CELEX: 51990PC0318
Language: en
Date: 1990-07-06
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) AMENDING REGULATION ( EEC ) NO 3906/89 IN ORDER TO EXTEND ECONOMIC AID TO OTHER COUNTRIES OF CENTRAL AND EASTERN EUROPE

COMMISSION OF THE EUROPEAN COVfMUNITIES
                                   COMC90) 318 final
                                   Brussels, 6   July 1990
                        Proposal for a
                   COUNCIL REGULATION (EEC)
      amending Regulation (EEC) N* 3906/69 in order to
      extend eoonomio aid to other countries of Central
                       and Eastern Europe
                 (presented by the Commission)
 ---pagebreak---                            gEplflyfttOTY fflr^Tgrfrm
Following the Arche Summit in Paris on 14 and 16 July 1989, which saw the
starb-up of coordinated measures by 24 QB3) countries to aid economic
instructing in Poland and Hungary, the Council adopted Peculation (EEC)
Ho 3906/89 and H U 300 million was mrmrkerl for 1âiis purpose in tie 1990
Community budget.
Since then, other countries of Central and Eastern Europe nave moved
towards democracy and nave taken or committed 1±»emselves to taking steps to
set up market economies. At the special meeting of ISbe European Council in
Dublin on 28 April, the ComrnissloTi presented an action plan Which was veil
received. Tbe European Council agreed that the Group of 24 should be asked
to extend the measures to the German Democratic Republic, Chechoslovakia,
Yugoslavia, Bulgaria and Romania. A decision is expected at the
ïïiimaterial meetlrg of the Group of 24 on 4 July; Romania, however, will be
exaiurted in view of recent events. "While keeping Bomania an ttoe list of
recipient countries, the Qjmmlssion is thus prepared to implement economic
aid for that country only if the circumstances permit, taking into account
particularly whether the Council has made a decision on the signature of
the cooperation agreement vita Remania.
With a view to tills extension, the 1090-92 financial perspectives have been
revised and a supplementary budget for 1990 that increases appropriations
from ECU 200 million to KSJ 600 million and converts them into
differentiated appropriations is about to be adopted.
The Commission proposes to keep amendments to Regulation (BBC) Ho 3906/89
to the strict minimum and not make any changes of substance, other than to
take in food aid and other humanitarian measures.
For the sake of clarity and in order to conform to the drafting rules
concerning the delegation of responsibility for execution, the Gcrnimlssion
is proposing a re-^worded Article 8 which will take full account of the
guidelines determined when Regulation (EBG) No 3906/89 was adopted.
It is also proposed to drop the mention of the appropriations allocated to
the operation in order to turlcrline its miltiannual nature.
Lastly* the Osmnissdon draws the Council's attention to tfte urgency of this
Regulation, since the Financial Regulation requires in principle that the
Ocmmlssicn commit the appropriations entered in the general budget by the
end of the financial year.
ïiie Commission is furthermore Informiez the Council of its wish to
administer, under the Article of the budget earmarked for the countries of
Central and Eastern Europe, humanitarian aid and contributions to the
operations of nongovernmental organizations, in accordance with the iules
normally applicable and using a portion of the planned appropriations which
does not exceed 8% in total.
 ---pagebreak---                                       , proposai f o r a
                                OCPHCIL KFRnj/TÏÏ»
               ampffirttng Bqgulation CEHC) Ho 3906/89 l u order t o
               extend economic aid t o other countries of Central
                                * f m JBST35ED. wJU^vrpP
THE COUNCIL OF THE EDHOPEAK OOMMfflOTIES,
Raving regard to the Treaty establishing the European Economic Community,
and i n particular Article 235 iftereof,
EaviDg regard to the proposal from the Commission,
laving regard to the Opinion of Parliament, 1
Ihereas the Community and i t s Member States have decided t o take concerted
action with certain non-member countries i n the form of measures intended
to support the process of economic and social reform under way i n Hungary
and Poland; whereas Council Regulation (ESS) Ko 3906/89 of 18 December 1989
lays down the   conditions for the provision of economic aid t o these
countries; 2
TShereas the Group of 24 countries and the Community decided a t the
ministerial meeting on 4 July tftat the situation i n certain other countries
of Central and Eastern Europe warranted an extension of the economic
restructuring aid t o these countries;
Whereas provision must be made for appropriate Community financing,
HAS ADOPTED *"ny EEGŒLAEECN:
                                       Article   I
Regulation (EEC) Ko 3906/89 is hereby amender! as follows:
1.    The title shall be replaced by the following:
      "Council Regulation (EEC) Ko 3906/89 of 18 December 1989 on economic
      aid to certain countries of Central and Tfo*gt*?m Europe.N
1     Opinion delivered...
2     O J L 375, 23.12.1989, p. 11.
 ---pagebreak---                                         -2-
2. Article 1 shall be replaced by the following:
                                     "Article 1
   The Community shall make economic aid available to the countries of
   Central and Europe l i s t e d i n the annex i n accordance with the criteria
   laid down i n this Regulation. *
3. Article 2 shall be deleted; Articles 3 to 11 shall become Articles 2
   to 10.
4. The terms "in Hungary and Poland* , "in Poland and Hungary" and "of
   Poland and Hungary" i n Article 3(1) CtoAce). Article 7(1) and Article
   9(1) shall be replaced respectively by "in Hie countries of Central
   and Eastern Europe" and "of the countries of Central and Eastern
   Europe".
5. A third subparagraph, worded as follows, shall be added to Article
   3(1):
    The aid may also be used to provide humanitarian assistance»
   particularly i n the farm of foodstuffs for those experiencing severe
   supply problems".
6. A second subparagraxti, worded as follows, shall be added to Article
   3(2):
    "In the allocation of funds, account shall be taken of other Community
   financial 1resources which may be available to the countries
   concerned. *
7. Article 8 shall be replaced by the following:
        Ihe general guidelines applicable to the aid, to sector-based
         programmes and to measures which because of there scale are
         comparable i n importance to the aid or programmes, shall be
         adopted i n accordance with the procédure s e t out i n Article 9(a)
         and 9(3).
 ---pagebreak---      2. Other measures, notably those referred to ±n the third
         subparagraph of Article 3(1), shall be adopted by the Commission.u
                                 Article 2
This Regulation shall enter into force on ta» 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.
Done at Brussels,                                      For tbe Council
                                                        The President
                                                                            S
 ---pagebreak--- Bulgaria
Czechoslovakia
German Democratic Republic
Hungary
Poland
Yugoslavia
 ---pagebreak---                               FEHANTJAL STA'i'fflWP
1.   Mlgfît ï w V * ^
     Article 996 - countries of Central and Eastern Europe -
     BCtJ 500 minion
2.   I/=gal Tiajgl^
     Article 235 of the Treaty
3.   Pflacalniâ.an of mofv^rr^
     General programme of aid to the countries? of Central and Eastern
     Europe
4. firounflfi
     Reform of the financial system is an essential component of eccaiainic
     restructuring.
     The countries of Central and Eastern Europe require financial aid from
     the Community to assist them in pursuing democratization and economic
     reform.
5.   FLmooml impact
     E3J 500 million in commitment appropriations and B37 550 minion In
     payment appropriations for the year 1990.
 ---pagebreak---  ---pagebreak---                                                                                 ISSN 0254-1475
                                                                 COM(90) 318 final
                                                      DOCUMENTS
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