Amended proposal for a Council Regulation on North-South cooperation in the campaign against and drug addiction (Budget heading B7-6 2 1 0) (96/C 326/03) COM(96) 427 final - 95/0167(SYN)

(Submitted by the Commission pursuant to Article 189a (2) of the EC Treaty on 6 September 1996) 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, in a communication to the Council and to Parliament dated 23 June 1994, the Commission presented its guidelines for a European Union plan of action on drugs for the period 1995 to 1999, including measures at international level;

Whereas Parliament stated its views on the guidelines in its opinion on the communication, adopted on 15 June 1995;

Whereas the international community's strategy to curb drug abuse and drug trafficking is based on universal accession to the Single Convention on Narcotic Drugs of 1961, as amended by the Protocol of 1972, the Convention on Psychotropic Substances of 1971 and the International Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances of 1988, and on the systematic implementation of those Conventions at national and international level;

Whereas the European Community is a party to the Convention of 1988, in particular by virtue of Article 12 of that Convention, and has adopted the appropriate legislation based on the recommendations of the Chemicals Action Task Force set up by the G7 and the President of the Commission in 1989, the effectiveness of which would be generally enhanced by the adoption of the relevant legislation and procedures in other parts of the world;

Whereas the European Community has adopted a directive on money laundering based on the recommendations of the Financial Action Task Force on Money Laundering (FATF) set up by the G7 and the President of the Commission in 1989, the effectiveness of which would be generally enhanced by the adoption of the relevant legislation and procedures in other parts of the world;

Whereas the fourth Lomé Convention and the cooperation, association and partnership agreements concluded by the European Community with developing countries contain clauses on cooperation to curb drug abuse and drug trafficking, the monitoring of trade in precursors, chemical products and psychotropic substances and the exchange of relevant information, including measures in the field of money laundering; whereas there is a relationship between the campaign against drugs and drug addiction and the aims of the cooperation policy pursued by the Community and its developing-country partners;

Whereas the Member States of the European Community have endorsed the policy statement and general plan of action adopted by the UN General Assembly at its 17th special session;

Whereas cooperation in the campaign against drugs and drug addiction makes an important contribution to the objectives of Community development policy, as set out in Article 130u of the Treaty establishing the European Community,

HAS ADOPTED THE FOLLOWING REGULATION:

Article 1

The European Community shall carry out cooperation activities in the field of drugs and drug addiction, giving priority to developing countries which have demonstrated political will at the highest level to combat drug abuse. The existence of such will may be demonstrated inter alia by ratification of the Single Convention of 1961 as amended by the Protocol of 1972, the Convention of 1971 and the Convention of 1988. Political commitment on the part of non-member countries shall take the form inter alia of the implementation of domestic legislation against money laundering.

Article 2

The Community shall give priority at the request of a partner country to supporting the preparation of a national drug control master plan, in close consultation with the United Nations International Drug Control Programme. These plans will identify objectives, strategies and priorities in the campaign against drugs and the related resource requirements (including financial requirements), thus establishing an integrated, multidisciplinary and multisectoral approach designed to maximize the efficiency of Community assistance.

A consistent policy shall be framed to address the prevention of drug addiction, comprising inter alia cooperation between police forces, social services, doctors and NGOs and objective information about the consequences of addiction, targeted especially at young people.

The Commission shall endeavour to exert an influence on international donors and financial institutions (e.g. the IMF and the World Bank) to ensure that their policies do not conflict with the aims of domestic drug control policies.

Community cooperation shall take place in a spirit of dialogue reflecting the genuine cultural differences which affect the perception of drug-related problems, this being crucial to ensure the social and political viability of drug control strategies.

Article 3

Preferably operating within the strategic framework established by the national plans, the Community shall also support specific operations capable of a measurable impact (i.e. effective and tangible results within a time limit set in advance) in the following areas:

- development of institutional capacity to implement national drug control master plans,

- on the basis of agreements between the European Community and individual 'sensitive` partner countries in line with CATF recommendations on cooperation to prevent the diversion of trade in precursors used in the production of illegal drugs and psychotropic substances, the Community will help partner countries to develop their institutions with a view to promoting the rapid and efficient implementation of the agreements and encouraging regional and subregional cooperation,

- on the basis of agreements between the European Community and individual 'sensitive` partner countries on cooperation in the field of money laundering, within the limit of the available resources, the Community may provide technical assistance to countries that have entered into the appropriate commitments, notably by ratifying the Vienna and Strasbourg Conventions and by adopting the FATF recommendations,

- the introduction of measures to control trade in, and consumption of, legal substitute crops narcotics and psychotropic substances,

- analysis of local drug and substance abuse patterns, preventive measures, treatment and reintegration of drug addicts, risk limitation and the integration of these measures with policies on health and education, development, and poverty and social and economic exclusion in particular. Human rights will be duly respected in implementing these measures,

- promotion of pilot alternative development projects (alternative development being defined as a process to eliminate and prevent production of illicit drug crops through specifically designed rural development measures in the context of sustained national economic growth. It should include social and economic measures which take into account factors contributing to illicit production), including projects which would allow trade preferences to be granted for substitute crops, in particular for small, inde pendent producers of the raw materials for illegal drugs, in countries taking action against drugs, and direct support for the measures taken by these countries to curb the drugs trade.

Particular emphasis will be given to:

- measures to combat the production of and trade in heroin, cocaine and dangerous synthetic drugs,

- the participation of local people and target groups in identifying, planning and carrying out operations, particularly when drawing up eradication schemes, special attention shall be paid to the key position of women and the social and evironmental implication of the measures,

- support for communities which have decided to give up production of drugs or precursors, in the form of help with the development of alternatives,

- institution-building in developing countries' institutions at national, local and regional level,

- ensuring that the Community supports only projects which respect human rights.

Article 4

The recipients of aid and cooperation partners shall include not only States and regions, but local services, regional organizations, government agencies, traditional or local communities, private operators and industries, including cooperatives, NGOs and grass-roots associations.

Article 5

1. Community assistance in the implementation of the operations referred to in Articles 2 and 3 shall include studies, technical assistance, training or other services, supplies and works, and evaluation and monitoring missions and audits.

2. According to the needs of the operations concerned, Community financing may cover both capital investment, other than the purchase of real estate, and operating costs in foreign or local currency. However, with the exception of training programmes, operating costs may normally be covered only during the start-up phase and on a degressive basis.

3. A systematic effort shall be made to obtain a contribution, and in particular a financial contribution, from the ultimate beneficiaries (countries, local communities, firms or others), according to their means and the nature of the operation concerned.

4. Opportunities shall be sought for co-financing, in particular with the Member States or with multilateral, regional or other organizations, The requisite measures shall be taken to highlight the Community character of aid granted under this Regulation.

5. The Commission, while having regard to the principles of sound management and avoiding excessive administrative costs, shall take all coordination measures necessary to maximize overall efficiency by enhancing the consistency and complementarity of operations financed by the Community and the Member States, and in particular:

(a) the setting-up of a standard system for exchanges of information on the operations financed or considered for financing by the Community and the Member States.

(b) on-the-spot coordination of operations through regular meetings and exchanges of information between the representatives of the Commission and the Member States in the recipient country.

Article 6

Financial support under this Regulation shall take the form of grants. All necessary steps shall be taken to ensure that aid is properly evaluated, monitored and substantiated.

Article 7

1. The Commission shall be responsible for appraising, approving and managing operations covered by this Regulation in accordance with 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.

2. Decisions relating to grants of more than ECU 2 million for individual operations financed under this Regulation and any changes resulting in an increase of more than 20 % in the sum initially approved for such an operation shall be adopted under the procedure laid down in Article 8.

3. All financing agreements or contracts concluded pursuant to 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.

4. Where operations are the subject of financing agreements between the Community and the recipient country, such agreements shall stipulate that the payment of taxes, duties or any other charges is not to be financed by the Community.

5. Participation in invitations to tender and the award of contracts shall be open on equal terms to natural and legal persons of the Member States and of the recipient country. It may be extended to other developing countries.

6. Supplies should originate in the Member States, the recipient country or other developing countries. Exceptions will be allowed only with the prior agreement of the competent department, in particular where the partners would otherwise have to bear extra or excessive costs.

Article 8

1. The Commission shall be assisted by an advisory committee made up of representatives from the Member States and chaired by a representative or the Commission, namely, depending on the recipient country or region:

(a) in the case of the ACP countries, the EDF Committee set up by Article 21 of Internal Agreement 91/401/EEC on the financing and administration of Community aid under the fourth Lomé Convention, adopted on 16 July 1990 by the representatives of the Member States meeting with the Council;

(b) in the cse of the Mediterranean countries, the MED Committee set up by Article 6 of Council Regulation (EEC) No 1762/92 of 29 June 1992;

(c) in the case of the Asian and Latin American countries, the ALA Committee set up by Article 15 of Council Regulation (EEC) No 443/92 of 25 February 1992.

2. The Commission representative shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

The opinion shall be recorded in the minutes; in addition each Member States shall have the right to ask to have its position recorded in the minutes.

The Commission shall take the utmost account of opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

Article 9

At the end of each budget year, the Commission shall present a report to Parliament and the Council summarizing the operations financed in the course of that year and evaluating the implementation of this Regulation over that period.

The report shall in particular contain information about those with whom contracts have been concluded.

It shall also summarize any independent evaluations conducted of specific operations.

Article 10

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.