Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL On aid for poverty diseases (HIV/AIDS, Malaria, Tuberculosis) in developing countries (presented by the Commission pursuant to Article 250 (2) of the EC Treaty)

2002/0051 (COD)

Amended proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL On aid for poverty diseases (HIV/AIDS, Malaria, Tuberculosis) in developing countries

1. BACKGROUND

Transmission of the Proposal to the Council and the European Parliament (COM(2002) 109 final - 2002/0051 (COD)) : // 4 March 2002

Opinion by European Parliament - first reading : // 30 January 2003

2. OBJECTIVE OF THE COMMISSION PROPOSAL

This Proposal aims to replace Council Regulation (EC) No 550/97 (HIV/AIDS- related operations in developing countries) and provides for a more comprehensive package targeting interventions related to development co-operation, trade relations and research for new pharmaceutical products, for the three major communicable diseases: HIV/AIDS, malaria and tuberculosis. The burden of preventable communicable diseases such as HIV/AIDS, malaria and tuberculosis, in developing countries is still very high, resulting in profound human and economic costs. The European Community Programme for Action on accelerated action targeting three major communicable diseases in the context of poverty reduction (COM(2001) 96 final) presents an ambitious policy framework for action which needs substantial additional financial resources to achieve its goals.

The objectives of the activities carried out under this Regulation shall be to:

* Optimise the impact of existing interventions, services and commodities targeted at the major communicable diseases affecting the poorest populations

* Increase affordability of key pharmaceuticals

* Increase the research and development of vaccines, microbicides and innovative treatments for the major communicable diseases.

Compared to the previous regulation, the financial framework for the implementation of this Regulation reflects the considerable increase needed to scale up resources to reduce the burden of the major communicable diseases in developing countries. Community Policy on enhanced co-operation within the EC, and between EC and other donors and international institutions, will be taken into account. Use will be made of the possibility to create new innovative partnerships, and to contribute, where appropriate and duly justified, to regional or global initiatives.

3. COMMISSION OPINION ON THE AMENDMENTS ADOPTED BY THE PARLIAMENT

3.1. Amendments accepted by the Commission

The Commission accepted all the amendments adopted by the Parliament at first reading apart from the financial framework in view of the fact that in most cases they strengthen and clarify the text of the regulation without altering the main objectives. In other cases, the amendments update references made in the Commission proposal and these are welcome.

Concerning the financial framework of the Regulation, the European Parliament adopted an increased financial envelope of EUR351 million for the period 2003-2006, compared to EUR300 million proposed by the Commission. The Commission's recent Annual Policy Strategy (APS) decision (COM(2003) 83 final) defined its 2004 priorities and contributed to prepare the programming of the Financial Perspectives for 2005-2006. The financial framework adopted by the European Parliament for this regulation can be accommodated within Heading 4 of the Financial perspectives and, in particular, within the increased envelope foreseen for ABB Policy Area Development.

The Commission can therefore accept in its entirety Parliament's position at first reading.

3.2. Amended proposal

Having regard to Article 250 (2), of the EC Treaty, the Commission modifies its proposal as indicated above.