(1)

Council Regulation (EC) No 1085/2006 of 17 July 2006 establishing an Instrument for Pre-Accession Assistance (IPA) (2) provides for assistance to candidate countries and potential candidate countries in their progressive alignment with the standards and policies of the Union, including where appropriate the acquis, with a view to membership.

(2)

Regulation (EC) No 1085/2006 draws a clear distinction between candidate countries and potential candidate countries.

(3)

The European Council of 17 June 2010 welcomed the Commission opinion on Iceland's application for membership of the Union, noted that Iceland met the political criteria set by the Copenhagen European Council in 1993 and decided that accession negotiations with Iceland should be opened. Iceland is therefore a candidate country.

(4)

The European Council of 17 December 2010 endorsed the Council's conclusions of 14 December 2010 on enlargement and agreed to grant Montenegro the status of a candidate country.

(5)

The Council has invited the Commission to propose an amendment to Article 19 of Regulation (EC) No 1085/2006 with a view to clarifying the rules regarding participation in the award of grant contracts financed under the IPA Cross-Border Cooperation Component and ensuring coherence with other external aid instruments, in particular the European Neighbourhood and Partnership Instrument.

(6)

Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community (3) designates the committee provided for in Council Regulation (EEC) No 3906/89 of 18 December 1989 on economic aid to certain countries of Central and Eastern Europe (4) (the ‧Phare committee‧) to assist the Commission in the management of the assistance to the Turkish Cypriot community. In accordance with Article 25 of Regulation (EC) No 1085/2006, Regulation (EEC) No 3906/89 has been repealed; however, it continues to apply for legal acts and commitments implementing the budget years preceding 2007. Since Regulation (EC) No 389/2006 continues to be the basic act for financial support to the Turkish Cypriot community beyond those budget years, the Phare committee should also be continued for that purpose.

(7)

Regulation (EC) No 1085/2006 should therefore be amended accordingly,

(1)

in Article 19, the following paragraph is added:

(2)

in Article 25(1), the second subparagraph is replaced by the following:

‘Those Regulations, as well as Regulation (EC) No 2666/2000, shall continue to apply for legal acts and commitments implementing the budget years preceding 2007, for the implementation of Article 31 of the Act concerning the conditions of accession of the Republic of Bulgaria and Romania and the adjustments to the Treaties on which the European Union is founded (*1) and for the implementation of Article 3 of Council Regulation (EC) No 389/2006 of 27 February 2006 establishing an instrument of financial support for encouraging the economic development of the Turkish Cypriot community (*2).

(*1)   OJ L 157, 21.6.2005, p. 203."

(*2)   OJ L 65, 7.3.2006, p. 5.’;"

(3)

in Annex I, the following entries are inserted after the entry concerning Croatia:

(4)

in Annex II, the following entries are deleted:

(1)

It is necessary to clarify the rules on transit through international areas of airports to ensure legal certainty and transparency.

(2)

Third-country nationals subject to the airport transit visa requirement pursuant to Article 3(1) and (2) of Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) (2), who hold a valid visa issued by a Member State, Canada, Japan or the United States of America or who hold a valid residence permit issued by a Member State, Andorra, Canada, Japan, San Marino or the United States of America, are exempt from the airport transit visa requirement. It should be clarified that this exemption also applies to holders of valid visas or residence permits issued by Member States which did not take part in the adoption of Regulation (EC) No 810/2009 and by the Member States which do not yet apply the provisions of the Schengen acquis in full.

(3)

As regards third-country nationals holding a valid visa, the exemption should apply when they travel to the issuing country or to any other third country and when they return from the issuing country after having used the visa.

(4)

Since the objective of this Regulation, namely to clarify the rules on transit through international areas of airports, cannot be sufficiently achieved by the Member States and can therefore be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(5)

As regards Iceland and Norway, this Regulation constitutes a development of the provisions of the Schengen acquis within the meaning of the Agreement concluded by the Council of the European Union and the Republic of Iceland and the Kingdom of Norway concerning the latters’ association with the implementation, application and development of the Schengen acquis (3) which fall within the area referred to in Article 1, point B of Council Decision 1999/437/EC of 17 May 1999 on certain arrangements for the application of that Agreement (4).

(6)

As regards Switzerland, this Regulation constitutes a development of the provisions of the Schengen acquis within the meaning of the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis (5) which fall within the area referred to in Article 1, point B of Decision 1999/437/EC read in conjunction with Article 3 of Council Decision 2008/146/EC (6).

(7)

As regards Liechtenstein, this Regulation constitutes a development of the provisions of the Schengen acquis within the meaning of the Protocol between the European Union, the European Community, the Swiss Confederation and the Principality of Liechtenstein on the accession of the Principality of Liechtenstein to the Agreement between the European Union, the European Community and the Swiss Confederation on the Swiss Confederation’s association with the implementation, application and development of the Schengen acquis (7) which fall within the area referred to in Article 1, point B of Decision 1999/437/EC read in conjunction with Article 3 of Council Decision 2011/350/EU (8).

(8)

In accordance with Articles 1 and 2 of the Protocol (No 22) on the position of Denmark, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union, Denmark is not taking part in the adoption of this Regulation and is not bound by it or subject to its application. Given that this Regulation builds upon the Schengen acquis, Denmark shall, in accordance with Article 4 of that Protocol, decide within a period of 6 months after the Council has decided on this Regulation whether it will implement it in its national law.

(9)

This Regulation constitutes a development of the provisions of the Schengen acquis in which the United Kingdom does not take part, in accordance with Council Decision 2000/365/EC of 29 May 2000 concerning the request of the United Kingdom of Great Britain and Northern Ireland to take part in some of the provisions of the Schengen acquis (9); the United Kingdom is therefore not taking part in its adoption and is not bound by it or subject to its application.

(10)

This Regulation constitutes a development of the provisions of the Schengen acquis in which Ireland does not take part, in accordance with Council Decision 2002/192/EC of 28 February 2002 concerning Ireland’s request to take part in some of the provisions of the Schengen acquis (10); Ireland is therefore not taking part in its adoption and is not bound by it or subject to its application.

(11)

As regards Cyprus, this Regulation constitutes an act building upon or otherwise related to the Schengen acquis within the meaning of Article 3(1) of the 2003 Act of Accession.

(12)

As regards Bulgaria and Romania, this Regulation constitutes an act building upon or otherwise related to the Schengen acquis within the meaning of Article 4(1) of the 2005 Act of Accession,

‘(b)

third-country nationals holding a valid residence permit issued by a Member State which does not take part in the adoption of this Regulation or by a Member State which does not yet apply the provisions of the Schengen acquis in full, or third-country nationals holding one of the valid residence permits listed in Annex V issued by Andorra, Canada, Japan, San Marino or the United States of America guaranteeing the holder’s unconditional readmission;

(c)

third-country nationals holding a valid visa for a Member State which does not take part in the adoption of this Regulation, for a Member State which does not yet apply the provisions of the Schengen acquis in full, or for Canada, Japan or the United States of America, when travelling to the issuing country or to any other third country, or when, having used the visa, returning from the issuing country;’.