CELEX: 51977PC0173
Language: en
Date: 1977-05-17 00:00:00
Title: RECOMMENDATION for a COUNCIL DECISION concluding a Financial Protocol between the European Economic Community and Greece (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 173
Vol. 1977/0071
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
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file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(77)173 final
                                              Brussels , 17 May 1977
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              !               RECOMMENDATION
                                  for a
                             COUNCIL DECISION
            concluding a Financial Protocol between the
            European Economic Community and Greece
                                               f*
                                                                                                ■ , /
               ( submitted to the Council "by the Commission )
                                                /
                                                                                  /
  COM(77 ) 173 final
 ---pagebreak---                   COMMISSION COMMUNICATION TO THE COUNCIL
1.   On 13 January 1977 , in accordance with the mandate conferred on it
by the Council , the Commission concluded the negotiations for a second
financial protocol in the context of the Association Agreement between
the EEC and Greece .    As the Community 's delegation had indicated its
agreement ad referendum , the Commission submitted the results of the
negotiations to the Council which approved them at its meeting on
18 January 1977 -    The protocol was subsequently signed on 28 February 1977-
2.   With a view to the conclusion of this protocol on behalf of the
Community the Commission is requested to approve the draft communication
to the Council on the negotiations and the recommendation fpr a Council
decision to conclude the protocol .
 ---pagebreak---                                EXPT.ANTORY Ï^RMOT^rnUM
               on "the negotiation of a new Financial Protocol under the
              E3C-Greece Association Agreement
1 . By a Decision of 29 November 1976 , the Council authorized the
Commission to open negotiations with the Hellenio Republic for the
conclusion of a new Financial Protocol under the EEC–Greece Association
Agreement and issued the directives for those negotiations .
The Commission conducted the negotiations with the Greek Delegation
within the Council of Association .           They were completed on
 13 January 1977 -         The delegations indicated their approval ,
vl referendum of the content of the texts of the draft Protocol , the
3o;.jnunity declaration concerning the European unit of account and
two exchanges of letters , and agreed that the second exchange of
letters would not be published.           These texts , which were drafted in
French , are attached to this Communication .
 2.       In order to enable the Protocol to be signed at an early date ,
 » h-3 Commission submitted the draft texts to the Council on the very
day the negotiations were completed, proposing that it take the
necessary steps to enable the signature to take place as soon as
possible .          At its meeting of 18 Jam*ary 1977 » "the Council made the
necessary arrangement s for the signature , which was subsequently
 scheduled to take place on 28 February .
      i order that this Protocol may be concluded on behalf of the
      ;;nmunity , the Commission is transmitting to the Council herewith
        recommendation for a decision concluding the Protocol , to which
 .• i.r * annexed the Community declaration and the first exchange of
 letters .        There is to be no formal conclusion of the xmpublished
  exchange of letters .
 ---pagebreak---   The Commission also recommends that the representatives of the
  governments of the Member States , meeting in the Council , take the
  steps required for the implementation of the ratification,
' acceptance or approval procedures laid down in Artiol ^ 13(1 ) of
  the Protocol .
  The Commission draws the Council 's attention to the fact that the
  Head of the Greek Delegation has asked for the approval procedures
  to be completed as quickly as possible in view of the delay which
  has occurred since the Community undertook on 2 Deoember 1974 to
  open the negotiations for the Protocol at an early date.
 ---pagebreak---                               RSC OKKEUD AT I ON
                                    for a
                            COUNCIL DECISION
concluding a Financial Protocol between the European Eoonomio
Co:amvmi.ty and Greece
THE COUKCIL Car THE EUROPEAN COMMUNITIES,
Having regard to the Treaty establishing the European Eoonomio
Community, and in particular Artiole 238 thereof,
Having regard to the recommendation from the Commission,
Having regard to the opinion of the European P?:r..iament ,
  Whereas the Financial Protocol between the European Economio
  ommunity and Greece,
 signed at      3W99SiS .,..           on ..?9.?«T|IWW.19ZT .
 should be concluded,
HAS DECIDED AS FOLLOWS:
                                Article 1
The Financial Protocol between the European Economic Community and
 Greece, the text of which is annexed to this Decision, is hereby
 concluded and approved on behalf of the Community.
                                Article 2
The President of the Council shall . oarry out , on behalf of the Community
 the notification procedure provided for in Article 13(l ) of the Protocol
 Done at ..      ........ ............... 19
                                                          For the Council
                            '                             The President
 ---pagebreak---           FINANCIAL PROTOCOL .
BETWEEN THE EUROPEAN ECONOMIC COMMUNITY
             - AND GREECE
 ---pagebreak--- HIS MAJESTY THE KING OF THE BELGIANS ,
HER KAJESTY THE QUEEN OP DENI4ARK ,
THE PRESIDENT OF THE FEDERAL REPUBLIC OF GERMANY ,
THE PRESIDENT OF THE FRENCH REPUBLIC , _
THE PRESIDENT OF IRELAND ,
THE PRESIDENT OF THE ITALIAN REPUBLIC ,
HIS ROYAL HIGHNESS THE GRAND DUKE OF LUXEMBOURG ,
HER KAJESTY THE QUEEN OF , THE NETHERLANDS , .
r : 1 MAJESTY THE QUEEN OF THE UNITED KINGDOM OF GREAT BRITAIN
A'.'D NORTHERN IRELAND ,
cLwdj
1r.Z COUNCIL OP THE EUROPEAN COMMUNITIES ,
                                                       ♦
                          of the one part,'
THE PRESIDENT OF THE HELLENIC REPUBLIC , ,
                         of the other part ,
     3CIOUS of the need to promote the accelerated development
 cS the Greek economy with a view to facilitating the pursuit
 of the objectives of the Agreement establishing an Association
 between the European Economic Community and Greece ,
 HAVE DESIGNATED as their Plenipotentiaries :
 ---pagebreak---  HIS MAJESTY THE KING OP THE BELGIANS :
  HER MAJESTY THE QUEEN OF DENMARK :
  THE PRESIDENT OP THE FEDERAL REPUBLIC OP GERMANY :
                                     /
                                       »
  THE PRESIDENT OF THE FRENCH REPUBLIC :
  THE PRESIDENT OP IRELAND :
■ THE PRESIDENT OP THE ITALIAN REPUBLIC :
 ---pagebreak--- HI . ROYAL HIGHNESS THE GRAND DUKE 0? LUXEMBOURG :
      'AJESTY THE QUEEN OP THE NETHERLANDS :
HER MAJESTY THE QUEEN OF THE UNITED KINGDOM OP GREAT BRITAIN
AND NORTHERN ' IRELAND :
THE COUNCIL OF THE EUROPEAN COMMUNITIES :
THE PRESIDENT OF THE GREEK REPUBLIC :
WHO , having exchanged their Full Powers , found in good and
due form ,
HAVE AGREED AS FOLLOWS :   •                             •
 ---pagebreak---                                ARTICLE 1
       Within the framework of the Association between the
European Economic Community and Greece , the Community shall
participate on the terms set out in this Protocol in
measures designed to promote , by efforts additional to
those made by Greece itself , the accelerated development
of the Greek economy and the complementarity of Greek
agriculture with that of the Community .
                                ARTICLE 2
1.          For the purposes specified in Article 1 , and fofr a
   period expiring on 31 October 1981 , an aggregate amount
   of 280 million European units of account ( EUA ) may be
   committed as follows :
    ( a ) 225 million EUA in the form of loans from the
          European Investment Bank , hereinafter called the
          " Bank" , granted from its own resources on the terms
          set out' in its Statute ; •
    ( b ) 45 million EUA in the form of grants ;
    ( c ) 10 million EUA in the form of loans on special terns
          granted by the Bank acting on instructions from the
          Community .        ■ .. .
 ---pagebreak---   2.           Of the loans referred to in paragraph 1(a ), the
        interest rates for a maximum amount of 150 million EUA
        shall be subsidized at 35? per annum , financed by means of
        funds indicated in paragraph 1(b ), on the understanding
        that the cost to the Community of financing such subsidies
        may not exceed 30 million EUA .
' 3«           The following shall be eligible for financing by
        means of the loans referred to in paragraph 1(a ): capifat
               projects that have been submitted to the Bank by
      • the Greek State or , with the latter' s agreement , by public
        or . private undertakings having their seat or a place of
        business in Greece , and which :
        ( a ) further the realization of the the objectives of the
              Association Agreement ; and
        ( b ) help to increase productivity and to diversify the
              Greek economy , and promote in particular the improve --
              ment of the economic infrastructure of the country
              and the modernization of , its agriculture , while
              taking into account the objective of promoting the
              complementarity of Greek agriculture with that of
              the Community .
               Examination of the eligibility of projects and the
        granting of the loans referred, to in paragraph 1(a ) shall
        be undertaken in accordance with the detailed rules ,
        conditions and procedures laid down by the Bank 's Statute .
               The conditions governing amortization of each loan
     < shall be established on the basis of the economic and
        financial characteristics of the project to be financed .
 ---pagebreak---        The loans referred to in paragraph 1(a ) shall carry
 the same rate of interest as that applied by the Bank on
 the day cf signature of the loan agreement . However ,
 priority in granting loans receiving the interest rate
 subsidy of 355 referred to in paragraph 2 shall be given to
 economic infrastructure or agricultural development
 projects , and to the financing of industrial projects for
 small and medium-sized undertakings through the inter­
 mediary of Greek development institutions .
       This list of sectors may be revised by agreement
 between the Community and Greece . .
       The non-returnable grants provided for in paragraph 1(b )
  are intended , in . addition to the financing of the interest
  rate subsidy on loans from the Bank , for technical
  co-operation projects , study projects , and projects for
 modernizing Greek agriculture .
                                  • \
          Requests for the financing of such projects shall
  be addressed by the Greek Government to the Community .
       The loans referred to in paragraph 1(c ) shall be
  granted for a period of 30 years , have a deferment of
  amortization of eight years and be subject' to interest at
  an annual rate of 2.52C . Investment projects submitted to
  the Bank by the Greek State and aimed at modernizing
  Greek agriculture shall be eligible for financing by
v means of these loans .     Loans in this category may be
  combined with the loans from . the Bank which are referred
  to in paragraph 1(a ).    -
 ---pagebreak---                               ARTICLE 3
1„        The amounts to be committed each year shall be
    distributed as evenly as possible throughout the period of
    application of this Protocol . During the initial period
    of application , however , a proportionately higher amount
    may , within reasonable limits , be committed .
2.        Any funds not committed may , by the end of the period
    referred to in Article 2(1 ), be used , until exhausted . In
    that case ,. the funds shall be used in accordance with the
    same arrangements as provided for in this Protocol .
                              ARTICLE M
      Aid from the Bank for the execution of projects may , with
the agreement of Greece , take the form of co-financing .
                            \
                      .       ARTICLE 5
                      * ~
      The execution , management and maintenance of schemes
which are the subject of financing under this Protocol shall
b " the responsibility of Greece or of the other beneficiaries
referred to in Article 2 .
      The Community shall ensure that its financial aid is
expended in accordance with the agreed allocations and to
th<2 best economic advantage .                      , ■ ■ • .
 ---pagebreak---                             ARTICLE 6
      Greece shall apply to contracts awarded for the execution
of projects financed under this Protocol fiscal and customs
arrangements at least as favourable as those applied in
respect of other international organizations .
      Greece shall take the necessary measures to ensure that
interest and all other payments due to the Bank in respect of
 loans accorded under this Protocol are exempted from any
national or local taxes or levies .
      For the measures referred to in Article 2(6 ) and ( 7 ),
participation in tendering procedures and other procedures
 for the award of contracts shall be open , on equal terms , to
 all natural or legal persons of the Member States and of
 Greece . However , for projects of a - scale sufficiently
'limited so that in practice they are of interest solely to
 Greek undertakings , an accelerated tendering procedure
 involving a shorter period for the submission of tenders
 for the placing of bids may be organized after approval by
 the appropriate Community body .
                             ARTICLE 7
                                           • /
      The loans may be used to cover expenditure on imports
 or the domestic expenditure required for carrying out
 approved capital projects , including expenditure on planning ,
 on the services of consulting engineers and on technical
 assistance .
 ---pagebreak---                              ARTICLE 8
      Where a loan is accorded to a beneficiary other than
the Greek State , the provision of a guarantee by the latter
may be required by the Bank as a condition of the grant of
the loan .
                             ARTICLE 9
       Throughout the duration of the loans accorded pursuant
to this Protocol , Greece shall undertake to make available
to debtors enjoying such loans or to the guarantors of the
loans the foreign currency necessary . for the payment of
interest , commission and other charges and for the repayment
of capital .
                            ARTICLE 10
       The results of financial co-operation may be examined
wi';hin the Association Council .
                            ARTICLE 11
       The Declaration- and the Exchange of Letters annexed to
tr.is Protocol shall form an integral part thereof .
                            ARTICLE 12
       This Protocol shall be annexed to the Agreement
      olishing an Association between the European Economic
     iunity and Greece .
 ---pagebreak---                             ARTICLE 13
1.       This Protocol shall be subject to ratification ,
   acceptance or approval in accordance with the Contracting
   Parties' own procedures ; the Contracting Parties shall
   notify each other that the procedures necessary to this
   end have been completed .
2.       This Protocol shall enter into force on the first
   day of the month following the date on which the
   notifications provided for in paragraph 1 have been given .
                            ARTICLE 14
     This Protocol xs drawn up in two copies in the Danish ,
Dutch , English , French , German , Italian and Greek languages ,
each of these texts being equally authentic .
 ---pagebreak---                                                     ANNEX
       Declaration of the European Economic Community
             on Article 2 of the Financial Protocol
1.       The European  unit of account used to express the
   amounts specified   in Article 2 of the Financial Protocol
   is defined as the   sum of the following amounts in the
   currencies of the   Member States of the Community :
         German mark             0.828
         Pound sterling          0.0885
         French franc            1.15
         Italian lira         109
         Dutch guilder         . 0.286
         Belgian franc           3.66
         Luxembourg franc        0.14
         Danish krone            0.217
         Irish pound             0.00759
2.       The value of the European unit of account in any
   given currency is equal to the sum of the equivalent in
   that currency of the amounts of currency referred to in
   paragraph 1 . It is calculated by the Commission using
   daily market exchange rates .
          The daily rates of exchange in the various national
    currencies are published in the Official Journal of the
   European Communities .
 ---pagebreak---                        EXCHANGE OF LETTERS
A. Letter from the Chairman of the Community delegation
   Sir ,
         I have the honour to inform you that the Community
   considers that the problem of the consequences of the
   possible accession of Greece to the Community for the
   provisions of the second EEC-Greece Financial Protocol
   shquld be dealt with in the framework of the accession
   negotiations .   In this respect , I must remind you of the
   general principle whereby no further financial commZft-xients
   under the Protocol may be undertaken from the date of
   the entry into force of the Accession Treaty .
         The accession negotiations must therefore include
   detailed rules to ensure a harmonious transition , as
   regards financial aid , from the regime of an associated
   country to that of a Member State with access , under the
   usual conditions , to the various Community funds and
   financial instruments.'                V ■
         I would be grateful if you would . acknowledge receipt
   of this letter .        . i                            ■■ •
         Please accept , Sir , the assurance of my highest
   consideration .      '                               -
                            ( s .) Chairman of the Community
                                        delegation
 ---pagebreak--- B. Letter from the Chairman of the Greek delegation
    Sir ,
          I have the honour to acknowledge receipt of your
    letter of today 's date in which you informed me of the
    following :
                "I have the honour to inform you that the
          Community considers that the problem of the consequences
          of the possible accession of Greece to the Community
          for the provisions of the second EEC-Greece Financial
          Protocol should be dealt with in the framework of the accession
          negotiations .   In this respect , I must remind you of
          the general principle whereby no further f inane ial ecnnj/f-
           orients   under the Protocol may be undertaken from the
          date of the entry into force of the Accession Treaty .
                The accession negotiations must therefore include
          detailed rules to ensure a harmonious transition , as
          regards financial aid , from the regime of an associated
          country to that of a Member State with access , under the
          usual conditions , to the various Community funds and
          financial instruments .
                  I would be grateful if you would acknowledge
          receipt of this letter ."
      Please accept , Sir , the assurance of my highest;
 consideration .
                              ( s . ) Chairman of the
                                  Greek delegation
 ---pagebreak---                       EXCHANGE OF LETTERS
                         ( unpublished )
Letter from the Chairman of the Community delegation
Sir ,               "
        In order to meet the concern expressed by the
  '•eek authorities , the Community will apply the provision
   > ntained in the second sentence of Article 3(1 ) of the
l rotocol with the maximum flexibility compatible with
the procedures and rules of the Community and of the Bank ,
particularly as regards the use of loans with interest
rate subsidies referred to in Article 2(2 ) of the Protocol
and of aids from budgetary resources as referred to in
Article 2(6 ) and ( 7 ).
        The examination of project applications may accordingly
begin as soon as the Protocol is signed so as to enable
financial co-operation to be implemented immediately after
it enters into force . However no financing decision may
be taken before the entry into force provided for in
Article 13 of the Protocol .
        I should be grateful if you would acknowledge receipt
of this letter .
        Please accept , Sir , the assurance of my highest
consideration .
                                 ( s „) Chairman of the
                                Community delegation
 ---pagebreak--- Letter from the Chairman of the Greek delegation
Sir ,
      I have the honour to acknowledge your letter of
today 's date in which you informed me of the following :
           " In order to meet the concern expressed by the
      Greek authorities , the Community will apply the
      provision contained in the second sentence of
      Article 3(1 ) of the Protocol with the maximum
      flexibility compatible with the procedures and rules
      of the Community and of the Bank , particularly as
      regards the use of loans with interest rate subsidies
      referred to in Article 2(2 ) of the Protocol and of
      aids from budgetary resources as referred to in
      Article 2(6 ) and ( 7 ).
           The examination of . project applications may
      accordingly begin as soon as the Protocol is signed so
      as to enable financial co-operation to be implemented
      immediately after it enters into force .       However no
      financing decision may be taken before the entry into •
      force provided for in Article 13 of the Protocol .
           I should be grateful if you would acknowledge
      receipt of this letter ."
      I have the honour to inform you that the Greek
delegation , for its part , expects the Community , in
appraising the flexibility which it is prepared to show in
applying Article 3(1 ) of the Protocol , not to overlook
the period of time which has. elapsed since the signing
of the Protocol .
      Please - accept , Sir , the assurance of my highest
consideration .                       ■      -
                                ( s .) Chairman of the
                                    Greek delegation
 ---pagebreak---                               FINANCIAL RECORD
                             for the 1977 Budget
A. PART 1 :   INTEHVENTION APPROPRIATICI
               ( for existing and new projects )
   1.  RELEVANT BUDGET HEADING CODE
       Article 9^2
   2.  TITLE OP BUDGET HEADING
       "Financial cooperation with certain non-member countries'*
   3.  LEGAL BASIS . '
       Article 238 of the EEC Treaty                                              , :
   4.  DESCRIPTION , OBJECTIVE(S ) AND JUSTIFICATION OF THE PROJECT
       Second financial protocol between EEC and Greece , signed
       28 February 1977 » annexed to the Association Agreemept between
       EEC and Greece .
   5.  APPROPRIATION ( in u.a.)
       No commitment will be made in the 1977 Budget under the head of
       the financial aid provided for in the financial protocol ( the
       budget heading concerned is a token entry ).      The budget appropriations   .
       may be used only from the 1978 financial year onwards , after the
       protocol has been ratified .      This protocol provides for a sum of
       55 million EUA to be committed up to 31 October 1981 from budget
       appropriations (with an additional 225 million EUA in loans from the
       EIB ).      The breakdown of this sum will be decided annually in the
       course of the budget procedure .                                         '
   6.  TTPE OF COBTROL TO BS APPLIED
       As laid down in the Financial Regulation of 25 April 1973 applicable
       to the General Budget of the European Coroiayaities *
 ---pagebreak--- FART 2 : ADDITIONAL LATA TO BE PROVIDED FOR A >IEW PROJECT
7.  COST OP THE PROJECT (FOR THE WHOLE OF ITS EXPECTED DURATION)
    55 million SUA charged against the Community Budget for the vnole
    duration of application of the protocol , i„e » UT> to 31 October I98I .
8.  INFORMATION' REGARDING STAFFING AND THE APPROPRIATIONS FOR
    ADMINISTRATIVE EXPENDITURE NECESSARY FOR THE IMP LESSEE"? ATIO!!
    OF THE PROJECT
    The project will be implemented within the framework of the
    Commission 's establishment plan.
9.  PROJECT FINANCED FROM :
    The financial aid for the total duration of the financial protocol
    will "be financed from Community Budget appropriations ( 55 Billion EUA )
    and EIB own resources ( 225 million EUA )„
    The budget appropriations will be broken i'.r, n* as follows s
    10 million EUA in the form of special lo&usi
    45 million EUA in the form of grants .