Proposal for a Council Regulation (EC) on coordinating aid to the applicant countries in the framework of the pre-accession strategy
Date: 1998-03-18
Institutions: European Commission
Subjects: Central and Eastern European countries, EU financial instrument, accession to the European Union, coordination of financing, financing of aid

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  18.03.1998 
COM(1998) 150 final 

98/0094 (CNS) 

Proposal for a 

COUNCIL REGULATION (EC) 

on coordinating  aid to the applicant 

countries in the framework  of the pre-accession  strategy 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

Considered  by the  Luxembourg  European  Council  as the key feature  of the 
pre-accession 
instituted  by 
strategy,  Accession  Partnerships  were 
Regulation  ..../.. on assistance  to the applicant  countries  under that  strategy. 
They  provide  a  single  framework  for  programming  the  priorities  and 
financial  resources of pre-accession  aid. 

The Luxembourg  European  Council  also provided  for  a substantial  increase 
in  pre-accession  aid  so  as  to  include,  in  addition  to  the  Phare  programme, 
aid  to  agriculture  and  a  structural  instrument  for  funding  measures  similar 
to those of the Cohesion Fund. 

The  above  three  instruments,  which  put  pre-accession  aid  into effect,  were 
created  by Regulations  (EEC) Nos 3906/89, as last  amended  by  Regulation 
(EC) No 753/96 (Phare),..../.. (agriculture) and ..../.. (ISPA). 

In its report to the European  Council, dated  10 December  1997, the Council 
(General  Affairs)  stressed  "the  importance  of  ensuring  coherence  in  the 
implementation  of  the  three  pre-accession  instruments  advocated  by  the 
Commission" and called  upon the Commission  "to submit a proposal  for an 
appropriate  unified  legislative  framework,  in  the  light  of  the  decisions  the 
Council will be required  to take on the future  financial  perspective." 

In the light of the above, the three Community  instruments  should  therefore 
be  coordinated 
to  ensure  that  they  complement  each  other  without 
overlapping and optimise their economic impact. Such is the purpose of this 
draft  Regulation. 

The  Commission  will  be  assisted  by  an  Advisory  Committee  whose  role 
will  consist  of  ensuring  coordination  and  coherence  between  operations 
carried  out  under  the  three  instruments  and  with  operations  funded  by  the 
EIB,  the  Community's  other  financial  instruments  and  the  international 
financial institutions. 

Proposal for a Regulation of the Council on coordinating aid to the applicant 
countries in the framework  of the pre-accession  strategy 

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  from  the Commission, 

Having regard to the opinion of the European  Parliament, 

Whereas  the  Luxembourg  European  Council  advocated  a  substantial  increase  in  pre-
accession  aid so as to include, in addition to the Phare programme, aid to agriculture and 
for structural measures; 

Whereas Regulation  No ..../.. on assistance to the applicant countries  in the  framework  of 
the  pre-accession  strategy  provides  for  the  creation  of  Accession  Partnerships  which 
provide a single framework  for programming the priorities and  financial  resources of pre-
accession aid; 

Whereas  Regulation  No  ..../..  set  up an  agricultural  instrument  for  application  mainly  in 
areas  such  as  modernising  the  structure  of  agricultural  holdings,  improving  processing 
and distribution structures, developing inspection activities and rural  development; 

Whereas the structural  instrument  created  by Regulation No ..../.. (the  ISPA), is intended 
to finance  infrastructure  in the transport and environment fields; 

Whereas the Phare programme set up by  Regulation  (EEC) No 3906/89, as last  amended 
by  Regulation  (EC) No 753/96, shall  in  future  focus  on the  essential  priorities  linked  to 
adoption  of  the  acquis  communautaire,  i.e.  building  up  the  administrative  and 
institutional  capacities  of  the  applicant  countries  and  financing  investments  designed  to 
help them comply with Community  law as soon as possible; 

Whereas  it  is  important  to  ensure  that  Community  operations  under  the  three  pre-
accession instruments achieve optimum economic  impact; 

Whereas  the  above  instruments  should  remain  distinct  but  there  must  be  coordination 
between  operations  under  them  as  well  as  with  operations  funded  by  the  European 
Investment  Bank,  the  European  Bank  for  Reconstruction  and  Development,  the 
Community's  other  financial 
international  financial 
institutions, 

instruments  and 

the  other 

HAS ADOPTED THIS REGULATION: 

Article 1 

Coordination  and  coherence  between  assistance  granted  in  the  framework  of  the  pre-
accession  strategy  under  Phare, the agricultural  instrument  and  the  structural  instrument 
shall be ensured  in accordance with this Regulation. 

Article 2 

Measures to improve the structure of agricultural  holdings, the processing and marketing 
of  agricultural  and  fisheries  products,  phytosanitary  and  veterinary  inspection  and  the 
quality of foodstuffs  shall be financed  by the prc-accession  aid agricultural fund  set up by 
Regulation  No  ..../...  Funding  shall  also  be  provided  for  integrated  rural  development, 
including rural infrastructure  and agri-environment  schemes. 

Article 3 

Investment  projects  in  the  following  areas  shall  be  financed  from  the  pre-accession  aid 
structural  fund  established by Regulation No  ...: 

measures  in  the  environment  sector  which  allow  the  beneficiary  countries  to 
comply  with  the  requirements  of  the  acquis  in  relation  to  the  environment  and 
with the objectives of the Accession  Partnerships; 

measures  relating  to  transport  infrastructure  designed  to  promote  sustainable 
modes of transport,  in particular those that constitute projects  of common  interest 
based  on  the  criteria  of  Council  Decision  1692/96  and  measures  allowing  the 
beneficiary  countries to comply with the objectives of the Accession  Partnerships; 
this  shall  include  inter-connection  and  interoperability  of  national  networks  as 
well as with the trans-European networks together with access to such networks. 

Article 4 

1.  Funding under the Phare programme shall  focus on the main priorities for the adoption 
of  the  acquis  communautaire,  i.e.  building  up  the  administrative  and  institutional 
capacities of the applicant states and investment except, as regards the applicant states, 
for the type of investments referred  to in Articles  1  and 2 above. 

2.  However,  investment  in  the  fields  of  the  environment  or  transport  essential  to  the 
completion  of  integrated  programmes  for  industrial  reconstruction  or  regional  and 
rural development may also be allowed  under this Regulation. 

Article 5 

Aid  for  schemes  or  measures  financed  in  the  framework  of  pre-accession  aid  may  be 
granted from one only of the instruments referred  to in this Regulation. 

Article 6 

Financing of the schemes or measures provided  for  in this Regulation  shall be subject  to 
compliance  with  the  conditions  laid  down  in  the  Accession  Partnerships  and  to  the 
relevant  provisions  of  Regulations  (EEC)  Nos  3906/89  of  18  December  1989,  as  last 
amended  by  Regulation  (EC)  No  753/96  of  22  April  1996, 
.../..  (agriculture)  and  ...A. 
(ISPA)  and of this Regulation. 

Article 7 

Beneficiary  states  shall  be  systematically  required  to  contribute  to  the  financing  of 
investments  in  order  to  optimise  the  economic  impact  of  Community  operations 
implemented  under the three instruments referred  to in this Regulation. 

Article  8 

Schemes or measures financed under the three instruments referred  to in Articles 2, 3 and 
4  above  shall  be  decided  in  accordance  with  the  provisions  laid  down  in  the  relevant 
Regulation relating to that instrument. 

A  Coordination  Committee  shall  be  set  up  in  the  Commission  to  be  responsible  for 
coordinating  operations  in the  context  of  this  Regulation.  The  Committee  shall  be  made 
up  of  representatives  of  the  Member  States  and  chaired  by  the  representative  of  the 
Commission. 

The EIB shall  appoint a non-voting representative to the Committee. 

The  representative  of  the  Commission  shall  submit  to  the  Committee  a  draft  of  the 
measures  to be taken. The  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,  if 
necessary by taking a vote. 

The opinion  shall  be  recorded  in  the  minutes;  in  addition  each  Member  State  shall  have 
the right to ask to have its position  recorded  in the minutes. 

The  Commission  shall  take  the  utmost  account  of  the  opinion  delivered  by  the 
Committee.  It shall  inform  the  Committee  of  the  manner  in  which  its  opinion  has  been 
taken into account. 

Coordinating  measures  to  be  taken  shall  include,  in  particular,  general  guidelines  and 
establishing the multiannual  programme of pre-accession  aid. 

The  opinions  of  the  Committee  shall  be  brought  to  the  attention  of  the  Committees 
established  by  Regulations  (EEC)  Nos  3906/89,  as  last  amended  by  Regulation  (EC)  No 
753/96,  ...A. and  .../... 

The Committee  shall  draw up its rules of procedure. 

Article 9 

The Commission  shall ensure coordination  and coherence between operations  undertaken 
pursuant  to  this  Regulation  with  contributions  from  the  Community  budget,  and  with 
operations  funded  by  the  European  Investment  Bank,  the  other  financial  instruments  of 
the Community and the international financial institutions. 

Article 10 

1.  The Commission  shall  implement  the Community  aid  in accordance  with  the rules of 
transparency,  the Community's  financial  regulation  and  the  rules and  procedures  laid 
down in respect of each  instrument. 

2.  Pre-accession  aid  shall  also  cover  expenditure  relating  to  the  monitoring,  inspection 

and evaluation of operations. 

3.  Financing  decisions  and  any  contracts  or  implementing 

instruments  resulting 
therefrom  shall expressly provide for supervision  by the Commission  and the Court of 
Auditors to be carried out on the spot, i f necessary. 

Article 11 

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

It shall apply from  1  January 2000. 

Done at Brussels 

For the Council, 

The President 

ISSN 0254-1475 

COM(98)  150 final 

DOCUMENTS 

EN 

06  11  03  01 

Catalogue  number  :  CB-CO-98-186-EN-C 

ISBN  92-78-32433-7 

Office  for Official  Publications of the European  Communities 

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