The proposal was amended as follows:

Text proposed by the Commission(1)   Amendments by Parliament (Amendment 1) Recital 4    (4) Whereas such assistance will be fully effective only in the context of progress towards free and open democratic societies that respect human rights, and towards market-oriented economic systems;    (4) Whereas such assistance will be fully effective only in the context of progress towards free and open democratic societies that respect human rights, minority rights and the rights of the indigenous peoples, and towards market-oriented economic systems; whereas such progress is vital to the continuation of assistance; (Amendment 2) Recital 5    (5) Whereas further assistance is required to promote nuclear safety in the New Independent States;    (5) Whereas further assistance is required to promote nuclear safety and alternative energy sources in the New Independent States; (Amendment 3) Recital 6    (6) Whereas the continued provision of assistance will contribute to the attainment of shared objectives, notably in the context of the Partnership and Cooperation Agreements and economic cooperation agreements concluded with the New Independent States and Mongolia;    (6) Whereas the continued provision of assistance will contribute to the attainment of shared objectives, notably in the context of the Partnership and Cooperation Agreements concluded with the New Independent States and Mongolia; (Amendment 4) Recital 8    (8) Whereas the assistance shall take into account the differing needs and priorities of the principal regions covered by this regulation;    (8) Whereas the assistance shall take into account the differing needs and priorities of the principal regions covered by this regulation and whereas the most appropriate instruments for intervention in the various regions will have to be determined; (Amendment 5) Recital 9    (9) Whereas experience has shown that Community assistance will be all the more effective when it is concentrated on a restricted number of areas within each partner country;    (9) Whereas experience has shown that Community assistance will be all the more effective when it is concentrated on a restricted number of areas within each partner country and directed towards the development and strengthening of economic and social cohesion in the partner countries ; (Amendment 6) Recital 11    (11) Whereas regional cooperation, particularly in relation to the Northern Dimension and in the Black Sea region, should be encouraged;    (11) Whereas regional cooperation, particularly in relation to the Northern Dimension and in the Black Sea region, should be encouraged; whereas it should be possible for appropriations approved on the basis of this Regulation to be used to fund the recipient countries" share of projects under the Interreg initiative; (Amendment 7) Recital 14    (14) Whereas the long-term sustainability of reform will require due emphasis on the social aspects of reform and the development of the civil society;    (14) Whereas the long-term sustainability of reform will require due emphasis on the social aspects of reform and the development of the civil society and improving contacts between citizens; whereas particular consideration needs to be given to projects making lasting improvements to living conditions for children and young people; (Amendment 8) Recital 15a (new) (15a) Whereas projects should encourage balanced regional development and consideration should be given to the regions" own wishes; (Amendment 9) Recital 17    (17) Whereas the quality of the assistance shall be improved by selecting a proportion of projects on a competitive basis;    (17) Whereas the quality of the assistance shall be improved by selecting a proportion of projects on a competitive basis and on the basis of their contribution to economic and social development ; (Amendment 10) Recital 18    (18) Whereas, in order properly to meet the most acute needs of the New Independent States and Mongolia at the present stage of their economic transformation, it is necessary to permit a certain amount of the financial allocation to be used for economically sound investment financing, notably in the areas of cross-border cooperation, promotion of SMEs, environmental infrastructure and networks of strategic importance to the Community;    (18) Whereas, in order properly to meet the most acute needs of the New Independent States and Mongolia at the present stage of their economic transformation, it is necessary to permit the financial allocation to be used for economically sound investment financing, notably in the areas of cross-border cooperation, promotion of SMEs, environmental infrastructure and networks of strategic importance to the Community; (Amendment 11) Recital 19a (new) (19a) Whereas, in many cases, this assistance may with advantage be supplied via non-governmental organisations; (Amendment 12) Recital 22a (new) (22a) Whereas the Commission should develop a specific communications strategy to raise the profile of the programmes and improve the dissemination of experience to a noticeable degree; (Amendment 13) Recital 23    (23) Whereas the European Council at its meeting in Rome also stressed the importance of effective coordination by the Commission of the efforts made in the former Union of Soviet Socialist Republics by the Community and its Member States acting individually ;    (23) Whereas in addition to coordination between the efforts undertaken in the New Independent States by the Community and the Member States individually, there must also be improvements in coordination between operations launched under Community political cooperation (first pillar) and those launched under common foreign and security policy (CFSP) (second pillar) ; (Amendment 14) Article 1 A programme to promote economic reform and recovery in the partner states listed in Annex I (hereinafter called 'the partner states`) shall be implemented by the Community from 1 January 2000 to 31 December 2006 in accordance with the criteria laid down in this Regulation. A programme to promote economic reform and recovery and the development of the rule of law and civil society in the partner states listed in Annex I (hereinafter called 'the partner states) shall be implemented by the Community from 1 January 2000 to 31 December 2006 in accordance with the criteria laid down in this Regulation. (Amendment 15) Article 2(1)    1. The programme shall provide assistance to support reforms in progress in the partner states for measures aimed at bringing about the transition to a market economy and reinforcing democracy and the rule of law.    1. The programme shall provide assistance to support reforms in progress in the partner states for measures aimed at bringing about the transition to a social market economy and reinforcing democracy and the rule of law. (Amendment 16) Article 2(3)    3. The programme shall aim to maximise impact through concentration on a limited number of large-scale initiatives. To this end, the indicative and action programmes referred to below shall cover at most three of the eligible areas of cooperation listed in Annex II. Where applicable, support for nuclear safety shall be provided in addition to the three areas. Concentration shall reflect the differing needs and priorities of the partner country as outlined in the following paragraph.    3. The programme shall aim to maximise impact through concentration on a limited number of high-profile large-scale initiatives, and by keeping to a minimum the funding of preparatory studies, which should be carried out solely when the optimum conditions for launching the action are present. To this end, the indicative and action programmes referred to below shall cover at most three of the eligible areas of cooperation listed in Annex II. Where applicable, support for nuclear safety shall be provided in addition to the three areas. Concentration shall reflect the differing needs and priorities of the partner country as outlined in the following paragraph. (Amendment 17) Article 2(4)    4. The programme shall take into account the differing needs and priorities of the principal regions covered by the regulation and in particular the need to promote democracy and the rule of law. In the Western NIS and the Caucasus particular attention shall be given to creating a favourable investment climate, promoting regional cooperation and building a wider area of cooperation across Europe. In Russia particular attention shall be given to reinforcing the rule of law, strengthening the economic and financial framework, and promoting industrial cooperation and partnership. In Central Asia and Mongolia particular attention shall be given to strengthening democracy and good governance, supporting the development of networks, and promoting fundamental, sustainable, economic reform.    4. The programme shall take into account the differing needs and priorities of the principal regions covered by the regulation and in particular the need to promote democracy and the rule of law, and to strengthen the legislative framework and the functioning of civil society. These regions shall be determined by the Commission in consultation with the partner countries, where possible together with common priorities among the countries of each region . In the Western NIS and the Caucasus particular attention shall be given to creating a favourable investment climate, promoting regional cooperation and building a wider area of cooperation across Europe. In Russia particular attention shall be given to reinforcing the rule of law, strengthening the economic and financial framework, and promoting industrial cooperation and partnership. In Central Asia and Mongolia particular attention shall be given to strengthening democracy and good governance, supporting the development of networks, and promoting fundamental, sustainable, economic reform. (Amendment 18) Article 2(5), 2nd and 3rd subparagraphs Inter-state and inter-regional cooperation shall primarily serve to assist the partner states to identify and pursue actions which are best undertaken on a multi-country, rather than a national level such as the promotion of networks, environmental cooperation and actions in the area of justice and home affairs. Inter-state and inter-regional cooperation shall primarily serve to assist the partner states to identify and pursue actions which are best undertaken on a multi-country, rather than a national level such as the promotion of networks, energy networks , environmental cooperation and awareness-raising and actions in the area of justice and home affairs. Cross-border cooperation shall primarily serve to: (i) assist border regions in overcoming their specific developmental problems stemming from their relative isolation, (ii) encourage the linking of networks on both sides of the border, e.g. border-crossing facilities, and (iii) accelerate the transformation process in the partner states through their cooperation with border regions in the Union or Central and Eastern Europe (iv) reduce transboundary environmental risks and pollution. Cross-border cooperation shall primarily serve to: (I) assist border regions in overcoming their specific developmental problems stemming from their relative isolation, (ii) encourage the linking of networks on both sides of the border, e.g. border-crossing facilities, and (iii) accelerate the transformation process in the partner states through their cooperation with border regions in the Union or Central and Eastern Europe (iv) reduce transboundary environmental risks and pollution, and raise environmental awareness . (Amendment 19) Article 2(6)    6. In the area of nuclear safety, the programme shall focus on three priorities: (i) supporting the reinforcement of the nuclear safety culture and the application of efficient safeguards, in particular through support for the regulatory authorities; (ii) contributing to international initiatives, such as those outlined in the context of the G7; and (iii) supporting spent fuel and nuclear waste management, notably in Northwest Russia. As necessary, on-site assistance at nuclear power plants which aims to contribute to an efficient transfer of safety culture and know how at the plant level shall be implemented in the short term.    6. In the area of nuclear safety, the programme shall focus on three priorities: (i) supporting the reinforcement of the nuclear safety culture and the application of efficient safeguards, in particular through support for the regulatory authorities and the nuclear power station management authorities ; (ii) contributing to international initiatives, such as those outlined in the context of the G7; and (iii) supporting spent fuel and nuclear waste management and reprocessing , notably in Northwest Russia. As necessary, on-site assistance at nuclear power plants which aims to contribute to an efficient transfer of safety culture and know how at the plant level shall be implemented in the short term. (Amendment 20) Article 2(7)    7. Measures shall be implemented taking into account the objective of promoting stability, through support for sustainable economic, environmental and social development, and taking account of the evolving needs, absorption capacity and progress towards democratic and market-orientated reform in the partner states.    7. Measures shall be implemented taking into account the objective of promoting stability, through support for sustainable economic development, environmental development and social development, and taking account of the evolving needs, absorption capacity and progress towards democratic and market-orientated reform in the partner states. (Amendment 21) Article 3(4)    4. Action programmes based on the indicative programmes referred to in the preceding paragraph shall be adopted on an annual or bi-annual basis in accordance with the procedure provided for in Article 10. These action programmes shall include a list of the projects to be financed within the areas of cooperation set out in Annex II. The content of the programmes shall be determined in sufficient detail, so as to enable the Committee referred to in Article 10 to deliver its opinion.    4. Action programmes based on the indicative programmes referred to in the preceding paragraph shall be adopted on an annual or bi-annual basis in accordance with the procedure provided for in Article 10. These action programmes shall include an indicative list of the projects to be financed within the areas of cooperation set out in Annex II. The content of the programmes shall be determined in sufficient detail, so as to enable the Committee referred to in Article 10 to deliver its opinion. (Amendment 22) Article 3(5)    5. The measures outlined in the national action programmes shall be reflected in financing memoranda agreed between the Commission and each partner states. These shall be based on a dialogue addressing the joint interests of the Community and the partner states, particularly in the context of the Partnership and Cooperation Agreements.    5. The measures outlined in the national action programmes shall be reflected in financing memoranda agreed between the Commission and each partner state. These shall be based on a dialogue addressing the joint interests of the Community and the partner states, particularly in the context of the Partnership and Cooperation Agreements, and shall set out the legal provisions, in particular as regards tax and customs matters and payments, which will apply in the implementation of the projects. (Amendment 23) Article 3(7)    7. In the event of severe political or economic crisis in one of the partner states or the threat thereof, a special programme of support may be adopted in accordance with the procedure outlined in Article 10 .    7. In the event of severe political or economic crisis in one of the partner states or the threat thereof, a special programme of support may be adopted by the Council, acting by qualified majority on a proposal by the Commission, after consulting the European Parliament . (Amendment 24) Article 5(1), 2nd indent    - twinnings and industrial cooperation based on partnerships between public and private organisations from the European Union and partner countries.    - twinnings and industrial cooperation based on partnerships between public and private organisations from the European Union and partner countries; twinning will in particular facilitate training schemes for the development of civil society in the recipient countries . (Amendment 25) Article 5(3)    3. The assistance shall also cover costs related to the preparation, implementation, monitoring, audit and evaluation of the programme, as well as costs concerning information.    3. The assistance shall, within the limits fixed by the budgetary authority in the course of the annual budgetary procedure , also cover costs related to the preparation, implementation, monitoring, audit and evaluation of the programme, as well as costs concerning information. (Amendment 26) Article 5(4)    4. The measures can be carried out, where appropriate , on a decentralised basis. The final recipients of Community assistance shall be closely involved in the preparation and execution of the projects. Wherever possible, the identification and preparation of the projects shall be carried out directly at regional and local level.    4. The measures should be carried out, where possible , on a decentralised basis, subject to the required level of control by the Commission over their implementation. . The final recipients of Community assistance shall be closely involved in the preparation and execution of the projects. Wherever possible, the identification and preparation of the projects shall be carried out directly at regional and local level. To this end the Commission shall establish an appropriate level of local representation. (Amendment 27) Article 5(5)    5. Projects will, where appropriate, be implemented in phases. Support for subsequent phases will depend upon the successful implementation of previous phases.    5. Projects will, where appropriate, be implemented in phases. Support for subsequent phases will depend upon the successful implementation of previous phases, provided that monitoring activities do not impair the continuity of the programmes. (Amendment 28) Article 5(6)    6. The involvement of local experts in project implementation will be encouraged .    6. In identifying and selecting projects forming part of action programmes, the Commission shall give priority to those that provide for significant involvement by local agents (consultants, experts or NGOs) and local authorities, provided this does not detract from the character of the project or the underlying European concept of the programme . (Amendment 29) Article 6(1)    1. The annual appropriations shall be authorised by the budgetary authority within the limits of the financial perspective .    1. The annual appropriations shall be fixed by the budgetary authority in the light of the stage reached in implementing the programme and in accordance with the principles of sound financial management. (Amendment 30) Article 6(2) 2. A maximum of 25% of the annual budget could be allocated to investment-related activities as described in Annex III. A maximum of 25% of the annual budget could be allocated to the "Incentive Scheme” as outlined in Article 4. Deleted (Amendment 31) Article 9(3)    3. Taxes, duties and the purchase of immovable property shall not be funded by the Community.    3. The financing memoranda concluded on the basis of Article 3(5) must stipulate that taxes, duties and the purchase of immovable property shall not be funded by the Community and that supplies imported into the partner country for the implementation of a project funded by the Community shall not be subject to customs duties . (Amendment 32) Article 10 (1) to (6)    1. The Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission, to be known as the 'committee for cooperation with the New Independent States and Mongolia' hereinafter referred to as the 'committee'. 2. The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the EC Treaty. The chairman shall not vote.    1. The Commission, on the basis of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission( 1 ), and in particular Articles 2 and 4 thereof, shall be assisted by a management committee composed of the representatives of the Member States and chaired by the representative of the Commission, to be known as the 'committee for cooperation with the New Independent States and Mongolia' hereinafter referred to as the 'committee'. _______________ ( 1 ) OJ L 184, 17.7.1999, p. 23. 3.The Commission may adopt measures which shall apply immediately. However, if these measures are not in accordance with the opinion of the committee they shall be communicated by the Commission to the Council forthwith. In that event, the Commission may defer application of the measures which it has decided on for not more than one month from the date of such communication. 4.The Council, acting by qualified majority, may take a different decision within the time limit provided for by the third paragraph. 5.The committee shall adopt its rules of procedure by qualified majority. 6.The Commission shall keep the committee regularly informed, supplying specific, detailed information on the contracts awarded for the implementation of the projects and programmes. (Amendment 33) Article 10(7)    7. The European Parliament shall be kept regularly informed of the implementation of the programmes.    7. The European Parliament shall be kept regularly informed of the implementation of the programmes, and in particular of the sums allocated to projects for children and young people . (Amendment 34) Article 10a (new) Article 10a The Commission shall inform the budgetary authority every three months of the stage reached in the financial implementation of the programme, indicating, by country and by sector, the commitments and payments carried out and any discrepancies, by country, between the programming and the financial implementation. The Commission shall inform the committee and the European Parliament, at most one month after its decision, of the actions and projects approved, stating their amount, nature and partners. (Amendment 35) Article 11, 1st paragraph The Commission shall, together with the Member States and on the basis of a reciprocal and regular exchange of information, including exchange of information on the spot, seek the effective coordination of the assistance efforts undertaken by the Community and individual Member States, in order to increase the coherence and complementarity of their cooperation programmes. The Commission shall, on the basis of a reciprocal and regular exchange of information, including exchange of information on the spot, ensure the effective coordination of the assistance efforts undertaken by the Community and individual Member States, in order to increase the coherence and complementarity of their cooperation programmes. (Amendment 36) Article 12 Each year the Commission shall present a progress report on the implementation of the assistance programme. This report shall include an evaluation of the assistance already provided. The report shall be addressed to the Member States, the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. Each year, not later than 1 September, the Commission shall present a progress report on the implementation of the programme. This report shall include an evaluation of the assistance already provided, the projects completed and coordinating measures within the Commission and between the Council and the Commission in implementing the different Union intervention mechanisms in the countries benefiting from the programme . The report shall be addressed to the Member States, the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions. (Amendment 37) Article 13, 1st paragraph When an essential element for the continuation of cooperation through assistance is missing, in particular in cases of violation of democratic principles and human rights, the Council may, on a proposal from the Commission, acting by a qualified majority, decide upon appropriate measures concerning assistance to a partner state. When an essential element for the continuation of cooperation through assistance is missing, in particular in cases of violation of democratic principles and human rights, the Council may, on a proposal from the Commission, acting by a qualified majority after consulting the European Parliament, decide to suspend assistance to a partner state. (Amendment 38) Article 14a (new) Article 14a Pending adoption of the regulation harmonising management procedures for Community programmes on cooperation with third countries, the procedural rules and management principles adopted during the previous programme shall be applicable, subject to the provisions of the Financial Regulation. By way of derogation, however, the commitment appropriations entered each year in the budget may be authorised (committed) with the approval of each contract. (Amendment 51) Article 14b (new) Article 14b In accordance with the European Parliament's resolution of 18 November 1999 on the situation in Chechnya, the conclusions of new contracts covering measures for the benefit of Russia to be funded in the context of the budget for the 2000 financial year shall be suspended (with the exception of the TACIS line for democracy and social development) until a satisfactory solution has been found in Chechnya, in accordance with the European Union's recommendations and on the basis of the procedure established in Article 13. (Amendment 40) Annex II(1), 7th indent    - support for the implementation of international commitments    - technical support for the implementation of international commitments (Amendment 41) Annex II(3), 1st indent    - reform of the health, pension, social protection and insurance systems    - reform or where appropriate establishment of health, pension, social protection and insurance systems (Amendment 42) Annex II(3), 3rd indent    - assistance for social reconstruction    - where appropriate, assistance for the establishment of a social security system (Amendment 43) Annex II(5), indents    - development of sustainable environmental policies and practices    - development of sustainable environmental policies and practices, including environmental awareness-raising amongst policy-makers    - promotion of harmonisation of environmental standards with EU norms    - promotion of harmonisation of environmental standards with EU norms    - promotion of sustainable use and management of natural resources, including efficient energy usage and improvement of environmental infrastructure    - promotion of sustainable use and management of natural resources, including efficient energy usage, for example: use of CHP and temperature controls in buildings, and improvement of environmental infrastructure (Amendment 44) Annex II(6), 3rd indent    - improvement of distribution and access to markets    - improvement of processing infrastructure, distribution and access to markets (Amendment 45) Annex III, final paragraph Priority sectors for investment financing would include: cross-border cooperation, border infrastructure, promotion of SMEs, environmental infrastructure and networks. Priority sectors for investment financing would include: cross-border cooperation, border infrastructure, promotion of SMEs, especially in structurally weak regions, environmental infrastructure and networks.

(1) OJ C 37, 11.2.1999, p. 8.

(Consultation procedure)

The European Parliament,

-  having regard to the Commission proposal to the Council (COM(1998) 753 (1)

-  having been consulted by the Council pursuant to Article 308 of the EC Treaty and Article 203 of the Euratom Treaty (C5-0038/1999 ),

-  having regard to Rule 67 of its Rules of Procedure,

-  having regard to the report of the Committee on Industry, Trade, Research and Energy and the opinions of the Committee on Foreign Affairs, Security and Defence Policy and the Committee on Budgets (A5-0081/1999 ),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to alter its proposal accordingly, pursuant to Article 250(2) of the EC Treaty and Article 119, second paragraph, of the Euratom Treaty;

3.  Calls on the Council to notify Parliament should it intend to depart from the text approved by Parliament;

4.  Calls for the conciliation procedure to be initiated should the Council intend to depart from the text approved by Parliament;

5.  Asks to be consulted again should the Council intend to amend the Commission proposal substantially;

6.  Instructs its President to forward its position to the Council and Commission.

(1) OJ C 37, 11.2.1999, p. 8.