Proposal for a Council Regulation on development cooperation with South Africa

(95/C 235/05)

COM(95) 174 final - 95/0110(SYN)

(Submitted by the Commission on 12 May 1995)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130w thereof,

Having regard to the proposal from the Commission,

In cooperation with the European Parliament (1),

Whereas Community policy in the past towards South Afirca took the form of punitive measures involving a trade embargo and economic sanctions against the government that bore responsibility for a policy of apartheid, and also of positive measures to help the victims of apartheid under the special programme of assistance channelled via NGOs;

Whereas since the elections of April 1994 and the establishment of a democratic government the Community has turned towards a strategy of support for the policies and reforms undertaken by the South African authorities;

Whereas in its declaration of 25 May 1993 the Council expressed its support for the establishment of democratic institutions;

Whereas in the conclusions adopted on 19 April 1994 on future relations between the Community and South Africa the Council confirmed its support for stepping up cooperation with South Africa by focusing Community assistance on areas of activity likely to improve the living conditions of the people, and especially the poorest sections of the population;

Whereas the aim of the Agreement on cooperation between the European Union and South Africa signed in Pretoria in October 1994 is to promote harmonious and sustainable social and economic development and constitutes the first stage in the establishment of long-term cooperation with South Africa for which a proposal for negotiating directives was submitted by the Commission to the Council on 31 March 1995 (2);

Whereas the budgetary authority has decided in the framework of the 1986 budget, to create a budget line to support development actions in this country;

Whereas the arragements for administering the financial resources set aside by the Community for implementing such cooperation should be laid down,

HAS ADOPTED THIS REGULATION:

Article 1

The Community shall implement financial and technical cooperation with South Africa under a European Programme for Reconstruction and Development in South Africa, the aim of which shall be to contribute to South Africa's sustainable economic and social development and to consolidate the foundations laid for a democratic society.

Within this context the Community shall support operations to help the poorest sections of the population in South Africa.

Article 2

In operations carried out under this Regulation priority shall be given to the following: education and training; health; urban and rural development; support and cooperation with the private sector, and in particular for small and medium-sized enterprises; institution building and the organization of local communities; democratization and the protection of human rights.

Article 3

Cooperation agents eligible to receive financial assistance under this Regulation shall be national, provincial and local authorities and public bodies, non-governmental organizations and local communities, regional and international organizations, institutions and private operators.

Article 4

1. The means that may be deployed under the operations referred to in Article 1 shall include studies, technical assistance, training or other services, supplies and works, and also evaluation and monitoring audits and missions.

2. Community financing may cover capital expenditure, excluding the purchase of real estate, together with running costs, either in foreign exchange or in local currency, in accordance with requirements as implementation proceeds.

3. Systematic efforts shall be made to obtain a contribution, notably of a financial nature, from the agents or partners who will be the ultimate beneficiaries of an operation (national authorities, local communities, companies or others), within the limits of their capacity and according to the nature of each operation.

4. Opportunities will be sought for cofinancing, particularly with the Member States. Necessary measures will be taken to emphasize the Community character of aid provided under this Regulation.

5. In order to reinforce coherence and complementarity between the actions financed by the Community and those financed by the Member States, with the aim of guaranteeing optimal efficiency of the totality of these actions, the Commission will take all necessary coordination measures, notably:

(a) the establishment of a system for the systematic exchange of information on actions financed by the Community and the Member States;

(b) on-the-spot coordination of these actions by means of regular meetings and exchange of information between the representatives of the Commission and Member States in the beneficiary country.

Article 5

Financial support under this Regulation shall take the form of grants.

Article 6

The operations referred to in Article 2 shall be carried out where possible under a multiannual indicative programme based on specific objectives.

Article 7

1. The Commission shall be responsible for appraising, taking decisions on and managing operations conducted under this Regulation, in accordance with the budgetary and other procedures in force, notably those laid down in the Financial Regulation applicable to the general budget of the European Communities.

2. Decisions concerning any operation financed under this Regulation at a cost of over ECU 2 million, or any adjustment of such an operation involving an increase of over 20 % of the amount initially agreed, shall be adopted by means of the procedure stipulated in Article 8.

3. All financing agreements or contracts concluded under this Regulation shall provide for on-the-spot checks by the Commission and the Court of Auditors in accordance with the usual arrangements established by the Commission pursuant to the rules in force, in particular those laid down in the Financial Regulation applicable to the general budget of the European Communities.

4. Where operations involve financing agreements between the Community and the recipient country, such agreements shall stipulate that taxes, duties and charges shall not be borne by the Community.

5. Participation in invitations to tender and contracts shall be open on equal terms to all natural and legal persons of the Member States and the recipient country. Participation may be extended to include other developing countries.

6. Supplies shall originate in the Member States or the recipient country, or in other developing countries. In duly substantiated exceptional cases they may originate in other countries.

Article 8

1. The Commission shall be assisted by a committee to be known as the 'South Africa Committee`, consisting of representatives of the Member States and chaired by the representative of the Commission.

2. The Commission representative shall present to the Committee a draft of measures to be adopted. The Committee shall deliver its opinion on the draft, within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority stipulated in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The chairman shall not vote.

The Commission shall adopt measures which apply immediately. However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by the Commission to the Council forthwith. In that event the Commission may defer application of the measures which it has adopted for a period of not more than one month from the date of such communication.

The Council, acting by a qualified majority, may take a different decision within the time limit referred to in the previous paragraph.

Article 9

After each financial year the Commission shall present a report to Parliament and the Council summarizing operations financed and evaluating the implementation of this Regulation during the year.

The summary shall contain information concerning the agents with which contracts in implementation of this Regulation were concluded.

The report shall also include a summary description of external evaluations carried out, where appropriate, in respect of specific operations.

Article 10

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

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

(1) Opinion delivered on (OJ No . . ., . . ., p. . . .) and Decision of (OJ No . . ., . . ., p. . . .)

(2) SEC(95) 486 final.