CELEX: 51992PC0495
Language: en
Date: 1992-11-27
Title: Proposal for a COUNCIL REGULATION (EEC) concerning arrangements for implementing the Agreement on the European Economic Area

COft/MISSION OF THE EUROPEAN COMMUNITIES
                                                     COM(92) 495 final
                                                     Brussels, 27 November 1992
                                        Proposal for a
                                  COUNCIL REGULATION (EEC)
                           concerning arrangements for implementing
                         the Agreement on the European Economic Area
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                                (presented by the Commission)
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                              Explanatory note
 1.  On 2 May 1992 the Agreement on the European Economic Area was signed
     by the European Community, its Member States and the EFTA States. The
     procedures for ratification of the Agreement are well advanced and it
     is expected that the Agreement can enter into force on 1 January 1993.
     The European Parliament gave its approval to the Agreement on
     28 October. As soon as the ratification instruments are received from
     all Member states, the Council will formally conclude the Agreement on
     behalf of the Community.
2.   In addition, the Community must now determine certain modalities   for
     its internal purposes to provide an operational basis for          the
     implementation of the Agreement on the EEA, and in particular        to
     ensure that rights under the Agreement can be used and obligations can
     be fulfilled.
3.   The present proposal included modalities through which the Community
     can put into practice the following provisions of the EEA Agreement:
     -   articles 112 to 114 on safeguard measures
         articles 2.1 (e), 53 to 60 on competition rules
         consultation with EFTA states within the Banking Advisory
         Committee and the EC Insurance Committee (agreed in an exchange of
         letters between the Commission and the EFTA chief negotiator)
         article 4.1 of Protocol 38 on the financial mechanism.
4.  The common position of the Community for the purposes of the EEA Joint
    Committee will be determined according to the existing internal
    Community rules. Therefore no special article on this matter has been
    inserted in the Regulation.
5.  The EEA Agreement allows the Contracting Parties to take appropriate
    safeguard measures unilaterally under certain circumstances and
    subject to specific conditions and procedures. In addition, it
    provides for the other Contracting parties to take proportionate
    rebalancing measures if the initial safeguard measures were to disturb
    the balance of rights and obligations under the Agreement.
    In Articles 1, 2 and 3 of the proposed Regulation the modalities for
    determining a Community position in either case are laid down.
6.  In the area of competition, both the Commission and the EFTA
    Surveillance Authority (ESA) have clearly described surveillance tasks
    under the EEA Agreement.
    Article 4 of the proposed Regulation ensures that the Commission has
    equivalent powers under the EEA Agreement as it has under the Treaty
    of Rome. Article 5 stipulates how Member States shall be associated
    with the surveillance tasks of the Commission and the ESA, as had been
    agreed previously in an internal declaration by the Commission and the
    Member states.
 ---pagebreak---                                                                       s
7.  For the implementation of the EEA Agreement as regards financial
    Services, the EFTA States have been grated the right to be consulted
    in the context of meetings of the Banking advisory committee and the
    Insurance Committee.
    Article 5 of the proposed Regulation determines that the chairman of
    both committees and the vice-chairman of the Banking advisory
    committee shall be associated with these consultations.
8.  The EEA Agreement includes a financial mechanism which will be
    financed by the EFTA States. The EC Member States who will benefit
    from loans and grants from this fund have been determined in the
    Agreement.
    "Article 7 of the Regulation lays down the modalities for distribution
    of funds between the beneficiary countries, on the understanding that
    the allocation of these funds is specifier to the EEA and does not
    prejudice in any way the criteria applicable to Community Funds."
9.  Finally, Articles 8 and 9 of the proposed regulation determine that
    Member States are obliged to take all necessary measures for the
    implementation of the Agreement and synchronize the application of the
    Regulation with the EEA Agreement itself.
10. From this last article and from the timetable for the entry into force
    of the EEA Agreement it is clear that the present regulation has be to
    adopted by the council urgently.
 ---pagebreak---                                                                          V
               Proposal for a Council Regulation (EEC) No ..
                                   of ...
                  concerning arrangements for implementing
                 the Agreement on the European Economic Area
The council of the European communities,
Having regard to the Treaty establishing the European Economic Community,
and in particular Article 113 and 235 thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
whereas an Agreement on the European Economic Area between the European
Economic Community, the European Coal and Steel Community and their Member
States, on the one hand, and the EFTA States, on the other, hereinafter
referred to as "the EEA Agreement", was signed in Oporto on 2 May 1992;
Whereas it is necessary to establish the arrangements       for implementing
various provisions of the EEA Agreement;
Whereas it is necessary to lay down the procedures for putting into effect
the safeguard clauses provided for in Articles 112 and 114 of that
Agreement;
Whereas implementing rules must also be provided for in the field of
competition to enable the principles governing the application of
competition law, on the basis of Articles 85 and 86 of the EEC Treaty, to be
applied mutatis mutandis to the EEA;
 ---pagebreak---                                                                 _r
Whereas, given the nature of the Banking Advisory Committee and the
Insurance Committee, specific rules should be laid down for consulting them;
Whereas, in accordance with the EEA Agreement, a Financial Mechanism has
been established by the EFTA States; whereas it is necessary to lay down the
method for determining the allocation of grants and interest rebates on
loans to each recipient Member State in accordance with Protocol 38 of the
EEA Agreement; whereas this allocation is specific to the EEA framework and
the criteria chosen in no way prejudice the criteria applicable to Community
Funds;
Whereas the Agreements concluded by the Community bind its institutions and
its Member States; whereas the latter must therefore take any measures
necessary to enable the Community to fulfil its obligations under the EEA
Agreement;
Whereas it is necessary to adopt implementing measures to achieve, in the
functioning of the single market, one of the goals of the Community; whereas
the Treaty has not provided for the powers required for this purpose,
HAS ADOPTED THIS REGULATION:
                                  Article 1
 1.    where a Member state requests the Commission to apply safeguard
       measures as provided for in Articles 112 or 114 of the Agreement, it
       shall provide the Commission, in support of its request, with the
       information needed to justify it.
 ---pagebreak---    If the Commission decides not to apply safeguard measures, it shall
   inform the Council and the Member States accordingly within five
   working days of receipt of the request from the Member State.
   Any Member State may refer this decision of the Commission to the
   Council within ten working days of its notification.
   If the Council, acting by a qualified majority, indicates its
   intention to adopt a different decision, the commission shall inform
   the EFTA States thereof forthwith and shall notify them of the opening
   of consultations within the Joint Committee as provided for in
   Article 113 of the Agreement.
   The Council, acting by a qualified majority, may take a different
   decision within twenty working days of the conclusion of the
   consultations with the EFTA States within the Joint Committee.
2. The Commission shall be assisted by a committee (hereinafter referred
   to as the "Committee") composed of representatives of the Member
   States and chaired by a representative of the Commission.
   The Committee shall meet when convened by its chairman. The latter
   shall communicate any appropriate information to the Member States at
   the earliest opportunity.
3. Where the Commission, on its own initiative or at the request of a
   Member state, decides that the safeguard measures provided for in
   Articles 112 or 114 of the Agreement should be applied:
       it shall inform the Member States forthwith if acting on its own
       initiative or, if it is responding to a Member State's request,
       within five working days of receipt of that request,
 ---pagebreak---                                                                1
       it shall consult the Committee,
   -   at the same time it shall inform the EFTA States and notify the
       Joint committee of the opening of consultations as referred to in
       Article 113 of the Agreement,
       at the same time it shall provide the Joint Committee with all the
       information necessary for these consultations.
4. In any event, the consultations within the Joint Committee shall be
   deemed to be completed thirty days after the notification referred to
   in the fourth subparagraph of paragraph 1 and in paragraph 3.
   At the end of the consultations or on expiry of the period of thirty
   days, and if no other arrangement proves possible, the commission,
   after consulting the Committee, may take appropriate measures to
   implement Articles 112 and 114 of the Agreement.
5. The decision referred to in paragraph 4 shall be notified forthwith to
   the Council, the Member States and the EFTA States; it shall also be
   notified to the Joint Committee.
   The decision shall be immediately applicable.
6. Any Member State may refer the Commission decision, referred to in
   paragraph 4 to the Council within ten working days of receiving
   notification of the decision.
7. If the Commission has not taken a decision within the meaning of the
   second subparagraph of paragraph 4 within ten working days of the end
   of the consultations with the Joint committee or, as the case may be,
   the end of the period of thirty days referred to in that paragraph,
   any Member state which has referred the matter to the commission in
   accordance with paragraph 3 may refer it to the Council.
 ---pagebreak---                                                                   y
8.    In the cases referred to in paragraphs 6 and 7 the Council, acting by
      a qualified majority, may adopt a different decision within two
      months.
                                  Article 2
1.    Where exceptional circumstances arise within the meaning of
      Article 113(3) of the Agreement, the Commission may take immediate
      safeguard measures in the cases referred to in Articles 112 and 114 of
      the Agreement.
2.    If the Commission receives a request from a Member State, it shall
      take a decision thereon within five working days of receipt of the
      request.
      The Commission shall notify the Council and the Member States of its
      decision.
3.    Any Member state may refer the Commission's decision to the Council in
      accordance with the procedure provided for in Article 2(6).
      The procedure    provided  for   in  Article 2(7) and   (8)  shall  be
      applicable.
      If the Commission has not taken a decision within the time limit
      mentioned in paragraph 2, any Member State which has referred the
      matter to the Commission may refer it to the Council in accordance
      with the procedures laid down in the first and second subparagraphs of
      this paragraph.
                                  Article 3
By way of derogation from Articles 1 and 2, if the circumstances demand that
measures are taken concerning agricultural products on the basis of
Article 112 of the Agreement or on the basis of provisions in the Protocols
or Annexes covering these products, such measures shall be taken according
to procedures provided for by the rules establishing a common organization
 ---pagebreak---                                                                      9
of the agricultural markets, or in specific provisions adopted under
Article 235 of the EEC Treaty and applicable to products resulting from the
processing   of agricultural products, provided that the conditions
established under Article 113 of the Agreement are met.
                                  Article 4
1.    To enable the principles contained in Articles 1(2)(e) and 53 to 60 of
      the EEA Agreement to be put into effect, the Community rules giving
      effect to the principles covered by Articles 85 and 86 of the EEC
      Treaty and Council Regulation (EEC) No 4064/89 on the control of
      concentrations between undertakings shall apply mutatis mutandis. This
      shall also hold good for all the relevant provisions which the
      Community might adopt in the future in the field of competition.
2.    To enable the principle contained in Article 8(4} of Protocol 23 of
      the EEA Agreement to be put into effect, the Commission shall grant an
      authorization to the representatives of the EFTA Surveillance
      Authority to enable them to participate in the investigations referred
      to in that provision.
                                  Article 5
1.    When individual cases falling under Articles 53 and 54 of the EEA
      Agreement are referred to the EFTA Surveillance Authority in
      accordance with Article 56 of the EEA Agreement, the Commission shall
      carry out those tasks entrusted to it by Protocol 23 in close and
      permanent liaison with the competent authorities of the Member States.
 ---pagebreak---                                                                     lo
2.    In particular, it shall forward to the Member States, without delay,
      the notifications, information and other documents forwarded by the
      EFTA Surveillance Authority in accordance with Articles 2, 3, 4, 6, 7
      and 8 of Protocol 23.
3.    Should the Member States wish to present formal written observations
      in particular individual cases dealt with by the EFTA Surveillance
      Authority, those observations shall be forwarded to the Commission,
      which will lend its good offices to find a commonly acceptable
      solution at Community level reflecting the unanimous opinion of the
      Member States which have forwarded observations.
      The Commission shall present the Community      position, once  it is
      defined, to the EFTA Surveillance Authority.
      If no such position has been established within thirty days of the
      date referred to in Article 2 of Protocol 23, the observations of the
      Member states and the Commission shall be forwarded together by the
      Commission to the EFTA Surveillance Authority.
4.    Notwithstanding the application of paragraph 3, Member States may
      participate in meetings of the EFTA Advisory Committee in accordance
      with Protocol 23.
                                  Article 6
If, in order to ensure that the Agreement functions properly, the EFTA
States are consulted on draft measures which the Commission proposes to take
when exercising its executive powers, in spheres in which the Banking
Advisory Committee and the Insurance Committee are competent, the Chair and
Vice-Chair of those Committees shall be associated with such consultation.
 ---pagebreak---                                                                -M
                                  Article 7
1.    Pursuant to Article 4.1 of Protocol 38 of the EEA Agreement, the
      Commission shall determine, on behalf of the Community, the share of
      each beneficiary region in the overall level of financial assistance
      from the Financial Mechanism provided for in Part VIII of the EEA
      Agreement. These shares shall be determined for a five-year period in
      the light of the beneficiary regions• relative level of economic
      development and population size and of other relevant factors.
2.    The Commission shall communicate its decision to the Council and
      thereafter to the EFTA States and to the European Investment Bank at
      the earliest opportunity after the adoption by the Council of this
      Regulation.
3.    The annual commitments in individual regions shall take into account
      the rate at which projects are presented for financing, as well as the
      total annual commitments provided under Protocol 38 of the EEA
      Agreement. The Commission shall make the necessary arrangements with
      the EIB and the EFTA Financial Mechanism Committee to ensure that the
      annual commitments to individual regions do not prejudice the five-
      year shares as determined under paragraph 1 above.
                                 Article 8
The Member States shall take any measures necessary to ensure that
obligations deriving from the EEA Agreement for the Community are fulfilled.
                                 Article 9
This Regulation shall enter into force on the day that the EEA Agreement
enters into force.
This Regulation shall be binding in its entirety and directly applicable in
all Member States.
Done at Brussels,
                                            For the Council
                                            The President
 ---pagebreak---  ---pagebreak---                                                                       ISSN 0254-1475
                                                               COM(92) 495 final
                                                       DOCUMENTS
EN                                                                              10
                                 Catalogue number : CB-CO-92-512-EN-C
                                                             ISBN 92-77-49712-2
Office for Official Publications of the European Communities
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