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            COUNCIL REGULATION (EC) No 1084/2006

of 11 July 2006         

establishing a Cohesion Fund and repealing Regulation (EC) No 1164/94

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 161(2) thereof,

Having regard to the proposal from the Commission,

Having regard to the assent of the European Parliament (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Having regard to the opinion of the Committee of the Regions (3),

Whereas:

HAS ADOPTED THIS REGULATION:

Article 1

Establishment and purpose of the Cohesion Fund

1.   A Cohesion Fund (hereinafter referred to as ‘the Fund’) is hereby established for the purpose of strengthening the economic and social cohesion of the Community in the interests of promoting sustainable development.

2.   The Fund shall be governed by Regulation (EC) No 1083/2006 and by this Regulation.

Article 2

Scope of assistance

1.   Assistance from the Fund shall be given to actions in the following areas, ensuring an appropriate balance, and according to the investment and infrastructure needs specific to each Member State receiving assistance:

2.   The appropriate balance of assistance shall be agreed in partnership between Member States and the Commission.

Article 3

Eligibility of expenditure

The following expenditure shall not be eligible for a contribution from the Fund:

Article 4

Conditions applying to access to Fund assistance

1.   Assistance from the Fund shall be conditional on the following rules:

it may decide to suspend either the totality or part of the commitments from the Fund for the Member State concerned with effect from 1 January of the year following the decision to suspend.

2.   If the Council establishes that the Member State concerned has taken the necessary corrective action, it shall decide, without delay, to lift the suspension of the commitments concerned. At the same time, the Council shall decide, on a proposal from the Commission, to re-budget the suspended commitment in accordance with the procedure set out in the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management (8).

3.   The Council shall take the decisions referred to in paragraphs 1 and 2 by qualified majority on a proposal from the Commission.

Article 5

Transitional provisions

1.   This Regulation shall not affect either the continuation or the modification, including the total or partial cancellation, of project or other forms of assistance approved by the Commission on the basis of Regulation (EC) No 1164/94, which shall consequently apply thereafter to that assistance or the projects concerned until their closure.

2.   Applications for major projects within the meaning of Articles 39, 40 and 41 of Regulation (EC) No 1083/2006 made to the Commission under Regulation (EC) No 1164/94 shall remain valid provided that such applications are supplemented, where necessary, so as to comply with the requirements of this Regulation and the abovementioned Articles of Regulation (EC) No 1083/2006 within not more than two months as of 1 January 2007.

Article 6

Repeal

1.   Without prejudice to the provisions of Article 105(1) of Regulation (EC) No 1083/2006 and Article 5 of this Regulation, Regulation (EC) No 1164/94 is hereby repealed with effect from 1 January 2007.

2.   References to the repealed Regulation shall be construed as references to this Regulation.

Article 7

Review

The Council shall review this Regulation by 31 December 2013 at the latest in accordance with Article 161 of the Treaty.

Article 8

Entry into force

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels, 11 July 2006.

For the Council

The President

E. HEINÄLUOMA            

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(1)  Assent of 4 July 2006 (not yet published in the Official Journal).

(2)OJ C 255, 14.10.2005, p. 88.

(3)OJ C 231, 20.9.2005, p. 35.

(4)  See p. 25 of this Official Journal.

(5)OJ L 130, 25.5.1994, p. 1. Regulation as last amended by the 2003 Accession Act.

(6)OJ L 228, 9.9.1996, p. 1. Decision as last amended by Decision No 884/2004/EC (OJ L 167, 30.4.2004, p. 1).

(7)OJ L 209, 2.8.1997, p. 1. Regulation as last amended by Regulation (EC) No 1055/2005 (OJ L 174, 7.7.2005, p. 1).

(8)OJ C 139, 14.6.2006, p. 1.

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