COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(93) 529 f ma I 
Brussels, 28 October 1993 
Proposal for a 
COUNCIL REGULATION (EEC) 
extending Council Regulation (EEC) No 792/93 of 
30 March 1993 establishing a cohesion financial instrument 
(presented by the Commission) 
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Explanatory memorandum 
By Regulation (EEC) No 792/93 of 30 March 1993 the Council set up the 
cohesion financial instrument which, for a limited period, provides a 
transition to the Cohesion Fund. 
The purpose of this proposal is to extend the above mentioned Regulation 
until 31 December 1994. 
This proposal is based primarily on the need for continuity between the two 
instruments. Such continuity is provided for in Article 11 of the Regulation 
and in a statement annexed thereto to the effect that "continuity between 
the temporary instrument tncl vhe final instrument is to be ensured if 
necessary by extending the temporary instrument". 
Moreover, the ratification of the Treaty on European Union has been less 
rapid than initially envisaged, which makes it difficult to apply Article 
130d under which the Council, acting unanimously, is to set up a Cohesion 
Fund before 31 December 1993. 
As far as the beneficiary Member States are concerned, they must have a 
period in which to prepare their projects if continuity is to be ensured. As 
the legislation stands at present, this preparatory phase is threatened by 
the uncertainty regarding 1994. 
Extension will also have the effect of doing away with the limitation of 
commitments to the first quarter of 1994. 
Proposal for a Council Regulation (EEC) 
extending Council Regulation (EEC) No 792/93 of 
30 March 1993 establishing a cohesion financial instrument 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to Council Regulation (EEC) No 792/93 of 30 March 1993 
establishing a cohesion financial instrument, and in particular Article 11 
thereof, 
Having regard to the proposal from the Commission, 
Whereas continuity should be ensured between the cohesion financial 
instrument and the Cohesion Fund, 
Whereas such continuity can exist only if the beneficiary Member States are 
enabled to prepare projects sufficiently in advance; 
Whereas, in accordance with the conclusions of the Edinburgh European 
Council and Article 8(3) of Regulation (EEC) No 793/92, projects submitted 
must be of a sufficient scale to have a significant impact in the fields of 
environmental protection or in the improvement of trans-European transport 
infrastructure networks; 
Whereas the Member States concerned should be enabled to fulfil this 
object ive, 
HAS ADOPTED THIS REGULATION: 
Art icle 1 
In Article 11 of Regulation (EEC) No 792/93 the date of 1 April 1994 is 
replaced by the date of 31 December 1994. 
Art icle 2 
This Regulation shall enter into force on the third day following its 
publication in the Official Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable ; 
a I I Member States, 
Done at Brussels, 
For the CounciI 
The President 
1 
FINANCIAL STATEMENT 
SECTION 1: FINANCIAL IMPLICATIONS 
1. Title of operation 
Cohesion Fund 
2. Budget heading involved 
B2.300 
3. Legal basis 
Council Regulation (EEC) No 792/93 of 30 March 1993 establishing a 
cohesion financial instrument, and in particular Article 11 
thereof. 
4. Description of operation 
4.1 Specific objectives of operation 
To extend the above-mentioned Regulation until 31 December 1994 
with a view to ensuring the continuity of financing. 
4.2 Durât ion 
1994 
4.3 Target population 
Greece, Spain, Ireland and Portugal. 
5. Classification of expenditure 
5.1 Non-compuIsor y 
5.2 Differentiated appropriations 
5.3 Not applicab le 
6. Type of expenditure 
Subsidy for joint financing of projets with other sources in the 
public and/or private sector 
7. Financial impact 
7.1 Method of calculating total cost of operation 
The financial resources of the cohesion financial instrument 
are the same as those provided for the Cohesion Fund in the 
financial perspective 
The 1994 PDB provides for ECU 1 853 million at 1992 prices. 
ST 
8. What ant i-fraud measures are planned in the proposal for the 
operation? 
9. Elements of cost-effectiveness analysis 
9•1 Oblect ives 
The objective of the cohesion financial instrument is to 
contribute funding to projects concerning the environment and 
trans-European networks in the area of transport infrastructure 
in the Member States whose per capita GDP is less than 90% of 
the Community average, measured on the basis of purchasing 
power parity, i.e. Spain, Greece, Ireland and Portugal. Each 
of these Member States has presented a convergence programme 
designed to prevent an excessive public deficit. 
9.2. Grounds for the operation 
Article 130d of the Treaty on European Union provides for the 
Council to set up a Cohesion Fund to provide a financial 
contribution to projects in the fields of environment and 
trans-European transport networks. 
In accordance with the conclusions of the European Council's 
meeting in Edinburgh on 11 and 12 December 1992, the Commission 
presented a draft Regulation on a temporary cohesion 
instrument. On 30 March 1993 the Council adopted the Regulation 
establishing the cohesion financial instrument, which entered 
into force on 1 April 1993. 
During the negotiations on the above-mentioned Regulation it 
was declared that continuity between the temporary instrument 
and the definitive instrument would be ensured, if necessary, 
by extending the temporary instrument for a limited period. 
Article 11 of the Regulation of 30 March 1993 provides for this 
extension possibility. 
In point 6 of the explanatory memorandum in document C0M(92) 
599 final of 23 December 1992 the Commission stated that th? 
cohesion financial instrument should be reviewed before 
31 December 1993 in the light of the progress on ratification 
of the Maastricht Treaty. 
9.3. Monitoring and évaluat ion of t he ope r a tIon 
1. The Commission carr-es out a systematic as-oscment of the 
projects in collaboration with the beneficiary Member States. 
The Commission cooperates with I he EiB In ''hit ~-: ^cssm-o^t #hcn 
appropriate. As soon as the aid application «:.., ?eceiv:.)d, s. he 
Ccmiuscsion «riustes the prrjects preror-ïef' by ^e fSmbe" 
Stat-Lî witr. reference to the followina t,r i -r.r U: 
€ 
their medium-term economic and social benefits, which 
should be proportionate to the resources mobilized; this 
assessment is based on a cost-benefit analysis drawn up by 
the Member States-, 
the contribution which the projects can make to the 
implementation of the Community's policies in the fields of 
environment and trans-European networks; 
the establishment of an appropriate balance between 
environment and transport. 
The Commission verifies the expected impact of the project on 
the basis of a cost-benefit analysis. 
The beneficiary Member States concerned provide all the 
necessary information, including the results of feasibility 
studies and ex-ante assessment, so that the evaluation can be 
carried out as effectively as possible. 
The Commission also examines applications for assistance, 
particularly in order to ascertain that the administrative and 
financial mechanisms can ensure effective implementation. 
2. For the purposes of the Regulation, the Member States concerned 
forward to the Commission a description of the management and 
control arrangements set up to ensure the effective 
implementation of the projects. 
They must also inform the Commission of all cases of 
irregularities discovered or which are the subject of legal 
proceed ings. 
3. The implementation of projects is monitored by means of: 
statements presented with applications for payment, 
certifying that the project is progressing satisfactorily 
towards completion and that expenditure has been carried 
out in accordance with the details in the financing plan; 
reports drawn up in accordance with procedures agreed with 
the Member State, showing the progress of the projects 
financed in relation to the physical and financial 
indicators specified in the Commission Decision approving 
the projects; 
Monitoring Committees set up by mutual agreement between 
the Commission and the Member State. 
4. The balance, equal to 20% of the assistance granted to the 
project, is paid once the Member States have presented a report 
stating that the project has been completed in accordance with 
i ts object i ves. 
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