Agreement

between the European Community and the Republic of Cyprus adopting the terms and conditions for the participation of the Republic of Cyprus in Community programmes in the fields of training, education and youth

THE EUROPEAN COMMUNITY,

of the one part, and

THE REPUBLIC OF CYPRUS, hereinafter referred to as Cyprus,

of the other part,

Whereas:

(1) Council Decision 1999/382/EC of 26 April 1999 establishing the second phase of the Community vocational training action programme "Leonardo da Vinci"(1), and in particular Article 10 thereof, and Decision No 253/2000/EC of 24 January 2000 of the European Parliament and of the Council establishing the second phase of the Community action programme in the field of education "Socrates"(2), and in particular Article 12 thereof, and Decision No 1031/2000/EC of 13 April 2000 of the European Parliament and of the Council establishing the "Youth" Community action programme(3), and in particular Article 11 thereof, provide that these programmes shall be open to the participation of Cyprus.

(2) Cyprus has expressed the wish to participate in these programmes.

(3) The participation of Cyprus in these programmes constitutes a significant step in the pre-accession strategy of Cyprus as set out in Council Regulation (EC) No 555/2000 of 13 March 2000 on the implementation of operations in the framework of the pre-accession strategy for the Republic of Cyprus and the Republic of Malta(4),

HAVE AGREED AS FOLLOWS:

Article 1

Cyprus shall participate, from 2001, in the second phase of the European Community action programmes Leonardo da Vinci and Socrates ("Leonardo da Vinci II" and "Socrates II") and in the "Youth" Community action programme ("Youth") according to the terms and conditions set out in Annexes I and II which shall form an integral part of this Agreement.

Article 2

This Agreement shall apply from 1 January 2001 until the end of the programmes.

Article 3

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 Cyprus.

Article 4

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

Article 5

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

Done at Brussels, 22 December 2000.

For the European Community

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For the Republic of Cyprus

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(1) OJ L 146, 11.6.1999, p. 33.

(2) OJ L 28, 3.2.2000, p. 1.

(3) OJ L 117, 18.5.2000, p. 1.

(4) OJ L 68, 16.3.2000, p. 3.

ANNEX I

Terms and conditions for the participation of Cyprus in Leonardo da Vinci II, Socrates II and Youth

1. Cyprus will participate in Leonardo da Vinci II, Socrates II and Youth ("Programmes") in conformity, unless otherwise provided in this Agreement, with the objectives, criteria, procedures and deadlines as defined in Decision 1999/382/EC, Decision No 253/2000/EC and Decision No 1031/2000/EC. It will participate in all the activities of the Programmes, with the exception of certain activities within Youth which are devoted to cooperation with third countries which are not full participants in that programme.

2. In conformity with the terms of respective Articles 5 of the said Decisions and with the provisions relating to the responsibilities of the Member States and of the Commission of the European Communities concerning the Leonardo da Vinci, Socrates and Youth National Agencies adopted by the Commission, Cyprus shall establish the appropriate structures for the coordinated management of the implementation of the programme actions at national level and take the measures needed to ensure the adequate funding of these Agencies, which will receive programme grants for their activities. Cyprus will take all other necessary steps for the efficient running of the Programmes at national level.

3. To participate in the Programmes, Cyprus will pay each year a contribution to the general budget of the European Union according to the detailed arrangements described in Annex II.

If necessary in order to take into account programme developments, or the evolution of Cyprus's absorption capacity, the Association Council is entitled to adapt this contribution, so as to avoid budgetary imbalance in the implementation of the programmes.

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

Cypriot experts may be taken into consideration by the Commission when appointing independent experts according to the relevant provisions of the decisions establishing the programmes to assist it in the project evaluation.

5. With a view to ensuring the Community dimension of the Programmes, to be eligible for Community financial support, projects and activities will have to include at least a partner from one of the Member States of the Community.

6. For the mobility activities referred to in Annex I, section III.1 of the Leonardo da Vinci II decision, and for the actions to be managed on a decentralised basis within Socrates and Youth, as well as for financial support to the activities of the National Agencies set up in accordance with point 2 of this Annex, funds will be allocated to Cyprus on the basis of the annual programme budget breakdown decided at Community level and Cyprus's contribution to the programme. The maximum amount of financial support to the activities of the National Agencies will not exceed 50 % of the budget for the National Agencies' work programmes.

7. The Member States of the Community and Cyprus will make every effort, within the framework of existing provisions, to facilitate the free movement and residence of students, teachers, trainees, trainers, university administrators, young people and other eligible persons moving between Cyprus and the Member States of the Community for the purpose of participating in activities covered by this Agreement.

8. Activities covered by this Agreement shall be exempt from imposition by Cyprus of indirect taxes, customs duties, prohibitions and restrictions on imports and exports in respect of goods and services intended for use under such activities.

9. Without prejudice to the responsibilities of the Commission of the European Communities and the Court of Auditors of the European Communities in relation to the monitoring and evaluation of the programmes pursuant to the decisions concerning Leonardo da Vinci II, Socrates II and Youth (Articles 13, 14 and 13 respectively), the participation of Cyprus in the programmes will be continuously monitored on a partnership basis involving the Commission of the European Communities and Cyprus. Cyprus will submit to the Commission relevant reports and take part in other specific activities set out by the Community in that context.

10. In conformity with the Community's financial regulations, contractual arrangements concluded with, or by, entities of Cyprus shall provide for controls and audits to be carried out by, or under the authority of, the Commission and the Court of Auditors. As far as financial audits are concerned, they may be carried out with the purpose of controlling such entities' income and expenditures, related to the contractual obligations towards the Community. In a spirit of cooperation and mutual interest, the relevant authorities of Cyprus shall provide any reasonable and feasible assistance as may be necessary or helpful under the circumstances to perform such controls and audits.

The provisions relating to the responsibilities of the Member States and of the Commission concerning the Leonardo da Vinci, Socrates and Youth National Agencies adopted by the Commission will apply to the relations between Cyprus, the Commission and the Cypriot National Agencies. In the event of irregularity, negligence or fraud imputable to the Cypriot National Agencies, the Cypriot authorities shall be responsible for the funds not recovered.

11. Without prejudice to the procedures referred to in Article 7 of the Decision on Leonardo da Vinci II and respective Articles 8 of the Decisions on Socrates II and Youth, representatives of Cyprus will participate as observers in the Programme Committees, for the points which concern them. These committees shall meet without the presence of representatives of Cyprus for the rest of the points, as well as at the time of voting.

12. The language to be used in all contacts with the Commission, as regards the application process, contracts, reports to be submitted and other administrative arrangements for the programmes, will be any of the official languages of the Community.

13. The Community and Cyprus may terminate activities under this Agreement at any time upon twelve months' notice in writing. Projects and activities in progress at the time of termination shall continue until their completion under the conditions laid down in this Agreement.

ANNEX II

Financial contribution of Cyprus to Leonardo da Vinci II, Socrates II and Youth

1. Leonardo da Vinci

The financial contribution to be paid by Cyprus to the general budget of the European Union to participate in the Leonardo da Vinci II programme will be the following (in euro):

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2. Socrates

The financial contribution to be paid by Cyprus to the general budget of the European Union to participate in the Socrates II programme will be the following (in euro):

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3. Youth

The financial contribution to be paid by Cyprus to the general budget of the European Union to participate in the Youth programme will be the following (in euro):

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4. Cyprus will pay the contribution mentioned above partly from the Cypriot national budget, and partly from Cyprus's pre-accession funds. Subject to a separate programming procedure within the framework of Regulation (EC) No 555/2000, the requested pre-accession funds will be transferred to Cyprus by means of a separate Financing Memorandum. Together with the part coming from Cyprus's State budget, these funds will constitute Cyprus's national contribution, out of which it will make payments in response to annual calls for funds from the Commission.

5. The pre-accession funds will be requested according to the following schedule:

- for the contribution to the Leonardo da Vinci II programme, the following yearly amounts (in euro)

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- for the contribution to the Socrates II programme, the following yearly amounts (in euro)

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- for the contribution to the Youth programme, the following yearly amounts (in euro)

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The remaining part of the contribution of Cyprus will be covered from the Cypriot State budget.

6. The financial regulation applicable to the general budget of the European Union will apply, notably to the management of the contribution of Cyprus.

Travel costs and subsistence costs incurred by representatives and experts of Cyprus for the purposes of taking part as observers in the work of the committees referred to in Annex I, Point 11 or other meetings related to the implementation of the Programmes shall be reimbursed by the Commission on the same basis as and in accordance with the procedures currently in force for nongovernmental experts of the Member States.

7. After the entry into force of this Agreement and at the beginning of each following year, the Commission will send to Cyprus a call for funds corresponding to its contribution to each of the respective programmes under this Agreement.

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

Cyprus will pay its contribution according to the call for funds:

- by 1 May for the part financed from its national budget, provided that the call for funds is sent by the Commission before 1 April, or at the latest one month after the call for funds is sent if later;

- by 1 May for the part financed from the pre-accession funds, provided that the corresponding amounts have been sent to Cyprus by this time, or at the latest in a period of 30 days after these funds have been sent to Cyprus.

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 Central Bank, on the due date, for its operations in euro, increased by 1,5 percentage points.