Common Position (EC) No 23/2004 of 24 February 2004 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a regulation of the European Parliament and of the Council amending Council Regulation (EC) No 2236/95 laying down general rules for the granting of Community financial aid in the field of trans-European networks
Date: 2004-02-24
Institutions: Council of the European Union
Subjects: EU aid, balance of payments assistance, trans-European network, transport network

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COMMON POSITION (EC) No 23/2004

adopted by the Council on 24 February 2004

with a view to adopting Regulation (EC) No . . ./2004 of the European Parliament and of the
Council of . . . amending Council Regulation (EC) No 2236/95 laying down general rules for the
granting of Community financial aid in the field of trans-European networks

(2004/C 95 E/04)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF
THE EUROPEAN UNION,

need for continued financial
projects.

support

for non-priority

Having regard to the Treaty establishing the European
Community, and in particular the first paragraph of Article
156 thereof,

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

Having regard to the opinion of the European Economic and
Social Committee (2),

After consulting the Committee of the Regions,

Acting in accordance with the procedure laid down in Article
251 of the Treaty (3),

Whereas:

(1) The high-level group on the trans-European transport
network chaired by Mr Karel Van Miert
expressed
concern that the delays in the cross-border sections of the
priority projects on the trans-European transport network
(TEN) were having an adverse effect on the profitability of
the investments made by the Member States in the sections
in their own country, denying them the benefit of
the rate of
economies of scale, and recommended that
Community financing should be differentiated, according
to the benefits to other countries, in particular the neigh-
bouring countries, stressing that such modulation should in
the first instance benefit the cross-border projects used by
long-distance transport services. Moreover, the Community
financing rate should be differentiated according to the
extent to which the project's economic benefits exceed its
financial profitability.

(2) To this end the high-level group recommended a higher
rate of Community aid to promote completion of the cross-
border connections for the priority projects and added that
the budgetary impact of such a change would be limited.
This should be implemented bearing in mind the need to
focus TEN resources on key projects, while recognising the

(1) OJ C 75 E, 26.3.2002, p. 316 and OJ C 151 E, 25.6.2002, p. 291.
(2) OJ C 125, 27.5.2002, p. 13.
(3) Opinion of the European Parliament of 2 July 2002 (OJ C 271 E,
12.11.2003, p. 163), Council common position of 24 February
2004 and position of the European Parliament of . . .
(not yet
published in the Official Journal).

(3) The possibility should be given to meet
commitments by means of annual
basing
commitment.

them on

global

a

the budgetary
instalments, while
legal

and multiannual

(4) A temporary increase in the rate of Community aid may
provide an incentive for actors to speed up and to render
effective the implementation of priority projects covered by
this Regulation.

(5) The establishment of public-private partnerships (or of
other
forms of cooperation between the public and
private sectors) demands a firm financial commitment
from institutional investors which is sufficiently attractive
to raise private capital. Granting Community financial aid
on a multiannual basis would remove the uncertainties
which are slowing down project development. Measures
financial support to
should therefore be taken to grant
the projects selected on the basis of a multiannual
legal
commitment.

(6) Cross-border connections between energy networks are
important for ensuring smooth operation of the internal
market, security of supply and optimum use of energy
infrastructure. Priority projects on the energy networks,
which are necessary in the interests of
the European
economy but unprofitable in business terms and which
do not distort competition between enterprises, should
therefore also qualify for higher financial aid. This aid is
in respect of priority projects on the energy networks.

(7) Council Regulation (EC) No 2236/95 (4) should be adapted
to take account of Council Decision 1999/468/EC of
28 June 1999 laying down the procedures
the
exercise of
conferred on the
implementing powers
Commission (5).

for

(8) Regulation (EC) No 2236/95 should therefore be amended

accordingly,

(4) OJ L 228, 23.9.1995, p. 1. Regulation as amended by Regulation
(EC) No 1655/1999 of the European Parliament and of the Council
(OJ L 197, 29.7.1999, p. 1).
(5) OJ L 184, 17.7.1999, p. 23.

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HAVE ADOPTED THIS REGULATION:

Article 1

commitment shall be multiannual and the budgetary
commitments shall be met in annual instalments.’

Regulation (EC) No 2236/95 is hereby amended as follows:

2. In Article 13, the following paragraph is added:

1. Article 5 is amended as follows:

(a) paragraph 3 is replaced by the following:

‘3.
Regardless of the form of intervention chosen, the
total amount of Community aid pursuant to this Regu-
lation shall not exceed 10 % of the total investment cost.
the total amount of Community aid may
However,
investment cost
exceptionally reach 20 % of the total
in the following cases:

(a) Projects concerning satellite positioning and navi-
gation systems, as provided for in Article 17 of
European
Decision No
Parliament and of the Council of 23 July 1996 on
Community guidelines for the development of the
trans-European transport network (*);

1692/96/EC

the

of

(b) Priority projects on the energy networks;

(c) Sections of

the projects of European interest,
provided that the projects are started before 2010,
identified in Annex III to Decision No 692/96/EC
with the aim of eliminating bottlenecks and/or
filling in missing sections, if such sections are cross-
border or cross-natural-barrier, and contribute to the
integration of the internal market in an enlarged
Community, promote safety, ensure the interoper-
ability of
the national networks and/or strongly
contribute to the reduction of imbalances between
the most
modes of
transport,
rate shall be
environment-friendly modes. This
differentiated according to the benefits to other
countries, in particular neighbouring Member States.

in favour of

___________
(*) OJ L 228, 9.9.1996, p. 1. Decision as amended by
Decision No 1346/2001/EC (OJ L 185, 6.7.2001,
p. 1).’;

(b) the following paragraph is added:

‘5.
3, within the limits of

In the case of the projects referred to in paragraph
the legal

this Regulation,

If, 10 years after the financial aid was awarded, the
‘4.
operation in question has not been completed,
the
Commission may demand reimbursement of the aid paid,
with due regard to the principle of proportionality, taking
into account all relevant factors.’

3. Article 17 is replaced by the following:

‘Article 17

Committee procedure

1.
The Commission shall be
implementation of this Regulation.

responsible

for

the

2.
The Commission shall be assisted by a committee. The
European Investment Bank shall appoint a representative to
the committee who shall not vote.

3. Where reference is made to this Article, Articles 5 and
7 of Council Decision 1999/468/EC of 28 June 1999 laying
implementing
down the procedures for the exercise of
shall apply,
conferred on the Commission (*)
powers
having regard to the provisions of Article 8 thereof.

The period laid down in Article 5(6) of Decision
1999/468/EC shall be set at three months.

4.

The committee shall adopt its Rules of Procedure.

___________
(*) OJ L 184, 17.7.1999, p. 23.’

4. In Article 18, the following paragraph is added:

‘The allocation of funds shall be linked to the qualitative and
quantitative level of implementation.’

Article 2

This Regulation shall enter
into force on the 20th 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 . . .

For the European Parliament

The President

For the Council

The President

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

1. On 4 December 2001, the Commission submitted a proposal to the European Parliament and to
Council in order to increase the Community aid for certain TEN transport priority projects to 20 %
maximum.

2. On 14 March 2002 the Commission amended its proposal by extending it to TEN priority energy

projects.

3. On 20 March 2002, the Economic and Social Committee adopted its opinion approving the

proposal.

4. On 25 March 2002, the Committee of the Regions decided not to give an opinion on the proposal.

5. On 2 July 2002, the European Parliament adopted an opinion at first reading on the amended

proposal under point 2, approving this proposal and proposing several amendments to it.

6. On 28 January 2003,
Parliament's opinion.

the Commission altered its amended proposal

following the European

7. On 6 October 2003, the Commission altered its amended proposal under point 6 again in order to

increase the rate of the Community support to these TEN projects to 30 % maximum.

8. On 25 November 2003,

the Council and the Commission representative reached unanimous
agreement on a compromise for a common position as set out in document 15280/03 and
related statements for the Council minutes as set out in document 5644/04, addendum 1.

9. On 24 February 2004, the Council adopted its common position pursuant to Article 251 of the

Treaty.

II. SUBSTANCE

1. The substance of the Council's common position is closely based on the amended proposal (point
I.6) which the Commission submitted following the opinion of the European Parliament of 2 July
2002.

2. Thus the Council in principle agreed on a rate increase to 20 % maximum for the Community

support to the following TEN priority projects:

(a) satellite positioning and navigation systems as provided for

in Article 17 of Decision

No 1692/96/EC (Galileo-type projects);

(b) priority projects on the energy networks;

and

(c) cross-border or cross-natural-barriers sections of selected TEN transport projects as identified in
Annex III to Decision No 1692/96/EC, provided in particular that the projects are started before
2010.

3. Therefore the main part of the Community support pursuant to the common position will be aimed,
as proposed by the Commission and supported by the European Parliament, to contribute decisively
to the realisation of the outstanding priority TEN transport projects.

4. At the same time, but with a much lesser budgetary impact, Community support will be targeted to

TEN priority energy projects and Galileo-type projects.

5. The common position does not concern the e-TEN priority projects (Telecom) for which the
Commission has tabled a separate proposal, which remains on the table (doc. 9099/03 interinsti-
tutional file 2003/0086 (COD)).

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6. The further provisions of the common position principally relate to budgetary procedure and

commitology.

7. Concerning commitology it should be noted in particular that the common position maintains the
regulatory procedure as presently foreseen for TEN implementation measures and does therefore not
follow the advisory procedure, as proposed by the European Parliament and the Commission.

8. However, the common position does provide that an EIB representative without voting rights can
take part in the commitology proceedings, as proposed by the European Parliament, thus allowing
the EIB to contribute its special expertise on TEN financing to the Committee's deliberations.

III. THE PARLIAMENT AMENDMENTS OF 2 JULY 2002 CONCERNING THE LEGISLATIVE TEXT

1. Concerning the TEN transport priority projects, the common position reflects to a large extent the
European Parliament amendments 8 and 13. Thus the cross-border sections or cross-national-
barriers sections of these projects must indeed aim to eliminate bottlenecks, and/or to fill
in
missing sections and to promote safety, as proposed by the Parliament.

2. On the contrary, as the amended proposal of the Commission, the common position does not
follow the report procedure to the European Parliament and the Council for the selection of the
priority energy projects, which was proposed by the Parliament.

3. However, the common position does follow amendment 9 on the reimbursement of the Community
funds in case the project is not completed within 10 years after the financial aid was paid out (new
Article 13(4)) and, as stated before, amendment 10 on the presence of an EIB representative in the
Committee procedure.

4. Furthermore, the common position follows amendment 11 second indent on the allocation of funds

(new Article 18(2)).

IV. ANALYSIS OF THE COMMON POSITION

1. As

stated above,

the common position follows closely the amended proposal, which the

Commission submitted following the opinion of the European Parliament.

2. For this reason it follows to a large extent the amendments of the European Parliament, which were
accepted by the Commission. For the same reason, the amendments which were not accepted by the
Commission were in general also not accepted by the Council, this because the Council on these last
amendments followed the negative advice given by the Commission in its amended proposal,
following the European Parliament opinion (point I.6).

3. The common position is furthermore based on the last amended Commission proposal, which

provides for a maximum rate increase for the Community aid to 30 % (point I.7).

However, on such a high support rate, sufficient support could not be found in the Council which,
as a compromise, accepted the 20 % maximum rate, also approved by the European Parliament in
its opinion.

4. As recalled above, the common position does not concern the separate proposal of the Commission
on the TEN priority telecom projects (doc. 9099/03, interinstitutional file 2003/0086 (COD)) which
remains on the table.

V. CONCLUSIONS

For these reasons, the Council communicates to the European Parliament its common position as set
out in document 5633/1/04 Rev 1.