Proposal for a Council Decision on the position to be taken by the Community within the Association Council established by the Europe Agreement signed on 1 February 1994 between the European Communities and their Member States, of the one part, and the Romania, of the other part, with regard to the extension for a further period of five years in accordance with the provisions of Article 64 4(a) of the Europe Agreement with Romania
Date: 1999-11-22
Institutions: European Commission
Subjects: Association Council (EU), Romania, State aid

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 22.11.1999
COM(1999) 605 final

1999/0242 (ACC)

Proposal for a

COUNCIL DECISION

on the position to be taken by the Community within the Association Council
established by the Europe Agreement signed on 1 February 1994 between the
European Communities and their Member States, of the one part, and the

Romania, of the other part
 with regard to the extension for a further period of
five years in accordance with the provisions of Article 64 § 4(a) of the Europe
Agreement with Romania

,

(presented by the Commission)

EXPLANATORY MEMORANDUM

Extension for a further five year period in accordance with the provision of
Article 64 (4)(a) of the Europe Agreement with Romania

1.

2.

3.

4.

5.

6.

7.

Article 64 (4) (a) of the Europe Agreement with Romania provide that, for the
purpose of applying certain provisions relating  to  public  aid,  during  the  first
five years after the entry into force of the Agreement any public aid granted by
Romania shall be assessed taking into account the fact that Romania shall be
regarded as an area identical to those areas of the Community eligible for state
aid  pursuant  Article  87(3)  (a)  of  the  Treaty  establishing  the  European
Economic Community.

The period of five years referred above expired on 31 December 1997.

In  accordance  with  the  last  sentence  of  Article  64  (4)(a)  of  the  Europe
Agreement, the  Association  Council  shall,  taking  into  account  the  economic
situation  of  Romania,  decide  whether  that  period  should  be  extended  for  a
further five years.

Romania has requested the extension of the above-mentioned provision.

The main criterion for considering an area eligible for regional aid pursuant to
Article 87(3)(a) provisions is that GDP per capita should be  less than 75% of
the average GDP of the EU-15, measured in PPS terms1.

The  Commission  has  examined  the  requests  on  the  basis  of  the  figures  and
information  available  for  Romania.  The  data  shows  that  in  the  case  of
Romania GDP/capita measured in Purchasing Power Standards (PPS) reaches
31 % of the Community average in 1997.

Based  on  the  above,  the  Commission  believes  that  the  figures  available
provide  sufficient  grounds  for  granting  an  extension  to  Romania  under  the
condition  of  receiving  regular  information  on  the  economic  situation  of
Romania relevant for the assessment of the application of Article 64 (4) (a), in
particular regarding regional GDP per capita figures in PPS terms.

It  is  also  necessary,  in  order  to  take  due  account  of  the  differing  levels  of
economic  development,  to  modulate  the  maximum  aid  intensities  within  the
different regions of the countries  concerned.  To this effect, differentiation  of
aid  intensities  will  have  to  be  set  up  jointly  by  the  Commission  and  the
Romanian monitoring authority on the basis of regionalised data in accordance
with  the  provisions  laid  down  in  the  Guidelines  for  national  regional  aid2
applicable within the Community.

1 

2 

OJ C74 of 10.3.1998, p.9

OJ C74 of 10.3.1998

2

                                               
8.

9.

This extension will not be applicable to products covered by Protocol 2 of the
Europe  Agreements  with  Romania,  which  will  be  the  object  of  a  separate
examination and procedure.

The Commission therefore requests the Council to adopt the attached proposal
for a Council Decision.

3

1999/0242 (ACC)

Proposal for a

COUNCIL DECISION

on the position to be taken by the Community within the Association Council
established by the Europe Agreement signed on 1 February 1994 between the
European Communities and their Member States, of the one part, and the

Romania, of the other part
 with regard to the extension for a further period of
five years in accordance with the provisions of Article 64 § 4(a) of the Europe
Agreement with Romania

,

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular
Article 133 in conjunction with the first sentence of Article 300(2) thereof,

Having regard to the proposal of the Commission of the European Communities,

(1)

(2)

Whereas the European Community and their Member States signed the Europe
Agreement with the Romania on 1 February 1994;

Whereas  Article  64(4)(a)  of  the  Europe  Agreement  lays  down  that  the
Association  Council  shall,  taking  into  account  the  economic  situation  of
Romania, decide  whether  the  period  within  which  any  public  aid  granted  by
Romania shall be assessed taking into account the fact that Romania shall  be
regarded  as  an  area  identical  to  those  areas  of  the  Community  described  in
Article 87(3)(a) of the Treaty establishing the European Economic Community
should be extended for a further five years;

HAS DECIDED AS FOLLOWS:

The position to be taken by the Community within the Association Council
established by the Europe Agreement between the European Communities and their
Member States, of the one part, and the Romania, of the other part,
with regard to the
extension for a further five years in accordance with Article 64 § 4(a) shall be based
on the draft decision of the Association Council annexed to this Decision.

Done at Brussels,

For the Council
The President

4

 
 
 
ANNEX

ASSOCIATION

BETWEEN THE

EUROPEAN UNION

AND ROMANIA

__________

- The Association Council -

DECISION No …/99 OF THE ASSOCIATION COUNCIL

BETWEEN THE EUROPEAN COMMUNITIES

AND THEIR MEMBER STATES, OF THE ONE PART,

AND ROMANIA, OF THE OTHER PART,

of

extending by five years the period within which any public aid
granted by Romania will be assessed taking into account
the fact that Romania is to be regarded as an area identical
to those areas of the Community described in Article 87(3)(a) of the Treaty
establishing the European Community

THE ASSOCIATION COUNCIL,

Having  regard  to  the  Europe  Agreement  establishing  an  association  between  the
European Communities and their Member States, of the one part, and Romania, of the
other part3 and in particular Article 64(4)(a) thereof,

Whereas  Article  64(4)(a)  of  the  Europe  Agreement  lays  down  that  the  Association
Council shall, taking into account the economic situation of Romania, decide whether
the period within which any public aid granted by Romania shall  be assessed  taking
into account the fact that Romania shall be regarded as an area identical to those areas
of  the  Community  described  in  Article  87(3)(a)  of  the  Treaty  establishing  the
European Community should be extended for a further period of five years;

Whereas the GDP/capita of Romania measured in Purchase Power Standards reached
31% of the Community average in 1997 it is appropriate to make such an extension,

HAS DECIDED AS FOLLOWS:

3 

OJ L 357, 31.12.1994, p. 2

5

                                               
Article 1

The period within which any public aid granted by Romania shall be assessed, taking
into account the fact that Romania shall be regarded as an area identical to those areas
of  the  Community  described  in  Article  87(3)(a)  of  the  Treaty  establishing  the
European Community, shall be extended for a further period of five years.

Article 2

Within  six  months  from  the  date  of  adoption  of  this  decision,  the  European
Commission and the national monitoring authority shall jointly evaluate, on the basis
of regionalised data delivered  by  Eurostat, the  maximum  aid  intensities  for  national
regional  aid  in  accordance  with  the  provisions  laid  down  in  the  Community
Guidelines for national regional aid4. Thereafter, the joint proposal shall be submitted
to the Association Committee which shall establish a decision to this effect.

Article 3

This Decision shall enter into force on the day of its adoption. It shall apply as from 1
January 1998.

Done at Brussels,

For the Association Council

The President

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OJ C74 of 10.3.1998

6