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17/ 06/ 2002

                           MILITARY IMPLICATIONS

The Council approved a general framework for financing operations having military or defence implications, under Article 28 TEU. This framework defines principles in particular for identifying of two types of costs:

- common costs, i.e. costs that cannot be allotted to individual States taking part in a crisis management mission. This covers a number of incremental costs for headquarters for EU-led operations (such as transport costs, administration, locally hired personnel, communications, transportation/travel within the operations area of HQs and barracks and lodging/infrastructure) and for providing support to the forces as a whole (such as infrastructure and additional equipment);

- all other costs, which will be considered as individual costs and will be financed on a "costslie where they fall" basis.

Moreover, the Council will decide on a case-by-case basis whether transportation of the forces, barracks and lodging for the forces will be funded in common.

A full review of this framework will take place after a first operation is concluded or by June 2004, or earlier if necessary, taking into account the lessons learnt from the conduct of operations and their administration.