the Danube-Drava-Sava Euroregional Cooperation STATUTE at its session held on May 22, 2002 in Osijek. I. BASIC PROVISIONS Article 1

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1 On the basis of Point 11, Paragraph 2 of the Danube-Drava-Sava Euroregional Cooperation Statute, the Danube-Drava- Sava Euroregional Cooperation Presidency passed the Danube-Drava-Sava Euroregional Cooperation STATUTE at its session held on May 22, 2002 in Osijek. I. BASIC PROVISIONS Article 1 The Danube-Drava-Sava Euroregional Cooperation (henceforth: Euroregion) is an international voluntary organization of territorial self-governmental units from the Republic of Hungary, Republic of Croatia, and Bosnia and Herzegovina and other territories spatially gravitating toward the Danube, Drava, and Sava Rivers, i.e., that comprise a spatial entity with the Euroregional area, provided that they access the Euroregion under the conditions and in the way stipulated by this Statute. Establishment of the Euroregion Article 2 The Euroregion was established upon the affixation of signatures to the Euroregional Statute in Pécs on November 28, 1998 by the Baranya County, County Seat of Pécs, and the Pécs-Baranya Chamber of Commerce and Industry from the Republic of Hungary; Osijek-Baranja County, City of Osijek, and the Croatian Chamber of Commerce County Chamber of Commerce in Osijek from the Republic of Croatia; and Tuzla-Drina Canton, Municipality of Tuzla, and the Chamber of Commerce of the Tuzla Region from Bosnia and Herzegovina as its founders. Title, Legal Status, and Languages Article 3 The Euroregion shall be operational under the title Euroregionalna suradnja Dunav-Drava-Sava, i.e., Duna-Dráva-Száva Euroregionális együttmúködés. The Euroregion does not have the status of a legal person. In its operation, the Euroregion shall respect the stipulations of international legal acts and the Members legislation. The Euroregional Members shall respect individual interests to establish and develop bilateral cooperation with other non- Euroregional territorial self-governmental units provided that this cooperation is not contrary to this Statute and the basic stipulated Euroregional objectives. The official Euroregional bodies languages shall be the languages of the Euroregional Members. Euroregional Insignia The Euroregion shall have its coat of arms and a flag. Article 4

2 The Euroregional coat of arms shall assume the form of a horizontal wave in a 1:3 ratio. Within the wave, three smaller blue waves shall be laid vertically one above the other, symbolizing the Danube, Drava, and Sava Rivers. In the center of the wave, a wreath of yellow stars symbolizing the EU sign shall be positioned. The Euroregional flag shall be white. The Euroregional sign shall be positioned centrally. The flag s wide-to-length ratio shall be 1:2. The Euroregion shall have its 70x33 mm squared seal with the Euroregional sign and the Euroregional titles in the Croatian and Hungarian language. Representation and Accreditation Article 5 The Euroregion shall be represented and accredited by its President, i.e., shall be deputized by a person authorized by this Statute or the competent body s decision in case of President s incapacitation. Public Honors Article 6 The Euroregion shall confer public honors for the acknowledgement of work on the promotion of objectives pertinent to the Euroregional existence and outstanding achievements and contribution of special significance for the development of activities from the Euroregional scope, as well as for the promotion of activities directed thereto. The outlook, form, criteria and conferral procedure pertinent to the Euroregional honors shall be stipulated by the acts promulgated by a body authorized by this Statute. Operational Openness Article 7 The Euroregional activities and its bodies operation shall be public. The Euroregion shall provide for the operational openness by virtue of Euroregional Members information on all the relevant issues from the Euroregional scope of activity, delivery of materials pertinent to the Euroregional bodies sessions and other notifications, thru the publicity of its bodies sessions and public information via media and other public communication resources. The Euroregion shall also safeguard its operational openness thru the issuance of publications of its own pursuant to a decision promulgated by a body authorized by this Statute. II. EUROREGIONAL ACTIVITIES Cooperational Fundaments Article 8 The Members shall be associated in the Euroregion in order to harmonize special interests and work jointly to obtain common objectives based upon the following: their geographic connectedness directing toward joint exploitation of common natural resources and usage of favorable transportation position in the European infrastructural network; this region s historical ties and relations; interest in the improvement of national minorities position on both sides of the border; interest in the promotion of interstate and interregional project realization; interest in the improvement of international relation status pertinent to their Members; determination to promote the process of Central European and Euro-Atlantic integrations of their mother states. 2

3 Cooperation Objectives Article 9 Starting from the fundaments stipulated in Article 8, the Members shall try to instigate, promote, and realize the development in the Euroregional area that would open a developmental perspective and material and spiritual progress to its inhabitants thru their joint operation. The Members shall subordinate their joint operation directed toward the following objectives: Activities achievement and development of mutual relations among the population and regional institutions as presuppositions for better acquaintance, understanding, collaboration and friendship; creation of conditions for a more successful experience and know-how flow and its application for the benefit of an overall regional development; creation of expert bases for the design of a sustainable development concept within the Euroregion while using joint and separated material resources, preserving the natural resources value, and protecting the environment; establishment of joint developmental interests, preparation, establishment, and harmonization of a joint developmental strategy within the systems of their mother states; development of mutual economic relations in a conjoined development. Article 10 In order to obtain the objectives stipulated by this Statute, the Euroregion shall: organize joint activities to promote the richness of diversities comprising a unique quality of togetherness; organize the preparation, design, and implementation of joint developmental projects; launches activities directed toward the incorporation of joint projects into the European integrations programmatic and financial mechanisms; organize the establishment and promote and support the development of cooperation in zoning, environmental protection, transportation and communications, economic affairs, tourism and hospitality industries, healthcare and social welfare, science, education, culture, sports and informative activities. Cross-Border Cooperation (CBC) Activities Article 11 The Euroregional Members shall promote and support the establishment and CBC conduct of a Members group along an individual international border in a spatially conditioned CBC content being congenial only with regard to the spatial segment specified. The Euroregional bodies shall establish a programmatic and organizational unity with the CBC forms established for the implementation of the aforementioned programs. III. MEMBERSHIP Member Status Acquisition Article 12 Each regional self-governmental unit, i.e., each local self-governmental unit equalized with a regional status, a regional selfgovernmental seat, and a regional chamber of commerce or industry, i.e., a congenial economic entities association from the territory of the Republic of Hungary, Republic of Croatia, and Bosnia and Herzegovina and other territories spatially gravitating to the Danube, Drava, and Sava Rivers, thus comprising a spatial entity with the Euroregional area, may become a Euroregional Member under the conditions and in the way stipulated by this Statute. 3

4 Accession Procedure Article 13 The accession procedure pertinent to a Candidate for the Euroregional membership status shall be initiated by the submission of the Candidate s Application Form, containing a decision of its competent organ expressing its intention to accede to the Euroregion and be obliged by the Statute as the organization s fundamental act, to a competent Euroregional body. The Candidate s application shall be debated and adjudicated upon by a competent Euroregional body authorized by virtue of this Statute. An Accession Declaration in a chartered form shall be signed with a new Euroregional Member based upon a positive decision promulgated by the body stipulated in the aforesaid item. Legal Succession Article 14 In case of a territorial reorganization within a state whose territorial self-governmental units comprise the Euroregional Members, whereby the borders or the Euroregional Member s identity are being modified, the Euroregional membership status shall be continued by the unit, i.e., by the units, being the Euroregional legal successors. Provided that a territorial unit that is not a direct legal successor is being created in the territory of a heretofore Member, the new unit shall pass thru a renewed accession procedure. Members Rights and Obligations Article 15 Directly, i.e., by virtue of the Euroregional bodies representatives, the rights, obligations, and Euroregional Members responsibilities shall especially comprise the following: Observer Status participation in the establishment of a joint Euroregional policy and program; decision-making on the Euroregional assets and resources and other issues stipulated by this Statute and other acts; agreement and mutual cooperation for the sake of mutual goal realization; participation in mutually interesting activities; implementation of mutually agreed activities; electors and appointees statuses in Euroregional bodies; regular and timely information on the activities of the Euroregion and its bodies and Euroregional financial transactions; membership due payment; preservation and promotion of Euroregional respect; adherence to the statutory and other Euroregional acts provisions. Article 16 Territorial self-governmental units and other interested institutions failing to fulfill the conditions from Article 12, i.e., wherefore a procedure pertinent to the recognition of the Member status described in Article 13 of this Statute remained nonimplemented or incomplete, may ask to obtain the Observer status within the Euroregion. A request pertaining to the recognition of the Observer status shall be debated and adjudicated upon pursuant to the procedure stipulated for the Member status recognition. An institution holding the Observer status shall enjoy the right to participate in the work of the highest Euroregional organ without the adjudicatory right as well as in the activities organized by Euroregional bodies. 4

5 Membership Cession Article 17 Euroregional membership shall cede: provided that the Euroregion cedes to exist; provided that its Member cedes to exists in the case stipulated by Article 14, Paragraph 2; in case of membership withdrawal subsequent to the submittal of Member s written affidavit; in case of Member s exclusion. Membership status pertinent to an individual Member may cede subsequent to its exclusion provided that a competent Euroregional body should establish that the Member acts contrary to the association objectives stipulated by this Statute and infringes upon the Euroregional interests, i.e., inflicts a serious damage to the Euroregion, viz., provided that a decision in this respect be promulgated by the competent body. IV. EUROREGIONAL ADMINISTRATION Euroregional Bodies Article 18 Euroregional bodies are: 1. Assembly; 2. President; 3. Executive Committee; 4. Working Bodies; 5. Supervisory Board. 1. Euroregional Assembly Composition Article 19 The Assembly is a representative and the highest Euroregional administrative body. The Assembly is comprised by Euroregional Members appointed in the way stipulated by the respective organizations acts. Each Euroregional Member shall have one (1) representative in the Euroregional Assembly. The Assembly representative status shall be established at the beginning of its session based upon the competent bodies written procuration concerning the Member delegating its representative. Representatives Clubs Article 20 For the sake of its interest harmonization and its correspondent representation within the Assembly, a Euroregional Members group from an individual state may establish its own Representatives Club in the Euroregional Assembly. 5

6 Scope of Activity and Competence Article 21 The Euroregional Assembly shall: a) discuss realization of accepted activity programs and other Euroregional acts; body-related and overall Euroregional activity reports; other issues of relevance for Euroregional operation; b) establish basic Euroregional active policy elements contained in its programs; assets procurement, allocation, and consumption modalities utilized by the Euroregion for the achievement of its goals; c) promulgate Euroregional Statute; body-related and Euroregional activity programs; financial plan and annual itemized statement; decisions on the new Member accession and the Observer status conferral; decision on the establishment of Euroregional public honors; other acts; d) elect and acquit Euroregional President and Vice-Presidents; Euroregional Executive Committee; Euroregional Supervisory Board. The Assembly shall also debate and adjudicate on other issues vested herein by the Euroregional Members. Sessions Article 22 The Assembly shall be in session when necessary, at least once a year. As a rule, the Assembly shall be convened each time in other state. The Assembly session shall be convened by the Euroregional President upon his/her own initiative or when asked by a Representatives Club; Executive Committee; Supervisory Board. The Assembly session shall be presided by the Euroregional President, unless the Assembly should elect a Working Presidency and assign the session presidency thereto. The Assembly may regulate the session preparation convention modality, session proceeding and decision-making, as well as other operational issues, by its Standing Orders in more detail. Decision-Making Article 23 The Assembly may pass a legal decision provided that the majority of its members participate in a session. 6

7 The Assembly shall adjudicate on procedural issues by the majority vote of its members present. The Assembly shall decide on other issues by the majority vote with regard to the overall members number, unless this Statute should stipulate other majority concerning the adjudication on certain issue. The Assembly shall decide on fundamental Euroregional acts (e.g., Activity Program, financial acts, etc.) by a majority comprising at least two thirds ( 2 / 3) of the members total. The Assembly shall unanimously decide on the Statute and the new Member accession. In the decision-making process pertinent to certain issues of Euroregional activity, especially concerning the acts mentioned in Paragraph 2 of this Article, a Representatives Club may veto the execution of the act passed up to the specified presupposition fulfillment. President and Vice-Presidents 2. President, Vice-Presidents, and Euroregional Presidency The Euroregion shall have a President and two (2) Vice-Presidents. The President and the Vice-Presidents shall be elected by the Assembly for a two-year mandate, each being from the other state with respect to each state s presidency sequence (rotary election). The Assembly shall elect the President and the Vice-Presidents upon a proposal of a Representatives Club, i.e., upon a proposal of a Members group, pertaining to a candidate s mother state. Pursuant to their positions, the President and the Vice-Presidents shall be the Executive Committee members. The Euroregional President shall convene and preside over the Assembly and Executive Committee sessions, affix his/her signature to their acts, harmonize the work of Euroregional bodies, represent and accredit the Euroregion and also execute other affairs stipulated by this Statute and other acts. In his/her work, the President shall be aided by the Vice-Presidents. In case of his/her incapacitation, the President shall be deputized by a Vice-President originating from the state that should assume the presidency pursuant to the application of the rotary election principle. Presidency Article 25 The President and the Vice-Presidents shall comprise the Euroregional Presidency as a coordination organ. The President and the Vice-Presidents shall be activity coordinators with regard to the Euroregional Members, each within his/her respective mother state. The Presidency shall coordinate the Executive Committee and Working Bodies operation and administer the operation of the Euroregional Secretariat. Composition 3. Executive Committee The Executive Committee shall be the Euroregion s executive organ. The Executive Committee shall have fifteen (15) members, elected by the Assembly for a four-year period. Pursuant to their positions, the President and the Vice-Presidents shall be the members of the Executive Committee. On the occasion of elections, the assembly shall safeguard a parity representation of Euroregional Members from an individual state disregarding the number of Members of the respective state. The Assembly shall elect the Executive Committee members upon a Representatives Club, i.e., upon a Members group, proposal with regard to the candidates mother states. 7

8 Responsibility Article 27 The elected Executive Committee members shall be collectively responsible to the Assembly for the Executive Committee s operation and shall be held individually responsible for the work of their own and the Executive Committee operation within the limits of authorization and duties vested herein. The Executive Committee and each its member may resign or be recalled prior to the expiration of their electoral mandate. An individual Executive Committee member and the Council as a whole may be recalled if they: fail to discharge the obligations stipulated by this Statute; act contrary to this Statute s provisions or a policy established by the Assembly. With regard to an individual Executive Committee member, s/he shall be acquitted of his/her duty should the organization s/he represents cede to be a Euroregional Member. Scope of Activities and Competence The Executive Committee shall: Article 28 propose to the Assembly the policy guidelines contained in the draft statute, programs, and other acts; assure the Assembly-promulgated act and policy implementation; execute the Financial Plan and dispose of the assets planned while taking care of the purpose and assets disbursement regularity and pass the implementational decisions; organize and harmonize the cooperation with other organizations; adjudicate on the Working Bodies establishment and nominate and acquit the members thereof, being incident to their work and discussing their proposals; edit and organize the Euroregional publishing and informative activities; nominate and acquit the Euroregional Office Secretaries; stipulate the organization of Euroregional expert affairs execution and pass the appropriate acts correspondent thereto; also execute other affairs vested herein by the Assembly, i.e., the tasks necessitated by the quotidian Euroregional functioning, unless they are vested in other organs competence by this Statue or other acts stipulations. Sessions Article 29 The Executive Committee shall operate and adjudicate in sessions. The Executive Committee shall be in session as necessary, at least once in three (3) months, being as a rule hosted in the other state each time. The Executive Committee shall be convened by the Euroregional President, i.e., by his/her proxy pursuant to his/her decision, or when asked by Presidency; one third ( 1 / 3) of the Executive Committee members; Supervisory Board. The Executive Committee shall decide by the majority of his members votes. The Council shall adjudicate on the session operational order as well as on other procedural issues by the majority vote of the members present. The Executive Committee may regulate its activity by the Standing Orders in more detail. 8

9 4. Working Bodies Establishment Article 30 In order to study certain issues; prepare, debate, and submit certain proposals; organize the implementation of established programs; harmonize the activity of various institutions; and accomplish other tasks of interest for the promotion of Euroregional affairs execution, the Executive Committee shall establish the standing and provisional working bodies. A decision on their establishment shall regulate their title, scope of activities and competency, composition, nomination and operation modality and their members mandate. Coordination Bodies Article 31 In the activities predominantly operationalized thru the collaboration of institutions founded for these purposes, the Executive Committee shall establish coordination bodies for the sake of their activity harmonization. Pursuant to the decision on a coordination body establishment, cooperation incumbents shall nominate their representatives in coordination bodies. CBC Bodies Article 32 Working bodies founded for the preparation and implementation of CBC programs of interest for the Members along an interstate border shall act pursuant to their foundation act. The Executive Committee shall establish cooperation with these working bodies and programmatically and actively involve them in the realization of Euroregional activity program. 5. Supervisory Board Composition Article 33 For the sake of regularity pertinent to the execution of Euroregional affairs, the Supervisory Board shall be established. The Supervisory Board shall have a President and two (2) members elected by the Assembly for a four-year mandate pursuant to the procedure and modality valid for the Executive Committee members election. A Supervisory Board member cannot simultaneously be an Executive Committee member. The Supervisory Board President and its members can be recalled under the conditions and in the modality valid for the Executive Committee members recall. Competence Article 34 The Supervisory Board shall be in charge of control with regard to the following fields: implementation of general acts and Euroregional bodies decisions; legal, responsible, and economically purposeful assets disposition; regularity of material and financial transactions. 9

10 Reporting Article 35 The Supervisory Board shall enjoy the right and obligation to notify the Assembly and the Executive Committee concerning its opinion on the phenomena observed. The body whereto the report is submitted shall have an obligation to consider it, establish its standpoint, and launch the measures pursuant to its authorization in order to eliminate the observed failures, i.e., shall have an obligation to propose the launch of such measures. The Board shall notify the Assembly concerning its activities and supervisory results as necessary, being at least once a year. V. EUROREGIONAL SECRETARIAT Article 36 The Euroregional Secretariat is a joint Euroregional administrative-technical and expert service. The Secretariat shall provide for the administrative-technical and expert support to the functionality of all Cooperation bodies. The Secretariat shall be organized in three (3) National Offices seated in Osijek, Pécs, and Tuzla. The Executive Committee shall regulate the organization and the Secretariat s operation mode by virtue of its act. Neither authorities nor responsibilities pertaining to the bodies whose affairs are executed by this service may be transferred to the Secretariat. The Office operations shall be regulated by the Secretaries nominated by the Executive Committee upon the Presidency s proposal. The overall Secretariat s operation shall be coordinated by the Secretary General. The Secretary General s duty shall be assumed by the Office Secretary of the President s mother state. The Executive Committee shall be incident to and evaluate the execution of expert and other affairs on the basis of report submitted annually, i.e., as necessary upon its request, by the Euroregional Secretary General. VI. FINANCING Assets Sources Article 37 The Euroregion shall procure the finances for the accomplishment of objectives pertinent to its existence and the tasks stipulated in its programs from the following sources: membership fees; revenues created thru an activity of its own; subventions, donations, and other voluntary contributions; international and other sources pertinent to project and other activities financing; other sources. Expenditures Spreadsheet Article 38 10

11 Up to the assurance of procurement of joint Euroregional sources wherefrom its activities shall be financed, the Euroregional bodies activities shall be financed as follows: accommodation costs, per diems, and interpretation costs shall be incurred to the meeting participants, i.e., to the participants in other activities, while the activity host shall cover the board-and-lodging costs and other meeting participants sojourn costs, i.e., the costs pertinent to the participants in other activities; the costs pertaining to the Secretariat Office activities shall be incurred to the host country wherein the Office seat is situated; joint projects shall be financed pursuant to the Financial Plan, construing one of its constituents, whereby the Financial Plan shall stipulate financial sources, as well as the source administration and consumption modalities. VI. TRANSITIONAL AND CONCLUSIVE PROVISIONS Cession of Existence Article 39 The Euroregion shall cede to exist subsequent to the decision promulgated by the Euroregional Assembly on an initiative or with a previous consent of all Representatives Clubs in the Euroregional Assembly, i.e., in case that only the Members from one state remain therein due to other Members withdrawal. Promulgation and Amendments to the Statute Article 40 The initiative for the promulgation, i.e., for an alteration and amendment to the Statute and other Euroregional general acts, may be launched by each Euroregional Member and Euroregional bodies. The procedure pertinent to a draft general act compilation pursuant to the launched initiative shall be mandatorily effectuated provided that the initiative is submitted, i.e., supported, by: Euroregional Members originating from a state, i.e., its Representatives Club in the Euroregional Assembly; Executive Committee. General Acts Promulgation Article 41 The competent Euroregional bodies shall promulgate the general acts whose promulgation is binding therefore by virtue of this Statute respecting a deadline amounting to six (6) months following the entry into force of this Statute. The provisions from Article 33 to Article 35 pertinent to the Supervisory Board establishment and operation shall enter into force on the day of procurement of finances placed at the Euroregional bodies disposal, i.e., on the day of the Euroregional financial transaction establishment. Existent Members Status Article 42 The Euroregional Members that have obtained the membership status up to the entry into force of this Statute shall continue to be regarded as the Euroregional Members irrespective of the accession procedure stipulated herein. Previous Statute Annulment Article 43 The Danube-Drava-Sava Euroregional Cooperation Statute signed in Pécs on November 28, 2002 shall be declared invalid on the day of entry into force of this Statute. 11

12 Entry into Force This Statute shall enter into force on the day of promulgation. Article 44 President Zoran Kovačević 12