Proposal for a Council Regulation on the implementation of operations in the framework of the pre-accession strategy for Cyprus and Malta
Date: 1999-10-13
Institutions: European Commission
Subjects: Cyprus, EU financing, Malta, accession to the European Union, cooperation policy

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Official Journal of the European Communities

29.2.2000

Proposal for a Council Regulation (EC) on the implementation of operations in the framework of
the pre-accession strategy for Cyprus and Malta

(2000/C 56 E/12)

COM(1999) 535 final (cid:151) 1999/0199(CNS)

(Submitted by the Commission on 13 October 1999)

THE COUNCIL OF THE EUROPEAN UNION,

(7) Whereas the financial protocols concluded with Cyprus and

Malta are due to expire on 31 December 1999;

Having regard to the Treaty establishing the European
Community, and in particular Article 308 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

(1) Whereas the General Affairs Councils fo March and April
1995 decided that accession negotiations with Cyprus and
Malta would begin six months after the end of the Inter-
Governmental Conference;

(2) Whereas the Luxembourg European Council of December
1997 decided on a specific pre-accession strategy for
Cyprus and considered that
the accession of Cyprus
should benefit both communities and contribute to civil
peace and reconciliation;

(3) Whereas

following the Vienna European Council of
December 1998, which welcomed Malta’s decision to reac-
tivate its application for accession to the European Union,
in February 1999 the Commission submitted an up-dated
version of its 1993 opinion;

(4) Whereas the General Affairs Council of March 1999 called
on the Commission to present appropriate suggestions as
soon as possible for defining a specific pre-accession
strategy for Malta;

(8) Whereas Cyprus and Malta are eligible in respect of oper-
ations of regional interest for financing under the MEDA
budget heading;

(9) Whereas implementing this Regulation should contribute
to the achievement of Community objectivies; whereas
the Treaty does not provide, for the adoption of this Regu-
lation, for powers other than those of Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

The European Union’s pre-accession strategy for Cyprus

1.
and Malta shall be based in particular on:

(cid:151) the establishment of accession partnerships with Cyprus

and Malta;

(cid:151) support for priority operations to prepare for accession, as
defined within the accession partnerships with Cyprus and
Malta on the basis of analyses of their economic situations,
taking account of the political and economic criteria and
the obligations incumbent upon a Member State of the
European Union as defined by the European Council;

(cid:151) participation in certain Community programmes

and

agencies.

(5) Whereas it is necessary to establish accession partnership
instruments for Cyprus and Malta in accordance with the
procedures set out in Council Regulation (EC) No 622/98
of 16 March 1998 (1) for the applicant States of Central and
Eastern Europe, so that Community assistance can be
concentrated on accession priorities and objectives;

2.
Acting on a proposal from the Commission, the Council
shall decide by qualified majority on the principles, priorities,
intermediate objectives and conditions contained in the indi-
vidual Accession Partnerships to be submitted to each applicant
State, as well as on subsequent significant adjustments to them.

(6) Whereas the provisions of this Regulation are based on the
political criteria established by the Copenhagen European
Council of 1993, in particular respect for democratic prin-
law, human rights and fundamental
ciples,
law, which
freedoms, and compliance with international
are essential elements of
the European
Union and its Member States;

the policies of

the rule of

(1) OJ L 85, 20.3.1998, p. 1.

Article 2

The beneficiaries of cooperation projects and operations may
include not only the state and regions of Cyprus and Malta but
also local authorities, regional organisations, public agencies,
traditional communities, business support organi-
local or
in particular organi-
sations, cooperatives and civil society,
sations of the social partners, associations,
foundations and
non-governmental organisations.

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Article 3

Cooperation projects shall be in the form of grants and may be
financed in the following indicative areas:

Prior appraisal of projects and programmes shall take

3.
account of the following factors:

(cid:151) the effectiveness and viability of projects and programmes;

(cid:151) technical assistance, training or other services, supplies and
works, audits and evaluation and monitoring missions
corresponding to the objectives cited in Article 1;

(cid:151) the environment;

(cid:151) any operations to contribute to the reconciliation of the

two Cypriot communities.

Article 4

1.
Community financing may cover investment, with the
exception of the purchase of buildings, and recurring costs
including administrative, maintenance and operating costs,
taking into account that projects must aim to have recurring
costs taken over by the beneficiaries.

A financial contribution to each cooperation operation
2.
shall be sought from the partners specified in Article 2. The
contribution requested shall be within the means of
the
partners concerned and shall depend on the nature of the
operation. In specific cases where the partner is either a non-
governmental organisation or a community-based organisation,
the contribution may be in kind.

Opportunities may be sought for cofinancing with other

3.
donors, particularly Member States.

4.
The Commission, in consultation with the Member States,
may take any initiative necessary to ensure good coordination
with the other donors concerned.

Article 5

Where an essential element for the continuation of pre-ac-
cession assistance to Cyprus or Malta is lacking, in particular
where there is a violation of democratic principles, the rule of
law, human rights, fundamental freedoms or international law
and/or progress towards fulfiment of the Copenhagen criteria is
insuffisient, the Council, acting by a qualified majority on a
proposal from the Commission, may take appropriate steps
with regard to any pre-accession assistance granted to Cyprus
or Malta.

Article 6

1.
The Commission shall be responsible for appraising,
approving and administering projects covered by this Regu-
lation in accordance with the budget procedures in force and
in particular
those laid down in the Financial Regulation
applicable to the general budget of the European Union.

2.
Pre-accession aid shall also cover expenditure relating to
the identification, implementation, monitoring, inspection and
evaluation of operations.

(cid:151) the institutional development necessary to achieve project

and programme objectives;

(cid:151) experience gained from projects and programmes of the

same kind;

(cid:151) cultural, social and gender aspects.

capacity,

The Commission may decide, on the basis of a case-
4.
by-case analysis of national and sectorial programme/project
management
and
structures
to waive the ex-ante
approval requirement referred to in paragraph 3 and confer
on implementing agencies in applicant countries management
of aid on a decentralised basis. Such a waiver shall be subject
to:

regarding public finance,

control procedures

financial

(cid:151) the minimum criteria

ability of
for
implementing agencies in applicant countries to manage
aid and minimum conditions applicable to such agencies
set out in the Annex to this Regulation;

assessing

the

(cid:151) and specific provisions concerning, inter alia, invitations to
tender, scrutiny and evaluation of tenders, the award of
contracts and the implementation of Community public
procurement directives, which shall be laid down in
financing agreements with each beneficiary country.

5.
Decisions relating to grants of more than EUR 2 000 000
for individual projects or programmes financed under this
Regulation shall be taken under the procedure provided for
in Article 7.

inform the Committee referred to in
The Commission shall
Article 7 succinctly of any financing decisions it intends to
take
than
EUR 2 000 000 in value. The information shall be made
available at least one week before the decision is taken.

and programmes of

regarding projects

less

6.
The Commission is authorised to approve, without
seeking the opinion of the Committee referred to in Article
7, additional commitments needed to cover expected or actual
overruns on the projects or programmes, provided that the
overrun or additional requirement is not more than 20 % of
the initial commitment set in the financing decision.

All financing agreements or contracts concluded under
7.
this Regulation shall provide for the Commission and the
Court of Auditors to conduct on-the-spot checks according
to the procedures laid down by the Commission under the
rules in force, and in particular those of the Financial Regu-
lation applicable to the general budget of the European Union.

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8. Where projects and programmes are the subject of
financing agreements between the Community and Cyprus or
Malta, such agreements shall stipulate that
the payment of
taxes, duties or any other charges is not to be covered by
the Community.

9.
Participation in invitations to tender and the award of
contracts shall be open on equal terms to natural and legal
persons of the Member States, Cyprus and Malta.

Article 9

improving the effectiveness of

The Commission shall regularly assess operations financed by
the Community in order to establish whether the objectives of
the operations have been achieved and to provide guidelines
future operations. The
for
to the Committee referred to in
Commission shall submit
Article 7 a summary of
the assessments made, which the
latter may, if necessary, examine. Assessment reports shall be
requesting them and to the
sent
European Parliament.

to any Member States

Supplies shall originate in the Member States, Cyprus or

10.
Malta.

Article 10

Article 7

A management committee shall be established (hereinafter
referred to as (cid:145)the Committee(cid:146)).

this Regulation enters

Three years after
the
Commission shall submit to the European Parliament and the
Council an overall assessment of operations financed by the
Community under this Regulation, together with suggestions
regarding the future of this Regulation and, where necessary,
proposals for amending it.

into force,

Where reference is made to this article, the advisory procedure
laid down in Article 4(3) of Decision 1999/468/EC shall apply.

Article 11

The period provided for in Article 4 of Decision 1999/468/EC
shall be three months.

This Regulation shall enter
into force on the third day
following its publication in the Official Journal of the European
Communities.

Article 8

This Regulation shall replace the financial protocols for Cyprus
and Malta from 2000 for a period of five years.

An exchange of views shall take place once a year on the basis
of a presentation by the Commission’s representative of the
general guidelines for the operations to be carrie dout in the
year ahead,
the Committee referred to in
Article 7.

in a meeting of

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

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MINIMUM CRITERIA AND CONDITIONS FOR DECENTRALISING MANAGEMENT TO IMPLEMENTING
AGENCIES IN APPLICANT COUNTRIES (ARTICLE 6)

ANNEX

1. Minimum criteria for assessing the ability of implementing agencies in applicant countries to manage aid

The following criteria shall be applied by the Commission in assessing which implementing agencies in partner
countries are able to manage aid on a decentralised basis:

(i) there should be a well-defined system for managing the funds with full

internal rules of procedure, clear

institutional and personal responsibilities;

(ii) the principle of separation of powers must be respected so that there is no risk of conflict of interest in

procurement and payment;

(iii) adequate personnel must be available and assigned to the task. They must have suitable auditing skills and

experience, language skills and be fully trained in implementing Community programmes.

2. Minimum conditions for decentralising management to implementing agencies in applicant countries

Decentralisation to applicant countries with ex post control by the Commission may be considered for an
implementing agency where the following conditions are met:

(i) demonstration of effective internal controls including an independent audit function and an effective accounting

and financial reporting system which meets internationally accepted audit standards;

(ii) a recent financial and operational audit showing effective and timely management of Community assistance or

national measures of similar nature;

(iii) a reliable national financial control system over the implementing agency;

(iv) procurement rules which are endorsed by the Commission as meeting requirements of Title IX of the Financial

Regulation applicable to the general budget of the European Communities;

(v) Commitment by the National Authorising Officer to bear the full financial responsbility and liability for the

funds.

This approach shall not prejudice the right of the Commission and the Court of Auditors to check the expenditure.