Common Position (EC) No 3/2001 of 10 November 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 closure and liquidation of projects adopted by the Commission under Regulation (EC) No 213/96 on the implementation of the European Communities investment partners Financial Instrument for the countries of Latin America, Asia, the Mediterranean region and South Africa
Date: 2000-11-10
Institutions: Council of the European Union
Subjects: Asia, EU financial instrument, Latin America, Mediterranean third countries, South Africa, project management

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Official Journal of the European Communities

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COMMON POSITION (EC) No 3/2001

adopted by the Council on 10 November 2000

with a view to adopting a Regulation of the European Parliament and of the Council of ...
regarding the closure and liquidation of projects adopted by the Commission under Regulation
(EC) No 213/96 on the implementation of the European Communities investment partners
Financial Instrument for the countries of Latin America, Asia, the Mediterranean region and
South Africa

(2001/C 23/03)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(5)

The Commission should be empowered to take the steps
necessary to allow the existing project portfolio to be
liquidated,

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 179(1) thereof,

HAVE ADOPTED THIS REGULATION:

Having regard to the proposal from the Commission (1),

Article 1

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (2),

Whereas:

(1)

(2)

(3)

(4)

Council Regulation (EC) No 213/96 of 29 January 1996
on the implementation of the European Communities
the
investment partners Financial
countries of Latin America, Asia, the Mediterranean
region and South Africa (3) expired on 31 December
1999.

Instrument

for

Using Regulation (EC) No 213/96 as a basis,
the
Commission has approved the financing of a number of
projects which have not yet been fully completed and
which may require further sums to be committed so that
they can be closed.

The many investment instruments managed by the
Commission (Al-Invest, Asia-Invest, Med-Invest,
JOP,
JEV and Proinvest) lack a centralised, coordinated and
coherent organisational structure.

This transitional measure should serve not only to
ensure compliance with the commitments entered into
by the Commission up to 31 December 1999, but
also to lay the foundations for a future,
integrated
programme for the promotion of investment in all
developing countries.

(1) OJ C 150 E, 30.5.2000, p. 79.
(2) Opinion of the European Parliament of 5 September 2000 (not
yet published in the Official Journal), Council Common Position
of 10 November 2000 (not yet published in the Official Journal)
and Decision of the European Parliament of ... (not yet published
in the Official Journal).
(3) OJ L 28, 6.2.1996, p. 2.

1.
The Commission shall take the steps needed to close
and liquidate the projects adopted under Regulation (EC)
No 213/96.

2.
Those steps shall include any action required, pursuant
to Regulation (EC) No 213/96 with the aim of liquidating the
existing portfolio, to provide monitoring, management and
auditing of operations for which the Commission has already
adopted a financing decision, including the amendment of
contracts already signed and the use of outside technical
assistance.

Article 2

As soon as possible and at the latest by 31 March 2001, the
Commission shall submit a report to the European Parliament
and to the Council on the instrument for supporting the
private sector in developing countries, followed, as soon as
possible, by a legislative proposal to ensure the future of that
instrument.

Article 3

This Regulation shall enter into force on the third day
following its publication in the Official Journal of the European
Communities.

It shall apply until 31 December 2001.

This Regulation shall be binding in its entirety and directly
applicable in all Member States.

Done at ...

For the European Parliament

For the Council

The President

The President

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STATEMENT OF THE COUNCIL’S REASONS

I.

BACKGROUND

1. On 14 February 2000, the Commission submitted to the Council a proposal for a regulation,
based on Article 179 (1) of the EC Treaty, laying down the conditions to close and liquidate
projects adopted by the Commission under Council Regulation (EC) No 213/96 on the
implementation of the European Communities investment partners Financial Instrument for
the countries of Latin America, Asia, the Mediterranean region and South Africa.

The activities in promoting Community investment in developing countries are carried out
under the budget headings B7-8 7 2, B7-8 7 2 A and A0-7 0 0 2.

2.

The European Parliament (after its first reading) delivered its opinion on 5 September 2000.

3. On 10 November 2000 the Council adopted its Common Position in accordance with

Article 251 of the EC Treaty.

II.

PURPOSE OF THE PROPOSAL

The objective of this proposal is to ensure the closing down and liquidation of projects adopted by
the Commission under Regulation (EC) No 213/96 after its expiry on 31 December 1999. In order
to ensure proper management and closure of these operations, technical assistance (technical
assistance offices and audits) as well as other expenditure require additional financing. After the
expiry of Regulation (EC) No 213/96 on 31 December 1999 no further financing had been given
for new operations.

III. ANALYSIS OF THE COMMON POSITION

1. General remarks

The Council has been able to accept two of the three amendments proposed by the European
Parliament (see point 2.2). Where the Council was unable to accept Parliament’s amendment it was
for practical reasons.

In its Common Position the Council has approved the wording of the Commission’s proposal and
Parliament’s amendments with the exception of Article 2. In its new Article 2, the Council brought
together both elements, the Commission’s report and Parliament’s amendment for a new legislative
proposal and put them in a realistic timetable.

2.

Specific comments

2.1. Parliament amendments adopted by the Council

The Council adopted in full the first two amendments which the Commission also accepted,
and in essence the Amendment 3, i.e. to ask the Commission to submit a legislative proposal.
The Commission, however, rejected this amendment.

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2.2. Parliament amendments not adopted by the Council

Taking into account that the Commission could not accept Parliament’s Amendment 3 for
practical reasons (deadline), the Council could not accept the form of presentation of this
amendment for the reason that it wanted:

— to combine with the requested legislative proposal also the submission of a report on the

financing instruments (see Article 2 of the Commission proposal), and

— to fix a timing which makes it possible for the Commission to establish the report (at the
latest by 31 March 2001) and to submit a legislative proposal (as soon as possible after
the report) to ensure the future of this instrument.

IV. CONCLUSIONS

The Council considers that its Common Position constitutes a balanced text to ensure the closing
down and liquidation of projects adopted by the Commission under Council Regulation (EC)
No 213/96 after its expiry on 31 December 1999. Considering the period to cover financial
arrangements (1 January 2000 to 31 December 2001) it reflects the need to meet the Community’s
commitments for proper management.