COMMON POSITION (EC) No 4/98 adopted by the Council on 5 November 1997 with a view to adopting Council Regulation (EC) No .../98 of ... on decentralised cooperation
Date: 1997-11-05
Institutions: Council of the European Union
Subjects: cooperation policy, decentralisation, developing countries, development aid

9.2.98

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Official  Journal  of  the  European  Communities

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I

(Information)

COUNCIL

COMMON  POSITION  (EC)  No  4/98

adopted  by  the  Council  on  5  November  1997

with  a  view  to  adopting  Council  Regulation  (EC)  No  . . ./98  of  . . .  on  decentralised
cooperation

(98/C  43/01)

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 (1),

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189c  of  the  Treaty (2),

Whereas  the  importance  of  a  decentralised  approach  to
development  cooperation  has  been  emphasized  in  the
Fourth  ACP-EC  Convention,  Council  Regulation  (EEC)
No  443/92  of  25  February  1992  on  financial  and
technical  assistance  to,  and  economic  cooperation  with,
the  developing  countries  of  Asia  and  Latin  America (3),
and  the  Council  resolution  of  27  May  1991  on
cooperation  with  NGOs  and  in  numerous  European
Parliament  resolutions;

Whereas  the  budgetary  authority  decided  to  include  in
the  1992  budget  a  heading  for  the  promotion  of  this
approach  in  all  developing  countries;

(1)  OJ  C  250,  26.9.1995,  p.  13.
(2)  Opinion  of  the  European  Parliament  delivered  on  15
December  1995  (OJ  C  17,  22.1.1996,  p.  460).  Council
common  position  of  5  November  1992  and  Decision  of  the
European Parliament of . . . (not yet published in the Official
Journal).

(3)  OJ  L  52,  27.2.1992,  p.  1.

financial  reference  amount,  within 

Whereas  a 
the
meaning  of  point  2  of  the  Declaration  by  the  European
Parliament, the Council and the Commission of 6 March
1995  on  the  incorporation  of  financial  provisions  into
legislative  acts (4)  is  included  in  this  Regulation  for  the
period  1998  to  2000,  without  thereby  affecting  the
powers of the budgetary authority as they are defined by
the  Treaty;

Whereas  decentralised  cooperation  makes  an  important
contribution 
the  cooperation  policy
objectives of the Community as set out in Article 130u of
the  Treaty;

to  achieving 

Whereas  administrative  procedures  should  be  established
accordingly,

HAS  ADOPTED  THIS  REGULATION:

Article  1

The  Community  shall  support  pilot  operations  and
initiatives  on  sustainable  development  undertaken  by
decentralised  cooperation  agents  of  the  Community  and
the  developing  countries,  in  particular  those  designed  to
promote:

(4)  OJ  C  102,  4.4.1996,  p.  4.

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9.2.98

—  a  more  participatory  approach 

responsive 
population  in  the  developing  countries,

the  needs  and 

to 

to  development,
the

initiatives  of 

—  a contribution to the diversification and reinforcement
of  civil  society  and  grassroots  democracy  in  the
countries  concerned,

—  the mobilisation of decentralised cooperation agents in
the  Community  and  the  developing  countries  in
pursuit  of  these  objectives  within  the  structured
programmes.

The  annual  appropriations  shall  be  authorised  by  the
budgetary  authority  within  the  limits  of  the  financial
perspective.

shall  determine 

2. The  budgetary  authorised 
the
appropriations  available  for  each  financial  year  taking
account  of  the  principles  of  sound  financial  management
referred  to  in  Article  2  of  the  financial  Regulation
applicable  to  the  general  budget  of  the  European
Communities.

All developing countries shall be eligible for operations to
promote  decentralised  cooperation.

Article  5

Article  2

The  priority  fields  for  operations  under  this  Regulation
shall  be:

—  the  development  of  human  and  technical  resources
local  rural  or  urban  social  and  economic

and 
development  in  the  developing  countries,

—  information  and  the  mobilisation  of  decentralised

cooperation  agents,

—  support  for  strengthening  the  institutional  capacities

of  such  agents  and  their  capacity  for  action,

—  methodological 
operations.

back-up 

and 

follow-up 

for

Article  3

The  cooperation  partners  eligible  for  financial  support
under  this  Regulation  are  decentralised  cooperation
agents  in  the  Community  or  the  developing  countries,
namely local authorities, non-governmental organizations,
local  traders’  associations  and  local  citizens’  groups,
trade  unions,  women’s  and  youth
cooperatives, 
organisations, 
institutions,
teaching 
churches and any non-governmental associations likely to
contribute  to  development.

research 

and 

Article  4

1. Community financing of the operations referred to in
Article  1  shall  cover  a  period  of  3  years  (1998  to
2000).

1. The  instruments  to  be  employed  in  the  course  of  the
operations  referred  to  in  Article  1  shall  include  studies,
technical  assistance,  training  or  other  services,  supplies
and  works,  along  with  audits  and  evaluation  and
monitoring  missions.

2. Community  financing  may  cover  both  investment
expenditure,  with  the  exception  of  the  purchase  of
buildings,  and,  since  the  project  must,  if  possible,  aim  at
medium-term  viability,  recurring  expenditure  (including
administrative,  maintenance  and  operating  expenditure).

3. A  contribution  from  the  partners  defined  in  Article  3
shall  be  sought  for  each  cooperation  operation.  The
contribution  shall  be  requested  according  to  their  means
and  the  nature  of  the  operation  concerned.

4. Opportunities  may  be  sought  for  cofinancing  with
other  fund  providers,  and  especially  with  Member
States.

5.
In  order  to  attain  the  objectives  of  coherence  and
complementarity  laid  down  in  the  Treaty,  and  with  the
aim of guaranteeing optimum efficiency of the totality of
these  operations,  the  Commission  may  take  all  necessary
coordination  measures,  including  in  particular:

(a)  the  establishment  of  a  system  for  the  systematic
exchange  and  analysis  of  information  on  operations
financed  or  for  which  financing  is  envisaged  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.

The financial reference amount for the implementation of
this  programme  for  the  period  1998  to  2000  shall  be
ECU  18  million.

Financial  support  under  this  Regulation  shall  be  in  the
form  of  grants.

Article  6

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Article  7

shall  appraise,  decide  and
1. The  Commission 
this  Regulation
administer  operations  covered  by 
according to the budgetary and other procedures in force,
and  in  particular  those  laid  down  in  the  Financial
Regulation  applicable  to  the  general  budget  of  the
European  Communities.

2. Decisions  relating  to  grants  of  more  than  ECU  1
million  for  individual  operations  financed  under  this
Regulation  and  any  amendment  involving  an  increase  of
more  than  20 %  in  the  amount  initially  approved  for
such  an  operation  shall  be  adopted  under  the  procedure
laid  down  in  Article  8.

3. Project  and  programme  appraisal  shall  take  into
account  the  following  factors:

—  effectiveness  and  viability  of  operations,

—  cultural  and  social  aspects,  aspects  relating  to  equal
the

for  men  and  women,  and 

opportunity 
environment,

—  institutional  development  necessary 

to  achieve

objectives  of  the  operation,

—  experience  gained  from  operations  of  the  same  kind.

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

5. Participation in invitations to tender and the award of
contracts shall be open on equal terms to all natural and
legal  persons  of  the  Member  States  and  of  the  recipient
country.  It  may  be  extended  to  other  developing
countries  and,  in  exceptional  cases  which  are  fully
justified,  to  other  third  countries.

6. Supplies  shall  originate  in  the  Member  States,  the
recipient  country  or  other  developing  countries.  In
exceptional  cases,  where  circumstances  warrant,  supplies
may  originate  in  other  third  countries.

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  laid  down  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.

3.  (a)  The  Commission  shall  adopt 

the  measures

envisaged  which  shall  apply  immediately.

(b) However,  if  they  are  not  in  accordance  with  the
opinion  of 
shall  be
the  Committee, 
communicated  by  the  Commission  to  the  Council
forthwith.  In  that  event:

they 

—  the  Commission  shall  defer  application  of  the
measures which it has decided on for a period
of  one  month 
the  date  of  such
communication,

from 

—  the  Council,  acting  by  a  qualified  majority,
may  take  a  different  decision  within  the  time
limit  referred  to  in  the  first  indent.

Article  9

The Committee referred to in Article 8 shall meet once a
year  to  discuss  general  guidelines  presented  by  the
Commission  representative  for  operations  in  the  year
ahead.

Article  10

After  each  budget  year,  the  Commission  shall  submit  an
annual  report  to  the  European  Parliament  and  the
Council,  summarising  the  operations  financed  in  the
course of that year and evaluating the implementation of
this  Regulation  in  that  period.

Article  8

The  summary  shall  in  particular  contain  information  on
the  decentralised  cooperation  agents  with  whom
contracts  have  been  concluded.

1. The  Commission 
the
geographically  determined  Committee  competent  for
development.

assisted  by 

shall  be 

2. The  Commission  representative  shall  submit  to  the
Committee  a  draft  of  the  measures  to  be  taken.  The

Every  three  months,  the  Commission  shall  inform  the
Member  States  of  the  operations  and  projects  approved,
stating  their  cost  and  nature,  the  recipient  country  and
partners.  This  information  shall  be  accompanied  by  an
Annex  clearly  setting  out  the  projects  or  programmes
which  exceed  ECU  1  million.

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Article  11

Article  13

targeted  by 

The  Commission  shall  make  regular  assessments  of
operations  financed  by  the  Community,  in  order  to
these
the  objectives 
establish  whether 
operations  have  been  attained  and  in  order  to  give
future
indications 
operations.  The  Commission  shall  submit 
the
Committee  referred  to  in  Article  8  a  summary  of
assessments  carried  out,  which  the  latter  may  examine
where  appropriate.  The  assessment  reports  shall  be
available  to  Member  States  requesting  them.

the  effectiveness  of 

improve 

to 

to 

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

It  shall  apply  until  31  December  2000.

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

Article  12

Before  the  end  of  1999,  the  Commission  shall  submit  to
the  European  Parliament  and  to  the  Council  an  overall
assessment of the operations financed by the Community
under  this  Regulation,  accompanied  by  suggestions
concerning  the  future  of  this  Regulation.

Done  at  . . .

For  the  Council

The  President

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THE  COUNCIL’S  REASONS

I. 

INTRODUCTION

1.  By  letter  of  31  August  1995  the  Commission  forwarded  to  the  Council  a  proposal (1)

for  a  regulation  on  decentralised  cooperation.

2.  On  12  December  1995  the  European  Parliament  delivered  its  opinion  on  the  proposal

at  first  reading (2).

3.  On  5  November  1997  the  Council  adopted  its  common  position  pursuant  to  Article

189c  of  the  Treaty.

II.  AIM  OF  THE  PROPOSAL

The  aim  of  the  proposal  is  to  create  a  legal  basis  for  implementing  the  appropriations
entered  in  the  budget  and  intended  for  financing  pilot  operations  and  initiatives  for
sustainable  development  concerning  the  promotion  of  decentralised  cooperation  to  benefit
all  developing  countries.

III.  ANALYSIS  OF  THE  PROPOSAL

The common position retains the essence of the Commission proposal regarding the nature
of  the  operations  to  be  financed  (Articles  1  and  2),  the  partners  eligible  for  financial
support  under  this  Regulation  (Article  3)  and  the  instruments  which  can  be  employed  in
the  course  of  the  operations  referred  to  (Article  5).  The  Council  also  incorporated  in  its
common  position  most  of  the  amendments  proposed  by  the  European  Parliament.

However,  the  Council,  given  the  nature  of  the  pilot  operations  and  initiatives  covered  by
this  Regulation  stemming  form  a  new  approach  to  development  cooperation,  considered
that  such  an  experiment  should  be  conducted  for  a  period  limited  to  three  years.

The Commission is called upon to submit to the Parliament and to the Council, before the
end of 1999, an overall evaluation of the operations financed by the Community under the
Regulation,  accompanied  by  suggestions  for  the  Regulation’s  future.

The  Council,  with  a  view  to  maximum  efficiency,  has  laid  down  certain  criteria  in  Article
7(3)  concerning  appraisal  of  the  projects  and  programmes  proposed  for  Community
financing.

As  for  the  decision-making  procedures,  the  Council  has  taken  account  of  the  technical
requirements  of  efficient  management,  bearing  in  mind  the  nature  of  the  operations  and
their  modest  dimensions.

It  was  accordingly  agreed  that  decisions  relating  to:

—  grants of more than ECU 1 million for individual operations would be taken under the

II(b)  procedure  of  the  Committee  Procedure  Decision,

—  the  annual  general  guidelines  would  be  discussed  by  the  Committee  mentioned  in

Article  8.

(1)  OJ  C  250,  26.9.1995,  p.  13.
(2)  OJ  C  17,  22.1.1996,  p.  460.