2005/576/: Council Decision of 18 July 2005 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 Romania, 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
Date: 2005-07-18
Institutions: Council of the European Union
Subjects: Romania, State aid, aid for restructuring, association agreement (EU), derogation from EU law, iron and steel industry, protocol to an agreement

L 195/22

EN

Official Journal of the European Union

27.7.2005

II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 18 July 2005

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 Romania, 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

(2005/576/EC)

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
the other part, with regard to an
part, and Romania, of
extension of the period laid down 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
Romania, 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, and in particular Article 3 thereof;

Having regard to the proposal from the Commission,

Whereas:

(1)

(2)

The Europe Agreement
establishing an association
between the European Communities and their Member
the other
the one part, and Romania, of
States, of
part (1), entered into force on 1 February 1995.

Article 9(4) of Protocol 2 to the Europe Agreement lays
down that during the first five years after entry into force
of the Agreement, and by derogation from paragraph
1(3), Romania may exceptionally,
steel
products, grant public aid for restructuring purposes,

regards

as

(1) OJ L 357, 31.12.1994, p. 2.

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
rationalising and reduction of capacity in
a global
Romania.

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

Romania requested an extension of the abovementioned
period in December 1997.

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

to the Europe
To this effect, an Additional Protocol
Agreement was
and
by
Romania on 23 October 2002 and is provisionally
applied from that date.

the Community

signed

Under Article 2 of the Additional Protocol, the extension
of the abovementioned period is made conditional on the
submission by Romania to the Commission of a restruc-
turing programme and business plans that meet
the
requirements of Article 9(4) of Protocol 2 to the
Europe Agreement and have been assessed and agreed
by its National State Aid Authority (the Competition
Council).

(3)

(4)

(5)

(6)

(7)

27.7.2005

EN

Official Journal of the European Union

L 195/23

(8)

(9)

(10)

the
In December 2004, Romania
Commission a restructuring programme and business
plans for those companies having benefited or benefiting
from state support for restructuring.

submitted

to

Under Article 3 of the Additional Protocol, the extension
of the abovementioned period is made conditional on a
final assessment of
the restructuring programme and
business plans by the Commission.

the

and

business

allow the

programme

The Commission has made a final assessment of the
restructuring
plans
submitted by Romania. This assessment indicates that
the restructuring programme
the implementation of
and the business plans will
companies
concerned to reach viability under normal market
conditions. It also shows that the amount of State aid
for restructuring purposes as specified in the plans is
strictly limited to what
is necessary to allow the
companies concerned to reach viability and has been
progressively reduced and stopped since the end of
2004. The assessment provides also that a global ratio-
nalisation and reduction of excess capacity of the bene-
reached. The assessment
ficiary companies will be
therefore concludes that
the restructuring programme
and the business plans meet the requirements of Article
9(4) of Protocol 2 to the Europe Agreement,

HAS DECIDED AS FOLLOWS:

Article 1

The restructuring programme and business plans submitted to
the Commission by Romania 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 Romania, 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

steel products, grant public aid for

The period, during which Romania may exceptionally, as
regards
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, as provided for by Article 1
of the Additional Protocol.

Done at Brussels, 18 July 2005.

For the Council
The President

J. STRAW