Proposal for a Council Regulation on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the former Yugoslav Republic of Macedonia and amending Regulation (EEC) No 3906/89
Date: 2000-05-10
Institutions: European Commission
Subjects: Yugoslavia, cooperation policy, economic reconstruction

28.11.2000

EN

Official Journal of the European Communities

C 337 E/71

Proposal for a Council Regulation on assistance for Albania, Bosnia and Herzegovina, Croatia, the
Federal Republic of Yugoslavia and the former Yugoslav Republic of Macedonia and amending
Regulation (EEC) No 3906/89

(2000/C 337 E/09)

COM(2000) 281 final (cid:15) 2000/0111(CNS)

(Submitted by the Commission on 8 June 2000)

THE COUNCIL OF THE EUROPEAN UNION,

objectives for the region and, particularly, to ensure that it
contributes to the Stabilisation and Association Process.

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,

Whereas:

(1) The Community provides assistance for Albania, Bosnia and
Herzegovina, Croatia, the Federal Republic of Yugoslavia
and the former Yugoslav Republic of Macedonia.

(2) Most of

this assistance is currently provided under
Council Regulation (EC) No 1628/96 of 25 July 1996
relating to aid for Bosnia and Herzegovina, Croatia, the
Federal Republic of Yugoslavia and the former Yugoslav
Republic of Macedonia (1) (Obnova), as last amended by
Regulation (EC) No 2454/1999 (2) and under Council
Regulation (EEC) No 3906/89 of 18 December 1989 on
economic aid to certain countries of Central and Eastern
Europe (3)
(Phare), as last amended by Regulation (EC)
No 1266/1999 (4). This means
the assistance is
subject
sets of procedures, which
encumbers management. In the interests of efficiency it
is therefore desirable to establish a single legal framework
for this assistance.
It is therefore appropriate to repeal
Regulation (EC) No 1628/96 and to amend Regulation
(EEC) No 3906/89. However,
in order to ensure the
continuity of the activities of the European Agency for
(EC)
Reconstruction,
provisions
the
No 1628/96 which concern the establishment of
Agency should be incorporated in another Regulation
which should enter into force on the date of that repeal.

to two different

of Regulation

that

the

(3) The European Council which met in Lisbon on 23 and
24 March 2000 confirmed that
its overall objective
remained the fullest possible integration of the countries
of the region into the political and economic mainstream
of Europe and that
the Stabilisation and Association
Process was the centrepiece of its policy in the Balkans.

(4) The existing financial assistance should be expanded and
redirected to adjust it to the European Union’s political

(1) OJ L 204, 14.8.1996, p. 1.
(2) OJ L 299, 20.11.1999, p. 1.
(3) OJ L 375, 23.12.1989, p. 11.
(4) OJ L 161, 26.6.1999, p. 68.

(5) Assistance will therefore be focussed mainly on building
up an institutional,
legislative and economic framework
directed to the values and models subscribed to by the
European Union.

(6) A precondition of

the
respect democratic principles, human and

receiving assistance

recipients
minority rights and other fundamental freedoms.

that

is

(7) The regional dimension of such assistance must be given
special attention, particularly with a view to supporting
the European Union’s role within the Stability Pact and
close regional cooperation.

(8) In view of the political situation in some areas and the
nature of the various entities that have responsibility for
implementing assistance there,
it is desirable to provide
that the assistance can be supplied in some cases directly
to recipients other than the State.

(9) To make the assistance more effective and ensure it is
properly implemented,
the Commission should adopt
general guidelines in accordance with the management
procedure laid down in this Regulation.

(10) To promote cooperation within the region, provision
should be made for all the candidate countries and the
countries covered by the TACIS and MEDA programmes
to participate in the tendering procedures and contracts.

(11) Provision should be made for checks and for

the
protection of
interests inter
the Community’s financial
alia by enabling the Commission, the Court of Auditors
and OLAF to exercise their respective powers pursuant to
Council Regulation (Euratom, EC) No 2185/96 of
11 November 1996 concerning on-the-spot checks and
inspections carried out by the Commission in order to
protect
interests
against fraud and other irregularities (5) and Council Regu-
lation (EC, Euratom) No 2988/95 of 18 December 1995
on the protection of the European Communities’ financial
interests (6).

the European Communities’

financial

(5) OJ L 292, 15.11.1996, p. 2.
(6) OJ L 312, 23.12.1995, p. 1.

C 337 E/72

EN

Official Journal of the European Communities

28.11.2000

Article

are management measures within
of
of

(12) The measures necessary for the implementation of this
the
Regulation
meaning
Decision
2
No 1999/468/EC of 28 June 1999 laying down the
implementing powers
procedures
conferred on the Commission (1), and should be adopted
in accordance with the management procedure provided
for in Article 4 of that Decision. In the interests of faster
implementation the threshold for consultation of
the
management committee should be set at EUR 10 million.

the exercise of

Council

for

(13) The Treaty does not provide, for the adoption of this
Regulation, powers other than those under Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

1.
The Community shall provide financial assistance, here-
inafter referred to as ACommunity assistanceB, to Albania, Bosnia
and Herzegovina, Croatia,
the former Yugoslav Republic of
Macedonia and the Federal Republic of Yugoslavia.

The following shall be directly eligible for Community
2.
assistance: the State, federal, regional and local bodies, public
and semi-public bodies, organisations providing support
to
businesses, cooperatives, mutual societies, associations, foun-
dations and non-governmental organisations.

3.
Authorities established by the international community to
act as the civil administration in some areas, such as the High
Interim
Representative in Bosnia and the United Nations
Administration Mission in Kosovo, shall be duly consulted on
implementation of the Community assistance in their areas.
Any programmes or projects they implement shall be eligible
for Community assistance under this Regulation.

(d) the development of

relations among recipient
countries, between them and the European Union, and
between them and countries which are candidates for
accession to the European Union;

closer

(e) fostering trans-national, cross-border and inter-regional
cooperation among the recipient countries and between
them and the European Union.

As a rule, a country strategy shall be formulated,

3.
possible on a multiannual basis.

if

Community assistance shall wherever possible be imple-
4.
mented under national programmes or multi-beneficiary
programmes.

The Community assistance shall be implemented by
5.
financing investment and institution-building projects and
programmes in accordance with the programming principles
set out in the general guidelines adopted in accordance with
the procedure referred to in Article 8(2).

Article 3

Respect for the principles of democracy and the rule of
1.
law and for human and minority rights and fundamental
freedoms is an essential element for the application of this
Regulation and a precondition of eligibility for Community
assistance. If these principles are not respected, the Council,
from the
acting by qualified majority on a proposal
Commission, may take appropriate measures.

Community assistance shall also be subject

2.
to the
in its conclusions of
conditions defined by the Council
29 April 1997 (2), in particular as regards the recipients’ under-
taking to carry out democratic, economic and institutional
reforms.

Article 2

Article 4

The main purpose of the Community assistance is to
1.
support participation by the recipient countries in the Stabili-
sation and Association Process.

2.

The Community assistance is for, inter alia:

(a) the reconstruction and stabilisation of the region;

(b) the creation of an institutional and legislative framework to
law and human and

the rule of

underpin democracy,
minority rights;

(c) market-economy orientated economic and social devel-

opment and economic reform;

1.

Community assistance shall be in the form of grants.

Community financing may be used to cover expenditure
and

2.
on preparing,
evaluating projects and programmes, and on information.

implementing, monitoring,

checking

Community financing may be used for cofinancing. Cofi-
investment projects financed by loans from the
financial

3.
nancing of
European Investment Bank or other
institutions may take the form of interest rate subsidies.

international

4.
In the event of the occurrence or threat of a serious
political and economic crisis in one of the recipient countries
the Community may provide exceptional
and/or entities,
budget assistance targeted on clearly identified items of expen-
diture.

(1) OJ L 184, 17.7.1999, p. 23.

(2) Bulletin 4-1997, point 2.2.1.

28.11.2000

EN

Official Journal of the European Communities

C 337 E/73

Community financing may not be used for paying taxes,

5.
duties or charges or for acquiring immovable property.

than EUR 8 million. The Committee shall be notified of all
revised decisions.

Article 5

Article 8

The Commission shall

the Community
1.
assistance
Financial Regulation
applicable to the general budget of the European Communities.

in accordance with the

implement

The Commission shall be assisted by a management
1.
committee composed of
the representatives of the Member
States and chaired by the representative of the Commission.

2.
Participation in invitations to tender and contracts shall
be open on equal terms to all natural and legal persons from
Member States, States which are recipients under this Regu-
lation, candidate countries and countries which are recipients
under the TACIS and MEDA programmes.

reference

2. Where
the
management procedure laid down in Article 4 of Decision
1999/468/EC shall apply,
in compliance with Article 7(3)
thereof.

to this paragraph,

is made

In the

case of

3.
the Commission may
cofinancing,
authorise participation in invitations to tender and contracts
by nationals of other countries on a case-by-case basis.

Article 6

therefrom shall

Financing decisions and any agreements or contracts
1.
the
resulting
Commission or bodies authorised by the Commission,
the
Court of Auditors and the Anti-Fraud Office (OLAF) may
carry out checks on the spot, if necessary.

expressly

provide

that

and inspections

In addition, the Commission may carry out on-the-spot
2.
checks
in accordance with Regulation
(Euratom, EC) No 2185/96. Measures taken by the Commission
in accordance with the procedures referred to in Article 8(2)
shall provide for adequate protection of the financial interests
of the Community as required by Regulation (EC, Euratom)
No 2988/95.

Article 7

Financing decisions exceeding EUR 10 million shall be
1.
adopted in accordance with the procedure referred to in
Article 8(2). The Committee shall be informed of all other
financing decisions.

Decisions amending decisions taken in accordance with
2.
the procedure referred to in Article 8(2) shall be adopted by
the Commission without consulting the Committee where they
do not comprise substantial changes to the nature of
the
original projects and operations and, as regards the financial
element, where they do not exceed 20 % of the total amount of
the initial commitment, always provided the sum is not greater

The period provided for in Article 4(3) of Decision

3.
1999/468/EC shall be one month.

The Committee may examine

any other question
4.
this Regulation which is
concerning the implementation of
the
submitted to it by the Chairman, whether or not at
the representative of a Member State, and in
request of
particular any question relating to the programming or
general implementation of measures or to co-financing.

Article 9

Every year the Commission shall submit a progress report to
the European Parliament and the Council on implementation of
the Community assistance.

Article 10

1.

Regulation (EC) No 1628/96 is repealed.

In the Annex to Regulation (EC) No 3906/89, the names
ACroatiaB, Aformer Yugoslav

2.
ABosnia and HerzegovinaB, AAlbaniaB,
Republic of MacedoniaB and AYugoslaviaB are deleted.

Article 11

This Regulation shall enter
into force on the third day
following that of 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.