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Procedure : 2006/0068(CNS)
Document stages in plenary
Document selected : A6-0291/2006

Texts tabled :

A6-0291/2006

Debates :

Votes :

PV 12/10/2006 - 7.20
Explanations of votes

Texts adopted :

P6_TA(2006)0412

Texts adopted
PDF 217kWORD 63k
Thursday, 12 October 2006 - Brussels
Exceptional Community financial assistance to Kosovo *
P6_TA(2006)0412A6-0291/2006

European Parliament legislative resolution on the proposal for a Council decision on providing exceptional Community financial assistance to Kosovo (COM(2006)0207 – C6-0171/2006 – 2006/0068(CNS))

(Consultation procedure)

The European Parliament,

–   having regard to the Commission proposal to the Council (COM(2006)0207)(1),

–   having regard to Article 308 of the EC Treaty, pursuant to which the Council consulted Parliament (C6-0171/2006),

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

–   having regard to the report of the Committee on International Trade and the opinions of the Committee on Foreign Affairs and the Committee on Budgets (A6-0291/2006),

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 if it intends to depart from the text approved by Parliament;

4.  Asks the Council to consult Parliament again if it intends to amend the Commission proposal substantially;

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

Text proposed by the Commission   Amendments by Parliament
Amendment 1
Recital 7 a (new)
(7a) This exceptional financial assistance complements other Community assistance programmes for the Western Balkans.
Amendment 2
Recital 9
(9)  Although economic activity resumed after the conflict, Kosovo is at a low level of economic development. Kosovo is not in a position to borrow either domestically or on the international financial market and under its current status it is not eligible for membership in the international financial institutions. It may therefore not benefit from lending assistance associated with their programmes.
(9)  Although economic activity resumed after the conflict, Kosovo is at a low level of economic development. Kosovo is not in a position to borrow either domestically or on the international financial market and under its current status it is not eligible for membership in the international financial institutions. It may therefore not benefit from lending assistance associated with their programmes, and this is the main reason for providing exceptional financial assistance in the form of a grant.
Amendment 3
Recital 12
(12)  The release of this grant assistance is without prejudice to the powers of the Budgetary authority.
(12)  The Community financial assistance is to be paid directly to the Kosovo Consolidated Budget of 2006 and 2007 and recorded under the heading "European Community exceptional financial assistance". The release of this grant is without prejudice to the powers of the Budgetary authority.
Amendment 4
Recital 13
(13)  This financial support should be provided after verifying whether the financial and economic conditions to be agreed with the authorities of Kosovo upon approval of this Council Decision can be satisfactorily fulfilled.
(13)  This financial support is to be provided after verifying whether the conditions to be agreed with the authorities of Kosovo have been satisfactorily fulfilled. The conditions for the release of tranches of the exceptional assistance shall include specific targets to be achieved in the following areas: improved transparency and increased sustainability of public finances, primarily concerning the consistency of the Kosovo Consolidated Budget with the Medium-Term Expenditure Framework and the Kosovo Development Strategy and Plan; the application of macro-economic and budgetary priorities on the basis of the Memorandum of Economic and Financial Policies agreed with the IMF on 2 November 2005; enhanced fiscal discipline and control of public expenditure, with a particular view to the detection, treatment and follow-up of suspected fraud and other irregularities concerning national and international funds, and full compliance with international democratic and human rights standards, including respect for minorities and the fundamental principles of the rule of law. Real progress in attaining the above targets should provide the basis for the disbursement of tranches of the assistance.
Amendment 5
Article 1, paragraph 1
1.  The Community shall make available to Kosovo an exceptional financial assistance in the form of a grant of up to EUR 50 million with a view to alleviating the financial situation in Kosovo, supporting the development of a sound economic and fiscal framework, facilitating the continuation and strengthening of essential administrative functions and addressing public investment needs.
1.  The Community shall make available to Kosovo an exceptional financial assistance in the form of a grant of up to EUR 50 million with a view to meeting Kosovo's projected external financing requirements in 2006 and 2007, in line with Kosovo's Medium-Term Expenditure Framework for 2006-2008, supporting the development of a sound economic and fiscal framework, facilitating the continuation and strengthening of essential administrative functions and addressing public investment needs.
Amendment 6
Article 1, paragraph 2 a (new)
2a. In order to facilitate dialogue with the European Parliament, the Commission shall regularly inform the European Parliament of that Committee's proceedings and provide it with the relevant documents.
Amendment 7
Article 1, paragraph 3
3.  The Community financial assistance shall be made available for two years starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 2(1). However, if circumstances so require, the Commission, after consultation of the Economic and Financial Committee, may decide to extend the availability period by a maximum of one year.
3.  The Community financial assistance shall be made available for two years starting from the first day after the entry into force of the Memorandum of Understanding referred to in Article 2(1). However, if circumstances so require, the Commission, after consultation of the Economic and Financial Committee and the European Parliament, may decide to extend the availability period by a maximum of one year.
Amendment 8
Article 2, paragraph 1
1.  The Commission is empowered to agree with the authorities of Kosovo, after consultation with the Economic and Financial Committee, the economic policy and financial conditions attached to this assistance, to be laid down in a Memorandum of Understanding. These conditions shall be consistent with the agreements and understandings referred to in Article 1(2).
1.  The Commission is empowered to agree with the authorities of Kosovo, after consultation with the Economic and Financial Committee and the European Parliament, the conditions attached to this assistance, to be laid down in a Memorandum of Understanding which shall be transmitted to the Council and the European Parliament. These conditions shall include specific targets to be achieved in the following areas: improved transparency and increased sustainability of public finances, primarily concerning the consistency of the Kosovo Consolidated Budget with the Medium-Term Expenditure Framework and the Kosovo Development Strategy and Plan; the application of macro-economic and budgetary priorities on the basis of the Memorandum of Economic and Financial Policies agreed with the IMF on 2 November 2005; enhanced fiscal discipline and control of public expenditure, with a particular view to the detection, treatment and follow-up of suspected fraud and other irregularities concerning national and international funds, and full compliance with international democratic and human rights standards, including respect for minorities and the fundamental principles of the rule of law. These conditions shall be consistent with the agreements and understandings referred to in Article 1(2).
Amendment 10
Article 2, paragraph 2
2.  Before proceeding with the actual implementation of the Community assistance, the Commission shall monitor the soundness of Kosovo's financial circuits, administrative procedures, internal and external control mechanisms which are relevant to this Community macro-financial assistance.
2.  Before proceeding with the actual implementation of the Community assistance, the Commission shall monitor the soundness of Kosovo's financial circuits, administrative procedures, internal and external control mechanisms which are relevant to this Community macro-financial assistance, drawing on the expertise and monitoring capacity of its representatives in Kosovo.
Amendment 11
Article 2, paragraph 3
3.  The Commission shall verify at regular intervals, in collaboration with the Economic and Financial Committee and in coordination with the IMF, that economic policies in Kosovo are in accordance with the objectives of this assistance and that the agreed economic policy and financial conditions are being satisfactorily fulfilled.
3.  The Commission shall verify at regular intervals, in collaboration with the Economic and Financial Committee and in coordination with the IMF, and drawing on the expertise and monitoring capacity of its representatives in Kosovo, that economic policies in Kosovo are in accordance with the objectives and conditions of this assistance, as set out in Articles 1(1) and 2(1), and that the agreed economic policy and financial conditions are being satisfactorily fulfilled.
Amendment 12
Article 3, paragraph 2
2.  The second and any further instalments shall be released on the basis of a satisfactory compliance with the economic policy and financial conditions referred to in Article 2(1), and not before three months have elapsed since the release of the previous instalment.
2.  The second and any further instalments shall be released on the basis of a satisfactory compliance with the conditions referred to in Article 2(1), in particular the making of satisfactory progress towards attaining the targets set out in the Memorandum of Understanding provided for in Article 2(1), and not before three months have elapsed since the release of the previous instalment.
Amendments 13 and 14
Article 4
The implementation of this assistance shall take place in accordance with the provisions of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the General Budget of the European Communities and its implementing rules. In particular, the Memorandum of Understanding referred to in Article 2(1) shall provide for appropriate measures by Kosovo related to the prevention of and the fight against fraud, corruption and other irregularities linked to this assistance. It shall also provide for controls by the Commission, including the European Anti-Fraud Office (OLAF), with the right to perform on-the-spot checks and inspections, and for audits by the Court of Auditors, where appropriate, to be carried out on the spot.
The implementation of this assistance shall take place in accordance with the provisions of Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the General Budget of the European Communities and its implementing rules. In particular, the Memorandum of Understanding referred to in Article 2(1) shall provide for appropriate measures by Kosovo related to the prevention of and the fight against fraud, corruption and other irregularities linked to this assistance. In order to guarantee greater transparency in the management and disbursement of funds, it shall also provide for controls by the Commission, including the European Anti-Fraud Office (OLAF), with the right to perform on-the-spot checks and inspections, and for audits by the Court of Auditors and independent auditors where appropriate, to be carried out on the spot
Amendments 15 and 16
Article 5
At least once a year the Commission shall submit to the European Parliament and to the Council a report, including an evaluation on the implementation of this Decision in the previous year.
At least once a year, and before 15 September, the Commission shall submit to the relevant committees in the European Parliament and to the Council a report, including an evaluation of the implementation of this Decision in the previous year. This report shall specify the linkage between the targets set out in Article 2(1), Kosovo's ongoing economic and fiscal performance and the Commission's decision to release tranches of the assistance.

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