Proposal for a Council Regulation on financial and technical measures to accompany (MEDA) the reform of economic and social structures in the framework of the Euro-Mediterranean partnership (Codified version)
Date: 2004-02-10
Institutions: European Commission
Subjects: Union for the Mediterranean, codification of EU law, economic reform, financial cooperation, social change, technical cooperation

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.02.2004 
COM(2004) 77 final 

2004/0024 (CNS) 

Proposal for a 

COUNCIL REGULATION 

on financial and technical measures to accompany (MEDA) the reform of economic and 
social structures in the framework of the Euro-Mediterranean partnership 

(Codified version) 

. 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
1. 

2. 

3. 

4. 

EXPLANATORY MEMORANDUM 

In  the  context  of  a  people’s  Europe,  the  Commission  attaches  great  importance  to 
simplifying  and  clarifying  Community  law  so  as  to  make  it  clearer  and  more 
accessible to the ordinary citizen, thus giving him new opportunities and the chance 
to make use of the specific rights it gives him. 

This aim cannot be achieved so long as numerous provisions that have been amended 
several times, often quite substantially, remain scattered, so that they must be sought 
partly  in  the  original  instrument  and  partly  in  later  amending  ones.  Considerable 
research work, comparing many different instruments, is thus needed to identify the 
current rules. 

For  this  reason  a  codification  of  rules  that  have  frequently  been  amended  is  also 
essential if Community law is to be clear and transparent. 

On  1  April  1987  the  Commission  therefore  decided1  to  instruct  its  staff  that  all 
legislative acts should be codified after no more than ten amendments, stressing that 
this  is  a  minimum  requirement  and  that  departments  should  endeavour  to  codify  at 
even  shorter  intervals  the  texts  for  which  they  are  responsible,  to  ensure  that  the 
Community rules are clear and readily understandable. 

The  Conclusions  of 
the  Edinburgh  European  Council 
(December 1992) confirmed this2, stressing the importance of codification as it offers 
certainty as to the law applicable to a given matter at a given time. 

the  Presidency  of 

Codification  must  be  undertaken  in  full  compliance  with  the  normal  Community 
legislative procedure. 

Given  that  no  changes  of  substance  may  be  made  to  the  instruments  affected  by 
codification, the European Parliament, the Council and the Commission have agreed, 
by  an  interinstitutional  agreement  dated  20  December  1994,  that  an  accelerated 
procedure may be used for the fast-track adoption of codification instruments. 

is 

this  proposal 

to  undertake  a  codification  of  Council 
The  purpose  of 
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  partnership3.  The  new  Regulation  will  supersede  the 
various acts incorporated in it4; this proposal fully preserves the content of the acts 
being codified and hence does no more than bringing them together with only such 
formal amendments as are required by the codification exercise itself. 

1 
2 
3 

4 

COM(87) 868 PV. 
See Annex 3 to Part A of the Conclusions. 
Carried out pursuant to the Communication from the Commission to the European Parliament and the 
Council – Codification of the Acquis communautaire, COM(2001) 645 final. 
See Annex III to this proposal. 

2 

 
 
  
 
                                                 
5. 

The codification proposal was drawn up on the basis of a preliminary consolidation, 
in  all  official  languages,  of  Regulation  (EC) No 1488/96  and  the  instruments 
amending  it,  carried  out  by  the  Office  for  Official  Publications  of  the  European 
Communities, by means of a data-processing system. Where the Articles have been 
given new numbers, the correlation between the old and the new numbers is shown 
in a table contained in Annex IV to the codified Regulation. 

3 

 
 
  
 
(cid:208) 1488/96 (adapted) 

2004/0024 (CNS) 

Proposal for a 

COUNCIL REGULATION 

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, 

Having regard to the opinion of the European Parliament1, 

Having regard to the opinion of the European Economic and Social Committee2, 

Whereas: 

(cid:208)  

(1) 

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  partnership3  has  been  substantially  amended 
several times4. In the interests of clarity and rationality the said Regulation should be 
codified. 

(2) 

The  European  Council  at  its  meetings  in  Lisbon,  Corfu  and  Essen  stressed  that  the 
Mediterranean constitutes a priority area for the European Union and adopted the aim 
of establishing a Euro-Mediterranean partnership. 

(cid:208) 1488/96 Recital 1 

1 
2 
3 

4 

OJ C 
OJ C 
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). 
See Annex III. 

4 

 
 
  
 
 
 
 
                                                 
(cid:208) 1488/96 Recital 2 

(3) 

The  Cannes  European  Council  meeting  on  26  and  27  June  1995  reaffirmed  the 
strategic  importance  it  attached  to  adding  a  new  dimension  to  the  European  Union's 
relations  with  its  Mediterranean  partners  by  building  on  the  Council  report  of 
12 June 1995 prepared on the basis, in particular, of the Commission communications 
of 19 October 1994 and 8 March 1995 on strengthening the Mediterranean policy of 
the European Union. 

(4) 

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. 

(cid:208) 2698/2000 Recital 3 

(cid:208) Corrigendum 1488/96 

(5) 

It is necessary to pursue efforts to ensure that the Mediterranean becomes an area of 
political  stability  and  security.  The  Community's  Mediterranean  policy  must  play  a 
part  in  achieving  the  general  objective  of  the  development  and  strengthening  of 
democracy  and  the  rule  of  law,  as  well  as  in  achieving  the  objective  of  respect  of 
human  rights  and  fundamental  freedoms  and  of  the  promotion  of  good-neighbourly 
relations,  while  respecting  international  law  and  the  territorial  integrity  and  external 
frontiers of the Member States and Mediterranean non-member countries. 

(6) 

The ultimate establishment of a Euro-Mediterranean free trade area is likely to foster 
stability and prosperity in the Mediterranean region. 

(cid:208) 1488/96 Recital 4 

(7) 

For  the  Mediterranean  partners  the  establishment  of  a  free  trade  area  may  involve 
profound structural reforms. 

(cid:208) 1488/96 Recital 5 

(8) 

It is therefore necessary to support the efforts that have been or will be undertaken by 
the  Mediterranean  partners  to  reform  their  economic,  social  and  administrative 
structures. 

(cid:208) 1488/96 Recital 6 

5 

 
 
  
 
 
 
 
 
 
 
(9) 

The  dialogue  between  cultures  and  between  civil  societies  should  be  developed, 
notably by encouraging training activities, development and decentralized cooperation. 

(cid:208) 1488/96 Recital 7 

(10) 

Intensified regional cooperation and in particular the development of economic links 
and trade flows between Mediterranean territories and partners which are conducive to 
reform and economic restructuring should be encouraged. 

(cid:208) 1488/96 Recital 8 

(11)  The  bilateral  protocols  on  financial  and  technical  cooperation  concluded  by  the 
initial  basis  for 

Community  with  Mediterranean  partners  provided  a  useful 
cooperation.  

(cid:208) 1488/96 Recital 9 (adapted) 

(12)  Rules for the administration of such partnership have to be determined, while ensuring 
the  transparency  and  overall  consistency  of  action  undertaken  using  budget 
appropriations. 

(cid:208) 1488/96 Recital 10 

(cid:208) 1488/96 Recital 11 (adapted) 

(13)  To  this  end  this  Regulation  will  apply  to  the  range  of  measures  which ⌦ ,  prior  to 
1 January  1997,  had  come ⌫  under  Council  Regulation  (EEC)  No  1762/92  of 
29 June 1992  on  the  implementation  of  the  protocols  on  financial  and  technical 
cooperation concluded by the Community with Mediterranean non-member countries5 
and  Council  Regulation  (EEC)  No  1763/92  of  29  June  1992  concerning  financial 
cooperation  in  respect  of  all  Mediterranean  non-member  countries6  for  measures 
whose scope extended beyond the scope of a single country. 

(14)  However, Regulation (EEC) No 1762/92 should continue to apply for the management 
of  financial  protocols  still  applicable  at  that  date  and  for  the  commitment  of  funds 
remaining under the expired financial protocols. 

(cid:208) 1488/96 Recital 12 (adapted) 

5 
6 

OJ L 181, 1.7.1992, p. 1. 
OJ L 181, 1.7.1992, p. 5. ⌦ Regulation repealed by Regulation (EC) No 1488/96. ⌫ 

6 

 
 
  
 
 
 
 
 
 
 
                                                 
(cid:208) 1488/96 Recital 13 (adapted) 

(15)  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  improvement  of  the 
budgetary  procedure7 ⌫,  is  included  for  the  period  ⌦ 2000  to  2006 ⌫,  without 
thereby  affecting  the  powers  of  the  budgetary  authority  as  they  are  defined  by  the 
Treaty.  ⌦ Measures  which  are  financed  from  the  general  budget  of  the  European 
Communities should be administered by the Commission in accordance with Council 
Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation 
applicable to the general budget of the European Communities Regulation8. ⌫ 

(16) 

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

(cid:208) 2698/2000 Recital 6 (adapted) 

(17)  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. 

(cid:208) 2698/2000 Recital 7  

(18)  The  introduction  of  national  and  regional  financing  plans  based  on  the  indicative 

programmes facilitates the streamlining of decision-making procedures. 

(cid:208) 2698/2000 Recital 8 

(cid:208) 1488/96 Recital 15 (adapted) 

(19) 

In  loan  operations  involving  interest  rate  subsidies,  the  granting  of  a  loan  by  the 
⌦ European Investment ⌫ Bank ⌦ , hereinafter referred to as «the Bank», ⌫ from 
its  own  resources  and  the  granting  of  an  interest  rate  subsidy  financed  by  the 
budgetary  resources  of  the  Community  must  be  linked  and  are  conditional  on  each 
other. The Bank may, in accordance with its Statute and in particular by a unanimous 
decision  of its Board of Directors  in the presence of  an unfavourable opinion  by the 
Commission, decide to grant a loan from its own resources, subject to granting of the 
interest  rate  subsidy.  On  account  of  this  aspect,  it  is  necessary  to  ensure  that  the 
procedure  adopted  for  granting  interest  rate  subsidies  results  in  every  case  in  an 
express decision, whether to grant the subsidy or to refuse it, where appropriate. 

7 
8 

⌦ OJ C 172, 18.6.1999, p. 1. ⌫ 
⌦ OJ L 248, 16.9.2002, p. 1. ⌫ 

7 

 
 
  
 
 
 
 
 
 
                                                 
(20)  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 Commission9. 

(cid:208) 2698/2000 Recital 10 

(21) 

It is necessary to make provision for a Committee composed of representatives of the 
Member  States  to  assist  the  Bank  in  the  tasks  attributed  to  it  to  implement  this 
Regulation. 

(cid:208) 1488/96 Recital 16 

(22)  To ensure effective management of the measures provided for in this Regulation and 
to facilitate relations with the beneficiary countries a multiannual approach is required. 

(cid:208) 1488/96 Recital 17 

(23)  The  measures  under  this  Regulation  go  beyond  the  framework  of  development 
assistance and are intended to apply to countries only in part classifiable as developing 
countries. Therefore, this Regulation cannot be adopted other than on the basis of the 
powers provided for in Article ⌦ 308 ⌫ of the Treaty, 

(cid:208) 1488/96 Recital 18 (adapted) 

HAS ADOPTED THIS REGULATION: 

(cid:208) 1488/96 

Article 1 

(cid:208) 2698/2000 Art.1 pt.1 

1. The Community shall 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 partners») 
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. 

9 

OJ L 184, 17.7.1999, p. 23. 

8 

 
 
  
 
 
 
 
 
 
 
                                                 
2.  The  beneficiaries  of  support  measures  may  include  not  only  states  and  regions  but  also 
local  authorities,  regional  organisations,  public  agencies,  local  or  traditional  communities, 
organisations  supporting  business,  private  operators,  cooperatives,  mutual  societies, 
associations, foundations and non-governmental organisations. 

(cid:208) 1488/96 

3.  The  financial  reference  amount  for  the  implementation  of  this  programme  for  the  period 
2000 to 2006 shall be EUR ⌦ 5 350 million ⌫ . 

(cid:208) 2698/2000 Art.1 pt.2 (adapted) 

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

(cid:208) 1488/96 

Article 2 

(cid:208) 1488/96 (adapted) 

1.  The  purpose  of  this  Regulation  is  to  contribute,  through  the ⌦ support ⌫  measures,  to 
initiatives  of  joint  interest  in  the  three  sectors  of  the  Euro-Mediterranean  partnership:  the 
reinforcement  of  political  stability  and  of  democracy,  the  creation  of  a  Euro-Mediterranean 
free trade area, and the development of economic and social cooperation, taking due account 
of the human and cultural dimension. 

(cid:208) 2698/2000 Art.1 pt.3 (adapted) 

2.  ⌦ The ⌫  support  measures  shall  be  implemented  taking  account  of  the  objective  of 
achieving  sustainable  development  leading  to  long-term  stability  and  prosperity.  Particular 
attention  shall  be  paid  to  the  economic,  social  and  environmental  impact  of  economic 
transition,  to  regional  and  sub-regional  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. 

(cid:208) 1488/96 

Article 3 

This Regulation is based on respect for democratic principles and the rule of law and also for 
human  rights  and  fundamental  freedoms,  which  constitute  an  essential  element  thereof,  the 
violation of which element will justify the adoption of appropriate measures. 

9 

 
 
  
 
 
 
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.4 (adapted) 

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  information  on  the  spot, 
especially  with  regard  to  strategy  papers,  the  national  indicative  programmes  (NIP),  annual 
financing  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  Commission  shall  promote  coordination  and 
cooperation  with  international  financial  institutions,  the  United  Nations  cooperation 
programmes  and  other  donors.  The  specific  arrangements  for  on-the-spot  coordination  shall 
be  the  subject  of  guidelines  to  be  approved  ⌦ in  accordance  with  the  procedure  laid 
down ⌫ in Article 11 ⌦ (2) ⌫. 

2. The ⌦ support ⌫ measures 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. 

(cid:208) 1488/96 

Article 5 

1. Measures to be financed under this Regulation shall be selected taking account, inter alia, 
of  the  beneficiaries'  priorities,  evolving  needs,  absorption  capacity  and  progress  towards 
structural reform. 

Selection  shall  also  be  based  on  an  assessment  of  the  effectiveness  of  those  measures  in 
achieving the objectives aimed at by Community support, in line, where appropriate, with the 
provisions of Association or Cooperation Agreements. 

(cid:208) 2698/2000 Art.1 pt.5 

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  cooperation  and  of  identifying  priority  areas  of 
intervention.  To  this  end,  due  account  shall  be  taken  of  all  relevant  evaluations,  a  problem-
oriented analysis shall be used and cross-cutting issues shall be integrated. As far as possible, 
implementation  benchmarks  will  be  developed  in  order  to  facilitate  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. 

10 

 
 
  
 
 
 
 
3. Indicative programmes national and regional covering three-year periods shall be based on 
the corresponding 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. 

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  for  the  evaluation  of  the  programmes.  The  programmes  shall  include  indicative 
amounts  (overall  and  by  priority  sector)  and  list  the  criteria  for  funding  the  programme 
concerned. 

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 
industrial  development  and  social 
structural 
advancement,  or  the  outcome of  cooperation under the new Association Agreements.  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. 

reforms,  macroeconomic  stabilisation, 

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 rate subsidies shall be included in national 
financing plans. Projects relating to risk capital shall be included in regional financing plans. 

The plans shall include a list of the projects to be financed. Each project shall be examined on 
its merits as a component 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). 

5.  The  Commission,  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. 

6.  Financing  decisions  shall  be  based  on  the  corresponding  indicative  programme  if  the 
projects do not form part of a financing plan. 

11 

 
 
  
 
(cid:208) 1488/96 

Article 6 

1.  Community  financing  shall  notably  be  in  the  form  of  grants  or  risk  capital.  Concerning 
cooperation measures in the field of the environment it may also take the form of interest rate 
subsidies for loans granted by the Bank from its own resources. 

(cid:208) 2698/2000 Art.1 pt.6(b) 

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%. 

(cid:208) 1488/96 

2.  Grants  may  be  used  to  finance  or  co-finance  activities,  projects  or  programmes  which 
contribute  to  the  realisation  of  the  objectives defined  in  Article  2.  The  financing  ceiling  for 
each grant for activities, projects or programmes shall also depend on those grants' ability to 
yield a financial return. The financing made available to the private sector shall in general be 
on  commercial  terms,  in  order  to  avoid  distortions  of  local  financial  markets  as  far  as 
possible. 

(cid:208) 2698/2000 Art.1 pt.6(c) 
(adapted) 

3. Financing decisions and any financing agreements and contracts resulting therefrom shall 
provide, inter alia, for supervision and financial control by the Commission ⌦ , in particular 
by ⌫ the European Anti-fraud Office (OLAF), including on-the-spot checks and inspection 
in conformity with ⌦ Council ⌫ Regulation (Euratom, EC) No 2185/9610, 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 ⌦ laid down ⌫ in Article 11(2), in order to 
provide  for  adequate  protection  of  the  financial  interests  of  the  Community  in  conformity 
with ⌦ Council ⌫ Regulation (EC, Euratom) No 2988/9511. 

The Court of Auditors' supervision of operations financed under this Regulation and managed 
by the Bank shall be carried out according to the procedures agreed between the Commission, 
the Bank and the Court of Auditors. 

(cid:208) 1488/96 

10 
11 

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

12 

 
 
  
 
 
 
 
 
 
                                                 
4.  Risk  capital  shall  be  used,  first  and  foremost,  to  make  available  own  funds,  or  funds 
regarded  as  such,  to  undertakings  (private  or  mixed)  in  the  production  sector,  in  particular 
those  that  can  bring  together  natural  or  legal  persons  who  are  nationals  of  a  Community 
Member State and of Mediterranean non-member countries or territories. 

Risk  capital  shall  be  used  primarily  to  strengthen  the  private  sector,  and  in  particular  to 
reinforce the financial sector ⌦ of the Mediterranean partners ⌫ . It shall add value clearly, 
by offering financial products and terms that are not available locally. 

(cid:208) 2698/2000 Art.1 pt.6(d) 
(adapted) 

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

(cid:208) 2698/2000 Art.1 pt.6(e) 

(cid:208) 1488/96 

(a) 

(b) 

(c) 

(d) 

subordinated  loans,  for  which  reimbursement  and  any  interest  payments  shall  be 
effected only after settlement of other banking claims; 

conditional  loans  the  repayment  or  duration  of  which  depend  on  fulfilment  of  the 
conditions laid down when the loans are granted; 

temporary  minority  holdings  on  behalf  of  the  Community  in  the  capital  of 
undertakings established in the Mediterranean non-member countries or territories; 

financing of holdings in the form of conditional loans granted to the Mediterranean 
partners  or,  with  their  consent,  to  undertakings  in  those  Mediterranean  partner 
countries, either directly or through the intermediary of their financial institutions. 

Article 7 

(cid:208) 2698/2000 Art.1 pt.7(a) 
(adapted) 

1.  ⌦ Support ⌫  measures  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  of  the  beneficiary  partner  may  also  be  covered  to  support  agreed  programmes  of 
economic reform, in particular through sectoral facilities for structural adjustment, as referred 
to  in  Annex  II,  Section  I(b).  Taxes,  duties  and  charges  shall  be  excluded  from  Community 
financing. 

13 

 
 
  
 
 
 
 
 
Contracts for the implementation of Community-funded measures under this Regulation shall 
receive, from the partner concerned, fiscal and customs treatment no less favourable than that 
which  it  applies  to  the  most  favoured  State  or  most  favoured  international  development 
organisation. 

(cid:208) 1488/96 

2.  Costs  incurred  in  identifying,  preparing,  managing,  monitoring,  auditing  and  controlling 
programmes or projects may also be covered. This may include costs related to technical and 
administrative  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. 

(cid:208) 2698/2000 Art.1 pt.7(b) 

(cid:208) 1488/96 

3.  Operating  and  maintenance  costs,  in  particular  those  to  be  financed  in  foreign  currency, 
may be covered within the framework of training, communications and research programmes 
and  within  that  of  other  projects.  As  a  general  rule,  such  costs  may  be  covered  only  in  the 
start-up stage and shall be progressively reduced. 

4. For investment projects in the production sector, Community financing shall be combined 
with  the  beneficiary's  own  resources  or  with  financing  on  market  conditions,  taking  into 
account the nature of the project. The recipient's contribution or that represented by financing 
on market conditions should be maximised. In any case Community financing, including that 
involving  the  Bank's  own  resources,  shall  not  exceed  80%  of  total  investment  costs.  That 
ceiling  shall  be  of  an  exceptional  nature  and  shall  be  duly  justified  by  the  nature  of  the 
operation. 

Article 8 

1.  Invitations  to  tender  and  contract  shall  be  open  on  equal  terms  to  all  natural  and  legal 
persons in the Member States and the Mediterranean partners. 

2. The Commission shall ensure: 

(cid:208) 1488/96 (adapted) 

⌦ (a) ⌫ 

the  widest  possible  participation  under  equal  conditions  in  short  lists  and 

tenders for supplies, works and services; 

⌦ (b) ⌫ 

the  necessary  transparency  and  rigour  in  the  application  of  the  selection  and 

evaluation criteria; 

⌦ (c) ⌫ 

effective competition among firms, organisations and institutions interested in 

participating in the initiatives financed by the programme. 

14 

 
 
  
 
 
 
 
 
3. In the Official Journal of the European Union the Commission shall publish, indicating the 
subject, the content and the value of the contracts provided for: 

⌦ (a) ⌫ 

once  a  year,  forecasts  of  contracts  for  services  and  technical  cooperation 
activities  to  be  awarded  after  invitations  to  tender  for  the  12 months  following 
publication; 

⌦ (b) ⌫ 

once every three months, any amendments to ⌦ point (a) ⌫ forecasts. 

(cid:208) 2698/2000 Art.1 pt.8(b) 

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

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

6.  Contracts  shall  be  awarded  to  companies  in  accordance  with  the  relevant  provisions  of 
Regulation ⌦ (EC, Euratom) No 1605/2002 ⌫ . 

(cid:208) 1488/96 (adapted) 

(cid:208) 2698/2000 Art.1 pt.8(c) 
(adapted) 

7.  The  results  of  the  invitations  to  tender,  including  information  on  the  number  of  received 
tenders,  the  date  of  the  award  of  the  contract,  the  name  and  the  address  of  the  successful 
tenderers, shall be published in the Official Journal of the European Union and released on 
the  Internet.  The  Commission  shall  provide  the  Committee  provided  for  in  Article  11 
⌦ (1) ⌫, every six months, with specific detailed information on the contracts concluded in 
implementation of MEDA programmes and projects. 

8.  In  the  case  of  co-financing,  participants  from  countries  other  than  the  Mediterranean 
partners  concerned  in  invitations  to  tender  and  contracts  may  be  authorised  by  the 
Commission on a case-by-case basis. In these cases participation of undertakings from third 
countries shall be acceptable only if reciprocity is granted. 

(cid:208) 1488/96 

15 

 
 
  
 
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.9 

Article 9 

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

2. The strategy papers, indicative 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). 

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

(cid:208) 2698/2000 Art.1 pt.9 (adapted) 

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 original commitment. The Commission shall inform the Committee 
referred to in Article 11 ⌦ (1) ⌫ immediately of any such decisions. 

5.  Financing  decisions  not  exceeding  EUR ⌦ 2  million ⌫  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 ⌦ (1) ⌫ shall be informed systematically and promptly, and in any event before 
its next meeting, of financing decisions for measures not exceeding EUR ⌦ 2 million ⌫ . 

(EC,  Euratom) 
6.  Without  prejudice 
No 1605/2002 ⌫ , financing conventions shall be forwarded for information to the members 
of the Committee provided for in Article 11 ⌦ (1) ⌫ two weeks before they are signed. 

to  Article  ⌦ 166 ⌫  of  ⌦ Regulation 

7. The 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. 

(cid:208) 1488/96 (adapted) 

Article 10 

1. Measures referred to in this Regulation which are financed from the general budget of the 
European  Communities  shall  be  administered  by  the  Commission  in  accordance  with 
Regulation ⌦ (EC, Euratom) No 1605/2002 ⌫ . 

16 

 
 
  
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.10 
(adapted) 

2.  In  financing  decisions  taken  under  this  Regulation  and  the  assessments  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 
Regulation ⌦ (EC, Euratom) No 1605/2002 ⌫ . 

(cid:208) 1488/96 

Article 11 

1. ⌦ The Commission shall be assisted by a MED ⌫ committee (hereinafter referred to as 
«the Committee»). A representative of the Bank shall take part in the proceedings without a 
right to vote. 

(cid:208) 2698/2000 Art.1 pt.11(a) 
(adapted) 

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

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

(cid:208) 2698/2000 Art.1 pt.11(a) 

(cid:208) 1488/96 

4.  The  Committee  may  examine  any  other  question  relating  to  the  implementation  of  this 
Regulation which is put to it by its Chairman, possibly at the request of the representative of a 
Member  State,  and  in  particular  any  question  relating  to  general  implementation,  the 
administration of the programme or the co-financing and coordination referred to in Articles 4 
and 5. 

5. The Committee shall adopt its rules of procedure by qualified majority, in accordance with 
Article 205(2) of the Treaty. 

(cid:208) 2698/2000 Art.1 pt.11(b) 

6.  The  Commission  shall  keep  the  Committee  regularly  informed  and  shall  supply  it  with 
information on the implementation of measures under this Regulation. 

(cid:208) 1488/96 

17 

 
 
  
 
 
 
 
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.12 

Article 12 

1.  The  Bank  shall  communicate  to  the  Commission  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 thereunder. 

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

3.  In  accordance  with  the  decision  referred  to in  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  Committee  referred  to  in  Article  14  and  of  the 
Commission representative therein. 

The Bank shall inform the Commission accordingly. 

(cid:208) 2698/2000 Art. 1 pt.12 
(adapted) 

(cid:208) 2698/2000 Art.1 pt.13 
(adapted) 

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 verify the conformity of the terms of this project with this Regulation 
and the relevant decisions taken thereunder. 

2. The Commission shall communicate to the Bank each decision adopted pursuant to Article 
9(2) on a regional financing plan including risk capital for its implementation. 

(cid:208) 2698/2000 Art.1 pt.13 
(adapted) 

3. On ⌦ the ⌫ basis ⌦ of notification under paragraph 2 ⌫ , the Bank shall submit to the 
Committee referred to in Article 14, for its  opinion, individual operations implementing the 
risk  capital  project  envisaged  within  a  regional  financing  plan.  The  Commission 
representative shall convey to that Committee the position of his institution on the operation 
concerned and in particular on its conformity with the regional financing plan. 

18 

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

The Bank shall inform the Commission accordingly. 

(cid:208) 1488/96 

Article 14 

1. A Committee consisting of the representatives of the Member States, hereinafter referred to 
as the «Article 14 Committee», shall be set up at the Bank. That Committee shall be chaired 
by  the  representative  of  the  Member  State  currently  holding  the  chair  of  the  Board  of 
Governors of the Bank; its secretariat shall be provided by the Bank. A representative of the 
Commission shall take part in its proceedings. 

2. The rules of procedure of the Article 14 Committee shall be adopted unanimously by the 
Council. 

(cid:208) 1488/96 (adapted) 
(cid:206)1 2698/2000 Art.1 pt.14 

3.  The  ⌦ Article  14 ⌫  Committee  shall  act  by  a  qualified  majority  in  accordance  with 
(cid:206)1 Article 205(2) of the Treaty (cid:205). 

4.  Within  the  Article  14  Committee,  the  votes  of  the  representatives  of  the  Member  States 
shall be weighted in accordance with (cid:206)1 Article 205(2) of the Treaty (cid:205). 

(cid:208) 2698/2000 Art.1 pt.15 

Article 15 

1.  The  Commission  shall,  together  with  the  Bank,  examine  progress  achieved  in 
implementing  the  measures  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  measures  financed  during  the  year,  with 
regard  for  due  confidentiality,  as  well  as  information  on  the  results  of  monitoring  activities 
and provide an assessment of the results obtained in the overall context of the strategy papers. 

2. The Commission shall inform the Member States each year of the budgetary execution of 
the previous year, in terms of commitments and payments. 

19 

 
 
  
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.15 
(adapted) 

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 guidelines for increasing the effectiveness of future activities. 
The  evaluation  reports,  with  regard  for  due  confidentiality,  shall  be  made  available  to  the 
Committee as well as to the European Parliament. For operations managed by the Bank, the 
reports shall be made available to the Committee. 

4.  Every  three  years  the  Commission  shall,  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 Committee forthwith for discussion. 

5. The Council will review this Regulation before 30 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. 

(cid:208) 2698/2000 Art.1 pt.15 

(cid:208) 780/98 Art.1 

Article 16 

When  an  essential  element  for  the  continuation  of  support  measures  to  a  Mediterranean 
partner  is  missing,  the  Council  may,  acting  by  a  qualified  majority  on  a  proposal  from  the 
Commission, decide upon appropriate measures. 

(cid:208) 1488/96 (adapted) 

Article 17 

Regulation (EEC) No 1762/92 shall apply for the management of the protocols still in force 
⌦ on  1  January  1997 ⌫  and  for  the  commitment  of  funds  remaining  under  the  expired 
protocols. 

Regulation (EC) No 1488/96 is repealed. 

(cid:208)  

Article 18 

20 

 
 
  
 
 
 
 
 
 
References to the repealed Regulation shall be construed as references to this Regulation and 
shall be read in accordance with the correlation table in Annex IV. 

(cid:208) 1488/96 Art.18 (adapted) 

Article 19 

This  Regulation  shall  enter  into  force  on  the  ⌦ twentieth ⌫  day  following  that  of  its 
publication in the Official Journal of the European Union. 

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

Done at Brussels, […] 

For the Council 
The President 
[…] 

21 

 
 
  
 
 
 
 
 
(cid:208) 1488/96 

ANNEX I 

PARTNER TERRITORIES AND COUNTRIES REFERRED TO IN ARTICLE 1 

The People's Democratic Republic of Algeria 

The Republic of Cyprus 

The Arab Republic of Egypt 

The State of Israel 

The Kingdom of Jordan 

The Lebanese Republic 

The Republic of Malta 

The Kingdom of Morocco 

The Syrian Arab Republic 

The Republic of Tunisia 

The Republic of Turkey 

The Occupied Territories of Gaza and the West Bank 

_________________ 

22 

 
 
  
 
 
(cid:208) 2698/2000 Art.1 pt.16 

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, 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

– 

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

investment, 

(cid:208) 2698/2000 Art.1 pt.16 

– 

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, 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

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 
Community, 

(cid:208) 2698/2000 Art.1 pt.16 

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 

23 

 
 
  
 
 
 
 
 
 
transition  and  the  accomplishment  of  a  Euro-Mediterranean  free  trade 
area, and to alleviate the negative effects which this process may have on 
social 
the  most 
underprivileged sections of the population, 

employment, 

conditions 

especially 

and 

for 

– 

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, 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

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 Community. 

II. 

Support for sustainable economic and social development shall include in particular: 

(cid:208) 2698/2000 Art.1 pt.16 

– 

– 

– 

– 

– 

– 

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, 

24 

 
 
  
 
 
 
 
– 

– 

– 

– 

– 

– 

– 

– 

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 cooperation, 

upgrading of economic infrastructures, particularly in the sectors of transport, 
energy,  rural  and  urban  development,  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, 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

strengthening  democracy,  respect  for,  and  defence  of,  human  rights,  in 
particular  through  non-governmental  organisations  in  the  Community  and  the 
Mediterranean partners, 

cultural cooperation and youth exchanges, 

(cid:208) 2698/2000 Art.1 pt.16 

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 trafficking 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, sub-regional and cross-border cooperation shall be supported in particular 
by: 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

(a) 

establishing  and  developing  structures  for  regional  cooperation  between  the 
Mediterranean partners, and between them and the ⌦ Community ⌫ and its 
Member States; 

25 

 
 
  
 
 
 
 
(cid:208) 2698/2000 Art.1 pt.16 

(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, 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

– 

cooperation on the level of large geographic regions as well as measures 
complementary to those undertaken in this field within the 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; 

(cid:208) 2698/2000 Art.1 pt.16 

(d) 

exchanges  between  civil  society  in  the  Community  and  the  Mediterranean 
partners; in this context, decentralised cooperation will: 

(cid:208) 2698/2000 Art.1 pt.16 
(adapted) 

– 

– 

have  as  its  objective  to  identify  the  non-governmental  beneficiaries  of 
Community aid, 

(cid:208) 2698/2000 Art.1 pt.16 

local 

the  networking  of  universities  and 
concentrate  particularly  on 
science 
researchers, 
foundations,  trade  unions  and  non-governmental  organisations,  the 
media,  private  business  and  cultural  institutions  in  the  widest  sense,  as 
well as the other bodies listed in point IV. 

associations,  political 

communities, 

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. 

26 

 
 
  
 
 
 
 
 
 
 
V. 

VI. 

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. 

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. 

_________________ 

27 

 
 
  
 
 
(cid:207) 

ANNEX III 

Repealed Regulation with its successive amendments 

Council Regulation (EC) No 1488/96 

(OJ L 189, 30.7.1996, p. 1) 

Council Regulation (EC) No 780/98 

(OJ L 113, 15.4.1998, p. 3) 

Council Regulation (EC) No 2698/2000 

(OJ L 311, 12.12.2000, p. 1) 

_________________ 

28 

 
 
  
 
 
ANNEX IV 

CORRELATION TABLE 

Regulation (EC) No 1488/96 

This Regulation 

Articles 1 to 7 

Article 8(1) 

Articles 1 to 7 

Article 8(1) 

Article 8(2), introductory wording 

Article 8(2), introductory wording 

Article 8(2), first indent 

Article 8(2), second indent 

Article 8(2), third indent 

Article 8(2)(a) 

Article 8(2)(b) 

Article 8(2)(c) 

Article 8(3), introductory wording 

Article 8(3), introductory wording 

Article 8(3), first indent 

Article 8(3), second indent 

Article 8(4) to (8) 

Articles 9 to 11 

Article 12(1) to (3) 

Article 12(4) 

Article 13(1) to 4 

Article 13(5) 

Article 8(3)(a) 

Article 8(3)(b) 

Article 8(4) to (8) 

Articles 9 to 11 

Article 12(1) to (3), first subparagraph 

Article 12(3), second subparagraph 

Article 13(1) to (4), first subparagraph 

Article 13(4), second subparagraph 

Articles 14, 15 and 16 

Articles 14, 15 and 16 

Article 17(1) 

Article 17(2) 

_____ 

Article 18 

Annex I 

Annex II 

_____ 

_____ 

_____ 

Article 17 

Article 18 

Article 19 

Annex I 

Annex II 

Annex III 

Annex IV 

_________________ 

29