Challenges of institutional changes in Europe ______

1. 19th Annual FAA / JAA International Conference Challenges of institutional changes in Europe ______ Establishing the European Aviation Safety Agency or Building on proved expertise and achievements ______ C. ProbstEuropean Commission

2. Presentation Plan to put in place the organisational, regulatory and human infrastructure. - Building the house: - Moving into the house: to transfer actually certification and oversight tasks from JAA/NAAs to the Agency. This paper concentrates on airworthiness / continued airworthiness.

3. Building the house 1) Rule-making process (art. 43) The Executive Director is obliged to follow a standardised process set by the Management Board (ARAC, NPRM, working groups?): Aim to ensuring transparency and proper involvement of regulated persons without affecting independence of the regulators. Should be adopted by the end of the year to process new EU regulations and advisory material.

4. Building the house 2) The new EU regulatory material - Implementing Rules (IR) - include technical requirements and administrative procedures binding on regulated persons and national administrations. IR 21, 34, 36, 39,… to be adopted by the Commission by July 2003. - Airworthiness codes - Agency’s specifications representing its own interpretation of the essential requirements. To be adopted by the Agency by July 2003. - Advisory and guidance material - Best practices and means of compliance. To be adopted by the Agency by July 2003.

5. Building the house 3) Agency implementation procedures (art. 44) EASA regulation requires the Management Board to adopt the administrative procedures to be followed by the Agency when checking conformity with the essential requirements and its own technical specifications. Procedure based on best practices to be adopted in July 2003.

6. Building the house 4) The inspection / standardisation system To ensure uniform implementation of EU law and real equivalence of approvals / certificates, national administrations are subject to common inspection. Procedures to be adopted by the Commission on the basis of best practices (peer review, internal / external audit) during the second half of 2003.

7. Building the house 5) Staffing Work being done on structure and staffing of the Agency for discussions of the budget by the Management Board in October 2002. Local offices / in house staffing / externalisation of tasks are parts of the equation. Negotiations to take place with national administrations to find a balance allowing the Agency to hire its own staff while maintaining sufficient resources at national level for Member States to execute their own tasks.

8. Moving into the house 1) New and on-going certification tasks a) European products Certification teams, composed of Agency or seconded national experts, work for the Agency which issues the certificates. Existing teams continue their work under Agency authority; contractual link with national administrations to be discussed. Keeping a JAA-type co-ordination under Agency auspices to be discussed for a transitional period. b) Imported products Validation by the Agency under a bilateral agreement between the Community and the third country concerned.

9. Moving into the house 2) The transfer of type certificates Type certificate to be re-issued by the Agency on the basis of State of design TC (or reference TC for imported product). Other designs approved by Member States considered acceptable changes to reference TC and are aggregated in EASA re-issued TC.

10. The transfer of type certificates In that case responsibility for non-transferred products remain with national authorities (maximum 42 months). JAA co-ordination to be maintained for those products. Transition scheme to be discussed bearing in mind that: - transfer to the Agency of the oversight of imported products is facilitated by a bilateral agreement; - continued oversight of European products by their State of design is easier to accept by third country partners.

11. The transfer of type certificates This process is: - time and resources consuming - confusing the sharing of roles during the transition - imposing on Member States responsibilities they may not be willing or able to accept

12. The transfer of type certificates Another option based on grand-fathering existing type certificates to be examined: - IR 21 confirms the validity of TC issued by Member States - Agency to re-issue its own TC if and when it sees fit

13. Moving into the house 3) The transfer of parts and appliances approval Design approved by the Agency. Conformity assessment done at national level. The transfer strategies mentioned before are equally valid for parts and appliances.

14. Moving into the house 4) The transfer of design organisations approvals DOAs issued by the Agency, except if bilateral agreement specifies differently. Transfer to be discussed taking into account strategy decided for the transfer of products. Grand-fathering attractive to holders.

15. Conclusion - Work for building the house is well under way. Target of summer 2003 shall be met. Most challenging point is staffing. - Moving into the house is however much more difficult. Strategy for transfer of responsibilities and tasks to be decided before the end of the year.

16. Conclusion - There should be no safety gap; - The exercise of Community powers should not be unduly postponed; - The burden on the industry should be minimum; - There should be no confusion of roles and responsibilities; - Recognised experts should be able to continue doing what they currently do, within arrangements which best suit them and the efficiency of the new system; - JAA-type co-ordination, managed by the Agency, can be maintained during a limited period of time to facilitate building confidence in the new system.