% -COMMISSION OF THE EUROPEAN COVMUNITIES 
COM(93)172 final 
Brussels. 10 May 1993 
SECOND ANNUAL REPORT FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
ON 
THE IMPLEMENTATION OF COMMUNITY ASSISTANCE 
TO THE COUNTRIES OF EAST AND CENTRAL EUROPE (PHARE) 
IN 1991 
- 2 -
CONTENTS 
PREAMBLE 
I. GENERAL CONTEXT FOR EC ASSISTANCE IN 1991 
1.1 Legal basis 
1.2 Financial framework 
1.3 Policy orientations 
1.4 Programming 
II. 1991 MEASURES (economic aid) 
2.1 Preparation and decision making 
2.2 National Programmes and Sectors 
2.3 Multidisciplinary measures 
2.4 Regional Cooperation 
III. HUMANITARIAN AID 1991 
IV. IMPLEMENTATION OF 1990 AND 1991 MEASURES 
4.1 Tenders and contracts 
4.2 Payments 
4.3 Monitoring and Evaluation 
4.4 Counterpart funds 
V. SPECIFIC ISSUES 
5.1 Aid coordination 
5.2 Privatisation, Restructuring and Private Sector development 
5.3 Civic Society dimension 
VI. COMMISSION ORGANISATION 
VII. PERSPECTIVES FOR 1992 
Tables 1. Synthesis of national Indicative Programmes 1991/92 
2. Breakdown by sector of major National Programmes 1991/92 
3. Scheduling of Financing Proposals on 1991 budget 
4. Sector breakdown 1991 compared with 1990 
5. Regional programmes 1991 
6. Humanitarian aid 1991 
7. International tenders 1991 
8. Payment situation 31.12.1991 
9. Overview of aid coordination 
Annexes 
1. Council Regulation 3800/91 
2. 1991/92 General Guidelines 
- 3 -
PREAMBLE 
Community assistance to East and Central Europe moved into its second 
year of operation in 1991. It was a year characterised on the one hand 
by continuity of effort to manage the transition to a market economy in 
most of those countries already benefitting from Community assistance. 
On the other hand, it was a year marked by the dramatic changes further 
east in what was the Soviet Union, by the gradual disintegration of 
Yugoslavia and by the fall of the old communist regime in Albania, the 
last domino in Europe. 
The Community's programme of assistance, to which the name of PHARE1) 
has stuck (despite the inclusion of many countries other than the 
original Poland and Hungary) has evolved and adapted according to 
changing circumstances - starting up aid to Romania in January 1991, 
suspending aid to Yugoslavia in the Autumn, expanding humanitarian aid 
to relieve distress in various parts of the Balkans, and opening up 
economic aid to Albania and the Baltic countries at the end of 1991. 
In parallel to PHARE, the Community expanded and diversified its other 
forms of assistance to East and Central Europe during 1991, including 
balance of payments support, food aid, access to EIB and ECSC loans. 
During the year too the Europe agreement negotiations were concluded 
with Czechoslovakia, Hungary and Poland. None of these matters are 
referred to in this report which focusses exclusively on measures 
covered by Regulation 3906/89, and has been drawn up in accordance with 
Article 10 of that Regulation. 
This second report builds on information given in the first report which 
sought to explain some of the procedures and philosophy of the PHARE 
programme. It presents the general context of 1991 assistance, then 
covers decision making - first on economic aid measures including 
regional cooperation then on humanitarian aid. It looks at the 
implementation of both 1990 and 1991 measures, and then reviews three 
specific issues of particular interest - aid coordination, PHARE support 
for Privatisation, Restructuring and Private Sector development and the 
civic society dimension of PHARE. 
1) Poland and Hungary aid for reconstruction of the economy. 
- 4 -
I. GENERAL CONTEXT FOR EC ASSISTANCE IN 1991 
1.1 Legal basis 
Council Regulation 3906/89, as amended by Regulation 2698/90 of 
17.09.1991, remained the legal basis for PHARE assistance throughout 
1991 until 23 December when the council agreed a further modification1) 
to extend the PHARE programme to Albania and the Baltic states, on the 
basis of the Commission's proposal of 04.12.19912) and following an 
Opinion3) as well as an earlier Resolution of the European Parliament 
on the subject^). 
Though Romania was included under Regulation 2698/90 in the list of 
countries eligible for PHARE assistance, it was only at the end of 
January 1991 that the Council gave its approval to the effective 
implementation of economic aid for that country, after the G 245) had 
reported on a satisfactory evolution of the economic and political 
situation in Romania. 
As regards Yugoslavia, the situation became progressively more difficult 
for the implementation of assistance in the second half of 1991. The 
Council decided formally to suspend PHARE (economic) aid on 08.11.1991, 
and then later on 02.12.1991 to authorise such aid to the "Cooperating 
Republics"6). This decision, falling at the end of the financial year, 
did not in practice impact on the 1991 budget which was virtually fully 
committed at that stage. 
1.2 Financial framework 
The initial financial perspectives for 1991 foresaw a budget of 850 
MECU. After various deductions, notably for the Community contribution 
to the EBRD, and adjustments to take account of the fact that the GDR 
would no longer be a PHARE recipient, the total PHARE budget was 
finalised by the Budget Authority at 785 MECU. This amount covered 
"mini-budget" appropriations of 25 MECU under budget line B8-760 as well 
as 760 MECU on line B7-600. In its commentary on line B7-600, the 
European Parliament suggested humanitarian aid of 20 MECU to continue 
action in favour of children in orphanages (see below section III.), and 
support of 30 MECU for cooperation in science and technology along the 
lines of the "Let's Go East" scheme envisaged in the Resolution of the 
Parliament of 10.07.1990 (see below notably point 2.4). 
1) Council Regulation 3800/91 of 23.12.91, O.J. L 357 of 28.12.91. 
2) O.J. C 313 of 04.12.1991. 
3) O.J. (to be published). 
4) O.J. C 280 of 20.10.1991. 
5) Group of 24 countries whose assistance to East and Central Europe is 
coordinated by the Commission. 
6) Bosnia, Croatia, Macedonia, Slovenia (Montenegro was added later). 
- 5 -
1.3 Policy orientations 
To complement the general guidelines for aid drawn up in 1990 in 
accordance with Article 8 of Regulation 3906/89, the Commission began to 
define in more detail its approach to PHARE programming 1991/92 towards 
the end of 1990, discussing informally with various interested parties. 
Building on the initial experience of programming in 1990 (explained in 
the 1990 Annual Report), the Commission intended in 1991/92 to achieve a 
clear focus on the prime vocation of PHARE which is to support the 
process of transformation from a centralised command economy to one 
based on market forces. Hence the emphasis on "core" aspects of the 
reform process, notably the restructuring and privatisation of public 
enterprise, the modernisation of financial services, the promotion of 
the private sector and the development of labour market mechanisms. 
Reference was also made to other priority sectors, from infrastructure 
to human resource development, where reforms and restructuring would 
also be required to ensure economic recovery and balanced sustainable 
growth. 
In addition to the notion of "core" areas, the concept of regional 
cooperation, already much discussed in 1990, was also given formal 
recognition in the new programming approach. While the bulk (75-85 %) 
of PHARE resources would be used for national programmes, the idea was 
that 10-15 % of resources over 1991/92 were to be reserved for cross 
national or regional projects involving at least two PHARE partner 
countries. 
A synthesis of the developing ideas on programming in the form of draft 
general guidelines 1991/92 was discussed and given a favourable opinion 
by the PHARE Management Committee on 21.02.1991, and later on formally 
adopted by the Commission on 15.05.1991 (annex 2). 
1.4 Programming 
Informal programming discussions between the Commission services and the 
national authorities, represented by the Minister responsible for aid 
coordination, began already in Autumn 1990 in Poland and Hungary 
building on their experience of PHARE in 1990 and profiting from the 
presence of the newly established Commission delegations in those two 
countries. A flexible planning framework ("indicative programme") for 
1991 PHARE assistance was agreed with the Hungarian authorities on 
14.12.1990 and with the Polish authorities on 18.12.1990. Similar 
indicative programmes were prepared and agreed with the relevant 
authorities of the other recipient countries during the first half of 
1991: Czechoslovakia on 31.01.1991, Bulgaria on 08.02.1991, Romania on 
01.03.1991, Yugoslavia on 12.06.1991. 
Unlike those negotiated under the Lomé Convention or the Mediterranean 
protocols, the PHARE Indicative Programmes, though sometimes taken 
mistakenly to be formal binding agreements with the Commission, are 
working documents indicating sector priorities and providing a useful 
frame of reference especially for the recipient countries to enable the 
more detailed work of project identification and appraisal to begin. 
The indicative programmes1), (excepting that of Yugoslavia which was 
never implemented) are summarised in tables 1 and 2. 
1) Made available for information on request. 
- 6 -
These indicative programmes need to be considered in the light of 
sectoral allocations already made under the 1990 budget. Hence, for 
example, provisions for SME suport in Hungary and Poland were 
essentially topping-up on the 1990 programmes whereas in Czechoslovakia 
a completely new SME programme was foreseen complete with credit line. 
In Bulgaria and Romania, where the legislative and financial environment 
for a SME programme still had to be developed, a much smaller provision 
for SMEs was foreseen. 
In all countries, the area identified as requiring the most significant 
assistance was enterprise restructuring and privatisation. Agriculture, 
SMEs and environment remained important, whilst other sectors - energy, 
transport, telecommunications as well as labour market policy - began to 
figure as areas requiring assistance for far reaching policy reforms. 
Perhaps unexpectedly, the health sector was given particular prominence 
by three countries. Education figured essentially in the form of 
allocations for participation in TEMPUS. 
In two countries, instead of large sector reform programmes, provision 
was made for a general technical assistance facility covering a series 
of small inputs of preliminary technical assistance to several sectors. 
The detailed sector breakdown was worked out during the course of the 
year (see below point 2.2). 
In all the indicative programmes, the national authorities and the 
Commission agreed specifically on the importance of promoting, in the 
context of aid programmes, the development of civil society through the 
involvement of intermediate non-state bodies, associations and 
organisations with a view to assisting in the overall process of 
economic and political reform. An explicit action in the field of civil 
society and civic dialogue, reported on more fully in point 5.2 below, 
was foreseen in the Polish indicative programme. 
The programmes all indicated provisional cost estimates to be subject to 
subsequent finalisation on the basis of detailed specifications for each 
sector programme. They also foresaw a mid-term review. This allowed 
the Commission to take stock of progress in implementing assistance and 
in June 1991 to confirm commitment forecasts for the year. 
As regards Yugoslavia, it became clear fairly soon after the 1991 
indicative programme was agreed in June 1991 that conditions were not 
such as to enable project identification and appraisal to begin or to 
allow the agreed 1990 programme to be implemented. The only programme 
that could proceed was the Yugoslav participation in TEMPUS (6 mecu) 
since project submissions had already been received and processed in the 
first half of 1991. By the autumn 1991, it was necessary to make plans 
to reallocate the 59 mecu still earmarked for Yugoslavia in order to 
avoid the risk of non-committal at the end of 1991. A total of nearly 
33 mecu was reallocated to the Humanitarian aid heading (cf. chapter 
III) so as to enable the Commission to respond positively to a range of 
unforeseeable urgent needs including the problem of refugees and 
displaced persons in Yugoslavia. The remaining 26 mecu was reallocated 
between various sectors where there were specific needs and where rapid 
commitment without special preparations was possible. These included 
the multidisciplinary facility, the environment and private sector in 
Poland, as well as an additional impetus at regional level for research 
and environment in response to the particular interest shown by the 
European Parliament in this matter. 
- 7 -
II. 1991 MEASURES (economic aid) 
2.1 Preparation and decision making 
The total number of PHARE financing decisions on the 1991 budget was 75. 
This included 14 decisions under the heading of humanitarian aid in 
addition to 44 national sector programmes and 11 regional cooperation 
programmes, and also two global authorisation for small scale 
multidisciplinary actions. TEMPUS, which is part national part 
regional, was the subject of four separate decisions during the year. 
The PHARE management committee met on six occasions and gave a 
favourable opinion on all financing proposals. In addition, its opinion 
was given by written procedure on one occasion for the urgent proposal 
(regional cooperation on nuclear safety) for technical assistance for 
the Koslodui nuclear plant in Bulgaria. 
Informal discussions and information exchanges with the management 
committee covered such issues as humanitarian aid, counterpart funds, 
tendering procedures, eligibility criteria etc. Most of these issues 
are dealt with under separate headings in this report. 
2.2 National Programmes and Sectors 
The national and sector breakdown of 1991 national programmes is 
presented in Tables 3 and 4. Table 3 also shows the pacing of decisions 
through 1991. Table 4 shows the sector breakdown in comparison with 
1990. These tables illustrate how by 1991 all five recipient countries 
were using PHARE assistance in a broad, roughly similar, range of 
sectors. Poland and Hungary chose to build on actions started 
particularly in enterprise restructuring, SME support, environment and 
in agriculture. The other countries, necessarily late starters with 
PHARE assistance in 1990, also developed large scale programmes in all 
these sectors, establishing special programme implementation units 
(PIUs) in the line Ministries concerned, to manage the programmes 
according to the decentralised advance payment system described in the 
first Annual Report. 
To simplify the organisation of initial technical assistance and 
training for a range of government authorities, both Czechoslovakia and 
Romania opted for a multidisciplinary framework decision to set up a 
general technical assistance facility (GTAF) managed from the centre. 
In the case of Czechoslovakia, a special team (PIU) was set up to manage 
the GTAF on the basis of an advance payment system. Table 4 includes a 
sectoral breakdown of these two general funds which in Table 3 are 
presented globally. 
8 -
Quite apart from the GTAF, the pattern of national programmes in 1991 is 
very different according to sector, with very large scale global 
programmes in sectors such as enterprise restructuring, agriculture and 
environment contrasting with the range of separate small scale technical 
assistance programmes for policy reform in energy, telecommunications 
and transport. Within the social/employment and education/research 
sectors there is equally wide variety and sector proliferation, with 
large scale sector programmes for health and labour market restructuring 
contrasting with a range of small scale programmes of technical 
assistance and innovation such as the civic dialogue/NGO programme in 
Poland. It should be noted moreover that some of the social sector 
programmes foreseen during programming such as labour market development 
in Hungary and health restructuring in Bulgaria were postponed until 
1992, giving way to the claims of those sectors where programmes could 
be finalised more rapidly. 
In the education/research sector, the TEMPUS scheme continued to be the 
priority area for assistance. Though the major financing decisions were 
not taken until June 1991, in practice all the grant applications had 
been received much earlier in the year and analysis and evaluation by 
the TEMPUS office already well advanced. For further information on 
TEMPUS reference should be made to the separate report on TEMPUS 1990-91 
produced by the Commission in February 19921). 
2.3 Multidisciplinary measures 
In addition to the sectoral programmes, a commitment of 10 MECU for 
"multidisciplinary technical assistance" was agreed in two successive 
tranches as in 1990. This is the enabling device giving a global 
authorisation to finance, within given parameters, small-scale 
operations such as feasibility studies and technical assistance without 
requiring a specific committee opinion and Commission decision on each 
operation. Of more than eighty separate contracted operations, fewer 
than 20 % were of more than 100.000 ecu in value. 
In 1991, the multidisciplinary facility was used to finance much of the 
identification, appraisal and auditing work for sector programmes. 
Planning studies were also financed for instance for telecommunications, 
transport, business innovation and management training as were major 
industrial restructuring studies for the steel, armaments and 
pharmaceutical sector in Czechoslovakia. 
The multidisciplinary facility was particularly useful to finance the 
first phase of assistance (1.5 mecu) to Albania on enterprise 
restructuring, SMEs and support for the Minister for Aid Coordination. 
Certain small-scale projects were financed in this way including support 
for the new Centre for European Studies in Sofia as foreseen in the 
Bulgarian Indicative Programme 1991/92. Certain study trips and 
scholarships were also financed including stages in the Commission for 
Polish, Hungarian and Czechoslovak officials, and scholarships at the 
College of Europe. 
1) SEC(92) 226 of 12.02.1992. 
- 9 -
2.4 Regional Cooperation 
The concept of regional projects involving preferably three or more 
countries eligible for PHARE assistance was developed gradually during 
the course of 1991 following the initiative of the Commission late in 
1990 to establish a support programme for joint ventures with EC-based 
small and medium sized enterprise without making any predetermined 
subdivision between the East European countries concerned. 
A similar rationale for regional projects - the indivisibility of 
assistance - was used to justify the financing of the technical 
assistance/management costs of the TEMPUS programme, which in 1990 had 
simply been divided on a 2:1 ratio between Poland and Hungary. 
A different rationale for regional projects emerged during national 
programming when it became clear that several countries were interested 
in receiving the same kind of technical assistance and training in areas 
like customs and statistics modernisation and that this could be managed 
most effectively through a common delivery system. A similar reasoning 
was behind the standards/quality assurance programme developed in 
liaison with the European Standards Organisation (CEN/CENELEC) co-
financed by EFTA, and the public administration reform programme (SIGMA) 
to be managed through the public management service (PUMA) of the OECD. 
Regional cooperation between the countries concerned will also be 
pursued in the context of these programmes though that is not the prime 
objective. (Table S gives an overall overview.) 
The concept of joint or transfrontier projects was developed more 
specifically in the context of the regional environment programme, and 
the R&D infrastructure support project (COSINE), as well as in the 
recourse to regional funds to top-up national TEMPUS allocations by 
financing joint European projects involving two or more PHARE countries. 
As well as giving their approval to these various programmes, the 
national aid coordinators were invited to put in their ideas and 
proposals for regional projects. In practice, however, there was little 
time for new project ideas to be thought through ab initio and the 
Commission was left to take much of the initiative on budget planning. 
In particular it turned to the regional funds in June to finance the 
emergency nuclear safety programme for Bulgaria after the deep 
international concern expressed about the Kozlodui plant, and to 
complement this with a smaller programme more specifically for 
Czechoslovakia. 
The 1991 experience of regional projects was considered at length by the 
five national aid coordinators at their meetings in Brussels in November 
and December 1991. Seeking to shift the initiative eastwards in 1992, 
they agreed, with strong Commission support, to set up their own 
procedures for a more systematic regional programming process with a 
rotating annual chairmanship of one of the coordinators starting with 
Bulgaria. 
-lo­
in. HUMANITARIAN AID 
A first priority for PHARE humanitarian aid in 1991 was to complete the 
financing of the emergency operation for children in Romania begun in 
19901) consisting on the one hand of crash heating and refurbishment 
assistance for orphanages and a medico-nutritional support action on the 
other (7.8 mecu). Preparations were also made for a follow-up programme 
(12.2 mecu) for further refurbishing of orphanages particular for 
sanitation facilities and assistance to the government to develop a 
medium-term strategy focussing on staff training and alternatives to 
institutional care. This brought to 20 mecu the aid for Romania in this 
sector as requested by the European Parliament. 
The remaining amount available for PHARE humanitarian aid within the 
ceiling of 5 % of the total PHARE budget as agreed by Commission and 
Council in 1990, was immediately earmarked for urgent assistance for 
basic medical imports to Bulgaria and Romania, both of which were facing 
dramatic constraints of foreign exchange. Identification missions were 
organised in liaison with the WHO. The 10 mecu operation for Romania 
was organised by a European level procurement agency, liaising with the 
technical assistance team already supervising the medico-nutritional 
programme. In Bulgaria, the 10 mecu operation was handled by two NGOs 
who established a network of local pharmasists on the spot to supervise 
distribution and sale. Counterpart funds deriving from receipts from 
sales of drugs were established in both countries in accordance with the 
general protocols agreed with the Commission (see below point 4.4) 
As 1991 progressed, it became increasingly clear as a result of a 
sequence of unforeseeable events that additional humanitarian assistance 
was required - first the floods in Romania, secondly the events in 
Albania, then later the civil war in Yugoslavia, crop failures in 
Romania and the interruption of energy supplies in Bulgaria following 
the emergency closure of one of the Kozloduy nuclear reactors. In order 
to make an adequate response the Commission had to exceed the indicative 
5 % ceiling (this was later formalised with the Council and raised to 10 
% on the occasion of the adoption of the second amendment to Regulation 
3906/89 - see above point 1.1). A series of additional humanitarian aid 
operations were financed on this basis using resources originally 
earmarked for the Yugoslav national economic aid programme which were in 
effect progressively reallocated as and when urgent needs arose (see 
above point 2.1). The final total of PHARE humanitarian aid 1991 came 
to 72.7 mecu. The overview of humanitarian aid in 1991 is given in 
Table 6. 
1) Points 4.1 and 4.2 of the 1990 Annual Report. 
- 11 -
IV. IMPLEMENTATION OF 1990 AND 1991 MEASURES 
Once the financing decision has been taken, the normal procedure as 
explained in the 1990 Annual Report is for a financing memorandum to be 
signed by both the Commission and the Implementing Authority, usually 
the line ministry in the country concerned, specifying the respective 
responsibilities for management of both parties. As a general rule the 
use of decentralised implementation systems continued in 1991 with line 
ministries being required to set up programme management units, 
designate an authorising officer, open a bank account and draw up a 
detailed work plan and cost estimates for the first six months. 
To speed up this necessarily rather slow start-up period, various 
improvements and innovations have been made during 1991. Where 
possible, given existing contracting procedures, greater continuity of 
technical assistance was achieved, by supplying some "bridging" 
assistance beyond the finalisation of the initial programme proposal, 
and by advancing as far as possible the tendering for long-term 
assistance. 
4.1 Tenders and Contracts 
In accordance with Commission Regulations Technical Assistance contracts 
are normally awarded after restricted invitation to tender, i.e. on the 
basis of a selection of a limited number of firms (shortlist) which are 
asked to submit a proposal. The criteria for the final choice rely 
strongly on quality and to a lesser extent on price. For smaller TA 
contracts (below + 50,000 ECU) the contract can be negotiated by direct 
agreement. Only for supply contracts, of which there are not very many 
under PHARE (see table 7), there is an open invitation to tender in the 
Official Journal of the EC. 
All contracts can be awarded under either of two different 
implementation systems used by PHARE: 
- the direct implementation where contracts are awarded and managed 
from Brussels on behalf of the recipient countries; 
- the decentralised implementation system where contracts are approved 
and managed under a "work programme/advance payment" system by the 
recipient country. 
Under both systems the same procedures have to be used, and under the 
decentralised implementation system the Commission monitors the respect 
of these procedures by the recipient institutions. 
Since data on contracts awarded under decentralised implementation reach 
the Commission only with some delay, the information given in the table 
below is still essentially based on contracts awarded under the direct 
implementation system. They show that about 550 contracts have been 
awarded in 1991 of which less than one half were awarded after 
restricted tendering. Over one half, being smaller TA contracts, have 
been awarded without formal tendering. 
- 12 -
It is difficult and somewhat misleading to give a breakdown by 
nationality. The table below attempts to do this for contracts awarded 
from Brussels. In an international market many firms operate from 
several countries, and international partnerships are frequent among 
consultancy firms, with whom PHARE does most of its business. 
For this reason a large share in the table below is taken up by 
"international organisations", "other" or "unclassified" by nationality. 
Simplifying assumptions have been made for the rest which may also 
somewhat distort the picture. It should finally be borne in mind that 
these contracts do not include those awarded under the decentralised 
implementation system. Information on these contracts will be available 
only later and may substantially change the picture. 
With these reservations, one should read the table with much caution. 
Still, it seems that during 1991 Belgian and French firms have been 
doing exceptionally well, while Italy, Spain, Portugal and Greece are 
scoring low. The Commission is following the situation, and figures 
will be completed and updated regularly. 
REGARDING CONTRACTS SIGNED IN 1991 
1. No. of cases 
2. Total volume of contracts 
3. National % in terms of volume 546 contracts 
214,992,383 ECU 
COUNTRY ECU in % 
Belgium 26 129 213 12.2 % 
Germany I-L 628 552 5.4 % 
Denmark 4 756 206 2.2 % 
Spain 2.572 100 1.2 % 
France 35 445 399 16.5 % 
Greece 116 634 0.1 % 
Ireland 2 608 803 1.2 % 
Italy 5 774 584 2.7 % 
Netherlands 14 276 395 6.6% 
Portugal 30 840 0.0 % 
United Kingdom 15 920 379 7.4 % 
PHARE counries 700 754 0.3 % 
Int. Org. & Others 63 515 193 29.5 % 
Unclassified 31 517 331 14.7 % 
TOTAL 214 992 383 
In late 1991 the Commission started to create a new single consultancy 
register which will include all firms and experts expressing an interest 
to work under PHARE and the CIS programmes and which is specially 
tailored to the needs of these programmes. A standardised database is 
being developed which we hope will be universally used in all Programme 
Implementation Units in the recipient countries and which will 
facilitate reporting and monitoring of all contracts and financial data. 
13 -
The Commission created a small general information service which is 
available for interested consultants who seek advice on how to become 
involved under PHARE programmes. 
We hope to gradually improve this service so consultants can obtain more 
focused information on upcoming contracts. 
4.2 Payments 
At the end of 1991 the disbursement rate on 1990 programmes was 61 % on 
average (an overall view of disbursements is given in table 8). The 
disbursement rate was particularly high on TEMPUS and on Humanitarian 
Aid (97 % and 94 % respectively), which can be explained by the specific 
character of these programmes. TEMPUS limits commitments to annual 
grants which are then renewed year by year. 
Within the global figures for disbursement, the largest single item is 
national programmes (exclusive of TEMPUS), which showed a disbursement 
rate of 52 %. Included in this figure are some rather quick disbursing 
import programmes which were among the initial PHARE activities in 
Poland. Taking into account the multi-annual character of the typical 
nation (and regional) PHARE programmes, a disbursement rate of 52 % is 
quite satisfactory. The typical life cycle of these programmes requires 
a certain lead time for preparation before funds can be committed for 
contracts and disbursements can be made during contract execution over 
several years. This explains why disbursements increase considerably in 
the second year, as the table demonstrates. 
These typical characteristics of the programme life cycle also explain 
why disbursements on 1991 national and regional programmes were still 
low at the end of that same year (8 % for national programmes). Most 
programmes had only been approved and finalised in the second half of 
the year, and the bulk of disbursements can only be expected to start in 
the next year. High rates of disbursement on 1991 programmes were, of 
course, achieved for TEMPUS, for the humanitarian aid supply operations 
agreed early in 1991, and for the two supply programmes for Romania for 
agricultural inputs and basic drugs. 
One particular aspect of the PHARE implementation system is reflected in 
the table under the heading of "Advances to PIU's" i.e. to Programme 
Implementation Units. These advances account for 35 % of 1991 
disbursements on 1990 and 1991 national programmes. 
They refer to the decentralised implementation procedure, under which 
the recipient countries are given a share of responsibility for 
execution. The recipient institution in charge (PIU) receives an 
advance payment based on an estimated work plan and budget for the six 
month period ahead. This advance enables the PIU to conclude contracts 
and to make payments, provided certain Commission approvals are given. 
While this implementation system is very desirable because it shifts 
responsibility increasingly to the PHARE recipients, it also takes more 
time to set up the local units including the EC technical assistance 
which usually lead to accelerate disbursements once the local 
institutional capacity has been established, which is usually only in 
the second year of the programme cycle. 
- 14 -
4*3 Monitoring and Evaluation 
Under the decentralised implementation system the Commission agrees with 
the recipient institution on a business plan ("work programme") in 
advance for a six months period. The work programme lists all the steps 
and measures to be undertaken during this period, and estimates their 
cost. Once the work programmes is agreed by the Commission, this cost is 
then advanced to the implementing institution to enable it to actually 
execute the work programme and pay for it. For this purpose we usually 
agree with the recipient institution to designate a local team that is 
in charge of the implementation ("Programme Implementation Unit"), 
including the Head of that team who has special authority to make 
decisions and to spend PHARE money. In many cases this team is assisted 
by consultants from the EC to help them with the implementation of the 
programme. So under the decentralised system it is this team that has to 
award all contracts and make all payments. 
At the end of 1991 the Commission had in 7 cases made a second advance 
payment under the decentralised implementation system. That means in 7 
cases a progress report for the first 6 months period of implementation 
and a 2nd work programme for the next 6 months period had been received. 
As the decentralised implementation system is reaching its cruiBing 
speed the Commission will monitor its functioning. From the first cases 
we have learned that a more systematic concept is needed for the 
monitoring of implementation under work programmes. We need to build up 
a stronger advisory capacity at headquarters so we can reach out to the 
implementing institutions and assist them, especially with the 
procedures for awarding contracts and with financial management. 
We intend to standardise to some extent the flow of information, the 
presentation of work programmes and of progress reports so they are 
mutually compatible and easy to monitor. 
In the longer term we hope to have an evaluation system which in 
addition to the monitoring of implementation, procedures and financial 
aspects will tell us about the actual impact of the programme in 
reaching its intended objectives. This is a much more demanding 
proposition, and its feasibility is being examined since late 1991 by 
PHARE in conjunction with a team of specialised consultants. Ideally the 
evaluation system will be based on the "logical framework" method and 
will deliver indicators of project achievements to the implementing 
institutions and to PHARE task managers. 
Monitoring and controlling functions are, of course, also assumed by the 
Financial Control department of the Commission, who visited Poland, 
Hungary and Czechoslovakia in 1991 and by the Court of Auditors who also 
visited these three countries and who report annually to the European 
Parliament about their findings. 
- 15 -
4.4 Counterpart Funds 
Following the model established with Poland in 19901), agreements were 
drawn up with the governments of Albania, Bulgaria and Romania for the 
management of counterpart funds generated from the sale of products 
supplied in the context of PHARE-financed import programmes. 
For Albania, counterpart funds will be collected following the sale of 
breadmaking wheat and medicines supplied in the context of 1991 
humanitarian aid. For Bulgaria, both the medical and energy import 
programme financed in 1991 as humanitarian aid give rise to counterpart 
funds to be managed by the Ministry of Finance, together with receipts 
from the 1990 agricultural inputs programme. In Romania, the 
Counterpart Fund which is managed by the Romanian Development Agency 
includes receipts from early non-PHARE food aid operations (used to co-
finance the programme for children in orphanages) and will also collect 
receipts from the three 1991 supply programmes (agricultural, agro-
industry and transport) as well as the humanitarian (medical) and food 
aid operations. 
In all three cases, the responsible national authority is due to prepare 
an indicative programme for the allocation and disbursement of 
counterpart funds over an initial period in 1992 in accordance with the 
principles of the Memorandum of Understanding each has agreed with the 
Commission. 
In Poland, the counterpart funds generated from the programme of sales 
under the 1990 agriculture supplies have been collected and banked over 
the course of 1991 and managed by the Cooperation Fund. Disbursements 
until now have been authorised on an ad hoc basis essentially for minor 
costs connected with aid coordination and management. Extensive 
discussions have been held during 1991 with the Minister responsible for 
Aid Coordination regarding the indicative programme for the use of 
counterpart funds in acordance with the Memorandum of Understanding 
signed in December 1990. An outline 4-month programme was agreed by the 
government in December 1991 which, apart from providing complementary 
resources for existing PHARE programmes, will be used to finance various 
measures connected with the development of European studies in Poland. 
At end 1991, the counterpart funds amounted to 40 billion PLZ (about 
30 mecu). 
1) Point 2.6 of 1990 Annual Report. 
- 16 -
V. SPECIFIC ISSUES 
5.1 Aid Coordination 
As explained at length in the 1990 Annual Report, aid coordination has 
been a major preoccupation for the Commission since the beginning of the 
PHARE programme. During 1991, it has continued its efforts to achieve 
complementarity of aid, particularly by assisting the national 
authorities which are recipients of aid to establish a coherent policy 
framework within which the efforts of various donors can be situated. 
Table 9 attempts to summarise the types of aid coordination which have 
taken place during 1991. This makes clear that there is great variety 
in the nature of coordination but that some form of coordination is 
evident in all sectors, indeed for most programmes. Though the key 
partner is very often the World Bank, a great variety of other bilateral 
and multilateral bodies have been involved. 
Cooperation with the World Bank, and, depending on the sector, with EIB 
and EBRD, continues to be of great importance, given the need to ensure 
convergence of advice and ideas on medium-term policy objectives and a 
clear division of labour regarding long term technical assistance, 
feasibility studies etc. This has been the case particularly with 
regard to privatisation and enterprise restructuring, to environment, 
health and certain infrastructure sectors. 
Clearly the more donors interested in a particular sector/country, the 
more scope there is for setting up specific coordination mechanisms most 
often situated within the relevant national Ministry or implementing 
agency, sometimes based on a PHARE financed Programme Implementation 
Unit. A striking example of this is the Hungarian SME programme, 
managed by the Hungarian Foundation for Enterprise Promotion, which has 
succeeded in creating a "pole of attraction" for donors and a 
coordinated framework within which bilateral donors have been able to 
sponsor individual local enterprise agencies across the country. 
A similar process of aid coordination has been carried out by the Polish 
Foundation for the Support of Local Democracy which channels a range of 
bilateral support down to the regional network of local government 
training centres. 
Given the small size and limited flexibility of much G24 bilateral aid, 
it is, generally speaking, much easier to associate these donors once a 
PHARE sector programme has started up, set up its programme 
implementation unit and established a plan of work. A very precise 
division of labour can then be defined taking account of the sometimes 
highly specific nature of a bilateral input for instance in the form of 
specialised expertise, training seminars, study visits etc. For this 
reason, Table 9 can give only a very preliminary view of aid 
coordination implications of the programmes referred to. As 
implementation proceeds, there is a high chance that other G24 
assistance will become associated with the various PHARE programmes 
launched in 1990 and 1991. 
Co-financing in the form of a common fund remains extremely rare, 
precisely because of the different constraints, particularly as regards 
procurement, that donors place on their assistance (including the EC). 
- 17 -
One very interesting example however of a co-financed programme is the 
regional programme on industrial standards which is co-financed by EFTA 
in the proportion 14 % EFTA 86 % EC and is implemented by CEN (the 
Comité Européen de Normalisation) which is made up of the national 
standards institutes of the Twelve and the EFTA countries. 
A different form of co-financing is implicit in the TEMPUS programme, in 
the sense that grants for JEPs rarely cover the full cost of the 
projects and the EC universities themselves usually make up the 
difference. Universities in non-EC countries also participate in JEPs. 
As regards Youth Exchange projects under TEMPUS, only 50 % of the EC 
participation costs is paid through TEMPUS, which automatically implies 
a form of co-financing whether through public bilateral aid or other 
sources. 
5.2 Privatisation, Restructuring and Private sector development 
The restructuring and privatisation of state enterprises and the 
complementary development of the private sector is central to the 
process of economic reform in Central and Eastern Europe, and thus a 
major area for PHARE assistance in 1991. 
For restructuring and privatisation the initial measures undertaken in 
1990 in Poland and Hungary focussed primarily on strengthening the 
institutions managing the process (the SPA in Hungary, the Privatisation 
Foundation - later Ministry in Poland) and some in-house expertise. In 
1991 these were extended into major medium-term sector programmes, 
covering mainly technical assistance, training and preparatory work 
related to restructuring and privatisation (diagnostic studies, 
enterprise evaluation, sector studies, privatisation advisory services, 
training, privatisation transactions). Similar programmes were financed 
in the CSFR, Bulgaria and Romania. The contents of the individual 
programmes were tailored to the particular requirements of the countries 
concerned, based on their policies, strategy and the stage reached in 
the reform process. In Poland, Hungary and the CSFR the basic policy 
and legal framework were largely established prior to or during 1990. 
PHARE support in these countries therefore comprised expertise to review 
methodology and procedures, and assist in managing the restructuring and 
privatisation programme, and funds for staff training and financing the 
enterprise or sector related studies and consultancy referred to above. 
In Romania and Bulgaria assistance also covered policy formulation, 
legislation and methodology, in addition to the operational activities 
indicated earlier. Given their relatively late adhesion to PHARE, some 
specific advisory services and studies were financed in 1991 for Albania 
and the three Baltic republics, aimed at providing the basic policy and 
legislative framework, with the intention of building on these for a 
larger programme of assistance in 1992. 
As an indication of the operations undertaken in 1991, in Poland 
financing was provided for long-term advisors (including for mass 
privatisation and legal issues), for 21 enterprise evaluation and 
several sector studies (component industry, packaging, cement industry), 
for major restructuring operations and privatisation transactions 
(ORBIS, FSM URSUS). In the CSFR sector studies were financed for the 
pharmaceutical and steel industry, and armaments reconversion, with 
long-term advisory services for screening potential enterprises for 
privatisation. In both Bulgaria and Romania assistance was provided for 
review of basic legislation, policy and the institutional structures 
required to manage industrial restructuring and privatisation. In 
- 18 -
Bulgaria some sector studies and major privatisations are under 
consideration. In Romania assistance was provided for setting up the 
ownership structure for state enterprises (State Ownership and Private 
Ownership Funds) and finalising the arrangements for distributing 30 % 
of state assets to the public through share certificates, for 
restructuring studies of major state enterprises (electricity 
distribution underway, with stell and petrochemicals under preparation) 
and for 10 pilot privatisation projects. In addition, in Hungary, 
direct support to the process of industrial restructuring was under 
preparation in the form of equity financing for a Restructuring and 
Privatisation Investment Company (RPIC), which would have the task of 
taking over selected state enterprises with a view to turning them into 
profitable entities prior to sale. 
The above operations were carried out in cooperation with other donor 
organisations notably the EBRD and the World Bank. A total of nearly 
150 MECU were committed to these specific activities in 90/91 (excluding 
Yugoslavia). 
Measures aimed at promoting foreign direct investment, a vital element 
in the development of the private sector and essential to the success of 
privatisation, were also supported in 1991. A major programme of 
investment promotion and export development was approved for Hungary, 
covering policy and strategy formulation, institution building and pro­
active promotional operations (identifying potential investment 
opportunities and targets, marketing, in-ward and outward missions, and 
investment seminars). For the CSFR, Bulgaria and Romania, the basic 
preparatory work was carried out during 1991, with a view to financing 
substantive operations in 1992, with a similar operation started in 
Albania. 
The growth of a strong SME sector is also an important element of the 
reform process, as it provides employment opportunities for manpower 
displaced by restructuring, as well as contributing to the creation of a 
competitive market oriented economic environment. The rapid increase in 
small privately owned small enterprises has been one of the 
characteristic features of the reform process in Central and Eastern 
Europe. Measures to support the development of SMEs were therefore 
continued and expanded in 1991. Major sector programmes had already 
been approved for Poland and Hungary in 1990, and extensions of these 
were made in 1991. New programmes were instituted for the CSFR and 
Bulgaria, with one for Romania expected in early 1992. A pilot project 
was financed in Albania, with an extension anticipated in 1992. A 
substantial part of these programmes covers the creation and 
strengthening of a network of local enterprise agencies or business 
centres to provide basic advisory services to small businesses, 
including training, information, general support, and reinforcing 
national or local SME institutions. The second main element covers the 
provision of finance either in the form of two-stage loans through 
selected banks or credit guarantee schemes. Support is also normally 
provided to strengthen the capacity of the banks concerned to process 
credit for small businesses, including staff training, standard 
documention and procedures. In certain cases, notably Bulgaria, Romania 
and Albania, support is also being provided for SME policy formulation, 
basic institutional structures, and legislation where appropriate. A 
total of 95 MECU were committed to this sector in 90/91. 
- 19 -
Finally a modern banking and financial sector is essential if the market 
economy and the emerging private sector are to operate effectively. For 
this reason PHARE is supporting banking reforms in the countries of 
Central and Eastern Europe aimed at the establishment of a two tier 
system, with a separation between a Central Bank as a monetary and 
regulatory authority and commercial banks offering the normal range of 
services to clients. The support includes technical assistance for 
policy and institutional strengthening, bank audits, evaluation, 
training. Finance is also being provided in the field of accounting, 
auditing, taxation, insurance and capital markets to cover inter alia 
policy, the legal and regulatory framework, standards and procedures and 
information systems. Particular attention is being paid to 
compatibility with Community standards and regulations. A total of 
53 MECU was committed to these activities in 90/91. In designing these 
programmes close cooperation has been maintained with the other major 
donors involved. 
5.3 Civic Society dimension 
All the Indicative Programmes for 1991 PHARE assistance contain a 
commitment to take account, in both the preparation and implementation 
of PHARE programmes, of the need to enhance the role of non-state 
bodies, such as small business associations, trade unions, professional 
associations and other non-governmental organisations (NGOs). This 
commitment reflected the growing acknowledgement, by recipients and 
donors alike, that without a thriving independent non-state sector or 
"civic society", neither economic nor political reform could fully 
succeed. The strengthening of civic society, as an integral part of the 
process of policy reform, has thus gradually become a regular feature of 
many PHARE programmes. 
Direct support to NGOs to act as instruments of policy implementation 
figures particularly in PHARE sector programmes concerning SMEs, 
environment, social and employment policy. In all the SME programmes, 
for instance, key importance is attached to the strengthening of 
intermediary bodies, such as chambers of commerce, and small enterprise 
associations, to serve as relays and multipliers of technical support 
towards individual entrepreneurs. In the various environment sector 
programmes, there is also a developing role for NGOs to be involved in 
organising environmental education and awareness-raising activities, 
working in partnership with the public authorities. In the field of 
social policy reform, where the emphasis is on decentralisation and 
promoting self-help, NGOs are encouraged to become active agents of 
social welfare in the place of the state. This is the focus of the 1990 
social welfare programme in Hungary and a key component of the 1991 SED 
programme in Poland which aims to strengthen and professionalise NGOs. 
The same Polish programme, together with the 1991 labour market 
programme for Bulgaria, also put emphasis on local employment 
initiatives bringing local authorities into partnership with local NGOs, 
employers and trade unions. 
A very different kind of direct support for initiatives from outside the 
public sector is the grant aid for joint projects in the context of the 
TEMPUS and ACE programmes for cooperation in higher education and in 
economic research. The initiative in these cases lies with individual 
university departments or institutes, which, though they may not have 
the same kind of autonomy as NGOs, usually have considerable 
independence of action (depending on progress in higher education 
reform) making them an important constituent of civic society. 
- 20 -
The most significant PHARE initiative concerning civic society in 1991 
has been the 3 MECU Polish "Civic Dialogue" programme foreseen 
explicitly by the Polish government in the 1991 Indicative Programme, 
and prepared during the course of 1991 by means of extensive debate with 
Polish NGOs to ascertain needs and priorities. The resulting programme, 
as agreed end 1991, aims to strengthen the role of NGOs generally and 
their participation in Polish society and economic life. It provides 
project grant aid, together with support for training in management, 
public relations, fund raising and for improving the legislative 
framework for NGOs. One aim of the programme is to prepare for a 
national NGO agency representative of the Polish NGO community. This 
agency would take over management of the Civic Dialogue programme which 
is temporarily in the hands of the Cooperation Fund, an independent 
foundation attached to the Polish Bureau for Foreign Assistance. 
Independent foundations, in so far as they already exist, are frequently 
chosen to have implementing responsibility for PHARE programmes, in 
preference to Ministries or government bodies which tend to have less 
flexibility and which may have no specific technical competence in the 
area of activity in question. Examples include the Hungarian Foundation 
for Enterprise Promotion, which manages the PHARE SME programme; the 
Polish Telephones Foundation, which manages the rural telecommunications 
programme; the Hungarian Foundation for Local Social Networks which runs 
the social welfare programme; the Polish Foundation in Support of Local 
Democracy and the Czech and Slovak Associations of Municipalities all of 
which manage the local government support programmes. Specific 
components of PHARE programmes may also be contracted out or managed in 
close liaison with NGO partner bodies such as the Bulgarian Union of 
Private Farmers or the Hungarian Association of Vocational Training. 
Support for civic society is a two-way process. In so far as 
independent bodies exist and can demonstrate a sufficient degree of 
representativity and technical competence, PHARE programmes can 
frequently provide them with an opportunity to take over some 
operational responsibilities, giving them further technical and 
administrative support in the process. A different type of relationship 
with NGOs may also be developed, focussing on dialogue and consultation 
by government. Such is the case for instance in the modernisation of 
policies on energy and telecommunications where the views of consumers 
have to be considered with particular care. Advisory committees or 
steering groups to represent consumer interests are thus foreseen in the 
context of the relevant PHARE programmes. 
Similarly, in the context of training and employment policy, the 
involvement of trade unions and employers associations is built into the 
Hungarian and Czechoslovak labour market reforms. In the CSFR for 
instance, a tripartite Labour Market Advisory Council will oversee the 
implementation of the 1991 PHARE programme. In other areas of activity 
supported by PHARE in CSFR, such as the industrial restructuring studies 
and work on a new wage determination system, consultation procedures 
with trade unions and employers are relatively well established and 
could well provide an example elsewhere. 
- 21 -
VI. COMMISSION ORGANISATION 
During 1991, the work load of the PHARE Operational Service (PHOS) more 
than doubled, its tasks including the implementation and follow up of 
1990 measures amounting to 500 mecu, together with the planning, 
preparation and implementation of 1991 measures amounting to 775 mecu. 
A large "mini-budget" of 10 mecu was used for a variety of staffing and 
equipment requirements connected with PHARE assistance and aid 
coordination. 
Though still far from commensurate with the work load, staffing of PHOS 
increased during 1991 as follows: 
a) Officials 
(all grades incl. 
secretarial staff) end 1990 
35 increase during 
3 end 1991 
38 
b) Non-statutory staff 
(all grades incl. 
secretarial staff) 36 45 
Total 44 39 83 
Staff is organised into four units essentially on sectoral or functional 
lines: 
1. Agriculture; environment; infrastructure (energy, transport, 
telecommunications); nuclear safety. 
2. Enterprise restructuring and privatisation; SMEs; investment 
promotion; banking and financial sector development. 
3. Employment, social policies and health; public administration and 
infrastructure (customs, statistics ...); humanitarian aid and NGOs; 
country coordination and programming. 
4. Administration and finance; secretariat of the PHARE management 
committee. 
A small information unit was also created during the year. 
As indicated in the 1990 report, in spite of substantial recruitment of 
additional non-statutory staff on a temporary basis, constraints on 
staffing levels and the deteriorating proportion of statutory officials 
within the total staff have been a major preoccupation, compounded by 
major problems regarding office space (exacerbated by the Commission's 
requirements for new premises to replace the Berlaymont building). 
- 22 -
VII. PERSPECTIVES FOR 1992 
The 1991 financial year has been particularly satisfactory from the 
point of view of the growing understanding and expertise of the national 
authorities in the recipient countries about foreign assistance in 
general and PHARE in particular. Their capacity to plan and manage 
assistance will to a very large degree determine the overall 
effectiveness of PHARE. It will also reflect to a large extent their 
capacity to manage national policy reforms more generally. For these 
reasons, continuing attention and support will need to be given to 
institutional development - technical assistance and transfer of 
management skills linked with specific programmes but also more 
generally for structural reform and training of public administration at 
both national and local level. 
The 1991/92 policy orientations and general guidelines will undoubtedly 
remain valid in 1992 but with growing differentiation between countries. 
The newly eligible countries will require technical assistance in a 
broad range of sectors, including policy and the setting up of the 
legislative, institutional framework required for a market economy. 
Others, that are either well into or have passed the initial stage of 
structural adjustment covering price and trade liberalisation and macro-
economic stabilisation, will need more flexible forms of assistance 
tailored to the needs of the more complex and longer-term stage aimed at 
the restructuring of production capacity and rehabilitation of essential 
infrastructure. This could include measures to stimulate and mobilise 
private investment, more direct assistance to enterprises being 
restructured to contribute to their reorganisation and initial capital 
costs, and in the case of countries most seriously affected by the 
process of adjustment appropriate import support programmes in the 
initial period. In some cases this may require a regional focus. 
After a first year of regional cooperation, special efforts will be made 
to enable the recipient countries to play a more active role in planning 
and managing regional programmes, building on the agreement reached at 
the meeting in December 1991 of the national aid coordinators. 
Continuing uncertainty, notably in connection with the troubled 
dismantling of Yugoslavia, will require great flexibility from the PHARE 
programme. As in 1991, economic reform and restructuring has to remain 
the principal vocation of PHARE, with humanitarian aid being used if 
possible only for essential relief and welfare measures for target 
populations rather than for large scale import supply programmes. 
Despite calls from some quarters for rapid disbursement of PHARE funds, 
appropriate only in the case of import programmes and short term grant 
schemes such as TEMPUS, PHARE will need to continue its focus on medium-
term policy objectives, which entail multiannual programmes of 
assistance and investment and decentralised management. 
- 23 -
A gradual shift away from technical assistance is to be expected, as 
absorption capacity for this form of aid diminishes and needs develop 
for other forms of grant assistance to support the process of policy 
implementation and to promote investment in the private sector. 
Patterns of PHARE assistance may thus change, with growing emphasis -
building on experience gained in 1990-91 - on the development of local 
training capacity on promotional schemes for innovation and local 
initiative, on targetted support for regional development and SMEs, on 
incentive schemes for energy saving and environmental investment... 
Mechanisms for delivering PHARE assistance may also need to be adapted, 
to simplify and further decentralise administration and enhance 
management capacity in the recipient countries, whilst at the same time 
improving the Commission's role in monitoring and evaluation of 
assistance. 
-*H-**£$&§%£ 
TABLE 1 
SYNTHESIS OF NATIONAL INDICATIVE PROGRAMMES 1991/1992 
BULGARIA 1991/92 (2 year forecasts) MECU 
Enterprise restructuring, privatisation 30-40 
and promotion of the private sector 
Accompanying technical assistance measures 10-15 
and other priority activities 
Agriculture 40 
Energy 10 
Environment i5 
Health care 30 
Human resources (TEMPUS and ACE) 8-10 
CZECHOSLOVAKIA (1991) 
I. Key areas for the reform of the economy 
Restructuring and privatisation of public 20-25 
enterprises / phase I 
Development of SMEs 20-25 
Labour market restructuring 15 
II. Other priority sectors 
Environment and energy / phase I 8-10 
Telecommunications 10 
Human resources 5 
III. General Technical Assistance Facility 10-15 
HUNGARY (1991) 
Economic Restructuring 
Enterprise restructuring and privatisation 40-50 
(phase I) including Agriculture 
Labour Market restructuring (phase I) 10-20 
Accompanying measures 5-10 
Sustainable Development 
Trade infrastructure and promotion 10-12 
customs computerisation, Investment and 
trade promotion 
Higher education and research 
TEMPUS / ACE 12 
OFMB research linkages 5-10 
Environment (complement to existing programme) 5-10 
Energy (phase I) 5 
Provision for other technical assistance 8 
AS­
TABLE 1 continued 
POLAND (1991) 
I. Core areas for the reform of the economy 
Restructuring of enterprises, demonopolisation 
and privatisation 
Financial sector 
Unemployment and labour 
Private sector development 
II. Sectoral development needs 
Reserve for above programmes 50 
16 
18 
6 
Agriculture 
Education 
Civic society 
Environment protection 
Healthcare system 
Energy, Transport and Telecommunications 10 15-25 
15 
12 
30-40 
20 
8 
ROMANIA (1991) 
General technical assistance 15-20 
Sector import programmes (agriculture, 50-70 
agro-industry, transport and health) 
Human Resources 
Reserve 8-10 
7-10 
.,2 6 
TAm.i. 3. 
PROVISIONAL IIREAKDOWN BY SECTOR OF MAJOR NATIONAL 
1991/92 FORESEEN ACCORDING TO INDICATIVE PROGRAMMES. PROGRAMMES (1) 
COUNTRY AMOUNT 
ECONOMIC RESTRUCTURING (M..ECU) 
Enterprise restructuring/privatisation P ;50 
Enterprise restructuring/privatisation B 30-40 
Enterprise restructuring/privatisation CS 20 - 25 
Enterprise restructuring/privatisation H .40 - SO 
Financial sector P 16 
SME P 6 
SME CS 20 - 25 
AGRICULTURE 
Import/sec tor 'programmes 
Import/sector programmes 
Import/sector programmes R 
B 
P 34 
40 
IS - 2S 
INFRASTRUCTURE 
Energy, transport, telecommunications 
Transport 
Energy 
Energy 
Energy and telecommunications 
Statistics, customs, standards 
Customs/trade promotion P 
R 
B 
H 
CS 
ALL 
H .» 10 
9 
10 
S 
10 - IS 
(15) 
10 - 12 
ENVIRONMENT 
Environment 
Environment 
Environment P 
B 
CS 30^- 40 
IS 
S 
HUMAN RESOURCES 
Education (TEMPUS etc . 
Labour market/training 
Labour market/training 
Labour market/training 
Health 
Health 
Health 
Science and Technology 
ACE (economic research) 
Civic Society ALL 
CS 
P 
H 
R 
P 
B 
H 
ALL 
P (56) 
IS 
18 
10 - 20 
25 
20 
30 
10 
(S) 
12 
DIVERSE TECHNICAL ASSISTANCE 
H 
R 
B 
CS 10 - IS 
22 
10 - 15 
10 - 15 
(1) Not including Yugoslavia. 
-¥? - TAnL-£ 3 
SCHEDULING OI: (INANCING PHOI'OSALS (NATIONAL PIUXiHAMMLb) 
ON 1991 UUOGLT 
COMMISSION ÛLCISIONS 
COUNIRY/SLCIOH 
BULGARIA 
Enterp rcstructur SME 
Telecom 
Financial sector 
Tcmpus 
Private agriculture 2 
Cncrcjy 
Environment 2 
Labour 
HUNGARY 
Nat firm registr/inform syst 
Transport 
Energy 
Enterpr restruct & privatisation 
Restructuration agriculture 2 
Tempus 
Customs 
Environment 2 
Investment promotion 
Science & technology 
SME 2 
Financial sector 
(pi^NO^v^.^V*-,^, *ï?*f% +'-^WÊ&* 
Telecom 
Transport 
Agricultural/rural TA 2 
Enterpr restruct & privatisation 
Municipal development & training 
Tempus 
Environment 2 
Fin sect + Polish Ovlp Bank 
Energy 
Health 
NGO's 
Private sector dvlp (sme.inves. exp....) 
Education 
Labour 
Public administration OMEGA 
ROMANIA 
Agric (supply) 
Health 
Tempus 
Technical Assistance Fund 
Agro-industry (supply) 
Transport (supply) 
CZECHOSLOVAKIA 
Technical Assistance Fund 
Telecom 
Tempus 
Energy 
SME 
Environment 2.. 
Enterpr restruct & privatisation 
Labour 24/04 
23.0 
20.0 
3.0 
3.5 
1.5 
2.0 
&<#-*>: 
5.0 
2.0 
* 25.0 
25.0 
20.0 
20.0 
YUGOSLAVIA | 0.0 
Tempus J 
TOTAL NATIONAL PROGRAMMES j 78.5 19/06 
15.0 
• 
1Ô.Ô 
5.0 
-
' 70,0 
5.0 
40.0 
13.0 
12.0 
&f*$&\ 
17.0 
50.0 
3.5 
13.5 
' 35.0 
25.0 
10.0 
15.0 
6.0 
9.0 
6.0 1 7/07 
25.0 
-
25.0 
..:•>: 31-5 
. 
8.0 
10.0 
5.0 
5.0 
3.5 
4&Q„ 
30.0 
16.0 
22.0 
22.0 
25.0 
5.0 
20.0 
0.0 
6.0 | 
225.0 | 149.5 09/10 
9.5 
2.0 
7.5 
0.0 
., Aô^ 
3.0 
Ô.Ô 
24:0 
5.0 
19.0 27/11 
••-;-2.5;:r; 
2.5 
9.0 
9.0 
*\,34<0, 
5.0 
20.0 
3.0 
6.0 
18.0 
9.0 
9.0 
15.0 
1-5.0 
0.0 | 0.0 
1 
36.5 J 78.5 17/12 
0.0 
O.O 
<&£&A* 
1.0 
18.0 
4.0 
0.0 
0.0 
0.0 
23.0 TOTAL 
Mio ECU 
75.0 
20.0 
3.0 
10.0 
5.0 
25.0 
2.0 
7.5 
2.5 
114.0 
1.5 
2.0 
5.0 
40.0 
13.0 
12.0 
8.0 
10.0 
5.0 
5.0 
3.5 
9.0 
&&&Ê 
5.0 
2.0 
17.0 
50.0 
3.5 
13.5 
35.0 
16.0 
3.0 
20.0 
3.0 
6.0 
1.0 
18.0 
4.0 
>-*10.0, 
25.0 
25.0 
10.0 
22.0 
9.0 
9.0 
99.0 
20.0 
6.0 
9.0 
5.0 
20.0 
5.0 
19.0 
15.0 
6-0 
6.0 
591.0 (1) 
(1) The final commitment figure for Hungary was 115 mecu as a result of a 0.5 mecu 
commitment delayed from 1990 and a 0.5 commitment advanced on 1992. 
-as-
Sector breakdown 1991 compared with 1990 TABLE 4 
1. Economic Restructuring / 
private sector development 
ALB Enterprise restruct/SME** 
BLG Enterprise restruct/SME 
HUN Enterprise restruct/privatisation 
Nat. firm registrat. 
SME 
Investment promotion 
POL Enterprise restruct/privatisation 
Private sector (SMEs) 
Investment promotion 
ROM Privatisation/restructuring 
CZ Enterprise restruct/privatisation 
SMEs 
Investment promotion* 
REG. Joint ventures 
Standards/quality assurance 
TOTAL 1991 
(1.0) 
20.0 
40.0 
1.5 
3.5 
5.0 
50.0 
6.0 
4.9 
19.0 
20.0 
1.0 
20.0 
4.3 
195.2 1990 
5.0 
25.0 
13.0 
21.0 
2.0 
66.0 
2. Financial sector modernisation 
BLG 
HUN 
POL 
ROM 
CZ 
TOTAL Financial sector 
Financial sector 
Fin. sector/Polish Develop. Bank 
Fin. sector reform* 
Fin. sector reform* 10.0 
9.0 
16.0 
6.6 
7.0 
48.6 5.0 
5.0 
3. Agriculture development and reform 
BLG 
HUN 
POL 
ROM 
TOTAL Support for private agriculture 
Restructuring of agriculture 
Agriculture/rural development 
Agriculture supplies 
Agro-industry supplies 
Agriculture restructuring* 25.0 
13.0 
17.0 
25.0 
9.0 
5.0 
94.0 16.0 
20.0 
100.0 
136.0 
4. Social/Employment sector reform 
BLG 
HUN 
POL 
ROM 
CZ 
TOTAL Labour market / Health 
Health Social welfare 
Labour 
Civic dialogue/NGOs 
Health 
Health 
Labour market* 
Labour market 
Social security/health* 2.5 
18.0 
3.0 
20.0 
25.0 
2.0 
15.0 
2.5 
88.0 5.0 
3.0 
8.0 
-2*3-
5• EducatIon, training, rcooarch TABLE 4 continued 
BLG 
HUN 
POL 
ROM 
CZ 
YUG 
REG. 
TOTAL TEMPUS 
TEMPUS 
Vocational Training 
Higher Education reform 
Research infrastructure and cooperation 
TEMPUS 
Vocational Training 
Education/training reform 
TEMPUS 
TEMPUS 
Science and technology* 
TEMPUS 
TEMPUS 
ACE 
Research infrastructure (COSINE) 5.0 
12.0 
5.0 
13.5 
1.0 
10.0 
9.0 
0.5 
6.0 
20.6 
5.0 
2.5 
90.1 7.0 
1.5 
3.0 
3.0 
15.0 
2.8 
4.0 
1.5 
37.8 
6. Environment/Nuclear Safety 
BLG 
HUN 
POL 
ROM 
CZ 
REG. 
TOTAL Environment monitoring 
Environment sector development 
Budapest regional centre 
Environment sector development 
Energy/environment policy* 
Environment sector development 
Danube, dirty triangle etc. 
Nuclear safety (Bulgaria) 
Nuclear safety (CSFR) 7.5 
10.0 
35.0 
2.5 
5.0 
20.0 
11.5 
3.5 
95.0 3.5 
25.0 
2.0 
22.0 
30.0 
82.5 
7. Infrastructures (transport, télécoms, energy, etc.) 
BLG 
HUN 
POL 
ROM 
CZ 
TOTAL Energy 
Telecom 
Energy 
Transport 
Energy 
Telecom 
Transport 
Transport supplies 
Energy 
Telecom 
Transport* 2.0 
3.0 
5.0 
2.0 
3.0 
5.0 
2.0 
9.0 
5.0 
6.0 
2.0 
44.0 6.0 
6.0 
•*o-
8. Public administrâtion/infrastructure Table 4 continued 
HUN 
POL 
CZ 
REG. 
TOTAL Customs infrastructure 
Foreign trade infrastructure 
Statistics 
Foreign trade infrastructure 
Public administration reform OMEGA 
Local government support 
Local government support 
Customs, standards, statistics* 
Customs 
Statistics 
Public Administration (SIGMA) 8.0 
4.0 
3.5 
1.6 
3.0 
5.0 
3.0 
3.0 
31.1 1.3 
1.5 
8.5 
11.3 
9. Other 
ROM 
CZ 
TOTAL other general TA* 
other general TA* 1.0 
2.4 
3.4 
689.4 352.6 
Technical Assistance Provision within a General 
(Czechoslovakia and Romania). 
Financed from the 'Multidisciplinary facility*. Programme 
TABLE 5 
PHARE REGIONAL PROGRAMMES 1991 
Sector/Programme 
Industry 
Joint ventures 
Standards 
Public admin/infrastructure 
Customs 
Statistics 
Public administration 
Human resources 
ACE 
R&D infrastructure 
TEMPUS - TA phase 1 
phase 2 
TEMPUS (regional JEPs) 
Information (DG X) 
Environment/nuclear safety 
Environment 
Nuclear safety (phase 1) 
(phase 2) 
TOTAL MECU 
20.0 
4.3 
5.0 
3.0 
3.0 
5.0 
2.5 
3.0 
2.6 
15.0 
1.5 
20.0 
11.5 
3.5 
99.9 date 
decision 
01/91 
09.10.91 
19.06.91 
24.05.91 
17.12.91 
24.04.91 
17.12.91 
21.02.91 
09.10.91 
17.07.91 
27.11.91 
06/91 
27.11.91 Characteristics 
Four co-financing facilities 
Jointly provided TA/training, co-financed by EFTA 
organised through CEN/CENELEC 
Jointy provided technical assistance, training, 
Jointly provided TA and training organised through 
CESD/EUROSTAT 
Jointly provided technical assistance (SIGMA) 
managed through OECD/PUMA 
Grants for joint economic research organised by 
Commission on SPES model 
TA and equipment to assist COSINE computer networking 
Financing of TEMPUS Office of the EC 
Complementary financing (extension of operations 
and duration) 
Joint European projects involving two or more 
PHARE countries 
Five component programmes, including Danube, Dirty 
Triangle, air pollution research, COSINE application 
Training/TA for Bulgaria - organised in liaison 
Training/TA for the CSFR - with WANO 
Table 6 
PHARE - HUMANITARIAN AID 1991 
Country Nature and Operation Commission's Decision Amount (w«cu) | 
Albania 
ALBANIA TOTAL 
Bulgorla 
ii 
BULGARIA TOTAL 
Romania 
ROMANIA TOTAL 
Yugoslavia 
YUGOSLAVIA TOTAL Emergency food aid (triangular with Hungary) 
Urgent medical old ond NGO support 
Urgent basic medical supplies 
Support for short term energy Imports 
Continuation emergency and orphanages 
Urgent baste medical supplies 
Medium Term orphonages/chlIdren's programme 
Emergency and flood victims 
Emergency food aid 
Peace monitoring (C£C contribution) 
Relief measures for displaced persons 15/5/91 
17/12/91 
4/1/91 
10/1/91 
19/7/91 
12/8/91 
17/12/91 
31/7/91 
29/11/91 1C.0 
1 :. o 
10.0 
20.0 
7.8 
10.0 
12.2 
0.3 
4.0 
34.0 
0.4 
8.0 
8.4 
TOTAL 72.7 
COMMUNITY FOOD AND OTHER HUMANITARIAN AID 
TO EAST ANO CENTRAL EUROPE IN 1991 Table 6 continued 
I 1 
Country 
1. Food aid 
Albania 
Bulgaria 
Romon1o 
2. Other emeraency 
ond humanitarian otd 
AI ban ta Nature and Operation 
-Food aid -Council Regulation (FEOGA) 2938/91 (1.10.91) 
100.000 Tonnes (wheat) 
- Food aid - Council Regulation (FEOGA) 597/91 (5.3.91) 
- Food aid - Council Regulation (FEOGA) 597/91 (5.3.91) 
- Emergeney aid for refugees in Greece and Italy 
Budget line 
- Emergency old/ basic needs - Budget line 
- Basic medical supplies - Budget tine B 75001 i 
Commission'J Decision 
27.2.91 
January ond March '91 
July 1991 
August 1991 Amount (Mecu) | 
(PHARE '92) i 
27.2 MECU 
52.8 MECU 
1.5 MECU 
1.0 MECU 
1.5 MEOU 
I / 
oil N MIITI.Y TI-.NOI-.KS nmnsui DIN nn: OFFICIAL IOUKNAI.OF mi 
1 UKOITAN t'OMMUNITIF-N 
lùiuiiimriit (or dredging and «-«l-liaivcatiiig works in lake llalntnn and lake Vclcncei. 
Inventory of Ground Water Pollution Source* 
* 
Supply of Animal Feed to Bulgaria 
Rural Telecommunication No 1 
Rural Télécommunication No 1 
Rrcompuleri/ation and Supply of Machine-Tool* for KAFAKO 
Supply of Emission Monitoring Equipment for the Slate Inspectorate for Environmental 
IVotection. for the Central laboratory for Environmental Monitoring and the Volvodship 
Environmental Testing and Control Centres 
Hybrid Maize Seeds 
Crop Protection Chemicals 
Farm Accountancy System 
Animal Health Products 
Crop Protection Chemicals 
Good Agricultural Practices 
Feed Additives and Skimmed Milkpowder Replacer 
Soybean Meal 
Animal Feed 
Agricultural Extension Training 
Modernization of the Emission Monitoring Network - Air 101/A 
Computer and Communication Equipment for NFRIS (National Firm Registration and 
Information System) Réf. No H 9107 
Quality Control of Food Products 
Development of the Hungarian Information Infrastructure System 
Polish Central Statistical Office and the EEC 
Upgrading of the Informatic System of the Polish Central Statistical Office 
Phase 1: Multi-user UNIX-based minicomputer systems 
Computerisation of Land-Offices 
Supply of Computer Equipment for the Ministry of Ownership Changes and International 
Foundation for Capital Market Development and Ownership Change in the Republic of 
Poland - Centre for Privatisation 
Computer System for the Slate Dank of Czechoslovakia T 9107 
Fluidized Bed Installation at Ajka Thermal Power Station 
Sectoral Studies • Call for Expression of Interest from Firms regarding Preselection for the 
Carrying out of Studies on Economic Sectors and/on the Restructuring or Assesmcnt of 
Enterprises under the PHARE Programme 
Computer System for Budapest Stock Exchange 
Foreign Tiadc Infrastructure 
Medical Equipment No. 1)9107 
Computer Equipment for tlic Customs Administration of the CSFK 
Modernisation of U»e Air Quality Monitoring Network 
Animal Feed 
Installation of Monitoring System 
Installation of Monitoring System 
Supply of Computers to die National Ijutd Council 
Topographic and Informatic Equipment for tlic Ministry of Agriculture and Food 
Air Quality Monitoring Network Duit- <>l Nunitxr ol 
Old. ml Journal 
21/0 l/VI IS 
23/01/91 15 
24/01/91 16 
31/01/91 21 
31/01/91 21 
16/02/91 33 
16/02/91 33 
19/02/91 34 
19/02/91 34 
23/02/91 38 
06/03/91 45 
06/03/91 45 
21/03/91 56 
27/03/91 60 
27/03/91 60 
16/04/91 73 
08705/91 89 
08/05/91 89 
08/05/91 89 
24/05/91 99 
OS/07/91 125 
06/07/9! 126 
11/07/91 128 
25/07/91 139 
03/09/91 166 
15/10/91 194 
22/10/91 199 
31/10/91 206 
05/11/91 208 
07/11/91 210 
09/11/91 212 
16/11/91 217 
26/11/91 224 
10/12/91 233 
24/12/91 243 
24/12/91 243 
28/12/91 245 
28/12/91 245 C 15 p. 16 
C 15 p. 17 
C 16 p. 14 
C 24 p. 07 
C 24 p. 08 
C 40 p. 12 
C 40 p. 13 
C 43 p. 06 
C 43 p. 07 
C 47 p. 09 
C57p. 17 
C57p. 18 
C 76 p. 10 
C 82 p. 08 
C 82 p. 09 
C 99 p. 05 
C 122 p. 13 
C 122 p. 14 
C 122 p. 15 
C 134 p. 07 
C 174 p. 12 
C 175 p. 09 
C180p. 17 
C 194 p. 28 
C 228 p. 08 
C 270 p. 06 
C 275 p. 12 
C 284 p. 06 
C287p. 16 
C 289 p. 08 
C 292 p. 10 
C 297 p. 11 
C 306 p. 10 
C 319 p. 05 
C 333 p. 08 
C 333 p. 09 
C 334 p. 19 
C 334 p. 20 Country 
HUN 
HUN 
BUL 
POL 
POL 
POL 
POL 
BUL 
BUL 
HUN 
BUL 
BUL 
HUN 
ROM 
ROM 
POL 
HUN 
HUN 
HUN 
HUN 
HUN 
POL 
HUN 
POL 
CSFR 
HUN 
BUL 
CSFR 
HUN 
POL 
ROM 
YUG 
HUN 
POL 
BUL 
CSFR 
HUN 
ROM 
HUN 
HUN 
BUL 
ROM 
BUL 
— 1 IribU» 7-
General Overview of PHARE payments a s on 31.12.1991 TABLE 8 
General Overview of PHARE payments a s on 31.12.1991 TABLE 8 
Summary of epecific inatancea of aid coordination 
aa at end 1991 
Sector/programme M.ECU Nature of Linkage • 
Year Phare TABLE 9 
Donors involved 
Environment 
POL 90 + 92 
CZ 90 + 92 
ROM 91 (GT) 
BLG 91 
HUN 90 
REG 91 57 Joint PIU + regional PIU 
Feasibility studies 
35 Design/Feasibility studies 
PIU as aid coordination focus 
2 Joint strategy development 
7.5 Joint strategy development 
2 Co-financing of regional centre 
20 Black triangle co-financing 
Danube programme co-financing WB 
WB EBRD 
WB 
(all) 
WB US 
WB 
US NL DK J 
D 
WB UNDP UNEP 
EBRD NIB EIB 
Agriculture 
BLG 90 
«LG 91 
( M 91 (GT) 16 Jointly plannes supplies 
25 Jointly planned strategy 
5 Coordinated TA and training US 
WB 
WB F 
Social sectors 
POL 
ROM 
POL 
BLG 
ROM 
HUN 
CZ 
HUN 
HUN 
POL 91 
91 
91 
91 (GT) 
90 
91 (GT) 
90 
90 
90 + 91 
TEMPUS 90/91 Health 
20 Jointly designed programme 
25 Jointly designed programme 
Labour market / training 
18 Complementary to sector programmes(s) 
2.5 Jointly designed/complementary to sector 
2 Complementary TA 
Social security/welfare) 
3 Core finance brings wider support 
1 Joint strategy development 
Education and training 
1.5 (NIVE) Complementary to sector programme 
3 (CEF) Complementary to sector programme 
3.8 (VET/UPET) various co-financing 
(100) Vehicle for various G-24 involvement 
\ .blic administration and infrastructure 
POL 90 
HUN 90 
REG 91 
ROM 
POL 
POL 
REG 91 (GT) 
90 
90 
91 
Financial sector 
HUN 
HUN 
ROM 90 
91 
91 (GT) (3.5) 
1.3 
4.3 
2.5 
1.5 
3 
3 
5 
9 
6.2 } Standards 
Co-financing and coordination 
through CEN/CENELEC 
Statistics 
Co-financing of equipment and TA 
Co-financing of TA 
Public administration/local government 
Common coordinator (FSLD) 
Co-financing and coordination 
Complement to sector programme 
Joint planning of key components 
Joint pinning and cooperation WB WHO (+DK) 
WB WHO 
WB(+ various G-24) 
UK/WB 
WB 
A UK 
ILO 
WB 
WB 
G-24 
G-24 
EFTA 
WB F 
F 
UK F US C 
OECD/G-24 
WB 
UK 
WB EBRD F 
-^f_ TABLE 9 continued 
Enterprise Restructuring / SME 
BLG 
HUN 
HUN 
HUN 
POL 
POL 
POL 
ROM 91 
90 + 91 
91 
90 + 91 
90 + 91 
90 + 91 
90 
91 20 
28.5 
5 
45 
27 
50 
2 
4.9 Joint strategy/implementation 
Co-financing of TA * 
(SME) Co-financing of Local Enterprise 
Agencies 
(Investment promotion) joint preparation 
(Restructuring) co-financing of TA 
(SME) Joint operations (Chambers of 
Commerce) Sharing PMU facilities 
(Restruct.) Joint strategy/Implementation 
(Equity finance) Joint project 
Co-financing WB (+EBRD) 
NL 
A F IT T SF 
UK / WB 
IR CA 
WB CA F UK US 
F UK IR 
WB 
WB EBRD FR UK 
EIB 
WB 
Infrastructure 
BLG 
POL 91 
91 Energy 
2 Co-financing studies 
3 Co-financing central TA team US 
US UK WB (ESMAP) 
»0M 91 Transport 
Co-financing joint strategy WB 
BUL 91 
POL 91 Telecommunicat ions 
3 Joint planning 
5 Joint planning EIB(lead) EBRD WB 
EIB WB 
REG 
REG 
/CZ 91 
90 - 91 Nuclear Safety 
11.5 Joint strategy 
5 Joint strategy WANO/IAEA (• G24) 
WANO/IAEA (+ G24) 

~^«-
ISSN 0254-1475 
COM(93) 172 final 
DOCUMENTS 
EN H 
Catalogue number : CB-CO-93-196-EN-C 
ISBN 92-77-55051-1 
Office for Official Publications of the European Communities 
L-2985 Luxembourg