COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 27.02.1998 
COM(1998) 105 final 
98/0073 (ACC) 
Proposal for a 
COUNCIL DECISION 
on the position to be taken by the Community within the Association Council 
established by the Europe Agreement signed on 19 December 1994 between the 
European Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, with regard to the extension for a further period of five 
years in accordance with the provisions of Article 64 § 4(a) of the Europe 
Agreement 
(presented by the Commission) 

EXPLANATORY MEMORANDUM 
Extension for a further five year period in accordance with the provisions of Article 
04 § 4(a) of the Europe Agreement 
1. Article 64, paragraph 4 (a) of the Europe Agreement with Slovakia provides that, 
for the purpose of applying certain provisions relating to public aid, during the 
first five years after the entry into force of the Agreement any public aid granted 
by Slovakia shall be assessed taking into account the fact that Slovakia shall be 
regarded as an area identical to those areas of the Community eligible for state aid 
pursuant Article 92(3) (a) of the Treaty establishing the European Economic 
Community. 
2. The period of five years referred above expired on 2 March 1997. 
3. In accordance with the last sentence of article 64(4)(a) of the Europe Agreement, 
the Association Council shall, taking into account the economic situation of 
Slovakia, decide whether that period should be extended for a further five years. 
4. On 14 July 1997, Slovakia requested the extension of the above-mentioned 
provisions. 
5. The main critérium for considering an area eligible for regional aid pursuant to 
Article 92(3)(a) provisions is that GDP per capita should be less than 75% of the 
average GDP of the EU-15, measured in PPP termsl. 
6. The Commission has examined the requests on the basis of the figures and 
information available for Slovakia. The data shows that in the case of 
Slovakia GDP/capita measured in Purchasing Power Parities (PPP) 
reaches 41% of the Community average in 1995. No data is available on GDP 
on a regional basis. However, it is reasonable to assume that no Slovak region is at 
present over the 75% ceiling mentioned above. 
7. Based on the above, the Commission believes that the figures available provide 
sufficient grounds for granting an extension to Slovakia. However, the 
Commission should be provided with the necessary regional data to assess 
OJ C212/of 12.8.1988 and C163/6 of 4.7.1990 
whether, in the future, Slovakia will not exceed the ceiling of 75% of the 
Community's average GDP which is required in order to benefit from 92(3)(a) 
status. 
This extension will not be applicable to products covered by Protocol 2 of the 
Europe Agreement, which will be the object of a separate examination and 
procedure. 
The Commission therefore requests the Council to adopt the attached proposal for 
a Council Decision. 
3 
Proposal for a Decision of the Council 
on the position to be taken by the Community within the Association Council 
established by the Europe Agreement signed on 19 December 1994 between the 
European Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, with regard to the extension for a further period of five 
years in accordance with the provisions of Article 64 § 4(a) of the Europe 
Agreement 
The Council of the European Union, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 in conjunction with the first sentence of Article 228(2) thereof, 
Having regard to the proposal of the Commission of the European Communities, 
Whereas the European Community and its Member States concluded the Europe 
Agreement with the Slovak Republic on 01.02.95; 
Whereas Article 64(4)(a) of the Europe Agreement lays down that the Association 
Council shall, taking into account the economic situation of Slovakia, decide whether the 
period within which any public aid granted by Slovakia shall be assessed taking into 
account the fact that Slovakia shall be regarded as an area identical to those areas of the 
Community described in Article 92(3)(a) of the Treaty establishing the European 
Economic Community should be extended for a further five years; 
HAVE DECIDED AS FOLLOWS: 
The position to be taken by the Community within the Association Council established 
by the Europe Agreement signed on 16 December and their Member States, of the one 
part, and the Slovak Republic, of the other part, with regard to the extension for a further 
five years in accordance with Article 64 § 4(a) shall be based on the draft decision of the 
Association Council annexed to this Decision. 
Done at Brussels on 
For the Council 
U 
Association between the European Union 
and the Slovak Republic 
The Association Council 
Draft decision n°.../...of the Association Council between the European 
Communities and their Member States, of the one part, and the Slovak Republic, of 
the other part, of .../..adopting the extension of five years of the period within which 
any public aid granted by Slovakia shall be assessed taking into account the fact 
that Slovakia shall be regarded as an area identical to those areas described in 
Article 92(3)(a) of the Treaty establishing the European Economic Community 
The Association Council, 
Having regard to the Europe Agreement establishing an association between the 
European Communities and the Member States of the one part, and the Slovak Republic 
of the other part, and in particular Article 64(4)(a) thereof, 
Whereas Article 64(4)(a) of the Europe Agreement lays down that the Association 
Council shall, taking into account the economic situation of Slovakia, decide whether the 
period within which any public aid granted by Slovakia shall be assessed taking into 
account the fact that Slovakia shall be regarded as an area identical to those areas of the 
Community described in Article 92(3)(a) of the Treaty establishing the European 
Economic Community should be extended for a further period of five years, 
HAS DECIDED AS FOLLOWS: 
Article I 
The period within which any public aid granted by Slovakia shall be assessed taking into 
account the fact that Slovakia shall be regarded as an area identical to those areas of the 
Community described in Article 92(3)(a) of the Treaty establishing the European 
Economic Community is extended for a further period of five years, 
Article 2 
Within two years from the date of the extended period of five years enters into force and 
thereafter annually until the end of the five year period, Slovakia will provide the 
European Commission with the necessary regional data to assess, according to the 
method used by the Commission, whether Slovakia continues to fulfil the conditions to 
be regarded as an area identical to those areas of the Community described in Article 
92(3)(a) of the Treaty establishing the European Economic Community. 
Done at Brussels on 
The Secretaries For the Association Council 
The President 

ISSN 0254-1475 
COM(98) 105 final 
DOCUMENTS 
EN 11 08 01 02 
Catalogue number : CB-CO-98-108-EN-C 
ISBN 92-78-31339-4 
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