Regulation (EC) No 257/2001 of the European Parliament and of the Council of 22 January 2001 regarding the implementation of measures to promote economic and social development in Turkey
Date: 2001-01-22
Institutions: Council of the European Union, European Parliament
Subjects: EU financing, Türkiye, action programme, aid for restructuring, economic development, social development

9.2.2001

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Official Journal of the European Communities

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(Acts whose publication is obligatory)

REGULATION (EC) No 257/2001 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

regarding the implementation of measures to promote economic and social development in Turkey

of 22 January 2001

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
EUROPEAN UNION,

(6)

Having regard to the Treaty establishing the European
Community, and in particular Article 179 thereof,

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.

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

(7)

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

Whereas:

(1)

(2)

(3)

(4)

(5)

Relations between the European Union and Turkey are
based mainly on the Association Agreement of 12
September 1963 (3) and the decisions of the Association
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 infra-
structure and develop its manufacturing sector.

(8)

(9)

The Cardiff European Council on 15 and 16 June 1998
affirmed the importance it attached to the implementa-
tion 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.

conclusions of

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

(10)

(1) OJ C 408, 29.12.1998, p. 18 and
OJ C 311 E, 31.10.2000, p. 125.

(2) Opinion of the European Parliament of 2 December 1999 (OJ C
194, 11.7.2000, p. 48), Council Common Position of 13 June 2000
(OJ C 240, 23.8.2000, p. 25) and Decision of the European Parlia-
ment of 6 September 2000 (not yet published in the Official
Journal). Council Decision of 28 December 2000.

(3) OJ 217, 29.12.1964, p. 1.

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 obliga-
tions 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 prac-
tices and respect for fundamental human rights, and
more closely involve civil society in that process.

The European Parliament has adopted a number of reso-
lutions 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 situa-
tion 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 the European Parliament on the further
development of
relations with Turkey and on the
communication from the Commission 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).

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 (5).

(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; OJ C 107, 3.4.2000, p. 78.

(5) OJ L 184, 17.7.1999, p. 23.

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(11)

(12)

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 Commission (1),
for the budgetary authority during the annual budgetary
procedure.

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 minori-
ties, 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
must benefit above all
the population affected by
Turkey's development lag,

HAVE ADOPTED THIS REGULATION:

Article 1

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

Article 2

framework for

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

the implementation of

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,
local or
traditional communities, business support organisations, coop-
eratives and civil society, in particular associations, foundations
and non-governmental organisations.

including the customs administration,

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

freedoms and international

law,

The Commission shall pass information on its indicative
3.
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.

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

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 environment,
energy and transport, excluding the development of
nuclear power, especially in earthquake zones;

(b) promotion of industrial cooperation by methods including
support for diversification in industry and the establish-
ment of small and medium-sized enterprises;

(c) cooperation in telecommunications,
development and social services;

infrastructure, rural

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

(e) cooperation in protecting health;

(f) cooperation in the field of education and training;

(g) regional and cross-border cooperation;

(h) any form of cooperation seeking to defend and promote
democracy, the rule of
law, human rights, respect for
minorities and the protection and recognition of their
cultural
for measures seeking to
abolish capital punishment;

identity, and support

(i) any form of cooperation seeking to resolve the Kurdish

problem;

(j) cooperation on humanitarian issues;

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

(l) all forms of assistance aimed at promoting the develop-
relations between the European Union and

ment of
Turkey;

(m) promotion of cooperation between the two parties' public
administrations with a view to the approximation of legis-
lation and the training of staff, including customs officers.

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

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

(b) 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;

(c) 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 unemployment level.

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Article 5

the Financial Regulation of 21 December 1977 applicable to
the general budget of the European Communities (1).

Financial support under this Regulation shall take the

1.
form of grants.

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
training or other
technical assistance,
budget procedure,
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.

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

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) conservation and protection of the environment on the

basis of the principles of sustainable development;

(d) 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).

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.

Opportunities may be sought for cofinancing with other

5.
providers of funds, especially with Member States.

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

The necessary measures shall be taken to emphasise the
this

aid provided under

character of

the

6.
Community
Regulation.

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
the
Community and the Member States, and the development
of the operations already approved;

consideration by

(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.

8.
The Commission, in conjunction with the Member States,
may take any initiatives necessary for ensuring proper coordi-
nation with the other providers of funds involved.

Article 6

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.

All financing agreements or contracts concluded under
5.
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.

1.
The Commission shall examine, approve and administer
operations covered by this Regulation according to the budg-
etary procedures in force, and in particular those laid down in

8.

Supplies shall originate in the Member States or Turkey.

(1) OJ L 356, 31.12.1977, p. 1. Regulation as last amended by Regula-

tion (EC) No 2673/1999 (OJ L 326, 18.12.1999, p. 1).

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Article 7

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

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 Euro-
pean Parliament and to the Council during the first quarter of
each year. This report shall contain at least the following:

(a) a detailed summary of the operations financed during the

previous financial year;

(c) the forecasts for the programme and the operations to be

undertaken during the following financial year;

(d) a summary of any evaluations made,

including those

relating to specific operations;

(e) information on the bodies with which the agreements or

contracts have been concluded.

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.

The Commission shall submit
summary of the evaluations made, which the latter may,
necessary, examine.

to the MED Committee a
if

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

Article 11

Six months before the end of the three-year financial frame-
work, the Commission shall submit to the European Parliament
and the Council an overall assessment of
the operations
financed by the Community under this Regulation, together
with suggestions regarding the future of this Regulation and,
where necessary, proposals for amending it.

Article 12

(b) the planned indicative programme for the current financial
year and a statement of the progress made with regard to
the operations included therein;

This Regulation shall enter
into force on the third day
following that of 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 Brussels, 22 January 2001.

For the European Parliament

The President

N. FONTAINE

For the Council

The President

A. LINDH

(1) Council Regulation (EC) No 1488/96 of 23 July 1996 on financial
and technical measures
the reform of
economic and social structures in the framework of the Euro-Medi-
terranean partnership (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).

to accompany (MEDA)