Decision No 4/98 of the Association Council, association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part of 23 November 1998 adopting the terms and conditions for the participation of Bulgaria in the Community programme in the field of small and medium- sized enterprises
Date: 1998-11-23
Institutions: EC–Bulgaria Association Council
Subjects: Bulgaria, EU programme, association agreement (EU), financing of the EU budget, small and medium-sized enterprises

9.2.1999

EN

Official  Journal  of  the  European  Communities

L 35/23

DECISION  No  4/98  OF  THE  ASSOCIATION  COUNCIL,

association  between  the  European  Communities  and  their  Member  States,  of  the  one  part,  and
the  Republic  of  Bulgaria,  of  the  other  part

adopting  the  terms  and  conditions  for  the  participation  of  Bulgaria  in  the  Community
programme  in  the  field  of  small  and  medium-sized  enterprises

of  23  November  1998

(1999/111/EC)

THE  ASSOCIATION  COUNCIL,

HAS  DECIDED  AS  FOLLOWS:

Having  regard  to  the  Europe  Agreement  establishing  an
association between the European Communities and their
Member  States,  of  the  one  part,  and  the  Republic  of
Bulgaria,  of  the  other  part (1),

Having  regard  to  the  Additional  Protocol  to  the  Europe
Agreement  establishing  an  association  between 
the
European  Communities  and  their  Member  States,  of
the  one  part,  and  the  Republic  of  Bulgaria,  of  the
other  part (2),  concerning  Bulgaria’s  participation 
in
Community programmes, and in particular Articles 1 and
2  thereof,

Whereas  according  to  Article  1  of  the  said  Additional
Protocol  Bulgaria  may  participate 
in  Community
framework programmes, specific programmes, projects or
other  Community  actions  notably  in  the  field  of  small
and  medium-sized  enterprises;

Whereas  according  to  Article  2  of  the  said  Additional
Protocol the terms and conditions for the participation of
Bulgaria in the activities referred to in Article 1 are to be
decided  by  the  Association  Council,

Article  1

Bulgaria  shall  participate 
in  the  third  multiannual
programme  for  small  and  medium-sized  enterprises
(SMEs) in the European Union (1997 to 2000) according
to  the  terms  and  conditions  set  out  in  Annexes  I  and  II
which  shall  form  an  integral  part  of  this  Decision.

Article  2

This  Decision  shall  apply  for  the  duration  of  the
programme.

Article  3

This Decision shall enter into force on the first day of the
month  following  its  adoption.

Done  at  Brussels,  23  November  1998.

For  the  Association  Council

The  President

N.  MIHAILOVA

(1) OJ  L  358,  31.12.1994,  p.  2.
(2) OJ  L  317,  30.12.1995,  p.  25.

L 35/24

EN

Official  Journal  of  the  European  Communities

9.2.1999

ANNEX  I

TERMS  AND  CONDITIONS  FOR  THE  PARTICIPATION  OF  BULGARIA  IN  THE  THIRD
MULTIANNUAL  PROGRAMME  FOR  SMALL  AND  MEDIUM-SIZED  ENTERPRISES  (SMEs)  IN  THE
EUROPEAN  UNION  (1997  TO  2000)

1. Bulgaria will participate in all activities of the third multiannual programme for small and medium-sized
enterprises  (SMEs)  in  the  European  Union  (1997  to  2000)  (hereinafter  called  ‘the  programme’),  except
for the organisation of IBEX events in 1998 and 1999, in conformity, unless otherwise provided in this
Decision,  with  the  objectives,  criteria,  procedures  and  time  limits  laid  down  in  Council  Decision
97/15/EC  of  9  December  1996  on  a  third  multiannual  programme  for  small  and  medium-sized
enterprises  (SMEs)  in  the  European  Union  (1997  to  2000) (1),  and  in  particular  Article  7(1)  thereof.

2. The terms and conditions for the submission, assessment and selection of applications related to eligible
institutions,  organisations  and  individuals  of  Bulgaria  will  be  the  same  as  those  applicable  to  eligible
institutions,  organisations  and  individuals  of  the  Community.

3. Where  appropriate,  in  order  to  ensure  the  Community  dimension  of  the  programme,  transnational
projects and activities proposed by Bulgaria will be required to include a minimum number of partners
from the Member States of the Community. This minimum number will be decided in the framework of
the  implementation  of  the  programme,  taking  into  account  the  nature  of  the  various  activities,  the
number  of  partners  in  a  given  project  and  the  number  of  countries  participating  in  the  programme.

4. Bulgaria will pay each year a contribution to the general budget of the European Communities to cover
the costs resulting from its participation in the programme (see Annex II). The Association Committee is
entitled  to  adapt  this  contribution  whenever  necessary.

5. The Member States of the Community and Bulgaria will make every effort, within the framework of the
existing  provisions,  to  facilitate  the  free  movement  and  residence  of  all  eligible  persons  to  the
programme  moving  between  Bulgaria  and  the  Member  States  of  the  Community  for  the  purpose  of
participating  in  activities  covered  by  the  Decision.

6. Without prejudice to the responsibilities of the Commission and the Court of Auditors of the European
Community  in  relation  to  the  evaluation  of  the  programme  according  to  the  Decision  on  a  third
multiannual  programme  for  small  and  medium-sized  enterprises  (SMEs)  in  the  European  Union
(Article  6),  the  participation  of  Bulgaria  in  the  programme  will  be  continuously  evaluated  on  a
partnership  basis  involving  Bulgaria  and  the  Commission  of  the  European  Communities.  Bulgaria  will
submit  the  necessary  reports  to  the  Commission  and  take  part  in  other  specific  activities  set  out  by  the
Community  in  that  context.

7. Without  prejudice  to  the  procedures  referred  to  in  Article  4  of  the  Decision  on  a  third  multiannual
programme  for  small  and  medium-sized  enterprises  (SMEs)  in  the  European  Union,  Bulgaria  will  be
invited  to  coordination  meetings  on  any  question  concerning  the  implementation  of  this  Decision  prior
to  regular  meetings  of  the  Programme  Committee.  The  Commission  will  inform  Bulgaria  about  the
results  of  such  regular  meetings.

8. The language to be used as regards the application process, contracts, reports to be submitted and other
administrative  arrangements  for  the  programme  will  be  one  of  the  official  languages  of  the
Community.

(1) OJ  L  6,  10.1.1997,  p.  25.

9.2.1999

EN

Official  Journal  of  the  European  Communities

L 35/25

ANNEX  II

FINANCIAL  CONTRIBUTION  OF  BULGARIA  TO  THE  THIRD  MULTIANNUAL  PROGRAMME
FOR  SMALL  AND  MEDIUM-SIZED  ENTERPRISES  (SMEs)  IN  THE  EUROPEAN  UNION
(1997  TO  2000)

1. The  financial  contribution  of  Bulgaria  will  cover:

— financial  support  from  the  programme  to  the  participation  of  Bulgarian  entities  in  activities  as

defined  in  Annex  I.1,

— supplementary costs of an administrative nature related to the management of the programme by the

Commission  stemming  from  Bulgaria’s  participation.

2. For  every  financial  year,  the  aggregated  amount  of  subsidies  or  any  other  financial  support  received
from  the  programme  by  the  Bulgarian  beneficiaries  will  not  exceed  the  contribution  paid  by  Bulgaria,
after  deduction  of  the  supplementary  administrative  costs.

Should  the  contribution  paid  by  Bulgaria  to  the  general  budget  of  the  European  Communities,  after
deduction of the supplementary administrative costs, be higher than the aggregated amount of subsidies
or other financial support received by the Bulgarian beneficiaries from the programme, the Commission
will  transfer  the  balance  to  the  next  budgetary  exercise,  and  it  will  be  deducted  from  the  following
year’s  contribution.  Should  such  a  balance  be  left  when  the  programme  comes  to  an  end,  the
corresponding  amount  will  be  reimbursed  to  Bulgaria.

3. Bulgaria’s  annual  contribution  will  be  ECU  726 102  in  1998  and  1999  and  ECU  833 102  in  2000.
From  these  sums,  an  amount  of  ECU  47 502  in  1998  and  1999  and  ECU  54 502  in  2000  will  cover
supplementary  administrative  costs  related  to  the  management  of  the  programme  by  the  Commission
stemming  from  Bulgaria’s  participation.

4. The  financial  regulations  applicable  to  the  general  budget  of  the  European  Communities  will  apply,

notably  to  the  management  of  the  contribution  of  Bulgaria.

Upon entry into force of this Decision and at the beginning of each following year, the Commission will
send  to  Bulgaria  a  call  for  funds  corresponding  to  its  contribution  to  the  costs  under  this  Decision.

This  contribution  will  be  expressed  in  ecus  and  paid  into  an  ecu  bank  account  of  the  Commission.

Bulgaria will pay its contribution to the annual costs under this Decision according to the call for funds
and  at  the  latest  three  months  after  the  call  for  funds  is  sent.  Any  delay  in  the  payment  of  the
contribution  shall  give  rise  to  the  payment  of  interest  by  Bulgaria  on  the  outstanding  amount  from  the
due  date.  The  interest  rate  corresponds  to  the  rate  applied  by  the  European  Monetary  Cooperation
Fund,  for  the  month  of  the  due  date,  for  its  operations  in  ecus,  increased  by  1,5 %.

5. Bulgaria  will  pay  the  supplementary  administrative  costs  referred  to  in  paragraph  3  from  its  national

budget.

6. Of  the  remaining  costs  of  its  participation  in  the  programme,  Bulgaria  will  pay  ECU  0  in  1998,  ECU

97 719  in  1999  and  ECU  278 739  in  2000  from  its  national  budget.

Subject  to  regular  PHARE  programming  procedures,  the  remaining  ECU  678 600  in  1998,  ECU
580 881  in  1999  and  ECU  499 861  in  2000  will  be  paid  from  Bulgaria’s  annual  PHARE  allocation.