Proposal for a Council Regulation concerning Community financial contributions to the International Fund for Ireland (2003-2004)
Date: 2002-08-22
Institutions: European Commission
Subjects: EU financing, Ireland, United Kingdom, cross-border cooperation, international aid, peacekeeping

31.12.2002

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Official Journal of the European Communities

C 331 E/177

Proposal for a Council Regulation concerning Community financial contributions to the Inter-
national Fund for Ireland (2003-2004)

(2002/C 331 E/33)

COM(2002) 472 final — 2002/0210(CNS)

(Submitted by the Commission on 22 August 2002)

EXPLANATORY MEMORANDUM

The International Fund for Ireland (IFI) was established in 1986 in order to contribute to the implemen-
tation of Article 10(a) of the Anglo-Irish Agreement of 15 November 1985 which provides that ‘the two
governments shall cooperate to promote the economic and social development of those areas of both parts
of Ireland which have suffered most severely from the consequences of the instability of recent years, and
shall consider the possibility of securing international support for this work’.

The objectives of the IFI are ‘to promote economic and social advance and to encourage contact, dialogue
and reconciliation between nationalists and unionists throughout Ireland’ (1).

Following early contributions from the United States and other countries, the European Community,
recognising that the objectives of the IFI were a reflection of those pursued by itself, wished to give
practical support to the initiative. It began contributing to the IFI in 1989. EC funding now represents
34 % of annual contributions to the IFI and 38 % of cumulative contributions to date. The Commission has
been represented by an observer at all IFI Board meetings since the beginning of 1989.

The political background of the region has evolved over the years: in 1994, the main paramilitary groups
announced cease-fires; in April 1998, the Belfast (‘Good Friday’) Agreement set a political settlement for a
peace process,
including the devolution of powers to a Northern Ireland Assembly and Executive
Committee, which were set up at the end of 1999. However, violence and division between the main
communities remain high and various suspensions of the devolved institutions have illustrated the threats
and uncertainties surrounding the peace process in the region.

In this context, economic and social development in support of peace and reconciliation at grassroots level
is a long term process. As an instrument towards this goal, the IFI complements the action carried out by
the EU Programmes for Peace and Reconciliation in Northern Ireland and the Border Region of Ireland
(‘PEACE I’ 1995-1999, and ‘PEACE II’ 2000-2004).

In accordance with the current round of contributions (2),
the European Commission has recently
submitted an assessment of the IFI's activities to the Budgetary Authority (3). This acknowledges the IFI's
very valuable and positive actions for peace and reconciliation in the region, and thereby the fulfilment of
its objectives. The report concluded that ‘the Commission believes that funding after 2002 should be
provided on the basis of the observations made in this report, which could be reflected either in the future
Council Regulation on the EC contribution to the IFI, or through other appropriate means of cooperation
between the Commission and the IFI’.

(1) Agreement between the Government of the United Kingdom of Great Britain and Northern Ireland and the
Ireland, 18 September 1986 (last amended

Government of
10 October 2000); UK Treaty Series No 58 (1987) Cm 266/Republic of Ireland No 1 (1986) Cmnd 9908.

Ireland concerning the International Fund for

(2) Council Regulation (EC) No 214/2000 of 24 January 2000 (OJ L 24, 29.1.2000, p. 7).
(3) COM(2001) 548 final, 1 October 2001.

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In light of the above assessment, it is proposed that the Commission adopts the following proposal for a
Council Regulation on the EC contributions to the IFI which will:

— continue the EU contributions of EUR 15 million per year to the IFI, for a further period of 2 years.
The proposed new period will therefore end in 2004, which would coincide with the end of the PEACE
II Programme.

— take account of the observations made in the Commission report,

synergy of objectives and coordination with Structural Funds interventions,
PEACE Programme.

in particular those reinforcing
in particular with the

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,

(6) The assessments carried out in accordance with Article 5
of Council Regulation (EC) No 214/2000 have confirmed
the need for further support for Fund activities, while
reinforcing synergy of objectives and coordination with
Structural Funds interventions,
in particular with the
Special Programme for Peace and Reconciliation in
Northern Ireland and the Border Counties of Ireland (here-
inafter ‘the PEACE Programme’).

Whereas:

(7) Council Regulation (EC) No 214/2000 expires on

31 December 2002.

established

the Agreement

(1) The International Fund for Ireland (hereinafter ‘the Fund’)
was
of
in 1986 by
18 September 1986 between the Government of Ireland
and the Government of the United Kingdom of Great
Britain and Northern Ireland concerning the International
Fund for Ireland (1) (hereinafter ‘the Agreement’) in order
to promote
and to
encourage contact, dialogue and reconciliation between
in
nationalists
implementation of one of the objectives specified by the
Anglo-Irish Agreement of 15 November 1985.

and social advance,

throughout

economic

unionists

Ireland,

and

(2) The sum of EUR 15 million a year has been provided
from the Community budget from 1989 until 1995 to
support projects of
the Fund which have a genuine
additional impact in the areas concerned.

(3) Pursuant

to Council Regulation (EC) No 2687/94 of
31 October 1994 on Community financial contributions
to the International Fund for Ireland (2),
the sum of
EUR 20 million was committed from the Community
budget for each of the years 1995, 1996 and 1997.

(4) Pursuant

to Council Regulation (EC) No 2614/97 of
15 December 1997 on Community financial contributions
to the International Fund for Ireland (3),
the sum of
EUR 17 million was committed from the Community
budget for each of the years 1998 and 1999.

(5) Pursuant

to Council Regulation (EC) No 214/2000 of
24 January 2000 on Community financial contributions
to the International Fund for Ireland (4),
the sum of
EUR 15 million was committed from the Community
budget for each of the years 2000, 2001 and 2002.

(1) UK Treaty Series No 58 (1987) Cm 266/Republic of Ireland No 1

(1986) Cmnd 9908.

(2) OJ L 286, 5.11.1994, p. 5.
(3) OJ L 353, 24.12.1997, p. 5.
(4) OJ L 24, 29.1.2000, p. 7.

(8) The peace process

in Northern Ireland requires

continuation of European Community support
Fund beyond that date.

a
to the

(9) At its meeting in Berlin on 24 and 25 March 1999, the
European Council decided that the PEACE Programme
should be continued for five years, that is to say, from
2000 until 2004, with a total Community contribution of
EUR 500 million.

(10) The Community contribution to the Fund should take the
form of financial contributions for the years 2003 and
2004, thus terminating at the same time as the PEACE
programme.

(11) In allocating the Community contribution,

the Fund
should give priority to projects of a cross-border or cross-
community nature, in such a way as to complement the
activities funded by the PEACE programme for the period
2000 to 2004.

(12) In accordance with

financial
contributors to the Fund participate as observers at the
meetings of
the International Fund for
Ireland.

the Agreement,

the Board of

all

(13) It

to ensure proper coordination between the
is vital
activities of
the
Community Structural Funds provided for by Article
159 of the Treaty, in particular the PEACE programme.

the Fund and those financed under

(14) Assistance from the Fund will be regarded as effective
only in so far as it brings about sustainable economic
and social improvement and is not used as a substitute
for other public or private expenditure.

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(15) An assessment reviewing the performance of the Fund
and the need for further Community support should be
carried out before 1 April 2004.

The Fund shall be represented as an observer at the Monitoring
Committee meetings of the PEACE programme, and of other
Structural Funds interventions as appropriate.

(16) A financial reference amount, within the meaning of Point
33 of the Interinstitutional Agreement of 6 May 1999
between the European Parliament, the Council and the
Commission on budgetary discipline and improvement
of the budgetary procedure is inserted in this Regulation
for the entire duration of the programme, without the
the budgetary authority as defined by the
powers of
the
Treaty being affected thereby. The amount of
Community
be
should
contribution to the
EUR 15 million for each of the years 2003 and 2004,
expressed in current values.

Fund

(17) That support will contribute to reinforcing solidarity
between the Member States and between their peoples.

(18) The Treaty provides no powers other than those in Article

308 for the adoption of this Regulation,

HAS ADOPTED THIS REGULATION:

Article 1

Subject to the annual budget procedure and in accordance with
the second paragraph of Point 34 of
the Interinstitutional
Agreement of 6 May 1999 between the European Parliament,
the Council and the Commission on budgetary discipline and
an annual
improvement of
contribution of EUR 15 million shall be made to the Inter-
national Fund for Ireland (hereinafter ‘the Fund’) for each of
the years 2003 and 2004, amounting to a total contribution,
over these years, of EUR 30 million.

the budgetary procedure (1),

Article 2

The contribution shall be used by the Fund in accordance with
of 18 September 1986 between the
the Agreement
Government of
Ireland and the Government of the United
Kingdom of Great Britain and Northern Ireland concerning
the International Fund for Ireland (hereinafter ‘the Agreement’)
under which it was established, priority being given to projects
of a cross-border or cross-community nature, in such a way as
to complement the activities financed by the Structural Funds,
and especially those of the Special Programme for Peace and
Reconciliation in Northern Ireland and the Border Counties of
Ireland (hereinafter ‘the PEACE Programme’).

It shall be used in such a way as to bring about sustainable
economic and social improvement in the areas concerned. It
shall not be used as a substitute for other public and private
expenditure.

Article 3

The Commission shall represent the Community as an observer
at the meetings of the Board of the International Fund for
Ireland (hereinafter ‘the Board’).

Article 4

The Commission shall foster coordination at all levels between
the Fund's Board and agents, and the managing bodies set up
under
in
particular under the PEACE programme.

the Structural

interventions

concerned,

Funds

Article 5

The Commission shall, in cooperation with the Fund's Board,
determine appropriate publicity and information procedures in
order to publicise the Community's contribution to the projects
financed by the Fund.

Article 6

By 31 March 2004 at the latest, the Commission shall submit a
report to the Budgetary Authority, assessing the results of the
activities of the Fund and the need for continuing contributions
beyond 2004, taking into account developments in the peace
process in Northern Ireland. That report shall incorporate, inter
alia, the following:

(a) a survey of the Fund's activities;

(b) a list of projects which have received aid;

(c) an assessment of

the Fund's
activities, notably in relation to its objectives and the
criteria laid down in Articles 2 and 8;

the nature and impact of

(d) an assessment of action taken by the Fund to ensure coop-
inter-
in particular, of obligations

eration and coordination with Structural Funds
ventions,
taking account,
under Articles 3, 4 and 5;

(e) an annex setting out the results of the verifications and
controls carried out by the Commission pursuant to the
undertaking referred to in Article 7.

Article 7

The Commission shall administer the contributions.

Subject to an assessment of the Fund's financial needs, to be
carried out by the Commission on the basis of the Fund's cash
balance at the time scheduled for each payment. The annual
contribution shall normally be paid in instalments as follows:

(a) a first advance payment of 40 % shall be made after the
Commission has received an undertaking, signed by the
Chairman of the Fund's Board, to the effect that the Fund
in accordance
will comply with the conditions attaching,
with this Regulation, to the grant of the contribution;

(b) a second advance payment of 40 % shall be made six

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

months later;

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(c) a

final payment of 20 % shall be made

the
Commission has received and accepted the Fund's annual
activity report and audited accounts
in
question.

the year

after

for

If the assessment referred to in the second subparagraph leads
to the conclusion that, at the material date, the Fund's financial
needs do not justify payment of one of those instalments, the
payment concerned shall be suspended until such time as the
Commission concludes, on the basis of new information
provided by the Fund, that it is justified.

due to receive financial assistance under a Structural Funds
intervention, a contribution from the Fund may be allocated
to that operation only if the sum arrived at when the figure
representing 40 % of the amount of the Fund's contribution is
added to the figure representing the amount of assistance from
the Structural Funds does not exceed 75 % of the operation's
total eligible costs.

Article 9

This Regulation shall enter into force on 1 January 2003.

Article 8

It shall expire on 31 December 2004.

The contribution referred to in Article 1 shall be subject to the
condition that, in the case of an operation which receives or is

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