Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 1085/2006 establishing an Instrument for Pre-Accession Assistance (IPA)
Date: 2011-07-20
Institutions: European Commission
Subjects: EU aid, EU financing, pre-accession strategy

EUROPEAN COMMISSION 

Brussels, 20.7.2011 
COM(2011) 446 final 

2011/0193 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1085/2006 establishing an Instrument for Pre-
Accession Assistance (IPA) 

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EXPLANATORY MEMORANDUM 

1. 

BACKGROUND  

Iceland and Montenegro 

The  European  Council  of  17  June  2010,  in  its  conclusions,  noted  that  Iceland  meets  the 
political criteria set by the Copenhagen European Council in 1993 and welcomed the opinion 
of the Commission on Iceland's application for membership of the EU. On those grounds, the 
European Council decided to open negotiations with Iceland. Iceland is therefore a candidate 
country.  

The  European  Council  of  16-17  December  2010  endorsed  the  Council's  conclusions  of  14 
December  2010  on  enlargement  and  agreed  to  give  Montenegro  the  status  of  candidate 
country.  

The  Commission  therefore  proposes  to  the  Council  and  the  Parliament  to  amend  Council 
Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession 
Assistance (IPA) with a view to transferring Iceland and Montenegro from the list of potential 
candidate countries (Annex II) to the list of candidate countries (Annex I).  

Article 19 

The  Commission  proposes  to  the  Council  and  the  Parliament  an  amendment  to  Article  19 
"Rules  of  participation  and  origin,  eligibility  for  grants"  of  the  IPA  Regulation  (EC)  No 
1085/2006  in  order  to  align  its  provisions  with  those  of  Article  21  "Participation  in  tenders 
and contracts" of the ENPI Regulation (EC) No 1638/2006.  

This  amendment  addresses  the  concern,  expressed  by  EU  Member  States  involved  in  IPA 
cross–border  cooperation  (CBC)  programmes,  with  regard  to  the  participation  in  calls  for 
proposals.  Member  States  asked  for  participation  in  calls  for  proposals  to  be  limited  to 
applicants from countries participating in the relevant IPA CBC programme, as is already the 
case  for  the  ENPI  CBC  programmes.  The  Council  invited  the  Commission  to  propose  a 
possible solution at the earliest opportunity. 

The Commission has carried out an assessment of the possible implications of a revision of 
Article  19,  in  particular  with  regard  to  coherence  with  other  external  aid  instruments,  and 
specifically  the  ENPI  which  also  includes  a  CBC  component.  The  Commission  therefore 
proposes that Article 19 should be aligned with Article 21 of the ENPI Regulation (EC) No 
1638/2006  by  inserting  a  new  paragraph  9  which,  considering  the  local  nature  of  the  CBC 
programmes, would allow participation in calls for proposals to be limited to local actors. 

Assistance to the Turkish Cypriot community and the IPA management committee 

The Commission proposes to amend the IPA Regulation with the aim of allowing the Phare 
committee to continue to assist the Commission in the management of the financial assistance 
to  the  Turkish  Cypriot  community,  as  provided  for  in  Regulation  (EC)  No  389/2006  on 
assistance to the Turkish Cypriot community.  

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Existing provisions in the area of the proposal 

Regulation (EU) No 540/2010 of the European Parliament and of the Council of 16 June 2010 
amending Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument 
for Pre-Accession Assistance (IPA)(1). 

Commission  Regulation  (EC)  No  718/2007  of  12  June  2007  implementing  Council 
Regulation  (EC)  No  1085/2006  establishing  an  Instrument  for  Pre-Accession  Assistance 
(IPA)(2). 

Council  Regulation  (EC)  No  389/2006  of  27  February  2006  establishing  an  instrument  of 
financial  support  for  encouraging  the  economic  development  of  the  Turkish  Cypriot 
community  and  amending  Council  Regulation  (EC)  No  2667/2000  of  5  December  2000  on 
the European Agency for Reconstruction(3). 

Consistency with the other policies and objectives of the Union 

The  Commission  has  assessed  the  possible  implications  of  a  revision  of  Article  19  in  two 
respects:  

1) Assessment of consistency with Regulation 2112/2005 (the so called "untying Regulation") 

2) Coherence with other external aid instruments. 

As  a  result  of  the  assessment,  it  has  been  concluded  that  Article  19  of  the  IPA  Regulation 
(EC) No 1085/2006 should be aligned with Article 21 "Participation in tenders and contracts" 
of  the  ENPI  Regulation  (EC)  No  1638/2006  by  inserting  a  new  paragraph  9  in  the  IPA 
Regulation.  

2. 

CONSULTATION OF INTERESTED PARTIES AND COLLECTION AND USE OF EXPERTISE  

The  Commission  has  carried  out  an  internal  consultation.  There  was  no  need  for  external 
expertise.  

Impact assessment 

Not applicable. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Summary  of  the  proposed  action:  three  amendments  to  the  Council  Regulation  (EC)  No 
1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA). 

I. 

(1) 
(2) 
(3) 

Iceland  and  Montenegro  will  be  transferred  from  the  list  of  potential  candidate 
countries  (Annex  II)  to  the  list  of  candidate  countries  (Annex  I),  following  the 
decisions of the European Council.  

OJ L 210, 31.7.2006, p.82 
OJ L 170, 29.6.2007, p. 1 
OJ L 65, 7.3.2006, p.5 

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II. 

A new paragraph 9 will be added to Article 19. 

III. 

In Article 25 paragraph 1, the second subparagraph is modified.  

Legal basis 

Article 212 (2) of the Treaty of the Functioning of the European Union.  

Subsidiarity principle 

Not applicable. 

Proportionality principle 

Not applicable. 

Choice of instruments 

Proposed  instrument:  amendment  to  the  Council  Regulation.  Other  means  would  not  be 
adequate for the following reason: a Regulation must be amended by a Regulation. 

4. 

BUDGETARY IMPLICATIONS 

This measure does not involve any additional expenditure.  

5. 

ADDITIONAL INFORMATION 

Simplification 

Not applicable. 

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2011/0193 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Council Regulation (EC) No 1085/2006 establishing an Instrument for Pre-
Accession Assistance (IPA) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  of  the  Functioning  of  the  European  Union  and  in  particular 
Article 212 (2) thereof, 

Having regard to the proposal from the European Commission (4), 

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

Council Regulation (EC) No 1085/2006 of 17 July 2006 (5) establishing an Instrument 
for  Pre-Accession  Assistance  provides  for  assistance  to  candidate  countries  and 
potential candidates in their progressive alignment with the standards and policies of 
the Union, including where appropriate EU acquis with a view to membership. 

Council  Regulation  (EC)  No  1085/2006  makes a  clear  distinction  between  candidate 
countries and potential candidates. 

The  European  Council  of  17  June  2010  welcomed  the  Commission  opinion  on 
Iceland's  application  for  membership  of  the  Union,  noted  that  Iceland  meets  the 
political criteria set by the Copenhagen European Council in 1993 and decided to open 
accession negotiations with Iceland. Iceland is therefore a candidate country.  

The  European  Council  of  17  December  2010  endorsed  the  Council's  conclusions  of 
December  2010  on  enlargement  and  agreed  to  grant  Montenegro  the  status  of  a 
candidate country. 

The  Council  has  invited  the  Commission  to  propose  an  amendment  to  Article  19  of 
Council Regulation (EC) No 1085/2006 with a view to clarifying the rules regarding 
the participation in the award of grant contracts financed under the IPA Cross-Border 
Cooperation  component  and  ensuring  coherence  with  other  external  aid  instruments 
and in particular with the European Neighbourhood and Partnership Instrument.  

(4) 
(5) 

OJ C , , p. . 
OJ L 210, 31.7.2006, p. 82.  

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(6) 

Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument 
of financial support for encouraging the economic development of the Turkish Cypriot 
community  and  amending  Council  Regulation  (EC)  No 2667/2000  on  the  European 
Agency  for  Reconstruction(6),  designates  the  committee  provided  for  in  Council 
Regulation  (EEC)  No  3906/89 of  18  December  1989(7)  (the  "Phare  committee")  to 
assist  the  Commission  in  the  management  of  the  assistance  to  the  Turkish  Cypriot 
community.  In  accordance  with  Article  25  of  Regulation  (EC)  No  1085/2006, 
Regulation (EEC) No 3906/89 has been repealed, however continues to apply for legal 
acts and commitments implementing the budget years preceding 2007. As Regulation 
(EC)  No  389/2006  continues  to  be  the  basic  act  for  financial  support  to  the  Turkish 
Cypriot  community  beyond  these  budget  years,  the  Phare  committee  should  also  be 
continued for that purpose.  

(7) 

Regulation (EC) No 1085/2006 should therefore be amended accordingly, 

HAS ADOPTED THIS REGULATION: 

Article 1 

Regulation (EC) No 1085/2006 is hereby amended as follows: 

(1) 

In Article 19, the following paragraph is added:  

"9. Paragraph  1 to 8 shall be without prejudice  to the participation of  categories of 
eligible organisations by nature or by localisation in regard to the objectives of the 
action." 

(2) 

In Article 25 paragraph 1, the second subparagraph is replaced by the following: 

"These  Regulations,  as  well  as  Regulation  (EC)  No  2666/2000,  shall  continue  to 
apply  for  legal  acts  and  commitments  implementing  the  budget  years  preceding 
2007, for the implementation of Article  31 of  the  Act  concerning  the conditions of 
accession  of  the  Republic  of  Bulgaria  and  Romania  and  the  adjustments  to  the 
Treaties on which the European Union is founded(*) and for the implementation of 
Article 3 of Council Regulation (EC) No 389/2006(**). 

______________________________ 

*OJ L 157, 21.6.2005, p. 203. 

**OJ L 65, 7.3.2006, p. 5." 

(3) 

In Annex I, the following entries are inserted after the entry concerning Croatia:  

"— Iceland  

— Montenegro". 

(6) 
(7) 

OJ L 65, 7.3.2006, p. 5. 
OJ L375, 23.12.1989, p. 11. 

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(4) 

In Annex II, the following entries are deleted:  

"— Iceland  

— Montenegro". 

Article 2 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  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 Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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