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"B "M1 COUNCIL REGULATION (EEC) No 3906/89
of 18 December 1989
on economic aid to certain countries of Central and Eastern Europe 3
(OJ L 375, 23.12.1989, p. 11)
Amended by:
Official Journal
No page date
"M1 Council Regulation (EEC) No 2698/90 of 17 September 1990 L 257 1 21.9.1990
"M2 Council Regulation (EEC) No 3800/91 of 23 December 1991 L 357 10 28.12.1991
"M3 Council Regulation (EEC) No 2334/92 of 7 August 1992 L 227 1 11.8.1992
"M4 Council Regulation (EEC) No 1764/93 of 30 June 1993 L 162 1 3.7.1993
"M5 Council Regulation (EC) No 1366/95 of 12 June 1995 L 133 1 17.6.1995
"M6 Council Regulation (EC) No 463/96 of 11 March 1996 L 65 3 15.3.1996
"M7 Council Regulation (EC) No 753/96 of 22 April 1996 L 103 5 26.4.1996
"M8 Council Regulation (EC) No 1266/1999 of 21 June 1999 L 161 68 26.6.1999
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).1989R3906 — EN — 29.06.1999 — 008.001 — 1
COUNCIL REGULATION (EEC) No 3906/89
of 18 December 1989
on economic aid to certain countries of Central and Eastern Europe
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 the
measures 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 3, 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 3.
The aid may also be used to provide humanitarian assistance.
2. Account shall be taken, inter alia, of the preferences and wishes
expressed by the recipient countries concerned in the choice of measures
to be financed pursuant to this Regulation.!B
(1) Opinion delivered on 14 December 1989 (not yet published in the Official
Journal).!M1
!B
!M1
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!B1989R3906 — EN — 29.06.1999 — 008.001 — 2
!M8
3. For applicant countries with accession partnerships with the
European Union, funding under the PHARE programme shall focus on
the 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 and
rural development which form an incidental but indispensable part of
integrated industrial reconstruction or regional development pro-
grammes.
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 or
measures.
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 such
costs 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 invitations
to tender and contracts shall be open on equal terms to all natural and
legal persons of the Member States and "M1of the countries referred
to in Article 1 3.
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 the
Commission, but only on a case-by-case basis, after examination of the
case.
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 accordance
with that procedure.
(1) OJ L 160, 26.6.1999, p. 73.
(2) OJ L 160, 26.6.1999, p. 87.!B1989R3906 — EN — 29.06.1999 — 008.001 — 3
Article 9
1. A committee on aid for economic restructuring "M1in the
countries referred to in Article 1 3is hereby set up at the Commission,
consisting of representatives of the Member States and chaired by the
Commission representative. An observer from the European Investment
Bank shall take part in the Committee’s proceedings with regard to
questions concerning the Bank.
2. The representative of the Commission shall submit to the committee
a draft of the measures to be taken. The committee shall deliver 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 in the
case of decisions which the Council is required to adopt on a proposal
from the Commission. The votes of the representatives of the Member
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 immedi-
ately. However, if these decisions are not in accordance with the opinion
of the committee, they shall be communicated by the Commission to the
Council forthwith. In that event the Commission shall defer application
of the measures which it has decided for a period of 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 Social
Committee.
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.!B1989R3906 — EN — 29.06.1999 — 008.001 — 4
ANNEX
ALBANIA
BOSNIA AND HERZEGOVINA
BULGARIA
CROATIA
CZECH REPUBLIC
ESTONIA
LATVIA
LITHUANIA
HUNGAR Y
POLAND
SLOV AK REPUBLIC
SLOVENIA
ROMANIA
YUGOSLA VIA
FORMER YUGOSLA V REPUBLIC OF MACEDONIA!M1
!M2
!M7
!M1
!M5
!M4
!M2
!M1
!M4
!M3
!M1
!M61989R3906 — EN — 29.06.1999 — 008.001 — 5