Delegations will find attached the revised version of the Presidency conclusions of the Brussels European Council (24 and 25 October 2002).

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1 COUNCIL OF THE EUROPEAN UNION Brussels, 26 Nvember 2002 (27.11) (OR. en) 14702/02 POLG 67 COVER NOTE frm : Presidency t : delegatins Subject : BRUSSELS EUROPEAN COUNCIL 24 AND 25 OCTOBER 2002 PRESIDCY CONCLUSIONS Delegatins will find attached the revised versin f the Presidency cnclusins f the Brussels Eurpean Cuncil (24 and 25 Octber 2002) /02

2 The Eurpean Cuncil met in Brussels n 24 and 25 Octber The meeting was preceded by an expsé by the President f the Eurpean Parliament, Mr Pat Cx, fllwed by an exchange f views cncerning the main items n the agenda. The Eurpean Cuncil heard a reprt by President Valéry Giscard d'estaing n the prgress f the Cnventin's prceedings. In the light f that reprt the Eurpean Cuncil held an exchange f views n the develpment f the discussins. I. LARGEMT 1. The histric prcess launched in Cpenhagen in 1993 t vercme the divisins thrughut ur cntinent is abut t bear fruit. It is a tribute t the visin and the effrts by candidate and Member States that the biggest ever enlargement f the Unin is nw within reach. In this cntext the Eurpean Cuncil warmly welcmed the psitive result f the Irish referendum. The result has paved the way fr cmpleting ratificatin f the Nice Treaty, thereby allwing the Treaty t enter int frce early next year. Against this backgrund the Eurpean Cuncil tk decisins that will allw the Unin t present negtiating psitins t the candidate States n all utstanding issues by early Nvember at the latest, with a view t cncluding enlargement negtiatins with the first cuntries at the Eurpean Cuncil in Cpenhagen in December. The Eurpean Cuncil als established guidelines fr cntinuing the prcess with thse cuntries nt included in the first enlargement. OVERALL ASSESSMT 2. The Unin endrses the findings and recmmendatins f the Cmmissin that Cyprus, the Czech Republic, Estnia, Hungary, Latvia, Lithuania, Malta, Pland, the Slvak Republic and Slvenia fulfil the plitical criteria and will be able t fulfil the ecnmic criteria and assume the bligatins f membership frm the beginning f /02 1

3 3. In view f the abve, and als taking int cnsideratin the verall prgress achieved in the accessin negtiatins, as well as in transpsing and implementing the acquis and the cmmitments undertaken in the negtiatins by the candidates, the Unin cnfirms its determinatin t cnclude accessin negtiatins with these cuntries at the Eurpean Cuncil in Cpenhagen n December and sign the Accessin Treaty in Athens in April The Unin reiterates its preference fr a reunited Cyprus t jin the Eurpean Unin n the basis f a cmprehensive settlement, and urges the leaders f the Greek Cyprit and Turkish Cyprit cmmunities t seize the pprtunity and reach an agreement befre the end f the accessin negtiatins this year. The Unin will cntinue t fully supprt the substantial effrts f the Secretary-General f the United Natins fr reaching a settlement, cnsistent with the relevant UN Security Cuncil reslutins. The Eurpean Unin will accmmdate the terms f such a cmprehensive settlement in the Treaty f Accessin in line with the principles n which the Eurpean Unin is funded. In the absence f a settlement, the decisins t be taken in December by the Cpenhagen Eurpean Cuncil will be based n the cnclusins set ut by the Helsinki Eurpean Cuncil in The Unin agrees with the Cmmissin's evaluatin f the prgress achieved by Bulgaria and Rmania. In the light f the inclusive and irreversible nature f the enlargement prcess and based upn the Cmmissin's Strategy Paper, the Cuncil and the Cmmissin are invited t prepare, in clse cnsultatins with Bulgaria and Rmania, the necessary decisins at the Eurpean Cuncil in Cpenhagen cncerning first f all detailed radmaps, including timetables, and increased pre-accessin assistance in rder t advance the accessin prcess with these cuntries. The Eurpean Cuncil expresses its supprt fr Bulgaria and Rmania in their effrts t achieve the bjective f membership in /02 2

4 6. The Unin welcmes the imprtant steps taken by Turkey twards meeting the Cpenhagen plitical criteria and the fact that Turkey has mved frward n the ecnmic criteria and alignment with the acquis, as registered in the Cmmissin's Regular Reprt. This has brught frward the pening f accessin negtiatins with Turkey. The Unin encurages Turkey t pursue its refrm prcess and t take further cncrete steps in the directin f implementatin, which will advance Turkey's accessin in accrdance with the same principles and criteria as are applied t the ther candidate States. The Cuncil is invited t prepare in time fr the Cpenhagen Eurpean Cuncil the elements fr deciding n the next stage f Turkey's candidature, n the basis f the Cmmissin's Strategy Paper and in accrdance with the cnclusins f the Eurpean Cuncils in Helsinki, Laeken and Seville. MONITORING AND SAFEGUARDS 7. The Unin endrses the Cmmissin prpsals cntained in the Strategy Paper cncerning the cntinuatin f mnitring after the signing f the Accessin Treaty. Accrdingly, the Cmmissin will prduce, six mnths befre the envisaged date f accessin, a reprt fr the Cuncil and the Eurpean Parliament mnitring the further prgress as t the adptin, implementatin and enfrcement f the acquis by the acceding States in line with their cmmitments /02 3

5 8. Mrever, the Unin endrses the Cmmissin prpsals fr prviding in the Accessin Treaty, besides a general ecnmic safeguard clause, tw specific safeguard clauses cncerning the peratin f the internal market, including all sectral plicies which cncern ecnmic activities with a crss-brder effect, and the area f justice and hme affairs. Fr a duratin f up t three years after accessin, a safeguard clause may be invked upn a mtivated request by any Member State r n the Cmmissin's initiative. Measures under the general ecnmic safeguard clause culd cncern any Member State. Measures under the tw specific safeguard clauses can nly be addressed t new Member States that have failed t implement cmmitments undertaken in the cntext f the negtiatins. A safeguard clause may be invked even befre accessin n the basis f the mnitring findings and enter int frce as f the first day f accessin. The duratin f such measures may extend beynd the three-year perid. The cmpetent bdies will draw up the Unin's psitin n this matter in the accessin negtiatins. The Cmmissin will infrm the Cuncil in gd time befre revking safeguard measures. It will take duly int accunt any bservatins f the Cuncil in this respect. 9. The Unin endrses the Cmmissin's prpsal t make available a special transitin facility fr institutin-building with a view t cntinuing the prcess f building up the new Member States' administrative and judicial capacity. Budgetary and financial issues ( ) 10. The ceiling fr enlargement-related expenditure set ut fr the years by the Eurpean Cuncil in Berlin must be respected. 11. The Unin's expenditure must cntinue t respect bth the imperative f budgetary discipline and efficient expenditure, and the need t ensure that the enlarged Unin has sufficient resurces at its dispsal t ensure the rderly develpment f its plicies fr the benefit f all its citizens /02 4

6 (a) Direct payments 12. Withut prejudice t future decisins n the CAP and the financing f the Eurpean Unin after 2006, nr t any result fllwing the implementatin f paragraph 22 f the Berlin Eurpean Cuncil cnclusins, as well as t the internatinal cmmitments which the Unin has undertaken inter alia in the launching f the Dha Develpment Rund, direct payments will be intrduced in accrdance with the fllwing schedule f increments expressed as a percentage f the level f such payments in the Unin: 2004 : 25% 2005 : 30% 2006 : 35% 2007 : 40% and thereafter in 10% increments s as t ensure that the new Member States reach in 2013 the supprt level then applicable in the current Eurpean Unin. Furthermre, the small farmers scheme shuld nt apply. The phasing-in will take place within a framewrk f financial stability, where ttal annual expenditure fr market-related expenditure and direct payments in a Unin f 25 cannt in the perid exceed the amunt in real terms f the ceiling f categry 1.A fr the year 2006 agreed in Berlin fr the EU-15 and the prpsed crrespnding expenditure ceiling fr the new Member States fr the year The verall expenditure in nminal terms fr market-related expenditure and direct payments fr each year in the perid shall be kept belw this 2006 figure increased by 1% per year. The needs f prducers living in the disadvantaged regins f the present Eurpean Unin shuld be safeguarded; multifunctinal agriculture will be maintained in all areas f Eurpe, in accrdance with the cnclusins f the 1997 Luxemburg Eurpean Cuncil and the 1999 Berlin Eurpean Cuncil /02 5

7 (b) Overall level f allcatins fr Structural Operatins 13. The verall cmmitment apprpriatins fr the structural and chesin funds t be added under heading 2 in view f enlargement shuld be a ttal f 23 billin eurs ver the perid, distributed amng the new Member States in accrdance with the relevant Eurpean Unin Cmmn Psitins which have been agreed with the candidate States. (c) Own resurces and budget imbalances 14. The wn resurces acquis will apply t the new Member States as frm accessin. If the frecast cash flw balance with the Cmmunity's budget cmpared t the year 2003 is negative fr individual candidate States in the years , temprary budgetary cmpensatin will be ffered. This will invlve lump-sum, degressive and temprary payments n the expenditure side f the EU budget. The amunts will be determined by the end f the negtiatins n the basis f the methd agreed by the Cuncil n 22 Octber 2002 and included in the Act f Accessin. These cmpensatins wuld have t remain within the annual margins left under the Berlin ceilings fr cmmitments and payment apprpriatins fr enlargement. 15. The general effrt twards budgetary discipline laid dwn by the Eurpean Cuncil in Berlin shuld be cntinued in the perid beginning in /02 6

8 16. The Eurpean Cuncil endrsed the ther elements necessary fr defining the EU Cmmn Psitins that result frm the preparatins in the General Affairs and External Relatins Cuncil as set ut in Annex I. II. KALININGRAD 17. The Eurpean Cuncil cnfirms the cnclusins f its meeting in Seville in June The Eurpean Cuncil, nting the aim f further develping the strategic partnership between the EU and Russia, agrees t make a special effrt t accmmdate the cncerns f all parties invlved cncerning the future transit f persns between Kaliningrad Regin and ther parts f Russia. The Eurpean Cuncil stresses the need fr all parties t fully respect the svereign right f any state t safeguard the security f its citizens by cntrlling its brders and the mvement f peple and gds int, n and thrugh its territry. The Eurpean Cuncil highlights the right f any state t intrduce visas, including fr transit. The Eurpean Cuncil acknwledges the unique situatin f Kaliningrad Regin as part f the Russian Federatin. The Eurpean Cuncil endrses the cnclusin f 22 Octber 2002 by the Cuncil (General Affairs and External Relatins) n Kaliningrad /02 7

9 III. EU-NATO RELATIONS 18. The Eurpean Cuncil has agreed the mdalities t implement the Nice prvisins (see Annex II) n the invlvement f the nn-eu Eurpean members f NATO. The implementatin f the Nice prvisins n the invlvement f the nn-eu Eurpean members f NATO will be made pssible by the relevant decisins n the relatins between the Eurpean Unin and NATO. 19. On this ccasin, the Eurpean Cuncil recalled that these mdalities and decisins and their implementatin shall at all times respect the prvisins f the Treaty n Eurpean Unin, in particular thse cncerning the bjectives and principles f CFSP, as prvided in Article 11 f the TEU 1. They shall als respect the relevant cnclusins and texts apprved by the Eurpean Cuncil (see paragraph 22 belw). 1 "1. The Unin shall define and implement a cmmn freign and security plicy cvering all areas f freign and security plicy, the bjectives f which shall be: t safeguard the cmmn values, fundamental interests, independence and integrity f the Unin in cnfrmity with the principles f the United Natins Charter; t strengthen the security f the Unin in all ways; t preserve peace and strengthen internatinal security, in accrdance with the principles f the United Natins Charter, as well as the principles f the Helsinki Final Act and the bjectives f the Paris Charter, including thse n external brders; t prmte internatinal cperatin; t develp and cnslidate demcracy and the rule f law, and respect fr human rights and fundamental freedms. 2. The Member States shall supprt the Unin's external and security plicy actively and unreservedly in a spirit f lyalty and mutual slidarity. The Member States shall wrk tgether t enhance and develp their mutual plitical slidarity. They shall refrain frm any actin which is cntrary t the interests f the Unin r likely t impair its effectiveness as a chesive frce in internatinal relatins. The Cuncil shall ensure that these principles are cmplied with." 14702/02 8

10 20. It is als understd that n actin will be undertaken that wuld vilate the principles f the Charter f the United Natins, including the Charter principles f maintenance f internatinal peace and security, peaceful settlement f disputes, and refraining frm the threat r use f frce, as bth the Treaty n EU and the Nrth Atlantic Treaty are built n these principles, which apply t all Members accrdingly. 21. The Eurpean Cuncil als recalled that the EU prvides that the plicy f the Unin in accrdance with Article 17 f the TEU shall nt prejudice the specific character f the security and defence plicy f certain Member States. The Presidency nted that Denmark drew attentin t Prtcl N 5 t the EU Treaty n the psitin f Denmark. 22. The Eurpean Cuncil has given a mandate t the Secretary-General/High Representative, Javier Slana, t act accrdingly fr an agreement t be reached between the EU and NATO as sn as pssible. 23. The Presidency, alng with the Secretary-General/High Representative, Javier Slana, will reprt n the utcme f these effrts in abut tw t three weeks. On the basis f the utcme, the Eurpean Unin will adpt the necessary decisins. IV. FYROM 24. Further t discussins between the SG/HR and President Trajkvski, the Eurpean Cuncil reaffirmed its readiness t take ver the NATO military peratin in FYROM n 15 December. It requested the relevant bdies f the Eurpean Unin t examine all the necessary ptins in rder t achieve this bjective. The Eurpean Cuncil nted that this fllw-n peratin wuld take place within the cntext f the spirit f partnership in crisis management established between the EU and NATO shuld an agreement be reached in time. V. TERRORIST ATTACK IN RUSSIA 25. The Eurpean Cuncil adpted the declaratin in Annex III /02 9

11 ANNEX I RESULT OF WORK OF THE GERAL AFFAIRS AND EXTERNAL RELATIONS COUNCIL Budgetary and financial issues: (a) Overall level f allcatins fr Structural Operatins 1. The candidate States shuld intensify and speed up their preparatins s as t ensure that they can prvide the Cmmissin with their applicatin fr assistance, prgramming dcuments and Chesin Fund prjects s that they can be adpted in early The Cmmissin and the Member States will cntinue t prvide all pssible assistance t that effect. The Cmmissin will ensure that the apprval prcess fr prgramming dcuments and requests fr payments will be as swift as pssible. 2. In rder t meet the cnsiderable needs fr new infrastructure in the fields f transprt and envirnment identified in the candidate States, ne third f the verall allcatin fr structural peratins will be devted t the Chesin Fund. 3. The payment n accunt freseen under the acquis will be paid in the first year after accessin at the rate f 16% f the ttal cntributin f the Structural Funds ver the perid The EU fresees payment apprpriatins in 2004 equivalent t 3% f average annual cmmitments under the Structural Funds and 3% f the Chesin Fund cmmitment. 1 1 Payments during 2004 fr structural peratins in the new Member States will nt affect the payments that must be included in the 2004 budget fr structural peratins f the current Member States /02 10 ANNEX I

12 (b) Overall level f allcatins fr Internal Plicies 4. In view f Lithuania's cnfirmatin that Unit 1 f the Ignalina Nuclear Pwer Plant will be clsed befre 2005 and f its cmmitment that Unit 2 will be clsed by 2009, a prgramme fr supprting activities relating t the decmmissining f the INPP will be established. The cmmitment apprpriatins freseen fr this prgramme will be 70 millin eurs 1 fr each f the years 2004 t Recgnising that the decmmissining f the Ignalina Nuclear Pwer Plant will have t cntinue beynd the current financial perspective and that this effrt represents fr Lithuania an exceptinal financial burden nt cmmensurate with its size and ecnmic strength, the Eurpean Unin in slidarity with Lithuania cnfirms its readiness t prvide adequate additinal Cmmunity assistance t the decmmissining effrt beynd T cntinue the pre-accessin aid planned under PHARE fr the decmmissining f the Bhunice Nuclear Pwer Plant in Slvakia, 20 millin eurs 1 in cmmitment apprpriatins are freseen fr each f the years 2004 t Actin t supprt institutin building in the new Member States started under PHARE will be cntinued until T this end, cmmitment apprpriatins amunting t 200 millin eurs in 2004, 120 millin eurs in 2005 and 60 millin eurs in 2006 are freseen. 7. The levels fr heading 3 shuld be fixed s that the main items f pririty expenditure under this heading are maintained and sufficient means are prvided fr the extensin f existing prgrammes t the new Member States. 1 Estimated figures t be revised as apprpriate n the basis f the spending prfile fr the decmmissining activities f the Ignalina and Bhunice decmmissining funds. Phare cmmitments are abve expectatins fr Ignalina and belw expectatins fr Bhunice /02 11 ANNEX I

13 (c) Cyprus: Prgramme fr the nrthern part 8. With a view t the implementatin f a plitical settlement in Cyprus, a prgramme will be established by the Cuncil, especially t enable the nrthern part f the island t catch up. The ttal cmmitment apprpriatins freseen will be 39 millin eurs in 2004, 67 millin eurs in 2005 and 100 millin eurs in (d) Eurpean Develpment Fund 9. New Member States will accede t the EDF as f the new Financial Prtcl (10th EDF). (e) Eurpean Cal and Steel Cmmunity 10. New Member States will participate in the Research Fund fr Cal and Steel frm the day f accessin. New Member States will pay the crrespnding cntributins t the Fund. Cntributins t the Fund by new Member States will be made in fur instalments starting frm 2006 (2006: 15%, 2007: 20%, 2008: 30%, 2009: 35%). INSTITUTIONAL ISSUES (a) Transitinal measures Cuncil Fr the perid between the date f accessin and 31 December 2004, where the Cuncil is required t act by a qualified majrity, the vtes f its members shall be weighted as set ut in the table appearing at Annex 1. Acts f the Cuncil shall require fr their adptin at least 88 vtes in favur where the Treaty requires them t be adpted n a prpsal frm the Cmmissin. In ther cases, fr their adptin, acts f the Cuncil shall require at least 88 vtes in favur, cast by at least tw-thirds f the members /02 12 ANNEX I

14 In the event f fewer than ten new Member States acceding t the Eurpean Unin under the frthcming Treaty f Accessin, the threshld fr the qualified majrity shall be fixed by Cuncil decisin s as t crrespnd as clsely as pssible t 71,26% f the ttal number f vtes. Eurpean Parliament Frm the date f accessin until the electins fr the term f the Eurpean Parliament, the ttal number f members f the Eurpean Parliament and the allcatin f members fr each Member State shall be fixed by applying the same methd as the ne used fr the current seat allcatin. (b) Weighting f vtes in the Cuncil and qualified majrity threshld Where the Cuncil is required t act by a qualified majrity, the vtes f its members shall, as frm 1 January 2005, be weighted as set ut in the table appearing in Annex 2. As f the same date, acts f the Cuncil shall require fr their adptin at least 232 vtes in favur, cast by a majrity f the members, where the Treaty requires them t be adpted n a prpsal frm the Cmmissin. In ther cases, fr their adptin, acts f the Cuncil shall require at least 232 vtes in favur, cast by at least tw-thirds f the members. When a decisin is t be adpted by the Cuncil by a qualified majrity, a member f the Cuncil may request verificatin that the Member States cnstituting the qualified majrity represent at least 62% f the ttal ppulatin f the Unin. If that cnditin is shwn nt t have been met, the decisin in questin shall nt be adpted. In the event f fewer than ten new Member States acceding t the Eurpean Unin under the frthcming Treaty f Accessin, the threshld fr the qualified majrity shall be fixed by Cuncil decisin by applying a strictly linear, arithmetical interplatin, runded up r dwn t the nearest vte, between 71% fr a Cuncil with 300 vtes and the level freseen abve fr an EU f 25 Member States (72,27%) /02 13 ANNEX I

15 (c) Eurpean Parliament Frm the start f the term f the Eurpean Parliament, each Member State shall be allcated a number f seats representing the sum f: (i) the seats allcated t it in Declaratin N 20 attached t the Final Act f the Nice Treaty and (ii) the seats resulting frm the allcatin f the 50 seats which will nt be taken up by Bulgaria and Rmania, which shall be distributed accrding t the prvisins f the Nice Treaty. The ttal number f seats thus btained shall be as clse t 732 as pssible and the allcatins shall respect the balance between the current Member States established at Nice. The same prprtinal apprach shall be applied t the allcatin f seats t the new Member States. The apprach shall als be equitable and shall respect the equilibrium between all Member States. The applicatin f this methd shall nt result in any f the current Member States receiving a higher allcatin f seats than at present. (d) Cuncil Presidency The EC Treaty prvides fr the ffice f President t be held in turn by each Member State in the Cuncil. In rder t give new Member States the time t prepare fr their Presidency the Eurpean Cuncil cnfirms that the present rtatin rder will cntinue until the end f The Cuncil will decide n the questin f the rder f Presidencies fr 2007 and nwards as sn as pssible and at the latest ne year after accessin f the first new Member States /02 14 ANNEX I

16 Annex 1 t ANNEX I THE WEIGHTING OF VOTES IN THE COUNCIL FOR THE PERIOD BETWE ACCESSION AND 31 DECEMBER 2004 MEMBER STATES VOTES Germany 10 United Kingdm 10 France 10 Italy 10 Spain 8 Pland 8 Netherlands 5 Greece 5 Czech Republic 5 Belgium 5 Hungary 5 Prtugal 5 Sweden 4 Austria 4 Slvakia 3 Denmark 3 Finland 3 Ireland 3 Lithuania 3 Latvia 3 Slvenia 3 Estnia 3 Cyprus 2 Luxemburg 2 Malta 2 TOTAL /02 15 Annex 1 t ANNEX I

17 Annex 2 t ANNEX I THE WEIGHTING OF VOTES IN THE COUNCIL AS FROM 1 JANUARY 2005 MEMBER STATES VOTES Germany 29 United Kingdm 29 France 29 Italy 29 Spain 27 Pland 27 Netherlands 13 Greece 12 Czech Republic 12 Belgium 12 Hungary 12 Prtugal 12 Sweden 10 Austria 10 Slvakia 7 Denmark 7 Finland 7 Ireland 7 Lithuania 7 Latvia 4 Slvenia 4 Estnia 4 Cyprus 4 Luxemburg 4 Malta 3 TOTAL /02 16 Annex 2 t ANNEX I

18 ANNEX II ESDP: IMPLEMTATION OF THE NICE PROVISIONS ON THE INVOLVEMT OF THE NON-EU EUROPEAN ALLIES Respect by certain EU Member States f their NATO bligatins 1. The Treaty n Eurpean Unin states (Article 17(1)): "The plicy f the Unin in accrdance with this Article shall nt prejudice the specific character f the security and defence plicy f certain Member States and shall respect the bligatins f certain Member States, which see their cmmn defence realised in the Nrth Atlantic Treaty Organisatin (NATO), under the Nrth Atlantic Treaty and be cmpatible with the cmmn security and defence plicy established within that framewrk." 2. Fr the Member States cncerned, this means that the actins and decisins they undertake within the framewrk f EU military crisis management will respect at all times all their Treaty bligatins as NATO allies. This als means that under n circumstances, nr in any crisis, will ESDP be used against an Ally, n the understanding, reciprcally, that NATO military crisis management will nt undertake any actin against the EU r its Member States. It is als understd that n actin will be undertaken that wuld vilate the principles f the Charter f the United Natins. Participatin f the nn-eu Eurpean Allies in peace-time ESDP cnsultatins 3. As agreed at the Nice Eurpean Cuncil, the EU will have permanent and cntinuing cnsultatins with the nn-eu Eurpean Allies, cvering the full range f security, defence and crisis management issues. Additinal meetings will be arranged as required. In particular, cnsultatins will, as apprpriate, invlve additinal meetings in the frmat f EU + 6 in advance f PSC and EUMC meetings where decisins may be taken n matters affecting the security interests f the Nn-EU Eurpean Allies. The bjective f these cnsultatins will be fr the EU and the nn-eu Eurpean Allies t exchange views, and t discuss any cncerns and interests raised by these Allies, s as t enable the EU t take them int cnsideratin. As with CFSP, these cnsultatins will enable the nn-eu Eurpean Allies t cntribute t Eurpean Security and Defence Plicy and t assciate themselves with EU decisins, actins and declaratins n ESDP /02 17 ANNEX II

19 4. The cnsultatins between the EU and the nn-eu Eurpean Allies will be carefully prepared, including by cnsultatins invlving the Presidency, Cuncil Secretariat, and the representatives f the nn-eu Eurpean Allies and thrugh circulatin f relevant dcuments. The meetings will be prperly fllwed up, including thrugh the circulatin by the Cuncil Secretariat f a recrd f the discussin. The bjective f these arrangements is t ensure that the cnsultatins are bth cmprehensive and intensive meetings, as prvided fr in the Nice arrangements, will be facilitated thrugh the appintment f permanent interlcutrs with the PSC. T prvide fr dialgue with the EUMC and t help prepare the meetings at Military Cmmittee representative level, the nn-eu Eurpean Allies may als designate interlcutrs with the Military Cmmittee. The designated interlcutrs with the varius EU bdies will be able, n a day-t-day basis, t pursue bilateral cntacts, which will underpin the regular cnsultatins. Relatins with the EUMS and natinal HQs invlved in EU-led peratins 6. Arrangements in NATO fr nn-nato EU members will be taken as a basis fr develping apprpriate arrangements fr the nn-eu Eurpean Allies in the EU military structures, bearing in mind the differences in military structures f the tw rganisatins. If peratinal planning is cnducted in NATO, the nn-eu Eurpean Allies will be fully invlved. If peratinal planning is cnducted in ne f the Eurpean strategic-level Headquarters, the nn-eu Eurpean Allies as cntributrs will be invited t send fficers t that Headquarters. Invlvement in EU-led exercises 7. The EU des nt intend t cnduct military exercises belw Frce HQ (FHQ) level. Exercises belw that level will remain the respnsibility f member states. 8. The EU is cmmitted t dialgue, cnsultatin and cperatin with the nn-eu Eurpean Allies and these arrangements will als need t be cvered in relevant exercises. 9. Arrangements fr the participatin f thse Allies in EU exercises will mirrr thse agreed fr their participatin in EU-led peratins. Nn-EU Eurpean Allies will be able t participate in EU exercises which envisage use f NATO assets and capabilities. Since there is als the pssibility f their participatin in EU-led peratins which d nt have recurse t NATO assets and capabilities, there will accrdingly be a need fr the nn-eu Eurpean Allies t participate in relevant exercises and fr the EU t prvide fr this. Nn-EU Eurpean Allies shuld be invited t bserve ther relevant exercises in which they d nt participate /02 18 ANNEX II

20 Mdalities fr participatin in EU-led peratins 10. In cnsidering the ptins fr respnse t a crisis, including a pssible EU-led peratin, the EU wuld take accunt f the interests and cncerns f nn-eu Eurpean Allies and cnsultatins between them wuld be sufficiently intensive t ensure this was the case. 11. In the case f an EU-led peratin using NATO assets and capabilities, nn-eu Eurpean Allies will, if they wish, participate in the peratin, and will be invlved in its planning and preparatin in accrdance with the prcedures laid dwn within NATO. 12. In the case f any EU-led peratin nt requiring recurse t NATO assets and capabilities, nn-eu Eurpean Allies will be invited, upn a decisin f the Cuncil, t participate. In taking decisins n participatin, the Cuncil will take accunt f the security cncerns f the nn-eu Eurpean Allies. In a specific case when any f the nn-eu Eurpean Allies raises its cncerns that an envisaged autnmus EU peratin will be cnducted in the gegraphic prximity f a nn-eu Eurpean Ally r may affect its natinal security interests, the Cuncil will cnsult with that Ally and, taking int cnsideratin the utcme f thse cnsultatins, decide n the participatin f that Ally, bearing in mind the relevant prvisins f the Treaty n Eurpean Unin quted abve and the statement in paragraph 2 abve. Invlvement in preparatin, planning and management f an EU-led peratin 13. The cnsultatins wuld cnstitute a frum fr the nn-eu Eurpean Allies, as ptential cntributrs t any EU-led military peratin t be engaged frm the earliest stages f a crisis in dialgue with the EU and t be cnsulted in the develpment f the EU's thinking. 14. Cntacts at all levels with nn-eu Eurpean Allies will be intensified as the pre-crisis stage unflds thrugh cnsultatins and ther arrangements. This prcess will be imprtant fr discussing prvisinal military cntributins frm the nn-eu Eurpean Allies during the pre-peratinal phase, and relevant military factrs during the develpment f strategic military ptins, in rder t infrm the planning and preparatin n which a Cuncil decisin t launch an EU-led peratin will be based. This will enable the views f the nn-eu Eurpean Allies, particularly their security cncerns and their views n the nature f an EU respnse t the crisis, t be taken int accunt by the Cuncil befre decisins n a military ptin /02 19 ANNEX II

ANNEX III FINANCIAL AND CONTRACTUAL RULES. Key Action 3 youth, in case there is only one participating organisation

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