title: Council Decision 2009/42/CFSP of 19 January 2009 on support for EU activities in order to promote among third countries the process leading towards an Arms Trade Treaty, in the framework of the European Security Strategy

text:
               22.1.2009

               EN

               Official Journal of the European Union

               L 17/39

      COUNCIL DECISION 2009/42/CFSP
   of 19 January 2009
   on support for EU activities in order to promote among third countries the process leading towards an Arms Trade Treaty, in the framework of the European Security Strategy
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on European Union, and in particular Article 13(3) and Article 23(1) thereof,
   Whereas:

               (1)

               On 12 December 2003 the European Council adopted a European Security Strategy which called for an international order based on effective multilateralism. The European Security Strategy acknowledges the United Nations Charter as the fundamental framework for international relations. Strengthening the United Nations, equipping it to fulfil its responsibilities and to act effectively, is a priority of the European Union.

               (2)

               On 6 December 2006 the United Nations General Assembly adopted Resolution 61/89 entitled ‘Towards an arms trade treaty: establishing common international standards for the import, export and transfer of conventional arms’.

               (3)

               In its conclusions of 11 December 2006, the Council welcomed the formal start of the process towards the elaboration of a legally binding international Arms Trade Treaty and noted with appreciation that a clear majority of UN Member States had supported the above referred Resolution, including all EU Member States. The Council reaffirmed that the EU and its Member States would play an active role in this process, and underlined the importance of cooperation in this process with other States and regional organisations.

               (4)

               The United Nations Secretary-General set up a Group of Governmental Experts (GGE) of 28 members to continue the consideration of a possible Arms Trade Treaty. The GGE met throughout 2008 and presented its conclusions during the ministerial week of the 63rd General Assembly. The Group concluded that further consideration was required and that efforts should be carried out, on a step-by-step basis, in an open and transparent manner, within the framework of the United Nations. The GGE encouraged those States in a position to do so, to render assistance to States in need, upon request.

               (5)

               In its conclusions of 10 December 2007, the Council underlined the importance of the UN-appointed GGE which it encouraged to move the process forward. The Council expressed its firm belief that a comprehensive, legally binding instrument, consistent with existing responsibilities of States under relevant international law and establishing common international standards for the import, export and transfer of conventional arms, would be a major contribution to tackling the undesirable and irresponsible proliferation of conventional arms.

               (6)

               In October 2008 the First Committee of the UN General Assembly adopted the resolution ‘Towards an arms trade treaty: establishing common international standards for the import, export and transfer of conventional arms’. All EU Member States co-sponsored the text.

               (7)

               The United Nations Institute for Disarmament Research (Unidir) supported this process by undertaking a two-part study consisting of two in-depth analyses of UN Member States’ views on the feasibility, scope and draft parameters of an Arms Trade Treaty. Unidir’s analyses contributed to advancing discussions on an Arms Trade Treaty through the identification of areas of consensus and divergence, as well as neglected areas. The analyses served as a useful input to the GGE. For these reasons, it is reasonable to entrust Unidir with the technical implementation of the activities under this Decision.

               (8)

               Based on the above Council conclusions, the EU should support this process, in order to reinforce the work that has been accomplished to date, by opening the debate to include States not members of the GGE, as well as to other actors such as civil society and industry, to develop the understanding of the issue and to contribute to broadening the recommendations made by the GGE,

         HAS DECIDED AS FOLLOWS:
   Article 1
   1.   For the purpose of promoting among third countries the process leading towards an Arms Trade Treaty, the European Union shall support activities in order to further the following objectives:

               (a)

               increase awareness by national and regional actors, United Nations Member States, civil society and industry, of the current international discussions around an Arms Trade Treaty;

               (b)

               reinforce the purpose of the United Nations Secretary-General’s Group of Governmental Experts (GGE) on an Arms Trade Treaty and strengthen the United Nations as the only forum that can deliver a truly universal instrument;

               (c)

               contribute to the better involvement of all United Nations Member States and regional organisations in the Arms Trade Treaty process;

               (d)

               encourage the exchange of views between States which are part of the GGE and those which are not part of it;

               (e)

               foster debate among United Nations Member States, particularly among those which are not part of the GGE;

               (f)

               promote an exchange of views among United Nations Member States, regional organisations, civil society and industry;

               (g)

               identify possible elements, the scope and the implications of an Arms Trade Treaty; and

               (h)

               share these debates and views with the whole international community.

         2.   For achieving the above objectives, the EU will undertake the following project:

               —

               organisation of a launching event, six regional seminars, a concluding seminar, including the dissemination of results, and a side-event in the margins of the 1st Committee (UNGA 64th session).

         A detailed description is set out in the Annex.
   Article 2
   1.   The Presidency, assisted by the Secretary-General of the Council/High Representative (SG/HR) for the CFSP, shall be responsible for implementing this Decision. The Commission shall be fully associated.
   2.   The technical implementation of the project referred to in Article 1(2) shall be carried out by the United Nations Institute for Disarmament Research (Unidir). It shall perform this task under the control of the SG/HR, assisting the Presidency. For this purpose, the SG/HR shall enter into the necessary arrangements with Unidir.
   3.   The Presidency, the SG/HR and the Commission shall keep each other regularly informed about the project, in accordance with their respective competences.
   Article 3
   1.   The financial reference amount for the implementation of the activities referred to in Article 1(2) shall be EUR 836 260, to be funded from the general budget of the European Union.
   2.   The expenditure financed by the amount stipulated in paragraph 1 shall be managed in accordance with the Community procedures and rules applicable to the general budget of the European Union.
   3.   The Commission shall supervise the proper management of the expenditure referred to in paragraph 2, which shall take the form of a grant. For this purpose, it shall conclude a financing agreement with Unidir. The financing agreement shall stipulate that Unidir is to ensure visibility of the EU contribution, appropriate to its size.
   4.   The Commission shall endeavour to conclude the financing agreement referred to in paragraph 3 as soon as possible after the taking of effect of this Decision. It shall inform the Council of any difficulties in that process and of the date of conclusion of the financing agreement.
   Article 4
   The Presidency, assisted by the SG/HR for the CFSP, shall report to the Council on the implementation of this Decision on the basis of regular reports following the organisation of each of the regional seminars and the final seminar prepared by United Nations Institute for Disarmament Research (Unidir). The Commission shall be fully associated and shall provide information on the financial aspects of the implementation of the project referred to in Article 1(2).
   Article 5
   This Decision shall take effect on the day of its adoption.
   It shall expire 15 months after the date of conclusion of the financing agreement referred to in Article 3(3) or 6 months after the date of its adoption if no financing agreement has been concluded within that period.
   Article 6
   This Decision shall be published in the Official Journal of the European Union.

      Done at Brussels, 19 January 2009.

            For the Council

            The President

         P. GANDALOVIČ

      ANNEX
      1.   Objective
      The overall objective of this Council Decision is to promote the participation of all stakeholders in the discussion on an Arms Trade Treaty (ATT), integrate national and regional contributions to the international process under way, and to identify the scope and implication of a possible treaty on the trade in arms.
      2.   Project
      2.1.   Purpose of the project
      The project will:

                  (a)

                  increase awareness by national and regional actors, United Nations Member States, civil society and industry, of the current international discussions around an ATT;

                  (b)

                  reinforce the purpose of the United Nations Secretary-General’s Group of Governmental Experts (GGE) on an Arms Trade Treaty and strengthen the United Nations as the only forum that can deliver a truly universal instrument;

                  (c)

                  contribute to the better involvement of all United Nations Member States and regional organisations in the ATT process;

                  (d)

                  encourage the exchange of views between States which are part of the GGE and those which are not part of it;

                  (e)

                  foster debate among United Nations Member States, particularly among those which are not part of the GGE;

                  (f)

                  promote an exchange of views among United Nations Member States, regional organisations, civil society and industry;

                  (g)

                  identify possible elements, the scope and the implications of an ATT; and

                  (h)

                  share these debates and views with the whole international community.

            2.2.   Results of the project
      The project will:

                  (a)

                  increase the awareness, knowledge and understanding of the ATT process;

                  (b)

                  involve new actors in the debate;

                  (c)

                  share national and regional concerns and ideas with the international discussions; and

                  (d)

                  feed ideas and suggestions into the content of an ATT, particularly on the scope and implications of an ATT.

            2.3.   Description of the project
      The project provides for the organisation of a launching event, six regional seminars, a final seminar to present overall results and a side-event in the margins of the 1st Committee (UNGA 64th session). The final seminar will be structured as follows: one-day OSCE countries regional seminar and one-day final seminar.
      2.3.1.   Launching event:
      A launching event will take place over one day to present the aims of the project and seek inputs from civil society, researchers and NGOs to secure support for the project.
      2.3.2.   Regional seminars:

                  1.

                  The regional seminars will take place over two days in a location to be determined in the target regions. The seminars will be structured in four parts to allow the following presentations and discussions to take place:

                              (a)

                              general overview of the ATT, background, actors, etc.;

                              (b)

                              specific presentation of the international process currently underway;

                              (c)

                              discussion of the scope and implication of a possible ATT; and

                              (d)

                              gathering of ideas for further action, recommendations and suggestions to feed into the ATT process.

                  2.

                  Participants in these regional seminars will include:

                              (a)

                              representatives from countries in the region;

                              (b)

                              representatives from regional organisations, including NGOs;

                              (c)

                              representatives from local/regional industry;

                              (d)

                              representatives from Unidir and UNODA (Conventional Arms Branch and Regional Branch, including regional centres if appropriate);

                              (e)

                              technical experts from EU Member States, including representatives from the industry;

                              (f)

                              representatives from partner organisations which may include among others the Stockholm International Peace Research Institute (Sweden) or the Foundation for Strategic Research (France).

                  3.

                  Depending on the size of the regions, between 30 and 40 participants are expected to participate in each seminar.

                  4.

                  A summary report of the discussions and recommendations will be produced after each seminar. This summary report will be made available online and on electronic storage devices.

                  5.

                  The regional seminars will take place according to the following groupings:

                              (a)

                              one seminar for Central, Northern and Western Africa;

                              (b)

                              one seminar for Eastern and Southern Africa;

                              (c)

                              one seminar for Latin America and the Caribbean;

                              (d)

                              one seminar for Asia and the Pacific;

                              (e)

                              one seminar for OSCE countries;

                              (f)

                              one seminar for the Middle East.

                  6.

                  Suggested tentative locations for the seminars are:

                              (a)

                              Dakar and Nairobi or Addis Abeba (for each of the two seminars in Africa);

                              (b)

                              Mexico or Rio de Janeiro (for Latin America and the Caribbean);

                              (c)

                              Phnom Penh or New Delhi (for Asia and the Pacific);

                              (d)

                              Amman or Cairo (for the Middle East);

                              (e)

                              Brussels or Vienna (for OSCE countries).

                  7.

                  Final locations will be determined to maximise resources and the available assistance at local level. The Presidency, assisted by the HR/SG, will be responsible for the final choice of location following the recommendations made by Unidir.

            2.3.3.   Concluding seminar:
      A concluding seminar will be organised after all six regional seminars have been hosted to present the discussions, recommendations and ideas on the ATT process to the international community. The final seminar will be structured as follows: one-day OSCE countries regional seminar and one-day final seminar.
      2.3.4.   Side-event at the 1st Committee (64th session of the UNGA)
      A side event will be organised in the margins of the 1st Committee (64th session of the UNGA) to present to stakeholders gathered in New York with the results of the project to date.
      2.3.5.   Outputs — Publication
      Each seminar will produce a short summary report of the discussions and of the recommendations and ideas put forward for an ATT. The seminar reports will be made available online and on electronic data storage devices for distribution.
      A final report compiling the summary reports of the six regional meetings will be produced and presented for comments at the concluding seminar, and made available online and on electronic data storage devices for distribution.
      3.   Duration
      The estimated implementation period of this project is 15 months.
      4.   Beneficiaries
      The beneficiaries of this project are:

                  (a)

                  all UN Member States, with particular emphasis on those not part of the GGE;

                  (b)

                  civil society and industry;

                  (c)

                  relevant regional organisations.

            5.   Implementing entity
      The Presidency, assisted by the SG/HR, is responsible for the implementation and supervision of this project. The Presidency will entrust the technical implementation to the United Nations Institute for Disarmament Research (Unidir).
      In implementing the project Unidir shall cooperate with UN-ODA, the Stockholm International Peace Research Institute (Sweden) or the Foundation for Strategic Research (France). Unidir shall, where appropriate, work with institutions such as regional organisations, NGOs and industry.
      Unidir will ensure the visibility of the EU contribution, appropriate to its size.
      6.   Financial reference amount to cover the costs of the project
      The total cost of the project is EUR 836 260.


title: Council Decision of 10 July 1975 on the conclusion of the Agreement between the European Economic Community and the Hashemite Kingdom of Jordan on the supply of common wheat flour as food aid

text:
No L 242/ 26                     Official Journal of the European Communities                        16 . 9 . 75
                                                          II
                                     (Acts whose publication is not obligatory)
                                                COUNCIL
                                             COUNCIL DECISION
                                                  of 10 July 1975
            on the conclusion of the Agreement between the European Economic Commu
            nity and the Hashemite Kingdom of Jordan on the supply of common wheat
                                                 flour as food aid
                                                    (75/ 552/ EEC)
            THE COUNCIL OF THE EUROPEAN COMMUNITIES,
             Having regard to the Treaty establishing the European Economic Community, and in
            particular Articles 113 , 114 and 228 thereof ;
             Having regard to the recommendation from the Commission ;
            Whereas the European Economic Community has concluded the 1971 food-aid conven
            tion ;
            Whereas the Hashemite Kingdom of Jordan has requested food aid ;
            Whereas in view of the cereal supply situation in that country the latter should be
             accorded , under the Community food-aid programme for 1974/75, and by way of gift,
             10 000 metric tons of common wheat in the form of 6 623 metric tons of common wheat
             flour,
             HAS DECIDED AS FOLLOWS :
                                                       Article 1
             The Agreement between the European Economic Community and the Hashemite
             Kingdom of Jordan on the supply of common wheat flour as food aid is hereby
             concluded on behalf of the Community.
             The text of the Agreement is annexed to this Decision .
                                                       Article 2
             The President of the Council is hereby authorized to designate the persons empowered to
             sign the Agreement and to confer on them the necessary powers to bind the Community .
             Done at Brussels, 10 July 1975 .
                                                                        For the Council
                                                                         The President
                                                                          E. COLOMBO


title: 2007/249/EC: Council Decision of 19 March 2007 amending Decision 2001/822/EC on the association of the overseas countries and territories with the European Community

text:
               26.4.2007

               EN

               Official Journal of the European Union

               L 109/33

      COUNCIL DECISION

   of 19 March 2007
   amending Decision 2001/822/EC on the association of the overseas countries and territories with the European Community
   (2007/249/EC)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community and in particular Article 187 thereof,
   Having regard to the proposal from the Commission,
   Whereas:

               (1)

               Council Decision 2001/822/EC of 27 November 2001 on the association of the overseas countries and territories with the European Community (the Overseas Association Decision) (1) establishes the legal framework for promoting the economic and social development of the overseas countries and territories (OCTs) and for enhancing economic relations between them and the Community. The Overseas Association Decision applies until 31 December 2011. To coincide with the duration of the 10th European Development Fund (2008 to 2013) (10th EDF) and the multiannual financial framework 2007 to 2013, it should be extended until 31 December 2013.

               (2)

               Annex II A of the Overseas Association Decision lays down the financial allocations for the period 2000 to 2007. In the light of the newly established 10th EDF, the amount for the period 2008 to 2013 should be allocated.

               (3)

               Provisions should be made for rules governing the transition from the ninth EDF to the 10th EDF as far as the OCTs are concerned. Those rules should be established in accordance with the general rules on the commitment of funds of the ninth EDF and of previous EDFs after 31 December 2007 set out in Article 1 of Decision 2005/446/EC of the Representatives of the Governments of the Member States meeting within the Council of 30 May 2005 setting the deadline for the commitment of the funds of the ninth EDF (2) and in Article 1(3) and (4) of the Internal Agreement between the Representatives of the Government of Member States meeting within the Council, on the financing of Community aid under the multiannual framework for the period 2008 to 2013 in accordance with the ACP-EC Partnership Agreement and the allocation of financial assistance for the OCTs to which Part Four of the EC Treaty applies (3) (Internal Agreement establishing the 10th EDF).

               (4)

               The Internal Agreement establishing the 10th EDF lays down an overall amount of EUR 286 million to be allocated to the OCTs. The apportionment of that amount between, on the one hand, the different instruments for development finance cooperation related to the EDF, and on the other hand, the criteria and elements for determining the beneficiary OCTs’ initial indicative allocations, should be laid down.

               (5)

               Regarding the apportionment between the different instruments for development finance cooperation related to the EDF, coordination should be ensured in particular between support to regional cooperation and integration and support at territorial level, to enhance the resilience of the OCTs towards the challenges that they are facing regardless of their GNP per capita or other elements used to determine the territorial allocations.

               (6)

               The financial assistance to the OCTs should be allocated on the basis of standard, objective and transparent criteria. Such criteria should include, in particular, the level of GNP of an OCT, the size of its population and continuity with previous EDFs. Special treatment should be reserved for the least developed OCTs referred to in Annex I B of the Overseas Association Decision, as well as for OCTs which, due to geographical isolation or other constraints, have more difficulties in engaging in regional cooperation and integration.

               (7)

               When reporting expenditure within the EDF to Member States and the Development Assistance Committee of the Organisation for Economic Cooperation and Development (OECD), the Commission should distinguish between Official Development Assistance (ODA) and non-ODA activities.

               (8)

               Special attention should be paid to strengthening the institutional capacities of the OCTs and to good governance, including in the financial, tax and judicial areas.

               (9)

               Special attention should also be paid to strengthening cooperation between OCTs, ACP States and the outermost regions referred to in Article 299(2) of the Treaty or other actors in the respective regions in which OCTs are situated.

               (10)

               The terms and conditions of financing in relation to the operations of the OCT Facility referred to in Annex II C of the Overseas Association Decision should be brought into line with the revision of the corresponding Articles in Annex II of the Partnership Agreement between, on the one hand the members of the African, Caribbean and Pacific Group of States, and on the other hand the European Community and its Member States, signed in Cotonou on 23 June 2000 (4) (the ACP-EC Partnership Agreement).

               (11)

               It is crucial to ensure continuity as regards the eligibility of OCTs for funding from the general thematic budget lines of the General Budget of the European Union, outside the EDF. The thematic Regulations referred to in Annex II E of the Overseas Association Decision have been replaced by Regulation (EC) No 1905/2006 of the European Parliament and of the Council of 18 December 2006 establishing a financing instrument for development cooperation (5) from 1 January 2007. Annex II E should therefore be amended in order to replace references to those Regulations with a reference to the new financing instrument. In order to ensure continuity, such amendment should apply as from 1 January 2007.

               (12)

               Taking into account the special relationship between the OCTs and the Member States to which they are linked, the possible participation of OCTs in horizontal Community programmes should be generalised so that the OCTs are allowed to participate in the programmes that are open to the Member Sates to which the OCTs are linked, subject to the rules and objectives of the programmes and the arrangements applicable to the Member States to which the OCTs are linked. In order to allow participation of the OCTs from the beginning of the new programming period, this amendment should be introduced from 1 January 2007.

               (13)

               A review covering all aspects of European Union spending and resources, including OCTs funding, should be conducted on the basis of a report by the Commission in 2008 to 2009.

               (14)

               The current technical amendments are without prejudice to subsequent revision of the Overseas Association Decision, in particular pursuant to Article 62 thereof,

         HAS DECIDED AS FOLLOWS:
   Article 1
   Council Decision 2001/822/EC is hereby amended as follows:

               1.

               in Article 23, the fourth subparagraph shall be replaced by the following:
               ‘The financial and accounting procedures applicable to development finance cooperation for the OCTs by virtue of the ninth EDF shall be those laid down in the ninth EDF Financial Regulation. The financial and accounting procedures applicable to development finance cooperation for the OCTs by virtue of the 10th EDF shall be those laid down in the 10th EDF Financial Regulation.’;

               2.

               the following paragraph shall be added to Article 24:
               ‘9.   For the implementation of the 10th EDF, the respective provisions of the Internal Agreement establishing the 10th EDF shall be applicable.’;

               3.

               in Article 25(1), the words ‘the period from 2000 to 2007’ shall be replaced by the words ‘the periods from 2000 to 2007 and from 2008 to 2013’;

               4.

               Article 31 shall be replaced by the following:
               ‘Article 31
               Technical assistance
               1.   On the initiative of or on behalf of the Commission, studies or technical assistance measures may be financed in order to ensure the preparation, monitoring, evaluation and supervision necessary for implementing this Decision and the overall evaluation of this Decision referred to in Article 1(1)(c) of Annex II A.
               Such studies or technical assistance measures shall be financed by the overall grant allocation.
               2.   On the initiative of the OCTs, studies or technical assistance measures may be financed in relation to the implementation of the activities contained in the SPD, subject to the Commission's opinion.
               In the framework of the 9th EDF, such studies or technical assistance measures shall be financed from the allocation of the OCTs concerned. In the framework of the 10th EDF, they shall be financed by the overall grant allocation.’;

               5.

               the following Article shall be inserted:
               ‘Article 33a
               1.   After 31 December 2007, or after the date of entry into force of the Internal Agreement establishing the 10th EDF if this date falls later, balances from the ninth EDF or from previous EDFs shall no longer be committed, with the exception of the balances and funds decommitted after this date of entry into force resulting from the system guaranteeing the stabilisation of export earnings from primary agricultural products (Stabex) under the EDFs prior to the ninth EDF and the remaining balances and reimbursements of the funds allocated under the ninth EDF to finance the resources of the Facility set out in Annex II C, excluding the related interest rate subsidies.
               2.   Funds decommitted from projects under the ninth EDF or from previous EDFs after 31 December 2007 shall no longer be committed, unless decided otherwise by the Council unanimously, on the basis of a proposal by the Commission, with the exception of the Stabex funds decommitted after this date of entry into force which shall be automatically transferred to the respective territorial indicative programmes financed in accordance with Article 3(1) of Annex II Aa and of the funds allocated under the ninth EDF to finance the resources of the Facility set out in Annex II C, excluding the related interest rate subsidies.’;

               6.

               Article 58 shall be replaced by the following:
               ‘Article 58
               Programmes open to the OCTs
               Individuals from an OCT and, where applicable, the relevant public and/or private bodies and institutions in an OCT, shall be eligible for Community programmes, subject to the rules and objectives of the programmes and the arrangements applicable to the Member State to which the OCT is linked. The programmes shall apply to OCT nationals within the framework of the quota for the Member State to which the OCT concerned is linked, if the programme concerned uses such a quota.
               The main programmes that are open to the OCTs are those listed in Annex II F, as well as any programme succeeding them.’;

               7.

               in Article 63, the year ‘2011’ shall be replaced by ‘2013’;

               8.

               in Article 1(1)(c) of Annex II A, the words ‘two years’ shall be replaced by ‘four years’;

               9.

               after Annex II A, a new Annex II Aa shall be inserted, the text of which appears in Annex I to this Decision;

               10.

               Annex II B shall be amended as follows:

                           (a)

                           Article 1 shall be replaced by the following:
                           ‘Article 1
                           1.   An amount of up to EUR 20 million as laid down in Article 5 of the Internal Agreement establishing the ninth EDF shall be provided by the EIB in the form of loans from its own resources in accordance with the conditions provided for by its statutes and this Annex.
                           2.   An amount of up to EUR 30 million as laid down in Article 3 of the Internal Agreement establishing the 10th EDF shall be provided by the EIB in the form of loans from its own resources in accordance with the conditions provided for by its statutes and this Annex.’;

                           (b)

                           in Article 2(2), point (c) shall be replaced by the following:

                                       ‘(c)

                                       during the period covered by the ninth EDF, the amount of the interest rate subsidy calculated in terms of its value at the times of disbursement of the loan shall be charged against the interest subsidy allocation laid down in Annex II A, Article 3(3)(d), and paid directly to the EIB;
                                       during the period covered by the 10th EDF, the amount of the interest rate subsidy calculated in terms of its value at the times of disbursement of the loan shall be charged against the interest subsidy allocation laid down in Annex II Aa, Article 1(1)(b), and paid directly to the EIB;
                                       Interest subsidies may be capitalised or used in the form of grants to support project-related technical assistance, particularly for financial institutions in the OCTs.’;

               11.

               Annex II C shall be replaced by the text appearing in Annex II to this Decision;

               12.

               Annex II E shall be replaced by the text appearing in Annex III to this Decision;

               13.

               Annex II F shall be replaced by the text appearing in Annex IV to this Decision.

         Article 2
   Taking of effect
   This Decision shall take effect on the day of its publication in the Official Journal of the European Union.
   However, Article 1, points (6), (12) and (13) shall apply from 1 January 2007.

      Done at Brussels, 19 March 2007.

            For the Council

            The President

         H. SEEHOFER

      (1)  OJ L 314, 30.11.2001, p. 1.

      (2)  OJ L 156, 18.6.2005, p. 19.

      (3)  OJ L 247, 9.9.2006, p. 32.

      (4)  OJ L 317, 15.12.2000, p. 3. Agreement as last amended by Decision No 1/2006 of the ACP-EC Council of Ministers (OJ L 247, 9.9.2006, p. 22).

      (5)  OJ L 378, 27.12.2006, p. 41.

      ANNEX I

            ‘ANNEX II Aa
            COMMUNITY FINANCIAL ASSISTANCE: 10th EDF
            Article 1
            Allocation between the various instruments
            1.   For the purposes of this Decision, for the six-year period from 1 January 2008 to 31 December 2013, the overall amount of Community financial assistance of EUR 286 million under the 10th EDF fixed by the Internal Agreement establishing the 10th EDF shall be allocated as follows:

                        (a)

                        EUR 250 million in the form of grants for programmable support for long-term development, humanitarian aid, emergency aid, refugee aid and additional support in the event of fluctuations in export earnings as well as for support for regional cooperation and integration;

                        (b)

                        EUR 30 million to finance the OCT Investment Facility referred to in Annex II C and of which a maximum amount of EUR 1,5 million is set aside to fund the interest subsidies for operations to be financed by the EIB from its own resources, in accordance with Annex II B, or under the OCT Investment Facility;

                        (c)

                        EUR 6 million to studies or technical assistance measures in accordance with Article 31 of this Decision.

                  2.   The funds of the 10th EDF may no longer be committed after 31 December 2013, unless the Council decides otherwise unanimously, on a proposal from the Commission.
            3.   Should the funds provided for in paragraph 1 be exhausted before this Decision expires, the Council shall take the appropriate measures.
            Article 2
            Administration of resources
            The EIB shall administer the loans made from its own resources referred to in Annex II B, as well as the operations financed under the OCT Investment Facility referred to in Annex II C. All other financial resources under this Decision shall be administered by the Commission.
            Article 3
            Allocation between the OCTs
            The amount of EUR 250 million mentioned in Article 1(1)(a) shall be allocated on the basis of the needs and performance of the OCTs in accordance with the following criteria:

                        1.

                        An amount A of EUR 195 million shall be allocated to the OCTs in particular to finance the initiatives referred to in the Single Programming Documents, including priority actions for social development and environmental protection, within the framework of the fight against poverty. Where appropriate, the Single Programming Documents shall pay particular attention to actions aimed at strengthening governance and the institutional capacities of the beneficiary OCTs and, where relevant, the likely timetable of the envisaged actions.
                        The allocation of amount A shall take into account the size of the population, the level of Gross National Product (GNP), the level and use of previous EDF allocations, constraints due to geographical isolation and structural and other obstacles of the least developed OCTs mentioned in Article 3 of this Decision. Any allocation shall be such as to allow its effective use. It should be decided in conformity with the principle of subsidiarity.
                        This amount shall, in principle, be allocated to the OCTs with a per capita GNP not exceeding the Community per capita GNP, according to the available statistical data.

                        2.

                        EUR 40 million shall be allocated to support regional cooperation and integration in accordance with Article 16 of this Decision, including the dialogue and partnership actions laid down in Article 7, regional disaster preparedness and alleviation initiatives and, in coordination with other Community financial instruments, cooperation between the OCTs and the most remote regions referred to in Article 299(2) of the Treaty.

                        3.

                        Paragraph 1 shall not apply to Greenland.

                        4.

                        A non-allocated reserve B of EUR 15 million shall be set aside to:

                                    (a)

                                    finance humanitarian, emergency and refugee aid for the OCTs and, if necessary, the additional support in the event of fluctuations in export earnings, in accordance with Annex II D;

                                    (b)

                                    make new allocations in accordance with the development of the needs and performance of the OCTs referred to under paragraph 1.

                              Performance shall be evaluated in an objective and transparent way, taking into account the use of the allocated resources, the effective implementation of the ongoing operations, the alleviation or reduction of poverty and the sustainable development measures adopted.

                        5.

                        In accordance with the paragraphs 1, 2, 3 and 4, the indicative amounts allocated under the 10th EDF shall be adopted by the Commission, in accordance with Article 24 of this Decision.

                        6.

                        The Commission, following a mid-term review, may decide on different allocation of any non-allocated funds mentioned in this Article. The procedures for this review and the decision on any new allocation shall be adopted in accordance with Article 24 of this Decision.’.

      ANNEX II

            ‘ANNEX II C
            COMMUNITY FINANCIAL ASSISTANCE: THE OCT INVESTMENT FACILITY
            Article 1
            Objective
            An OCT Investment Facility (the Facility) shall be set up to promote commercially viable enterprises, mainly in the private sector, but also those in the public sector supporting private sector development.
            The terms and conditions of financing in relation to the operations of the Facility and the loans from own resources of the EIB shall be as laid down in this Annex and Annex II B. For the implementation of the ninth EDF, Articles 29 and 30 of the ninth EDF Internal Agreement shall apply. For the implementation of the 10th EDF, the respective provisions of the Internal Agreement establishing the 10th EDF shall apply.
            These resources may be channelled to eligible enterprises, either directly or indirectly, through eligible investment funds and/or financial intermediaries.
            Article 2
            Resources of the Facility
            1.   The resources of the Facility may be used, inter alia, to:

                        (a)

                        provide risk capital in the form of:

                                    (i)

                                    equity participation in OCT enterprises, including financial institutions;

                                    (ii)

                                    quasi-capital assistance to OCT enterprises, including financial institutions;

                                    (iii)

                                    guarantees and other credit enhancements which may be used to cover political and other investment-related risks, both for foreign and local investors or lenders;

                        (b)

                        provide ordinary loans.

                  2.   Equity participation shall, in general, be for non-controlling minority holdings and shall be remunerated on the basis of the performance of the project concerned.
            3.   Quasi-capital assistance may consist of shareholders’ advances, convertible bonds, conditional, subordinated and participating loans or any other similar form of assistance. Such assistance may consist in particular of:

                        (a)

                        conditional loans, the servicing and/or the duration of which shall be linked to the fulfilment of certain conditions with regard to the performance of the project; in the specific case of conditional loans for pre-investment studies or other project-related technical assistance, servicing may be waived if the investment is not carried out;

                        (b)

                        participating loans, the servicing and/or the duration of which shall be linked to the financial return of the project;

                        (c)

                        subordinated loans, which shall be repaid only after other claims have been settled.

                  4.   The remuneration of each operation shall be specified when the loan is made.
            However:

                        (a)

                        in the case of conditional or participating loans, the remuneration shall normally comprise a fixed interest rate of not more than 3 % and a variable component related to the performance of the project;

                        (b)

                        in the case of subordinated loans, the interest rate shall be market related.

                  5.   Guarantees shall be priced so as to reflect the risks insured and the particular characteristics of the operation.
            6.   The interest rate of ordinary loans shall comprise a reference rate applied by the EIB for comparable loans with the same terms and conditions as to grace and repayment periods and a mark up determined by the EIB.
            7.   Ordinary loans may be extended on concessional terms and conditions in the following cases:

                        (a)

                        for infrastructure projects in the least developed OCTs, in post-conflict OCTs or in post-natural disaster OCTs that are prerequisites for private sector development. In such cases, the interest rate of the loan will be reduced by 3 %;

                        (b)

                        for projects which involve restructuring operations in the framework of privatisation or for projects with substantial and clearly demonstrable social or environmental benefits. In such cases, loans may be extended with an interest rate subsidy the amount and form of which will be decided with respect to the particular characteristics of the project. However, the interest rate subsidy shall not be higher than 3 %.

                  The final rate of loans falling under (a) or (b) shall, in any case, never be less than 50 % of the reference rate.
            8.   The funds to be provided for these concessional purposes will be made available from the Facility and shall not exceed 5 % of the overall amount allocated for investment financing by the Facility and by the EIB from its own resources.
            9.   Interest subsidies may be capitalised or may be used in the form of grants. Up to 10 % of the budget for interest rate subsidies may be used to support project-related technical assistance, particularly for financial institutions in the OCTs.
            Article 3
            Operations of the Facility
            1.   The Facility shall operate in all economic sectors and support investments of private and commercially run public sector entities, including revenue generating economic and technological infrastructure critical for the private sector. The Facility shall:

                        (a)

                        be managed as a revolving fund and aim at being financially sustainable. Its operations shall be on market-related terms and conditions and shall avoid creating distortions on local markets and displacing private sources of finances;

                        (b)

                        support the OCT financial sector and have a catalytic effect by encouraging the mobilisation of long-term local resources and attracting foreign private investors and lenders to projects in the OCTs;

                        (c)

                        bear part of the risk of the projects it funds, its financial sustainability being ensured through the portfolio as a whole and not from individual operations; and

                        (d)

                        seek to channel funds through OCT institutions and programmes that promote the development of small and medium-sized enterprises (SMEs).

                  2.   The EIB shall be remunerated for the cost incurred in managing the Facility. For the first two years after the entry into force of the second financial protocol, this remuneration shall be up to an amount of 2 % a year of the total initial endowment of the Facility. Thereafter, the remuneration of the EIB shall include a fixed component of 0,5 % a year of the initial endowment and a variable component of an amount of up to 1,5 % a year of the portfolio of the Facility that is invested in projects in OCTs. The remuneration shall be financed out of the Facility.
            3.   On expiry of this Decision, and in the absence of a specific decision by the Council, the cumulative net reflows to the Facility shall be carried over to the next OCT Financial Instrument.
            Article 4
            Conditions for foreign exchange rate risk
            In order to minimise the effects of exchange rate fluctuations, the problems of exchange rate risk shall be dealt with in the following way:

                        (a)

                        in the case of equity participation designed to strengthen an enterprise’s own funds, the exchange rate risk shall, as a general rule, be borne by the Facility;

                        (b)

                        in the case of risk capital financing for SMEs, the exchange rate risk shall as a general rule be shared, on the one hand, by the Community, and on the other hand, by the other parties involved. On average, the foreign exchange rate risk shall be shared equally;

                        (c)

                        where feasible and appropriate, particularly in countries characterised by macroeconomic and financial stability, the Facility will endeavour to extend loans in local OCT currencies, thus taking the foreign exchange risk.’

      ANNEX III

            ‘ANNEX II E
            COMMUNITY FINANCIAL ASSISTANCE: BUDGETARY AID FOR DEVELOPING COUNTRIES
            Without prejudice to future amendments to budgetary provisions, the OCTs shall benefit from the following actions adopted for developing countries within the general budget of the European Union:

                        1.

                        Thematic programmes covered by Regulation (EC) No 1905/2006 of the European Parliament and of the Council of 18 December 2006 establishing a financing Instrument for Development Cooperation (1) (DCI) and providing direct support for the European Community development and cooperation policy.

                        2.

                        Rehabilitation and reconstruction operations as covered by Regulation (EC) No 1717/2006 of the European Parliament and the Council of 15 November 2006 establishing an Instrument for Stability (2).

                        3.

                        Humanitarian aid as provided for by Council Regulation (EC) No 1257/96 of 20 June 1996 concerning humanitarian aid (3).

         (1)  OJ L 378, 27.12.2006, p. 41.

         (2)  OJ L 327, 24.11.2006, p. 1.

         (3)  OJ L 163, 2.7.1996, p. 1. Regulation as last amended by Regulation (EC) No 1882/2003 of the European Parliament and of the Council (OJ L 284, 31.10.2003, p. 1).’.

      ANNEX IV

            ‘ANNEX II F
            OTHER COMMUNITY ASSISTANCE: PARTICIPATION IN COMMUNITY PROGRAMMES
            In accordance with Article 58 of this Decision, the following programmes and any programmes succeeding them, among others, shall apply to OCT nationals, within the framework of the quota for the Member State to which the OCT concerned is linked if the programme concerned uses such a quota:

                        1.

                        Education and training programmes:

                                    —

                                    an action programme in the field of lifelong learning (2007 to 2013), established by Decision No 1720/2006/EC of the European Parliament and of the Council of 15 November 2006 establishing an action programme in the field of lifelong learning (1);

                                    —

                                    the “Youth in Action” programme (2007 to 2013), established by Decision No 1719/2006/EC of the European Parliament and of the Council of 15 November 2006 establishing the “Youth in Action” programme for the period 2007 to 2013 (2).

                        2.

                        The programmes of the “Competitiveness and Innovation Framework” programme (CIP) (2007 to 2013), established by Decision No 1639/2006/EC of the European Parliament and of the Council of 24 October 2006 establishing a “Competitiveness and Innovation Framework” programme (2007 to 2013) (3).

                        3.

                        The programmes of the seventh framework programme of the European Community, established by Decision No 1982/2006/EC of the European Parliament and of the Council of 18 December 2006 concerning the seventh framework programme of the European Community for research, technological development and demonstration activities (2007 to 2013) (4).

                        4.

                        Cultural and audiovisual programmes:

                                    —

                                    programme of support for the European audiovisual sector (MEDIA 2007), established by Decision No 1718/2006/EC of the European Parliament and of the Council of 15 November 2006 concerning the implementation of a programme of support for the European audiovisual sector (MEDIA 2007) (5);

                                    —

                                    Culture (2007 to 2013), established by Decision No 1903/2006/EC of the European Parliament and of the Council of 12 December 2006 establishing the “Culture” programme (2007 to 2013) (6).

                        5.

                        The HRTP Japan programme (human resources training programme in Japan) and topical missions, provided for by Council Decision 92/278/EEC of 18 May 1992 confirming the consolidation of the EC-Japan Centre for Industrial Cooperation (7).

         (1)  OJ L 327, 24.11.2006, p. 45.

         (2)  OJ L 327, 24.11.2006, p. 30.

         (3)  OJ L 310, 9.11.2006, p. 15.

         (4)  OJ L 412, 30.12.2006, p. 1.

         (5)  OJ L 327, 24.11.2006, p. 12.

         (6)  OJ L 378, 27.12.2006, p. 22.

         (7)  OJ L 144, 26.5.1992, p. 19.’.