1989R3906 — EN — 30.04.2004 — 012.001 — 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
►M10Council Regulation (EC) No 2500/2001 of 17 December 2001 L 342 1 27.12.2001
►M11Council Regulation (EC) No 807/2003 of 14 April 2003 L 122 36 16.5.2003
►M12Council Regulation (EC) No 769/2004 of 21 April 2004 L 123 1 27.4.2004
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
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 toimplement measures intended to support the process of economic andsocial reform under way in Hungary and Poland;
Whereas the Community has concluded Agreements on trade and
commercial and economic cooperation with the Republic of Hungaryand 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 inwhich measures are to be un dertakenshould 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 inquestion , powers other thanthose 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 thecriteria laid downinthis Regulation .
Article 3
1. The aid shall be used primarily to support the process of reform
►M1inthe coun tries referred to inArticle 1 ◄, inparticular by
financing or participating in the financing of projects aimed ateconomic restructuring.
Such projects or cooperationmeasures should be un dertakeninparti-
cular in the areas of agriculture, industry, investment, energy, training,
environmental protection, trade and services; they should be aimed inparticular at the private sector ►
M1of the countries referred to in
Article 1 ◄.
The aid may also be used to provide humanitarian assistance.1989R3906 — EN — 30.04.2004 — 012.001 — 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 ofmeasures to be financed pursuant to this Regulation.
3. For applicant countries with accession partnerships with the
European Union, funding under the PHARE programme shall focus on
the mainpriorities for the adoptionof the acquis communautaire, i.e.
building up the administrative and institutional capacities of the appli-cant States and investment, except for the type of investments financedin 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 ofintegrated industrial reconstruction or regional developmentprogrammes.
Article 4
The aid shall be granted by the Community, either independently or in
the form of cofinancing with the Member States, the European Invest-
ment Bank, third countries or multilateral bodies or the recipientcountries 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 lattersuch costs may be covered only in the start-up stage and shall bedegressive.
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. Participation in invitations to tender and contracts shall be open
on equal terms to all natural and legal persons from the Member States
coming within the scope of the Treaties, from candidate countries for
accession to the European Union as well as from countries benefitingfrom assistance in accordance with Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herze-govina, Croatia, the Federal Republic of Yugoslavia and the formerYugoslav Republic of Macedonia (
3). The contracting authority may,
in duly substantiated cases and on a case-by-case basis, authorise the
participation of natural and legal persons from third countries in invita-tions to tender and contracts.
2. Supplies shall, withinthe scope of the Treaties, origin ate inthe
Member States, in candidate countries for accession to the European
Union or in countries benefiting from assistance in accordance withRegulation (EC) No 2666/2000. In duly substantiated cases and on a1989R3906 — EN — 30.04.2004 — 012.001 — 3
(1) OJ L 160, 26.6.1999, p. 73.
(2) OJ L 160, 26.6.1999, p. 87.
(3) OJ L 306, 7.12.2000, p. 1. Regulationas last amen ded by Regulation(EC)
No 2415/2001 (OJ L 327, 13.12.2001, p. 3).▼M8
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case-by-case basis, the contracting authority may give derogation from
this requirement.
Article 8
The Commission shall administer the aid taking into account the proce-
dure laid down in Article 9. The general guidelines applicable to the
aid and to sector-based programmes shall be adopted in accordancewith that procedure.
Article 9
1. The Commissionshall be assisted by a committee referred to as
the committee on aid for economic restructuring in the countriesreferred to in Article 1. An observer from the European InvestmentBank shall take part in the committee's proceedings with regard to
questions concerning the Bank.
2. Where reference is made to this Article, Articles 4 and 7 of Deci-
sion1999/468/EC (
1) shall apply.
The period laid downinArticle 4(3) of Decision1999/468/EC shall be
set at six weeks.
3. The committee shall adopt its rules of procedure.
Article 10
From 1990 the Commissionshall draw up each year a report onthe
implementation of co-operation operations. The report shall be sent tothe 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 publicationinthe Official Journal of the European Communities .
This Regulation shall be binding in its entirety and directly applicable
inall Member States.1989R3906 — EN — 30.04.2004 — 012.001 — 4
(1) OJ L 184, 17.7.1999, p. 23.▼B
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ANNEX
BULGARIA
CZECH REPUBLIC
ESTONIA
LATVIA
LITHUANIA
HUNGARYPOLAND
SLOVAK REPUBLIC
SLOVENIA
ROMANIA1989R3906 — EN — 30.04.2004 — 012.001 — 5
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