2004/746/EC:Council Decision of 18 October 2004 on the fulfilment of the conditions laid down in Article 3 of the Additional Protocol to the Europe Agreement establishing an association between the European Communities and their Member States, of the one part, and the Republic of Bulgaria, of the other part, with regard to an extension of the period foreseen in Article 9(4) of Protocol 2 to the Europe Agreement
Date: 2004-10-18
Institutions: Council of the European Union
Subjects: Bulgaria, State aid, aid for restructuring, association agreement (EU), iron and steel industry, protocol to an agreement, renewal of an agreement

30.10.2004

EN

Official Journal of the European Union

L 328/101

COUNCIL DECISION

of 18 October 2004

on the fulfilment of the conditions laid down in Article 3 of the Additional Protocol to the Europe
Agreement establishing an association between the European Communities and their Member
States, of the one part, and the Republic of Bulgaria, of the other part, with regard to an
extension of the period foreseen in Article 9(4) of Protocol 2 to the Europe Agreement

(2004/746/EC)

(5)

(6)

(7)

(8)

(9)

(10)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty
Community, and in particular Article 87(3)(e) thereof,

establishing the European

Having regard to the Council Decision of 29 July 2002 on the
signature and provisional application of an Additional Protocol
to the Europe Agreement establishing an association between
the European Communities and their Member States, of the one
part, and the Republic of Bulgaria, of the other part, with regard
to an extension of
the period foreseen in Article 9(4) of
Protocol 2 to the Europe Agreement,

Having regard to the Additional Protocol
to the Europe
Agreement establishing an association between the European
Communities and their Member States, of the one part, and
the Republic of Bulgaria, of the other part, with regard to an
extension of the period foreseen in Article 9(4) of Protocol 2 to
the Europe Agreement, and in particular Article 3 thereof,

Having regard to the proposal of the Commission,

Whereas:

(1)

(2)

(3)

(4)

A Europe Agreement establishing an association between
the European Communities and their Member States, of
the one part, and the Republic of Bulgaria, of the other
part (1), came into force on 1 February 1995.

Article 9(4) of Protocol 2 of the Europe Agreement lays
down that during the first five years after entry into force
of the Agreement, and by derogation from paragraph
1(iii) of the same Article, Bulgaria may exceptionally, as
regards steel products, grant public aid for restructuring
purposes, provided that this leads to the viability of the
benefiting firms under normal market conditions at the
end of the restructuring period, the amount and intensity
of such aid are strictly limited to what
is absolutely
necessary in order
to restore such viability and are
progressively reduced and the restructuring programme
is linked to a global rationalisation and reduction of
overall production capacity in Bulgaria.

The initial period of five years expired on 31 December
1997.

The Republic of Bulgaria requested an extension of the
abovementioned period on 21 November 2002.

(1) OJ L 358, 31.12.1994, p. 3.

It is appropriate to grant an extension of this period for
an additional period of eight years starting on 1 January
1998 or until the date of Bulgaria's accession to the
European Union, whichever comes first.

To this effect, an Additional Protocol
to the Europe
Agreement was signed by the Community and Bulgaria
on 21 November 2002 and is provisionally applied from
that date.

Pursuant
to Article 2 of the Additional Protocol, the
extension of the abovementioned period is made condi-
tional on the submission by Bulgaria to the Commission
of a restructuring programme and business plans that
meet the requirements of Article 9(4) of Protocol 2 of
the Europe Agreement and have been assessed and
agreed
(the
Commission for Protection of Competition).

its national

authority

State

aid

by

In March 2004, Bulgaria submitted to the Commission a
restructuring programme and a business plan for its only
company having benefited or benefiting of a State
support for restructuring.

Pursuant
to Article 3 of the Additional Protocol, the
extension of the abovementioned period is made condi-
tional on a
restructuring
assessment of
programme and business plans by the Commission.

final

the

the

and

allow the

programme

The Commission has made a final assessment of the
business
restructuring
plan
indicates that
this assessment
submitted by Bulgaria;
the restructuring programme
the implementation of
and the business plan will
company
concerned to reach viability under normal market
conditions. It also shows that the amount of State aid
for restructuring purposes as specified in the plan is
strictly limited to what
is necessary to allow the
company concerned to reach viability and will be
progressively
reduced and stopped by 2005. The
assessment provides also that a global rationalisation
the beneficiary
and reduction of excess capacity of
company will be reached. The assessment
therefore
concludes that
the restructuring programme and the
business plan meet the requirements of Article 9(4) of
Protocol 2 of the Europe Agreement,

L 328/102

EN

Official Journal of the European Union

30.10.2004

HAS DECIDED AS FOLLOWS:

Article 1

The restructuring programme and business plan submitted to
the Commission by Bulgaria pursuant to Article 2 of the Addi-
tional Protocol to the Europe Agreement establishing an asso-
ciation between the European Communities and their Member
States, of the one part, and the Republic of Bulgaria, of the
other part, with regard to an extension of
the period laid
down in Article 9(4) of Protocol 2 to the Europe Agreement,
are in compliance with the requirements of Article 9(4) of
Protocol 2.

Article 2

The period during which Bulgaria may exceptionally, as regards
steel products, grant public aid for restructuring purposes in

accordance with the provisions of Article 9(4) of Protocol 2 is
hereby extended by an additional period of eight years starting
on 1 January 1998 or until the date of Bulgaria's accession to
the European Union, whichever comes first, as foreseen by
Article 1 of the Additional Protocol.

Done at Luxembourg, 18 October 2004.

For the Council
The President

C. VEERMAN