CELEX: 51989PC0536
Language: en
Date: 1989-10-27
Title: PROPOSAL FOR A COUNCIL REGULATION ( EEC ) ON ECONOMIC AID TO THE REPUBLIC OF HUNGARY AND THE POLISH PEOPLE' S REPUBLIC

N o C 296/8                            Official Journal of the European Communities                                24. 11. 89
              Proposal for a Council Regulation (EEC) on economic aid to the Republic of Hungary and the
                                                   Polish People's Republic
                                                     COM(89) 536 final
                                     (Submitted by the Commission on 27 October 1989)
                                                        (89/C 296/06)
THE COUNCIL OF THE EUROPEAN COMMUNITIES,                           HAS ADOPTED THIS REGULATION:
Having regard to the Treaty establishing the European                                       Article 1
Economic Community, and in particular Article 235
thereof,                                                           The Community shall make economic aid available to
                                                                   the Republic of Hungary and the Polish People's
                                                                   Republic in accordance with the criteria laid down in this
Having regard to the proposal from the Commission,                 Regulation.
Having regard       to   the   opinion  of   the   European                                 Article 2
Parliament,
                                                                   1.    The amount of Community expenditure needed to
                                                                   implement the measures introduced by this Regulation is
Whereas the European Economic Community has                        estimated at ECU 200 million for the period to 31
concluded Agreements on trade and commercial and                   December 1990.
economic cooperation with the Republic of Hungary and
the Polish People's Republic; whereas Title II of those            2.    The budget authority shall determine the amount of
Agreements provides inter alia that the Contracting                appropriations available each year.
Parties shall foster economic cooperation on as broad a
base as possible in all fields deemed to be in their mutual
interest;                                                                                   Article 3
                                                                   The aid shall be used primarily to finance or participate
Whereas the Community and its Member States have                   in the financing of projects or cooperation operations
decided to take concerted action with certain                      aimed at the economic development and modernization
non-member countries in the form of measures intended              of Hungary and Poland and the strengthening of
to support the process of economic and social reform               commercial and economic links between the Community
under way in Hungary and Poland;                                   and those countries.
                                                                   Such projects or cooperation operations should be
Whereas the implementation of such measures will help
                                                                   undertaken in particular in the areas of agriculture,
achieve the Community's aims;
                                                                   industry, investment, energy, training, environmental
                                                                   protection, trade and services; they should be aimed in
Whereas the Community must have the means                 to       particular at the private sector in Hungary and Poland.
implement such measures;
                                                                                            Article 4
Whereas the fields in which measures             are to   be       The aid shall be granted by the Community, either inde-
undertaken should be determined;                                   pendently or in the form of cofinancing with the
                                                                   Member States, non-member countries or multilateral
Whereas it is necessary to estimate the amount of                  organizations.
Community financial resources needed to implement
these measures in 1990; whereas that amount is
                                                                                            Article 5
consistent with the financial perspective annexed to the
Interinstitutional Agreement of 29 June 1988;                      Community aid shall in general be in the form of grants.
                                                                   They may generate funds that can be used for financing
                                                                   cooperation projects or operations.
Whereas the appropriations actually available will be
determined under the budget procedure in accordance
with the said Agreement;                                                                    Article 6
                                                                    1.   The aid may cover expenditure on imports and
Whereas the Treaty has not specifically provided for the           local expenditure needed to carry out the projects and
necessary powers of action,                                        programmes.
 ---pagebreak--- 24. 11. 89                            Official Journal of the European Communities                             No C 296/9
Taxes, duties and charges and the purchase of property           committee shall consist of representatives of the Member
shall be excluded from Community financing.                      States and shall be chaired by the Commission represen-
                                                                tative.
2.    Maintenance and operating costs may be covered
for training and research programmes and for other               2.    The Commission representative shall present to the
projects; however, for the latter such costs may be              committee a proposal for the measures to be taken. The
covered only in the start-up stage and shall be degressive.      committee shall deliver its opinion on the proposal,
                                                                within a period which the Chairman may set in the light
3.    However, in the case of cofinancing, account shall         of the urgency of the measures, and where appropriate a
be taken in each case of the procedures applied by the          vote may be taken.
other donors.
                                                                 The opinion shall be entered in the minutes; each
                           Article 7                             Member State shall have the right to request that its
                                                                 position be noted in the minutes.
1.     In the case of assistance exceeding ECU 50 000 for
which the Community is the sole source of external aid,          The Commission shall take the fullest possible account of
participation in invitiations to tender and contracts shall      the opinion delivered by the committee and shall inform
be open on equal terms to all natural and legal persons          the committee of how its opinion has been taken into
of the Member States and the recipient State.                    account.
2.     Paragraph 1 shall apply also to cofinancing.              3.    The Commission may put before the advisory
                                                                 committee any matter concerning the implementation of
3.     In the case of cofinancing, however, the partici-         cooperation operations.
pation of third countries in invitations to tender and
contracts may be authorized by the Commission, but                                       Article 10
only on a case-by-case basis, after examination of the
case.                                                            Account shall be taken of the preferences and wishes
                                                                 expressed by the recipient countries concerned in the
                                                                 choice of measures to be financed pursuant to this Regu-
                           Article 8
                                                                 lation.
 1.    The Commission shall administer the aid.
                                                                                         Article 11
2.     The general guidelines applicable to the aid
allocated for the following year shall be adopted before         From 1990 the Commission shall draw up each year a
the end of each year in accordance with the procedure            report on the implementation of cooperation operations.
laid down in Article 9 (2).                                      The report shall be sent to Parliament, the Council and
                                                                 the Economic and Social Committee.
                           Article 9
                                                                                          Article 12
 1.    An advisory committee on aid for economic
 restructuring in Poland and Hungary, hereinafter called         This Regulation shall enter into force on the third day
 the 'advisory committee', is hereby set up. The                 following that of its publication in the Official Journal of
 committee shall draw up its own rules of procedure. The          the European Communities.