PURPOSE: to adopt a replacement Regulation concerning the European Union financial contributions to the International Fund for Ireland (2007 to 2010), with a view to applying a Court ruling on the choice of legal basis.

LEGISLATIVE ACT: Regulation (EU) No 1232/2010 of the European Parliament and of the Council concerning European Union financial contributions to the International Fund for Ireland (2007 to 2010).

CONTENT: the Council adopted a regulation concerning EU financial contributions to the International Fund for Ireland in the years 2007-2010, aimed at supporting peace and reconciliation in that country.

Council Regulation (EC) No 1968/2006 of 21 December 2006 concerning Community financial contributions to the International Fund for Ireland (2007 to 2010) established the financial reference amount for the implementation of the Fund for the period 2007 to 2010.

In its judgment of 3 September 2009 in Case C-166/07 (European Parliament v Council of the European Union), the Court of Justice annulled Regulation (EC) No 1968/2006 as it was based only on Article 308 of the Treaty establishing the European Community (EC Treaty), ruling that the third paragraph of Article 159 EC Treaty and Article 308 EC Treaty were the appropriate legal bases. However, the Court also ruled that the effects of Regulation (EC) No 1968/2006 were to be maintained until the entry into force, within a reasonable period, of a new regulation adopted on the appropriate legal bases and that the annulment of Regulation (EC) No 1968/2006 was not to affect the validity of payments made or of undertakings given under that Regulation.

In accordance with the Court’s judgment, the new legislative act is put on a new dual legal basis (Article 175 and Article 352(1) TFEU) but its content is the same as that of Regulation No 1968/2006 which it replaces.

It should be recalled that the financial envelope for the implementation of the International Fund for Ireland (‘the Fund’) for the period 2007 to 2010 shall be EUR 60 million.

ENTRY INTO FORCE: 31/12/2010.

APPLICATION: Article 6 shall retroactively apply from 1 January 2007.

EXPIRATION: 31/12/2010.

The European Parliament adopted by 630 votes to 9, with 25 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council concerning the European Union financial contributions to the International Fund for Ireland (2007-2010).

It adopted its position at first reading under the ordinary legislative procedure (formerly know as the codecision procedure) subject to one technical amendment which aims to ensure that the European Union financial contributions are maintained until the end of 2010 and that the payments for projects are continued until 2013.

The Committee on Regional Development adopted the report by Seán KELLY (EPP, IE) on the proposal for a regulation of the European Parliament and of the Council concerning European Union financial contributions to the International Fund for Ireland (2007-2010).

The committee recommended that the European Parliament’s position at first reading of the ordinary legislative procedure (formerly know as the codecision procedure) should be to amend the Commission’s proposal with one technical amendment. To recall, the Fund aims to finance projects to promote understanding between the different communities in Northern Ireland until 2013.

PURPOSE: to change the legal bases of the regulation concerning the International Fund for Ireland.

PROPOSED ACT: Regulation of the European Parliament and of the Council

CONTENT: the EU has provided financial contributions to the International Fund for Ireland (IFI) from 1989. For the period 2005 to 2006 EUR 15 million was committed from the Community budget for each of the years 2005 and 2006 in accordance with Council Regulation (EC) No 177/2005 on Community financial contributions to the International Fund for Ireland. That Regulation expired on 31 December 2006 and was replaced by Council Regulation (EC) No 1968/2006 concerning Community financial contributions to the International Fund for Ireland (2007-2010). The regulation was adopted, like all previous regulations, on the basis of Article 308 of the Treaty establishing the European Community.

The European Parliament considered that the regulation should have been adopted under Article 159§3 of the Treaty establishing the European Community (now Article 175 of the Treaty on the Functioning of the European Union) and launched an action for annulment before the Court of Justice. The Court passed down its judgement on 3 September 2009 and ruled that both Articles 159§3 and 308 should be used as the legal basis and therefore annulled Council Regulation (EC) No 1968/2006 and asked the institutions to adopt a replacement regulation with a dual legal basis. In complying with the Court's ruling the European Commission is presenting a new proposal for a Regulation.

In comparison with the annulled regulation the proposal for a new regulation reflects in the recitals the dual legal basis .

All articles remain the same but Article 12 (on entry into force) provides for the retroactive application of Article 6 (on closure of the Fund) since in the annulled regulation the said article was providing for a closure strategy to be submitted to the Commission by June 2008. The closure strategy in question has indeed been submitted to the Commission and it has been approved.

Legal Basis : Article 175 and Article 352 (1) of the Treaty on the Functioning of the European Union.

FINANCIAL IMPLICATIONS: the proposal provides for EU contributions of EUR 15 million per year to the IFI for a period of 4 years from 2007 - 2010. The proposed new period will therefore end in 2010, which would coincide with the last year the Fund will be seeking financial contributions from the donors.

PURPOSE: to change the legal bases of the regulation concerning the International Fund for Ireland.

PROPOSED ACT: Regulation of the European Parliament and of the Council

CONTENT: the EU has provided financial contributions to the International Fund for Ireland (IFI) from 1989. For the period 2005 to 2006 EUR 15 million was committed from the Community budget for each of the years 2005 and 2006 in accordance with Council Regulation (EC) No 177/2005 on Community financial contributions to the International Fund for Ireland. That Regulation expired on 31 December 2006 and was replaced by Council Regulation (EC) No 1968/2006 concerning Community financial contributions to the International Fund for Ireland (2007-2010). The regulation was adopted, like all previous regulations, on the basis of Article 308 of the Treaty establishing the European Community.

The European Parliament considered that the regulation should have been adopted under Article 159§3 of the Treaty establishing the European Community (now Article 175 of the Treaty on the Functioning of the European Union) and launched an action for annulment before the Court of Justice. The Court passed down its judgement on 3 September 2009 and ruled that both Articles 159§3 and 308 should be used as the legal basis and therefore annulled Council Regulation (EC) No 1968/2006 and asked the institutions to adopt a replacement regulation with a dual legal basis. In complying with the Court's ruling the European Commission is presenting a new proposal for a Regulation.

In comparison with the annulled regulation the proposal for a new regulation reflects in the recitals the dual legal basis .

All articles remain the same but Article 12 (on entry into force) provides for the retroactive application of Article 6 (on closure of the Fund) since in the annulled regulation the said article was providing for a closure strategy to be submitted to the Commission by June 2008. The closure strategy in question has indeed been submitted to the Commission and it has been approved.

Legal Basis : Article 175 and Article 352 (1) of the Treaty on the Functioning of the European Union.

FINANCIAL IMPLICATIONS: the proposal provides for EU contributions of EUR 15 million per year to the IFI for a period of 4 years from 2007 - 2010. The proposed new period will therefore end in 2010, which would coincide with the last year the Fund will be seeking financial contributions from the donors.