Proposal for a COUNCIL DECISION fixing the financial contributions to be paid by the Member States to the European Development Fund (second instalment for 2003)

(presented by the Commission)

EXPLANATORY MEMORANDUM

The entry into force of the 9th EDF Financial Regulation, and in particular Articles 8, 38, 40, 133 and 135 thereof, has significantly changed the procedure for calls for contributions by the Member States to finance the various EDFs. It is now the Council which decides, on a proposal from the Commission, on each of the three instalments (four in the past). In the case of the 9th EDF instruments managed by the European Investment Bank (EIB), the Member States will pay their contributions directly to the EIB. The contributions for other instruments will continue to be paid to the Commission. The new schedule is laid down in Article 38 of the 9th EDF Financial Regulation. Under Article 133 of the Financial Regulation, the new procedure also applies to previous EDFs.

The present proposal concerns the third call for 2003 (the second by the definition in the 9th EDF Financial Regulation). In accordance with Article 38 of the Financial Regulation, it is accompanied by the communication from the Commission to the Council setting out financial information on the EDF for the purposes of the 2004 budget procedure. The information in that communication should enable the Council to fix the contributions for this instalment. In accordance with Article 121 of the 9th EDF Financial Regulation, the EIB has sent the Commission updated estimates of payments under the instruments managed by the Bank.

Under Article 38(2) of the 9th EDF Financial Regulation, the schedule decided for this instalment is as follows: (1) a proposal is submitted to the Council at the same time as the above communication, namely by 15 June 2003; (2) the Council decides on this instalment no more than 21 calendar days after the Commission presents its proposal; (3) the Member States pay this instalment of the contributions no more than 21 calendar days after they receive notification of the Council decision.

Note that Article 40(4) of the 9th EDF Financial Regulation stipulates that a Member State which fails to pay the instalment of contributions due by the deadline will be required to pay interest on the amount unpaid; the arrangements for the payment of interest are specified in the same paragraph.

Proposal for a COUNCIL DECISION fixing the financial contributions to be paid by the Member States to the European Development Fund (second instalment for 2003)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other part, signed in Cotonou on 23 June 2000, [1]

[1] OJ L 317, 15.12.2000, p. 3.

Having regard to the Internal Agreement on the Financing and Administration of Community Aid signed in Brussels on 18 September 2000, [2] and in particular Article 10 thereof,

[2] OJ L 317, 15.12.2000, p. 355.

Having regard to the Council Decision of 27 November 2001 on the association of the overseas countries and territories with the European Community ("Overseas Association Decision"), [3]

[3] OJ L 314, 30.11.2001, p. 1.

Having regard to the Financial Regulation of 27 March 2003 applicable to the 9th European Development Fund, and in particular Article 38(1) thereof,

Having regard to the proposal from the Commission, [4]

[4] OJ C ..., ..., p. ...

Whereas:

(1) On 28 November 2002 the Commission sent the Council a statement of the payments to be made in 2003 and the schedule of calls for contributions. On 29 December the Council adopted the Decision laying down the 2003 schedule of calls for contributions from the Member States to the EDF.

(2) On the basis of that Decision, the Commission called, in December 2002 and March 2003, for contributions of 450 million and 500 million euro respectively.

(3) The second subparagraph of Article 38(2) of the 9th EDF Financial Regulation, which entered into force on 2 April 2003, stipulates that the proposal for the second instalment of the current year is to be presented by the Commission at the same time as the communication it is required to send the budgetary authority, as part of the budget procedure, by 15 June.

(4) The second subparagraph of Article 38(2) of the 9th EDF Financial Regulation stipulates that the Council is to decide on this instalment at the latest by 21 calendar days following the presentation by the Commission of its proposal, and that the Member States are to pay the contributions due under this instalment at the latest by 21 calendar days following the date on which the Council's decision is notified to them.

(5) Pursuant to the second subparagraph of Article 121 of the 9th EDF Financial Regulation, the European Investment Bank has sent the Commission the updated estimates of commitments and payments needed to draw up the communication to the budgetary authority.

(6) Article 133(2) and (3) of the 9th EDF Financial Regulation stipulates that the procedure for calling for contributions for the 9th EDF also apply to previous EDFs,

HAS ADOPTED THIS DECISION:

Article 1

The contributions to be paid by the Member States to the Commission and the European Investment Bank as the second instalment for 2003 are set out in the table in the Annex.

This Decision is addressed to the Member States.

Done at Brussels,

For the Council

The President

ANNEX

Second instalment of contributions for 2003 (in euro)

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