Proposal for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Union and the Republic of Malta
Date: 1995-04-07
Institutions: European Commission
Subjects: Malta, accession to the European Union, association agreement (EU), economic integration, financial cooperation, technical cooperation

COMMISSION OF THE EUROPEAN  COMMUNITIES 

COM(95) 64 final 

Brussels,  07.04.1995 

95/0065  (AVC) 

Proposal for a 

COUNCIL DECISION 

on the conclusion of a Protocol on financial and 
technical cooperation between the European Union 
and the Republic of Malta 

(presented by the Commission) 

EXPLANATORY MEMORANDUM 

^ 

1. 

2. 

By  its Decision of  14 June  1994 the Council  authorized the Commission  to enter  into 
negotiations  with  the  Republic  of  Malta  with  a  view  to  concluding  a  new  financial 
Protocol under the EEC-Malta Association Agreement. 

A  draft  Protocol  was  initialled  in  Brussels  on  21 December 1994  on  the  basis  of  the 
negotiating directives laid down by the Council, 

3. 

The Protocol provides for a total budget of ECU 45 million, broken down as follows: 

ECU 15 million from the Community budget 

ECU 30 million in EIB loans. 

Legal basis: Article 238 of the Treaty. 

The Commission  invites the Council  to approve the outcome  of  the  negotiations with 
Malta and initiate the procedures for signing and concluding the new financial  Protocol. 
It therefore transmits to the Council a proposal for a Council Decision on the conclusion 
of the initialled Protocol contained in the attached annex. 

4. 

5. 

COUNCIL DECISION 

^ 

on the conclusion of a Protocol on financial and 
technical cooperation between the European Community 
and the Republic of Malta 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 238 
thereof,  in  connection  with  its  Article  228,  paragraph  2,  second  sentence  and  paragraph  3, 
indent 2, 

Having regard to the proposal from the Commission, 

Having regard to the assent of the European Pari iament, 1 

Whereas the Protocol on financial  and technical cooperation  between the European  Community 
and the Republic of Malta should be approved, 

HAS DECIDED AS FOLLOWS: 

Article 1 

The Protocol  on financial  and technical cooperation  between the European Community and the 
Republic of Malta is hereby approved on behalf of the Community. 

The text of the Protocol is attached to this Decision. 

Article 2 

The  President  of  the  Council  shall  give  the  notification  provided  for  in  Article  21  of  the 
Protocol.2 

Article 3 

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

Done at Brussels, 

For the Council 
The President 

1 
2 

OJ No 
The date of entry into force of the Protocol will be published in the Official  Journal of the European 

Communities by the General Secretariat of the Council. 

PROTOCOL 

on financial and technical cooperation between the European 
Community and Malta 

THE COUNCIL OF THE EUROPEAN UNION, 

of the one part, and 

THE GOVERNMENT OF THE REPUBLIC OF MALTA, 

of the other part, 

ANXIOUS  to  promote  the  development  of  the  Maltese  economy  and  the  objectives  of  the 
Agreement establishing an Association between the European Economic Community and Malta, 
and in the light of the Council Decision to offer  Malta financial  cooperation, technical assistance 
and  training  resources  and  other  assistance  in  the  framework  of  an  appropriate  Protocol  to 
facilitate Malta's economic transition with a view to its accession to the European Union, 

HAVE  DECIDED  to  conclude  this  Protocol  and  to  this  end  have  designated  as  their 
Plenipotentiaries: 

The Counci 1 of the European Un ion : 

• 

• 

» 

Minister for Foreign  Affairs, 

President of the Council of the European Union, 

Member of the Commission of the European Communities, 

The Government of the Republic of Malta: 

• 

Minister 

» 

, 

WHO, having exchanged their Full Powers, found  in good and due form, 

HAVE AGREED AS FOLLOWS: 

Article 1 

Within the framework  of the financial  and technical cooperation provided  for  in the Agreement 
establishing  an  Association  between  the  European  Economic  Community  and  Malta,  the 
Community shall participate, on the terms set out in this Protocol, in the financing  of measures 
intended  to  contribute  to  the  economic  and  social  development  of  Malta  and  facilitate  its 
economic transition with a view to accession to the European Union. 

Article 2 

1. 

For the purposes specified  in Article  1, and for a period expiring on 31 October  1998, an 
aggregate amount of ECU 45 million may be committed as follows: 

(a) 

(b) 

(c) 

ECU  30  million  in  the  form  of  loans  from  the  European  Investment  Bank, 
hereinafter referred to as 'the Bank', made from  its own resources; 

ECU  13  million  from  the  Community's  budgetary  resources,  in  the  form  of 
grants; 

ECU  2  million  from  the  Community's  budgetary  resources,  in  the  form  of 
contributions to risk capital  formation. 

2. 

The  risk  capital  referred  to  in  paragraph  1(c)  shall  contribute  to  the  cooperation 
objectives and operations defined  in Article 3, in particular those  indicated  in the second 
indent of paragraph 2 of that Article. 

It  shall  be  used  primarily  to  make  equity  capital  or  the  like  available  to  Maltese 
industrial  and commercial  undertakings,  in  particular those  with  which  natural  or  legal 
persons who are nationals of a Community Member State are associated. 

It shall be granted and administered by the Bank and may take the form  of: 

(a) 

subordinated  loans,  where  repayment  and  payment  of  any  interest  will  not  be 
made until other bank claims have been settled; 

(b) 

conditional  loans,  where  repayment  or duration  will  depend  on  the  fulfilment  of 

conditions specified at the time the loan is granted; 

(c) 

acquisition  of  temporary  minority  holdings  on  behalf  of  the  Community  in  the 

capital of undertakings established  in Malta; 

(d) 

finance  for the acquisition of holdings,  in the form of conditional  loans granted to 
Malta  or,  with  the  Maltese  Government's  agreement,  to  Maltese  undertakings, 
either directly or through the intermediary of Maltese financial  institutions. 

Article 3 

1. 

The  total  amount  fixed  in  Article  2  shall  be  used  primarily  for  the  financing  or  part-
financing  of cooperation  projects or operations to help implement the structural  reforms 
needed to facilitate  the transition  of  Malta's economy  towards  European  integration  and 
to  face  up  to  the  challenges  posed  by  accession  to  the  European  Union  in  the  best 
possible  conditions  by  developing  cooperation  in  the  fields  of  government  matters, 
training,  research  and  technology,  industry,  trade  and  services.  Financing  may  also  be 
provided  for  economic  infrastructure,  productive  investments  and,  where  appropriate, 
industrial  conversion  operations  as  well  as  for  investments  which  complement  the  said 
cooperation projects. 

2. 

Priority  shall  be  given  to  those  of  the  eligible  projects  and  operations  having  the 
following aims: 

in the  field  of  public  administration,  closer  administrative  cooperation  between 
Malta  and  the  Community  to  help  Malta  adopt  the  acquis  communautaire  and 
improve the efficiency  of its public services; 

<r 

in the field  of  industry and services, support for structural  reforms, adapting the 
Maltese  economy  to  the  exigences  of  the  single  market  and  improvements  in 
economic  competitiveness,  encouragement  for  economic  cooperation  between 
undertakings in Malta and the European Community,  investment promotion and 
private capital backing, and support for small and medium-sized enterprises; 

in  the  field  of  science  and  technology,  the  creation  or 
strengthening  of  links  between  training  and  research  establishments  in  Malta 
and the European Community, and the participation  of  undertakings or research 
centres,  in  accordance  with  the  conditions  and  arrangements  laid  down  by 
Council  Decisions  94/761,  94/762  and  94/763  concerning  the  rules  for  the 
participation  of  undertakings,  research  centres  and  universities  in  the  specific 
framework  programmes  of  research  and  technological  development  and 
demonstration of the European Community;3 

in  the  fields  of  trade, the  diversification  and  promotion  of  exports,  support  for 
implementation  of  the  agreed  reforms  of  Malta's  commercial,  customs  and  tax 
policies  with  a  view  to  integration 
into  the  economy  of  the  European 
Community,  and the organization  of  contacts  between  businesses  in  Malta  and 
the Union; 

in the priority areas referred to above, the provision  of technical  and  legislative 
assistance  and  implementation  of  training  programmes  in  government  bodies, 
businesses and research establishments; 

in the fields  of education, culture and youth, the  promotion  of  the  participation 
of Malta in EC programmes, according to specific arrangements to be negotiated 
and concluded  in accordance with the procedures adopted by each party, 
in the fields  of transport, energy and telecommunications,  the  promotion  of  the 
participation  of  Malta  in  EC  framework  programmes,  specific  programmes  or 
other actions according to specific  arrangements to be negotiated and concluded 
in accordance with the procedures adopted by each party. 

3. 

The  Community's  financial  contributions  shall  be  used  to  cover  internal  and  external 
costs  necessarily  incurred  in  carrying  out  approved  projects  or  operations  (including 
costs  in respect of studies, consultants and technical  assistance).  They  may  not  be  used 
to cover regular administrative, maintenance or other operational  expenditure. 

Article 4 

1. 

Capital  projects  shall  be  eligible  for  financing  by  loans  from  the  Bank  or  risk  capital, 
grants or a combination of these means. 

2. 

Technical and economic cooperation shall normally be financed  by grants. 

Article 5 

1. 

2. 

The amounts to be committed each year shall as far as possible be distributed throughout 
the period of application of this Protocol. 

Should Malta accede to the European Union during the period covered  by this Protocol, 
arrangements  will  have  to  be  negotiated  to  ensure  a  harmonious  transition  as  regards 
financial  aid from the system for associate countries to that for  Member States. 

OJ L 306,30.11.1994, p. 1, 5 and 8. 

Article 6 

? 

1. 

2. 

3. 

4. 

Loans granted by the Bank from  its own  resources shall  be made in accordance  with the 
arrangements, conditions and procedures  laid down  in  its statute. They  shall,  as  regards 
their duration, be subject to terms established on the basis of the  economic  and  financial 
characteristics  of  the  projects  for  which  these  loans  are  intended,  also  taking  into 
account the conditions  obtaining on the capital  markets on  which  the  Bank  procures  its 
resources. The interest rate shall be determined  in accordance with the Bank's practice at 
the time of signature of each loan contract. 

The  terms  and arrangements  for  contributions  to  risk  capital  shall  be  determined  on  a 
case-by-case basis. 

Aid  financed  from  the Community's  budget  resources, other than that  intended  for  risk 
capital operations, shall  be granted and administered by the Commission. 

The  funds  referred to  in Article 2  may  be granted through the  intermediary  of  the  State 
or  appropriate  Maltese  bodies,  on  condition  that  they  allocate  the  amounts  to  the 
recipients  on  terms  decided,  by  agreement  with  the  Community,  on  the  basis  of  the 
economic  and financial  characteristics  of the projects and operations  for which  they are 
intended. 

Article 7 

Aid contributed by the Community for the execution of certain projects may, with the agreement 
of Malta, take the form of cofinancing  in which, in particular, credit and development bodies and 
institutions  of  Malta, of  Member States or of  third  States or  international  finance  organizations 
would take part. 

The following  shall be eligible for financial  and technical cooperation: 

Article 8 

(a) 

in general: 

Malta; 

(b)  with the agreement of the Maltese Government, for projects or operations approved by it: 

official  Maltese development agencies, 

private agencies working in Malta for economic and social  development, 

undertakings  carrying  on  their  activities  in  accordance  with  industrial  and 
business management methods and set up as legal persons within the meaning  of 
Article  12, 

groups  of  producers  who  are  nationals  of  Malta  and,  exceptionally,  where  no 
such groups exist, the producers themselves, 

scholarship  holders  and  trainees  sent  by  Malta  under  the  training  schemes 
referred to in Article 3. 

Article 9 

1. 

2. 

3. 

1. 

2. 

1. 

2. 

3. 

1. 

<? 

With a view to making optimum  use of the  instruments and  means provided  for  in this 
Protocol and achieving the objectives  laid down in Article 3, the Community and Malta 
shall, by mutual agreement on the basis of information  provided  by Malta, draw up an 
indicative  programme  committing  both  parties  and  determining  the  specific  objectives 
of financial  and technical cooperation, the priority sectors for intervention and the action 
programmes envisaged. 

The indicative programme may be reviewed by mutual agreement to take account of any 
changes in Malta's economic situation or in the objectives and priorities laid down by its 
development plan. 

The  Community  and  Malta  shall  continue  their  exchanges  of  views  within  the 
appropriate  bodies and  shall, at  least once during the period  of  implementation  of this 
Protocol and at the latest by the end of the third year following  its entry into force, make 
an assessment of the implementation of the indicative programme. 

Article 10 

Within  the  framework  laid  down  in  accordance  with  Article  9,  Malta  or,  with  the 
agreement  of  its Government,  the other  possible  beneficiaries  referred  to  in  Article 8, 
shall submit their requests for financial aid to the Community. 

The  Community  shall  appraise  the  requests  for  financing  in  collaboration  with  the 
competent Maltese authorities and other beneficiaries,  in accordance with the objectives 
referred to in Article 9, and shall inform them of the decisions taken on such requests. 

Article 11 

The  execution,  management  and  maintenance  of  schemes  that  are  the  subject  of 
financing  under  this  Protocol  shall  be  the  responsibility  of  Malta  or  of  the  other 
beneficiaries referred to in Article 8. 

The Community  shall  make sure that this financial  aid  is expended  in accordance  with 
the agreed allocations and to the best economic advantage. 

The projects  and action  programmes shall  be the subject  of appropriate  evaluation, the 
outcome of which  shall  be communicated  to both  parties, which  shall  take  appropriate 
measures by mutual agreement. 

Certain rules for administering the financial  aid granted  by the Community shall  be the 
subject of an Exchange of Letters or a Framework Agreement between the Commission 
and Malta upon conclusion of this Protocol. 

Article 12 

All  natural  and  legal  persons  falling  within  the  scope  of  the  Treaty  establishing  the 
European  Community  and  all  natural  and  legal  persons  of  Malta  may  participate  on 
equal  terms  in  tendering  procedures  and  other  procedures  for  the  award  of  contracts 
likely  to  be  financed.  Any  such  legal  person  formed  in  accordance  with  the  law  of  a 
Member State of the European Community or of Malta must have  its registered  office, 
its administrative head office  or its principal establishment  in the territories in which the 
European Community Treaty  is applied or in Malta; however, where only  its registered 
office  is  in the  said  territories  or  in  Malta, the activities  of  such  legal  person  must  be 
effectively  and continuously linked with the economy of those territories or of Malta. 

2. 

In  agreement  with  Malta,  natural  and  legal  persons  who  are  nationals  of  developing 
countries associated with the Community by comprehensive cooperation  or association 
agreements may exceptionally, on a case-by-case basis, be authorized by the Community 
to  participate  in  the  operations  referred  to  in  paragraph  1 which  are  financed  by  the 
Community. The eligibility  of  such  natural  or  legal  persons  shall  be assessed, mutatis 
mutandis, on the terms set out in paragraph 1. 

3 

Article 13 

To promote participation by Maltese undertakings in the performance of contracts and to ensure 
the  rapid  and  effective  implementation  of  projects  and  operations  financed  from  resources 
administered by the Commission: 

1. 

2. 

1. 

2. 

An accelerated  procedure  for  issuing invitations to tender  involving shorter time  limits 
for the submission of tenders may be used by Malta in agreement with the Commission 
for  works  contracts  which,  because  of  their  scale,  are  mainly  of  interest  to  Maltese 
undertakings. 

The  organization  of  this  accelerated  procedure  shall  not  rule  out  the  possibility  of 
issuing an international  invitation to tender where it appears that the nature of the works 
to  be  carried  out  or  the  usefulness  of  widening  participation  justifies  recourse  to 
international competition. 

In  urgent  cases or where the  nature, small  scale or  particular  characteristics  of  certain 
works  or  supplies  so  warrant,  Malta  may,  exceptionally,  in  agreement  with  the 
Commission, authorize the placing of contracts following restricted  invitations to tender, 
the  conclusion  of  contracts  by  direct  agreement  and  the  performance  of  contracts 
through public works departments. 

The  procedures  referred  to  in  points  1 and  2  may  be  used  for  operations  with  an 
estimated cost of less than ECU 3 million. 

Article 14 

Malta shall apply to contracts awarded for the execution of projects or schemes financed 
by  the  Community  fiscal  and  customs  arrangements  no  less  favourable  than  those 
applied vis-à-vis the most favoured  State or the most favoured  international  development 
organization. 

The content of the arrangements referred to in paragraph  1  shall be established by means 
of an Exchange of Letters between the Parties. 

Article 15 

Malta shall take the necessary measures to ensure that interest and all other payments due to the 
Bank in respect of transactions concluded under this Protocol are exempted from  any national or 
local tax or levy. 

Article 16 

//o 

Where a loan is accorded  to a beneficiary  other than  Malta, the provision  of a guarantee  by the 
latter or of other adequate guarantees shall be required by the Bank as a condition of the loan. 

Article 17 

Throughout the duration of the loans and risk capital operations provided  for in Article 2, Malta 
shall undertake to: 

(a) 

place at the disposal of the beneficiaries  or of their guarantors the currency necessary  for 
the  payment  of  interest and  commission  and  amortization  of  loans and risk  capital  aid 
granted for the implementation of operations on its territory; 

(b)  make  available  to  the  Bank  the  foreign  currency  necessary  for  the  transfer  of  all  sums 
received  by  it  in national  currency which  represent  the net revenue and  proceeds  from 
transactions  involving  the acquisition  by the  Community  of  holdings  in  the  capital  of 
companies or firms. 

Article 18 

The  results  of  financial  and  technical  cooperation  may  be  examined  within  the  Association 
Council, which shall establish, where appropriate, the general guidelines for such cooperation. 

Article 19 

One  year  before  the  expiry  of  this  Protocol,  the  Contracting  Parties  shall  examine  what 
arrangements could be made for financial and technical cooperation. 

Article 20 

This  Protocol  shall  be  annexed  to  the  Agreement  establishing  an  Association  between  the 
European Economic Community and Malta. 

Article 21 

1. 

2. 

This  Protocol  shall  be  subject  to approval  in  accordance  with  the  Contracting  Parties' 
own  procedures;  the  Contracting  Parties  shall  notify  each  other  that  the  procedures 
necessary to this end have been completed. 

The  Protocol  shall  enter  into force  on the first day of the  second  month  following  the 
date on which the notifications provided for in paragraph  1  have been given. 

Article 22 

This Protocol  is drawn up in two original copies in the Danish, Dutch, English, Finnish, French, 
German, Greek,  Italian,  Portuguese,  Spanish  and  Swedish  languages, each  of these  texts  being 
equally authentic. 

FINANCIAL STATEMENT 

/7  /? 

1.  Title of operation 

Fourth  Protocol  on financial and  technical  cooperation  between  the  European  Union  and 
Malta 

2.  Budget heading involved 

B7-4040 - financial  cooperation with Cyprus and Malta 

3.  Legal basis 

Article 238 of the Treaty 

4.  Description of operation 

4.1 General objective 

The aims are as follows: 

to contribute to the economic and social development of Malta and the integration  of its 
economy with the EU's: in accordance with the Association Agreement; 
to facilitate transposition of the acquis communautaire (adapting national  legislation and 
training civil servants) and help inform  Maltese public opinion about life in the EU; 
on  a  more  general  level,  preparing  Malta's  economic  and  social  structures  for  the 
challenge of accession to the EU. 

4.2 Period covered and arrangements for renewal or extension 

Period covered:  1995-98 
In  the event of  Malta's accession  to the  EU during the  period  covered  by the  Protocol 

specific adaptations will be negotiated. 

5.  Classification of expenditure or revenue 

5.1 Non-compulsory expenditure 

5.2 Differentiated  appropriations 

5.3 Type of revenue involved: repayment of special loans 

6.  Type of expenditure or revenue 

100% grant from the Community budget + EIB loans from own resources; 

Interest rate subsidy: none 

Other: risk capital 

iz 

Should  the  operation  prove  an  economic  success,  is there  provision  for  all  or  part  of  the  Community 
contribution to be repaid?: No 

Will the proposed opération cause any change in the level of revenue?  If so, what sort of change and 
what  type  of  revenue  is  involved?  If  the  risk  capital operations are positive,  they  will generate 
revenue. 
Re-use: no 

7.  Financial impact 

7.1  Method of calculating total cost of operation (definition of unit costs) 

The  amounts  requested  have  been  calculated  on the  basis of  the  existing  proposals  for  projects 
which the Commission could finance without delay. 

7.2  Itemised breakdown of cost 

ECU  13.0 million in 100% grants from Community resources 
ECU 2.0 million in risk capital from Community resources 
ECU 30.0 million in EIB loans from own resources 

7.3  Operating expenditure for studies, experts" meetings, etc, included in Part B 

(see Annex Ilia to the Commission communication of 22.4.1992, attached in Annex VIII) 

None 

7.4  Schedule  for  the preliminary  draft  budget  for  multiannual  operations  whose  basic  instrument 

contains an "amount deemed necessary" 

amount deemed necessary: 
period: 

1995 

1996 

1997 

1998 

TOTAL 

COMMISSION 
BUDGET 

EIB 

2 

5 

5 

10 

5 

10 

3 

5 

15 

30 

8.  Fraud prevention measures; Results of measures taken 

Controls  are  undertaken  by  the  Commission  and  its  delegation  in  Malta  at  each  stage  of  project 
implementation (invitation to tender, selection, preparation of contracts, provision of services, payment). 

The  checks  carried  out  take  into  account  contractual  and  regulatory  obligations  and  the  principles  of 
economy and sound financial  management. 

Provisions concerning controls (periodic implementation reports, consultation with 

the Commission, periodic visits by Commission officials  etc.) are included in all agreements and contracts 
between the Commission and beneficiaries of payments. 

Provision has been made for the Court of Auditors to conduct on-site inspections. 

••G 

9.  Elements of cost-effectiveness analysis 

9.1  Specific and quantified objectives; target population 

Specific objectives: links with general objective 

To finance technical assistance and training so as to help Malta adopt and implement Community 
legislation  and the policies and  instruments needed to assist  in  its economic, social  and  political 
transition towards integration  in the Community; 

Target  population: distinguish, as app!icable,for  each  objective;  indicate the end-beneficiaries  of 
the Community's financial contribution and the intermediaries involved. 

Operations  will  be  carried  out  in  conjunction  with  Maltese  private  sector  and  government 
organizations and will involve: 
- the business sector 
- the service sector 
- government  officials. 

9.2  Grounds for the operation 

-  Need for Community financial aid 

Because  of  economies  of  scale,  economic  and  social  cohesion  and,  above  all,  because  the 
European  Union  is the source of all contributions that the Member  States would  otherwise  have 
^ 
made individually. 

-  Choice of ways and means 

*  advantages over possible alternatives (comparative advantages) 

Cost 

The Fourth EC-Malta financial  Protocol will be signed in 1995 

* 

spin-off effects expected 

Malta's economic and social development 

. 

*  multiplier effects  expected 

The proposal contains features conducive to the development of SME: 
- 

by encouraging involvement in trade and cooperation 
by facilitating the exchange of information  and contacts between Community and Maltese 
SME. 

*  explanatory reference to similar Community or national operations 

/ 

Main factors of uncertainty which could affect the specific results of the operation 

The main factors of uncertainty concern the administrative efficiency  of our Maltese counterparts 
and their political  will to proceed with the adoption  of the acquis communautaire  particularly in 
view of the 1996 elections. 

93  Monitoring and evaluation of the operation 

Performance  indicators of future operations. The performance  indicators will be selected  from 
the following: 

*  output indicators (measuring activities used) 
- 

rate of commitments/payments 

-  number of training courses organized,  levelof participation; development of the national 

legislative framework (transposition of the acquis communautaire); 

-  development of trade with the EU, location of European firms in Malta 

- 

level of involvement in Community framework  programmes 

* 

impact indicators (measuring performance against objectives) 

- 

- 

- 

- 

- 

- 

- 

- 

- 

improvements in business management 

increase in trade 

economic recovery 

improvements in government administration 

industrial development 

creation of added value in the economy 

impact on job création 

impact on the trade balance and balance of payments 

impact on per capita income levels 

Details and frequency of planned evaluations 

Projects  are  subject  to  periodic  checks  and  evaluations  by  the  Commission  and  by  the  bodies 
responsible for their implementation. • 

On its completion, an evaluation report will be prepared on the content and impact of the project. 

Assessment of the results obtained 

The previous financial protocols have been committed in full. 

9.4  Coherence with financial  programming 

is 

- 

Is the operation incorporated in the DG's financial  programming for the relevant years? Yes 

To which  broader objective  defined  in the DG's financial  programming does the objective  of the 
proposed operation correspond? 

Developing  cooperation  with  Malta  in order to help achieve  economic  targets  and  contribute  to 
political stability in Malta. 

10. Administrative expenditure (Part A of the budget) 

This section of the financial  statement must be sent to DGs IX and XIX; DG IX will then forward  it to 
DG XIX with its opinion. 

10.1  Will the proposed  operation  involve an increase  in the number of Commission  staff?  If so, 

how many? 

No 

11. 

Impact On The Reserve Established To Provide Guarantees 

11.1  Preliminary timetable of loans to be arranged during the life of the decision (ECU million). 

1995 

1996 

1997 

1998 

TOTAL 

5 

10 

10 

5 

30 

11.2  Estimated use of the reserve established to constitute the guarantee fund  (ECU million). 

1995 

1996 

1997 

1998 

0,75 

1,5 

1,125 

0 

11.3 

Estimated use of the reserve (taking account of this proposal; in million ECU): 

size of reserve 
margin of reserve 

1995 
323 
131,5 

1996 
326 
118,2 

1997 
336 
306,9  , 

1998 
346 
318 

1999 
356 
314 

IMPACT OF THE PROPOSAL ON SME 

/I 1C 

The proposal holds positive  implications for SME, in that: 

* 

* 

it will  promote their involvement in exchanges and cooperation; 

it will  facilitate contact and exchanges of  information between SME on both sides. 

ISSN 0254-1475 

COM(95) 64 final 

DOCUMENTS 

EN 

02  11 

Catalogue number  : CB-CO-95-075-EN-C 

ISBN 92-77-86219-X 

Office for Official Publications of the European Communities 

L-2985 Luxembourg