EC/Lithuania Europe agreement: free competition and undertakings (art. 64 1 and 2 of the Agreement)

OBJECTIVE: to define the position to be taken by the Community within the Association Council between the European Union and the Republic of Lithuania on the implementation of the provisions of the Europe Agreement on competition provisions applicable to undertakings. SUBSTANCE: the competition provisions of the Europe Agreement concluded between the European Communities and Lithuania (see procedure file AVC95128) form part of the fundamental provisions of the agreement. Their actual implementation through the adoption of the rules proposed in this proposal for a decision is a prerequisite for the smooth development of trade relations between the parties. To this end the proposal: - lays down procedures for cooperation between the two parties' competition authorities, - confirms the principles embodies in the block exemption rules in force in the Community, - provides for a consultation procedure within the Association Council should disagreement arise between the authorities referred to above. The proposal also makes provision, in accordance with Article 2(1) of the Decision of the Council and the Commission of 19 December 1997 on the conclusion of the Europe Agreement (98/150/EC/ECSC/Euratom) on the position that the Community should adopt in the Association Council. It is to be laid down in accordance with the corresponding provisions of the Treaties establishing the three Communities. The legal basis for the position to be adopted by the Community in the Association Council with regard to rules of the implementation of the competition provisions applicable to undertakings is therefore Articles 87, 235 and 228 of the EC Treaty and Article 65 and 66 of the ECSC Treaty. �