PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 3906/89 IN ORDER TO EXTEND ECONOMIC AID TO OTHER COUNTRIES OF CENTRAL AND EASTERN EUROPE
Date: 1990-07-06
Institutions: European Commission
Subjects: Central and Eastern European countries, economic aid

COMMISSION  OF  THE  EUROPEAN  COVfMUNITIES 

COMC90) 318 final 

Brussels, 6  July 1990 

Proposal for a 

COUNCIL REGULATION (EEC) 

amending  Regulation  (EEC) N*  3906/69  in order to 
extend  eoonomio aid to other  countries  of  Central 
and  Eastern  Europe 

(presented by the Commission) 

gEplflyfttOTY  fflr^Tgrfrm 

Following the Arche Summit in Paris on 14 and 16 July 1989, which saw the 
starb-up of coordinated measures by 24 QB3) countries to aid economic 
instructing in Poland and Hungary, the Council adopted Peculation (EEC) 
Ho 3906/89 and HU  300 million was mrmrkerl for 1âiis purpose in tie 1990 
Community budget. 

Since then, other countries of Central and Eastern Europe nave moved 
towards democracy and nave taken or committed 1±»emselves to taking steps to 
set up market economies.  At the special meeting of ISbe European Council in 
Dublin on 28 April, the ComrnissloTi presented an action plan Which was veil 
received.  Tbe  European Council agreed that the Group of 24 should be asked 
to extend the measures to the German Democratic Republic, Chechoslovakia, 
Yugoslavia, Bulgaria and Romania.  A decision is expected at the 
ïïiimaterial meetlrg of the Group of 24 on 4 July; Romania, however, will be 
exaiurted in view of recent events.  "While keeping Bomania an ttoe list of 
recipient countries, the Qjmmlssion is thus prepared to implement economic 
aid for that country only if the circumstances permit, taking into account 
particularly whether the Council has made a decision on the signature of 
the cooperation agreement vita Remania. 

With a view to tills extension, the 1090-92 financial perspectives have been 
revised and a supplementary budget for 1990 that increases appropriations 
from ECU 200 million to KSJ 600 million and converts them into 
differentiated appropriations is about to be adopted. 

The Commission proposes to keep amendments to Regulation (BBC) Ho 3906/89 
to the strict minimum and not make any changes of substance, other than to 
take in food aid and other humanitarian measures. 

For the sake of clarity and in order to conform to the drafting rules 
concerning the delegation of responsibility for execution, the Gcrnimlssion 
is proposing a re-^worded Article 8 which will take full account of the 
guidelines determined when Regulation (EBG) No 3906/89 was adopted. 

It is also proposed to drop the mention of the appropriations allocated to 
the operation in order to turlcrline its miltiannual nature. 

Lastly* the Osmnissdon draws the Council's attention to tfte urgency of this 
Regulation, since the Financial Regulation requires in principle that the 
Ocmmlssicn commit the appropriations entered in the general budget by the 
end of the financial year. 

ïiie Commission is furthermore Informiez the Council of its wish to 
administer, under the Article of the budget earmarked for the countries of 
Central and Eastern Europe, humanitarian aid and contributions to the 
operations of nongovernmental organizations, in accordance with the iules 
normally applicable and using a portion of the planned appropriations which 
does not exceed 8% in total. 

, proposai  f o ra 

OCPHCIL KFRnj/TÏÏ» 

ampffirttng  Bqgulation  CEHC) Ho 3906/89 lu  order  to 
extend  economic  aid  to  other  countries  of  Central 
* fm  JBST35ED.  wJU^vrpP 

THE COUNCIL OF THE EDHOPEAK OOMMfflOTIES, 

Raving  regard  to  the  Treaty  establishing  the  European  Economic  Community, 
and  in  particular  Article  235  iftereof, 

EaviDg regard  to  the  proposal  from  the  Commission, 

laving  regard  to  the  Opinion  of  Parliament,1 

Ihereas  the  Community  and  i ts  Member  States  have  decided  to  take  concerted 
action  with  certain  non-member  countries  in  the  form  of  measures  intended 
to  support  the  process  of  economic  and  social  reform  under  way  in  Hungary 
and  Poland;  whereas  Council  Regulation  (ESS)  Ko 3906/89  of  18 December  1989 
lays  down the  conditions  for  the  provision  of  economic  aid  to  these 
countries;2 

TShereas the  Group  of  24  countries  and  the  Community decided  at  the 
ministerial  meeting  on  4  July  tftat  the  situation  in  certain  other  countries 
of  Central  and  Eastern  Europe  warranted  an  extension  of  the  economic 
restructuring  aid  to  these  countries; 

Whereas  provision  must  be  made for  appropriate  Community  financing, 

HAS ADOPTED *"ny EEGŒLAEECN: 

Article 

I 

Regulation (EEC) Ko 3906/89 is hereby amender! as follows: 

1.  The title shall be replaced by the following: 

"Council Regulation (EEC) Ko 3906/89 of 18 December 1989 on economic 
aid to certain countries of Central and Tfo*gt*?m Europe.N 

1 
2 

Opinion delivered... 
O JL 375, 23.12.1989, p. 11. 

-2-

2.  Article 1 shall be replaced by the following: 

"Article  1 

The Community shall  make economic  aid  available  to  the  countries  of 
Central  and Europe l i s t ed  in  the  annex in  accordance  with  the  criteria 
laid  down in  this  Regulation. * 

3.  Article  2  shall  be  deleted;  Articles  3  to  11  shall  become Articles  2 

to  10. 

4. 

The  terms  "in Hungary and Poland* ,  "in Poland  and Hungary" and  "of 
Poland and Hungary"  in  Article  3(1)  CtoAce).  Article  7(1)  and  Article 
9(1)  shall  be  replaced  respectively  by  "in  Hie  countries  of  Central 
and Eastern  Europe" and  "of  the  countries  of  Central  and  Eastern 
Europe". 

5.  A third  subparagraph,  worded as  follows,  shall  be  added  to  Article 

3(1): 

The  aid  may also  be  used  to  provide humanitarian  assistance» 
particularly  in  the  farm  of  foodstuffs  for  those  experiencing  severe 
supply  problems". 

6.  A second  subparagraxti,  worded as  follows,  shall  be  added  to  Article 

3(2): 

"In the  allocation  of  funds,  account  shall  be  taken  of  other  Community 
financial  resources  which may be  available  to  the  countries 
concerned.1* 

7.  Article  8  shall  be  replaced  by  the  following: 

Ihe  general  guidelines  applicable  to  the  aid,  to  sector-based 
programmes and to  measures  which because  of  there  scale  are 
comparable  in  importance  to  the  aid  or  programmes,  shall  be 
adopted  in  accordance with  the  procédure  s et  out  in  Article  9(a) 
and  9(3). 

2.  Other measures, notably those referred to  ±n the third 

subparagraph of Article 3(1), shall be adopted by the Commission.u 

Article 

2 

This Regulation shall enter into force on ta» 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. 

Done at Brussels, 

For tbe Council 
The President 

S 

Bulgaria 

Czechoslovakia 

German Democratic Republic 

Hungary 

Poland 

Yugoslavia 

FEHANTJAL  STA'i'fflWP 

1.  Mlgfît  ï w V *^ 

Article  996  -  countries  of  Central  and Eastern  Europe  -
BCtJ 500  minion 

2. 

I/=gal  Tiajgl^ 

Article  235  of  the  Treaty 

3. 

Pflacalniâ.an  of  mofv^rr^ 

General  programme  of  aid  to  the  countries?  of  Central  and  Eastern 
Europe 

4. 

firounflfi 

Reform of the financial system is an essential component of eccaiainic 
restructuring. 

The countries of Central and Eastern Europe require financial aid from 
the Community to assist them in pursuing democratization and economic 
reform. 

5.  FLmooml  impact 

E3J 500 million  in  commitment  appropriations  and B37 550 minion  In 
payment  appropriations  for  the  year  1990. 

ISSN 0254-1475 

COM(90) 318 final 

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