Proposal for a Council Decision concerning the Community position within the Association Council on the participation of Hungary in a Community programme within the framework of Community audiovisual policy (97/C 368/08) COM(97) 562 final - 97/0311(CNS)

(Submitted by the Commission on 10 November 1997)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 127 (4) and Article 130 (3), in conjunction with Article 228 (3) first paragraph thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas Article 91 (2) of the Europe Agreement stipulates that 'the Parties shall coordinate and, where appropriate, harmonize their policies regarding the regulation of cross-border broadcasts, technical standards and the promotion of European audiovisual technology`; whereas in this regard the relevant Community instruments are Directive 89/552/EEC of 3 October 1989 as last amended by European Parliament and Council Directive 97/36/EC of 30 June 1997 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the pursuit of television broadcasting activities (1) and Council Directive 93/83/EEC of 27 September 1993 on the coordination of certain rules concerning copyright and rights related to copyright applicable to satellite broadcasting and cable retransmission (2); whereas it is particularly important that each State ensures that all broadcasters under its jurisdiction comply with the rules fo the system of law applicable to broadcasts intended for the public in that Member State;

Whereas Article 97 of the Europe Agreement between the European Communities and their Member States, of the one part, and Hungary, of the other part, signed in Brussels on 16 December 1991, provides for the possibility for Hungary to participate in actions set up in the framework of the Media II programme;

Whereas the additional Protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Hungary, of the other part, has been concluded by Decision of the Council and the Commission of 4 December 1995;

Whereas according to Article 1 of the additional Protocol, Hungary may participate in Community framework programmes, specific programmes, projects or other actions notably in the audiovisual and cultural fields, and pursuant to Article 2, the terms and conditions for Hungary in the activities referred to in Article 1 shall be decided by the Association Council;

Whereas, Council Decision 95/563/EC of 10 July 1995 on the implementation of a programme encouraging the development and distribution of European audiovisual works, and in particular Article 6 thereof (3) 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, and in particular Article 5 thereof (4) (hereinafter the two together being called 'Media II`), provide that these programmes shall be open to the participation of associated Central European countries in accordance with the conditions set out in the additional Protocols to the Association Agreements on participation in Community programmes;

Whereas Hungary has ratified the Council of Europe Convention on Transfrontier Television, which constitutes an important step in the process of legislative alignment,

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and Hungary, of the other part, concerning the participation of Hungary in a Community Programme within the framework of Community audiovisual policy is the attached draft decision of the Association Council.

(1) OJ L 202, 30. 7. 1997.

(2) OJ L 248, 6. 10. 1993.

(3) OJ L 321, 30. 12. 1995.

(4) OJ L 321, 30. 12. 1995.

Draft Decision of the EC-Hungary Association Council adopting the terms and conditions for the participation of Hungary in a Community programme within the framework of Community audiovisual policy

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 Hungary of the other, and in particular Articles 91 and 97 thereof (1),

Having regard to the additional Protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and Hungary, of the other part concerning Hungary's participation in Community programmes, and in particular Articles 1 and 2 thereof (2),

Whereas according to Article 1 of the additional Protocol, Hungary may participate in Community framework programmes, specific programmes, projects or other actions notably in the audiovisual and cultural fields;

Whereas pursuant to Article 2 of the said additional Protocol the terms and conditions for the participation of Hungary in the activities referred to in Article 1 shall be decided by the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

Hungary shall participate in the European Community Media II programme according to the terms and conditions set out in Annexes I and II which form an integral part of this Decision.

Article 2

This Decision shall apply until 31 December 2000.

Article 3

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

(1) OJ L 347, 31. 12. 1993.

(2) OJ L 317, 30. 12. 1995.

ANNEX I

Terms and conditions for the participation of Hungary in the Media II programme

1. Hungary shall participate in all actions of the Media II programme (hereinafter called 'the Programme`) in conformity, unless otherwise provided in this Decision, with the objectives, criteria, procedures and deadlines as defined in Council Decision 95/563/EC on the implementation of a programme encouraging the development and distribution of European audiovisual works and Council Decision 95/564/EC on the implementation of a training programme for professionals in the European audiovisual programme industry.

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

3. In conformity with the terms of the relevant provisions of the Decisions on Media II, Hungary shall provide the appropriate structures and mechanisms at national level and shall take all other necessary steps to ensure national coordination and organization of the implementation of the programme. In particular Hungary shall undertake to establish a Media desk in collaboration with the European Commission.

4. Each year Hungary shall a contribution to the budget of the Community to cover the costs resulting from its participation in the programme.

The rules governing the financial contribution of Hungary shall be those set out in the Annex, which constitutes an integral part of this Decision. The Association Committee shall be entitled to adapt this contribution whenever necessary.

5. The Member States of the Community and Hungary shall make every effort to facilitate free movement and residence of all eligible persons to the programmes moving between Hungary and the Community for the purpose of participating in activities covered by this Decision.

6. Without prejudice to the responsibilities of the Commission and the Community's Court of Auditors in relation to the monitoring and evaluation of the programmes pursuant to Articles 7 (Media II - development and Distribution) and 6 (Media II - training), the participation of Hungary in the programme shall be continuously monitored on a partnership basis involving the Commission and Hungary. Hungary shall submit to the Commission relevant reports and take part in other specific activities set out by the Community to this end.

7. Without prejudice to the procedures referred to in Article 4 (Media II - training) Article 5 (Media II - development and distribution), Hungary shall be invited to coordination meetings on any question concerning the implementation of this Decision prior to the regular meetings of the Programme Committee. The Commission shall inform Hungary about the results of such regular meetings.

8. The Commission and Hungary shall exchange information on, and monitor the progress of legislative alignment in the audiovisual sector, with particular reference to Council Directive 89/552/EEC, as last amended by European Parliament and Council Directive 97/36/EC. Hungary shall be invited, where appropriate, to participate in the work of the Contact Committee set up by Directive 97/36/EC.

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

ANNEX II

Financial contribution of Hungary to Media II

1. The financial contribution of Hungary will cover:

- financial support from the programme to Hungarian 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 Hungary's participation.

For every budget year, the aggregated amount of the financial support received from the programme by the Hungarian beneficiaries and by the Media desk of Hungary will not exceed the contribution paid by Hungary, after deduction of the supplementary costs of an administrative nature.

2. Should the contribution paid by Hungary 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 Hungarian beneficiaries and by the Media desk from the programme, the European 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 Hungary.

3. Hungary's annual contribution will be ECU 649 992 from 1998. From this sum, an amount of ECU 45 499 will cover supplementary costs of an administrative nature related to the management of the programme by the Commission stemming from Hungary's participation.

For the year 2000, the amount of Hungary's contribution shall be the same as for 1998 and 1999, provided the annual appropriation for the programme shall be authorized by the budgetary authority in accordance with the relevant financial perspective.

4. The financial Regulation applicable to the general budget of the Community shall apply, notably to the management of the contribution of Hungary.

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

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

Hungary shall 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 Hungary 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, for its operations in ecu, increased by 1,5 percentage points.

5. Hungary shall pay the supplementary costs of an administrative nature referred to in paragraph 3 from its national budget.

6. For the years 1998 and 1999, Hungary shall pay 50 % of the remaining cost of its participation from its national budget, and 50 % from its Phare annual programmes subject to regular Phare programming procedures.

For the year 2000, the same breakdown will prevail, subject to the availability of the relevant budgetary appropriations in Hungary and in the Community.