Proposal for a COUNCIL REGULATION (EEC) extending Council Regulation (EEC) No 792/93 of 30 March 1993 establishing a cohesion financial instrument
Date: 1993-10-28
Institutions: European Commission
Subjects: Single European Act, Treaty on European Union, environmental protection, intra-EU transport, transport infrastructure

COMMISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(93) 529  f ma I 

Brussels, 28 October  1993 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

extending Council  Regulation  (EEC) No 792/93 of 
30 March  1993 establishing a cohesion  financial  instrument 

(presented  by  the Commission) 

z 

Explanatory  memorandum 

By Regulation  (EEC) No 792/93 of  30 March  1993 the Council  set up the 
cohesion  financial  instrument  which,  for  a  limited period, provides a 
transition to the Cohesion Fund. 

The purpose of  this proposal  is to extend  the above mentioned Regulation 
until  31 December  1994. 

This proposal  is based primarily on  the need  for continuity between  the two 
instruments. Such continuity  is provided  for  in Article  11 of  the Regulation 
and  in a statement  annexed  thereto to the effect  that  "continuity  between 
the temporary  instrument  tncl vhe final  instrument  is to be ensured  if 
necessary  by extending  the temporary  instrument". 

Moreover, the ratification of  the Treaty on European Union has been  less 
rapid  than  initially envisaged,  which makes  it difficult  to apply Article 
130d under which  the Council, acting unanimously,  is to set up a Cohesion 
Fund before  31 December  1993. 

As far as the beneficiary Member  States are concerned, they must  have a 
period  in which  to prepare  their  projects  if continuity  is to be ensured. As 
the  legislation stands at present, this preparatory  phase  is threatened by 
the uncertainty  regarding 1994. 

Extension will  also have the effect  of doing away with  the  limitation of 
commitments  to the first  quarter  of 1994. 

Proposal  for a Council  Regulation  (EEC) 
extending Council  Regulation  (EEC) No 792/93 of 
30 March  1993 establishing a cohesion  financial  instrument 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having  regard  to Council  Regulation  (EEC) No 792/93 of  30 March  1993 
establishing  a cohesion  financial  instrument, and  in particular  Article 11 
thereof, 

Having  regard  to the proposal  from the Commission, 

Whereas continuity should be ensured  between  the cohesion  financial 
instrument  and  the Cohesion Fund, 

Whereas such continuity can exist only  if the beneficiary Member  States are 
enabled  to prepare projects sufficiently  in advance; 

Whereas,  in accordance with  the conclusions of  the Edinburgh  European 
Council  and Article 8(3) of Regulation  (EEC) No 793/92, projects submitted 
must  be of a sufficient  scale  to have a significant  impact  in the fields of 
environmental  protection or  in the  improvement of  trans-European  transport 
infrastructure networks; 

Whereas  the Member  States concerned  should  be enabled  to fulfil  this 
object ive, 

HAS ADOPTED THIS REGULATION: 

Art icle 1 

In Article  11 of Regulation  (EEC) No 792/93 the date of  1 April  1994  is 
replaced  by  the date of  31 December  1994. 

Art icle 2 

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

This Regulation shall  be binding  in  its entirety and directly applicable ; 
a I I Member States, 

Done at Brussels, 

For  the CounciI 
The President 

1 

FINANCIAL  STATEMENT 

SECTION 1: FINANCIAL  IMPLICATIONS 

1.  Title of operation 

Cohesion Fund 

2.  Budget  heading  involved 

B2.300 

3.  Legal  basis 

Council  Regulation  (EEC) No 792/93 of  30 March  1993 establishing a 
cohesion  financial  instrument,  and  in  particular  Article 11 
thereof. 

4.  Description of  operation 

4.1  Specific objectives of operation 

To extend  the above-mentioned Regulation until  31 December  1994 
with a view  to ensuring  the continuity of  financing. 

4.2 Durât ion 

1994 

4.3 Target  population 

Greece, Spain,  Ireland and Portugal. 

5.  Classification of expenditure 

5.1 Non-compuIsor y 

5.2 Differentiated appropriations 

5.3 Not applicab le 

6.  Type of expenditure 

Subsidy  for  joint  financing  of  projets  with  other  sources  in  the 
public and/or  private sector 

7.  Financial  impact 

7.1  Method of calculating  total  cost of operation 

The  financial  resources  of  the  cohesion  financial  instrument 
are  the  same  as  those  provided  for  the  Cohesion  Fund  in  the 
financial  perspective 
The  1994 PDB provides  for  ECU  1 853 million at  1992 prices. 

ST 

8.  What  ant i-fraud  measures  are  planned  in  the  proposal  for  the 

operation? 

9. Elements of cost-effectiveness analysis 

9•1 Oblect ives 

The  objective  of  the  cohesion  financial  instrument  is  to 
contribute  funding  to  projects  concerning  the  environment  and 
trans-European networks  in the area of  transport  infrastructure 
in  the Member  States whose  per  capita  GDP  is  less  than 90% of 
the  Community  average,  measured  on  the  basis  of  purchasing 
power  parity,  i.e.  Spain, Greece,  Ireland  and  Portugal.  Each 
of  these  Member  States  has  presented  a  convergence  programme 
designed  to prevent  an excessive public deficit. 

9.2. 

Grounds  for  the operation 

Article  130d  of  the  Treaty  on  European  Union  provides  for  the 
Council  to  set  up  a  Cohesion  Fund  to  provide  a  financial 
contribution  to  projects  in  the  fields  of  environment  and 
trans-European  transport networks. 

In  accordance  with  the  conclusions  of  the  European  Council's 
meeting  in Edinburgh on  11 and  12 December  1992, the Commission 
presented  a  draft  Regulation  on  a  temporary  cohesion 
instrument. On 30 March  1993 the Council  adopted  the Regulation 
establishing  the  cohesion  financial  instrument,  which  entered 
into force on  1 April  1993. 

During  the  negotiations  on  the  above-mentioned  Regulation  it 
was  declared  that  continuity  between  the  temporary  instrument 
and  the  definitive  instrument  would  be  ensured,  if  necessary, 
by  extending  the  temporary  instrument  for  a  limited  period. 
Article  11 of  the Regulation of 30 March  1993 provides  for this 
extension possibility. 

In  point  6  of  the  explanatory  memorandum  in  document  C0M(92) 
599  final  of  23  December  1992  the  Commission  stated  that  th? 
cohesion  financial  instrument  should  be  reviewed  before 
31 December  1993  in  the  light  of  the  progress  on  ratification 
of  the Maastricht  Treaty. 

9.3. 

Monitoring and évaluat ion of  t he ope r a tIon 

1.  The  Commission  carr-es  out  a  systematic  as-oscment  of  the 

projects  in collaboration with  the beneficiary  Member States. 

The  Commission  cooperates with  I he EiB  In ''hit ~-: ^cssm-o^t #hcn 
appropriate.  As  soon  as  the  aid  application  «:.., ?eceiv:.)d,  s. he 
Ccmiuscsion 
Stat-Lî witr. reference  to the followina t,r i -r.r U: 

«riustes  the  prrjects  preror-ïef'  by  ^e  fSmbe" 

€ 

their  medium-term  economic  and  social  benefits,  which 
should  be  proportionate  to  the  resources  mobilized;  this 
assessment  is based on  a cost-benefit  analysis  drawn up by 
the Member States-, 

the  contribution  which  the  projects  can  make  to  the 
implementation of  the Community's policies  in the fields of 
environment  and trans-European networks; 

the  establishment  of  an  appropriate  balance  between 
environment  and transport. 

The  Commission  verifies  the  expected  impact  of  the  project  on 
the basis of  a cost-benefit analysis. 

The  beneficiary  Member  States  concerned  provide  all  the 
necessary  information,  including  the  results  of  feasibility 
studies  and  ex-ante  assessment, so  that  the  evaluation  can  be 
carried out  as effectively as possible. 

The  Commission  also  examines  applications  for  assistance, 
particularly  in order  to ascertain  that  the  administrative  and 
financial  mechanisms can ensure effective  implementation. 

2.  For  the purposes of  the Regulation, the Member  States  concerned 
forward  to  the  Commission  a  description  of  the  management  and 
control 
arrangements  set  up  to  ensure  the  effective 
implementation of  the projects. 

They  must  also  inform  the  Commission  of  all  cases  of 
irregularities  discovered  or  which  are  the  subject  of  legal 
proceed ings. 

3.  The  implementation of projects  is monitored  by means of: 

statements  presented  with  applications  for  payment, 
certifying  that  the  project  is progressing  satisfactorily 
towards  completion  and  that  expenditure  has  been  carried 
out  in accordance with  the details  in the financing  plan; 

reports  drawn up  in accordance with  procedures  agreed  with 
the  Member  State,  showing  the  progress  of  the  projects 
financed  in  relation  to  the  physical  and  financial 
indicators  specified  in  the  Commission  Decision  approving 
the projects; 

Monitoring  Committees  set  up  by  mutual  agreement  between 
the Commission and  the Member State. 

4.  The  balance,  equal  to  20%  of  the  assistance  granted  to  the 
project,  is paid once the Member  States have presented  a report 
stating  that  the project  has been  completed  in accordance  with 
i ts object i ves. 

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