Euro-Mediterranean partnership: financial and technical measures to accompany (MEDA) the reform of economic and social structures

At its meeting of 13 May 1996, the Council had decided to forward to the European Parliament, for second consultation, the text of the proposal on MEDA, in view of the substantial amendments that had been made to it. Those amendments essentially related to the following points: - emphasising the 'Euro-Mediterranean partnership' context of actions undertaken under MEDA and realignment of actions with the three aspects of that partnership; . strengthening of political stability and democracy, . introduction of a Euro-Mediterranean free trade area and development of social and economic cooperation; . taking account of the human and cultural aspects. The priority areas of action were summarised in a new annex which essentially repeated the areas listed in the initial proposal (although clarifications had been introduced relating to projects to support the structural adjustment programmes and those to increase the involvement of civil society; on the other hand, projects relating to the rights of ethnic and religious minorities had been deleted); - introduction into the Regulation of a financial reference amount of ECU 3 424.5 million for the period 1995-9; - emphasis on the democratic basis of the Regulation (respect for human rights and fundamental freedoms constituted an essential element of the Regulation, violations thereof justifying the adoption of appropriate measures which must themselves be determined in accordance with a procedure to be defined before 30 June 1997); - clarifications regarding the definition of indicative programmes to be instituted in consultation with the partner States. In particular, the measures to be financed were to be the subject of a selection process taking due account of the priorities of the beneficiaries, their needs and their capacity for absorption of the financial resources allocated. The guidelines for the indicative programmes were to be adopted by the Council, acting by a qualified majority; - clarifications regarding loans signed by the EIB (rates fixed at 3%) and sectors covered by risk capital (manufacturing undertakings, etc.). �