Proposal for a Council Decision concerning the conclusion of an agreement between the Community and Cyprus establishing co-operation in the field of Small and Medium-sized Enterprises within the framework of the Third Multiannual Programme for Small and Medium-Sized Enterprises (SMEs) in the European Union (1997 to 2000)
Date: 2000-04-26
Institutions: European Commission
Subjects: Cyprus, EU programme, cooperation agreement (EU), small and medium-sized enterprises

26.9.2000

EN

Official Journal of the European Communities

C 274 E/109

for a Council Decision concerning the conclusion of an agreement between the
Proposal
Community and Cyprus establishing cooperation in the field of Small and Medium-sized Enter-
prises within the framework of the Third Multiannual Programme for Small and Medium-Sized
Enterprises (SMEs) in the European Union (1997 to 2000)

(2000/C 274 E/12)

COM(2000) 242 final (cid:151) 2000/0099(CNS)

(Submitted by the Commission on 26 April 2000)

THE COUNCIL OF THE EUROPEAN UNION,

HAS DECIDED AS FOLLOWS:

Having regard to the Treaty establishing the European
Community, and in particular Article 157(3),
in conjunction
with Article 300(2) and the first sub-paragraph of Article
300(3) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Whereas:

(1) The Resolution of the EC/Cyprus Association Council of 12
June 1995 and the conclusions of the European Council in
Luxembourg of 12-13 December 1997 established certain
elements of a pre-accession strategy which include the
participation of Cyprus in Community programmes, as
confirmed by the conclusions of the European Council in
Helsinki of 10 and 11 December 1999.

(2) Council Decision 97/15/EC of 9 December 1996, estab-
lishing the Third Multiannual Programme for Small and
Medium-Sized Enterprises (SMEs) in the European Union
(1997 to 2000) hereinafter called (cid:145)Programme(cid:146) provides,
in Article 7(2), that this programme shall be open to the
participation of Cyprus.

Article 1

The Agreement between the European Community and the
Republic of Cyprus establishing cooperation in the field of
Small and Medium-Sized Enterprises within the framework of
the Third Multiannual Programme for Small and Medium-sized
Enterprises (SMEs) in the European Union (1997 to 2000), is
hereby approved on behalf of the European Community.

The text of the Agreement is attached to this Decision.

Article 2

The Commission shall represent the Community in the Joint
Committee provided for in Article 6 of the agreement.

Article 3

The President of the Council is hereby authorised to appoint
the person(s) empowered to sign the Agreement in order to
bind the Community.

Article 4

the
The President of
Community, give the notification provided for in Article 13
of the Agreement.

shall, on behalf of

the Council

(3) The Commission has negotiated, on behalf of the European
Community, an agreement to enable Cyprus to participate
in the Programme.

Article 5

(4) This agreement should be approved,

This Decision shall be published in the Official Journal of the
European Communities.

C 274 E/110

EN

Official Journal of the European Communities

26.9.2000

Draft agreement between the European Community and the Republic of Cyprus establishing
cooperation in the field of small and medium-sized enterprises within the framework of the
Third Multiannual Programme for Small and Medium-Sized Enterprises (SMEs) in the European
Union (1997 to 2000)

THE EUROPEAN COMMUNITY, hereinafter referred to as the (cid:145)Community(cid:146)

on the one part, and

THE REPUBLIC OF CYPRUS, hereinafter referred to as (cid:145)Cyprus(cid:146)

on the other part,

Whereas, pursuant to Council Decision 97/15/EC of 9 December 1996 (1), a Third Multiannual Programme
for Small and Medium-Sized Enterprises (SMEs) in the European Union (1997 to 2000) hereinafter referred
to as (cid:145)the Programme(cid:146) was established;

Whereas Decision 97/15/EC provides, in its Article 7(2), for the opening of the Programme to Cyprus;

Whereas the participation of Cyprus in the Third Multiannual Programme constitutes a significant step in
the pre-accession strategy of Cyprus;

Whereas the Contracting Parties have a common interest
in cooperation in the field of small and
medium-sized enterprises as part of the wider cooperation between the Community and Cyprus and
with the aim of contributing to a dynamic and homogeneous development in this field;

Whereas, in particular, cooperation between the Community and Cyprus, with a view to pursuing the
objectives fixed for the Programme, within the context of transnational cooperation activities involving the
Community and Cyprus, by its nature enriches the impact of the different actions undertaken pursuant to
that Programme, and strengthens the competitiveness of small and medium sized enterprises in the
Community and Cyprus;

Whereas the Contracting Parties consequently expect to obtain mutual benefits from the participation of
Cyprus in the Programme;

Whereas a successful cooperation in this field implies a general commitment by the Contracting Parties to
make complementary efforts to stimulate the European dimension in the field of small and medium sized
enterprises;

HAVE AGREED AS FOLLOWS:

Article 1

Field of cooperation

Cyprus shall participate in the Third Multiannual Programme
in conformity, unless otherwise provided in this Agreement,
with the objectives, criteria, procedures and deadlines laid
down in the Council Decision 97/15/EC of 9 December 1996
and in particular Article 2, Article 7 and the Annex which
forms an integral part of this Agreement. Specifically, Cyprus
will participate in the measures: C. (cid:145)Help SMEs to Europeanise
and internationalise their strategies in particular through better
information and cooperation services(cid:146) and E.
(cid:145)Promote entre-
preneurship and support special target groups(cid:146).

Article 2

Eligible institutions, organisations and individuals

The eligibility of
institutions, organisations and individuals
established in Cyprus shall be subject to the rules set out or

(1) OJ L 6, 10.1.1997, p. 25.

deriving from the Council Decision 97/15/EC,
Article 2, Article 7 and the Annex.

in particular

Article 3

Procedures

Eligible institutions, organisations and individuals established in
Cyprus shall take part in the Programme according to the
conditions and rules set out or deriving from the Decision
97/15/EC,
in particular Article 2, Article 7 and the Annex.
The terms and conditions for the submission, evaluation and
selection of applications and proposals of pilot projects,
programmes and any other measures shall be the same as
those applicable to institutions, organisations and individuals
of the Community.

Projects and activities carried out solely between Cyprus and
EFTA/EEA States or any other third country, including those
with an Association Agreement with the Community, to which
participation in the Programme is open, shall not be eligible for
Community financial support.

26.9.2000

EN

Official Journal of the European Communities

C 274 E/111

Article 4

National structures

shall provide, where necessary,

Cyprus
appropriate
structures and mechanisms at national level and shall take all
other necessary steps to ensure national coordination and
organisation of
in
the Programme,
the implementation of
conformity with Article 7(2) of Council Decision 97/15/EC.

the

Article 5

Financial conditions

To cover
the costs arising from its participation in the
Programme, Cyprus shall pay each year a contribution to the
General Budget of the European Union, according to the terms
and conditions set out in the Annex, which shall constitute an
integral part of this Agreement.

Article 6

Joint Committee

A Joint Committee is hereby established.

The Joint Committee shall consist, on the one hand, of
representatives of
the Community, and, on the other, of
representatives of Cyprus.

The Joint Committee shall be responsible for the implemen-
tation of this Agreement.

At the request of either Party, the Contracting Parties shall
exchange information and hold consultations within the Joint
Committee on activities covered by this Agreement and related
financial aspects.

The Joint Committee shall act by agreement.

The Joint Committee shall meet at
Contracting Party,
laid down in its rules of procedure.

the request of either
in accordance with the conditions to be

Article 7

Coordination meetings

The representatives of the Community in the Joint Committee
shall take the appropriate steps to ensure coordination between
the implementation of the Agreement and the decisions taken
by the Community in respect of the implementation of the
Programme.

In order to facilitate this coordination and without prejudice to
the procedures referred to in Article 4 of Decision 97/15/EC,
representatives of Cyprus shall be invited to coordination
meetings on any question concerning the implementation of
this agreement prior to the regular meetings of the Programme
committee. The Commission shall
inform Cyprus about the
results of such regular meetings.

Article 8

Free movement

The Contracting Parties shall make every effort within the
free
framework of

existing provisions

to facilitate

the

to the
movement and residence of all eligible persons
programme moving between Cyprus and the Community for
the purpose of participating in the activities covered by this
Agreement.

Article 9

Monitoring, evaluation and reports

Without prejudice to the responsibilities of the Commission
and the Court of Auditors of the Community in relation to
the monitoring and evaluation of the Programme pursuant to
Article 5 and Article 6 of Decision 97/15/EC, the participation
of Cyprus in the Third Multiannual Programme shall be
continuously monitored and evaluated on a partnership basis
involving the Commission and Cyprus. On this basis, Cyprus
shall submit the necessary reports to the Commission and take
part in any other specific activity set out by the Commission or
undertake any other specific steps set out on the basis of
Article 7(2).

Article 10

Use of languages

The language to be used as regards the application process,
contracts, reports to be submitted and other administrative
arrangements for the Programme shall be one of the official
languages of the Community.

Article 11

Territories

This Agreement shall apply, on the one hand, to the territories
in which the Treaty establishing the European Community is
applied and under the conditions laid down in that Treaty and,
on the other, to the territory of Cyprus.

Article 12

Duration

This Agreement
is
Programme (until 31 December 2000).

concluded for

the duration of

the

Should the Third Multiannual Programme be revised,
this
Agreement may be renegotiated or terminated. Cyprus shall
be notified of the revised programme within one month of
its adoption. Within a further two months, either Contracting
Party may request a renegotiation or
this
Agreement.
the practical
arrangements for dealing with outstanding commitments shall
be the subject of negotiations between the Contracting Parties.

termination of

termination,

event of

In the

Either Contracting Party may, at any time, request a revision of
this Agreement. To this end, it shall submit a request to the
other Contracting Party. The Contracting Parties may instruct
the Joint Committee to examine this request and, where appro-
priate, to make recommendations to them, particularly with a
view to opening negotiations.

C 274 E/112

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Official Journal of the European Communities

26.9.2000

Should the Community adopt a new Multiannual Programme
for the SMEs, this Agreement may be renegotiated or renewed
under mutually agreed conditions.

Article 14

Languages of the Agreement

Article 13

Entry into force

This Agreement is drawn up in duplicate in the Danish, Dutch,
Italian, Portuguese,
English, French, Finnish, German, Greek,
Spanish and Swedish languages, each of
these texts being
equally authentic.

This Agreement shall enter into force on the first day of the
month following the notification by the Contracting Parties of
the completion of their respective procedures.

ANNEX

Financial conditions

1. Cyprus shall pay an annual contribution to the General Budget of the European Union to cover the subsidies or other

financial support from the Programme to be received by the Cypriot beneficiaries. This contribution will be:

(i) EUR 40 000 for the measure C.

(cid:145)Help SMEs to Europeanise and internationalise their strategies in particular

through better information services(cid:146);

(ii) EUR 110 000 for the measure E. (cid:145)Promote entrepreneurship and support special target groups(cid:146).

Cyprus’s annual contribution in 2000 will amount a minimum of EUR 150 000.

For the budget year 2000, the aggregated amount of subsidies or any other financial support received from the
Programme by the Cypriot beneficiaries may not exceed the above contribution.

Should the aggregated amount of subsidies or the financial support received by the Cypriot beneficiaries from the
Programme be lower than the contribution and given that 2000 is the last possible year of participation, the
Commission of the European Communities will reimburse the remaining amount to Cyprus.

2. In addition to the contribution referred to in point 1, Cyprus will pay in 2000 7 % which on the basis of the
minimum annual contribution (EUR 150 000) would come to an additional EUR 10 500 to cover supplementary
administrative costs related to the management of the Programme by the Commission stemming from Cyprus’
participation. These amounts will not be subject to the provisions set out in the final paragraph of point 1.

3. The Financial Regulation applicable to the General Budget of the European Union shall apply, in particular to the

management of the contribution of Cyprus.

After the entry into force of this Agreement, the Commission shall send to Cyprus a call for funds corresponding to
its contribution referred to in points 1 and 2 above.

This contribution shall be expressed in EUR and paid into an EUR bank account of the Commission.

Cyprus shall pay its contribution at the latest within three months of the call for funds. Any delay in the payment of
the contribution shall give rise to the payment of interest by Cyprus on the outstanding amount from the due date.
The interest rate shall correspond to the rate applied by the European Central Bank, for the month of the due date,
for its operations in EUR (1), increased by 1,5 percentage points.

4. If necessary to take into account programme developments, the contribution of Cyprus referred to in points 1 and 2

may be adapted by the Joint Committee.

(1) Rates published in the Official Journal of the European Communities (cid:151) C series.