1999/732/EC: Council Decision of 8 November 1999 providing supplementary macro-financial assistance to Romania

COUNCIL DECISION
of 8 November 1999
providing supplementary macro-financial assistance to Romania
(1999/732/EC)
THE COUNCIL OF THE EUROPEAN UNION
,
Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof,
Having regard to the proposal of the Commission(1),
Having regard to the opinion of the European Parliament(2),
Whereas:
(1) The Commission has consulted the Economic and Financial Committee before submitting its proposal;
(2) Romania is undertaking fundamental economic reforms and is making substantial efforts to establish a well-functioning market economy with a view to increasing employment and living standards;
(3) Romania and the European Union have signed a Europe Agreement establishing a relationship of association(3);
(4) The European Council at its meeting in Luxembourg in December 1997 decided to launch an accession process comprising Romania along with the other Central and East European applicant countries and Cyprus;
(5) Romania reached an agreement with the International Monetary Fund (IMF) on a stand-by arrangement (SBA) in support of the authorities' adjustment and reform programme;
(6) The World Bank has approved a new Private Sector Adjustment Loan, which envisages substantial adjustment and investment financing in support of Romania's reform efforts in the enterprise and financial sectors;
(7) The authorities of Romania have requested financial assistance from the international financial institutions, the Community and other bilateral donors; over and above the estimated financing which could be provided by the IMF and the World Bank, an important residual financing gap remains to be covered during the programme period in order to strengthen the country's reserve position and support the policy objectives attached to the government's reform programme;
(8) A Community long-term loan to Romania is an appropriate measure to help ease the country's external financial constraints, supporting the balance of payments and strengthening the reserve positions and comforting the implementation of the necessary structural reforms;
(9) The Community loan should be managed by the Commission in accordance with the principles of sound financial management;
(10) The Treaty does not provide, for the adoption of this Decision, powers other than those of Article 308,