# EUR-Lex - 52013PC0663 - EN

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# 52013PC0663

**Proposal for a COUNCIL DECISION regarding transitional EDF management measures from 1 January 2014 until the entry into force of the 11th European Development Fund /* COM/2013/0663 final - 2013/0319 (NLE) */**

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EXPLANATORY MEMORANDUM

According to Article 1(5) of the 10th EDF
Internal Agreement, the funds of the 10th EDF shall no longer be committed
beyond 31 December 2013 unless the Council decides otherwise unanimously, on a
proposal from the Commission.

The Internal Agreement establishing the eleventh
European Development Fund (11th EDF) was signed by the Member
States, meeting within the Council, in June 2013. This Internal Agreement will
only enter into force after ratification by all the Member States. This process will probably not be concluded before January 2014.

Therefore the Commission proposes transitional
measures (‘Bridging Facility’) to
ensure the availability of funds for cooperation with African, Caribbean and Pacific countries and
with Overseas Countries and Territories, as well as for support expenditure, between January 2014 and the entry into
force of the Internal Agreement establishing the 11th EDF. This
facility shall be financed from balances and
decommitted funds of the 10th and previous EDFs.

It is also proposed that funds committed under this Bridging Facility shall be accounted for
under the 11th EDF, which means that they would not constitute additional
resources to the 11th EDF, and that the necessary measures shall be adopted as
soon as possible for the operational and financial management of this Bridging Facility.

The Commission therefore suggests that the Council
adopt the attached decision.

2013/0319 (NLE)

Proposal for a

COUNCIL DECISION

regarding transitional EDF management measures
from 1 January 2014 until the entry into force of the 11th European Development
Fund

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on European
Union and to the Treaty on the Functioning of the European Union,

Having regard to the Partnership Agreement
between the members of the African, Caribbean and Pacific (ACP) Group of
States, of the one part and the European Community and its Member States, of
the other part, signed in Cotonou, on 23 June 2000[1],

Having regard to the Council Decision on
the association of the Overseas Countries and Territories (OCTs) with the
European Community (‘Overseas Association Decision’)[2],

Having regard to the Internal Agreement
between the Representatives of the Governments of the Member States, meeting
within the Council, on the financing of Community aid under the multi-annual
financial framework for the period 2008 to 2013 in accordance with the ACP-EC
Partnership Agreement and on the allocation of financial assistance for the
Overseas Countries and Territories to which Part Four of the EC Treaty applies[3] (hereinafter referred to as
Tenth EDF Internal Agreement), and in particular Article 1(5) thereof,

Having regard to the proposal from the
European Commission,

Whereas:

(1)       Article 1(5) of the 10th
EDF Internal Agreement provides that the funds of the 10th EDF shall
no longer be committed beyond 31 December 2013 unless the Council decides otherwise
unanimously, on a proposal from the Commission.

(2)       Paragraph 5 of Annex Ib[4] (Multi-annual
financial framework for the period 2008 to 2013) to the ACP-EU Partnership
Agreement provides that the funds of the 10th
EDF, apart from amounts allocated to the Investment Facility, excluding the
related interest rate subsidies, shall no longer be committed beyond 31 December
2013, unless the Council of the European Union decides otherwise by unanimity,
on a proposal from the Commission.

(3)       Article 1(2) of Annex IIAa
of the Council Decision of 27 November 2001 on the association of the Overseas
Countries and Territories with the European Community provides that the funds
of the 10th EDF may no longer be committed after 31 December 2013,
unless the Council decided otherwise unanimously, on a proposal from the
Commission[5].

(4)       Article 13(3) of the 10th
EDF Internal Agreement provides that it is concluded for the same duration as
the multiannual financial framework of the ACP-EC Partnership Agreement, and
that it shall remain in force for as long as is necessary for all the
operations financed under the ACP-EC Partnership Agreement and the Association
Decision and the said multiannual financial framework to be fully executed.

(5)       The organisation and
functioning of the European External Action Service are described in Council
Decision 2010/427/EU.

(6)       The entry into force of
the 11th EDF may be delayed beyond 1 January 2014. It is therefore appropriate
to provide for transitional measures (a ‘Bridging Facility’) to ensure the
availability of funds for cooperation with African, Caribbean and Pacific
countries and with Overseas Countries and Territories, as well as for support
expenditure, between January 2014 and the entry into force of the Internal
Agreement, to be financed from balances and decommitted funds of the 10th and
previous EDFs.

HAS ADOPTED THIS DECISION:

Article 1

Pending entry into force of the Internal
Agreement of the 11th EDF, transitional measures in the form of action
programmes, individual measures and special measures for ACP partners, financing
decisions in support of OCTs, and specific action programmes for support expenditure
shall be financed from a Bridging Facility for the 11th EDF, composed of
balances from the previous EDFs and from funds decommitted from projects or
programmes under these EDFs. This Bridging Facility may also cover the grants
to finance the interest-rate subsidies and project-related technical assistance
allocated to the European Investment Bank as provided for in Articles 1, 2 and
4 of Annex II of the ACP-EU Partnership Agreement and in the new Overseas
Association Decision. These transitional financing measures shall aim at
facilitating the implementation of programming documents and at responding to
emergency assistance requirements.

Funds committed under this Bridging Facility
shall be accounted for under the 11th EDF. The shares of Member States
contributions stated in Article 1(2)(a) of the Internal Agreements of the 9th
and 10th EDF shall be reduced accordingly.

Article 2

Notwithstanding the state of the national
ratification process of the Internal Agreement by the Member States, the Council
shall adopt as soon as possible the regulations on the implementation of the 11th
EDF, which shall include the measures for the operational and financial
management of this Bridging Facility. Until the adoption of these regulations, for
the implementation of the Bridging Facility, Council Regulation (EC) No
617/2007 of 14 May 2007 on the implementation of the 10th EDF and Council
Regulation (EC) No 215/2008 of 18 February 2008 on the Financial Regulation applicable
to the 10th EDF shall continue to apply.

Article 3

The application of this Decision shall be
in accordance with Council Decision 2010/427/EU, establishing the organisation
and functioning of the European External Action Service.

Article 4

This Decision shall enter into force on the
day of its publication in the Official Journal of the European Union. It
shall be applicable from the 1 January 2014 until the entry into force of the 11th
EDF Internal Agreement.

Done at Brussels,

For
the Council

The
President

[1]               OJ L 317, 15.12.2000, p. 3. Agreement as amended by the Agreement
signed in Luxembourg on 25 June 2005
(OJ L 287,
28.10.2005, p. 4)
and by the Agreement signed in Ouagadougou on 22 June 2010 (OJ L 287,
4.11.2010, p. 3).

[2]               Council
Decision of 27 November 2001, 2001/822/EC, OJ L 314, 30.11.2001, p. 1, amended by Council Decision
2007/249/EC of 19 March 2007, OJ L 109, 26/04/2007, p. 33.

[3]               OJ L 247, 9.9.2006, p. 32.

[4]               Annex Ib as contained in Annex to Decision No 1/2006 of the ACP-EC
Council of Ministers (OJ L 247, 9.9.2006, p. 22).

[5]               OJ L
314 of 30.11.2001 p.1, as amended by Council decision of 19 March 2007 (OJ L
109 of 26.4.2007, p.37)