CELEX: 51989PC0132
Language: en
Date: 1989-03-15
Title: Proposal for a COUNCIL DECISION on the conclusion of a Protocol on financial and technical cooperation between the European Economic Community and the Republic of Malta (presented by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (89) 132
Vol. 1989/0039
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983 concernant
l'ouverture au public des archives historiques de la Communauté économique européenne et de
la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983, p. 1) modifié en dernier
lieu par le règlement (UE) 2015/496 du Conseil du 17 mars 2015 (JO L79 du 25. 3.2015, p. 1), ce
dossier est ouvert au public. Le cas échéant, les documents classifiés présents dans ce dossier
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conformément aux articles 26(3) et 59(2) de la décision (UE, Euratom) 2015/444 de la
Commission du 13 mars 2015 concernant les règles de sécurité aux fins de la protection des
informations classifiées de l'Union européenne.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983 concerning
the opening to the public of the historical archives of the European Economic Community and the
European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as last amended by Council
Regulation (EU) 2015/496 of 17 March 2015 (OJ L 79, 27.3.2015, p. 1), this file is open to the
public. Where necessary, classified documents in this file have been declassified in conformity
with Article 5 of the aforementioned regulation or are considered declassified in conformity with
Articles (26.3) and 59(2) of the Commission Decision (EU, Euratom) 2015/444 of 13 March 2015
on the security rules for protecting EU classified information.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1. Februar
1983 über die Freigabe der historischen Archive der Europäischen Wirtschaftsgemeinschaft und
der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983, S. 1), zuletzt geändert durch die
Verordnung (EU) Nr. 2015/496 vom 17. März 2015 (ABI. L 79 vom 25.3.2015, S. 1), ist dieser Akt
der Öffentlichkeit zugänglich. Soweit erforderlich, wurden die Verschlusssachen in diesem Akt in
Übereinstimmung mit Artikel 5 der genannten Verordnung freigegeben; beziehungsweise werden
sie auf Grundlage von Artikel 26(3) und 59(2) der Entscheidung der Kommission (EU, Euratom)
2015/444 vom      13. März 2015 über die Sicherheitsvorschriften für den Schutz von EU-
Verschlusssachen als herabgestuft angesehen.
 ---pagebreak--- COMMISSION OF THE: EUROPEAN COMMUNITIES
                                                      COM ( 89) 132 final
                                                      Brussels, 15 March 1989
                           Proposai for a
                          COUNCIL DECISION
    on the conclusion of a Protocol on financial and technical
    cooperation between the European Economic Community and
    the Republic of Malta
                 (presented by the Commission)
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 ---pagebreak---                      EXPLANATORY MEMORANDUM
 1 . By its Decision of 23 January 1989 the Council authorized
 the Commission to enter into negotiations with the Republic
 of Malta with a view to concluding the third financial
 Protocol under the EEC-Malta Association Agreement , and
adopted directives for those negotiations .
 Following the negotiations , which were held in Brussels on
16 February , the text of the new financial Protocol was
initialled by the head of the Community delegation and the
head of the Maltese delegation .
2.   The Commission hereby requests the Council to approve
the outcome of the negotiations with Malta and initiate the
procedures for signing and concluding the new financial
Protocol . It therefore transmits to the Council a proposal
for a Council Regulation on the conclusion    of the initialled
Protocol , the text of which is attached .
 ---pagebreak---                                        COUNCIL DECISION
          on the conclusion of a Protocol on financial and technical cooperation
              between the European Economic Community and Malta
    THE COUNCIL OF THE EUROPEAN COMMUNITIES .
    Having regard to the Treaty establishing the European Economic Community , and in
    particular Article 233 thereof .
    Having regard to the recommendation from the Commission ,
   Having regard to the assent of the European Parliament
   Whereas the Protocol on financial and technical     cooperation between the European
   Economic Community and Malta should be approved ,
   HAS DECIDED AS FOLLOWS :
                                          Article  1
   The Protocol on financial and technical     cooperation between the European
   Economic Community and Malta is hereby approved on behalf of the Community .
  The text of the Protocol    is attached to this Decision .
                                         Article 2
  The President of the Council shall give the notification provided for in
  Article 2 '  of the Protocol
                                         Article 2
 This Decision shall enter into force on the day following that of its publication
 in the Official Journal of the European Communities .
 Done at Brussels ,
                                                      For the Council
                                                       The President
m     OJ Se L
( 2 ) The date cf entry into force of the Protocol will be published in the
      Official Journal cf the European Communities by the General Secretariat of
      the Council .
 ---pagebreak---                                              PROTOCOL
                            on financial and technical cooperation
                            cetween the European Economic Community
                                            and Malta
    iriE COUNCIL OF THE EUROPEAN COMMUNITIES ,
   of the one part , and
   THE GOVERNMENT OF MALTA ,
   of the other part ,
  ANXIOUS to promote the development of the Maltese economy and the
  objectives of the Agreement establishing an Association between the European
  Economic Community and Malta ,
  HAVE DECIDED to conclude this Protocol and to this end have designated as their
  Plenipotentiaries :
  THE COUNCIL OF THE EUROPEAN COMMUNITIES :
 THE GOVERNMENT OF MALTA :
 WHO . having exchanged their full powers , found in good and due form .
 HAVE AGREED AS FOLLOW’S :
                                          Article  î
 Within the framework of the financial and technical cooperation provided for in
 the Agreement establishing an Association between the European Economic Community
 and Malta , the Community shall participate , on the terms set out in this Protocol ,
 in the financing of measures intended to contribute to the economic and social
 development of Malta .
                                          Article 2
 1.    For the purposes specified in Article 1 . and for a period expiring on
31     October 1 993 , an aggregate amount of 38 million ECU may be committed as
follows :
a ) 23 million ECU in the form of loans from the European Investment Bank ,
      hereinafter referred to as " the Bank ", made from its own resources .
b ) 12.5 million ECU from the Community 's budgetary resources , in the form of grants ;
c ) 2.5 million ECU from the Community 's budgetary resources , inin the
                                                                     the form
                                                                         form of
                                                                              of
      contributions to risk capital formation .
 ---pagebreak---    2.    The leans referred to in paragraph 1(a ) shall carry a 1.5 % interest rate
   subsidy financed by means of the funds referred to in paragraph 1(b ).
   3.    The risk capital referred to in paragraph 1(c ) shall contribute to the
  cooperation     objectives and operations defined in Article 3 , in particular
  those indicated in the first indent of paragraph 2 of that Article .
  It shall be used primarily to make equity capital or the like available to
 Maltese private undertakings , public undertakings and undertakings with State
 participation ,     in particular those with which natural or legal persons who are
 nationals of a Community Member State are associated .      It may be used under
 the same conditions to finance specific studies for the preparation and
 development of such undertakings' projects and to assist such undertakings in
 their starting-up period .
 It shall be granted and administered by the Bank and may take the form of :
 a ) subordinated loans , where repayment and payment of any interest will not be
      made until   other bank claims have been  settled ;
b ) conditional loans , where repayment or duration will depend on the
      fulfilment of conditions specified at the time when the loan is granted ;
c ) acquisition of temporary minority holdings on behalf of the Community in
      the capital of undertakings established in Malta ;
d ) finance for the acquisition of holdings , in the form of conditional loans
      granted to Malta or . with the Maltese Government’s agreement , to Maltese
      undertakings . either directly or through the intermediary of Maltese
      financial  institutions .
 ---pagebreak---                                              Article 3
     1 . The total amount fixed in Article 2 shall be used primarily for the
    financing or part-fmancing of cooperation projects or operations aimed at
    strengthening the economic links between the Community and Malta in their mutual
    interest by developing cooperation in the fields of industry , training and
    research , technology , commerce and other services . Economic infrastructure and
    capital projects which are complementary to the above operations may also be
    f i nanced .
   2.     P. ion ^y shall be given to those of the eligible projects and operations
   having the following aims :
   * m . he industrial and service sectors , promotion of joint ventures between
       firms from the Community Member States and Maltese firms , direct contacts
       exchange of information , promotion of investment and private-sector capital
       flows , and support for small and medium-sized enterprises , including craft
      businesses , in order to promote employment :
  - in the field of science and technology , expansion of Malta 's training and
      research capability and the establishment or development of links between
      Maltese and European private and public sector training and research
      institutions :
  - in the trade sector , diversification and promotion of exports and organization
      of contacts between Maltese firms and firms from the Community Member States :
 - in the priority areas referred to above , practical training schemes linked to
     projects or operations in firms and research institutions .
3 . The Community 's financial contributions shall be used to cover internal and
external costs necessarily incurred in carrying out approved projects or schemes
 ( including costs in respect of studies , consultants and technical assistance ).
They may not be used to cover current administrative , maintenance or operational
expenditure .
                                           Article 4
1 . Capital projects shall be eligible for financing either by Loans from the Bank /
combined with interest rate subsidies on the terms set out in Article 2(2 )/ or by
risk capital , or by grants , or by a combination of these means .
2.      Technical and economic    cooperation shall normally be financed by grants .
 ---pagebreak---                                              Artide 5
     1 . The amounts to be committed each year shall be as far as possible distributed
     throughout the period of application of this Protocol .
    2.   Any funds not committed at the end of the period referred to in Article 2(1 )
    shall be used until exhausted     in accordance with the arrangements laid down in
   this Protocol .
                                           Article 6
     1 . Loans granted by the Bank from its own resources shall be made in accordance with
     the arrangements , conditions and procedures laid down in its statute . They shall , as
     regards their duration , be subject to terms established on the basis of the economic
     and financial characteristics of the projects for which these loans are intended , also
     taking into account the conditions obtaining on the capital markets on which the Bank
     procures its resources . The interest rate shall be determined in accordance with the
     Bank 's practice at the time of signature of each loan contract , subject to the
     interest rate subsidy referred to in Article 2(2 ).
  2 . The terms and arrangements for contributions to risk capital formation shall
  be determined on a case - by - case basis .
  3 . Aid from the Community 's budget resources , other than that in the form of
 interest rate subsidies for loans from the Bank or that intended for risk capital
 operations , shall be granted and administered by the Commission .
 4.     The funds referred to in Article 2 may be granted through the intermediary of
 the State or appropriate Maltese bodies , on condition that they allocate the
 amounts to the recipients on terms decided , by agreement with the Community , on
 the basis of the economic and financial characteristics of the projects and
 operations for which they are intended .
                                          Article 7
Aid contributed by the Community for the execution of certain projects may . with
the agreement of Malta , taJce the form of co-financing in which , in particular ,
credit and development bodies and institutions of Malta , of Member States or of third
States or international finance organizat ions would take part .
                                          Article 8
The following shall be eligible for financial and technical         cooperation :
a ) in general :
      - the State of Malta ;
 ---pagebreak---     b ) with the agreement of the Maltese Government , for orojects or operations
         approved by it :
         - official Maltese development agencies ,
         - private agencies working in Malta for economic and social development ,
           undertakings carrying on their activities in accordance with industrial and business
           management methods and set up as legal persons within the meaning of Article 12,
        - groups of producers who are nationals of Malta and . exceptionally , where no
           such groups exist , the producers themselves ,
        - scholarship holders and trainees sent by Malta under the training schemes referred
           to in Article 3 .
                                           Article 9
  1      With a view to making optimum use of the instruments and means provided for
  _.. this Protocol and achieving the objectives laid down in Article 3 . the
 Community and Malta shall , by mutual agreement on the basis of information
 provided by Malta , draw up an indicative programme committing both parties and
 determining the specific objectives of financial and technical cooperation , the
 priority sectors for intervention and the action programmes envisaged .
 2 . The indicative programme may be reviewed by mutual agreement to take account
 of any changes in Malta 's economic situation or in the objectives and priorities
 laid down by its development plan .
3 . The Community and Malta shall continue their exchanges of views within the
appropriate bodies and shall , at least once during the period of implementation
of this Protocol and at the latest before the end of the third year following its
entry into force , make an assessment of the implementation of the indicative
programme .
                                           Article 10
     1.    Within the framework laid down in accordance with Article 9 , the State of Malta or ,
     with the agreement of its Government , the other possible beneficiaries referred to in
     irticle 8 , shall submit their requests for financial aid to the Community .
 2 . The Community shall appraise the requests for financing in collaboration with
the competent Maltese authorities and other beneficiaries , in accordance with the
objectives referred to in Article 9 , and shall inform them of the decisions taken
on such requests .
                                          Article  1 1
 1 . The execution , management and maintenance of schemes that are the subject of
financing under this Protocol shall be the responsibility of Malta or of the other
  beneficiaries referred to in Article 8 .
The Community shall make sure that this financial aid is expended in accordance
with the agreed allocations and to the best economic advantage .
 ---pagebreak---       2 . The projects and action programmes shall be the subject of appropriate
     evaluation , the outcome of which shall be communicated to both parties , which shall
     take      appropriate measures by mutual agreement .
     3.   Certain rules for administering the financial aid granted by the Community
    shall be the subject of an exchange of letters or a framework agreement between the
    Commission and Malta upon conclusion of this Protocol .
                                          Article  12
    1 . All natural and legal persons falling within the scope of the Treaty
   establishing the European Economic Community and all natural and legal persons of
   Malta may participate on equal terms in tendering procedures and other procedures
   for the award of contracts likely to be financed . Any such legal person formed
   in accordance with the law of a Member State of the European Economic Community
   or of Malta must have its registered office , its administrative head office or
   its principal establishment in the territories in which the EEC Treaty is applied
   or in Malta ; however , where only its registered office is in the said territories
  or in Malta , the activities of such legal person       must be effectively and
  continuously linked with the economy of those territories or of Malta .
   2 . In agreement with Malta , natural and legal persons who are nationals of developing
  countries associated with the Community by comprehensive cooperation or
  association agreements may exceptionally , on a case - by - case basis , be authorized
  by the Community to participate in the operations referred to in paragraph 1 •
  which are financed by the Community . The eligibility of such natural or legal
 persons shall be assessed , mutatis mutandis , on the terms set out in paragraph 1 .
                                         Article 13
 To promote participation by Maltese undertakings in the performance of contracts
 and to ensure the rapid and effective implementation of projects and operations
 financed from resources administered by the Commission ;
 l ) an accelerated procedure for issuing invitations to tender involving shorter
       time limits for the submission of tenders , may be used by Malta in agreement
       with the Commission for works contracts which , because of their scale , are
       mainly of interest to Maltese undertakings .
       The organization of this accelerated procedure shall not rule out the
       possibility of issuing an international invitation to tender where it appears
       that the nature of the works to be carried out or the usefulness of widening
      participation justifies recourse to international competition ;
2 ) in urgent cases or where the nature , small scale or particular characteristics
      of certain works or supplies so warrant , Malta may exceptionally , in agreement
      with the Commission , authorize the placing of contracts following restricted
      Invitations to tender , the conclusion of contracts by direct agreement and the
     performance of contracts through public works departments .
 ---pagebreak---          The procedures referred to in points 1 and 2 may be used for operations
         an estimated cost of less than 3 million ECU .
                                                                                   with
                                           Article 14
    1 . Malta shall apply to contracts awarded for the execution of Drojects or
    schemes financed by the Community fiscal and customs arrangements no less
   favourable than those applied vis - a-vis the most favoured State or the most
   favoured international development organization .
   2 . The content of the arrangements referred to in paragraph 1 shall be
   established by means of an exchange of letters between the Parties .
                                          Article 15
  Malta shall take the necessary measures to ensure that interest and all other
  payments due to the Bank in respect of transactions concluded under this Protocol
  are exempted from any national or local tax or levy .
                                         Article   16
  Where a loan is accorded to a beneficiary other than the State of Malta , the
  provision of a guarantee by the latter or of other adequate guarantees
  shall be required by the Bank as a condition of the grant of the loan .
                                         Article  17
 Throughout the duration of the loans and risk capital operations provided for in
 Article 2 , Malta shall undertake to :
 a ) place at the disposal of the beneficiaries or of their guarantors the currency
      necessary for the payment of interest and commission and amortization
      of loans and risk capital aid granted for the implementation of operations on
      its territory ;
b ) make available to the Bank the foreign currency necessary for the transfer of
      all sums received by it in national currency which represent the net revenue
      and proceeds from transactions involving the acquisition by the Community of
      holdings in the capital of companies or firms .
                                        Article  18
The results of financial and technical       cooperation may be examined within the
Association Council which shall establish , where appropriate , the general
guidelines for such      cooperation .
                                       Article   19
One year before the expiry of this Protocol , the Contracting Parties shall
examine what arrangements could be made for financial and technical cooperation
during a possible further period .
                                                                                  λο
 ---pagebreak---                                           Article 20
  This Protocol shall be annexed to the Agreement establishing an Association
  between the European Economic Community and Malta .
                                         Article 21
 1 . This Protocol shall be subject to approval in accordance with the Contracting
 parties' own procedures : the Contracting Parties shall notify each other that the
 procedures necessary to this end have been completed .
2.     This Protocol shall enter into force on the first day of the second month
following the date on which the notif ications provided for in paragraph 1 have been
given .
                                        Article 22
This Protocol is drawn up in two original copies in the Danish . Dutch . English ,
French , German , Greek , Italian , Portuguese and Spanish languages , each of these
    its being equally authentic .
 ---pagebreak--- Déclaration commune relative à l' article 5 paragraphe 2
   Il est entendu que l' application de l' article 5 paragraphe 2
est subordonnée à la présentation par le gouvernement ma l ta i s de
projets reconnus mutuellement acceptables .
 ---pagebreak---                                        FICHE  FINANCIERE
 Le     Protocole    prévoit       l' octroi   de 33  MEC 'J     d' aide  communautaire
 pour Malte pour une période gui expire le 3' octobre 1933 .
 La répartition de cette aide à imputer sur                       la  ligne budgétaire
 961    (" dépenses obligatoires ") à partir de           1939 est :
        2 3 MEC U de prêts de la 3EI des ressources propres ;
        15 MECU de ressources budgétaires de la Communauté :
              dont : -        2.5 MEC'J pour des capitaux à risques
                      - 12.5 MEC'J pour des aides non remboursables .
Le plan budgétaire envisagé est le suivant :
     1                       1                                 1
                                                               1
    I      Année             j   Crédits d' engagement        j Crédits de paiement
                                                              I
   I                     t                                    1
   J       1939             j           3.000.000
                                                              j          250.000
   j
   I
           1990            jI           4.000.000
                                                             j         1.000.000
  !        1551             i           4.000.000
                                                             j         2.000.000
  1        1992            i            4.000.000           j
                                                            1
                                                                       3.000.000
 1
 I
           1933           I
                          I
                                            -
                                                           11          3-000.000
 j 1 99-4 et au-delà j                                      j          5.750.000
 1                       i                                i1
 ---pagebreak---             DECLARATION AU LIEU DE FICHE D' IMPACT    SUR LE PME
       La décision envisagée ne concerne que La conclusion du Protocole
relatif à la coopération financière et technique avec la République de
Malte et, en tant que telle , n' aura pas d' effets significatifs sur
les PME communautaires .