CELEX: 51998PC0105
Language: en
Date: 1998-02-27
Title: Proposal for a Council Decision on the position to be taken by the Community within the Association Council established by the Europe Agreement signed on 19 December 1994 between the European Communities and their Member States, of the one part, and the Slovak Republic, of the other part, with regard to the extension for a further period of five years in accordance with the provisions of Article 64, paragraph 4(a) of the Europe Agreement

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                  Brussels, 27.02.1998
                                                  COM(1998) 105 final
                                                  98/0073 (ACC)
                                   Proposal for a
                              COUNCIL DECISION
on the position to be taken by the Community within the Association Council
established by the Europe Agreement signed on 19 December 1994 between the
European Communities and their Member States, of the one part, and the Slovak
Republic, of the other part, with regard to the extension for a further period of five
years in accordance with the provisions of Article 64 § 4(a) of the Europe
Agreement
                          (presented by the Commission)
 ---pagebreak---  ---pagebreak---                         EXPLANATORY MEMORANDUM
Extension for a further five year period in accordance with the provisions of Article
                              04 § 4(a) of the Europe Agreement
1.      Article 64, paragraph 4 (a) of the Europe Agreement with Slovakia provides that,
        for the purpose of applying certain provisions relating to public aid, during the
        first five years after the entry into force of the Agreement any public aid granted
        by Slovakia shall be assessed taking into account the fact that Slovakia shall be
        regarded as an area identical to those areas of the Community eligible for state aid
        pursuant Article 92(3) (a) of the Treaty establishing the European Economic
        Community.
2.      The period of five years referred above expired on 2 March 1997.
3.      In accordance with the last sentence of article 64(4)(a) of the Europe Agreement,
        the Association Council shall, taking into account the economic situation of
        Slovakia, decide whether that period should be extended for a further five years.
4.      On 14 July 1997, Slovakia requested the extension of the above-mentioned
        provisions.
5.      The main critérium for considering an area eligible for regional aid pursuant to
        Article 92(3)(a) provisions is that GDP per capita should be less than 75% of the
        average GDP of the EU-15, measured in PPP termsl.
6.      The Commission has examined the requests on the basis of the figures and
        information available for Slovakia. The data shows that in the case of
        Slovakia GDP/capita measured in Purchasing Power Parities (PPP)
        reaches 41% of the Community average in 1995. No data is available on GDP
on a regional basis. However, it is reasonable to assume that no Slovak region is at
present over the 75% ceiling mentioned above.
7.      Based on the above, the Commission believes that the figures available provide
        sufficient grounds for granting an extension to Slovakia. However, the
        Commission should be provided with the necessary regional data to assess
    OJ C212/of 12.8.1988 and C163/6 of 4.7.1990
 ---pagebreak--- whether, in the future, Slovakia will not exceed the ceiling of 75% of the
Community's average GDP which is required in order to benefit from 92(3)(a)
status.
This extension will not be applicable to products covered by Protocol 2 of the
Europe Agreement, which will be the object of a separate examination and
procedure.
The Commission therefore requests the Council to adopt the attached proposal for
a Council Decision.
                                     3
 ---pagebreak---                          Proposal for a Decision of the Council
on the position to be taken by the Community within the Association Council
established by the Europe Agreement signed on 19 December 1994 between the
European Communities and their Member States, of the one part, and the Slovak
Republic, of the other part, with regard to the extension for a further period of five
years in accordance with the provisions of Article 64 § 4(a) of the Europe
Agreement
The Council of the European Union,
Having regard to the Treaty establishing the European Community, and in particular
Article 113 in conjunction with the first sentence of Article 228(2) thereof,
Having regard to the proposal of the Commission of the European Communities,
Whereas the European Community and its Member States concluded the Europe
Agreement with the Slovak Republic on 01.02.95;
Whereas Article 64(4)(a) of the Europe Agreement lays down that the Association
Council shall, taking into account the economic situation of Slovakia, decide whether the
period within which any public aid granted by Slovakia shall be assessed taking into
account the fact that Slovakia shall be regarded as an area identical to those areas of the
Community described in Article 92(3)(a) of the Treaty establishing the European
 Economic Community should be extended for a further five years;
 HAVE DECIDED AS FOLLOWS:
 The position to be taken by the Community within the Association Council established
 by the Europe Agreement signed on 16 December and their Member States, of the one
 part, and the Slovak Republic, of the other part, with regard to the extension for a further
 five years in accordance with Article 64 § 4(a) shall be based on the draft decision of the
 Association Council annexed to this Decision.
 Done at Brussels on
 For the Council
                                               U
 ---pagebreak--- Association between the European Union
and the Slovak Republic
The Association Council
Draft decision n°.../...of the Association Council between the European
Communities and their Member States, of the one part, and the Slovak Republic, of
the other part, of .../..adopting the extension of five years of the period within which
any public aid granted by Slovakia shall be assessed taking into account the fact
that Slovakia shall be regarded as an area identical to those areas described in
Article 92(3)(a) of the Treaty establishing the European Economic Community
The Association Council,
Having regard to the Europe Agreement establishing an association between the
 European Communities and the Member States of the one part, and the Slovak Republic
 of the other part, and in particular Article 64(4)(a) thereof,
 Whereas Article 64(4)(a) of the Europe Agreement lays down that the Association
 Council shall, taking into account the economic situation of Slovakia, decide whether the
 period within which any public aid granted by Slovakia shall be assessed taking into
 account the fact that Slovakia shall be regarded as an area identical to those areas of the
 Community described in Article 92(3)(a) of the Treaty establishing the European
 Economic Community should be extended for a further period of five years,
 HAS DECIDED AS FOLLOWS:
                                             Article I
 The period within which any public aid granted by Slovakia shall be assessed taking into
 account the fact that Slovakia shall be regarded as an area identical to those areas of the
 Community described in Article 92(3)(a) of the Treaty establishing the European
 Economic Community is extended for a further period of five years,
                                            Article 2
 Within two years from the date of the extended period of five years enters into force and
 thereafter annually until the end of the five year period, Slovakia will provide the
 European Commission with the necessary regional data to assess, according to the
 method used by the Commission, whether Slovakia continues to fulfil the conditions to
be regarded as an area identical to those areas of the Community described in Article
 92(3)(a) of the Treaty establishing the European Economic Community.
Done at Brussels on
The Secretaries                                          For the Association Council
                                                         The President
 ---pagebreak---  ---pagebreak---                                                                   ISSN 0254-1475
                                                           COM(98) 105 final
                                             DOCUMENTS
EN                                                            11 08 01 02
                                    Catalogue number : CB-CO-98-108-EN-C
                                                             ISBN 92-78-31339-4
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