Proposal for a Council Regulation (Euratom, EC) concerning the provision of assistance to economic reform and recovery in the New Independent States and Mongolia
Date: 1999-01-08
Institutions: European Commission
Subjects: Commonwealth of Independent States, Mongolia, cooperation policy, economic reconstruction, economic reform

C  37/8

EN

Official  Journal  of  the  European  Communities

11.2.1999

Proposal  for  a  Council  Regulation  (Euratom,  EC)  concerning  the  provision  of  assistance  to
economic  reform  and  recovery  in  the  New  Independ  States  and  Mongolia

(1999/C  37/05)

COM(1998)  753  final  -  98/0368(CNS)

(Submitted  by  the  Commission  on  8  January  1999)

THE  COUNCIL  OF  THE  EUROPEAN  UNION,

Having  regard  to  the  Treaty  establishing  the  European
Community,  and  in  particular  Article  235  thereof,

Having  regard  to  the  Treaty  establishing  the  European
Atomic  Energy  Community,  and  in  particular  Article  203
thereof,

Having  regard  to  the  proposal  from  the  Commission,

Having 
Parliament,

regard 

to 

the  opinion  of 

the  European

Whereas,  pursuant  to  the  European  Council  in  Dublin
and  in  Rome  in  1990,  the  Community  introduced  a
technical  assistance  programme  in  favour  of  economic
reform  and  recovery  in  the  former  Union  of  Soviet
Socialist  Republics;

(Euratom,  EEC)  No
Whereas  Council  Regulation 
1279/96  of  25  June  1996(cid:216)(˛)  concerning  the  provision  of
technical  assistance  to  economic  reform  and  recovery  in
the  New  Independent  States  and  Mongolia  laid  down
the  conditions 
technical
assistance  and  envisaged  such  an  operation  from  1
January  1996  to  31  December  1999;

the  provision  of 

this 

for 

such 

assistance 

Whereas 
generated
significant  impact  on  reform  in  the  New  Independent
States  and  Mongolia  and  further  assistance  is  required  to
ensure  this  reform  becomes  sustainable;

already 

has 

Whereas  such  assistance  will  be  fully  effective  only  in  the
context  of  progress  towards  free  and  open  democratic
societies  that  respect  human  rights,  and  towards  market(cid:220)
oriented  economic  systems;

Whereas 
nuclear  safety  in  the  New  Independent  States;

further  assistance 

is  required 

to  promote

(˛)(cid:217)OJ  L  154,  4.7.1996,  p.  1.

Whereas 
the  continued  provision  of  assistance  will
contribute  to  the  attainment  of  shared  objectives,  notably
in  the  context  of  the  Partnership  and  Cooperation
cooperation  agreements
Agreements  and 
concluded  with 
Independent  States  and
Mongolia;

economic 
the  New 

Whereas  it  is  appropriate  to  establish  priorities  for  this
assistance  which  are  determined, 
inter  alia,  by  the
common  interests  of  the  Community  and  the  partner
countries;

Whereas  the  assistance  shall  take 
into  account  the
differing  needs  and  priorities  of  the  principal  regions
covered  by  this  regulation;

experience  has 

that  Community
Whereas 
assistance  will  be  all  the  more  effective  when 
is
concentrated  on  a  restricted  number  of  areas  within  each
partner  country;

shown 

it 

Whereas  the  development  of  inter(cid:220)state  economic  links
and  trade  flows  conducive  to  economic  reform  and
restructuring  should  be  encouraged;

Whereas  regional  cooperation,  particulary  in  relation  to
the  Northern  Dimension  and  in  the  Black  Sea  region,
should  be  encouraged;

Whereas  cross(cid:220)border  cooperation,  particulary 
in  the
context  of  borders  between  the  New  Independent  States
and  the  Union,  between  the  New  Independent  States
and  Central  and  Eastern  Europe,  and  between  the  New
Independent  States 
including  Mongolia
themselves, 
should  be  encouraged;

Whereas  the  requirements  of  economic  reform  and
restructuring  now 
the  effective
management  of  this  programme,  require  a  multi(cid:220)annual
approach;

in  progress,  and 

Whereas  the 
long(cid:220)term  sustainability  of  reform  will
require  due  emphasis  on  the  social  aspects  of  reform  and
the  development  of  the  civil  society;

Whereas  the  integration  of  environmental  aspects  into
the  assistance  would  guarantee  the  long(cid:220)term  sustaina(cid:220)
bility  of  economic  reforms;

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Whereas,  in  the  event  of  severe  political  or  economic
crisis,  special  assistance  covering 
local
expenditure  may  be  required;

imports  and 

Whereas  the  quality  of  the  assistance  shall  be  improved
by  selecting  a  proportion  of  projects  on  a  competitive
basis;

Whereas,  in  order  to  properly  meet  the  most  acute  needs
of  the  New  Independent  States  and  Mongolia  at  the
present  stage  of  their  economic  transformation, 
is
necessary  to  permit  a  certain  amount  of  the  financial
allocation  to  be  used  for  economically  sound  investment
financing,  notably  in  the  areas  of  cross(cid:220)border  coope(cid:220)
ration,  promotion  of  SMEs,  environmental  infrastructure
and  networks  of  strategic  importance  to  the  Community;

it 

Whereas  Community  assistance  could,  where  appro(cid:220)
priate,  be  more  effective  and  efficient  when  it  is  imple(cid:220)
mented  on  a  decentralised  basis;

Whereas  effective  competition  amongst  firms,  organi(cid:220)
sations  and  institutions  interested  in  participating  in  the
initiatives  financed  by  the  programme  shall  be  ensured;

Whereas  Community  assistance  will  be  all  the  more
effective  when  the  involvement  of  the  partner  states  is
ensured;

it 

is  appropriate 

Whereas 
the  Commission  be
assisted  in  the  implementation  of  Community  aid  by  a
committee  made  up  of  Member  States’  representatives;

that 

Whereas  the  European  Council  at  its  meeting  in  Rome
also  stressed  the  importance  of  effective  coordination  by
the  Commission  of  the  efforts  made  in  the  former  Union
of  Soviet  Socialist  Republics  by  the  Community  and  its
Member  States  acting  individually;

Whereas  the  Treaties  have  not  provided  for  the  adoption
of  this  Regulation,  powers  other  than  those  of  Article
235  of  the  EC  Treaty  and  Article  203  of  the  EAEC
Treaty,

HAS  ADOPTED  THIS  REGULATION:

Article  1

A  programme  to  promote  economic  reform  and  recovery
in  the  partner  states  listed  in  Annex  I  (hereinafter  called
the
shall  be 
"the  partner 
Community  from  1  January  2000  to  31  December  2006
in  accordance  with  the  criteria  laid  down  in  this  Regu(cid:220)
lation.

implemented  by 

states’) 

Article  2

1.(cid:218)(cid:217)The  programme  shall  provide  assistance  to  support
reforms  in  progress  in  the  partner  states  for  measures
aimed  at  bringing  about  the  transition  to  a  market
economy  and  reinforcing  democracy  and  the  rule  of  law.

2.(cid:218)(cid:217)The  programme  shall  be  based  on  the  principles
and  objectives  set  out 
in  the  Partnership  and  Co(cid:220)
operation  Agreements  and  trade  and  economic  coop(cid:220)
eration  agreements, 
the
Community,  its  Member  States  and  the  partner  states
work  together  to  support  initiatives  of  common  interest.

the  context  of  which 

in 

the 

this  end, 

3.(cid:218)(cid:217)The  programme  shall  aim  to  maximise 
impact
through  concentration  on  a  limited  number  of  large(cid:220)scale
initiatives.  To 
indicative  and  action
programmes  referred  to  below  shall  cover  at  most  three
of  the  eligible  areas  of  cooperation  listed  in  Annex  II.
Where  applicable,  support  for  nuclear  safety  shall  be
provided  in  addition  to  the  three  areas.  Concentration
shall  reflect  the  differing  needs  and  priorities  of  the
partner  country  as  outlined  in  the  following  paragraph.

take 

into  account 

4.(cid:218)(cid:217)The  programme 
the
shall 
differing  needs  and  priorities  of  the  principal  regions
covered  by  the  regulation  and  in  particular  the  need  to
promote  democracy  and  the  rule  of  law.  In  the  Western
NIS  and  the  Caucasus  particular  attention  shall  be  given
to  creating  a  favourable  investment  climate,  promoting
regional  cooperation  and  building  a  wider  area  of  co(cid:220)
operation  across  Europe.  In  Russia  particular  attention
shall  be  given 
law,
reinforcing 
strengthening  the  economic  and  financial  framework,
and  promoting  industrial  cooperation  and  partnership.  In
Central  Asia  and  Mongolia  particular  attention  shall  be
given  to  strengthening  democracy  and  good  governance,
supporting  the  development  of  networks,  and  promoting
fundamental,  sustainable,  economic  reform.

rule  of 

the 

to 

5.(cid:218)(cid:217)The  programme  shall  aim  to  promote  inter(cid:220)state,
inter(cid:220)regional  and  cross(cid:220)border  cooperation  between  the
partner  states  themselves,  between  the  partner  states  and
the  Union  and  between  the  partner  states  and  Central
and  Eastern  Europe.

Inter(cid:220)state  and  inter(cid:220)regional  cooperation  shall  primarily
serve  to  assist  the  partner  states  to  identify  and  pursue
actions  which  are  best  undertaken  on  a  multi(cid:220)country,
rather  than  a  national  level  such  as  the  promotion  of
networks,  environmental  cooperation  and  actions  in  the
area  of  justice  and  home  affairs.

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Cross(cid:220)border  cooperation  shall  primarily  serve  to:  (i)
assist  border  regions  in  overcoming  their  specific  deve(cid:220)
lopmental  problems 
relative
stemming 
isolation,  (ii)  encourage  the  linking  of  networks  on  both
sides  of  the  border,  eg.  border(cid:220)crossing  facilities,  and  (iii)
accelerate  the  transformation  process 
in  the  partner
states  through  their  cooperation  with  border  regions  in
the  Union  or  Central  and  Eastern  Europe  (iv)  reduce
transboundary  environmental  risks  and  pollution.

from 

their 

6.(cid:218)(cid:217)In  the  area  of  nuclear  safety,  the  programme  shall
focus  on  three  priorities:  (i)  supporting  the  reinforcement
of  the  nuclear  safety  culture  and  the  application  of
efficient  safeguards,  in  particular  through  support  for  the
regulatory  authorities;  (ii)  contributing  to  international
initiatives,  such  as  those  outlined  in  the  context  of  the
G7;  and  (iii)  supporting  spent  fuel  and  nuclear  waste
management,  notably  in  Northwest  Russia.  As  necessary,
on(cid:220)site  assistance  at  nuclear  power  plants  which  aims  to
contribute  to  an  efficient  transfer  of  safety  culture  and
know  how  at  the  plant  level  shall  be  implemented  in  the
short  term.

7.(cid:218)(cid:217)Measures  shall  be  implemented  taking  into  account
the  objective  of  promoting  stability,  through  support  for
sustainable  economic,  environmental  and  social  devel(cid:220)
opment,  and  taking  account  of  the  evolving  needs,
absorption  capacity  and  progress  towards  democratic
and  market(cid:220)orientated  reform  in  the  partner  states.

TITLE  I

INDICATIVE  AND  ACTION  PROGRAMMES

Article  3

1.(cid:218)(cid:217)The  assistance  shall  be  applied  in  the  framework  of
national,  multi(cid:220)country  and  other  programmes.

projects  to  be  financed  within  the  areas  of  cooperation
set  out  in  Annex  II.  The  content  of  the  programmes  shall
be  determined  in  sufficient  detail,  so  as  to  enable  the
Committee  referred  to 
its
opinion.

in  Article  10  to  deliver 

in 

5.(cid:218)(cid:217)The  measures  outlined 
the  national  action
programmes  shall  be  reflected  in  financing  memoranda
agreed  between  the  Commission  and  each  partner  states.
These  shall  be  based  on  a  dialogue  addressing  the  joint
interests  of  the  Community  and  the  partner  states,
particularly  in  the  context  of  the  Partnership  and  Co(cid:220)
operation  Agreements.

6.(cid:218)(cid:217)If  circumstances  require,  the  indicative  and  action
programmes  may  be  amended  in  accordance  with  the
procedure  outlined  in  Article  10  during  the  period  of
their  application.

7.(cid:218)(cid:217)In  the  event  of  severe  political  or  economic  crisis  in
one  of  the  partner  states  or  the  threat  thereof,  a  special
programme  of  support  may  be  adopted  in  accordance
with  the  procedure  outlined  in  Article  10.

Article  4

shall  be  established  which 

In  addition  to  the  national  action  programmes,  an
Incentive  Scheme 
shall
introduce  an  element  of  competition  into  the  allocation
this  Scheme,  projects  shall  be
of  resources.  Under 
selected  on  the  basis  of  proposals  received  from  the
partner  states  and  according  to  criteria  to  be  agreed  in
accordance  with  the  procedure  outlined  in  Article  10.  In
order  to  ensure  concentration,  projects  financed  under
the  scheme  should  be  linked  to  the  areas  of  cooperation
established 
indicative  programmes
in 
referred  to  in  Article  3(3).

the  national 

2.(cid:218)(cid:217)The  national  and  multi(cid:220)country  programmes  shall
comprise  indicative  and  action  programmes.

TITLE  II

MEASURES  TO  BE  SUPPORTED

3.(cid:218)(cid:217)Indicative  programmes  covering  three  to  four  year
periods  shall  be  established 
in  accordance  with  the
procedure  provided  for  in  Article  10.  These  programmes
shall  define  the  principal  objectives  of,  and  guidelines
for,  Community  assistance  in  the  areas  of  cooperation
set  out  in  Annex  II  and  could  include  financial  estimates.
Before  the  establishment  of  indicative  programmes,  the
Commission  shall  discuss  with  the  Committee  referred  to
in  Article  10  the  priorities  identified  with  the  partner
states.

4.(cid:218)(cid:217)Action  programmes  based  on 
indicative
programmes  referred  to  in  the  preceding  paragraph  shall
be  adopted  on  an  annual  or  bi(cid:220)annual  basis 
in
accordance  with  the  procedure  provided  for  in  Article
10.  These  action  programmes  shall  include  a  list  of  the

the 

Article  5

1.(cid:218)(cid:217)In  the  framework  of  the  programmes  referred  to  in
Title  1,  the  following  shall  be  supported:

-(cid:217)technical  assistance.

-(cid:217)twinnings  and  industrial  cooperation  based  on  part(cid:220)
nerships  between  public  and  private  organisations
from  the  European  Union  and  partner  countries.

-(cid:217)on  a  case  by  case  basis,  the  reasonable  cost  of
the
the 
including  nuclear
justice  and  home  affairs  and  cross(cid:220)border

supplies  required 
assistance. 
safety, 

In  particular  cases, 

implementation  of 

in 

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cooperation,  a  significant  supply  element  may  be
included.

-(cid:217)investment  and 

investment(cid:220)related  activities.  Assist(cid:220)
ance  may  include  technical  assistance  to  catalyse  and
support 
include
investments.  Assistance  may  also 
investment(cid:220)financing,  notably  in  the  areas  of  cross(cid:220)
and
border 
Medium(cid:220)sized  Enterprises, 
infra(cid:220)
structure  and  networks  of  strategic  importance  to  the
Community  as  described  in  Annex  III.

cooperation,  promotion  of  Small 

environmental 

2.(cid:218)(cid:217)In  exceptional  situations  described  in  Article  3(7),
special  support  programmes  may  cover  expenditure  on
imports  and  local  expenditure  needed  to  carry  out  the
projects  and  programmes.

3.(cid:218)(cid:217)The  assistance  shall  also  cover  costs  related  to  the
preparation, 
implementation,  monitoring,  audit  and
evaluation  of  the  programme,  as  well  as  costs  concerning
information.

4.(cid:218)(cid:217)The  measures  can  be  carried  out,  where  appro(cid:220)
priate,  on  a  decentralised  basis.  The  final  recipients  of
Community  assistance  shall  be  closely  involved  in  the
preparation  and  execution  of  the  projects.  Wherever
possible, 
the
projects  shall  be  carried  out  directly  at  regional  and  local
level.

identification  and  preparation  of 

the 

5.(cid:218)(cid:217)Projects  will,  where  appropriate,  be  implemented  in
phases.  Support  for  subsequent  phases  will  depend  upon
the  successful  implementation  of  previous  phases.

Article  7

1.(cid:218)(cid:217)Measures  referred  to  in  this  Regulation  which  are
financed  from  the  general  budget  of  the  European
Communities  shall  be  administered  by  the  Commission  in
accordance  with 
the  Financial  Regulation  applicable
thereto.

2.(cid:218)(cid:217)The  Commission  shall  abide  by  the  principles  of
sound  financial  management  and,  in  particular,  those  of
economy  and  cost(cid:220)effectiveness  referred 
the
Financial  Regulation.

to 

in 

Article  8

1.(cid:218)(cid:217)Community  assistance  shall  in  general  be  in  the
form  of  grants.  They  may  generate  funds  that  can  be
used 
financing  other  cooperation  projects  or
for 
measures.

decisions 

resulting
2.(cid:218)(cid:217)Financing 
therefrom  shall  expressly  provide  for  supervision  by  the
Commission  and  the  Court  of  Auditors  to  be  carried  out
on  the  spot,  if  necessary.

contracts 

and 

Article  9

1.(cid:218)(cid:217)The  cost  of  the  project  in  local  currency  shall  be
covered  by  the  Community  only  to  the  extent  strictly
necessary.

2.(cid:218)(cid:217)The  co(cid:220)financing  of  projects  by 
countries  shall  be  encouraged.

the  partner

6.(cid:218)(cid:217)The 
implementation  will  be  encouraged.

involvement  of 

local  experts 

3.(cid:218)(cid:217)Taxes,  duties  and 
property  shall  not  be  funded  by  the  Community.

the  purchase  of 

immovable

in  project

TITLE  III

FINANCIAL  PROVISIONS

TITLE  IV

GENERAL  PROVISIONS

Article  10

Article  6

1.(cid:218)(cid:217)The  annual  appropriations  shall  be  authorised  by
the  budgetary  authority  within  the  limits  of  the  financial
perspective.

1.(cid:218)(cid:217)The  Commission  shall  be  assisted  by  a  committee
composed  of  the  representatives  of  the  Member  States
and  chaired  by  the  representative  of  the  Commission,  to
be  known  as  the  "committtee  for  cooperation  with  the
New  Independent  States  and  Mongolia’  hereinafter
referred  to  as  the  "committee’.

2.(cid:218)(cid:217)A  maximum  of  25(cid:216)%  of  the  annual  budget  could  be
allocated  to  investment(cid:220)related  activities  as  described  in
Annex  III.  A  maximum  of  25(cid:216)%  of  the  annual  budget
could  be  allocated  to  the  "Incentive  Scheme’  as  outlined
in  Article  4.

2.(cid:218)(cid:217)The  representative  of  the  Commission  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

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shall  be  delivered  by  the  majority  laid  down  in  Article
148(2)  of  the  EC  Treaty.  The  chairman  shall  not  vote.

3.(cid:218)(cid:217)The  Commission  may  adopt  measures  which  shall
apply  immediately.  However,  if  these  measures  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  may  defer
application  of  the  measures  which  it  has  decided  on  for
not  more  than  one  month  from  the  date  of  such
communication.

4.(cid:218)(cid:217)The  Council,  acting  by  qualified  majority,  may  take
a  different  decision  within  the  time  limit  provided  for  by
the  third  paragraph.

5.(cid:218)(cid:217)The  committee  shall  adopt  its  rules  of  procedure  by
qualified  majority.

6.(cid:218)(cid:217)The  Commission  shall  keep  the  committee  regularly
informed,  supplying  specific,  detailed  information  on  the
contracts  awarded  for  the  implementation  of  the  projects
and  programmes.

7.(cid:218)(cid:217)The  European  Parliament  shall  be  kept  regulary
informed  of  the  implementation  of  the  programmes.

8.(cid:218)(cid:217)The  Commission  shall  inform  the  Council  and  the
European  Parliament  of  any  special  programmes  of
support  that  may  be  proposed  according  to  Article  3(7).

Article  11

The  Commission  shall,  together  with  the  Member  States
and  on  the  basis  of  a  reciprocal  and  regular  exchange  of
information,  including  exchange  of  information  on  the
spot,  seek  the  effective  coordination  of  the  assistance
efforts  undertaken  by  the  Community  and  individual
Member  States,  in  order  to  increase  the  coherence  and
complementary  of  their  cooperation  programmes.

In  addition,  the  Commission  shall  ensure  coordination
and  cooperation  with  the  international  financial  insti(cid:220)
tutions  and  other  donors.

Article  12

the 

implementation  of 

Each  year  the  Commission  shall  present  a  progress
report  on 
assistance
programme.  This  report  shall  include  an  evaluation  of
the  assistance  already  provided.  The  report  shall  be
addressed 
the  European
the  Member  States, 
Parliament, 
the  Economic  and  Social
Committee  and  the  Committee  of  the  Regions.

to 
the  Council, 

the 

Article  13

When  an  essential  element  for  the  continuation  of  co(cid:220)
operation  through  assistance  is  missing,  in  particular  in
cases  of  violation  of  democratic  principles  and  human
rights, 
the
Commission,  acting  by  a  qualified  majority,  decide  upon
appropriate  measures  concerning  assistance  to  a  partner
state.

the  Council  may,  on  a  proposal 

from 

The  same  procedure  shall  apply  in  cases  of  the  violation
of  the  obligations  of  the  partner  states  as  set  out  in  the
Partnership  and  Cooperation  Agreements  in  the  event
that  the  dispute  settlement  procedures  provided  for  in
these  agreements  have  not  led  to  satisfactory  results.

Article  14

When  designing  and  implementing  programmmes,  due
regard  shall  be  taken  of:  the  promotion  of  equal  oppor(cid:220)
tunities  for  women  in  the  partner  countries,  environ(cid:220)
mental  considerations, 
the  principles,  objectives  and
requirements  of  the  Partnership  and  Cooperation  and
trade  and  economic  Agreements  and  the  social  impact  of
reform  measures.

Article  15

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

11.2.1999

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ANNEX  I

PARTNER  STATES  REFERRED  TO  IN  ARTICLE  1

Armenia

Azerbaijan

Belarus

Georgia

Kazakhstan

Kyrghyzstan

Moldova

Russian  Federation

Tajikistan

Turkmenistan

Ukraine

Uzbekistan

Mongolia

ANNEX  II

AREAS  OF  COOPERATION  REFERRED  TO  IN  ARTICLE  3(3)

1. Promotion  of  Democracy  and  the  Rule  of  Law

-(cid:217)development  of  the  rule  of  law

-(cid:217)support  for  effective  policy  making

-(cid:217)reform  of  public  administration  at  national,  regional  and  local  level

-(cid:217)support  for  executive  and  legislative  bodies  (national,  regional,  local)

-(cid:217)support  for  Justice  and  Home  Affairs  acitivities

-(cid:217)reinforcement  of  the  legal  and  regulatory  framework

-(cid:217)support  for  the  implementation  of  international  commitments

-(cid:217)support  for  the  civil  society

2. Support  to  the  Private  Sector  and  Assistance  for  Economic  Development

-(cid:217)promotion  of  small  and  medium(cid:220)sized  enterprises

-(cid:217)development  of  the  banking  and  financial  services  systems

-(cid:217)promotion  of  private  entrepreneurship  including  joint  ventures

-(cid:217)industrial  cooperation,  including  research

-(cid:217)privatisation

-(cid:217)enterprise  restructuring

-(cid:217)promotion  of  private  trade  and  investment

3. Support  in  Addressing  the  Social  Consequences  of  Transition

-(cid:217)reform  of  the  health,  pension,  social  protection  and  insurance  systems

-(cid:217)assistance  to  alleviate  the  social  impact  of  industrial  restructuring

-(cid:217)assistance  for  social  reconstruction

-(cid:217)development  of  employment  services,  including  re(cid:220)training

C  37/14

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11.2.1999

4. Development  of  Infrastructure  Networks

-(cid:217)transport  networks

-(cid:217)telecommunication  networks

-(cid:217)energy  pipelines  and  transmission  networks

-(cid:217)border(cid:220)crossing

5. Promotion  of  Environmental  Protection

-(cid:217)development  of  sustainable  environmental  policies  and  practices

-(cid:217)promotion  of  harmonisation  of  environmental  standards  with  EU  norms

-(cid:217)promotion  of  sustainable  use  and  management  of  natural  resources,  including  efficient  energy  usage

and  improvement  of  environmental  infrastructure

6. Development  of  the  rural  economy

-(cid:217)legal  and  regulatory  framework,  including  land  privatisation

-(cid:217)increasing  access  to  finance  and  promotion  of  training

-(cid:217)improvement  of  distribution  and  access  to  markets

Where  applicable,  support  for  nuclear  safety  shall  be  provided  in  accordance  with  the  priorities  outlined  in
Article  2(6).

ANNEX  III

INVESTMENT  PROMOTION

An  important  percentage  of  the  annual  budgetary  allocation  shall  be  used  to  support  investment.  This
assistance  shall  take  the  following  forms:

-(cid:217)technical  assistance  in  support  of  the  enabling  framework;

-(cid:217)technical  assistance  to  catalyse  or  accompany  investment  either  before  or  during  the  investment;

-(cid:217)co(cid:220)financing  with  other  sources  of  investment  financing  or,  on  an  exceptional  basis,  investing  alone.

Investment  financing  shall  be  restricted  and  would  be  justified  by  the  following  criteria:

-(cid:217)the  multiplier  effect,  according  to  which  Community  assistance  would  be  accompanied  by  a  multiple  of

investment  from  other  sources;

-(cid:217)additionality,  when  Community  assistance  would  encourage  investment  which  would  not  otherwise

have  taken  place;

-(cid:217)areas  of  strategic  interest  to  the  Community.

Priority  sectors  for  investment  financing  would  include:  cross(cid:220)border  cooperation,  border  infrastructure,
promotion  of  SMEs,  environmental  infrastructure  and  networks.