Explanatory Memorandum to COM(2000)281-2 - European Agency for Reconstruction - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2000)281-2 - European Agency for Reconstruction. |
|---|---|
| source | COM(2000)281  |
| date | 10-05-2000 |
This Explanatory Memorandum covers two proposals for Regulations forwarded to the Council for adoption, namely:
- a proposal for a Regulation on assistance for Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia;
- a proposal for a Regulation on the European Agency for Reconstruction.
Proposal for a Regulation on assistance for Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia
1. A SINGLE LEGAL FRAMEWORK
In December 1999 the Commission adopted a Communication i on future assistance to the Western Balkans announcing the Commission's intention of proposing that the Council should adopt a new legal basis for assistance to the region i.
One of the aims of the proposal is to consolidate the regulatory framework for assistance to the region. At present, assistance to some of its countries is provided under the Obnova Regulation, others receive assistance under the Phare Regulation, and some under both.
The fact that there are two separate legal bases for Phare and Obnova, each with their own, different administrative and management procedures, has caused endless operational problems, a fact to which Parliament and the Court of Auditors rightly draw attention. Also, the Phare programme has been redirected to serve the new priorities of enlargement and is therefore no longer suited to providing assistance to the Western Balkans.
This proposal represents a single legal framework for providing assistance to the five countries in question and repeals Regulation (EC) No 1628/96 (Obnova) and the provisions in the Annex to Regulation (EEC) No 3906/89 (Phare) applicable to these countries.
The assistance given by the Community in other fields and under other Regulations will complement and must dovetail with the assistance provided under this Regulation. This applies in particular to the following types of aid, which will not be covered by the new Regulation: humanitarian assistance, some actions in favor of democracy under Regulation (EC) No 976/99 of 29 April 1999 and exceptional macro financial assitance.
2. MAIN POINTS OF THE PROPOSAL
- Main objectives
"The Stabilisation and Association Process, which offers each country in the region a 'road to Europe' is the centrepiece of EU policy in the Balkans. The process, which leads to formal contractual relations with the EU through a Stabilisation and Association Agreement, includes economic and financial assistance and cooperation, political dialogue, improved trade including the establishment of a free trade area, approximation of EU legislation and practices, and cooperation in areas such as justice and home affairs" i.
The European Council which met in Lisbon on 23 and 24 March 2000 confirmed that its overall objective remained the fullest possible integration of the countries of the region into the political and economic mainstream of Europe and that the Stabilisation and Association Process was the centrepiece of its policy in the Balkans.
Under the new Regulation, the main objective of any assistance will be to support participation by the receiving countries in the Stabilisation and Association Process and close regional cooperation.
In the course of the Process the countries will have to redirect their political, economic and institutional development to align themselves on European Union values and models of democracy, respect for human and minority rights, the rule of law and the market economy.
This means concentrating the assistance (in the form of investment and institution building) on building up and modernising institutions and administrations so as to strengthen democracy, the rule of law and respect for human and minority rights.
Another objective will be to provide the institutions and administrations concerned with the skills they need to embark on, and develop, economic and social policies based on market-economy oriented reforms.
The assistance may also be used to encourage alignment of the laws of the countries concerned on those of the European Community - an important factor in any rapprochement between these countries and the European Union.
Where there is still a need, reconstruction and assistance to returning refugees will remain priorities but such assistance cannot be dissociated from the economic and institutional development of the recipient countries.
- Programming
As a rule, the aid will be implemented under either national or multi-beneficiary programmes.
National programmes
Wherever possible, the beneficiaries will be involved in programming within a framework of dialogue and partnership.
The partnership will provide an opportunity to discuss reform programmes with the beneficiaries in priority sectors. The assistance is indissolubly linked to the reforms and will be programmed to accompany and support them.
- Multi-beneficiary programmes
In a number of fields, including customs cooperation, trade, justice and home affairs, with particular reference to cross-border criminal activity and crime prevention, programmes could be devised to involve countries of the region together in initiatives on a regional scale.
- Comitology
In accordance with Council Decision 1999/468/EC, the Commission will be assisted by a management committee. This is the same as the current arrangement for the Phare and Obnova programmes.
Under the Obnova programme, the management committee delivers an opinion on financing decisions worth more than EUR 5 million, the threshold set in 1998 when Regulation (EC) No 1628/96 was revised in order to speed up the response time. To speed up implementation still further, the new cut-off will be EUR 10 million.
This figure might be revised at a later date, for instance if the different external aid programmes were to be harmonised.
General operational guidelines for implementation of the regulation will be adopted in accordance with the committee procedure as well.
- Conditionality
As stated in Article 3 of the proposed Regulation, 'respect for the principles of democracy and the rule of law and for humane, minority rights and other fundamental freedoms is a ... precondition of eligibility for assistance'. In the event of failure to abide by these principles the Council, acting on a proposal from the Commission, may take appropriate steps.
Other - political - conditions, such as those set out in the Council conclusions of 29 April 1997 on certain types of assistance (e.g. commitments to introduce democratic and economic reforms), will also apply.
The level of compliance will be discussed with the authorities concerned and this dialogue will allow the EU to state its expectations, assess the authorities' commitment and encourage them to develop the measures intended to comply with the conditions. The fulfilment of the conditions will be evaluated and this evaluation will influence the assistance provided under the Regulation.
The element of conditionality is intended to act as an incentive in the context of a dialogue with the authorities in support of the objectives of the Stabilisation and Association Process, the aim being to foster integration.
Where a State does not fulfil the conditions referred to in Article 3 of the proposal, or where compliance with the political conditions for assistance (April 1999) falls short of a threshold regarded as the minimum for a State to be eligible, assistance may be granted direct to local or regional authorities or federal or other entities.
Proposal for a Regulation on the European Agency for Reconstruction
This Agency was established by Regulation (EC) No 2454/1999 of 15 November 1999 amending Regulation (EC) No 1628/96, which is the legal basis for implementing the assistance provided under the Obnova Regulation.
The proposal for a Regulation on assistance to Albania, Bosnia and Herzegovina, Croatia, the former Yugoslav Republic of Macedonia and the Federal Republic of Yugoslavia repeals Regulation (EC) No 1628/96.
The provisions on the creation and operation of the European Agency for Reconstruction should therefore be incorporated in a new Regulation, with a few minor amendments to adapt them to the new aid Regulation.