Decision No 4/2000 of the UE-Latvia Association Council

of 9 October 2000

adopting the terms and conditions for the participation of the Republic of Latvia in the Community programme in the field of small and medium-sized enterprises

(2000/663/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their member States, of the one part, and the Republic of Latvia, of the other part(1), and in particular Article 109 thereof,

Whereas:

(1) According to Article 109 of the Europe Agreement, Latvia may participate in Community framework programmes, projects or other Community actions in the fields laid down in Annex XVIII, which include the field of small and medium-sized enterprises.

(2) Council Decision 97/15/EC of 9 December 1996 on a third multiannual programme for small and medium-sized enterprises (SMEs) in the European Union (1997 to 2000)(2) adopts a programme for Community policy for SMEs, including craft and very small enterprises, for a period of four years from 1 January 1997, and Article 7(1) thereof provides that this programme is to be open to the participation of the associated Central European countries.

(3) According to Article 109 of the Europe Agreement the terms and conditions for the participation of Latvia in the activities referred to in Annex XVIII are to be decided by the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

The Republic of Latvia shall participate in the Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (1997 to 2000) in accordance with the terms and conditions set out in Annexes I and II which shall form an integral part of this Decision.

Article 2

This Decision shall apply for the duration of the programme.

Article 3

This Decision shall enter into force on the first day of the month following its adoption.

Done at Brussels, 9 October 2000.

For the Association Council

The President

H. Védrine

(1) OJ L 26, 2.2.1998, p. 1.

(2) OJ L 6, 10.1.1997, p. 25.

ANNEX I

Terms and conditions for the participation of Latvia in the Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (1997 to 2000)

1. Latvia will participate in the activities of the Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (1997 to 2000) (hereinafter called "the Programmes") in conformity, unless otherwise provided in this Decision, with the objectives, criteria, procedures and time limits laid down in Council Decision (97/15/EC) of 9 December 1996 on a Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (1997 to 2000) and in particular Article 7(1) thereof.

2. The terms and conditions for the submission, assessment and selection of applications related to eligible institutions, organisations and individuals of Latvia will be the same as those applicable to eligible institutions, organisations and individuals of the Community.

3. Where appropriate, in order to ensure the Community dimension of the Programme, transitional projects and activities proposed by Latvia will be required to include a minimum number of partners from the Member States of the Community. This minimum number will be decided in the framework of the implementation of the Programme, taking into account the nature of the various activities, the number of partners in a given project, and the number of countries participating in the Programme.

4. Latvia will pay each year a contribution to the general budget of the European Union to cover the costs resulting from its participation in the Programme (see Annex II). The Association Committee is entitled to adapt this contribution whenever necessary.

5. The Member States of the Community and Latvia will make every effort, within the framework of the existing provisions, to facilitate the free movement and residence of all eligible persons to the Programme moving between Latvia and the Member States of the Community for the purpose of participating in activities covered by the Decision.

6. Without prejudice to the responsibilities of the Commission and the Court of Auditors of the European Community in relation to the evaluation of the Programme according to the Decision on a Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (Article 6), the participation of Latvia in the Programme will be continuously evaluated on a partnership basis involving Latvia and the Commission of the European Communities. Latvia will submit the necessary reports to the Commission and take part in other specific activities set out by the Community in that context.

7. Without prejudice to the procedures referred to in Article 4 of the Decision on a Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union, Latvia will be invited to coordination meetings on any question concerning the implementation of this Decision prior to regular meetings of the Programme Committee. The Commission will inform Latvia about the results of such regular meetings.

8. The language to be used as regards the application process, contracts, reports to be submitted and other administrative arrangements for the Programme, will be one of the official languages of the Community.

ANNEX II

Financial contribution of Latvia to the Third Multiannual Programme for Small and Medium-sized Enterprises (SMEs) in the European Union (1997 to 2000)

1. The financial contribution of Latvia will cover:

(a) financial support from the Programme to the participation of Latvian entities in activities as defined in Annex I.1,

(b) supplementary costs of an administrative nature related to the management of the Programme by the Commission stemming from Latvia's participation.

2. For every financial year, the aggregated amount of subsidies or any other financial support received from the Programme by the Latvian beneficiaries will not exceed the contribution paid by Latvia, after deduction of the supplementary administrative costs.

Should the contribution paid by Latvia to the general budget of the European Union, after deduction of the supplementary administrative costs, be higher than the aggregated amount of subsidies or other financial support received by the Latvian beneficiaries from the Programme, the Commission will transfer the balance to the next budgetary exercise, and it will be deducted from the following year's contribution. Should such a balance be left when the Programme comes to an end, the corresponding amount will be reimbursed to Latvia.

3. Latvia's annual contribution will be of EUR 479360 from 1999. From this sum, an amount of EUR 31360 will cover supplementary administrative costs related to the management of the Programme by the Commission stemming from Latvia's participation.

4. The financial regulations applicable to the general budget of the European Union will apply, notably to the management of the contribution of Latvia.

Upon entry into force of this Decision and at the beginning of each following year, the Commission will send to Latvia a call for funds corresponding to its contribution to the costs under this Decision.

This contribution will be expressed in euro and paid into a euro bank account of the Commission.

Latvia will pay its contribution to the annual costs under this Decision according to the call for funds and at the latest three months after the call for funds is sent. Any delay in the payment of the contribution shall give rise to the payment of interest by Latvia on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the ECB, for the month of the due date, for its operations in euro, increased by 1,5 percentage points.

5. Latvia will pay the supplementary administrative costs referred to in paragraph 3 from its national budget.

6. Latvia will pay EUR 448000 of the remaining costs of its participation in the Programme from its national budget.