Council Regulation (EC) No 2698/2000 of 27 November 2000 amending Regulation (EC) No 1488/96 on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership
Date: 2000-11-27
Institutions: Council of the European Union
Subjects: EU programme, Mediterranean third countries, economic development, financial cooperation, social development, technical cooperation

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2698/2000

of 27 November 2000

amending Regulation (EC) No 1488/96 on financial and technical measures to accompany (MEDA)
the reform of economic and social structures in the framework of the Euro-Mediterranean
partnership

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 (1),

Having regard to the Opinion of the European Parliament (2),

Whereas:

(1)

(2)

(3)

(4)

(5)

Article 15(6) of Regulation (EC) No 1488/96 (3) provides
that the Regulation will be reviewed by the Council
before 30 June 1999 and that the Commission shall, if
necessary, submit to the Council the amendments to be
made to it.

The Mediterranean region constitutes a priority area for
the European Union and the political, economic and
social development of the Mediterranean partners is a
challenge of ever increasing proportions.

It is important to pursue and intensify the cooperation
launched within the Euro-Mediterranean partnership
which was established by the Barcelona Declaration of
27 November 1995.

New Euro-Mediterranean Association Agreements are
now starting to come into force and their preparation
and implementation require
adjustment
efforts by the Mediterranean partners. These efforts
should be supported by the Community.

important

Over the period 1995 to 1998 Regulation (EC) No
1488/96 has been implemented satisfactorily but it is
now necessary to streamline decision-making procedures
in order to permit more efficient implementation of
Community assistance.

(1) OJ C 89 E, 28.3.2000, p. 4.
(2) Opinion delivered on 6 September 2000 (not yet published in the

Official Journal).

(3) OJ L 189, 30.7.1996, p. 1. Regulation as last amended by Regula-

tion (EC) No 780/98 (OJ L 113, 13.4.1998, p. 3).

(6)

(7)

(8)

(9)

(10)

(11)

Indicative programming should therefore express more
clearly the envisaged impact of planned MEDA funded
operations in the context of Mediterranean partners'
reform processes and the establishment of the Euro-
Mediterranean partnership.

Strategy papers and the national and regional indicative
programmes should define the main objectives of, the
guidelines for, and the priority sectors of Community
support.

financing
The introduction of national and regional
plans based on the indicative programmes facilitates the
streamlining of decision-making procedures.

interests (4)

Council Regulation (EC, Euratom) No 2988/95 of 18
the European
December 1995 on the protection of
a
establishes
financial
Communities'
common legal
the
the fields of
framework for all
Communities' own resources and expenditure. 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 the
European Communities' financial interests against fraud
and other irregularities (5) applies to all areas of the
Communities' activity without prejudice to the provi-
sions of Community rules specific to the different policy
areas.

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 (6).

The Commission and the European Investment Bank are
committed to ensuring further improvement of their
collaboration on the implementation of risk capital
operations and interest rate subsidies.

(4) OJ L 312, 23.12.1995, p. 1.
(5) OJ L 292, 15.11.1996, p. 2.
(6) OJ L 184, 17.7.1999, p. 23.

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(12) A financial reference amount within the meaning of
point 34 of the Interinstitutional Agreement of 6 May
1999 between the European Parliament, the Council and
the Commission on budgetary discipline and improve-
ment of the budgetary procedure (1) is included in this
thereby
Regulation for
affecting the powers of
the budgetary authority as
defined by the Treaty.

its entire duration, without

(13)

(14)

It is therefore necessary to amend Regulation (EC) No
1488/96.

The Treaty has not provided, for the adoption of this
Regulation, powers other than those of Article 308,

HAS ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1488/96 is amended as follows:

1. Article 1(1) shall be replaced by the following:

The Community shall

‘1.
implement measures in the
framework of the principles and priorities of the Euro-
Mediterranean partnership to support
the efforts that
Mediterranean non-member countries and territories listed
in Annex I (hereinafter referred to as “Mediterranean part-
ners”) will undertake to reform their economic and social
structures, improve conditions for the underprivileged and
mitigate any social or environmental consequences which
may result from economic development.’;

2. the first subparagraph of Article 1(3) shall be replaced by

the following:

‘3.
The financial reference amount for the implementa-
tion of this programme for the period 2000 to 2006 shall
be EUR 5 350 000 000.’;

3. Article 2(2) shall be replaced by the following:

‘2.
These support measures shall be implemented taking
account of the objective of achieving sustainable develop-
ment leading to long-term stability and prosperity. Partic-
ular attention shall be paid to the economic, social and
environmental impact of economic transition, to regional
and subregional cooperation and to building the capacity
of the Mediterranean partners to integrate into the world
economy. The objectives and details of
the relevant
procedures shall be as set out in Annex II.’;

4. Article 4 shall be replaced by the following:

‘Article 4

1.
The Commission shall, in liaison with the Member
States and on the basis of a reciprocal and regular
exchange of information, including exchange of informa-
tion on the spot, especially with regard to strategy papers,
the national indicative programmes (NIP), annual financing

(1) OJ C 172, 18.6.1999, p. 1.

plans, and the preparation of projects and monitoring of
their implementation, ensure the effective coordination of
the assistance efforts undertaken by the Community,
including the European Investment Bank (hereinafter
referred to as “the Bank”), and individual Member States, in
order to increase the coherence and complementarity of
their cooperation programmes. In addition, the Commis-
sion shall promote coordination and cooperation with
international
the United Nations
institutions,
cooperation programmes and other donors. The specific
arrangements for on-the-spot coordination shall be the
subject of guidelines to be approved by the Committee
provided for in Article 11.

financial

2.
The measures referred to in this Regulation may be
adopted by the Community either independently or in the
form of co-financing with the Mediterranean partners
themselves or with public or private bodies of the Member
States and the Bank, on the one hand, or multilateral
bodies or third countries, on the other. The Commission
shall, where appropriate, promote such co-financing on
the basis of a reciprocal and early exchange of information
with the Member States.’;

5. paragraphs 2 and 3 of Article 5 shall be replaced by

paragraphs 2 to 6 as follows:

‘2.
Strategy papers covering the period 2000 to 2006
shall be established at national and regional level, in liaison
with the Bank. These strategy papers shall have the
purpose of defining the long-term objectives of coopera-
tion and of identifying priority areas of intervention. To
this end, due account shall be taken of all relevant evalu-
ations, a problem-oriented analysis shall be used and cross-
cutting issues shall be integrated. As far as possible, imple-
mentation benchmarks will be developed in order to facili-
tate the evaluation of the attainment of the objectives of
cooperation. If required by unforeseeable circumstances, or
following the result of the review referred to in Article
15(4), the strategy papers shall be revised.

national

Indicative

programmes

regional
3.
covering three-year periods shall be based on the corre-
sponding strategy papers. They shall be established at
national and regional level in liaison with the Bank, and
they may include, respectively, interest rate subsidies and
risk capital.

and

They shall take into account the priorities identified with
the Mediterranean partners, including the conclusions of
the economic dialogue.

The programmes shall define the main objectives of, the
guidelines for, and the priority sectors of, Community
support in the areas referred to in Section II of Annex II,
together with indicators
the
for
programmes. The programmes shall
include indicative
amounts (overall and by priority sector) and list the criteria
for funding the programme concerned.

evaluation of

the

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The programmes shall be updated annually, as necessary.
They may be amended in the light of experience acquired,
or the progress achieved by the Mediterranean partners as
regards structural reforms, macroeconomic stabilisation,
industrial development and social advancement, or the
outcome of cooperation under the new Association Agree-
ments. These programmes shall describe the reforms to be
implemented by the partners in the priority sectors and
shall
include an evaluation of progress made in this
respect.

4.
Financing plans shall be based on the indicative
programmes referred to in paragraph 3 and, as a rule, be
adopted annually. They shall be established at national and
regional level in liaison with the Bank. Projects relating to
interest
shall be included in national
financing plans. Projects relating to risk capital shall be
included in regional financing plans.

rate subsidies

The plans shall include a list of the projects to be financed.
Each project shall be examined on its merits as a compo-
nent part of the financing plan as a whole. The contents of
the plans shall be described in sufficient detail so as to
allow their adoption in accordance with the procedure set
out in Article 11(2).

The Commission,

5.
in liaison with the Bank, shall
ensure that programming of measures concerning interest-
rate subsidies and risk capital is complementary to, and
coherent with, the national and regional strategy papers,
indicative programmes and financing plans. The Bank shall
ensure, at the stage of implementation, the conformity of
the measures with this Regulation and with the decisions
taken thereunder.

Projects relating to interest-rate subsidies shall, as a rule, be
incorporated by the Commission, on the basis of
proposals made by the Bank, into the national financing
plans, as appropriate.

Projects relating to risk capital shall be incorporated by the
Commission, on the basis of proposals made by the Bank,
into a regional financing plan, as appropriate. The projects
shall take the form of a risk capital facility, consisting of
an allocation for financing risk capital operations over a
multiannual period.

Financing decisions shall be based on the corre-
the projects do not

6.
sponding indicative programme if
form part of a financing plan.’;

6. Article 6 shall be amended as follows:

(a) the last sentence of paragraph 1 shall be deleted;

(b) the following subparagraph shall be added to para-

graph 1:

‘Loans from the Bank carrying interest rate subsidies
shall be denominated and paid in euro. The interest
rate applicable shall be set for each payment, taking
account of the financial characteristics of the operation
in question; the subsidy rate applied to each payment
shall be half the interest rate applicable to the payment

in question, although this subsidy rate shall not exceed
the nominal rate of 3 %.’;

(c) the first subparagraph of paragraph 3 shall be replaced

by the following:

‘3.
Financing decisions and any financing agree-
ments and contracts resulting therefrom shall provide,
inter alia, for supervision and financial control by the
Commission (including the European Anti-fraud Office
(OLAF)), including on-the-spot checks and inspection
in conformity with Regulation (Euratom, EC) No
2185/96 (*), and audits by the Court of Auditors,
where appropriate, to be carried out on the spot. The
Commission shall take measures in accordance with
the procedure set out in Article 11(2),
in order to
provide for adequate protection of the financial inter-
ests of the European Community in conformity with
Regulation (EC, Euratom) No 2988/95 (**).

(*) OJ L 292, 15.11.1996, p. 2.
(**) OJ L 312, 23.12.1995, p. 1.’;

(d) in paragraph 4, a second subparagraph shall be

inserted as follows:

‘Risk capital shall be used primarily to strengthen
the private sector, and in particular to reinforce the
shall add
financial
value clearly, by offering financial products and
terms that are not available locally.’;

in MEDA countries.

sector

It

(e) in paragraph 4,

subparagraph

third
following:

the introductory wording of
by

replaced

shall

be

the
the

‘Risk capital provided and managed by the Bank
may in particular take the form of:’;

7. Article 7 shall be amended as follows:

(a) the first

subparagraph of paragraph 1 shall be

replaced by the following:

‘1. Measures under
this Regulation may cover
expenditure on imports of goods and services and
local expenditure needed to carry out
the projects
and programmes. Direct budgetary support in favour
the beneficiary partner may also be covered to
of
in
support agreed programmes of economic reform,
structural
particular
adjustment, as referred to in Annex II, Part
I(b).
Taxes, duties and charges shall be excluded from
Community financing.’;

through sectoral

facilities

for

(b) paragraph 2 shall be replaced by the following:

in

Costs

auditing

incurred

identifying,
and

preparing,
‘2.
managing, monitoring,
controlling
programmes or projects may also be covered. This
may include costs related to technical and adminis-
trative assistance when they are to the mutual
benefit of the Commission and the beneficiaries of
the activity and do not constitute the permanent
tasks of the public service.’;

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8. Article 8 shall be amended as follows:

(a) the last indent of paragraph 2 shall be deleted;

(b) paragraphs 4 and 5 shall be

replaced by the

following:

and

to all

The Commission shall provide,

in liaison with
‘4.
interested firms,
Member States, on request,
organisations
the
throughout
institutions
Community, documentation on the general aspects
of the MEDA programmes and the requirements for
participation in the programmes, making appropriate
use of the Internet.

referred to in Article
5.
Financing conventions
include indications
9(6) or financing proposals shall
including the esti-
of the contracts to be expected,
mated values, the procedure for awarding them and
the planned dates for the invitations to tender.’;

(c) paragraph 7 shall be replaced by the following:

the

The

invitations

results of

to tender,
‘7.
including information on the number of
received
tenders, the date of the award of the contract, the
tenderers,
name and the address of
shall be published in the Official Journal of the Euro-
pean Communities and released on the Internet. The
Commission shall provide the Committee provided
for in Article 11, every six months, with specific
detailed information on the contracts concluded in
implementation of MEDA programmes and projects.’;

the successful

9. Article 9 shall be replaced by the following:

‘Article 9

The Commission shall forward for information its
1.
overall financial programme planning and its underlying
reasoning in the context of
indi-
cating in particular the total amount of the national and
regional indicative programmes, as well as the allocation
the
by beneficiary country and by priority sector of
overall amount adopted within those programmes.

the strategy papers,

The

papers,

strategy

2.
programmes,
financing plans and any amendment to them shall be
adopted by the Commission in accordance with the
procedure laid down in Article 11(2).

indicative

3.
Financing decisions that are not covered by the
financing plans shall be adopted
national or regional
individually by the Commission in accordance with the
procedure laid down in Article 11(2), subject to para-
graph 5 of this Article.

4.
Decisions amending the financing decisions referred
to in paragraph 3 shall be taken by the Commission
where they do not entail any substantial amendments or
additional commitments in excess of 20 % of the orig-
inform the
inal commitment. The Commission shall

Committee referred to in Article 11 immediately of any
such decisions.

5.
Financing decisions not exceeding EUR 2 000 000
shall be adopted by the Commission if they form part
of an overall allocation. An overall allocation shall be
adopted in accordance with the procedure laid down in
Article 11(2). The Committee provided for in Article 11
shall be informed systematically and promptly, and in
any event before its next meeting, of financing decisions
for measures not exceeding EUR 2 000 000.

6. Without prejudice to Article 106 of the Financial
Regulation of 21 December 1977 applicable to the
general budget of the European Communities (*), (herein-
after referred to as “the Financial Regulation”), financing
conventions shall be forwarded for information to the
members of the Committee provided for in Article 11
two weeks before they are signed.

7.
The further procedure laid down in Article 12
shall be applied in relation to interest-rate subsidies for
loans granted by the Bank for projects financed in the
field of environment. The further procedure laid down
in Article 13 shall be applied in relation to risk capital.

(*) OJ L 356, 31.12.1977, p. 1. Regulation as

last
amended by Regulation (EC, ECSC, Euratom) No 2673/
1999 (OJ L 326, 18.12.199, p. 1).’;

10. Article 10(2) shall be replaced by the following:

assessments

In financing decisions taken under this Regulation
‘2.
and the
and evaluations mentioned in
Article 15, the Commission shall abide by the principles
of sound financial management and, in particular, those
of economy and cost-effectiveness referred to in the
Financial Regulation.’;

11. Article 11 shall be amended as follows:

(a) paragraphs 1, 2, and 3 shall be replaced by the

following:

A management committee shall be established
‘1.
(hereinafter referred to as “the MED Committee”). A
representative of
in the
the Bank shall
proceedings without a right to vote.

take part

2. Where reference is made to this paragraph,
Articles 4 and 7 of Decision 1999/468/EC shall
apply.

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

(b) paragraph 5 shall be replaced by the following:

The Committee shall adopt its rules of proce-
in accordance with

‘5.
dure by qualified majority,
Article 205(2) of the Treaty.’;

(c) paragraph 7 shall be deleted;

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12. Article 12 shall be replaced by the following:

‘Article 12

14.

in Article 14(3) and (4) the reference to Article 148(2)
of the Treaty shall be replaced by a reference to Article
205(2) of the Treaty;

The Bank shall communicate to the Commission
1.
the proposed project relating to interest-rate subsidies
either for incorporation into a financing plan or for
adoption as an individual financing decision, as provided
for in Article 9(2) and (3) respectively. The Commission
shall verify the conformity of the proposed project with
this Regulation and the relevant decisions taken there-
under.

The Commission shall communicate to the Bank
2.
each decision relating to interest rate subsidies, whether
adopted as
an individual
financing decision.

financing plan or

as

a

In accordance with the decision referred to in
3.
paragraph 2,
the Bank, where the decision grants the
interest rate subsidy, may grant the corresponding loan
with the said subsidy, subject to a positive opinion of
the
the Committee referred to in Article 14 and of
Commission representative therein.

The Bank shall

4.
ingly.’;

inform the Commission accord-

13. Article 13 shall be replaced by the following:

‘Article 13

1.
The Bank shall communicate to the Commission
the proposed project relating to risk capital in the form
of a risk capital facility for incorporation into a regional
financing plan. The Commission shall
the
conformity of the terms of this project with this Regula-
tion and the relevant decisions taken thereunder.

verify

The Commission shall communicate to the Bank
to Article 9(2) on a
its

2.
each decision adopted pursuant
regional
implementation.

financing plan including risk capital

for

implementing

On this basis,

submit
to the
3.
the Bank shall
for its opinion,
Committee referred to in Article 14,
risk capital
the
individual operations
project envisaged within a regional financing plan. The
Commission
that
Committee the position of his institution on the opera-
tion concerned and in particular on its conformity with
the regional financing plan.

representative

convey

shall

to

15. Article 15 shall be replaced by the following:

‘Article 15

The Commission shall,

1.
together with the Bank,
examine progress achieved in implementing the meas-
ures undertaken pursuant
to this Regulation and shall
submit to the European Parliament and the Council an
annual report, no later than 30 June of the following
year. The report shall contain information on the meas-
ures financed during the year, with regard for due confi-
dentiality, as well as
information on the results of
monitoring activities and provide an assessment of the
the strategy
results obtained in the overall context of
papers.

2.
each year of
year,

The Commission shall

the budgetary execution of

inform the Member States
the previous

in terms of commitments and payments.

3.
The Commission and the Bank shall evaluate at
mid-term and ex-post their respective projects and main
sectors of
intervention in order to determine whether
the objectives have been achieved and to establish guide-
lines for increasing the effectiveness of future activities.
The evaluation reports, with regard for due confiden-
tiality, shall be made available to the MED Committee as
well as
to the European Parliament. For operations
managed by the Bank, the reports shall be made avail-
able to the MED Committee.

Every three years the Commission shall,

4.
together
with the Bank, produce an overall evaluation report of
the assistance already provided to the Mediterranean
partners,
including the effectiveness of the programmes
and the review of the strategy papers. This report shall
be presented to the MED Committee forthwith for
discussion.

The Council will review this Regulation before 30
5.
June 2006. To that end, the Commission shall submit to
the Council before 31 December 2005 an evaluation
report accompanied by proposals regarding the future of
this Regulation and, if necessary, the amendments to be
made to it.’;

16. Annex II

to Regulation (EC) No 1488/96 shall be

replaced by the Annex to this Regulation.

On this basis, and subject to a positive opinion of
4.
the
the Committee referred to in Article 14 and of
risk
the individual
Commission representative therein,
capital operations shall be submitted to the Bank for
appropriate measures.

Article 2

The Bank shall

5.
ingly.’;

inform the Commission accord-

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

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

Done at Brussels, 27 November 2000.

For the Council

The President

L. FABIUS

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ANNEX

‘ANNEX II

Objectives and rules for the implementation of Article 2

I.

(a) Support for economic transition and the establishment of a Euro-Mediterranean free-trade area shall include in

particular:

— job creation and private sector development,

including improvement of the business environment and

support for SMEs,

— the opening-up of markets, promotion of investment, industrial cooperation and trade between the European
Community and the Mediterranean partners, as well as among the Mediterranean partners themselves,

— upgrading of economic infrastructure, possibly to include the financial and taxation systems.

(b) Operations in support of reform programmes of the partners are implemented on the basis of the following

principles:

— the support programmes shall be designed to restore or, as the case may be, consolidate the major financial
balances and to create an economic environment favourable to accelerated growth, while at the same time
seeking to improve the well-being of the population,

— the support programmes shall also contribute to reforms in the key sectors with a view to the creation of a

free trade area with the European Community,

— the support programmes shall be adapted to the particular situation of each country and take account of

economic and social conditions,

— the support programmes shall lay down measures intended, in particular, to accompany, as regards social
conditions and employment, economic transition and the accomplishment of a Euro-Mediterranean free trade
area, and to alleviate the negative effects which this process may have on social conditions and employment,
especially for the most underprivileged sections of the population,

— disbursement of the support will be implemented in tranches in the form of direct budgetary support
according to the compliance with the objectives and/or sectoral targets agreed within the support programme.

The following eligibility criteria must be satisfied:

— the country concerned must undertake a reform programme approved by the Bretton Woods institutions or
implement programmes recognised as analogous, in coordination with those institutions, but not necessarily
financially supported by them,

in accordance with the scope and effectiveness of the reforms,

— account must be taken of the economic situation of the country, at the macroeconomic level, (indebtedness,
cost of debt-servicing, the balance of payments, the budget situation, the monetary situation, the level of per
capita income and the unemployment level) and at the level of sectoral reforms, with a view to creating a free
trade area with the European Community.

II. Support for sustainable economic and social development shall

include in particular:

— the participation of civil society and populations in the planning and implementation of development measures,

— the improvement of social services, especially in the areas of health, family planning, water supplies, sanitation

and housing,

— the promotion of wide and equitable sharing of the fruits of growth, paying particular attention to the objectives
and targets agreed at UN summits concerning the fight against poverty and incorporated in the international
development targets,

— harmonious and integrated rural development and the improvement of urban living conditions,

— reinforced cooperation concerning agriculture, particularly as regards quality and standards,

— reinforced cooperation concerning fisheries and the sustainable exploitation of marine resources,

— protection and improvement of the environment, particular consideration being given to the precautionary and
the preventive action principles in supporting economic development through reinforced environmental coopera-
tion,

— upgrading of economic infrastructures, particularly in the sectors of transport, energy, rural and urban develop-
ment, strengthening activities related to the information society, information technology and telecommunications,

— integrated development of human resources to complement Member States' programmes, notably with regard to
continuing vocational training in the context of industrial cooperation, and improvement of the potential for
scientific and technological research,

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— strengthening democracy, respect for, and defence of, human rights, in particular through non-governmental

organisations in the European Community and the Mediterranean partners,

— cultural cooperation and youth exchanges,
— cooperation and technical assistance in order to strengthen cooperation in the area of migrations and combating

illegal migration,

including repatriation of illegal residents,

— cooperation and technical assistance in combating organised crime, including illegal drug trafficking and traf-

ficking in human beings,

— the development of cooperation in areas relating to the rule of law, such as cooperation in judicial and criminal
matters, the strengthening of institutions which guarantee the independence and effectiveness of the judicial
system, the training of national security services and civil protection.

III. Regional, subregional and cross-border cooperation shall be supported in particular by:

(a) establishing and developing structures for regional cooperation between the Mediterranean partners, and between

them and the European Union and its Member States;

(b) — establishing the physical infrastructure necessary for regional trade, including transport, communications and

energy,

— improvement of the regulatory framework and small-scale infrastructure projects in the context of border-

crossing facilities,

— cooperation on the level of large geographic regions as well as measures complementary to those undertaken
in this field within the European Community, including support for connection between the transport and
energy networks of the Mediterranean partners and the trans-European networks;

(c) other regional activities including the Euro-Arab dialogue;

(d) exchanges between civil society in the European Community and the Mediterranean partners; in this context,

decentralised cooperation will:

— have as its objective to identify the non-governmental beneficiaries of Community aid,
— concentrate particularly on the networking of universities and researchers, local communities, associations,
political science foundations, trade unions and non-governmental organisations, the media, private business
institutions in the widest sense, as well as the other bodies listed in point IV.
and cultural

The programmes must concentrate on promoting the participation and the emergence of civil society within the
partner countries, in particular by encouraging information between networks and durable links between network
partners.

IV. Good governance shall be promoted by supporting key institutions and key protagonists in civil society such as local
authorities, rural and village groups, mutual-aid associations, trade unions, the media and organisations supporting
business, and by assisting in the improvement of the capacity of the public administration to develop policies and
manage their implementation.

V. Measures taken under this Regulation shall take into account analyses of the needs and potential of women and men
in economic and social life so as to include gender aspects in the programming and implementation of development
cooperation. Special

importance shall be attached to education and the creation of jobs for women.

The measures shall also take account of the need to promote education and the creation of jobs for young people in
order to facilitate their social

integration.

VI. The activities financed under this Regulation shall mainly take the form of technical assistance, training, institution-
building,
information, seminars, studies, projects for investment in micro-enterprises, small and medium-sized
undertakings and infrastructures and action designed to highlight the Community nature of the assistance. Recourse
should be had to decentralised cooperation where this may prove effective. Risk-capital operations and interest-rate
subsidies will be financed in collaboration with the Bank.

VII. Due regard shall be paid to environmental considerations in the preparation and implementation of activities

financed by means of this Regulation.’