Common Position (EC) No 23/2000 of 28 February 2000 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 on development cooperation with South Africa
Date: 2000-02-28
Institutions: Council of the European Union
Subjects: EU programme, South Africa, cooperation policy, development aid, financial cooperation, technical cooperation

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COMMON POSITION (EC) No 23/2000

adopted by the Council on 28 February 2000

with a view to adopting Regulation (EC) No .../2000 of the European Parliament and of the
Council of ... on development cooperation with South Africa

(2000/C 128/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 179 thereof,

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

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (2),

Whereas:

(1)

Since the elections of April 1994 and the establishment
of a democratic Government, the Community has turned
towards a strategy of support for the policies and reforms
undertaken by the South African authorities.

(2) The Council adopted Regulation (EC) No 2259/96 of
22 November 1996 on development cooperation with
South Africa (3); that Regulation expired on 31 December
1999.

(3) The Agreement on trade, development and cooperation
between the European Community and the Republic of
South Africa stipulates in Chapter VII thereof that finan-
cial assistance in the form of grants are to be covered
by a special
facility established under the
Community budget, that the Community declares its
willingness to maintain its financial cooperation with
South Africa at a substantial level, and that it will take the
necessary decisions in this respect on the basis of a
proposal by the Commission.

financial

(4) The abovementioned Agreement contains in Chapter V
thereof provisions on aims, priorities, methods and
implementation of development cooperation with South
Africa.

(5)

In the light of the implementation of Council Regulation
(EC) No 2259/96 and of Special Report No 7/98 of the

Court of Auditors in respect of the European Community
development aid programme regarding South Africa
(1986 to 1996) development cooperation with South
Africa should be continued subject to adaptations, in
particular as regards simplification of procedures, greater
focus
decentralised
priorities
decision-making.

sectoral

and

on

(6) Assistance provided under this Regulation should be
implemented in coherence with actions of other donors,
including multilateral institutions.

(7) The measures necessary for the implementation of this
Regulation should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of
implementing powers
conferred on the Commission (4).

(8) This Regulation lays down, for the entire duration of
the programme, a financial framework constituting the
principal point of reference, within the meaning of point
33 of
the Interinstitutional Agreement between the
European Parliament, the Council and the Commission
of 6 May 1999 on budgetary discipline and improvement
of the budgetary procedure (5) for the budgetary authority
during the annual budgetary procedure.

(9) Council Regulation (EC, Euratom) No 2988/95 of
18 December 1995 on the protection of the European
Communities’ financial interests (6) establishes a common
legal framework for all the fields of the Communities’
own resources and expenditure.

(10) 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 Communities’ financial
interest
against fraud and other irregularities (7) applies to all areas
of the Communities’ activity without prejudice to the
provisions of the Community rules specific to the differ-
ent policy areas,

(1) OJ C ...
(2) Opinion of the European Parliament of 5 May 1999 (OJ C 279,
1.10.1999, p. 192), Council common position of 28 February
2000 and decision of the European Parliament of ... (not yet
published in the Official Journal).

(3) OJ L 306, 28.11.1996, p. 5.

(4) OJ L 184, 17.7.1999, p. 23.
(5) OJ C 172, 18.6.1999, p. 1.
(6) OJ L 312, 23.12.1995, p. 1.
(7) OJ L 292, 15.11.1996, p. 2.

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HAVE ADOPTED THIS REGULATION:

(b) improvement of living conditions and delivery of basic

social services;

Article 1

Aims

(c) support to democratisation,

the protection of human
rights, sound public management, the strengthening of
local governments and the involvement of civil society in
the development process.

The Community shall
financial and technical
implement
cooperation with South Africa to support the policies and
reforms carried out by the South African authorities in a
context of policy dialogue and partnership.

3.
Dialogue and partnership between public authorities and
non-governmental development partners and actors will be
promoted.

The aim of the Community cooperation programme, entitled
the ‘European programme for reconstruction and development
in South Africa’
(EPRD), shall be to contribute to South
Africa’s harmonious and sustainable economic and social
development, through programmes and measures designed to
reduce poverty and encourage economic growth which ben-
efits the poor, to its continued integration into the world
economy, and to consolidate foundations laid for a democratic
society and a State governed by the rule of law in which
human rights and fundamental freedoms are fully respected.

This will be achieved through support for international targets
and policies for sustainable development based on United
Nations’ conventions and resolutions, thereby contributing to
the target of reducing by at least one half the proportion of
people living in extreme poverty by 2015.

Article 2

Areas of cooperation

1.
Programmes shall focus on the fight against poverty,
take into account the needs of the previously disadvantaged
communities and integrate gender and environmental dimen-
sions of development. In all these programmes special atten-
tion shall be paid to the strengthening of
institutional
capacities.

Development cooperation to be carried out under this

2.
Regulation will focus mainly on:

(a) support to policies, instruments and programmes aiming
at the continued integration of the South African economy
into the world economy and trade,
for employment
creation, development of
the private sector, regional
cooperation and integration. In this latter context, special
to the
attention will be given to providing support
adjustment efforts occasioned in the region by the estab-
lishment of the free-trade area under the Trade, Develop-
ment and Cooperation Agreement, especially in the South-
ern African Customs Union. Promotion of mutual general
interest cooperation between the European Union and
South African businesses may also be considered;

Article 3

Eligibility of cooperation partners

Cooperation partners eligible for financial assistance under
this Regulation shall be national, provincial and local au-
thorities and public bodies, non-governmental organisations
and community-based organisations,
regional and inter-
national organisations,
institutions and public or private
operators. Any other body may be eligible if so designated by
both parties.

Article 4

Means, expenses, information on the programme and
coordination

1.
The means that may be deployed under the cooperation
operations referred to in Article 2 shall include in particular
studies, technical assistance, training or other services, supplies
and works, and also evaluation and monitoring audits and
missions.

Community financing in local or foreign currency,
2.
depending on the needs and nature of the operation, may
cover:

(a) government budget expenditures to support reforms and
policy implementation in the priority sectors identified
through a policy dialogue, using the most appropriate
instruments including the form of direct targeted budget
support in specific sectors where appropriate conditions
(e.g. accountability for, and transparency of, the govern-
ment budget, sound procurement procedures) are met;

(b) investment and equipment;

(c)

in duly justified cases, and in particular where a programme
is implemented by a non-government partner, taking into
account the fact
the programme has to aim as
much as possible at long-term sustainability, recurrent
expenditure (including administrative, maintenance and
operating costs).

that

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Part of the financing may be channelled towards targeted final
beneficiaries (e.g. emerging entrepreneurs) through specialised
financial institutions, including the European Investment Bank
(EIB), in the form of risk capital or other instruments. The
resources made available under this Regulation shall not be
used in a manner that will permit unfair competition.

3.
A financial contribution from the partners referred to in
Article 3 shall in principle be required for each cooperation
operation. That contribution will be requested in accordance
with the possibilities of the partners concerned and depending
on the nature of each operation. It shall be sought in particular
in cases where a project is designed as a start-up for an
open-ended activity, in order to ensure the sustainability of
such projects after Community funding has ceased. It may be
In specific cases where the partner is either a
in kind.
non-governmental organisation or a community-based organ-
isation, the contribution may not be required.

4.
The Commission may take any appropriate step to
ensure that the Community character of aid provided under
this Regulation is made known.

5.
Opportunities may be sought for potential co-financing
and parallel financing with other donors, particularly the
Member States.

6.
In order to achieve the objectives of coherence and
complementarity referred to in the Treaty and with the aim of
guaranteeing optimal effectiveness of the aid, the Commission
will take all necessary coordination measures, notably:

(a) the establishment of a system for the systematic exchange
of information on actions financed or planned to be
financed by the Community, the Member States and the
EIB;

(b) on-the-spot coordination of these actions by means of
regular meetings and exchange of information between the
representatives of the Commission and the Member States
in the beneficiary country.

7.
The Commission, in liaison with the Member States,
will seek to take any steps necessary to ensure adequate
coordination with other donors concerned and to encourage
an increasingly active role of the beneficiary country in the
aid-coordination process.

Article 5

Form of financial support

Article 6

Programming

Triennial indicative programming shall be carried out in
1.
the context of close contacts with the South African Govern-
ment and taking account of the results of the coordination
referred to in Article 4(6) an (7). The indicative programming
process will fully respect the principle of recipient-led pro-
gramming.

2.
In order to prepare for each programming exercise, in
the context of increased coordination with the Member States,
including on-the-spot,
the Commission shall draw up a
country strategy paper in dialogue with the South African
Government. This country strategy paper shall
take into
account the results of the most recent overall evaluation of
operations financed under Regulation (EC) No 2259/96 and
under this Regulation and of other regular evaluations of
operations. It will be linked to a problem-oriented analysis,
and integrate cross-cutting issues such as poverty reduction,
gender equality, environment and sustainability. A draft of the
triennial indicative programme will be annexed to the country
strategy paper. A limited number of sectors of cooperation
based on the areas identified in Article 2 of this Regulation will
be selected. For these sectors, modalities and accompanying
measures will be set out. As far as possible performance
indicators will be developed in order to facilitate the implemen-
tation of the objectives and its evaluation of impact.

The country strategy paper and the draft triennial indicative
programme will be examined, by the committee referred to in
Article 8(1), hereafter referred to as the ‘committee’.

The committee shall give its opinion in accordance with the
procedure in Article 8(2).

3.
The triennial indicative programme will be negotiated
and signed by the Commission and the South African Govern-
ment. The final result of the negotiations will be sent to the
If requested by one or more
committee for information.
committee members this document will be discussed by the
committee.

The committee shall review once a year the functioning,
4.
results and continued relevance of the country strategy paper
and the triennial indicative programme. If evaluations or other
relevant developments so indicate, the committee may invite
the Commission to negotiate with the South African Govern-
ment amendments to the triennial indicative programme.

Financial support under this Regulation shall take the form of
grants.

The committee shall once a year, on the basis of a
5.
presentation by the Commission, discuss the general guidelines
for the operations to be carried out in the year ahead.

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Article 7

Procedures

Article 8

Committee

1.
The Commission shall be responsible for appraising,
taking decisions on and managing operations conducted under
this Regulation, in accordance with the budgetary and other
procedures in force, notably those laid down in the Financial
Regulation applicable to the general budget of the European
Union.

2.
In the specific case of contribution by the EPRD to
regional programmes in the Southern African Development
Community area financed from the European Development
Fund,
this contribution may be utilised following Lomé
Convention modalities, provided that the provisions of the
Financial Regulation applicable to the general budget of the
European Union are respected.

In order to ensure transparency and achievement of the
3.
objectives referred to in Article 4(6), the Commission shall
forward project information sheets to the Member States and
their local representatives for all projects as soon as the
decision to appraise them has been taken. The Commission
shall subsequently update the project information sheets and
forward them to the Member States.

All financing agreements or contracts concluded under
4.
this Regulation shall provide for on-the-spot checks by the
Commission and the Court of Auditors in accordance with the
usual arrangements established by the Commission pursuant
to the rules in force, in particular those laid down in the
Financial Regulations applicable to the general budget of the
European Union.

The measures taken by the Commission in accordance with
the procedure set out in Article 8 shall provide for adequate
protection of the financial
interests of the Community in
conformity with Regulation (EC, Euratom) No 2988/95.

5. Where operations give rise to financing agreements
between the Community and South Africa, such agreements
shall stipulate that taxes, duties and charges shall not be borne
by the Community.

6.
Participation in invitations to tender and contracts shall
be open on equal terms to all natural and legal persons in the
Member States, South Africa and the other ACP States.
Participation may be extended to include other countries in
duly substantiated cases and in order to ensure the best
cost-effectiveness ratio.

7.
Supplies shall originate in the Member States, South
Africa or the other ACP States. In duly substantiated excep-
tional cases, they may originate in other countries.

8.
Except as otherwise indicated in this Regulation, con-
tracts shall be signed by the South African Government. In
addition, if a contract is not covered by a financing agreement,
the contract shall be concluded by the Commission.

1.
The Commission shall be assisted as appropriate by the
geographically-determined committee competent for develop-
ment.

2. Where reference is made to this paragraph, Articles 4
and 7 of Council Decision 1999/468/EC shall apply, having
regard to Article 8 thereof.

The period referred to in Article 4(3) of Decision 1999/468/EC
shall be set at one month.

3.

The committee shall adopt its Rules of Procedure.

4.
In the case of programmes approved by the committee
and financed through tranches relating to more than one
budget year, the Commission will take yearly subsequent
financing decisions, not exceeding the determined maximum
expenditure for the approved programme and in the limit of
financial resources made available by the budgetary authority,
without further communication to the committee.

5.
The procedure defined in this Article shall apply to
financing decisions which the Commission intends to take
concerning projects and programmes of a value of over EUR
3 million. It shall also apply to any adjustment of such an
operation involving an increase of more than 20 % in the
amount initially agreed, and proposals arising for substantive
for which a
amendments in the execution of a project
commitment has already been made.

The Commission shall inform the committee succinctly
6.
of financing decisions it intends to take concerning projects
and programmes of a value up to EUR 3 million. Such
information shall be given at least one week before the decision
is taken.

Article 9

Monitoring and evaluation

After each financial year the Commission shall submit
1.
an annual report on implementation of this Regulation to the
European Parliament and the Council. The report shall set out
the budget turnout with regard to commitments and payments
and the projects and programmes financed in the course of
the year. It shall contain statistics on contracts awarded for
implementing projects and programmes.

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In addition the Commission shall monitor progress against
each operation’s objectives in terms of outputs and outcomes,
using objectively verifiable indicators.

2.
The Commission shall regularly evaluate operations
financed by the Community to determine whether those
operations’ objectives have been reached and to establish
guidelines for improving the effectiveness of future operations.
The Commission shall submit to the committee referred to in
Article 8(1) a summary of the evaluations made. The evaluation
reports shall be available to any Member State, to the European
Parliament and to other interested parties.

3.
The Commission shall submit to the European Parlia-
ment and the Council a mid-term review by 31 October 2003
at the latest and an overall evaluation of the programme prior
to the expiry of this Regulation.

The mid-term review will bear on results of the first triennial
programme (2000 to 2002) implemented under this Regu-
lation. If necessary, the Commission will propose amendments
to this Regulation, taking into account the implications for
South Africa of the new ACP/EU arrangements.

The overall evaluation will make suggestions for the continu-
ation of development cooperation with South Africa.

Article 10

Financial reference amount

1.

The financial framework for the implementation of this

Regulation for the period from 2000 to 2006 is hereby set at
EUR 787,5 million.

The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial perspective.

2.
Each year the budgetary description will fix a ceiling
within the annual appropriation for technical assistance con-
tract to be concluded by the Commission for the carrying out
of joint operations for the mutual benefit of the Community
and of the beneficiary.

Article 11

Duration

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

It shall expire on 31 December 2006.

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

Done at ...

For the European Parliament

For the Council

The President

The President

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STATEMENT OF THE COUNCIL’S REASONS

I.

INTRODUCTION

1. On 15 March 1999, the Commission submitted to the Council a proposal for a regulation, based
on Article 179 of the EC Treaty (ex Article 130w), laying down the objectives and procedures for
activities under the current budget heading B7-3 2 0 0 ‘European programme for reconstruction
and development (EPRD)’.

2. The European Parliament delivered its opinion at first reading on 5 May 1999.

3. On 14 July 1999, the Commission transmitted a modified proposal to the Council (COM(1999)

335 final).

4.

In the light of the European Parliament’s opinion and the Commission’s position on it, the
Council Working Group has agreed upon a draft common position taking into account certain
changes pursuant to the entry into force of the Amsterdam Treaty.

5. On 28 February 2000 the Council adopted its common position in accordance with Article 251

of the EC Treaty.

II. PURPOSE OF THE PROPOSAL

The objective of this proposal is to ensure the continuation of financing activities as provided for in
Council Regulation (EC) No 2259/96 after its expiry on 31 December 1999. The budget line of the
European Programme for reconstruction and development in South Africa is intended to finance
programmes aimed at contributing towards sustainable development, consolidating the foundations
for a democratic society and the rule of law as well as improving the situation of the most
disadvantaged groups in South African society.
It further defines aims and sectors of future
intervention in the light of the Trade, Development and Cooperation Agreement (TDCA) with the
European Union, signed in July 1999.

III. ANALYSIS OF THE COMMON POSITION

1.

General remarks

1.1. Although the Council followed largely the approach and objectives of the Commission and
supported several amendments proposed by the Parliament, it considered it necessary to make
a number of changes to both the substance and the wording of some articles in the proposed
regulation.

When drawing up the common position, the Council tried to respect the following principles
and guidelines:

— render the wording of the Regulation more precise and thus improve the legal clarity of
the text (according to the interinstitutional Agreement of 22 December 1998 on common
guidelines for the quality of drafting of Community legislation)(1),

(1) OJ C 73, 17.3.1999, p. 1.

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— remove quotes from legal acts or policy documents which were considered to be redundant
and to unnecessarily lengthen the text (in particular concerning the Financial Regulation),

— clarify the scope of certain provisions,

in particular those relating to programming
(Article 6), and avoid formulations which repeated ideas expressed elsewhere in the
Regulation,

— modify procedural or administrative proposals that were not in accordance with standard
formulations and practices (either of interinstitutional agreements or of similar regulations);

1.2.

In its common position the Council has approved the essence and wording of the Commission’s
proposal with the exceptions referred to under point 2.2 (specific comments). In Article 8
paragraphs 4 to 6 (Comitology procedure) of the draft common position, the Council thought
desirable, for the objective of better coherence, to restructure and reformulate some of the
paragraphs of the Commission’s proposal.

2.

Specific comments

2.1.

Legal basis

The legal basis put forward by the Commission in its proposal, namely Article 179 of the EC
Treaty (ex Article 130w), is considered by the Council in its common position as being
appropriate in view of the aim and contents of the proposal.

2.2. Amendments made by the Council to the Commission proposal

2.2.1. Comitology (Article 8)

The Council has decided on the management committee procedure as set out in the Council
decision of 28 June 1999 laying down the procedure for the exercise of implementing powers
conferred on the Commission. The corresponding recital on Comitology (No 10) has been
deleted.

The Council considers that one committee procedure (instead of the two different foreseen in
Article 8 paragraphs 2 and 3 of the Commission’s proposal) will ensure maximum coordination
with Member States activities and thus contribute to necessary complementarity and contribute
to a simplified structure. To this end, the Council modified the threshold for financing decisions
to be submitted to the Committee from EUR 5 million to EUR 3 million. The Council’s
objective is to emphasis more discussions on the strategy and programming aspects than on
individual programmes and projects.

2.2.2. Financial envelope (Article 10)

Pursuant to the Declaration by the European Parliament, the Council and the Commission of
6 March 1995(1) on the incorporation of financial provisions into legislative acts, these acts
shall contain a provision in which the legislative authority shall
lay down the financial
framework for the multiannual programme adopted under the codecision procedure. As a
consequence of the seven-year programme, the financial reference amount has been fixed at
EUR 787,5 million, 10 % less than the Commission’s proposal to take account of the July
1999 Decision of the Budget Council on Category 4 expenditures. Accordingly, a correspond-
ing recital (9) has been inserted (replacing the previous recital 9).

(1) OJ C 102, 4.4.1996, p. 4.

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2.3.

European Parliament amendments

2.3.1. Parliament amendments adopted by the Council

From the six amendments proposed by the European Parliament, the Council has been able to
accept four either completely (Amendment 2 (first part), 3, 4 (first part)), partly or in substance
(Amendment 2 (second part) and 6).

2.3.2. Parliament amendments not adopted by the Council

— The Council, together with the Commission, could not accept Amendment 1 because it

was considered to change priorities and the balance of activities.

— The second part of Amendment 4 was not retained (Article 4(6)(b)) because the Council
and the Commission were of the opinion that coordination on-the-spot did not pose a
problem so far.

— Amendment 5 (Article 8(6a)(new)) could not be followed for reasons that publishing
motivations and opinions could be detrimental to parties concerned and might put at risk
other objectives.

IV. CONCLUSIONS

The Council considers that its common position constitutes a balanced text to ensure the continuation,
after its expiry on 31 December 1999, of activities financed under Council Regulation (EC)
No 2259/96 of November 1996 on development cooperation with South Africa. The programmes
financed by the EPRD follow the priorities defined in the framework Agreement on trade, development
and cooperation between the EU and South Africa.