# EUR-Lex - 52011PC0610 - EN

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# 52011PC0610

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) as regards the clarification, simplification and improvement of the establishment and implementation of such groupings /* COM/2011/0610 final - 2011/0272 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The proposal is the second part of the
fulfilment by the Commission of the obligation imposed by Article 17 of
Regulation (EC) No 1082/2006. On 29 July 2011, the Commission transmitted a Report
on the application of the Regulation[1].
The report identified areas that could be improved and this draft amending Regulation
embodies the specific changes that will effect those improvements.

The philosophy behind the changes can be
expressed in three keywords: Continuity; Clarity; Flexibility.

–
Continuity:
because the basic nature of an EGTC will not be changed and no existing EGTC
should need to change its statutes or ways of operating;

–
Clarity: because
the Regulation will be modified (a) to take account of the Lisbon Treaty, (b)
to simplify and clarify certain aspects that have been shown to cause confusion
and (c) to ensure more visibility and communication on the formation and
operation of EGTCs;

–
Flexibility: by
opening up EGTCs to any aspect of territorial cooperation (and not ‘primarily’
the managing of ERDF-funded programmes and projects) and by providing legal
bases for the participation of authorities and regions from third countries to
participate as members.

2.           RESULTS OF CONSULTATIONS WITH THE
INTERESTED PARTIES

This Regulation draws on extensive
consultation with stakeholders, including Member States, regions and members of
existing and planned EGTCs. The Committee of the Regions, which operates a
‘Platform’ for the exchange of information on EGTCs[2], has been a particularly
valuable partner. Among the specific events that have contributed to the
findings of the Report and the content of the present proposals are: a wide
consultation of all stakeholders conducted in cooperation with the Committee of
the Regions on the operation and added value of the EGTC instrument[3], the European Conference on
European Groupings of Territorial Cooperation (EGTCs) on 27 and 28 January
2011, the Conference on EGTC and Multi-level Governance organised by the
Hungarian Presidency on 21-23 March 2011 and a number of meetings with
committees and groups of the European Parliament, most recently on 22 June
2011.

The message from all groups, and most
especially the active EGTCs and those under preparation, was clear: the
instrument is useful and has potential going beyond its anticipated functions,
but the procedures for operating and especially setting up EGTCs are more
complex and uncertain than they should be.

While the Committee of the Regions in its
opinion adopted in January 2011[4]
suggested that financial and other incentives might be used to promote usage of
EGTCs, and some active groupings endorsed this, the Commission is of the
opinion that recourse to an EGTC should be a free and unbiased choice of the
parties concerned, without specific incentives beyond the inherent utility of
the instrument.

3.           LEGAL ELEMENTS OF THE PROPOSAL

Article 175 of the Treaty on the Functioning
of the European Union (TFEU) invites the Council to adopt such specific actions
as may be necessary to promote economic, social and territorial cohesion.

Articles 209 and 212 allow the European
Parliament and Council to adopt measures allowing cooperation, whether for
development purposes or not, with third countries.

4.           BUDGETARY IMPLICATION

The EGTC Regulation is not a financial
regulation and carries no budgetary implications for the Union or for Member
States. EGTCs may be funded by local, regional or national funds and may carry
out actions that are co-funded by European funds.

5.           SUMMARY OF CONTENT OF THE REGULATION

This amending Regulation makes changes, on
the one hand, to respect the terminology introduced by the Treaty on the
Functioning of the European Union and on the other hand in response to the
weaknesses and areas of potential improvement identified in the Report referred
to above.

These changes concern the Membership,
the content of the Convention and Statutes of an EGTC, its purpose,
the process of approval by national authorities, applicable law for employment
and for procurement, approach for EGTCs whose members have different liability
for their actions and more transparent procedures for communication.

On Membership, new legal bases are employed
to permit regions and bodies in non-Member States to be members of an EGTC,
whether the other members are from one or many Member States. The eligibility
of membership of bodies under private law is also clarified.

The convention and statutes of an EGTC are
re-defined and the distinction in approval procedure underlined.

The criteria for approval or rejection by
national authorities are specified, and a limited time for examination proposed
(this is the single most frequently heard complaint from existing and planned
EGTCs).

Solutions, in line with the acquis of
the Union, are proposed for tax and social security regimes for employees of an
EGTC, who may be employed in any of the Member States whose territories
comprise the EGTC. A similar approach is proposed for procurement rules.

And for liability, where some local or
regional bodies are required by their national laws to have limited liability
and others, in different Member States, are required to have unlimited
liability, an insurance-based solution modelled on that used for European
Research Infrastructure Consortia (ERIC)[5]
is proposed.

Finally, Member States will be required to
inform the Commission of any provisions adopted to implement the EGTC
Regulation, as amended, and each newly established EGTC should inform the
Commission of its purpose and membership, for publication in the Official
Journal (C Series).

2011/0272 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Regulation (EC) No 1082/2006 of
the European Parliament and of the Council of 5 July 2006 on a European
grouping of territorial cooperation (EGTC) as regards the clarification,
simplification and improvement of the establishment and implementation of such
groupings

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular the third subparagraph of Article 175
in conjunction with Articles 209(1) and 212(1) thereof,

Having regard to the proposal of the
European Commission,

After transmission of the draft legislative
act to the national Parliaments,

Having regard to the Opinion of the
European Economic and Social Committee[6],

Having regard to the Opinion of the
Committee of the Regions[7],

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
In accordance with Article 17 of Regulation (EC)
No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a
European grouping of territorial cooperation (EGTC)[8] (hereinafter the 'EGTC
Regulation'), the Commission adopted on 29 July 2011 the "Report from the
Commission to the European Parliament and the Council - The
application of the Regulation (EC) No 1082/2006 on a European Grouping of
Territorial Cooperation (EGTC)"[9].

(2)
In that Report, the Commission announced its
intention to propose a limited number of modifications to the EGTC Regulation
to facilitate the establishment and operation of EGTCs, as well as
clarification of certain existing provisions. Obstacles to establishing new
EGTCs should be removed while maintaining continuity in and facilitating the
operation of existing ones, thus allowing more extensive use of EGTCs to
contribute to better cooperation and policy coherence among public bodies
without additional burden on national or European administrations.

(3)
The creation of an EGTC is a matter to be
decided by its members and their national authorities, and is not automatically
associated with any legal or financial advantages at the Union level.

(4)
The Treaty of Lisbon has added the territorial
dimension to Cohesion Policy and replaced "Community" by the
"Union". The new terminology should therefore be introduced into the
EGTC Regulation.

(5)
Experience with EGTCs set up so far shows that
the new legal instrument is also being used for cooperation in the
implementation of other European policies. The efficiency and effectiveness of
EGTCs should be enhanced by broadening the nature of EGTCs.

(6)
EGTCs operate by nature in more than one Member
State. Consequently, while Article 2(1) of the EGTC Regulation before amendment
allows that the convention and statutes may state the applicable law on certain
issues and while such statements privilege - within the hierarchy of
applicable law laid down in that Article - the national laws of the
Member State where the EGTC has its registered office, this should be
clarified. At the same time, the provisions on applicable law should be
extended to the acts and activities of an EGTC.

(7)
Differing status of local and regional bodies in
different Member States results in the fact that competences may be regional on
one side of a border, but national on the other side, especially in smaller or
centralised Member States. Consequently, it should be clarified that national
authorities may become members of an EGTC alongside the Member State.

(8)
While point (d) of Article 3(1) of the EGTC
Regulation allows that bodies established under private law may become members
of an EGTC provided that they are considered as being 'public law bodies' in
terms of Article 1(9) of Directive 2004/18/EC of the European Parliament and of
the Council of 31 March 2004 on the coordination of procedures for the
award of public works contracts, public supply contracts and public service
contracts[10],
EGTCs may be used in the future to manage jointly public services of general
economic interest or infrastructures. Other private or public law actors may therefore
also become members of an EGTC. Consequently, 'public undertakings' within the
meaning of Article 2(1)(b) of Directive 2004/17/EC of the European Parliament
and of the Council of 31 March 2004 coordinating the procurement
procedures of entities operating in the water, energy, transport and postal
services sectors[11]
should be covered as well.

(9)
The third subparagraph of Article 175 of the
Treaty does not foresee the inclusion of entities from third countries in
legislation based on that provision. The EGTC Regulation did not explicitly
exclude the possibility of entities from third countries to participate in an
EGTC formed in accordance with this Regulation where the legislation of a third
country or agreements between Member States and third countries so allow.

(10)
Experience shows that the involvement of
authorities or other bodies from third countries equivalent to those eligible
inside the Member States has given rise to implementation difficulties.
However, such involvement in EGTCs set up by members drawn from two or more
Member States constitutes only an ancillary element to the cooperation inside
the Union and between Member States. Consequently, such involvement should be
clarified without recourse to a different legal basis in the Treaty.

(11)
Since 1990, European territorial cooperation has
been supported by financial instruments under Cohesion policy and in this
context cooperation has always been possible in a limited number of cases
between only one Member State and a third country. Consequently, the legal
instrument EGTC should also be opened to such a cooperation context.

(12)
Taking into account that, for the 2014 to 2020
period, there will be a special additional allocation for the cooperation of the
outermost regions of the Union, alongside authorities and bodies from third
countries, authorities and bodies from overseas countries and territories as
listed in Annex II to the Treaty ('overseas territories') should also be
involved. Such cooperation is permitted by Article 203 of the Treaty.

(13)
The EGTC Regulation distinguished between the
convention laying down the constitutive elements of the future EGTC and the
statutes setting out the implementation elements. However, the statutes still
had to contain all the provisions of the convention. It should therefore be
clarified that the convention and the statutes are distinct documents
and - although both shall be sent to Member States - the
approval procedure should be limited to the convention. In addition, some
elements presently covered by the statutes should be covered by the convention
instead.

(14)
Experience from the setting up of EGTCs shows
that the three months period for approval by a Member State has rarely been
respected. The period should therefore be extended to six months. On the other
hand, in order to create legal certainty after that period, the convention
should be deemed to be approved by tacit agreement. While Member States may
apply national rules on the procedure for such approval or may create specific
rules in the framework of the national rules implementing the EGTC Regulation,
derogations to the provision concerning tacit agreement after the period of six
months should be ruled out.

(15)
It should be clarified that Member States should
approve the convention unless it considers the participation of a prospective
member is not in conformity with the EGTC Regulation, with other provisions of Union
law concerning the EGTC's activities as laid down in the draft convention or with
the national substantive law concerning the competences of the prospective
member, unless such participation is not justified for reasons of public
interest or public policy of that Member State, while excluding from the scope
of the scrutiny any national law requiring other or stricter rules and
procedures than those foreseen by the EGTC Regulation.

(16)
As the EGTC Regulation cannot apply in third
countries or overseas territories, it should be specified that the Member State
where the proposed EGTC's registered office will be located should ensure, when
approving the participation of prospective members established under their law,
that the third countries or overseas territories have applied equivalent
conditions and procedures to those in the EGTC Regulation or in accordance with
international agreements, especially under the Council of Europe acquis. It
should also be specified that in the case of the involvement of several Member
States and one or more third countries or overseas territories, it should be
sufficient that such an agreement has been concluded between the respective
third country or overseas territory and one participating Member State.

(17)
In order to encourage the accession of
additional members to an existing EGTC, the procedure to amend conventions in
such cases should be simplified. Consequently, such amendments should not be
notified to all participating Member States, but only to the Member State under
whose national law the new prospective member is established. However, this
simplification should not apply in case of a new prospective member from a
third country or overseas territory in order to enable all participating Member
States to check whether such accession is in line with its public interest or
public policy.

(18)
As the statutes will not contain all the
provisions of the convention, both convention and statutes should be registered
and/or published. In addition, for reasons of transparency, a notice on the
decision setting-up an EGTC should be published in the C series of the Official
Journal of the European Union. For reasons of coherence, that notice should be
established in accordance with a common template.

(19)
The purpose of an EGTC should be extended to
cover the facilitating and promotion of territorial cooperation in general,
including strategic planning and the management of regional and local concerns
in line with Cohesion and other Union policies, thus contributing to the Europe
2020 strategy or to the implementation of macro-regional strategies. In
addition, it should be clarified that a given competence needed for the
efficient implementation of an EGTC should be represented by at least one
member in each of the Member States represented.

(20)
In this context, it should be confirmed that
this instrument is neither intended to circumvent the framework provided by the
Council of Europe acquis offering different opportunities and frameworks within
which regional and local authorities can cooperate across borders including the
recent Euroregional Co-operation Groupings[12],
nor to provide a set of specific common rules which would uniformly govern all
such arrangements throughout the Union.

(21)
Both the specific tasks of an EGTC and the
possibility of Member States to limit the actions that EGTCs may carry out
without a financial support from the Union should be aligned with the
provisions governing the Structural Funds during the period 2014-2020.

(22)
While it is laid down that the tasks do not
concern, among others, 'regulatory powers', which may have different legal
consequences in different Member States, it should nevertheless be specified
that an EGTC's assembly may define the terms and conditions of the use of an
item of infrastructure the EGTC is managing, including the tariffs and fees to
be paid by the users.

(23)
As a consequence of the opening up of EGTCs to
members from third countries or overseas territories, it should be specified
that the convention should contain arrangements for their involvement.

(24)
It should be specified that the convention
should not only repeat a reference to the applicable law in general as already
laid down in Article 2, but should list the specific Union or national rules
applicable to the EGTC as a legal body or to its activities. In addition, it
should be specified that such national legislation or rules may be those of the
Member State where statutory organs exercise their powers, especially where the
staff working under the responsibility of the director is located in a Member
State other than the Member State where its office is registered, or where the
EGTC carries out its activities including where it is managing public services
of general economic interest or infrastructures.

(25)
This Regulation should not cover problems linked
to cross-border procurement encountered by EGTCs.

(26)
It should be clarified that the
convention - and given the importance of this issue, not the
statutes - should indicate the rules applicable to the EGTC’s staff
as well as the principles governing the arrangements concerning personnel
management and recruitment procedures. Several options should be available to
the EGTCs. However, the specific arrangements concerning personnel management
and recruitment procedures should be addressed in the statutes.

(27)
Member States should further exploit the
possibilities foreseen under Article 16 of Regulation (EC) No 883/2004 of
the European Parliament and of the Council of 29 April 2004 on the coordination
of social security systems[13]
to provide by common agreement for exceptions to Articles 11 to 15
(Determination of the legislation applicable) of that Regulation in the
interest of certain persons or categories of persons and to consider the staff
of EGTCs as being such a category of persons.

(28)
It should be clarified that the
convention - and given the importance of this issue, not the
statutes - should cover the arrangements for members' liability in
case of an EGTC with limited liability.

(29)
The different arrangements referring to the
control of management of public funds on one hand and of the audit of the
EGTC's accounts on the other hand should be clarified.

(30)
It should be specified that where an EGTC has as
its exclusive objective the management of a cooperation programme or part
thereof supported by the ERDF, or where an EGTC concerns interregional
cooperation or networks, information concerning the territory in which the EGTC
may execute its task is not required. In the former case, the territory will be
defined (and amended) in the relevant cooperation programme. In the latter
case, while in most cases concerning immaterial activities, the requirement for
such information would jeopardize the accession of new members to interregional
cooperation or networks.

(31)
EGTCs whose members have limited liability
should be more clearly distinguished from those whose members have unlimited
liability. In addition, in order to enable EGTCs whose members have limited
liability to implement activities that might generate debts, Member States
should be allowed to require that such EGTCs take appropriate insurance to
cover the risks specific to the activities thereof.

(32)
It should be clarified that Member States inform
the Commission about any provisions adopted to implement the EGTC Regulation
and to submit these provisions as well as any amendments thereof. In order to
improve the information and coordination between the Commission, the Member
States and the Committee of the Regions, it should be specified that the
Commission will transmit these provisions to the Member States and to the
Committee of the Regions. That Committee has set up an EGTC platform allowing
all the stakeholders to exchange their experiences and good practices and to
improve communication on EGTC opportunities and challenges, facilitating the
exchange of experiences on the establishment of EGTCs at territorial level and
sharing knowledge of best practices on territorial cooperation.

(33)
A new deadline for the next report should be
fixed. In accordance with the Commission's move towards more evidence-based
policy-making, this report should address the main evaluation questions
including effectiveness, efficiency, European added value, relevance and
sustainability. It should also be specified that taking account of the first
subparagraph of Article 307 of the Treaty this report should also be forwarded
to the Committee of the Regions.

(34)
It should be clarified that existing EGTCs are
not obliged to adapt their convention and statutes to amendments to the EGTC
Regulation.

(35)
It should also be specified under which set of
rules those EGTCs for which an approval procedure has already been started
before the application of this Regulation should be approved.

(36)
In order to adapt existing national rules to
implement this Regulation before programmes under the European territorial
cooperation goal have to be submitted to the Commission, the starting date of
its application should be 6 months after the date of its entry into force.

(37)
Since the objective of this Regulation, namely
the improvement of the EGTC legal instrument, cannot be sufficiently achieved
by the Member States and can therefore be better achieved at Union level, the
Union may adopt measures, in accordance with the principle of subsidiarity as
set out in Article 5 of the Treaty on European Union. In accordance with the
principle of proportionality, as set out in that Article, this Regulation does
not go beyond what is necessary in order to achieve that objective, recourse to
an EGTC being optional, in accordance with the constitutional system of each
Member State,

HAVE ADOPTED THIS REGULATION:

Article
1

Regulation (EC) No 1082/2006 is amended as
follows:

(1)
Article 1 is amended as follows:

(a)      Paragraphs 1 and 2 are replaced by the
following:

“1. A European grouping of territorial
cooperation, hereinafter referred to as "EGTC", may be established on
Union territory under the conditions and subject to the arrangements provided
for by this Regulation.

“2. The objective of an EGTC shall be to
facilitate and promote territorial cooperation, including one or more of cross-border,
transnational and interregional cooperation, between its members as set out in
Article 3(1), with the aim of strengthening economic, social and territorial
cohesion.”

(b)     The following paragraph is added:

“5. The registered office of an EGTC shall be
located in a Member State under whose law at least one of the members is
established.”

(2)          In Article 2, paragraph 1 is
replaced by the following:

"1.      An EGTC and its acts and
activities shall be governed by the following:

(a)
this Regulation and, where applicable, other Union
law concerning activities of the EGTC;

(b)
where expressly authorised by this Regulation,
the provisions of the convention referred to in Article 8;

(c)
in the case of matters not, or only partly,
regulated by this Regulation, the law of the Member State where the EGTC has
its registered office or, where allowed under this Regulation, the law of the
Member State where statutory organs exercise their powers or where the EGTC
carries out its activities.

An EGTC shall be considered to be an entity of
the Member State where it has its registered office for the purposes of
determining the applicable law.”

(3)          In Article 3, paragraphs 1 and 2
are replaced by the following:

“1.     The following entities may become
members of an EGTC:

(a)
Member States or authorities at national level;

(b)
regional authorities;

(c)
local authorities;

(d)
public undertakings within the meaning of Article
2(1)(b) of Directive 2004/17/EC of the European Parliament and of the Council[14] or bodies governed by public
law within the meaning of Article 1(9) of Directive 2004/18/EC of the European
Parliament and of the Council[15];

(e)
national, regional or local authorities or
bodies or public enterprises equivalent to those referred to under point (d) from
third countries or overseas territories, subject to the conditions laid down in
Article 3a(1).”

(b)     Paragraph 2 is replaced by the
following:

“2. An EGTC shall be made up of members drawn
from the territory of at least two Member States, except as provided for in
Article 3a(2).”

(4)          The following Article 3a is
added:

“Article
3a
Accession of members from third countries or overseas territories

1.       In accordance with Article 4(3a), an
EGTC may be made up of members drawn from the territory of at least two Member
States and of one or more third country or overseas territory, where those
Member States and third countries or overseas territories jointly carry out
territorial cooperation actions or implement programmes supported by the Union.

2.       An EGTC may be made up of members
drawn from the territory of only one Member State and of one third country or overseas
territory, where that Member State considers such an EGTC consistent with the
scope of its territorial cooperation or bilateral relations with the third
country or overseas territory.”

(5)          Article 4 is amended as follows:

(a)      Paragraph 3 is replaced by the
following:

“3.     Following notification under paragraph
2 by a prospective member, the Member State concerned shall approve the
convention, taking into account its constitutional structure, and the prospective
member's participation in the EGTC, unless it considers that such participation
is not in conformity with this Regulation, other Union law concerning the
activities of the EGTC or national law concerning the competences of the
prospective member or that such participation is not justified for reasons of
public interest or of public policy of that Member State. In such a case, the
Member State shall give a statement of its reasons for withholding agreement or
shall suggest the necessary amendments to the convention to enable the prospective
member’s participation.

The Member State shall reach its decision
within a deadline of six months from the date of receipt of an application in
accordance with paragraph 2. If the Member State concerned does not
respond within the time limit laid down, the convention shall be deemed to be
approved.

In deciding on the prospective member's
participation in the EGTC, Member States may apply their national rules."

(b)     The following paragraph 3a is inserted:

“3a.    In the case of an EGTC with prospective
members from third countries or overseas territories, the Member State where
the proposed registered office of the EGTC will be located shall ensure that
the conditions laid down in Article 3a are fulfilled and that the third country
or the Member State under whose laws an overseas territory is established have
approved the prospective member’s participation according to equivalent
conditions and procedures to those laid down in this Regulation, or in
accordance with an agreement concluded between at least one Member State under
whose law a prospective member is established and such third country or overseas
territory. Paragraph 3 of this Article shall apply.”

(c)      Paragraphs 5 and 6 are replaced by the
following:

“5.     The members shall agree on the
convention referred to in Article 8 ensuring consistency with the approval or the
amendments suggested by the Member States in accordance with paragraph 3 of
this Article.

6.       Any amendment to the convention or to
the statutes shall be notified by the EGTC to the Member States under whose law
its members are established.

Any amendment to the convention shall be approved
by the Member States according to the procedure set out in this Article.

However, in case of accession to an existing
EGTC of a new member from a Member State that has already approved the
convention, such accession shall only be approved by the Member State under
whose laws the new member is established. Paragraph 3 of this Article shall
apply.

In case of the accession of a new member from a
third country or overseas territory to an existing EGTC, such accession shall
be approved by all the Member States that have already approved the convention.
Paragraph 3a of this Article shall apply."

(6)          Article 5 is replaced by the
following:

“Article
5
Acquisition of legal personality and publication in the Official Journal

1.       The convention and the statutes and
any subsequent amendments thereto shall be registered or published, or both, according
to the applicable national law in the Member State where the EGTC concerned has
its registered office. The EGTC shall acquire legal personality on the day of
registration or publication, whichever occurs first. The members shall inform
the Member States concerned, the Commission and the Committee of the Regions of
the registration or publication of the convention.

2.       The EGTC shall ensure that, within ten
working days from the registration or publication of the convention, a request
is sent to the Commission following the template set out in the Annex to this
Regulation. The Commission shall then transfer this request to the Publications
Office of the European Union for publication of a notice in the C series of
the Official Journal of the European Union announcing the establishment of the
EGTC, with the details set out in the Annex to this Regulation.”

(7)          In Article 6, paragraph 4 is
replaced by the following:

“4.     Notwithstanding paragraphs 1, 2 and 3,
where the tasks of an EGTC mentioned under Article
7(3) cover actions which are co-financed by the Union, the relevant legislation
concerning the control of those funds shall apply.”

(8)          Article 7 is amended as follows:

(a)      Paragraphs 2 and 3 are replaced by the
following:

“2.     An EGTC shall act within the confines
of the tasks given to it, which shall be the facilitation and promotion of
territorial cooperation to strengthen economic, social and territorial cohesion
and be determined by its members on the basis that they fall within the
competence under national law of at least one member from each Member State
represented in that EGTC.

3.       An EGTC may carry out specific actions
of territorial cooperation between its members in pursuit of the objective
referred to in Article 1(2), with or without a financial support from the Union.

Specifically, the tasks of an EGTC may concern
the implementation of cooperation programmes or parts thereof or of operations supported
by the Union through the European Regional Development Fund, the European Social
Fund and/or the Cohesion Fund.

Member States may limit the actions that EGTCs
may carry out without a financial support from the Union. However, Member
States shall not exclude those actions covered by the investment priorities
under the Cohesion Policy of the Union as adopted for the period 2014-2020.”

(b)     In paragraph 4, the following
sub-paragraph is added:

“However, the assembly referred to in Article
10(1)(a) of an EGTC may define the terms and conditions of the use of an item
of infrastructure the EGTC is managing, including the tariffs and fees to be
paid by the users.”

(9)          In Article 8, paragraph 2 is
replaced by the following:

“2.     The convention shall specify:

(a)
the name of the EGTC and its registered office;

(b)
the extent of the territory in which the EGTC
may execute its tasks;

(c)
the objective and the tasks of the EGTC;

(d)
its duration and the conditions for its
dissolution;

(e)
the list of its members;

(f)
the specific Union or national law applicable to
the interpretation and enforcement of the convention;

(g)
the arrangement for the involvement of members
from third countries or overseas territories if appropriate;

(h)
the specific Union or national law applicable to
its activities, while the latter may be the law of the Member State where
statutory organs exercise their powers or where the EGTC carries out its
activities;

(i)
the rules applicable to the EGTC’s staff as well
as the principles governing the arrangements concerning personnel management
and recruitment procedures;

(j)
in case of an EGTC with limited liability, the
arrangements for liability of the members in accordance with Article 12(3);

(k)
the appropriate arrangements for mutual
recognition, including for financial control of the management of public funds;
and

(l)
the procedures for amending the convention,
including compliance with the obligations set out in Articles 4 and 5.

However, where an EGTC is only managing a
cooperation programme or part thereof under the Cohesion Policy of the European
Union, or where an EGTC concerns interregional cooperation or networks,
information under point (b) is not required.

The following rules shall apply to the EGTC’s
staff as referred to in point (i),

(a)
those of the Member State where the EGTC has its
registered office;

(b)
those of the Member State where the EGTC’s staff
is actually located; or

(c)
those of the Member State of which the staff
member is a national.

To allow equal treatment of all staff working
at the same location, the national laws and rules, whether of public or private
law, may be subject to additional ad hoc rules fixed by the EGTC.”

(10)        In Article 9, paragraph 2 is replaced
by the following:

“2.     The statutes shall contain, as a
minimum, the following:

(a)
the operating provisions of the EGTC's organs
and their competences, as well as the number of representatives of the members
in the relevant organs;

(b)
the decision-making procedures of the EGTC;

(c)
the working language or languages;

(d)
the arrangements for its functioning;

(e)
the specific arrangements concerning personnel
management and recruitment procedures;

(f)
the arrangements for members' financial
contributions;

(g)
the applicable accounting and budgetary rules of
each of the members of the EGTC with respect to it;

(h)
the designation of the independent external
auditor of the accounts of the EGTC;

(i)
the arrangements for the liability of the
members in accordance with Article 12(2); and

(j)
the procedures for amending the statutes,
including compliance with the obligations set out in Articles 4 and 5.”

(11)        In Article 11, paragraph 2 is
replaced by the following:

“2.     The preparation of its accounts
including where required the accompanying annual report and the auditing and
publication of those accounts, shall be governed by the law of the Member State
where the EGTC has its registered office.”

(12)        Article 12 is amended as follows:

(a)      In paragraph 1 the following
subparagraph is added:

“An EGTC shall be liable for all its debts."

(b)     Paragraph 2 is replaced by the
following:

"2. Notwithstanding paragraph 3, to the
extent that the assets of an EGTC are insufficient to meet its liabilities, its
members shall be liable for the debts of the EGTC of whatever nature, each
member's share being fixed in proportion to its financial contribution. The
arrangements for financial contributions shall be fixed in the statutes.

The members may provide in the statutes that
they will be liable, after they have ceased to be members of an EGTC, for
obligations arising out of activities of the EGTC during their membership.

2a.     If the liability of at least one member
of an EGTC is limited or excluded as a result of the national law under which
it is established, the other members may also limit their liability in the convention.

The name of an EGTC whose members have limited
liability shall include the word "limited".

The requirement for the publicity of the convention,
statutes and accounts of an EGTC whose members have limited liability shall be
at least equal to those required for other legal entities with limited
liability of its members established under the laws of the Member State where
that EGTC has its registered office.

In case of an EGTC whose members have limited
liability, the Member States may require that the EGTC shall take appropriate insurance
to cover the risks specific to the activities of the EGTC.”

(13)        In Article 15(2), the first
sub-paragraph is replaced by the following:

“2.     Except where otherwise provided for in
this Regulation, Union legislation on jurisdiction shall apply to disputes
involving an EGTC. In any case which is not provided for in such Union legislation,
the competent courts for the resolution of disputes shall be the courts of the
Member State where the EGTC has its registered office.”

(14)        In Article 16, paragraph 1 is
replaced by the following:

“1.     Member States shall make such
provisions as are appropriate to ensure the effective application of this
Regulation.

Where required under the terms of a Member
State's national law, that Member State may establish a comprehensive list of
the tasks which the members of an EGTC established under its laws already have,
as far as territorial cooperation in the meaning of Article 3(1) within that
Member State is concerned.

The Member State shall inform the Commission of
any provisions adopted under this Article and shall submit these provisions or
amendments thereof. The Commission will then inform the other Member States and
the Committee of the Regions by transmitting the provisions.”

(15)        Article 17 is replaced by the
following:

"By mid-2018 the Commission shall forward
to the European Parliament, the Council and the Committee of the Regions an
evaluation report on the application, effectiveness, efficiency, relevance,
European added value and scope for simplification of this Regulation.

The evaluation reports shall be based on
indicators the Commission shall adopt by delegated acts in accordance with
Article 18."

(16)        The following Article 18 is added:

“Article
18
Exercise of the delegation

1.       The powers to adopt delegated acts are
conferred on the Commission subject to the conditions laid down in this
Article.

2.       The delegations of power referred to
in this Regulation shall be conferred for an indeterminate period of time from
the date of entry into force of this Regulation.

3.       The delegations of power referred to
in Article 17 may be revoked at any time by the European Parliament or by the
Council.

A decision of revocation shall put an end to
the delegation of the power specified in that decision. It shall take effect
the day following the publication of the decision in the Official Journal of
the European Union or at a later date specified therein. It shall not affect
the validity of any delegated acts already in force.

4.       As soon as it adopts a delegated act,
the Commission shall notify it simultaneously to the European Parliament and to
the Council.

5.       The delegated acts shall enter into
force only if no objection has been expressed either by the European Parliament
or the Council within a period of 2 months of notification of that act to the
European Parliament and the Council or if, before the expiry of that period,
the European Parliament and the Council have both informed the Commission that
they will not object. That period shall be extended by 2 months at the
initiative of the European Parliament or the Council.

If, on expiry of that period, neither the
European Parliament nor the Council has objected to the delegated act, it shall
be published in the Official Journal of the European Union and shall enter into
force at the date stated therein.

The delegated act may be published in the
Official Journal of the European Union and enter into force before the expiry
of that period if the European Parliament and the Council have both informed
the Commission of their intention not to raise objections.

If the European Parliament or the Council
objects to a delegated act, the act shall not enter into force. The institution
that objects to the delegated act shall state the reasons for its objections."

Article 2
Transitional provision

1.
EGTCs established before the entry into force of
this Regulation are not obliged to align their convention and statutes with the
provisions of this Regulation as amended.

2.
EGTCs for which a procedure under Article 4 has
been started before the date of the application of this Regulation and for
which only the registration and/or publication under Article 5 is outstanding,
shall be registered and/or published according to the provisions of Regulation
(EC) No 1082/2006 before its amendment.

3.
EGTCs for which a procedure under Article 4 was
started more than six months before the date of the application of this
Regulation shall be approved according to the provisions of Regulation (EC)
No 1082/2006 before its amendment.

4.
Other EGTCs than those under paragraphs 2 and 3
for which a procedure under Article 4 was started before the date of the
application of this Regulation shall be approved according to the provisions of
Regulation (EC) No 1082/2006 as amended by this Regulation.

Article 3
Entry into force

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

It shall apply from [Please Publications Office fill in with the date of
six months from the date of the entry into force].

Member States shall submit
the necessary amendments to the national provisions adopted in accordance with Article
16(1) of Regulation (EC) No 1082/2006 no later than [...] [Please Publications Office fill in with the date of
six months from the date of the entry into force.].

Article 4

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

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX

Template
of the information to be submitted under Article 5(2)

ESTABLISHMENT
OF A EUROPEAN GROUPING OF
TERRITORIAL COOPERATION (EGTC)

Regulation (EC) No 1082/2006 of the European
Parliament and of the Council of 5 July 2006

(OJ L 210, 31.7.2006, p. 219)

The name of an
EGTC whose members have limited liability shall include the word ‘limited’ (Article
12(2))

The asterisk*
denotes mandatory fields.

I.1) Name, address and contact point(s)

Registered name*:

Registered office*:

Town*: || Postal code: || Country*:

Contact point(s): For the attention of: || Telephone:

E-mail: || Fax:

Internet address(es) (if applicable)

I.2) DURATION OF THE GROUPING*:

Duration of the Grouping:  indefinite period  until: // (dd/mm/yyyy)

Date of registration/publication : // (dd/mm/yyyy)

II. Objectives*

________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ NUTS code  NUTS code  NUTS code  NUTS code 

III. Additional details on name of the grouping (if applicable)

Name in (please, indicate an appropriate country version) BE          BG      CZ     DK    DE    EE     IE      EL      ES    FR      IT       CY       LV      LT                                                            LU           HU     MT    NL     AT    PL      PT    RO     SI     SK     FI              SE           UK          Other: _____                                                                    Full name (if applicable):__________________________________________________________________ Abbreviated name (if applicable):___________________________________________________________

-----------------------------------------
Section III is to be used as many times as
needed----------------------------------

IV. Members*

IV. 1) Total number of members in the Grouping*:

IV.2) Member information*

Official name*:

Postal address:

Town: || Postal code: || Country*:

Contact point(s): For the attention of: || Telephone:

E-mail: || Fax:

Internet address(es) (if applicable)

Type of member*:  Member State  National authority  Regional authority  Local authority  Body governed by public law  Public undertaking Association of: · Member State(s)           Total:* · National authority(ies)   Total:* · Regional authority(s)      Total:* · Local authority(s)          Total:* · Body(s) governed by public law        Total:* · Public undertaking(s)     Total:*  Third country or overseas territory

---------------------------------------
Section IV.2 is to be used as many times as
needed-------------------------------

V. Additional information (if
applicable)

________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________

VI. Date of dispatch of this notice: // (dd/mm/yyyy)

[1]               Report fro the Commission to the European Parliament
and the Council: The application of the Regulation (EC) No 1082/2006 on a
European Grouping of Territorial Cooperation (EGTC), COM(2011) 462 final,
29.7.2011.

[2]               http://portal.cor.europa.eu/egtc/en-US/Pages/welcome.aspx

[3]               Results published in Conclusions of the Committee
of the Regions about the joint consultation – The review of regulation (EC)
1082/2006 on the European Grouping of Territorial Cooperation, Committee of
the Regions, 2010               , http://www.cor.europa.eu/COR_cms/ui/ViewDocument.aspx?contentid=366960dd-3c03-4efa-9230-665455fa6bb5

[4]               Own-Initiative Opinion of the Committee of the
Regions on New Perspectives for the Revision of the EGTC Regulation (CdR
100/2010fin), Rapporteur: Alberto Núnez Feijóo.

[5]               Article 14(3) of Council Regulation (EC) on the
Community legal framework for a European Research Infrastructure Consortium
(ERIC) (OJ L 206, 8.8.2009, p.1): "If the financial liability of the
members is not unlimited, the ERIC shall take appropriate insurance to cover
the risks specific to the construction and operation of the infrastructure."

[6]               OJ C , , p. .

[7]               OJ C , , p. .

[8]               OJ L 210, 31.7.2006, p. 19.

[9]               COM(2011) 462 final.

[10]             OJ L 134, 30.4.2004, p. 114.

[11]             OJ L 134, 30.4.2004, p. 1.

[12]             Protocol No. 3 to the European Outline Convention on
Transfrontier Co-operation between Territorial Communities or Authorities
concerning Euroregional Co-operation Groupings (ECGs), opened for signature on
16 November 2009.

[13]             OJ L 200, 7.6.2004, p. 1.

[14]             OJ L 134, 30.4.2004, p. 1.

[15]             OJ L 134, 30.4.2004, p. 114