CELEX: 51993PC0719(01)
Language: en
Date: 1994-01-10
Title: PROPOSAL FOR A COUNCIL REGULATION (EC) No ....... on financial and technical cooperation with the Occupied Territories

COMMISSION OF THE EUROPEAN COMV1UNITIES
                                               C0MC93) 7 19f i naI
                                                (94)002(SYN)
                                                (9A)003(SYN)
                                              Brussels, 10 January 1994
                              PROPOSAL FOR A              (94)002(SYN)
                        COUNCIL REGULATION (EC) No
  on financial and technical cooperation with the Occupied Territories
                                PROPOSAL FOR               (94)003(SYN)
                        COUNCIL REGULATION (EC) No
  on financial and technical cooperation with the Occupied Territories
  and amending Council Regulation (EEC) No 1763/92 concerning financial
     cooperation in respect of all Mediterranean non-member countries
                       (presented by the Commission)
 ---pagebreak---                                 A
                           EXPLANATORY MEMORANDUM
In view of the progress made in the peace process, it has been agreed to
step up considerably Community aid to the Palestinians in the form of a
five-year programme, through which will be channelled ECU 250 million in the
form of grants. This money will come from the Community budget and will be
supplemented by an equivalent amount in European Investment Bank loans from
own resources, which will be underwritten by the Community. The Commission
notes that the subject of Community support for the Middle East peace
process is addressed in its communication of 29 September 1993 to the
Council and Parliament (COM 458/93 final).
The Commission has attached a proposal for a Regulation laying down the
detailed arrangements and the rules for the administration of aid financed
by the Community budget.
Furthermore, the arrangements for "horizontal" financial cooperation to
implement the new Mediterranean policy made provision for appropriate
operations in the Occupied Territories. The Commission has therefore drawn
up a proposal for a Regulation amending Regulation (EEC) No 1763/92 on
financial cooperation in order to extend its application to the Occupied
Territories.   The Regulation provides for a five-year programme (1992-96)
with financing from the Community budget and EIB loans. Some loans
(environment projects) qualify for interest-rate subsidies.
 ---pagebreak---                                                          (94)0Q2(SYN)
                               Proposal for a
                         Council Regulation (EC) No
    on financial and technical cooperation with the Occupied Territories
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in
particular Article 130w thereof,
Having regard to the proposal from the Commission,
In agreement with Parliament,
Whereas, having regard to the greater requirements that will be generated in
the territories of the West Bank of the Jordan and the Gaza Strip,
hereinafter referred to as the "Occupied Territories", as a result of recent
developments in the Middle East peace process, new measures in the form of
economic and social cooperation should be implemented in the said
Territories in order to foster sustainable economic and social development,
taking account of the experience acquired by the Community as a major
provider of aid to the Palestinian people;
Whereas to this end there should be a five-year programme (1994-98); whereas
this programme should be implemented with financing from the Community
budget in the form of grants;
Whereas it is necessary to lay down the detailed arrangements and rules for
administering the operations financed from the budget,
HAS ADOPTED THIS REGULATION,
                                  Article 1
The Community shall implement financial and technical cooperation with the
Occupied Territories under a five-year programme (1994-98) with the aim of
aiding their sustainable economic and social development.
                                  Article 2
1. The priority areas for projects and measures implemented under the
programme referred to in Article 1 shall be:
   infrastructure, production, urban and rural development, education,
   health, the environment, services, foreign trade, and the setting-up and
   improvement of institutions necessary for the proper working of the
   public administration.
 ---pagebreak---                                  3
2. Community aid may be given for investment projects, feasibility studies,
technical assistance and training.
3. Community financing for operations covered by this Regulation shall be in
the form of grants.
                                  Article 3
The aid referred to in this Regulation may be combined with European
Investment Bank financing from own resources and may used for cofinancing
with Member States, non-member countries in the region, multilateral bodies
or the Occupied Territories themselves. Wherever possible, the Community
nature of the aid shall be preserved.
                                  Article 4
1. Financing decisions on projects and operations under this Regulation
shall be adopted in accordance with the procedure laid down in Article 5.
2. Financing decisions on overall allocations for technical cooperation,
training and trade promotion shall be adopted in accordance with the
procedures laid down in Article 5.
The Commission shall inform the Committee referred to in Article 5 of the
use made of these overall allocations.
3. Decisions amending decisions adopted in accordance with the procedure
provided for in Article 5 shall be taken by the Commission where they do not
entail any substantial amendments or additional commitments in excess of 20%
of the original commitment.
                                  Article 5
1. The Commission shall be assisted by the MED Committee set up under
Article 6 of Council Regulation (EEC) No 1762/92 of 29 June 1992 on the
implementation of the protocols on financial and technical cooperation
concluded by the Community with Mediterranean non-member countries.
2. The Commission representative shall submit to the Committee a draft text
setting out measures to be taken. The Committee shall deliver its opinion
on the draft within a time-limit set by the Chairman taking into account the
urgency of the matter. The opinion shall be delivered by the majority laid
down in Article 148(2) of the Treaty in the case of decisions adopted by
the Council on a proposal from the Commission. The votes of the
representatives of the Member States within the Committee shall be weighted
in the manner set out in the Article referred to above. The Chairman shall
not vote.
3. (a)  The Commission shall adopt the proposed measures if they are in
        accordance with the opinion of the Committee;
 ---pagebreak---                                      M
   (b)  If the proposed measures are not in accordance with the opinion of
        the Committee, or if no opinion is delivered, the Commission shall,
        without delay, send the Council a proposal on the measures to be
        taken. The Council shall act by a qualified majority.
        If the Council has not acted within three months from the date on
        which the matter was referred to it, the proposed measures shall be
        adopted by the Commission.
                                   Article
1. The Commission shall take stock of the implementation of cooperation
pursuant to this Regulation and report to Parliament and the Council once a
year.
2. The Commission shall evaluate the main projects completed in order to
establish whether the objectives fixed during the appraisal of these
projects have been achieved and to establish guidelines for making future
aid more effective. These evaluation reports shall be sent to the Member
States.
                                  Article 7
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
                                                        For the Council
                                                         The President
 ---pagebreak---                                       r
                                               -*r:g-     (94)003(SYN)
                                 PROPOSAL FOR A
                          COUNCIL REGULATION (EC) No
    on financial and technical cooperation with the Occupied Territories
    and amending Council Regulation (EEC) No 1763/92 concerning financial
       cooperation in respect of all Mediterranean non-member countries
THE COUNCIL OF THE EUROPEAN UNION
Having regard to the Treaty establishing the European Community, and in
particular Article 130 thereof,
Having regard to the proposal from the Commission,
In agreement with Parliament,
Whereas Council Regulation (EC) No     established a programme of financial
and technical cooperaion with the territories of the West Bank of the Jordan
and the Gaza Strip, hereinafter referred to as "the Occupied Territories";
Whereas, with a view to promoting the economic and social development of the
Occupied Territories on a sustainable basis and in view of the considerable
requirements likely to be generated by recent developments in the Middle
East peace process, this programme should be supplemented by additional
measures, namely those provided for in Council Regulation (EEC) No 1763/92
concerning financial cooperation in respect of all Mediterranean non-member
countries;*
Whereas the application of the said Regulation should be extended to cover
the Occupied Territories,
HAS ADOPTED THIS REGULATION:
                                   Article 1
Council Regulation(^EC) No 1763/92 shall apply to the Occupied Territories.
                                   Article 2
This Regulation shall enter into force on the third day following that of
its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
                                                          For the Council
                                                           The President
1  OJ L 181, 1.7.1992, p. 5.
 ---pagebreak---                                     <r
                           FINANCIAL STATEMENT
1. TITLE OF OPERATION
   Financial assistance to the West Bank and Gaza
2. BUDGET HEADING:          Article B7-406
3. LEGAL BASIS: not applicable
4. DESCRIPTION OP OPERATION:
   4.1   General objective
         Community support for the Middle East peace process.
   4.2   Period covered
         1994 - 1998
   5.    CLASSIFICATION OF EXPENDITURE
   5.1   Non-compulsory expenditure
   5.2   Differentiated appropriations
6. TYPE OF EXPENDITURE OR REVENUE
   (a)   Financing
         - 100% grant
         - Possible cofinancing with EIB, Member States, non-member
           countries of the region and multilateral bodies
    (b)  Terms and conditions
         Selection of projects and operations in agreement with relevant
         Palestinian organizations.
   (c)   Any changes in the level of revenue
         - The proposed operation does not involve any change in revenue.
         - There is no provision for reimbursement.
7. FINANCIAL IMPACT
   7.1   Method of calculating total cost of operation
         The amount proposed for commitments takes into account past
         experience, obvious needs and absorptive capacity of the
         institutions concerned. It is also the expression of the
         Community's commitment to step up its support for the Occupied
         Territories in line with the declaration of the Strasbourg
 ---pagebreak---                                              ?
                  European Council of 7 and 8 December 1989 and the guidelines
                  issued by the informal meeting of Foreign Ministers at Aeden
                  Biesen on 11-12 September 1993.
           7.2    Itemized breakdown of cost in ECU million
      BREAKDOWN             Budget  Budget  Budget  Budget  Budget  Total
                             1994    1995    1996    1997    1998
                              50      50       50      50     50     250
       The   amounts are expressed in current ecus.
            7.3   Indicative schedule of appropriations
                            Budget  Budget  Budget  Budget  Budget  Total
                             1994    1995    1996    1997    1998
Commitment appropriations    50      50      50      50      50      250
Payment appropriations
1994 budget                  30                                      30
1995 budget                  15      25                              40
1996 budget                   5      15      25                      45
1997 budget                  PM      10       15     25              50
1998 budget                  PM      PM       10      15     35      60
Total                        50      50       50     40      35      225
 ---pagebreak---                                     s
8.   FRAUD PREVENTION MEASURES PROVIDED FOR IN THE PROPOSED OPERATION
     Standard Commission checks
9.   COST-EFFECTIVENESS ANALYSIS
9.1
     (a)   Specific objectives
           The aim of the operation is to improve the living conditions
           of the Palestinian population and to support the peace process
           in the region by financing investment and operating costs in
           the following areas: infrastructure, production (agriculture,
           fisheries, industry), services (incl. tourism), foreign trade,
           urban   and  rural   development, health,    the environment,
           institutional and administrative development, training and
           education. It also covers the technical assistance required to
           implement aid of this type and the cost of appraising and
           monitoring projects.
    (b)   Target population
          The aid is for the Palestinian population of the West Bank and the
          Gaza Strip. It will be implemented by a variety of bodies:
          chambers of commerce, cooperatives, specialized institutions, etc.
^•2    Grounds for the operation
9.2.1     Grounds or need for Community action (subsidiarity)
          The Community needs to step up its long-standing efforts to aid the
          Palestinian people by throwing its weight behind the Middle East
          peace process. The Community has also acquired unequalled
          experience as a result of its past aid.
9.2.2     Approach chosen
          Spin-off effects: the aim of the operations financed is to develop
          and strengthen economic and institutional autonomy, thereby
          reducing the Territories' dependence on external financing.
       -  Multiplier effects (ability to mobilize other sources of finance):
          the effectiveness of operations under this budget heading could be
          further increased by the boost they will provide to the economy of
          the Territories, so attracting local and international capital.
          Coordination with other donors will redound to the benefit of the
          operations financed under this budget heading.
 ---pagebreak---                                   Js
9.2.3    Grounds for choice of target population and proposed level of
         expenditure
         The aim is to provide sufficient aid to a population not covered by
         the cooperation agreements with neighbouring countries to achieve
         the overall objective, namely Community support for the peace
         process.
9.2.4    Main factors of uncertainty that may affect the results of the
         operation
         The political situation is very uncertain.
9.3   Monitoring and evaluation of the operation
9.3.1    Performance indicators selected
         Performance indicators have been set for each project (e.g.:
         increase in agricultural production and in the degree of self-
         sufficiency in food, level of exports by the territories
         concerned).
9.3.2    Details and frequency of planned evaluations
         The main sectors financed will be subject to annual evaluation.
9.3.3    Assessment of the results obtained
         Results so far show that the Community's previous operations have
         slowed down the social and economic decline.
9.4   Consistency with financial programming
      The purpose is to help achieve economic objectives and to promote
      political stability in the region.
 ---pagebreak---                                                                      ISSN 0254-1475
                                                              COM (93) 719 final
                                                      DOCUMENTS
EN                                                                               li
                                 Catalogue number : CB-CO-93-770-EN-C
                                                             ISBN 92-77-63825-7
Office for Official Publications of the European Communities
L-2985 Luxembourg