L 197/38 Official Journal of the European Communities 21.7.2001 (Acts whose publication is not obligatory) COUNCIL COUNCIL DECISION of 16 July 2001 providing macro-financial assistance to the Federal Republic of Yugoslavia (2001/549/EC) THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, and in particular Article 308 thereof, Having regard to the proposal of the Commission, Having regard to the opinion of the European Parliament ('), Whereas: (1)  The Commission consulted the Economic and Financial Committee before submitting its proposal. (2)  Political changes in the Federal Republic of Yugoslavia and the Republic of Serbia have taken place leading to new democratic governments and the Federal Republic of Yugoslavia is making efforts to establish a well-func- tioning market economy. (3)  Within the Stabilisation and Association process, consti- tuting the framework for EU relations with the region, it is desirable to support efforts made to ensure a stable political and economic environment in the Federal Republic of Yugoslavia, with a view to evolving towards the development of a full cooperation relationship with the Community. (40  The Community provided an emergency assistance package of approximately EUR 200 million comprising food aid and medical and energy supplies to provide for the basic needs of the population during the winter of 2000/01. (5)  Financial assistance from the Community shall be instru- mental in bringing the Federal Republic of Yugoslavia closer to the Community. (6)  The Federal Republic of Yugoslavia has reached an understanding with the International Monetary Fund (IMF) on a comprehensive set of economic stabilisation () Opinion delivered on 5 July 2001 (not yet published in the Official Journal). (11) (12) and reform measures. The IMF approved a one-year stand-by arrangement on 11 June 2001. The Federal Republic of Yugoslavia has reached an understanding with the World Bank on a set of struc- tural adjustment measures to be backed by Structural Adjustment Loans and Credits in the areas of public finance reform, enterprise privatisation and banking restructuring. The authorities of the Federal Republic of Yugoslavia have requested financial assistance from the inter- national financial institutions, the Community, and other bilateral donors. Over and above the estimated financing which could be provided by the IMF and the World Bank, an important residual financing gap remains to be covered in the coming months in order to strengthen the country's reserve position and to support the policy objectives attached to that country's authorities' reform efforts. The authorities of the Federal Republic of Yugoslavia have committed themselves to fully discharge all outstanding financial obligations of all public entities of the Federal Republic of Yugoslavia towards the European Community and the European Investment Bank, and to accept the responsibility by way of guarantee for those obligations that are not yet due. Community macro-financial assistance to the Federal Republic of Yugoslavia in the form of a combination of a long-term loan and a straight grant is an appropriate measure to help, with other donors, ease the country's external financial constraints, supporting the balance of payments and strengthening the reserve position. The Federal Republic of Yugoslavia is temporarily eligible for highly concessional loans and facilities from the World Bank.