Council Regulation (EC) No 2840/98 of 21 December 1998 amending Regulation (EC) No 1734/94 on financial and technical cooperation with the Occupied Territories
Date: 1998-12-21
Institutions: Council of the European Union
Subjects: EU financing, Palestine question, economic development, occupied territory, social development, technical cooperation

L 354/14

EN

Official Journal of the European Communities

30. 12. 98

COUNCIL REGULATION (EC) No 2840/98

of 21 December 1998

amending Regulation (EC) No 1734/94 on financial and technical cooperation
with the Occupied Territories

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 (1),

Acting in accordance with the procedure referred to in
Article 189c of the Treaty (2),

Whereas Council Regulation (EC) No 1734/94 of 11 July
1994 on financial and technical cooperation with the
Occupied Territories (3) 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 is
to implement financial and technical cooperation with
the West Bank and Gaza Strip under a five-year
programme; whereas this programme expires at 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 launched in 1991; whereas international
economic assistance has nevertheless succeeded in main-
taining the peace process alive and providing support for
the Palestinian Authority;

Whereas the objective is to prevent any further deteriora-
tion 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
the Palestinian
Authority and to consolidate it by means of institutional
reinforcement;

and fiscal balance of

Whereas the ultimate aim is the achievement of sustain-
able economic and social development and to foster
democracy, human rights and the development of civil
society;

Whereas, given the present situation,
the Community
should pursue its aid effort; whereas to this end a five-year
period of assistance (1999 to 2003) should be launched
and Regulation (EC) No 1734/94 amended accordingly;
this Regulation should be reviewed by the
whereas
Council within two years and not later than 31 December

(1) OJ C 253, 12. 8. 1998, p. 15.
(2) Opinion of the European Parliament of 16 September 1998
(OJ C 313, 12. 10. 1998), Council Common Position of 13
October 1998 (OJ C 388, 14. 12. 1998) and Decision of the
European Parliament of 3 December 1998 (OJ C 398, 21. 12.
1998).

(3) OJ L 182, 16. 7. 1994, p. 4.

2000 in order to take into account recent development
and bring it into line with the reviewed Council Regula-
tion (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-Mediterranean partnership (4);

Whereas ‘the Occupied Territories' should be replaced by
‘the West Bank and the 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 are to be adopted in accordance with the
procedure laid down in Article 5 thereof; whereas,
in
order to allow for rapid and flexible reactions and to
increase expediency, only financing decisions exceeding
ECU 2 000 000 other than those relating to interest-rate
subsidies on Bank loans should be adopted in accordance
with that procedure;

Whereas Council Decision 97/256/EC of 14 April 1997
granting a Community guarantee to the European Invest-
ment Bank against losses under loans for projects outside
the Community (Central and Eastern Europe countries,
Mediterranean countries, Latin America and Asian coun-
tries and South Africa) (5) covers guarantees also in this
region for the period to the year 2000,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1734/94 is hereby amended as
follows:

1. the title shall be replaced by the following:

‘Council
Regulation (EC) No 1734/94 of 11 July 1994 on finan-
cial and technical cooperation with the West Bank and
the Gaza Strip';

2. Article 1 shall be replaced by the following:

‘Article 1

The Community shall implement financial and
1.
technical cooperation with the West Bank and the
Gaza Strip under a five-year period (1999 to 2003) with

(4) OJ L 189, 30. 7. 1996, p. 1. Regulation as amended by Regu-

lation (EC) No 780/98 (OJ L 113, 15. 4. 1998, p. 3).

(5) OJ L 102, 19. 4. 1997, p. 33. Decision as amended by De-

cision No 98/348/EC (OJ L 155, 29. 5. 1998, p. 53).

30. 12. 98

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Official Journal of the European Communities

L 354/15

the aim of aiding their achievement of sustainable
economic, political and social development. Should
new financial perspectives be adopted for the period
after 2000, the amount of this cooperation shall be
determined in accordance with the financial perspec-
tives and conditional upon the budgetary authority
deciding the amount in the annual budgetary pro-
cedure.

2. Within two years and not later than 31 December
2000, the Council shall review this Regulation on the
basis of an independent evaluation of the programmes
as envisaged in Article 6. This review shall also take
into account recent developments in the area and
might also consider bringing the Regulation into line
with Council Regulation (EC) No 1488/96 of 23 July
1996 on financial and technical measures to accom-
pany (MEDA) the reform of economic and social struc-
tures in the framework of
the Euro-Mediterranean
partnership (*).

(*) OJ L 189, 30.7.1996, p. 1. Regulation as amended
by Regulation (EC) No 780/98 (OJ L 113,
15.4.1998, p. 3).'

3. Article 2 shall be amended as follows:

(a)

the words ‘and the development of civil society'
shall be added after ‘human rights' at the end of
paragraph 1;

(b) the following subparagraph shall be added to para-

graph 3:

‘The said projects and operations shall aim inter
alia at the promotion of employment and the
creation of employment by improving the social
services and combating poverty'.

(c)

in paragraphs 5 and 6 ‘the Occupied Territories'
shall be replaced by ‘the West Bank and the Gaza
Strip'.

5. Article 4(1) to (3) shall be replaced by the following:

‘Article 4

1.
Financing decisions on projects and operations
under this Regulation exceeding ECU 2 000 000 other
than those relating to interest-rate subsidies on bank
loans shall be adopted in accordance with the pro-
cedure laid down in Article 5.

2.
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
financing decisions not
adopt
exceeding ECU 2 000 000.

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

any substantial

3. Decisions amending financing decisions adopted
in accordance with the procedure laid down in Article
5 shall be taken by the Commission where they do not
entail
additional
the original
in excess of 20 % of
commitments
commitment. The Commission shall
inform the
Committee referred to in Article 5 immediately of any
such decisions.'

amendments or

6. Article 5(1) shall be replaced by the following:

‘1. The Commission shall be assisted by the MED
Committee set up pursuant to Article 11 of Regulation
(EC) No 1488/96.';

7. Article 6(1) shall be replaced by the following:

‘1. The Commission shall examine the state of
implementation of cooperation under this Regulation
and shall report annually in writing to the European
Parliament and the Council.'

Article 2

4. in Article 3 ‘the Occupied Territories' shall be replaced

by ‘the West Bank and the Gaza Strip'.

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, 21 December 1998.

For the Council

The President

M. BARTENSTEIN