(Codecision procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to the European Parliament and the Council (COM(2004)0496)(1),

–   having regard to Article 251(2) and Article 159(3) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0091/2004),

–   having regard to Rule 51 of its Rules of Procedure,

–   having regard to the report of the Committee on Regional Development (A6-0206/2005),

1.  Approves the Commission proposal as amended;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

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

(1) Not yet published in OJ.

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 159(3) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Economic and Social Committee(1),

Having regard to the opinion of the Committee of the Regions(2),

Acting in accordance with the procedure laid down in Article 251 of the Treaty(3),

Whereas:

(1)  Article 159(3) of the Treaty provides for specific actions to be decided outside the Funds which are the subject of paragraph 1 of that Article, in order to achieve the objective of social and economic cohesion envisaged by the Treaty. The harmonious development of the entire Community territory and greater economic, social and territorial cohesion imply the strengthening of territorial co-operation. To this end it is appropriate to adopt the measures necessary for improving the implementation conditions for actions of territorial co-operation.

(2)  Taking into account the important difficulties encountered by the Member States, in particular by regions and local authorities, in implementing and managing actions of cross-border, trans-national or inter-regional co-operation within the framework of differing national laws and procedures, measures to reduce these difficulties are necessary.

(3)  Taking into account notably the increase in the number of land and maritime borders in the Community following its enlargement, it is necessary to facilitate the reinforcement of cross-border, trans-national and inter-regional co-operation within the Community.

(4)  The existing instruments, such as the European economic interest grouping, have proven ill-adapted to organising a structured co-operation among Structural Fund programmes within the Interreg initiative during the 2000-2006 programming period.

(5)  Council Regulation (EC) No .../2005 [laying down general provisions for the European Regional Development Fund, the European Social Fund and the Cohesion Fund](4), increases the means in support of European territorial co-operation in three fields: cross-border, inter-regional and trans-national co-operation.

(6)  It is likewise necessary to facilitate and follow up the implementation of territorial co-operation actions, without financial participation by the Community.

(7)  In order to overcome the obstacles hindering territorial co-operation, it is necessary to institute a co-operation instrument at Community level which allows the creation of co-operative groupings in Community territory, with legal personality, called "European groupings of territorial co-operation" (EGTC). Recourse to the EGTC is optional.

(8)  Agreements on border, inter-regional or supranational cooperation between Member States and/or regional and local authorities may continue to be implemented.

(9)  It is appropriate for the EGTC to be given the capacity to act on behalf of its members, and notably the regional and local authorities of which it is composed.

(10)  The tasks and competencies of the EGTC must be defined by its members in a "Convention of European grouping of territorial co-operation".

(11)  The members set up the EGTC as a separate legal entity and it may assign its tasks to one of the members.

(12)  The EGTC must be able to act, either for implementing programmes of territorial co-operation co-financed by the Community, notably within the Structural Funds in conformity with Regulation (EC) No .../2005 [laying down general provisions for the European Regional Development Fund, the European Social Fund and the Cohesion Fund] and Regulation (EC) No .../2005 of the European Parliament and of the Council [on the European Regional Development Fund](5), as well as trans-national and inter-regional co-operation programmes, or for carrying out territorial co-operation programmes which are at the sole initiative of the Member States and/or their regional and local authorities, without financial contribution by the Community.

(13)  The Commission should ensure synergy between this Regulation and the Council of Europe draft additional protocol No 3 to the European Outline Convention on Transfrontier Co-operation between Territorial Communities or Authorities concerning the establishment of Euroregional Co-operation Groupings (ECG).

(14)  It should be specified that the financial responsibility of regional and local authorities, as well as that of the Member States, is not affected by the formation of an EGTC, with regard to the management of Community funds or of national funds.

(15)  It should be specified that the powers exercised by regional and local authorities as public authorities, notably police and regulatory powers, cannot be the subject of a convention.

(16)  It is necessary for the EGTC to establish its statutes, equip itself with its own organs, and establish decision-making procedures, as well as rules for the budget and for the exercise of its financial responsibility.

(17)  Since the objectives of this Regulation, namely the creation of legal conditions throughout Europe for territorial co-operation cannot be sufficiently achieved by the Member States, it is better to establish such conditions at Community level. Accordingly, the Community may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary for achieving those objectives, recourse to the EGTC being optional, in accordance with the constitutional system of each Member State,

HAVE ADOPTED THIS REGULATION:

Article 1

Nature of the EGTC

1.  A cooperative grouping can be established on community territory in the form of a European grouping of territorial co-operation, hereinafter referred to as "EGTC", under the conditions and according to the modalities envisaged by this Regulation.

2.  The EGTC shall have legal personality.

3.  The objective of the EGTC is to facilitate and promote territorial co-operation (cross-border, trans-national and inter-regional) between regional and local authorities in the EU with the aim of strengthening economic, social and territorial cohesion.

With the same aim, it can equally have the objective of facilitating and promoting trans-national and inter-regional co-operation.

4.  The competent authority of the Member State whose law is applicable shall have a right of supervision over the EGTC's management of public funds, both national and Community.

The competent authority of the Member State whose law is applicable shall inform the other Member States affected by the convention of European grouping of territorial co-operation, hereafter referred to as "convention", of the results of any checks carried out.

5.  Where border regions have experienced prolonged periods of civil or military conflict, the EGTC may also have the objective of promoting reconciliation and assisting with peace-building programmes.

Article 2

Composition

1.  The EGTC may be made up of Member States and/or local public bodies, and/or of other bodies acting on a not-for-profit basis, in which regional/local authorities and Member States participate, hereinafter referred to as "members".

2.  The creation of an EGTC shall be decided at the initiative of its members.

3.  The members shall set up the EGTC as a separate legal entity and it may assign its tasks to one of its members.

Article 3

Tasks and competencies

1.  The EGTC shall carry out the tasks which it is assigned by its members in accordance with this Regulation. Its competencies shall be defined by a convention concluded by the members in accordance with Article 4.

2.  The EGTC shall act within the confines of the tasks entrusted to it; the execution of those tasks may be delegated to one of its members.

3.  The EGTC may be given the task either of implementing territorial co-operation programmes co-financed by the Community, notably through the Structural Funds, or of carrying out any other action of territorial co-operation with or without Community financial intervention.

The formation of an EGTC shall not affect the financial responsibility of its members or of the Member States, neither for community funds nor for national funds.

4.  No financial liability shall fall on Member States that are not members of the EGTC, even though their regional, local or public bodies are participating as members. This, however, is without prejudice to the financial responsibility of Member States in relation to Community funds operated by the EGTC.

5.  A convention may not concern the delegation of public authority powers, notably police and regulatory powers.

Article 4

Convention of European grouping of territorial cooperation

1.  The EGTC shall be the subject of a convention drawn up by its members.

2.  The convention shall specify, in particular, the operating principles, the competencies and tasks of the EGTC, its duration and the conditions for its dissolution.

3.  The convention shall be limited solely to the field of territorial co-operation determined by its members.

4.  The convention shall define the law applicable to its interpretation and enforcement. The applicable law shall be from that Member State involved in the convention where the EGTC has its seat.

5.  The EGTC shall be subject to the law governing the operation of associations of the Member State designated by its members.

6.  The conditions for granting concessions or public service delegations to the EGTC within the field of territorial co-operation are to be defined in the convention, on the basis of the applicable national law.

7.  The convention shall be notified to the Member States involved in the EGTC, to the Commission and to the Committee of the Regions. The Commission shall enter the convention in a public register of all EGTC conventions.

Article 5

Statutes

1.  The EGTC shall adopt its statutes on the basis of the convention.

2.  The statutes shall contain provisions on:

3.  If a member is assigned the tasks of the EGTC, in accordance with Article 2(3) the content of the statutes may form part of the convention.

Article 6

Budget

1.  The EGTC establishes an annual provisional budget, which is adopted by the members. It draws up an annual activity report, certified by experts who are independent of the members.

2.  The members are financially liable on a pro-rata basis according to their contribution to the budget, until the EGTC's debts are met.

Article 7

Publicity

After the EGTC has acquired legal personality in accordance with the law of the Member State designated by its members, the statutes establishing the EGTC shall be published in the Official Journal of the European Union.

This publication shall include the name of the EGTC, its objective, the list of its members and the address of its seat.

Article 8

Entry into force

This Regulation shall enter into force on the twentieth day following its publication in the Official Journal of the European Union.

It shall apply from 1 January 2007.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at

For the European Parliament For the Council

The President The President

(1) OJ C (...), (...), p.(...). (2) OJ C (...), (...), p. (...). (3) Position of the European Parliament of 6 July 2005. (4) OJ (5) OJ