Re-examined proposal for a Council Regulation (EC) on decentralised cooperation
Date: 1998-07-08
Institutions: European Commission
Subjects: cooperation policy, developing countries, development aid, financing method, regional cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 08.07.1998 

COM(1998) 408  final 

95/0159 (SYN) 

Re-examined proposal for a 

COUNCIL REGULATION (EC) 

ON DECENTRALISED COOPERATION 

(presented by the Commission pursuant to Article 189 c (d) 
of the EC Treaty) 

EXPLANATORY  MEMORANDUM 

(concerning  the  amendments  by  Parliament  at  second  reading  under  the  cooperation 
procedure - those accepted by the Commission and those rejected) 

On 31 August  1995 the Commission presented to the Council  and Parliament a proposal 
Tor a Council Regulation on decentralised  cooperation. 

Based on Article  130w of the Treaty, this proposal for a Council  Regulation  is subject to 
the cooperation procedure (Article  189c of the Treaty). 

According  to  the  cooperation  procedure,  Parliament  expressed  its  opinion  at  the  first 
reading on  15 December 1995. 

( )n 5 November  1997 the Council adopted a common position. 

On  1  April  Parliament  delivered  its  opinion  at  the  second  reading,  adopting  17 
amendments (EP 167.396). 

Under  Article  189c(d)  of  the  EC  Treaty  the  Commission  is  presenting  a  re-examined 
proposal incorporating those amendments that it accepts. 

The  re-examined  proposal  lays  down  arrangements  for  the  management  of  the  budget 
heading for decentralised cooperation. 

2 

COMMENTS ON THE AMENDMENTS ADOPTED BY PARLIAMENT  AT THE 
SECOND READING 

1.  ANALYSIS OF THE AMENDMENTS ACCEPTED/REJECTED 

The amendments adopted at the second reading fall into two categories: 

1.  Those introducing an acceptable change which the Commission has accepted: 

-  Amendments  1 and 3 (new recitals) and amendment  4 (Article  1 ) are acceptable as 
they  define  the aims of decentralised  cooperation and the use of the  budget heading 
which the Commission intends to introduce; 

-  Amendment  2  (third  recital)  and  amendment  5  (Article  4)  on  the  deletion  of  the 
financial  reference  amount as the Council  does not enjoy  sole  budgetary  authority in 
that respect; 

-  Amendment  6  (Article  5(4))  which  restores  the  provision 

in  the 
Commission's  original  proposal  relating to the necessity  for measures to be taken to 
emphasise the Community character of aid. 

included 

-  Amendment  7  (Article  5(5)(b))  which does  not  radically  alter  the  meaning  of  the 

Article and has already been accepted at the first reading. 

Amendment  13 (Article  10, second paragraph) although there is little justification  for 
providing "detailed" information in the "summary" to be included in the annual report, 
the Commission agrees to ensure that partners in operations are clearly mentioned. 

-  Amendments  14,15 and 16 (re Articles  10, third paragraph,  11 and 12) which cut out 
some  of  the  additional  obligations  included  in  the  Council  common  position  in 
relation  to  the  provision  of  information  about  operations  undertaken  by  the 
Commission and the results of evaluations. 

-  Amendment  17 (Article  13, second paragraph) which deletes the limit on the period 
of  application  of  the  Regulation  (cf.  Commission  statement  on  this  point  when  the 
common position was adopted). This is consistent with acceptance of Amendment 5. 

.2.  Those which are unacceptable and which the Commission has not taken up: 

Amendment  11,  part  1,  second  sentence,  and  part  2  (re  Article  8)  regarding 
Parliament's  involvement  in the exchange of views on the general  guidelines and the 
transparency  of  proceedings  in  this  context.  The  Commission  cannot  accept  this 
amendment  as  the  approach  advocated  by  Parliament  does  not  comply  with  the 

1 

procedures  approved  in  the  Decision  of  July  1987  in  relation  to  committee 
arrangements. 

-  Amendment  11, part  1, first sentence  (re  Article  8)  which,  for  the  sake  of  policy 
consistency,  cannot  be  accepted  even  though  it  alters  the  provision  on  committee 
procedures  along  similar  lines  to  the  Commission's  original  proposal,  because  it 
departs  from  the  hard-won  compromise  agreed  by  the  Commission  when  the 
Council's common position was adopted. 

-  Amendment  12  (re  Article  9)  which  concerns  the  Article  providing  for  the  annual 
meeting  on the general  guidelines  and proposes  its deletion  as a logical  consequence 
to the fact that its contents would be moved to Article 8 as a result of amendment  11, 
part  1, first sentence. As the Commission  rejects  the latter amendment,  the provision 
in question has to be included at Article 9 as it appears in the common position. 

-  Amendment  8  (Article  7(2))  regarding  deletion  of  the  provision  introduced  by  the 
Council  concerning  the  conditions  for  the  processing  and  adoption  of  financing 
decisions  by  the  management  committee  set  up by  Article  8 (all  operations  above a 
ceiling  of  ECU  1 million).  Although  the  Commission  asked  for  an  expression  of  its 
disappointment at the amount of the ceiling chosen by the Council to be entered when 
the common position was adopted, it cannot agree to this change. Article 7(2) must be 
retained  since  it  is  linked  to  the  introduction  of  Article  8  (setting  up  a  type  lib 
management  committee)  which  was  the  upshot  of  a  hard-won  compromise  in  the 
Council  which the  Commission  has endorsed  (see above Amendment  11, part  1, first 
sentence). 

-  Amendments 9 and 10 (Article 7(5) and (6)) designed to extend the opportunities for 
developing  countries  as  regards  their  eligibility  for  contracts  and  introduce  the 
possibility  of  preferential  treatment  (where  the  quality  of  offers  is  the  same)  for 
applicants  from  the  recipient  country  and  from  developing  countries  in  the  same 
region.  Although  it  appreciates  the  motives  behind  the  changes  proposed,  the 
Commission  cannot  agree  to  them  on  the  grounds  of  consistency  with  the  solutions 
applied  (with  regard  to  participation  in  invitations  to  tender  and  contracts  and  to 
supplies) in similar provisions contained in several regulations adopted in recent years 
in the field of development cooperation. 

M 

RE-EXAMINED PROPOSAL FOR A  . 

COUNCIL REGULATION (EC) No 

/98 

of 

on decentralised cooperation 

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 laid down in Article  189c of the Treaty,0 

Whereas decentralised  cooperation is a new approach to development  cooperation which 

places the agents at the focal point of implementation and hence pursues the dual aims of 

gearing operations to needs and making them viable; 

Whereas  the  importance  of  a  decentralised  approach  to  development  cooperation  has 

been  emphasised  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,*!) 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; 

Whereas the budget heading for decentralised  cooperation  is intended to help bring about 

a real change in the long term to the Union's development cooperation procedures; 

0) 

<>J No  1,52,27.2.1992, p.  I. 

Whereas  decentralised  cooperation  makes  an  important  contribution  to  achieving  the 

cooperation policy objectives of the Community as set out in Article  130u of the Treaty; 

Whereas administrative procedures should be established accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

The  Community  shall  support  operations  and  initiatives  on  sustainable  development 

undertaken  by  decentralised  cooperation  agents  of  the  Community  and  the  developing 

countries, in particular those designed to promoter 

-  a more participatory  approach to development, responsive to the needs and  initiatives 

of the people in the developing countries; 

--  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. 

All  developing  countries  shall  be  eligible  for  operations  to  promote  decentralised 

cooperation. 

Article 2 

The priority fields for operations under this Regulation shall be: 

- 

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

economic development  in the developing countries; 

information  and the mobilisation of decentralised cooperation agents; 

support  for  institutional  building and strengthening the capacity  of cooperation  agents 

for action; 

-  methodological  back-up and follow-up  for operations. 

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  organisations,  local  traders'  associations  and  local 

citizens'  groups, cooperatives,  trade  unions, women's  and  youth  organisations,  teaching 

and  research  institutions,  churches  and  any  non-governmental  associations  likely  to 

contribute to development. 

Article 4 

1. The  annual  appropriations  shall  be  authorised  by  the  budgetary  authority  within  the 

limits of the financial  perspective. 

2. 

The  budgetary  authority  shall  determine  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. 

Article 5 

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.  Necessary  measures  will  be  taken  to  emphasise  the 

Community character of aid provided under this Regulation. 

3 

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 operations by means of exchange of  information 

between  the  representatives  of  the  Commission  and  Member  States  in  the 

recipient country or countries concerned. 

Article 6 

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

Article 7 

1.  The  Commission  shall  appraise,  decide  and  administer  operations  covered  by  this 

Regulation  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 evaluation shall take into account the following  factors: 

-  effectiveness  and viability of operations; 

-  cultural  and. social  aspects, aspects relating to equal opportunity  for  men and women, 

and the 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,  where 

circumstances  warrant, 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. 

Article 8 

1.  The  Commission  shall  be  assisted  by  the  geographically  determined  Committee 

competent for development. 

2.  The Commission representative  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.  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 the Committee, 

they  shall  be communicated  by the Commission  to the Council  forthwith.  In that 

event: 

the Commission  shall  defer  application  of the  measures  which  it  has decided  on  for a 

period of one month from the date of such communication; 

3 

- 

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. 

The summary  shall in particular give details of the decentralised  cooperation  agents with 

whom contracts have been concluded. 

Article 11 

The  Commission  shall  make  a  regular  evaluation  of  operations  financed  by  the 

Community,  in  order  to  establish  whether  the  objectives  targeted  by  these  operations 

have been attained and in order to give indications to improve the effectiveness  of  future 

operations. 

Article 12 

This Regulation shall enter into force on the third day following  that of its publication in 

the Official  Journal of the European Communities. 

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

States. 

Done at Luxembourg, 

For the Council 

The President 

A-o 

ISSN 0254-1475 

COM(98) 408 final 

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