Proposal for a COUNCIL DECISION On the conclusion of the agreement between the European Community and the Republic of Hungary concerning Hungary's participation in the European Environment Agency and the European Environment Information and Observation Network

(presented by the Commission)

EXPLANATORY MEMORANDUM

1. Introduction

The Commission proposes Council Decisions for conclusion, on behalf of the European Community, of the agreements on the participation of 13 candidate countries in the European Environment Agency. The Commission negotiated with all 13 candidate countries on the basis of the mandate given to it by the Council. The Commission has concluded the negotiations with 13 countries for participation in the European Environment Agency, i.e. Bulgaria, Czech Republic, Cyprus, Estonia, Hungary, Malta, Latvia, Lithuania, Romania, Poland, Slovenia, Slovak Republic and Turkey. The negotiations were concluded with the signature of the Final Act shown in Annex by eleven candidate countries and the Commission on 9 October 2000. Poland signed on 16 November 2000 and Lithuania on 24 November 2000.

The European Environment Agency is the first of 11 Community agencies to be opened for candidate country participation.

2. Pre accession strategy

2.1. Agenda 2000

In Agenda 2000 the Commission expressed the view that the participation of the applicant countries from Central and Eastern Europe in programmes implementing the acquis would provide "a useful preparation in familiarising the applicant countries and their citizens with the Union's policies and working methods". This is one of the principal means of increasing the applicant countries' capacity to implement, and not only transpose, the acquis.

2.2. The European Council Conclusions

The European Council (Luxembourg 1997) made participation in programmes and Community agencies into an instrument of the enhanced pre-accession strategy, concluding that the applicant countries should be permitted to participate in Community agencies on a case-by-case basis.

A special pre-accession strategy was developed for Cyprus and Malta, in which the participation in certain Community programmes and agencies was highlighted and prescribing the same approach to be followed for these countries as for the Central and Eastern European applicant states.

As for Turkey, the European Council (Helsinki 1999) reaffirmed the inclusive nature of the accession process comprising 13 candidate countries, including Turkey. Turkey is a candidate state destined to join the Union on the basis of the same criteria as applied to the other candidate states. Turkey will benefit from a pre-accession strategy and will also have the opportunity to participate in Community programmes and agencies in the context of the accession process.

3. Council Decision authorising the Commission to conduct negotiations on the participation of candidate countries in the EEA

On the basis of the Commission proposal SEC (1999) 1218 of 27 July 1999, the Council decided on 14 February 2000 to authorise the Commission to conduct negotiations on the participation in the European Environment Agency of countries applying for accession. The objective was to enable them to participate in the work of the European Environment Agency before accession. The negotiation directives state that the Commission shall offer the applicant countries conditions similar to those governing the participation of the non-EU Member States, which are members of the European Economic Area (Protocol 31 of the Agreement on the European Economic Area). In particular, the fact that these countries participate in the Management Board of the Agency without the rights to vote and contribute financially to the activities of the Agency should be taken into account.

4. the negotiation

The Commission has on the basis of the mandate negotiated with all the candidate countries. Negotiations have been concluded with all the 13 countries for their participation in the European Environment Agency, i.e. Bulgaria, Czech Republic, Cyprus, Estonia, Hungary, Malta, Latvia, Lithuania, Poland, Romania, Slovenia, Slovak Republic and Turkey. Draft bilateral agreements have been agreed and the candidate countries and the Community are now proceeding to the ratification of the draft agreements.

5. draft agreement

The Commission has agreed with the countries, with which negotiations are concluded, draft agreements giving the applicant countries conditions similar to those governing the participation of the non-EU Member States, which are members of the European Economic Area.

The agreements state that the candidate countries participating in the European Environment Agency will take part in the Agency work programme including meeting the obligations of the Agency Regulation.

Candidate countries will have to establish an infrastructure for providing uniform environmental data on the state of the environment in their territory. Each candidate country will contribute financially to the Agency to cover the cost of its participation. They will also participate in the Management Board of the Agency without the right to vote until such time as they become members of the Union.

The agreements are drafted for an unlimited period until the candidate countries become members of the European Union.

The Parties will approve the agreement in accordance with their own procedures. It will enter into force when both Parties have notified each other that their respective procedures have been completed.

For its part, the Agency will treat candidate country members as existing Member States, through equal treatment in terms of provisions of environmental information and analysis, staffing provisions, contracts to third parties and appointments of Topic Centres.

6. Conclusion of the agreements

6.1. Legal basis

Negotiations enabling the Agency to be opened to the participation of the applicant countries are possible under Article 19 of the Council Regulation (EEC) 1210/1990 modified by Regulation 933/1999 on the establishment of the European Environment Agency.

The text in the above mentioned Article comprises the necessary rules on procedure for the opening of the Agency to countries which are not members of the Union but which share the concern of the Community and the Member States for the objectives of the Agency. Agreements concluded between such countries and the Community shall follow the procedures in Article 300 of the Treaty.

The European Commission has, on basis of the Council negotiation directives, concluded the negotiations with all 13 candidate countries.

In order to proceed the Commission is now proposing Council Decisions on conclusion of the agreements with the objective to allow these countries to join the European Environment Agency.

6.2. Financial implications

According to the concluded negotiations, countries will contribute financially to the European Environment Agency to cover the cost to extend all Agency activities to the candidate countries.

It is foreseen that these countries will be fully integrated in all Agency activities after a three- year phase-in period. The financial contribution is therefore foreseen to increase during this three-year period. The candidate countries can obtain financial assistance from the relevant Community assistance programmes to subsidise 75%, 65% and in the third year 50% of their membership fees to the Agency. As from the fourth year all countries will have to cover the full cost of their participation in the Agency.

When the full work programme of the Agency is implemented the total yearly financial contribution from all 13 countries to the Agency will amount to EUR 8.82 million.

7. Benefits of the Agreements

Benefits of the participation of the accession countries in the Agency are several:

- The participation will help the candidate countries to establish effective monitoring systems where unified data collection and assessment will provide reliable and comparable information of the state of environment.

- The European Environment Agency will be able to report on the state of the environment of the whole of Europe including the candidate countries.

- The European Environment Agency will be able to assist candidate countries in implementing the EU environmental laws in preparation for accession.

- The European Environment Agency will also assist the candidate countries in their efforts to improve and maintain high environmental standards in an enlarged European Union.

8. recommendation

Negotiations have been concluded and agreement reached with all 13 candidate countries for their participation in the European Environment Agency on similar conditions as for the non-EU Member State participants in the Agency.

It is therefore possible for the Community to approve the conclusion of the bilateral agreements with Bulgaria, Czech Republic, Cyprus, Estonia, Hungary, Malta, Latvia, Lithuania, Poland, Romania, Slovenia, Slovak Republic and Turkey for their participation in the European Environment Agency.

ANNEX Final Act Of the Negotiations To adopt the Agreement between the European Community and the Government of the Republic of Hungary concerning the participation of the Republic of Hungary to the European Environment Agency and the European Environment Information and Observation network

Representatives of the Government of the Republic of Hungary and of the European Commission have held negotiations in the course of the year Two Thousand for the purpose of negotiating and adopting the text of an Agreement between the European Community and the Republic of Hungary concerning the participation of the Republic of Hungary to the European Environment Agency and the European Environment Information and Observation network.

The representatives of the European Commission pursued the above-mentioned negotiations on the basis of a Recommendation of the Council of the European Community on the negotiations, in the name of the European Community, of the conditions for participation of the accession countries in the European Environment Agency, dated the Fourteenth of February of the year Two Thousand.

The representatives of the Government of the Republic of Hungary and of the European Commission, took note of the results of prior negotiating sessions, held in Brussels on the Twenty Seventh of March of the year Two Thousand, on the Thirteenth of July of the year Two Thousand and on the Sixth of October of the year Two Thousand.

The representatives of the Government of the Republic of Hungary and of the European Commission endorsed the outcome of the negotiations and adopted the text of the Agreement between the European Community and the Republic of Hungary concerning the participation of the Republic of Hungary to the European Environment Agency and the European Environment Information and Observation network, appended to this Final Act.

In conformity with its Article 18, the Agreement between the European Community and the Republic of Hungary concerning the participation of the Republic of Hungary to the European Environment Agency and the European Environment Information and Observation network will be approved by the Parties in accordance with their own procedures. The Agreement shall then enter into force on the first day of the second month following the date on which the last Party has notified the first Party that its procedures have been completed.

IN WITNESS WHEREOF the Representatives have signed this Final Act.

Done at Brussels, on the Ninth day of October in the year Two Thousand.

For the European Commission For the Government of the Republic of Hungary

2000/0355 (CNS)

Proposal for a COUNCIL DECISION On the conclusion of the agreement between the European Community and the Republic of Hungary concerning Hungary's participation in the European Environment Agency and the European Environment Information and Observation Network

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 174 paragraph 4, in conjunction with Article 300 paragraph 2, first sentence of the first paragraph, and Article 300, paragraph 3 thereof,

Having regard to the proposal from the Commission [1],

[1] OJ C , , p. .

Having regard to the opinion of the European Parliament [2],

[2] OJ C , , p. .

Having regard to Council Regulation 1210/90 [3] as amended by Council Regulation 933/1999 [4], on the establishment of the European Environment Agency and the European Environment Information and Observation Network.

[3] OJ L120, 11/05/1990 p.0001-0006

[4] OJ L117, 05/05/1999 p.0001-0004

Having regard to the Commission Communication on "Participation of candidate countries in Community programmes, agencies and committees" COM (1999) 710 final.

Whereas:

(1) The Luxembourg European Council (December 1997) made participation in the Community programmes and agencies a way of stepping up the pre-accession strategy for the central and eastern European countries. The European Council concluded "Such participation will have to be determined case-by-case, with each applicant state making a steadily increasing financial contribution of its own. Phare will, if necessary, be able to continue part-financing the applicant states national contributions."

(2) The Luxembourg European Council (December 1997) with regard to Cyprus provided for a specific pre-accession strategy entailing participation on certain Community programmes and agencies as in the approach followed for the applicant Central and Eastern European Countries.

(3) The Helsinki European Council (December 1999) reaffirmed the inclusive nature of the accession process, which now comprises 13 candidate states within a single framework with the candidate states participating in the accession process on an equal footing.

(4) The Council, pursuant to Article 300, paragraph 1 of the Treaty establishing the European Community, on 14 February 2000 authorised the Commission to conduct negotiations on the participation in the European Environment Agency of the countries applying for accession.

HAS DECIDED AS FOLLOWS:

Article 1

The Agreement between the European Community and the Republic of Hungary concerning Hungary's participation in the European Environment Agency and the European Environment Information and Observation Network is hereby approved on behalf of the Community.

The text of the Agreement is contained in the Annex to this Decision.

Article 2

The Decision will be published in the Official Journal of the European Communities .

Done at Brussels,

For the Council

The President

ANNEX

HUNGARY

Agreement between the European Community and the Government of the Republic of Hungary concerning the participation of the Republic of Hungary to the European Environment Agency and the European Environment Information and Observation Network

The EUROPEAN COMMUNITY of the one part,

And the GOVERNMENT OF THE REPUBLIC OF HUNGARY, hereinafter referred to as "Hungary", of the other part,

TAKING INTO ACCOUNT Hungary's application for participation in the European Environment Agency already before accession,

RECALLING that the Luxembourg European Council (December 1997) made participation in the Community programmes and agencies a way of stepping up the pre-accession strategy for the central and eastern European countries,

TAKING INTO ACCOUNT the Council Regulation 1210/90 [5] as amended by Council Regulation 933/1999 [6], on the establishment of the European Environment Agency and the European Environment Information and Observation Network,

[5] OJ L120, 11/05/1990 p.0001-0006

[6] OJ L 117, 05/05/1999 p. 0001-0004

RECOGNISING the fact that, by the application of Hungary submitted in March 1994 for membership in the European Union and by the decision of the Luxembourg European Council in December 1997, accession negotiations started in March 1998, and that participation in the European Environment Agency will help the Parties to achieve the objective of accession,

HAVING REGARD to the Europe Agreement establishing an association between the European Communities and their Member States, of one part and the Republic of Hungary, of the other, and in particular Article 79 thereof [7],

[7] OJ L347/2, 31/12/1993 p. 0002 - 0266

HAVE AGREED AS FOLLOWS:

Article 1

Hungary shall participate fully in the European Environment Agency, hereinafter referred to as the 'Agency', and the European Environment Information and Observation Network (EIONET), as set up in Council Regulation (EEC) No. 1210/90 amended by Council Regulation 933/1999.

Article 2

Hungary shall contribute financially to the activities referred to under

Article 1 (Agency and EIONET) in accordance to the following:

*The contribution will progressively increase in a 3-year period during which the activities will be phased in by Hungary. The financial contributions required are:

*Year 1 EUR 490 000

*Year 2 EUR 619 000

*Year 3 EUR 749 000

From the fourth year of the coming into force of this Agreement Hungary has to bear the full cost of its financial contribution, i.e. EUR 749 000.

*For the first 3-year period Hungary may partially use Community assistance to pay the contribution to the Agency with a maximum of Phare contribution of 75 % in year 1, 60 % in year 2 and 50% in year 3.

From the fourth year the full cost of its financial contribution in the Agency shall be fully covered by Hungary.

The further terms and conditions on the Financial Contribution of Hungary are set out in Annex I to this Agreement, which shall form an integral part to it.

Article 3

Hungary shall participate fully, without the right to vote, in the Agency Management Board and shall be associated with the work of the Scientific Committee of the Agency.

Article 4

Hungary shall, within three months from the entry into force of this Agreement, inform the Agency of the main component elements of its national information networks as set out in Article 4(2) of Council Regulation (EEC) No. 1210/90 as amended by Council Regulation 933/1999.

Article 5

Hungary shall in particular designate from among the institutions referred to in Article 4 or from among other organisations established in its territory a "national focal point" for co-ordinating and/or transmitting the information to be supplied at national level to the Agency and to the institutions or bodies forming part of the EIONET, including the topic centres referred to under Article 6.

Article 6

Hungary may also, within the period laid down in Article 4, identify the institutions or other organisations established in its territory, which could be specifically entrusted with the task of co-operating with the Agency as regards certain topics of particular interest. An institution thus identified should be in a position to conclude an agreement with the Agency to act as a topic centre of the network for specific tasks. These centres shall co-operate with other institutions, which form part of the network.

Article 7

Within three months of receiving the information referred to in Articles 4,5 and 6, the Management Board of the Agency shall review the main elements of the network to take account of the participation of Hungary.

Article 8

Hungary should, under the condition that confidentiality is protected, provide data according to the obligations and practice established in the Agency work programme.

Article 9

The Agency may agree with the institutions or bodies designated by Hungary and which form part of the network, as referred to in Articles 4,5 and 6, upon the necessary arrangements, in particular contracts, for successfully carrying out the tasks which it may entrust to them.

Article 10

Environmental data supplied to or emanating from the Agency may be published and shall be made accessible to the public, provided that confidential information is afforded the same degree of protection in the Hungary as it is afforded within the Community.

Article 11

The Agency shall have legal personality in Hungary and it shall enjoy in Hungary the most extensive legal capacity accorded to legal persons under its laws.

Article 12

Hungary shall, as relevant to the operation of the Agency under this agreement, apply to the Agency the Protocol of Privileges and Immunities of the European Communities, which, as Annex II to this agreement, shall form an integral part thereof.

Article 13

By way of derogation from Article 12(2)(a) of the Council Regulation 259/68 on Staff Regulations of officials and the conditions of employment of other servants of the European Communities [8], nationals of Hungary enjoying their full rights as citizens may be engaged under contract by the Executive Director of the Agency.

[8] OJ L56, 4.3.1968

Article 14

The Parties shall take any general or specific measures required to fulfil their obligations under the Agreement. They shall see to it that the objectives set out in the Agreement are attained.

Article 15

1. Six months before expiry of the third year from the entry into force of this Agreement, Parties shall review its functioning and they might agree on the amendments of some terms of this Agreement.

2. This Agreement is concluded for an unlimited period until Hungary will become a member of European Union. Either Party may denounce this Agreement by notifying the other Party. This Agreement shall cease to apply six months after the date of such notification.

Article 16

This Agreement shall apply, on the one hand, to the territories in which the Treaties establishing the European Community, the European Atomic Energy Community and the European Coal and Steel Community are applied and under the conditions laid down in those Treaties and, on the other hand, to the territory of Hungary.

Article 17

This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Italian, Spanish, Swedish, Greek, Portuguese and Hungarian languages, each of these texts being equally authentic.

Article 18

This Agreement will be approved by the Parties in accordance with their own procedures. This Agreement shall enter into force on the first day of the second month following the date on which the last Party has notified the first Party that its procedures have been completed.

ANNEX I Financial contribution of Hungary to the European Environment Agency

1. The financial contribution to be paid by Hungary to the budget of the European Union to participate in the European Environment Agency will be in

*Year 1 of participation EUR 490 000

*Year 2 of participation EUR 619 000

*Year 3 of participation EUR 749 000

From the fourth year Hungary has to bear the full cost of its financial contribution, i.e. EUR 749 000.

2. For the first 3-year period Hungary may partially use Community assistance to pay the contribution to the European Environment Agency with a maximum of Phare contribution of 75 % in year 1, 60 % in year 2 and 50% in year 3. Subject to a Phare separate programming procedure, the requested Phare funds will be transferred to Hungary by means of a separate Financing Memorandum.

The remaining part of the contribution will be covered by Hungary. From the fourth year the full cost of participation in the Agency shall be fully covered by Hungary.

3. The contribution of Hungary will be managed in accordance with the financial regulation applicable to the general budget of the European Union.

Travel costs and subsistence costs incurred by representatives and experts of Hungary for the purposes of taking part in the European Environment Agency activities or meetings related to the implementation of the Agency's work programme shall be reimbursed by the European Environment Agency on the same basis as and in accordance with the procedures currently in force for the Member States of the European Union.

4. After the entry into force of this Agreement and at the beginning of each following year, the Commission will send to Hungary a call for funds corresponding to its contribution to the European Environment Agency under this Agreement. For the first calendar year of its participation Hungary will pay a contribution calculated from the date of participation to the end of the year on a pro rata basis. For the following years the contribution will be in accordance to this Agreement.

5. This contribution shall be expressed in EURO and paid into an EURO bank account of the European Commission.

6. Hungary will pay its contribution according to the call for funds :

For its own part by 1 May provided that the call for funds is sent by the Commission before 1 April, or at the latest in a period of 30 days after the call for funds is sent.

For the Phare part by 1 May provided that the corresponding amounts have been sent to Hungary by this time, or at the latest in a period of 30 days after these funds have been sent to Hungary.

7. Any delay in the payment of the contribution shall give rise to the payment of interest by Hungary on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the European Central Bank, on the due date, for its operations in EURO, increased by 1.5 percentage points.

ANNEX II PROTOCOL ON THE PRIVILEGES AND IMMUNITIES OF THE EUROPEAN COMMUNITIES

THE HIGH CONTRACTING PARTIES,

CONSIDERING that, in accordance with Article 28 of the Treaty establishing a Single Council and a Single Commission of the European Communities, these Communities and the European Investment Bank shall enjoy in the territories of the Member States such privileges and immunities as are necessary for the performance of their tasks,

HAVE AGREED upon the following provisions, which shall be annexed to this Treaty.

CHAPTER I

PROPERTY, FUNDS, ASSETS AND OPERATIONS OF THE EUROPEAN COMMUNITIES

Article 1

The premises and buildings of the Communities shall be inviolable. They shall be exempt from search, requisition, confiscation or expropriation. The property and assets of the Communities shall not be the subject of any administrative or legal measure of constraint without the authorization of the Court of Justice.

Article 2

The archives of the Communities shall be inviolable.

Article 3

The Communities, their assets, revenues and other property shall be exempt from all direct taxes.

The governments of the Member States shall, wherever possible, take the appropriate measures to remit or refund the amount of indirect taxes or sales taxes included in the price of movable or immovable property, where the Communities make, for their official use, substantial purchases the price of which includes taxes of this kind. These provisions shall not be applied, however, so as to have the effect of distorting competition within the Communities.

No exemption shall be granted in respect of taxes and dues which amount merely tocharges for public utility services.

Article 4

The Communities shall be exempt from all customs duties, prohibitions and restrictions on imports and exports in respect of articles intended for their official use: articles so imported shall not be disposed of, whether or not in return for payment, in the territory of the country into which they have been imported, except under conditions approved by the government of that country.

The Communities shall also be exempt from any customs duties and any prohibitions and restrictions on import and exports in respect of their publications.

Article 5

The European Coal and Steel Community may hold currency of any kind and operate accounts in any currency.

CHAPTER II

COMMUNICATIONS AND LAISSEZ PASSER

Article 6

For their official communications and the transmission of all their documents, the institutions of the Communities shall enjoy in the territory of each Member State the treatment accorded by that State to diplomatic missions.

Official correspondence and other official communications of the institutions of the Communities shall not be subject to censorship.

Article 7

1. Laissez passer in a form to be prescribed by the Council, which shall be recognized as valid travel documents by the authorities of the Member States, may be issued to members and servants of the institutions of the Communities by the Presidents of these institutions. These laissez passer shall be issued to officials and other servants under conditions laid down in the Staff Regulations of officials and the Conditions of Employment of other servants of the Communities.

The Commission may conclude agreements for these laissez passer to be recognized as valid travel documents within the territory of third countries.

2. The provisions of Article 6 of the Protocol on the privileges and immunities of the European Coal and Steel Community shall, however, remain applicable to members and servants of the institutions who are at the date of entry into force of this Treaty in possession of the laissez passer provided for in that Article, until the provisions of paragraph 1 of this Article are applied.

CHAPTER III

MEMBERS OF THE EUROPEAN PARLIAMENT

Article 8

No administrative or other restriction shall be imposed on the free movement of Members of the European Parliament travelling to or from the place of meeting of the European Parliament.

Members of the European Parliament shall, in respect of customs and exchange control, be accorded:

a. by their own government, the same facilities as those accorded to senior officials travelling abroad on temporary official missions;

b. by the government of other Member States, the same facilities as those accorded to representatives of foreign governments on temporary official missions.

Article 9

Members of the European Parliament shall not be subject to any form of inquiry, detention or legal proceedings in respect of opinions expressed or votes cast by them in the performance of their duties.

Article 10

During the sessions of the European Parliament, its Members shall enjoy:

a. in the territory of their own State, the immunities accorded to members of their parliament;

b. in the territory of any other Member State, immunity from any measure of detention and from legal proceedings.

Immunity shall likewise apply to Members while they are travelling to and from the place of meeting of the European Parliament.

Immunity cannot be claimed when a Member is found in the act of committing an offence and shall not prevent the European Parliament from exercising its right to waive the immunity of one of its Members.

CHAPTER IV

REPRESENTATIVES OF MEMBER STATES TAKING PART IN THE WORK OF THE INSTITUTIONS OF THE EUROPEAN COMMUNITIES

Article 11

Representatives of Member States taking part in the work of the institutions of the Communities, their advisers and technical experts shall, in the performance of their duties and during their travel to and from the place of meeting, enjoy the customary privileges, immunities and facilities.

This Article shall also apply to members of the advisory bodies of the Communities.

CHAPTER V

OFFICIALS AND OTHER SERVANTS OF THE EUROPEAN COMMUNITIES

Article 12

In the territory of each Member State and whatever their nationality, officials and other servants of the Communities shall:

a. subject to the provisions of the Treaties relating, on the one hand, to the rules on the liability of officials and other servants towards the Communties and, on the other hand, to the jurisdiction of the Court in disputes between the Communities and their officials and other servants, be immune from legal proceedings in respect of acts performed by them in their official capacity, including their words spoken or written. They shall continue to enjoy this immunity after they have ceased to hold office;

b. together with their spouses and dependent members of their families, not be subject to immigration restrictions or to formalities for the registration of aliens;

c. in respect of currency or exchange regulations, be accorded the same facilities as are customarily accorded to officials of international organizations;

d. enjoy the right to import free of duty their furniture and effects at the time of first taking up their post in the country concerned, and the right to re export free of duty their furniture and effects, on termination of their duties in that country, subject in either case to the conditions considered to be necessary by the government of the country in which this right is exercised;

e. have the right to import free of duty a motor car for their personal use, acquired either in the country of their last residence or in the country of which they are nationals on the terms ruling in the home market in that country, and to re export it free of duty, subject in either case to the conditions considered to be necessary by the government of the country concerned.

Article 13

Officials and other servants of the Communities shall be liable to a tax for the benefit of the Communities on salaries, wages and emoluments paid to them by the Communities, in accordance with the conditions and procedure laid down by the Council, acting on a proposal from the Commission.

They shall be exempt from national taxes on salaries, wages and emoluments paid by the Communities.

Article 14

In the application of income tax, wealth tax and death duties and in the application of conventions on the avoidance of double taxation concluded between Member States of the Communities, officials and other servants of the Communities who, solely by reason of the performance of their duties in the service of the Communities, establish their residence in the territory of a Member State other than their country of domicile for tax purposes at the time of entering the service of the Communities, shall be considered, both in the country of their actual residence and in the country of domicile for tax purposes, as having maintained their domicile in the latter country provided that it is a member of the Communities.

This provision shall also apply to a spouse, to the extent that the latter is not separately engaged in a gainful occupation, and to children dependent on and in the care of the persons referred to in this Article.

Movable property belonging to persons referred to in the preceding paragraph and situated in the territory of the country where they are staying shall be exempt from death duties in that country; such property shall, for the assessment of such duty, be considered as being in the country of domicile for tax purposes, subject to the rights of third countries and to the possible application of provisions of international conventions on double taxation.

Any domicile acquired solely by reason of the performance of duties in the service of other international organizations shall not be taken into consideration in applying the provisions of this Article.

Article 15

The Council shall, acting unanimously on a proposal from the Commission, lay down the scheme of social security benefits for officials and other servants of the Communities.

Article 16

The Council shall, acting on a proposal from the Commission and after consulting the other institutions concerned, determine the categories of officials and other servants of the Communities to whom the provisions of Article 12, the second paragraph of Article 13, and Article 14 shall apply, in whole or in part.

The names, grades and addresses of officials and other servants included in such categories shall be communicated periodically to the governments of the Member States.

CHAPTER VI

PRIVILEGES AND IMMUNITIES OF MISSIONS OF THIRD COUNTRIES ACCREDITED TO THE EUROPEAN COMMUNITIES

Article 17

The Member State in whose territory the Communities have their seat shall accord the customary diplomatic immunities and privileges to missions of third countries accredited to the Communities.

CHAPTER VII

GENERAL PROVISIONS

Article 18

Privileges, immunities and facilities shall be accorded to officials and other servants of the Communities solely in the interests of the Communities.

Each institution of the Communities shall be required to waive the immunity accorded to an official or other servant wherever that institution considers that the waiver of such immunity is not contrary to the interests of the Communities.

Article 19

The institutions of the Communities shall, for the purpose of applying this Protocol, cooperate with the responsible authorities of the Member States concerned.

Article 20

Articles 12 to 15 and Article 18 shall apply to Members of the Commission.

Article 21

Articles 12 to 15 and Article 18 shall apply to the Judges, the Advocates General, the Registrar and the Assistant Rapporteurs of the Court of Justice, without prejudice to the provisions of Article 3 of the Protocols on the Statute of the Court of Justice concerning immunity from legal proceedings of Judges and Advocates General.

Article 22

This Protocol shall also apply to the European Investment Bank, to the members of its organs, to its staff and to the representatives of the Member States taking part in its activities, without prejudice to the provisions of the Protocol on the Statute of the Bank.

The European Investment Bank shall in addition be exempt from any form of taxation or imposition of a like nature on the occasion of any increase in its capital and from the various formalities which may be connected therewith in the State where the Bank has its seat. Similarly, its dissolution or liquidation shall not give rise to any imposition. Finally, the activities of the Bank and of its organs carried on in accordance with its Statute shall not be subject to any turnover tax.

Article 23*

This Protocol shall also apply to the European Central Bank, to the members of its organs and to its staff, without prejudice to the provisions of the Protocol on the Statute of the European System of Central Banks and the European Central Bank.

The European Central Bank shall, in addition, be exempt from any form of taxation or imposition of a like nature on the occasion of any increase in its capital and from the various formalities which may be connected therewith in the State where the Bank has its seat. The activities of the Bank and of its organs carried on in accordance with the Statute of the European System of Central Banks and of the European Central Bank shall not be subject to any turnover tax.

The above provisions shall also apply to the European Monetary Institute. Its dissolution or liquidation shall not give rise to any imposition.

IN WITNESS WHEREOF, the undersigned Plenipotentiaries have signed this Protocol.

Done at Brussels this eighth day of April in the year one thousand nine hundred and sixty five.

Paul Henri SPAAK Kurt SCHMÜCKER Maurice COUVE DE MURVILLE Amintore FANFANI Pierre WERNER J. M. A. H. LUNS

FINANCIAL STATEMENT

1. Title of operation

Participation of the candidate countries in the European Environment Agency

2. Budget heading involved

B7-030 Phare: Economic aid to the associated countries of Central and Eastern Europe

B7-040 Malta

B7-041 Cyprus

B7-050 Turkey

6091 (Earmarked revenue): Revenue accruing from the participation of the candidate countries in the European Environment Agency

3. Legal basis

Treaty establishing the European Community, and in particular Articles 174(4), in conjunction with Article 300 there of;

Council Regulation (EEC) no 1210/90 of 7 May 1990 as amended by Council Regulation 933/1999 of 29 April 1999 on the establishment of the European Environment Agency and the European Environment Information Network.

4. Description of operation

4.1 General objective

Council Regulation (EEC) no 1210/90 of 7 May 1990, as amended by Council Regulation 933/1999 of 29 April 1999 on the establishment of the European Environment Agency and the European Environment Information Network, provides for third country membership.

In line with the Commission communication "Agenda 2000" of 16.7.1997 and of the conclusions of the European Council in Luxembourg, the participation of the candidate countries in this agency is part of the reinforced pre-accession strategy, which assists these countries in their preparation for future accession to the Union.

This draft Council Decision aims at allowing the participation of the candidate countries in the EEA. The Council Decision lays down the terms and conditions, including the financial contributions from the candidate countries, and practical arrangements for participating in the EEA.

The participation of the candidate countries will not only contribute towards the implementation of the EU legislation relating to environment, but will also enable these countries to familiarise themselves with the procedures and methods used in the European Environment Agency. This in turn will lead to a more comprehensive environmental information system for the whole European continent.

4.2 Period covered

The agreements are concluded for an unlimited period until the candidate countries will become members of the European Union. However, the potential Community Assistance towards the membership fees of the participation of the candidate countries in the EEA will be limited only to the first three years of their participation in the Agency. It is expected that this three-year period will occur for most of the countries during the years 2001 to 2004.

5. Classification of expenditure or revenue

5.1 Non-compulsory expenditure

5.2 Differentiated appropriations

5.3 Type of revenue involved

As part of the enhanced pre-accession strategy the December 1997 Luxembourg European Council established that applicant countries should be permitted to participate in Community Agencies on a case-by-case basis.

The contribution will progressively increase in a 3-year period during which, the EEA activities will be phased in in these countries. They will be invited to pay their contribution for participating in the EEA according to the figures in Article 2 of the Agreement attached to the draft Council Decision. The same article states that the Community may cover part of a country's contribution during the three first years. The candidate countries may in that case contribute only in part from their national budget. The remaining part of their contribution may be taken from the relevant Community Assistance Programme allocations to each one of these countries.

In such a case the required Community Assistance will be charged to respective budget heading given under 2.1 and transferred to the countries by means of a separate Financing Memorandum. Together with the part coming from a country's State budget, these funds will constitute each country's national contribution, out of which it will make payments in response to annual calls for funds from the Commission. The total contributions, once paid by the candidate countries, will be transferred to item 6091 of the EU budget receipts.

6. Type of expenditure or revenue

-100% subsidy

-Subsidy for joint financing with other sources in the public and/or private sector

-No provision for all or part of the Community contribution to be reimbursed

-As far as revenue is concerned, provision for the contributions of the candidate countries to cover the cost of their participation is made under item 6091. The revenue will be allocated to the items for expenditure of the European Environment Agency. The yearly revenue expected per country is given in the table under item 7.1.

7. Financial impact

7.1 Method of calculating total cost of operation (relation between individual and total costs)

The cost of extending Agency activities to all Central and Eastern European candidate countries was estimated to be EUR 5,5 million. The estimate is based on the work programme of the Agency in 1999 and the real financial needs for including the candidate countries in the activities of the Agency.

These total costs have been apportioned to the Central and Eastern European candidate countries on a pro-rata basis using their national GDP. We use 1997 GDP figures of EUROSTAT as shown below.

The progressively increasing contributions by country.

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* Eurostat New Chronos Database as of February 1999

** Eurostat New Chronos Database as of March 2000

*** The cost per GDP unit was calculated by dividing the total GDP of CEECs and the total cost of EUR 5,5 million for these ten countries. The cost per GDP unit was then multiplied with the national GDP of each of these three countries.

The costs for the extension of the activities of the Agency to Malta, Cyprus and Turkey are based on the costs for the Central and Eastern Europe countries on a pro-rata basis using their national GDP.

Each candidate country may use part of its annual national PHARE or other Community assistance programme allocation during the first three years as a complement to its state budget to finance its contribution to the operational costs.

None of the candidate countries raised any objections to this method of calculation of the costs of extending the EEA operations to them.

7.2 Itemised breakdown of cost

The table below shows the proposed Phare or other Community fund contributions to the national contributions of the candidate countries. According the terms of the Agreements achieved with the candidate countries the Community fund contribution will be up to 75% of the cost of their first-year participation, up to 65% the second year and up to 50% the third. From the fourth year the full cost of their participation in the Agency shall be fully covered by the candidate countries themselves.

The maximum possible Community contribution which a given candidate country may use from its national Phare or other Community fund programme for this purpose is given by columns 5 to 7 of the following table:

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7.3 Operational expenditure for studies, experts etc. included in Part B of the budget

N.A.

7.4 Schedule of commitment and payment appropriations

Amounts to be charged to item B7-030; B7-040; B7-041; B7-050

The maximum commitment and payment appropriations per candidate country only for the first three years of their participation in the EEA is given by columns 5 to 7 of the table under item 7.2. The exact amounts will depend on the decision of the candidate countries to use their national Phare or other Community fund allocations for this purpose.

8. Fraud prevention measures

All the Commission's contracts, agreements and other legal commitments provide for on-the-spot checks by the Commission and Court of Auditors. Among other things, the beneficiaries of the operations are obliged to file reports and financial statements. These are analysed from the point of view of their content and the eligibility of the expenditure in line with the objective of Community financing.

The anti-fraud provisions of the basic budget headings apply to this heading too when adapted to the case of the candidate countries.

9. Elements of cost-effectiveness analysis

9.1 Specific and quantified objectives; target population

The aim of opening up European Environment Agency to the candidate countries is to bring about similar benefits as for Member States of the Community.

The overall objective of the EEA is to provide the Community with objective, reliable and comparable information on the environment. The specific objectives of the Agency are:

-to provide the Community and the Member States with the objective information necessary for framing and implementing sound and effective environmental policies;

-to assist the monitoring of environmental measures through appropriate support for reporting requirements with the aim of co-ordinating reporting;

-to advise individual Member States on the development, establishment and expansion of their systems for the monitoring of environmental measures

-to record, collate and assess data on the state of the environment, to draw up expert reports on the quality, sensitivity and pressures on the environment within the territory of the Community, to provide uniform assessment criteria for environmental data to be applied in all Member States, to develop further and maintain a reference centre of information on the environment. The Commission shall use this information in its task of ensuring the implementation of Community legislation on the environment;

-to promote the incorporation of European environmental information into international environment monitoring programmes such as those established by the United Nations and its specialised agencies;

-to publish a report on the state of, trends in and the prospects for the environment every five years, supplemented by indicator reports focusing upon specific issues;

9.2 Grounds for the operation

-Need for Community financial aid

In view of the cost of participation in the EEA and the budgetary situation in these countries, optional assistance from the Community is essential. The principle of Community funding was recognised as necessary in the Commission Communication of 20 December 1999 (COM (1999) 710 Final) in order to encourage early membership to Community Agencies of the candidate countries.

-Choice of ways and means

The integration of the candidate countries in the European Environment Agency work programme will contribute to the preparation of the candidate countries for future EU membership. It will also give the Community and these countries the necessary comparable data on the State of Environment in their territories in the perspective of an enlarged Union.

The Council mandate to the Commission for the negotiations on EEA membership stipulated that the Commission should offer to the candidate countries similar conditions for EEA membership as those offered to the EFTA countries participating in the Agency. The terms of the Agreement offered were taken from the EFTA agreement with the EEA.

-Main factors of uncertainty which could affect the specific results of the operation

Delays in the ratification of the bilateral agreements can result in a disruption of the on going co-operation and delay the full integration in the Agency's work programme.

9.3 Monitoring and evaluation of the operation

The monitoring and evaluation procedures relevant to Member State participation in the activities of the EEA will also be applicable to the candidate countries. Articles 13 and 14 of the EEA Regulation cover these procedures.

10. Administrative expenditure (Section III, Part A of the budget)

10.1 Effect on the number of posts

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10.2 Overall financial impact of the human resources

EUR

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(*) By using existing resources required to manage the operation (Calculation based on titles A1, A2, A4, A5 and A7)

Overall financial impact of the human resources (total) needed in the European Environment Agency (EEA)

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(*) The present calculation was based on year 2000 prices. In a long-term perspective these need to be updated according to price evolution.

The table shows the necessary staff increases under the hypothesis of all 13 applicant countries joining the EEA.

10.3 Increase in other administrative expenditure as a result of the operation

EUR

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