Decision No 1/2000 of the EU-Lithuania Association Council

of 17 February 2000

adopting the terms and conditions for the participation of Lithuania in the Community programme in the field of small- and medium-sized enterprises

(2000/259/EC)

THE ASSOCIATION COUNCIL,

Having regard to the Europe Agreement establishing an association between the European Communities and their Member Sates, of the one part, and the Republic of Lithuania, of the other part(1), and in particular Article 110 thereof,

Whereas:

(1) According to Article 110 of the Europe Agreement, Lithuania is to participate in framework programmes, projects or other actions of the Community in the fields laid down in Annex XX thereto, which include the field of small- and medium-sized enterprises.

(2) Council Decision 97/15/EC of 9 December 1996 on a third multiannual programme for small- and medium-sized enterprises (SMEs) in the European Union (1997 to 2000)(2) adopts a programme for Community policy for SMEs, including craft and very small enterprises, for a period of four years from 1 January 1997, and Article 7(1) thereof provides that this programme is to be open to the participation of the associated central European countries.

(3) According to Article 110 of the Europe Agreement the terms and conditions for the participation of Lithuania in the activities referred to in Annex XX thereto are to be decided by the Association Council,

HAS DECIDED AS FOLLOWS:

Article 1

Lithuania shall participate in the third multiannual programme for small- and medium-sized enterprises (SMEs) in the Eurpean Union (1997 to 2000) according to the terms and conditions set out in Annexes I and II which shall form an integral part of this Decision.

Article 2

This Decision shall apply for the duration of the programme.

Article 3

This Decision shall enter into force on the first day of the month following that of its adoption.

Done at Brussels, 17 February 2000.

For the Association Council

The President

J. Gama

(1) OJ L 51, 20.2.1998, p. 3.

(2) OJ L 6, 10.1.1997, p. 25.

ANNEX I

Terms and conditions for the participation of Lithuania in the third multiannual programme for small- and medium-sized enterprises (SMEs) in the European Union (1997 to 2000)

1. Lithuania will participate in the activities of the third multiannual programme for small- and medium-sized enterprises (SMEs) in the European Union (1997 to 2000) (hereinafter called "the Programme") in conformity, unless otherwise provided in this Decision, with the objectives, criteria, procedures and time limits laid down in Council Decision 97/15/EC of 9 December 1996 on a third multiannual programme for small- and medium-sized enterprises (SMEs) in the European Union (1997 to 2000) and in particular Article 7(1) thereof.

2. The terms and conditions for the submission, assessment and selection of applications related to eligible institutions, organisations and individuals of Lithuania will be the same as those applicable to eligible institutions, organisations and individuals of the Community.

3. Where appropriate, in order to ensure the Community dimension of the Programme, transnational projects and activities proposed by Lithuania will be required to include a minimum number of partners from the Member States of the Community. This minimum number will be decided in the framework of the implementation of the Programme, taking into account the nature of the various activities, the number of partners in a given project and the number of countries participating in the Programme.

4. Lithuania will pay a contribution each year to the general budget of the European Union to cover the costs resulting from its participation in the Programme (see Annex II). The Association Committee is entitled to adapt this contribution whenever necessary.

5. The Member States of the Community and Lithuania will make every effort, within the framework of the existing provisions, to facilitate the free movement and residence of all eligible persons to the Programme moving between Lithuania and the Member States of the Community for the purpose of participation in activities covered by the Decision.

6. Without prejudice to the responsibilities of the European Commission and the European Court of Auditors in relation to the evaluation of the Programme according to Article 6 of Decision 97/15/EC, the participation of Lithuania in the Programme will be continuously evaluated on a partnership basis involving Lithuania and the European Commission. Lithuania will submit the necessary reports to the European Commission and take part in other specific activities set out by the Community in that context.

7. Without prejudice to the procedures referred to in Article 4 of Decision 97/15/EC, Lithuania will be invited to coordination meetings on any question concerning the implementation of this Decision prior to regular meetings of the Programme Committee. The European Commission will inform Lithuania of the results of such regular meetings.

8. The language to be used as regards the application process, contracts, reports to be submitted and other administrative arrangements for the Programme, will be one of the official languages of the institutions of the European Union.

ANNEX II

Financial contribution of Lithuania to the third multiannual programme for small-and medium-sized enterprises (SMEs) in the European Union (1997 to 2000)

1. The financial contribution of Lithuania will cover:

- financial support from the Programme for the participation of Lithuanian entities in activities as defined in Annex I.1;

- supplementary costs of an administrative nature related to the management of the Programme by the European Commission stemming from Lithuania's participation.

2. For every financial year, the aggregated amount of subsidies or any other financial support received from the Programme by the Lithuanian beneficiaries will not exceed the contribution paid by Lithuania, after deduction of the supplementary administrative costs.

Should the contribution paid by Lithuania to the general budget of the European Union, after deduction of the supplementary administrative costs, be higher than the aggregated amount of subsidies or other financial support received by the Lithuanian beneficiaries from the Programme, the European Commission will transfer the balance to the next budgetary exercise, and it will be deducted from the following year's contribution. Should such a balance be left when the Programme comes to an end, the corresponding amount will be reimbursed to Lithuania.

3. Lithuania's annual contribution will be EUR 384130 from 1999. Of this sum, an amount of EUR 25130 will cover supplementary administrative costs related to the management of the Programme by the European Commission stemming from Lithuania's participation.

4. The financial regulations applicable to the general budget of the European Union will apply, notably to the management of the contribution of Lithuania.

Upon entry into force of this Decision and at the beginning of each following year, the European Commission will send to Lithuania a call for funds corresponding to its contribution to the costs under this Decision.

This contribution will be expressed in euro and paid into a euro bank account of the European Commission.

Lithuania will pay its contribution to the annual costs under this Decision according to the call for funds and at the latest three months after the call for funds is sent. Any delay in the payment of the contribution shall give rise to the payment of interest by Lithuania on the outstanding amount from the due date. The interest rate corresponds to the rate applied by the European Central Bank, for the month of the due date, for its operations in euro, increased by 1,5 percentage points.

5. Lithuania will pay the supplementary administrative costs referred to in paragraph 3 from its national budget.

6. Lithuania will pay EUR 107700 (30 %) of the remaining costs of its participation in the Programme from its national budget in 1999, and EUR 179500 (50 %) in the year 2000.

7. Subject to regular Phare programming procedures, in 1999 the remaining EUR 251300 will be paid from Lithuania's annual Phare allocation, and in the year 2000 the remaining EUR 179500 will be paid from Lithuania's annual Phare allocation.