CELEX: 51993PC0529
Language: en
Date: 1993-10-28
Title: Proposal for a COUNCIL REGULATION (EEC) extending Council Regulation (EEC) No 792/93 of 30 March 1993 establishing a cohesion financial instrument

COMMISSION OF THE EUROPEAN COMMUNITIES
                                           C0M(93) 529 f m a I
                                           Brussels, 28 October 1993
                            Proposal for a
                      COUNCIL REGULATION (EEC)
            extending Council Regulation (EEC) No 792/93 of
      30 March 1993 establishing a cohesion financial instrument
                    (presented by the Commission)
 ---pagebreak---                                                                z
                            Explanatory memorandum
By Regulation (EEC) No 792/93 of 30 March 1993 the Council set up the
cohesion financial instrument which, for a limited period, provides a
transition to the Cohesion Fund.
The purpose of this proposal is to extend the above mentioned Regulation
until 31 December 1994.
This proposal is based primarily on the need for continuity between the two
instruments. Such continuity is provided for in Article 11 of the Regulation
and in a statement annexed thereto to the effect that "continuity between
the temporary instrument tncl vhe final instrument is to be ensured if
necessary by extending the temporary instrument".
Moreover, the ratification of the Treaty on European Union has been less
rapid than initially envisaged, which makes it difficult to apply Article
130d under which the Council, acting unanimously, is to set up a Cohesion
Fund before 31 December 1993.
As far as the beneficiary Member States are concerned, they must have a
period in which to prepare their projects if continuity is to be ensured. As
the legislation stands at present, this preparatory phase is threatened by
the uncertainty regarding 1994.
Extension will also have the effect of doing away with the limitation of
commitments to the first quarter of 1994.
 ---pagebreak---                     Proposal for a Council Regulation (EEC)
                extending Council Regulation (EEC) No 792/93 of
          30 March 1993 establishing a cohesion financial instrument
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to Council Regulation (EEC) No 792/93 of 30 March 1993
establishing a cohesion financial instrument, and in particular Article 11
thereof,
Having regard to the proposal from the Commission,
Whereas continuity should be ensured between the cohesion financial
instrument and the Cohesion Fund,
Whereas such continuity can exist only if the beneficiary Member States are
enabled to prepare projects sufficiently in advance;
Whereas, in accordance with the conclusions of the Edinburgh European
Council and Article 8(3) of Regulation (EEC) No 793/92, projects submitted
must be of a sufficient scale to have a significant impact in the fields of
environmental protection or in the improvement of trans-European transport
infrastructure networks;
Whereas the Member States concerned should be enabled to fulfil this
object ive,
HAS ADOPTED THIS REGULATION:
                                   Art icle 1
In Article 11 of Regulation (EEC) No 792/93 the date of 1 April 1994 is
replaced by the date of 31 December 1994.
                                   Art icle 2
This Regulation shall enter into force on the third day following its
publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable ;
a I I Member States,
Done at Brussels,
                                                  For the CounciI
                                                 The President
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                           FINANCIAL STATEMENT
                    SECTION 1: FINANCIAL IMPLICATIONS
1. Title of operation
   Cohesion Fund
2. Budget heading involved
   B2.300
3. Legal basis
   Council Regulation (EEC) No 792/93 of 30 March 1993 establishing a
   cohesion    financial   instrument, and    in particular Article 11
   thereof.
4. Description of operation
   4.1 Specific objectives of operation
       To extend the above-mentioned Regulation until 31 December 1994
       with a view to ensuring the continuity of financing.
   4.2 Durât ion
       1994
   4.3 Target population
       Greece, Spain, Ireland and Portugal.
5. Classification of expenditure
   5.1 Non-compuIsor y
   5.2 Differentiated appropriations
   5.3 Not applicab le
6. Type of expenditure
   Subsidy for joint financing of projets with other sources in the
   public and/or private sector
7. Financial impact
   7.1 Method of calculating total cost of operation
       The financial resources of the cohesion financial instrument
       are the same as those provided for the Cohesion Fund in the
       financial perspective
       The 1994 PDB provides for ECU 1 853 million at 1992 prices.
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8.  What ant i-fraud     measures   are  planned   in   the  proposal   for the
    operation?
9. Elements of cost-effectiveness analysis
    9•1 Oblect ives
          The objective of the cohesion financial            instrument is to
          contribute funding to projects concerning the environment and
          trans-European networks in the area of transport infrastructure
          in the Member States whose per capita GDP is less than 90% of
          the Community average, measured on the basis of purchasing
         power parity, i.e. Spain, Greece, Ireland and Portugal. Each
         of these Member States has presented a convergence programme
          designed to prevent an excessive public deficit.
    9.2.      Grounds for the operation
         Article 130d of the Treaty on European Union provides for the
         Council to set up a Cohesion Fund to provide a financial
         contribution to projects in the fields of environment and
         trans-European transport networks.
          In accordance with the conclusions of the European Council's
         meeting in Edinburgh on 11 and 12 December 1992, the Commission
         presented     a draft     Regulation   on    a    temporary   cohesion
          instrument. On 30 March 1993 the Council adopted the Regulation
         establishing the cohesion financial instrument, which entered
          into force on 1 April 1993.
         During the negotiations on the above-mentioned Regulation it
         was declared that continuity between the temporary instrument
         and the definitive instrument would be ensured, if necessary,
         by extending the temporary instrument for a limited period.
         Article 11 of the Regulation of 30 March 1993 provides for this
         extension possibility.
          In point 6 of the explanatory memorandum in document C0M(92)
         599 final of 23 December 1992 the Commission stated that th?
         cohesion    financial    instrument   should    be reviewed before
         31 December 1993 in the light of the progress on ratification
         of the Maastricht Treaty.
    9.3.      Monitoring and évaluat ion of t he ope r a tIon
    1.   The Commission carr-es out a systematic as-oscment of the
         projects in collaboration with the beneficiary Member States.
         The Commission cooperates with I he EiB In ''hit ~-: ^cssm-o^t #hcn
         appropriate. As soon as the aid application «:.., ?eceiv:.)d, s. he
         Ccmiuscsion    «riustes the prrjects preror-ïef' by ^ e fSmbe"
         Stat-Lî witr. reference to the followina t,r i -r.r U :
 ---pagebreak---                                                                      €
        their medium-term economic and social benefits, which
        should be proportionate to the resources mobilized; this
        assessment is based on a cost-benefit analysis drawn up by
        the Member States-,
        the contribution which the projects can make to the
         implementation of the Community's policies in the fields of
        environment and trans-European networks;
        the establishment of an        appropriate   balance   between
        environment and transport.
   The Commission verifies the expected impact of the project on
   the basis of a cost-benefit analysis.
   The beneficiary Member States concerned provide all the
   necessary information, including the results of feasibility
   studies and ex-ante assessment, so that the evaluation can be
   carried out as effectively as possible.
   The Commission also examines applications for assistance,
   particularly in order to ascertain that the administrative and
   financial mechanisms can ensure effective implementation.
2. For the purposes of the Regulation, the Member States concerned
   forward to the Commission a description of the management and
   control     arrangements   set   up   to  ensure    the   effective
    implementation of the projects.
   They must also inform the Commission of all cases of
    irregularities discovered or which are the subject of legal
   proceed ings.
3. The implementation of projects is monitored by means of:
        statements    presented   with  applications    for   payment,
        certifying that the project is progressing satisfactorily
        towards completion and that expenditure has been carried
        out in accordance with the details in the financing plan;
        reports drawn up in accordance with procedures agreed with
        the Member State, showing the progress of the projects
        financed    in relation to the physical        and   financial
        indicators specified in the Commission Decision approving
        the projects;
        Monitoring Committees set up by mutual     agreement   between
        the Commission and the Member State.
4. The balance, equal to 20% of the assistance granted to the
   project, is paid once the Member States have presented a report
   stating that the project has been completed in accordance with
   i ts object i ves.
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