# EUR-Lex - 52011DC0749 - EN

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# 52011DC0749

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Building an open and secure Europe: the home affairs budget for 2014-2020 /* COM/2011/0749 final */**

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1.
Home affairs funding
1.1.
Home affairs funding in the wider context

The creation of an area of freedom, security
and justice is a cornerstone of the European project. Home affairs policies
contribute to this project by shaping a Europe where persons can enter, move
and live freely, confident that their rights are respected and their security
assured. An integrated approach to migration and security can bring benefits to
the EU and its non-EU partners. The growing importance of home affairs policies
has been confirmed by the Stockholm Programme[1]
and its Action Plan[2].
This is also one of the areas which have seen important changes under the
Lisbon Treaty[3].
In the field of internal security, the Commission's communication on the Internal
Security Strategy in Action[4]
identifies clear strategic goals and provides a basis for concerted action to
address common security challenges in the years to come. Through cooperation
and solidarity at EU level and with non-EU countries, substantial progress has
been made towards creating a more open and secure Europe.

In spite of this progress, Europe still
faces many challenges. A comprehensive, coherent and effective response is
needed to the challenge of migration. Citizens also expect the Union to contribute
to providing security by combating organised crime, terrorism and other threats.
The EU budget plays an essential role in turning the Union's home affairs
objectives into tangible results. The creation of an area of freedom, security
and justice is achieved by means of a range of 'tools' including spending
programmes, networks, large-scale IT systems and EU agencies.

In its Communication of 29 June 2011 on the
next Multiannual Financial Framework[5],
the Commission proposed a home affairs budget of €10.9 billion (current prices)
for the period 2014-2020 which represents a continuation of the level of
spending foreseen at the end of the 2007-2013 financial framework and remains below
1% of the overall EU budget. Building on evaluation results and stakeholder
consultation, the design of the next Multiannual Financial Framework is an
opportunity to better align spending at EU level with the Union's strategic
policy objectives. Crucially, it is also a chance to improve and simplify the
way funding is delivered. This Communication sets out how the Commission has
grasped these opportunities in the home affairs area.

1.2.
A look ahead: challenges in the home affairs
policy area

Over the next decades, the Union will
continue to face important challenges in the area of home affairs. It will need
to fight against trafficking in human beings and to properly address irregular
migration. At the same time, the Union must continue to show solidarity with
those in need of international protection. The completion of a more protective
and efficient Common European Asylum System which reflects our values remains a
priority.

Given demographic changes, structural
changes in the labour markets and patterns of competition for skills, a
forward-looking legal immigration and integration policy will be crucial for
enhancing the EU's competitiveness and social cohesion, enriching our societies
and creating opportunities for all. It should be seen in the context of the
seven flagship initiatives presented in the Europe 2020 Strategy[6] which aim to help the EU overcome
the current financial and economic crisis and achieve smart, sustainable and
inclusive growth.

Ensuring a safe and secure environment is
necessary and beneficial to the economic, cultural and social growth of the EU.
The EU has a decisive role to play, whether it is by addressing the threats of
serious and organized crime, cybercrime and terrorism, and by ensuring the
management of EU's external borders or by responding swiftly to emerging crises
caused by man-made or natural disasters. In the era of globalisation, where
threats are growing and
increasingly have a transnational dimension, no Member
State can respond effectively on its own. A coherent
and comprehensive European answer is needed to ensure that law enforcement
authorities can work effectively across borders and jurisdictions.

While law enforcement measures are
necessary to guarantee the security of Europe, it is of paramount importance
that such measures respect fundamental rights as enshrined in the Charter of
Fundamental Rights of the European Union.

Cooperation with non-EU countries and
international organisations is crucial to achieving these goals. Recent events
in Northern Africa have demonstrated how important it is for the EU to have a
comprehensive and coordinated approach to migration, borders and security. The
increasingly important external dimension of the EU's home affairs policies
must therefore be reinforced, in full coherence with the Union's foreign
policy.

1.3.
The added value of EU intervention

The management of migration flows and
security threats present challenges which cannot be dealt with by the Member
States acting alone. The EU budget is one of the Union's key tools to tackle
these challenges. It offers value added both by addressing the unbalanced calls
on different Member States in a Union without internal borders; and by
financing cross-border actions more efficiently than is possible at purely
national level.

Some Member States face a particularly heavy
pressure, for example, due to their specific geographic situation and the
length of the external borders of the Union that they have to manage. The
abolition of internal border controls must be accompanied by measures for the
effective control and surveillance of the Union's external borders. The
principle of solidarity and fair sharing of responsibilities between Member
States is therefore at the heart of the common policies on asylum, immigration
and external borders. The EU budget provides the means to address the financial
implications of this principle. In the area of security, serious and organised
crime, terrorism and other security-related threats are increasingly
cross-border in nature. Transnational co-operation and coordination between law
enforcement authorities is essential to successfully prevent and fight these
crimes, for example through the exchange of information, joint investigations, common
training activities, interoperable technologies and common threat and risk
assessments.

Dealing with migration flows, the
management of the EU's external borders and the security of the EU requires
substantial resources and capabilities from the Union, as well as from the Member
States. Improved operational co-operation and coordination involving the
pooling of resources in areas like training and equipment creates economies of
scale and synergies thereby ensuring a more efficient use of public funds and
reinforcing solidarity, mutual trust and responsibility sharing for common EU
policies among Member States. This is particularly relevant in the area of
security, where financial support for all forms of cross-border joint operation
is essential to enhance cooperation between police, customs, border guards and
judicial authorities.

In relation to the external dimension of
home affairs, the adoption of measures and the pooling of resources at EU level
will increase significantly the EU leverage necessary to convince third
countries to engage with the Union on those migration and security related issues
which are primarily in the interest of the Union and the Member States.

2.
Funding priorities
2.1.
The future home affairs budget at a glance

On 29 June 2011, the Commission presented
its proposal on the Multiannual Financial Framework. In the area of home
affairs, the Commission proposed an overall budget of €10,911 million (current
prices) for the period 2014-2020, a considerable increase compared to the
average over the current Multiannual Financial Framework (€6,449 million for
the period 2007-2013, current prices). This figure covers not only spending on
financial programmes but also funding for large-scale IT systems and the EU agencies
active in the home affairs area[7].

Home affairs budget 2014-2020 || € million (current prices)

Asylum and Migration Fund including Resettlement Programme and European Migration Network || 3,869

Internal Security Fund including new large-scale IT systems || 4,648

Existing large-scale IT systems and IT Agency || 822

Subtotal || 9,339

Agencies (Europol, Frontex EASO, Cepol and EMCDDA) || 1,572

Total || 10,911

2.2.
Two Funds to support home affairs policies

The Commission proposes to simplify the
structure of the home affairs programmes by reducing the number of Funds to
two: an Asylum and Migration Fund and an Internal Security Fund. Two comprehensive
financing frameworks are needed to support the very different but complementary
key policies of migration and security as they will be at the heart of home
affairs also in the period beyond 2013. The legal architecture of the Funds is
explained in Annex 1.

With an overall budget of €3,869 million
(current prices), the Asylum and Migration Fund will focus on people flows and
the integrated management of migration. The Internal Security Fund will have a
global budget of €4,648 million (current prices) to support the implementation
of the Internal Security Strategy[8]
and a coherent and comprehensive approach to law enforcement cooperation,
including the management of the EU's external borders.

Both Funds will have an external dimension to
support actions in and in relation to third countries which cater primarily for
EU interests and objectives, have a direct impact in the EU and its Member
States and ensure continuity with activities implemented in the territory of
the EU. This funding will be designed and implemented
in coherence with EU external action and foreign policy. It is not intended to
support actions which are development oriented and will complement, when
appropriate, the financial assistance provided through external aid
instruments. While those instruments either support beneficiary countries
development needs or support general EU political interests with strategic
partners, home affairs funds will support specific actions in third countries
in the interest of EU migration policy and EU internal security objectives. They
will therefore fill a specific gap and will contribute to completing the
toolbox at the disposal of the Union.

Each Fund will also provide for a rapid
response in the event of emergencies so that the EU can respond quickly and
effectively to migration or security-related crises.

2.2.1.
Asylum and Migration Fund

The Asylum and Migration Fund will focus on
the integrated management of migration flows covering different aspects of the
common EU asylum and immigration policy. It will support actions in
relation to asylum, legal migration and the integration of third-country
nationals, and return operations. Funding for these activities is currently
covered by three separate Funds, the European Refugee Fund, the European Fund
for the Integration of Third-Country Nationals and the European Return Fund
respectively.

In the area of asylum, the priority
is the development of the Common European Asylum System (CEAS) by ensuring the
efficient and uniform application of the EU acquis on asylum. Financial support
will therefore be provided for measures implemented to improve the reception
conditions of asylum seekers and asylum procedures in the Member States.

Efforts also need to be increased to set-up
a more effective system of responsibility-sharing between Member States and
with third countries. The Fund will therefore support the establishment of a Union
Resettlement Programme for which an amount of €560 million has been
earmarked. The aim of the Programme is twofold: to provide durable solutions to
an increased number of refugees by supporting their transfer from outside EU
territory and their establishment in an EU Member State; and to maximise the
strategic impact of resettlement through a better targeting of those persons
who are in greatest need of resettlement on the basis of common EU resettlement
priorities. These priorities will be established for two year-periods with the
involvement of the European Parliament and the Council and in cooperation with the
United Nations High Commissioner for Refugees (UNHCR) and the European Asylum
Support Office. The Fund will also support the transfer of beneficiaries of
international protection within the EU ('intra-EU relocation'). To this end,
financial incentives (lump sums) will be provided to those Member States that
commit to resettling or relocating a number of persons through a biennial 'pledging'
exercise on the basis of common EU resettlement priorities. In this context, the
Fund will also contribute to strengthening third countries' capacities, in
particular in the framework of Regional Protection Programmes.

In the area of the integration of
third-country nationals, funding has so far supported Member States in
setting-up national strategies for the integration of third-country nationals
or in strengthening the national strategies already in place. In the next
programming phase, focus will be on a local, more targeted approach, in support
of consistent strategies specifically designed to promote the integration of
third-country nationals at local or regional level such as civic orientation
courses, participation in social and civic life, equal access to services etc.
Particular attention will be paid to the specific needs of the most vulnerable
groups of migrants such as refugees, unaccompanied minors, elderly people and
victims of trafficking. In addition, pre-admission measures implemented in the
countries of origin will also be supported as a crucial means of facilitating
legal migration to the EU and promoting integration at an early stage. The
support provided by the Asylum and Migration Fund for the integration of
third-country nationals and actions by the European Social Fund for the improvement
of migrant's skills and labour market integaration will be complementary.

In order to facilitate legal migration, the
Fund will also provide financial support to third countries for the
implementation of measures in the framework of Mobility Partnerships taking
place either in the EU or in third countries and aiming at pursuing primarily EU
needs and priorities.

In relation to return, focus will
shift from capacity building for return management to support for sustainable
returns, assisted voluntary return programmes (without excluding forced return
operations) and reintegration measures, as well as for improving the treatment
of the target groups during the pre-return process, in particular the detention
conditions. Readmission agreements are an important tool for an efficient
management of migration flows, in particular in fighting irregular immigration,
and an important component of the EU return policy, because they facilitate the
swift return of irregular migrants. Funding will therefore be available to
strengthen third countries' capacities to readmit irregular migrants,
either in terms of reintegrating their own nationals or onward readmission of
third-country nationals to their countries of origin.

The first lessons drawn from the events in the
Southern Mediterranean demonstrate that the EU needs to be able to respond
rapidly and effectively to situations of crisis and sudden arrivals of a high
number of persons, including mixed flows. The Fund includes financial resources
which can be triggered quickly in response to different types of
migration-related crises. The widening of the scope of the Emergency Aid
Reserve, if agreed between the Commission, European Parliament and Council in
the context of the draft Interinstitutional Agreement on cooperation in
budgetary matters and on sound financial management[9], could also add financial means
in case of such emergencies.

2.2.2.
Internal Security Fund

The Internal Security Fund[10] responds to the call of the
Stockholm Programme for the creation of a Fund to support the implementation of
the Internal Security Strategy and a coherent and comprehensive
approach to law enforcement cooperation, including the management of the Union's
external borders. The activities currently supported by the Specific Programmes
ISEC (Prevention of and the fight against Crime) and CIPS (Prevention,
Preparedness and consequence management of Terrorism and other Security-related
risks) will therefore be covered by the Internal Security Fund, as well as
those supported by the External Borders Fund.

In relation to internal security,
the Fund will provide financial support for police cooperation, crime
prevention and the fight against serious cross-border crime, as well as for
crisis management and the protection of EU critical infrastructure. The Fund
will help to combat serious and organised crime in its many forms by
strengthening practical law enforcement cooperation through, for example,
financial support for joint operations of law enforcement authorities
(including Joint Investigation Teams), the pooling of resources, the exchange
of information and best practices or training for the law enforcement
community.

Funding will also be provided for the
development of common tools, including interoperable IT systems and secure
communication channels at Member State level necessary for law enforcement
cooperation. In order to combat the growing threat of cybercrime, financial
support will be provided for the setting up of a Cybercrime Centre through
which Member States and EU institutions will be able to build operational and
analytical capacity for investigations and cooperation with international
partners. In addition, funding is made available for particularly innovative
projects which aim at developing new methods or technologies, especially the
testing and validating of the outcome of EU funded security research. This will
help close the gap between the research results achieved with support from the
8th Framework Programme and their serial application in practice for
the benefit of the law enforcement community.

Financial support will also be provided for
critical infrastructure protection and for enhancing the capacity of
Member States and the EU to manage terrorism and other security related risks
and crisis situations. The Fund will also support measures cutting off
terrorists’ access to funding, including through the setting-up of a European Terrorist
Finance Tracking System (European TFTS)[11],
explosives and Chemical, Biological, Radiological and Nuclear (CBRN) substances.
Funding will also be available to promote actions to address the issue of
violent radicalisation and recruitment and to support victims of terrorism.

Support will also be provided for the external
dimension of internal security policy for example to cooperate with third
countries on issues directly affecting the Union such as trafficking in human
beings, drugs and weapons, dismantling international criminal networks,
preventing terrorism and other security-related risks.

Moreover, in the area of internal security,
there may be incidents or newly emerging threats which require a quick and
effective response at EU level, for example terrorist attacks or large-scale
cyber-attacks. An emergency response mechanism has therefore been built
into the Internal Security Fund to allow the EU to release funding for a rapid
initial intervention in collaboration with the Member States concerned. This
mechanism will complement the funding available under the EU Solidarity Fund,
created to come to the aid of any Member State in the event of a major natural
or man-made disaster, and the funding under the Civil Protection Financial
Instrument which deals with natural and man-made disasters (accidents).

In the area of external borders, it
is time to further support with the EU budget Member States' efforts on border
control and to do this in a more consistent and systematic way , based on the
notion of border control as a 'public service' carried out by the Member States
in the interest of and on behalf of the EU. The Fund will provide operating
support to help compensate the efforts made by Member States to secure the
external borders of the Union. Support will also be available for the
reinforced implementation of the Schengen acquis, consular co-operation on visa
(e.g. increasing local border traffic and creating common visa application
centres) and the further development of an integrated border management system by
improving, replacing and upgrading equipment/infrastructure for visa and
borders according to new technological developments. This would in particular
include enhancing the operational capabilities of the Member States within the
framework of EUROSUR standards.

In relation to the external dimension of
border management, the Fund will provide targeted support to enhance cooperation
with third countries and to reinforce certain key aspects of their border
surveillance and management capabilities in areas which are of particular
interest and which have a direct impact in the EU. For example, in the
framework of EUROSUR, funding could be made available to link third countries'
systems and infrastructures to the EU's in order to allow for the regular
exchange of information.

Large-scale IT systems: a particular
challenge

The large-scale IT systems which support
the management of migration flows across the external borders of the Union
bring a high EU added value. However, experience has shown that the development
and management of such system can be particularly challenging. In its June 2011
Communication, the Commission proposed to set aside a separate envelope of €822
million (current prices) for the management of existing large scale-IT
systems (Schengen Information System II, Visa Information System and
Eurodac). The management of these systems will be transferred from the Commission
to the future IT Agency when it begins operations in 2012.

In relation to new IT systems, a specific
programme with a budget of €1.1 billion (current prices) is created within
the Internal Security Fund for the development by the Commission and in the
Member States of future IT systems, such as the Entry/Exit System and the
Registered Traveller Programme (the 'smart borders' package)[12]. Development of these new
systems will not start until the European Parliament and the Council have
adopted the systems' legal basis setting out clearly their specifications.
Therefore no expenditure is expected until 2015, when the Commission envisages
to entrust the development of the systems to the IT Agency. A multiannual
strategic framework will set out the main actions to be carried out and their
corresponding budget as well as a timetable for implementation. In order to
achieve cost savings and to ensure technical consistency and a smooth
implementation, the Fund will cover the costs for the development of both the
central and national components of the new systems. When these systems become
operational, support for operational costs at central level would be
transferred to the IT Agency. Member States will be able to use the operating
support under their multiannual programmes to cover the operational cost of
these systems at national level.

3.
Improved delivery of funding
3.1.
Programming and management of home affairs
funding: focus on flexibility and results

The bulk of home affairs funding will be
implemented under the shared management method, i.e. in partnership with the
Member States. Shared management will therefore become the main delivery
mechanism for all home affairs policies, including internal security. However,
this will not be a mere continuation of the shared management system currently
in place but a move towards a more results-oriented and simplified shared
management.

Direct and indirect management will be
maintained for technical assistance, specific transnational or particularly
innovative projects and for most of the actions in and in relation to third
countries, as well as to support non-state actors, to promote events and
studies and to release funding quickly in the event of emergencies.

During the public consultation on the
future of home affairs funding, stakeholders raised demands for simplification
and easier access to funding. These demands were taken into account in the
design of the new home affairs Funds. In its resolution of 8 June 2011, the
European Parliament welcomed the Commission's intention
to reduce the number of home affairs financial instruments to a two-Fund
structure and where possible to move to shared management, believing that this
approach would contribute significantly to the increased simplification,
rationalisation, consolidation and transparency of home affairs funding[13].

Robust monitoring and evaluation arrangements
are essential in order to be able to measure the progress made in the
implementation of the Funds. However, migration and security are areas which do
not lend themselves to the definition and use of precise indicators because they
are essentially driven by external factors or difficult to monitor. For
example, the number of asylum seekers arriving in the EU depends on political
instability in third countries and it is difficult to measure the extent of irregular
immigration due to its clandestine nature. Spending levels for migration and
security should therefore not be made dependent exclusively on numerical data
which do not necessarily reflect the situation on the ground or are driven
mainly by external factors. For this reason, the evaluation and monitoring
arrangements proposed for the two Funds are based on both quantitative and
qualitative assessments (including risk assessments) which take into account a
range of indicators.

3.1.1.
Shared management

For the resources implemented under shared
management a flexible programming and reporting cycle is needed to ensure that
the Member States' national programmes are fully aligned with EU level
priorities and objectives.

The Commission proposes to move from the
current system of annual programming within a multiannual framework in line
with broadly defined political priorities to multiannual programming preceded
by a 'policy dialogue'. At the start of the next Multiannual Financial
Framework, the Commission will initiate a single senior-level policy dialogue
on home affairs funding with the individual Member States and, in the case of
some parts of the Internal Security Fund, the Schengen associated states, prior
to the negotiations on their multiannual programmes. By involving the central
responsible authority of each participating State and focusing on how it will
use EU funding to contribute to achieving all EU home affairs policy
objectives, the policy dialogue will lead to a better focus on objectives,
results and impacts (rather than inputs and outputs). The Commission will
inform the European Parliament of the outcome of the dialogue.

As a rule, the distribution of funding
between Member States will be based on a combination of a basic and a flexible
amount. The basic amount, calculated on the basis of objective criteria and
Member States' needs, will be allocated to the Member States at the start of
the next Multiannual Financial Framework. This will ensure continuity of
funding and give Member States the predictability they need to plan their
national programmes adequately. A flexible amount will be added to the basic
amount depending on each Member State's willingness to finance under its
national programme actions that respond to specific EU priorities (to be
distinguished from the 'Union actions' under centralised management). This
funding would be allocated in two phases, during the policy dialogue at the
start of the Multiannual Financial Framework and following a mid-term review in
2017. The envelope set aside for resettlement and/or relocation activities
under the Asylum and Migration Fund will be distributed between the Member
States on the basis of a biennial pledging exercise.

Taking into account the outcome of these
policy dialogues, the national multiannual programmes will describe the
baseline situation; lay down the general objectives the Member States are
seeking to achieve in the home affairs area and the specific objectives they
intend to achieve with the resources of the Fund. For those objectives, the
programme will identify targets and examples of key actions. In addition, a
financial plan will indicate how the allocated resources are to be committed
and spent over the entire seven year period.

In order to assess progress, the Member
States will have to report annually on the results achieved under their
programmes and financial management. The policy dialogue will be resumed in the
event a Member State requests changes to its multiannual programme. A mid-term
review in 2017 will be the occasion to re-examine the situation in the Member
States, the delivery of the programmes so far, and to allocate new resources
for the last three years of the next Multiannual Financial Framework
(2018-2020). These additional resources will be made available taking into
account risks/needs assessments and/or changing EU priorities. The Commission
will inform the European Parliament of significant changes to the multiannual
programmes and of progress in the implementation of the programmes in general.

The management and control systems to be
set up by the participating States will be simplified. In line with the revised
Financial Regulation, they will aim to strengthen accountability by assigning
responsibility for financial management to one authority, to reduce the number
of layers of control and to contribute to providing assurance on the accounts,
the proper functioning of the system, the legality and regularity of
transactions and respect of the principle of sound financial management.

3.1.2.
Centralised management (direct and indirect)

The funding that will be channelled through
the Member States’ national multiannual programmes will be complemented by
appropriations earmarked for policy-driven activities to be managed under direct
and indirect management.

Eligible actions are defined broadly in
order to provide for a range of tools for law making and policy coordination.
The so-called 'Union Actions' will provide support for transnational actions,
particularly innovative actions and most of the actions in and in relation to
third countries (external dimension). Funding will also be available for
emergency actions implemented under a rapid emergency mechanism, to support
networks such as the European Migration Network, technical assistance, studies
and events, as well as the development under the responsibility of the
Commission of new IT systems for the management of migration flows across the
external borders of the Union.

These allocations will be treated as a
single envelope, to be spent in view of policy developments or the situation in
Member States or third countries. It is therefore possible that in a given year
the full envelope will be spent on only one type of actions, for example
emergency actions.

At a time of an expected reduction in the
human and administrative resources available to the Commission, far less
recourse will be made to calls for proposals which are time-consuming and
labour intensive. In order to ensure flexibility and the quick and efficient
delivery of funding, emergency actions and 'Union Actions' will be implemented
by a range of actors such as international organisations (contribution
agreements) and civil society organisations (framework partnerships) or by entrusting
specific tasks to existing EU agencies such as Frontex, Europol and the EASO;
the latter bearing in mind that agencies are also subject to staff reductions.

4.
What changes? The main innovations

Simplification is a major concern of
stakeholders. The Stockholm Programme calls for "better/easier
access" of beneficiaries to home affairs funding. During the public
consultation on the future of home affairs funding, stakeholders also stressed
the need to reduce administrative burden and simplify.

Considerable efforts have therefore been
made to ensure that the new Funds are designed to optimise the delivery of
funding. That is why there are significant differences between the architecture
and regulatory framework of the new Funds and the set-up of the current
generation of home affairs spending programmes. The main innovations are:

An Asylum and Migration Fund and an
Internal Security Fund. Reducing the number of home
affairs Funds to two comprehensive financing frameworks facilitates an
integrated approach to spending on migration and security, making it easier to
fund actions which are at present on the nexus between financial instruments.
For example, due to the narrow definition of the target groups which can
benefit from assistance, support for the improvement of reception and detention
centres is currently spread across the European Refugee Fund and the Return
Fund, depending on the type of target group that will benefit from the
improvements (asylum seekers or those awaiting return). By bringing support for
such measures together under a single Asylum and Migration Fund, synergies can
be created and ultimately, economies of scale. Reducing the number of spending
programmes also increases the visibility of home affairs funding and therefore
ensures that the impacts and added value of home affairs spending are properly
appreciated. The actions funded by the home affairs Funds will seek full
coherence with other EU policies, such as cohesion policy and justice and
citizenship, and will be implemented in complementarity with the financial
assistance provided through the EU instruments which support those policies.

A common regulatory framework. A shared set of rules on programming, reporting, financial
management, controls and evaluation will generate a better understanding of the
rules by all stakeholders and will ensure a high degree of coherence and
consistency. Coherence is also reinforced by aligning the regulatory framework
of the home affairs Funds with the revised Financial Regulation, its
implementing rules and the rules that will apply to the other EU instruments
under shared management, in particular those covered by the Common Strategic
Framework.

A policy dialogue for improved and more
results-oriented shared management. Moving, under
shared management, to multiannual programming with a senior-level policy
dialogue will ensure that the Member States' national programmes are fully
aligned with EU policy objectives and priorities and focus on achieving results
and impacts. The discontinuation of annual programmes will reduce significantly
the administrative burden for the Commission, the Member States and the
beneficiaries. The distribution of appropriations between the Member States on
the basis of a combination of a basic and flexible amount will reconcile the
need for continuity and stability with the need for flexibility and adaptation
to change.

An external dimension. The external dimension components in each Fund will give the EU the
means to pursue and achieve EU home affairs policy priorities and cater primarily
for EU interests and objectives, supporting actions in third countries having a
direct impact in the EU and its Member States. By ensuring continuity of
financing, starting in the EU and continuing third countries and vice-versa,
the internal and external aspects of migration management and internal security
will be addressed more coherently for example in relation to the resettlement
of refugees, implementation of readmission agreements, regional protection
programmes, as well as cooperation with third countries to fight against
trafficking of human beings, prevent terrorism and reinforce their external
borders. Except for some specific actions, in particular under the Asylum and
Migration Fund, these activities will be implemented by the Commission
(centralised management) in partnership with third countries and key
international organisations and in full coherence and complementarity with the
Union's foreign policy and the funding provided through EU external aid
programmes. The EU's external aid instruments will remain the main source of
funding to support third countries' capacity building in the areas of migration
and security.

A better use of the expertise of the
home affairs agencies. The home affairs agencies
play an important role in supporting practical co-operation between the Member
States. In order to use more effectively the competences and expertise of the
home affairs agencies, the Commission envisages making use of the possibility
offered by the Financial Regulation to entrust the agencies with specific tasks
in the framework of their missions, in accordance with their legal bases and in
complementarity to their work programmes. This would be the case for actions
which are of an ad hoc nature and where their successful implementation relies
on the operational and technical expertise of the agencies. This is without
prejudice to the overall staff reductions foreseen.

An effective and rapid response to
crises. Recent events in Northern Africa illustrate
how important it is for the EU to be able to react quickly and effectively to
rapidly evolving crisis situations. A flexible emergency response mechanism in
the two Funds will allow the EU to respond appropriately to mixed migratory
flows and to crises in the area of internal security, such as terrorist attacks
or cyber attacks. Fast-track procedures will ensure that funding can be
released in a matter of days. Within the framework of shared management, Member
States also have the possibility of including a reserve amount for unforeseen
events in their multiannual programme. The Member State would be required to
notify the Commission of its intention to use this reserve but no revision of
the multiannual programme would be required, thus increasing flexibility in the
event of crises.

Annex
1

Legal architecture of the two Funds

Four legislative proposals are needed to
establish, in accordance with the Treaty, two Funds which can cover the policy
objectives of migration and security in a comprehensive manner, and to properly
underpin the operation of the two Funds through a common and simple framework.

Unlike the Asylum and Migration Fund, which
is established through a single Regulation, the creation of the Internal
Security Fund requires the adoption of two legislative instruments. This is due
to the Treaty provisions that apply to the home affairs area, in particular different
voting rules in the Council stemming from variable geometry pursuant to
Protocols 19 (on the Schengen acquis), 21 (the position of the United Kingdom
and Ireland in respect of the area of Freedom, Security and Justice) and 22 (on
the position of Denmark, including in relation to Title V, part three of the
Treaty).

The Internal Security Fund is therefore
created as a comprehensive financing framework which is composed of two separate
acts, setting up the different components of the Fund and laying down the
objectives, the eligible actions and the envelopes of each component:

·
A Regulation establishing, as part of the Internal
Security Fund, the instrument for financial support for police co-operation, preventing
and combating crime, and crisis management;

·
A Regulation establishing, as part of the Internal
Security Fund, the instrument for financial support for external borders and
visa.

The two Funds should function as much as
possible with identical delivery mechanisms and have a structure that resembles
as closely as possible that of other EU financial instruments under shared
management, in particular the Funds covered by the Common Strategic Framework.
This is achieved through the creation of a horizontal instrument, applicable to
the Asylum and Migration Fund and the two components of the Internal Security
Fund (either directly or through cross-references), laying down the rules on programming,
management and control, financial management reporting and evaluation. It will
also provide for the establishment of a common Committee.

The creation of this common instrument
presents three distinct advantages. First, it avoids duplication and reduces
significantly the number of (otherwise identical parallel) provisions in the
two Funds. Second, it achieves simplification and consistency because the same
rules will apply to all beneficiaries, regardless of which home affairs
instrument their funding comes from, thereby facilitating understanding of and
access to the Funds. Third, the establishment of a common Committee for both
Funds will encourage each participating State to designate one single
interlocutor for all home affairs policies.

[1]               Council document 17024/09 of 1-2 December 2009

[2]               COM(2010)171 final of 20 April 2010

[3]               OJ 2008 C115 of 9 May 2008

[4]               COM(2010)673 final of 22 November 2010

[5]               COM(2011)500 final of 29 June 2011

[6]               COM(2010)2020 final of 3 March 2010

[7]               European Police Office (EUROPOL), European Police
College (CEPOL), European Agency for the Management of Operational Cooperation
at the External Borders (FRONTEX), European Asylum Support Office (EASO), European
Monitoring Centre for Drugs and Drug Addiction (EMCDDA)

[8]               COM(2010)673 final of 22 November 2010

[9]               COM(2011)403 final of 29 June 2011

[10]             For the reasons set out in Annex 1, the Internal
Security Fund is set up through two separate instruments which jointly
constitute the Fund.

[11]             COM(2011)429 final of 13 July 2011

[12]             COM(2011)630 final of 25 October 2011

[13]             P7_TA(2011)0266 of 8 June 2011