Proposal for a Council Regulation (EC) concerning the financial instrument for the environment (LIFE)
Date: 1998-12-09
Institutions: European Commission
Subjects: EU environmental policy, EU financial instrument, EU programme, environmental protection, third country

C  15/4

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II

(Preparatory  Acts)

COMMISSION

Proposal  for  a  Council  Regulation  (EC)  concerning  the  financial 

instrument  for  the

environment  (LIFE)

(1999/C  15/04)

COM(1998)  720  final  -  98/0336(SYN)

(Submitted  by  the  Commission  on  10  December  1998)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community  and  in  particular  Article  130s(1)  thereof,

Having  regard  to  the  proposal  from  the  Commission,

Having  regard  to  the  opinion  of  the  Economic  and
Social  Committee,

Having  regard  to  the  opinion  of  the  Committee  of  the
Regions,

Acting  in  accordance  with  the  procedure  laid  down  in
Article  189c  of  the  Treaty,  in  cooperation  with  the
European  Parliament,

instrument  for  the  environment
Whereas  a  financial 
should  be  established  to  contribute  to  the  development
and  implementation  of  Community  policy  and  legislation
regarding  the  environment;

Whereas  Council  Regulation  (EEC)  No  1973/92  of
21  May  1992  establishing  a  financial  instrument  for  the
environment  (LIFE)(cid:216)(˛)  was  substantially  amended  by
Regulation  (EC)  No  1404/96(cid:216)(ˇ);  whereas,  for  reasons  of
clarity,  that  Regulation  should  be  recast  when  further
amendments  are  made;

Whereas  the  financial  instrument  for  the  environment,
LIFE, 
in  phases;  whereas  the
second  phase  ends  on  31  December  1999;

implemented 

is  being 

Whereas,  given  the  positive  contribution  of  LIFE  to  the
attainment  of  the  objectives  of  Community  policy  on  the
environment  and  in  accordance  with  Article  14  of  Regu(cid:220)
lation  (EEC)  No  1973/92,  a  third  phase  for  a  period  of
five  years  ending  on  31  December  2004  should  be  set  in
motion;

(˛)(cid:217)OJ  L  206,  22.7.1992,  p.  1.
(ˇ)(cid:217)OJ  L  181,  20.7.1996,  p.  1.

the 

efficiency  and 

transparency  of 

the
Whereas 
implementation  procedures  for  LIFE  and  the  procedures
for  providing  information  to  the  public  and  potential
beneficiaries  should  be  improved  by  identifying  clearly
the 
the
three 
instrument;

component  parts  which 

constitute 

Whereas  the  experience  gained  with  LIFE  during  the
second  phase  has  highlighted  the  need  to  concentrate
efforts  by  specifying  more  clearly  the  areas  of  activity
able 
aid,
simplifying  the  management  burden  and  improving  the
measures 
the
experience  gained  and  the  results  achieved;

information  concerning 

from  Community 

to  disseminate 

to  benefit 

financial 

Whereas  preparatory  projects  should  concern  the  devel(cid:220)
opment  of  new  Community  activities  in  the  field  of  the
environment;

Whereas  for  third  countries  bordering  on  the  Mediter(cid:220)
ranean  and  the  Baltic  Sea  other  than  the  accession
candidate  countries,  technical  assistance  activities  are
needed  to  create  capacities  and  administrative  structures
in  the  field  of  the  environment;

Whereas  the  Europe  agreements  between  the  European
Communities  and  their  Member  States,  of  the  one  part,
and 
the  accession  candidate  Central  and  Eastern
European  countries,  of  the  other  part,  provide  for  the
in  Community
participation 
programmes, 
the
environment;

those 
of 
in  particular 

countries 
in 

field  of 

the 

Whereas,  while  the  abovementioned  Central  and  Eastern
European  countries  should  normally  themselves  meet  the
costs  arising  from  their  participation,  the  Community
may  decide, 
in
conformity  with  the  rules  applicable  to  the  general
budget  of  the  European  Communities  and  the  relevant
association  agreements, 
the  national
to 
contribution  of  the  country  concerned;

if  necessary,  for  specific  cases  and 

supplement 

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Whereas  the  other  accession  candidate  countries  may,
where  they  make  a  financial  contribution  to  LIFE,
participate  on  conditions  equivalent  to  those  laid  down
for 
the  accession  candidate  Central  and  Eastern
European  countries;

Whereas  mechanisms  should  be  established  so 
that
Community  assistance  may  be  adapted  to  the  particular
features  of  the  projects  to  be  supported;

Whereas  it  is  necessary  to  establish  effective  methods  of
monitoring  and  evaluation  as  well  as  to  ensure  adequate
information  for  potential  beneficiaries  and  for  the  public;

Whereas  a  committee  should  be  set  up  to  assist  the
Commission  in  implementing  this  Regulation;

Whereas  the  Council  should  examine  the  advisability  of
continuing  the  LIFE  action  beyond  the  third  phase,
acting  on  the  basis  of  a  proposal  from  the  Commission;

HAS  ADOPTED  THIS  REGULATION:

Article  1

General  objective

A  financial  instrument  for  the  environment,  hereinafter
referred  to  as  LIFE,  is  hereby  established.

The  general  objective  of  LIFE  shall  be  to  contribute  to
the  development  of  Community  environment  policy,  in
particular  as  regards  the  integration  of  the  environment
into  other  policies  and  the  implementation  and  updating
of  environmental  legislation.

Article  2

Thematic  components  and  general  criteria

LIFE  shall  consist  of  the  three  thematic  components
LIFE(cid:220)Third
LIFE(cid:220)Nature, 
Countries.

LIFE(cid:220)Environment 

and 

The  projects  financed  by  LIFE  shall  meet  the  following
general  criteria:

(a)(cid:217)be  of  Community  interest  by  making  a  significant
contribution  to  the  development  and,  where  appro(cid:220)
priate,  implementation  of  Community  environment
policy  and  legislation,

(b) be  carried  out  by  technically  and  financially  sound

participants,

(c) be 

feasible 
management 
money.

terms  of 

in 
(timetable,  budget)  and  value 

technical  proposals,
for

Priority  may  be  given  to  projects  based  on  a  multi(cid:220)
national  approach.

Article  3

LIFE(cid:220)Nature

1.(cid:218)(cid:217)The  specific  objective  of  LIFE(cid:220)Nature  shall  be  to
contribute  to  the  implementation  of  Council  Directive
79/409/EEC  of  2  April  1979  on  the  conservation  of  wild
birds(cid:216)(˛);  Council  Directive  92/43/EEC  of  21  May  1992
on  the  conservation  of  natural  habitats  and  of  wild  fauna
the  Natura  2000
in  particular, 
and 
European  network.

flora(cid:216)(ˇ);  and, 

2.(cid:218)(cid:217)The  following  shall  be  eligible  for  LIFE(cid:220)Nature:

(a)(cid:217)nature  conservation  projects  which 

the
in  paragraph  1  and
specific  objective 
contribute 
restoring  natural
habitats  and  species  populations  to  a  favourable
conservation  status  within  the  meaning  of  Directive
92/43/EEC.

to  maintaining  or 

set  out 

further 

(b) accompanying  measures  required  to:

(i)(cid:217)prepare  projects 

involving  partners 

in  several

Member  States  ("starter’  measure);

(ii)(cid:217)exchange  experiences  between  projects  ("co(cid:220)op’

measure);

(iii)(cid:217)monitor  and  evaluate  projects  and  disseminate
their  results,  including  the  results  of  projects
decided  upon  during  the  preceding  phases  of
LIFE  ("assist’  measure).

3.(cid:218)(cid:217)Financial 
co(cid:220)financing  of  projects.  The  maximum  rate  shall  be:

assistance 

provided 

shall 

be 

by

(a)(cid:217)50(cid:216)%  for  nature  conservation  projects;  100(cid:216)%  for

accompanying  measures.

(b) By  way  of  exception,  the  rate  provided  for 

in
subparagraph  (a)  shall  be  a  maximum  of  75(cid:216)%  for
projects  concerning  priority  natural  habitats  or
priority  species  within  the  meaning  of  Directive
92/43/EEC  or  the  species  of  birds  referred  to  in
in  danger  of
Directive  79/409/EEC  which  are 
extinction.

(˛)(cid:217)OJ  L  103,  25.4.1979,  p.  1,  as  last  amended  by  Directive

97/49/EC  (OJ  L  223,  13.8.1997,  p.  9).

(ˇ)(cid:217)OJ  L  206,  22.7.1992,  p.  7,  as  last  amended  by  Directive

97/62/EC  (OJ  L  305,  8.11.1997,  p.  42).

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4.(cid:218)(cid:217)Proposals  for  projects  to  be  financed  pursuant  to
paragraph  2(a)  shall  be  submitted  to  the  Commission  by
the  Member  States.  Where  projects  involve  more  than
one  Member  State,  proposals  shall  be  submitted  by  the
Member  State  in  which  the  project  co(cid:220)ordinating  body  is
located.

Proposals  shall  be  submitted  to  the  Commission  before
31  October  of  each  year.  The  Commission  shall  decide
on  these  proposals,  in  accordance  with  paragraph  7,
before  the  following  30  April.

5.(cid:218)(cid:217)Proposals  meeting  the  general  criteria  set  out  in
Article  2(2)  and  the  following  specific  criteria  shall  be
taken  into  consideration:

(a)(cid:217)projects  in  the  European  territory  of  the  Member

States  relating  to:

(i)(cid:217)a  site  proposed  by  a  Member  State  under  Article

4  of  Directive  92/43/EEC,  or

(ii)(cid:217)a 

site  classified  pursuant 

to  Article  4  of

Directive  79/409/EEC,  or

assistance,  the  financial  procedures  and  controls,  and  the
specific  technical  conditions  of  the  project  approved.

the  Commission’s 

initiative,  accompanying
8.(cid:218)(cid:217)At 
measures  to  be  financed  pursuant  to  paragraph  2(b)  shall
be 
interest
published 
the  European
Communities  which  specify  the  specific  criteria  to  be  met.

the  subject  of  calls 

for  expressions  of 

the  Official 

Journal  of 

in 

Article  4

LIFE(cid:220)Environment

1.(cid:218)(cid:217)The  specific  objective  LIFE(cid:220)Environment  shall  be
to  contribute:

(a)(cid:217)to  the  development  of 

innovative  techniques  and

methods  which  make  it  possible:

-(cid:217)to 

in
integrate  environmental  considerations 
land(cid:220)use  development  and  planning,  in  particular
in  urban  areas;

(iii)(cid:217)a  species 

in  Annexes  II  or  IV  to  Directive
to  Directive

in  Annex 

I 

92/43/EEC  or 
79/409/EEC;

(b) projects  in  accession  candidate  countries  to  which
Article  6  applies  relating  to  a  site  of  international
importance  hosting:

(i)(cid:217)a  type  of  habitat  in  Annex  I  or  a  species  in

Annex  II  to  Directive  92/43/EEC;  or

(ii)(cid:217)a  bird 

species 

to  Directive
in  Annex 
79/409/EEC  or  a  migratory  bird  species  present
in  the  Union;  or

I 

(iii)(cid:217)a  type  of  habitat  or  species  not  present  in  the
Community  but  classified  in  Bern  Convention
resolutions  as  being  in  need  of  specific  conser(cid:220)
vation  measures.

6.(cid:218)(cid:217)A  summary  of  the  proposals  received  shall  be
submitted  to  the  Member  States  by  the  Commission.
Upon  request,  it  shall  place  the  original  documents  at  the
disposal  of  the  Member  States  for  consultation.

7.(cid:218)(cid:217)Projects  considered  for  financial  support  under
LIFE(cid:220)Nature  shall  be  subject  to  the  procedure  set  out  in
Article  21  of  Directive  92/43/EEC.

An  outline  decision  by  the  Commission  shall  be  sent  to
the  Member  States  on  the  projects  which  have  been
accepted  and  individual  decisions  shall  be  sent  to  the
financial
beneficiaries 

the  amount  of 

laying  down 

-(cid:217)to  minimise,  by  means  of  a  preventive  approach,
industrial

impacts 

of 

environmental 
the 
production  activities;

-(cid:217)to  recycle  waste  of  all  kinds  and  ensure  the

sound  management  of  waste  streams;

-(cid:217)to  reduce  the  environmental  impact  of  products
through  an  integrated  approach  to  production,
distribution  and  consumption.

(b) to  the  development  of  new  environmental  actions.

2.(cid:218)(cid:217)The 
Environment:

following 

shall  be 

eligible 

for  LIFE(cid:220)

(a)(cid:217)demonstration  projects  which  further  the  objective

set  out  in  paragraph  1(a);

(b) preparatory  projects  which  further  the  objective  set

out  in  paragraph  1(b);

(c) accompanying  measures 

required 

evaluate,
monitor,  and  promote  the  actions  undertaken  during
this  phase  and  during  the  first  two  phases,  for  the
exchange  of  experience  between  projects  and  for  the
dissemination  of 
the  experience
gained  and  the  results  obtained  with  such  actions.

information  on 

to 

assistance 

by
3.(cid:218)(cid:217)Financial 
co(cid:220)financing  of  projects.  The 
rate  of  Community
financial  support  shall  be  a  maximum  of  50(cid:216)%  of  the
eligible  cost.

provided 

shall 

be 

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This  rate  shall  be  a  maximum  of  30(cid:216)%  of  the  eligible  cost
for  projects  expected  to  generate  significant  income.  In
this  case,  the  beneficiaries’  contribution  to  the  financing
shall  be  at  least  as  much  as  the  Community  support.

The  rate  of  Community  financial  support  for  the  accom(cid:220)
panying  measures  shall  be  a  maximum  of  100(cid:216)%  of  the
cost  of  these  actions.

4.(cid:218)(cid:217)As  far  as  demonstration  projects  are  concerned,
guidelines  will  be  established  by  the  Commission,  after
opinion  by  the  Committee  provided  for  in  Article  11,
and  published  in  the  Official  Journal  of  the  European
Communities.

5.(cid:218)(cid:217)Proposals  for  projects  to  be  financed  pursuant  to
paragraph  2(a)  shall  be  submitted  to  the  Commission  by
the  Member  States.  Where  projects  involve  more  than
one  Member  State,  proposals  shall  be  submitted  by  the
Member  State 
the  project  co(cid:220)ordinating
authority  or  body  is  located.

in  which 

Proposals  shall  be  submitted  to  the  Commission  before
31  January  of  each  year.  The  Commission  shall  decide
on  these  proposals,  in  accordance  with  paragraph  10,
before  31  July.

taken 

6.(cid:218)(cid:217)Shall  be 
consideration  proposals
into 
submitted  under  paragraph  2(a)  that  meet  the  general
criteria  set  out  in  Article  2(2)  and  the  following  specific
criteria:

(a)(cid:217)providing  solutions  to  a  problem  which  arises  very
often  in  the  Community,  or  is  of  great  concern  to
some  Member  States;

(b) being  innovative  by  virtue  of  the  technology  or  the

method  applied;

(c) setting  an 

example  and 

representing  progress

compared  with  the  current  situation;

(d) being  capable  of  promoting  widespread  application
of  practices  and  technologies  conducive  to  environ(cid:220)
mental  protection;

(e) aiming  at  developing  and  transferring  know(cid:220)how
which  can  be  used  in  identical  or  similar  situations;

(f) promoting  co(cid:220)operation  in  the  environmental  field;

(g) promoting  sustainability  of  socio(cid:220)economic  activities

from  the  environmental  point  of  view.

7.(cid:218)(cid:217)The  following  costs  shall  be  considered  ineligible:

(a)(cid:217)land  purchase;

(d) research  and  technological  development  activities.

8.(cid:218)(cid:217)At  the  Commission’s  initiative,  preparatory  projects
and  accompanying  measures  to  be  financed  pursuant  to
paragraph  2(b)  and  (c)  shall  be  the  subject  of  calls  for
expression  of  interest  published  in  the  Official  Journal  of
the  European  Communities  which  specify  the  specific
criteria  to  be  met.

9.(cid:218)(cid:217)A  summary  of  the  main  points  and  of  the  content
of  the  proposals  received  under  paragraph  2(a)  and  (b)
shall  be  submitted 
the
Commission.  Upon  request,  it  shall  place  the  original
documents  at  the  disposal  of  the  Member  States  for
consultation.

the  Member  States  by 

to 

10.(cid:218)(cid:217)Projects  considered  for  financial  support  shall  be
subject  to  the  procedure  set  out  in  Article  11.

11.(cid:218)(cid:217)An  outline  decision  by  the  Commission  shall  be
sent  to  the  Member  States  on  the  projects  which  have
been  accepted  and  individual  decisions  shall  be  sent  to
the  beneficiaries  laying  down  the  amount  of  financial
assistance,  the  financial  procedures  and  controls,  and  the
specific  technical  conditions  of  the  project  approved.

Article  5

LIFE(cid:220)Third  Countries

1.(cid:218)(cid:217)The  specific  objective  of  LIFE(cid:220)Third  Countries
shall  be  to  contribute  to  the  establishment  of  capacities
and  administrative  structures  needed 
in  the  environ(cid:220)
mental  sector  and  in  the  development  of  environmental
policy  and  action  programmes 
third  countries
bordering  on  the  Mediterranean  and  the  Baltic  Sea  other
than  the  accession  candidate  countries  to  which  Article  6
applies.

in 

2.(cid:218)(cid:217)The  following  shall  be  eligible  for  LIFE(cid:220)Third
Countries:

(a)(cid:217)technical  assistance  projects  which 

further 

the

objective  set  out  in  paragraph  1;

(b) accompanying  measures 

required 

evaluate,
monitor  and  promote  the  actions  undertaken  during
this  phase  and  during  the  first  two  phases,  for  the
exchange  of  experience  between  projects  and  for  the
dissemination  of 
the  experience
gained  and  the  results  obtained  with  such  actions.

information  on 

to 

(b) studies  not 

specifically  addressing 

the  objective

aimed  at  by  the  financed  projects;

(c) investments  in  major  infrastructures  or  investments
including

of  a  non(cid:220)innovative  structural  nature, 
activities  already  confirmed  on  an  industrial  scale;

3.(cid:218)(cid:217)Financial  assistance 
shall  be  provided  by  co(cid:220)
financing  of  actions.  The  rate  of  Community  financial
support  shall  be  a  maximum  of  70(cid:216)%  of  the  cost  of  the
actions  referred  to  in  paragraph  2(a)  and  a  maximum  of
100(cid:216)%  of  the  cost  of  the  actions  referred  to  in  paragraph
2(b).

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to  be 

for  projects 

4.(cid:218)(cid:217)Proposals 
financed  under
paragraph  2(a)  from  third  countries  shall  be  submitted  to
the  Commission  by  the  relevant  national  authorities.
Where  projects  involve  more  than  one  country,  proposals
shall  be  submitted  by  the  country  in  which  the  project
co(cid:220)ordinating  authority  is  located  or  by  the  international
organisation  acting  to  protect  the  environment  in  the
geographical  area  concerned.

the  subject  of  calls  for  expression  of  interest  published  in
the  Official  Journal  of  the  European  Communities  and
setting  out  the  specific  criteria  to  be  met.

Article  6

Participation  of  accession  candidate  countries

Proposals  shall  be  submitted  to  the  Commission  before
31  January  of  each  year.  The  Commission  shall  decide
on  these  applications  in  accordance  with  paragraph  7
before  31  July.

5.(cid:218)(cid:217)Proposals  which  meet  the  general  criteria  set  out  in
Article  2(2)  and  the  following  specific  criteria  shall  be
taken  into  consideration:

(a)(cid:217)be  of  interest  to  the  Community,  notably  through  its
inter(cid:220)

implementing  regional  and 

contribution  to 
national  guidelines  and  agreements;

(b) contribute  to  an  approach  promoting  sustainable
development  at  international,  national  or  regional
level;

(c) provide  solutions  to  major  environmental  problems

in  the  region  and  the  relevant  sector;

Priority  will  be  given  to  projects  which  will  promote
trans(cid:220)national  or
co(cid:220)operation  at 
regional  level.

trans(cid:220)frontier, 

the 

6.(cid:218)(cid:217)A  summary  of  the  main  points  and  the  content  of
the  proposals  received  from  the  third  countries  shall  be
submitted  to  the  Member  States  by  the  Commission.
Upon  request,  it  shall  place  the  original  documents  at  the
disposal  of  the  Member  States  for  consultation.

7.(cid:218)(cid:217)Projects  considered  for  financial  support  shall  be
subject  to  the  procedure  set  out  in  Article  11.  The
Commission  shall  adopt  a  decision  concerning  the  list  of
projects  selected.

8.(cid:218)(cid:217)The  projects  approved  shall  give  rise  to  a  contract
between  the  Commission  and  the  beneficiaries  setting  out
financial
the  amount  of 
procedures  and  controls,  as  well  as  all  the  specific
technical  conditions  of  the  approved  project.  This  list
proposals  accepted  shall  be  sent  to  the  Member  States.

financial  assistance, 

the 

9.(cid:218)(cid:217)At 
initiative,  accompanying
measures  to  be  financed  under  paragraph  2(b)  shall  be

the  Commission’s 

the  conditions  referred 

1.(cid:218)(cid:217)LIFE  shall  be  open  to  the  accession  candidate
Central  and  Eastern  European  countries  in  accordance
with 
the  association
agreements  concluded  with  those  countries  and  on  the
basis  of  provisions  of  the  decision  of  the  Association
Council  competent  for  each  country  concerned.

to 

in 

2.(cid:218)(cid:217)Proposals  for  projects  to  be  financed  under  LIFE(cid:220)
Nature  and  LIFE(cid:220)Environment  shall  be  submitted  to  the
Commission  by  the  national  authorities  of  the  countries
concerned  within  the  time  limits  indicated  in  Article  3(4)
involve
and  Article  4(5)  respectively.  Where  projects 
more  than  one  country,  proposals  shall  be  submitted  by
the  country  in  which  the  project  co(cid:220)ordinating  authority
or  body  is  located.

3.(cid:218)(cid:217)Proposals  which  meet  the  general  criteria  set  out  in
Article  2(2)  and  the  specific  criteria  set  out  in  Article
3(5)(b)  and  Article  4(6)  and  (7)  shall  be  taken  into
consideration  for  Community  financial  support.

4.(cid:218)(cid:217)A  summary  of  the  main  points  and  of  the  content
of  the  proposals  received  by  the  national  authorities  of
the
the  countries  concerned  shall  be  submitted 
Member  States  by  the  Commission.  Upon  request,  it
shall  place  the  original  document  at  the  disposal  of  the
Member  States  for  consultation.

to 

5.(cid:218)(cid:217)Projects  considered  for  LIFE  financial  support  shall
be  subject  either  to  the  procedure  set  out  in  Article  21  of
Directive  92/43/EEC  or  to  that  set  out  in  Article  11  of
type  of  project
this  Regulation  according 
proposed.

the 

to 

setting  out 

6.(cid:218)(cid:217)The  projects  approved  shall  give  rise  to  a  contract
or  an  agreement  between  the  Commission  and  the
beneficiaries 
financial
assistance,  the  financial  procedures  and  controls,  as  well
as  all  the  specific  technical  conditions  of  the  approved
action.  The  list  of  proposals  accepted  shall  be  sent  to  the
Member  States.

the  amount  of 

7.(cid:218)(cid:217)Where  conditions  and  provisions  equivalent 
to
those  referred  to  in  paragraph  1  have  been  established
for  the  other  accession  candidate  countries,  LIFE  will  be
open  for  participation  by  those  countries  in  accordance
with  paragraphs  2(cid:220)6.

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Article  7

Consistency  between  financial  instruments

1.(cid:218)(cid:217)Without  prejudice  to  the  conditions  for  accession
candidate  countries 
in  Article  6,  projects
receiving  aid  provided  for  under  the  Structural  Funds  or
other  Community  budget 
shall  not  be
eligible  for  financial  assistance  under  this  Regulation.

instruments 

set  out 

ensure 

2.(cid:218)(cid:217)The  Commission 
actions
shall 
undertaken  in  the  framework  of  this  Regulation  are
consistent  with  those  undertaken  under  the  Structural
Funds,  research,  technological  development  and  demon(cid:220)
stration  programmes  or  other  Community 
financial
instruments.

that 

Article  8

Duration  of  the  third  phase  and  budgetary  resources

1.(cid:218)(cid:217)LIFE  shall  be  implemented  in  phases.  The  third
phase  shall  start  on  1  January  2000  and  shall  end  on  31
December  2004.

2.(cid:218)(cid:217)The  budgetary  resources  allocated  to  the  actions
provided  for  in  this  Regulation  shall  be  entered  in  the
annual  appropriations  of  the  general  budget  of  the
European  Communities.  The  available  annual  appro(cid:220)
priations  shall  be  authorised  by  the  budgetary  autority
within  the  limits  of  the  financial  perspective.

3.(cid:218)(cid:217)The  amount  of  resources  to  be  allocated  to  each  of
the  areas  of  activity  shall  be  as  follows:

(a)(cid:217)47(cid:216)%  for  actions  undertaken  under  Article  3;

2.(cid:218)(cid:217)Without  prejudice  to  the  audits  carried  out  by  the
Court  of  Auditors  in  liaison  with  the  competent  national
audit  bodies  or  departments  pursuant  to  Article  188c  of
the  Treaty,  or  any  inspection  carried  out  pursuant  to
Article  209(c)  of  the  Treaty,  officials  and  other  staff  of
the  Commission  may  carry  out  on(cid:220)the(cid:220)spot  checks,
including  sample  checks,  on  projects  financed  under
LIFE.

carrying  out 

Before 
the
Commission  shall  inform  the  beneficiary  unless  there  are
good  reasons  to  suspect  fraud  and/or  improper  use.

an  on(cid:220)the(cid:220)spot 

check, 

3.(cid:218)(cid:217)For  a  period  of  five  years  following  the 
last
payment  in  respect  of  any  action,  the  beneficiary  of
the
shall  keep 
financial 
Commission  all 
the  supporting  documents  regarding
expenditure  on  the  action.

assistance 

available 

for 

4.(cid:218)(cid:217)On  the  basis  of  the  results  of  the  monitoring
reports  and  sample  checks  referred  to  in  paragraphs  1
and  2,  the  Commission  shall,  if  necessary,  adjust  the
scale  or  the  conditions  of  allocation  of  the  financial
assistance  originally  approved  and  also  the  timetable  for
payments.

step
shall 
5.(cid:218)(cid:217)The  Commission 
necessary  to  verify  that  the  projects  financed  are  carried
out  properly  and  in  compliance  with  the  provisions  of
this  Regulation.

take  every  other 

(b) 47(cid:216)%  for  actions  undertaken  under  Article  4;

Article  10

(c) 6(cid:216)%  for  actions  undertaken  under  Article  5.

Protection  of  Community  financial  interests

The  accompanying  measures  shall  be  limited  to  5(cid:216)%  of
the  available  appropriations.

Article  9

Monitoring  of  projects

1.(cid:218)(cid:217)For  any  project  financed  by  LIFE,  the  beneficiary
shall  send  the  Commission  technical  and  financial  reports
on  the  progress  of  work.  A  final  report  shall  also  be  sent
to  the  Commission  within  three  months  of  completion  of
the  project.  The  Commission  shall  determine  the  form
and  content  of  the  reports.  The  report  shall  be  based  on
the  physical  and  financial 
in  the
Commission  Decision  approving  the  projects  or  in  the
contract  or  agreement  concluded  with  the  beneficiaries.
These  indicators  shall  be  such  as  to  indicate  the  progress
of  the  work  and  the  objectives  to  be  attained  within  a
specified  time  limit.

indicators  set  out 

1.(cid:218)(cid:217)The  Commission  may  reduce,  suspend  or  recover
the  amount  of  financial  assistance  granted  for  a  project  if
it  finds  irregularities,  including  non(cid:220)compliance  with  the
provisions  of  this  Regulation  or  the  individual  decision
or 
in
question,  or  if  it  transpires  that,  without  Commission
approval  having  being  sought,  the  project  has  been
subjected  to  a  major  change  which  conflicts  with  the
nature  or  implementing  conditions  of  the  project.

the  contract  granting 

financial 

support 

the 

2.(cid:218)(cid:217)If  the  time  limits  have  not  been  observed  or  if  only
part  of  the  allocated  financial  assistance  is  justified  by
the  progress  made  with 
implementing  a  project,  the
Commission  shall  request  the  beneficiary  to  submit  its
observations  within  a  specified  period.  If  the  beneficiary
does  not  give  a  satisfactory  answer,  the  Commission  may
cancel  the  remaining  financial  assistance  and  demand
repayment  of  sums  already  paid.

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20.1.1999

3.(cid:218)(cid:217)Any  undue  payment  must  be  repaid 
the
Commission.  Interest  may  be  added  to  any  sums  not
repaid  in  good  time.  The  Commission  shall  lay  down
detailed  rules  for  the  implementation  of  this  paragraph.

to 

Article  11

Committee

1.(cid:218)(cid:217)For  LIFE(cid:220)Environment  and  LIFE(cid:220)Third  Countries,
the  Commission  shall  be  assisted  by  a  Committee
consisting  of  the  representatives  of  the  Member  States
and  chaired  by  the  representative  of  the  Commission.

2.(cid:218)(cid:217)The  representative  of  the  Commission  shall  submit
to  the  Committee  a  draft  of  the  measure  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  the  abovementioned  Article.  The
Chairman  shall  not  vote.

The  Commission  shall  adopt  the  measures  envisaged  if
they  are 
the
Committee.

in  accordance  with 

the  opinion  of 

If  the  measures  envisaged  are  not  in  accordance  with  the
opinion  of  the  Committee,  or  if  no  opinion  is  delivered,
the  Commission  shall,  without  delay,  submit  to  the
Council  a  proposal  relating  to  the  measures  to  be  taken.
The  Council  shall  act  by  a  qualified  majority.

If,  on  the  expiry  of  a  period  of  one  month  from  the  date
of  referral  to  the  Council,  the  Council  has  not  acted,  the
proposed  measures  shall  be  adopted  by  the  Commission.

Article  12

Evaluation  of  the  third  phase  and  continuation  of  LIFE

1.(cid:218)(cid:217)Not  later  than  31  December  2003,  the  Commission
shall  submit  a  report  to  the  European  Parliament  and  the
Council  on  the  implementation  of  this  Regulation  and
the  use  made  of  the  appropriations,  and  shall,  where
appropriate,  make  proposals  for  any  adjustments  to  be
made  with  a  view  to  continuing  the  action  beyond  the
third  phase.

2.(cid:218)(cid:217)The  Council,  acting  in  accordance  with  the  Treaty,
shall  decide  on  the  implementation  of  the  fourth  phase  as
from  1  January  2005.

Article  13

Repeal  of  Regulation  (EEC)  No  1973/92

1.(cid:218)(cid:217)Regulation  (EEC)  No  1973/92  is  hereby  repealed
taken  and  contracts
without  prejudice 
concluded  concerning  the  granting  of  financial  assistance
pursuant  to  that  Regulation.

to  decisions 

2.(cid:218)(cid:217)References  to  the  repealed  Regulation  shall  be
understood  as  referring  to  this  Regulation  and  are  to  be
read  in  accordance  with  the  table  of  equivalence  in  the
Annex.

Article  14

Entry  into  force

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

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ANNEX

TABLE  OF  EQUIVALENCE

Regulation  (EEC)  No  1973/92

This  Regulation

Article  1

Article  2(1)(a)

Article  2(1)(b)(i),(ii)

Article  1

Article  3(1),  2(a)

Article  4(1)(a)

Article  2(1)(b)(iii),  first  subparagraph

Article  4(1)(b)  and  2(b)

Article  2(1)(b)(iii),  indents  1,  2,  3  and  4

-

Article  2(2)(a)

Article  2(2)(b),  (c)

Article  2(3)

Article  4(a)

Article  4(b)

Article  5

Article  6

Article  7(1),  first  subparagraph

Article  5(1),  2(a)

-

Articles  3(2)(b),  3(9),  4(2)(c),  4(8),  5(2)(b),  and
5(9)

Articles  3(3),  4(3),  5(3)

-

Article  7(1)

Article  7(2)

Article  8(1)

Article  7(1),  second  subparagraph

-

Article  7(1),  third  subparagraph

Article  8(2)

Article  7(2)

Article  7(3)

Article  8(1)

Article  8(2)

Article  8(3)

Article  9(1)

Article  9(2)

Article  9(3)

Article  9(4)

-

Article  12(1)

Article  8(3)

Articles  3(3),  4(3),  and  5(3)

-

Articles  3(4),  4(5),  and  5(4)

-

Article  5(4)

Articles  3(7),  4(9),  and  5(7)

Article  9(5),  first  subparagraph

Article  3(5)(a)  first  indent  and  3(5)(b)  first  indent

Article  9(5),  second  subparagraph,  first  indent

Articles  3(9)  and  4(11)

Article  9(5),  second  subparagraph,  second  indent

Article  5(9)

C  15/12

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20.1.1999

Regulation  (EEC)  No  1973/92

This  Regulation

Article  9(6)

Article  9(a)(1)(a)

Article  9(a)(1)(b)(i)

Articles  3(7),  4(10),  5(8)

Article  2

Article  3(5)(a)  and  (b)

Article  9(a)(1)(b)(ii),  indents  1,  2,  3,  4  and  5

Article  4(6)  first  and  second  paragraphs

Article  9(a)(1)(b)(ii),  indent  6

-

Article  9(a)(1)(b)(iii),  indents  1,  2  and  3

Article  4(6),  indents  1,  2  and  3

Article  9(a)(1)(b)(iii),  indent  4

Article  9(a)(1)(b)(iv)

-

-

Article  9(a)(1)(c),  indents  1,  2,  3,  and  4

Article  5(5)

Article  9(a)(1)(c),  indents  5,  6

Article  9(a)(2)

-

-

Article  9(b)

Article  10(1)

Article  10(2)

Article  10(3)

Article  11(1)

Article  11(2)

Article  11(3)

Article  12(1)

Article  12(2)

Article  12(3)

Article  12(4)

Article  13

Article  13(a)

Article  14

Article  15

Article  16

Article  17

Article  4(7),  indents  2,  3,  4

-

Article  9(2)

Article  9(3)

Article  10(1)

Article  10(2)

Article  10(3)

-

Article  9(1)

Article  9(4)

-

Article  11

Article  6

-

-

-

-