The European Commission,
Resolved, to prepare for the possible geographic enlargement of the Union to include the Czech Republic and the Republics of Cyprus, Hungary, Poland, Estonia, and Slovenia in 2002 by adjusting the substance of the Union's Regional Policy and its Common Agricultural Policy and the application of these in the present and future Member States,
Recalling, that the Union has long committed itself in the Treaties to promoting throughout the Community a harmonious and balanced development if economic activities, sustainable and non-inflation growth respecting the environment, a high degree of convergence of economic performance, a high level of employment and social protection, the raising of the standard of living and quality of life, and economic and social cohesion and solidarity among the Member States,
Noting, that the Union must be prepared to promote these goals in all future new Member States as well,
Recognizing, that all of the Applicant States named above have met the criteria for accession to the Union as laid down by the Copenhagen European Council in June 1993,
Committed, to the principle of reducing economic disparities which continue to exist among present Member States,
Noting, that the per capita GDP (at purchasing power standards) of most of the Applicant States are likely to remain below the average of the Union after 2002,
Recognizing, that the financial limitations of the existing PHARE program and other on-going initiatives of the Commission will be unable to fully overcome these disparities before 2002,
Noting, with deep concern, that approximately 18 million citizens of the Union are presently unemployed,
Committed, to the principle of free movement of persons throughout the Union after the accession of any new member states,
Recognizing, that economic development in the Applicant States will create new markets and higher demand for goods manufactured in the present Member States,
Noting, that the Union remains committed under the Treaties to improve the Internal Common Market and that linking the economies of the present and future member states requires improving transportation networks throughout the Union,
Committed, to assisting any new Member State in meeting the Union's cohesion standards in the areas of transport and the environment,
Recognizing, the fiscal commitment which Member States will undertake upon their accession to the Economic and Monetary Union,
Recognizing, that long-term economic growth depends in fiscal discipline by the Union and each Member State,
Noting, that, although past budgetary reforms of the Common Agricultural Policy were successful, they have not prepared the Union to deal effectively with the challenges presented by the level and nature of agricultural activity in the Applicant States,
Noting, that although these and other concerns have been elucidated by the Commission in its communication "Agenda 2000 - For a Stronger and Wider Union," presented to the Member States on 16 July 1997, some of the Commission's specific proposals in "Agenda 2000" must nor be altered in light of changing global economic conditions and in consideration of the expressed interest of some Member States and of the other representatives of the citizens of the Union at the regional level and within the European Parliament,
Resolved, to reform the Union's regional and agricultural policies in a timely fashion to prepare the Union financially to deal with its obligations under the Treaties and the challenges posed by enlarging the Union in the context of enduring concerns to control the Union's financial outlays and thereby limit the financial contributions to the Union by the Member States and the citizens of the Union,
Has agreed as follows:
I. To Propose to the Council the following changes to Objective 1 of the Community's Regional Policy:
A. For the less-developed regions eligible under Objective 1, the Commission proposes strict application of a new GDP criterion, by which assistance will only go to the regions whose per capita GDP is less than 60% of the Union average.
B. The new per capita GDP criterion mentioned in Section 1A of this proposal will apply to any Objective 1 funding to be allocated after January 1, 2000.
C. Beginning in 2000 funding for the PHARE program will be increased to accelerate the pre-accession development of the applicant states. This increase will be equal to 50% of the savings realized under Sections 1A and 1B of this proposal.
D. Beginning in 2000, the Commission will establish a new initiative specified in Section II of this proposal. Funding for this initiative will be equal to 50% of the savings realized under Sections 1A and 1B of this proposal.
II. To propose to the Council and fund a new initiative to assist the regions covered under Objective 2 of the Community's Regional Policy:
A. Beginning on January 1, 2000, the Commission should oversee and fund the construction of a new "West-East Rapid Transport Network" (WERT-Net) for the purpose of linking regions covered under Objective 2 of the Community's regional policy with emerging markets in Applicant States of Central and Eastern Europe (CEE). The WERT-Net will consist of three high-speed West-East train lines designed to augment existing rail links. The WERT-Net is intended to facilitate economic development and tourist travel in both the regions covered under Objective 2 and in the CEE Applicant States.
B. WERT-Net North will link the cities of Nantes, Hasselt, Dusseldorf, Berlin, and Gdansk.
C. WERT-Net Central will link the cities of Bordeaux, Luxembourg, Saabrucken, Leoben, and Brno.
D. WERT-Net South will link the cities of Madrid, Marseille, Torino, Venezia, Ljubljana, Pecs, Bucharest, Sofia, and Thessalonki.
E. The funding for WERT-Net will be based on the principle of "additionality" regarding the Member State in which the WERT-Net construction takes place.
F. Plans and contractual obligations will be finalized for the entire WERT-Net no late than December 31, 2003.
III. To propose to the Council changes to the terms of the Community's Common Agricultural Policy and Objective 5b of the Community's Regional Policy:
A. The cereals intervention price supported by the Guarantee Section of the EAGGF will be reduced in one step from its present level of ECU 119.19 per ton to a safety-net level of ECU 90 per ton (i.e. cut by 24.5%).
B. The dairy quota regime will be extended until 31 December 2005. The dairy intervention price supported by the Guarantee Section of the EAGGF for dairy products will be cut by 15%.
C. The beef intervention price supported by the Guarantee Section of the EAGGF will be cut by 35%.
D. The changes to the price support regimes specified in this section will take effect on January 1, 2000.
E. The Commission proposes the establishment of a special Transition Program to assist regions adversely affected under Sections 1A and 1B of this proposal. This porgram will be funded to a level equal to the savings realized under Sections IIIA, IIIB, and IIIC of this proposal.
F. Silage cereals (mainly silage maize) are excluded from the provisions of Section IIIA.