Proposal for a COUNCIL REGULATION (EC) ON COMMUNITY FINANCIAL CONTRIBUTIONS TO THE INTERNATIONAL FUND FOR IRELAND
Date: 1994-03-02
Institutions: European Commission
Subjects: EU financing, Ireland, activity report, cross-border cooperation, international aid

COMVIISSION  OF  THE  EUROPEAN  COMMUNITIES 

COM(04 ) 60  f mal 

mussels,  02.03. 1994 

94/ 0064(CNS) 

Proposal  for a 

COUNCIL  RLGULAIION  (EC) 

ON COMMUNITY  FINANCIAL CONTRIBUTIONS TO THE  INTERNATIONAL FUND FOR  IRELAND 

(presented by  I In; Commission) 

EXPLANATORY  MEMORANDUM 

The  International  Fund  for  Ireland was established  in 1986  in order  to 

contribute  to  the  work  envisaged  in Article  10(a) of  the  Anglo-Irish 

Agreement  of  15 November  1985 which provides  that  "The  two governments 

shall  co-operate  to  promote  the  economic  and  social  development  of 

those areas of  both  parts of  Ireland which  have suffered  most  severely 

from  the  consequences  of  the  instability  of  recent  years,  and  shall 

consider  the  possibility  of  securing  international  support  for  this 

work". 

The objectives of  the  Fund  are  to promote  economic  and  social  advance 

and  to  encourage  contact,  dialogue  and  reconciliation  between 

nationalists and unionists  throughout  Ireland. 

The  EC, recognising  that  the objectives of  the  Fund  were  a  reflection 

of  those  pursued  by  itself,  wished  to  give  practical  support  to  the 

initiative.  Since  1989,  this  has  taken  the  form  of  an  annual 

contribution  of  MECU  15  which  was  written  into  the  budget  and 

implemented  by  the Commission. 

The  Commission  has  been  represented  by  an  observer  at  Board  meetings 

since  the  beginning  of  1989  and  has  thus  been  able  to  monitor  the 

progress of  the Fund. 

Since  its  inception, the Fund  has supported  some 3.000 projects  to the 

benefit of both communities. 

The Commission  has always  insisted  that the Community's contribution be 

used  as  a  priority  for  cross-community  projects,  thereby  encouraging 

dialogue  and  reconciliation  and  that  it  have  a  genuine  additional 

impact  in  the  areas  concerned,  i.e.  that  it  should  not  be  used  as a 

substitute  for other  public or private expenditure. 

A  Q. 

The  Fund  Is  in  particular  an  example  of  successful  Anglo-Irish 

cooperation  in promoting  reconciliation  between  the  two  communities  and 

their  economic  and  social  progress. 

The  Joint  Declaration  by  the  Taoiseach  Mr.  Reynolds  and  Prime  Minister 

Major  of  14  December  1993  has  given  new  impetus  to  the  reconciliation 

process. 

The  Joint  Declaration  was  welcomed  by  the  Commission  in  a  statement 

issued  on  16  December  1993  indicating  that  the  achievement  of  peace 

would  bring  many  social  and  economic  benefits  to  the  region,  the  Member 

States  concerned  and  the  European  Union  as  a  whole,  and  expressing  the 

wish  to give  practical  support  to  the  process. 

The  Joint  Declaration  was  also  welcomed  in  a  statement  issued  by  the 

General  Affairs  Council  on  20  December  1993. 

Not  withstanding 

the  very 

important 

Community 

structural 

Fund 

commitment  for  the  whole  of  the  Island  of  Ireland,  continuation  of 

financial  contributions  to  the  International  Fund  for  Ireland  would 

provide  a  clear  indication  of  Community  support  for  the  peace  process. 

Since  the  present  arrangement  for  Community  contributions  needs  to  be 

covered  by  a  more  formal  legal  basis,  it  is  proposed  that  the  Council 

adopt  the  attached  regulation. 

In order  to  allow  for  the  fact  that  the  situation  in  the  region  should 

improve  it  is  suggested  initially  to  limit  the  term  of  the  support  to 

three  years  and,  in  due  course,  to  reassess  the  need  for  continuing 

support  beyond  1997.  In  the  Commission's  view  the  annual  contribution 

for  each  of  the  years  1995,  1996  and  1997  should  remain  at  15  MECU. 

It  Is  further  proposed  that  the  following  conditions  shall  apply  In 

respect  of  this  contribution: 

priority  shall  be  given  to  projects  which  have  a  strong  cross-

border  or  cross-community  element; 

it  shall  be  ensured  that  it  has  a genuine  additional  impact  in  the 

areas concerned  and  not  therefore  be used  as a substitute  for  other 

public or  private  expenditure. 

PROPOSAL FOR A COUNCIL REGULATION 

ON COMMUNITY  FINANCIAL CONTRIBUTIONS TO THE  INTERNATIONAL  FUND FOR  IRELAND 

The Council  of  the European  Union 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in 

particular  Article  235 thereof; 

Having  regard  to the proposal  of  the Commission, 

Having  regard  to the opinion of  the European Par I lament(1), 

Whereas  Article  10(a)  of  the  Anglo-Irish  Agreement  of  15  November  1985 

provides  that  the  two  governments  shall  cooperate  to  promote  the  economic 

and  social  development  of  those  areas of  both  parts of  Ireland  which  have 

suffered  most  severely  from  the  consequences  of  the  instability  of  recent 

years, and shall  consider  the possibility of securing  international  support 

for  this work; 

Whereas  in order  to  contribute  to  the  work  envisaged  in Article  10(a) of 

the  Anglo-Irish  Agreement  the  International  Fund  for  Ireland  was 

established  to  promote  economic  and  social  advance  and  to  encourage 

contact,  dialogue  and  reconciliation  between  nationalists  and  unionists 

throughout  Ireland; 

(1)  Opinion delivered on 

h 

Whereas  the  Joint  Declaration  of  the  Taoiseach  Albert  Reynolds  and  Prime 

Minister  John  Major  of  14  December  1993  provides  a  framework  for  a  peace 

process  in this part of  the European Union; 

Whereas  the  Commission  in  its statement  of  16 December  1993  expressed  the 

wish  to give practical  support  to this process; 

Whereas  the  General  Affairs  Council  in  its  statement  of  20  December  1993 

declares  that  the  ending  of  the  bitter  conflict  in Northern  Ireland  would 

bring  many  social  and  economic  benefits  to  the  region,  the  Member  States 

concerned  and  the European Union as a whole; 

Whereas  the  governments  of  the  United  Kingdom  and  Ireland  in  1988  invited 

the Community  to contribute  to the  International  Fund  for  Ireland; 

Whereas  15 MECU per  annum  has been provided  from  the Community  budget  since 

1989 to support  projects of  the  International  Fund  for  Ireland which  have a 

genuine additional  impact  in the areas concerned; 

Whereas  the  programmes  of  the  International  Fund  for  Ireland  encourage 

cross-border  and  cross-community  cooperation  and  thereby  promote  dialogue 

and reconciliation between nationalists and unionists; 

Whereas  the  International  Fund  for  Ireland  has  since  its  establishment 

provided  support  to over  3.000 projects  to the benefit  of both  communities; 

Whereas  the  International  Fund  for  Ireland  encourages  those  in  the  most 

deprived  areas  to participate  in and  take  responsibility  for  the  economic 

regeneration of  their own areas; 

Whereas  the  International  Fund  for  Ireland  is  an  example  of  successful 

Anglo-Irish  cooperation  in  promoting  reconciliation  between  the  two 

communities and  their  economic  and social  progress; 

5 

Whereas  a  framework  for  continued  Community  support  for  the  International 

Fund  for  Ireland should be established; 

Whereas  such  support  should  take  the  form of  financial  contributions  for a 

period of  three years and be reassessed  in due course; 

Whereas  this support  will  contribute  to  reinforcing  the solidarity  between 

the Member  States and between  their peoples; 

Whereas  the Treaty  provides  no powers other  than  those  in Article  235  for 

the adoption of  this Regulation-, 

HAS ADOPTED THIS REGULATION. 

Article 1 

An annual  contribution shall  be made to the  International  Fund  for  Ireland, 

hereinafter  called  the Fund, for each of  the years 1995, 1996, 1997. 

Article 2 

The  contribution  shall  be  used  by  the  Fund  in priority  for  projects  of  a 

cross-border or cross-community nature. 

The  contribution  shall  be  used  in  such  a  way  that  it  has  a  genuine 

additional  impact  on  the  areas  concerned  and  should  not  therefore  be used 

as a substitute  for other  public and private expenditure. 

A  Commission  representative  shall  be  enabled  to  continue  to  assist  as  an 

observer  at the Board meetings of  the Fund. 

Article 3 

The Commission shall  administer  the contribution mentioned  in Article 1. 

0 

Article 4 

The annual  contribution  shall  be paid over  in two parts  in accordance with 

the following provisions: 

an  advance of  80% will  be  paid  over  after  signature  by  the  chairman 

of  the  Board  of  the  Fund  of  the  Commission's  standard  undertaking 

relating  to grants  and  after  having  made  the undertaking  to use  the 

contribution  in accordance with  the provisions of Article 2; 

the  remaining  20% will  be  paid  over  after  receipt  and  acceptance  by 

the  Commission  of  the  beneficiary's  annual  activity  report  and 

audited accounts. 

Article 5 

Before  the end of  1996, the Commission  shall  draw up an evaluation  report 

to  the  European  Parliament  and  the  Council  assessing  the  need  for 

continuing contributions beyond 1997. 

Article 6 

This Regulation shall enter  into force on  1. January 1995. 

This Regulation shall  be binding  in  its entirety  and directly applicable in 

a 11 Member States. 

Done at Brussels 

For  the CounciI 

1. 

TITLE OF  OPERATION: 

FINANCIAL  STATEMENT 

COMMUNITY  CONTRIBUTIONS TO THE  INTERNATIONAL  FUND FOR  IRELAND. 

2. 

BUDGET HEADING  INVOLVED: B2-604 

3. 

LEGAL BASIS: 

Draft  Proposal  for a Council  Regulation under  Article 
235 

4. 

DESCRIPTION OF OPERATION 

4.1. 

4.2. 

General  objective:  to  encourage  contact,  dialogue  and 
reconciliation  between  nationalists  and  unionists  throughout 
Ireland  by  promoting  the  economic  and  social  advance  of  the 
two communi t ies. 

Period  covered  and arrangements  for  renewal  of extension: 
1995,  1996, and  1997.  An  assessment  will  be made  before  the 
end  of  1996 with  a view  to possible  renewal  or  extension  of 
the arrangement. 

5- 

CLASSIFICATION OF  EXPENDITURE OR  REVENUE 

5.1. 

Non-compulsory  expenditure 

5.2. 

Non-different iated appropr iat ions 

6. 

TYPE OF  EXPENDITURE 

Subsidy  for  Joint  financing  with other  sources  in the  public 
and/or  private sector. 

7. 

FINANCIAL  IMPACT 

7.1. 

Indicative schedule of appropriations 

7.1.1.  Schedule  for proposed  new operation 

MECU  (in current  prices) 

1995 

1996 

1997 

TOTAL 

15 

15 

15 

15 

15 

15 

45 

45 

Commitment 
appropr iat ions 

Payment 
approprIat ions 

8. 

FRAyD_PREVENI]0NJ^.EA5JJRE§: the Commission  is represented  on  the Board 
of  the Fund  and  the final  annual  contribution  is only paid over  after 
receipt  and  acceptance  of  the  Fund's  annual  report  and  audited 
accounts. 

9. 

SPECIFIC OBJECTIVE 

9.1. 

Through  economic  and  social 
to  promote 
reconciliation  between  the  two  communities  in both  parts  of 
Ireland  which  have  suffered  most  severely  from  the 
consequences of  the  instability of recent  years. 

development 

9.2. 

Grounds  for  the operation 

The  Community,  recognising  that  the  objectives  of  the  Fund 
are  a  reflection  of  those  pursued  by  itself,  has  given 
practical  backing  (MECU  15 p.a.) since  1989. Continuation  of 
this  contribution  would  provide  a  clear  indication  of 
Community  support  for  the peace process  in Northern  Ireland. 

9.3. 

Monitoring  and evaluation of  the operation 

The Commission  will  make  a detailed  assessment  of  the  impact 
of  Community  support  to  the Fund's operations  before  the end 
of  1996.  It will  also monitor  the Fund's  activities  through 
its continuing presence on  the Board as an observer. 

ISSN 0254-1475 

COM(94) 60 final 

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ISBN 92-77-65759-6 

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