Council Regulation (EC) No 381/2001 of 26 February 2001 creating a rapid-reaction mechanism
Date: 2001-02-26
Institutions: Council of the European Union
Subjects: EU aid, EU financing, cooperation policy, development aid, non-governmental organisation, state of emergency

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(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 381/2001

of 26 February 2001

creating a rapid-reaction mechanism

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)

Community policies in several of the world's regions
cover development aid, macrofinancial aid, aid for
economic, regional and technical cooperation, aid for
reconstruction, aid for refugees and displaced persons
and aid for operations to support the consolidation of
democracy and the rule of law, respect for human rights
and fundamental freedoms.

The aims of aid and cooperation programmes and/or the
conditions for their proper execution may be jeopar-
dised or directly affected by, inter alia, the emergence of
situations of crisis or conflict, by impending or ongoing
threats to law and order, to the security and safety of
individuals.

In the report which it adopted on developing the Euro-
pean Union's non-military crisis-management capability,
the European Council meeting in Helsinki on 10 and 11
December 1999 stressed in particular
rapid
financing mechanisms such as the creation by the
Commission of a Rapid Reaction Fund should be set up
to allow the acceleration of the provision of finance to
support EU activities, to contribute to operations run by
other
international organisations and to fund non-
governmental organisation (NGO) activities, as appro-
priate.

that

Accordingly, it is important that provision be made for a
mechanism that will underpin existing Community poli-
cies and programmes and enable the Community to take
urgent action to help re-establish or safeguard normal
conditions for the execution of the policies undertaken,
in order to preserve their effectiveness.

(1) OJ C 311 E, 31.10.2000, p. 213.
(2) Opinion delivered on 17 January 2001 (not yet published in the

Official Journal).

(5)

(6)

(7)

(8)

(9)

Such a mechanism must in particular,
in accordance
with accelerated decision-making procedures, facilitate
the mobilisation and rapid deployment of specific finan-
cial resources.

the

external

coherence of

The Council and the Commission are responsible for
activities
ensuring the
conducted by the European Union in the context of its
external relations, security, economic, social and devel-
opment policies.
the
European Council also emphasised that in order to be
able to respond more rapidly and more effectively to
emerging crisis situations, the Union needs to strengthen
the responsiveness and efficiency of its resources and
tools, as well as their synergy.

In the abovementioned report,

Activities covered by Council Regulation (EC) No 1257/
96 of 20 June 1996 concerning humanitarian aid (3),
(‘ECHO Regulation’) should not be funded under this
Regulation.

There is a need for maximum transparency in all matters
concerning the implementation of
the Community's
financial assistance as well as proper control of the use
of appropriations.

The protection of the Community's financial
interests
and the fight against fraud and irregularities are taken
account of in this Regulation.

(10)

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

HAS ADOPTED THIS REGULATION:

Article 1

A mechanism is created, hereinafter referred to as ‘the Rapid
Reaction Mechanism’, designed to allow the Community to
respond in a rapid, efficient and flexible manner, to situations
of urgency or crisis or to the emergence of crisis, under the
conditions defined by this Regulation.

(3) OJ L 163, 2.7.1996, p. 1.

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Article 2

1.
the
The Rapid Reaction Mechanism builds upon all
existing Community legal instruments listed in the Annex to
this Regulation.

2.
Actions which under normal circumstances fall within all
the regulations and programmes listed in the Annex may be
undertaken in the context of this Regulation if:

(a) the action is intended to be immediate and cannot be
launched within a reasonable time limit under the existing
legal

in view of the need to act rapidly;

instruments,

(b) the action is limited in time, as in accordance with the

provisions of Article 8.

3.
By derogation from paragraph 2, the activities covered by
the ECHO Regulation, and eligible for funding thereunder, may
not be funded under this Regulation.

In particular security or crisis-management circumstances, the
Commission may, however, decide that intervention by means
of
the Rapid Reaction Mechanism is more appropriate if
combined with ECHO action, as necessary. In such cases, close
coordination shall be established in order to achieve optimal
overall coherence.

The Council may, acting by qualified majority on a

4.
proposal from the Commission, amend the Annex.

Article 3

1.
The Rapid Reaction Mechanism may be triggered when in
the beneficiary countries concerned there occur situations of
crisis or emerging crisis, situations posing a threat to law and
order, the security and safety of individuals, situations threat-
ening to escalate into armed conflict or to destabilise the
country and where such situations are likely to jeopardise the
beneficial effects of assistance and cooperation policies and
programmes,
their effectiveness and/or conditions for their
proper implementation.

2.
Actions of a civilian nature which fall within the scope of
all areas of intervention of legal instruments listed in the Annex
may be undertaken under the Rapid Reaction Mechanism to
preserve or re-establish in situations of crisis or emerging crisis,
the conditions of stability essential to the proper implementa-
tion and success of these aid, assistance and cooperation poli-
cies and programmes.

Article 4

1.
Action under the Rapid Reaction Mechanism shall be
decided by the Community in accordance with the provisions
of this Regulation.

It shall be implemented by the Commission in accordance with
the budgetary and other procedures in force, including those
laid down in Articles 116 and 118 of the Financial Regulation
of 21 December 1977 applicable to the general budget of the
European Communities (1).

2. Where the Commission intends to take action under this
Regulation, and before taking a decision, it shall inform the
Council thereof forthwith. In its subsequent implementation of
the action, the Commission shall duly take into account the
approach adopted by the Council, in the interests of the cohe-
sion of EU external activities.

Article 5

Community financing under this Regulation shall take the

1.
form of grants.

The interventions covered by this Regulation shall be

2.
exempt from taxes, charges, duties and customs duties.

Article 6

1.
Implementing partners eligible under this Regulation may
the Member States or of beneficiary
include authorities of
countries and their agencies, regional and international organ-
isations and their agencies, NGOs and public and private oper-
ators with appropriate specialised expertise and experience.

2.
The Commission may conclude financial agreements or
framework agreements with relevant government agencies,
international organisations, NGOs and public or private opera-
tors on the basis of their ability to carry out rapid interventions
In situations where unique personal
in crisis management.
expertise is needed, or where the credibility of the operation
and the confidence of the parties is linked to a specific person
or organisation, the Commission may sign contracts with indi-
vidual organisations or operators, even if no framework agree-
ment has been previously concluded.

3.
After a financing Decision has been taken by the
Commission in accordance with Article 4 and as soon as
practically possible, a financial agreement shall be concluded
with NGOs and public and/or private operators which have
been chosen for conducting the intervention, on the basis of
the respective framework agreements.

Non-governmental organisations eligible for

4.
financial
agreements with a view to the implementation of interventions
under this Regulation shall meet the following criteria:

(a) be non-profit-making autonomous organisations;

(b) have their main headquarters in a Community Member
State or in the third country in receipt of Community aid.

In exceptional cases,
another third country.

their headquarters may be located in

5. When determining a private operator's or NGO's suit-
ability for Community funding, account shall be taken of the
following factors:

(a) its administrative and financial management capacities;

(b) its technical and logistical capacity in relation to the

urgency of planned operations;

(c) its experience in the field in question;

(d) its readiness to take part, if need be, in any specific coordi-
nation system to be set up for conducting the intervention;

(1) OJ L 356, 31.12.1977, p. 1. Regulation as last amended by Regula-
tion (EC, ECSC, Euratom) No 2673/1999 (OJ L 326, 18.12.1999,
p. 1).

(e) its record and guarantee of impartiality in the implementa-

tion of the tasks assigned to it.

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Article 7

1.
All financing contracts or agreements concluded under
this Regulation shall provide for the Commission and the Court
of Auditors to conduct on-the-spot checks according to the
rules in force.

the objectives have been achieved and if necessary to adopt
guidelines for improving the effectiveness of future interven-
tion. Where required,
this assessment shall also cover the
follow-up to the actions in the context of existing Community
regulations and programmes. The Commission shall inform the
Council of the results of this assessment without delay.

2.
The Commission may carry out on-the-spot checks and
inspections in conformity with 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). The measures taken by
the Commission shall provide for adequate protection of the
financial
the Community in conformity with
Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995, on the protection of the European Communi-
ties' financial

interests of

interests (2).

Article 8

1.
Each year the budgetary authority shall set an overall
annual ceiling for the funding of interventions provided for
under
the financial
perspective.

this Regulation, within the limits of

The implementation period of any action under this
2.
Regulation shall be for a limited period which may not exceed
six months.

3.
In exceptional cases, in view of the specific nature of the
crisis concerned or its intensity, the Commission may decide
on supplementary action. This supplementary action shall
comply with the same requirements as the initial action.

Article 9

inform the Council

The Commission shall

1.
forthwith,
following its decision, of the approved actions and projects,
notably by indicating the amounts involved, their nature and
the partners concerned. In addition, the Commission shall keep
the Council informed of the implementation of these actions
and projects and, where required, of their follow-up.

2.
At the end of the six month period referred to in Article
8(2) and no later than their completion, the Commission shall
assess the actions under this Regulation to establish whether

Article 10

The Commission shall ensure that action taken under the
1.
Rapid Reaction Mechanism is effectively coordinated, including
on-the-spot coordination, with action by the Member States, in
order to increase the coherence, complementarity and effective-
ness of the interventions. To that end, the Commission and the
Member States shall exchange between themselves all useful
information on the actions they implement or intend to imple-
ment.

The Commission shall promote

2.
coordination and
cooperation with international and regional organisations. It
shall ensure that the action taken under the Rapid Reaction
Mechanism is coordinated and consistent with that of
the
international and regional organisations and agencies.

The necessary measures will be taken to give visibility to

3.
the Community's contribution.

Article 11

Before 31 December 2005, the Council shall review this Regu-
lation. To that end, and at the latest six months beforehand, the
Commission shall present to the Council an overall evaluation
report of its implementation, together with any proposals for
the future of the Regulation, where required, and, if needed,
any proposals for amendments to it.

Article 12

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 2006.

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

Done at Brussels, 26 February 2001.

For the Council

The President

A. LINDH

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

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ANNEX

‘Geographical’ Regulations/Decisions

— Council Regulation (EEC) No 3906/89 of 18 December 1989 on economic aid to the Republic of Hungary and the

Polish People's Republic (1).

— Council Regulation (EEC) No 443/92 of 25 February 1992 on financial and technical assistance to, and economic

cooperation with, the developing countries in Asia and Latin America (2).

— Council Regulation (EC) No 1734/94 of 11 July 1994 on financial and technical cooperation with the West Bank and

the Gaza Strip (3).

— Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical measures to accompany (MEDA) the

reform of economic and social structures in the framework of the Euro-Mediterranean partnership (4).

— Council Regulation (EC, Euratom) No 99/2000 of 29 December 1999 concerning the provision of assistance to the

partner States in Eastern Europe and Central Asia (5).

— Regulation (EC) No 1726/2000 of the European Parliament and of the Council of 29 June 2000 on development

cooperation with South Africa (6).

— Council Regulation No 2666/2000 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 (7).

— ACP Partnership Agreement signed in Cotonou on 23 June 2000 (pending ratification)

— Fourth ACP-EEC Convention (8):

(text of the Agreement, Financial Protocol, Protocols 1 to 9 and Declarations)

‘Sectoral’ Regulations and Decisions (food aid, reconstruction, NGOs, etc.)

— Council Regulation (EC) No 1292/96 of 27 June 1996 on food-aid policy and food-aid management and special

operations in support of food security (9).

— Council Regulation (EC) No 2258/96 of 22 November 1996 on rehabilitation and reconstruction operations in

developing countries (10).

— Council Regulation (EC) No 443/97 of 3 March 1997 on operations to aid uprooted people in Asian and Latin

American developing countries (11).

— Council Regulation (EC) No 1658/98 of 17 July 1998 on co-financing operations with European non-governmental

development organisations (NGOs) in fields of interest to developing countries (12).

— Council Regulation (EC) No 1659/98 of 17 July 1998 on decentralised cooperation (13).

— Council Decision 1999/25/Euratom of 14 December 1998 adopting a multiannual programme (1998 to 2002) of
actions in the nuclear sector, relating to the safe transport of radioactive materials and to safeguards and industrial
cooperation to promote certain aspects of the safety of nuclear installations in the countries currently participating in
the TACIS programme (14).

— Council Regulation (EC) No 975/1999 of 29 April 1999 laying down the requirements for the implementation of
development cooperation operations which contribute to the general objective of developing and consolidating
democracy and the rule of law and to that of respecting human rights and fundamental freedoms (15).

(1) OJ L 375, 23.12.1989. Regulation as last amended by Regulation (EC) No 2666/2000 (OJ L 306, 7.12.2000, p. 1).
(2) OJ L 52, 27.2.1992, p. 1.
(3) OJ L 182, 16.7.1994, p. 4. Regulation as last amended by Regulation (EC) No 2840/98 (OJ L 354, 30.12.1998, p. 14).
(4) OJ L 189, 30.7.1996, p. 1. Regulation as last amended by Regulation (EC) No 2698/2000 (OJ L 311, 12.12.2000, p. 1).
(5) OJ L 12, 18.1.2000, p. 1.
(6) OJ L 198, 4.8.2000, p. 1.
(7) OJ L 306, 7.12.2000, p. 1.
(8) OJ L 229, 17.8.1991, p. 3. Convention as last amended by the Agreement signed at Mauritius on 4 November 1995 (OJ L 156,

29.5.1998, p. 3).

(9) OJ L 166, 5.7.1996, p. 1.
(10) OJ L 306, 28.11.1996, p. 1.
(11) OJ L 68, 8.3.1997, p. 1. Regulation as last amended by Regulation (EC) No 1880/2000 (OJ L 227, 7.9.2000, p. 1).
(12) OJ L 213, 30.7.1998, p. 1.
(13) OJ L 213, 30.7.1998, p. 6.
(14) OJ L 7, 13.1.1999, p. 31.
(15) OJ L 120, 8.5.1999, p. 1.

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— Council Regulation (EC) No 976/1999 of 29 April 1999 laying down the requirements for the implementation of
Community operations, other than those of development cooperation, which, within the framework of Community
cooperation policy, contribute to the general objective of developing and consolidating democracy and the rule of law
and to that of respecting human rights and fundamental freedoms in third countries (1).

— 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) (2).

— Council Decision 2000/474/EC of 17 July 2000 concerning the Community contribution to the International Fund

‘Clearance of the Fairway of the Danube’ (3).

— Regulation (EC) No 2493/2000 of the European Parliament and of the Council of 7 November 2000 on measures to
promote the full integration of the environmental dimension in the development process of developing countries (4).

(1) OJ L 120, 8.5.1999, p. 8.
(2) OJ L 122, 24.5.2000, p. 27.
(3) OJ L 187, 26.7.2000, p. 45.
(4) OJ L 288, 15.11.2000, p. 1.