Commission Regulation (EC) No 2760/98 of 18 December 1998 concerning the implementation of a programme for cross-border cooperation in the framework of the PHARE programme
Date: 1998-12-18
Institutions: European Commission
Subjects: Central and Eastern European countries, EU aid, EU programme, accession to the European Union, cross-border cooperation, economic development

19. 12. 98

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Official Journal of the European Communities

L 345/49

COMMISSION REGULATION (EC) No 2760/98

of 18 December 1998

concerning the implementation of a programme for cross-border cooperation in
the framework of the PHARE programme

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European
Community,

Having regard to Council Regulation (EEC) No 3906/89
of 18 December 1989 on economic aid to certain coun-
tries of central and eastern Europe (1), as last amended by
Regulation (EC) No 753/96 (2), and in particular Article 8
thereof,

Whereas Romania, as only applicant country without a
common border with the Union, should also become
eligible
cooperation
the PHARE cross-border
for
programme;

the

PHARE

cross-border

Whereas
cooperation
programme will gradually become part of a wider regional
development policy in the context of the pre-accession
strategy which would correct present imbalances between
budgetary resources allocated for cross-border cooperation
and the other pre-accession priorities and between
different regions inside the applicant States;

Whereas the European Council, meeting in Luxembourg
in December 1997, set out the enhanced pre-accession
strategy which is intended to enable all applicant coun-
tries of central and eastern Europe eventually to become
members of the European Union and, to that end, to
align themselves as far as possible on the Union acquis
prior to accession;

Whereas the Council has repeatedly stressed the need to
reinforce cooperation and stimulate integration of the
countries of central and eastern Europe and the European
Community, as well as the need to support stability and
security in the region;

Whereas the accession partnerships, the key feature of
enhanced pre-accession strategy, have defined priorities
for further work towards accession and must be taken into
account in the context of cross-border cooperation;

Whereas, in view of the future participation of accession
states in the structural policy of the Union, further align-
ment of the PHARE cross-border cooperation programme
with Interreg is required, notably through setting up
common
common
cross-border
programming structures;

programmes

and

Whereas the first years of implementation of Commission
Regulation (EC) No 1628/94 (3), establishing the PHARE
cross-border programme in conjunction with Interreg,
have already produced a number of positive results,
notably through establishing a dialogue and cooperation
between European Union border regions and adjacent
in central and eastern Europe,
regions
contributing to economic development
in the border
regions of these countries and to greater convergence with
the level of development on the European Union side,
and offering the opportunity to these regions to fa-
miliarise themselves with Interreg practices and proced-
ures, including the design of regional development strat-
egies for border regions;

in countries

Whereas, for applicant countries of central and eastern
Europe, the present geographic definition of the PHARE
cross-border cooperation programme needs to be gradu-
ally extended in order to comprise, in addition to regions
adjacent
to the European Union, borders with other
applicant countries which are PHARE beneficiaries;
whereas, in a later stage, borders with other neighbouring
countries benefiting from PHARE or other Community
assistance programmes may also become eligible;

Whereas eligible actions should be similar to Interreg
within the overall framework of the accession partner-
ships;

Whereas further improvements should be aimed at, in
particular through increasing the number of projects of a
real cross-border nature, and through improving their
pace of implementation;

(1) OJ L 375, 23. 12. 1989, p. 11.
(2) OJ L 103, 26. 4. 1996, p. 5.
(3) OJ L 171, 6. 7. 1994, p. 14.

Whereas it is necessary to strengthen the involvement of
local and regional actors in cross-border cooperation, to
enhance the botton-up approach, to bolster their capacit-
implementation and monitoring,
ies for programming,
and to allow local authorities in border regions to take
decisions on small projects of a real cross-border nature
through setting up small project funds;

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Official Journal of the European Communities

19. 12. 98

Whereas it is necessary to replace Regulation (EC) No
1628/94;

Whereas the present Regulation is in accordance with the
opinion of the Committee for Economic Restructuring in
certain countries of central and eastern Europe,

(ii) to promote the creation and the development of
cooperation networks on either side of the border, and
the establishment of links between these networks
and wider Community networks.

HAS ADOPTED THIS REGULATION:

Article 1

Within the overall framework of the PHARE programme
as defined by Regulation (EEC) No 3906/89,
the
following rules shall apply for financing actions of a
structural nature in border regions of countries of central
and eastern Europe, which are PHARE beneficiaries.

These actions will be implemented taking into account
the Community structural policies, and Interreg in par-
ticular.

Article 2

1.
The eligible borders are those between the countries
of central and eastern Europe and the Community, and
those between the following applicant countries: Bulgaria,
Czech Republic, Estonia, Hungary, Latvia, Lithuania,
Poland, Romania, Slovakia and Slovenia.

2.
The border regions concerned will be fixed by each
country concerned in agreement with the Commission,
taking into account
the methodology adopted for
Interreg.

3. Allocations between beneficiary countries shall be
made taking into account criteria of population, GDP per
capita and surface of the border regions concerned.

Article 3

Community grants under this programme will primarily
finance the participation of the country of central and
eastern Europe concerned in joint projects with each State
with which it shares a border as defined in Article 2.

The aims of these projects are:

(i) to promote cooperation of border regions in countries
in central and eastern Europe with adjacent regions in
a neighbouring country as defined in Article 1 and
thus to help the border regions in central and eastern
Europe to overcome the specific development prob-
lems which may arise, inter alia, from their position
within the national economies, in the interest of the
local population and in a manner compatible with the
protection of the environment;

Article 4

1.
In the border regions selected according to Article 2,
the projects to be included in the cross-border coopera-
tion programme can take the form of:

(i) projects linked with measures that are supported by
Interreg or by other Community external assistance
programmes;

(ii) projects agreed by the countries concerned, that have
a cross-border impact, contribute to the development
of structures in border regions and facilitate coopera-
tion between the countries as a whole.

Special attention will be given to projects in relation
2.
to which co-financing by, or on behalf of,
the local
authorities or economic operators in the countries of
central and eastern Europe is provided.

include

Financing may

3.
from other
Member States of the European Union and countries of
central and eastern Europe, from international financial
institutions, and from other private and public sources.

resources

Article 5

The actions

1.
programme could include:

that can be financed under

this

(a)

(b)

(c)

the administrative and institutional
alleviation of
obstacles to the free flow of persons, products or
services across the border while taking into account
the security aspects of such flows;

in particular commun-
improving infrastructures,
ication facilities and the provision of local water, gas
and electricity supplies, providing benefits across
border areas;

environmental protection, for instance waste manage-
ment, environmental management and pollution
prevention dealing with problems exacerbated by the
proximity to external borders;

(d) agricultural and rural development measures with
cross-border

attention for

facilitating

particular
cooperation projects;

(e) measures in the fields of energy and transport, aimed
at complementing the development of trans-Euro-
pean networks in accordance with the orientations
adopted by the Commission;

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Official Journal of the European Communities

L 345/51

(f)

to
actions
Community policy;

related

justice

and

home

affairs

Article 6

(g) promotion of business cooperation, enterprise devel-
cooperation and cooperation
opment,
between institutions representing the business sector
(e.g. chambers of commerce);

financial

(h) aid to investment and provision of

supporting
services and facilities,
in particular for technology
transfer and for marketing for small and medium-
sized enterprises;

(i)

training and employment measures;

(j)

local economic development, including tourism;

(k) measures to promote cooperation in health, particu-
larly the sharing of resources and facilities on a cross-
border basis;

(l)

the development or establishment of facilities and
resources to improve the flow of information and
communications between border regions, including
support for cross-border radio, television, newspapers
and other media;

(m) cultural exchanges;

(n)

local employment, education and training initiatives.

1.
The Community contribution is provided in prin-
ciple as a grant. However, whenever the Community grant
contributes to the financing of revenue-generating activ-
ities, the Commission shall determine, in consultation
with the authorities involved,
the rules for financing
which may include co-financing by the project’s revenues
or reimbursement of the initial grants.

The aid may cover expenditures on imports and local
and

2.
expenditure needed to carry out
programmes.

the projects

Tax duties and charges and the purchase of property shall
be excluded from the Community financing.

3. Costs covered may include technical assistance,
studies, training and other institution-building measures;
supply programmes for essential equipment or inputs;
investment operations, including work programmes.

4. Maintenance and operating costs in central and
eastern European countries may be covered in the start-up
phase and in a digressive manner.

However, actions mentioned under (j) to (n) may only be
financed under the terms of Article 5(2) below.

Article 7

2. With a view to encouraging joint small scale actions
involving local actors from the border regions and to
enhancing their capabilities to identify, develop and
implement such actions, a joint small project fund may
be established in each border region, for which a limited
percentage of
relevant
appropriations
programmes and initiatives for cross-border cooperation
may be used.

the

the

for

3.
Special attention will be given to measures with a
strong cross-border cooperation character which are
planned in close cooperation with the regional and local
authorities in border areas and which include the estab-
lishment or development of shared management struc-
tures intended to widen and deepen cross-border coopera-
tion between public and para-public agencies as well as
non-profit organisations.

regions, project

The establishment of plans for the development of
4.
identification and programme
border
formulation, feasibility studies, assistance for the imple-
mentation of the programmes and monitoring and/or
evaluation studies, may also be financed.

1.
For each of the border regions, a Joint Cooperation
Committee will be set up consisting of representatives of
the countries concerned including regional or local repre-
sentatives, and of representatives of the Commission.

2.
The Joint Cooperation Committee will prepare a
joint cross-border programming document in a multi-
annual perspective; this document will include common
development strategies and priorities for the region, seen
as one single socio-economic and geographical entity, and
provisions concerning joint implementation. This docu-
ment will guide the programming and implementation of
the actions to be undertaken in the framework of the
relevant programmes and initiatives
for cross-border
cooperation, assisted by the European Community.

3.
The Joint Cooperation Committee will define a
common set of projects once per year, taking into account
the joint cross-border programming document provided
under paragraph 2. Recommendations for projects will be
transmitted to the Commission by the Government of the
country of central and eastern Europe concerned on the
basis of the proposals submitted by the relevant author-
ities.

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Official Journal of the European Communities

19. 12. 98

Article 8

formulate

The Commission will

1.
a programme
proposal per border taking into account the joint cross-
border programming document referred to under Article
7(1) and further recommendations of the Joint Coopera-
tion Committees for projects to be financed under this
programme, as transmitted by the government of the
central and eastern European country concerned.

The grant constituting the full or partial contribution
2.
of the country of central and eastern Europe to the joint
project will be approved following the procedure defined
in Article 9 of Regulation (EEC) No 3906/89 and agreed
with the recipient country concerned by means of a
financing memorandum.

structures
2. Wherever possible,
should be set up to facilitate the implementation of the
programmes.

joint monitoring

Article 10

In implementing the objectives referred to pursuant to
Article 3, the Commission shall ensure coordination and
consistency between assistance from PHARE, other
external assistance programmes, and assistance provided
by the Structural Funds.

Article 9

Article 11

The Commission shall administer this assistance in
1.
accordance with the normal practice applied to the assist-
ance to central and eastern Europe, as defined in Regula-
tion (EEC) No 3906/89.

This Regulation shall enter into force on the third day
following its publication in the Official Journal of the
European Communities, and shall replace Regulation
(EC) No 1628/94 on that day.

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

Done at Brussels, 18 December 1998.

For the Commission

Hans VAN DEN BROEK

Member of the Commission