Community Research and Development Information Service - CORDIS

Official Journal Reference

L 375 of 1989-12-23

Legislative Reference

3906/89/CEE of 1989-12-18
To support the process of reform in certain countries of Central and Eastern Europe, in particular by financing or participating in the financing of projects or cooperation measures aimed at economic restructuring in the areas of agriculture, industry, investment, energy, training, environmental protection, trade and services.

Abstract

On 18 December 1989, the Council of the European Communities adopted Regulation (EEC) No 3906/89 in order to implement economic aid measures in favour of the Republic of Hungary and the Polish People's Republic. Following this, a Council Decision of 22 February 1990 (Official Journal No L 58 of 7.3.1990) granted to Hungary a medium-term loan facility of a maximum amount of ECU 870 million in principal in order to permit that country to overcome the difficulties of structural adjustment of its economy.

The Group of 24 countries and the Community decided at the ministerial meeting on 4 July 1990 that the situation in certain other countries of Central and Eastern Europe warranted an extension of the economic restructuring aid to these countries and Regulation (EEC) No 3906/89 was amended to include Bulgaria, Czechoslovakia, German Democratic Republic, Hungary, Poland, Romania and Yugoslavia.

Subdivision

Information not presently available.

Implementation

The Commission administers the aid, assisted by a committee consisting of representatives of the Member States and chaired by the Commission representative. An observer from the European Investment Bank takes part in the Committee's proceedings with regard to questions concerning the Bank.

Aid is granted by the Community, either independently or in the form of cofinancing with the Member States, the European Investment Bank, third countries or multilateral bodies or the recipient countries themselves. The aid is generally in the form of grants which may generate funds that can be used for financing cooperation projects or measures. It may cover expenditure on imports and local expenditure needed to carry out the projects and programmes. Taxes, duties and charges and the purchase of property are excluded from Community financing. Maintenance and operating costs may be covered for training and research programmes and for other projects but for the latter such costs are covered only at the start-up stage and are degressive. In the case of cofinancing, account is taken in each case of the procedures applied by the other providers of capital.

In the case of assistance exceeding ECU 50000 for which the Community is the sole source of external aid, participation in invitations to tender and contracts are open on equal terms to all natural and legal persons of the Member States and the countries concerned.

Each year the Commission draws up a report on the implementation of cooperation operations which is sent to the European Parliament, the Council and the Economic and Social Committee.
Record Number: 302 / Last updated on: 2014-03-05