 Table 3. Total budget: Expenses, breakdown by budget head ............................................................................................................ 20 Table 4. Activity budget: Receipts ................................................................................................................................................................... 21 Table 5. Activity budget: Receipts, breakdown of products and services ....................................................................................... 21 Table 6. Activity budget: Receipts, breakdown of co-financed projects .......................................................................................... 22 Table 7. Activity budget: Breakdown of members’ contributions ....................................................................................................... 23 Table 8. Activity budget: Expenses ................................................................................................................................................................. 24 Table 9. Activity budget: Expenses, breakdown by cost accounting section (1) .......................................................................... 25 Table 10. Activity budget: Expenses, breakdown of the reserve ........................................................................................................... 27 Table 11. Special budget: Receipts ................................................................................................................................................................... 28 Table 12. Special budget: Expenses.................................................................................................................................................................. 29 Table 13. Staffing table.......................................................................................................................................................................................... 31

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1. Remarks on the Observatory’s budget for 2025

1.1. General remarks

The 2025 budget is intended to support the implementation of the Action Plan as part of the Mid-term Strategy (MtS) 2024-2028.

The 2022 to 2024 financial years were characterised both by the late completion of the restructuring of the Secretariat undertaken as part of the previous MtS and by staff changes that resulted in vacancies with an impact on the Observatory team’s workload. These unforeseen circumstances, combined with very high income from financial investments in 2024 due to persistently high interest rates together with dynamic cash management, resulted in exceptional credit balances. The Observatory was able to take advantage of this situation to allocate to the Fund for co-financed projects the amount necessary for the negotiation of the fourth Contribution Agreement, which is due to start in 2025.

With the team back to full strength in early 2025, and with a modest increase in resources, the Observatory will be able to make steady progress towards the main objectives of the MtS, which are to consolidate a unique institution of renown and ensure that it is of ever greater use to the European audiovisual sector, especially its political and economic decision-makers.

1.2. Budget framework and composition

1.2.1. The total budget The budget is made up of an activity budget and a special budget. The former comprises the “ordinary” budget (i.e., the Observatory's own resources) and the budget for the third Contribution Agreement, a project co-financed by the European Commission. While the Observatory's own resources finance its core activities, the co-financed projects both cover recurrent services to the European Commission and the exploration of new areas by the Observatory. The third Contribution Agreement with the European Commission, which came into force on 1 January 2024, runs until 31 December 2025.

The activities concerning the hosting of the European Platform of Regulatory Authorities (EPRA) are covered by a special budget.

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Income budget Ordinary budget

Activity budget

Special budget

Credit balance

Dedicated fund

Income from products and services

Co-financed projects

Budget of the European Platform of Regulatory Authorities (EPRA)

Members’ compulsory contributions

Total budget

Figure 1 – Total Budget structure (income) 2016-2025

1.2.2. The activity budget The following figure shows the breakdown of the funding for the Observatory’s programme of activities. In the interests of budgetary transparency, the budget for the Contribution Agreement is presented separately in the summary tables section.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Credit balance

Extension of premises

Financial reserve (investments)

Core products and services

PAGoDA/Contribution Agreements

TV Market in Europe

EPRA

Bank interest

Voluntary contributions

Past contribution (Russian Federation) Compulsory contributions

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Figure 2 – 2024 activity budget

1.2.3. The EPRA special budget The Observatory has hosted the Secretariat of the European Platform of Regulatory Authorities since 2006. This is based on a Memorandum of Understanding automatically renewed every year and under which the Observatory provides the structure and services necessary for EPRA to operate. This Memorandum of Understanding was amended in 2019 to take account of EPRA’s development and has been tacitly renewed since then.

"Ordinary budget" 86,8%

European Commission cofinancing

95%

Observatory cofinancing

5%

Contribution Agreement

13,2%

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2. Comments on the income and expenditure budgets 1

2.1. Income

The total budget is slightly higher (+0.4%) than the final budget for the 2024 financial year as a result of contrasting trends in the various income items: there is a sharp fall in the volume of the third Contribution Agreement with the European Commission (CA3) and income from bank interest but this is offset by the contribution of the credit balance from the last closed financial year, members’ compulsory contributions and, more significantly, the new inclusion in the budget of the fund for the project to extend the Observatory's premises (cf. paras. 2.1.2 and 2.2.3.3).

The activity budget rises by 0.2% and the ordinary budget by 6.1%. If the budget for the project to extend the premises is excluded, due to the rise in the credit balance, the increase in the ordinary budget is limited to 1.9%. In a situation of persistent inflation, the policy of insourcing IT development and maintenance and the use of machine translation will contribute to generating the savings needed to balance the budget.

The EPRA budget increases by 3.7%.

The risks inherent in the implementation of the programme of activities and the budget are described in the MtS 2.

2.1.1. Credit balance The credit balance of the last closed financial year is an integral part of the budget.

Article 5 of the Financial Regulations3 provides: “In accordance with the provision set out in Article [9.1 (e)] of the Statute of the Observatory, the credit balance of the last closed and approved financial year shall be credited to the Budget of Receipts for the second financial year succeeding the one in question […]. The Executive Council may authorise a different allocation of the aforesaid credit balance”.

The allocation of the credit balance for the 2023 financial year was the subject of a decision by the Executive Council in June 20244 with the aim of topping up the fund for

1 References to the 2024 budget relate to the final budget (document OBS 2024.12), for which income has increased slightly (income from products and services and bank interest). Amounts may therefore differ a little from those communicated to members in the non-paper of 29 August 2024. 2 Cf. Mid-term Strategy 2024-2028, ibid., paras. 6.6., 7.4.4. and 8.4. 3 Cf. Financial Regulations of the European Audiovisual Observatory, document OBS 2018.01. 4 Cf. document OBS 2024.05-II, Allocation of the credit balance of the 2023 financial year.

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co-financed projects in the light of the negotiation of a two-year Contribution Agreement. The sum of EUR 260 085.68 is allocated to the 2025 budget, a significant increase compared to 2024.

2.1.2. Fund for the extension of the Observatory’s premises In 2017, the Observatory proposed to the City of Strasbourg, the owner of the Villa Schutzenberger, which houses the Observatory’s offices, that it contribute EUR 100 000 to work to convert the garage adjoining the villa into additional working space, in exchange for a rent-free period corresponding to the amount of the work. In 2018, the Executive Council approved the creation of a fund to finance this contribution and the necessary outlays to fit out the new offices. Since 2019, a number of technical, legal and financial setbacks have forced the City of Strasbourg to postpone the project. The work, which was begun in 2020, is suspended owing to a legal dispute5. According to information provided by the City of Strasbourg, the dispute has been solved, allowing the project to resume. In view of the Observatory’s ever-pressing need for more office space and a meeting-room equipped with videoconferencing facilities, this is very good news.

The appropriations amounting to EUR 131 700 to cover both the Observatory’s contribution and the fitting out costs make up almost the entire fund and are entered in the 2025:

• Contribution to the renovation work EUR 100 000 • Purchase of furniture, fitting out the offices and

other outlays (installation of a videoconference facility) EUR 31 700 The balance of the fund, EUR 8 300, is reserved for finalising the fitting-out work and will be used in 2026 if construction has been completed during the financial year.

2.1.3. Income from products and services The receipts entered under budget head 2 are sharply down due to the 28% fall in the volume of CA3. They make up 15% of the Observatory’s activity budget.

As a result of the previous MtS, the co-financed projects are now exclusively aimed at increasing the Observatory’s information offering beyond its core mission.

The Observatory hopes to increase its income from its main publication, the online Yearbook, despite the difficult market in which it is sold and while maintaining the balance between its public service remit and the requirement to generate income from its services. LUMIERE Pro is aimed at an even smaller user group, with sales made under a sub-licence agreement.

5 Cf. Action Plan 2023, OBS 2022.09-III, section 2.1. Goals related to management and development.

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Figure 3 – Income from products and services

2.1.3.1. Publications and services

The Observatory disseminates most of its output free of charge in order to fulfil its mission to ensure greater transparency in the audiovisual sector. Three publications and services are for sale due to restrictions on the dissemination of the data they contain: the online Yearbook, LUMIERE Pro and FOCUS – World Film Market Trends. These restrictions are imposed by the providers on which the Observatory relies for their preparation.

The target for sales of the Observatory’s paid productions has been increased by 4%.

1.a. Credit balance 6,5%

Fund Extension of premises

3,3%

2.a. Publications and related services

2,0%

2.a. Agreements

and other services

0,6%

2.b. Contribution Agreement

12,5%

2.c. EPRA 5,3%

3. Bank interest 0,2%

4.a. Compulsory contributions

69,5%

Other 20,5%

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Figure 4 – Sales of publications and online services, 2023

It should also be pointed out that the 2025 edition of FOCUS – World Film Market Trends is contingent upon the conclusion of an agreement with the Cannes Film Market on the Observatory’s contribution to the event.

2.1.3.2. Co-financed project

The third Contribution Agreement between the Observatory and the European Commission (CA3), concluded in 2024 for two years, is included in the 2025 budget. The co-financing of the European Commission's grant agreements amounts to 95%. The Observatory’s 5% co-financing is provided by the fund for co-financed projects6.

The volume of activities carried out as part of the second year of CA3 will fall sharply. As a result, this project’s share of the activity budget is now just 13%, compared with 18% in 2024.

6 Cf. document OBS 2016.07 rev “Creation of a fund for co-financed projects — Allocation to the revised 2016 budget. Proposal for a decision”.

Yearbook online 45%

FOCUS - Film market trends

1%

LUMIERE Pro 54%

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Figure 5 – Weight of the co-financed projects in the activity budget, 2016-2025

2.1.3.3. The EPRA special budget

After a sharp increase in 2024, the EPRA budget rises by 3.7%. Under the Memorandum of Understanding, concluded between EPRA and the Observatory, the amounts remitted by EPRA cover all the costs of hosting its Secretariat.

2.1.4. Bank interest Investments in term deposit accounts in 2024 ought to enable the Observatory to rely on income that should remain substantial.

2.1.5. Members’ compulsory contributions In accordance with the Observatory’s Financial Regulations, the method of calculating the scale of members’ contributions is based on Council of Europe Committee of Ministers Resolution (94)31 governing the scales pertaining to the Partial Agreements.

Belgium’s contribution is shared between the French Community (49%), the Flemish Community (49%) and the German-speaking Community (2%).

In order to respond to the impact of inflation on its costs, the Observatory is requesting a 2% increase in its members’ compulsory contributions. This translates into a modest rise of 1.9% in the resources for financing the Observatory’s core activities (“ordinary budget”,

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Th o

u sa

n d

s

PAGoDA/CA Other resources

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excluding the funds for the implementation of the project to extend the offices). This will not enable the Observatory to balance its budget without additional measures (cf. para. 2.2).

Figure 6 – Changes in members’ compulsory contributions over ten years (Base 100 = 2016)

* Including the entire contribution due from the Russian Federation.

Figure 7 – Proportion of members’ compulsory contributions in the activity budget (Own resources + co-financed projects)

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%

2016 2017 2018 2019 2020 2021 2022* 2023 2024 2025

Past contribution (Russian Federation)

Obligatory contributions

PAGoDA/Contributio n Agreements

Core products and services

Bank interest Extension of

premises

Credit balance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2021 2022 2023 2024 2025

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Figure 8 – Total income budget, 2023-2025

2.2. Expenditure

The expenditure budget is organised by type of expenditure grouped under eight budget heads. For budget monitoring purposes, the allocation of resources is structured around cost centres, which in turn group together the analytical sections corresponding to the projects included in the action plan. The cost centres are the two departments, the IT and Visibility units and the Administration.

The remarks on the expenditure budget follow this operational approach to a large extent.

Ordinary budget Activity budget Special budget

Department for Market Information

Department for Market Information

Budget of the European Platform of Regulatory Authorities (EPRA)

Department for Legal Information Department for Legal Information

Visibility Unit Visibility Unit

IT Unit IT Unit

Administration Administration

Co-financed projects

As the EPRA special budget has no impact on the Observatory’s budget, the remarks on expenditure only relate to the activity budget.

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500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2023 2024 2025

Th o

u sa

n d

s EU

R

Credit balance

Extension of premises

Core products and services

Contribution Agreements

EPRA

Bank interest

Obligatory contributions

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Unless otherwise stated, comparisons with the 2024 budget relate to the final budget for the financial year.

In order to balance the budget, the Secretariat has limited the increase in certain expenditure items, thereby taking a controlled budget risk given the cost-cutting capabilities it has demonstrated in the last few years.

2.2.1. General remarks on the managerial projects

2.2.1.1. Staff

After a period in 2023 and 2024 marked by numerous staff changes, the Observatory should be back to its full staff complement in 2025, subject to the reshuffling of some jobs. The difficulties encountered by the Department for Legal Information (DLI) in recruiting the successor to a Senior Analyst who has left the Observatory have resulted in the reclassification of his post. Pending the conclusion of the recruitment procedure, the temporary staff member taken on in September 2024 will remain in post until February 2025.

In addition, the increasing importance of IT tools and the strategy of insourcing their development in an effort to ensure efficiency and independence make it necessary to reclassify the post of Head of the IT Unit. Owing to the seniority of the incumbent, this measure is budget neutral.

Para. 2.2.2.1 sets out the changes in the staff budget.

2.2.1.2. Use of artificial intelligence

In 2024, the Observatory paved the way for the introduction of AI in two areas of the Secretariat’s work. The complexity of the projects has forced it to postpone their implementation until 2025.

The foundations of the plan to use machine translation for the IRIS Newsletter have been laid, with the introduction of a new method of remuneration for proofreaders, who will play a key role in the success of the undertaking. The 2025 budget includes the scales that will be offered to proofreaders. They may be adjusted during the year.

The impact of this measure concerns budget line 3.2 Translation and proofreading (cf. para. 2.2.2.3Error! Reference source not found.). The underlying software development is b eing carried out in-house (cf. para. 2.2.3.1).

In 2024, the Observatory has also studied solutions for automating and computerising accounting documents with the aim of improving procurement flows, accounting and the management of accounting documents, thus increasing efficiency while meeting the expectations expressed by the Board of External Auditors with regard to reliable audit

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trails. The implementation of the project is scheduled for the end of 2025 as it is not a priority, so its budget impact is very limited.

2.2.1.3. Sustainability

By further improving access to the results of its work on its website, the Observatory has completed concrete measures to reduce its carbon footprint even more: printing and the mailing of publications have been reduced to an absolute minimum by favouring electronic distribution. However, although the funds allocated to the layout and printing of publications will be reduced in 2025 the figure for postal charges has had to be increased because of the sharp price rises in 2024.

Similarly, whenever possible and appropriate, the Observatory now prefers to take part online in events to which it has been invited.

It should be noted that while it is up to the members to choose the format of Executive Council and Advisory Committee meetings the Secretariat will continue to advocate face- to-face meetings of its statutory bodies. However, in view of the cancellations recorded in 2024, this budget provides for the two meetings of the Bureau of the Executive Council to be held by videoconference.

Staff travel expenses are slightly down overall, despite the foreseeable increase in transport costs.

2.2.2. The programme of activities The Observatory’s work relies essentially both on the expertise of its team and on the network that it leads, so staff costs are the biggest expenditure item. Excluding the project to extend the premises, it is followed by the “Partnership and network” item.

2.2.2.1. Human resources

In 2025, all the jobs in the revised organisation chart resulting from the restructuring of the Secretariat should be filled.

This budget incorporates an overall increase in salary costs resulting from four factors:

◼ The salary adjustment granted to staff of the Coordinated Organisations in 2025 should reflect the level of inflation. The method used for this adjustment is to take a benchmark calculation based on salary increases in a group of reference national civil services. The Council of Europe Committee of Ministers decides on the adjustment for the Organisation.

◼ The agreement on the 2024 salary adjustment provided for a two-stage adjustment. The second, negative adjustment of -0.8%, will be made on 31 December 2024.

◼ The cost of pensions should rise significantly.

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◼ Staff grade changes and family situation also have an appreciable impact.

The proportion of staff costs in the activity budget is 2.6% higher compared with 2024. Total staff costs rise by 4%.

2.2.2.2. Department for Market Information (DMI)

The DMI’s programme of activities is based mainly on recurring projects, which is reflected in the stability of its budget. Systematic calls for tenders have enabled the department to obtain the best prices in a market where competition remains limited. The DMI intends to further improve its control of data purchasing costs by concluding framework contracts with a capped price rise clause. Finally, the department will be increasing its use of machine translation.

Translation and proofreading costs fall by 12.5%.

The data purchases budget falls by 11.4%.

Travel costs are slightly higher (2.3%).

The activities under the third Contribution Agreement make up 22.5% of the department’s resources. They accounted for a third in 2024, with a particularly high proportion of data purchases.

2.2.2.3. Department for Legal Information (DLI)

The project to machine-translate articles in the monthly newsletter IRIS – Legal Observations of the European Audiovisual Observatory will be introduced at the beginning of the year. It is based on in-house IT development and the creation of a trilingual glossary of technical terms.

The change in the method of remunerating proofreaders has led the Observatory to revise the expected gain downwards. It is nonetheless significant.

The budget takes into account a volume of translation similar to that of 2024, and the use of the incumbent partners, EMR - Institute of European Media Law and IViR - Institute for Information Law, is based on the two framework partnership agreements with these organisations.

Translation and proofreading costs fall by 13.8%.

The Partnership and network budget is back to the level of the last adopted budget (only one framework agreement was partially implemented in 2024).

Travel costs are 44% higher (+EUR 2 300) because the department will be back to its full staff complement.

The activities under the third Contribution Agreement make up 23.2% of the department’s resources, which is by and large the same proportion as in 2024.

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2.2.3. The support units The units carry out cross-department activities, supporting the work of the departments at various stages.

2.2.3.1. IT

The team consists of the head of the unit and two IT specialists with complementary backgrounds, one of whom is on 80% FTE.

The strategy launched in 2020 of insourcing IT projects has resulted in savings on IT maintenance and development costs. These savings are in addition to efficiency gains, which primarily benefit the DMI, whose activities are largely based on IT tools, and enable control to be taken of these key tools. In 2024, the unit has also developed budget preparation software, which will also handle budget monitoring in 2025, as well as the interface and glossary on which the machine translation of the IRIS newsletter will be based.

As in-house IT developments are not fixed assets, capital expenditure is now reduced to a symbolic amount. In order to better reflect the IT Unit’s work volume, the appropriations covering the unit’s staff costs, previously included in the Administration’s budget, have been transferred to the unit. These include IT staff costs as well as costs relating to the agreement between the Council of Europe’s Directorate of Information Technology (DIT) and the Observatory on staff computer workstations, which covers a number of underlying services7.

As a result of the adjustment to the scope of these services, the breakdown of appropriations covering this agreement has had to be reviewed: the proportion relating to the working environment (budget line 2.2 Office equipment) has been reduced in favour of infrastructure and security services and other tools provided by the DIT (budget line 2.6 Maintenance). The respective proportions in respect of the “Stationery and office equipment” and “Maintenance” items are now 34% and 66%, compared with 47% and 53% in 2024. The services provided by the DIT will continue to be enhanced by the introduction of AI tools. The sharp increase in the “Total cost of ownership” (TCO) partially rebilled to the Observatory, announced in 2024 and then postponed, will apply in 2025. This increase reflects the sharp rise in the cost of software licences, the strengthening of the IT security item, the renewal of workstations in connection with the Council of Europe’s “New way of working” policy, especially to facilitate remote working, and bringing into line the number of workstations invoiced with the number of Observatory staff at the end of the transition period negotiated in 2020.

The Observatory remains dependent on outside companies for very specific software: although the budget preparation and monitoring software is developed in-house, the

7 See para. 2.2.1.1on extending the scope of responsibility of the Head of the IT Unit.

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management and accounting tools, as well as certain specific applications like the planned invoice digitisation solution (see also para. 2.2.1.2), are based on proprietary software. Whenever possible, the Observatory takes advantage of the conditions of the framework contracts concluded by the Council of Europe, for example for the electronic signature solution implemented in 2024.

The budget includes a 51% increase in the costs rebilled by the Council of Europe for staff workstations and associated services, taking into account the parameters set out above and an increase in costs in line with the Syntec index. This increase mainly concerns budget line 2.6 Maintenance and explains the sharp rise in the appropriations allocated to this budget line in the activity budget.

As the Unit now has full control over a large proportion of the Observatory’s IT tools, especially the commercial interface of the online Yearbook, it can forego the modest sum of EUR 5 300 (EUR 1 800 in investments, under line 6.2 Software - purchases and development, and EUR 3 500 under line 3.3 Other services and external assistance, which covers IT services intended for providing ad hoc support to outside companies.

2.2.3.2. Visibility

The only notable change in the Visibility Unit’s budget is the inclusion in the corresponding cost-accounting section of appropriations covering the unit’s staff costs, reflecting the unit assistant’s contribution to the Administration’s work.

The unit contributes to the overall budgetary effort to minimise costs and the resources allocated to the organisation of events and promotional activities are lower. Accordingly, reception costs are down by one third. The Observatory’s efforts in the area of sustainable development (see para. 2.2.1.3) are partially outweighed here by the increase in postal charges. Only the Translation and proofreading item has been increased to take account of the rise in the number of press releases and other informative communications.

Excluding the impact of the transfer of staff costs, the visibility budget remains decreases by 5.2%).

2.2.3.3. Administration

The appropriations allocated to administration have fallen sharply both as a result of the transfer of staff appropriations to the IT and Visibility units and of the amounts covering the agreement on staff computer workstations in the IT Unit (see paras. 2.2.3.1 and 2.2.3.2 above). Excluding these technical measures, the Administration budget has increased by 10%, due almost entirely to the inclusion of funds earmarked for the project to extend the Observatory’s premises. This project has a marked impact on budget heads 2. Support costs and 6. Investments:

⎯ EUR 100 000 is entered in budget line 2.8 Rent and costs of premises.

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⎯ EUR 31 700 is entered in budget lines 6.1 IT hardware, 6.3 Office furniture and 6.4 Office equipment and installation.

The Administration also contributes to the budget process and, excluding the project to extend the premises and the increase in staff costs (see also para. 2.2.2.1), its budget remains stable (+0.4%).

Item 3.1 Translation and proofreading is down, mainly due to the foreseeable reduction in the costs of interpretation for the Executive Council meeting8. In addition, although the machine translation of the statutory bodies’ working documents is not on the agenda in view of their importance, the Secretariat does not rule out its use for test purposes

The project to extend the premises contributes to a large extent to the slight increase in the total budget.

Figure 9 – Composition of the expenses budget, 2021-2025 activity budget

8 In accordance with the Executive Council’s decision, the meeting will be held in Vienna, which will mean lower travel costs for the team of interpreters.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2021 2022 2023 2024 2025

Staff Support costs External services

Marketing Documentation Investments

Partnership and network Flexible allocation

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2.2.4. The European Platform of Regulatory Authorities The EPRA budget is approved by the EPRA Executive Board and implemented by the EPRA Secretariat. It will increase by 3.7% in 2025.

2.3. Implementation of the budget

2.3.1. Contribution Agreements Once signed, the Contribution Agreements are subject to the payment of 80% of the amount of its co-financing by the European Commission. Throughout their implementation, the Observatory carries out analytical monitoring of expenditure and calls in the balance from the Commission at the end of the contract.

It should be noted that projects co-financed by the Commission include a flat-rate allocation equivalent to a maximum of 7% of eligible expenditure to cover the administrative costs of these projects. The corresponding expenditure that this provision is meant to finance is entered directly into the Observatory’s “ordinary” budget.

2.3.2. The EPRA budget Pursuant to the Memorandum of Understanding between the Observatory and EPRA (see 1.2.3 above), the EPRA Executive Board arranges for two advances to be remitted to the Observatory, one at the beginning and one in the middle of the financial year. The final calculation of the expenditure incurred in connection with the service results in the offsetting of sums paid at the close of the accounts for the financial year. The agreement is therefore budget-neutral for the Observatory since EPRA pays all the costs associated with hosting it.

2.3.3. Role of the reserve A large proportion of the Observatory’s budget is financed by members’ compulsory contributions. Article 21 of the Financial Regulations provides that the Executive Director “shall [...] (p)rior to any commitment of the Observatory's funds [...] ensure that the funds are available under the appropriate Sub-head of the Budget”.

The implementation of the Action Plan depends to a significant extent on the proper collection of the compulsory contributions. A member’s failure to pay constitutes a risk that the Observatory takes into account in the budget in the form of a “reserve”. This groups together the expenditure allocated to specific measures that are planned for the second half of the year and whose implementation depends on a good level of collection of contributions. At the end of the deadline for the payment of the compulsory contributions (in practice at the beginning of July), if the level of collection is satisfactory

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and it considers that any incident likely to jeopardise the implementation of the budget can be ruled out, the Observatory gives the green light to the measures whose funding has been budgeted in the reserve.

Many projects require long preparation, so selecting activities for placing in the reserve is a difficult exercise. The activities concerned total EUR 87 700 and are listed in Table 10.

2.3.4. Transfers within the budget The budget is subject to analytical monitoring throughout the financial year. In accordance with established practice, the Executive Director can have transfers made between budget heads during the financial year as follows:

1. up to a maximum of 10% of the initial amount without the Executive Council’s authorisation,

2. up to a maximum of 20% of the initial amount after the Executive Council’s authorisation.

Any transfers will be included in the amending budget submitted to the Executive Council.

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3. Summary tables In accordance with the provisions of Article 16 of the Financial Regulations, the budget is presented in comparison with the last two financial years.

3.1. The total budget

Table 1. Total budget: Receipts

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1a. Credit balance 253 853,30 6,6% 202 159,14 5,1% 260 085,68 6,5% 1b. Fund extension of premises - 0,0% 0,0% 131 700,00 3,3% 2a. Income from products and services 106 500,00 2,8% 108 300,00 2,7% 107 600,00 2,7% 2b. Cofinanced projects (Contribution Agreement)

694 200,00 18,2% 699 200,00 17,5% 500 300,00 12,5% 2c. EPRA 193 800,00 5,1% 206 800,00 5,2% 214 500,00 5,3% 3. Bank interest 2 000,00 0,1% 48 000,00 1,2% 10 000,00 0,2% 4. Contributions of member states 2 571 246,70 67,3% 2 738 440,86 68,4% 2 793 214,32 69,5%

Total 3 821 600,00 100,0% 4 002 900,00 100,0% 4 017 400,00 100,0%

Table 2. Total budget: Expenses

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR %

1. Staff 2 699 200 70,7% 2 794 100 69,8% 2 901 000 72,2% 2. Support costs 241 000 6,3% 266 100 6,6% 389 900 9,7% 3. External services 322 600 8,4% 335 500 8,4% 277 500 6,9% 4. Marketing 47 100 1,2%

1,2%

49 900 1,2% 44 200 1,1% 5. Documentation 6 000 0,2 5 700 0,1% 4 800 0,1% 6. Investments 5 800 0,1% 15 100 0,4% 35 200 0,9% 7. Partnerships and network 484 900 12,7% 521 500 13,0% 349 800 8,7% 8. Flexible allocation 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 821 600 100,0% 4 002 900 100,0% 4 017 400 100,0%

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Table 3. Total budget: Expenses, breakdown by budget head

2023 Final budget

2024 Final budget

2025 budget

EUR EUR % EUR %

1. Staff 2 699 200 70,7% 2 794 100 69,8% 2 901 000 72,1%

1.1 Permanent staff - salaries, soc. charges&pensions 2 538 000 2 698 300 2 827 500

1.2 Temporary staff 155 500 75 000 61 900

1.3 Staff training 5 000

1.4 Other staff costs and recruitment costs 5 700 12 500 11 600

1.5 Trainees 3 300

2. Support costs 241 000 6,3% 266 100 6,6% 389 900 9,7%

2.1 Council of Europe services 35 200 35 200 34 800

2.2 Stationery and office equipment 36 500 48 600 42 200

2.3 Communications: telephone, fax, mailing costs 6 600 5 700 6 500

2.4 Travel 46 600 46 300 47 800

2.5 Insurances 2 600 2 900 3 000

2.6 Maintenance 59 200 69 900 95 500

2.7 Bank charges 2 200 1 600 1 400

2.8 Premises rental costs 50 900 54 000 157 000

2.9 Miscellaneous 1 200 1 900 1 700

3. External services 322 600 8,4% 335 500 8,4% 277 500 6,9%

3.1 Translation and proofreading 240 200 232 500 198 900

3.2 Layout and print 30 400 32 700 28 800

3.3 Other services and external assistance 38 400 50 900 32 800

3.4 External experts travel and accommodation costs

13 600 19 400 17 000

4. Marketing 47 100 1,2% 49 900 1,2% 44 200 1,2%

4.1 Marketing and promotion 26 100 26 200 26 600

4.2 Receptions 21 000 23 700 17 600

5. Documentation 6 000 0,2% 5 700 0,1% 4 800 0,1%

6. Investments 5 800 0,1% 15 100 0,4% 35 200 0,9%

6.1 IT Hardware 900 11 200 8 900

6.2 IT Software (purchase and development) 4 400 2 400 1 500

6.3 Office furniture 500 19 700

6.4 Office equipment&installation - Sundry investments 1 500 5 100

7. Partnership and network 484 900 12,7% 521 500 13,0% 349 800 8,7%

7.1 Partnership contracts 40 000 6 500 40 000

7.2 Collaboration with correspondents, data purchase

444 900 515 000 309 800

8. Flexible allocation for unexpected expenses 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 821 600 100,0% 4 002 900 100,0% 4 017 400 100,0%

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3.2. Activity budget

Table 4. Activity budget: Receipts

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1a. Credit balance 253 853,30 7,0% 202 159,14 5,3% 260 085,68 6,8% 1b. Fund extension of premises 0,0% 0,0% 131 700,00 3,5% 2a. Income from products and services 106 500,00 2,9% 108 300,00 2,9% 107 600,00 2,8% 2b. Cofinanced projects (Contribution

Agreement) 694 200,00 19,1% 699 200,00 18,4% 500 300,00 13,2%

3. Bank interest 2 000,00 0,1% 48 000,00 1,3% 10 000,00 0,3% 4. Contributions of member states 2 571 246,70 70,9% 2 738 440,86 72,1% 2 793 214,32 73,4%

Total 3 627 800,00 100% 3 796 100,00 100% 3 802 900,00 100%

Table 5. Activity budget: Receipts, breakdown of products and services

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

Publications and related services 75 500,00 70,9% 77 800,00 71,8% 81 600,00 75,8% Agreements (Film Market, …) 30 000,00 28,2% 25 000,00 23,1% 25 000,00 23,2% Consulting activities 4 500,00 4,2% Other services 1 000,00 0,9% 1 000,00 0,9% 1 000,00 0,9%

Total 106 500,00 100,00% 108 300,00 100,0% 107 600,00 100,0%

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Table 6. Activity budget: Receipts, breakdown of co-financed projects

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

Contribution Agreement 2 (2023) 694 200,00 100%

Grant European Commission 659 500,00

Cofinancing Fund 34 700,00

Contribution Agreement 3 (2024-2025) 699 200,00 100% 500 300,00 100,0%

Grant European Commission 664 400,00 475 100,00

Cofinancing Fund 34 800,00 25 200,00

Total

694 200,00 100% 699 200,00 100% 500 300,00 100,0%

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Table 7. Activity budget: Breakdown of members’ contributions

2023 Final budget

2024 Final budget

2025 Budget

% scale CoE RES(94)31

EUR % scale CoE RES(94)31

EUR % scale CoE RES(94)31

EUR

Albania 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Armenia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Austria 1,5046 38 686,98 1,4798 40 523,45 1,4507 40 521,16 Belgium 1,8182 46 750,41 1,8096 49 554,83 1,7925 50 068,37 Bosnia and Herzegovina 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Bulgaria 0,3383 8 698,53 0,3478 9 524,30 0,3564 9 955,02 Croatia 0,2578 6 628,68 0,2587 7 084,35 0,2601 7 265,15 Cyprus 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Czechia 0,9460 24 323,99 0,9537 26 116,51 0,9574 26 742,23 Denmark 1,1718 30 129,87 1,1743 32 157,51 1,1794 32 943,17 Estonia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Finland 0,9215 23 694,04 0,9113 24 955,41 0,8914 24 898,71 France 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Georgia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Germany 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Greece 0,8130 20 904,24 0,7878 21 573,44 0,7725 21 577,58 Hungary 0,6628 17 042,22 0,6693 18 328,39 0,6622 18 496,67 Iceland 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Ireland 1,2999 33 423,64 1,3729 37 596,06 1,4480 40 445,74 Italy 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Latvia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Liechtenstein 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Lithuania 0,2175 5 592,46 0,2241 6 136,85 0,2317 6 471,88 Luxembourg 0,2270 5 836,73 0,2332 6 386,04 0,2346 6 552,88 Malta 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Montenegro 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Netherlands 3,0611 78 708,43 3,0583 83 749,74 3,0462 85 086,89 North Macedonia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Norway 1,3023 33 485,35 1,3044 35 720,22 1,4208 39 685,99 Poland 2,5045 64 396,87 2,5357 69 438,65 2,5518 71 277,24 Portugal 0,9040 23 244,07 0,8914 24 410,46 0,8767 24 488,11 Romania 1,1098 28 535,70 1,1266 30 851,28 1,1398 31 837,06 Slovak Republic 0,4208 10 819,81 0,4198 11 495,98 0,4166 11 636,53 Slovenia 0,2016 5 183,63 0,2035 5 572,73 0,2022 5 647,88 Spain 4,9889 128 276,93 4,8539 132 921,18 4,7144 131 683,30 Sweden 1,8194 46 781,26 1,8392 50 365,41 1,8329 51 196,83 Switzerland 2,3519 60 473,15 2,3753 65 046,19 2,3708 66 221,53 Türkiye 3,8526 99 059,85 3,8417 105 202,68 3,8741 108 211,92 United Kingdom 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 European Union 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Morocco 1,0527 27 067,52 1,0757 29 457,41 1,0648 29 742,15

Total 100% 2 571 246,70 100% 2 738 440,86 100% 2 793 214,32

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Table 8. Activity budget: Expenses

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR % 1. Staff 2 531 400 69,8% 2 613 800 68,9% 2 717 500 71,3% 1.1 Permanent staff salaries, soc. charges&pensions 2 370 200 2 518 000 2 694 400 1.2 Temporary staff 155 500 75 000 11 500 1.3 Staff training 5 000 1.4 Other staff costs and recruitment costs 5 700 12 500 11 600 1.5 Trainees 3 300 2. Support costs 224 800 6,2% 248 100 6,5% 368 000 9,7% 2.1 Council of Europe services 35 200 35 200 34 800 2.2 Stationery and office equipment 33 900 45 200 39 300 2.3 Communications: telephone, fax, mailing costs 6 400 5 500 6 400 2.4 Travel 40 100 38 900 38 200 2.5 Insurances 2 500 2 800 2 900 2.6 Maintenance 55 900 66 300 89 500 2.7 Bank charges 2 100 1 500 1 300 2.8 Premises rental costs 47 700 51 000 154 100 2.9 Miscellaneous 1 000 1 700 1 500 3. External services 312 800 9,0% 327 000 8,6% 268 400 7,1% 3.1 Translation and proofreading 238 700 231 300 197 700 3.2 Layout and print 30 300 32 500 28 600 3.3 Other services and external assistance 33 200 46 800 28 900 3.4 External experts travel and accommodation

costs 10 600 16 400 13 200

4. Marketing 47 100 1,4% 49 900 1,3% 44 200 1,2% 4.1 Marketing and promotion 26 100 26 200 26 600 4.2 Receptions 21 000 23 700 17 600 5. Documentation 6 000 0,2% 5 700 0,2% 4 800 0,1% 6. Investments 5 800 0,2% 15 100 0,4% 35 200 0,9% 6.1 IT Hardware 900 11 200 8 900 6.2 IT Software (purchase and development) 4 400 2 400 1 500 6.3 Office furniture 500 19 700 6.4 Office equipment&installation - Sundry investments 1 500 5 100 7. Partnership and network 484 900 12,9% 521 500 13,7% 349 800 9,2% 7.1 Partnership contracts 40 000 6 500 40 000 7.2 Collaboration with correspondents, data purchase 444 900 515 000 309 800 8. Flexible allocation for unexpected expenses 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 627 800 100,0% 3 796 100 100,0% 3 802 900 100,0%

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Table 9. Activity budget: Expenses, breakdown by cost accounting section (1)

EUR M ar

ke t

in fo

rm at

io n

Le ga

l in

fo rm

at io

n

Tr an

sv er

sa l

& s

up po

rt

pr oj

ec ts

Vi si

bi lit

y

IT

Ad m

in is

tr at

io n

Su bt

ot al

1. Staff 753 800 593 200 125 500 255 300 659 200 2 387 000 1.1 Permanent staff salaries, soc. charges&pensions 753 800 584 900 122 300 255 300 647 600 2 363 900 1.2 Temporary staff 8 300 3 200 11 500 1.3 Staff training 1.4 Other staff costs and recruitment

costs 11 600 11 600

1.5 Trainees 2. Support costs 13 300 7 500 17 900 118 400 210 900 368 000 2.1 Council of Europe services 34 800 34 800 2.2 Stationery and office equipment 1 500 36 700 1 100 39 300 2.3 Communications: telephone, fax,

mailing costs 4 200 2 200 6 400

2.4 Travel 13 300 7 500 12 200 5 200 38 200 2.5 Insurances 2 900 2 900 2.6 Maintenance 81 700 7 800 89 500 2.7 Bank charges 1 300 1 300 2.8 Premises rental costs 154 100 154 100 2.9 Miscellaneous 1 500 1 500 3. External services 21 700 160 200 1 000 16 000 11 400 48 900 259 200 3.1 Translation and proofreading 8 200 144 300 1 000 9 600 28 600 191 700 3.2 Layout and print 13 500 9 700 3 900 1 500 28 600 3.3 Other services and external

assistance 100 700 11 400 13 500 25 700

3.4 External experts travel and accommodation costs

6 100 1 800 5 300 13 200 4. Marketing 400 3 400 33 000 7 400 44 200 4.1 Marketing and promotion 400 26 200 26 600 4.2 Receptions 3 400 6 800 7 400 17 600 5. Documentation 4 800 4 800 6. Investments 11 500 23 700 35 200 6.1 IT Hardware 8 900 8 900 6.2 IT Software (purchase and

development) 1 500 1 500

6.3 Office furniture 19 700 19 700 6.4 Office equipment&installation - Sundry investments 1 100 4 000 5 100 7. Partnership and network 171 700 50 200 221 900 7.1 Partnership contracts 40 000 40 000 7.2 Collaboration with correspondents, data purchase 171 700 10 200 181 900 8. Flexible allocation for unexpected

expenses 15 000 15 000

Total 960 900 814 500 5 800 192 400 396 600 965 100 3 335 300 (See following page)

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Activity budget: Expenses, breakdown by cost accounting section (2)

EUR Co nt

rib ut

io n

Ag re

em en

t 3

To ta

l a ct

iv ity

bu

dg et

1. Staff 330 500 2 717 500 1.1 Permanent staff salaries, soc. charges&pensions 330 500 2 694 400 1.2 Temporary staff 11 500 1.3 Staff training 1.4 Other staff costs and recruitment costs 11 600 1.5 Trainees 2. Support costs 368 000 2.1 Council of Europe services 34 800 2.2 Stationery and office equipment 39 300 2.3 Communications: telephone, fax, mailing

costs 6 400

2.4 Travel 38 200 2.5 Insurances 2 900 2.6 Maintenance 89 500 2.7 Bank charges 1 300 2.8 Premises rental costs 154 100 2.9 Miscellaneous 1 500 3. External services 9 200 268 400 3.1 Translation and proofreading 6 000 197 700 3.2 Layout and print 28 600 3.3 Other services and external assistance 3 200 28 900 3.4 External experts travel and accommodation

costs 13 200

4. Marketing 44 200 4.1 Marketing and promotion 26 600 4.2 Receptions 17 600 5. Documentation 4 800 6. Investments 35 200 6.1 IT Hardware 8 900 6.2 IT Software (purchase and development) 1 500 6.3 Office furniture 19 700 6.4 Office equipment&installation - Sundry investments 5 100 7. Partnership and network 127 900 349 800 7.1 Partnership contracts 40 000 7.2 Collaboration with correspondents, data purchase 127 900 309 800 8. Flexible allocation for unexpected expenses 15 000

Total 467 600 3 802 900

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Table 10. Activity budget: Expenses, breakdown of the reserve

Department/Unit Project / Activity Reserve Part in

reserve EUR

Market Information Report on Investments of AV services in original European content

17 900 100%

Staff missions 1 300 12%

Legal Information Collaboration with correspondents, purchase of data 2 000 35%

Translation and proofreading of IRIS publication(s) 34 500 37%

Legal workshop 10 200 100%

Staff missions 1 400 19%

Transversal projects Subscriptions to professional magazines 500 10%

Visibility Printing of institutional brochures 1 200 100%

Conference in Brussels 9100 100%

Printing and distribution of visibility material 1 000 100%

IT Assistance to IT projects 2 900 100%

Administration Staff missions 700 13%

Flexible allocation 5 000 33%

Total 87 700

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3.3. Special budget

Table 11. Special budget: Receipts

2023

Final budget 2024

Final budget 2025

Budget EUR % EUR % EUR %

EPRA 193 800 100% 206 800 100% 214 500 100%

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Table 12. Special budget: Expenses

EPRA 2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1. Staff 167 800 86,6% 180 300 87,2% 183 500 85,5% 1.1 Permanent staff salaries, soc. charges&pensions 167 800 180 300 133 100 1.2 Temporary staff 50 400 1.3 Staff training 1.4 Other staff costs and recruitment costs 1.5 Trainees 2. Support costs 16 200 8,4% 18 000 8,7% 21 900 10,2% 2.1 Council of Europe services 2.2 Stationery and office equipment 2 600 3 400 2 900 2.3 Communications: telephone, fax, mailing costs 200 200 100 2.4 Travel 6 500 7 400 9 600 2.5 Insurances 100 100 100 2.6 Maintenance 3 300 3 600 6 000 2.7 Bank charges 100 100 100 2.8 Premises rental costs 3 200 3 000 2 900 2.9 Miscellaneous 200 200 200 3. External services 9 800 5,1% 8 500 4,1% 9 100 4,2% 3.1 Translation and proofreading 1 500 1 200 1 200 3.2 Layout and print 100 200 200 3.3 Other services and external assistance 5 200 4 100 3 900 3.4 External experts travel and accommodation

costs 3 000 3 000 3 800

4. Marketing 4.1 Marketing and promotion 4.2 Receptions 5. Documentation 6. Investments 6.1 IT Hardware 6.2 IT Software (purchase and development) 6.3 Office furniture 6.4 Office equipment&installation - Sundry investments 7. Partnership and network 7.1 Partnership contracts 7.2 Collaboration with correspondents, data purchase 8. Flexible allocation for unexpected expenses

Total 193 800 100,0% 206 800 100,0% 214 500 100,0%

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3.4. Staffing table

3.4.1. Posts and positions In 2025, the staff complement will remain at 28. On 1 January, the Observatory will have 23 staff employed on permanent contracts, four junior analysts recruited in 2023 under the Young Professionals programme on contracts limited to a total of four years, and one temporary staff member, pending the completion of a recruitment procedure.

3.4.2. Assignments For budget monitoring purposes, the cost of each individual is assigned to a cost centre (Department or Unit).

The following table shows the cost-centre allocation of the costs of each member of staff. The contribution of staff participating in the activities of the Contribution Agreement (co-financed project) included in the budget is indicated by the words “Part. (participation) CA3” in brackets. When the budget is implemented, the time spent by these staff on Contribution Agreement activities is subject to precise analytical tracking by profile and activity.

Within the activity budget, the third Contribution Agreement finances a total of 27 person months of Analysts, i.e. 2.25 staff, 90% of a Senior Analyst and 46% of an IT Project Assistant, as well as the time devoted to the project by the heads of department and the IT Officer.

EPRA covers all its staff budget costs.

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Table 13. Staffing table9

(1) Department/ Unit

Job Grade Profile Allocation Durati on (mont hs

1 Administration Executive Director A5 Permanent OBS - ADM 12

2 Administration Administrative assistant B3 Permanent OBS - ADM 12

3 Administration Head of Administration A1/A2/A3 Permanent OBS - ADM 12

4 Administration Accountant-assistant B3 Permanent OBS - ADM 12

5 Administration Administrative assistant B3 Permanent OBS - ADM 12

6 DLI Head of Department A4 Permanent OBS - DLI (Part. AC3)

12

7 DLI Deputy Head of Department A1/A2/A3 Permanent OBS - DLI (Part. AC3)

12

8 DLI Legal advisor A1/A2/A3 Permanent (Vacant)10

OBS - DLI (Part. AC3)

12

9 DLI Junior Analyst B3 Junior professional

OBS - DLI (Part. AC3)

12

10 DLI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

12

11 DLI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

6

12 DLI Administrative assistant B3 Permanent OBS - DLI 12

13 DMI Head of Department A4 Permanent OBS - DMI (Part. AC3)

12

14 DMI Deputy Head of Department A1/A2/A3 Permanent OBS - DMI (Part. AC3)

12

15 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

16 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

17 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

18 DMI Analyst B4 Permanent OBS - DMI (Part. AC3)

12

(continued on next page)

9 Situation at 1 January 2025. 10 The recruitment procedure, launched in 2024, will be completed in 2025. A temporary member of staff has been carrying out some of the tasks since September 2024.

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(2) Department/ Unit

Job Grade Profile Allocation Durati on (mont hs

19 DMI Analyst B4 Permanent OBS - DMI (Part. AC3)

12

20 DMI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

12

21 DMI Administrative assistant B3 Permanent OBS - DMI 12

22 IT Responsible for Information Technology B511 Permanent OBS - IT (Part. AC3)

12

23 IT IT assistant (80% FTE) B4 Permanent OBS - IT (Part. AC3)

12

24 IT IT assistant B4 Permanent OBS - IT (Part. AC3)

12

25 Visibility Responsible for Communication, Press & PR

B5 Permanent OBS - VIS 12

26 Visibility Administrative assistant B3 Permanent OBS VIS/ADM 12

27 EPRA EPRA Secretary B5 Permanent EPRA 12

28 EPRA Assistant to the EPRA Secretary B4 Permanent (Vacant)12

EPRA 12

11 The post will be reclassified at grade A1/A2/A3 in 2025 with no impact on the 2025 budget. 12 A recruitment procedure to replace the incumbent will be launched at the end of 2024. A temporary member of staff will take on some of the tasks.

Budget 2025 Adopted

**v

OBS 2024.13-fin

Meeting: Financial Committee Date: 18 November 2024

BUDGET 2025

Table of contents

1. Remarks on the Observatory’s budget for 2025............................................................. 1

1.1. General remarks ............................................................................................................................................................................................. 1

1.2. Budget framework and composition ...................................................................................................................................................... 1

1.2.1. The total budget ...................................................................................................................................................................... 1

1.2.2. The activity budget ................................................................................................................................................................. 2

1.2.3. The EPRA special budget ...................................................................................................................................................... 3

2. Comments on the income and expenditure budgets ..................................................... 4

2.1. Income 4

2.1.1. Credit balance ........................................................................................................................................................................... 4

2.1.2. Fund for the extension of the Observatory’s premises .............................................................................................. 5

2.1.3. Income from products and services .................................................................................................................................. 5

2.1.4. Bank interest ............................................................................................................................................................................. 8

2.1.5. Members’ compulsory contributions ................................................................................................................................ 8

2.2. Expenditure ................................................................................................................................................................................................... 10

2.2.1. General remarks on the managerial projects ............................................................................................................. 11

2.2.2. The programme of activities ............................................................................................................................................ 12

2.2.3. The support units ................................................................................................................................................................. 14

2.2.4. The European Platform of Regulatory Authorities ................................................................................................... 17

2.3. Implementation of the budget .............................................................................................................................................................. 17

2.3.1. Contribution Agreements .................................................................................................................................................. 17

2.3.2. The EPRA budget .................................................................................................................................................................. 17

2.3.3. Role of the reserve ............................................................................................................................................................... 17

2.3.4. Transfers within the budget ............................................................................................................................................. 18

3. Summary tables ............................................................................................................... 19

3.1. The total budget ......................................................................................................................................................................................... 19

3.2. Activity budget............................................................................................................................................................................................. 21

3.3. Special budget ............................................................................................................................................................................................. 28

3.4. Staffing table ................................................................................................................................................................................................ 30

3.4.1. Posts and positions .............................................................................................................................................................. 30

3.4.2. Assignments ........................................................................................................................................................................... 30

BUDGET 2025

Figures Figure 1 – Total Budget structure (income) 2016-2025 .......................................................................................................................................... 2 Figure 2 – 2024 activity budget ........................................................................................................................................................................................ 3 Figure 3 – Income from products and services ........................................................................................................................................................... 6 Figure 4 – Sales of publications and online services, 2023 ................................................................................................................................... 7 Figure 5 – Weight of the co-financed projects in the activity budget, 2016-2025 ....................................................................................... 8 Figure 6 – Changes in members’ compulsory contributions over ten years .................................................................................................... 9 Figure 7 – Proportion of members’ compulsory contributions in the activity budget ................................................................................. 9 Figure 8 – Total income budget, 2023-2025 ............................................................................................................................................................. 10 Figure 9 – Composition of the expenses budget, 2021-2025 activity budget ............................................................................................. 16

Tables Table 1. Total budget: Receipts ....................................................................................................................................................................... 19 Table 2. Total budget: Expenses ...................................................................................................................................................................... 19 Table 3. Total budget: Expenses, breakdown by budget head ............................................................................................................ 20 Table 4. Activity budget: Receipts ................................................................................................................................................................... 21 Table 5. Activity budget: Receipts, breakdown of products and services ....................................................................................... 21 Table 6. Activity budget: Receipts, breakdown of co-financed projects .......................................................................................... 22 Table 7. Activity budget: Breakdown of members’ contributions ....................................................................................................... 23 Table 8. Activity budget: Expenses ................................................................................................................................................................. 24 Table 9. Activity budget: Expenses, breakdown by cost accounting section (1) .......................................................................... 25 Table 10. Activity budget: Expenses, breakdown of the reserve ........................................................................................................... 27 Table 11. Special budget: Receipts ................................................................................................................................................................... 28 Table 12. Special budget: Expenses.................................................................................................................................................................. 29 Table 13. Staffing table.......................................................................................................................................................................................... 31

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1. Remarks on the Observatory’s budget for 2025

1.1. General remarks

The 2025 budget is intended to support the implementation of the Action Plan as part of the Mid-term Strategy (MtS) 2024-2028.

The 2022 to 2024 financial years were characterised both by the late completion of the restructuring of the Secretariat undertaken as part of the previous MtS and by staff changes that resulted in vacancies with an impact on the Observatory team’s workload. These unforeseen circumstances, combined with very high income from financial investments in 2024 due to persistently high interest rates together with dynamic cash management, resulted in exceptional credit balances. The Observatory was able to take advantage of this situation to allocate to the Fund for co-financed projects the amount necessary for the negotiation of the fourth Contribution Agreement, which is due to start in 2025.

With the team back to full strength in early 2025, and with a modest increase in resources, the Observatory will be able to make steady progress towards the main objectives of the MtS, which are to consolidate a unique institution of renown and ensure that it is of ever greater use to the European audiovisual sector, especially its political and economic decision-makers.

1.2. Budget framework and composition

1.2.1. The total budget The budget is made up of an activity budget and a special budget. The former comprises the “ordinary” budget (i.e., the Observatory's own resources) and the budget for the third Contribution Agreement, a project co-financed by the European Commission. While the Observatory's own resources finance its core activities, the co-financed projects both cover recurrent services to the European Commission and the exploration of new areas by the Observatory. The third Contribution Agreement with the European Commission, which came into force on 1 January 2024, runs until 31 December 2025.

The activities concerning the hosting of the European Platform of Regulatory Authorities (EPRA) are covered by a special budget.

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Income budget Ordinary budget

Activity budget

Special budget

Credit balance

Dedicated fund

Income from products and services

Co-financed projects

Budget of the European Platform of Regulatory Authorities (EPRA)

Members’ compulsory contributions

Total budget

Figure 1 – Total Budget structure (income) 2016-2025

1.2.2. The activity budget The following figure shows the breakdown of the funding for the Observatory’s programme of activities. In the interests of budgetary transparency, the budget for the Contribution Agreement is presented separately in the summary tables section.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Credit balance

Extension of premises

Financial reserve (investments)

Core products and services

PAGoDA/Contribution Agreements

TV Market in Europe

EPRA

Bank interest

Voluntary contributions

Past contribution (Russian Federation) Compulsory contributions

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Figure 2 – 2024 activity budget

1.2.3. The EPRA special budget The Observatory has hosted the Secretariat of the European Platform of Regulatory Authorities since 2006. This is based on a Memorandum of Understanding automatically renewed every year and under which the Observatory provides the structure and services necessary for EPRA to operate. This Memorandum of Understanding was amended in 2019 to take account of EPRA’s development and has been tacitly renewed since then.

"Ordinary budget" 86,8%

European Commission cofinancing

95%

Observatory cofinancing

5%

Contribution Agreement

13,2%

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2. Comments on the income and expenditure budgets 1

2.1. Income

The total budget is slightly higher (+0.4%) than the final budget for the 2024 financial year as a result of contrasting trends in the various income items: there is a sharp fall in the volume of the third Contribution Agreement with the European Commission (CA3) and income from bank interest but this is offset by the contribution of the credit balance from the last closed financial year, members’ compulsory contributions and, more significantly, the new inclusion in the budget of the fund for the project to extend the Observatory's premises (cf. paras. 2.1.2 and 2.2.3.3).

The activity budget rises by 0.2% and the ordinary budget by 6.1%. If the budget for the project to extend the premises is excluded, due to the rise in the credit balance, the increase in the ordinary budget is limited to 1.9%. In a situation of persistent inflation, the policy of insourcing IT development and maintenance and the use of machine translation will contribute to generating the savings needed to balance the budget.

The EPRA budget increases by 3.7%.

The risks inherent in the implementation of the programme of activities and the budget are described in the MtS 2.

2.1.1. Credit balance The credit balance of the last closed financial year is an integral part of the budget.

Article 5 of the Financial Regulations3 provides: “In accordance with the provision set out in Article [9.1 (e)] of the Statute of the Observatory, the credit balance of the last closed and approved financial year shall be credited to the Budget of Receipts for the second financial year succeeding the one in question […]. The Executive Council may authorise a different allocation of the aforesaid credit balance”.

The allocation of the credit balance for the 2023 financial year was the subject of a decision by the Executive Council in June 20244 with the aim of topping up the fund for

1 References to the 2024 budget relate to the final budget (document OBS 2024.12), for which income has increased slightly (income from products and services and bank interest). Amounts may therefore differ a little from those communicated to members in the non-paper of 29 August 2024. 2 Cf. Mid-term Strategy 2024-2028, ibid., paras. 6.6., 7.4.4. and 8.4. 3 Cf. Financial Regulations of the European Audiovisual Observatory, document OBS 2018.01. 4 Cf. document OBS 2024.05-II, Allocation of the credit balance of the 2023 financial year.

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co-financed projects in the light of the negotiation of a two-year Contribution Agreement. The sum of EUR 260 085.68 is allocated to the 2025 budget, a significant increase compared to 2024.

2.1.2. Fund for the extension of the Observatory’s premises In 2017, the Observatory proposed to the City of Strasbourg, the owner of the Villa Schutzenberger, which houses the Observatory’s offices, that it contribute EUR 100 000 to work to convert the garage adjoining the villa into additional working space, in exchange for a rent-free period corresponding to the amount of the work. In 2018, the Executive Council approved the creation of a fund to finance this contribution and the necessary outlays to fit out the new offices. Since 2019, a number of technical, legal and financial setbacks have forced the City of Strasbourg to postpone the project. The work, which was begun in 2020, is suspended owing to a legal dispute5. According to information provided by the City of Strasbourg, the dispute has been solved, allowing the project to resume. In view of the Observatory’s ever-pressing need for more office space and a meeting-room equipped with videoconferencing facilities, this is very good news.

The appropriations amounting to EUR 131 700 to cover both the Observatory’s contribution and the fitting out costs make up almost the entire fund and are entered in the 2025:

• Contribution to the renovation work EUR 100 000 • Purchase of furniture, fitting out the offices and

other outlays (installation of a videoconference facility) EUR 31 700 The balance of the fund, EUR 8 300, is reserved for finalising the fitting-out work and will be used in 2026 if construction has been completed during the financial year.

2.1.3. Income from products and services The receipts entered under budget head 2 are sharply down due to the 28% fall in the volume of CA3. They make up 15% of the Observatory’s activity budget.

As a result of the previous MtS, the co-financed projects are now exclusively aimed at increasing the Observatory’s information offering beyond its core mission.

The Observatory hopes to increase its income from its main publication, the online Yearbook, despite the difficult market in which it is sold and while maintaining the balance between its public service remit and the requirement to generate income from its services. LUMIERE Pro is aimed at an even smaller user group, with sales made under a sub-licence agreement.

5 Cf. Action Plan 2023, OBS 2022.09-III, section 2.1. Goals related to management and development.

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Figure 3 – Income from products and services

2.1.3.1. Publications and services

The Observatory disseminates most of its output free of charge in order to fulfil its mission to ensure greater transparency in the audiovisual sector. Three publications and services are for sale due to restrictions on the dissemination of the data they contain: the online Yearbook, LUMIERE Pro and FOCUS – World Film Market Trends. These restrictions are imposed by the providers on which the Observatory relies for their preparation.

The target for sales of the Observatory’s paid productions has been increased by 4%.

1.a. Credit balance 6,5%

Fund Extension of premises

3,3%

2.a. Publications and related services

2,0%

2.a. Agreements

and other services

0,6%

2.b. Contribution Agreement

12,5%

2.c. EPRA 5,3%

3. Bank interest 0,2%

4.a. Compulsory contributions

69,5%

Other 20,5%

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Figure 4 – Sales of publications and online services, 2023

It should also be pointed out that the 2025 edition of FOCUS – World Film Market Trends is contingent upon the conclusion of an agreement with the Cannes Film Market on the Observatory’s contribution to the event.

2.1.3.2. Co-financed project

The third Contribution Agreement between the Observatory and the European Commission (CA3), concluded in 2024 for two years, is included in the 2025 budget. The co-financing of the European Commission's grant agreements amounts to 95%. The Observatory’s 5% co-financing is provided by the fund for co-financed projects6.

The volume of activities carried out as part of the second year of CA3 will fall sharply. As a result, this project’s share of the activity budget is now just 13%, compared with 18% in 2024.

6 Cf. document OBS 2016.07 rev “Creation of a fund for co-financed projects — Allocation to the revised 2016 budget. Proposal for a decision”.

Yearbook online 45%

FOCUS - Film market trends

1%

LUMIERE Pro 54%

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Figure 5 – Weight of the co-financed projects in the activity budget, 2016-2025

2.1.3.3. The EPRA special budget

After a sharp increase in 2024, the EPRA budget rises by 3.7%. Under the Memorandum of Understanding, concluded between EPRA and the Observatory, the amounts remitted by EPRA cover all the costs of hosting its Secretariat.

2.1.4. Bank interest Investments in term deposit accounts in 2024 ought to enable the Observatory to rely on income that should remain substantial.

2.1.5. Members’ compulsory contributions In accordance with the Observatory’s Financial Regulations, the method of calculating the scale of members’ contributions is based on Council of Europe Committee of Ministers Resolution (94)31 governing the scales pertaining to the Partial Agreements.

Belgium’s contribution is shared between the French Community (49%), the Flemish Community (49%) and the German-speaking Community (2%).

In order to respond to the impact of inflation on its costs, the Observatory is requesting a 2% increase in its members’ compulsory contributions. This translates into a modest rise of 1.9% in the resources for financing the Observatory’s core activities (“ordinary budget”,

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Th o

u sa

n d

s

PAGoDA/CA Other resources

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excluding the funds for the implementation of the project to extend the offices). This will not enable the Observatory to balance its budget without additional measures (cf. para. 2.2).

Figure 6 – Changes in members’ compulsory contributions over ten years (Base 100 = 2016)

* Including the entire contribution due from the Russian Federation.

Figure 7 – Proportion of members’ compulsory contributions in the activity budget (Own resources + co-financed projects)

80%

85%

90%

95%

100%

105%

110%

115%

120%

125%

130%

2016 2017 2018 2019 2020 2021 2022* 2023 2024 2025

Past contribution (Russian Federation)

Obligatory contributions

PAGoDA/Contributio n Agreements

Core products and services

Bank interest Extension of

premises

Credit balance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2021 2022 2023 2024 2025

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Figure 8 – Total income budget, 2023-2025

2.2. Expenditure

The expenditure budget is organised by type of expenditure grouped under eight budget heads. For budget monitoring purposes, the allocation of resources is structured around cost centres, which in turn group together the analytical sections corresponding to the projects included in the action plan. The cost centres are the two departments, the IT and Visibility units and the Administration.

The remarks on the expenditure budget follow this operational approach to a large extent.

Ordinary budget Activity budget Special budget

Department for Market Information

Department for Market Information

Budget of the European Platform of Regulatory Authorities (EPRA)

Department for Legal Information Department for Legal Information

Visibility Unit Visibility Unit

IT Unit IT Unit

Administration Administration

Co-financed projects

As the EPRA special budget has no impact on the Observatory’s budget, the remarks on expenditure only relate to the activity budget.

-

500

1 000

1 500

2 000

2 500

3 000

3 500

4 000

4 500

2023 2024 2025

Th o

u sa

n d

s EU

R

Credit balance

Extension of premises

Core products and services

Contribution Agreements

EPRA

Bank interest

Obligatory contributions

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Unless otherwise stated, comparisons with the 2024 budget relate to the final budget for the financial year.

In order to balance the budget, the Secretariat has limited the increase in certain expenditure items, thereby taking a controlled budget risk given the cost-cutting capabilities it has demonstrated in the last few years.

2.2.1. General remarks on the managerial projects

2.2.1.1. Staff

After a period in 2023 and 2024 marked by numerous staff changes, the Observatory should be back to its full staff complement in 2025, subject to the reshuffling of some jobs. The difficulties encountered by the Department for Legal Information (DLI) in recruiting the successor to a Senior Analyst who has left the Observatory have resulted in the reclassification of his post. Pending the conclusion of the recruitment procedure, the temporary staff member taken on in September 2024 will remain in post until February 2025.

In addition, the increasing importance of IT tools and the strategy of insourcing their development in an effort to ensure efficiency and independence make it necessary to reclassify the post of Head of the IT Unit. Owing to the seniority of the incumbent, this measure is budget neutral.

Para. 2.2.2.1 sets out the changes in the staff budget.

2.2.1.2. Use of artificial intelligence

In 2024, the Observatory paved the way for the introduction of AI in two areas of the Secretariat’s work. The complexity of the projects has forced it to postpone their implementation until 2025.

The foundations of the plan to use machine translation for the IRIS Newsletter have been laid, with the introduction of a new method of remuneration for proofreaders, who will play a key role in the success of the undertaking. The 2025 budget includes the scales that will be offered to proofreaders. They may be adjusted during the year.

The impact of this measure concerns budget line 3.2 Translation and proofreading (cf. para. 2.2.2.3Error! Reference source not found.). The underlying software development is b eing carried out in-house (cf. para. 2.2.3.1).

In 2024, the Observatory has also studied solutions for automating and computerising accounting documents with the aim of improving procurement flows, accounting and the management of accounting documents, thus increasing efficiency while meeting the expectations expressed by the Board of External Auditors with regard to reliable audit

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trails. The implementation of the project is scheduled for the end of 2025 as it is not a priority, so its budget impact is very limited.

2.2.1.3. Sustainability

By further improving access to the results of its work on its website, the Observatory has completed concrete measures to reduce its carbon footprint even more: printing and the mailing of publications have been reduced to an absolute minimum by favouring electronic distribution. However, although the funds allocated to the layout and printing of publications will be reduced in 2025 the figure for postal charges has had to be increased because of the sharp price rises in 2024.

Similarly, whenever possible and appropriate, the Observatory now prefers to take part online in events to which it has been invited.

It should be noted that while it is up to the members to choose the format of Executive Council and Advisory Committee meetings the Secretariat will continue to advocate face- to-face meetings of its statutory bodies. However, in view of the cancellations recorded in 2024, this budget provides for the two meetings of the Bureau of the Executive Council to be held by videoconference.

Staff travel expenses are slightly down overall, despite the foreseeable increase in transport costs.

2.2.2. The programme of activities The Observatory’s work relies essentially both on the expertise of its team and on the network that it leads, so staff costs are the biggest expenditure item. Excluding the project to extend the premises, it is followed by the “Partnership and network” item.

2.2.2.1. Human resources

In 2025, all the jobs in the revised organisation chart resulting from the restructuring of the Secretariat should be filled.

This budget incorporates an overall increase in salary costs resulting from four factors:

◼ The salary adjustment granted to staff of the Coordinated Organisations in 2025 should reflect the level of inflation. The method used for this adjustment is to take a benchmark calculation based on salary increases in a group of reference national civil services. The Council of Europe Committee of Ministers decides on the adjustment for the Organisation.

◼ The agreement on the 2024 salary adjustment provided for a two-stage adjustment. The second, negative adjustment of -0.8%, will be made on 31 December 2024.

◼ The cost of pensions should rise significantly.

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◼ Staff grade changes and family situation also have an appreciable impact.

The proportion of staff costs in the activity budget is 2.6% higher compared with 2024. Total staff costs rise by 4%.

2.2.2.2. Department for Market Information (DMI)

The DMI’s programme of activities is based mainly on recurring projects, which is reflected in the stability of its budget. Systematic calls for tenders have enabled the department to obtain the best prices in a market where competition remains limited. The DMI intends to further improve its control of data purchasing costs by concluding framework contracts with a capped price rise clause. Finally, the department will be increasing its use of machine translation.

Translation and proofreading costs fall by 12.5%.

The data purchases budget falls by 11.4%.

Travel costs are slightly higher (2.3%).

The activities under the third Contribution Agreement make up 22.5% of the department’s resources. They accounted for a third in 2024, with a particularly high proportion of data purchases.

2.2.2.3. Department for Legal Information (DLI)

The project to machine-translate articles in the monthly newsletter IRIS – Legal Observations of the European Audiovisual Observatory will be introduced at the beginning of the year. It is based on in-house IT development and the creation of a trilingual glossary of technical terms.

The change in the method of remunerating proofreaders has led the Observatory to revise the expected gain downwards. It is nonetheless significant.

The budget takes into account a volume of translation similar to that of 2024, and the use of the incumbent partners, EMR - Institute of European Media Law and IViR - Institute for Information Law, is based on the two framework partnership agreements with these organisations.

Translation and proofreading costs fall by 13.8%.

The Partnership and network budget is back to the level of the last adopted budget (only one framework agreement was partially implemented in 2024).

Travel costs are 44% higher (+EUR 2 300) because the department will be back to its full staff complement.

The activities under the third Contribution Agreement make up 23.2% of the department’s resources, which is by and large the same proportion as in 2024.

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2.2.3. The support units The units carry out cross-department activities, supporting the work of the departments at various stages.

2.2.3.1. IT

The team consists of the head of the unit and two IT specialists with complementary backgrounds, one of whom is on 80% FTE.

The strategy launched in 2020 of insourcing IT projects has resulted in savings on IT maintenance and development costs. These savings are in addition to efficiency gains, which primarily benefit the DMI, whose activities are largely based on IT tools, and enable control to be taken of these key tools. In 2024, the unit has also developed budget preparation software, which will also handle budget monitoring in 2025, as well as the interface and glossary on which the machine translation of the IRIS newsletter will be based.

As in-house IT developments are not fixed assets, capital expenditure is now reduced to a symbolic amount. In order to better reflect the IT Unit’s work volume, the appropriations covering the unit’s staff costs, previously included in the Administration’s budget, have been transferred to the unit. These include IT staff costs as well as costs relating to the agreement between the Council of Europe’s Directorate of Information Technology (DIT) and the Observatory on staff computer workstations, which covers a number of underlying services7.

As a result of the adjustment to the scope of these services, the breakdown of appropriations covering this agreement has had to be reviewed: the proportion relating to the working environment (budget line 2.2 Office equipment) has been reduced in favour of infrastructure and security services and other tools provided by the DIT (budget line 2.6 Maintenance). The respective proportions in respect of the “Stationery and office equipment” and “Maintenance” items are now 34% and 66%, compared with 47% and 53% in 2024. The services provided by the DIT will continue to be enhanced by the introduction of AI tools. The sharp increase in the “Total cost of ownership” (TCO) partially rebilled to the Observatory, announced in 2024 and then postponed, will apply in 2025. This increase reflects the sharp rise in the cost of software licences, the strengthening of the IT security item, the renewal of workstations in connection with the Council of Europe’s “New way of working” policy, especially to facilitate remote working, and bringing into line the number of workstations invoiced with the number of Observatory staff at the end of the transition period negotiated in 2020.

The Observatory remains dependent on outside companies for very specific software: although the budget preparation and monitoring software is developed in-house, the

7 See para. 2.2.1.1on extending the scope of responsibility of the Head of the IT Unit.

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management and accounting tools, as well as certain specific applications like the planned invoice digitisation solution (see also para. 2.2.1.2), are based on proprietary software. Whenever possible, the Observatory takes advantage of the conditions of the framework contracts concluded by the Council of Europe, for example for the electronic signature solution implemented in 2024.

The budget includes a 51% increase in the costs rebilled by the Council of Europe for staff workstations and associated services, taking into account the parameters set out above and an increase in costs in line with the Syntec index. This increase mainly concerns budget line 2.6 Maintenance and explains the sharp rise in the appropriations allocated to this budget line in the activity budget.

As the Unit now has full control over a large proportion of the Observatory’s IT tools, especially the commercial interface of the online Yearbook, it can forego the modest sum of EUR 5 300 (EUR 1 800 in investments, under line 6.2 Software - purchases and development, and EUR 3 500 under line 3.3 Other services and external assistance, which covers IT services intended for providing ad hoc support to outside companies.

2.2.3.2. Visibility

The only notable change in the Visibility Unit’s budget is the inclusion in the corresponding cost-accounting section of appropriations covering the unit’s staff costs, reflecting the unit assistant’s contribution to the Administration’s work.

The unit contributes to the overall budgetary effort to minimise costs and the resources allocated to the organisation of events and promotional activities are lower. Accordingly, reception costs are down by one third. The Observatory’s efforts in the area of sustainable development (see para. 2.2.1.3) are partially outweighed here by the increase in postal charges. Only the Translation and proofreading item has been increased to take account of the rise in the number of press releases and other informative communications.

Excluding the impact of the transfer of staff costs, the visibility budget remains decreases by 5.2%).

2.2.3.3. Administration

The appropriations allocated to administration have fallen sharply both as a result of the transfer of staff appropriations to the IT and Visibility units and of the amounts covering the agreement on staff computer workstations in the IT Unit (see paras. 2.2.3.1 and 2.2.3.2 above). Excluding these technical measures, the Administration budget has increased by 10%, due almost entirely to the inclusion of funds earmarked for the project to extend the Observatory’s premises. This project has a marked impact on budget heads 2. Support costs and 6. Investments:

⎯ EUR 100 000 is entered in budget line 2.8 Rent and costs of premises.

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⎯ EUR 31 700 is entered in budget lines 6.1 IT hardware, 6.3 Office furniture and 6.4 Office equipment and installation.

The Administration also contributes to the budget process and, excluding the project to extend the premises and the increase in staff costs (see also para. 2.2.2.1), its budget remains stable (+0.4%).

Item 3.1 Translation and proofreading is down, mainly due to the foreseeable reduction in the costs of interpretation for the Executive Council meeting8. In addition, although the machine translation of the statutory bodies’ working documents is not on the agenda in view of their importance, the Secretariat does not rule out its use for test purposes

The project to extend the premises contributes to a large extent to the slight increase in the total budget.

Figure 9 – Composition of the expenses budget, 2021-2025 activity budget

8 In accordance with the Executive Council’s decision, the meeting will be held in Vienna, which will mean lower travel costs for the team of interpreters.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2021 2022 2023 2024 2025

Staff Support costs External services

Marketing Documentation Investments

Partnership and network Flexible allocation

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2.2.4. The European Platform of Regulatory Authorities The EPRA budget is approved by the EPRA Executive Board and implemented by the EPRA Secretariat. It will increase by 3.7% in 2025.

2.3. Implementation of the budget

2.3.1. Contribution Agreements Once signed, the Contribution Agreements are subject to the payment of 80% of the amount of its co-financing by the European Commission. Throughout their implementation, the Observatory carries out analytical monitoring of expenditure and calls in the balance from the Commission at the end of the contract.

It should be noted that projects co-financed by the Commission include a flat-rate allocation equivalent to a maximum of 7% of eligible expenditure to cover the administrative costs of these projects. The corresponding expenditure that this provision is meant to finance is entered directly into the Observatory’s “ordinary” budget.

2.3.2. The EPRA budget Pursuant to the Memorandum of Understanding between the Observatory and EPRA (see 1.2.3 above), the EPRA Executive Board arranges for two advances to be remitted to the Observatory, one at the beginning and one in the middle of the financial year. The final calculation of the expenditure incurred in connection with the service results in the offsetting of sums paid at the close of the accounts for the financial year. The agreement is therefore budget-neutral for the Observatory since EPRA pays all the costs associated with hosting it.

2.3.3. Role of the reserve A large proportion of the Observatory’s budget is financed by members’ compulsory contributions. Article 21 of the Financial Regulations provides that the Executive Director “shall [...] (p)rior to any commitment of the Observatory's funds [...] ensure that the funds are available under the appropriate Sub-head of the Budget”.

The implementation of the Action Plan depends to a significant extent on the proper collection of the compulsory contributions. A member’s failure to pay constitutes a risk that the Observatory takes into account in the budget in the form of a “reserve”. This groups together the expenditure allocated to specific measures that are planned for the second half of the year and whose implementation depends on a good level of collection of contributions. At the end of the deadline for the payment of the compulsory contributions (in practice at the beginning of July), if the level of collection is satisfactory

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and it considers that any incident likely to jeopardise the implementation of the budget can be ruled out, the Observatory gives the green light to the measures whose funding has been budgeted in the reserve.

Many projects require long preparation, so selecting activities for placing in the reserve is a difficult exercise. The activities concerned total EUR 87 700 and are listed in Table 10.

2.3.4. Transfers within the budget The budget is subject to analytical monitoring throughout the financial year. In accordance with established practice, the Executive Director can have transfers made between budget heads during the financial year as follows:

1. up to a maximum of 10% of the initial amount without the Executive Council’s authorisation,

2. up to a maximum of 20% of the initial amount after the Executive Council’s authorisation.

Any transfers will be included in the amending budget submitted to the Executive Council.

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3. Summary tables In accordance with the provisions of Article 16 of the Financial Regulations, the budget is presented in comparison with the last two financial years.

3.1. The total budget

Table 1. Total budget: Receipts

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1a. Credit balance 253 853,30 6,6% 202 159,14 5,1% 260 085,68 6,5% 1b. Fund extension of premises - 0,0% 0,0% 131 700,00 3,3% 2a. Income from products and services 106 500,00 2,8% 108 300,00 2,7% 107 600,00 2,7% 2b. Cofinanced projects (Contribution Agreement)

694 200,00 18,2% 699 200,00 17,5% 500 300,00 12,5% 2c. EPRA 193 800,00 5,1% 206 800,00 5,2% 214 500,00 5,3% 3. Bank interest 2 000,00 0,1% 48 000,00 1,2% 10 000,00 0,2% 4. Contributions of member states 2 571 246,70 67,3% 2 738 440,86 68,4% 2 793 214,32 69,5%

Total 3 821 600,00 100,0% 4 002 900,00 100,0% 4 017 400,00 100,0%

Table 2. Total budget: Expenses

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR %

1. Staff 2 699 200 70,7% 2 794 100 69,8% 2 901 000 72,2% 2. Support costs 241 000 6,3% 266 100 6,6% 389 900 9,7% 3. External services 322 600 8,4% 335 500 8,4% 277 500 6,9% 4. Marketing 47 100 1,2%

1,2%

49 900 1,2% 44 200 1,1% 5. Documentation 6 000 0,2 5 700 0,1% 4 800 0,1% 6. Investments 5 800 0,1% 15 100 0,4% 35 200 0,9% 7. Partnerships and network 484 900 12,7% 521 500 13,0% 349 800 8,7% 8. Flexible allocation 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 821 600 100,0% 4 002 900 100,0% 4 017 400 100,0%

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Table 3. Total budget: Expenses, breakdown by budget head

2023 Final budget

2024 Final budget

2025 budget

EUR EUR % EUR %

1. Staff 2 699 200 70,7% 2 794 100 69,8% 2 901 000 72,1%

1.1 Permanent staff - salaries, soc. charges&pensions 2 538 000 2 698 300 2 827 500

1.2 Temporary staff 155 500 75 000 61 900

1.3 Staff training 5 000

1.4 Other staff costs and recruitment costs 5 700 12 500 11 600

1.5 Trainees 3 300

2. Support costs 241 000 6,3% 266 100 6,6% 389 900 9,7%

2.1 Council of Europe services 35 200 35 200 34 800

2.2 Stationery and office equipment 36 500 48 600 42 200

2.3 Communications: telephone, fax, mailing costs 6 600 5 700 6 500

2.4 Travel 46 600 46 300 47 800

2.5 Insurances 2 600 2 900 3 000

2.6 Maintenance 59 200 69 900 95 500

2.7 Bank charges 2 200 1 600 1 400

2.8 Premises rental costs 50 900 54 000 157 000

2.9 Miscellaneous 1 200 1 900 1 700

3. External services 322 600 8,4% 335 500 8,4% 277 500 6,9%

3.1 Translation and proofreading 240 200 232 500 198 900

3.2 Layout and print 30 400 32 700 28 800

3.3 Other services and external assistance 38 400 50 900 32 800

3.4 External experts travel and accommodation costs

13 600 19 400 17 000

4. Marketing 47 100 1,2% 49 900 1,2% 44 200 1,2%

4.1 Marketing and promotion 26 100 26 200 26 600

4.2 Receptions 21 000 23 700 17 600

5. Documentation 6 000 0,2% 5 700 0,1% 4 800 0,1%

6. Investments 5 800 0,1% 15 100 0,4% 35 200 0,9%

6.1 IT Hardware 900 11 200 8 900

6.2 IT Software (purchase and development) 4 400 2 400 1 500

6.3 Office furniture 500 19 700

6.4 Office equipment&installation - Sundry investments 1 500 5 100

7. Partnership and network 484 900 12,7% 521 500 13,0% 349 800 8,7%

7.1 Partnership contracts 40 000 6 500 40 000

7.2 Collaboration with correspondents, data purchase

444 900 515 000 309 800

8. Flexible allocation for unexpected expenses 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 821 600 100,0% 4 002 900 100,0% 4 017 400 100,0%

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3.2. Activity budget

Table 4. Activity budget: Receipts

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1a. Credit balance 253 853,30 7,0% 202 159,14 5,3% 260 085,68 6,8% 1b. Fund extension of premises 0,0% 0,0% 131 700,00 3,5% 2a. Income from products and services 106 500,00 2,9% 108 300,00 2,9% 107 600,00 2,8% 2b. Cofinanced projects (Contribution

Agreement) 694 200,00 19,1% 699 200,00 18,4% 500 300,00 13,2%

3. Bank interest 2 000,00 0,1% 48 000,00 1,3% 10 000,00 0,3% 4. Contributions of member states 2 571 246,70 70,9% 2 738 440,86 72,1% 2 793 214,32 73,4%

Total 3 627 800,00 100% 3 796 100,00 100% 3 802 900,00 100%

Table 5. Activity budget: Receipts, breakdown of products and services

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

Publications and related services 75 500,00 70,9% 77 800,00 71,8% 81 600,00 75,8% Agreements (Film Market, …) 30 000,00 28,2% 25 000,00 23,1% 25 000,00 23,2% Consulting activities 4 500,00 4,2% Other services 1 000,00 0,9% 1 000,00 0,9% 1 000,00 0,9%

Total 106 500,00 100,00% 108 300,00 100,0% 107 600,00 100,0%

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Table 6. Activity budget: Receipts, breakdown of co-financed projects

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

Contribution Agreement 2 (2023) 694 200,00 100%

Grant European Commission 659 500,00

Cofinancing Fund 34 700,00

Contribution Agreement 3 (2024-2025) 699 200,00 100% 500 300,00 100,0%

Grant European Commission 664 400,00 475 100,00

Cofinancing Fund 34 800,00 25 200,00

Total

694 200,00 100% 699 200,00 100% 500 300,00 100,0%

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Table 7. Activity budget: Breakdown of members’ contributions

2023 Final budget

2024 Final budget

2025 Budget

% scale CoE RES(94)31

EUR % scale CoE RES(94)31

EUR % scale CoE RES(94)31

EUR

Albania 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Armenia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Austria 1,5046 38 686,98 1,4798 40 523,45 1,4507 40 521,16 Belgium 1,8182 46 750,41 1,8096 49 554,83 1,7925 50 068,37 Bosnia and Herzegovina 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Bulgaria 0,3383 8 698,53 0,3478 9 524,30 0,3564 9 955,02 Croatia 0,2578 6 628,68 0,2587 7 084,35 0,2601 7 265,15 Cyprus 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Czechia 0,9460 24 323,99 0,9537 26 116,51 0,9574 26 742,23 Denmark 1,1718 30 129,87 1,1743 32 157,51 1,1794 32 943,17 Estonia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Finland 0,9215 23 694,04 0,9113 24 955,41 0,8914 24 898,71 France 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Georgia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Germany 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Greece 0,8130 20 904,24 0,7878 21 573,44 0,7725 21 577,58 Hungary 0,6628 17 042,22 0,6693 18 328,39 0,6622 18 496,67 Iceland 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Ireland 1,2999 33 423,64 1,3729 37 596,06 1,4480 40 445,74 Italy 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Latvia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Liechtenstein 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Lithuania 0,2175 5 592,46 0,2241 6 136,85 0,2317 6 471,88 Luxembourg 0,2270 5 836,73 0,2332 6 386,04 0,2346 6 552,88 Malta 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Montenegro 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Netherlands 3,0611 78 708,43 3,0583 83 749,74 3,0462 85 086,89 North Macedonia 0,1460 3 754,02 0,1460 3 998,12 0,1460 4 078,09 Norway 1,3023 33 485,35 1,3044 35 720,22 1,4208 39 685,99 Poland 2,5045 64 396,87 2,5357 69 438,65 2,5518 71 277,24 Portugal 0,9040 23 244,07 0,8914 24 410,46 0,8767 24 488,11 Romania 1,1098 28 535,70 1,1266 30 851,28 1,1398 31 837,06 Slovak Republic 0,4208 10 819,81 0,4198 11 495,98 0,4166 11 636,53 Slovenia 0,2016 5 183,63 0,2035 5 572,73 0,2022 5 647,88 Spain 4,9889 128 276,93 4,8539 132 921,18 4,7144 131 683,30 Sweden 1,8194 46 781,26 1,8392 50 365,41 1,8329 51 196,83 Switzerland 2,3519 60 473,15 2,3753 65 046,19 2,3708 66 221,53 Türkiye 3,8526 99 059,85 3,8417 105 202,68 3,8741 108 211,92 United Kingdom 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 European Union 12,9000 331 690,82 12,9000 353 258,87 12,9000 360 324,65 Morocco 1,0527 27 067,52 1,0757 29 457,41 1,0648 29 742,15

Total 100% 2 571 246,70 100% 2 738 440,86 100% 2 793 214,32

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Table 8. Activity budget: Expenses

2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR % 1. Staff 2 531 400 69,8% 2 613 800 68,9% 2 717 500 71,3% 1.1 Permanent staff salaries, soc. charges&pensions 2 370 200 2 518 000 2 694 400 1.2 Temporary staff 155 500 75 000 11 500 1.3 Staff training 5 000 1.4 Other staff costs and recruitment costs 5 700 12 500 11 600 1.5 Trainees 3 300 2. Support costs 224 800 6,2% 248 100 6,5% 368 000 9,7% 2.1 Council of Europe services 35 200 35 200 34 800 2.2 Stationery and office equipment 33 900 45 200 39 300 2.3 Communications: telephone, fax, mailing costs 6 400 5 500 6 400 2.4 Travel 40 100 38 900 38 200 2.5 Insurances 2 500 2 800 2 900 2.6 Maintenance 55 900 66 300 89 500 2.7 Bank charges 2 100 1 500 1 300 2.8 Premises rental costs 47 700 51 000 154 100 2.9 Miscellaneous 1 000 1 700 1 500 3. External services 312 800 9,0% 327 000 8,6% 268 400 7,1% 3.1 Translation and proofreading 238 700 231 300 197 700 3.2 Layout and print 30 300 32 500 28 600 3.3 Other services and external assistance 33 200 46 800 28 900 3.4 External experts travel and accommodation

costs 10 600 16 400 13 200

4. Marketing 47 100 1,4% 49 900 1,3% 44 200 1,2% 4.1 Marketing and promotion 26 100 26 200 26 600 4.2 Receptions 21 000 23 700 17 600 5. Documentation 6 000 0,2% 5 700 0,2% 4 800 0,1% 6. Investments 5 800 0,2% 15 100 0,4% 35 200 0,9% 6.1 IT Hardware 900 11 200 8 900 6.2 IT Software (purchase and development) 4 400 2 400 1 500 6.3 Office furniture 500 19 700 6.4 Office equipment&installation - Sundry investments 1 500 5 100 7. Partnership and network 484 900 12,9% 521 500 13,7% 349 800 9,2% 7.1 Partnership contracts 40 000 6 500 40 000 7.2 Collaboration with correspondents, data purchase 444 900 515 000 309 800 8. Flexible allocation for unexpected expenses 15 000 0,4% 15 000 0,4% 15 000 0,4%

Total 3 627 800 100,0% 3 796 100 100,0% 3 802 900 100,0%

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Table 9. Activity budget: Expenses, breakdown by cost accounting section (1)

EUR M ar

ke t

in fo

rm at

io n

Le ga

l in

fo rm

at io

n

Tr an

sv er

sa l

& s

up po

rt

pr oj

ec ts

Vi si

bi lit

y

IT

Ad m

in is

tr at

io n

Su bt

ot al

1. Staff 753 800 593 200 125 500 255 300 659 200 2 387 000 1.1 Permanent staff salaries, soc. charges&pensions 753 800 584 900 122 300 255 300 647 600 2 363 900 1.2 Temporary staff 8 300 3 200 11 500 1.3 Staff training 1.4 Other staff costs and recruitment

costs 11 600 11 600

1.5 Trainees 2. Support costs 13 300 7 500 17 900 118 400 210 900 368 000 2.1 Council of Europe services 34 800 34 800 2.2 Stationery and office equipment 1 500 36 700 1 100 39 300 2.3 Communications: telephone, fax,

mailing costs 4 200 2 200 6 400

2.4 Travel 13 300 7 500 12 200 5 200 38 200 2.5 Insurances 2 900 2 900 2.6 Maintenance 81 700 7 800 89 500 2.7 Bank charges 1 300 1 300 2.8 Premises rental costs 154 100 154 100 2.9 Miscellaneous 1 500 1 500 3. External services 21 700 160 200 1 000 16 000 11 400 48 900 259 200 3.1 Translation and proofreading 8 200 144 300 1 000 9 600 28 600 191 700 3.2 Layout and print 13 500 9 700 3 900 1 500 28 600 3.3 Other services and external

assistance 100 700 11 400 13 500 25 700

3.4 External experts travel and accommodation costs

6 100 1 800 5 300 13 200 4. Marketing 400 3 400 33 000 7 400 44 200 4.1 Marketing and promotion 400 26 200 26 600 4.2 Receptions 3 400 6 800 7 400 17 600 5. Documentation 4 800 4 800 6. Investments 11 500 23 700 35 200 6.1 IT Hardware 8 900 8 900 6.2 IT Software (purchase and

development) 1 500 1 500

6.3 Office furniture 19 700 19 700 6.4 Office equipment&installation - Sundry investments 1 100 4 000 5 100 7. Partnership and network 171 700 50 200 221 900 7.1 Partnership contracts 40 000 40 000 7.2 Collaboration with correspondents, data purchase 171 700 10 200 181 900 8. Flexible allocation for unexpected

expenses 15 000 15 000

Total 960 900 814 500 5 800 192 400 396 600 965 100 3 335 300 (See following page)

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Activity budget: Expenses, breakdown by cost accounting section (2)

EUR Co nt

rib ut

io n

Ag re

em en

t 3

To ta

l a ct

iv ity

bu

dg et

1. Staff 330 500 2 717 500 1.1 Permanent staff salaries, soc. charges&pensions 330 500 2 694 400 1.2 Temporary staff 11 500 1.3 Staff training 1.4 Other staff costs and recruitment costs 11 600 1.5 Trainees 2. Support costs 368 000 2.1 Council of Europe services 34 800 2.2 Stationery and office equipment 39 300 2.3 Communications: telephone, fax, mailing

costs 6 400

2.4 Travel 38 200 2.5 Insurances 2 900 2.6 Maintenance 89 500 2.7 Bank charges 1 300 2.8 Premises rental costs 154 100 2.9 Miscellaneous 1 500 3. External services 9 200 268 400 3.1 Translation and proofreading 6 000 197 700 3.2 Layout and print 28 600 3.3 Other services and external assistance 3 200 28 900 3.4 External experts travel and accommodation

costs 13 200

4. Marketing 44 200 4.1 Marketing and promotion 26 600 4.2 Receptions 17 600 5. Documentation 4 800 6. Investments 35 200 6.1 IT Hardware 8 900 6.2 IT Software (purchase and development) 1 500 6.3 Office furniture 19 700 6.4 Office equipment&installation - Sundry investments 5 100 7. Partnership and network 127 900 349 800 7.1 Partnership contracts 40 000 7.2 Collaboration with correspondents, data purchase 127 900 309 800 8. Flexible allocation for unexpected expenses 15 000

Total 467 600 3 802 900

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Table 10. Activity budget: Expenses, breakdown of the reserve

Department/Unit Project / Activity Reserve Part in

reserve EUR

Market Information Report on Investments of AV services in original European content

17 900 100%

Staff missions 1 300 12%

Legal Information Collaboration with correspondents, purchase of data 2 000 35%

Translation and proofreading of IRIS publication(s) 34 500 37%

Legal workshop 10 200 100%

Staff missions 1 400 19%

Transversal projects Subscriptions to professional magazines 500 10%

Visibility Printing of institutional brochures 1 200 100%

Conference in Brussels 9100 100%

Printing and distribution of visibility material 1 000 100%

IT Assistance to IT projects 2 900 100%

Administration Staff missions 700 13%

Flexible allocation 5 000 33%

Total 87 700

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3.3. Special budget

Table 11. Special budget: Receipts

2023

Final budget 2024

Final budget 2025

Budget EUR % EUR % EUR %

EPRA 193 800 100% 206 800 100% 214 500 100%

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Table 12. Special budget: Expenses

EPRA 2023 Final budget

2024 Final budget

2025 Budget

EUR % EUR % EUR %

1. Staff 167 800 86,6% 180 300 87,2% 183 500 85,5% 1.1 Permanent staff salaries, soc. charges&pensions 167 800 180 300 133 100 1.2 Temporary staff 50 400 1.3 Staff training 1.4 Other staff costs and recruitment costs 1.5 Trainees 2. Support costs 16 200 8,4% 18 000 8,7% 21 900 10,2% 2.1 Council of Europe services 2.2 Stationery and office equipment 2 600 3 400 2 900 2.3 Communications: telephone, fax, mailing costs 200 200 100 2.4 Travel 6 500 7 400 9 600 2.5 Insurances 100 100 100 2.6 Maintenance 3 300 3 600 6 000 2.7 Bank charges 100 100 100 2.8 Premises rental costs 3 200 3 000 2 900 2.9 Miscellaneous 200 200 200 3. External services 9 800 5,1% 8 500 4,1% 9 100 4,2% 3.1 Translation and proofreading 1 500 1 200 1 200 3.2 Layout and print 100 200 200 3.3 Other services and external assistance 5 200 4 100 3 900 3.4 External experts travel and accommodation

costs 3 000 3 000 3 800

4. Marketing 4.1 Marketing and promotion 4.2 Receptions 5. Documentation 6. Investments 6.1 IT Hardware 6.2 IT Software (purchase and development) 6.3 Office furniture 6.4 Office equipment&installation - Sundry investments 7. Partnership and network 7.1 Partnership contracts 7.2 Collaboration with correspondents, data purchase 8. Flexible allocation for unexpected expenses

Total 193 800 100,0% 206 800 100,0% 214 500 100,0%

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3.4. Staffing table

3.4.1. Posts and positions In 2025, the staff complement will remain at 28. On 1 January, the Observatory will have 23 staff employed on permanent contracts, four junior analysts recruited in 2023 under the Young Professionals programme on contracts limited to a total of four years, and one temporary staff member, pending the completion of a recruitment procedure.

3.4.2. Assignments For budget monitoring purposes, the cost of each individual is assigned to a cost centre (Department or Unit).

The following table shows the cost-centre allocation of the costs of each member of staff. The contribution of staff participating in the activities of the Contribution Agreement (co-financed project) included in the budget is indicated by the words “Part. (participation) CA3” in brackets. When the budget is implemented, the time spent by these staff on Contribution Agreement activities is subject to precise analytical tracking by profile and activity.

Within the activity budget, the third Contribution Agreement finances a total of 27 person months of Analysts, i.e. 2.25 staff, 90% of a Senior Analyst and 46% of an IT Project Assistant, as well as the time devoted to the project by the heads of department and the IT Officer.

EPRA covers all its staff budget costs.

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Table 13. Staffing table9

(1) Department/ Unit

Job Grade Profile Allocation Durati on (mont hs

1 Administration Executive Director A5 Permanent OBS - ADM 12

2 Administration Administrative assistant B3 Permanent OBS - ADM 12

3 Administration Head of Administration A1/A2/A3 Permanent OBS - ADM 12

4 Administration Accountant-assistant B3 Permanent OBS - ADM 12

5 Administration Administrative assistant B3 Permanent OBS - ADM 12

6 DLI Head of Department A4 Permanent OBS - DLI (Part. AC3)

12

7 DLI Deputy Head of Department A1/A2/A3 Permanent OBS - DLI (Part. AC3)

12

8 DLI Legal advisor A1/A2/A3 Permanent (Vacant)10

OBS - DLI (Part. AC3)

12

9 DLI Junior Analyst B3 Junior professional

OBS - DLI (Part. AC3)

12

10 DLI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

12

11 DLI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

6

12 DLI Administrative assistant B3 Permanent OBS - DLI 12

13 DMI Head of Department A4 Permanent OBS - DMI (Part. AC3)

12

14 DMI Deputy Head of Department A1/A2/A3 Permanent OBS - DMI (Part. AC3)

12

15 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

16 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

17 DMI Senior Analyst B5 Permanent OBS - DMI (Part. AC3)

12

18 DMI Analyst B4 Permanent OBS - DMI (Part. AC3)

12

(continued on next page)

9 Situation at 1 January 2025. 10 The recruitment procedure, launched in 2024, will be completed in 2025. A temporary member of staff has been carrying out some of the tasks since September 2024.

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(2) Department/ Unit

Job Grade Profile Allocation Durati on (mont hs

19 DMI Analyst B4 Permanent OBS - DMI (Part. AC3)

12

20 DMI Junior Analyst B3 Junior professional

AC3 - AC3 (Part. AC3)

12

21 DMI Administrative assistant B3 Permanent OBS - DMI 12

22 IT Responsible for Information Technology B511 Permanent OBS - IT (Part. AC3)

12

23 IT IT assistant (80% FTE) B4 Permanent OBS - IT (Part. AC3)

12

24 IT IT assistant B4 Permanent OBS - IT (Part. AC3)

12

25 Visibility Responsible for Communication, Press & PR

B5 Permanent OBS - VIS 12

26 Visibility Administrative assistant B3 Permanent OBS VIS/ADM 12

27 EPRA EPRA Secretary B5 Permanent EPRA 12

28 EPRA Assistant to the EPRA Secretary B4 Permanent (Vacant)12

EPRA 12

11 The post will be reclassified at grade A1/A2/A3 in 2025 with no impact on the 2025 budget. 12 A recruitment procedure to replace the incumbent will be launched at the end of 2024. A temporary member of staff will take on some of the tasks.