Common Position (EC) No 36/2000 of 13 June 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 regarding the implementation of measures to promote economic and social development in Turkey
Date: 2000-06-13
Institutions: Council of the European Union
Subjects: EU financing, Türkiye, development aid, economic development, social development

23.8.2000

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Official Journal of the European Communities

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COMMON POSITION (EC) No 36/2000

adopted by the Council on 13 June 2000

with a view to adopting a Regulation of the European Parliament and of the Council regarding
the implementation of measures to promote economic and social development in Turkey

(2000/C 240/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(5)

The conclusions of the Council meeting of 13 September
1999 referred to financial assistance for Turkey.

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)

(2)

(3)

(4)

Relations between the European Union and Turkey
are based mainly on the Association Agreement of
12 September 1963 (3), and the decisions of the Associ-
ation Council which the Association Agreement set up.

Turkey is engaged in substantial reform to improve its
economy, restructure and increase the efficiency of
its public sector, modernise its economic and social
infrastructure and develop its manufacturing sector.

The Cardiff European Council on 15 and 16 June 1998
affirmed the importance it attached to the implemen-
tation of the European strategy for Turkey and requested
the Commission to table proposals, including proposals
on financial matters, in that connection.

Income is unequally distributed across Turkey’s prov-
inces and in order to act on the conclusions of the
Cardiff European Council it is, in particular, appropriate
that these disparities be remedied by backing the devel-
opment of regions which are lagging behind and by
strengthening economic and social cohesion.

(1) OJ C 408, 29.12.1998, p. 18.
(2) Opinion of the European Parliament of 2 December 1999 (OJ C
194, 11.7.2000, p. 56), Council Common Position of 13 June
2000 and Decision of the European Parliament of ... (not yet
published in the Official Journal).
(3) OJ C 217, 29.12.1964, p. 3687/64.

(6)

(7)

(8)

(9)

The Helsinki European Council of 10 and 11 December
1999 stated that Turkey was a candidate State destined
to join the Union on the basis of the same criteria as
applied to the other candidate States.

The provisions of this Regulation are based on respect
for democratic principles, the rule of law, human rights
and fundamental freedoms and respect for international
law, which underpin the policies of
the European
Community and its Member States, and on the obli-
gations entered into under the various agreements in
those fields.

The Community attaches great importance to the need
for Turkey to improve and promote its democratic
practices and respect for fundamental human rights, and
more closely involve civil society in that process.

The European Parliament has adopted a number of
resolutions in particular on the importance of respect
for human rights in Turkey to the development of close
ties between that country and the European Union,
namely those of 13 December 1995 on the human
rights situation in Turkey, 17 September 1998 on the
Commission reports on developments in relations with
Turkey since the entry into force of the customs union,
3 December 1998 on the communication from the
Commission to the Council and to the European Parlia-
ment on the further development of relations with
Turkey and on the communication from the Com-
mission to the Council entitled ‘European strategy for
Turkey: the Commission’s initial operational proposals’
and 6 October 1999 on the state of relations between
Turkey and the European Union (4).

(4) OJ C 17, 22.1.1996, p. 46; OJ C 313, 12.10.1998, p. 176; OJ C

398, 21.12.1998, p. 57 and OJ C 107, 13.4.2000, p. 78.

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(10) 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 (1).

2. Where an essential element for the continuation of
assistance to Turkey is lacking, in particular in the case of
violation of democratic principles, the rule of law, human
rights and fundamental freedoms and international law, the
Council, acting by qualified majority on a proposal from the
Commission, may decide upon appropriate measures.

(11) This Regulation lays down, for the entire duration of the
programme, a financial
framework constituting the
prime reference, within the meaning of point 33 of the
Interinstitutional Agreement of 6 May 1999 between
the European Parliament, the Council and the Com-
mission (2), for the budgetary authority during the annual
budgetary procedure.

(12) The projects and programmes financed with this support
must further Turkey’s economic and social development,
help to promote the defence of human rights and respect
for, and the protection of, the country’s minorities, and
contribute to the reform of its development policies and
the restructuring of its institutional and legal framework
in order to ensure compliance with these principles.

(13) The projects and programmes financed with this support
the population affected by

must benefit above all
Turkey’s development lag,

HAVE ADOPTED THIS REGULATION:

Article 1

The Community shall assist Turkey in its efforts to achieve
economic and social development.

3.
The Commission shall pass information on its indicative
programme to the Committee referred to in Article 7 (‘MED
Committee’) and to the Joint Parliamentary Committee and
the EU-Turkey Joint Economic and Social Committee.

Article 4

Cooperation projects and operations may be financed in

1.
the following indicative areas:

(a) modernising manufacturing, improving institutional and
infrastructure capacity in areas including the environ-
ment, energy and transport;

(b) promotion of industrial cooperation by methods includ-
ing support for diversification in industry and the estab-
lishment of small and medium-sized enterprises;

(c)

cooperation in telecommunications, infrastructure, rural
development and social services;

(d) boosting the capacity of the Turkish economy, inter alia,
the
by measures to encourage the restructuring of
country’s public sector and private initiative;

(e)

cooperation in protecting health;

Article 2

(f)

cooperation in the field of education and training;

framework for the implementation of

this
The financial
programme for the period 2000 to 2002 is hereby set at EUR
135 million. The annual appropriations shall be authorised by
the budgetary authority within the limits of the financial
perspective.

(g)

regional and cross-border cooperation;

(h)

any form of cooperation seeking to defend and promote
democracy,
law, human rights and the
the rule of
protection of minorities;

Article 3

1.
The beneficiaries of cooperation projects and operations
may include not only the Turkish State and regions but also
local authorities, regional organisations, public bodies and
departments, including the customs administration, local or
support organisations,
traditional communities, business
cooperatives and civil society, in particular associations, foun-
dations and non-governmental organisations.

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

(i)

cooperation on humanitarian issues;

(j) measures to promote the development of social dialogue
within Turkey and between Turkey and the European
Union;

(k)

(l)

all forms of assistance aimed at promoting the develop-
ment of relations between the European Union and
Turkey;

promotion of cooperation between the two parties’
public administrations with a view to the approximation
of legislation and the training of staff, including customs
officers.

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2. Where appropriate, measures could be taken to underpin
a structural adjustment programme on the basis of
the
following principles:

6.
The necessary measures shall be taken to emphasise
the Community character of the aid provided under this
Regulation.

(a)

(b)

(c)

support programmes must be tailored as far as possible
to Turkey’s particular circumstances and take account of
economic and social conditions;

support programmes must include measures to alleviate
any negative impact of the structural adjustment process
in social and employment terms, in particular for the
most disadvantaged sectors of the population;

account must be taken of Turkey’s economic situation,
and in particular regional economic imbalances,
its
level of indebtedness, debt servicing charges, balance
of payments and foreign currency supply, monetary
situation, per capita gross domestic product and unem-
ployment level.

7.
In order to achieve the objectives of coherence and
complementarity referred to in the Treaty, and with the aim of
guaranteeing optimum efficiency for these actions as a whole,
the Commission will take all necessary coordination measures,
notably:

(a)

the establishment of a system for systematic exchange
and analysis of information on the planning of operations
to be carried out,
the approval of each individual
operation the financing of which is under consideration
by the Community and the Member States, and the
development of the operations already approved;

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

Article 5

The Commission,

8.
in conjunction with the Member
States, may take any initiatives necessary for ensuring proper
coordination with the other providers of funds involved.

Financial support under this Regulation shall take the

1.
form of grants.

Article 6

2.
The instruments to be employed in the course of the
operations covered by this Regulation shall include, within the
limits established by the budgetary authority during the annual
budget procedure,
training or other
technical assistance,
services, supplies and works, along with audits and evaluation
and monitoring missions.

3.
Community financing may cover investment, with the
exception of the purchase of buildings, and recurring costs
(including administrative, maintenance and operational costs),
taking account of the fact that the project must aim to have
the recurring costs taken over by the beneficiaries.

A financial contribution from the partners defined in
4.
Article 3 shall be sought for each cooperation operation. The
contribution requested shall be within the means of the
partners concerned and shall depend on the nature of the
operation.
In specific cases where the partner is a non-
governmental organisation or a community-based organis-
ation, a contribution in kind may be made.

1.
The Commission shall examine, approve and administer
operations covered by this Regulation according to the budget-
ary procedures in force, and in particular those laid down in
the Financial Regulation of 21 December 1977 applicable to
the general budget of the European Communities(1).

Project and programme appraisal shall take into account

2.
the following factors:

(a)

effectiveness and economic viability of operations;

(b)

cultural, social and gender aspects;

(c)

(d)

conservation and protection of the environment on the
basis of the principles of sustainable development;

institutional development necessary to achieve project
goals;

(e)

experience gained from operations of the same kind.

Decisions relating to grants of more than EUR 2 million
3.
for individual operations financed under this Regulation shall
be taken under the procedure laid down in Article 7(2).

Opportunities may be sought for co-financing with other

5.
providers of funds, especially with Member States.

(1) OJ L 356, 31.12.1977, p. 1. Regulation as last amended by
Regulation (EC) No 2673/1999 (OJ L 326, 18.12.1999, p. 1).

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The Commission shall inform the MED Committee succinctly
of any financing decisions it intends to take with regard to
projects and programmes equal to, or less than, EUR 2 million
in value. The information shall be made available at least one
week before the decision is taken.

The Commission shall take all necessary steps to facilitate take-
up of grants by small, non-profit-making NGOs.

4. Where the overrun or additional requirement is equal to,
or less than, 20 % of the initial commitment fixed by the
financing decision, the Commission shall be authorised to
approve, without seeking the opinion of the MED Committee,
any additional commitments needed for covering expected or
real cost overruns in connection with the operations.

Where the additional commitment referred to in the previous
subparagraph is less than EUR 4 million, the MED Committee
shall be informed of the decision taken by the Commission.
Where the said additional commitment is more than EUR
4 million but less than 20 %, the Committee’s opinion shall be
required.

5.
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 according to
the usual procedures laid down by the Commission under the
rules in force, and in particular those of
the Financial
Regulation.

6. Where operations are the subject of financing agreements
between the Community and Turkey, such agreements shall
stipulate that the payment of taxes, duties or any other charges
is not to be covered by the Community.

7.
Participation in invitations to tender and the award of
contracts shall be open on equal terms to all natural and legal
persons in the Member States and Turkey.

8.

Supplies shall originate in the Member States or Turkey.

Article 7

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

The period laid down in Article 4(3) of Decision 1999/468/EC
shall be set at three months.

3.

The MED Committee shall adopt its rules of procedure.

Article 8

An exchange of views shall take place, once a year, on the
basis of a presentation by the Commission’s representative of
the indicative programme for the operations to be carried out
in the year ahead, in a meeting of the MED Committee.

The European Parliament shall be informed of the proposals
and of the outcome of the discussions.

Article 9

The Commission shall submit an annual report to the European
Parliament and to the Council during the first quarter of each
year. This report shall contain at least the following:

(a)

(b)

(c)

(d)

(e)

a detailed summary of the operations financed during the
previous financial year;

the planned indicative programme for the current finan-
cial year and a statement of the progress made with
regard to the operations included therein;

the forecasts for the programme and the operations to be
undertaken during the following financial year;

a summary of any evaluations made,
relating to specific operations;

including those

information on the bodies with which the agreements or
contracts have been concluded.

1.
The Commission shall be assisted by the committee
set up by Regulation (EC) No 1488/96 (1) called the ‘MED
Committee’.

(1) Council Regulation (EC) No 1488/96 of 23 July 1996 on financial
and technical measures to accompany the reform of economic
and social structures in the framework of the Euro-Mediterranean
partnership (MEDA) (OJ L 189, 30.7.1996, p. 1). Regulation as
amended by Regulation (EC) No 780/98 (OJ L 113, 15.4.1998,
p. 3).

Article 10

The Commission shall regularly evaluate operations financed
by the Community with a view to establishing whether the
objectives of the operations have been achieved and to provide
guidelines for improving the effectiveness of future operations.

to the MED Committee a
The Commission shall submit
summary of the evaluations made, which the latter may, if
necessary, examine.

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Evaluation reports shall be made available to any Member
States requesting them.

financed by the Community under this Regulation, together
with suggestions regarding the future of this Regulation and,
where necessary, proposals for amending it.

Article 11

Article 12

Six months before the end of the three-year financial frame-
work, the Commission shall submit to the European Parliament
and to the Council an overall assessment of the operations

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 …

For the European Parliament

The President

For the Council

The President

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STATEMENT OF THE COUNCIL’S REASONS

I.

INTRODUCTION

1. On 22 October 1998, the Commission sent the Council a proposal for a Council Regulation
regarding the implementation of measures to promote economic and social development in
Turkey (1). The proposal was based on former Article 130w, now Article 179 of the Treaty.

2.

3.

The European Parliament gave its opinion on 2 December 1999 (2).

Following the opinion of the European Parliament, the Commission forwarded an amended
proposal for a Regulation of the European Parliament and of the Council (3).

4. On 13 June 2000, the Council adopted its Common Position in accordance with Article 251(2)

of the Treaty.

II. OBJECTIVE

The aim of the Regulation is to assist Turkey in its efforts to achieve economic and social
development by financing cooperation projects and operations and taking measures to underpin a
structural adjustment programme in Turkey.

III. Analysis of the Common Position

The Council has adopted, without modifications, the amended proposal by the Commission. Of the
40 proposals put forward by the European Parliament, the Council has thus accepted 21 fully,
10 partly, and nine have been rejected. The reasons for this position have been developed in the
explanatory memorandum of the Commission’s amended proposal.

Recitals and articles related to the financial reference amount and comitology have been reformulated
in accordance with the Interinstitutional Agreement of 6 May 1999 between the European
Parliament, the Council and the Commission (4), and Council Decision 1999/468/EC of 28 June
1999 laying down the procedures for the exercise of implementing powers conferred on the
Commission (5).

(1) OJ C 408, 29.12.1998, p. 18.
(2) OJ C 194, 11.7.2000, p. 56.
(3) Doc. 7783/00 NT 15.
(4) OJ C 172, 18.6.1999, p. 1.
(5) OJ L 184, 17.7.1999, p. 23.