Proposal for a Council Regulation (EC) amending Council Regulation (EC) No 1734/94 of 11 July 1994 on financial and technical cooperation with the Occupied Territories
Date: 1998-06-26
Institutions: European Commission
Subjects: cooperation policy, financial cooperation, international relations, occupied territory, technical cooperation

12.8.98

EN

Official  Journal  of  the  European  Communities

C  253/15

II

(Preparatory  Acts)

COMMISSION

Proposal  for  a  Council  Regulation  (EC)  amending  Council  Regulation  (EC)  No  1734/94  of
11  July  1994  on  financial  and  technical  cooperation  with  the  Occupied  Territories

(98/C  253/13)

COM(1998)  392  final  -  98/0220(SYN)

(Submitted  by  the  Commission  on  29  June  1998)

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,

Acting  in  accordance  with  the  procedure  referred  to  in
Article  189c  of  the  Treaty 
in  cooperation  with  the
European  Parliament,

Whereas  Concil  Regulation  (EC)  No  1734/94  of  11  July
1994  on  financial  and  technical  cooperation  with  the
Occupied  Territories(cid:216)(˛),  amended  by  Regulation  (EC)
No  .(cid:216).(cid:216)./.(cid:216).  lays  down  detailed  arrangements  and  rules  for
administering  the  Community  programme  for  aid  and
assistance  to  the  Palestinian  population  in  the  West  Bank
and  Gaza  Strip;

Whereas  according  to  that  Regulation  the  Community
shall  implement  financial  and  technical  cooperation  with
the  West  Bank  and  Gaza  Strip  under  a  five(cid:220)year
programme;  whereas  this  programme  expires  by  the  end
of  1998;

Whereas  the  persistent  deadlock  in  the  peace  process
that  prevails  is  the  worst  crisis  since  the  Middle  East
peace  process  was 
inter(cid:220)
national  economic  assistance  has  nevertheless  succeeded
in  keeping  the  peace  process  alive  and  providing  support
for  the  Palestinian  Authority;

in  1991;  whereas 

launched 

Whereas  the  objective  is  to  prevent  any  further  deterio(cid:220)
ration  of  the  Palestinian  economy  by  minimising  and
cancelling  out  the  effects  of  closures  and  other  obstacles
to  development  as  well  as  to  contribute  to  a  sound

management  and 
the  Palestinian
Authority  and  to  consolidate  it  by  means  of  institutional
reinforcement;

fiscal  balance  of 

the  ultimate  aim 

Whereas 
the  achievement  of
sustainable  economic  and  social  development  and  to
foster  democracy,  human  rights  and  the  development  of
the  civil  society;

is 

Whereas  given  the  present  situation  the  Community
should  pursue  its  aid  effort;  whereas  to  this  end  an
eight(cid:220)year  period  of  assistance  (1999  to  2006)  should  be
launched  and  Regulation  (EC)  No  1734/94  should  be
amended  accordingly;  the  Regulation  should  be  reviewed
by  the  Council  within  two  years  and  not  later  than  31
December  2000  in  order  to  take  into  account  recent
development  and  bring  it  into  line  with  the  reviewed
Council  Regulation  (EC)  No  1488/96  of  23  July  1996
on 
to  accompany
(MEDA)  the  reform  of  economic  and  social  structures  in
the 
the  Euro(cid:220)Mediterranean  partner(cid:220)
ship(cid:216)(ˇ).

technical  measures 

framework  of 

financial  and 

Whereas  "the  Occupied  Territories’  should  be  replaced
by  "the  West  Bank  and  Gaza  Strip’  throughout  the  text
of  Regulation  (EC)  No  1734/94;

Whereas  Article  4  of  Regulation  (EC)  No  1734/94
provides  that  all  financing  decisions  on  projects  and
operations  shall  be  adopted 
in  accordance  with  the
procedure  laid  down  in  Article  5;  whereas  in  order  to
allow  for  rapid  and  flexible  reactions  and  to  increase
financing  decisions  exceeding  ECU
expediency  only 
2(cid:216)000(cid:216)000  other 
interest(cid:220)rate
than 
subsidies  on  Bank  loans  shall  be  adopted  in  accordance
with  that  procedure;

those  relating 

to 

(˛)(cid:217)OJ  L  182,  16.7.1994,  p.  4.

(ˇ)(cid:217)OJ  L  189,  30.7.1996,  p.  1.

C  253/16

EN

Official  Journal  of  the  European  Communities

12.8.98

HAS  ADOPTED  THIS  REGULATION:

Article  1

Regulation  (EC)  No  1734/94 
follows:

is  hereby  amended  as

1.(cid:217)Article  1  is  replaced  by  the  following:

"Article  1

1.(cid:218)(cid:217)The  Community  shall  implement  financial  and
technical  cooperation  with  the  West  Bank  and  the
Gaza  Strip  under  an  eight(cid:220)year  period  (1999  to  2006)
their  achievement  of
with 
sustainable  economic,  political  and 
social  devel(cid:220)
opment.

the  aim  of  aiding 

later 

two  years  and  not 

than  31
2.(cid:218)(cid:217)Within 
December  2000,  the  Council  shall  review  the  Regu(cid:220)
lation  in  order  to  take  into  account  recent  devel(cid:220)
opment  in  the  area  and  to  bring  it  into  line  with
Council  Regulation  (EC)  No  1488/96  of  23  July  1996
on  financial  and  technical  measures  to  accompany
(MEDA)  the  reform  of  economic  and  social  structures
in  the  framework  of  the  Euro(cid:220)Mediterranean  part(cid:220)
nership(cid:216)(*).

(*)(cid:217)OJ  L  189,  30.7.1996,  p.  1.’

(c) In  paragraph  5  and  paragraph  6  "the  Occupied
Territories’  is  replaced  by  "the  West  Bank  and  the
Gaza  Strip’.

3.(cid:217)In  Article  3  "the  Occupied  Territories’  is  replaced  by

"the  West  Bank  and  the  Gaza  Strip’.

4.(cid:217)Article  4  is  amended  as  follows:

"1.(cid:218)(cid:217)Financing  decisions  on  projects  and  operations
under  this  Regulation  exceeding  ECU  2(cid:216)000(cid:216)000  other
than  those  relating  to  interest(cid:220)rate  subsidies  on  Bank
loans  shall  be  adopted 
the
procedure  laid  down  in  Article  5.

in  accordance  with 

2.(cid:218)(cid:217)Financing  decisions  on  overall  allocations  for
technical  cooperation,  training  and  trade  promotion
shall  be  adopted  in  accordance  with  the  procedure
laid  down  in  Article  5.  Within  an  overall  allocation,
the  Commission  shall  adopt  financing  decisions  not
exceeding  ECU  2(cid:216)000(cid:216)000.

in  Article  5  shall  be
The  Committee  referred  to 
informed  systematically  and  promptly  and 
in  any
event  before  the  next  meeting,  of  financing  decisions
for  measures  not  involving  more  than  ECU  2(cid:216)000(cid:216)000.

financing 

amending 

decisions
3.(cid:218)(cid:217)Decisions 
adopoted  in  accordance  with  the  procedure  laid  down
in  Article  5  shall  be  taken  by  the  Commission  where
they  do  not  entail  any  substantial  amendments  or
in  excess  of  20(cid:216)%  of  the
additional  commitments 
original  commitment.  The  Commission  shall  inform
the  Committee  referred  to  in  Article  5  immediately  of
any  such  decisions.’

2.(cid:217)Article  2  is  amended  as  follows.

5.(cid:217)Article  5(1)  is  amended  as  follows:

(a)(cid:217)In  paragraph  1  the  words  "and  the  development  of
civil  society’  is  added  after  ".(cid:216).(cid:216).  human  rights’.

"(1)(cid:218)(cid:217)The  Commission  shall  be  assisted  by  the  MED
Committee  set  up  pursuant  to  Article  11  of  Regu(cid:220)
lation  (EC)  No  1488/96’

(b) In  paragraph  3  the  following  subparagraph 

is

Article  2

added:

"The  above  actions  aim  i.a.  at  the  promotion  of
employment  and  the  creation  of  employment  by
improving 
services  and  combating
poverty’.

social 

the 

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

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

in 

its  entirety  and