COUNCIL REGULATION (EC) No 1267/1999
of 21 June 1999
establishing an Instrument for Structural Policies for Pre-accession
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 from the Commission(1),
Having regard to the opinion of the European Parliament(2),
Having regard to the opinion of the Economic and Social Committee(3),
Having regard to the opinion of the Committee of the Regions(4),
(1) Whereas the conclusions of the Luxembourg European Council of 12 and 13 December 1997 provide for an enhanced pre-accession strategy for the applicant countries of central and eastern Europe, and a specific pre-accession strategy for Cyprus;
(2) Whereas the conclusions of the Luxembourg European Council of 12 and 13 December 1997 provide that the assistance provided for in this Regulation is to be granted for the time being to the 10 applicant countries of central and eastern Europe;
(3) Whereas Council Regulation (EC) No 622/98 of 16 March 1998 on assistance to the applicant States in the framework of the pre-accession strategy, and in particular on the establishment of Accession Partnerships(5), provides that those partnerships are to comprise a single framework for the priority areas and all available resources for pre-accession assistance;
(4) Whereas the pre-accession strategy includes provision for an Instrument for Structural Policies for Pre-accession (ISPA), which will be directed towards aligning applicant countries on Community infrastructure standards and provide a financial contribution for environmental measures, and transport infrastructure measures;
(5) Whereas assistance from the Community under ISPA, together with assistance from the Community under Council Regulation (EEC) No 3906/89 of 18 December 1989 on economic aid to the Republic of Hungary and the Polish People's Republic(6), and assistance from the Community under Council Regulation (EC) No 1268/1999 of 21 June 1999 on Community support for pre-accession measures for agricultural and rural development in the applicant countries of central and eastern Europe in the pre-accession period(7) is to be coordinated within the framework of Council Regulation (EC) No 1266/1999 of 21 June 1999 on coordinating aid to the applicant countries in the framework of the pre-accession strategy and amending Regulation (EEC) No 3906/89(8) and to be subject to the conditionality provisions of Regulation (EC) No 622/98 and of the individual decisions on Accession Partnerships;
(6) Whereas an equal balance should be the aim between financing for transport infrastructure measures and financing for environmental measures, taking into account the specific situations in the beneficiary countries;
(7) Whereas the Community assistance under ISPA should facilitate the implementation by the applicant countries of the acquis communautaire in the field of the environment and contribute to sustainable development in these countries;
(8) Whereas Decision No 1692/96/EC of the European Parliament and of the Council of 23 July 1996 on Community guidelines for the development of the trans-European transport network(9) describes the criteria for projects of common interest, which should be used, where appropriate, for selecting the measures eligible under this Regulation;
(9) Whereas the Transport Infrastructure Needs Assessment (TINA) initiated by the Council should facilitate the process of selecting priority measures for developing a pan-European transport network during the pre-accession period;
(10) Whereas provision should be made for the Commission to make an indicative allocation of the total resources from the Community under ISPA available for commitment between the applicant countries in order to facilitate the preparation of measures;
(11) Whereas paragraph 17 of the conclusions of the Luxembourg European Council of 12 and 13 December 1997 provides that financial support to the countries involved in the enlargement process will be based, in the allocation of aid, on the principle of equal treatment, independently of time of accession, with particular attention being paid to countries with the greatest need;
(12) Whereas the rates of assistance provided from the Community under ISPA should be set in order to strengthen the leverage effect of resources, promote co-financing and the use of private sources of finance and to take account of the capacity of measures to generate substantial net revenue;
(13) Whereas, as regards Community assistance, maximum transparency must be ensured in the implementation of financial assistance, and stringent controls must be applied to the use of appropriations;
(14) Whereas, in the interest of the proper management of Community assistance granted under ISPA, provision should be made for effective methods of appraising, monitoring, evaluating and controlling operations, specifying the principle governing the evaluation, defining the nature of and the rules governing the monitoring, and laying down the action to be taken in response to irregularities or failures to comply with one of the conditions laid down when assistance under ISPA was granted;
(15) Whereas, during the transitional period from 1 January 1999 until 31 December 2001, each reference made to the euro should as a general rule also be read as a reference to the euro as a monetary unit as in Article 2, second sentence, of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro(10);
(16) Whereas for the purpose of the implementation of this Regulation the Commission should be assisted by a management committee;
(17) Whereas the implementation of the measures provided for by this Regulation will help to achieve the Community's aims; whereas the Treaty does not provide, for the adoption of this Regulation, powers other than those of Article 308,
HAS ADOPTED THIS REGULATION:
Article 1
Definition and objective
1. The Instrument for Structural Policies for Pre-accession, hereinafter referred to as "ISPA" is hereby established.
ISPA shall provide assistance to contribute to the preparation for accession to the European Union of the following applicant countries: Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia, hereinafter referred to as the "beneficiary countries", in the area of economic and social cohesion, concerning environment and transport policies in accordance with the provisions of this Regulation.
2. The Community assistance granted under ISPA shall contribute to the objectives laid down in the Accession Partnership for each beneficiary country and to corresponding national programmes for the improvement of the environment and of transport infrastructure networks.
Article 2
Eligible measures
1. The Community assistance financed under ISPA shall include projects, stages of a project which are technically and financially independent, groups of projects or project schemes in the field of environment or transport, hereinafter referred to collectively as "measures". A stage of a project may also cover preliminary, feasibility and technical studies needed for carrying out a project.
2. The Community shall provide assistance under ISPA in the light of the objectives mentioned in Article 1 for the following:
(a) environmental measures enabling the beneficiary countries to comply with the requirements of Community environmental law and with the objectives of the Accession Partnerships;
(b) transport infrastructure measures which promote sustainable mobility, and in particular those that constitute projects of common interest based on the criteria of Decision No 1692/96/EC and those which enable the beneficiary countries to comply with the objectives of the Accession Partnerships; this includes interconnection and interoperability of national networks as well as with the trans-European networks together with access to such networks.
Measures shall be of a sufficient scale to have a significant impact in the field of environmental protection or in the improvement of transport infrastructure networks. The total cost of each measure shall in principle not be less than EUR 5 million. In duly justified cases, taking into account the specific circumstances concerned, the total cost of a measure may be less than EUR 5 million.
3. A balance shall be struck between measures in the field of the environment and measures relating to transport infrastructure.
4. Assistance may also be granted for:
(a) preliminary studies related to eligible measures, including those necessary for their implementation, and
(b) technical support measures, including information and publicity actions, particularly:
(i) horizontal measures such as comparative studies to assess the impact of Community assistance;
(ii) measures and studies which contribute to the appraisal, monitoring, evaluation or control of projects and to strengthening and ensuring the coordination and consistency of projects with the Accession Partnerships, and
(iii) measures and studies to ensure effective project management and implementation and to make any necessary adjustments.
Article 3
Financial resources
Community assistance under ISPA shall be granted during the period from 2000 to 2006.
The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspectives.
Article 4
Indicative allocation
An indicative allocation between beneficiary countries of the total Community assistance under ISPA shall be made by the Commission, acting in accordance with the procedure laid down in Article 14, on the basis of the criteria of population, per capita GDP in purchasing power parities and surface area.
This allocation may be adjusted to take account of the performance in previous years of each of the beneficiary countries in implementing ISPA measures. Due account shall also be taken of the countries' respective deficiencies in environment and transport infrastructure.
Article 5
Compatibility with Community policies
1. Measures financed by the Community under ISPA shall comply with the provisions set out in the Europe Agreements, including the implementing rules for the application of the provisions on State aids, and shall contribute to the achievement of Community policies, particularly those concerning environmental protection and improvement, transport and trans-European networks.
2. The Commission shall ensure coordination and consistency between measures undertaken pursuant to this Regulation and measures undertaken with contributions from the Community budget, including contributions from Community initiatives for cross-border transnational and interregional cooperation, the operations of the European Investment Bank (EIB), including through its pre-accession facility as well as the other financial instruments of the Community and inform the Committee established under Article 14 hereof.
3. The Commission shall seek coordination and consistency between measures undertaken in the beneficiary countries pursuant to this Regulation and the operations of the European Bank for Reconstruction and Development (EBRD), the World Bank and other such financial institutions and inform the Committee established under Article 14 hereof.
Article 6
Forms and rate of assistance
1. Community assistance under ISPA may take the form of non-repayable direct assistance, repayable assistance or any other form of assistance.
Assistance repaid to the managing authority or to another public authority shall be reapplied for the same purpose.
2. The rate of Community assistance granted under ISPA may be up to 75 % of public or equivalent expenditure, including expenditure by bodies whose activities are undertaken within an administrative or legal framework by virtue of which they are regarded as equivalent to public bodies. The Commission may decide, in accordance with the procedure laid down in Article 14, to increase this rate to up to 85 %, in particular where it considers that a rate higher than 75 % is required for realising projects essential for achieving the general objectives of ISPA.
Save in the case of repayable assistance or when there is a substantial Community interest, the rate of assistance shall be reduced to take into account:
(a) the availability of co-financing;
(b) the measure's capacity to generate revenues, and
(c) an appropriate application of the polluter-pays principle.
3. Measures which generate revenues in accordance with paragraph 2(b) shall be those concerning:
(a) infrastructure the use of which involves fees borne by users;
(b) productive investments in the environment sector.
4. Preliminary studies and technical support measure, may be financed exceptionally at 100 % of the total cost.
Total expenditure carried out at the Commission's initiative or on behalf of the Commission pursuant to this paragraph may not exceed 2 % of the total allocation to ISPA.
Article 7
Appraisal and approval of measures
1. The Commission shall adopt decisions on the measures to be financed under ISPA in accordance with the procedure laid down in Article 14.
2. The beneficiary countries shall submit applications for assistance to the Commission. However, the Commission may grant assistance pursuant to Article 2(4) on its own initiative, where there is an overriding Community interest.
3. Applications shall contain:
(a) the information set out in Annex I;
(b) all relevant information proving that the measures comply with this Regulation and with the criteria set out in Annex II, and in particular that there are medium-term economic and social benefits commensurate with the resources deployed.
4. On receipt of an application for assistance and before approving a measure, the Commission shall carry out a thorough appraisal in order to assess the measure's compliance with the criteria set out in Annex II.
5. Commission decisions approving measures shall determine the amount of financial assistance and lay down a financing plan together with all the provisions and conditions necessary for the implementation of the measures.
6. The combined assistance under ISPA and other Community aid for a measure shall not exceed 90 % of the total expenditure relating to that measure.
7. The Commission shall adopt common rules for the eligibility of expenditure in accordance with the procedure laid down in Article 14.
Article 8
Commitments and payments
1. The Commission shall implement expenditure under ISPA in accordance with the Financial Regulation applicable to the general budget of the European Communities on the basis of the financing memorandum to be drawn up between the Commission and the beneficiary country.
However, annual budgetary commitments in respect of assistance granted to measures shall be carried out in one of the following two ways:
(a) commitments in respect of the measures referred to in Article 2(2) to be carried out over a period of two or more years shall, as a general rule and subject to point (b), be effected in annual instalments.
The commitments in respect of the first annual instalment shall be made when the financing memorandum is drawn up. Commitments in respect of subsequent annual instalments shall be based on the initial or revised financing plan for the measure and in principle be granted at the start of each financial year and at the latest by 1 April of the year in question according to forecast expenditure for this year;
(b) for measures with a duration of less than two years or for which the Community assistance does not exceed EUR 20 million a first commitment of up to 80 % of the assistance granted may take place when the financing memorandum is drawn up. The remainder will be committed subject to the state of the implementation of the measure.
2. Except in duly justified cases, assistance granted to a measure where substantial work has not begun within the specified contractual period shall be cancelled.
3. Payments of financial assistance for measures may take the form either of advances or of intermediate payments or payments of balances in respect of expenditure certified and actually paid.
The Commission shall adopt detailed rules on payments in accordance with the procedure laid down in Article 14.
4. The details of the payment mechanism for measures shall be laid down in the financing memorandum with each beneficiary country.
Article 9
Management and control
1. The Commission shall require the beneficiary countries:
(a) to establish as from 1 January 2000 and in any event not later than 1 January 2002, management and control systems which ensure:
(i) the proper implementation of the assistance granted under this Regulation in accordance with the principles of sound financial management,
(ii) the separation of the functions of management and control,
(iii) that expenditure declarations presented to the Commission are accurate and emanate from accounting systems based on supporting documents which are open to verification;
(b) to verify on a regular basis that the measures financed by the Community have been properly carried out;
(c) to prevent irregularities and take action against them;
(d) to recover any amounts lost as a result of irregularity or negligence.
2. Without prejudice to checks carried out by beneficiary countries, the Commission and the Court of Auditors may, through their own staff or duly authorised representatives, carry out on-the-spot technical or financial audits, including sample checks and final audits.
3. The detailed implementing provisions of the principles established in paragraphs 1 and 2 shall be contained in the financing memorandum, together with arrangements for cooperation and for coordination of programming and methodology of control between the Commission and the beneficiary country. The Commission shall inform the Committee established under Article 14 hereof.
4. The financing memorandum shall also contain provisions concerning the reduction, suspension and cancellation of assistance where the implementation of a measure does not justify either a part or the whole of the assistance allocated.
5. In implementing this Regulation, the Commission shall ensure that the principles of sound financial management are adhered to, with particular reference to the elements set out in Annex III.
Article 10
Use of the euro
1. The amounts in the applications for assistance, together with the relevant financing plan, shall be expressed in euro.
2. The amounts of assistance and the financing plans approved by the Commission shall be expressed in euro.
3. Declarations of expenditure in support of the corresponding payment applications shall be expressed in euro.
4. Payments of financial assistance by the Commission shall be made in euro to the authority designated by the beneficiary country to receive such payments.
Article 11
Monitoring and ex-post evaluation
The beneficiary countries and the Commission shall ensure that the implementation of measures under this Regulation is monitored and evaluated in accordance with the provisions in Annex IV.
Article 12
Annual report
The Commission shall present an annual report on Community assistance granted under ISPA to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. The annual report shall contain the information set out in Annex V.
The European Parliament shall deliver an opinion on the report within three months. The Commission shall report on the manner in which that opinion has been taken into account.
The Commission shall ensure that the beneficiary countries are regularly informed of the activities of ISPA.
Article 13
Information and publicity
1. The beneficiary countries responsible for implementing measures for which the Community has granted financial assistance under ISPA shall ensure that adequate publicity is given to the measure with a view to:
(a) making the general public aware of the role played by the Community in relation to the measures;
(b) making potential beneficiaries and professional organisations aware of the possibilities afforded by the measures.
Beneficiary countries shall ensure, in particular, that directly visible display panels are erected showing that the measures are being co-financed by the Community, together with the Community logo, and that representatives of the Community institutions are duly involved in the most important public activities connected with Community assistance granted under ISPA.
They shall inform the Commission annually of the initiatives taken under this paragraph.
2. The Commission shall adopt detailed rules on information and publicity acting in accordance with the procedure laid down in Article 14.
It shall inform the European Parliament thereof and shall publish them in the Official Journal of the European Communities.
Article 14
Committee
1. The Commission shall be assisted by a Management committee composed of the representatives of the Member States and chaired by the representative of the Commission, hereinafter referred to as "the Committee". The European Investment Bank shall appoint a non-voting representative.
2. The representative of the Commission shall submit to the Committee a draft of the measures to be taken. The Committee shall deliver its opinion on the draft, within a time limit which the Chairman may lay down, according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 205(2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the Committee shall be weighted in the manner set out in that Article. The Chairman shall not vote.
3. (a) The Commission shall adopt measures which shall apply immediately.
(b) However, if these measures are not in accordance with the opinion of the Committee, they shall be communicated by the Commission to the Council forthwith. In that event:
- the Commission shall defer application of the measures which it has decided for a period to be laid down in each act adopted by the Council but which may in no case exceed three months from the date of communication,
- the Council, acting by a qualified majority, may take a differnet decision within the time-limit referred to in the preceding indent.
4. The Committee may examine any question relating to the implementation of this Regulation which is put to it by its Chairman, including at the request of the representative of a Member State.
5. The Committee shall adopt its rules of procedure by a qualified majority.
Article 15
Reallocation of resources
On accession to the European Union, a country shall lose its entitlement to support under this Regulation. Resources made available as a result of an applicant country acceding to the European Union shall be reallocated to other applicant countries listed in Article 1(1). Reallocation shall be based on applicant countries' need and capacity for absorbing assistance and on the criteria laid down in Article 4.
The Council, acting by qualified majority on a proposal from the Commission, shall take a decision outlining the general approach for reallocation.
In the light of the decision referred to in the second paragraph by the Council, the Commission shall decide on the reallocation of available resources among the other beneficiaries in accordance with the procedure laid down in Article 14.
Article 16
Final and transitional provisions
The Council, acting on a proposal from the Commission, shall re-examine this Regulation by 31 December 2006. It shall act on the proposal in accordance with the procedure laid down in Article 308 of the Treaty.
Article 17
Entry into force
This Regulation shall enter into force on the day following its publication in the Official Journal of the European Communities.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Luxembourg, 21 June 1999.