Proposal for a Council Decision amending Regulation (EC) No 1488/96 on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership
Date: 1999-10-20
Institutions: European Commission
Subjects: Mediterranean third countries, economic reform, financial cooperation, financing of aid

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Official Journal of the European Communities

28.3.2000

Proposal for a Council Regulation (EC) amending Regulation (EC) No 1488/96 on financial and
technical measures to accompany (MEDA) the reform of economic and social structures in the
framework of the Euro-Mediterranean partnership

(2000/C 89 E/03)

COM(1999) 494 final (cid:151) 1999/0214(CNS)

(Submitted by the Commission on 20 October 1999)

THE COUNCIL OF THE EUROPEAN UNION,

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,

Whereas:

(1) Article 15(6) of Council Regulation (EC) No 1488/96 (1),
as amended by Regulation (EC) No 780/98 (2), provides
that it is to be reviewed by the Council before 30 June
1999 and that the Commission will, if necessary, submit
the amendments to be made to it;

(2) The Mediterranean region constitutes a priority area for
the European Union and the political, economic and social
development of the Mediterranean partners is a challenge
of ever-increasing proportions;

(3) It is important to pursue and intensify the cooperation
launched within the Euro-Mediterranean Partnership
which was established by the Barcelona Declaration
adopted at
the Euro-Mediterranean Conference of 27
and 28 November 1995;

(4) New Euro-Mediterranean association agreements are now
starting to come into force and their preparation and
implementation require major adjustment efforts by the
Mediterranean
be
partners.
supported by the European Community;

should

efforts

Those

(5) Over the period 1995-1998, Regulation (EC) No 1488/96
has been implemented satisfactorily but
is now
necessary to streamline decision-making procedures in
order
implementation of
Community assistance;

to permit more

efficient

it

(6) Indicative programming should therefore express more
clearly the envisaged impact of planned MEDA-funded
operations
in the context of Mediterranean partners’
reform processes and the establishment of the Euro-Medi-
terranean partnership;

(1) OJ L 189, 30.7.1996, p. 1.
(2) OJ L 113, 15.4.1998, p. 3.

indicative programmes

(7) Council Decision 96/706/EC (3) contains the guidelines for
concerning financial and
the
technical measures
reform of
economic and social structures in the framework of the
Euro-Mediterranean partnership;

accompany

the

to

(8) The national and regional indicative programmes define
the main objectives of, the guidelines for, and the priority
sectors of Community support;

(9) The introduction of national and regional financing plans
based on the indicative programmes facilitates the stream-
lining of decision-making procedures;

(10) Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995 on the protection of
the European
Communities’ financial interests (4) establishes a common
legal framework for all the fields of the Communities’ own
resources
and expenditure. Council Regulation (EC,
Euratom) No 2185/96 of 11 November 1996 concerning
on-the-spot checks and inspections carried out by the
Commission in order to protect the European Commun-
interests against fraud and other irregu-
ities’
financial
larities (5) applies
the Communities’
activity without prejudice to the provisions of
the
Community rules specific to the different policy areas;

to all areas of

(11) Since the measures necessary for the implementation of
this Regulation are management measures within the
meaning of Article 2 of Council Decision 1999/468/EC
of 28 June 1999 laying down the procedures for the
conferred on the
exercise of
Commission (6) they should be adopted by use of
the
management procedure provided for in Article 4 of that
Decision;

implementing powers

(12) The Commission and the European Investment Bank are
in their
risk capital

committed to ensuring further
collaboration on the implementation of
operations and interest subsidies;

improvement

(13) Regulation (EC) No 1488/96 should therefore be amended

accordingly;

(14) The Treaty does not provide, for the adoption of this
Regulation, powers other than those under Article 308,

(3) OJ L 325, 14.12.1996, p. 20.
(4) OJ L 312, 23.12.1995, p. 1.
(5) OJ L 292, 15.11.1996, p. 2.
(6) OJ L 184, 17.7.1999, p. 23.

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HAS ADOPTED THIS REGULATION:

4. Article 7 is amended as follows:

Regulation (EC) No 1488/96 is hereby amended as follows:

following:

Article 1

(a) The first subparagraph of paragraph 1 is replaced by the

1. In Article 1, paragraph 3 is deleted.

2. Article 5 is amended as follows:

(a) In paragraph 2, the following subparagraph is added:

(cid:145)These programmes describe the reforms to be imple-
mented by the partners in the priority sectors and
include an evaluation of progress made in this
shall
respect.(cid:146)

(b) Paragraphs 2a and 2b are inserted:

(cid:145)Measures under this Regulation may cover expenditure
on imports of goods and services and local expenditure
needed to carry out the projects and programmes. Direct
budgetary support in favour of the beneficiary partner
may also be covered to support economic reform. Taxes,
duties and charges shall be excluded from Community
financing.(cid:146)

(b) Paragraph 2 is replaced by the following:

(cid:145)2a National and regional

financing plans shall, as a
rule, be adopted annually, on the basis of
the
indicative programmes referred to in paragraph 2.
include a list of projects to be
The plans shall
shall be
financed. The contents of
the plans
the
determined in sufficient detail
Committee set up by Article 11(1) to deliver its
opinion.

to enable

2b The Commission and the Bank shall ensure that
programming of measures concerning risk capital
and interest rate subsidies is complementary to
and consistent with the national and regional
indicative programmes and with the national and
regional financing plans.(cid:146)

(c) Paragraph 3 is replaced by the following:

Financing decisions

(cid:145)3.
indicative programmes or financing plans.(cid:146)

shall be based on the

3. Article 6 is amended as follows:

(a) In paragraph 1, the third sentence is replaced by the

following:

(cid:145)Depending on market conditions, the subsidy shall be
between 1% and 3%.(cid:146)

(b) In paragraph 3, the first subparagraph is replaced by the

following:

(cid:145)Financing decisions and any financing agreements and
contracts resulting therefrom shall provide, inter alia, for
supervision and financial control by the Commission,
including on-the-spot checks and inspections pursuant
to Council Regulation (EC, Euratom) No 2185/96 (*),
and audits by the Court of Auditors, where appropriate,
to be carried out on the spot.

The Commission shall take measures, in accordance with
the procedure set out in Article 11(2) of this Regulation,
in order to provide for the proper protection of the
the European Community in
financial
interests of
Euratom) No
accordance with Regulation
2988/95 (**).

(EC,

___________
(*) OJ L 292, 15.11.1996, p. 2.
(**) OJ L 312, 23.12.1995, p. 1.(cid:146)

(cid:145)Costs
incurred in identifying, preparing, managing,
monitoring, auditing and controlling programmes or
projects may also be covered. This may include costs
related to technical and administrative assistance when
such assistance
the
Commission and the beneficiaries of the activity and
does not belong to the permanent tasks of the public
service.(cid:146)

to the mutual benefit of

is

5. Article 9 is amended as follows:

(a) Paragraphs 2, 3 and 4 are replaced by the following:

The indicative programmes, the financing plans
(cid:145)2.
and any amendment to them shall be adopted by the
Commission in accordance with the procedure referred
to in Article 11(2).

3.
Financing decisions, other than those relating to
interest-rate subsidies on Bank loans and risk capital,
regional
that are not covered by the national or
financing plans,
in
shall be
accordance with the procedure laid down in Article
11(2), subject to paragraph 4 of this Article.

adopted individually

4.
Financing decisions referred to in paragraph 3 not
exceeding 2 000 000 euro shall be adopted by the
Commission if they form part of an overall allocation.
An overall allocation shall be adopted in accordance
with the procedure referred to in Article 11(2). The
Committee
shall be
established by Article 11(1)
informed systematically and promptly and in any event
before its next meeting, of
financing decisions not
exceeding 2 000 000 euro.(cid:146)

(b) Paragraphs 5 and 6 are deleted.

6. In Article 10, paragraph 2 is replaced by the following:

(cid:145)2.
In financing decisions taken under this Regulation and
the assessments mentioned in Article 15, the Commission
shall abide by the principles of sound financial management
and, in particular, those of economy and cost-effectiveness
referred to in the Financial Regulation.(cid:146)

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7.

In Article 11, paragraphs 1, 2 and 3 are replaced by the
following:

(b) The first sentence of paragraph 2 is replaced by the

following:

The Commission shall be assisted by the MEDA

(cid:145)1.
Committee (hereinafter referred to as (cid:147)the Committee(cid:148)).

reference

2. Where
the
is made
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply, in compliance with Article 7(3)
thereof.

to this Article,

(cid:145)The Commission and the Bank shall evaluate the main
projects and sectors of intervention that concern each of
them in order to determine whether the objectives have
been achieved and to establish guidelines for increasing
the effectiveness of future activities.(cid:146)

(c) Paragraph 6 is deleted.

9. Annex II is amended as shown in the Annex to this Regu-

The period provided for in Article 4(3) of Decision

3.
1999/468/EC shall be three months.

lation.

3a.
A representative of the Bank shall take part in the
proceedings within the Committee without a right to vote.(cid:146)

8. Article 15 is amended as follows:

(a) In paragraph 1, (cid:145)30 April(cid:146) is replaced by (cid:145)30 June(cid:146).

Article 2

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.

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Annex II is amended as follows:

1. Part I(b) is replaced by the following::

ANNEX

(cid:145)(b) Operations in support of reform programmes of the partners,

implemented on the basis of the following

principles:

(cid:151) the support programmes shall be designed to restore, or as the case may be, the consolidation of the major
financial balances and to create an economic environment favourable to accelerated growth, while at the
same time improving the well-being of the population; the support programmes may also target assistance
to reforms in key sectors with a view to the creation of a free trade area with the Community;

(cid:151) the support programmes shall be adapted to the particular situation of each country and take account of

economic and social conditions;

(cid:151) the support programmes shall lay down measures intended, in particular, to alleviate the negative effects
which the process of economic transition and the accomplishment of a Euro-mediterranean free trade area
may have on social conditions and employment, especially for underprivileged sections of the population;

(cid:151) disbursement of the support will be implemented in tranches in the form of direct budgetary support
targets agreed within the support

according to the compliance with the objectives and/or sectoral
programme.

The following eligibility criteria must be satisfied:

(cid:151) the country concerned must undertake a reform programme approved by the Bretton Woods institutions or
implement programmes recognised as analogous, in coordination with those institutions, but not necessarily
financially supported by them, in accordance with the scope and effectiveness of the reforms;

(cid:151) account must be taken of the economic situation of the country, at the macro-economic level (indebtedness,
cost of debt-servicing, the balance of payments, the budget situation, the monetary situation, the level of per
capita income and the unemployment level) and at the level of sectoral reforms with a view to creating a free
trade area with the European Community.(cid:146)

2. The eleventh indent of Part II is replaced by the following:

(cid:145)(cid:151) cooperation and technical assistance in order to strengthen cooperation in the area of migration and the combat
against illegal migration, including repatriation of illegal residents and trafficking in human beings, reinforcement
of judicial cooperation in civil matters as well as cooperation to prevent and to combat crime, including illegal
drug trafficking;(cid:146)