1989R3906 — EN — 07.12.2000 — 009.001 — 1
This document is meant purely as a documentation tool and the institutions do not assume any liability for its contents
►B ►M1 COUNCILREGULATION(EEC)No3906/89
of18December 1989
oneconomic aidtocertain countriesofCentralandEasternEurope ◄
(OJ L 375, 23.12.1989, p. 11)
Amended by:
Official Journal
No page date
►M1Council Regulation (EEC) No 2698/90 of 17 September 1990 L 257 1 21.9.1990
►M2Council Regulation (EEC) No 3800/91 of 23 December 1991 L 357 10 28.12.1991
►M3Council Regulation (EEC) No 2334/92 of 7 August 1992 L 227 1 11.8.1992
►M4Council Regulation (EEC) No 1764/93 of 30 June 1993 L 162 1 3.7.1993
►M5Council Regulation (EC) No 1366/95 of 12 June 1995 L 133 1 17.6.1995
►M6Council Regulation (EC) No 463/96 of 11 March 1996 L 65 3 15.3.1996
►M7Council Regulation (EC) No 753/96 of 22 April 1996 L 103 5 26.4.1996
►M8Council Regulation (EC) No 1266/1999 of 21 June 1999 L 161 68 26.6.1999
►M9Council Regulation (EC) No 2666/2000 of 5 December 2000 L 306 1 7.12.2000
NB: This consolidated version contains references to the European unit of account and/or the ecu, which from 1 January 1999
should be understood as references to the euro — Council Regulation (EEC) No 3308/80 (OJ L 345, 20.12.1980, p. 1) andCouncil Regulation (EC) No 1103/97 (OJ L 162, 19.6.1997, p. 1).
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COUNCILREGULATION(EEC)No3906/89
of18December 1989
oneconomicaidtocertaincountriesofCentralandEasternEurope
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Economic
Community, and in particular Article 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament(1),
Whereas the Community and its Member States have decided to make a
concerted effort together with certain third countries, in order to
implement measures intended to support the process of economic and
social reform under way in Hungary and Poland;
Whereas the Community has concluded Agreements on trade and
commercial and economic cooperation with the Republic of Hungary
and the Polish People's Republic;
Whereas the Community must have the necessary means at its disposal
to be able to implement such measures;
Whereas the fields in which measures are to be undertaken should be
determined;
Whereas it is necessary to estimate the amount of Community financial
resources needed to carry out these measures in 1990;
Whereas the implementation of such measures will help to achieve the
Community's aims and whereas the Treaty does not provide, for themeasures in question, powers other than those of Article 235,
HAS ADOPTED THIS REGULATION:
Article 1
The Community shall make economic aid available to the countries of
Central and Eastern Europe listed in the Annex in accordance with the
criteria laid down in this Regulation.
Article 3
1. The aid shall be used primarily to support the process of reform
►M1in the countries referred to in Article 1 ◄, in particular by
financing or participating in the financing of projects aimed at economic
restructuring.
Such projects or cooperation measures should be undertaken in
particular in the areas of agriculture, industry, investment, energy,
training, environmental protection, trade and services; they should be
aimed in particular at the private sector ►M1of the countries referred
to in Article 1 ◄.
The aid may also be used to provide humanitarian assistance.1989R3906 — EN — 07.12.2000 — 009.001 — 2
(1) Opinion delivered on 14 December 1989 (not yet published in the Official
Journal).▼M1
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2. Account shall be taken, inter alia, of the preferences and wishes
expressed by the recipient countries concerned in the choice of measuresto be financed pursuant to this Regulation.
3. For applicant countries with accession partnerships with the
European Union, funding under the PHARE programme shall focus onthe main priorities for the adoption of the acquis communautaire, i.e.
building up the administrative and institutional capacities of the
applicant States and investment, except for the type of investments
financed in accordance with Regulations (EC) No 1267/1999(
1) and
(EC) No 1268/1999(2). PHARE funding may also be used to finance the
measures in the fields of environment, transport and agricultural andrural development which form an incidental but indispensable part of
integrated industrial reconstruction or regional development
programmes.
Article 4
The aid shall be granted by the Community, either independently or in
the form of cofinancing with the Member States, the European
Investment Bank, third countries or multilateral bodies or the recipient
countries themselves.
Article 5
Community aid shall in general be in the form of grants. They may
generate funds that can be used for financing cooperation projects ormeasures.
Article 6
1. The aid may cover expenditure on imports and local expenditure
needed to carry out the projects and programmes.
Taxes, duties and charges and the purchase of property shall be excluded
from Community financing.
2. Maintenance and operating costs may be covered for training and
research programmes and for other projects; however, for the latter suchcosts may be covered only in the start-up stage and shall be degressive.
3. However, in the case of cofinancing, account shall be taken in each
case of the procedures applied by the other providers of capital.
Article 7
1. In the case of assistance exceeding ECU 50 000 for which the
Community is the sole source of external aid, participation in invitationsto tender and contracts shall be open on equal terms to all natural andlegal persons of the Member States and ►
M1of the countries referred
to in Article 1 ◄.
2. Paragraph 1 shall apply also to cofinancing.
3. In the case of cofinancing, however, the participation of third
countries in invitations to tender and contracts may be authorized by theCommission, but only on a case-by-case basis, after examination of thecase.
Article 8
The Commission shall administer the aid taking into account the
procedure laid down in Article 9. The general guidelines applicable to
the aid and to sector-based programmes shall be adopted in accordancewith that procedure.1989R3906 — EN — 07.12.2000 — 009.001 — 3
(1) OJ L 160, 26.6.1999, p. 73.
(2) OJ L 160, 26.6.1999, p. 87.▼M8
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Article 9
1. A committee on aid for economic restructuring ►M1in the
countries referred to in Article 1 ◄is hereby set up at the Commission,
consisting of representatives of the Member States and chaired by the
Commission representative. An observer from the European InvestmentBank shall take part in the Committee's proceedings with regard toquestions concerning the Bank.
2. The representative of the Commission shall submit to the
committee a draft of the measures to be taken. The committee shalldeliver its opinion on the draft within a time limit which the chairman
may lay down according to the urgency of the matter. The opinion shall
be delivered by the majority laid down in Article 148 (2) of the Treaty inthe case of decisions which the Council is required to adopt on aproposal from the Commission. The votes of the representatives of theMember States within the committee shall be weighted in the manner set
out in that Article. The chairman shall not vote.
3. The Commission shall adopt decisions which shall apply
immediately. However, if these decisions are not in accordance withthe opinion of the committee, they shall be communicated by theCommission to the Council forthwith. In that event the Commissionshall defer application of the measures which it has decided for a periodof six weeks.
The Council, acting by a qualified majority, may take a different
decision within the time limit referred to in the first subparagraph.
Article 10
From 1990 the Commission shall draw up each year a report on the
implementation of co-operation operations. The report shall be sent to
the European Parliament, the Council and the Economic and SocialCommittee.
Article 11
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable in
all Member States.1989R3906 — EN — 07.12.2000 — 009.001 — 4
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ANNEX
BULGARIA
CZECH REPUBLIC
ESTONIA
LATVIA
LITHUANIA
HUNGARYPOLAND
SLOVAK REPUBLIC
SLOVENIA
ROMANIA1989R3906 — EN — 07.12.2000 — 009.001 — 5
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