Proposal for a COUNCIL DECISION on the position to be adopted by the Community within the Association Council established by the Europe Agreement signed on 10 June 1996 with Slovenia, concerning the extension of the period provided for in Article 65(4)(a) of that Agreement

(presented by the Commission)

EXPLANATORY MEMORANDUM

Article 65(4)(a) of the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Slovenia, of the other part, lays down that the Association Council, taking into account the economic situation of Slovenia, will decide whether to extend for a further four years the period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community referred to in Article 87(3)(a) of the Treaty establishing the European Community.

Since Slovenia's per capita GDP, measured in purchasing power standards, was 71% of the Community average in 1999, the period should be extended.

In accordance with Article 2(1) of the Decision of the Council and the Commission of 21 December 1998 on the conclusion of the Europe Agreement, the position to be adopted by the Community within the Association Council is determined in accordance with the corresponding provisions of the Treaties. The attached proposal and the proposed statements tie in with the decisions taken in the same cases under the Europe Agreements with other associated Central and Eastern European countries.

The Council is therefore requested to adopt the attached decision.

Proposal for a COUNCIL DECISION on the position to be adopted by the Community within the Association Council established by the Europe Agreement signed on 10 June 1996 with Slovenia, concerning the extension of the period provided for in Article 65(4)(a) of that Agreement

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 89 thereof and the first sentence of the first subparagraph and the second subparagraph of Article 300(2),

Having regard to the proposal from the Commission,

Whereas:

(1) The European Communities and their Member States signed the Europe Agreement with Slovenia on 10 June 1996 [1].

[1] OJ L 51, 26.2.1999, p. 3.

(2) Article 65(4)(a) of the Europe Agreement lays down that the Association Council, taking into account the economic situation of Slovenia, is to decide whether to extend for a further four years the period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community referred to in Article 87(3)(a) of the Treaty establishing the European Community,

HAS DECIDED AS FOLLOWS:

Sole Article

The position to be adopted by the Community within the Association Council established by the Europe Agreement between the European Communities and their Member States, of the one part, and the Republic of Slovenia, of the other part, concerning the extension for a further four years, in accordance with Article 65(4)(a) of the Europe Agreement, of the period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community referred to in Article 87(3)(a) of the Treaty establishing the European Community shall be based on the draft decision of the Association Council annexed to this Decision.

Done at Brussels,

For the Council

The President

ANNEX

DECISION No .../2000 OF THE EU-ASSOCIATION COUNCIL of

extending for four years the period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty establishing the European Community

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an Association between the European Communities and their Member States, of the one part, and the Republic of Slovenia, of the other part [2], and in particular Article 65(4)(a) thereof,

[2] OJ L 51, 26.2.1999, p. 3.

Whereas:

(1) Article 65(4)(a) of the Europe Agreement lays down that the Association Council, taking into account the economic situation of Slovenia, is to decide whether the period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty establishing the European Community should be extended for a further four years.

(2) The GDP per capita measured in purchasing power standards reached 71% of the Community average in 1999 and consequently the abovementioned extension should be granted, accompanied by a provision requiring Slovenia to submit figures for per capita GDP harmonised at NUTS II level and draw up a regional aid map on the basis of the Community guidelines [3],

[3] OJ C 74, 10.3.1998, p. 9.

HAS DECIDED AS FOLLOWS:

Article 1

The period during which any public aid granted by Slovenia is assessed in the light of the fact that Slovenia is regarded as an area identical to those areas of the Community described in Article 87(3)(a) of the Treaty establishing the European Community shall be extended for a further four years.

Article 2

Within six months of the date of adoption of this Decision, Slovenia shall submit the per capita GDP figures, harmonised at NUTS II level, to the European Commission.

The Slovenian State-aid monitoring authority and the European Commission shall then jointly assess the eligibility of the regions as well as their maximum aid intensities in order to draw up the regional aid map on the basis of the Community guidelines on national regional aid.

The joint proposal shall then be submitted to the Association Committee, which will take a decision on the matter.

Article 3

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

It shall apply from 1 January 2000.

Done at Brussels,

For the Association Council The Chairman

STATEMENTS TO BE INCLUDED IN THE COUNCIL MINUTES

1. "The Commission notes that, despite its proposal that Article 133 be used in conjunction with Article 300 of the EC Treaty as the correct legal basis for the adoption by the Community, within the Association Council, of a common position on an extension for a further four years, in accordance with Article 65(4)(a) of the Europe Agreement, the Member States unanimously called for Article 89 of the EC Treaty to be used as the legal basis.

The Commission maintains its view that the correct legal basis is Article 133, in conjunction with Article 300, of the EC Treaty."

2. "The Council and the Commission agree that this extension does not in any way prejudge the EU's position within the conference with Slovenia on accession. Provisions in the Europe Agreement diverging from the Community acquis could not form a precedent in the accession negotiations.

They also repeat that, if Slovenia joins the EU before the end of the four-year period laid down, the extension will become null and void, since accession means that all the bilateral agreements between Slovenia and the Communities will become null and void."