Editorial note

Council Regulation 1655/2000 establishing the Financial Instrument for the Environment (LIFE) repealed Regulation EEC/1973/92 of 21 May 1992 which established LIFE and was the product of efforts to unify the several existing financial instruments in the Community. The general objective of LIFE is to contribute to the implementation, updating and development of Community environmental policy and legislation (Article 1). LIFE consists of three thematic components: LIFE-nature, LIFE-environment and LIFE-third countries (Article 2(1)). Projects financed by LIFE shall be of Community interest; be carried out by technically and financially sound participants; be feasible in terms of technical proposals, timetable, budget and value for money (Article 2(2)). Article 3 sets out the specific objective of LIFE-nature; Article 4 sets out the specific objective for LIFE-environment and Article 5 sets out the specific objective for LIFE-third countries. LIFE is open to the participation of accession candidates and east European countries in accordance with their Association Agreements (Article 6). Technical and financial reports for projects funded by LIFE are to be sent to the Commission by the beneficiary for the monitoring of the compliance of the project with the provisions of this Regulation (Article 9). The Commission may reduce, suspend or recover the amount of financial assistance granted in case of irregularities (Article 10).

LIFE is implemented in phases. The first phase, which ran from 23 July 1992 to 31 December 1995, was granted EUR 400 million. The second phase, which ran from 1 January 1996 to 31 December1999, was granted approximately EUR 450 million.