CELEX: 32006R1934
Language: en
Date: 2006-12-21 00:00:00
Title: Council Regulation (EC) No 1934/2006 of 21 December 2006 establishing a financing instrument for cooperation with industrialised and other high-income countries and territories

30.12.2006      EN                Official Journal of the European Union                   L 405/41
                        COUNCIL REGULATION (EC) No 1934/2006
                                        of 21 December 2006
                      establishing a financing instrument for cooperation
             with industrialised and other high-income countries and territories
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty establishing the European Community, and in particular Article 181a
thereof,
Having regard to the proposal from the Commission,
Having regard to the opinion of the European Parliament,
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Whereas:
(1)      Over the past decade, the Community has consistently strengthened its bilateral relations
         with a broad range of industrialised and other high-income countries and territories across
         different regions of the world, primarily in North America, East Asia and Australasia, but
         also in South-East Asia and the Gulf region. Furthermore, these relations have developed
         to embrace a widening array of subjects and areas in the economic sphere and beyond.
(2)      It is in the Community's interest to further deepen its relations with industrialised countries
         and territories with which it often shares similar political, economic and institutional
         structures and values and which are important bilateral political and trading partners as
         well as players in multilateral fora and in global governance. This will be an important
         factor in strengthening the European Union's role and place in the world, consolidating
         multilateral institutions and in contributing to balance and in developing the world
         economy and the international system.
(3)      The European Union and industrialised and other high-income countries and territories
         have agreed to strengthen their relationship and to cooperate across the areas in which they
         have shared interests through a variety of bilateral instruments such as agreements,
         declarations, action plans and other similar documents.
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(4)      In accordance with the principles laid down in those bilateral instruments, the Community
         implements a cooperation policy aimed at creating an environment conducive to pursuing
         and developing its relations with those countries and territories. Cooperation activities will
         help to strengthen the European presence and visibility in these countries and encourage
         economic, commercial, academic, cultural and other exchanges and interaction between a
         diversified range of actors on each side.
(5)      The European Union is founded on the principles of democracy, the rule of law, good
         governance, respect for human rights and fundamental freedoms. Community action under
         this Regulation should contribute to the general objective of developing and consolidating
         these principles in partner countries and regions through dialogue and cooperation.
(6)      The promotion of diversified bilateral cooperation initiatives with industrialised and other
         high-income countries and territories within a single instrument will allow economies of
         scale, synergy effects, greater effectiveness and visibility for the Community action.
(7)      In order to achieve the objectives of this Regulation it is necessary to pursue a
         differentiated approach and to design cooperation with partner countries taking account of
         their economic, social and political contexts as well as of the Community's specific
         interests, strategies and priorities.
(8)      This Regulation makes it necessary to repeal Council Regulation (EC) No 382/2001 of
         26 February 2001 concerning the implementation of projects promoting cooperation and
         commercial relations between the European Union and the industrialised countries of
         North America, the Far East and Australasia1.
1
        OJ L 57, 27.2.2001, p. 10. Regulation as amended by Regulation (EC) No 1900/2005
        (OJ L 303, 22.11.2005, p. 22).
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(9)      Since the objectives of this Regulation, namely to promote enhanced cooperation between
         the Community and industrialised and other high-income countries and territories, cannot
         be sufficiently achieved by the Member States and can therefore, by reason of the scale of
         the action, be better achieved at Community level, the Community may adopt measures, in
         accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In
         accordance with the principle of proportionality, as set out in that Article, this Regulation
         does not go beyond what is necessary in order to achieve those objectives.
(10)     The measures necessary for the implementation of this Regulation should be adopted in
         accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the
         procedures for the exercise of implementing powers conferred on the Commission1,
HAS ADOPTED THIS REGULATION:
                                                 Article 1
                                                 Objective
1.       Community financing shall support economic, financial and technical cooperation and
         other forms of cooperation falling within its spheres of competence, with industrialised and
         other high-income countries and territories.
2.       The primary objective of cooperation with the countries and territories referred to in
         paragraph 1 shall be to provide a specific response to the need to strengthen links and to
         engage further with them on a bilateral, regional or multilateral basis in order to create a
         more favourable environment for the development of the relations of the Community with
         these countries and territories and promote dialogue while fostering Community's interests.
1
        OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision 2006/512/EC (OJ L 200,
        22.7.2006, p. 11).
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                                                 Article 2
                                                   Scope
1.       The cooperation with industrialised and other high-income countries and territories shall be
         aimed at engaging with partners which share similar political, economic and institutional
         structures and values to the Community and which are important bilateral partners and
         players in multilateral fora and in global governance. The cooperation also covers newly
         industrialised or high-income countries and territories with which the Community has a
         strategic interest in promoting links.
2.       For the purpose of this Regulation, industrialised and other high-income countries and
         territories shall comprise countries and territories listed in the Annex and are hereinafter
         referred to as "partner countries". However, in duly justified circumstances and in order to
         foster regional cooperation, the Commission may decide when adopting action
         programmes referred to in Article 6 that countries not listed in the Annex are eligible,
         where the project or programme to be implemented is of regional or cross-border nature.
         Provisions may be made for this in the multi-annual cooperation programmes referred to in
         Article 5. The Commission shall amend the list in the Annex in accordance with regular
         OECD/DAC reviews of its List of developing countries and inform the Council thereof.
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                                                  Article 3
                                             General principles
1.       The European Union is founded on the principles of liberty, democracy, respect for human
         rights and fundamental freedoms and the rule of law and seeks to promote commitment to
         these principles in partner countries through dialogue and cooperation.
2.       In the implementation of this Regulation a differentiated approach in designing
         cooperation with partner countries shall be pursued, where appropriate, to take account of
         their economic, social and political contexts as well as of the Community's specific
         interests, strategies and priorities.
3.       Measures financed under this Regulation shall cover areas of cooperation set out notably in
         the instruments, agreements, declarations and action plans between the Community and the
         partner countries as well as areas pertaining to the Community's specific interests.
4.       For measures financed under this Regulation, the Community shall aim to ensure
         coherence with other areas of its external action as well as other relevant Community
         policies. This shall be ensured by formulating policy, strategic planning and the
         programming and implementation of measures.
5.       Measures financed under this Regulation shall complement and bring added value to the
         efforts undertaken by Member States and Community public bodies, including in the area
         of commercial relations.
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                                                  Article 4
                                           Areas of cooperation
Community financing shall support cooperation actions in accordance with Article 1 and shall be
consistent with the overall purpose, scope, objectives and general principles of this Regulation.
Specific attention shall be paid to actions, which may include a regional dimension, in the following
areas of cooperation:
1)        the promotion of cooperation, partnerships and joint undertakings between economic,
          academic and scientific actors in the Community and partner countries;
2)       the stimulation of bilateral trade, investment flows and economic partnerships;
3)       the promotion of dialogues between political, economic and social actors and other
         non-governmental organisations in relevant sectors in the Community and partner
         countries;
4)       the promotion of people-to-people links, education and training programmes and
         intellectual exchanges and the enhancement of mutual understanding between cultures and
         civilisations;
5)       the promotion of cooperative projects in areas such as research, science and technology,
         energy, transport and environmental matters – including climate change, customs and
         financial issues and any other matter of mutual interest between the Community and the
         partner countries;
6)       the enhancement of awareness about and understanding of the European Union and of its
         visibility in partner countries;
 ---pagebreak--- L 405/48         EN                 Official Journal of the European Union                     30.12.2006
7)       support for specific initiatives, including research work, studies, pilot schemes or joint
         projects destined to respond in an effective and flexible manner to cooperation objectives
         arising from developments in the Community's bilateral relationship with the partner
         countries or aiming to provide impetus to the further deepening and broadening of bilateral
         relationships with them.
                                                  Article 5
                                 Programming and allocation of funds
1.       Actions to promote cooperation under this Regulation shall be carried out in the framework
         of multi-annual cooperation programmes covering cooperation with all or with a selection
         of the partner countries. The Commission shall draw-up the multi-annual cooperation
         programmes and specify their scope.
2.       Multi-annual cooperation programmes shall cover no more than the period of validity of
         this Regulation. They shall set out the Community's strategic interests and priorities, the
         general objectives and the expected results. They shall also set out the areas selected for
         financing by the Community and outline the indicative financial allocation of funds,
         overall, per priority area and per partner country or group of partner countries for the
         period concerned. Where appropriate, this may be given in the form of a range.
         Multi-annual cooperation programmes shall be reviewed at mid-term, or ad hoc if
         necessary.
3.       Multi-annual cooperation programmes and any reviews thereof shall be adopted by the
         Commission in accordance with the procedure set out in Article 15(2).
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                                                 Article 6
                                              Implementation
1.       The Commission shall adopt annual action programmes based on the multi-annual
         cooperation programmes referred to in Article 5.
2.       Annual action programmes shall specify, for all or for a selection of partner countries, the
         objectives pursued, the fields of intervention, the expected results, the management
         procedures and the total amount of financing planned. They shall contain a description of
         the operations to be financed, an indication of the amounts allocated for each operation and
         an indicative implementation timetable.
3.       Annual action programmes shall be adopted by the Commission in accordance with the
         procedure set out in Article 15(2). This procedure needs not be used for amendments to
         action programmes, such as those making technical adjustments, extending the
         implementation period, reassigning funds between the planned operations within the
         forecast budget, or increasing or reducing the size of the budget by less than 20 % of the
         initial budget, provided these amendments are consistent with the initial objectives set out
         in the action programmes.
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                                                  Article 7
                                                  Eligibility
The following entities shall be eligible for funding under this Regulation for the purposes of
implementing the action programmes referred to in Article 6:
(a)      the following entities and bodies in the Member States and in the partner countries:
         (i)    public or parastatal bodies, local authorities and consortia thereof;
         (ii)   companies, firms and other private organisations and businesses;
         (iii) non-governmental organisations; citizens' groups and sectoral organisations such as
                trade unions, organisations representing economic and social interests, consumer
                organisations, women's and youth organisations; teaching, training, cultural, media,
                research and scientific organisations; universities and other education institutions;
(b)      partner countries and their regions, institutions and decentralised bodies;
(c)      international organisations, including regional organisations, in so far as they contribute to
         the objectives of this Regulation;
(d)      natural persons of the Member States and of partner countries or other third countries in so
         far as they contribute to the objectives of this Regulation;
(e)      joint bodies set up by the partner countries and regions and the Community;
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(f)      Community institutions and bodies, insofar as they implement support measures specified
         in Article 9;
(g)      European Union agencies.
                                                  Article 8
                                             Types of financing
1.       Cooperation projects and programmes will be financed by the general budget of the
         European Union either in totality or in the form of co-financing with other sources as
         specified in Article 10.
2.       Financing for the implementation of action programmes may take in particular the
         following legal forms:
         (a)   grant agreements (including scholarships);
         (b)   procurement contracts;
         (c)   employment contracts;
         (d)   financing agreements.
3.       Where the implementation of action programmes takes the form of financing agreements
         with partner countries, it shall be established that Community funding shall not be used to
         finance taxes, customs duties and other fiscal charges in the partner countries.
 ---pagebreak--- L 405/52          EN                Official Journal of the European Union                     30.12.2006
                                                  Article 9
                                             Support measures
1.        Community financing may cover expenditure associated with the preparation, follow up,
          monitoring, audit and evaluation activities directly necessary for the implementation of this
          Regulation and the achievement of its objectives, and any other administrative or technical
          assistance expenditure that the Commission, including at its Delegations in the partner
          countries, may incur for the management of operations financed under this Regulation.
2.        These support measures are not necessarily covered by multi-annual programmes and may
          therefore be financed outside their scope.
3.        The Commission shall adopt support measures not covered by the multi-annual
          programmes and shall inform Member States thereof.
                                                  Article 10
                                                Co-financing
1.        Measures shall be eligible for co-financing inter alia with:
        (a)     Member States, their regional and local authorities, and in particular their public and
                parastatal agencies;
        (b)     partner countries, and in particular their public and parastatal agencies;
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        (c)      international organisations and regional organisations, including international and
                 regional financial institutions;
        (d)      companies, firms, other private organisations and businesses, and other non-state
                 actors;
        (e)      partner countries in receipt of funding, and other bodies eligible for funding under
                 Article 7.
2.        In the case of parallel co-financing, the project or programme will be split into a number of
          clearly identifiable operations which are each financed by the different partners providing
          co-financing in such a way that the end-use of the financing can always be identified.
3.        In the case of joint co-financing, the total cost of a project or programme will be shared
          between the partners providing the co-financing and the resources are pooled in such a way
          that it is not possible to identify the source of financing for any given activity undertaken
          as part of the project or programme.
4.        The Commission may receive and manage funds for co-financed projects on behalf of the
          bodies referred to in paragraph 1(a) (b) and (c) for the purpose of implementing joint
          measures. Such funds shall be treated as assigned revenue, in accordance with Article 18 of
          Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial
          Regulation applicable to the general budget of the European Communities1.
1
        OJ L 248, 16.9.2002, p. 1.
 ---pagebreak--- L 405/54         EN                 Official Journal of the European Union                     30.12.2006
                                                  Article 11
                                        Management procedures
1.       The measures financed under this Regulation shall be implemented in accordance with
         Regulation (EC, Euratom) No 1605/2002 and in particular Part Two, Title IV thereof.
2.       The Commission may entrust tasks of public authority, and in particular budget
         implementation tasks, to the bodies referred to in Article 54(2) (a) and (c) of
         Regulation (EC, Euratom) No 1605/2002. The bodies referred to in Article 54(2) (c) of that
         Regulation may be entrusted with tasks of public authority if they are of recognised
         international standing, comply with internationally recognised systems of management and
         control, and are supervised by a public authority.
                                                  Article 12
                             Protecting the Community's financial interests
1.       Any agreements resulting from this Regulation shall contain provisions ensuring the
         protection of the Community's financial interests, in particular with respect to
         irregularities, fraud, corruption and any other illegal activity, in accordance with Council
         Regulations (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the
         European Communities financial interests1 and (Euratom, EC) No 2185/96 of
         11 November 1996 concerning on-the-spot checks and inspections carried out by the
         Commission in order to protect the European Communities' financial interests against
         fraud and other irregularities2 and Regulation (EC) No 1073/1999 of the European
         Parliament and of the Council of 25 May 1999 concerning investigations conducted by the
         European Anti-Fraud Office (OLAF)3.
1
        OJ L 312, 23.12.1995, p. 1.
2
        OJ L 292, 15.11.1996, p. 2.
3
        OJ L 136, 31.5.1999, p. 1.
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2.       Agreements shall expressly entitle the Commission and the Court of Auditors to perform
         audits, including document audits or on-the-spot audits of any contractor or subcontractor
         who has received Community funds. They shall also expressly authorise the Commission
         to carry out on-the-spot checks and inspections in accordance with Regulation (Euratom,
         EC) No 2185/96.
3.       All contracts resulting from the implementation of cooperation shall ensure the rights of
         the Commission and the Court of Auditors under paragraph 2 during and after the
         performance of the contracts.
                                                 Article 13
                                                Evaluation
1.       The Commission shall regularly evaluate the actions and programmes financed under this
         Regulation, where appropriate by means of independent external evaluations, in order to
         ascertain whether the objectives have been met and enable it to formulate
         recommendations with a view to improving future operations. The results shall feed back
         into programme design and resource allocation.
2.       The Commission shall send its evaluation reports to the European Parliament and to the
         Committee referred to in Article 15 for information.
3.       The Commission shall associate relevant stakeholders, including non-state actors, in the
         evaluation phase of the Community cooperation provided for under this Regulation.
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                                                  Article 14
                                               Annual report
The Commission shall examine the progress made on implementing the measures taken under this
Regulation and shall submit to the European Parliament and the Council an annual report on the
implementation of this Regulation. The report shall set out the results of implementation of the
budget and present the actions and programmes financed, and as far as possible, set out the main
outcomes and impacts of the cooperation actions and programmes.
                                                  Article 15
                                                 Committee
1.       The Commission shall be assisted by a committee.
2.       Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall
         apply.
         The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at 30 days.
3.       The Committee shall adopt its rules of procedure.
                                                  Article 16
                                           Financial provisions
The financial reference amount for the implementation of this Regulation for the period from 2007
to 2013 shall be EUR 172 million. The annual appropriations shall be authorised by the budgetary
authority within the limits of the financial framework.
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                                                  Article 17
                                                    Repeal
1.       Regulation (EC) No 382/2001 shall be repealed as of the latest of the following dates:
          – 1 January 2007;
          – the date of entry into force of this Regulation.
2.       The repealed Regulation shall continue to apply for legal acts and commitments of budget
         years preceding the year 2007. Any reference to the repealed Regulation shall be deemed
         to be a reference to this Regulation.
                                                  Article 18
                                                   Review
Not later than 31 December 2010, the Commission shall submit to the European Parliament and the
Council a report evaluating the implementation of this Regulation in the first three years with, if
appropriate, a legislative proposal introducing the necessary modifications.
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                                                 Article 19
                                              Entry into force
This Regulation shall enter into force on the day following its publication in the Official Journal of
the European Union.
It shall apply from 1 January 2007 to 31 December 2013.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 21 December 2006.
                                                For the Council
                                                The President
                                                J. KORKEAOJA
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                                                ANNEX
                    List of countries and territories covered by this Regulation
(1)       Australia
(2)       Bahrain
(3)       Brunei
(4)       Canada
(5)       Chinese Taipei1
(6)       Hong-Kong
(7)       Japan
(8)       Republic of Korea
(9)       Kuwait
(10)      Macao
(11)      New Zealand
(12)      Oman
(13)      Qatar
(14)      Saudi Arabia
(15)      Singapore
(16)      United Arab Emirates
(17)      United States
1
        Although there are no diplomatic or political relations with Chinese Taipei, intensive
        contacts do take place and should be continued in the areas of economy, trade, science and
        technology, standards and norms and on a number of other subjects.