2000/140/EC: Council Decision of 14 February 2000 providing exceptional Community financial assistance to Kosovo
Date: 2000-02-14
Institutions: Council of the European Union
Subjects: EU aid, Kosovo, financial aid

L 47/28

EN

Official Journal of the European Communities

19. 2. 2000

COUNCIL DECISION

of 14 February 2000

providing exceptional Community financial assistance to Kosovo

(2000/140/EC)

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,

be necessary for Kosovo to obtain external support to
establish a sound market economy and a civil adminis-
tration; it is estimated that exceptional external financial
assistance of some EUR 115 million would be needed
until the end of 2000.

Having regard to the opinion of the European Parliament (1),

assistance.

(10) UNMIK has presented a request for exceptional financial

Whereas:

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

The Commission has consulted the Economic and Finan-
cial Committee before submitting its proposal.

The Security Council of the United Nations adopted
Resolution 1244 (1999) on 10 June 1999 aiming to
promote the establishment, pending a final settlement,
of substantial autonomy and self-government in Kosovo
within the Federal Republic of Yugoslavia.

The International Community, based on the Resolution
1244 (1999), has set up an international security pres-
ence (KFOR) and an interim civil administration — the
Interim Administration Mission in
United Nations
Kosovo (UNMIK).

UNMIK aims at establishing administrative structures
under which the people of Kosovo can enjoy substantial
autonomy and to this end has been vested with all
legislative and executive powers, including the adminis-
tration of the judiciary.

UNMIK is taking steps to involve the main political
parties and ethnic communities of Kosovo and its activi-
ties.

UNMIK consists of four components (‘Pillars’) and the
European Union has taken the lead role (2) for the fourth
Pillar responsible for economic reconstruction.

UNMIK, and particularly its fourth Pillar, has made
significant progress in establishing an economic frame-
work and aims at continuing and enhancing this
strategy.

UNMIK is
Authority
procedures to manage the Kosovo budget.

currently establishing a Central
transparent
providing

and

Fiscal
accountable

Given the present unfavourable circumstances and on
the basis of estimates from UNMIK presented in agree-
ment with the International Monetary Fund (IMF), it will

(1) Opinion delivered on 3 February 2000 (not yet published in the

Official Journal).

(2) International civil presence in Kosovo: Report of

the Secretary-
General pursuant to paragraph 10 of Security Council Resolution
1244 (1999), S/1999/672, 12 June 1999, II.5

(11)

(12)

(13)

(14)

The provision of external budgetary support,
shared among donors,
residual
prepared for Kosovo by UNMIK.

fairly
is essential to help cover the
financing needs identified under the budget

Kosovo is not in a position to borrow either domesti-
cally or abroad and is not eligible for membership of the
Institutions and may therefore
International Financial
not
support
benefit
programmes.

conventional

from their

Kosovo is at a low level of development and its GDP per
capita is estimated to be one of the lowest in Europe.

Financial assistance from the Community in the form of
straight grants to be made available to UNMIK in
support of
the people of Kosovo is an appropriate
measure to help ease Kosovo's financial constraints in
the current exceptionally difficult circumstances.

(15) Without prejudice to the powers of

the budgetary
authority, the financial assistance will be part of the aid
package foreseen for Kosovo in 2000, and therefore
to the funds being available in the general
subject
budget.

(16)

(17)

The exceptional financial assistance should be managed
by the European Commission.

The Treaty does not provide, for the adoption of this
Decision, powers other than those of Article 308,

HAS DECIDED AS FOLLOWS:

Article 1

The Community shall make available to UNMIK excep-
1.
tional financial assistance in the form of straight grants of up
to EUR 35 million, with a view to alleviating the financial
situation in Kosovo, facilitating the establishment of essential
administrative functions and supporting the development of a
sound economic framework.

19. 2. 2000

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Official Journal of the European Communities

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This assistance shall be managed by the Commission in
2.
close consultation with the Economic and Financial Committee
and in a manner consistent with agreements or understandings
reached between the IMF and UNMIK or any other internation-
ally recognised authorities of Kosovo.

Article 2

1.
The Commission is empowered to agree with UNMIK,
after consultation with the Economic and Financial Committee,
the economic policy conditions attached to this assistance.
These conditions shall be consistent with any agreement
referred to in Article 1(2).

The Commission shall verify at

2.
in
consultation with the Economic and Financial Committee and
in liaison with the IMF and the World Bank, that economic
policies in Kosovo respect the objectives and economic policy
conditions of this assistance.

intervals,

regular

The second tranche will be released after consultation of the
Economic and Financial Committee.

2.
The funds shall be made available to UNMIK through the
Central Fiscal Authority exclusively in support of the Kosovo
budgetary needs.

Article 4

The Commission shall address to the European Parliament and
to the Council a report by the end of 2000, which will include
an evaluation on the implementation of this Decision.

Done at Brussels, 14 February 2000.

Article 3

1.
The assistance shall be made available to UNMIK in at
least two instalments is on the basis of a successful completion
of the economic policy conditions referred to in Article 2(1).

For the Council

The President

J. GAMA