The proposal was amended as follows:

Text proposed by the Commission(1)   Amendments by Parliament (Amendment 1) Recital 1a (new) (1a) There is an unacceptable mismatch in the EU's political and economic agenda between the absolute priority for enlargement of the EU to include the countries of Northern, Central and Eastern Europe and the importance attached to the Barcelona process which had scarcely made significant progress in recent years. (Amendment 2) Recital 1b (new) (1b) Article 3 of the EU Treaty points to the need for consistency in all measures adopted under the headings of external relations, security, economic, and development policies. (Amendment 3) Recital 2    (2) The Mediterranean region constitutes a priority area for the European Union and the political, economic and social development of the Mediterranean partners is a challenge of ever-increasing proportions.    (2) The Mediterranean region constitutes a strategic priority area for the European Union and the political, economic and social development of the Mediterranean partners is a challenge of ever-increasing proportions. The budgetary resources so far provided neither match the stated ambitions nor translate into a capacity for effective implementation. (Amendment 4) Recital 2a (new) (2a) Dialogue between cultures and societies should be intensified, giving particular support to training, development, and decentralised cooperation activities. (Amendment 5) Recital 3a (new) (3a) Regional cooperation must be strengthened through the allocation thereto of greater resources and increased political and technical support, beginning with certain areas which are already consolidated, such as the Maghreb countries. (Amendment 6) Recital 4a (new) (4a) It is imperative that the new MEDA regulation should guarantee balanced and sustainable political, economic and social development and respect for the environment while involving civil society in the framing and evaluation of programmes and projects. The importance of "small-scale" projects must be taken into account in this respect. (Amendment 7) Recital 5    (5) Over the period 1995-98, Regulation (EC) No 1488/96 has been implemented satisfactorily but it is now necessary to streamline decision-making procedures in order to permit more efficient implementation of Community assistance.    (5) Over the period 1995-98, Regulation (EC) No 1488/96 has been implemented less than satisfactorily, and so it is now necessary to streamline decision-making procedures in order to permit more efficient implementation of Community assistance. (Amendment 8) Recital 8a (new) (8a) Whereas financial aid for national programmes for Turkey under MEDA should be transferred to Heading 7 once a pre-accession instrument has been agreed with that country; (Amendment 9) Recital 10    (10) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities" financial interests establishes a common legal framework for all the fields of the Communities" own resources and expenditure. Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities" financial interests against fraud and other irregularities applies to all areas of the Communities" activity without prejudice to the provisions of the Community rules specific to the different policy areas.    (10) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities" financial interests establishes a common legal framework for all the fields of the Communities" own resources and expenditure. Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities" financial interests against fraud and other irregularities applies to all areas of the Communities" activity without prejudice to the provisions of the Community rules specific to the different policy areas. There is a need to ensure that the European Investment Bank wholly fulfils its obligations under Regulation (EC) No 1073/1999 of the European Parliament and of the Council of 25 May 1999(1 ). ____________ ( 1 ) OJ L 136, 31.5.1999, p. 1. (Amendment 10) Recital 11    (11) Since the measures necessary for the implementation of this Regulation are management measures within the meaning of Article 2 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission, they should be adopted by use of the management procedure provided for in Article 4 of that Decision .    (11) The Commission implements the budget on its own responsibility, in accordance with Article 274 of the Treaty. The measures necessary for the implementation of this Regulation are primarily financial and therefore the sole responsibility of the Commission. The advisory committee procedure provided for in Article 3 of Council Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of implementing powers conferred on the Commission is the most appropriate procedure for the adoption of such measures . (Amendment 11) Recital 11a (new) (11a) The transparency of the Commission's procedures and activities has been guaranteed by the programme of administrative reform. Interinstitutional dialogue and exchange of information must be ensured as an essential requirement of all the new procedures. (Amendment 12) Recital 12a (new) (12a) In its resolutions of 8 October 1998 on cooperation with Mediterranean countries on matters of migration(1 ) and 30 March 2000 on Mediterranean policy(2 ), the European Parliament expressed the desire that Regulation (EC) No 1488/96 should be modified to take account of Parliament's position and its guidelines. ______________ (1 ) OJ C 328, 26.10.1998, p. 184. ( 2 ) Not yet published in OJ. (Amendment 13) ARTICLE 1(1) Article 1(3) (Regulation (EC) No 1488/96)    1. In Article 1, paragraph 3 is deleted .    1. In Article 1, paragraph 3 is replaced by the following: "3 The reference amount for implementation of this programme in the period from 2000 to 2006 shall be at least equal in real terms to the amount allocated in the preceding period. Within the annual budget, 85% shall be earmarked for cooperation between the Community and partner countries; 15% of the annual budget shall be earmarked for regional cooperation between the Community and at least two Mediterranean countries. The budgetary authority shall approve the annual appropriations in line with the financial perspective. " (Amendment 15) ARTICLE 1(1a) (new) Article 2(1a) (new) and (2) (Regulation (EC) No 1488/96) 1a. Article 2 is amended as follows:    (a) Paragraph 1a is inserted: '1a. The purpose of this Regulation, using the measures set out in paragraph 2, shall be to help implement initiatives of common interest related to the three aspects of Euro-Mediterranean cooperation, namely consolidation of political stability and democracy, the establishment of a Euro-Mediterranean free trade area, and the pursuit of economic and social cooperation, making the necessary preparations as regards human resources and adjustments to the production system and taking into account the human and cultural dimension.'    (b) Paragraph 2 is replaced by the following: "2. These support measures shall be implemented taking account of the objective of achieving long-term sustainable development, stability and prosperity, in particular in the fields of economic transition, sustainable economic and social development, protection of the environment and regional and cross-border cooperation. The objectives and details of the relevant procedures shall be as set out in Annex II." (Amendment 17) ARTICLE 1(b) (new) Article 4(1) and (2) (Regulation (EC) 1488/96) 1b. In Article 4, paragraphs 1 and 2 are replaced by the following: "1. The Commission shall ensure the effective coordination of the assistance efforts undertaken by the Community and the Member States, in order to increase the coherence and complementarity of their cooperation programmes. Such coordination shall be undertaken in agreement with the Member States, with particular regard to indicative programmes and projects, and on the basis of a reciprocal and regular exchange of information. In addition, the Commission shall promote coordination and cooperation with international financial institutions, the United Nations cooperation programmes and other donors.    2. The measures referred to in this Regulation may be adopted by the Community either independently or in the form of co-financing with the Mediterranean partners themselves or with public or private bodies of the Member States and the Bank, on the one hand, or multilateral bodies or third countries, on the other. Efforts should be made to ensure that the initiatives, particularly those at the regional level, are co-financed through the involvement of as wide a range of collaborators as possible." (Amendment 19) ARTICLE 1(2)(-a) (new) Article 5(2), 3rd subparagraph (Regulation (EC) No 1488/96) (-a) In paragraph 2, the third subparagraph is replaced by the following: "Programmes may be amended in the light of experience acquired, or progress achieved by the Mediterranean partners as regards structural reforms, industrial development, macro-economic stabilisation, and social advancement, or the outcome of cooperation under the new association agreements. " (Amendment 20) ARTICLE 1(3)(a) Article 6(1) (Regulation (EC) No 1488/96)    (a) In paragraph 1, the third sentence is replaced by the following: "Depending on market conditions, the subsidy shall be between 1% and 3%.    (a) Paragraph 1 is replaced by the following: "1. Community financing shall take the form of non-refundable aid or risk capital. Concerning cooperation measures in the field of the environment, it may take the form of interest rate subsidies granted by the Bank from its own resources to all the Mediterranean partners without exception." (Amendment 21) ARTICLE 1(4)(a) Article 7(1), 1st subparagraph (Regulation (EC) 1488/96) Measures under this Regulation may cover expenditure on imports of goods and services and local expenditure needed to carry out the projects and programmes. Direct budgetary support in favour of the beneficiary partner may also be covered to support economic reform . Taxes, duties and charges shall be excluded from Community financing.    1. Measures under this Regulation may cover expenditure on imports of goods and services and local expenditure needed to carry out the projects and programmes. In cooperation with the partner countries, the Commission shall ensure that supplies imported into the partner country in implementation of a project funded by the Community are not subject to customs duties. Taxes, duties and charges shall be excluded from Community financing. (Amendment 22) ARTICLE 1(4a) (new) Article 8(4) and (7) (Regulation (EC) No 1488/96) 4a. Article 8 is amended as follows:    (a) Paragraph 4 is replaced by the following: "4. The Commission, in liaison with the Member States, shall provide within the European Union and the MEDA partner countries on request full documentation and all necessary information on the MEDA programme and the participation requirements applying thereto."    (b) Paragraph 7 is replaced by the following: "7.The results of the invitations to tender including information on the number of received tenders, the date of the award of the contract, the name and the address of the successful tenders and the contract price shall be published in the Official Journal of the European Communities." (Amendment 24) ARTICLE 1(5)(a) Article 9(2), (3) and (4) (Regulation (EC) 1488/96)    (a) Paragraphs 2, 3 and 4 are replaced by the following:    (a) Paragraphs 1, 2, 3 and 4 are replaced by the following: "1. The guidelines for the indicative programmes referred to in Article 5(2) shall be adopted by the Council, acting by a qualified majority on a proposal from the Commission, following dialogue with the Mediterranean partners concerned and after informing the European Parliament. Together with its proposals, the Commission shall forward for information its overall financial programme planning, indicating in particular the total amount of the national and regional indicative programmes, as well as the allocation by beneficiary country and by priority sector of the overall amount adopted within those programmes. "2. The indicative programmes, the financing plans and any amendment to them shall be adopted by the Commission in accordance with the procedure referred to in Article 11(2).    2. The indicative programmes, the financing plans and any amendment to them shall be adopted by the Commission in accordance with the procedure referred to in Article 11(2).    3. Financing decisions, other than those relating to interest-rate subsidies on Bank loans and risk capital, that are not covered by the national or regional financing plans, shall be adopted individually in accordance with the procedure laid down in Article 11(2), subject to paragraph 4 of this Article.    3. Financing decisions, other than those relating to interest-rate subsidies on Bank loans and risk capital, shall be adopted individually in accordance with the procedure laid down in Article 11(2), subject to paragraph 4 of this Article.    4. Financing decisions referred to in paragraph 3 not exceeding 2 000 000 euro shall be adopted by the Commission if they form part of an overall allocation. An overall allocation shall be adopted in accordance with the procedure referred to in Article 11(2). The Committee established by Article 11(1) shall be informed systematically and promptly and in any event before its next meeting, of financing decisions not exceeding 2 000 000 euro."    4. Financing decisions referred to in paragraph 3 not exceeding 5 000 000 euro shall be adopted by the Commission if they form part of an overall allocation. An overall allocation shall be adopted in accordance with the procedure referred to in Article 11(2). The Committee established by Article 11(1) shall be informed in advance whenever the Commission intends taking financing decisions not exceeding 5 000 000 euro. At the request of a Member State, the Committee may take a decision on individual projects. " (Amendment 27) ARTICLE 1(6) Article 10(2) (Regulation (EC) No 1488/96)    2. In financing decisions taken under this Regulation and the assessments mentioned in Article 15, the Commission shall abide by the principles of sound financial management and, in particular, those of economy and cost-effectiveness referred to in the Financial Regulation.    2. In financing decisions taken under this Regulation and the assessments mentioned in Article 15, the Commission shall abide by the principles of guaranteed information and sound financial management and, in particular, those of economy and cost-effectiveness referred to in the Financial Regulation. (Amendment 28) ARTICLE 1 (7) Article 11(2) and (3) (Regulation (EC) No 1488/96)    2. Where reference is made to this Article, the management procedure laid down in Article 4 of Decision 1999/468/EC shall apply, in compliance with Article 7(3) thereof.    2. Where reference is made to this Article, the advisory procedure laid down in Article 3 of Decision 1999/468/EC shall apply. 2a. The European Parliament shall be informed by the Commission of committee proceedings on a regular basis. To that end, it shall receive agendas for committee meetings, draft measures submitted to the committees for the implementation of instruments adopted by the procedure provided for by Article 251 of the Treaty, and the results of voting and summary records of meetings and lists of the authorities and organisations to which the persons designated by the Member Sates to represent them belong. The European Parliament shall also be kept informed whenever the Commission transmits to the Council measures or proposals for measures to be taken.    3. The period provided for in Article 4(3) of Decision 1999/468/EC shall be three months.    3. The period provided for in Article 3(2) of Decision 1999/468/EC shall be three months. 3a.A representative of the Bank shall take part in the proceedings within the Committee without a right to vote. 3a.A representative of the Bank shall take part in the proceedings within the Committee without a right to vote. 3b. Individual financing decisions shall under no circumstances be submitted by the Commission to the Committee. (Amendment 29) ARTICLE 1(8)(ba) (new) Article 15(3a) (new) (Regulation (EC) No 1488/96)    (ba) Paragraph 3a is inserted: '3a. Where projects violate internationally recognised environmental standards, the Commission and the European Investment Bank may suspend and lower their payments.' (Amendment 14) ARTICLE 1(8)(c) Article 15(6) (Regulation (EC) No 1488/96)    (c) Paragraph 6 is deleted.    (c) Paragraph 6 is replaced by the following: '6. By 30 June 2001 the Commission shall submit proposals to amend the Regulation, transferring extensive management powers to the Commission delegations as part of the decentralisation process, which must go hand in hand with an appreciable increase in staff.' (Amendment 30) ARTICLE 1(8a) (new) Article 16 (Regulation (EC) 1488/96) 8a. Article 16 is replaced by the following: "Where an essential element for the continuation of cooperation is lacking, the Council, acting by a qualified majority on a proposal from the Commission and after consulting the European Parliament, may take a decision to suspend aid to a partner country." (Amendment 31) ANNEX (-1) (new) Annex II, Part I(a), 2nd and 3rd indents (Regulation (EC) 1488/96)    - 1. In Part I(a) the second and third indents are replaced by the following: "- the opening-up of markets and promotion of investment, industrial cooperation and trade between the European Community and the Mediterranean partners, as well as among the Mediterranean partners themselves,    - upgrading of economic infrastructure, possibly to include the financial and taxation systems,    - c reation of financial instruments to facilitate industrial cooperation between firms from the European Union and from the Mediterranean partners . " (Amendment 32) ANNEX (-1) (new) Annex II, Part I(a), 2nd, 3rd and 4th subparagraphs (new) (Regulation (EC) No 1488/96) In order to carry out the industrial cooperation initiatives set out in Annex II, the European Union shall set up a programme granting financing to projects which involve at least one European firm and at least one firm from the Mediterranean partners. The Commission, in consultation with the Mediterranean partners, shall establish the operational arrangements for implementing this programme, including eligibility and selection criteria, eligible costs, co-financing (up to 80% of eligible costs) and accounting and valuation principles. Priority will be given to industrial cooperation projects designed to improve the competitiveness and innovative capacity of SMEs, to create jobs, to improve working conditions and to develop sustainable and environment-friendly technologies. The Commission shall publish, together with the proposers, special invitations to submit proposals directly aimed at undertakings, who will be selected within a short time on the basis of pre-established criteria and the budget resources available. The financing of the proposals which are selected shall take the form of a subsidy contract. (Amendment 33) ANNEX (1) Annex II, Part I(b), 1st, 2nd and 3rd indents (Regulation (EC) 1488/96)    - the support programmes shall be designed to restore or, as the case may be, consolidate the major financial balances and to create an economic environment favourable to accelerated growth, while at the same time improving the well-being of the population; the support programmes may also target assistance to reforms inkey sectors with a view to the creation of a free-trade area with the Community;    - the support programmes shall be designed to restore or, as the case may be, consolidate the major financial balances and to create an economic environment favourable to accelerated growth, thereby seeking to improve the well-being of the population; the support programmes shall also contribute to reforms in the key sectors with a view to the creation of a free-trade area with the Community;    - the support programmes shall be adapted to the particular situation of each country and take account of economic and social conditions;    - the support programmes shall be adapted to the particular situation of each country and take account of economic and social conditions;    - the support programmes shall lay down measures intended, in particular, to alleviate the negative effects which the process of economic transition and the accomplishment of a Euro-Mediterranean free-trade area may have on social conditions and employment, especially for underprivileged sections of the population;    - the support programmes shall lay down measures intended, in particular, to accompany, as regards social conditions and employment, economic transition and the accomplishment of a Euro-Mediterranean free-trade area and to alleviate the negative effects which this process may have on social conditions and employment, especially for the most underprivileged social groups and sections of the population; (Amendment 34) ANNEX (1) Annex II, Part I(b), 4th indent (Regulation (EC) No 1488/96)    - disbursement of the support will be implemented in tranches in the form of direct budgetary support according to the compliance with the objectives and/or sectoral targets agreed within the support programme.    - disbursement of the support will be implemented in tranches in the form of direct budgetary support according to the compliance with the objectives and/or sectoral targets agreed within the support programme. Rapid disbursement is one of the main features of the support programmes. (Amendment 35) ANNEX (2) Annex II, Part II (Regulation (EC) 1488/96)    2. The eleventh indent of Part II is replaced by the following    2. Part II is replaced by the following: "II. Support for achieving a better socio-economic balance shall include in particular:    - the participation of citizens and civil society in the implementation of economic and social development measures,    - contributions to the improvement of social services, especially in the areas of health, family planning, water supplies, sanitation and housing, through support for the devising of a strategy and for pilot projects,    - the fight against poverty,    - harmonious and integrated rural and urban development and the improvement of urban living conditions,    - reinforced cooperation concerning fisheries and the sustainable exploitation of marine resources,    - protection and improvement of the environment, particular consideration being given to the precautionary and the preventive action principles in support for economic development, by means of reinforced cooperation concerning the environment, particularly within the framework of the Short and Medium Term Priority Environmental Action Plan (SMAP),    - adaptation of economic infrastructures, particularly in the sectors of transport, energy, rural development, information technology and telecommunications,    - integrated development of human resources to complement Member States" programmes, notably with regard to continuing vocational training in the context of industrial and agricultural cooperation, and improvement of the potential for scientific and technological research,    - strengthening democracy and respect for, and defence of, human rights, in particular through the cooperation of organisations, foundations and bodies recognised in the European Union and in the Mediterranean countries,    - cultural cooperation and youth exchanges,    - placement of students undergoing training, to improve their subsequent job prospects in their countries of origin, and of young trainees to be attached to European firms under temporary contracts,    - promotion of and education and job creation for women. The gender aspect will accordingly be taken into account in all the initiatives covered by this Regulation.    - transfer, where appropriate, of responsibility for managing and implementing smaller projects to the Community's external delegations in partner countries.    - cooperation and technical assistance in order to strengthen cooperation in the area of migration and the combat against illegal migration, including repatriation of illegal residents and trafficking in human beings , reinforcement of judicial cooperation in civil matters as well as cooperation to prevent and to combat crime, including illegal drug-trafficking."    - cooperation and technical assistance in order to strengthen cooperation in the area of migration and the combat against illegal migration, including repatriation of illegal residents,    - reinforcement of judicial cooperation in civil matters as well as cooperation to prevent and to combat crime, including illegal drug-trafficking and trafficking in human beings ." (Amendment 38) ANNEX (2a) (new) Annex II, Part III (Regulation (EC) 1488/96) 2a. Part III is amended as follows:    - subparagraph (a) is replaced by the following: "(a) establishing and developing structures for regional trade cooperation between Mediterranean partners and between the Mediterranean partners and the Union and its Member States;"    - subparagraph (aa) is inserted: "(aa) implementation of cooperation in international organisations, especially in the World Trade Organisation and the International Labour Organisation;"    - subparagraph (d) is replaced by the following: '(d) exchanges between civil society in the Union and the Mediterranean partners, particularly by stepping up measures carried out in the context of decentralised cooperation which    - has as its objective to identify the non-governmental beneficiaries of Community aid,    - will concentrate particularly on the networking of universities and researchers, local communities, associations, political and scientific foundations, trade unions, private business and non-governmental organisations, the media, and cultural institutions in the widest sense, and the other bodies listed at IV. The programmes must concentrate on promoting the participation and the emergence of civil society within the partner countries, in particular by encouraging information between networks and durable links between network partners.'

(1) OJ C 89 E, 28.3.2000, p. 4.

(Consultation procedure)

The European Parliament,

-  having regard to the Commission proposal to the Council (COM(1999) 494 )(1) ,

-  having been consulted by the Council pursuant to Article 308 of the EC Treaty (C5-0023/2000 ),

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

-  having regard to the report of the Committee on Industry, External Trade, Research and Energy and the opinions of the Committee on Foreign Affairs, Human Rights, Common Security and Defence Policy, the Committee on Budgets and the Committee on Budgetary Control (A5-0204/2000 ),

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;

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 if the Council intends to amend the Commission proposal substantially;

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

(1) OJ C 89 E, 28.3.2000, p. 4.