- the exchange of information in particular in respect of proposed legislation,
- the preparation and translation of Community and Bulgarian legislation.
3. To this end, the cooperation shall include the provision of technical assistance and training.
Article 85. Audit and Financial Control Cooperation
1. The Parties shall cooperate with the aim of developing efficient financial control and audit systems in the Bulgarian administration following standard Community methods and proceedings.
2. Cooperation shall focus on:
- the exchange of relevant information on audit systems,
- the unification of audit documentation,
- training and advisors' operations.
3. To this end, technical assistance shall be provided by the Community as appropriate.
Article 86. Monetary Policy
At the request of the Bulgarian authorities, the Community shall provide technical assistance designed to support the efforts of Bulgaria towards the introduction of full convertibility of the leva and the gradual approximation of its policies to those of the European Monetary System. This will include informal exchange of information concerning the principles and the functioning of the European Monetary System.
Article 87. Money Laundering
1. The Parties will establish a framework for cooperation aimed at preventing the use of their financial systems for laundering of proceeds from criminal activities in general and drug offences in particular.
2. Cooperation in this area shall include administrative and technical assistance with the purpose of establishing suitable standards against money laundering equivalent to those adopted by the Community and international fora in this field, including the Financial Action Task Force (FATF).
Article 88. Regional Development
1. The Parties shall strengthen cooperation between them on regional development and land-use planning.
2. To this end, any of the following measures may be undertaken:
- the exchange of information by national, regional or local authorities on regional and land-use planning policy, and, where appropriate, the provision of assistance to Bulgaria for the formulation of such policy,
- joint action by regional and local authorities in the area of economic development,
- study of a joint approach for the development of regions situated on Bulgaria's border with the Community,
- exchange visits to explore the opportunities for cooperation and assistance,
- the exchange of civil servants or experts,
- the provision of technical assistance, with special emphasis on the development of disadvantaged areas,
- the establishment of programmes for the exchange of information and experience, by methods including seminars.
Article 89. Social Cooperation
1. With regard to health and safety, the Parties shall develop cooperation between them with the aim of improving the level of protection of the health and safety of workers, taking as a reference the level of protection existing in the Community. Cooperation shall comprise the following in particular:
- the provision of technical assistance,
- the exchange of experts,
- cooperation between firms,
- information and administrative and other relevant assistance to firms and training operations,
- cooperation in public health.
2. With regard to employment, cooperation between the Parties shall focus notably on:
- the organization of the labour market,
- job-finding and careers advice services,
- the planning and the implementation of regional restructuring programmes,
- the encouragement of local employment development.
Cooperation in this field shall be realized through actions such as the performance of studies, provision of the services of experts and information and training.
3. With regard to social security, cooperation between the Parties shall seek to adapt the Bulgarian social security system to the new economic and social situation, primarily by providing the services of experts and information and training.
Article 90. Tourism
The Parties shall increase and develop cooperation between them, which shall include:
- facilitating the tourist trade and, where appropriate, reducing relevant formalities,
- assistance to Bulgaria for the privatization of the tourist sector as well as for the working out of efficient state and company policies for establishing optimal legal administrative and financial mechanisms for its further development,
- increasing the flow of information through international networks, data bases, etc.,
- transferring know-how through training, exchanges, seminars,
- studying the opportunities for joint operations (cross-border projects, town-twinning, etc.),
- exchanging views and providing for appropriate exchanges of information on major issues of mutual interest affecting the tourism sector.
Article 91. Small and Medium-sized Enterprises
1. The Parties shall aim to develop and strengthen small and medium-sized enterprises (SMEs), in particular in the private sector, and cooperation between SMEs in the Community and Bulgaria.
2. They shall encourage the exchange of information and know-how in the following areas:
- improving, where appropriate, the legal, administrative, technical, tax and financial conditions for the setting-up and expansion of SMEs and for cross-border cooperation,
- the provision of the specialized services required by SMEs (management training, accounting, marketing, quality, control, etc.) and the strengthening of agencies providing such services,
- the establishment of appropriate links with Community operators in order to improve the flow of information to SMEs and promoting cross-border cooperation (for example the business cooperation network (BC-NET), Euro-info Centres, conferences, etc.).
3. Cooperation will include the supply of technical assistance in particular for the establishment of appropriate institutional support for SME's, at both national and regional level, regarding financial, training, advisory, technological and marketing services.
Article 92. Information and the Audiovisual Sector
1. The Community and Bulgaria shall take appropriate steps to stimulate the effective mutual exchange of information. Priority shall be given to programmes aimed at providing the general public with basic information about the Community and professional circles in Bulgaria with more specialized information, including, where possible, access to Community databases.
2. The Parties shall cooperate in the promotion of the audiovisual industry in Europe. The audiovisual sector in Bulgaria could most notably take part in activities set up by the Community in the framework of the Media programme under procedures laid down by the bodies responsible for managing each activity and in accordance with the provisions of the Decision of the Council of the European Communities of 21 December 1990, which established the programme. The Community will encourage the Bulgarian audiovisual sector to participate in the appropriate Eureka programmes.
The Parties shall coordinate and, where appropriate, harmonize their policies regarding the regulation of cross-border broadcasting, technical norms in the audiovisual field and the promotion of European audiovisual technology.
Cooperation could include inter alia the exchange of programmes, bursaries and facilities for the training of journalists and other media professionals.
Article 93. Consumer Protection
1. The Parties shall cooperate with the aim of achieving full compatibility between the systems of consumer protection in Bulgaria and the Community.
2. To this end, cooperation shall comprise, within existing possibilities:
- the exchange of information and experts,
- access to Community databases,
- training operations and technical assistance.
Article 94. Customs
1. The aim of cooperation shall be to guarantee compliance with all the provisions scheduled for adoption in connection with trade and to achieve the approximation of Bulgaria's customs system to that of the Community, thus helping to ease the steps towards liberalization planned under this Agreement.
2. Cooperation shall include the following in particular:
- the exchange of information,
- the development of appropriate infrastructure of crossing points between the Parties,
- the introduction of the single administrative document and the combined nomenclature by Bulgaria,
- the interconnection between the transit systems of the Community and Bulgaria,
- the simplification of inspections and formalities in respect of the carriage of goods,
- the organization of seminars and training periods,
- support in the introduction of modern customs information systems.
Technical assistance shall be provided where appropriate.
3. Without prejudice to further cooperation foreseen in this Agreement, and in particular Article 97, the mutual assistance between administrative authorities in customs matters of the Parties shall take place in accordance with the provisions of Protocol 6.
Article 95. Statistical Cooperation
1. Cooperation in this area shall have as its aim the development of an efficient statistical system to provide, in a rapid and timely fashion, the reliable statistics needed to support and monitor the process of economic reform and contribute to the development of private enterprise in Bulgaria.
2. The Parties shall cooperate in particular:
- to strengthen Bulgaria's statistical apparatus,
- to bring about harmonization with international (and particularly Community) methods, standards and classifications,
- to provide the data needed to maintain and monitor economic reform,
- to provide private-sector economic operators with the appropriate macro-economic and micro-economic data,
- to guarantee the confidentiality of data,
- to exchange statistical information.
3. Technical assistance shall be provided by the Community as appropriate.
Article 96. Economics
1. The Community and Bulgaria will facilitate the process of economic reforms and integration by cooperating to improve understanding of the fundamentals of their respective economies and the devising and implementing of economic policy in market economies.
2. To these ends the Community and Bulgaria will:
- exchange information on macro-economic performance and prospects and on strategies for development
- analyse jointly economic issues of mutual interest, including the framing of economic policy and the instruments for implementing it,
- through the programme of Action for Cooperation in Economics (ACE) in particular, encourage extensive cooperation among economists and managers in the Community and Bulgaria, in order to expedite the transfer of know-how for the drafting of economic policies, and provide for wide dissemination of the results of policy-relevant research.
Article 97. Drugs
1. The cooperation is in particular aimed at increasing the efficiency of policies and measures to counter the supply and illicit traffic of narcotic drugs and psychotropic substances and to reduce the abuse of these products.
2. The Parties shall agree on the necessary methods of cooperation to attain these objectives, including the modalities of the implementation of common actions. Their actions will be based on consultation and close coordination over the objectives and the policy measures in the fields targeted in paragraph 1.
3. Cooperation between the Parties will comprise technical and administrative assistance which could deal in particular with the following areas:
- the drafting and implementation of national legislation,
- the creation or strengthening of institutions and information centres and of social and health centres,
- inreasing the efficiency of the institutions engaged in combating illicit drug trafficking,
- the training of personnel and research,
- the prevention of diversion of precursors and other essential chemicals used for the purpose of illicit manufacture of narcotic drugs or psychotropic substances, by establishing suitable standards equivalent to those adopted by the Community and relevant international bodies, in particular the Chemical Action Task Force (CATF).
The Parties may agree to include other areas.
Title VII. CULTURAL COOPERATION
Article 98.
Taking into account the Solemn Declaration on European Union, the Parties undertake to promote, encourage and facilitate cultural cooperation. Where appropriate, the Community's cultural cooperation programmes or those of one or more Member States may be extended to Bulgaria and further activities of interest to both sides developed.
This cooperation may notably cover:
- exchange of non-commercial works of art and artists,
- film production and film industry, taking into account the cooperation in the audiovisual sector as envisaged in Article 92,
- translation of literary works,
- conservation and restoration of monuments and sites (architectural and cultural heritage),
- training for those dealing with cultural affairs,
- the organization of European-oriented cultural events.
Title VIII. FINANCIAL COOPERATION
Article 99.
In order to achieve the objectives of this Agreement and in accordance with Articles 100, 101, 103 and 104, without prejudice to Article 102, Bulgaria shall benefit from temporary financial assistance from the Community in the form of grants and loans, including loans from the European Investment Bank according to the provisions of Article 18 of the Statute of the Bank, to accelerate the economic transformation of Bulgaria and to help Bulgaria to cope with the economic and social consequences of structural readjustment.
Article 100.
This financial asssistance shall be covered:
- either within the framework of the Operation Phare foreseen in Council Regulation (EEC) No 3906/89, as amended, on a multiannual basis, or within a new financial multiannual framework established by the Community following consultations with Bulgaria and taking into account the considerations set out in Articles 103 and 104 of this Agreement,
- by the loans provided by the European Investment Bank until the expiry date of the availability thereof; following consultations with Bulgaria the Community shall fix the maximum amount and period of availablity of loans from the European Investment Bank for Bulgaria for subsequent years.
Article 101.
The objectives and the areas of the Community's financial assistance shall be laid down in an indicative programme to be agreed between the two Parties. The Parties shall inform the Association Council.
Article 102.
1. The Community shall, in case of special need, taking into account the G-24's guidelines for action and the availability of all financial resources, on request by Bulgaria and in coordination with international financial institutions, in the context of the G-24, examine the possibility of granting temporary financial asssistance:
- to support measures with the aim to introduce and maintain the convertibility of the Bulgarian currency,
- to support medium-term stabilization and structural adjustment efforts, including balance of payments assistance.
2. This financial assistance is subject to Bulgaria's presentation of IMF supported programmes in the context of the G-24, as appropriate, for convertibility and/or for restructuring its economy, to the Community's acceptance thereof, to Bulgaria's continued adherence to these programmes and, as an ultimate objective, to rapid transition to reliance on finance from private sources.
3. The Association Council will be informed of the conditions under which this assistance will be provided and of the respect of the obligations undertaken by Bulgaria concerning such assistance.
Article 103.
The Community financial assistance shall be evaluated in the light of the needs which arise and of Bulgaria's development level, and taking into account established priorities and the absorption capacity of Bulgaria's economy, the ability to repay loans and progress towards a market economy system and restructuring in Bulgaria.
Article 104.
In order to permit optimum use of the resources available, the Parties shall ensure that Community contributions are made in close coordination with those from other sources such as the Member States, other countries, including the G-24, and international financial institutions, such as the International Monetary Fund, the International Bank for Reconstruction and Development and the European Bank for Reconstruction and Development.
Title IX. INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 105.
An Association Council is hereby established which shall supervise the implementation of this Agreement. It shall meet at ministerial level once a year and when circumstances require. It shall examine any major issues arising within the framework of the Agreement and any other bilateral or international issues of mutual interest.
Article 106.
1. The Association Council shall consist of the members of the Council of the European Communities and members of the Commission of the European Communities, on the one hand, and of members appointed by the Government of Bulgaria, on the other.
2. Members of the Association Council may arrange to be represented, in accordance with the conditions to be laid down in its rules of procedure.
3. The Association Council shall establish its rules of procedure.
4. The Association Council shall be presided in turn by a member of the Council of the European Communities and a member of the Government of Bulgaria, in accordance with the provisions to be laid down in its rules of procedure.
5. Where appropriate, the European Investment Bank will take part, as an observer, in the work of the Association Council.
Article 107.
The Association Council shall, for the purpose of attaining the objectives of the Agreement, have the power to take decisions in the cases provided for therein. The decisions taken shall be binding on the Parties which shall take the measures necessary to implement the decisions taken. The Association Council may also make appropriate recommendations.
It shall draw up its decisions and recommendations by Agreement between the two Parties.
Article 108.
1. Each of the two Parties may refer to the Association Council any dispute relating to the application or interpretation of this Agreement.
2. The Association Council may settle the dispute by means of a decision.
3. Each Party shall be bound to take the measures involved in carrying out the decision referred to in paragraph 2.
4. In the event of it not being possible to settle the dispute in accordance with paragraph 2, either Party may notify the other of the appointment of an arbitrator; the other Party must then appoint a second arbitrator within two months. For the application of this procedure, the Community and the Member States shall be deemed to be one Party to the dispute.
The Association Council shall appoint a third arbitrator.