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Brussels, 12.06.2006

SEC(2006) 745 final

Draft

DECISION by the Representatives of the Governments of the Member States, meeting within the Council

on the provisional application of the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multi-annual financial framework for the period 2008-2013 in accordance with the revised ACP-EC Partnership Agreement and the allocation of the financial assistance for the Overseas Countries and Territories to which part Four of the EC Treaty applies

(presented by the Commission)

EXPLANATORY MEMORANDUM

Negotiations for the revision of the ACP-EC Partnership Agreement were concluded in Brussels on 23 February 2005. The revised Agreement was signed in Luxembourg on 25 June 2005 and will enter into force upon completion of the ratification process. The multi-annual financial framework 2008-2013 as laid down in Annex Ib of the revised Agreement has been approved by COREPER on 17 May 2006 and should be signed in Port Moresby on 2 June 2006. The Internal Agreement establishing the 10th EDF and the 10th EDF management committee should be adopted immediately afterwards by the Member States, meeting within the Council. Indeed, this Internal Agreement will only enter into force after ratification by the Member States, which may take up to 18 months or more, while the funds of the 9th EDF shall normally no longer be committed after 31.12.2007.

The ACP-EC Council of Ministers has adopted transitional measures that will allow for the provisional application of parts of the revised ACP-EC Partnership Agreement. Provisions which relate to the release and implementation of financial resources and instruments from the 10th EDF cannot take effect before the multi-annual financial framework for 2008-2013 set out in Annex Ib of the revised ACP-EC Partnership Agreement enters into force.

In contrast, programming of resources available under the 10th EDF must begin before the entry into force of the new multi-annual financial framework. Such programming may imply an indicative allocation but no commitment of funds that will become available under the 10th EDF.

According to Article 2 of the decision on transitional measures for the provisional application of the revised ACP-EC Partnership Agreement, the Community is required to take the appropriate steps with regard to the implementation of such measures. To ensure a timely implementation of the 10th EDF as soon as the resources can be accessed, the appropriate decision-making procedures on programming and preparation must therefore also be in place. Since this Internal Agreement does not decide on the use of any funds de-committed after 31.12.2007 from projects from the 9th EDF or from previous EDFs, the provisional measures will also include the possibility for the Council to decide unanimously on their transfer to the reserves of the 10th EDF.

To this end, the Commission proposes to provide for a provisional application of the pertinent provisions of the Internal Agreement establishing the 10th EDF, which concern in particular the adoption of an Implementation Regulation and a Financial Regulation and inter alia the establishment of the EDF Committee as well as the Investment Facility Committee. This approach is in conformity with that taken on the occasion of the transition from the 8th to the 9th EDF[1].

The Commission therefore suggests that the Representatives of the Governments of the Member States adopt the attached decision.

Draft

DECISION by the Representatives of the Governments of the Member States, meeting within the Council

on the provisional application of the Internal Agreement between the Representatives of the Governments of the Member States, meeting within the Council, on the financing of Community aid under the multi-annual financial framework for the period 2008-2013 in accordance with the revised ACP-EC Partnership Agreement and the allocation of the financial assistance for the Overseas Countries and Territories to which part Four of the EC Treaty applies

REPRESENTATIVES OF THE GOVERNMENTS OF THE MEMBER STATES OF THE EUROPEAN COMMUNITY, MEETING WITHIN THE COUNCIL,

Having regard to the Treaty establishing the European Community,

Having regard to the Partnership Agreement between the members of the African, Caribbean and Pacific Group of States, of the one part and the European Community and its Member States, of the other part, signed in Cotonou, on 23 June 2000[2], as revised and signed in Luxembourg, on 25 June 2005[3], (hereinafter referred to as “the revised ACP-EC Partnership Agreement”),

Having regard to the Council Decision 2001/822/EC[4] on the association of the Overseas Countries and Territories (hereinafter ‘OCT’) with the Community,

Having regard to the draft submitted by the Commission,

Whereas:

(1) The revised ACP-EC Partnership Agreement will not enter into force until the constitutional requirements of each Member State have been completed in accordance with Art. 93 thereof.

(2) The ACP-EC Council of Ministers has adopted through Decision 5/2005[5] transitional measures applicable from the date of signing to the date of entry into force of the revised ACP-EC Partnership Agreement.

(3) In accordance with Article 2 of Decision 5/2005, the Member States and Community are invited to take appropriate steps in order to implement the transitional measures.

(4) On 2 June 2006, the ACP-EC Council of Ministers has adopted the multi-annual financial framework 2008-2013 as Annex Ib of the revised ACP-EC Partnership Agreement.

(5) The Member States, meeting within the Council, have reached a consensus concerning an Internal Agreement on the financing of Community aid to the ACP States and to the OCTs under the multi-annual financial framework for the period 2008-2013. This agreement will not enter into force before adoption by each Member State in accordance with its own constitutional requirements.

(6) Certain provisions of the Internal Agreement should be applied on a provisional basis pending its entry into force,

HAVE DECIDED AS FOLLOWS:

Article 1

The following provisions of the Internal Agreement relating to the 10th European Development Fund shall be applied provisionally from the date of the adoption of this Decision:

(1) Article 1 (3) relating to a Council decision on the transfer of any funds de-committed after 31.12.2007 from ACP projects funded out of the 9th EDF and previous EDFs to the reserves of the 10th EDF.

(2) Article 1 (6), in conjunction with Article 8 and 8bis, insofar as the Council shall adopt the final schedule of contributions to be made by Romania and Bulgaria as well as their final voting weights and the new qualified majority and blocking minority rules after their accession to the EU and in accordance with the Internal Agreement.

(3). Article 9 for the purposes of the adoption of the Implementation Regulation and the Financial Regulation and, inter alia , for the purposes of establishing the EDF Committee and the Investment Facility Committee in connection with Article 8 and 8bis.

Article 2

This decision shall remain in force until the entry into force of the Internal Agreement.

The Representatives of the Governments of the Member States may decide to extend its applicability.

It shall be published in the Official Journal of the European Union.

Done at Brussels,

On behalf of the Governments of the Member States

The President

[1] OJ L 317, 15.12.2000, p. 3.

[2] OJ L 317, 15.12.2000, p. 3.

[3] OJ L 209, 11.08.2005, p. 26.

[4] OJ L 314, 30.11.2001, p. 1.

[5] OJ L 287, 28.10.2005, p. 1.