Legal provisions of COM(2007)339 - Community position within the Ministerial Council of the Energy Community on the 2007 budget of the Energy Community

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52007PC0339

Proposal for a Council Decision on a Community position within the Ministerial Council of the Energy Community on the 2007 budget of the Energy Community /* COM/2007/0339 final */


[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 14.6.2007

COM(2007) 339 final

Proposal for a

COUNCIL DECISION

on a Community position within the Ministerial Council of the Energy Community on the 2007 budget of the Energy Community

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 29 June 2007, the second meeting of the Ministerial Council of the Energy Community will take place.

The Ministerial Council of the Energy Community will have to adopt the budget which is necessary for a smooth operation and functioning of the Energy Community. Under Article 88 of the Energy Community Treaty, acts related to budgetary issues are to be prepared and submitted in the Energy Community by the European Commission. The budget of the Energy Community shall be financed by means of subscriptions by the parties of the Energy Community Treaty, one of which is the European Community.

In November 2006, during the Ministerial Council of the Energy Community, the Commission proposed a total budget of 2.45 Mio€ for 2007, out of which 2.4 Mio€ would be funded by the Commission. However, following a detailed analysis on the needs of the Energy Community, the budget proposed has been reduced to an amount of 2.032 Mio€.

As regards the financing of this budget, the following mechanism applies:

The Commission and the Ministry of Employment and Industry of the Republic of Austria are parties to a grant contract which currently finances the activities of the interim Energy Community Secretariat as an association according to Austrian law with a view to complete the full establishment of the Secretariat. The Energy Community itself is not member of this association. This grant contract financed through CARDS funds is due to expire on 30 June 2007. The Government of the Republic of Austria signed on 29 May 2007 a Headquarters Agreement with the Energy Community on the legal status of the Secretariat following which it shall be granted the legal status of an International Organisation as of 1st July 2007. Therefore, the year 2007 constitutes a transitional period for the Energy Community towards the full functioning of its Secretariat. The Energy Community itself can only receive directly the payments of the subscriptions of its members, once its Secretariat has obtained the legal status of an International Organisation as mentioned above according to Austrian law, i.e. as of the 1st July 2007.

Based on the mechanism explained above, the budget suggested hereafter consists of two components:

Component 1: 1-1-2007 until 30-6-2007: costs financed by EC and the Austrian Ministry through the existing grant contract. This part of the budget will be 100% financed by the two parties to the grant contract

Component 2: 1-7-2007 until 31-12-2007, costs financed in accordance with Article 73 of the Treaty; the relevant subscriptions due by the parties of the Energy Community Treaty shall apply, this means a share of 98.1% for the European Community

Since the budget has to be adopted during the Ministerial meeting on 29 June 2007, it is proposed that the Council adopts the attached proposal, which accepts the budget and entitles the Community to take a position on it.

Proposal for a

COUNCIL DECISION

on a Community position within the Ministerial Council of the Energy Community on the 2007 budget of the Energy Community

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 300 paragraph 2, second subparagraph,

Having regard to the proposal from the Commission,

Whereas:

(1) The European Community is a Party to the Energy Community Treaty and Articles 74 and 88 of the Energy Community Treaty provide that the Ministerial Council of the Energy Community shall adopt the budget of the Energy Community by a Procedural Act on a proposal from the Commission.

(2) The European Commission and the Ministry of Employment and Industry of the Republic of Austria are parties to a grant contract which currently finances the activities of the Energy Community Secretariat as an association according to Austrian law with a view to complete the full establishment of the Secretariat. The Energy Community itself is not member of this association. This grant contract financed through CARDS funds is due to expire on 30 June 2007. The Government of the Republic of Austria signed on 29 May 2007 a Headquarters Agreement with the Energy Community on the legal status of the Secretariat following which it shall be granted the legal status of an International Organisation as of 1st July 2007. Therefore, the year 2007 constitutes a transitional period for the Energy Community towards the full functioning of its Secretariat. The Energy Community itself can only receive directly the payments of the subscriptions of its members once its Secretariat has obtained the legal status of an International Organisation as mentioned above, i.e. as of 1st July 2007.

(3) Based on the mechanism explained above, the budget proposed hereafter for the year 2007 consists of two components:

- Component 1: 1-1-2007 until 30-6-2007: costs financed by the European Commission EC and the Ministry of Employment and Industry of the Republic of Austria through the existing grant contract. This part of the budget will be 100% financed by the two parties to the grant contract;

- Component 2: 1-7-2007 until 31-12-2007, costs financed in accordance with Article 73 of the Treaty; the relevant subscriptions due by the parties of the Energy Community Treaty shall apply, this means a share of 98.1% for the European Community.

HAS DECIDED AS FOLLOWS:

Article 1

The position to be adopted by the European Community within the Ministerial Council of the Energy Community with regard to the adoption of the budget of the Energy Community for 2007 is that defined in the attached draft Procedural Act (Annex I) on the adoption of the Budget of the Energy Community for 2007 set out in Annex II, Annex III and Annex IV.