Commission Regulation (EC) No 439/2007 of 20 April 2007 implementing Council Decision 2006/526/EC on relations between the European Community on the one hand, and Greenland and the Kingdom of Denmark on the other
Date: 2007-04-20
Institutions: European Commission
Subjects: Denmark, EU aid, European Community, Greenland, association agreement (EU), cooperation agreement (EU), economic development, financial aid, sustainable development

L 104/20

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Official Journal of the European Union

21.4.2007

COMMISSION REGULATION (EC) No 439/2007

of 20 April 2007

implementing Council Decision 2006/526/EC on relations between the European Community on
the one hand, and Greenland and the Kingdom of Denmark on the other

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

as well as for reporting. Such provisions should cover the
participation of the Commission in those activities.

Having regard to the Treaty
Community,

establishing the European

Having regard to Council Decision 2006/526/EC (1), and in
particular Article 9 thereof,

Having regard to the Council Regulation (EC, Euratom) No
1605/2002 on the Financial Regulation applicable to the
general budget of the European Communities (2),

(5)

(6)

The measures provided for in this Regulation have been
subject to consultation with the Home Rule Government
of Greenland and the Government of Denmark.

The measures provided for in this Regulation are in
accordance with
the Greenland
Committee established by Article 10 of the Decision,

opinion

the

of

Whereas:

HAS ADOPTED THIS REGULATION:

(1)

(2)

(3)

(4)

Decision 2006/526/EC (hereinafter the Decision) requires
the Commission to adopt
implementing provisions
concerning Part Two of the Decision in close consul-
tation with the Home Rule Government of Greenland
and
the
framework of the partnership procedure.

of Denmark within

the Government

The provisions adopted by the Commission pursuant to
Article 9 of the Decision should be consistent with the
principles of sound financial management, partnership,
complementarity and subsidiarity, and should ensure
of
ownership
Greenland of
the development process as well as
adequate monitoring and auditing by the Home Rule
Government of Greenland itself and the Commission.

the Home Rule Government

by

Pursuant to Article 11(2) of the Decision and taking into
account the specific needs and capabilities of the Home
Rule Government of Greenland and the way in which it
manages public expenditure, financial assistance should
be granted as budgetary support.

Provisions should be established for the preparation and
adoption by the Home Rule Government of Greenland
the indicative Programming
and the Commission of
Document
of
Greenland referred to in Article 6 of the Decision and
for its implementation, follow-up, evaluation and review,

Sustainable Development

the

for

(1) OJ L 208, 29.7.2006, p. 28.
(2) OJ L 248, 16.9.2002, p. 1. Regulation as last amended by Regu-
lation (EC, Euratom) No 1995/2006 (OJ L 390, 30.12.2006, p. 1).

Article 1

Subject matter

review and evaluation of

This Regulation lays down the procedures for the programming,
implementation, monitoring,
the
Community financial assistance to Greenland managed by the
Commission from 1 January 2007 to 31 December 2013, in
accordance with the provisions of Decision 2006/526/EC and
the Financial Regulation applicable to the general budget of the
European Communities.

Article 2

Complementarity and partnership

The programming,

implementation, monitoring, review
1.
and evaluation of support shall be carried out in close consul-
tation between the Home Rule Government of Greenland, the
Government of Denmark and the Commission.

The Home Rule Government of Greenland shall ensure
2.
that
society are adequately
the local authorities and civil
consulted during the programming process.

of Greenland,

The Home Rule Government

3.
the
Government of Denmark and the Commission shall promote
coordination and consistency between measures undertaken
pursuant to this Regulation, measures undertaken with contri-
butions
from the EDF and operations undertaken by the
European Investment Bank on the one hand, and contributions
from the Government of Denmark on the other.

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Article 3

Programming

Committee has been delivered in accordance with Article
10(2) of the Decision.

1.
Operations financed by Community financial assistance
within the framework of the Decision shall be programmed
as soon as possible after the entry into force of this Regulation
by means of the adoption of a Programming Document for the
Sustainable Development of Greenland (hereinafter PDSD)
structured in accordance with the model in the Annex to this
Regulation.

The Home Rule Government of Greenland shall prepare a
for the PDSD following consultations with stake-
in the development process, and shall draw on

2.
proposal
holders
lessons learned and best practices.

The proposal for the PDSD shall be adapted to the needs and
respond to the specific circumstances of Greenland.
It shall
prioritise activities and build local ownership of cooperation
programmes.

The proposal shall be submitted to the Commission not later
than three months after the entry into force of this Regulation.

3.
The draft PDSD shall be the subject of an exchange of
views between the Home Rule Government of Greenland, the
taking into
Government of Denmark and the Commission,
account
the
response strategy.

the Commission's

responsibility

regarding

The Home Rule Government of Greenland shall provide all the
including the results of any feasibility
necessary information,
studies,
the draft PDSD by the
to make the appraisal of
Commission as effective as possible.

Article 4

Implementation

1.
Expenditure on financial assistance for Greenland pursuant
to the Decision shall be committed by the Commission in
accordance with the Financial Regulation applicable to the
general budget of
the European Communities and Article
11(3) of the Decision.

2. Within the scope of the PDSD, commitment of expen-
diture shall be preceded by an annual Commission financing
decision covering sectoral budgetary support,
followed by a
financing agreement concluded between the Commission and
the Home Rule Government of Greenland. The annual financing
decision shall be adopted by the Commission after the opinion
of the Greenland Committee has been delivered in accordance
with Article 10(2) of the Decision.

3. Within the overall annual amount, an indicative amount
of 1 % maximum shall be used to cover the resources required
for
the
assistance.

the Commission of

administration by

effective

Article 5

Monitoring, review and evaluation

1. Without prejudice to the Commission's responsibility for
implementing the Community financial support, the Home Rule
Government of Greenland shall take responsibility in the first
instance for the financial control of such support.

Any divergences between the own analysis of the Home Rule
Government of Greenland and the analysis of the Commission
shall be noted.

The Commission and the Home Rule Government of Greenland
shall cooperate and coordinate plans, methods and implemen-
tation of checks so as to maximise the usefulness of the checks
carried out. They shall immediately exchange the results of the
checks carried out.

for

The Commission shall appraise the proposal

the
4.
PDSD, not later than 30 days after it was submitted by the
Greenland Home Rule Government, to determine whether it
the annual
contains all
financing decision in accordance with Article 6(4) of
the
Decision and whether the PDSD is consistent with the aims
of the Decision, this Regulation and the relevant Community
policies.

required to adopt

elements

the

for

The Home Rule Government of Greenland shall be
5.
responsible
PDSD. The Home Rule
the
Government of Greenland and the Commission shall be
jointly responsible for adopting the PDSD. The Commission
the Greenland
shall adopt

the PDSD after the opinion of

finalising

The Home Rule Government of Greenland shall supervise

2.
the implementation of the PDSD.

In order to verify the effectiveness and quality of the implemen-
tation of assistance, the Home Rule Government of Greenland
shall follow and review the progress made towards achieving
the specific objectives of the PDSD.

The Home Rule Government of Greenland shall carry out the
monitoring by reference to indicators specified in the PDSD and
the annual financing agreement. The indicators shall relate to
the specific character of the programme and its objectives.

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The Home Rule Government of Greenland shall draw up
3.
and submit to the Commission annual implementation reports
in accordance with the timetable set out
in the financing
agreements to be concluded each year between the Commission
and the Home Rule Government of Greenland.

This annual
implementation report shall be produced locally
and shall be finalised between the Home Rule Government of
Greenland and the Commission within a period of 60 days.

It shall include in particular:

(a) an assessment of the results achieved in the focal sector(s)
measured against the targets identified in the PDSD and the
monitoring indicators and sectoral policy commitments;

(b) an assessment of the implementation of current operations
as provided for in the financing agreements and the extent
to which the timetable for commitments and payments has
been met; and

(c) a statement assuring legality and regularity.

In the context of

4.
the mid-term review referred to in
Article 13 of the Decision, the initial results of the PDSD,
their relevance and the extent to which the targets have been
attained shall be reviewed, and the use made of
financial
resources and the operation of monitoring and implementation
shall be assessed, as well as the rhythm of disbursements and
the overall cooperation between the Home Rule Government of
Greenland and the Commission.

This review shall be carried out under the responsibility of the
Commission, in cooperation with the Home Rule Government
of Greenland and the Government of Denmark, on the basis of
criteria defined in the PDSD,
the
financial allocation, and taking into account the annual imple-
mentation reports referred to in paragraph 3.

including in respect of

5.
The evaluation of the PDSD shall cover the utilisation of
resources and the effectiveness and efficiency of the assistance
and its impact, and shall draw conclusions and recommen-
dations, making use in particular of evaluation results already
available.

It shall cover the factors contributing to the success or failure of
implementation and achievements and results,
including their
sustainability.

The evaluation of the PDSD shall be the responsibility of the
Commission, in coordination with the Home Rule Government
of Greenland and the Government of Denmark.

The results of the evaluation shall be made available to the
public.

Article 6

Safeguard measures

request

reasons,

The Commission shall suspend the payments and, stating
1.
the Home Rule Government of
its
Greenland submit its comments and, where appropriate, carry
out any corrections, within a specified period of time where,
after completing the necessary checks, it concludes that:

that

(a)

the Home Rule Government of Greenland has not complied
with its obligations; or

(b) all or part of the PDSD justifies neither part nor the whole

of the Community’s contribution; or

(c)

there are serious failings in the management or control
systems which could lead to systemic irregularities.

The period of

time within which the Home Rule
2.
Government of Greenland may respond to a request
to
submit its comments and, where appropriate, make corrections,
shall be two months, except in duly justified cases where a
longer period may be agreed by the Commission.

3. Where the Home Rule Government of Greenland objects
to the observations made by the Commission, the Home Rule
Government of Greenland and the Government of Denmark
shall be invited to a partnership meeting by the Commission,
in which all sides shall try to reach an agreement on the obser-
vations and the conclusions to be drawn from them.

Whenever the Home Rule Government of Greenland objects to
the observations made by the Commission and an ad hoc part-
the three-month period under
nership meeting takes place,
paragraph 5 within which the Commission may take a
decision shall begin to run from the date of the partnership
meeting.

4. Where the Commission proposes financial corrections, the
Home Rule Government of Greenland shall be given the oppor-
tunity to demonstrate,
the files
concerned, that the actual extent of irregularity was less than
the Commission's assessment.

through an examination of

Except in duly justified cases, the time allowed for this exam-
ination shall not exceed a further period of two months after
the
two-month period referred to in paragraph 2. The
Commission shall take account of any evidence supplied by
the Home Rule Government of Greenland within the time
limits.

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At the end of the period set out in paragraph 2, the
5.
Commission shall, where no agreement has been reached and
the Home Rule Government of Greenland has not made the
corrections, take account of any comments made by the Home
Rule Government of Greenland and the Government of
Denmark and decide within three months to:

with the Financial Regulation applicable to the general budget
of the European Communities.

Article 7

Information and publicity

(a) reduce the payments; or

(b) make the financial corrections required by cancelling all or

part of the allocation.

1.
The Home Rule Government of Greenland shall ensure
that adequate publicity is given to the programmes financed
in accordance with the Decision by making the general public
aware of the role played by the Community in relation to those
programmes.

6. Without prejudice to paragraphs 1 to 5, the Commission
may, after due verification, suspend all or part of an interim
payment where it finds that the expenditure concerned is linked
to a serious irregularity which has not been corrected and that
immediate action is needed.

2.
The Home Rule Government of Greenland shall ensure, in
particular, that representatives of the Community institutions
are duly involved in the most
important public activities
connected with supported programmes.

The Commission shall inform the Home Rule Government of
Greenland of the action taken and the reasons for it. Where,
after five months, the reasons for the suspension persist or the
Home Rule Government of Greenland has not notified the
Commission of the measures taken to correct the serious irre-
gularity, the amounts receivable may be recovered in accordance

Article 8

Entry into force

This Regulation shall enter into force on the day of its publi-
cation 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 Brussels, 20 April 2007

For the Commission

Louis MICHEL
Member of the Commission

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Official Journal of the European Union

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ANNEX

INDICATIVE STRUCTURE FOR THE PROGRAMMING DOCUMENT FOR THE SUSTAINABLE DEVELOPMENT
OF GREENLAND

The full text, including the executive summary and chapters 1 to 5, should be limited to approximately 15 pages, plus
annexes.

Part A: Cooperation strategy

Executive summary

The PDSD should begin with a half-page executive summary. This should include the major challenges facing Greenland
in the medium and long term, the main objective of the PDSD and the principal reasons for the choice of focal area.

Chapter 1: EC cooperation objectives

In this section, the broad EC cooperation objectives are explicitly stated, as determined by the EC Treaty, the Decision and
the related joint declaration on relations between the European Community on the one hand, and Greenland and the
Kingdom of Denmark on the other.

Chapter 2: Policy agenda of the Greenland Home Rule Government

This chapter should provide a concise statement of the aims and objectives of the Home Rule Government of Greenland,
as set out in official
in medium or long-term plans, reform strategies or development
programmes. This should be completed by an indication as to how the Home Rule Government of Greenland
proposes to achieve these objectives and an assessment of the related sector budget. It should also cover a concise
institutional capacity assessment.

(sector) policy documents,

Chapter 3: Assessment of the political, economic and social situation

Major domestic policy developments/issues and relevant aspects of the external context should be covered in this chapter,
including the political situation, trade aspects, the economic and social situation, environmental aspects and finally, the
sustainability of current policies and medium-term challenges. Particular attention should be given to the assessment of
Greenland’s macroeconomic policy and public expenditure management.

Chapter 4: EC response strategy

This section should set out the strategic choices for EC cooperation, specifying in which area(s)/sector(s) assistance will be
concentrated. That choice should flow logically from:

— EC policy objectives,

— an analysis of Greenland's situation and its development strategy, determining the relevance and sustainability of the

support strategy,

— the indicative volume of funds available,

— complementarity with assistance from other major partners and the Greenland Home Rule Government's own

programmes. These programmes should be outlined concisely.

Part B: Indicative programme

Chapter 5: Indicative programme

This chapter contains the indicative programme for Greenland, which is based on and fully consistent with the strategic
analysis. The indicative programme is an integral part of the PDSD and should be composed of the following sections:

— o b j e c t i v e s a n d e x p e c t e d r e s u l t s : this section should briefly outline the overall objectives and purpose of

the programme to be financed for the period 2007 to 2013, as well as the expected results,

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— f i n a n c i n g e n v e l o p e s :

this section should include a breakdown of the indicative amounts set aside for the
period 2007 to 2013 for the focal area (and if appropriate other areas), to be used to support the priorities outlined
in the strategy. All amounts should be denominated in euro,

— f o c a l a r e a :

this section should contain information on the specific objectives and expected results for the focal
area (and if appropriate other areas), as well as the major assistance planned. It should also include the policy/-
accompanying measures to be taken by the Government of Greenland as a contribution to the implementation of the
response strategy. The amount earmarked for the focal area (and if appropriate other areas) should be indicated. The
stakeholders should be identified,

— f i n a n c i n g m o d a l i t i e s : an analysis should be made of the merits of a sectoral budget support approach and

the modalities of the approach should be indicated,

— r i s k s a n d a s s u m p t i o n s :

the assumptions made should be presented, as well as risks likely to affect the

implementation of the programme and mitigating measures considered,

— i n d i c a t o r s :

input, output, outcome and, as far as possible, impact indicators should be identified for policy areas
covered by the focal sector. Indicators should be specific, measurable in the short/medium term, achievable, realistic
and time-bound, and include a starting level, a target and a clear time horizon, to allow for comparisons at the time
of annual, mid-term and end-of-term reviews,

— p e r f o r m a n c e m o n i t o r i n g :

the performance monitoring arrangements should be outlined in this section,

based on readily available information,

— c r o s s - c u t t i n g i s s u e s : attention needs to be paid to the mainstreaming of cross-cutting issues (i.e. gender,

environment, institutional development and capacity-building) in the areas of assistance,

— s u m m a r y d a t a on Greenland should be annexed, as well as any other appropriate information.