Common Position (EC) No 42/1999 of 22 October 1999 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Regulation of the European Parliament and of the Council concerning the financial instrument for the environment (LIFE)
Date: 1999-10-22
Institutions: Council of the European Union
Subjects: EU environmental policy, EU financial instrument, environmental protection, quality of the environment

2.12.1999

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I

(Information)

COUNCIL

COMMON POSITION (EC) No 42/1999

adopted by the Council on 22 October 1999

with a view to adopting Regulation (EC) No (cid:133)/1999 of the European Parliament and of the
Council concerning the financial instrument for the environment (LIFE)

(1999/C 346/01)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community and in particular Article 175(1) thereof,

Having regard to the proposal from the Commission (1),

Having regard to the opinion of
Committee (2),

the Economic and Social

Having regard to the opinion of
Regions (3),

the Committee of

the

Acting in accordance with the procedure laid down in Article
251 of the Treaty (4),

Whereas:

further contributing to the implementation, updating
and development of Community environment policy and
of environmental legislation, in particular as regards the
integration of the environment into other policies, and
to
Community,
amendments are to be made to Regulation (EEC) No
1973/92, which should, for reasons of clarity, be recast
and replaced by this Regulation;

development

sustainable

the

in

(3) The financial

instrument for the environment, LIFE,

is
being implemented in phases; the second phase ends on
31 December 1999;

(4) Given the positive contribution of LIFE to the attainment
of
the objectives of Community policy on the
environment and in accordance with Article 14 of
Regulation (EEC) No 1973/92, a third phase for a period
of five years ending on 31 December 2004 should be set
in motion;

(1) Council Regulation (EEC) No 1973/92 of 21 May 1992
establishing a financial instrument for the environment
(LIFE) (5) was
to
the
implementation
of Community
environment policy and of environmental legislation;

to
development

adopted
and

contribute

(5)

reinforced as

financial
LIFE should be
a
instrument,
complementary with other Community
instruments, without however limiting LIFE interventions
to areas not covered by other Community financial
instruments;

specific

(2) Regulation (EEC) No 1973/92 was substantially amended
by Regulation (EC) No 1404/96 (6); with a view to

(1) OJ C 15, 20.1.1999, p. 4.
(2) OJ C 209, 22.7.1999, p. 14.
(3) Opinion delivered on 16 September 1999 (not yet published in the

Official Journal).

(4) Opinion of the European Parliament of 14 April 1999 (OJ C 219,
30.7.1999, p. 265), Council Common Position of 22 October
1999 and Decision of the European Parliament of (cid:133) (not yet
published in the Official Journal).

(5) OJ L 206, 22.7.1992, p. 1.
(6) OJ L 181, 20.7.1996, p. 1.

(6) The

and

efficiency

transparency

various
procedures for LIFE should be improved by identifying
clearly the three component parts which constitute the
instrument;

the

of

(7)

is necessary to ensure effective monitoring and

It
evaluation of the actions undertaken under LIFE;

(8) The experience gained with LIFE during the second
phase has highlighted the need to concentrate efforts by

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Official Journal of the European Communities

specifying more clearly the areas of activity able to
benefit from Community financial aid, simplifying the
management burden and improving the measures to
disseminate
experience
gained, the results achieved and their long-term impact,
with a view to promoting the transfer of these results;

information concerning

the

(9) The development of Community environmental policy
the results achieved and the
actions
individual

take account of

must
experience
implemented under LIFE;

from the

gained

participation
programmes,
environment;

of
in

those
particular

countries
in

the

2.12.1999

in

Community
the
of

field

(16) While the abovementioned Central and Eastern European
the costs
countries should normally themselves meet
arising from their participation,
the Community may
decide, if necessary, for specific cases and in conformity
with the rules applicable to the general budget of the
European Union and the relevant association agreements,
to supplement the national contribution of the country
concerned;

(10) Consideration should be given to migration routes and
the role of buffer zones in the context of projects
contributing to the implementation of (cid:145)Natura 2000(cid:146);

(17) The other accession candidate countries may, where they
make a financial contribution to LIFE, participate on
laid down for
conditions
the
to those
and Eastern European
accession candidate Central
countries;

equivalent

(11)

Preparatory projects should concern the development of
new Community environmental actions and instruments,
legislation and
and/or the updating of environmental
policies;

(12) Decision No 2179/98/EC of

the European Parliament
and of the Council of 24 September 1998 on the review
of the European Community programme of policy and
action in relation to the environment and sustainable
development (cid:145)Towards sustainability(cid:146) (1) sets, among the
priority objectives of the Community, the development
of
of
the
environmental
industry,
including,
and medium-sized
in
enterprises (SMEs), and giving priority to the problems
of SMEs as regards technical and financial obstacles to
the development and use of clean technology in relation
to the environment;

awareness on the part of
small
particular,

programmes

promotion

further

for

(13) The employment implications of proposals considered
for financial support under LIFE-Environment should be
taken into account, where appropriate;

(14)

For third countries bordering on the Mediterranean and
the Baltic Sea other than the countries of Central and
concluded association
Eastern Europe which have
agreements with the European Community,
technical
assistance activities are needed to create capacities and
administrative structures in the field of the environment;

(15) The

Europe

agreements

European
Communities and their Member States, of the one part,
and the
and Eastern
European countries, of the other part, provide for the

accession candidate Central

between

the

(18) Receipts

from third countries
the instrument

constitute

resources
in question and are

earmarked for
entered as such in the corresponding expenditure item;

(19)

Selection mechanisms
should be established so that
Community assistance may be adapted to the particular
features of
to be supported; guidelines
should promote synergy between demonstration actions
and the guiding principles of Community environmental
policy with a view to sustainable development;

the projects

as

(20) A committee should be set up to assist the Commission
in implementing this Regulation;
the measures
necessary for the implementation of this instrument are
measures of general scope within the meaning of Article
2 of Council Decision 1999/468/EC of 28 June 1999
exercise of
laying down the procedures
implementing powers conferred on the Commission (2),
these measures should be adopted in accordance with
the regulatory procedure set out in Article 5 of the said
Decision;

the

for

(21) This Regulation lays down, for the entire duration of the
third phase, a financial framework constituting the prime
the
reference, within the meaning of point 33 of
Interinstitutional Agreement of 6 May 1999 between
the
the
Commission (3), for the budgetary authority during the
annual budgetary procedure;

the Council

Parliament,

European

and

(22) The European Parliament

should
examine the advisability of continuing the LIFE action
beyond the third phase, acting on the basis of a proposal
from the Commission,

and the Council

(1) OJ L 275, 10.10.1998, p. 1.

(2) OJ L 184, 17.7.1999, p. 23.
(3) OJ C 172, 18.6.1999, p. 1.

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HAVE ADOPTED THIS REGULATION:

Article 1

General objective

A financial
instrument
referred to as (cid:145)LIFE(cid:146), is hereby established.

the

for

environment, hereinafter

The general objective of LIFE shall be to contribute to the
implementation, updating and development of Community
in
environment policy and of
particular as regards the integration of the environment into
other policies,
in the
Community.

and to sustainable development

environmental

legislation,

conservation of natural habitats and of wild fauna and flora (2)
the Natura 2000 European network
and,
established by the latter Directive.

in particular,

2.

The following shall be eligible for LIFE-Nature:

(a) nature conservation projects which further the specific
objective set out
in paragraph 1 and contribute to
maintaining or restoring natural habitats and/or species
populations to a favourable conservation status within the
meaning of Directive 92/43/EEC;

(b) accompanying measures which further

the

specific

objective set out in paragraph 1 and are required to:

(i)

prepare projects
Member States ((cid:145)starter(cid:146) measure);

involving partners

in several

Article 2

Thematic components and general criteria

(ii)

exchange
measure);

experiences

between projects

((cid:145)co-op(cid:146)

shall

LIFE
the
LIFE-Nature, LIFE-Environment and LIFE-Third Countries.

consist of

thematic

three

components

(iii) monitor and evaluate projects and disseminate their
results, including the results of projects decided upon
during the preceding phases of LIFE ((cid:145)assist(cid:146) measure).

The projects financed by LIFE shall meet the following general
criteria:

Financial assistance shall be provided by co-financing of

3.
projects. The maximum rate shall be:

(a) be of Community interest by making a significant
contribution to the general objective laid down in Article
1;

(a) 50 % for nature conservation projects and 100 % for

accompanying measures;

(b) be carried out by technically and financially sound

participants;

(c) be feasible in terms of

technical proposals,

timetable,

budget and value for money.

Priority may be given to projects based on a multinational
approach when this is likely to have more effective results in
terms of achievement of objectives
taking into account
feasibility and costs.

Article 3

LIFE-Nature

specific objective of LIFE-Nature
to the

to
1.
The
contribute
implementation of Council Directive
79/409/EEC of 2 April 1979 on the conservation of wild
birds (1), Council Directive 92/43/EEC of 21 May 1992 on the

shall be

(b) by way of exception, the rate of 50 % provided for in (a)
shall be a maximum of 75 % for projects concerning
priority natural habitats or priority species within the
meaning of Directive 92/43/EEC or the species of birds
considered as priority for funding under LIFE-Nature by
the committee set up pursuant to Article 16 of Directive
79/409/EEC.

to be

Proposals

for projects

4.
to
paragraph 2(a) shall be forwarded to the Commission by the
involve more than one
Member States. Where projects
Member State, proposals shall be forwarded by the Member
State in which the project coordinating body is located.

financed pursuant

in accordance with paragraph 7, before

Proposals shall be forwarded to the Commission before 31
October of each year. The Commission shall decide on these
proposals,
the
following 30 April. Proposals for the year 2000 shall be
forwarded to the Commission before 31 March 2000. The
Commission shall decide on these proposals in accordance
with paragraph 7 before 31 October 2000.

(1) OJ L 103, 25.4.1979, p. 1. Directive as last amended by Directive

(2) OJ L 206, 22.7.1992, p. 7. Directive as last amended by Directive

97/49/EC (OJ L 223, 13.8.1997, p. 9).

97/62/EC (OJ L 305, 8.11.1997, p. 42).

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5.
in
Proposals shall be considered for financial support,
accordance with paragraph 7, only where they comply with
the requirements of Article 2 and paragraph (2)(a) of
this
Article, and meet the following criteria:

assistance,
specific technical conditions of the project approved.

the financial procedures and controls, and the

8.

At the Commission’s initiative:

(a) projects in the European territory of the Member States

relating to:

(i)

a site proposed by a Member State under Article 4 of
Directive 92/43/EEC, or

(a) accompanying measures

to be financed pursuant

to
paragraph 2(b)(i) and (ii) shall, after consultation of the
committee mentioned
of Directive
92/43/EEC, be the subject of calls for expressions of
interest. Member
submit proposals on
accompanying measures to the Commission;

States may

in Article

21

(ii)

a site classified pursuant to Article 4 of Directive
79/409/EEC, or

(b) accompanying measures
paragraph 2(b)(iii)
expression of interest.

to be financed pursuant
shall be the subject of calls

to
for

(iii) a species in Annexes II or IV to Directive 92/43/EEC

or in Annex I to Directive 79/409/EEC;

(b) projects in accession candidate countries to which Article

6 applies relating to:

All calls for expression of interest shall be published in the
Official Journal of the European Communities where the specific
criteria to be met will be set out.

(i)

(ii)

in Annex I or a species in Annex II

a site of international importance hosting a type of
habitat
to
Directive 92/43/EEC or a type of habitat or species
not present in the Community but classified in the
relevant Berne Convention resolutions as being in
need of specific conservation measures; or

international

importance hosting a bird
a site of
species in Annex I
to Directive 79/409/EEC or a
migratory bird species present in the Community or
a bird species not present in the Community but
classified
Convention
relevant
resolutions as being in need of specific conservation
measures; or

Berne

the

in

(iii) a species in Annexes II or IV to Directive 92/43/EEC
or in Annex I to Directive 79/409/EEC or a species
not present
in the Community but classified in
Appendix I or II to the Berne Convention.

6.
A summary of the proposals received shall be sent to the
Member States by the Commission. Upon request, it shall place
the original documents at the disposal of the Member States
for consultation.

Projects

considered

under
for
7.
LIFE-Nature shall be subject to the procedure set out in Article
11. For the purposes of this paragraph, the committee shall be
that referred to in Article 20 of Directive 92/43/EEC.

financial

support

An outline decision shall be adopted by the Commission and
addressed to the Member States on the projects which have
been accepted, and individual decisions shall be addressed to
financial
the beneficiaries

laying down the

amount of

Article 4

LIFE-Environment

1.
The specific objective of LIFE-Environment shall be to
contribute to the development of innovative and integrated
techniques and methods and to the further development of
Community environment policy.

The following projects and/or measures shall be eligible

2.
for LIFE-Environment:

(a) demonstration projects which further the objective set out

in paragraph 1 and:

(cid:151) integrate considerations on the environment and on
sustainable development in land-use development and
planning, including in urban and coastal areas; or

(cid:151) minimise the environmental

impacts of economic

activities by means of a preventive approach; or

(cid:151) prevent, reuse, recover and recycle waste of all kinds
and ensure the sound management of waste streams;
or

(cid:151) reduce the environmental impact of products through
an integrated approach to production, distribution,
their
consumption and handling at
life-time,
of
including
environmentally friendly products;

the end of
development

the

(b) projects which are preparatory to the development of new
instruments,
legislation and

Community
environmental
and/or to the updating of environmental
policies;

actions

and

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(c) accompanying measures required to:

(i)

disseminate
experience between projects;

information

for

the

exchange

of

(ii)

the

and

promote

evaluate, monitor,
actions
undertaken during this implementation phase of the
LIFE instrument and during the first two phases, and
information on the
for
experience gained and on the transfer of
results
obtained with such actions.

dissemination of

the

Financial assistance shall be provided by co-financing of

3.
projects.

The rate of Community financial support shall be a maximum
for projects
of 30 % of
generating
the
beneficiaries’ contribution to the financing shall be at least as
much as the Community support.

the eligible cost of
substantial

the project

revenue.

In this

case,

net

rate of Community financial

The
to all other
applicants shall be a maximum of 50 % of the eligible cost of
the project.

support

rate

of Community

The
the
accompanying measures shall be a maximum of 100 % of their
cost.

financial

support

for

as

As

far

are

4.
concerned,
demonstration projects
guidelines will be established by the Commission, after being
subject to the procedure set out in Article 11, and published in
the Official Journal of the European Communities. The guidelines
shall promote synergy between demonstration actions and the
guiding principles of Community environmental policy with a
view to sustainable development.

Proposals

for projects

to be financed pursuant

5.
to
paragraph 2(a) shall be forwarded to the Commission by the
Member States. Where projects
involve more than one
Member State, proposals shall be forwarded by the Member
State in which the project coordinating body is located.

Proposals shall be forwarded to the Commission before 31
January of each year. The Commission shall decide on these
proposals, in accordance with paragraph 10, before 31 July.
the year 2000 shall be forwarded to the
Proposals
Commission before 31 March 2000. The Commission shall
decide on these proposals in accordance with paragraph 10
before 31 October 2000.

for

6.
Proposals shall only be considered for financial support,
in accordance with paragraph 10, where they comply with the
requirements of Article 2 and paragraph (2)(a) of this Article
and meet the following criteria:

(a) providing solutions to a problem which arises very often
in the Community or is of great concern to some Member
States;

(b) being innovative by virtue of

the technology or

the

method applied;

(c)

setting an example and representing progress compared
with the current situation;

(d) being capable of promoting the dissemination and widest
and/or

possible
products conducive to environmental protection;

application of practices

technologies

(e) aiming at developing and transferring know-how which

can be used in identical or similar situations;

(f) promoting cooperation in the environmental field;

(g) having a potential satisfactory cost-benefit ratio from an

environmental point of view;

(h) promoting integration of environmental considerations
into activities whose main aims are economic and social.

When these proposals are considered,
implications
appropriate.

should also be

their employment
taken into account, where

7.

The following costs shall be considered ineligible:

(a)

land purchase;

(b)

studies not specifically addressing the objective aimed at
by the financed projects;

(c)

investments in major infrastructures or investments of a
non-innovative
activities
already confirmed on an industrial scale;

structural nature,

including

(d)

research and technological development activities.

8.

At the Commission’s initiative:

to be financed pursuant

(a) projects to be financed pursuant to paragraph 2(b) and
to
accompanying measures
paragraph 2(c)(i) shall, after consultation of the committee
mentioned in Article 11, be the subject of calls for
submit
expression of
proposals on projects
to
paragraph 2(b) to the Commission;

financed pursuant

interest. Member

States may

to be

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(b) accompanying measures

paragraph 2(c)(ii)
expression of interest.

to be financed pursuant
to calls
subject

the

shall be

to
for

the projects referred to in paragraph 2(a) and a maximum of
100 % of the cost of the accompanying measures referred to in
paragraph 2(b).

All calls for expression of interest shall be published in the
Official Journal of the European Communities where the specific
criteria to be met will be set out.

9.
A summary of the main points and of the content of the
proposals received under paragraphs 2(a) and (b) shall be sent
it
to the Member States by the Commission. Upon request,
shall place the original documents at
the
Member States for consultation.

the disposal of

Projects considered for financial support shall be subject

10.
to the procedure set out in Article 11.

be

An

shall

outline

decision

11.
the
Commission and addressed to the Member States on the
projects which have been accepted and individual decisions
shall be addressed to the beneficiaries laying down the amount
of financial assistance, the financial procedures and controls,
and the specific technical conditions of the projects approved.

adopted

by

Article 5

LIFE-Third Countries

shall be

Proposals for projects to be financed under paragraph
4.
2(a)
submitted to the
from third countries
Commission by the relevant national authorities. Where
projects involve more than one country, proposals shall be
submitted by the country in which the project coordinating
body is located or by the international organisation acting to
protect the environment in the geographical area concerned.

Proposals shall be submitted to the Commission before 31
January of each year. The Commission shall decide on these
applications in accordance with paragraph 7 before 31 July.
Proposals
the year 2000 shall be submitted to the
Commission before 31 March 2000. The Commission shall
decide on these proposals in accordance with paragraph 7
before 31 October 2000.

for

5.
in
Proposals shall be considered for financial support,
accordance with paragraph 7, only where they comply with
the requirements of Article 2 and paragraph (2)(a) of
this
Article and meet the following criteria:

(a) be of interest to the Community, notably through their
contribution to implementing regional and international
guidelines and agreements;

(b) contribute

approach
development at international, national or regional level;

promoting

sustainable

an

to

1.
The specific objective of LIFE-Third Countries shall be to
contribute to the establishment of capacities and administrative
structures needed in the environmental sector and in the
development of environmental policy and action programmes
in third countries bordering on the Mediterranean and the
Baltic Sea other than the countries of Central and Eastern
Europe which have concluded association agreements with the
European Community and are referred to in Article 6(1).

2.

The following shall be eligible for LIFE-Third Countries:

(a)

technical assistance projects which further the objective set
out in paragraph 1;

(c) provide solutions to major environmental problems in the

region and the relevant sector.

Priority will be given to projects which will promote
cooperation at
trans-national or regional
level.

the trans-frontier,

A summary of the main points and the content of the
6.
proposals received from the third countries shall be sent to the
Member States by the Commission.

Upon request,
disposal of the Member States for consultation.

it shall place the original documents at

the

(b) accompanying measures

for

required

evaluating,
monitoring and promoting the actions undertaken during
the LIFE instrument and
this implementation phase of
during the first two phases thereof, for the exchange of
experience between projects and for the dissemination of
information on the experience gained and on the results
obtained with such actions.

Projects considered for financial support shall be subject
7.
to the procedure set out in Article 11. Without prejudice to
this procedure, the committee set up pursuant to Article 21 of
Directive 92/43/EEC shall be consulted before a decision is
taken
protection. The
Commission shall adopt a decision concerning the list of
projects selected.

concerning

projects

nature

on

3.
Financial assistance shall be provided by co-financing of
projects and accompanying measures. The rate of Community
financial support shall be a maximum of 70 % of the cost of

8.
The projects approved shall give rise to a contract
between the Commission and the beneficiaries setting out the

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amount of financial assistance, the financial procedures and
controls, as well as all the specific technical conditions of the
approved project. The list of proposals accepted shall be sent
to the Member States.

countries,

accession candidate
be open for
participation by those countries in accordance with paragraphs
2 to 6. Countries participating under this Article may not
participate under Article 5.

LIFE will

9.
At the Commission’s initiative, accompanying measures
to be financed under paragraph 2(b) shall be the subject of
calls for expression of interest published in the Official Journal
of the European Communities and setting out the specific criteria
to be met.

8.
The annual breakdown of appropriations devoted to
co-financing of the instrument by the countries referred to in
paragraphs 1 and 7 is published in the general budget of the
European Union, Section III, Part B, Annex IV.

Article 6

Participation of accession candidate countries

1.
LIFE shall be open to the accession candidate Central and
Eastern European countries in accordance with the conditions
referred to in the association agreements concluded with those
countries and on the basis of provisions of the decision of the
Association Council competent for each country concerned.

2.
Proposals for projects to be financed under LIFE-Nature
and LIFE-Environment shall be forwarded to the Commission
by the national authorities of the countries concerned within
the time limits indicated in Article 3(4) and Article 4(5)
respectively. Where projects involve more than one country,
proposals shall be forwarded by the country in which the
project coordinating body is located.

Proposals which meet

3.
in
Article 2 and the specific criteria set out in Article 3(5)(b) and
Article 4(6) and (8) shall be taken into consideration for
Community financial support.

the general criteria set out

A summary of the main points and of the content of the
4.
proposals
the
received from the national authorities of
countries concerned shall be sent to the Member States by the
the original
Commission. Upon request,
documents
for
consultation.

shall place
the Member States

it
the disposal of

at

5.
Projects considered for LIFE financial support shall be
subject either to the procedure set out in Article 3(7) or to
that set out in Article 11 according to the type of project
proposed.

6.
The projects approved shall give rise to a contract or an
agreement between the Commission and the beneficiaries
setting out the amount of financial assistance, the financial
procedures and controls, as well as all the specific technical
the approved action. The list of proposals
conditions of
accepted shall be sent to the Member States.

Article 7

Consistency between financial instruments

accession
to the
1. Without prejudice
candidate countries set out in Article 6, projects receiving aid
provided for under the Structural Funds or other Community
budget instruments shall not be eligible for financial assistance
under this Regulation.

conditions

for

2.
The Commission shall ensure that actions undertaken in
the framework of this Regulation are consistent with those
undertaken under the Structural Funds, research, technological
development
other
and
Community financial instruments.

demonstration

programmes

or

Article 8

Duration of the third phase and budgetary resources

1.
LIFE shall be implemented in phases. The third phase
shall start on 1 January 2000 and shall end on 31 December
2004. The financial framework for the implementation of the
third phase for the period 2000 to 2004 is hereby set at EUR
613 million.

The budgetary resources allocated to the actions provided
2.
for
entered in the annual
in this Regulation shall be
appropriations of the general budget of the European Union.
The available annual appropriations shall be authorised by the
financial
budgetary
perspective.

authority within the

limits of

the

The amount of resources to be allocated to each of the

3.
areas of activity shall be as follows:

(a) 47 % for actions undertaken under Article 3;

(b) 47 % for actions undertaken under Article 4;

7. Where conditions and provisions equivalent
to those
referred to in paragraph 1 have been established for the other

(c) 6 % for actions undertaken under Article 5.

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The accompanying measures shall be limited to 5 % of the
available appropriations.

Article 10

Article 9

Monitoring of projects

1.
For any project financed by LIFE, the beneficiary shall
send the Commission and, upon request, the Member State
concerned technical and financial reports on the progress of
work. Reports
in
summarised form. A final report shall also be sent to the
Commission and the Member State concerned within three
months of completion of the project.

to Member States could be sent

sent

The Commission shall determine the form and content of the
reports. The report shall be based on the physical and financial
indicators set out in the Commission decision approving the
projects or in the contract or agreement concluded with the
beneficiaries. These indicators shall be such as to indicate the
progress of the work and the objectives to be attained within a
specified time limit.

2. Without prejudice to the audits carried out by the Court
of Auditors in liaison with the competent national audit bodies
or departments pursuant to Article 248 of the Treaty, or any
inspection carried out pursuant to Article 279(c) of the Treaty,
the Commission may carry out
officials and other staff of
on-the-spot checks,
including sample checks, on projects
financed under LIFE.

Protection of Community financial interests

1.
The Commission may reduce, suspend or recover the
amount of financial assistance granted for a project if it finds
irregularities, including non-compliance with the provisions of
this Regulation or the individual decision or the contract or
agreement granting the financial support in question, or if it
transpires that, without Commission approval having being
sought,
the project has been subjected to a major change
which conflicts with the nature or implementing conditions of
the project.

2.
If the time limits have not been observed or if only part
of the allocated financial assistance is justified by the progress
the Commission shall
made with implementing a project,
request
its observations within a
specified period. If the beneficiary does not give a satisfactory
answer, the Commission may cancel the remaining financial
assistance and demand repayment of sums already paid.

the beneficiary to submit

3.
Any undue payment shall be repaid to the Commission.
Interest may be added to any sums not repaid in good time.
the
The Commission shall
implementation of this paragraph.

lay down detailed rules

for

Article 11

Committee

The Commission shall be assisted by a regulatory

1.
committee.

Before carrying out an on-the-spot check,
the Commission
shall inform the beneficiary and its Member State unless there
are good reasons to suspect fraud and/or improper use.

2. Where reference is made to this Article, the regulatory
procedure set out in Article 5 of Decision 1999/468/EC shall
apply, having regard to the provisions of Article 8 thereof.

3.
For a period of five years following the last payment in
respect of any action, the beneficiary of financial assistance
shall keep available for the Commission all the supporting
documents regarding expenditure on the action.

The period laid down in Article 5(6) of Decision

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

On the basis of the results of the reports and sample
4.
checks referred to in paragraphs 1 and 2, the Commission
shall,
the conditions of
allocation of the financial assistance originally approved and
also the timetable for payments.

if necessary, adjust

the scale or

5.
The Commission shall take every other step necessary to
verify that the projects financed are carried out properly and
in compliance with the provisions of this Regulation.

Article 12

Evaluation of the third phase and continuation of LIFE

1.
Not later than 30 September 2003, the Commission shall
submit a report to the European Parliament and the Council
on the implementation of this Regulation, its contribution to
the development of Community environmental policy and the
use made of the appropriations, and shall, where appropriate,
make proposals for any adjustments to be made with a view to
continuing the action beyond the third phase.

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2.
The European Parliament and the Council, acting in
accordance with the Treaty, shall decide no later than 1 July
2004 on the implementation of the fourth phase as from 1
January 2005.

2.
References to the repealed Regulation shall be understood
as referring to this Regulation and shall be read in accordance
with the table of equivalence set out in the Annex to this
Regulation.

Article 13

Repeal of Council Regulation (EEC) No 1973/92

Article 14

Entry into force

Council Regulation (EEC) No 1973/92 shall be repealed
taken and contracts or
financial

1.
without prejudice
to decisions
agreements concluded concerning the granting of
assistance pursuant to that Regulation.

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 (cid:133)

For the European Parliament

The President

(cid:133)

For the Council

The President

(cid:133)

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ANNEX

TABLE OF EQUIVALENCE

Regulation (EEC) No 1973/92

This Regulation

Article 1

Article 2(1)(a)

Article 1

Article 3(1) and (2)(a)

Article 2(1)(b)(i) and (ii)

Article 4(1) and (2)(a)

Article 2(1)(b)(iii), first subparagraph

Article 4(1) and (2)(b)

Article 2(1)(b)(iii), first, second, third and fourth indents

(cid:151)

Article 2(2)(a)

Article 5(1) and (2)(a)

Article 2(2)(b) and (c)

(cid:151)

Article 2(3)

Article 4(a)

Article 4(b)

Article 5

Article 6

Article 3(2)(b), Article 4(2)(c), Article 5(2)(b)

Article
first
subparagraph, Article 5(3), first sentence

sentence, Article

3(3),

4(3),

first

(cid:151)

Article 7(1)

Article 7(2)

Article 7(1), first subparagraph

Article 8(1), first and second sentences

Article 7(1), second subparagraph

Article 8(1), third sentence

Article 7(1), third subparagraph

Article 8(2) second sentence

Article 7(2)

Article 7(3)

Article 8(1)

Article 8(2)

Article 8(3)

(cid:151)

(cid:151)

Article 8(3)

Article 3(3)(a), first part, and (b) and Article 4(3), second
and third subparagraphs

Article 3(3)(a),
subparagraph and Article 5(3), second sentence

part, Article 4(3),

second

fourth

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Regulation (EEC) No 1973/92

This Regulation

Article 9(1)

Article 9(2)

Article 9(3)

Article 9(4)

Article 3(4) and (8)(a) and Article 4(5) and (8)(a)

Article 5(4)

(cid:151)

Article 3(6), Article 4(9), and Article 5(6)

Article 9(5), first subparagraph

Article 3(7), first subparagraph, and (8)(a), first sentence,
Article 4(8)(a) and (10) and Article 5(7)

Article 9(5), second subparagraph, first indent

Article 3(7), second subparagraph, and Article 4(11)

Article 9(5), second subparagraph, second indent

Article 5(8)

Article 9(6)

Article 9a(1)(a)

Article 9a(1)(b)(i)

Article 3(7), second subparagraph, Article 4(11) and
Article 5(8)

Article 2

Article 3(5)(a)

Article 9a(1)(b)(ii) and (iii)

Article 4(6)

Article 9a(1)(b)(iv)

(cid:151)

Article 9a(1)(c), first, second, third and fourth indents

Article 5(5)

Article 9a(1)(c), fifth and sixth indents

Article 2, second subparagraph, (b) and (c)

Article 9a(2)

Article 9b

(cid:151)

Article 4(7)(b),(c) and (d)

Article 10(1), first indent

Article 9(5)

Article 10(1), second and third indents

(cid:151)

Article 10(2)

Article 10(3)

Article 9(2)

Article 9(3)

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Regulation (EEC) No 1973/92

This Regulation

Article 11(1)

Article 11(2)

Article 11(3)

Article 12(1)

Article 12(2)

Article 12(3)

Article 12(4)

Article 13

Article 13a

Article 14

Article 15

Article 16

Article 17

Article 10(1)

Article 10(2)

Article 10(3)

(cid:151)

Article 9(1)

Article 9(4)

(cid:151)

Article 11

Article 6

Article 12

(cid:151)

(cid:151)

Article 14

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STATEMENT OF THE COUNCIL’S REASONS

I.

INTRODUCTION

1. On 10 December 1998 the Commission submitted a proposal for a Regulation (1) based on Article
130s(1) (new Article 175(1)) of the EC Treaty, recasting Council Regulation (EC) No 1404/96
amending Regulation (EEC) No 1973/92 establishing a financial instrument for the environment
(LIFE).

2. The European Parliament delivered its opinion (2) at first reading on 14 April 1999.

Following that opinion, the Commission forwarded an amended proposal on 16 June 1999 (3).

The Economic and Social Committee delivered its opinion (4) on 26 May 1999. The Committee of
the Regions delivered its opinion on 16 September 1999 (5).

3. On 22 October 1999 the Council unanimously adopted its common position.

II. OBJECTIVE

4. The proposal for a Regulation still focuses on demonstration projects and aims, in the light of
experience gained during the first two phases of LIFE, to improve on LIFE II in particular in
respect of:

(cid:151) the instrument’s contribution to the implementation and development of environmental

legislation;

(cid:151) clarifying the fields of action eligible for funding by drawing a distinction between three

components, namely LIFE-Nature, LIFE-Environment and LIFE-Third Countries;

(cid:151) defining the projects involving third countries;

(cid:151) the dissemination and utilisation of the project results.

III. ANALYSIS OF THE COMMON POSITION

5. General remarks

In the light of the objective set out above, the Council has endeavoured to draw up an instrument
which is flexible and efficient enough to make optimum use of the resources available, channeling
them into projects which contribute effectively to the implementation of Community policy and
legislation on the environment and to sustainable development.

Guided by these considerations, the Council was able to incorporate in its common position either
verbatim,
in substance or in part most of the European Parliament amendments which the
Commission included in its amended proposal, as well as amendments 45 and 46.

(1) OJ C 15, 20.1.1999, p. 4.
(2) OJ C 219, 30.7.1999, p. 265.
(3) OJ C (cid:133)
(4) OJ C 209, 22.7.1999, p. 14.
(5) OJ C (cid:133)

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6. Specific remarks

(Unless otherwise indicated, the references below are to the text of the common position. A
consistent effort has been made to match the wording of the recitals with that of the Articles
while avoiding duplications, in particular between recitals.)

The main amendments made by the Council to the Commission’s amended proposal are as
follows:

Article 1

The wording has been slightly amended to make it apparent that (cid:145)implementation, updating and
development(cid:146) applies to environment policy and environmental legislation alike.

Article 2

The Council considered it judicious to specify when priority may be given to projects based on a
multinational approach in order to prevent
that priority prevailing over the other, specific
priorities, and consequently adopted a criterion of feasibility and costs. The Council did not think
it appropriate in this Article, which defines general criteria, to itemise the various levels of
cooperation (amendments 17 and 28), given that the (cid:145)cooperation(cid:146) dimension was already set out
in several provisions.

Article 3

(cid:151) p a r a g r a p h 3(b): the bird species covered by projects eligible for 75 % financial support have
been specified (those considered a priority by the committee set up under the Wild Birds
Directive)

(cid:151) p a r a g r a p h 4: a transitional provision has been introduced for the submission and selection

of projects for the year 2000. The same applies to A r t i c l e s 4 ( 5 ) a n d 5 ( 4 )

(cid:151) p a r a g r a p h 5(a): the tenth recital draws attention to migration routes and buffer zones for
projects contributing to the implementation of Natura 2000, in accordance with one of the
provisions of Decision No 2179/98/EC of the European Parliament and of the Council on the
review of the Vth action programme (cid:145)Towards Sustainability(cid:146)

(cid:151) p a r a g r a p h 5(b): references to the Annexes to the Wild Birds Directive and to the Berne

Convention resolutions have been clarified

(cid:151) p a r a g r a p h 8: the wording has been modified to make it clear that the accompanying
measures relating to cooperation or the exchange of experience are subject to consultation of
the relevant committee and that the Member States may submit proposals for such measures.

Article 4

(cid:151) p a r a g r a p h 1: has been rewritten to clearly state the specific objective of LIFE-Environment

and to distinguish it from the categories of project set out in p a r a g r a p h 2

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(cid:151) p a r a g r a p h 2 ( a ) , f i r s t i n d e n t : given the current situation with regard to environmental
problems related to land-use planning, the Council preferred not to give priority to urban
areas but, at most, to put them on an equal footing with coastal areas ((cid:145)(cid:133) including in urban
and coastal areas(cid:146))

(cid:151) p a r a g r a p h 2 (b): these projects should also target Community legislation

(cid:151) p a r a g r a p h 4: as the guidelines are so important for preparing and selecting projects, an
opinion of the committee provided for in Article 11 does not suffice and implementation of
the full committee procedure is desirable

(cid:151) p a r a g r a p h 6 (g): since the resources available for LIFE are necessarily limited, it seems wise

to retain an environmental cost-benefit criterion as applied in LIFE II

(cid:151) p a r a g r a p h 6 (h):

the wording proposed by the Commission in paragraph 6(g) of

its
amended proposal tends to mix sustainability and job creation and to make job creation one
of the project selection criteria, although LIFE is supposed to serve environmental purposes
and instruments specifically concerning employment already exist elsewhere. The Council
therefore prefers wording closer to that proposed by the Parliament in its Amendment 45,
drawing attention to the employment implications of the project proposals without making
them into a selection criterion (see also r e c i t a l 13)

(cid:151) r e c i t a l 12: in keeping with several provisions in Decision No 2179/98/EC of the European
Parliament and of the Council, this recital draws attention to the priority to be given to small
and medium-sized enterprises

(cid:151) p a r a g r a p h 8: the wording has been changed to bring out the fact that the preparatory
projects and the accompanying measures concerning the exchange of experience are subject to
consultation of the relevant committee and that Member States may submit proposals for such
preparatory projects.

Article 5

(cid:151) p a r a g r a p h 1: the wording has been amended to ensure that Cyprus is unequivocally
covered and that Article 6 is not duplicated (see also the second sentence of A r t i c l e 6 (7));

(cid:151) p a r a g r a p h 7: as special powers are necessary to assess projects concerning nature
the committee set up under the Habitats Directive has been

protection, consultation of
provided for.

Article 8

(cid:151) p a r a g r a p h 1: the Council, like the Parliament (Amendment 46), has mentioned a financial
reference amount, as was the case for LIFE II,
the
Interinstitutional Agreement of 6 May 1999 (see also r e c i t a l 21). The Council nevertheless
thought that it was not possible to exceed the amount of EUR 613 million proposed by the
Commission given the limits of the financial perspective;

in accordance with the terms of

(cid:151) p a r a g r a p h 2: the Council has not taken up Amendment 34 concerning the funding of
since the second subparagraph of

accompanying measures, which seems
paragraph 3 already includes them in the overall available appropriations.

superfluous

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Article 9

Reporting obligations,
in particular vis-(cid:224)-vis the Member State of the beneficiary, have been
clarified. The Council has not adopted the second part of Amendment 35 concerning indicators
for (cid:145)possible problems(cid:146) as it was not clear what form such indicators could take in practice and
since the Commission has complete freedom to include any relevant indicators in the decision
approving the project or in the contract or agreement concluded with the beneficiary.

Article 11

The Council has retained the regulatory committee, already in place under LIFE II, proposed by
the Commission; its procedure has been brought into line with Article 5 of the Council Decision
of June 1999 on committee procedure, and the period allowed for the Council to act has been
extended to three months.

Article 12

Without affecting the possible launch of the fourth phase of LIFE, the deadline for submitting the
the
Commission report
Parliament and of the Council have been brought forward so as to facilitate the preparation and
selection of projects during the transitional year between the third and fourth phases.

to the Parliament and to the Council and that

for the decision of