The PHARE Programme (English: Poland and Hungary Assistance in Restructuring Economies) was created in 1989 on the basis of a European Commission initiative. From 1999 Phare was the main instrument in preparing candidate states for EU membership. In the EU budget for the years 2000-2006 the amount of the funds was determined at EUR 1,56 billion annually for all countries. The moment Poland acceded to the EU the PHARE programme was replaced by structural funds.