European Agency for Reconstruction: extension of mandate and status until 31 December 2008

PURPOSE : to extend the term of the European Agency for Reconstruction until 31 December 2008, and to amend Regulation 2667/2000/EC on the European Agency for Reconstruction.

PROPOSED ACT : Council Regulation.

CONTENT : Council Regulation 2667/2000/EC set up the European Agency for Reconstruction for the implementation of the Community assistance for Serbia and Montenegro and the former Yugoslav Republic of Macedonia. According to its Article 16, this Regulation shall apply until 31 December 2006.

Article 14 of that Regulation requires that the Commission must report to the Council on the future of the mandate of the Agency. Any proposal to extend the mandate of the Agency beyond 31 December 2006 should be made by the Commission to the Council by 31 March 2006.

The Commission issued the report to the Council, and to the Parliament for information, on 23 December 2005 (COM(2005)0710 for a summary of this document please refer to CNS/2000/0112). In that report the Commission proposed to discontinue the European Agency for Reconstruction, but to seek its extension for two years, until 31 December 2008, with its current mandate and status, and to gradually phase out its activities under the CARDS Programme (Council Regulation 2666/2000/EC).

This proposal aims therefore to amend Regulation 2667/2000/EC accordingly.

During the transitional period, the Agency will focus its efforts on the finalisation of CARDS programmes, the gradual transfer to Commission Delegations of programmes that cannot be closed by the EAR, and on the administrative closure of its activities. Programming and contracting under the new IPA instrument will be taken care of by Headquarters and the Delegations. The Agency will provide the necessary assistance.

For further information concerning the financial implications of this measure, please refer to the financial statement.