# EUR-Lex - 52011PC0446 - EN

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# 52011PC0446

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1085/2006 establishing an Instrument for Pre-Accession Assistance (IPA) /* COM/2011/0446 final - 2011/0193 (COD) */**

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EXPLANATORY MEMORANDUM

1.
Background

Iceland and Montenegro

The European Council of 17 June 2010, in
its conclusions, noted that Iceland meets the political criteria set by the
Copenhagen European Council in 1993 and welcomed the opinion of the Commission
on Iceland's application for membership of the EU. On those grounds, the
European Council decided to open negotiations with Iceland. Iceland is
therefore a candidate country.

The European Council of 16-17 December 2010
endorsed the Council's conclusions of 14 December 2010 on enlargement and
agreed to give Montenegro the status of candidate country.

The Commission therefore proposes to the
Council and the Parliament to amend Council Regulation (EC) No 1085/2006 of 17
July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) with a
view to transferring Iceland and Montenegro from the list of potential
candidate countries (Annex II) to the list of candidate countries (Annex I).

Article 19

The Commission proposes to the Council and
the Parliament an amendment to Article 19 "Rules
of participation and origin, eligibility for grants" of the IPA Regulation
(EC) No 1085/2006 in order to align its provisions with those of Article 21 "Participation
in tenders and contracts" of the ENPI Regulation (EC) No 1638/2006.

This amendment addresses the concern, expressed
by EU Member States involved in IPA cross–border cooperation (CBC) programmes,
with regard to the participation in calls for proposals. Member States asked
for participation in calls for proposals to be limited to applicants from
countries participating in the relevant IPA CBC programme, as is already the
case for the ENPI CBC programmes. The Council invited the Commission to propose
a possible solution at the earliest opportunity.

The Commission has carried out an
assessment of the possible implications of a revision of Article 19, in
particular with regard to coherence with other external aid instruments, and
specifically the ENPI which also includes a CBC component. The Commission
therefore proposes that Article 19 should be aligned with Article 21 of the ENPI Regulation (EC) No 1638/2006 by inserting a new
paragraph 9 which, considering the local nature of the CBC programmes, would
allow participation in calls for proposals to be limited to local actors.

Assistance to the
Turkish Cypriot community and the IPA management committee

The Commission proposes
to amend the IPA Regulation with the aim of allowing the Phare committee to
continue to assist the Commission in the management of the financial assistance
to the Turkish Cypriot community, as provided for in Regulation (EC) No
389/2006 on assistance to the Turkish Cypriot community.

Existing provisions
in the area of the proposal

Regulation
(EU) No 540/2010 of the European Parliament and of the Council of 16 June 2010 amending Council Regulation (EC) No 1085/2006 of 17
July 2006 establishing an Instrument for Pre-Accession Assistance (IPA)([1]).

Commission Regulation (EC) No 718/2007 of
12 June 2007 implementing Council Regulation (EC) No 1085/2006 establishing an
Instrument for Pre-Accession Assistance (IPA)([2]).

Council Regulation (EC)
No 389/2006 of 27 February 2006 establishing an
instrument of financial support for encouraging the economic development of the
Turkish Cypriot community and amending Council Regulation (EC) No 2667/2000 of
5 December 2000 on the European Agency for Reconstruction([3]).

Consistency with the other policies and
objectives of the Union

The Commission has assessed the possible
implications of a revision of Article 19 in two respects:

1) Assessment of consistency with
Regulation 2112/2005 (the so called "untying Regulation")

2) Coherence with other external aid
instruments.

As a result of the assessment, it has been
concluded that Article 19 of the IPA Regulation (EC) No 1085/2006 should be
aligned with Article 21 "Participation in
tenders and contracts" of the ENPI
Regulation (EC) No 1638/2006 by inserting a new paragraph 9 in the IPA
Regulation.

2.
Consultation of interested parties and collection and
use of expertise

The Commission has carried out an internal
consultation. There was no need for external expertise.

Impact assessment

Not applicable.

3.
Legal elements of the proposal

Summary of the proposed action: three
amendments to the Council Regulation (EC) No 1085/2006 of 17 July 2006
establishing an Instrument for Pre-Accession Assistance (IPA).

I.            Iceland and Montenegro
will be transferred from the list of potential candidate countries (Annex II)
to the list of candidate countries (Annex I), following the decisions of the
European Council.

II.           A new paragraph 9 will be
added to Article 19.

III.          In Article 25 paragraph
1, the second subparagraph is modified.

Legal basis

Article 212 (2) of the Treaty of the
Functioning of the European Union.

Subsidiarity principle

Not applicable.

Proportionality principle

Not applicable.

Choice of instruments

Proposed instrument: amendment to the
Council Regulation. Other means would not be adequate for the following reason:
a Regulation must be amended by a Regulation.

4.
Budgetary implications

This measure does not involve any
additional expenditure.

5.
Additional information

Simplification

Not applicable.

2011/0193 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

amending Council Regulation (EC) No
1085/2006 establishing an Instrument for Pre-Accession Assistance (IPA)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty of the
Functioning of the European Union and in particular Article 212 (2) thereof,

Having regard to the proposal from the European
Commission ([4]),

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

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
Council Regulation (EC) No 1085/2006 of 17 July
2006 ([5])
establishing an Instrument for Pre-Accession Assistance provides for assistance
to candidate countries and potential candidates in their progressive alignment
with the standards and policies of the Union, including where appropriate EU
acquis with a view to membership.

(2)
Council Regulation (EC)
No 1085/2006 makes a clear distinction between candidate countries and
potential candidates.

(3)
The European Council of 17 June 2010 welcomed
the Commission opinion on Iceland's application for membership of the Union,
noted that Iceland meets the political criteria set by the Copenhagen European
Council in 1993 and decided to open accession negotiations with Iceland.
Iceland is therefore a candidate country.

(4)
The European Council of 17 December 2010
endorsed the Council's conclusions of December 2010 on enlargement and agreed
to grant Montenegro the status of a candidate country.

(5)
The Council has invited the Commission to
propose an amendment to Article 19 of Council
Regulation (EC) No 1085/2006 with a view to clarifying
the rules regarding the participation in the award of grant contracts financed
under the IPA Cross-Border Cooperation component and ensuring coherence with
other external aid instruments and in particular with the European
Neighbourhood and Partnership Instrument.

(6)
Council Regulation (EC) No
389/2006 of 27 February 2006 establishing an instrument of financial support
for encouraging the economic development of the Turkish Cypriot community and
amending Council Regulation (EC) No 2667/2000 on the European Agency for Reconstruction([6]), designates the
committee provided for in Council Regulation (EEC) No 3906/89 of 18
December 1989([7])
(the "Phare committee") to assist the Commission in the management of
the assistance to the Turkish Cypriot community. In accordance with Article 25
of Regulation (EC) No 1085/2006, Regulation (EEC) No 3906/89 has been repealed,
however continues to apply for legal acts and commitments implementing the
budget years preceding 2007. As Regulation (EC) No 389/2006 continues to be the
basic act for financial support to the Turkish Cypriot community beyond these
budget years, the Phare committee should also be continued for that purpose.

(7)
Regulation (EC) No 1085/2006
should therefore be amended accordingly,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1085/2006 is hereby
amended as follows:

(1)
In Article 19, the following paragraph is added:

"9. Paragraph 1 to 8 shall be without
prejudice to the participation of categories of eligible organisations by
nature or by localisation in regard to the objectives of the action."

(2)
In Article 25 paragraph 1, the second
subparagraph is replaced by the following:

"These Regulations, as well as Regulation
(EC) No 2666/2000, shall continue to apply for legal acts and commitments
implementing the budget years preceding 2007, for the implementation of Article
31 of the Act concerning the conditions of accession of the Republic of
Bulgaria and Romania and the adjustments to the Treaties on which the European
Union is founded(*) and for the implementation of Article 3 of Council
Regulation (EC) No 389/2006(**).

______________________________

*OJ L 157, 21.6.2005, p. 203.

**OJ L 65, 7.3.2006, p. 5."

(3)
In Annex I, the following entries are inserted
after the entry concerning Croatia:

"— Iceland

— Montenegro".

(4)
In Annex II, the following entries are deleted:

"— Iceland

— Montenegro".

Article 2

This Regulation shall enter into force on
the day following that of 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,

For the European Parliament                       For
the Council

The
President                                                 The President

([1])            OJ
L 210, 31.7.2006, p.82

([2])            OJ L 170, 29.6.2007, p. 1

([3])            OJ
L 65, 7.3.2006, p.5

([4])            OJ
C , , p. .

([5])            OJ L 210, 31.7.2006, p. 82.

([6])            OJ
L 65, 7.3.2006, p. 5.

([7])            OJ
L375, 23.12.1989, p. 11.