Council Regulation (EC) No 2666/2000 of 5 December 2000 on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and the Former Yugoslav Republic of Macedonia, repealing Regulation (EC) No 1628/96 and amending Regulations (EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and 1999/311/EC
Date: 2000-12-05
Institutions: Council of the European Union
Subjects: Central and Eastern Europe, EU programme, aid system, cooperation policy, higher education, non-refundable aid

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I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 2666/2000

of 5 December 2000

on assistance for Albania, Bosnia and Herzegovina, Croatia, the Federal Republic of Yugoslavia and
the Former Yugoslav Republic of Macedonia, repealing Regulation (EC) No 1628/96 and amending
Regulations (EEC) No 3906/89 and (EEC) No 1360/90 and Decisions 97/256/EC and 1999/311/EC

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 (1),

Whereas:

(1)

(2)

The Community provides assistance for Albania, Bosnia
and Herzegovina, Croatia, the Federal Republic of Yugo-
slavia and the Former Yugoslav Republic of Macedonia.

Most of this Community assistance is currently provided
under Council Regulation (EC) No 1628/96 of 25 July
1996 relating to aid for Bosnia and Herzegovina,
the Federal Republic of Yugoslavia and the
Croatia,
Former Yugoslav Republic of Macedonia (OBNOVA) (2)
and under Council Regulation (EEC) No 3906/89 of 18
December 1989 on economic aid to certain countries of
Central and Eastern Europe (PHARE) (3). This means that
the Community assistance is subject to different sets of
procedures, which encumbers management. In the inter-
ests of efficiency it is therefore desirable to establish a
single legal framework for this assistance, as requested
by the European Council at its meeting in Helsinki on
10 and 11 December 1999. It is therefore appropriate to
repeal Regulation (EC) No 1628/96 and to amend Regu-
lation (EEC) No 3906/89. However, in order to ensure
the continuity of the activities of the European Agency
for Reconstruction, the provisions of Regulation (EC) No
1628/96 which concern the establishment and opera-
tion of the Agency should be incorporated into a new
Regulation, which should enter into force on the date of
that repeal.

(1) Opinion delivered on 15 November 2000 (not yet published in the

Official Journal).

(2) OJ L 204, 14.8.1996, p. 1. Regulation as last amended by Regula-

(3)

(4)

(5)

(6)

(7)

(8)

(9)

tion (EC) No 2454/1999 (OJ L 299, 20.11.1999, p.1).

(3) OJ L 375, 23.12.1989, p. 11. Regulation as last amended by Regu-

lation (EC) No 1266/1999 (OJ L 161, 26.6.1999, p. 68).

confirmed that

The European Council, meeting in Lisbon on 23 and 24
March 2000,
its overall objective
remained the fullest possible integration of the countries
of the region into the political and economic main-
stream of Europe and that the stabilisation and associa-
tion process was the centrepiece of its policy in the
Balkans.

The European Council, meeting in Feira on 19 and 20
June 2000, recognised the countries concerned by the
stabilisation and association process to be potential
candidates for EU membership.

The existing Community assistance should be expanded
and redirected to adjust
to the European Union's
it
political objectives for the region and, particularly, to
contribute to the stabilisation and association process
and increase the responsibility of recipient countries and
entities in relation to that process.

To that end Community assistance will be focused
mainly on building up an institutional,
legislative,
economic and social framework directed at the values
and models subscribed to by the European Union and
on promoting a market economy, with due regard for
priorities agreed with the partners concerned.

A precondition for receiving assistance is that the recipi-
law,
ents respect democratic principles,
human and minority rights, fundamental freedoms and
the principles of international

the rule of

law.

The regional dimension of Community assistance should
be given special attention, with a view to stepping up
regional cooperation and supporting the European
Union's role as a driving force within the Stability Pact.

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.

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(10)

(11)

(12)

(13)

(14)

(15)

(16)

is properly implemented,

To make Community assistance more effective and
ensure it
the Commission
should adopt general guidelines, in accordance with the
management procedure laid down in this Regulation,
taking into account the objectives of reform of external
aid.

To promote cooperation within the region, provision
should be made for the candidate countries and, on a
case-by-case basis, the countries covered by the TACIS
and MEDA programmes to participate in the tendering
procedures and contracts.

Provision should be made for checks and for the protec-
tion of the Community's financial interests, inter alia by
enabling the Commission, including the European Fraud
Prevention Office (OLAF), and the Court of Auditors 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 the
European Communities' financial interests against fraud
and other irregularities (1) and Council Regulation (EC,
Euratom) No 2988/95 of 18 December 1995 on the
financial
protection of
interests (2).

the European Communities'

The Community assistance should be governed by a
strategy framework and by annual and multiannual
programming, which will be put to the management
committee set up by this Regulation for an opinion. This
will situate the assistance within a medium-term outlook
and will make it possible to ensure that it complements
and remains consistent with that of the Member States.

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 (3).

In the case of the Federal Republic of Yugoslavia, provi-
sion should be made for the Commission to be able to
delegate implementation of assistance programmes to
the European Agency for Reconstruction.

In the light of the scope of this Regulation, consequent
changes will need to be made to Council Regulation
(EEC) No 3906/89 of 18 December 1989 on economic
aid to certain countries of Central and Eastern Europe

(PHARE) (4), to Council Decision 97/256/EC of 14 April
1997 granting a Community guarantee to the European
Investment Bank against losses under loans for projects
outside the Community (Central and Eastern European
countries, Mediterranean countries, Latin American and
the Former Yugoslav
Asian countries, South Africa,
Republic of Macedonia and Bosnia and Herzegovina) (5),
to Council Decision 1999/311/EC adopting the third
phase of the trans-European cooperation scheme for
higher education (Tempus III) (2000 to 2006) (6) and to
Council Regulation (EEC) No 1360/90 of 7 May 1990
establishing a European Training Foundation (7).

(17)

The operations covered by this Regulation are part of
the Community's Western Balkans policy and are needed
to implement one of the Community's objectives.

(18)

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 assistance, hereinafter
referred to as ‘Community assistance’, to Albania, Bosnia and
Herzegovina, Croatia, the Federal Republic of Yugoslavia and
the Former Yugoslav Republic of Macedonia.

2.
The following shall be directly eligible for Community
assistance: the State, entities under United Nations jurisdiction
and administration, federal, regional and local bodies, public
and semi-public bodies,
the social partners, organisations
providing support to businesses, cooperatives, mutual societies,
associations, foundations and non-governmental organisations.

3.
Authorities established by the international community to
act as the civil administration in some areas, such as the High
Representative in Bosnia and Herzegovina and the United
Nations Interim Administration Mission in Kosovo (UNMIK),
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, except in the case of those entities' running
costs; where appropriate, such costs may draw on a grant
provided under Council Regulation (EC) No 1080/2000 of 22
May 2000 on support for the United Nations Interim Mission
in Kosovo (UNMIK) and the Office of the High Representative
in Bosnia and Herzegovina (OHR) (8).

The financial reference amount for the implementation of
the period 2000 to 2006 shall be

4.
this programme for
EUR 4 650 million.

The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial perspective.

(4) OJ L 375, 23.12.1989, p. 11. Regulation as last amended by Regu-

lation (EC) No 1266/1999 (OJ L 161, 26.6.1999, p. 68).

(5) OJ L 102, 19.4.1997, p. 33. Decision as last amended by Decision

98/729/EC (OJ L 346, 22.12.1998, p. 54).

(6) OJ L 120, 8.5.1999, p. 30. Decision as amended by Decision 2000/

460/EC (OJ L 183, 22.7.2000, p. 1).

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

(7) OJ L 131, 23.5.1990, p. 1. Regulation as last amended by Regula-

tion (EC) No 1572/98 (OJ L 206, 23.7.1998, p. 1).

(8) OJ L 122, 24.5.2000, p. 27.

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Article 2

1.
The main purpose of the Community assistance is to
support participation by the recipient countries in the stabilisa-
tion and association process.

2.

The Community assistance shall

inter alia be for:

(a) reconstruction, aid for the return of refugees and displaced

persons, and stabilisation of the region;

(b) the creation of an institutional and legislative framework to
underpin democracy,
law and human and
the rule of
minority rights, reconciliation and the consolidation of civil
society, the independence of the media and the strength-
ening of legality and of measures to combat organised
crime;

(c) sustainable economic development and market-economy-

orientated economic reform;

under the stabilisation and association process and priori-
ties identified and agreed with the partners concerned. Such
programmes shall describe the reforms to be carried out by
partners in priority sectors and include an assessment of
progress made in doing so. They shall give indicative
amounts (overall and for each priority sector) and set out
criteria for funding the programme concerned. They shall
be updated each year as necessary. They may be amended
in the light of experience and progress in implementing
stabilisation and association agreements, particularly as
regards regional cooperation;

(c) annual action programmes, based on the multiannual indic-
ative programmes referred to in point (b), shall be drawn
up for each country receiving Community assistance. They
shall set out, as precisely as possible, for a given opera-
tional year, the aims being pursued, the fields of action and
the budget provided. The annual action programmes shall
contain a detailed list of projects to be financed and specify
the relevant amounts.

(d) social development, with particular reference to poverty
and

education,
reduction,
training, and environmental rehabilitation;

teaching

equality,

gender

(e) the development of closer relations among recipient coun-
tries, between them and the European Union and between
them and countries which are candidates for accession to
the European Union,
in coordination with other instru-
ments for cross-border, transnational and regional trans-
boundary cooperation with non-member countries;

(f) fostering regional, transnational, cross-border and interre-
gional cooperation among the recipient countries, between
them and the European Union and between the recipient
countries and other countries of the region.

3.
The Community assistance shall be implemented by
financing investment and institution-building programmes in
accordance with the programming principles set out in the
general guidelines adopted by the Commission in accordance
with the procedure referred to in Article 10(2).

Article 3

Save in exceptional, duly substantiated cases, Community

1.
assistance shall be provided as follows:

(a) a strategic framework (‘country strategic paper’), for the
period 2000 to 2006, which shall serve to set long-term
objectives for assistance and priority fields of action in
recipient countries. For this purpose, due account shall be
taken of all relevant assessments. The strategic framework
shall be revised if exceptional events so require or in the
light of
the assessment provided for in
Article 12;

the results of

(b) on the basis of the strategic framework referred to in point
(a), multiannual indicative programmes shall be drawn up,
for
receiving
for
reflect priorities set
Community assistance. They shall

three-year periods,

each country

The strategic framework,

2.
indicative
programmes and the annual action programmes referred to in
paragraph 1 shall be adopted in accordance with the procedure
referred to in Article 10(2).

the multiannual

Any amendments shall be adopted in accordance with the
same procedure.

Article 4

1. Where Community assistance for the Federal Republic of
Yugoslavia is implemented by the European Agency for Recon-
struction,
in accordance with Council Regulation (EC) No
2667/2000 of 5 December 2000 on the European Agency for
Reconstruction (1):

(a) the strategic framework, multiannual indicative programme
and annual action programme referred to in Article 3
covering Community assistance
implemented by the
Agency shall be adopted in accordance with the procedure
referred to in Article 10(2). The utmost account shall be
taken of
the Agency's
Governing Board, in accordance with Article 2(2) of Regu-
lation (EC) No 2667/2000;

recommendations made by

(b) the draft annual action programmes shall be submitted to
the Commission by the Agency's Director. The Governing
Board of the Agency shall be consulted on the implementa-
tion of the annual action programme, as laid down in
Article 4 of Regulation (EC) No 2667/2000.

The procedure laid down in Article 10(2) shall also be
2.
the Federal
used to adopt programmes of assistance for
Republic of Yugoslavia which are not to be implemented by
the Agency and are therefore not included in the annual action
programme.

(1) See page 7 of this Official Journal.

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Article 5

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

2.
Community assistance shall also be subject to the condi-
tions defined by the Council in its Conclusions of 29 April
1997,
in particular as regards the recipients' undertaking to
carry out democratic, economic and institutional reforms.

Article 6

1.

Community assistance shall be in the form of grants.

Community financing may be used to cover expenditure
2.
on preparing, implementing, monitoring, checking and evalu-
ating projects and programmes and on information.

Community financing may be used for co-financing,
3.
which should be sought whenever feasible. Co-financing of
investment projects financed by guaranteed loans from the
European Investment Bank may, in exceptional cases, take the
form of interest rate subsidies.

4.
Community financing may cover the grant part of ad hoc
exceptional financial assistance decisions which are taken by
the Council on the basis of Article 308 of the Treaty.

Community financing may not be used for paying taxes,

5.
duties or charges or for acquiring immovable property.

Article 7

1.
The Commission shall implement the Community assis-
tance in accordance with the Council Financial Regulation of
21 December 1977 applicable to the general budget of the
European Communities (1).

2.
In taking financing decisions under this Regulation and
carrying out the assessments referred to in Article 12, the
Commission shall have regard to the principles of sound finan-
cial management, in particular economy and cost-effectiveness,
as laid down in the Financial Regulation.

3.
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 Regula-
tion and candidate countries for accession to the European
Union.

Participation by countries which are recipients under the TACIS
and MEDA programmes shall also be authorised by the
Commission on a case-by-case basis.

In the case of co-financing,

the Commission may
4.
authorise participation in invitations to tender and contracts by
nationals of other countries on a case-by-case basis.

The Commission shall provide information on invitations
5.
to tender, procurement, contracts and financing agreements, as
laid down in the Annex hereto.

Article 8

1.
Financing decisions and any agreements or contracts
resulting therefrom shall expressly provide for monitoring and
financial control by the Commission,
including OLAF, and
audits by the Court of Auditors,

if necessary on the spot.

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 Commis-
sion in accordance with the procedure referred to in Article
10(2) shall provide for adequate protection of the financial
interests of the Community as required by Regulation (EC,
Euratom) No 2988/95.

Article 9

1.
Financing decisions not covered by multiannual indicative
programmes and annual action programmes shall be individ-
ually adopted by the Commission in accordance with the
procedure referred to in Article 10(2).

2.
Decisions amending Decisions referred to in Article 10(1)
shall be adopted by the Commission where they do not
comprise substantial changes to the nature of the programmes
referred to in the said paragraph and, as regards the financial
element, where they do not exceed 20 % of the total amount
allocated for the programme in question, subject to a limit of
EUR 4 million. The CARDS Committee referred to in Article
10 shall be notified of all revised decisions.

Article 10

1.
The Commission shall be assisted by a management
committee, hereinafter referred to as ‘the CARDS Committee’.

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 Decision 1999/468/EC
shall be set at 45 days.

(1) OJ L 356, 31.12.1977, p. 1.

3.

The Committee shall adopt its rules of procedure.

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The Committee may examine

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

Article 11

In the interests of making the Community assistance
1.
cohesive and more efficient and complementary, the Member
States and the Commission shall exchange any relevant infor-
mation on the operations they intend to implement.

2.
In liaison with the Member States and on the basis of a
regular mutual exchange of information, including on the spot,
particularly as regards strategy papers, multiannual indicative
programmes and annual action programmes and the prepara-
tion of projects and monitoring of their implementation, the
Commission shall ensure effective coordination of the assis-
tance efforts made by the Community, including the EIB, and
by each Member State,
in order to make their cooperation
programmes more consistent and complementary. In addition,
it shall encourage coordination and cooperation with inter-
national
institutions, United Nations cooperation
programmes and other donors. Practical arrangements for
on-the-spot coordination shall be covered by guidelines to be
approved by the CARDS Committee.

financial

Article 12

to the European
Every year the Commission shall submit
Parliament
report on the
a progress
and the Council
Community assistance. That report shall contain information
on the action financed during the year and on the findings of
monitoring work and shall give an assessment of the results
achieved in the implementation of the strategic framework, the
multiannual
indicative programmes and the annual action
programmes referred to in Article 3(1).

Article 13

The Council shall

1.
December 2004.

review this Regulation before 31

For that purpose, not

the
2.
Commission shall submit to the Council an evaluation report,
together with proposals for the future of this Regulation and
for any amendments needing to be made to it.

later than 30 June 2004,

Article 14

1.

Regulation (EC) No 1628/96 is hereby repealed.

2.
In the Annex to Regulation (EEC) No 3906/89, the names
‘Bosnia and Herzegovina’, ‘Albania’, ‘Croatia’, ‘the Former Yugo-
slav Republic of Macedonia’ and ‘Yugoslavia’ shall be deleted.

Article 15

decision have been started but have not yet been completed at
the time of entry into force of this Regulation.

Article 16

The first paragraph of Article 1 of Regulation (EEC) No 1360/
90 shall be replaced by the following:

‘This Regulation hereby establishes the European Training
Foundation (hereinafter referred to as the “Foundation”),
whose objective shall be to contribute to the development
of the vocational training systems of:

— the countries of Central and Eastern Europe designated
as eligible for economic aid by the Council in Regula-
tion (EEC) No 3906/89 or in any subsequent relevant
legal act,

— the new independent States of the former Soviet Union
and Mongolia which are the beneficiaries of
the
programme to assist economic reform and recovery
pursuant to Regulation (Euratom, EC) No 1279/96 or
any subsequent relevant legal act,

— the Mediterranean non-member countries and terri-
tories which are the beneficiaries of the financial and
technical measures to accompany the reform of their
economic and social structures pursuant to Regulation
(EC) No 1488/96 or any subsequent relevant legal act,
and

— the countries which are beneficiaries under Regulation
(EC) No 2666/2000 (*) or any subsequent relevant legal
act.

Those countries shall be hereinafter referred to as the
“eligible countries”.

(*) OJ L 306, 7.12.2000, p. 1.’

Article 17

The second subparagraph of Article 1a(5) of Decision 97/
256/EC shall be replaced by the following:

‘Financial decisions
relating to this Decision shall be
adopted in accordance with the procedures laid down in
Regulation (EC) No 2666/2000 (*).

(*) OJ L 306, 7.12.2000, p. 1.’

Article 18

The first paragraph of Article 2 of Decision 99/311/EC shall
be replaced by the following:

‘Tempus III concerns the countries which are beneficia-
ries under Regulation (EC) No 2666/2000 (*) and the
new independent States of the former Soviet Union and
Mongolia mentioned in Regulation (EC, Euratom) No 99/
(which replaces the old TACIS programme).
2000 (**)
These countries are hereinafter referred to as “eligible
countries”.

Regulations (EEC) No 3906/89 and (EC) No 1628/96 shall
nevertheless remain applicable to projects and programmes for
which the procedures leading to the Commission financing

(*) OJ L 306, 7.12.2000, p. 1.
(**) OJ L 12, 18.1.2000, p. 1.’

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

It shall apply until 31 December 2006.

Article 19

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

Done at Brussels, 5 December 2000.

For the Council

The President

C. PIERRET

ANNEX

Information on invitations to tender, procurement, contracts and financing agreements referred to in
Article 7(5)

1. The Commission, acting in liaison with the Member States, shall provide all interested businesses, organisations and
their request, with the necessary documentation on the general aspects of
institutions in the Community, at
programmes referred to in this Regulation and the conditions for participation in those programmes, making
appropriate use of the Internet.

2. The Commission shall notify the CARDS Committee and, where appropriate, the Governing Board of the European
Agency for Reconstruction of the financing decisions adopted, which shall contain specific details of the contracts
anticipated, including their likely value, the procedure for awarding them and the dates envisaged for invitations to
tender. Those specific details shall be released on the Internet.

3. The results of invitations to tender, including information on numbers of tenders received as at the contract award date
and names and addresses of successful tenderers, shall be published in the Official Journal of the European Communities
and released on the Internet. The Commission shall supply the CARDS Committee and, where appropriate, the
Governing Board of the European Agency for Reconstruction, every three months, with specific detailed information
on contracts concluded in implementation of programmes and projects referred to in this Regulation.

4. The Commission shall forward financing agreements or similar documents to the CARDS Committee for information.