12.2.93 OfficialJournaloftheEuropeanCommunities NoC38/21
AmendedproposalforaCouncilRegulation(EEC)establishingacohesionfund
(93/C38/15)
COM(92)599final
(SubmittedbytheCommissionon5January1993)
WhereasthespecialsituationoftheMemberStates
concernedcallsforadeterminedefforttohelpthem
meettheconvergencecriteriawhichareaprecondition
formovingtothethirdstageofEconomicandMonetary
Union;
WhereasthesecondparagraphofArticle130dofthe
TreatystatesthattheCouncilshallsetupacohesion
fundtoprovideafinancialcontributiontoprojectsinthe
fieldsoftheenvironmentandtrans-European networks
intheareaoftransportinfrastructure ;
WhereasArticle129c(1)oftheTreatyprovidesthatthe
Communitymaycontributethroughthecohesionfund
tothefinancingofspecificprojectsintheMemberStates
intheareaoftransportinfrastructure ,whilsttakinginto
accountthepotentialeconomicviabilityoftheprojects;
WhereasbyvirtueofArticle130softheTreatythe
cohesionfundmayprovidefinancialsupportforaction
takenbyMemberStatesinpursuitoftheobjectivesof
Communitypolicyontheenvironment ;whereasthe
cohesionfundshallcontributetothefinancingofnew
measuresiftheCouncildecidesthattheyinvolvecosts
deemeddisproportionate forthepublicauthoritiesofa
MemberState;
Whereas,inthelightofanundertakingbytheMember
Statesconcernednottodecreasetheirinvestmentefforts
inthefieldsofenvironmental protectionandtransport
infrastructure ,additionalityinthesenseofArticle9of
CouncilRegulation(EEC)No4253/88of19December
1988layingdownprovisionsforimplementingRegu­
lation(EEC)No2052/88asregardscoordinationofthe
activitiesofthedifferentStructuralFundsbetweenthem­
selvesandwiththeoperationsoftheEuropean
InvestmentBankandtheotherexistingfinancial
instruments(')willnotapplytothecohesionfund;
WhereasinaccordancewithArticle198eoftheTreaty
theEuropeanInvestmentBank(EIB)willfacilitatethe
financingofinvestmentsinconjunctionwithassistance
fromtheStructuralFundsandotherCommunity
financialinstruments ;
Whereasitisnecessarytocoordinateactiontakeninthe
fieldsoftheenvironmentandoftrans-European
transportinfrastructurenetworksthroughthecohesion
fund,theStructuralFunds,theEIBandtheother
financialinstruments inordertoenhancetheeffec­
tivenessoftheCommunityoperations;THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularthesecond
paragraphofArticle130dthereof,
HavingregardtotheproposalfromtheCommission,
HavingobtainedtheassentoftheEuropeanParliament,
HavingregardtotheopinionoftheEconomicand
SocialCommittee,
HavingregardtotheopinionoftheCommitteeofthe
Regions,
WhereasArticle2oftheTreatyincludesthetaskof
promotingeconomicandsocialcohesionandsolidarity
betweenMemberStates;whereasthestrengtheningof
economicandsocialcohesionismentionedunderpointj
ofArticle3asoneoftheactivitiesoftheCommunityfor
thepurposessetoutinArticle2;
WhereasArticle130aoftheTreatyprovidesforthe
Communitytodevelopandpursueitsactionsleadingto
thestrengtheningofitseconomicandsocialcohesion,
andprovidesinparticularthatitshallaimatreducing
disparitiesbetweenthelevelsofdevelopmentofthe
variousregionsandthebackwardnessoftheleast­
favouredregions,includingruralareas;whereas
Communityactionthroughthecohesionfundshould
supporttheachievementoftheobjectivessetoutin
Article130a;
WhereastheProtocoloneconomicandsocialcohesion
annexedtotheTreatyreaffirmstheCommunity'staskof
promotingeconomicandsocialcohesionandsolidarity
betweenMemberStatesandspecifiesthatacohesion
fundtobesetupbefore31December1993willprovide
afinancialcontributiontoprojectsinthefieldsofthe
environment andtrans-European networksinthe
MemberStateswithapercapitaGNPoflessthan90%
oftheCommunityaveragewhichhaveaprogramme
leadingtothefulfilmentoftheconditionsofeconomic
convergenceassetoutinArticle104coftheTreaty;
whereastherelativeprosperityofMemberStatesisbest
assessedonthebasisofpercapitaGNP,measuredin
purchasingpowerparities; C)OJNoL374,31.12.1988,p.1.

NoC38/22 OfficialJournaloftheEuropeanCommunities 12.2.93
Treaty,includingprojectsresultingfrommeasures
adoptedpursuanttoArticle130softheTreaty,
—transportinfrastructureprojectsofcommoninterest
financedbyMemberStateswhichareidentifiedin
theframeworkoftheguidelinesreferredtoinArticle
129coftheTreaty;wheretheappropriateguidelines
referredtoinArticle129chavenotyetbeenadopted
bytheCouncil,othertransportinfrastructureprojects
contributingtotheachievementoftheobjectivesof
Article129boftheTreatymaybefinanced,
—preparatorystudiesandtechnicalsupportmeasures
relatedtoeligibleprojects.Whereas,withaviewtohelpingMemberStatesinthe
preparationofprojects,theCommissionshouldbeina
positiontosupplythenecessarytechnicalsupport;
Whereastheoperationsofthecohesionfundmustbe
consistentwithCommunitypolicies,interalia,those
regardingenvironmental protection,transport,compe­
titionandtheawardofpubliccontracts;
Whereasanindicativeallocationofcommitmentappro­
priationsbetweentheMemberStatesshouldbeprovided
forinordertofacilitatetheprogrammingofprojects;
Whereasitisnecessary,giventherequirementsof
economicandsocialcohesion,toprovideahighrateof
assistance;
Whereasitisnecessarytoensureeffectivemethodsof
monitoring,assessingandcarryingoutchecksinrespect
ofCommunityoperations;
Whereasprovisionshouldbemadetogiveadequate
publicitytoCommunityassistanceprovidedbythe
cohesionfund,Article4
Financialresources
1.Fortheperiod1993to1999thetotalcommitment
appropriations forthefundshallbeECU15150million
at1992prices.
2.Inaccordancewithparagraph 1,thecommitment
appropriations foreachyearoftheperiodshallbeas
follows: HASADOPTEDTHISREGULATION :
Article1
Definitionandobjective—1993:ECU
—1994:ECU
—1995:ECU
—1996:ECU
—1997:ECU
—1998:ECU
—1999:ECU1'500million,
1750million,
2000million,
2250million,
2500million,
2550million,
2600million.
Article51.Acohesionfund(hereinafterreferredtoas'the
fund')isherebyestablished .
2.Thefundshallcontributetothestrengtheningof
theeconomicandsocialcohesionoftheCommunityand
shalloperateaccordingtotheprovisionssetoutinthis
Regulation .
Article2
ScopeIndicativeallocation
Inordertofacilitatetheplanningofassistanceinthe
MemberStatesconcernedtheCommissionshall,onthe
basisofanindicativeallocationofthetotalresourcesof
thefund,establishthecommitmentappropriations for
eachMemberState.Theindicativeallocationshallprin­
cipallybebasedonpopulation,GNPpercapitaand
surfacearea;itshallalsotakeaccountofothersocio­
economicfactors,suchasdeficienciesintransport
infrastructure .1.Thefundshallprovidefinancialcontributionsto
projectsinthefieldsoftheenvironmentandtrans­
Europeannetworksintheareaoftransportinfra­
structureinMemberStateswithapercapitaGNPofless
than90%oftheCommunityaveragewhichhavea
programmeleadingtothefulfilmentoftheconditionsof
economicconvergenceassetoutinArticle104eofthe
Treaty.
2.WithregardtotheGNPcriterionreferredtoin
paragraph1,MemberStatesshallcontinuetobeeligible
forassistancefromthefundprovidedthat,aftera
mid-termreviewin1996,theyremainbelow90%ofthe
Communityaverage.Article6
Conditionalassistance
Article3
Eligibleprojects
Thefundmayprovidesupportfor:1.IftheCouncildecidesinaccordancewithArticle
104c(6)thataMemberStatehasanexcessive
governmentdeficit,andifthatdecisionisnotabrogated
inaccordancewithArticle104c(12)withinoneyearor
anyotherperiodspecifiedforcorrectingthedeficitina
recommendation inaccordancewithArticle104c(7),no
newprojectsor,inthecaseoflargemultistageprojects,
nonewstagesofaprojectshallbefinancedfromthe
fundforthatMemberState.—environmental projectscontributing tothe
achievementoftheobjectivesofArticle130rofthe

12.2.93 OfficialJournaloftheEuropeanCommunities NoC38/23
2.Exceptionally ,inthecaseofprojectsdirectly
affectingmorethanoneMemberState,theCouncilmay
decidetodefersuspension .Article10
Approvalofprojects
3.Suspensionoffinancingshallnottakeeffectless
thantwoyearsaftertheentryintoforceoftheTreatyon
EuropeanUnion.
4.ThesuspensionshallceasewhentheCouncil,in
accordancewithArticle104c(12),abrogatesitsdecision
adoptedinaccordancewithArticle104c(6).
Article7
Rateofassistance
1.Therateofassistancegrantedbythefundshallbe
80%to85%ofpublicorsimilarexpenditureasdefined
forthepurposesoftheStructuralFunds.
2.Preliminarystudiesandtechnicalsupportmeasures
necessaryfortheimplementation ofeligibleprojectsmay
befinancedat100%.
Article81.Theprojectstobefinancedbythefundshallbe
decideduponbytheCommissioninagreementwiththe
MemberStateconcerned .
2.TheMemberStatesconcernedandtheCommission
shallensureanappropriatebalancebetweenprojectsin
thefieldofenvironmentandprojectsrelatingto
transportinfrastructure .Thisbalanceshalltakeaccount
ofArticle130s(5)oftheTreaty.
3.Applicationsforassistanceinaccordancewith
Article3shallbesubmittedbytheMemberState
concerned.Projects,includinggroupsofrelatedprojects,
shallbeofasufficientscaletohaveasignificantimpact
inthefieldofenvironmental protectionorinthe
improvementoftrans-European transportinfrastructure
networks .
4.Applicationsshallcontainthefollowinginfor­
mation:thebodyresponsibleforimplementation ,the
natureoftheinvestment,itslocationandcosts,the
timetableforimplementation ,thefinancingplanandthe
totalfinancingtheMemberStateisseekingfromthe
fundandanyotherCommunitysource.Theyshallalso
containanyinformationnecessarytoshowthatthe
projectsareinaccordancewiththisRegulation .
5.Thefollowingcriteriashallbeemployedtoensure
thequalityoftheprojects:
—theirmedium-term economicandsocialbenefits,
whichshallbecommensurate withtheresources
deployed;anassessmentshallbemadeinthelightof
ananalysisofcostsandbenefits,
—theprioritiesestablishedbythebeneficiaryMember
States,
—thecontributionwhichprojectscanmaketothe
implementation ofCommunitypoliciesonthe
environmentandtrans-European networks,
—thecompatibilityofprojectswithCommunitypolicies
andtheirconsistencywithotherCommunity
structuralmeasures .
6.SubjecttoArticle6andtotheavailabilityof
commitmentappropriations ,theCommissionshalldecide
onassistancefromthefundgenerallywithinthree
monthsofreceiptoftheapplications .Commission
decisionsapprovingprojectsorgroupsofrelatedprojects
shalldeterminetheamountoffinancialsupport,a
financingplanaswellasalltheprovisionsandconditions
necessaryfortherealizationoftheprojects.
7.ThedecisionsoftheCommissionshallbepublished
intheOfficialJournaloftheEuropeanCommunities .CoordinationandcompatibilitywithCommunitypolicies
1.Projectsfinancedbythefundshallbeinkeeping
withtheprovisionsoftheTreaties,withtheinstruments
adoptedpursuanttheretoandwithCommunitypolicies,
includingthoseconcerningenvironmental protection,
transport,competitionandtheawardofpubliccontracts.
2.TheCommission shallensurecoordination and
coherencebetweenprojectsundertakeninpursuanceof
thisRegulationandmeasuresundertakenwithcontri­
butionsfromtheCommunitybudget,theEIBandthe
otherfinancialinstrumentsoftheCommunity .
Article9
Combinationandoverlapping
1.Noitemofexpendituremaybenefitbothfromthe
fundandfromtheEuropeanAgriculturalGuidanceand
GuaranteeFund,theEuropeanSocialFundorthe
EuropeanRegionalDevelopmentFund.
2.WhereaprojectbenefitsfromotherCommunity
assistance,thecombinedassistancegrantedbythe
Communityshallnotexceed90%oftotalexpenditure .

NoC38/24 OfficialJournaloftheEuropeanCommunities 12.2.93
Article11
Financialprovisions5.Furtherarrangementsfortheimplementation of
financialcontrolshallbeestablishedinaccordancewith
Article15.
Article13
Monitoringandassessment1.Budgetarycommitmentsshallbemadeinecuon
thebasisoftheCommissiondecisionsapproving
assistancereferredtoinArticle10.Commitments shall
bemadeinannualinstalmentsforeachproject.
2.Paymentsshallbemadeinecuandshallbesubject
tothespecificarrangements laiddowninthe
implementingprovisionspursuanttoArticle15.1.TheMemberStatesandtheCommission shall
ensurethattheimplementation ofCommunityprojects
underthisRegulationiseffectivelymonitoredand
assessed.
2.Thearrangementsformonitoringandassessingof
Communityprojectsshallbeestablishedbythe
provisionsreferredtoinArticle15. Article12
FinancialcontrolArticle14
Informationandpublicity
1.TheCommissionshallpresentanannualreporton
theactivitiesofthefundtotheCouncil,theEuropean
Parliament,theEconomicandSocialCommitteeandthe
CommitteeoftheRegions.
2.MemberStatesshallensurethatadequatepublicity
isgiventotheoperationsofthefundwithaviewto
makingthegeneralpublicawareoftheroleplayedby
theCommunityinrelationtoprojects.Theyshallconsult
theCommissionon,andinformitabout,theinitiatives
takenforthispurpose.1.Inordertoguaranteesuccessfulcompletionofthe
projectsfinancedbythefund,MemberStatesshalltake
thenecessarymeasures :
—toverifyonaregularbasisthatoperationsfinanced
bytheCommunityhavebeenproperlycarriedout,
—topreventandtotakeactionagainstirregularities ,
—torecoveranyamountslostasaresultofanirregu­
larityornegligence .ExceptwheretheMemberState
and/ortheimplementingauthorityprovideproofthat
theywerenotresponsiblefortheirregularityor
negligence,theMemberStateshallbeliableinthe
alternativeforreimbursement ofanysumsunduly
paid.
2.MemberStatesshallinformtheCommissionofthe
measurestakenforthosepurposesand,inparticular,of
theprogressofadministrative andjudicialproceedings .
InthiscontexttheMemberStatesandtheCommission
shalltakethenecessarymeasurestoensurethatthe
informationexchangedwillremainconfidential .
3.Whensubmittingrequestsforpayment,Member
StatesshallmakeavailabletotheCommissionany
appropriatenationalcontrolreportsontheprojects
concerned .Article15
Implementation
TheCouncil,actingbyaqualifiedmajorityona
proposalfromtheCommission ,shallestablishoper­
ationalprovisionsnecessaryfortheimplementation of
thisRegulation .
Article16
Finalprovisions
1.TheCouncil,actingonaproposalfromthe
Commissioninaccordancewiththeprocedurelaiddown
inArticle130doftheTreaty,shallreexaminethisRegu­
lationin1999.
2.CouncilRegulation(EEC)No...(thecohesion
financialinstrument)isherebyrepealed.
Article17
Entryintoforce4.WithoutprejudicetocheckscarriedoutbyMember
States,inaccordancewithnationallaws,regulationsand
administrative provisionsandwithoutprejudicetothe
provisionsofArticle188aoftheTreatyortoany
inspectionarrangedonthebasisofArticle209(c)ofthe
Treaty,Commissionofficialsmaycarryouton-the-spot
checks,includingsamplechecks,inrespectofprojects
financedbythefundandexaminethesystemsand
measuresofcontrolestablishedbythenationalauth­
oritieswhoshallinformtheCommission ofmeasures
takentothiseffect.ThisRegulationshallenterintoforceontheseventhday
followingitspublicationintheOfficialJournalofthe
EuropeanCommunities .
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.