A4-0097/99

Proposal for a Council Decision providing macro-financial assistance to Bosnia and Herzegovina (COM(98)0652 - C4-0704/98 - 98/0311(CNS))

The proposal was approved with the following amendments:

(Amendment 1)

Recital 2

>Original text>

Whereas Bosnia and Herzegovina is undertaking fundamental institutional and political reforms to establish common institutions and policies; whereas Bosnia and Herzegovina is making substantial efforts to promote economic reform and establish an open market economy;

>Text following EP vote>

Whereas Bosnia and Herzegovina is undertaking fundamental institutional and political reforms to establish common institutions and policies; whereas Bosnia and Herzegovina is making substantial efforts to promote economic reform and establish an open market economy

, which is essential in order to create jobs, improve living conditions for the people and allow the return of refugees and displaced persons;

(Amendment 2)

Recital 9a (new)

>Original text>

>Text following EP vote>

Whereas the Commission will ensure that use of the financial assistance complies with the rules of strict Community budgetary control;

(Amendment 3)

Recital 10

>Original text>

Whereas a Community macro-financial assistance to Bosnia and Herzegovina is an appropriate measure to help ease the country¨s external financial constraints, supporting the balance of payments and strengthening the reserve position;

>Text following EP vote>

Whereas a Community macro-financial assistance to Bosnia and Herzegovina is an appropriate measure to help ease the country¨s external financial constraints, supporting the balance of payments and strengthening the reserve position

, but particularly to ensure that the administration functions effectively and to satisfy the fundamental social needs of the population;

(Amendment 4)

Recital 10a (new)

>Original text>

>Text following EP vote>

Whereas the strengthening of Bosnia and Herzegovina's common institutions and reform of its economic system are two of the priorities identified by the Peace Implementation Conference held in Madrid in December 1998;

(Amendment 5)

Recital 10b (new)

>Original text>

>Text following EP vote>

Whereas the statement by the European Union on Bosnia and Herzegovina of 8 June 1998 recognises that the future of the country lies with Europe and whereas the EU and Bosnia and Herzegovina have decided to step up their cooperation through a joint advisory Task Force;

(Amendment 6)

Recital 10c (new)

>Original text>

>Text following EP vote>

Whereas the EU and Bosnia and Herzegovina should see their cooperation, using the various instruments available to them, in a long term context (2000-2006);

(Amendment 7)

Recital 12

>Original text>

Whereas the inclusion of a grant component in this assistance is without prejudice to the powers of the budgetary authority;

>Text following EP vote>

Whereas the inclusion of a grant component in this assistance is

subject to the decision of the budgetary authority;

(Amendment 8)

Article 1(3)

>Original text>

3. The grant component of this assistance shall amount to a maximum of ECU 30 million for the 1998-99 period.

>Text following EP vote>

3.

The grant component of this assistance shall amount to a maximum of EUR 30 million for the 1999-2000 period. It shall be allocated by the budgetary authority as a complement to the loan, within the limits of the current financial perspective.

(Amendment 9)

Article 1(4)

>Original text>

4. The Community financial assistance shall be managed by the Commission in close consultation with the Monetary Committee and in a manner consistent with any agreement reached between the IMF and Bosnia and Herzegovina.

>Text following EP vote>

4.

The Community financial assistance shall be managed by the Commission in close consultation with the Monetary Committee in accordance with the principles of sound and efficient management and the rules of strict budgetary control and in a manner consistent with any agreement reached between the IMF and Bosnia and Herzegovina.

(Amendment 10)

Article 2(2)

>Original text>

2. The Commission shall verify at regular intervals, in collaboration with the Monetary Committee and in coordination with the IMF, that the economic and institutional policy in Bosnia and Herzegovina is in accordance with the objectives of this macro-financial assistance and that its conditions are being fulfilled.

>Text following EP vote>

2.

The Commission shall verify at regular intervals, in collaboration with the Monetary Committee and in coordination with the IMF, the Office of the High Representative and CAFAO, that the government institutions of Bosnia and Herzegovina are operating satisfactorily, that the country's economic policy is in accordance with the objectives of this macro-financial assistance and that its conditions are being fulfilled.

(Amendment 11)

Article 5(-1) (new)

>Original text>

>Text following EP vote>

The Commission shall inform the European Parliament before releasing the second tranche of the financial assistance.

(Amendment 12)

Article 5

>Original text>

At least once a year the Commission shall address to the European Parliament and to the Council a report, which will include an evaluation on the implementation of this Decision.

>Text following EP vote>

At least once a year

, before 15 September, the Commission shall address to the European Parliament and to the Council a report, which will include an evaluation on the implementation of this Decision.

Legislative resolution embodying Parliament's opinion on the proposal for a Council Decision providing macro-financial assistance to Bosnia and Herzegovina (COM(98)0652 - C4-0704/98 - 98/0311(CNS))(Consultation procedure)

The European Parliament,

- having regard to the Commission proposal to the Council, COM(98)0652 - 98/0311(CNS) ((OJ C 396, 19.12.1998, p. 16.)),

- having been consulted by the Council pursuant to Article 235 of the EC Treaty (C4-0704/98),

- having regard to Rule 58 of its Rules of Procedure,

- having regard to the report of the Committee on Foreign Affairs, Security and Defence Policy and the opinions of the Committee on Budgets and the Committee on External Economic Relations (A4-0097/99),

1. Approves the Commission proposal, subject to Parliament's amendments;

2. Calls on the Commission to alter its proposal accordingly, pursuant to Article 189a(2) of the EC Treaty;

3. Asks to be consulted again should the Council intend to make substantial modifications to the Commission proposal;

4. Instructs its President to forward this opinion to the Council and Commission.