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Briefing No 33
The PHARE Programme and the enlargement of the European Union

The views expressed in this document are not necessarily those of the European Parliament as an institution.


CONTENTS

I. SUMMARY

Definition, organisation and management of the PHARE Programma

II. EU POLICY ON THE PHARE PROGRAMME

III. PRINCIPLES GOVERNING PHARE

IV. PHARE PRIORITIES

Programme objectives
Implementation
Implementation of the PHARE Programme

V. TYPES OF PHARE PROGRAMMES

VI. PHARE AND TACIS DEMOCRACY PROGRAMMES (PTDP) AND THE POSITION OF THE EUROPEAN PARLIAMENT

VII. POSITION OF THE EUROPEAN COMMISSION

VIII. POSITION OF THE EUROPEAN COUNCIL

IX. CONCLUSIONS

ANNEX

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I. SUMMARY

The European Union member states and the countries of Central and Eastern Europe share the same ideal and vision of their common future: seizing the historic opportunity for building a larger democratic family of European nations. In order to achieve this goal, a policy of closer political, economic and cultural integration needs to be pursued by the European Union and its Eastern European partners. In the aftermath of the 1989 events, the latter expressed their desire to rebuild their economies in order to catch up with the changes that have taken place in western Europe after the Second World War. The PHARE Programme is the European Union's initiative which provides grant finance to support its partner countries to the stage where they are ready to assume the obligations of membership of the European Union.

Definition, organisation and management of the PHARE Programme

The term "PHARE" - Poland and Hungary Assistance for the Restructuring of the Economy - initially described as the international efforts to provide economic support to the emerging Polish and Hungarian democracies - is the EU's main financial instrument for accession of the Central and Eastern European countries.It was launched as a specific EC programme, initiated by Council Regulation No. 3906/89. Its funding is used to channel technical, economic and infrastructural expertise and assistance to recipient states. The aim is to help these countries achieve market economies based on free enterprise and private initiative.

The PHARE budget is established by the European Union's budgetary authorities - the European Parliament and the Council of the EU. The responsible authority for the ongoing management of Phare funds is the European Commission. Implementation of Phare is largely decentralised to the recipient countries, and is becoming more so as countries develop the systems to manage the programme. Within each country there is a National Coordinator, usually a minister, who supervises Phare through planning, programming and implementation. The start-up and management of the programme is handled by Programme Management Units (PMUs), usually run by local civil servants from the relevant ministries, and other implementing agencies. The PMUs are the driving force of Phare on the ground. They are involved in the preparation, implementation and monitoring of Phare projects, and are also responsible for launching tenders for supplies and services.


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© Enlargement: 4 December 1998