ESA/C-M/CXXIX/Res. 2(Final)

Resolution on the Review of the Agency's System for calculating the Scale of Contributions for the Mandatory Activities

The Council, meeting at ministerial level,

HAVING REGARD to Resolution ESA/C- M/CXXII/Res.1(Final) adopted at Ministerial Level in Toulouse on 20 October 1995, in particular to Chapter II, paragraph 7 thereof setting up a Working Group of Council "with the task of reviewing, within the applicable provisions of the Convention, the Agency's system of calculating the scale of contributions for the funding of mandatory activities",

HAVING REGARD to the terms of reference of the Council Working Group Concerning the Review of the Agency's System for Calculating the Scale of Contributions for Mandatory Activities adopted by Council on 14 December 1995 (ESA/C/CXXIII/Res.4(Final)), including the request to study the criteria for definition and application of the special circumstances referred to in Article XIII.1.b of the Convention,

NOTING the outcome of the discussions in the Council Working Group as well as the Director General's proposal for the Agency's system for calculating the scale of contributions for the mandatory activities outlined in document ESA/C-M(97)5,

HAVING REGARD to Article XIII.1 of the Convention,

Chapter I

1. RECOGNISES that, although statistical aggregates other than the "Net National Products at Factor Costs" could be taken into account, the system and parameters used to date by the Agency in accordance with the provisions of the Convention have thus far achieved the necessary balance between the need for visibility in budgetary planning of the Member States and the requirement of basing calculations upon reliable, comparable economic data.

2. DECIDES that, with regard to the objective of improving as from the three-year period 1997-1999 and later the up-to-date quality and to overall equity of the scales of contributions to the mandatory activities, the calculations shall be based on the average conversion rates between the European Currency Unit and national currencies for the twelve-months period January to December of the year to which the statistical aggregates refer. The system of weighting factors decided by Council in 1987 shall cease to be applied as from the same 1997-1999 scale onwards, thus resulting in an equal weighting of all three statistical years of a given three-year period.

Chapter II

RECALLS the provisions of Article XIII.1.b of the Convention according to which "Council may, by a two- thirds majority of all Member States, decide in the light of any special circumstances of a Member State to reduce its contribution for a limited period", and in this regard:

1. STRESSES that this possibility is open to any Member State, and that Council should decide, on a case- by-case basis, on applications by Member States;

2. CONSIDERS that such decisions should be taken after careful examination of all economical relevant factors substantiating "Special Circumstances" and having bearing on the Member State's capacity to meet its financial obligations with regard to the mandatory activities;

3. RECALLS that, amongst others, a Member State's annual per capita income, whenever it is less than an amount to be decided by Council, as provided under Article XIII.1.b of the Convention, is a particularly relevant indicator when deciding on a request for a reduction in contributions; in addition its evolution will also be taken into account;

4. REQUESTS the Director General to publish on an annual basis starting in 1997 the figures of annual per capita income, and their evolution over the years, of all Member States, so that such data can be taken into account as a means to ensure fair treatment and equity in the examination of applications for a reduction in contributions.