NoC38/18 OfficialJournaloftheEuropeanCommunities 12.2.93
II
(PreparatoryActs)
COMMISSION
ProposalforaCouncilRegulation(EEC)establishingacohesionfinancialinstrument
(93/C38/14)
COM(92)599final
(SubmittedbytheCommissionon5January1993)
THECOUNCILOFTHEEUROPEAN COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
EconomicCommunity,andinparticularArticle235
thereof,
HavingregardtotheproposalfromtheCommission ,
HavingregardtotheopinionoftheEuropean
Parliament,
HavingregardtotheopinionoftheEconomicand
SocialCommittee,
WhereasArticle130aoftheTreatyprovidesforthe
Communitytodevelopandpursueitsactionsleadingto
thestrengtheningofitseconomicandsocialcohesion
andinparticularforittoaimatreducingdisparities
betweenthevariousregionsandthebackwardnessofthe
least-favouredregions;
Whereaspromotingeconomicandsocialcohesioncalls
forCommunityactiontosupplementtheactivitiesofthe
StructuralFunds,theEuropeanInvestmentBank(EIB)
andotherfinancialinstrumentsinthefieldsofthe
environmentandoftransportinfrastructureofcommon
interest;
WhereastheEuropeanCouncil,atitsmeetingin
Edinburghon11and12December1992,proposed
creatinganinterimfinancialinstrumentpendingthe
establishmentofacohesionfund;
Whereas,givenTheconclusionsoftheEuropeanCouncil
andgiventheimpossibilityofimplementing ,onthebasis
ofArticle235oftheEECTreaty,thesetofconditions
whicharelinkedtoArticle104cofthedraftTreatyon
EuropeanUnion,thefinancialinstrumentshouldbeofa
temporarynature;whereasitshouldbereplacedassoon
aspossiblebythecohesionfundasenvisagedinArticle
130dofthedraftTreatyandshouldinanyeventbe
reexaminedbefore31December1993inthelightofthe
processofratifyingthedraftTreaty;Whereasthefinancialresourcesofthefinancial
instrumentshouldbethoseprovidedforthecohesion
fundinthefinancialperspectivesforthegeneralbudget
oftheEuropeanCommunitiesfortheyearsforwhich
thefinancialinstrumentapplies;
Whereasthepromotionofeconomicandsocialcohesion
callsforaconcentration ofthefundsavailabletothe
cohesionfinancialinstrumentonprojectsconcerningthe
environmentandtransportinfrastructure ofcommon
interestinMemberStateswithapercapitaGNPofless
than90%oftheCommunityaverage;
Whereastheimplementation ofconvergence
programmesdesignedtoavoidexcessivegovernment
deficitsisanecessaryconditionforprogresstowards
economicandmonetaryunion;
WhereasTitleIVofPartTwooftheTreatyprovides
thattheCouncilshalllaydownanyappropriate
provisionstoimplementacommontransportpolicy;
whereastheCommunityshouldmakeacontribution ,
throughthecohesionfinancialinstrument,totrans­
Europeannetworksintheareaoftransportinfra­
structure ;
WhereasArticle130roftheTreatydefinesthe
objectivesoftheCommunityinthefieldofthe
environment ;whereastheCommunityshouldcontribute,
throughthecohesionfinancialinstrument,toaction
designedtoachievetheseobjectivesinaccordancewith
Article130softheTreaty;
Whereas,inthelightofanundertakingbytheMember
Statesconcernednottodecreasetheirinvestmentefforts
inthefieldsofenvironmental protectionandtransport
infrastructure ,additionalityinthesenseofArticle9of
CouncilRegulation(EEC)No4253/88of19December
1988layingdownprovisionsforimplementing Regu­
lation(EEC)No2052/88asregardscoordinationofthe
activitiesofthedifferentStructuralFundsbetweenthem­
selvesandwiththeoperationsoftheEuropean
InvestmentBankandotherexistingfinancial

12.2.93 OfficialJournaloftheEuropeanCommunities NoC38/19
Treaty,includingprojectsresultingfrommeasures
adoptedpursuanttoArticle130softheTreaty,
—transportinfrastructureprojectsofcommoninterest
financedbyMemberStateswhichpromotetheinter­
connectionandinteroperability ofnationalnetworks
andaccesstosuchnetworks,takingaccountin
particularoftheneedtolinkinsular,landlockedor
peripheralregionswiththecentralregionsofthe
Community,inparticulartheprojectswhichare
providedforintrans-European networkschemes
whichhavebeenadoptedbytheCouncilorproposed
bytheCommissioninaccordancewithTitleIVof
PartTwooftheTreaty,
—preparatorystudiesandtechnicalsupportmeasures
relatedtoeligibleprojects.instruments(')willnotapplytothecohesionfinancial
instrument;
Whereasitisnecessarytocoordinateactiontakeninthe
fieldsoftheenvironmentandoftrans-European
transportnetworksthroughthecohesionfinancial
instrument,theStructuralFunds,theEuropean
InvestmentBankandtheotherfinancialinstrumentsin
ordertoenhancetheeffectivenessofCommunity
operations;
Whereas,withaviewtohelpingMemberStatesinthe
preparationofprojects,theCommissionshouldbeina
positiontosupplythenecessarytechnicalsupport;
Whereastheoperationsofthecohesionfinancial
instrumentmustbeconsistentwithCommunitypolicies,
interalia,thoseregardingenvironmental protection,
transport,competitionandtheawardofpubliccontracts;
Whereasanindicativeallocationofcommitmentappro­
priationsbetweentheMemberStatesshouldbeprovided
forinordertofacilitatetheprogrammingofprojects;
Whereasitisnecessary,giventherequirements of
economicandsocialcohesion,toprovideahighrateof
assistance;
Whereas,intheinterestsofthepropermanagementof
thecohesionfinancialinstrument,theprovisions
containedinTitlesVIandVIIofRegulation(EEC)No
4253/88shouldbeappliedwhereappropriateandby
analogy;
Whereasprovisionshouldbemadetogiveadequate
publicitytoCommunityassistanceprovidedbythe
cohesionfinancialinstrument;
Whereas,fortheadoptionofthisRegulation,theTreaty
providesfornootherpowersthanthosecontainedin
Article235,Article3
Financialresources
Thecommitmentappropriations forthefinancial
instrumentshallbeECU1500millionin1993andECU
1750millionin1994,expressedin1992prices.
Article4
Indicativeallocation
Inordertofacilitatetheplanningofassistanceinthe
MemberStatesconcernedtheCommission shallonthe
basisofanindicativeallocationofthetotalresourcesof
thefinancialinstrument,establishthecommitment
appropriations foreachMemberState.Theindicative
allocationshallprincipallybebasedonpopulation,GNP
percapitaandsurfacearea;itshallalsotakeaccountof
othersocio-economic factors,suchasdeficienciesin
transportinfrastructure .
HASADOPTEDTHISREGULATION :
Article1
DefinitionandscopeArticle5
Rateofassistance
1.Therateofassistancegrantedbythefinancial
instrumentshallbe80to85%ofpublicorsimilar
expenditureasdefinedforthepurposesoftheStructural
Funds.
2.Preliminarystudiesandtechnicalsupportmeasures
necessaryfortheimplementation ofeligibleprojectsmay
befinancedat100%.Acohesionfinancialinstrument(hereinafterreferredto
as'thefinancialinstrument')isherebyestablished,
wherebytheCommunityshallprovidefinancialcontri­
butionstoprojectsinthefieldsoftheenvironmentand
trans-European transportinfrastructure networksin
Greece,Spain,IrelandandPortugal,eachofwhichshall
haveaconvergenceprogrammeexaminedbythe
Council,designedtoavoidanexcessivegovernmeni
deficit.
Article6Article2
Eligibleproject!
Thefinancialinstrumentmayprovidesupportfor:
—environmental projectscontributing tothf
achievementoftheobjectivesofArticle130rofthtCoordinationandcompatibilitywithCommunitypolicies
1.Projectsfinancedbythefinancialinstrumentshal
beinkeepingwiththeprovisionsoftheTreaties,wit!
theinstrumentsadoptedpursuanttheretoandwith
Communitypolicies,includingthoseconcerningenviron­
mentalprotection,transport,competitionandtheaware
ofpubliccontracts. (')OJNoL374,31.12.1988,p.1

NoC38/20 OfficialJournaloftheEuropeanCommunities 12.2.93
2.TheCommission shallensurecoordination and
coherencebetweenprojectsundertakeninpursuanceof
thisRegulationandmeasuresundertakenwithcontri­
butionsfromtheCommunitybudget,theEIBandthe
otherfinancialinstrumentsoftheCommunity .
Article7
Combinationandoverlapping
1.Noitemofexpendituremaybenefitbothfromthe
financialinstrumentandfromtheEuropeanAgricultural
GuidanceandGuaranteeFund,theEuropeanSocial
FundortheEuropeanRegionalDevelopmentFund.
2.WhereaprojectbenefitsfromotherCommunity
assistance,thecombinedassistancegrantedbythe
Communityshallnotexceed90%oftotalexpenditure—thecontributionwhichprojectscanmaketothe
implementation ofCommunitypoliciesonthe
environmentandtrans-Europeannetworks,
—thecompatibilityofprojectswithCommunitypolicies
andtheirconsistencywithotherCommunity
structuralmeasures .
6.Subjecttotheavailabilityofcommitmentappropri­
ations,theCommissionshalldecideonassistancefrom
thefinancialinstrumentgenerallywithinthreemonthsof
receiptofanapplication .Commission decisions
approvingprojectsorgroupsofrelatedprojectsshall
determinetheamountoffinancialsupport,afinancing
planandalltheprovisionsandconditionsnecessaryfor
therealizationoftheprojects.
7.TheCommissiondecisionsshallbepublishedinthe
OfficialJournaloftheEuropeanCommunities .
Article8
ApprovalofprojectsArticle9
Financialprovisions,monitoringandassessment
InimplementingthisRegulation,theCommissionshall
whereappropriateandbyanalogyapplytherelevant
provisionsofTitlesVIandVIIofRegulation(EEC)No
4253/88.
Article10
Informationandpublicity
1.TheCommissionshallpresentanannualreporton
theactivitiesofthefinancialinstrumenttotheCouncil,
theEuropeanParliamentandtheEconomicandSocial
Committee .
2.MemberStatesshallensurethatadequatepublicity
isgiventotheoperationsofthefinancialinstrumentwith
aviewtomakingthegeneralpublicawareoftherole
playedbytheCommunityinrelationtoprojects.They
shallconsulttheCommissionon,andinformitabout,
theinitiativestakenforthispurpose.1.Theprojectstobefinancedunderthefinancial
instrumentshallbedecideduponbytheCommissionin
agreementwiththeMemberStateconcerned .
2.TheMemberStatesconcernedandtheCommission
shallensureanappropriatebalancebetweenprojectsin
thefieldsoftheenvironmentandtransportinfra­
structure .
3.Applicationsforassistanceinaccordancewith
Article2shallbesubmittedbytheMemberState
concerned .Projects,includinggroupsofrelatedprojects,
shallbeofasufficientscaletohaveasignificantimpact
inthefieldofenvironmental protectionorinthe
improvementoftrans-European transportinfrastructure
networks .
4.Applicationsshallcontainthefollowinginfor­
mation:thebodyresponsibleforimplementation ,the
natureoftheinvestment,itslocationandcosts,the
timetableforimplementation ,thefinancingplanandthe
totalfinancingtheMemberStateisseekingunderthe
financialinstrumentandanyotherCommunitysource.
Theyshallalsocontainanyinformationnecessaryto
showthattheprojectsareinaccordancewiththis
Regulation .
5.Thefollowingcriteriashallbeemployedtoensure
thequalityoftheprojects:
—theirmedium-term economicandsocialbenefits,an
assessmentwhichshallbecommensurate withthe
resourcesdeployed;thisshallbemadeinthelightof
ananalysisofcostsandbenefits,
—theprioritiesestablishedbythebeneficiaryMember
States,Article11
Review
ThisRegulationshallbere-examinedbefore31
December1993.
Article12
Entryintoforce
ThisRegulationshallenterintoforceon1April1993.
Itshallremaininforcefortwoyears.
ThisRegulationshallbebindinginitsentiretyand
directlyapplicableinallMemberStates.