CELEX: 51977PC0030
Language: en
Date: 1977-02-16
Title: Proposal for a COUNCIL REGULATION (EEC) on finanicial and technical aid to non-associated developing countries (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (77) 30
Vol. 1977/0011
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In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
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Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                              COM(77)30 final.
                                              Brussels , 16 February 1977 *
                       >
                         i * -
              "   .  -           Proposal for a
                            COUNCIL REGULATION (EEC )
           on finanicial and technical aid to non-associated deve­
                                loping countries
                ( submitted to the Council by the Commission )
COM(77 ) 30 final .
 ---pagebreak---  1.   Introduction
The principle of implementing financial and technical aid from the Community
to the non-assooiated developing countries was established in a Council
 resolution adopted at the session of 16 July 1974 t on the understanding
that the volume and the procedure for implementing that aid would be
spelled out later on the basis of Commission proposals .
Two communications to this effect were subsequently presented by the
Commission to the Council , one (C0M(75)95 final of 5 March 1975 ) °n finanoial
and technical aid to non-associated developing countries for the period
1976-80 , the other (COM(76)89 final of 3 March 1976 ) on the guidelines
for the use of the 20 million u.a . appropriation entered at the second
reading (December 1975 ) in the 1976 budget, thanks to the resolute action of
European Parliament .
Discussion in the Council on these guidelines , which had been agreed by the
European Parliament , on until the meeting of 18 and 19 October 1976 , following
  which the Council agreed to the implementation – on an experimental basis – of the
   20 million u.a . in the 1976 budget ;
  agreed that the Council (Development ) should discuss with the
  Commission at its meeting of 8 November how that sum was to be
  allocated ;          »
  decided to accept on the first reading the inclusion of a 30 million u.a*
  appropriation in the 1977 budget for the purpose of financial and
  technical cooperation with the non-assooiated developing countries ;
  noted that the Commission had formally undertaken to present to it
  as soon as possible a proposal , drawn up on an appropriate legal
  basis , for the implementation of such appropriations *        .
 Resolution on financial and teohnical aid to developing countries not
 associated with the Community*
 ---pagebreak--- The agreement on the commitment and allocation of the 20 million u.a.
in accordance with the guidelines defined "by the Commission was oonfirmed
some weeks later, on 7 December 1976. For its part , the Commission -
as it had promised the European Parliament , in particular , to do - had taken
in good time the appropriate steps for project identification and
appraisal and was on the point of completing the final negotiations with the
recipient countries and bodies selected; it accordingly managed to
oommit all the appropriation before the end of the 1976 budget year.
Tflfltly , the Commission would point out that the appropriations to be entered in
the 1977 budget were increased on the second reading in December 1976
from 30 to 45 million u.a ., their use , however, remaining conditional
upon the adoption by the Council of a Commission proposal establishing
the appropriate legal basis for the implementation by the Community
of financial and technical aid to the non-associated developing oountriee .
The Commission considers that aid of this kind can be based only on
Article 235 of the Treaty, which stipulates that " If action by the
Community should prove necessary to attain ....... one of the objectives
of the Community and this Treaty has not provided the necessary powers ,
the Council shall , acting unanimously on a proposal from the Commission
and after consulting the Assembly , take the appropriate measures".
To this end , the Commission hereby submits to the Council for adoption
the attached proposal for a Counoil regulation , the general guidelines
of which as regards objectives , scope and the procedure for its implementation
are dealt with in the following seotions .
2.   Objectives , field of application and procedure for implementing the aid
The fundamental guidelines governing financial and technical aid to
non-associated developing countries have already been the subject of two
initial Commission Communications to the Council , referred to above ,
                                                                          1
which were presented respectively on 5 November 1974 and 5 March 1975 •
^ The next Communication on this subject (3 March 1976), referred to at the
  beginning of this Communication , defined , within this framework , the
  specific criteria for implementing the financial and technical aid entered
 under this head in the 1976 budget ( 20 million u.a .).
 ---pagebreak---                      The guidelines set out in all these communi cations will
  remain valid for the future .    It would therefore be a good idea to recall
  them briefly and provide further details and clarification of a number of
  specific points .
  The guidelines for Community financial and technical aid to non-associated
  developing countries which the Commission proposes to follow are as follows :
  Sectoral allocation
  The priority objective is to meet food requirements .
  This embraces action in the agricultural , stock-farming and fishery sectors .
  In addition to measures aimed directly at increasing and improving production
  (investments , supply of equipment , seeds , fertilizers , etc .), it involves the
  setting-up and improvement of infrastructure , marketing and storage , applied
  research , training , technical assistance , etc .  At the same time Community aid
 will also be able to help promote the rural sector as a whole by extending its
  field to other measures such as the development of craft industries , the
  financing of agro-industrial projects and the improvement of the social well­
 being of the rural population (health , drainage , etc .).
 As a secondary aim , in certain specific cases action to promote regional
  cooperation might also be considered .
  Geographical allocation
Aid for meeting food requirements must be granted to the least developed countries *
In specific action to promote regional cooperation , account should be taken of the
need to ensure a Community presence in the major regions of the developing world .
<
                        *
End recipient
In so far as possible the poorest sections of the population in the developing
 countries concerned should receive maximum benefit from schemes to which the
Community contributes .
   C0M(75)128 final , presented on 5 November 1974 *
   The table in question is reproduced as an annex to this document .
 ---pagebreak---                                - 4 -
Nature of aid
Community aid may either "be given in isolation or "be combined with
other sources of external financing. In so far as possible it will
be coordinated with and complement the Member States' bilateral aid .
The bulk of the aid will have to take the form of direct action .
Nevertheless , it will be possible for part of the aid to be
channelled through national and regional financial bodies .
Terms and conditions of aid
Community aid will have to be used in so far as possible for financing
specific projects ( project aid ). In certain cases , however , in
particular where the administrative and planning capacity of the
recipient countries is adequate , programme aid may also be considered .
Community aid should take the form of grants .   In view of the
objectives , the categories of countries chosen and the sectoral
guidelines proposed in this communication , the Commission considers
that the only conceivable form is grant aid .
In the light of the positions expressed by the Community on other
occasions , participation in tendering procedures and other procedures
for the award of contracts should , in the Commission 's view , be open
on equal terms to all natural and legal persons of the Member States
and recipient State . The possibility of other developing countries
in the same region being included should also be preserved .
Period of exécution
Execution of most of the development projects , particularly in the
rural sector – which is seen as the priority objective of Community
action – should be seen in a multi annual framework .
The financial arrangements which ought therefore to be applied should ,
in the Commission 's view , be those provided for in the financial
 ---pagebreak---  regulation (COM (76 ) 210 final ) submitted for Council approval on
 25 May 1976 .
Monitoring of use of funds
The Commission will see to it that every financing agreement signed with
the beneficiaries contains provision for the Community to monitor the use
of the funds appropriately .
3.         Consultation and information procedures
            In its communication of 3 March 1976 (COM(76 ) 89 ) the Commission
already pronounced itself in favour of a procedure for consultation with
the representatives of the Member States – through a Committee to be
set up for this purpose – on the implementation of financial and technical
aid to non–associated developing countries .
           Confirming this position , the Commission proposes that this
procedure should involve the following phases :
     (a )  The programme and specific guidelines for the aid provided from
           the resources entered in the Community 's budget will be adopted
           by the Commission following exchanges of views on the intentions
           of the Member States and the Commission respectively as to
           intervention in the non-associated developing countries .     This
           exchange of views will take place in a Committee of representatives
           of the Member States which will need to be set up .
           The Commission will notify the Council and the European Parliament
           of these specific guidelines as soon as possible .
     (b )  The financing decisions relating to the projects and programmes
           proper will be taken by the Commission in accordance with the
           budgetary procedure but with due regard for the opinion of the
           Committee referred to above .
           The Committee should mainly concentrate itB examination of the
                                                                 C
           financing proposals on whether the projects and programmes are in
           keeping with the objectives of Community aid and whether they are
           consistent with the development plans of the countries concerned .
   1
     Proposal for a Council Regulation (ECSC, EEC , EURATOM) amending the
     Financial Regulation of 25 April 1973 applicable to the general budget
     of the European Communities - C0M(76)210 final , transmitted to the
     Council by letter ( signed hy Mr Hillery ) on 26 March 1976 .
 ---pagebreak--- Furthermore , the Council and the Parliament will be informed "by the
Commission of how the financial and technical aid to the
non-associated developing countries is being administered . This
information will be supplied within the framework of the budgetary
procedure .
Conclusion
On the basis of the proposals made in this Commission communication ,
it is requested that the Council adopt the regulation annexed
hereto .
 ---pagebreak---                            Proposai for
                  COUNCIL RBCULATION (EEC ) N O
                               of
      on financial and technical aid to non-associated
                   developing countries
THE COUNCIL OF THE EUROPEAN COMMUNITIES ,
Having regard to the Treaty establishing the European Economic Community ,
and in particular Article 235 thereof,
Having regard to the proposal from the Commission ,
                                                           1
Having regard to the opinion of the European Parliament ,
Whereas the pursuit of a Community policy also postulates the deployment of
certain financial and technical aid operations for the "benefit of non-
associated developing countries ;
Whereas such operations would be likely to contribute to the attainment of
the Community 's objectives ;
Whereas the Council of the European     Communities , in a resolution of
1 6 July 1974 , confirmed the principle of Community financial and technical
aid to non-associated developing countries ;
Whereas the action to be undertaken to implement such aid , the objectives
to be attained and the detailed rules of administration should be defined ;
whereas a procedure should be established involving the consultations of a
r unittee comprising representatives of the Member States ;
  CJ No
 ---pagebreak--- Whereas the Treaty does not provide the necessary powers for this purpose ,
HAS ADOPTED THIS REGULATION J
                           Article 1
The Community shall implement financial and technical aid to
non–associated developing countries tinder the conditions defined below*
                           Article 2
The priority objective of the aid shall "be to cover the food
requirements - broadly interpreted – of non–associated developing
countries by means of projects in the agricultural , stook–farming
and fishery sectors .
In addition to measures aimed directly at increasing and improving
production ( capital projects , the supply of equipment , seed and
fertilizer ), the aid shall cover the provision and improvement of
infrastructure , marketing and storage , applied research , vocational
training , and so on .  At the same time , in order to help promote
the rural environment as a whole , Community aid may be extended ,
where appropriate , to other operations such as the development of
craft industry ,  the financing of agro-industrial projects and the
improvement of social welfare ( training , health , drainage , etc .)*
As a subsidiary form of action and in certain specific cases ,
operations to foster regional oooperation may also be considered *
 ---pagebreak---                                Article 3
The aid shall be directed towards the poorest developing countries ; account
 shall be taken , however, in particular by way of specific operations to
 foster regional cooperation , of the necessity to ensure a Community presence
 in the major regions of the developing world .
                               Article 4
The Commission shall administer the aid in accordance with the procedures
laid down in this Regulation .
                               Article 5
The funds required for the aid shall be those established by the budget of
the Communities *   Projects and programmes thus financed shall be undertaken
on a multiannual basis *
                               Article 6
The Community aid shall be in the form of grants *
                               Article 7
The aid may cover expenditure on imports and local expenditure required
to carry out projects and programmes *    Taxes , duties and charges shall
be excluded from Community financing .    Maintenance and operating expenses
may be covered only at the take-off stage of projects and in the case of
training and research programmes *
 ---pagebreak---                           Article 8
As regards operations financed "by the Community , participation in tendering
procedures and other procedures for the award of contracts shall be open on
equal terms to all natural and legal persons of the Member States and the
recipient State .   Participation may also be extendfi to other developing
countries belonging to the same region .
                          Article 9
Within the framework of the budgetary procedure , the Commission shall provide
the Council and the European Parliament with information on the administration
of Community aid to non–associated developing countries .
                          Article 10
A Committee chaired by a representative of the Commission and comprising
representatives of the Member States shall be set up .    It shall be
presided over by a representative of the Commission .
The Secretariat of the Committee shall be provided by the Commission.
Any rule of procedure for this Committee not laid down in this Regulation shall
be decided on by the Committee acting unanimously .
                          Article 11
The Committee shall institute a regular exchange of information on operations
undertaken by the Member States in non-associated developing countries in
the course of this , it Bhall be informed by the Commission of the specific
guidelines which it (the Commission ) intends to follow in the provision of
Community aid .
After this exchange of views , the Commission shall adopt those guidelines
and shall notify the Council and the European Parliament thereof.
 ---pagebreak---                            Article 12
The Committee shall deliver an opinion on draft decisions presented to it
by the Commission .
The draft decisions shall be accompanied by a memorandum describing, in
particular , the place of the projects or programmes in the context of the
development prospects of the countries concerned , and containing information
on the social effects thereof .
                          Article 13
The Committee shall act by a qualified majority in accordance with the first
indent of Article 148(2 ) of the Treaty .
                          Article 14
The draft decisions , together with the opinion of the Committee , shall be
submitted to the Commission .
The Commission ^ decisions shall be applicable immediately .     If its decisions
are not in accordance with the opinion delivered by the Committee , however ,
the Commission shall communicate them immediately to the Council .     In that
event the Commission shall defer application of the decisions it has taken
by up to two months from the date of so communicating them .
   e Council , acting by a qualified majority , may take a different decision
vi thin the two–month period .