(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2004)0627)(1),

–   having regard to Article 181a of the Treaty establishing the European Community, pursuant to which the Council consulted Parliament (C6-0047/2005),

–   having regard to the Declaration of the Commission on the Democratic Scrutiny and Coherence of External Actions annexed to the Interinstitutional Agreement of 17 May 2006 on budgetary discipline and sound financial management(2) and the related exchange of letters,

–   having regard to the statement made by the Commission at the plenary sitting of the European Parliament of 17 May 2006 that "the Commission will take due account of any request made by the European Parliament to the Commission to submit a proposal to suspend or restore Community assistance and will provide a prompt and sufficiently detailed reply thereto",

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Foreign Affairs and the opinions of the Committee on International Trade, the Committee on Budgets, the Committee on Regional Development and the Committee on Agriculture and Rural Development (A6-0155/2006),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty;

3.  Calls on the Council to notify Parliament if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

5.  Instructs its President to forward its position to the Council and Commission.

Text proposed by the Commission   Amendments by Parliament Amendment 1 Recital 2 a (new) (2a) The European Parliament has welcomed the addition, by the Treaty of Nice, of Article 181a to the Treaty establishing the European Community (the EC Treaty), but reiterated its position that, given the political and budgetary importance of pre-accession assistance, it would be highly desirable to adopt the measures necessary for the implementation of economic, financial and technical cooperation with States which are candidates for accession to the Union in accordance with the procedure laid down in Article 251 of the EC Treaty. Amendment 2 Recital 11 (11)  Assistance for Candidate Countries as well as for potential Candidate Countries should continue to support them in their efforts to strengthen democratic institutions and the rule of law, reform public administration, respect human as well as minority rights, support the development of civil society and advance regional cooperation as well as reconciliation and reconstruction, and contribute to sustainable development and poverty reduction in these countries, and should therefore be targeted to support a wide range of institution building measures, (11)  Assistance for candidate countries as well as for potential candidate countries under this Regulation, and for other entities such as individuals and non-governmental organisations under a separate instrument devoted to the promotion of human rights and democracy, should continue to support them in their efforts to strengthen democratic institutions and the rule of law, carry out economic reforms aimed at the promotion of a market economy and free and fair trade, reform public administration, prepare EU-compatible National Development Plans, respect human as well as minority rights, promote gender equality, support the development of civil society, including institution-building for NGOs, improve consumer rights, and advance regional cooperation as well as reconciliation and reconstruction, and contribute to sustainable development and poverty eradication in these countries, and should therefore be targeted to support a wide range of institution building measures. Amendment 3 Recital 13 (13)  Assistance for potential Candidate Countries may include some alignment with the acquis communautaire as well as support for investment projects, (13)  Assistance for potential candidate countries may include some alignment with the acquis communautaire, facilitating the formulation of EU-compatible provisional National Development Plans aiming to build institutional absorption capacity for future EU assistance, especially in the areas of rural, infrastructure and human resources development, as well as support for investment projects. Amendment 4 Recital 14 (14)  Assistance should be provided on the basis of a comprehensive multi-annual strategy, taking into account the priorities of the Stabilisation and Association process, as well as those deriving from the pre-accession process, (14)  Assistance should be provided on the basis of a comprehensive multi-annual strategy that reflects the priorities of the Stabilisation and Association process, the domestic reform objectives of beneficiary countries, as well as the strategic priorities defined by the European Parliament for the pre-accession process. Amendment 5 Recital 16 a (new) (16a) Potential candidate countries and candidate countries who have not yet been accredited to manage funds in a decentralised manner should however be eligible, under the Transition Assistance and Institution Building component, for measures and actions of a similar nature to those which will be available under the Regional Development component, the Human Resource Development component and the Rural Development component. Amendment 6 Recital 17 (17)  Assistance should be managed in accordance with the rules for External Aid contained in Regulation (EC) 1605/2002, making use of the structures that have proved their worth in the pre-accession process, such as decentralised management, Twinning and TAIEX, but should also allow for innovative approaches such as the implementation through Member States via shared management in case of cross-border programmes on the external borders of the European Union, (17)  Assistance should be managed in accordance with the rules for External Aid contained in Regulation (EC, Euratom) No 1605/2002, making use of the structures that have proved their worth in the pre-accession process, such as decentralised management, Twinning and TAIEX, but should also allow for innovative approaches such as the implementation through Member States via shared management in case of cross-border programmes on the external borders of the European Union. The transfer of knowledge and expertise regarding the implementation of the acquis communautaire, from Member States with relevant experience to the beneficiaries of this Regulation, should be particularly beneficial in this context. Amendment 7 Recital 18 (18)  The actions necessary for the implementation of the Transition Assistance and Institution Building Component as well as the Regional and Cross-Border Co-operation Component are management measures relating to the implementation of programmes with substantial budgetary implications, they should therefore be adopted in accordance with Council Decision 1999/468 of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred to the Commission, by submitting multi-annual indicative planning documents to a Management Committee, (18)  The actions necessary for the implementation of the Transition Assistance and Institution Building Component as well as the Regional and Cross-Border Co-operation Component are management measures relating to the implementation of programmes with substantial budgetary implications, they should therefore be adopted, having regard to the recommendation of the European Parliament, in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred to the Commission, by submitting multi-annual indicative planning documents to a Management Committee. Amendment 8 Recital 22 (22)  Where a beneficiary country violates the principles the European Union is founded on, or makes insufficient progress with respect to the Copenhagen Criteria and the priorities set down in the European or Accession Partnership, the Council must, on the basis of a proposal from the Commission, be in a position to take the necessary measures, (22)  Where a beneficiary country violates the principles the European Union is founded on, or makes insufficient progress with respect to the Copenhagen criteria and the priorities set down in the European or Accession Partnership or the provisions of the Accession Treaty, the Council must, on the basis of a proposal from the Commission and after consulting the European Parliament, be in a position to take the necessary measures, in which case the Commission should initiate, within the framework of this Regulation, specific action aimed at resolving the problems hindering the pre-accession or accession process. Amendment 9 Article 2, paragraph 1, point (a) (a) strengthening democratic institutions and the rule of law, (a) strengthening democratic institutions and the rule of law and its enforcement, and promoting accountability and transparency, Amendment 10 Article 2, paragraph 1, point (c) (c) economic reform, (c) market-oriented economic reform to build a sustainable social, environmentally-friendly and competitive economy, by progressive price and trade liberalisation, gradual integration into the customs union, accession to the World Trade Organization (WTO) and the implementation of WTO rules and those resulting from the Doha Development Agenda, Amendment 11 Article 2, paragraph 1, point (c a) (new) (ca) preparation of EU-compatible provisional National Development Plans aimed at building institutional absorption capacity for future EU assistance, especially in the areas of rural, infrastructure and human resources development, Amendment 12 Article 2, paragraph 1, point (d a) (new) (da) the promotion of gender equality, Amendment 14 Article 2, paragraph 1, point (e) (e) the development of civil society, (e) the development of civil society, citizenship and free, independent media, including institutional development and support for non-governmental organisations, Amendment 15 Article 2, paragraph 1, point (e a) (new) (ea) the economic and social integration of vulnerable groups, particularly women, Amendment 16 Article 2, paragraph 1, point (f) (f) reconciliation, confidence building measures and reconstruction, (f) reconciliation, return of refugees, confidence building measures and reconstruction, Amendment 13 Article 2, paragraph 2, point (b) (b) social and economic development, (b) social, economic and territorial development and cohesion. Amendment 17 Article 3, paragraph 3 (3)  Acting in accordance with the procedure set down in Article 11 (1) (a) of this Regulation, the Commission shall adopt rules for the implementation of this Regulation. Where these rules concern the implementation of Article 7 to 9 of this Regulation, the Committees responsible for the Component in question shall be consulted first, following the procedure set down in Article 3 of Decision 1999/468/EC, in compliance with Article 7 (3) thereof. 3.  Acting in accordance with the procedure set down in Article 11 (1) (a) of this Regulation, the Commission shall adopt rules for the implementation of this Regulation. Where these rules concern the implementation of Article 7 to 9 of this Regulation, the Committees responsible for the Component in question shall be consulted first, following the procedure set down in Article 3 of Decision 1999/468/EC, in compliance with Article 7 (3) thereof. The implementing instruments shall be presented to the European Parliament for its opinion before their adoption. Amendment 18 Article 4, paragraph 1 (1)  The Commission shall, on the basis of a strategic approach, taking into consideration the financial perspective, as well as the European Partnerships and Accession Partnerships, establish an indicative multi-annual framework with an allocation of funds by component and country, and where appropriate per theme. This shall be reviewed annually, taking into account a set of objective criteria including absorption capacity, needs assessment, respect of conditionalities, and capacity of management. It shall also be reviewed, where appropriate, in view exceptional assistance measures or interim response programmes adopted under the Regulation establishing the Stability Instrument. The funds allocated to cross-border co-operation programmes with Member States shall be at least equivalent to the corresponding financing from the European Regional Development Fund. 1.  The Commission, having regard to the recommendation of the European Parliament, shall, on the basis of a strategic approach, taking into consideration the financial perspective, as well as the European Partnerships and Accession Partnerships, establish an indicative multi-annual framework with an allocation of funds by component and country, and where appropriate per theme. This shall be reviewed annually having regard to the recommendation of the European Parliament, taking into account a set of objective criteria including absorption capacity, needs assessment, respect of conditionalities, and capacity of management. It shall also be reviewed by a similar procedure, where appropriate, in view exceptional assistance measures or interim response programmes adopted under the Regulation establishing the Stability Instrument. The funds allocated to cross-border co-operation programmes with Member States shall be at least equivalent to the corresponding financing from the European Regional Development Fund. Amendment 19 Article 4, paragraph 2 (2)  The indicative multi-annual framework shall be communicated annually by the Commission to the Council and the European Parliament. 2.  The indicative multi-annual framework shall be communicated in due time annually by the Commission to the Council and the European Parliament. In its annual report, the Commission shall set out in detail the extent to which the European Parliament's recommendations have been taken into consideration. Should it deviate from the recommendations of the European Parliament, the Commission shall give its reasons for doing so. Amendment 20 Article 4, paragraph 2 a (new) 2a. The procedure provided for under paragraphs 1 and 2 shall be without prejudice to the European Parliament's prerogatives as budgetary authority under the Treaty. Amendment 21 Article 6, paragraph 2 (2)  Such cooperation shall have the objective of fostering stability, security and prosperity in the mutual interest of all countries concerned, and of encouraging their harmonious, balanced and sustainable development. 2.  Such cooperation shall have the objective of promoting good neighbourly relations, fostering stability, security, prosperity and social cohesion in the mutual interest of all countries concerned, and of encouraging their harmonious, balanced and sustainable development. Amendment 22 Article 10, paragraph 2 a (new) 2a. In exceptional cases, where, in absence of agreement between a Member State and a beneficiary country, implementation tasks of a cross-border programme cannot be delegated to Member States, those tasks may be administered in some other appropriate way in accordance with Regulation (EC, Euratom) No 1605/2002. The Commission shall ensure coordination and consistency between assistance provided by this Regulation and assistance provided by other Community instruments. Amendment 23 Article 10, paragraph 5 a (new) 5a. Before their implementation, the Commission shall inform the European Parliament about the Community's aid programmes under this Regulation. In order for this ex-ante control to be carried out, the Commission's reports shall include all information concerning the actions proposed, the beneficiaries thereof and the respective financing operations. Amendment 24 Article 11, paragraph 3 a (new) 3a. The Commission shall report to the European Parliament on the proceedings of the Committees. Amendment 25 Article 12, paragraph 1 (1)  Assistance under this Regulation may, inter alia, finance investments, procurement contracts, grants, including interest rate subsidies, special loans, loan guarantees and financial assistance, budgetary support, and other specific forms of budgetary aid, and the contribution to the capital of international financial institutions or the regional development banks. Budgetary support is contingent on the administration of public finances of the Partner Country being sufficiently transparent, reliable and efficient, and on well-defined sectorial or macroeconomic policies approved by international financing institutions having been put in place. 1.  Assistance under this Regulation may, inter alia, finance investments, procurement contracts, grants, including interest rate subsidies, special loans, loan guarantees and financial assistance, and the contribution to the capital of international financial institutions or the regional development banks. Amendment 26 Article 14, title Implementation of Assistance Implementation of Assistance and its Visibility Amendment 27 Article 14, paragraph 2 a (new) 2a. The Commission shall promote detailed information and publicity about the projects and programmes financed in order to raise public awareness about the Community action and its objectives. Amendment 28 Article 14, paragraph 2 b (new) 2b. The Commission shall ensure consistency between assistance provided under this Regulation and assistance provided under other external assistance instruments including a separate instrument devoted to the promotion of human rights and democracy, as well as Member States" bilateral operations and funding from the EIB, other international organisations and regional development banks. Amendment 29 Article 17, paragraph 2 (2)  Where a beneficiary country fails to respect these principles or the commitments contained in the relevant Partnership with the European Union or progress toward fulfilment of the accession criteria is insufficient, the Council, acting by qualified majority on a proposal from the Commission, may take appropriate steps with regard to any assistance granted under this Regulation. 2.  Where a beneficiary country fails to respect these principles or the commitments contained in the relevant Partnership with or Accession Treaty to the European Union or progress toward fulfilment of the accession criteria is insufficient, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, may take appropriate steps with regard to any assistance granted under this Regulation. In that case, the Commission shall initiate, within the framework of this Regulation, specific action aimed at resolving the problems hindering the pre-accession or accession process. Amendment 30 Article 17, paragraph 2 a (new) 2a. The European Parliament may request the Commission to submit a proposal to the Council pursuant to paragraph 2 on taking appropriate steps with regard to any assistance granted under this Regulation. The Commission shall submit its proposal to the Council within 3 months of receiving the request, or shall give its reasons for not doing so. Amendment 31 Article 18 If a beneficiary country listed in Annex I of this Regulation is, pursuant to a decision of the Council acting under Art. 49, paragraph 1, first sentence of the Treaty on European Union, granted Candidate status, the Council, acting by qualified majority on the basis of a proposal from the Commission will transfer that country from Annex I to Annex II. 1.  If a beneficiary country listed in Annex I of this regulation is, pursuant to a decision of the Council acting under Article 49, paragraph 1, first sentence of the Treaty on European Union, granted Candidate status, the Council, acting by a qualified majority on the basis of a proposal from the Commission, and after consulting the European Parliament, will transfer that country from Annex I to Annex II. Amendment 32 Article 18, paragraph 1 a (new) 1a. If the European Council recognises a State as a potential candidate for membership of the European Union, the Council, acting by a qualified majority on the basis of a proposal from the Commission, and after consulting the European Parliament, shall include that country in Annex I. Amendment 33 Article 20 a (new) Article 20a 1.  Not later than 30 June 2010, the Commission shall submit to the European Parliament and the Council a report on the implementation of this Regulation together with a legislative proposal introducing the necessary modifications. 2.  The European Parliament and the Council, acting on a proposal by the Commission, shall re-examine this Regulation by 31 December 2013.

(1) Not yet published in OJ. (2) OJ C 139, 14.6.2006, p. 1.