Regulation (EC) No 1934/2004 of the European Parliament and of the Council of 27 October 2004 amending Regulation (EC) No 1726/2000 on development cooperation with South Africa
Date: 2004-10-27
Institutions: Council of the European Union, European Parliament
Subjects: EU financing, EU programme, South Africa, cooperation policy, development aid, regional integration

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Official Journal of the European Union

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I

(Acts whose publication is obligatory)

REGULATION (EC) No 1934/2004 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

amending Regulation (EC) No 1726/2000 on development cooperation with South Africa

of 27 October 2004

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

(3)

Having regard to the Treaty establishing the European Commu-
nity, and in particular Article 179 thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in Article 251
of the Treaty (1),

Whereas:

(1)

(2)

Pursuant to Regulation (EC) No 1726/2000 of the Euro-
pean Parliament and of the Council of 29 June 2000 on
development cooperation with South Africa (2) the Com-
mission is to submit to the European Parliament and to the
Council a mid-term review by 31 October 2003. On the
basis of that mid-term review, certain amendments to
Regulation (EC) No 1726/2000 have been suggested.

The mid-term review includes suggestions and proposals
for improving the implementation of development coop-
eration with South Africa, some of which were already
made in the Country Strategy Paper of 2002 and have been
taken into account in the 2003 to 2005 Indicative Pro-
gramme. They concern, inter alia, mainstreaming of gen-
der issues at all levels of the project cycle from planning to
implementation, streamlining of administrative proce-
dures, improving criteria for assessing project and pro-
gramme design and clarification of the conditions for
granting contributions from the European Programme for
Reconstruction and Development
to regional
programmes.

(EPRD)

direct

budget

support. Regulation

In accordance with Council Regulation (EC, Euratom)
No 2988/95 of 18 December 1995 on the protection of
the European Communities’ financial interests (3), it is pos-
sible to provide funding to the Republic of South Africa
through
(EC)
No 1726/2000 could, however, be interpreted as exclud-
ing untargeted budget support. In addition, Council Regu-
lation (EC, Euratom) No 1605/2002 of 25 June 2002 on
the Financial Regulation applicable to the general budget
of the European Communities (4) contains in Title IV of
Part Two specific provisions for ‘External Actions’. It is,
therefore,
(EC)
to
No 1726/2000 into line with Regulation (EC, Euratom)
No 1605/2002 and with Commission Regulation (EC,
Euratom) No 2342/2002 of 23 December 2002 laying
down detailed rules for the implementation of Council
Regulation (EC, Euratom) No 1605/2002 on the Financial
Regulation applicable to the general budget of the Euro-
pean Communities (5).

bring Regulation

appropriate

(4)

(5)

(6)

In view of the implementation of the EPRD, and in particu-
lar of the 2000 to 2002 Multiannual Indicative Pro-
gramme, Regulation (EC) No 1726/2000 should be
adjusted, in particular in relation to the adoption of sector-
wide programmes, funding through budget support and
the joint funding of projects and programmes in the field
of regional cooperation and integration.

Regulation (EC) No 1726/2000 entered into force in 2000
and expires on 31 December 2006. However, Article 6(1)
requires triennial indicative programming to be carried
out. In order for programmes to correspond to the period
of validity of the Regulation, provision should also be
made for four-year indicative programmes.

The Partnership Agreement between the members of the
African, Caribbean and Pacific group of States, of the one
part, and the European Community and its Member States,
of the other part (6), to which South Africa is a signatory,
was signed in Cotonou on 23 June 2000. Protocol 3 of
that Agreement defines South Africa’s qualified status
under the Agreement.

(1) Opinion of the European Parliament of 31 March 2004 (not yet pub-
lished in the Official Journal). Council decision of 13 September 2004.

(2) OJ L 198, 4.8.2000, p. 1.

(3) OJ L 312, 23.12.1995, p. 1.
(4) OJ L 248, 16.9.2002, p. 1.
(5) OJ L 357, 31.12.2002, p. 1.
(6) OJ L 317, 15.12.2000, p. 3

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(7)

(8)

(9)

Council Decision 1999/753/EC (1) approved the provi-
sional application of the Agreement on Trade, Develop-
ment and Cooperation between the European Community
and its Member States and the Republic of South Africa.
Annex X to that Agreement stipulates that the Community
will provide assistance for the restructuring of the South
African wine and spirits sector and for the marketing and
distribution of South African wines and spirits. The two
corresponding Agreements on trade in wine and spirits
have been approved by Council Decision 2002/51/EC (2)
and by Council Decision 2002/52/EC (3) respectively. It is,
therefore, necessary to include an additional amount in the
financial reference amount provided for by Regulation (EC)
No 1726/2000.

In practice, the European Development Fund Committee
has been acting in the context of Regulation (EC)
No 1726/2000 as the ‘South Africa Committee’. It is
appropriate formally to establish that Committee.

Article 8(5) of Regulation (EC) No 1726/2000 requests
that the Commission consult the Committee on financing
decisions it intends to take concerning projects and pro-
grammes of a value of over EUR 5 million. For the sake of
sound financial management and rationalisation of proce-
dures, it is appropriate to raise this ceiling to EUR 8 million.

(10)

Regulation (EC) No 1726/2000 should, therefore, be
amended accordingly,

HAVE ADOPTED THIS REGULATION:

Article 1

Regulation (EC) No 1726/2000 is hereby amended as follows:

2.

In Article 2(2), the introductory phrase is replaced by the
following:

‘2.
Development cooperation to be carried out pursuant
to this Regulation shall focus mainly on the areas of coop-
eration referred to in Article 8 of Protocol 3 on South Africa
to the Cotonou Agreement and in particular on:’

3. Article 4 is hereby amended as follows:

(a) paragraph 2 is amended as follows:

(i)

in the first subparagraph, the introductory phrase is
replaced by the following:

‘2.

Community financing may cover:’

(ii)

in the first subparagraph, point (a) is replaced by the
following:

‘(a) government budget expenditure to support
reforms and policy implementation in the pri-
ority sectors identified through a policy dia-
logue, using the most appropriate instruments
including budgetary support and other specific
forms of budgetary aid;’

(iii) the second subparagraph is

replaced by the

following:

‘Part of the financing may be channelled towards
targeted final beneficiaries (e.g. emerging entrepre-
neurs) in the form of risk capital or other forms of
financial participation. The European Investment
Bank may be associated with the management of
these funds, as appropriate. The resources made
available under this Regulation shall not be used in
a manner that will permit unfair competition.’

1. Article 2(1) is replaced by the following:

(b)

the following paragraph is inserted:

‘1.
Programmes shall focus on the fight against poverty,
take into account the needs of the previously disadvantaged
integrate the environmental dimension of
communities,
development and mainstream gender equality, in particular
strengthening women’s participation at all levels of policy,
programming and implementation. In all these programmes
special attention shall be paid to the strengthening of insti-
tutional capacities.’

(1) OJ L 311, 4.12.1999, p. 1.
(2) OJ L 28, 30.1.2002, p. 3.
(3) OJ L 28, 30.1.2002, p. 112.

‘4a.
Financing of individual projects and programmes
for regional cooperation and integration shall be pro-
vided from the EPRD and/or from regional funds under
the European Development Fund (EDF).

The Commission shall strive to ensure balanced funding
from both sources at the level of the Multiannual Indica-
tive Programme, by committing to regional cooperation
and integration an indicative percentage of the EPRD
similar to the share of EDF funds dedicated to regional
cooperation and integration in the Financial Protocol to
the Cotonou Agreement.’

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4. Article 5 is deleted.

5. Article 6 is replaced by the following:

‘Article 6

Programming

1. Multiannual indicative programming shall be carried
out in the context of close contacts with the South African
Government and taking account of the results of the coordi-
nation referred to in Article 4(6) and (7). The indicative pro-
gramming process will fully respect the principle of recipient-
led programming.

2.
In order to prepare for each programming exercise, in
the context of increased coordination with the Member
States, including on the spot, the Commission shall draw up
a country strategy paper in dialogue with the South African
Government. This country strategy paper shall take into
account the results of the most recent overall evaluation of
operations financed pursuant to Regulation (EC) No 2259/96
and in accordance with this Regulation and of other regular
evaluations of operations. It will be linked to a problem-
oriented analysis, and integrate cross-cutting issues such as
poverty reduction, gender equality, environment and sustain-
ability. A draft of the Multiannual Indicative Programme will
be annexed to the country strategy paper. A limited number
of sectors of cooperation based on the areas identified in
Article 2 shall be selected. For these sectors, modalities and
accompanying measures shall be set out. As far as possible,
performance indicators shall be developed in order to facili-
tate the implementation of the objectives and its evaluation
of impact. The country strategy paper and the draft Multian-
nual Indicative Programme shall be examined by the geo-
graphically determined committee competent for develop-
ment as referred to in Article 8(1), hereafter referred to as
“the Committee”. The Committee shall give its opinion in
accordance with the procedure referred to in Article 8(2).

The Multiannual Indicative Programme shall be nego-
3.
tiated and signed by the Commission and the South African
Government. The final result of the negotiations shall be sent
to the Committee for information. If requested by one or
more Committee members, this document will be discussed
by the Committee.

4.
The Committee shall once a year review the function-
ing, results and continued relevance of the country strategy
paper and the Multiannual Indicative Programme. If evalua-
tions or other relevant developments so indicate, the Com-
mittee may invite the Commission to negotiate with the
South African Government amendments to the Multiannual
Indicative Programme.

5.
The Committee shall once a year, on the basis of a pre-
sentation by the Commission, discuss the general guidelines
for the operations to be carried out in the year ahead.’

6. Article 7(2) is deleted.

7. Article 8 is hereby amended as follows:

(a) paragraph 1 is replaced by the following:

The Commission shall be assisted by the South
referred to as “the

‘1.
Africa Committee, hereinafter
Committee”.’

(b)

in paragraphs 5 and 6 the amount of ‘EUR 5 million’ is
replaced by ‘EUR 8 million’.

8.

In Article 10(1) the amount of ‘EUR 885,5 million’ is replaced
by ‘EUR 900,5 million’.

Article 2

This Regulation shall enter into force on the 20th day after 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 Strasbourg, 27 October 2004.

For the European Parliament
J. BORRELL FONTELLES
The President

For the Council
A. NICOLAI
The President