CHAPTER 5

COMMON COSTS

Definition of common costs and periods for eligibility
Article 15
1
The common costs listed in Annex I shall be at the expense of Athena whenever they are incurred. When entered in an article of the budget showing the operation to which they are most related, they shall be regarded as operational costs of that operation. Otherwise, they shall be regarded as common costs incurred in preparation for, or following, operations.
2
Furthermore, Athena shall bear the operational common costs listed in Annex II during the period from the approval of the crisis management concept for the operation until the appointment of the operation commander. In particular circumstances, after the PSC has been consulted, the Special Committee may modify the period during which these costs shall be borne by Athena.
3
During the active phase of an operation, which runs from the date on which the operation commander is appointed to the day on which the operation headquarters ceases its activity, Athena shall bear as operational common costs:
a
the common costs listed in Part A of Annex III;
b
the common costs listed in Part B of Annex III, when the Council so decides;
c
the common costs listed in Part C of Annex III, when the operation commander so requests and if the Special Committee approves it.
4
During the active phase of a military supporting action, as determined by the Council, Athena shall bear as operational common costs the common costs defined by the Council on a case-by-case basis by reference to Annex III.
5
The operational common costs of an operation also include the expenditure necessary to wind it up, as listed in Annex IV.
The operation is wound up when the equipment and infrastructure commonly funded for the operation have found their final destination and the accounts for the operation have been approved.
6
No expenditure incurred with a view to covering costs which would in any case have been borne by one or more contributing States, a Union institution or an international organisation, independently of the organisation of an operation, may be eligible as a common cost.
7
The Special Committee may decide on a case-by-case basis that, in view of particular circumstances, certain incremental costs other than those listed in Part B of Annex III shall be regarded as common costs for one given operation during its active phase.
8
If unanimity cannot be achieved in the Special Committee, the latter may, at the initiative of the Presidency, refer the question to the Council.

Exercises
Article 16
1
The common costs of the Union's exercises shall be financed through Athena following the rules and procedures similar to those for operations to which all participating Member States contribute.
2
These exercise common costs shall be composed of, firstly, incremental costs for deployable or fixed headquarters and, secondly, incremental costs incurred by the Union recourse to NATO common assets and capabilities when made available for an exercise.
3
Exercise common costs shall not include costs related to:
a
capital acquisitions, including those related to buildings, infrastructure and equipment;
b
the planning and preparatory phase of exercises, unless approved by the Special Committee;
c
transport, barracks and lodging for forces.

Reference amount
Article 17
Any Council decision by which the Council decides to establish or extend a Union military operation shall contain a reference amount for the common costs of that operation. The administrator shall, with the support in particular of the Union military staff and, if he or she is in office, the operation commander, evaluate the amount judged necessary to cover the common costs of the operation for the planned period. The administrator shall propose this amount through the Presidency to the Council body responsible for examining the draft decision. The members of the Special Committee shall be invited to the discussions of this body concerning the reference amount.