Proposal for a COUNCIL DECISION concerning the signature of the Agreement between the European Community and the Republic of Hungary establishing certain conditions for the carriage of goods by road and the promotion of Combined Transport

(presented by the Commission)

EXPLANATORY MEMORANDUM

A. General Background

1. On 7 December 1995, the Council authorised the Commission to negotiate one or more agreements on road transit with Hungary, Romania and Bulgaria with a view to resolving the problem of road goods transport relations between Greece and the other Member States, in particular through the mutual exchange of road transit authorizations. The agreement was also to specify the conditions for transport operations carried out under such an agreement, especially as regards charges related to transport operations and road use. More generally the agreement was to provide for the harmonization of road transport legislation of partner states towards the legislation of the Community and for coordination on administrative questions related to road transit. In addition the agreement was to promote combined land transport operations in conformity with Community rules.

2. At the outset of the negotiations a multi-lateral agreement was sought, however, it proved impossible to interest all three partner states equally in following such a multi-lateral approach. This led to the decision to conclude separate agreements with each of these partner states. These agreements will terminate automatically upon accession of the relevant Partner State to the European Union.

3. Member States participated as observers at all the negotiation sessions with Bulgaria, Hungary and Romania. The Commission also held a number of technical meetings with representatives of these partner states. The negotiation sessions were preceded by discussions with the Member States in the Council. The Commission transmitted copies of the draft agreements, at all stages in their development, to the Council Special Committee established for the purpose of these negotiations, and also held separate meetings with Member States' experts on certain technical aspects of the agreements, like the actual layout of the authorizations to be exchanged under the agreements.

4. On the basis of the negotiating directives adopted by the Council and subsequent discussion in the Special Committee, a draft Agreement with Bulgaria was initialled by the Heads of delegations on 4 December 1998 and a draft Agreement with Hungary was initialled on 8 April 1999. The wording of both the draft agreements with Bulgaria and Hungary (hereafter "the Agreements") is almost identical. In fact variances in the wording of the Agreements do not reflect differences in substance, but rather editing preferences of the negotiating partners.

It is not yet clear when the negotiations with Romania will be finalised.

B. Content of Agreements

B.1. Authorizations

5. The Agreements facilitate transit through the contracting parties' territories, in particular through the mutual exchange of transit authorizations for road goods transport. These authorizations are additional to those already exchanged under bilateral agreements between individual Member States on the one side and Bulgaria or Hungary on the other side. The provisions of the existing bilateral agreements between Member States and the partner States are thus maintained. This entails that for example the types of transport operations or vehicle categories for which a particular haulier from an individual Member State needs a transit authorization for either Bulgaria or Hungary continues to be determined by the existing bilateral agreements concluded by the haulier's State of residence and the partner State in question.

6. The hauliers of Member States needing a transit authorization for a given return journey through either Bulgaria or Hungary can thus use an authorization exchanged under these Community agreements. Alternatively a Community haulier can use for example an authorization exchanged under a bilateral agreement of its state of residence and Bulgaria or Hungary. Likewise Bulgarian and Hungarian hauliers can use a single Community authorization to transit any number of individual Member States on an individual return journey to and from or through Community territory. Alternatively they can use, for example, the authorizations exchanged under the relevant bilateral agreements with individual Member States.

7. While the Community offers the possibility of transiting the territory of in principle all its 15 Member States, the partner State offers in exchange only the transit of its own territory, a single state. It is therefore reasonable for the Community to receive a substantially larger number of authorizations from the partner States in return. This needs to be qualified, however, in that no haulier of a partner State would ever transit, on an individual journey, all 15 Member States. In fact the geographical location of some Member States prevents or makes their transit highly unlikely. In addition, the Community limited from the outset of the negotiations the number of transit authorizations for each partner State to 7000 authorizations of which not more than 3000 were to be valid in any Member State. Therefore it was perceived as reasonable by the negotiating partners for the Community to receive at least twice as many authorizations.

8. As a result of the negotiations, the Community will receive annually 13000 authorizations from Bulgaria and 12500 from Hungary. Each single authorization is valid for one return transit journey. The distribution of these authorizations among Member States, who will be responsible for issuing them to their hauliers, is the subject of a separate Council Regulation.

5. 9. In return Bulgaria as well as Hungary will receive from the Community annually 6000 "blank" authorizations valid for a return transit journey, as well as 3000 adhesive stamps for each Member State. On each "blank" authorization the haulier of the partner State would have to validate beforehand the choice of transit route (i.e. the individual Member States transited on a journey) by attaching the adhesive stamp(s) for the relevant Member State(s). The authorization will thus allow the haulier from the partner State to transit the Member State(s) whose stamp is affixed to the authorization on both outward and return parts of the journey. This allows for a maximum of flexibility for the partner States' hauliers in adjusting the transit route according to individual needs. A haulier from a partner State using the Community transit authorization who wishes to load or unload in a Member State will still need a separate authorization for these operations, on the basis of the bilateral agreement concluded between the partner State and the Member State of loading/unloading concerned.

10. All the authorizations and adhesive stamps will be supplied by the services of the Commission to both Member and partner States, who will issue them to their hauliers at a charge so as only to cover reasonable administrative expenses. The use of the authorization as such will be free of charge. The authorization can only be used by vehicles complying at least with Euro I standards.

B.2. Infrastructure charges

11. The transport operations carried out in Eastern Europe, in general, have at times been subject to excessive, often discriminatory, fiscal and parafiscal charges. New charges or increases in charges have frequently been introduced at very short notice without sufficient information or warning for Community hauliers about the exact rules applying.

12. In order to avoid these aforementioned difficulties, these agreements set out a number of specific provisions regarding the type of charges that can be levied on transport operations carried out under these agreements. These provisions contain both the relevant principles and rules of Community acquis. This entails in principle that only non-discriminatory infrastructure-use related user charges or tolls may levied, but that transport operations as such may not be subject to special taxes or charges.

13. In Eastern Europe, weight and axle-ton limits for heavy goods vehicles are often substantially lower than those applied in the Community. This is also reflected by the state of the Eastern European infrastructure which has been built to much lower standards. Therefore heavy goods vehicles corresponding to Community norms, for example a vehicle with a maximum authorised weight of 40 tonnes, with a 11.5t drive axle-load and a length of 18.75 m, will in general exceed Eastern European authorized limits of weights and dimensions and as consequence be required to pay additional charges reflecting the additional damage caused to the infrastructure.

14. It is generally accepted that the on the whole poor technical state of Eastern European infrastructure does not yet allow for a full application of the Community acquis on maximum authorised weights and dimensions for road vehicles in international traffic. However, at present, considerable sums of money, including Community finance, are being devoted to rehabilitating the main roads in the partner states. Therefore the Commission set out to achieve a negotiation result that Community vehicles operating under these agreements will not have to pay special charges for being "over-weight" when the vehicles meet Community norms for Weights and Dimensions while using specific rehabilitated transit routes through the partner States. Thus charges would be based on the actual technical state of a specific road section which might already allow, for instance, for a 11.5t drive axle load even if the general axle load limit valid for the whole main road network would be still lower. This would lead to substantial savings for Community hauliers since, at present Eastern European states usually charge for vehicles being overweight in relation to the general weight limits set for a whole road network, even if specific sections of that road network have already been upgraded to support the higher Community norms.

15. Thus the agreements expressly foresee that on certain transit routes in Bulgaria and Hungary on the route between Greece and the 'rest of the Community' Community vehicles in conformity with Community norms shall not be subject to special 'over-weight' charges. On the rehabilitated section of these transit routes, indicated in Annex to the agreements, partner States thus exempt vehicles operating under these agreements from special charges for being overweight. As the road network is continuously improved, the agreements allow for the corresponding extension of the list of upgraded roads contained in the annex of the agreement. There are no direct financial consequences on the Community budget as a result of these agreements.

B.3. Legislative Harmonization

16. The agreements list a number of pertinent dispositions of the Community acquis regarding the technical standards of vehicles, that will be adopted by Bulgaria and Hungary, including among other legislation that on braking devices, sound levels and speed limitation devices. A high technical standard of vehicles operating under these agreements is also ensured by the fact that only vehicles complying at least with Euro I standards can use the authorizations.

17. In addition the agreements ensure among others that both contracting parties apply equivalent social provisions, as well as implement the relevant legislation concerning the carriage of dangerous goods.

B.4. Management of the Agreements

18. The Joint Committee instituted by each agreement shall assure the proper implementation of the agreement with a view to ensuring the smooth functioning of road transit.

B.5. Combined Transport

19. The agreements contain a number of provisions on the promotion of combined transport reflecting the desire of both parties to ensure that their international transport makes increasing use of environmentally friendly modes of transport.

20. The relevant provisions of the agreements reflect the Community principle and policies in relation to Combined Transport. The agreements detail a number of wide-ranging support measures that shall be taken by the Contracting Parties in order to improve the competitiveness of combined transport.

21. A large part of these measures is aimed at encouraging users and consignors to make more frequent use of Combined Transport. These measures include, among others, those designed to improve the speed and reliability of combined transport, to promote the use of unaccompanied combined transport and to consider how to alleviate quota and authorization systems for combined transport users.

22. The provisions on Combined Transport reflect as well the necessity of improving existing infrastructure and underline the need to create suitable infrastructure in order to ensure the interoperability of the networks.

23. The agreements also recognize that in order to foster the development and promotion of Combined Transport available information concerning new combined actions should be made on request accessible, including that on technology research projects.

C. Conclusion

24. The Commission considers that the draft agreements are acceptable to the Community. Accordingly, it proposes that the Council:

(i) approves the results of the negotiations;

(ii) decides to sign the agreements and

(iii) initiates the procedure for their conclusion.

25. It therefore submits herewith to the Council this proposal for a Council Decision on the conclusion of an Agreement establishing certain conditions for the carriage of goods by road and the promotion of Combined Transport between the Community and the Republic of Bulgaria and between the Community and the Republic of Hungary.

Proposal for a

COUNCIL DECISION

concerning the signature of the Agreement between the European Community and the Republic of Hungary establishing certain conditions for the carriage of goods by road and the promotion of Combined Transport

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 71 in conjunction with the first sentence of Article 300 (2),

Having regard to the proposal from the Commission,

Whereas it is necessary to authorize the signing of the Agreement between the European Community and the Republic of Hungary establishing certain conditions for the carriage of goods by road and the promotion of Combined Transport on behalf of the Community,

HAS DECIDED AS FOLLOWS:

Article 1

The signature, subject to conclusion, of the Agreement between the European Community and the Republic of Hungary in the field of transport is hereby approved on behalf of the Community.

Article 2

The President of the Council is authorized to designate the person(s) entitled to sign the Agreement on behalf of the Community.

Done at Brussels,

For the Council

The President