COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT pursuant to the second subparagraph of Article 251(2) of the EC Treaty concerning the Common Position adopted by the Council with a view to the adoption of a Regulation of the European Parliament and of the Council regarding the closure and winding up of projects adopted by the Commission under Regulation (EC) No 213/96 on the implementation of the European Communities investment partners financial instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa

2000/0034 (COD)

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT

pursuant to the second subparagraph of Article 251(2) of the EC Treaty concerning the Common Position adopted by the Council with a view to the adoption of a Regulation of the European Parliament and of the Council regarding the closure and winding up of projects adopted by the Commission under Regulation (EC) No 213/96 on the implementation of the European Communities investment partners financial instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa

1. Background

The proposal for a Regulation of the European Parliament and of the Council, COM(1999)726 final - 2000/0034 (COD) was adopted on 31 January 2000. It was sent to the Parliament and the Council on 31 January 2000.

Parliament delivered its opinion at the first reading on 5 September 2000.

The Council reached agreement on a draft common position in Coreper on 31 October 2000. The Council formally adopted the common position unanimously on 10 November 2000.

2. Subject of the commission's proposal

The Commission proposes that Parliament and the Council adopt a new Regulation covering two years (until 31 December 2001) in order to finance the costs of winding up and closing projects under way under ECIP. Under the proposed Regulation, the ECIP budget will only be used for the operational follow-up of operations already financed or for amendments to contracts already signed, plus technical assistance for the finalisation and closure of operations under way. No new project will be financed.

3. Comments on the common position

3.1. General remarks

At its first reading of the proposal, Parliament adopted three amendments to the Commission's proposal. The Commission accepted the first two, which were also included in the Council's common position. Parliament's third amendment, which was not accepted by the Commission, was amended by the Council. The Commission cannot accept the point as amended by the Council.

3.2. Parliament's amendments at the first reading

On the basis of the report presented by Mr dell'Alba, Parliament adopted its position during the first reading and made three amendments to the Commission's proposal.

The first two amendments were accepted by the Commission and incorporated in the Council's common position:

-the first amendment (3rd recital) concerns coordination and consistency between the various financial instruments managed by the Commission;

-the second amendment (4th recital) refers to the bases to be put in place by the Commission with a view to a future integrated programme to promote investment in the developing countries.

The third amendment (Article 3) asks the Commission to submit, at the latest by 31 December 2000, legislative proposals to ensure the continuity of ECIP operations. The Commission did not accept this amendment. It did, however, note that it was prepared to present an evaluation of the possible options in June 2001 and, if appropriate, make relevant proposals.

3.3. The Council's common position

In its common position, the Council changed Parliament's third amendment (Article 2). The amended text said that the Commission was to submit, as soon as possible and at the latest by 31 MARCH 2001, a report on the support instrument for the private sector in the developing countries, followed, as soon as possible, by a legislative proposal to ensure the future of this instrument.

The Commission cannot accept this part of the Council's common position for the following reasons:

-The Commission has embarked on a comprehensive review of its private-sector policy, including an evaluation of existing financial instruments, a dialogue with the private sector and improved management of existing financial procedures. The Commission will be in a position to present the conclusions of this review at the end of June 2001.

-The Commission considers that the binding wording of Article 2 and the reference to a particular deadline infringe its right of initiative.

In these circumstances, the Commission's position is unchanged from that it set out to Parliament in September, namely that it would evaluate possible options by 31 June 2001 and, if appropriate, make relevant proposals.

4. Conclusions

The Commission and the Council have adopted two of the amendments proposed by Parliament at its first reading.

However, the Commission's position differs from that of Parliament and that of the Council when it comes to the third amendment. The Council adopted its common position unanimously, despite the opinion of the Commission, which maintained its position.

5. Commission statement

See attached declaration.

ANNEX

DEVELOPMENT COUNCIL 10 NOVEMBER 2000

Point ... of the list of A points (ECIP)

Ref.: Common Position adopted by the Council with a view to the adoption of a Regulation of the European Parliament and of the Council regarding the closure and winding up of projects adopted by the Commission under Regulation (EC) No 213/96 on the implementation of the European Communities investment partners financial instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa.

STATEMENT FOR THE MINUTES

The Commission takes note of the invitations which are provided for in Article 2 of the common position. The Commission reserves, however, the right to respond to these invitations, if they are maintained in the Regulation of the Parliament and the Council, in accordance with the terms of the Treaty, in particular as regards its right of initiative.