L 161/62 Official Journal of the European Communities 26.6.1999 COUNCIL REGULATION (EC) No 1265/1999 of 21 June 1999 amending Annex II to Regulation (EC) No 1164/94 establishing a Cohesion Fund THE COUNCIL OF THE EUROPEAN UNION, Having regard to the Treaty establishing the European Community, Having regard to Council Regulation (EC) No 1164/ 94 of 16 May 1994 establishing a Cohesion Fund (1), and in particular Article K of Annex II thereto, Having regard to the Commission (2), proposal  from the Having regard to the opinion of the European Parliament (3), Having regard to the opinion of the Economic and Social Committee (4), Having regard to the opinion of the Committee of the Regions (%), (1)  Whereas, in order to make the Fund more effective, the concepts of ‘project’, ‘groups of projects’ and ‘stages of a project” and the criteria for grouping should be defined; (2) Whereas the system of financial management should be simplified, while retaining its link with the actual implementation of operations; (3) Whereas, during the transitional period (1 January 1999 to 31 December 2001), all references to the euro should normally also be read as references to the euro as a monetary unit, as provided for in the second sentence of Article 2 of Council Regulation (EC) No 974/98 of 3 May 1998 on the introduction of the euro (%) bl (1) OJ L 130, 25.5.1994, p. 1. () OJ C159,26.5.1998, p. 11. (%) Opinion delivered on 6 May 1999 (not yet published in the Official Journal). () OJ C 407, 28.12.1998, p. 74. () OJ C 51, 22.2.1999, p. 10. (6) OJ L 139, 11.5.1998, p. 1. (4) Whereas the desired simplification should be accompanied by improved checks that expenditure has actually been incurred and by greater responibility by the Member State for ensuring sound financial management; (5)  Whereas the Commission and the Member State should improve their cooperation on checking projects and this cooperation should be made systematic; (6) Whereas, where irregularities are detected, there should be a system of financial corrections to protect the financial interests of the Community; (7)  Whereas Annex II to Regulation (EC) No 1164/ 94 should be amended accordingly, HAS ADOPTED THIS REGULATION: Article 1 Annex II to Regulation (EC) No 1164/94 is hereby amended as follows: 1. Article A shall be replaced by the following: ‘Article A Designation of projects, of stages or groups of projects 1. The Commission may, in agreement with the beneficiary Member State, group projects together and designate technically and financially separate stages of a project for the purpose of granting assistance.