No C 99/2 Official  Journal  of the  European  Communities 22. 4. 77 
II 
(Preparatory  Acts) 
COMMISSION 
Proposal  for  a Council  Regulation  on the  application  of the  provisions  of Protocol 
No 1 to the  Cooperation  Agreements  concluded  with  Algeria,  Morocco  and  Tunisia 
(Submitted  by the Commission  to the Council  on 31 March  1977) 
THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  209  thereof, 
Having  regard  to the proposal  from  the Commission, 
Having  regard  to the  opinion  of the  European 
Parliament, 
Whereas  Protocol  No  1 to  the  Cooperation 
Agreements  with  Algeria,  Morocco  and  Tunisia, 
hereinafter  called  the  'Agreements',  fixed  the 
aggregate  amount  of Community  aid  to  those 
countries  at 114  million,  130  million  and  95 million 
units  of account  respectively,  comprising  116  million 
units  of account  in the  form  of loans  on special 
terms,  56 million  units  of account  in the  form  of 
grants  and  167  million  units  of account  in the form 
of loans  accorded  by the EIB  from  its own  resources; 
Whereas  the unit  of account  applicable  in the context 
of the  Agreements  was  defined  in a declaration 
included  in the Final  Act of the said  Agreements; 
Whereas  the detailed  rules  for the administration  of 
the aid not covered  by the bank's  own  resources  must 
be laid  down; 
Whereas  the  rules  for the  management  of financial 
and technical  cooperation  should  be determined,  the 
procedure  for laying  down  guidelines  for examining 
and approving  aid should  be decided  and  the detailed 
rules  for  supervising  the  use  of that  aid  should  be 
defined; Whereas  a Committee  of representatives  of the 
Member  States  should  be set up under  the auspices  of 
the Commission; 
Whereas  it should  be  stipulated  that  the  draft 
financing  proposals  drawn  up  by  the  bank  for 
operations  not covered  from  its own  resources  should 
be submitted  for  opinion  to  a committee  of 
representatives  of the  Governments  of the  Member 
States; 
Whereas  the work  done  by the Commission  and  the 
bank  to apply  the Agreements  should  be harmonized; 
whereas  it is therefore  desirable  that,  as far  as 
possible,  the  composition  of the  committees  set up 
under  the  auspices  of the  Commission  and  of the 
bank  should  be identical; 
Whereas  the  Council  adopted  on \6 July  1974  a 
resolution  on the harmonization  and  coordination  of 
Member  States'  cooperation  policies, 
HAS  ADOPTED  THIS  REGULATION: 
Article  1 
In putting  into  operation  the aid to Algeria,  Morocco 
and Tunisia,  the Commission  shall  be responsible  for 
implementing  the aid policy  defined  by the Council 
and the general  guidelines  for financial  and  technical 
cooperation  defined  by the  Cooperation  Councils 
pursuant  to Article  5 of the Agreements  and  Articles 
9 and  16 of Protocol  No 1 thereto. 
22. 4. 77 Official  Journal  of the  European  Communities No C 99/3 
Article  2 
1. The  appropriations  for the financing  of aid not 
covered  from  the  bank's  own  resources  shall  be 
administered  by the Commission,  in accordance  with 
the Financial  Regulation  of 25 April  1973  applicable 
to the general  budget  of the Communities. 
2. The  Commission  shall  itself  administer  the 
special  loans  for  rural  development  and  social 
infrastructure,  and  the grants  for technical  assistance 
programmes  or schemes  in whatever  sector. 
A general  mandate  will  be given  to the bank  by the 
Commission  in the  name  of the  Community,  to 
administer  the interest  rate  subsidies  for loans  from 
its own  resources,  the  special  loans  and  the  risk 
capital  operations  in the  industrial,  energy,  mining, 
tourism  and  economic  infrastructure  sectors. 
3. Operations  covered  by the mandate  established 
pursuant  to paragraph  2 shall  be undertaken  by the 
bank  on behalf  and  at the  risk  of the  Community. 
The bank  shall  act in accordance  with  the procedures 
laid down  by its statute,  subject  to Articles  9 and  10 
of this  Regulation. 
The special  conditions  of the  mandate,  and  in 
particular  the  provisions  concerning  movements  of 
funds  and  the  remuneration  for  executing  the 
mandate,  shall  be  the  subject  of an  agreement 
between  the Commission  and  the bank. 
4. The  limit  to the sums  which  may  be committed 
by the  bank  in any  year  in executing  the  mandate 
shall  be fixed  annually.  This  limit  may  be reviewed 
during  the year  in question. 
Article  3 
The unit  of account  used  for applying  the Regulation 
shall  be that  defined  in the  declaration  by  the 
European  Economic  Community  relating  to Article  2 
of Protocol  No 1 and included  in the Final  Act  signed 
at the same  time  as each  of the Agreements. 
Article  4 
The Commission  shall  provide  the  Member  States 
with  information  obtained  from  Algeria,  Morocco 
and Tunisia  as regards  the content  and  prospects  of 
their  development  plans,  the objectives  they  have  set 
themselves  and  projects  already  identified  which  are 
likely  to attain  these  objectives. The Commission  shall  compile  this  information  in 
collaboration  with  the bank. 
Member  States  shall  at the  same  time  inform  the 
Commission  of any  bilateral  aid they  have  granted  or 
intend  to grant. 
Furthermore,  the  Commission  shall  forward  to the 
Committee  referred  to in Article  6 all available  in-
formation  on any  other  bilateral  or multilateral  aid 
granted  or  envisaged  for  Algeria,  Morocco  or 
Tunisia. 
To this  end,  and  in order  to keep  Member  States 
informed,  the Commission  shall  obtain  all relevant 
information  on aid  to the  States  concerned  which 
Member  States,  international  institutions  and  other 
aid donors  have  granted  or intend  to grant. 
Article  5 
The position  to be taken  by the Community  with  a 
view  to  defining  aid  guidelines  within  the 
Cooperation  Council  shall  be adopted  by the Council 
on a proposal  from  the  Commission  drawn  up in 
close  cooperation  with  the  bank.  In the  event  of 
disagreement,  the bank  shall  state  its position  in the 
Council. 
Article  6 
1. A  Committee  (hereinafter  called  the  'Article  6 
Committee'),  consisting  of representatives  of the 
Member  States,  shall  be set up under  auspices  of the 
Commission. 
The Article  6 Committee  shall  be chaired  by a 
representative  of the Commission;  its secretariat  shall 
be provided  by the Commission. 
A representative  of the  bank  shall  take  part  in its 
work. 
2. The  Council,  acting  unanimously,  shall  adopt 
the Rules  of Procedure  of the Article  6 Committee  (1). 
3. Within  the Article  6 Committee,  the votes  of the 
Member  States  shall  be weighted  in accordance  with 
Article  148  (2) of the Treaty. 
The Article  6 Committee  shall  act by a majority  of 41 
votes. 
Article  7 
1. The  Article  6 Committee  shall  give  its opinion 
on draft  financing  proposals  for  projects  or 
programmes  submitted  to it by the Commission. 
(*) The  Rules  of Procedure  would  make  provision  for the 
Committee  to be consulted  by written  procedure. 
No C 99/4 Official  Journal  of the  European  Communities 22. 4, 77 
2. The  draft  financing  proposals  for  these  projects 
shall  explain  the  relevance  of the  projects  to the 
development  prospects  of the  country  or countries 
concerned;  where  appropriate,  they  shall  mention  the 
use to  which  such  countries  have  put  previous 
Community  aid. 
They  shall  include  in particular  measures  promoting, 
in accordance  with  Article  12 of Protocol  No  1 to the 
Agreements,  participation  by  national  firms  of 
Algeria,  Morocco  and  Tunisia,  in carrying  out  the 
projects. 
The Committee's  assessment  shall  cover  the 
conformity  of  the  projects  with  Community 
development  aid  policy,  with  the  objectives  of 
financial  and  technical  cooperation  laid  down  in the 
Agreements  and  with  the  general  guidelines  adopted 
by the  Cooperation  Councils. 
Article  8 
The draft  financing  proposals  referred  to in Article  7, 
together  with  the  opinion  of the  Article  6 Committee, 
shall  be submitted  to the Commission  for  its decision. 
If the  Commission  decides  to differ  from  the  opinion 
expressed  by the  Committee,  or if the  Committee  has 
not delivered  a favourable  opinion,  it shall  either 
withdraw  the  financing  proposal  or,  at the  earliest 
opportunity,  refer  the proposal  to the  Council  which 
shall  decide  on it by a qualified  majority. 
Article  9 
1. The  draft  financing  proposals  drawn  up by the 
bank,  in implementation  of the  general  mandate 
referred  to in Article  2 (2),  shall  be submitted  for  an 
opinion  to a committee  consisting  of representatives 
of the  Member  States,  herinafter  called  the  'Article  9 
Committee'. 
The Article  9 Committee  shall  be chaired  by  the 
representative  of  the  Member  State  currently 
assuming  the  Presidency  of the  Board  of Governors 
of the  bank;  its secretariat  shall  be provided  by the 
bank. 
A representative  of the  Commission  shall  take  part  in 
its work.  He  shall  express  the  Commission's  opinion 
on the  financing  proposals  submitted  by the bank. 
The assessment  by  the  Committee  and  the 
Commission  shall  cover  the  conformity  of  the 
projects  with  Community  development  aid  policy, 
with  the  objectives  of  financial  and  technical 
cooperation  laid  down  by the  Agreements  and  with the general  guidelines  adopted  by the  Cooperation 
Councils. 
In addition,  this  Committee  shall  be informed  by the 
bank  of any  loans  without  interest  rate  subsidies  that 
it intends  to grant. 
2. The  Council,  acting  unanimously,  shall  adopt 
the Rules  of Procedure  of the  Article  9 Committee  (*). 
3. Within  the  Article  9 Committee,  the  votes  of the 
Member  States  shall  be weighted  in accordance  with 
Article  148  (2) of the  Treaty. 
4. The  Article  9 Committee  shall  act by a majority 
of 41 votes. 
Article  10 
1. The  document  in which  the  bank  submits  draft 
financing  proposals  to the  Article  9 Committee  shall, 
in particular,  explain  the  relevance  of the  projects  to 
the development  prospects  of  the  country  or 
countries  concerned  and,  where  appropriate,  indicate 
the situation  as  regards  loans  granted  by  the 
Community. 
2. Where  the  Article  9 Committee  and  the 
Commission  deliver  a favourable  opinion  in respect 
of a request  for  a loan  with  an interest  rate  subsidy, 
the request  shall  be submitted  for  a decision  to the 
Board  of Directors  of the  bank,  which  shall  act  in 
accordance  with  the  provisions  of the  bank's  statute. 
In the  absence  of a favourable  opinion  from  the 
Article  9 Committee  or in the event  of a unfavourable 
opinion  from  the  Commission,  the  bank  shall  either 
withdraw  the  application  or request  that  the  Member 
State  taking  the  chair  of the  Article  9 Committee 
bring,  the  matter  before  the  Council  as soon  as 
possible  (2). 
3. Where,  in respect  of a draft  financing  proposal 
by special  loan  or  risk  capital,  the  Article  9 
Committee  and  the  Commission  deliver  a favourable 
opinion,  the  proposal  shall  be  submitted  for  a 
(J) The  Rules  of Procedure  would  make  provision  for the 
Committee  to be consulted  by written  procedure. 
(2) The  EIB  wishes  to replace  this  subparagraph  by the 
following: 
'In the  absence  of a favourable  opinion  from  the 
Article  9 Committee  or in the event  of an unfavourable 
opinion  from  the  Commission,  the  bank  shall  either 
withdraw  the  request  or decide  to uphold  it. In the 
latter  event,  this  request,  together  with  the  reasoned 
opinion  of the  Committee  and  the  opinion  of the 
Commission,  shall  be submitted  for a decision  to the 
Board  of Directors  of the  bank,  which  shall  act  in 
accordance  with  the provisions  of the  bank's  statute.' 
22. 4. 77 Official  Journal  of the  European  Communities No C 99/5 
decision  to the Board  of Directors  of the bank,  which 
shall  act  in accordance  with  the  provisions  of the 
bank's  statute. 
In the  absence  of a favourable  opinion  from  the 
Article  9 Committee  or  in  the  event  of  an 
unfavourable  opinion  from  the  Commission,  the 
bank  shall  either  withdraw  the  proposal  or request 
that the Member  State  taking  the chair  of the Article 
9 Committee  bring  the matter  before  the Council  as 
soon  as possible. 
4. Where,  in the  absence  of a favourable  opinion 
from  the Article  9 Committee  or in the  event  of an 
unfavourable  opinion  from  the  Commission,  the 
matter  is brought  before  the Council  in accordance 
with  paragraphs  2 and  3, the  bank's  request  or 
proposal  shall  be submitted  to the  Council  together 
with  the  reasoned  opinions  of  the  Article  9 
Committee  and  the Commission  (1). 
The Council  shall  take  its decision  by a qualified 
majority. 
If the  Council  decides  to confirm  the position  taken 
by the Article  9 Committee  and  by the Commission, 
the bank  shall  withdraw  its proposal. 
If, however,  the  Council  is in agreement  with  the 
bank's  proposal,  the  bank  shall  implement  the 
procedures  under  its statute. 
(') Wording  requested  by the EIB  in order  to take  account 
of its position  regarding  paragraph  2: 
'In the latter  event,  the bank's  proposal  shall  be sub-
mitted  to the  Council  together  with  the  reasoned 
opinions  of the  Article  9 Committee  and  the  Com-
mission.' Article  11 
1. The  Commission  shall  ascertain  how  the 
Community  aid administered  by it is used  by Algeria, 
Morocco  and  Tunisia  or by any  other  recipients. 
2. It  shall  also  ascertain,  in close  collaboration 
with  the  relevant  authorities  of the  country  or 
countries  concerned,  how  projects  financed  with 
Community  aid are used  by the recipients. 
3. When  ascertaining  how  Community  aid  and 
projects  are  used,  as provided  for  in paragraphs  1 
and 2, the Commission  shall  examine  jointly  with  the 
bank  the  extent  to which  the  objectives  defined 
pursuant  to Article  5 of the Agreements  and  Articles 
9 and  16  of Protocol  No  1 thereto  have  been 
attained. 
4. The  Commission  shall  inform  the  Council  at 
least  once  a year  of  its  findings  pursuant  to 
paragraphs  1, 2 and  3. 
Article  12 
This  Regulation  shall  apply  for  the  same  period  as 
Protocol  No 1 to the Agreements. 
This  Regulation  shall  be binding  in its entirety  and 
directly  applicable  in all Member  States. 
Proposal  for  a Council  Regulation  (EEC,  ECSC,  Euratom)  introducing  the  European 
Unit  of Account  (EUA)  into  the  Staff  Regulations  of Officials  and  the  Conditions  of 
Employment  of Other  Servants  of the  European  Communities,  and  into  other  Council 
Regulations  applying  to officials  and  former  officials  and  to other  servants  of the 
Communities 
(Submitted  by  the Commission  to  the Council  on 1 April  1977) 
THE  COUNCIL  OF THE  EUROPEAN  COMMUNITIES, 
Having  regard  to the  Treaty  establishing  a Single 
Council  and  a Single  Commission  of the  European 
Communities,  and  in particular  Article  24 thereof, 
Having  regard  to the proposal  from  the Commission, 
made  after  consulting  the  Staff  Regulations 
Committee, Having  regard  to the  opinion  of the  European 
Parliament, 
Having  regard  to the opinion  of the Court  of Justice, 
Whereas  Articles  2 and  3 of Council  Regulation 
(EEC,  Euratom,  ECSC)  No  259/68  of 29 February 
1968  (*), as last  amended  by Regulation  (Euratom, 
(') OJ No L 56, 4. 3. 1968,  p. 1.