Explanatory Memorandum to COM(2000)510 - EC position within the Association Council on the participation of Hungary in the financial instrument of the EC for the environment (LIFE)

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The Helsinki European Council of December 1999 confirmed the enlargement process launched at its meeting of December 1997 in Luxembourg. The enhanced Pre-Accession Strategy defined in 1997 has been reiterated, which includes the participation of the 13 candidate States in Community programmes as an important part of this strategy.

With regard to the ten candidate countries of Central and Eastern Europe (CEECs), participation in Community programmes is provided in their respective Europe Agreements. Pursuant to the Europe Agreements, the conditions and modalities of these countries' participation are defined by the respective Association Councils.

The third phase of Life will shortly replace the second phase. The Regulation establishing the LIFE third phase provide that LIFE should be open to the participation of the CEECs (art 6) from 2000, but because of the delay incurred in adoption by the Parliament and the Council, such participation will only be feasible from 2001.

Hungary has already confirmed its willingness to participate in the new programmes as from 2001, and to pay its financial contribution partly from its national budget, and partly from its annual Phare allocation.

The main issues addressed in the proposed Decision of the Association Council are the following:

* projects and actions submitted by participants from Hungary shall be subject to the same conditions, rules and procedures pertaining to LIFE as are applied to Member States, regarding in particular the submission, assessment, and selection of applications, the responsibilities of the national authorities in the implementation, and the activities related to the monitoring of their participation in the programmes;

* Hungary will pay each year a contribution, as established in the Association Council decisions. This contribution will not be reimbursed to Hungary if, at the end of the year, the results fall short of the contribution paid;

* as provided in the conclusions of the meeting of the European Council in Luxembourg, Hungarian experts will be invited to attend the LIFE Committees as observers, for the points which concern them;

* the decision will apply for the duration of the programmes, starting from 1 January 2000, and will enter into force the day of its adoption.

The early adoption of Association Council decisions would allow Hungary to continue being actively involved in this internal Community instrument without any interruption, as part of reinforced pre-accession strategy. It is, therefore, of considerable political importance.

Accordingly, the Council is invited to adopt the annexed proposal for Decision concerning the Community position within the respective Association Council.