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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 11.8.19921989R3906 — EN — 14.08.1992 — 003.001 — 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 implementmeasures 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 PolishPeople’ 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 measuresin 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 laiddown 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, environmentalprotection, 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 befinanced pursuant to this Regulation.!B
(1) Opinion delivered on 14 December 1989 (not yet published in the Official
Journal).!M1
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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 000for 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, butonly 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.
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 theBank.
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 laiddown in Article 148 (2) of the Treaty in the case of decisions which theCouncil 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 immediately.
However, if these decisions are not in accordance with the opinion of thecommittee, 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.!B1989R3906 — EN — 14.08.1992 — 003.001 — 3
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 — 14.08.1992 — 003.001 — 4
ANNEX
ALBANIA
BULGARIA
CZECHOSLOVAKIA
ESTONIA
LATVIA
LITHUANIA
HUNGAR YPOLAND
SLOVENIA
ROMANIA
YUGOSLA VIA!
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!M3
!M11989R3906 — EN — 14.08.1992 — 003.001 — 5