Proposal for a Council Regulation (EC) on cofinancing operations with European non-governmental development organizations (NGDOs) in fields of interest to the developing countries (95/C 251/07) COM(95) 292 final - 95/0168(SYN)

(Submitted by the Commission on 11 July 1995)

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,

In cooperation with the European Parliament,

Whereas the Commission, in its communication to the Council of 6 October 1975 (1), put forward guidelines on relations with non-governmental development organizations, together with general conditions and procedures for the use of funds intended for development operations by such organizations;

Whereas the budgetary authority introduced into the 1976 budget an item for cofinancing with NGDO's and has since steadily increased the volume of such funding (from ECU 2,5 million in 1976 to ECU 174 million in 1995) on the basis of the Commission's annual reports on the use of these resources;

Whereas the Council, on 28 November 1977 (2), approved the general conditions and procedures proposed by the Commission;

Whereas the European Parliament, in its resolution of 14 May 1992 on the role of NGOs in development cooperation (3), reaffirmed the specific and irreplaceable role of NGDOs and the usefulness and effectiveness of their development operations, emphasizing in particular the key role of NGDOs' work on behalf of marginal social groups in developing countries, the need to preserve the NGDOs' freedom of action, and the vital role of NGDOs in promoting human rights and the development of grassroots democracy;

Whereas the Council, in its resolution of 27 May 1991 on cooperation with the NGOs, underlined the importance of the autonomy and independence of NGDOs; whereas it recognized, moreover, the need for complementarity between the Community system of cooperation with the NGDOs and similar efforts at national level, together with the need for flexibility in procedures and their application;

Whereas the Council, in its conclusions of 18 November 1992 (4), noted with satisfaction the criteria applied by the Commission when selecting development and education projects for cofinancing, notably strengthening the fabric of democracy and respect for human rights in the developing countries, and particularly welcomed the fact that the Commission had made it clear that the main criterion remained the quality of the project, an approach which it backed unreservedly;

Whereas administrative procedures should be established for cofinancing operations with European NGDOs in fields of interest to the developing countries,

HAS ADOPTED THIS REGULATION:

Article 1

1. The Community shall cofinance operations with European non-governmental development organizations (NGDOs) to meet directly the basic needs of disadvantaged people in developing countries. Such operations shall be proposed by European NGDOs and conducted in cooperation with their partners in the developing countries and shall be aimed at poverty alleviation as well as enhancing the target group's quality of life and own development capacity.

2. The Community shall also cofinance with European NGDOs public awareness and information operations in Europe about the problems facing the countries of the South in their development and their relations with the industrialized world. Such operations shall be proposed by European NGDOs and shall be designed to mobilize public support in Europe for development and for strategies and operations benefiting people in the developing countries.

3. The Community shall also cofinance operations designed to reinforce cooperation and coordination between NGDOs from the Member States, and between NGDOs from the Member States and the Community Institutions.

Article 2

1. The operations cofinanced in the developing countries under Article 1 (1) of this Regulation shall, in particular, concern local social and economic development in rural and urban areas, the development of human resources and institutional support for local partners in the developing countries.

Within those fields of activity, though the quality of operation is paramount, particular attention shall be given to operations connected with:

- the strengthening of civil society and participatory development, and the promotion and defence of human rights and democracy,

- the role of women in development,

- sustainable development.

2. Public awareness and information operations under Article 1 (2) of this Regulation shall be targeted at clearly-defined groups, deal with relevant issues, be founded on a balanced analysis and a sound knowledge of the issues and groups targeted, and involve a European dimension.

Though the quality of operation is paramount, special attention shall be accorded to public awareness operations which:

- highlight the interdependence of the Member States and the developing countries,

- seek to mobilize support for more equitable North-South relations,

- encourage cooperation between NGDOs,

- enable partners in the developing countries to play an active part.

3. The operations designed to reinforce coordination between NGDOs from the Member States and with the Commission Institutions, under Article 1 (3) of this Regulation shall, in particular, concern the development of communication networks.

Article 3

1. The agents of cooperation eligible for cofinancing under this Regulation shall be NGDOs satisfying the following conditions:

- they must be constituted as autonomous non-profit-making organizations in a Member State of the European Community in accordance with the laws of that country,

- they must have their headquarters in a Member State of the European Community, where all decisions relating to the cofinanced operations must be taken,

- the majority of their funding must originate in Europe.

2. In determining whether an NGDO is eligible for cofinancing, account shall be taken of:

- its capacity to mobilize solidarity and raise private funding in the European Community for its development activities,

- the priority it accords to development and its experience in that field,

- its administrative and financial management capacities.

Article 4

1. Community cofinancing for the operations referred to in Article 1 may cover both investment and operational spending in foreign or local currency, and generally any spending necessary for the smooth implementation of the cofinanced operations, including the administrative costs of NGDOs or NGDO networks.

2. An NGDO with which a cofinancing contract is concluded shall notify its partners of the Community's contribution to the operation.

3. The NGDO shall systematically examine the scope for the developing-country agencies or partners ultimately benefiting from an operation to contribute in kind or financially, according to their means and the specific nature of the operation concerned.

Article 5

Community cofinancing under this Regulation shall take the form of grants.

Article 6

1. The Commission shall appraise, decide and administer the cofinancing of operations covered by this Regulation according to the budgetary and other procedures in force, and in particular those laid down in the Financial Regulation applicable to the general budget of the European Communities, taking account of the nature and specific features of NGDOs, and particularly their financial contribution to the operations in question.

2. All cofinancing contracts concluded under this Regulation shall provide for the Commission and the Court of Auditors to conduct on-the-spot checks according to the usual procedures laid down by the Commission under the rules in force, and in particular those of the Financial Regulation applicable to the general budget of the European Communities.

Article 7

After each budget year, the Commission shall report to Parliament and the Council, summarizing the operations financed in the course of that year, evaluating the implementation of this Regulation in that period and proposing general guidelines for its future application.

The report shall set out the conclusions of any independent evaluations performed.

Article 8

This Regulation shall enter into force on the third day following that of 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) COM(75) 504, 6. 10. 1975.

(2) R/207/78 (Working Party on Development Cooperation), 26. 1. 1978.

(3) OJ No C 150, 15. 6. 1992, p. 273.

(4) See 9907/92 DEVGEN 56, 9. 11. 1992.