Proposal for a Council Decision amending Decision 2000/24/EC so as to establish an EIB special action programme in support of the consolidation and intensification of the EC-Turkey customs union
Date: 2000-07-26
Institutions: European Commission
Subjects: EIB loan, Türkiye, customs union, financial cooperation, trading operation

19.12.2000

EN

Official Journal of the European Communities

C 365 E/167

Proposal for a Council Decision amending Decision 2000/24/EC so as to establish an EIB special
action programme in support of the consolidation and intensification of the EC-Turkey customs
union

(2000/C 365 E/09)

COM(2000) 479 final (cid:16) 2000/0197(CNS)

(Submitted by the Commission on 26 July 2000)

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,

Whereas:

(1) Council on 23 December 1963 adopted Decision
64/732/EEC on the establishment of an Association
EEC and Turkey (1). The
Agreement between the
Additional Protocol effective since 1 January 1973 and
annexed to the Association Agreement (2) set down the
the
conditions,
progressive establishment of the Customs Union within
a period of 22 years.

arrangements

timetables

and

for

(2) On 6 March 1995 Council agreed on a global package
regarding the future relations with Turkey, including the
draft Decision of the EC-Turkey Association Council on
the implementation of the final phase of the customs
union, and a related Community declaration concerning
financial cooperation.

(3) The declaration on financial cooperation specified that the
resumed financial cooperation with Turkey shall be based,
inter alia, on :additional EIB loans over a five-year period
starting in 1996, in order to improve the competitiveness
of the Turkish economy following the entry into force of
the Customs Union<.

financial cooperation with Turkey.

(4) On 25 July 1995, on the basis of the above declaration,
the Commission put forward a proposal for a Council
Regulation on the implementation of a special measure
In the same
of
proposal,
to
approve a special EIB lending facility strengthening the
the Turkish economy following the
competitiveness of
entry into force of the Customs Union. The Commission

the Commission invited the Council

(1) OJ 217, 29.12.1964, p. 3685/64.
(2) OJ L 293, 29.12.1972, p. 4.

proposal encountered fundamental difficulties during the
legislative process and the legal basis has not been
approved.

(5) The Luxembourg European Council on 12 and 13
December 1997 called for a strategy to be drawn up to
prepare Turkey for accession by bringing it closer to the
EU in every field. On 4 March 1998 the Commission
submitted to the Council a communication entitled :the
European Strategy for Turkey<, which put forward a work
programme to consolidate and add substance to the
Customs Union and step up cooperation in other areas
significant for the further development of relations with
Turkey.

(6) The Cardiff European Council on 15 and 16 June 1998
welcomed the European Strategy for Turkey as a platform
for developing relations between the European Union and
Turkey on a sound and evolutionary basis. Recalling the
need for financial support for the European Strategy, the
European Council noted the Commission’s intention to
reflect on ways
and means of underpinning the
implementation of the strategy, and to table appropriate
proposals to this effect.

(7) The Helsinki European Council of 10 and 11 December
1999 decided 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.

(8) In line with the European Strategy for Turkey and the new
status of Turkey as candidate State following the Helsinki
European Council, the present Decision should establish
an EIB special action programme supporting the consoli-
dation and intensification of
the EC-Turkey Customs
It should facilitate progress in areas that still
Union.
merit attention as
implementation and
the
effective application of certain legislation of relevance
the Customs Union as identified by the regular
for
reports by
the Commission on Turkey’s progress
towards accession and in relevant areas identified by the
European Strategy for Turkey.

regards

(9) This Decision replaces the proposal on an EIB special
action programme made in 1995. The present Decision,
together with Turkey’s expected eligibility under the EIB’s
Pre-Accession Facility,
the EU
is meant
commitment on special EIB lending in Turkey in the
context of the 1995 Customs Union.

to deliver

C 365 E/168

EN

Official Journal of the European Communities

19.12.2000

in particular

(10) The EIB’s intervention under this Decision should be
coherent with the other EIB facilities available in Turkey
and support investments assisting the competitiveness of
industry in Turkey,
the SME sector;
investments in infrastructures, covering transport, energy
and telecom improving the links between the EU and
Turkish infrastructures, including where appropriate and
if within the scale of available resources projects related to
the :Traceca< corridor, and the
the TINA Network,
supporting direct
:Inogate< energy links;
investment activities by EU companies in Turkey; and
where EIB loan finance is an appropriate instrument
investments for technical installations facilitating the func-
tioning of the Customs Union.

investments

(11) Council Decision 2000/24/EC (1) grants

the EIB a
Community guarantee against
for
loans
projects outside the Community (central and eastern
Europe, Mediterranean countries, Latin America and
Asia and the Republic of South Africa).

losses under

(12) Council Decision 2000/24/EC gives
fund for

recourse to the
established by
guarantee
Council Regulation (EC, Euratom) No 2728/94 of 31
October 1994 (2), amended by Council Regulation (EC,
Euratom) No 1149/1999 of 25 May 1999 (3).

external

actions

lending mandate

(13) The Community guarantee covering the general EIB
external
down in Decision
2000/24/EC should be extended to cover an EIB special
action programme supporting the consolidation and
EC-Turkey Customs Union.
the
intensification
Decision 2000/24/EC should therefore be
amended
accordingly.

laid

of

law,
fundamental freedoms and respect for international
which underpin the policies of the European Community
and its Member States. The Community attaches great
importance to the need for Turkey to improve and
promote its democratic practices and respect for funda-
mental human rights, and more closely involve civil
society in that process.

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

HAS DECIDED AS FOLLOWS:

Article 1

The second sentence of the second subparagraph of the first
paragraph of Article 1 of Decision 2000/24/EC is hereby
amended as follows:

(a)

in the introductory part,
replaced by :EUR 18 860 million<;

:EUR 18 410 million< shall be

b)

the following fifth indent
:Republic of South Africa<:

shall be inserted after

the

:A Special action supporting the consolidation and inten-
sification of the EC-Turkey Customs Union: EUR 450
million.<

Article 2

(14) The provisions of this Decision are based on respect for
democratic principles, the rule of law, human rights and

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

It shall take effect on the day of

(1) OJ L 9, 13.1.2000, p. 24.
(2) OJ L 293, 12.11.1994, p. 1.
(3) OJ L 139, 2.6.1999, p. 1.