Joint Action 2004/551/CFSP provides that the financial provisions applicable to the general budget shall be approved by the Council, acting by unanimity. The Steering Board shall, within one year of the adoption of that Joint Action review and amend these provisions, as necessary.

Joint Action 2004/551/CFSP furthermore provides that the Steering Board, acting on a proposal from the Chief Executive, shall as necessary adopt the implementing rules regarding the implementation and control of the general budget, notably as regards public procurement, without prejudice to relevant Community rules. The Steering Board shall ensure, in particular, that security of supply and protection both of defence secret and intellectual property rights requirements are taken into account in a proper manner.

The financial provisions and rules referred to in the Annex are not applicable to ad hoc projects and programmes as referred to in Articles 20 and 21 of Joint Action 2004/551/CFSP. The Steering Board should endeavour to establish provisions and rules for ad hoc projects and programmes.

The European Defence Agency's initial general budget for 2004 is focused on start- up arrangements and financial provisions should be provided without delay to allow for its smooth implementation,