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"B COUNCIL REGULATION (EC) No 2666/2000
of 5 December 2000
on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the
Former Yugoslav Republic of Macedonia, repealing Regulation (EC) No 1628/96 and amending Regulations
(EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and 1999/311/EC
(OJ L 306, 7.12.2000, p. 1)
Corrected by:
"C1 Corrigendum, OJ L 38, 8.2.2001, p. 51 (2666/2000)2000R2666 — EN — 07.12.2000 — 000.001 — 1
COUNCIL REGULATION (EC) No 2666/2000
of 5 December 2000
on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal
Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia,repealing Regulation (EC) No 1628/96 and amending Regulations (EEC)
No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and
1999/311/EC
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in
particular Article 308 thereof,
Having regard to the proposal from the Commission,Having regard to the Opinion of the European Parliament (
1),
Whereas:(1) The Community provides assistance for Albania, Bosnia and
Herzegovina, Croatia, the Federal Republic of Yugoslavia and theFormer Yugoslav Republic of Macedonia.
(2) Most of this Community assistance is currently provided under
Council Regulation (EC) No 1628/96 of 25 July 1996 relating to aid
for Bosnia and Herzegovina, Croatia, the Federal Republic of
Yugoslavia and the Former Yugoslav Republic of Macedonia(OBNOV A) (
2) and under Council Regulation (EEC) No 3906/89 of
18 December 1989 on economic aid to certain countries of Central and
Eastern Europe (PHARE) (3). This means that the Community
assistance is subject to different sets of procedures, which encumbersmanagement. In the interests of efficiency it is therefore desirable to
establish a single legal framework for this assistance, as requested by
the European Council at its meeting in Helsinki on 10 and 11December 1999. It is therefore appropriate to repeal Regulation (EC)No 1628/96 and to amend Regulation (EEC) No 3906/89. However, in
order to ensure the continuity of the activities of the European Agency
for Reconstruction, the provisions of Regulation (EC) No 1628/96which concern the establishment and operation of the Agency shouldbe incorporated into a new Regulation, which should enter into force
on the date of that repeal.
(3) The European Council, meeting in Lisbon on 23 and 24 March 2000,
confirmed that its overall objective remained the fullest possibleintegration of the countries of the region into the political andeconomic mainstream of Europe and that the stabilisation and
association process was the centrepiece of its policy in the Balkans.
(4) The European Council, meeting in Feira on 19 and 20 June 2000,
recognised the countries concerned by the stabilisation and associationprocess to be potential candidates for EU membership.
(5) The existing Community assistance should be expanded and redirected
to adjust it to the European Union’ s political objectives for the region
and, particularly, to contribute to the stabilisation and association
process and increase the responsibility of recipient countries andentities in relation to that process.
(6) To that end Community assistance will be focused mainly on building
up an institutional, legislative, economic and social framework
directed at the values and models subscribed to by the European
Union and on promoting a market economy, with due regard forpriorities agreed with the partners concerned.
(7) A precondition for receiving assistance is that the recipients respect
democratic principles, the rule of law, human and minority rights,
fundamental freedoms and the principles of international law.!B
(1) Opinion delivered on 15 November 2000 (not yet published in the Official
Journal).
(2) OJ L 204, 14.8.1996, p. 1. Regulation as last amended by Regulation (EC) No
2454/1999 (OJ L 299, 20.11.1999, p.1).
(3) OJ L 375, 23.12.1989, p. 11. Regulation as last amended by Regulation (EC) No
1266/1999 (OJ L 161, 26.6.1999, p. 68).2000R2666 — EN — 07.12.2000 — 000.001 — 2
(8) The regional dimension of Community assistance should be given
special attention, with a view to stepping up regional cooperation andsupporting the European Union’ s role as a driving force within theStability Pact.
(9) In view of the political situation in some areas and the nature of the
various entities that have responsibility for implementing assistancethere, it is desirable to provide that the assistance can be supplied insome cases directly to recipients other than the State.
(10) To make Community assistance more effective and ensure it is
properly implemented, the Commission should adopt general guide-lines, in accordance with the management procedure laid down in thisRegulation, taking into account the objectives of reform of external
aid.
(11) To promote cooperation within the region, provision should be made
for the candidate countries and, on a case-by-case basis, the countries
covered by the TACIS and MEDA programmes to participate in the
tendering procedures and contracts.
(12) Provision should be made for checks and for the protection of the
Community’s financial interests, inter alia by enabling the Commis-
sion, including the European Fraud Prevention Office (OLAF), and the
Court of Auditors to exercise their respective powers pursuant toCouncil Regulation (Euratom, EC) No 2185/96 of 11 November 1996concerning on-the-spot checks and inspections carried out by the
Commission in order to protect the European Communities’ financial
interests against fraud and other irregularities (
1)a n dC o u n c i l
Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on theprotection of the European Communities’ financial interests (
2).
(13) The Community assistance should be governed by a strategy
framework and by annual and multiannual programming, which willbe put to the management committee set up by this Regulation for an
opinion. This will situate the assistance within a medium-term outlook
and will make it possible to ensure that it complements and remainsconsistent with that of the Member States.
(14) The measures necessary for the implementation of this Regulation
should be adopted in accordance with Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the exercise ofimplementing powers conferred on the Commission (
3).
(15) In the case of the Federal Republic of Yugoslavia, provision should be
made for the Commission to be able to delegate implementation of
assistance programmes to the European Agency for Reconstruction.
(16) In the light of the scope of this Regulation, consequent changes will
need to be made to Council Regulation (EEC) No 3906/89 of 18
December 1989 on economic aid to certain countries of Central and
Eastern Europe (PHARE) (4), to Council Decision 97/256/EC of 14
April 1997 granting a Community guarantee to the European
Investment Bank against losses under loans for projects outside the
Community (Central and Eastern European countries, Mediterraneancountries, Latin American and Asian countries, South Africa, theFormer Yugoslav Republic of Macedonia and Bosnia and Herze-
govina) (
5), to Council Decision 1999/311/EC adopting the third phase
of the trans-European cooperation scheme for higher education(Tempus III) (2000 to 2006) (
6) and to Council Regulation (EEC) No
1360/90 of 7 May 1990 establishing a European Training Foun-
dation (7).
(17) The operations covered by this Regulation are part of the Community’s
Western Balkans policy and are needed to implement one of theCommunity’s objectives.!B
(1) OJ L 292, 15.11.1996, p. 2.
(2) OJ L 312, 23.12.1995, p. 1.
(3) OJ L 184, 17.7.1999, p. 23.
(4) OJ L 375, 23.12.1989, p. 11. Regulation as last amended by Regulation (EC) No
1266/1999 (OJ L 161, 26.6.1999, p. 68).
(5) OJ L 102, 19.4.1997, p. 33. Decision as last amended by Decision 98/729/EC (OJ
L 346, 22.12.1998, p. 54).
(6) OJ L 120, 8.5.1999, p. 30. Decision as amended by Decision 2000/460/EC (OJ L
183, 22.7.2000, p. 1).
(7) OJ L 131, 23.5.1990, p. 1. Regulation as last amended by Regulation (EC) No
1572/98 (OJ L 206, 23.7.1998, p. 1).2000R2666 — EN — 07.12.2000 — 000.001 — 3
(18) The Treaty does not provide, for the adoption of this Regulation,
powers other than those under Article 308,
HAS ADOPTED THIS REGULATION:
Article 1
1. The Community shall provide assistance, hereinafter referred to as
‘Community assistance’, to Albania, Bosnia and Herzegovina, Croatia, the
Federal Republic of Yugoslavia and the Former Yugoslav Republic ofMacedonia.
2. The following shall be directly eligible for Community assistance: the
State, entities under United Nations jurisdiction and administration, federal,
regional and local bodies, public and semi-public bodies, the social partners,
organisations providing support to businesses, cooperatives, mutual societies,associations, foundations and non-governmental organisations.
3. Authorities established by the international community to act as the civil
administration in some areas, such as the High Representative in Bosnia andHerzegovina and the United Nations Interim Administration Mission in
Kosovo (UNMIK), shall be duly consulted on implementation of the
Community assistance in their areas. Any programmes or projects theyimplement shall be eligible for Community assistance under this Regulation,
except in the case of those entities’ running costs; where appropriate, such
costs may draw on a grant provided under Council Regulation (EC) No1080/2000 of 22 May 2000 on support for the United Nations Interim Missionin Kosovo (UNMIK) and the Office of the High Representative in Bosnia and
Herzegovina (OHR) (
1).
4. The financial reference amount for the implementation of this
programme for the period 2000 to 2006 shall be EUR 4 650 million.
The annual appropriations shall be authorised by the budgetary authority
within the limits of the financial perspective.
Article 2
1. The main purpose of the Community assistance is to support participation
by the recipient countries in the stabilisation and association process.
2. The Community assistance shall inter alia be for:
(a) reconstruction, aid for the return of refugees and displaced persons, and
stabilisation of the region;
(b) the creation of an institutional and legislative framework to underpin
democracy, the rule of law and human and minority rights, reconciliation
and the consolidation of civil society, the independence of the media andthe strengthening of legality and of measures to combat organised crime;
(c) sustainable economic development and market-economy-orientated
economic reform;
(d) social development, with particular reference to poverty reduction,
gender equality, education, teaching and training, and environmental
rehabilitation;
(e) the development of closer relations among recipient countries, between
them and the European Union and between them and countries which are
candidates for accession to the European Union, in coordination withother instruments for cross-border, transnational and regional trans-boundary cooperation with non-member countries;
(f) fostering regional, transnational, cross-border and interregional cooper-
ation among the recipient countries, between them and the European
Union and between the recipient countries and other countries of the
region.
3. The Community assistance shall be implemented by financing investment
and institution-building programmes in accordance with the programmingprinciples set out in the general guidelines adopted by the Commission in
accordance with the procedure referred to in Article 10(2).!B
(1) OJ L 122, 24.5.2000, p. 27.2000R2666 — EN — 07.12.2000 — 000.001 — 4
Article 3
1. Save in exceptional, duly substantiated cases, Community assistance shall
be provided as follows:
(a) a strategic framework (‘country strategic paper’), for the period 2000 to
2006, which shall serve to set long-term objectives for assistance and
priority fields of action in recipient countries. For this purpose, due
account shall be taken of all relevant assessments. The strategicframework shall be revised if exceptional events so require or in thelight of the results of the assessment provided for in Article 12;
(b) on the basis of the strategic framework referred to in point (a),
multiannual indicative programmes shall be drawn up, for three-year
periods, for each country receiving Community assistance. They shall
reflect priorities set under the stabilisation and association process andpriorities identified and agreed with the partners concerned. Such
programmes shall describe the reforms to be carried out by partners in
priority sectors and include an assessment of progress made in doing so.They shall give indicative amounts (overall and for each priority sector)and set out criteria for funding the programme concerned. They shall be
updated each year as necessary. They may be amended in the light of
experience and progress in implementing stabilisation and associationagreements, particularly as regards regional cooperation;
(c) annual action programmes, based on the multiannual indicative
programmes referred to in point (b), shall be drawn up for each countryreceiving Community assistance. They shall set out, as precisely as
possible, for a given operational year, the aims being pursued, the fields
of action and the budget provided. The annual action programmes shallcontain a detailed list of projects to be financed and specify the relevant
amounts.
2. The strategic framework, the multiannual indicative programmes and the
annual action programmes referred to in paragraph 1 shall be adopted in
accordance with the procedure referred to in Article 10(2).
Any amendments shall be adopted in accordance with the same procedure.
Article 4
1. Where Community assistance for the Federal Republic of Yugoslavia is
implemented by the European Agency for Reconstruction, in accordance with
Council Regulation (EC) No 2667/2000 of 5 December 2000 on the EuropeanAgency for Reconstruction (
1):
(a) the strategic framework, multiannual indicative programme and annual
action programme referred to in Article 3 covering Community assistance
implemented by the Agency shall be adopted in accordance with the
procedure referred to in Article 10(2). The utmost account shall be takenof recommendations made by the Agency’ s Governing Board, inaccordance with Article 2(2) of Regulation (EC) No 2667/2000;
(b) the draft annual action programmes shall be submitted to the Commission
by the Agency’ s Director. The Governing Board of the Agency shall be
consulted on the implementation of the annual action programme, as laid
down in Article 4 of Regulation (EC) No 2667/2000.
2. The procedure laid down in Article 10(2) shall also be used to adopt
programmes of assistance for the Federal Republic of Yugoslavia which arenot to be implemented by the Agency and are therefore not included in theannual action programme.
Article 5
1. Respect for the principles of democracy and the rule of law and for
human and minority rights and fundamental freedoms is an essential element
for the application of this Regulation and a precondition of eligibility forCommunity assistance. If these principles are not respected, the Council,acting by qualified majority on a proposal from the Commission, may take
appropriate measures.!B
(1) See page 7 of this Official Journal.2000R2666 — EN — 07.12.2000 — 000.001 — 5
2. Community assistance shall also be subject to the conditions defined by
the Council in its Conclusions of 29 April 1997, in particular as regards therecipients’ undertaking to carry out democratic, economic and institutionalreforms.
Article 6
1. Community assistance shall be in the form of grants.
2. Community financing may be used to cover expenditure on preparing,
implementing, monitoring, checking and evaluating projects and programmes
and on information.
3. Community financing may be used for co-financing, which should be
sought whenever feasible. Co-financing of investment projects financed byguaranteed loans from the European Investment Bank may, in exceptionalcases, take the form of interest rate subsidies.
4. Community financing may cover the grant part of ad hoc exceptional
financial assistance decisions which are taken by the Council on the basis of
Article 308 of the Treaty.
5. Community financing may not be used for paying taxes, duties or charges
or for acquiring immovable property.
Article 7
1. The Commission shall implement the Community assistance in accord-
ance with the Council Financial Regulation of 21 December 1977 applicable
to the general budget of the European Communities (
1).
2. In taking financing decisions under this Regulation and carrying out the
assessments referred to in Article 12, the Commission shall have regard to the
principles of sound financial management, in particular economy andcost-effectiveness, as laid down in the Financial Regulation.
3. Participation in invitations to tender and contracts shall be open on equal
terms to all natural and legal persons from Member States, States which are
recipients under this Regulation and candidate countries for accession to the
European Union.
Participation by countries which are recipients under the TACIS and MEDA
programmes shall also be authorised by the Commission on a case-by-casebasis.
4. In the case of co-financing, the Commission may authorise participation
in invitations to tender and contracts by nationals of other countries on a
case-by-case basis.
5. The Commission shall provide information on invitations to tender,
procurement, contracts and financing agreements, as laid down in the Annexhereto.
Article 8
1. Financing decisions and any agreements or contracts resulting therefrom
shall expressly provide for monitoring and financial control by the
Commission, including OLAF , and audits by the Court of Auditors, if
necessary on the spot.
2. In addition, the Commission may carry out on-the-spot checks and
inspections in accordance with Regulation (Euratom, EC) No 2185/96.Measures taken by the Commission in accordance with the procedure referred
to in Article 10(2) shall provide for adequate protection of the financial
interests of the Community as required by Regulation (EC, Euratom) No2988/95.
Article 9
1. Financing decisions not covered by multiannual indicative programmes
and annual action programmes shall be individually adopted by the
Commission in accordance with the procedure referred to in Article 10(2).!B
(1) OJ L 356, 31.12.1977, p. 1.2000R2666 — EN — 07.12.2000 — 000.001 — 6
!C1
2. Decisions amending Decisions adopted in accordance with the procedure
referred to in Article 10(2) shall be adopted by the Commission where they do
not comprise substantial changes to the nature of the original programmes andactions and, as regards the financial element, where they do not exceed 20 %of the total amount allocated for the programme or action in question, subject
to a limit of EUR 4 million. The CARDS Committee referred to in Article 10
shall be notified of all amended decisions.
Article 10
1. The Commission shall be assisted by a management committee,
hereinafter referred to as ‘the CARDS Committee’.
2. Where reference is made to this paragraph, Articles 4 and 7 of Decision
1999/468/EC shall apply.
The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at
45 days.
3. The Committee shall adopt its rules of procedure.
4. The Committee may examine any other question concerning this
Regulation which is submitted to it by the Chairman, whether or not at therequest of the representative of a Member State, and in particular any question
relating to the programming or general implementation of measures or to
co-financing.
Article 11
1. In the interests of making the Community assistance cohesive and more
efficient and complementary, the Member States and the Commission shallexchange any relevant information on the operations they intend toimplement.
2. In liaison with the Member States and on the basis of a regular mutual
exchange of information, including on the spot, particularly as regardsstrategy papers, multiannual indicative programmes and annual action
programmes and the preparation of projects and monitoring of their
implementation, the Commission shall ensure effective coordination of theassistance efforts made by the Community, including the EIB, and by eachMember State, in order to make their cooperation programmes more
consistent and complementary. In addition, it shall encourage coordination
and cooperation with international financial institutions, United Nationscooperation programmes and other donors. Practical arrangements foron-the-spot coordination shall be covered by guidelines to be approved by
the CARDS Committee.
Article 12
Every year the Commission shall submit to the European Parliament and the
Council a progress report on the Community assistance. That report shall
contain information on the action financed during the year and on the findingsof monitoring work and shall give an assessment of the results achieved in the
implementation of the strategic framework, the multiannual indicative
programmes and the annual action programmes referred to in Article 3(1).
Article 13
1. The Council shall review this Regulation before 31 December 2004.
2. For that purpose, not later than 30 June 2004, the Commission shall
submit to the Council an evaluation report, together with proposals for thefuture of this Regulation and for any amendments needing to be made to it.
Article 14
1. Regulation (EC) No 1628/96 is hereby repealed.
2. In the Annex to Regulation (EEC) No 3906/89, the names ‘Bosnia and
Herzegovina’, ‘Albania’, ‘Croatia’, ‘the Former Yugoslav Republic ofMacedonia’ and ‘Yugoslavia’ shall be deleted.!B2000R2666 — EN — 07.12.2000 — 000.001 — 7
Article 15
Regulations (EEC) No 3906/89 and (EC) No 1628/96 shall nevertheless
remain applicable to projects and programmes for which the procedures
leading to the Commission financing decision have been started but have not
yet been completed at the time of entry into force of this Regulation.
Article 16
The first paragraph of Article 1 of Regulation (EEC) No 1360/90 shall be
replaced by the following:
‘This Regulation hereby establishes the European Training Foundation
(hereinafter referred to as the “Foundation’’), whose objective shall be to
contribute to the development of the vocational training systems of:
— the countries of Central and Eastern Europe designated as eligible for
economic aid by the Council in Regulation (EEC) No 3906/89 or inany subsequent relevant legal act,
— the new independent States of the former Soviet Union and Mongolia
which are the beneficiaries of the programme to assist economicreform and recovery pursuant to Regulation (Euratom, EC) No
1279/96 or any subsequent relevant legal act,
— the Mediterranean non-member countries and territories which are
the beneficiaries of the financial and technical measures to
accompany the reform of their economic and social structurespursuant to Regulation (EC) No 1488/96 or any subsequent relevant
legal act, and
— the countries which are beneficiaries under Regulation (EC) No
2666/2000 (*) or any subsequent relevant legal act.
Those countries shall be hereinafter referred to as the “eligible
countries’’.
(*) OJ L 306, 7.12.2000, p. 1.’
Article 17
The second subparagraph of Article 1a(5) of Decision 97/256/EC shall be
replaced by the following:
‘Financial decisions relating to this Decision shall be adopted in
accordance with the procedures laid down in Regulation (EC) No2666/2000 (*).
(*) OJ L 306, 7.12.2000, p. 1.’
Article 18
The first paragraph of Article 2 of Decision 99/311/EC shall be replaced by
the following:
‘Tempus III concerns the countries which are beneficiaries under
Regulation (EC) No 2666/2000 (*) and the new independent States of
the former Soviet Union and Mongolia mentioned in Regulation (EC,
Euratom) No 99/2000 (**) (which replaces the old TACIS programme).These countries are hereinafter referred to as “eligible countries’’.
(*) OJ L 306, 7.12.2000, p. 1.
(**) OJ L 12, 18.1.2000, p. 1.’
Article 19
This Regulation shall enter into force on the day of its publication in the
Official Journal of the European Communities .
It shall apply until 31 December 2006.
This Regulation shall be binding in its entirety and directly applicable in all
Member States.!B2000R2666 — EN — 07.12.2000 — 000.001 — 8
ANNEX
Information on invitations to tender, procurement, contracts and financing
agreements referred to in Article 7(5)
1. The Commission, acting in liaison with the Member States, shall provide all
interested businesses, organisations and institutions in the Community, at their request,with the necessary documentation on the general aspects of programmes referred to inthis Regulation and the conditions for participation in those programmes, making
appropriate use of the Internet.
2. The Commission shall notify the CARDS Committee and, where appropriate, the
Governing Board of the European Agency for Reconstruction of the financing decisionsadopted, which shall contain specific details of the contracts anticipated, including theirlikely value, the procedure for awarding them and the dates envisaged for invitations totender. Those specific details shall be released on the Internet.
3. The results of invitations to tender, including information on numbers of tenders
received as at the contract award date and names and addresses of successful tenderers,
shall be published in the Official Journal of the European Communities and released on
the Internet. The Commission shall supply the CARDS Committee and, whereappropriate, the Governing Board of the European Agency for Reconstruction, everythree months, with specific detailed information on contracts concluded inimplementation of programmes and projects referred to in this Regulation.
4. The Commission shall forward financing agreements or similar documents to the
CARDS Committee for information.!
B2000R2666 — EN — 07.12.2000 — 000.001 — 9