Proposal for a Council Decision on the position to be taken by the Community within the Association Council established by the Europe Agreement signed on 19 December 1994 between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part, with regard to the extension for a further period of five years in accordance with the provisions of Article 64, paragraph 4(a) of the Europe Agreement
Date: 1998-02-27
Institutions: European Commission
Subjects: Association Council (EU), Slovakia, State aid, agreement (EU), gross domestic product

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 27.02.1998 
COM(1998) 105  final 

98/0073 (ACC) 

Proposal for a 

COUNCIL DECISION 

on the position to be taken by the Community within the Association Council 
established by the Europe Agreement signed on 19 December 1994 between the 
European Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, with regard to the extension for a further period of five 
years in accordance with the provisions of Article 64 § 4(a) of the Europe 
Agreement 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Extension for a further five year period in accordance with the provisions of Article 
04 § 4(a) of the Europe Agreement 

1. 

2. 

3. 

4. 

5. 

6. 

Article 64, paragraph 4 (a) of the Europe Agreement with Slovakia provides that, 
for the purpose of applying certain provisions relating to public aid, during the 
first five years after the entry into force of the Agreement any public aid granted 
by Slovakia shall be assessed taking into account the fact that Slovakia shall be 
regarded as an area identical to those areas of the Community eligible for state aid 
pursuant Article 92(3) (a) of the Treaty establishing the European Economic 
Community. 

The period of five years referred  above expired on 2 March  1997. 

In accordance with the last sentence of article 64(4)(a) of the Europe Agreement, 
the Association Council shall, taking into account the economic situation of 
Slovakia, decide whether that period should be extended for a further five years. 

On  14 July  1997, Slovakia requested the extension of the above-mentioned 
provisions. 

The main critérium for considering an area eligible for regional aid pursuant to 
Article 92(3)(a) provisions is that GDP per capita should be less than 75% of the 
average GDP of the EU-15, measured in PPP termsl. 

The Commission has examined the requests on the basis of the figures and 
information  available for Slovakia.  The data shows that in the case of 
Slovakia GDP/capita measured in Purchasing Power Parities (PPP) 
reaches 41%  of the Community average in  1995.  No data is available on GDP 

on a regional  basis.  However, it is reasonable to assume that no Slovak region is at 
present over 

the 75% ceiling mentioned above. 

7. 

Based on the above, the Commission believes that the figures available provide 
sufficient  grounds for granting an extension to Slovakia.  However, the 
Commission should be provided with the necessary regional data to assess 

OJ C212/of  12.8.1988 and C163/6 of 4.7.1990 

whether, in the future, Slovakia will not exceed the ceiling of 75% of the 
Community's average GDP which is required in order to benefit from 92(3)(a) 
status. 

This extension will not be applicable to products covered by Protocol 2 of the 
Europe Agreement, which will be the object of a separate examination and 
procedure. 

The Commission therefore requests the Council to adopt the attached proposal for 
a Council Decision. 

3 

Proposal for a Decision of the Council 

on the position to be taken by the Community within the Association  Council 
established by the Europe Agreement signed on 19 December 1994 between the 
European  Communities and their Member States, of the one part, and the Slovak 
Republic, of the other part, with regard to the extension for a further period of five 
years in accordance with the provisions of Article 64 § 4(a) of the Europe 
Agreement 

The Council of the European Union, 

Having regard to the Treaty establishing the European Community, and in particular 
Article  113 in conjunction  with the first sentence of Article 228(2) thereof, 

Having regard to the proposal of the Commission of the European Communities, 

Whereas the European  Community and its Member States concluded the Europe 
Agreement with the Slovak Republic on 01.02.95; 

Whereas Article 64(4)(a) of the Europe Agreement lays down that the Association 
Council shall, taking into account the economic situation of Slovakia, decide whether the 
period within which any public aid granted by Slovakia shall be assessed taking into 
account the fact that Slovakia shall be regarded as an area identical to those areas of the 
Community described in Article 92(3)(a) of the Treaty establishing the European 
Economic Community should be extended for a further five years; 

HAVE DECIDED AS FOLLOWS: 

The position to be taken by the Community within the Association Council established 
by the Europe Agreement signed on 16 December and their Member States, of the one 
part, and the Slovak Republic, of the other part, with regard to the extension for a  further 
five years in accordance with Article 64 § 4(a) shall be based on the draft decision of the 
Association Council annexed to this Decision. 

Done at Brussels on 

For the Council 

U 

Association between the European Union 
and the Slovak Republic 
The Association  Council 

the  Association  Council  between 

Draft  decision  n°.../...of 
the  European 
Communities  and their Member States, of the one part, and the Slovak Republic, of 
the other part, of .../..adopting the extension of five years of the period within  which 
any  public  aid  granted  by  Slovakia  shall  be  assessed  taking  into  account  the  fact 
that  Slovakia  shall  be  regarded  as  an  area  identical  to  those  areas  described  in 
Article 92(3)(a) of the Treaty establishing the European Economic  Community 

The Association Council, 

Having  regard  to  the  Europe  Agreement  establishing  an  association  between  the 
European  Communities  and the Member  States of the one part, and the Slovak  Republic 
of the other part, and in particular Article 64(4)(a) thereof, 

Whereas  Article  64(4)(a)  of  the  Europe  Agreement  lays  down  that  the  Association 
Council shall, taking into account the economic situation of Slovakia, decide whether the 
period  within  which  any  public  aid  granted  by  Slovakia  shall  be  assessed  taking  into 
account the fact  that  Slovakia  shall be regarded  as an area identical  to those areas of the 
Community  described  in  Article  92(3)(a)  of  the  Treaty  establishing  the  European 
Economic Community should be extended for a further period of five years, 

HAS DECIDED AS FOLLOWS: 

Article I 

The period within which any public aid granted by Slovakia shall be assessed taking into 
account the fact  that  Slovakia  shall be regarded  as an area identical  to those areas of the 
Community  described  in  Article  92(3)(a)  of  the  Treaty  establishing  the  European 
Economic Community is extended for a further period of five years, 

Article 2 

Within two years from the date of the extended period of five years enters into force  and 
thereafter  annually  until  the  end  of  the  five  year  period,  Slovakia  will  provide  the 
European  Commission  with  the  necessary  regional  data  to  assess,  according  to  the 
method  used by the Commission,  whether  Slovakia  continues to  fulfil  the conditions  to 
be  regarded  as  an  area  identical  to  those  areas  of  the  Community  described  in  Article 
92(3)(a) of the Treaty establishing the European Economic Community. 

Done at Brussels on 

The Secretaries 

For the Association Council 
The President 

ISSN 0254-1475 

COM(98)  105 final 

DOCUMENTS 

EN 

11  08  01  02 

Catalogue number  :  CB-CO-98-108-EN-C 

ISBN 92-78-31339-4 

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