Proposal for a Council Regulation (EC) amending Council Regulation (EC) No 1734/94 of 11 July 1994 on financial and technical cooperation with the Occupied Territories (98/C 253/13) COM(1998) 392 final - 98/0220(SYN)

(Submitted by the Commission on 29 June 1998)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130w thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure referred to in Article 189c of the Treaty in cooperation with the European Parliament,

Whereas Council Regulation (EC) No 1734/94 of 11 July 1994 on financial and technical cooperation with the Occupied Territories (1), amended by Regulation (EC) No . . ./. . lays down detailed arrangements and rules for administering the Community programme for aid and assistance to the Palestinian population in the West Bank and Gaza Strip;

Whereas according to that Regulation the Community shall implement financial and technical cooperation with the West Bank and Gaza Strip under a five-year programme; whereas this programme expires by the end of 1998;

Whereas the persistent deadlock in the peace process that prevails is the worst crisis since the Middle East peace process was launched in 1991; whereas international economic assistance has nevertheless succeeded in keeping the peace process alive and providing support for the Palestinian Authority;

Whereas the objective is to prevent any further deterioration of the Palestinian economy by minimising and cancelling out the effects of closures and other obstacles to development as well as to contribute to a sound management and fiscal balance of the Palestinian Authority and to consolidate it by means of institutional reinforcement;

Whereas the ultimate aim is the achievement of sustainable economic and social development and to foster democracy, human rights and the development of the civil society;

Whereas given the present situation the Community should pursue its aid effort; whereas to this end an eight-year period of assistance (1999 to 2006) should be launched and Regulation (EC) No 1734/94 should be amended accordingly; the Regulation should be reviewed by the Council within two years and not later than 31 December 2000 in order to take into account recent development and bring it into line with the reviewed Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership (2).

Whereas 'the Occupied Territories` should be replaced by 'the West Bank and Gaza Strip` throughout the text of Regulation (EC) No 1734/94;

Whereas Article 4 of Regulation (EC) No 1734/94 provides that all financing decisions on projects and operations shall be adopted in accordance with the procedure laid down in Article 5; whereas in order to allow for rapid and flexible reactions and to increase expediency only financing decisions exceeding ECU 2 000 000 other than those relating to interest-rate subsidies on Bank loans shall be adopted in accordance with that procedure;

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1734/94 is hereby amended as follows:

1. Article 1 is replaced by the following:

'Article 1

1. The Community shall implement financial and technical cooperation with the West Bank and the Gaza Strip under an eight-year period (1999 to 2006) with the aim of aiding their achievement of sustainable economic, political and social development.

2. Within two years and not later than 31 December 2000, the Council shall review the Regulation in order to take into account recent development in the area and to bring it into line with Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership (*).

(*) OJ L 189, 30.7.1996, p. 1.`

2. Article 2 is amended as follows.

(a) In paragraph 1 the words 'and the development of civil society` is added after '. . . human rights`.

(b) In paragraph 3 the following subparagraph is added:

'The above actions aim i.a. at the promotion of employment and the creation of employment by improving the social services and combating poverty`.

(c) In paragraph 5 and paragraph 6 'the Occupied Territories` is replaced by 'the West Bank and the Gaza Strip`.

3. In Article 3 'the Occupied Territories` is replaced by 'the West Bank and the Gaza Strip`.

4. Article 4 is amended as follows:

'1. Financing decisions on projects and operations under this Regulation exceeding ECU 2 000 000 other than those relating to interest-rate subsidies on Bank loans shall be adopted in accordance with the procedure laid down in Article 5.

2. Financing decisions on overall allocations for technical cooperation, training and trade promotion shall be adopted in accordance with the procedure laid down in Article 5. Within an overall allocation, the Commission shall adopt financing decisions not exceeding ECU 2 000 000.

The Committee referred to in Article 5 shall be informed systematically and promptly and in any event before the next meeting, of financing decisions for measures not involving more than ECU 2 000 000.

3. Decisions amending financing decisions adopted in accordance with the procedure laid down in Article 5 shall be taken by the Commission where they do not entail any substantial amendments or additional commitments in excess of 20 % of the original commitment. The Commission shall inform the Committee referred to in Article 5 immediately of any such decisions.`

5. Article 5(1) is amended as follows:

'(1) The Commission shall be assisted by the MED Committee set up pursuant to Article 11 of Regulation (EC) No 1488/96`

Article 2

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ L 182, 16.7.1994, p. 4.

(2) OJ L 189, 30.7.1996, p. 1.