CELEX: 51993PC0466
Language: en
Date: 1993-10-05
Title: Amended proposal for a COUNCIL REGULATION (EEC) concerning arrangements for implementing the Agreement on the European Economic Area

COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                 C0M(93) 466 final
                                                                 Brussels,  5 October 1993
                                              Amended proposal for a
                                             COUNCIL REGULATION (EEC)
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                                      concerning arrangements for implementing
                                    the Agreement on the European Economic Area
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                             (presented by the Commission pursuant to Article 149(3)
                                                of the EEC-Treaty)
 ---pagebreak---                    EXPLANATORY MBMORANPl[M
1. The revised proposal amends the proposal for a Council Regulation (EEC)
   concerning arrangements for implementing the Agreement on the European
   Economic Area1.
   The deliberations on the existing proposal in the competent working group of
   the Council and in the various Committees of the European Parliament have
   led the Commission to review its proposal and to submit this revised version.
2. The existing proposal does not contain any specific provision with regard to
   the procedure to be followed in order to establish the Community position in
   the EEA Joint Committee leaving this matter to be dealt with according to the
   existing internal Community rules 2.
   However, the discussions have shown that the practical consequences of the
   application of the "existing rules" would imply uncertainties, unnecessary risks
   and avoidable delays: in particular a parallel procedure, one for the "internal"
   and one for the "external" aspect, would imply the risk that matters which
   were internally settled are reopened in the external context; additional delays
   due to protracted internal procedures could weaken the Community's position
   vis-à-vis the EFTA States in respect of the enforcement of the principle,
   fundamental to the EEA Agreement and constancy emphasized by the
   Community, that the EFTA States have to take over new acquis and that as
   quickly as possible.
3. In fact, the decisions to be adopted by the EEA Joint Committee will, in the
   vast majority of cases, concern a pure and simple "extension" of a
   Community act to the EEA via an amendment of the relevant Annex to the
   EEA Agreement. Such decision will come at the end of an extensive
   information and consultation process with the EFTA States during which the
   latter will have had the opportunity throughout the Community internal
   decision-making procedure to give their opinion on the content of the EC act.
   The Council, when adopting the EC act, will, therefore, be aware of the
   EFTA position. Once adopted, the EC act will be transmitted as soon as
       OJ No C 3 3 9 ,     22.12.1992,        p.11
       COM (92) 0495, Explanatory Note, point 4
 ---pagebreak---      possible to the EEA Joint Committee where the decision on its extension
     should, in principle, be a mere formality in the light of the preceding
     information/consultation exercise and of the objective of the EEA Agreement
     which is to ensure homogeneity throughout the EEA.
4.   As a consequence, the objectives of the EEA Agreement necessitate a simple
    and rapid Community-internal procedure which reflects the mechanisms and
    objectives of this Agreement and allows the Community to fulfil its obligation
    in view of the preservation of homogeneity throughout the EEA without
     undue delay.
5.  The above requirements militate in favour of a general mandate from the
    Council to the Commission for all cases where the Community position is to
    consist in a simple extension of EC acquis to the EEA.
    Article 1(1) of the revised proposal provides that whenever the Council adopts
    a legislative act in an area covered by the EEA Agreement, the Commission
    is mandated to put forward, in the EEA Joint Committee, the Community
    position with regard to the extension of the EC act in question to the extent
    that this act, except for any adaptations of a purely technical nature, is, as
    such, transferred into the EEA framework.
6.  Where the Commission is competent under Community law to adopt legal acts
    it must also have therightto express the Community position in trie EEA Joint
    Committee. Consequently Article 1(2) of the revised proposal provides for a
    mandate to the Commission to this effect.
7.  In all other cases not covered by Article 1 the Community position to be taken
    in the EEA Joint Committee or in the EEA Council is to be established in
    accordance with the procedures laid down in the corresponding Treaty
    provisions. This applies in particular to all future decisions of the EEA Joint
    Committee which go beyond a simple extension of EC acquis to the EEA,
    (such as decisions concerning EFTA participation in EC programmes in the
    area of flanking policies, dispute settlement, exceptional deviations from the
    acquis).
8.  Article 2 of the revised proposal provides for a simplified procedure as regards
    the involvement of the European Parliament. The Parliament will he informed
   and its opinion requested on the "EEA extension" of a Community act
   whenever it receives the EC act for consultation.
9. Article 3 of the draft revised proposal lays down the specific internal
   Community procedure for the adoption of the "interim acquis package". This
   package will contain all the Community acts relevant to the EEA published
   between 1 August 1991, the cut-off date for the EEA Agreement signed in
   Oporto on 2 May 1992, and a date as close as possible to its entry into force.
   These acts are not yet contained in the EEA Agreement. The aim will be to
   integrate this growing body of Community measures (already some 300 in
 ---pagebreak---                                        3
    number) into the EEA Agreement by decision of the EEA Joint Committee.
10. Apartfromthese changes and a reference to the Adjusting Protocol (reflecting
    the non-participation of Switzerland in the EEA), a small amendment has been
    made in Article 9 to provide that in the case of the Insurance Committee,
    which has no vice-president, the Bureau will be associated together with the
    president to the consultations with the EFTA States.
11. In the light of all these elements it appears appropriate to request the
    Parliament's assent to the Regulation. The revised proposal is therefore based
    on Article 238 of the EEC Treaty instead of Articles 113 and 235.
 ---pagebreak---                         Amended proposal for a
                       COUNCIL REGULATION (EEC)
                concerning arrangement» for implementing
              the Agreement on the European Economic Area 1
The Council of the European communities,
Having regard to the Treaty establishing the         European  Economic
community, and in particular Article 238 thereof,
Having regard to the proposal from the commission,
Having regard to the assent of the European Parliament,
Whereas an Agreement on the European Economie Area between the European
Economic Community, the European Coal and Steel community and their
Member states, on the one hand, and the ETTA states, on the other, was
signed in Oporto on 2 May 1992;
Whereas, following Switzerland's non-ratification of the EEA Agreement,
the European Community, the European coal and steel Community and their
Member states, on the one hand, and the Republic of Austria, the
Republic of Finland, the Republic of Iceland, the principality of
Liechtenstein, the Kingdom of Norway and the Kingdom of Sweden, on the
other, signed a Protocol amending the Agreement on the European
Economic Area on 17 March 1993; whereas the Agreement and the Protocol
are hereinafter referred to as "the EEA Agreement";
whereas it is necessary to establish the arrangements for implementing
various provisions of the EEA Agreement;
whereas the EEA Agreement provides for an EEA Joint Committee with
decision-making powers; whereas the community will have to state its
views within that committee and it is therefore necessary to lay down
rules of procedure for deciding on the position the ccanmrmlty will
adopt;
whereas provisional rules of procedure must be laid down to incorporate
the acquis communautaire as close as possible to the date of entry into
force of the ££A Agreement, in good time to secure the objectives of
the EEA Agreement, namely to establish a dynamic and homogenous
European Economic Area;
whereas it is neces&ary to lay down the procedures for putting into
effect the safeguard clauses provided for in Articles 112 and 114 of
the £EA Agreement;
    OJ C No 339, 22.12.1992, p. 11.
 ---pagebreak--- Whereas implementing rules must also be provided for in the field of
competition, to enable the principles governing the application of
competition law, on the basis of Articles 85 and 86 of the EEC Treaty,
to be applied mutatis mutandis to the EEA;
Whereas, given the nature of the Banking Advisory Committee and the
Insurance Committee, specific rules should be laid down for consulting
them;
Whereas, in accordance with the EEA Agreement, a Financial Mechanism
has been established by the EFTA States; whereas it is necessary to lay
down the method for determining the allocation of grants and interest
rebates on loans to each recipient Member State in accordance with
Protocol 38 of the EEA Agreement; whereas this allocation is specific
to the EEA framework and the criteria chosen in no way prejudice the
criteria applicable to Community Funds;
whereas the Agreements concluded by the Community bind its institutions
and its Member States; whereas the latter must therefore take any
measures necessary to enable the Community to fulfil its obligations
under the EEA Agreement;
HAS ADOPTED THIS REGULATION:
                               Article 1
1.  Where the Council adopts Community legislation on a matter covered
    by the EEA Agreement, the Commission is authorized to state the
    Community's position on the EEA Joint Committee's decision to
    extend the said legislation to the European Economic Area by virtue
    of an amendment to an Annex or to Protocols 21 and 47 of the EEA
    Agreement, where that decision simply extends the said legislation
    to the European Economic Area, subject to any necessary technical
    amendments.
2.  Paragraph 1 shall also apply in cases where it is the Commission
    which is responsible for adopting Community legislation.
                               Article 2
Where a proposal for Community legislation on a matter covered by the
EEA Agreement is sent to the European Parliament, Parliament shall
simultaneously be requested to deliver an opinion on its extension to
the EEA.
                               Article 3
As an interim measure, the Community's position on the amendment of the
Annexes and of Protocol 47 of the EEA Agreement in respect of the
extension to the EEA of the acquis communautaire, adopted until
          1993, shall be decided by the Council, acting unanimously on
a proposal from the commission and after consulting the European
Parliament.
 ---pagebreak---                                 Article 4
 1. Where a Member State requests the Commission to apply safeguard
    measures as provided for in Articles 112 or 114 of the EEA
    Agreement, it shall provide the Commission, in support of its
    request, with the information needed to justify it.
    If the Commission decides not to apply safeguard measures, it shall
     inform the Council and the Member States accordingly within five
    working days of receipt of the request from the Member State.
    Any Member State may refer this decision of the Commission to the
    Council within 10 working days of its notification.
    If the council, acting by a qualified majority, indicates its
    intention to adopt a different decision, the Commission shall
    inform the EFTA States thereof forthwith and shall notify them of
    the opening of consultations within the Joint Committee as provided
    for in Article 113 of the Agreement.
    The Council, acting by a qualified majority, may take a different
    decision within 20 working days of the conclusion of the
    consultations with the EFTA States within the Joint Committee.
2.  The Commission shall be assisted by a committee (hereinafter
    referred to as the "Committee") composed of representatives of the
    Member states and chaired by a representative of the Commission.
    The committee shall meet when convened by its chairman. The latter
    shall communicate any appropriate information to the Member States
    at the earliest opportunity.
3.  Where the Commission, on its own initiative or at the request of a
    Member State, decides that the safeguard measures provided for in
    Articles 112 or 114 of the Agreement should be applied:
         it shall inform the Member States forthwith if acting on its
         own initiative or, if it is responding to a Member State's
         request, within five working days of receipt of that request,
         it shall consult the Committee,
         at the same time it shall inform the EFTA States and notify the
         Joint Committee of the opening of consultations as referred to
         in Article 113 of the EEA Agreement,
         at the same time it shall provide the Joint Committee with all
         the information necessary for these consultations.
4.  In any event, the consultations within the Joint Committee shall be
    deemed to be completed 30 days after the notification referred to
    in the fourth subparagraph of paragraph 1 and in paragraph 3.
    At the end of the consultations or on expiry of the period of 30
    days, if no other arrangement proves possible, the Commission,
    after consulting the Committee, may take appropriate measures to
    implement Articles 112 and 114 of the EEA Agreement.
 ---pagebreak---                                          \
5.  The decision referred to in paragraph 4 shall be notified forthwith
    to the Council, the Member States and the EFTA States; it shall
    also be notified to the Joint Committee.
    The decision shall be immediately applicable.
6.  Any Member state may refer the Commission decision referred to in
    paragraph 4 to the Council within 10 working days of receiving
    notification of the decision.
7.  if the Commission has not taken a decision within the meaning of
    the second subparagraph of paragraph 4 within 10 working days of
    the end of the consultations with the Joint Committee or, as the
    case may be, the end of the period of 30 days referred to in that
    paragraph, any Member State which has referred the matter to the
    Commission in accordance with paragraph 3 may refer it to the
    Council.
8.  in the cases referred to in paragraphs 6 and 7 the Council, acting
    by a qualified majority, may adopt a different decision within two
    months.
                                  Article 5
1.  where   exceptional    circumstances      arise within    the meaning     of
    Article 113(3) of the EEA Agreement, the Commission may take
    immediate   .safeguard   measures      in   the   cases   referred   to   in
    Articles 112 and 114 of the Agreement.
2.  If the Commission receives a request from a Member State, it shall
    take a decision thereon within five working days of receipt of the
    request.
    The Commission   shall notify    the Council     and the Member   States of
    its decision.
3.  Any Member State may refer the Commission's decision to the Council
    in accordance with the procedure provided for in Article 4 ( 6 ) .
    The procedure    provided    for   in   Article 4(7)    and  (8)   shall  be
    applicable.
    If the Commission has not taken a decision within the time limit
    mentioned in paragraph 2, any Member State which has referred the
    matter to the Commission may refer it to the Council in accordance
    with the procedures laid down in the first and second subparagraphs
    of this paragraph.
                                  Article 6
By way of derogation from Articles 4 and 5, if circumstances require
that measures be taken concerning agricultural products on the basis of
Article 112 of the EEA Agreement or on the basis of the Protocols or
Annexes covering these products, such measures shall be taken according
to procedures    provided    for by     the    rules   establishing    a  common
 ---pagebreak--- organization of the agricultural markets, or in specific provisions
adopted under Article 235 of the EEC Treaty and applicable to products
resulting from the processing of agricultural products, provided that
the conditions established under Article 113 of the EEA Agreement are
met.
                                Article 7
1.   To enable the principles contained in Articles 1(2)(e) and 53 to 60
     of the EEA Agreement to be put into effect, the Community rules
     giving effect to the principles set out in Articles 85 and 86 of
     the EEC Treaty and Council Regulation (EEC) No 4064/89 on the
     control of concentrations between undertakings shall apply mutatis
    mutandis. This shall also hold good for any relevant provisions
    which the Community might adopt in the future in the field of
    competition.
2.  To enable the principle contained in Article 8(4) of Protocol 23
    and Protocol 24 of the EEA Agreement to be put into effect, the
    Commission shall grant an authorization to the representatives of
    the EFTA Surveillance Authority to enable them to participate in
    the investigations referred to in that provision.
                                Article 8
1.   when individual cases falling under Articles 53 and 54 of the EEA
    Agreement are referred to the EFTA Surveillance Authority in
    accordance with Article 56 of the EEA Agreement, the Commission
    shall carry out those tasks entrusted to it by Protocol 23 in close
    and permanent liaison with the competent authorities of the Member
    States.
2.  In particular, it shall forward to the Member States, without
    delay, notifications, information and any other documents forwarded
    by the EFTA Surveillance Authority in accordance with Articles 2,
    3, 4, 6, 7 and 8 of Protocol 23.
3.  Should   the Member    states wish    to present    formal written
    observations   in individual    cases   dealt  with   by  the   EFTA
    Surveillance Authority, those observations shall be forwarded to
    the Commission, which will lend its good offices to find a commonly
    acceptable solution at Community level reflecting the unanimous
    opinion of the Member States which have forwarded observations.
    The Commission shall present the Community position, once it is
    defined, to the EFTA Surveillance Authority.
    If no such position has been established within 30 days of the date
    referred to in Article 2 of Protocol 23, the observations of the
    Member States and the Commission shall be forwarded together by the
    Commission to the EFTA Surveillance Authority.
4.  Notwithstanding the application of paragraph 3, Member States may
    participate in meetings of the EFTA Advisory Committee in
    accordance with Protocol 23.
 ---pagebreak---                                Article 9
it, in order to ensure that the EEA Agreement functions properly, the
EFTA States are consulted on draft measures which the Commission
proposes to take when exercising its executive powers, in spheres in
which the Banking Advisory Committee and the Insurance Committee are
competent, the chair and vice-chair of those Committees shall be
associated with such consultation.
                              Article 10
1.  Pursuant to Article 4(l)of Protocol 38 of the EEA Agreement, the
    Commission shall determine, on behalf of the Community, the share
    of each beneficiary region in the overall level of financial
    assistance from the Financial Mechanism provided for in Part VIII
    of the EEA Agreement. These shares shall be determined for a five-
    year period in the light of the beneficiary regions' relative level
    of economic development and population size and other relevant
    factors.
2.  The Commission shall communicate its decision to the Council and
    thereafter to the EFTA States and to the European Investment Bank
    at the earliest opportunity after the adoption by the Council of
    this Regulation.
3.  The annual commitments in individual regions shall take into
    account the rate at which projects are presented for financing, as
    well as the total annual commitments provided under Protocol 38 of
    the EEA Agreement. The Commission shall make the necessary
    arrangements with the EIB and the EFTA Financial Mechanism
    Committee to ensure that the annual commitments to individual
    regions do not prejudice the five-year shares as determined under
    paragraph 1 above.
                               Article 11
The Member States shall take any measures necessary to ensure that
obligations deriving from the EEA Agreement for the Community are
fulfilled.
                               Article 12
This Regulation shall enter     into  force  on  the  day  that the  EEA
Agreement enters into force.
This Regulation shall be binding       in   its  entirety   and directly
applicable in all Member states.
Done at Brussels,
                                           For the council
                                           The President
 ---pagebreak---                                                   10
                                                                      ISSN 0254-1475
                                                               COM(93) 466 final
                                                       DOCUMENTS
 EN                                                                              10
                                 Catalogue number : CB-CO-93-512-EN-C
                                                             ISBN 92-77-59652-X
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