Common Position (EC) No 3/2001

adopted by the Council on 10 November 2000

with a view to adopting a Regulation of the European Parliament and of the Council of ... regarding the closure and liquidation of projects adopted by the Commission under Regulation (EC) No 213/96 on the implementation of the European Communities investment partners Financial Instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa

(2001/C 23/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 179(1) thereof,

Having regard to the proposal from the Commission(1),

Acting in accordance with the procedure laid down in Article 251 of the Treaty(2),

Whereas:

(1) Council Regulation (EC) No 213/96 of 29 January 1996 on the implementation of the European Communities investment partners Financial Instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa(3) expired on 31 December 1999.

(2) Using Regulation (EC) No 213/96 as a basis, the Commission has approved the financing of a number of projects which have not yet been fully completed and which may require further sums to be committed so that they can be closed.

(3) The many investment instruments managed by the Commission (Al-Invest, Asia-Invest, Med-Invest, JOP, JEV and Proinvest) lack a centralised, coordinated and coherent organisational structure.

(4) This transitional measure should serve not only to ensure compliance with the commitments entered into by the Commission up to 31 December 1999, but also to lay the foundations for a future, integrated programme for the promotion of investment in all developing countries.

(5) The Commission should be empowered to take the steps necessary to allow the existing project portfolio to be liquidated,

HAVE ADOPTED THIS REGULATION:

Article 1

1. The Commission shall take the steps needed to close and liquidate the projects adopted under Regulation (EC) No 213/96.

2. Those steps shall include any action required, pursuant to Regulation (EC) No 213/96 with the aim of liquidating the existing portfolio, to provide monitoring, management and auditing of operations for which the Commission has already adopted a financing decision, including the amendment of contracts already signed and the use of outside technical assistance.

Article 2

As soon as possible and at the latest by 31 March 2001, the Commission shall submit a report to the European Parliament and to the Council on the instrument for supporting the private sector in developing countries, followed, as soon as possible, by a legislative proposal to ensure the future of that instrument.

Article 3

This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

It shall apply until 31 December 2001.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at ...

For the European Parliament

The President

For the Council

The President

(1) OJ C 150 E, 30.5.2000, p. 79.

(2) Opinion of the European Parliament of 5 September 2000 (not yet published in the Official Journal), Council Common Position of 10 November 2000 (not yet published in the Official Journal) and Decision of the European Parliament of ... (not yet published in the Official Journal).

(3) OJ L 28, 6.2.1996, p. 2.

STATEMENT OF THE COUNCIL'S REASONS

I. BACKGROUND

1. On 14 February 2000, the Commission submitted to the Council a proposal for a regulation, based on Article 179 (1) of the EC Treaty, laying down the conditions to close and liquidate projects adopted by the Commission under Council Regulation (EC) No 213/96 on the implementation of the European Communities investment partners Financial Instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa.

The activities in promoting Community investment in developing countries are carried out under the budget headings B7-8 7 2, B7-8 7 2 A and A0-7 0 0 2.

2. The European Parliament (after its first reading) delivered its opinion on 5 September 2000.

3. On 10 November 2000 the Council adopted its Common Position in accordance with Article 251 of the EC Treaty.

II. PURPOSE OF THE PROPOSAL

The objective of this proposal is to ensure the closing down and liquidation of projects adopted by the Commission under Regulation (EC) No 213/96 after its expiry on 31 December 1999. In order to ensure proper management and closure of these operations, technical assistance (technical assistance offices and audits) as well as other expenditure require additional financing. After the expiry of Regulation (EC) No 213/96 on 31 December 1999 no further financing had been given for new operations.

III. ANALYSIS OF THE COMMON POSITION

1. General remarks

The Council has been able to accept two of the three amendments proposed by the European Parliament (see point 2.2). Where the Council was unable to accept Parliament's amendment it was for practical reasons.

In its Common Position the Council has approved the wording of the Commission's proposal and Parliament's amendments with the exception of Article 2. In its new Article 2, the Council brought together both elements, the Commission's report and Parliament's amendment for a new legislative proposal and put them in a realistic timetable.

2. Specific comments

2.1. Parliament amendments adopted by the Council

The Council adopted in full the first two amendments which the Commission also accepted, and in essence the Amendment 3, i.e. to ask the Commission to submit a legislative proposal. The Commission, however, rejected this amendment.

2.2. Parliament amendments not adopted by the Council

Taking into account that the Commission could not accept Parliament's Amendment 3 for practical reasons (deadline), the Council could not accept the form of presentation of this amendment for the reason that it wanted:

- to combine with the requested legislative proposal also the submission of a report on the financing instruments (see Article 2 of the Commission proposal), and

- to fix a timing which makes it possible for the Commission to establish the report (at the latest by 31 March 2001) and to submit a legislative proposal (as soon as possible after the report) to ensure the future of this instrument.

IV. CONCLUSIONS

The Council considers that its Common Position constitutes a balanced text to ensure the closing down and liquidation of projects adopted by the Commission under Council Regulation (EC) No 213/96 after its expiry on 31 December 1999. Considering the period to cover financial arrangements (1 January 2000 to 31 December 2001) it reflects the need to meet the Community's commitments for proper management.