Proposal for a Regulation of the European Parliament and of the Council establishing a European grouping of cross-border cooperation (EGCC)
Date: 2004-07-14
Institutions: European Commission
Subjects: EU body for police and judicial cooperation, cross-border cooperation, economic and social cohesion, local authority, regional authority

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 14.7.2004 
COM(2004) 496 final 

2004/0168 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a European grouping of cross-border cooperation (EGCC) 

(presented by the Commission) 

EN 

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EXPLANATORY MEMORANDUM 

Member  States  and  regional  and  local  authorities  have  experienced  important  difficulties  in 
carrying  out  and  managing  actions  of  cross-border  co-operation,  trans-national  co-operation 
and  inter-regional  co-operation,  within  the  framework  of  differing  national  laws  and 
procedures.  This  calls  for  appropriate  measures  at  the  community  level  in  order  to  reduce 
these difficulties.  

The  harmonious  development  of  the  entire  community  territory  and  reinforced  economic, 
social and territorial cohesion imply a stronger cross-border co-operation and the adoption of 
measures to improve the implementation conditions for cross-border co-operation. 

To  this  end,  article  159,  third  paragraph,  allows  for  specific  actions  to  be  taken  outside  the 
funds which are the subject of the first paragraph of this article, in order to achieve the treaty 
objective of greater economic and social cohesion. 

In  order  to  overcome  the  obstacles  hindering  cross-border  co-operation,  it  is  necessary  to 
introduce a co-operation instrument at the community level, which allows the creation of co-
operative  groupings  in  the  community  territory,  invested  with  legal  personality,  called 
“European  groupings  of  cross-border  co-operation”  (EGCC).  Recourse  to  the  EGCC  should 
be optional. 

The EGCC is invested with the capacity to act on behalf of its members, notably the regional 
and local authorities of which it is composed. The tasks delegated to it must be defined by its 
members, in a convention of European cross-border co-operation. 

The  EGCC  must  be  able  to  act,  either  for  implementing  programmes  of  cross-border  co-
operation  co-financed  by  the  Community,  notably  by  the  structural  funds,  as  well  as  trans-
national  and  inter-regional  co-operation  programmes,  or  for  carrying  out  cross-border  co-
operation programmes which are at the sole initiative of the Member States and their regional 
and local authorities, without financial contribution by the Community. 

The  financial  responsibility  of  regional  and  local  authorities,  as  well  as  that  of  the  Member 
States, is not affected by the formation of an EGCC, with regard to both the management of 
Community funds and national funds. 

The  powers  exercised  by  regional  and  local  authorities  as  public  authorities,  notably  police 
and regulatory powers, cannot be the subject of a convention. 

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2004/0168 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a European grouping of cross-border cooperation (EGCC) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
159, third paragraph thereof, 

Having regard to the proposal from the Commission1, 

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

Having regard to the opinion of the Committee of the Regions3, 

Acting in accordance with the procedure laid down in Article 251 of the Treaty4, 

Whereas: 

(1) 

(2) 

(3) 

Article  159,  paragraph  3,  of  the  treaty  provides  for  specific  actions  to  be  decided 
outside  the  funds  which  are  the  subject  of  paragraph  1  of  that  article,  in  order  to 
achieve  the  objective  of  social  and  economic  cohesion  envisaged  by  the  treaty.  The 
harmonious  development  of  the  entire  community  territory  and  greater  economic, 
social  and  territorial  cohesion  imply  the  strengthening  of  cross-border  co-operation. 
To  this  end  it  is  appropriate  to  adopt  the  measures  necessary  for  improving  the 
implementation conditions for actions of cross-border co-operation. 

Taking  into  account  the  important  difficulties  encountered  by  the  Member  States,  in 
particular by the regions and local authorities, in implementing and managing actions 
of cross-border, trans-national or inter-regional co-operation within the framework of 
differing  national  laws  and  procedures,  measures  to  reduce  these  difficulties  are 
necessary. 

Taking into account notably the increase in the number of land and maritime borders 
in  the  community  following  its  enlargement,  it  is  necessary  to  facilitate  the 
reinforcement  of  cross-border,  trans-national  and  inter-regional  co-operation  in  the 
Community. 

1 
2 
3 
4 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ C […], […], p. […]. 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

The  existing  instruments,  such  as  the  European  economic  interest  grouping,  have 
proven  ill-adapted  to  organising  a  structured  co-operation  of  structural  fund 
programmes  within  the  INTERREG  initiative  during  the  2000-2006  programming 
period. 

Council  Regulation  (EC)  No  (…)  laying  down  general  provisions  for  the  European 
regional development fund, the European social fund and the Cohesion fund, increases 
the means in support of European territorial co-operation. 

It is likewise necessary to facilitate and follow up the implementation of cross-border 
co-operation actions, without financial participation by the Community. 

In order to overcome the obstacles hindering cross-border co-operation, it is necessary 
to  institute  a  co-operation  instrument  at  the  community  level,  which  allows  the 
creation  of  co-operative  groupings  in  the  community  territory,  invested  with  legal 
personality,  called  “European  groupings  of  cross-border  co-operation”  (EGCC). 
Recourse to the EGCC should be optional. 

It is appropriate for the EGCC to be given the capacity to act on behalf of its members, 
and notably the regional and local authorities of which it is composed 

The  tasks  and  competencies  of  the  EGCC  must  be  set  out  in  a  “Convention  of 
European cross-border co-operation”. 

(10)  The  members  may  decide  to  set  up  the  EGCC  either  as  a  separate  legal  entity  or  to 

assign its tasks to one of the members. 

(11)  The EGCC must be able to act, either for implementing programmes of cross-border 
co-operation  co-financed  by  the  Community,  notably  within  the  structural  funds  in 
conformity  with  Regulation  (EC)  No  (…)  and  Regulation  (EC)  No  (…)  on  the 
European Regional Development Fund, as well as trans-national and inter-regional co-
operation  programmes,  or  for  carrying  out  cross-border  co-operation  programmes 
which  are  at  the  sole  initiative  of  the  Member  States  and  their  regional  and  local 
authorities, without financial contribution by the Community. 

(12) 

(13) 

(14) 

It should be specified that the financial responsibility of regional and local authorities, 
as  well  as  that  of  the  Member  States,  is  not  affected  by  the  formation  of  an  EGCC, 
with regard to both the management of Community funds or national funds. 

It  should  be  specified  that  the  powers  exercised  by  regional  and  local  authorities  as 
public  authorities,  notably  police  and  regulatory  powers,  cannot  be  the  subject  of  a 
convention. 

It  is  necessary  for  the  EGCC  to  establish  its  statutes,  and  equip  itself  with  its  own 
organs,  as  well  as  rules  for  the  budget  and  for  the  exercise  of  its  financial 
responsibility. 

(15)  Since  the  conditions  for  cross-border  co-operation,  as  specified  in  this  regulation, 
cannot  be  created  in  an  efficient  way  by  the  Member  States,  and  are  thus  better 
established at the community level, the Community can take measures, in accordance 
with the subsidiarity principle enshrined in article 5 of the treaty. In accordance with 
the proportionality principle set out in that article, this regulation does not exceed what 

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is  necessary  for  achieving  its  objectives,  recourse  to  the  EGCC  being  optional,  in 
accordance with the constitutional system of each Member State, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Nature of the EGCC 

A co-operative grouping can be established on community territory in the form of a 
European  grouping  of  cross-border  co-operation,  hereafter  referred  to  as  “EGCC”, 
under the conditions and according to the modalities envisaged by this regulation. 

The EGCC is invested with legal personality. 

The  objective  of  the  EGCC  is  to  facilitate  and  promote  cross-border  co-operation 
between  Member  States,  a  well  as  regional  and  local  authorities,  with  the  aim  of 
reinforcing economic, social and territorial cohesion.  

In the same aim, it can equally have the objective of facilitating and promoting trans-
national and inter-regional co-operation. 

Article 2 

Composition 

The EGCC can be made up of Member States and/or regional and local authorities 
and/or local public bodies, hereafter referred to as “members”. 

The creation of an EGCC is decided at the initiative of its members.  

The members can decide to set up the EGCC as a separate legal entity, or to assign 
its tasks to one of the members. 

Article 3 

Competence 

The EGCC  carries  out  the tasks which it is assigned by its members in accordance 
with this regulation. Its competencies are defined by a convention of European cross-
border  co-operation,  hereafter  referred  to  as  “convention”,  which  is  passed  by  the 
members, in conformity with article 4 of this regulation. 

Within the limits of its tasks, the EGCC acts on behalf of its members. To this end, 
the  EGCC  is  invested  with  the  legal  capacity  accorded  to  legal  entities  by  national 
legislations. 

1. 

2. 

3. 

1. 

2. 

3. 

1. 

2. 

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3. 

The  EGCC  can  be  given  the  task  either  of  implementing  cross-border  co-operation 
programmes co-financed by the community, notably through the structural funds, or 
of  carrying  out  any  other  action  of  cross-border  co-operation  with  or  without 
community financial intervention. 

The formation of an EGCC does not affect the financial responsibility of its members 
or of the Member States, neither for community funds nor for national funds. 

4. 

A  convention  cannot  concern  the  delegation  of  powers  of  public  authority,  notably 
police and regulatory powers. 

Article 4 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Convention of European cross-border cooperation 

All EGCC are the subject of a convention.  

The convention specifies the tasks of the EGCC, its duration and the conditions for 
its dissolution. 

The  convention  is  limited  solely  to  the  domain  of  cross-border  co-operation 
determined by its members.  

The convention stipulates the responsibilities of each of the members with respect to 
the EGCC and with respect to third parties.  

The convention defines the law applicable to its interpretation and enforcement. The 
applicable  law  is  from  one  of  the  Member  States  concerned.  In  case  of  a  dispute 
between members, the competent jurisdiction is that of the Member State whose law 
was chosen. 

The  convention  establishes  the  modalities  of  mutual  recognition  in  the  field  of 
control. 

The  conditions  for  granting  concessions  or  public  service  delegations  to  the  EGCC 
within the cross-border co-operation are to be defined in the convention, on the basis 
of the applicable national law.  

8. 

The convention is notified to all its members and to the Member States. 

Article 5 

Statutes 

The EGCC adopts its statutes on the basis of the convention. 

The statutes contain the following provisions: 

a) 

the list of its members; 

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1. 

2. 

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b) 

the objective and tasks of the EGCC, and its relations with the members; 

c) 

d) 

e) 

f) 

g) 

h) 

i) 

its name and the address of its seat; 

its  organs  and 
its 
representatives of the members on the organs; 

their  competencies, 

functioning, 

the  number  of 

the decision-making procedures of the EGCC; 

the establishment of the working language or languages; 

the  modalities  for  its  functioning,  notably  concerning  personnel  management, 
recruitment  procedures,  the  nature  of  personnel  contracts,  guaranteeing 
stability of co-operation actions; 

the  modalities  for  the  members’  financial  contributions  and  the  applicable 
accounting and budgetary rules; 

the  designation  of  independent  organisation  of  financial  control  and  external 
audit. 

If  a  member  is  assigned  the  tasks  of  the  EGCC,  in  accordance  with  article  2, 
paragraph 3, the content of the statutes can be a part of the convention. 

Upon adoption of the statutes, the EGCC has the capacity to act, in accordance with 
article 3, paragraph 2. 

Article 6 

Organs 

The EGCC is represented by a director, who acts on its behalf. 

The EGCC can equip itself with an assembly, which is made up by representatives of 
its members. 

The statutes can envisage supplementary organs 

Article 7 

Budget 

The  EGCC  establishes  an  annual  provisional  budget,  which  is  adopted  by  the 
members.  It  draws  up  an  annual  activity  report,  certified  by  experts  who  are 
independent of the members. 

The members are financially liable on a pro-rata basis according to their contribution 
to the budget, until the EGCC’s debts are eliminated. 

3. 

4. 

1. 

2. 

3. 

1. 

2. 

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Article 8 

Publicity 

The  EGCC  is  published  in  the  Official  Journal  of  the  European  Union,  once  it  has  the 
capacity to act, in accordance with article 5, paragraph 4. As of this instant, the legal capacity 
of the EGCC is recognised in each Member State. 

This publication includes the name of the EGCC, its objective, the list of its members and the 
address of its seat. 

Article 9 

Entry into force 

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

It shall apply from 1 January 2007. 

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

Done at Brussels, […]. 

For the European Parliament 
The President 
[…] 

For the Council 
The President 
[…] 

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