Agreement

between the European Community and the Republic of Cyprus establishing cooperation in the audiovisual field including participation in the MEDIA II programme

THE EUROPEAN COMMUNITY,

of the one part, and

THE REPUBLIC OF CYPRUS,

of the other part,

WHEREAS pursuant to Council Decisions 95/563/EC of 10 July 1995 and 95/564/EC of 22 December 1995, a programme for the development and distribution of European audiovisual works and a training programme for professionals in the European audiovisual programme industry (hereinafter together called MEDIA II programme), were established;

WHEREAS the abovementioned Decisions provide in Articles 6 and 5 respectively that this programme shall be open to the participation of the Republic of Cyprus;

WHEREAS the participation of the Republic of Cyprus in the MEDIA II programme constitutes a significant step in the pre-accession strategy of the Republic of Cyprus;

WHEREAS, in particular, cooperation between the Community and the Republic of Cyprus, with a view to pursuing the objectives fixed for the MEDIA II programme, within the context of transnational cooperation activities involving the Community and the Republic of Cyprus, by its nature enriches the impact of the different actions undertaken pursuant to that programme and strengthens the skill levels of human resources in the Community and the Republic of Cyprus;

WHEREAS the Contracting Parties have a common interest in the development of the European audiovisual programme industry as part of wider cooperation between the Community and the Republic of Cyprus;

WHEREAS the Contracting Parties consequently expect to obtain mutual benefits from the participation of the Republic of Cyprus in the MEDIA II programme;

WHEREAS successful cooperation in the audiovisual field implies a general commitment by the Contracting Parties to take complementary efforts to stimulate the European dimension in this field,

HAVE AGREED AS FOLLOWS:

Article 1

Fields of cooperation

Cooperation between the Community and the Republic of Cyprus shall be established in all areas of actions of the MEDIA II programme in conformity, unless otherwise provided in this Agreement, with the objectives, criteria, procedures and deadlines as defined in Council Decision 95/563/EC of 10 July 1995 on the implementation of a programme encouraging the development and distribution of European audiovisual works (MEDIA II - Development and distribution) (1996 to 2000) and Council Decision 95/564/EC of 22 December 1995 on the implementation of a training programme for professionals in the European audiovisual programme industry (MEDIA II - Training).

Unless otherwise provided in this Agreement, conditions for the participation of organisations or individuals from the Republic of Cyprus in each of the actions shall be the same as those applicable to organisations or individuals from the Member States of the Community.

Article 2

Eligible institutions, organisations and individuals

The eligibility of institutions, organisations and individuals of the Republic of Cyprus shall be subject to the rules set out in Decisions 95/563/EC and 95/564/EC.

Article 3

Procedures

Eligible institutions, organisations and individuals of the Republic of Cyprus shall take part in the MEDIA II programme according to the conditions and rules set out in Decisions 95/563/EC and 95/564/EC. The terms and conditions for the submission, assessment and selection of applications related to eligible institutions, organisations and individuals of the Republic of Cyprus shall be the same as those applicable to eligible institutions, organisations and individuals of the Community.

Article 4

National structures

The Republic of Cyprus shall provide the appropriate structures and mechanisms at national level and shall take all other necessary steps to ensure national coordination and organisation of the implementation of MEDIA II, in conformity with the terms of the relevant provisions of Decisions 95/563/EC and 95/564/EC. In particular the Republic of Cyprus shall undertake to establish a MEDIA desk in collaboration with the Commission of the European Communities.

Article 5

Financial conditions

To cover the costs arising from its participation in MEDIA II, the Republic of Cyprus shall pay each year a contribution to the general budget of the European Communities according to the terms and conditions set out in the Annex hereto, which shall constitute an integral part of this Agreement.

Article 6

Joint Committee

1. A Joint Committee is hereby established.

2. The Joint Committee shall consist, on the one hand, of representatives of the Community and, on the other, of representatives of the Republic of Cyprus.

3. The Joint Committee shall be responsible for the implementation of this Agreement.

4. At the request of either Party the Contracting Parties shall exchange information and hold consultations within the Joint Committee on the activities covered by this Agreement and related financial aspects.

Article 7

Coordination meetings

The representatives of the Community in the Joint Committee shall take the appropriate steps to ensure coordination between the implementation of this Agreement and the decisions taken by the Community in respect of the implementation of MEDIA II. In order to facilitate this coordination and without prejudice to the procedures referred to in Article 5 of Decision 95/563/EC (MEDIA II - Development and Distribution) and Article 4 of Decision 95/564/EC (MEDIA II - Training), the Republic of Cyprus shall be invited to coordination meetings on any question concerning the implementation of this Agreement prior to the regular meetings of the Programme Committee. The Commission shall inform the Republic of Cyprus about the results of such regular meetings.

Article 8

Free movement

The Contracting Parties shall make every effort to facilitate the free movement and residence of all eligible persons to the programmes moving between the Republic of Cyprus and the Community for the purpose of participating in activities covered by this Agreement.

Article 9

Monitoring, evaluation and reports

Without prejudice to the responsibilities of the Commission and the European Court of Auditors in relation to the monitoring and evaluation of the programmes pursuant to Article 7 of Decision 95/563/EC (MEDIA II - Development and Distribution) and Article 6 of Decision 95/564/EC (MEDIA II - Training) respectively, the participation of the Republic of Cyprus in the MEDIA II programme shall be continuously monitored on a partnership basis involving the Commission and the Republic of Cyprus. The Republic of Cyprus shall submit to the Commission, to assist the latter in drafting reports on the experience acquired in the application of the programme, a contribution describing the national measures taken by the Republic of Cyprus in this regard. It will take part in any other specific activities set out by the Community in this regard.

Article 10

Legislative alignment

The Commission and the Republic of Cyprus shall exchange information on, and monitor the progress of, legislative alignment in the audiovisual sector, with particular reference to Council Directive 89/552/EEC of 3 October 1989 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities, as amended by European Parliament and Council Directive 97/36/EC. The Republic of Cyprus shall be invited, where appropriate, to participate in the work of the Contact Committee set up by Directive 97/36/EC.

Article 11

Use of languages

The language to be used as regards the application process, contracts, reports to be submitted and other administrative arrangements for the MEDIA II programme, shall be one of the official languages of the Community.

Article 12

Territories

This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other, to the territory of the Republic of Cyprus.

Article 13

Duration

1. This Agreement is concluded for the duration of the MEDIA II programme (until 31 December 2000).

2. Should the MEDIA II programme be revised, this Agreement may be renegotiated or terminated. The Republic of Cyprus shall be notified of the revised programme within one month of its adoption by the Community. Within a further two months, either Contracting Party may request a renegotiation or termination of this Agreement. In the event of termination the practical arrangements for dealing with outstanding commitments shall be the subject of negotiations between the Contracting Parties.

3. Either Contracting Party may, at any time, request a revision of this Agreement. To this end it shall submit a request to the other Contracting Party. The Contracting Parties may instruct the Joint Committee to examine this request and, where appropriate, to make recommendations to them, particularly with a view to opening negotiations.

Article 14

Entry into force

This Agreement shall enter into force on the first day of the month following the notification by the Contracting Parties of the completion of their respective procedures.

Article 15

Languages of the Agreement

This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish and Swedish languages, each of these texts being equally authentic.

Done at Brussels, on the ninth day of December in the year one thousand nine hundred and ninety-eight.

For the European Community

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For the Republic of Cyprus

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ANNEX

FINANCIAL CONTRIBUTION OF CYPRUS TO THE MEDIA II PROGRAMME

1. The financial contribution of the Republic of Cyprus will cover:

- financial support from the Programme to Cypriot participants,

- financial support from the Programme to a MEDIA desk up to 50 % of its overall running costs,

- supplementary costs of an administrative nature related to the management of the Programme by the Commission stemming from the participation of the Republic of Cyprus.

For every budget year, the aggregated amount of the financial support received from the Programme by Cypriot beneficiaries and by the MEDIA desk of Cyprus will not exceed the contribution paid by the Republic of Cyprus, after deduction of the supplementary costs of an administrative nature.

2. Should the contribution paid by the Republic of Cyprus to the budget of the Community, after deduction of the supplementary costs of an administrative nature, be higher than the aggregated amount of the financial support received by the Cypriot beneficiaries and by the MEDIA desk from the Programme, the Commission of the European Communities 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 the Republic of Cyprus.

3. Cyprus's annual contribution for 1998 will be of ECU 140832. From this sum, an amount of ECU 9858 will cover supplementary costs of an administrative nature related to the management of the Programme by the Commission stemming from Cyprus's participation.

For 1999, Cyprus's annual contribution will be of ECU 172290. From this sum, an amount of ECU 12060 will cover supplementary costs of an administrative nature related to the management of the Programme by the Commission stemming from Cyprus's participation.

For 2000, the amount of Cyprus's contribution shall be the same as for 1999, provided the annual appropriation for the Programme shall be authorised by the budgetary authority in accordance with the relevant financial perspective.

4. The Financial Regulation applicable to the general budget of the European Communities shall apply, notably to the management of the contribution of Cyprus.

After the entry into force of the Agreement and at the beginning of each following year, the Commission shall send to the Republic of Cyprus a call for funds corresponding to its contribution to the costs under the Agreement.

This contribution shall be expressed in ecus and paid into an ecu bank account of the Commission.

The Republic of Cyprus shall pay its contribution to the annual costs under this Agreement 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 Cyprus on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the European Monetary Cooperation Fund, for the month of the due date, for its operations in ecus, increased by 1,5 percentage points.

Information concerning the entry into force of the Agreement between the Community and the Republic of Cyprus on the Republic of Cyprus' participation in a Community programme within the framework of Community audiovisual policy, including participation in the MEDIA II programme, signed on 9 December 1998

The Agreement between the Community and the Republic of Cyprus enters into force on 1 May 1999, as the notification formalities relating to the completion of the procedures laid down in Article 14 of the Agreement were terminated on 30 April 1999.