Council Regulation (EC) No 555/2000 of 13 March 2000 on the implementation of operations in the framework of the pre-accession strategy for the Republic of Cyprus and the Republic of Malta
Date: 2000-03-13
Institutions: Council of the European Union
Subjects: Cyprus, Malta, accession to the European Union, cooperation policy

16.3.2000

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Official Journal of the European Communities

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COUNCIL REGULATION (EC) No 555/2000

of 13 March 2000

on the implementation of operations in the framework of the pre-accession strategy for the
Republic of Cyprus and the Republic of Malta

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 (1),

Whereas:

The Councils of March and April 1995 decided that
accession negotiations with Cyprus and Malta would
begin six months after the end of the Intergovernmental
Conference.

The Luxembourg European Council of December 1997
established a specific pre-accession strategy for Cyprus
and considered that
the accession of Cyprus should
benefit both communities and contribute to civil peace
and reconciliation.

Following the Vienna European Council of December
1998, which welcomed Malta's decision to reactivate its
in
application for accession to the European Union,
February 1999 the Commission submitted an updated
version of its 1993 opinion.

The Council of March 1999 called on the Commission
to present appropriate suggestions as soon as possible
for defining a specific pre-accession strategy for Malta.

It is necessary to establish Accession Partnership instru-
ments for Cyprus and Malta in accordance with the
procedures set out in Regulation (EC) No 622/98 (2) for
the applicant States of central and eastern Europe, so
that Community assistance can be concentrated on
accession priorities and objectives.

The provisions of this Regulation are based on the polit-
ical criteria established by the Copenhagen European
Council of 1993,
in particular respect for democratic
principles, the rule of law, human rights and funda-
mental freedoms, and compliance with international law,
which are essential elements of the policies of the Euro-
pean Union and its Member States.

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

(9)

(10)

Cyprus and Malta are eligible in respect of operations of
regional interest for financing under the MEDA budget
heading.

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 (3).

(11) A financial reference amount within the meaning of
point 34 of the Interinstitutional Agreement of 6 May
1999 between the European Parliament, the Council and
the Commission on budgetary discipline and improve-
ment of the budgetary procedure (4), is included in this
thereby
Regulation for
affecting the powers of the budgetary authority as they
are defined by the Treaty.

its entire duration, without

(12)

Implementing this Regulation should contribute to the
achievement of Community objectives. The Treaty does
not provide, for the adoption of this Regulation, powers
other than those of Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

1. The European Union's pre-accession strategy for Cyprus
and Malta shall be based in particular on:

— the establishment of Accession Partnerships with Cyprus

and Malta,

— support for priority operations to prepare for accession, as
defined within the accession partnerships with Cyprus and
Malta on the basis of analyses of their economic situations,
taking account of the political and economic criteria and
the obligations incumbent upon a Member State of the
European Union as defined by the European Council,

— participation in certain Community programmes and agen-

The financial protocols concluded with Cyprus and
Malta expired on 31 December 1999.

cies.

This Regulation replaces the financial protocols for
Cyprus and Malta from 2000 for a period of five years.

(1) Opinion delivered on 17 February 2000 (not yet published in the

Official Journal).

(2) Council Regulation (EC) No 622/98 of 16 March 1998 on assi-
stance to the applicant States in the framework of the pre-accession
strategy, and in particular on the establishment of Accession Part-
nerships (OJ L 85, 20.3.1998, p. 1 ).

2. Acting on a proposal from the Commission, the Council
shall decide by qualified majority on the principles, priorities,
intermediate objectives and conditions contained in the indi-
vidual Accession Partnerships to be submitted to Cyprus and
Malta, as well as on subsequent significant adjustments to
them.

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

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Article 2

For the purposes specified in Article 1, and for a period
expiring on 31 December 2004, the financial reference amount
for the implementation of this Regulation shall be EUR 95
million. The annual appropriations shall be authorised by the
budgetary authority within the limits of the financial perspec-
tives.

Article 3

The beneficiaries of cooperation projects and operations may
include not only the State and regions of Cyprus and Malta but
also local authorities, regional organisations, public agencies,
traditional communities, business support organ-
local or
isations, cooperatives and civil society,
in particular organ-
isations representing the social partners, associations, founda-
tions, non-profit organisations and non-governmental organ-
isations.

majority on a proposal from the Commission, may take appro-
priate steps with regard to any pre-accession assistance granted
to Cyprus or Malta.

Article 7

1. The Commission shall implement the Community aid in
accordance with the rules of transparency and the Financial
Regulation applicable to the general budget of the European
in particular Article 114 thereof.
Communities,

2.
the monitoring,

Pre-accession aid shall also cover expenditure relating to

inspection and evaluation of operations.

Prior appraisal of projects and programmes shall

3.
account of the following factors:

take

(a) the effectiveness and viability of projects and programmes;

Article 4

(b) the environment;

Cooperation projects and operations shall be in the form of
grants and may be financed in the following indicative areas:

— technical assistance, training or other services, supplies and
works, audits and evaluation and monitoring missions
corresponding to the objectives cited in Article 1,

— any operations to contribute to the reconciliation of the

two Cypriot communities.

Article 5

1. Community financing may cover investment, with the
exception of the purchase of buildings, and recurring costs
including administrative, maintenance and operating costs,
taking into account that projects must aim to have recurring
costs taken over by the beneficiaries.

2. A financial contribution to each cooperation operation
shall be sought from the partners specified in Article 3. The
contribution requested shall be within the means of the part-
ners concerned and shall depend on the nature of the opera-
tion. In specific cases where the partner is either a non-govern-
mental organisation or a community-based organisation, the
contribution may be in kind.

3. Opportunities may be sought for co-financing with other
donors, particularly Member States.

4. The Commission, in cooperation with the Member States,
may take any initiative necessary to ensure good coordination
with the other donors concerned.

Article 6

Where an element that is essential for continuing to grant
pre-accession assistance is lacking,
in particular when the
commitments contained in the Association Agreements are not
respected and or progress towards fulfilment of the Copen-
hagen criteria is insufficient, the Council, acting by a qualified

(c) the institutional development necessary to achieve project

and programme objectives;

(d) experience gained from projects and programmes of the

same kind; cultural, social and gender aspects.

4. The Commission may decide, on the basis of a case-by-
case analysis of national and sectorial programme/project
management capacity, financial control procedures and struc-
tures regarding public finance, to waive the ex-ante approval
requirement referred to in paragraph 3 and confer on imple-
menting agencies in applicant countries management of aid on
a decentralised basis. Such a waiver shall be subject to:

(a) the minimum criteria for assessing the ability of imple-
menting agencies in applicant countries to manage aid and
minimum conditions applicable to such agencies set out in
the Annex to this Regulation;

(b) and specific provisions concerning, inter alia, invitations to
tender, scrutiny and evaluation of tenders, the award of
contracts and the implementation of Community public
procurement directives, which shall be laid down in
financing agreements with each beneficiary country.

5. Decisions relating to grants of more than EUR 300 000
for individual projects or programmes financed under this
Regulations shall be taken under the procedure provided for in
Article 8(2).

The Commission shall
inform the Committee referred to in
Article 8 of any financing decisions it intends to take regarding
projects and programmes of less than EUR 300 000 in value.
The information shall be made available at least one week
before the decision is taken.

6. The Commission is authorised to approve, without seeking
the opinion of the Committee referred to in Article 8, addi-
tional grants needed to cover expected or actual overruns on
the projects or programmes, provided that the overrun or
additional requirement is not more than 20 % of the initial
grant set in the financing decision.

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

8. Where projects and programmes are the subject of
financing agreements between the Community and Cyprus or
Malta, such agreements shall stipulate that the payment of
taxes, duties or any other charges is not to be covered by the
Community.

9.
Participation in invitations to tender and the award of
contracts shall be open on equal terms to natural and legal
persons of the Member States, Cyprus and Malta.

Supplies shall originate in the Member States, Cyprus or

10.
Malta.

Article 8

1. The Commission shall be assisted by the Committee
provided for in Article 9(1) of Council Regulation (EEC) No
3906/89, hereinafter referred to as the ‘Committee’.

3. The Committee shall adopt its rules of procedure.

Article 9

An exchange of views shall take place once a year on the basis
of a presentation by the Commission's representative of the
general guidelines for the operations to be carried out in the
year ahead, in a meeting of the Committee referred to in Article
8.

Article 10

improving the effectiveness of

The Commission shall regularly assess operations financed by
the Community in order to establish whether the objectives of
the operations have been achieved and to provide guidelines
future operations. The
for
Commission shall submit
to the Committee referred to in
Article 8 a summary of the assessments made, which the latter
may, if necessary, examine. Assessment reports shall be sent to
any Member States requesting them and to the European Parlia-
ment.

Article 11

The Commission shall submit to the European Parliament and
the Council an annual overall assessment of operations
financed by the Community under this Regulation, together
with suggestions regarding the future of this Regulation and,
where necessary, proposals for amending it.

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply.

Article 12

The period provided for in Article 4 of Decision 1999/468/EC
shall be three months.

This Regulation shall enter
into force on the third day
following 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 Brussels, 13 March 2000.

For the Council

The President

J. PINA MOURA

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ANNEX

MINIMUM CRITERIA AND CONDITIONS FOR DECENTRALISING MANAGEMENT TO IMPLEMENTING
AGENCIES IN APPLICANT COUNTRIES (ARTICLE 7)

1. Minimum criteria for assessing the ability of implementing agencies in applicant countries to manage aid

The following criteria shall be applied by the Commission in assessing which implementing agencies in partner
countries are able to manage aid on a decentralised basis:

(a) there should be a well-defined system for managing the funds with full

internal rules of procedure, clear

institutional and personal responsibilities;

(b) the principle of separation of powers must be respected so that there is no risk of conflict of interest in

procurement and payment;

(c) adequate personnel must be available and assigned to the task. They must have suitable auditing skills and

experience,

language skills and be fully trained in implementing Community programmes.

2. Minimum conditions for decentralising management to implementing agencies in applicant countries

Decentralisation to applicant countries with ex post control by the Commission may be considered for an imple-
menting agency where the following conditions are met:

(a) demonstration of effective internal controls including an independent audit function and an effective accounting

and financial reporting system which meets internationally accepted audit standards;

(b) a recent financial and operational audit showing effective and timely management of Community assistance or

national measures of similar nature;

(c) a reliable national financial control system over the implementing agency;

(d) procurement rules which are endorsed by the Commission as meeting requirements of Title IX of the Financial

Regulation applicable to the general budget of the European Union;

(e) commitment by the National Authorising Officer to bear the full financial responsibility and liability for the funds.

This approach shall not prejudice the right of the Commission and the Court of Auditors to check the expenditure.