title: 2010/283/: Council Decision of 19 January 2010 on the existence of an excessive deficit in Belgium

text:
               21.5.2010

               EN

               Official Journal of the European Union

               L 125/34

         COUNCIL DECISION
   of 19 January 2010
   on the existence of an excessive deficit in Belgium
   (2010/283/EU)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union and, in particular, Article 126(6) in conjunction with Article 126(13) and Article 136 thereof,
   Having regard to the proposal from the Commission,
   Having regard to the observations made by Belgium,
   Whereas:

               (1)

               According to Article 126(1) of the Treaty on the Functioning of the European Union, Member States shall avoid excessive government deficits.

               (2)

               The Stability and Growth Pact is based on the objective of sound government finances as a means of strengthening the conditions for price stability and for strong sustainable growth conducive to employment creation.

               (3)

               The excessive deficit procedure (EDP) under Article 126 of the Treaty on the Functioning of the European Union, as clarified by Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure (1) (which is part of the Stability and Growth Pact), provides for a decision on the existence of an excessive deficit. Regulation (EC) No 1467/97 also establishes provisions for the implementation of Article 104 of the Treaty establishing the European Community, which has become Article 126 of the Treaty on the Functioning of the European Union. The Protocol on the excessive deficit procedure annexed to the Treaty on the Functioning of the European Union sets out further provisions relating to the implementation of the EDP. Council Regulation (EC) No 479/2009 (2) lays down detailed rules and definitions for the application of the provisions of that Protocol.

               (4)

               The 2005 reform of the Stability and Growth Pact sought to strengthen its effectiveness and economic underpinnings as well as to safeguard the sustainability of the public finances in the long run. It aimed at ensuring that, in particular, the economic and budgetary background was taken into account fully in all steps in the EDP. In this way, the Stability and Growth Pact provides the framework supporting government policies for a prompt return to sound budgetary positions taking account of the economic situation.

               (5)

               Article 104(5) of the Treaty establishing the European Community, which has become Article 126(5) of the Treaty on the Functioning of the European Union, required the Commission to address an opinion to the Council if the Commission considered that an excessive deficit in a Member State existed or might occur. Having taken into account its report in accordance with Article 104(3) of the Treaty establishing the European Community, which has become Article 126(3) of the Treaty on the Functioning of the European Union, and having regard to the opinion of the Economic and Financial Committee in accordance with Article 104(4) of the Treaty establishing the European Community, which has become Article 126(4) of the Treaty on the Functioning of the European Union, the Commission concluded that an excessive deficit existed in Belgium. The Commission therefore addressed such an opinion to the Council in respect of Belgium on 11 November 2009 (3).

               (6)

               Article 126(6) of the Treaty on the Functioning of the European Union states that the Council should consider any observations which the Member State concerned may wish to make before deciding, after an overall assessment, whether an excessive deficit exists. In the case of Belgium, this overall assessment leads to the conclusions set out in this Decision.

               (7)

               According to data notified by the Belgian authorities in October 2009, the general government deficit in Belgium is planned to reach 5,9 % of GDP in 2009, thus exceeding and not close to the 3 % of GDP reference value. The planned excess over the reference value can be qualified as exceptional within the meaning of the Treaty and the Stability and Growth Pact. In particular, it results, among other things, from a severe economic downturn in the sense of the Treaty and the Stability and Growth Pact. In the Commission services’ autumn 2009 forecast, GDP is projected to decrease by 2,9 % in 2009 and to expand by 0,6 % in 2010. Furthermore, also on the basis of the autumn 2009 forecast, the planned excess over the reference value cannot be considered temporary, since the deficit is expected to stabilise at 5,8 % of GDP in 2010 and 2011, taking into account the already sufficiently specified consolidation measures. The deficit criterion in the Treaty is not fulfilled.

               (8)

               General government gross debt has been continuously declining from 134 % of GDP in 1993 to 84 % of GDP in 2007. In 2008, the operations to stabilise the financial sector led to an increase in the debt-to-GDP ratio to almost 90 %. Hence, the ratio remained well above the 60 % reference value. According to data notified by the Belgian authorities in October 2009, the general government gross debt is planned to stand at 97,6 % of GDP in 2009. The Commission services’ autumn 2009 forecast projects the debt ratio to increase to around 97 % in 2009, 101 % in 2010 and 104 % in 2011. The debt ratio cannot be considered as diminishing sufficiently and approaching the reference value at a satisfactory pace within the meaning of the Treaty and the Stability and Growth Pact. The debt criterion in the Treaty is not fulfilled.

               (9)

               According to Article 2(4) of Regulation (EC) No 1467/97, ‘relevant factors’ can only be taken into account in the steps leading to the Council decision on the existence of an excessive deficit in accordance with Article 126(6) of the Treaty on the Functioning of the European Union if the double condition — that the deficit remains close to the reference value and that its excess over the reference value is temporary — is fully met. In the case of Belgium, this double condition is not met. Therefore, relevant factors are not taken into account in the steps leading to this Decision,

         HAS ADOPTED THIS DECISION:
   Article 1
   From an overall assessment it follows that an excessive deficit exists in Belgium.
   Article 2
   This Decision is addressed to the Kingdom of Belgium.

      Done at Brussels, 19 January 2010.

            For the Council

            The President

         E. SALGADO

      (1)  OJ L 209, 2.8.1997, p. 6.

      (2)  OJ L 145, 10.6.2009, p. 1.

      (3)  All EDP-related documents for Belgium can be found at the following website: http://ec.europa.eu/economy_finance/netstartsearch/pdfsearch/pdf.cfm?mode=_m2


title: 2005/196/EC: Council Decision of 21 February 2005 on the signing and provisional application of the agreement in the form of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products

text:
               11.3.2005

               EN

               Official Journal of the European Union

               L 65/25

         COUNCIL DECISION
   of 21 February 2005
   on the signing and provisional application of the agreement in the form of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products
   (2005/196/EC)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article 133 in conjunction with the first sentence of the first subparagraph of Article 300(2) thereof,
   Having regard to the proposal from the Commission,
   Whereas:

               (1)

               The Commission has negotiated on behalf of the Community an agreement in the form of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement on trade in textile products with Ukraine.

               (2)

               Subject to its possible conclusion at a later date, the Agreement should be signed on behalf of the Community.

               (3)

               It is appropriate to apply this Agreement on a provisional basis as from 1 January 2005 pending the completion of the relevant procedures for its conclusion, subject to reciprocity,

         HAS DECIDED AS FOLLOWS:
   Article 1
   Subject to a possible conclusion at a later date, the President of the Council is hereby authorised to designate the person(s) empowered to sign on behalf of the Community the Agreement in the form of an Exchange of Letters between the European Community and Ukraine concerning the extension and amendment of the Agreement between the European Community and Ukraine on trade in textile products.
   Article 2
   Subject to reciprocity, the Agreement in the form of an Exchange of Letters referred to in Article 1 shall be applied on a provisional basis as from 1 January 2005 pending the completion of the procedures for its conclusion.
   The text of the Agreement is attached to this Decision.
   Article 3
   The Commission may, in accordance with the procedure referred to in Article 17 of Council Regulation (EEC) No 3030/93, of 12 October 1993, on common rules for imports of certain textile products from third countries (1), adopt the measures foreseen in point 6 of the Exchange of Letters signed on 19 December 2000 (2), consisting of reinstating the quota-regime applicable during the year 2000 in case of non-application by Ukraine of the tariff rates described in paragraph 1.5 of the Exchange of Letters referred to in Article 1 of this Decision.

      Done at Brussels, 21 February 2005.

            For the Council

         J. ASSELBORN

            The President

      (1)  OJ L 275, 8.11.1993, p. 1. Regulation as last amended by Regulation (EC) No 2200/2004 (OJ L 374, 22.12.2004, p. 1).

      (2)  OJ L 16, 18.1.2001, p. 3.
   AGREEMENT IN THE FORM OF AN EXCHANGE OF LETTERS
   between the European Community and Ukraine, represented by the Government of Ukraine, concerning the extension and amendment of the Agreement between the European Economic Community and Ukraine on trade in textile products of 1993
   Sir,
   I have the honour to refer to the Agreement between the European Economic Community and Ukraine on trade in textile products of 1993, as last amended by the Agreement in the form of an Exchange of Letters signed on 19 December 2000 (hereafter referred to as the ‘Agreement’).

               1.

               According to Article 20(1) thereof, the Agreement is to apply only until 31 December 2004. The European Community proposes to extend the duration of the Agreement, subject to the following amendments and conditions:

                           1.1.

                           Annex I to the Agreement which lists the products referred to in Article 1 of the Agreement and contains the category and goods descriptions for textiles products, shall be replaced by Annex I to Council Regulation (EEC) No 3030/93 (1). Without prejudice to the general rules for the interpretation of the combined nomenclature, the description of goods is only indicative, since the products covered by each category are determined within that Annex by CN codes. Where there is an ‘ex’ symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

                           1.2.

                           The second sentence of Article 2(1) and Title III of Protocol A of the Agreement shall be repealed.

                           1.3.

                           The second sentence of Article 20(1) of the Agreement shall be replaced by the following:
                           ‘It shall apply until 31 December 2005.’

                           1.4.

                           The following sentence shall be added to Article 20(1):
                           ‘Thereafter, the application of all of the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 2006, unless either Party notifies the other at least six months before 31 December 2005 that it does not agree to this extension.’

                           1.5.

                           The tariff rates applied by Ukraine to exports of EC origin of products of HS chapters 50-63 shall not exceed the rates agreed in the Exchange of Letters signed on 19 December 2000.

               2.

               Should Ukraine become a Member of the World Trade Organisation (WTO) before the date of the expiry of the Agreement, the Agreements and rules of the WTO shall be applied from the date of Ukraine’s accession to the WTO.

               3.

               I should be obliged if you could kindly confirm your Government’s acceptance of the foregoing. Should this be the case, this letter, together with your letter of acceptance, will constitute an Agreement in the form of an Exchange of Letters which shall enter into force on the first day of the month following the day on which the Parties have notified each other that the internal legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 2005 on conditions of reciprocity.

         Please accept, Sir, the assurance of my highest consideration.
   Hecho en Bruselas, el
   V Bruselu dne
   Udfærdiget i Bruxelles, den
   Geschehen zu Brüssel am
   Brüssel,
   Έγινε στις Βρυξέλλες, στις
   Done at Brussels,
   Fait à Bruxelles, le
   Fatto a Bruxelles, addì
   Briselÿ,
   Priimta Briuselyje,
   Kelt Brüsszelben,
   Magÿmula fi Brussel,
   Gedaan te Brussel,
   Sporzÿdzono w Brukseli, dnia
   Feito em Bruxelas,
   V Bruseli
   V Bruslju,
   Tehty Brysselissä
   Utfärdat i Bryssel den
   Вчинено в м.

      Por la Comunidad Europea
      Za Evropské společenství
      For Det Europæiske Fællesskab
      Für die Europäische Gemeinschaft
      Euroopa Ühenduse nimel
      Για την Ευρωπαϊκή Κοινότητα
      For the European Community
      Pour la Communauté européenne
      Per la Comunità europea
      Eiropas Kopienas vārdā
      Europos bendrijos vardu
      az Európai Közösség részéről
      Għall-Komunità Ewropea
      Voor de Europese Gemeenschap
      W imieniu Wspólnoty Europejskiej
      Pela Comunidade Europeia
      Za Európske spoločenstvo
      za Evropsko skupnost
      Euroopan yhteisön puolesta
      På Europeiska gemenskapens vägnar
      За Європейське Спiвтовариство

   Sir,
   I have the honour to confirm the receipt of your letter of today’s date which reads as follows:

      ‘Sir,
      I have the honour to refer to the Agreement between the European Economic Community and Ukraine on trade in textile products of 1993, as last amended by the Agreement in the form of an Exchange of Letters signed on 19 December 2000 (hereafter referred to as the “Agreement”).

                  1.

                  According to Article 20(1) thereof, the Agreement is to apply only until 31 December 2004. The European Community proposes to extend the duration of the Agreement, subject to the following amendments and conditions:

                              1.1.

                              Annex I to the Agreement which lists the products referred to in Article 1 of the Agreement and contains the category and goods descriptions for textiles products, shall be replaced by Annex I to Council Regulation (EEC) No 3030/93 (2). Without prejudice to the general rules for the interpretation of the combined nomenclature, the description of goods is only indicative, since the products covered by each category are determined within that Annex by CN codes. Where there is an “ex” symbol in front of a CN code, the products covered in each category are determined by the scope of the CN code and by that of the corresponding description.

                              1.2.

                              The second sentence of Article 2(1) and Title III of Protocol A of the Agreement shall be repealed.

                              1.3.

                              The second sentence of Article 20(1) of the Agreement shall be replaced by the following:
                              “It shall apply until 31 December 2005.”

                              1.4.

                              The following sentence shall be added to Article 20(1):
                              “Thereafter, the application of all of the provisions of this Agreement shall be extended automatically for a period of one more year up to 31 December 2006, unless either Party notifies the other at least six months before 31 December 2005 that it does not agree to this extension.”

                              1.5.

                              The tariff rates applied by Ukraine to exports of EC origin of products of HS chapters 50-63 shall not exceed the rates agreed in the Exchange of Letters signed on 19 December 2000.

                  2.

                  Should Ukraine become a Member of the World Trade Organisation (WTO) before the date of the expiry of the Agreement, the Agreements and rules of the WTO shall be applied from the date of Ukraine’s accession to the WTO.

                  3.

                  I should be obliged if you could kindly confirm your Government’s acceptance of the foregoing. Should this be the case, this letter, together with your letter of acceptance, will constitute an Agreement in the form of an Exchange of Letters which shall enter into force on the first day of the month following the day on which the Parties have notified each other that the internal legal procedures necessary to this end have been completed. In the meantime, it shall be applied provisionally from 1 January 2005 on conditions of reciprocity.’

   I have the honour to confirm that the foregoing is acceptable to the Government of Ukraine and that your letter and this letter constitute an Agreement in accordance with your proposal.
   Please accept, Sir, the assurance of my highest consideration.
   Вчинено в м.
   Hecho en Bruselas, el
   V Bruselu dne
   Udfærdiget i Bruxelles, den
   Geschehen zu Brüssel am
   Brüssel,
   Έγινε στις Βρυξέλλες, στις
   Done at Brussels,
   Fait à Bruxelles, le
   Fatto a Bruxelles, addì
   Briselÿ,
   Priimta Briuselyje,
   Kelt Brüsszelben,
   Magÿmula fi Brussel,
   Gedaan te Brussel,
   Sporzÿdzono w Brukseli, dnia
   Feito em Bruxelas,
   V Bruseli
   V Bruslju,
   Tehty Brysselissä
   Utfärdat i Bryssel den

      За Уряд України
      Por el Gobierno de Ucrania
      Za vládu Ukrajiny
      For regeringen for Ukraine
      Für die Regierung der Ukraine
      Ukraina valitsuse nimel
      Για την Κυβέρνηση της Ουκρανίας
      For the Government of Ukraine
      Pour le gouvernement ukrainien
      Per il governo dell’Ucraina
      Ukrainas valdības vārdā
      Ukrainos Vyriausybės vardu
      Ukrajna kormánya részéről
      Għall-Gvern ta’ l-Ukrajna
      Voor de Regering van Oekraïne
      W imieniu Rządu Ukrainy
      Pelo Governo da Ucrânia
      Za vládu Ukrajiny
      Za Vlado Ukrajine
      Ukrainan hallituksen puolesta
      För Ukrainas regering

      (1)  OJ L 275, 8.11.1993, p. 1. Regulation as last amended by Regulation (EC) No 2200/2004 (OJ L 374, 22.12.2004, p. 1).

      (2)  OJ L 275, 8.11.1993, p. 1. Regulation as last amended by Regulation (EC) No 2200/2004 (OJ L 374, 22.12.2004, p. 1).


title: 2008/143/EC: Council Decision of 28 January 2008 concerning the conclusion of the Agreement on maritime transport between the European Community and its Member States, of the one part, and the Government of the People’s Republic of China, of the other part

text:
               21.2.2008

               EN

               Official Journal of the European Union

               L 46/23

         COUNCIL DECISION
   of 28 January 2008
   concerning the conclusion of the Agreement on maritime transport between the European Community and its Member States, of the one part, and the Government of the People’s Republic of China, of the other part
   (2008/143/EC)
   THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty establishing the European Community, and in particular Article 80(2) thereof in conjunction with the first sentence of the first subparagraph of Article 300(2) and the first subparagraph of Article 300(3) thereof,
   Having regard to the proposal from the Commission,
   Having regard to the Opinion of the European Parliament (1),
   Whereas:

               (1)

               On 12 February 1998 the Council authorised the Commission to open negotiations for an Agreement on maritime transport between the European Community and its Member States, of the one part, and the Government of the People’s Republic of China, of the other part (hereinafter the Agreement), and laid down negotiating directives for this purpose.

               (2)

               These negotiations have been successful and the Agreement was initialled by the Commission on 12 December 2001.

               (3)

               The Agreement was signed in Brussels on 6 December 2002, subject to its subsequent conclusion.

               (4)

               A Protocol amending the Agreement to take account of the accession of the Czech Republic, the Republic of Estonia, the Republic of Cyprus, the Republic of Latvia, the Republic of Lithuania, the Republic of Hungary, the Republic of Malta, the Republic of Poland, the Republic of Slovenia and the Slovak Republic to the European Union was signed in Beijing on 5 September 2005.

               (5)

               In accordance with Article 6(2) of the 2005 Act of Accession, Bulgaria and Romania are to accede to the Agreement by way of a protocol between the Council and the People’s Republic of China.

               (6)

               The necessary constitutional and institutional procedures have been completed and the Agreement should therefore be approved,

         HAS DECIDED AS FOLLOWS:
   Article 1
   The Agreement on maritime transport between the European Community and its Member States, of the one part, and the Government of the People’s Republic of China, of the other part, is hereby approved on behalf of the Community.
   The text of the Agreement (2) is attached to this Decision.
   Article 2
   The President of the Council shall, on behalf of the European Community and its Member States, give the notification provided for in Article 15(2) of the Agreement.

      Done at Brussels, 28 January 2008.

            For the Council

            The President

         D. RUPEL

      (1)  Opinion delivered on 2 September 2003 (OJ C 76 E, 25.3.2004, p. 102).

      (2)  See page 25 of this Official Journal.
    ---documentbreak---

               21.2.2008

               EN

               Official Journal of the European Union

               L 46/25

         AGREEMENT
   on maritime transport between the European Community and its Member States, of the one part, and the government of the People’s Republic of China, of the other part
   THE KINGDOM OF BELGIUM,
   THE KINGDOM OF DENMARK,
   THE FEDERAL REPUBLIC OF GERMANY,
   THE HELLENIC REPUBLIC,
   THE KINGDOM OF SPAIN,
   THE FRENCH REPUBLIC,
   IRELAND,
   THE ITALIAN REPUBLIC,
   THE GRAND DUCHY OF LUXEMBOURG,
   THE KINGDOM OF THE NETHERLANDS,
   THE REPUBLIC OF AUSTRIA,
   THE PORTUGUESE REPUBLIC,
   THE REPUBLIC OF FINLAND,
   THE KINGDOM OF SWEDEN,
   THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
   Parties to the Treaty establishing the European Community, hereinafter referred to as ‘Member States of the Community’, and
   THE EUROPEAN COMMUNITY,
   hereinafter referred to as ‘the Community’,
   of the one part, and
   THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA,
   hereinafter referred to as ‘China’,
   of the other part,
   TAKING INTO ACCOUNT the Trade and Economic Cooperation Agreement between the European Economic Community and the People’s Republic of China of May 1985;
   TAKING INTO ACCOUNT the importance of the maritime relations existing between the Community and its Member States and China;
   BELIEVING that cooperation in the international maritime field between the Parties will be beneficial for the development of the trade and economic relations between China and the Community and its Member States;
   WILLING to further strengthen and consolidate the relations, on the basis of equality and mutual benefit, in the field of international maritime transport;
   RECOGNISING the importance of maritime transport services and wishing to promote even further multimodal transport involving a sea leg in order to increase efficiencies in the transport chain;
   RECOGNISING the importance of further developing a flexible and market-oriented approach and the benefits to economic operators of both Parties of controlling and operating their own international cargo transport services in the context of an efficient international maritime transport system;
   TAKING INTO ACCOUNT the existing bilateral maritime agreements between the Member States of the Community and China;
   SUPPORTING multilateral negotiations on maritime transport services in the World Trade Organisation;
   THE KINGDOM OF BELGIUM:
   Isabelle DURANT
   Deputy Prime Minister and Minister for Mobility and Transport
   THE KINGDOM OF DENMARK:
   Bendt BENDTSEN
   Minister for Economic Affairs, Trade and Industry
   THE FEDERAL REPUBLIC OF GERMANY:
   Manfred STOLPE
   Federal Minister for Transport, Building and Housing
   Wilhelm SCHÖNFELDER
   Ambassador, Permanent Representative of the Federal Republic of Germany
   THE HELLENIC REPUBLIC:
   Georgios ANOMERITIS
   Minister for Mercantile Marine
   THE KINGDOM OF SPAIN:
   Francisco ÁLVAREZ-CASCOS FERNÁNDEZ
   Minister for Internal Development
   THE FRENCH REPUBLIC:
   Pierre SELLAL
   Ambassador, Permanent Representative of the French Republic
   IRELAND:
   Peter GUNNING
   Deputy Permanent Representative of Ireland
   THE ITALIAN REPUBLIC:
   Pietro LUNARDI
   Minister for Infrastructure and Transport
   THE GRAND DUCHY OF LUXEMBOURG:
   Henri GRETHEN
   Minister for Economic Affairs, Minister for Transport
   THE KINGDOM OF THE NETHERLANDS:
   Roelf Hendrik de BOER
   Minister for Transport, Communications and Public Works
   THE REPUBLIC OF AUSTRIA:
   Mathias REICHHOLD
   Federal Minister for Transport, Innovation and Technology
   THE PORTUGUESE REPUBLIC:
   Luís Francisco VALENTE DE OLIVEIRA
   Minister for Public Works, Transport and Housing
   THE REPUBLIC OF FINLAND:
   Kimmo SASI
   Minister for Transport and Communications
   THE KINGDOM OF SWEDEN:
   Ulrica MESSING
   Minister of Communications
   THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND:
   David JAMIESON
   Parliamentary Under-Secretary of State for Transport
   THE EUROPEAN COMMUNITY:
   Bendt BENDTSEN
   Minister for Economic Affairs, Trade and Industry of the Kingdom of Denmark
   President-in-Office of the Council of the European Union
   Loyola de PALACIO
   Vice-President of the Commission of the European Communities
   THE GOVERNMENT OF THE PEOPLE’S REPUBLIC OF CHINA:
   Chunxian ZHANG
   Minister for Communications of the People’s Republic of China
   HAVE AGREED AS FOLLOWS:
   Article 1
   Aim
   This Agreement is aimed at improving the conditions under which maritime cargo transport operations are carried out to and from China, to and from the Community, as well as to and from the Community and China on the one hand and third countries on the other, for the benefit of economic operators of the Parties. It is based on the principles of freedom to provide maritime transport services, free access to cargoes and cross trades, unrestricted access to, and non-discriminatory treatment in, the use of ports and auxiliary services as well as regarding commercial presence. It covers all aspects of door-to-door services.
   Article 2
   Scope
   1.   This Agreement applies to the international maritime cargo transport and logistic services, including multimodal operations involving a sea leg, between the ports of China and of the Member States of the Community as well as to the international maritime cargo transport between the ports of the Member States of the Community. It also applies to cross trades and to the movement of equipment such as empty containers, not being carried as cargo against payment, between ports of China or between ports of a Member State of the Community.
   If vessels of one Party sail from one port of the other Party to another or from one port of a Member State of the Community to another to load cargo for foreign countries or discharge cargo from abroad, it shall be regarded as a part of the international maritime transport.
   This Agreement shall not apply to domestic transport purely between the ports of China or between the ports of any particular Member State of the Community.
   2.   This Agreement shall not affect the application of the bilateral maritime agreements concluded between China and the Member States of the Community for issues falling outside the scope of this Agreement.
   3.   This Agreement shall not affect the right of vessels of third parties to engage in cargo and passenger transport between the ports of the Parties or between the ports of either Party and a third party.
   Article 3
   Definitions
   For the purpose of this Agreement:

               (a)

               ‘international maritime cargo transport and logistic services’ cover the supply of services of international maritime transport of cargo, and the related cargo handling, storage and warehousing services, customs clearance services, container station and depot services, port and inland located, shipping agency services and freight forwarding services;

               (b)

               ‘multimodal transport operations’ is the carriage of goods using more than one mode of transport including a sea-leg under a single document;

               (c)

               ‘shipping agency services’ means activities consisting in representing, within a given geographic area, as an agent, the business interests of one or more shipping lines or shipping companies, for the following purposes:

                           —

                           marketing and sales of maritime transport and related services, from quotation to invoicing, and issuance of bills of lading on behalf of the companies, contracting of the necessary related services, preparation of documentation, and provision of business information,

                           —

                           acting on behalf of the companies organising the call of the ship or taking over cargoes when required;

               (d)

               ‘freight forwarding services’ means the activity consisting of organising and monitoring shipment operations on behalf of shippers, through contracting related services, preparation of documentation and provision of business information;

               (e)

               ‘shipping company’ means a company which meets the following conditions:

                           (i)

                           being constituted in accordance with the public or private laws of China, or the Community or a Member State of the Community;

                           (ii)

                           having its registered office or central administration or principal place of business in China or the Community respectively;

                           (iii)

                           engaging in international shipping service with its owned or operated vessels.

                     Shipping companies established outside the Community or China and controlled by nationals of a Member State of the Community or of China respectively, shall also be beneficiaries of the provisions of this Agreement, if their vessels are registered in that Member State or in China in accordance with their legislation;

               (f)

               ‘subsidiary’ means a company owned by a shipping company and having legal personality;

               (g)

               ‘branch office’ means a place of business owned by a shipping company and not having legal personality;

               (h)

               ‘representative office’ means a representative office of a shipping company of one Party established in the other Party;

               (i)

               ‘vessel’ means any merchant ship registered in accordance with the laws of China, or the Community or its Member States in the vessel registration office of either Party under the national flag of that Party and engaged in international maritime transport, including vessels flying the flag of a third country but owned or operated by a shipping company of China or a Member State of the Community. However, this term does not include warships and any other non-commercial ships.

         Article 4
   Supply of services
   1.   Each Party shall continue to grant non discriminatory treatment to vessels flying the flag of the other Party or operated by nationals or companies of the other Party, as compared to the treatment accorded to its own vessels, with regard to access to ports, the use of infrastructure and auxiliary maritime services of those ports, as well as related fees and charges, customs formalities and assignment of berths and facilities for loading and unloading.
   2.   The Parties undertake to apply effectively the principle of unrestricted access to the international maritime market and traffic on a non-discriminatory and commercial basis.
   3.   In applying the principles of paragraphs 1 and 2, the Parties shall:

               (a)

               not introduce cargo sharing clauses in future agreements with third countries concerning maritime transport services and terminate such provisions in the case they exist in previous bilateral agreements within a reasonable period of time;

               (b)

               abolish, upon entry into force of this Agreement, all unilateral administrative, technical, or other measures, which could constitute an indirect restriction and have discriminatory effects on the free supply of services in international maritime transport;

               (c)

               abstain from implementing on entry into force of this Agreement administrative, technical or legislative measures which could have the effect of discriminating against nationals or companies of the other Party in the supply of services in international maritime transport.

         4.   One Party shall allow shipping companies of the other Party to have access to and use of, on a non-discriminatory basis and on agreed terms between the companies concerned, feeder services provided by shipping companies registered in the former Party for the international cargo between the ports of China or between the ports of a Member State of the Community.
   Article 5
   Commercial presence
   In respect of activities for the provision of international maritime cargo transport and logistic services, including door-to-door multimodal transport operations, each Party shall permit the shipping companies of the other Party, to establish wholly owned or jointly-invested subsidiaries, branch or representative offices and, as regards subsidiaries and branch offices to engage in economic activities, in accordance with its laws and regulations. Such activities include, but are not limited to:

               1.

               cargo soliciting and booking of space;

               2.

               making, confirming, handling and issuing of the bill of lading, including the commonly accepted through bill of lading in the international maritime transport; preparation of documentation concerning transport documents and customs documents;

               3.

               fixing, collecting and remitting freight and other charges incurred on the basis of the service contracts or tariff rates;

               4.

               negotiating and signing service contracts;

               5.

               signing contracts for trucking, railway transport, cargo dealing and other related auxiliary services;

               6.

               quoting and publishing tariff rates;

               7.

               engaging in marketing activities related to their service;

               8.

               owning the equipment necessary for the economic activities;

               9.

               provision of business information by any means, including computerised information systems and electronic data interchange, subject to any non-discriminatory restrictions concerning telecommunications;

               10.

               setting up joint ventures with any locally established shipping agency to engage in agency-related businesses, such as organising the call of the vessels or taking delivery of cargoes for shipment.

         Article 6
   Transparency
   1.   Each Party shall, after prior consultation and appropriate pre-notice, publish promptly all relevant measures of general application, which pertain to or affect the operation of this Agreement.
   2.   Where publication as referred to in paragraph 1 is not practicable, such information shall be made otherwise publicly available.
   3.   Each Party shall respond promptly to all requests by the other Party for specific information on any of its measures of general application within the meaning of paragraph 1.
   Article 7
   Domestic regulation
   1.   The Parties shall ensure that all measures of general application affecting trade in international maritime transport services are administered in a reasonable, objective and impartial manner.
   2.   In those cases where authorisation is required, the competent authorities of a Party shall, within a reasonable period of time after the submission of an application considered complete under domestic laws and regulations, inform the applicant of the decision concerning the application. At the request of the applicant, the competent authorities of a Party shall provide, without undue delay, information concerning the status of the application.
   3.   To ensure that measures relating to technical standards and licensing requirements and procedures do not constitute unnecessary barriers to trade, requirements shall be based on objective, non-discriminatory, pre-established and transparent criteria, such as the ability to supply the service; and in the case of licensing procedures, not in themselves be a restriction on or a barrier to the supply of the service.
   Article 8
   Key personnel
   The wholly-owned or jointly-invested subsidiaries, branch or representative offices of the shipping companies of one Party established in the other Party shall be entitled to employ key personnel, in accordance with the legislation in force in the host country, irrespective of their nationality. Each Party shall facilitate the acquisition of work permits and visas for foreign employees.
   Article 9
   Payments and capital movements
   1.   Revenues of nationals or companies of one Party derived from international maritime transport and multimodal operations in the other Party may be settled in freely convertible currencies.
   2.   The revenues and expenses of the economic activities of the subsidiaries and branch and representative offices of the shipping companies of a Party established in the other Party may be settled in the currency of the host country. The balance after the payment of the local fees by the abovementioned shipping companies, subsidiaries, branch or representative offices may be freely remitted abroad at the exchange rate of the bank on the date of remittance.
   Article 10
   Maritime cooperation
   The Parties shall, for the purpose of promoting the development of their maritime industry, encourage their competent authorities, shipping companies, ports, relevant research institutions, universities and colleges to cooperate, including, but not limited to, the following fields:

               1.

               exchange of views related to their activities in the framework of international maritime organisations;

               2.

               formulate and perfect the legislation relating to maritime transport and market administration;

               3.

               promote efficient transport service for international sea trade by the effective exploitation of the ports and fleets of the Parties;

               4.

               guarantee shipping safety and prevent marine pollution;

               5.

               promote maritime education and training, especially the training of seafarers;

               6.

               exchange personnel scientific information and technology;

               7.

               enhance their efforts to combat piracy and terrorism.

         Article 11
   Consultations and settlement of disputes
   1.   The Parties shall establish appropriate procedures to ensure the proper implementation of this Agreement.
   2.   Should any dispute between the Parties arise from the interpretation or application of this Agreement, their competent authorities shall seek to resolve the dispute through friendly consultation. In the event that no agreement is reached, it shall be settled through diplomatic channels.
   Article 12
   Amendment
   This Agreement may be amended by a written agreement between the Parties and the amendment will come into force in accordance with the procedures specified in Article 15(2).
   Article 13
   Territorial application
   This Agreement shall apply, on the one hand, to the territories in which the Treaty establishing the European Community is applied and under the conditions laid down in that Treaty and, on the other hand, to the territory of China.
   Article 14
   Authentic text
   This Agreement is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Chinese languages, each of these texts being equally authentic.
   Article 15
   Duration and entry into force
   1.   This Agreement is concluded for a period of five years. It shall be tacitly renewed on a yearly basis unless one of the Parties denounces it in writing six months before the date of expiry.
   2.   This Agreement will be approved by the Parties in accordance with their own procedures.
   This Agreement shall enter into force on the first day of the second month following the date on which the Parties notify each other that the procedures referred to in the first subparagraph have been completed.
   3.   If this Agreement is less favourable on certain issues than existing bilateral agreements between individual Member States of the Community and China, the more favourable provisions shall prevail without prejudice to Community obligations and taking into account the Treaty establishing the European Community. The provisions of this Agreement replace those of previous bilateral agreements concluded between Member States of the Community and China, if the latter provisions are either inconsistent with the former, save for the situation referred to in the preceding sentence, or identical to them. Provisions of existing bilateral agreements not covered by this Agreement shall continue to apply.

      EN FE DE LO CUAL, los plenipotenciarios abajo firmantes suscriben el presente Acuerdo.
      TIL BEKRÆFTELSE HERAF har undertegnede befuldmægtigede underskrevet denne aftale.
      ZU URKUND DESSEN haben die unterzeichneten Bevollmächtigten dieses Abkommen unterzeichnet.
      ΣΕ ΠΙΣΤΩΣΗ ΤΩΝ ΑΝΩΤΕΡΩ, οι υπογράφοντες πληρεξούσιοι έθεσαν την υπογραφή τους κάτω από την παρούσα συμφωνία.
      IN WITNESS WHEREOF the undersigned Plenipotentiaries have signed this Agreement.
      EN FOI DE QUOI, les plénipotentiaires soussignés ont apposé leur signature sur le présent accord.
      IN FEDE DI CHE i Plenipotenziari sottoscritti hanno apposto le loro firme in calce al presente accordo.
      TEN BLIJKE WAARVAN de, hiertoe naar behoren gemachtigde, ondergetekenden hun handtekening onder deze overeenkomst hebben gesteld.
      EM FÉ DO QUE, os abaixo-assinados apuseram as suas assinaturas no presente Acordo.
      TÄMÄN VAKUUDEKSI alla mainitut täysivaltaiset edustajat ovat allekirjoittaneet tämän sopimuksen.
      TILL BEVIS HÄRPÅ har undertecknade befullmäktigade undertecknat detta avtal.

      Hecho en Bruselas, el seis de diciembre del dos mil dos.
      Udfærdiget i Bruxelles den sjette december to tusind og to.
      Geschehen zu Brüssel am sechsten Dezember zweitausendzwei.
      'Εγινε στις Βρυξέλλες, στις έξι Δεκεμβρίου δύο χιλιάδες δύο.
      Done at Brussels on the sixth day of December in the year two thousand and two.
      Fait à Bruxelles, le six décembre deux mille deux.
      Fatto a Bruxelles, addì sei dicembre duemiladue.
      Gedaan te Brussel, de zesde december tweeduizendtwee.
      Feito em Bruxelas, em seis de Dezembro de dois mil e dois.
      Tehty Brysselissä kuudentena päivänä joulukuuta vuonna kaksituhattakaksi.
      Som skedde i Bryssel den sjätte december tjugohundratvå.

         Pour le Royaume de Belgique
         Voor het Koninkrijk België
         Für das Königreich Belgien

         Cette signature engage également la Communauté française, la Communauté flamande, la Communauté germanophone, la Région wallonne, la Région flamande et la Région de Bruxelles-Capitale.
         Deze handtekening verbindt eveneens de Vlaamse Gemeenschap, de Franse Gemeenschap, de Duitstalige Gemeenschap, het Vlaamse Gewest, het Waalse Gewest en het Brussels Hoofdstedelijk Gewest.
         Diese Unterschrift bindet zugleich die Deutschsprachige Gemeinschaft, die Flämische Gemeinschaft, die Französische Gemeinschaft, die Wallonische Region, die Flämische Region und die Region Brüssel-Hauptstadt.

         På Kongeriget Danmarks vegne

         Für die Bundesrepublik Deutschland

         Για την Ελληνική Δημοκρατία

         Por el Reino de España

         Pour la Republique française

         Thar cheann Na hÉireann
         For Ireland

         Per la Repubblica italiana

         Pour le Grand-Duché de Luxembourg

         Voor het Koninkrijk der Nederlanden

         Für die Republik Österreich

         Pela República Portuguesa

         Suomen tasavallan puolesta

         För Konungariket Sverige

         For the United Kingdom of Great Britain and Northern Ireland

         Por la Comunidad Europea
         For Det Europæiske Fællesskab
         Für die Europäische Gemeinschaft
         Για την Ευρωπαϊκή Κοινότητα
         For the European Community
         Pour la Communauté européenne
         Per la Comunità europea
         Voor de Europese Gemeenschap
         Pela Comunidade Europeia
         Euroopan yhteisön puolesta
         På Europeiska gemenskapens vägnar


title: Decision (EU) 2017/1565 of the European Parliament and of the Council of 13 September 2017 on providing macro-financial assistance to the Republic of Moldova

text:
               20.9.2017

               EN

               Official Journal of the European Union

               L 242/14

         DECISION (EU) 2017/1565 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
   of 13 September 2017
   on providing macro-financial assistance to the Republic of Moldova
   THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
   Having regard to the Treaty on the Functioning of the European Union, and in particular Article 212(2) thereof,
   Having regard to the proposal from the European Commission,
   After transmission of the draft legislative act to the national parliaments,
   Acting in accordance with the ordinary legislative procedure (1),
   Whereas:

               (1)

               Relations between the European Union (the ‘Union’) and the Republic of Moldova continue to develop within the framework of the European Neighbourhood Policy (ENP) and the Eastern Partnership. The Republic of Moldova joined the Eastern Partnership in 2009, which was followed by the negotiation of an Association Agreement between the Union and the Republic of Moldova. This agreement (2) (the ‘Association Agreement’), which includes the gradual introduction of a Deep and Comprehensive Free Trade Area (DCFTA), was signed on 27 June 2014 and entered into force on 1 July 2016.

               (2)

               The economy of the Republic of Moldova has been affected significantly by the political instability experienced in the period between the elections of November 2014 and January 2016, as well as by a banking fraud scandal, weak economic activity in the region, and import bans imposed by Russia. That situation contributed to producing a recession, a growing trade deficit and a significant decline of the foreign exchange reserves over the last year.

               (3)

               Following the appointment in early 2016 of a new government and of a new governor of the National Bank of Moldova, the authorities have demonstrated a renewed commitment to moving forward with necessary political reforms and to addressing the country's governance challenges in the financial sector and in the area of public finance management.

               (4)

               In support of the new reform path, a Roadmap for Priority Reforms was agreed between the Union and the Republic of Moldova following the Foreign Affairs Council Conclusions of 15 February 2016. There has been substantial progress with the implementation of this Roadmap by the Republic of Moldova.

               (5)

               In a context of political transition and economic difficulties, the authorities of the Republic of Moldova and the International Monetary Fund (IMF) agreed, in July 2016, on a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangement in the amount of USD 178,7 million. That arrangement was approved by the IMF Board on 7 November 2016. Under this IMF programme the authorities of the Republic of Moldova are expected to make swift improvements in financial sector governance and supervision, to strengthen policies that ensure macroeconomic and financial stability, and to foster sustainable and inclusive growth.

               (6)

               In view of the worsening economic situation and outlook, the Republic of Moldova requested complementary macro-financial assistance from the Union in August 2015 and reiterated that request in March 2016.

               (7)

               The Union's indicative allocation for the Republic of Moldova under the European Neighbourhood Instrument (ENI) is EUR 610-746 million, including budgetary support and technical assistance. However, budget support disbursements from the Union were suspended in early 2015 and their resumption was made conditional on the approval of a new IMF programme and all budget support conditions being fulfilled.

               (8)

               Given that the Republic of Moldova is a country covered by the ENP, it should be considered to be eligible to receive macro-financial assistance from the Union.

               (9)

               The Union's macro-financial assistance should be an exceptional financial instrument of untied and undesignated balance-of-payments support, which aims at addressing the beneficiary's immediate external financing needs and should underpin the implementation of a policy programme containing strong immediate adjustment and structural reform measures designed to improve the balance-of-payments position in the short term.

               (10)

               Given that there is still a significant residual external financing gap in the Republic of Moldova's balance of payments over and above the resources provided by IMF and other multilateral institutions, the Union macro-financial assistance to be provided to the Republic of Moldova is, under the current exceptional circumstances, considered to be an appropriate response to the Republic of Moldova's request for support to the economic stabilisation, in conjunction with the IMF programme. The Union's macro-financial assistance would support the economic stabilisation and the structural reform agenda of the Republic of Moldova, supplementing resources made available under the IMF's financial arrangement.

               (11)

               The Union's macro-financial assistance should aim to support the restoration of a sustainable external financing situation for the Republic of Moldova, contributing to the greater political and macroeconomic stability of the country, the strengthening of economic and financial governance, including a thorough, result-oriented investigation into bank fraud, good energy governance and the political independence of the judiciary.

               (12)

               The Union's macro-financial assistance is expected to go hand-in-hand with the implementation of disbursements of budget support operations under the ENI.

               (13)

               The determination of the amount of the Union's macro-financial assistance is based on a complete quantitative assessment of the Republic of Moldova's residual external financing needs, and takes into account its capacity to finance itself with its own resources, in particular the international reserves at its disposal. The Union's macro-financial assistance should complement the programmes and resources provided by the IMF and the World Bank. The determination of the amount of the assistance also takes into account expected financial contributions from multilateral donors and the need to ensure fair burden sharing between the Union and other donors, as well as the pre-existing deployment of the Union's other external financing instruments in the Republic of Moldova and the added value of the overall Union involvement.

               (14)

               Taking into consideration the Republic of Moldova's residual external financing needs, the level of its economic development, as measured by per capita income and poverty ratios, its capacity to finance itself with its own resources, in particular the international reserves at its disposal, and the assessment of its ability to repay drawing on debt sustainability analysis, a part of the assistance should be provided in the form of grants.

               (15)

               The Commission should ensure that the Union's macro-financial assistance is legally and substantially in line with the key principles and objectives of the different areas of external action, with the measures taken in respect of those areas, and with other relevant Union policies.

               (16)

               The Union's macro-financial assistance should support the Union's external policy towards the Republic of Moldova. Commission services and the European External Action Service (‘EEAS’) should work closely together throughout the macro-financial assistance operation in order to coordinate, and to ensure the consistency of, Union external policy.

               (17)

               The Union's macro-financial assistance should support the Republic of Moldova's commitment to values shared with the Union, including democracy, the rule of law, good governance, an accountable, transparent and merit-based civil service, an independent judiciary, respect for human rights, the freedom, independence and pluralism of the media, sustainable development and poverty reduction, as well as its commitment to the principles of open, rules-based and fair trade.

               (18)

               A pre-condition for granting the Union's macro-financial assistance and for the disbursement of each of the three instalments should be that the Republic of Moldova respects effective democratic mechanisms — including a multi-party parliamentary system — and the rule of law, and guarantees respect for human rights. In addition, the specific objectives of the Union's macro-financial assistance should strengthen the efficiency, transparency and accountability of the public finance management systems, ensure an effective fight against corruption and money laundering, reinforce the governance and supervision of the financial and banking sector in the Republic of Moldova, improve the governance of the energy sector and promote structural reforms aimed at supporting sustainable and inclusive growth, employment creation, a good business climate and fiscal consolidation. The Union's macro-financial assistance to the Republic of Moldova should also include measures to support the implementation of the Association Agreement, including the DCFTA. To ensure that specific objectives can be properly assessed, they need to be set out in a verifiable and measurable manner. Both the fulfilment of the precondition and the achievement of those objectives should be regularly monitored by the Commission and the EEAS. If the precondition and the objectives are not met or if the aims and principles of the Association Agreement are generally disregarded, the Commission should temporarily suspend or cancel the disbursement of the Union's macro-financial assistance.

               (19)

               In order to ensure that the Union's financial interests linked to the Union's macro-financial assistance are protected efficiently, the Republic of Moldova should implement appropriate measures relating to the prevention of, and fight against, fraud, corruption and any other irregularities linked to the assistance. The Republic of Moldova should regularly inform the Commission about the implementation of the macro-financial assistance on the basis of full disclosure and strict compliance with the Union's financial rules. In addition, provision should be made for the Commission to carry out checks and for the European Court of Auditors to carry out audits.

               (20)

               Release of the Union's macro-financial assistance is without prejudice to the powers of the European Parliament and the Council (as budgetary authority).

               (21)

               The amounts of macro-financial assistance provided in the form of grants and the amounts of the provision required for macro-financial assistance in the form of loans should be consistent with the budgetary appropriations provided for in the multiannual financial framework.

               (22)

               The Union's macro-financial assistance should be managed by the Commission. In order to ensure that the European Parliament and the Council are able to follow the implementation of this Decision, the Commission should regularly inform them of developments relating to the assistance and provide them with relevant documents.

               (23)

               In order to ensure uniform conditions for the implementation of this Decision, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (3).

               (24)

               The Union's macro-financial assistance should be subject to conditions, to be laid down in a Memorandum of Understanding. Such conditions should be linked to the disbursement of each of the three instalments. In order to ensure uniform conditions of implementation and for reasons of efficiency, the Commission should be empowered to negotiate such conditions with the authorities of the Republic of Moldova under the supervision of the committee of representatives of the Member States in accordance with Regulation (EU) No 182/2011. Under that Regulation, the advisory procedure should, as a general rule, apply in all cases other than as provided for in that Regulation. Considering the potentially important impact of assistance of more than EUR 90 million, it is appropriate that the examination procedure be used for operations above that threshold. Considering the amount of the Union's macro-financial assistance to the Republic of Moldova, the examination procedure should apply to the adoption of the Memorandum of Understanding, and to any reduction, suspension or cancellation of the assistance,

         HAVE ADOPTED THIS DECISION:
   Article 1
   1.   The Union shall make macro-financial assistance of a maximum amount of EUR 100 million available to the Republic of Moldova (‘the Union's macro-financial assistance’), with a view to supporting the Republic of Moldova's economic stabilisation and a substantive reform agenda. Of that maximum amount, up to EUR 60 million shall be provided in the form of loans and up to EUR 40 million in the form of grants. The release of the Union's macro-financial assistance is subject to the approval of the Union budget for the relevant year by the European Parliament and the Council. The assistance shall contribute to covering the Republic of Moldova's balance of payments needs as identified in the IMF programme.
   2.   In order to finance the loan component of the Union's macro-financial assistance, the Commission shall be empowered on behalf of the Union to borrow the necessary funds on the capital markets or from financial institutions and to on-lend them to the Republic of Moldova. The loans shall have a maximum average maturity of 15 years.
   3.   The release of the Union's macro-financial assistance shall be managed by the Commission in a manner consistent with the agreements or understandings reached between the IMF and the Republic of Moldova, and with the key principles and objectives of economic reforms set out in the Association Agreement, including the DCFTA, agreed under the ENI.
   The Commission shall regularly inform the European Parliament and the Council of developments regarding the Union's macro-financial assistance, including disbursements thereof, and shall provide those institutions with the relevant documents in due time.
   4.   The Union's macro-financial assistance shall be made available for a period of two and a half years, starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 3(1).
   5.   If the financing needs of the Republic of Moldova decrease fundamentally during the period of the disbursement of the Union's macro-financial assistance compared to the initial projections, the Commission, acting in accordance with the examination procedure referred to in Article 7(2), shall reduce the amount of the assistance or suspend or cancel it.
   Article 2
   1.   A pre-condition for granting the Union's macro-financial assistance shall be that the Republic of Moldova respects effective democratic mechanisms — including a multi-party parliamentary system — and the rule of law, and guarantees respect for human rights.
   2.   The Commission and the EEAS shall monitor the fulfilment of the pre-condition set out in paragraph 1 throughout the life cycle of the Union's macro-financial assistance.
   3.   Paragraphs 1 and 2 of this Article shall be applied in accordance with Council Decision 2010/427/EU (4).
   Article 3
   1.   The Commission, in accordance with the examination procedure referred to in Article 7(2), shall agree with the authorities of the Republic of Moldova on clearly defined economic policy and financial conditions, focusing on structural reforms and sound public finances, to which the Union's macro-financial assistance is to be subject, to be laid down in a Memorandum of Understanding (‘the Memorandum of Understanding’) which shall include a timeframe for the fulfilment of those conditions. The economic policy and financial conditions set out in the Memorandum of Understanding shall be consistent with the agreements or understandings referred to in Article 1(3), including the macroeconomic adjustment and structural reform programmes implemented by the Republic of Moldova with the support of the IMF.
   2.   The conditions referred to in paragraph 1 shall aim, in particular, at enhancing the efficiency, transparency and accountability of the public finance management systems in the Republic of Moldova, including for the use of the Union's macro-financial assistance. Progress in mutual market opening, the development of rules-based and fair trade, and other priorities in the context of the Union's external policy shall also be duly taken into account when designing the policy measures. Progress in attaining those objectives shall be regularly monitored by the Commission.
   3.   The detailed financial terms of the Union's macro-financial assistance shall be laid down in a Loan Agreement and a Grant Agreement to be concluded between the Commission and the authorities of the Republic of Moldova.
   4.   The Commission shall verify, at regular intervals, that the conditions referred to in Article 4(3) continue to be met, including whether the economic policies of the Republic of Moldova are in accordance with the objectives of the Union's macro-financial assistance. In so doing, the Commission shall coordinate closely with the IMF and the World Bank, and, where necessary, with the European Parliament and the Council.
   Article 4
   1.   Subject to the conditions referred to in paragraph 3, the Union's macro-financial assistance shall be made available by the Commission in three instalments, each of which shall consist of a loan and a grant element. The size of each instalment shall be laid down in the Memorandum of Understanding.
   2.   The amounts of the Union's macro-financial assistance provided in the form of loans shall be provisioned, where required, in accordance with Council Regulation (EC, Euratom) No 480/2009 (5).
   3.   The Commission shall decide on the release of the instalments subject to the fulfilment of all of the following conditions:

               (a)

               the pre-condition set out in Article 2;

               (b)

               a continuous satisfactory track record of implementing a policy programme that contains strong adjustment and structural reform measures supported by a non-precautionary IMF credit arrangement; and

               (c)

               the satisfactory implementation of the economic policy and financial conditions agreed in the Memorandum of Understanding.

         4.   The release of the second instalment shall not, in principle, take place earlier than three months after the release of the first instalment. The release of the third instalment shall not, in principle, take place earlier than three months after the release of the second instalment.
   5.   Where the conditions referred to in paragraph 3 are not met, the Commission shall temporarily suspend or cancel the disbursement of the Union's macro-financial assistance. In such cases, it shall inform the European Parliament and the Council of the reasons for that suspension or cancellation.
   6.   The Union's macro-financial assistance shall be disbursed to the National Bank of the Republic of Moldova. Subject to the provisions to be agreed in the Memorandum of Understanding, including a confirmation of residual budgetary financing needs, the Union funds may be transferred to the Ministry of Finance of the Republic of Moldova as the final beneficiary.
   Article 5
   1.   The borrowing and lending operations related to the loan component of the Union's macro-financial assistance shall be carried out in euro using the same value date and shall not involve the Union in the transformation of maturities, or expose it to any exchange or interest rate risk, or to any other commercial risk.
   2.   Where the circumstances permit, and if the Republic of Moldova so requests, the Commission may take the steps necessary to ensure that an early repayment clause is included in the loan terms and conditions, and that it is matched by a corresponding clause in the terms and conditions of the borrowing operations.
   3.   Where circumstances permit an improvement of the interest rate of the loan and if the Republic of Moldova so requests, the Commission may decide to refinance all or part of its initial borrowings or may restructure the corresponding financial conditions. Refinancing or restructuring operations shall be carried out in accordance with paragraphs 1 and 4 and shall not have the effect of extending the maturity of the borrowings concerned or of increasing the amount of capital outstanding at the date of the refinancing or restructuring.
   4.   All costs incurred by the Union, which relate to the borrowing and lending operations under this Decision, shall be borne by the Republic of Moldova.
   5.   The Commission shall inform the European Parliament and the Council of developments in the operations referred to in paragraphs 2 and 3.
   Article 6
   1.   The Union's macro-financial assistance shall be implemented in accordance with Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council (6) and Commission Delegated Regulation (EU) No 1268/2012 (7).
   2.   The implementation of the Union's macro-financial assistance shall be under direct management.
   3.   The Loan Agreement and the Grant Agreement to be agreed with the authorities of the Republic of Moldova shall contain provisions:

               (a)

               ensuring that the Republic of Moldova regularly checks that financing provided from the budget of the Union has been properly used, takes appropriate measures to prevent irregularities and fraud, and, if necessary, takes legal action to recover any funds provided under this Decision that have been misappropriated;

               (b)

               ensuring the protection of the Union's financial interests, in particular providing for specific measures in relation to the prevention of, and fight against, fraud, corruption and any other irregularities affecting the Union's macro-financial assistance, in accordance with Council Regulation (EC, Euratom) No 2988/95 (8), Council Regulation (Euratom, EC) No 2185/96 (9) and Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (10);

               (c)

               expressly authorising the Commission, including the European Anti-Fraud Office, or its representatives to carry out checks, including on-the-spot checks and inspections;

               (d)

               expressly authorising the Commission and the Court of Auditors to perform audits during and after the availability period of the Union's macro-financial assistance, including document audits and on-the-spot audits, such as operational assessments;

               (e)

               ensuring that the Union is entitled to early repayment of the loan and/or to full repayment of the grant where it has been established that, in relation to the management of the Union's macro-financial assistance, the Republic of Moldova has engaged in any act of fraud or corruption or any other illegal activity detrimental to the financial interests of the Union.

         4.   Before the implementation of the Union's macro-financial assistance, the Commission shall assess, by means of an operational assessment, the soundness of financial arrangements of the Republic of Moldova, the administrative procedures, and the internal and external control mechanisms which are relevant to the assistance.
   Article 7
   1.   The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.
   2.   Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.
   Article 8
   1.   By 30 June of each year, the Commission shall submit to the European Parliament and to the Council a report on the implementation of this Decision in the preceding year, including an evaluation of that implementation. The report shall:

               (a)

               examine the progress made in implementing the Union's macro-financial assistance;

               (b)

               assess the economic situation and prospects of the Republic of Moldova, as well as progress made in implementing the policy measures referred to in Article 3(1);

               (c)

               indicate the connection between the economic policy conditions laid down in the Memorandum of Understanding, the Republic of Moldova's ongoing economic and fiscal performance and the Commission's decisions to release the instalments of the Union's macro-financial assistance.

         2.   Not later than two years after the expiry of the availability period referred to in Article 1(4), the Commission shall submit to the European Parliament and to the Council an ex post evaluation report, assessing the results and efficiency of the completed Union's macro-financial assistance and the extent to which it has contributed to the aims of the assistance.
   Article 9
   This Decision shall enter into force on the third day following that of its publication in the Official Journal of the European Union.

      Done at Strasbourg, 13 September 2017.

            For the European Parliament

            The President

         A. TAJANI

            For the Council

            The President

         M. MAASIKAS

      (1)  Position of the European Parliament of 4 July 2017 (not yet published in the Official Journal) and Decision of the Council of 17 July 2017.

      (2)  Association Agreement between the European Union and the European Atomic Energy Community and their Member States, of the one part, and the Republic of Moldova, of the other part (OJ L 260, 30.8.2014, p. 4).

      (3)  Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

      (4)  Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service (OJ L 201, 3.8.2010, p. 30).

      (5)  Council Regulation (EC, Euratom) No 480/2009 of 25 May 2009 establishing a Guarantee Fund for external actions (OJ L 145, 10.6.2009, p. 10).

      (6)  Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

      (7)  Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ L 362, 31.12.2012, p. 1).

      (8)  Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1).

      (9)  Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2).

      (10)  Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1).

      Joint statement by the European Parliament, the Council and the Commission
      In light of the initiatives related to the changes of the electoral system in the Republic of Moldova, the European Parliament, the Council and the Commission underline that a pre-condition for granting macro-financial assistance is that the beneficiary country respects effective democratic mechanisms, including a multi-party parliamentary system and the rule of law and guarantees respect for human rights. The Commission and the European External Action Service shall monitor the fulfilment of this pre-condition throughout the lifecycle of the macro-financial assistance and will thereby pay utmost attention to the consideration by the authorities of the Republic of Moldova of the recommendations of relevant international partners (especially the Venice Commission and the OSCE/ODIHR).