EXPLANATORY MEMORANDUM

As part of the European Neighbourhood Policy, the gradual opening-up of certain Union programmes and agencies to the participation of European Neighbourhood Policy partner countries represents one of many measures to promote reform, modernisation and transition in the European Union’s neighbourhood. The Commission outlined this policy aspect more extensively in its Communication of December 2006 “on the general approach to enable European Neighbourhood Policy partner countries to participate in Community agencies and Community programmes”[1].

The Council endorsed this approach on 5 March 2007[2].

Based upon this Communication and those conclusions, the Council, on 18 June 2007, issued directives to the Commission to negotiate Framework Agreements with Algeria, Armenia, Azerbaijan, Egypt, Georgia, Israel, Jordan, Lebanon, Moldova, Morocco, the Palestinian Authority, Tunisia and Ukraine, on the general principles for their participation in Community programmes[3].

The June 2007 European Council[4] reaffirmed the paramount importance of the European Neighbourhood Policy and endorsed a Presidency Progress Report[5] that had been submitted to the General Affairs and External Relations Council (GAERC) meeting on 18/19 June as well as the related Council Conclusions[6]. This report recalled the Council directives to negotiate relevant additional protocols.

The Joint Communication by the Commission and the High Representative of the European Union for Foreign Affairs and Security Policy “A new response to a changing Neighbourhood”[7], endorsed by Council Conclusions on 20 June 2011, further stressed the EU’s intention to facilitate partner countries’ participation in EU programmes.

To date, Protocols were signed with Israel[8], Morocco[9], Moldova[10] and Ukraine[11]. A Protocol has also been negotiated, but not yet signed, with Jordan.

In April 2012, Armenia expressed its interest to participate in the broad range of programmes open to partner countries of the European Neighbourhood Policy. The text of the Protocol negotiated with Armenia is attached.

The Commission herewith submits a proposal for a Council Decision on the signing of the Protocol. This Protocol contains a Framework Agreement on the general principles for the participation of Armenia in Union programmes. It contains standard stipulations that are intended to be applied to all European Neighbourhood Policy partner countries with which such protocols are to be concluded.

In parallel, the Commission submits a proposal for a Council Decision on the conclusion of the said Protocol.

The Council is invited to adopt the following proposed Decision.

2012/0246 (NLE)

Proposal for a

COUNCIL DECISION

on the signature, on behalf of the Union, of a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Armenia, of the other part, on a Framework Agreement between the European Union and the Republic of Armenia on the general principles for the participation of the Republic of Armenia in Union programmes

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 114, 168, 169 and 172, Article 173(3), and Articles 188 and 192, in conjunction with Article 218(5)thereof

Having regard to the proposal from the European Commission,

Whereas:

(1) On 18 June 2007 the Council authorised the Commission to negotiate a Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part[12], and the Republic of Armenia, of the other part, on a Framework Agreement between the European Union and the Republic of Armenia on the general principles for the participation of Republic of Armenia in Union programmes ("the Protocol"),

(2) The negotiations have been concluded.

(3) The Protocol should be signed on behalf of the Union, subject to its conclusion.

HAS ADOPTED THIS DECISION:

Article 1

The signing of the Protocol to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Armenia, of the other part, on a Framework Agreement between the European Union and the the Republic of Armenia on the general principles for the participation of the Republic of Armenia in Union programmes (hereinafter referred to as “the Protocol”) is hereby authorised on behalf of the Union, subject to its conclusion.

The text of the Protocol to be signed is attached to this Decision.

Article 2

The President of the Council is hereby authorised to designate the person(s) empowered to sign the Protocol on behalf of the Union.

Article 3

This Decision shall enter into force on the day of its adoption.

Done at,

For the Council

The President

PROTOCOL

to the Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and the Republic of Armenia, of the other part, on a Framework Agreement between the European Union and the Republic of Armenia on the general principles for the participation of the Republic of Armenia in Union programmes

THE EUROPEAN UNION, hereinafter referred to as “the Union”,

of the one part,

and

The Republic of Armenia, hereinafter referred to as “Armenia”

of the other part,

hereinafter referred to as “the Parties”

Whereas:

(1) Armenia has concluded a Partnership and Cooperation Agreement between the European Communities and their Member States, of the one part, and Armenia, of the other part, (hereinafter referred to as “the Agreement”), which entered into force on 1 July1999.

(2) The Brussels European Council of 17 and 18 June 2004 welcomed the European Commission’s proposals for a European Neighbourhood Policy (ENP) and endorsed the Council conclusions of 14 June 2004.

(3) The Council has, on numerous further occasions, repeatedly concluded in favour of this policy.

(4) The Council, on 5 March 2007, expressed support for the general and global approach outlined in the European Commission’s Communication of 4 December 2006 to enable European Neighbourhood Policy partners to participate in Community agencies and Community programmes on their merits and where the legal bases so allow.

(5) Armenia has expressed its wish to participate in a number of Union programmes.

(6) The specific terms and conditions, in particular, the financial contribution and reporting and evaluation procedures, regarding the participation of Armenia in each particular programme should be determined in a Memorandum of Understanding between the European Commission and the competent authorities of Armenia,

HAVE AGREED AS FOLLOWS:

Article 1

Armenia shall be allowed to participate in all current and future programmes of the Union opened to the participation of Armenia in accordance with the relevant provisions adopting these programmes.

Article 2

Armenia shall contribute financially to the general budget of the European Union corresponding to the specific programmes in which Armenia participates.

Article 3

The representatives of Armenia shall be allowed to take part, as observers and for the points which concern Armenia, in the management committees responsible for monitoring the programmes to which Armenia contributes financially.

Article 4

Projects and initiatives submitted by participants from Armenia shall, as far as possible, be subject to the same conditions, rules and procedures pertaining to the programmes concerned as applied to Member States.

Article 5

The specific terms and conditions regarding the participation of Armenia in each particular programme, in particular the financial contribution payable and reporting and evaluation procedures, shall be determined in a Memorandum of Understanding between the European Commission and the competent authorities of Armenia on the basis of the criteria established by the programmes concerned.

If Armenia applies for external assistance of the Union to participate in a given Union programme on the basis of Article 3 of Regulation (EC) No 1638/2006 of the European Parliament and of the Council of 24 October 2006 laying down general provisions establishing a European Neighbourhood and Partnership Instrument or pursuant to any similar Regulation providing for external assistance of the Union to Armenia that may be adopted in the future, the conditions governing the use by Armenia of external assistance of the Union shall be determined in a financing agreement, respecting in particular Article 20 of Regulation (EC) No 1638/2006.

Article 6

Each Memorandum of Understanding concluded pursuant to Article 5, shall stipulate, in accordance with the Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities, that financial control or audits or other verifications, including administrative investigations will be carried out by, or under the authority of, the European Commission, the European Anti-Fraud Office and the Court of Auditors.

Detailed provisions shall be made on financial control and auditing, administrative measures, penalties and recovery enabling the European Commission, the European Anti-Fraud Office, and the Court of Auditors to be granted powers equivalent to their powers with regard to beneficiaries or contractors established in the Union.

Article 7

This Protocol shall apply for the period for which the Agreement is in force.

This Protocol shall be signed and approved by the Parties in accordance with their respective procedures.

Either Party may denounce this Protocol by written notification to the other Contracting Party.

This Protocol shall terminate six months after the date of such notification.

Termination of the Protocol following denunciation by any of the Parties shall have no influence on the checks and controls to be carried out under the provisions laid down as provided in Articles 5 and 6 where appropriate.

Article 8

No later than three years after the date of entry into force of this Protocol, and every three years thereafter, both Parties may review the implementation of this Protocol on the basis of the actual participation of Armenia in Union programmes.

Article 9

This Protocol shall apply, on the one hand, to the territories in which the Treaty on the Functioning of the European Union applies and under the conditions laid down in this Treaty, and, on the other hand, to the territory of Armenia.

Article 10

This Protocol shall enter into force on the first day of the month following the date on which the Parties notify each other through diplomatic channels of the completion of their procedures necessary for its entry into force.

Article 11

This Protocol shall form an integral part of the Agreement.

Article 12

This Protocol shall be drawn up in duplicate in the Bulgarian, Czech, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish, Swedish and Armenian languages, each of these texts being equally authentic.

Done at Brussels,

For the European Union For the Republic of Armenia

[1] COM (2006) 724 final of 4 December 2006;

[2] GAERC conclusions of 5 March 2007;

[3] Council Decision (restricted) authorising the Commission to negotiate Protocols […], Doc 10412/07;

[4] Presidency Conclusions – Brussels, 21/22 June 2007, Doc 11177/07;

[5] Presidency Progress Report on “Strengthening the European Neighbourhood Policy”, Doc 10874/07;

[6] Conclusions on Strengthening the European Neighbourhood Policy, adopted by the Council (General Affairs and External Relations) on 18 June 2007, Doc 11016/07;

[7] COM (2011) 303 final of 25 May 2011;

[8] OJEU L129/39 of 17.5.2008;

[9] OJEU L273/1 of 19.10.2010;

[10] OJEU L14/5 of 19.01.2011, OJEU L131/1 of 18.05.2011, entry into force on 01.05.2011;

[11] OJEU L18/1-5 of 21.01.2011, OJEU L133/1 of 20.05.2011.

[12] OJEU L129, 15.5.2002, p.3.