51996PC0009

Proposal for a Council Decision repealing Decision 94/939/EC providing further macro-financial assistance for the Slovak Republic

(96/C 84/07)

COM(96) 9 final - 96/0018(CNS)

(Submitted by the Commission on 24 January 1996)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof,

Having regard to the proposal from the Commission, submitted after consulting the Monetary Committee,

Having regard to the opinion of the European Parliament,

Whereas, by Decision 94/939/EC (1), the Council approved further marcro-financial assistance for the Slovak Republik of up to ECU 130 million in the form of a medium-term loan facility;

Whereas, however, the Commission and the Slovak authorities have not made sufficient progress in agreeing on the economic policy conditions to be attached to this facility, in particular on an early removal of the 10 % surcharge on imports of consumer goods introduced by the Slovak Republic in March 1994;

Whereas furthermore the Slovak Government decided in June 1995 to cancel the shares-for-vouchers mass privatization scheme; whereas this and other decisions of the Government have resulted in a slow formulation and implementation of privatization and other key structural reform policies;

Whereas the mid-term review of the economic programme agreed between the Slovak Government and the IMF and supported by a 'stand-by arrangement` has not been completed; whereas discussions between the Slovak authorities and the World Bank on an 'Enterprise and Financial Sector Adjustment Loan` have been discontinued;

Whereas the balance of payments situation and foreign exchange reserve position of the Slovak Republic have strengthened substantially; whereas the Slovak Republic's access to the international private capital markets has considerably improved;

Whereas the strengthening of the country's external financial position has allowed the Slovak Republic to stop making purchases under the 'stand-by arrangement` approved by the IMF on 22 July 1994;

Whereas, in these circumstances, there is no ground for the implementation of Community macro-financial assistance for the Slovak Republik; whereas this assistance should therefore be discontinued;

Whereas the Treaty does not provide, for the adoption of this Decision, powers other than those of Article 235,

HAS DECIDED AS FOLLOWS:

Sole article

Decision 94/939/EC is hereby repealed.

(1) OJ No L 366, 31. 12. 1994, p. 30.