# EUR-Lex - 52011PC0842 - EN

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# 52011PC0842

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing common rules and procedures for the implementation of the Union's instruments for external action /* COM/2011/0842 final - 2011/0415 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

A priority for the Commission within the
context of the Multiannual Financial Framework (MFF) is to simplify the
regulatory environment and facilitate the availability of Union
assistance to partner countries and regions, civil society organisations, SMEs,
etc. to the extent that they contribute to the objectives of the Regulation.

In the implementation of the new Instruments,
simplified and flexible decision-making procedures would allow a swifter adoption
of implementing measures and thus of delivery of EU assistance, in particular
for countries in crisis, post-crisis and fragility.

Furthermore, the revision of the Financial
Regulation, which is particularly substantial with regard to the special provision
on external actions, will facilitate the participation of civil society
organisations and small businesses in funding programmes, for example by
simplifying rules, reducing the costs of participation and accelerating award
procedures. The Commission intends to implement this Regulation using the new
flexible procedures provided for in the new Financial Regulation.

Against this background, the Commission
proposes a set of simplified and harmonised implementing rules and procedures
applicable to four geographic instruments, i.e. the DCI, ENI, IPA, and PI, and
to the three thematic instruments IfS, EIDHR, and INSC. In the case of the IPA
and ENI, however, the special characteristics of pre-accession and cross-border
cooperation will require additional and specific implementing rules and
procedures complementing as 'lex specialis' the common set provided by the
Common Implementing Regulation.

Both the EDF and the Greenland Decision will
remain outside the scope of that Regulation given the specificity of their
funding mechanisms.

2.           RESULTS OF CONSULTATIONS
WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENTS

Public Consultation

The Commission held a public consultation
on future funding for EU external action between 26 November 2010 and 31
January 2011. This process was based on an online questionnaire accompanied by
a background paper 'What funding for EU external action after 2013?'. In
general, the replies did not suggest the need for a substantial change in the
current implementing mechanisms, although a significant majority of respondents
supported increased flexibility and simplification in implementation.

Collection and use of Expertise

The Commission performed an internal review
of different reports (evaluations, audits, studies, mid-term reviews). The
review looked at what worked and what did not work, and drew lessons for the drafting
of the financial instruments.

The review showed that the current Instruments
contributed to progress towards the MDGs in developing countries. The
implementation modalities, such as budget support and the "sector-wide
approach", have allowed deeper cooperation with partner countries and a more
efficient division of labour through co-financing between donors.

Nevertheless, the review identified a
number of shortcomings. The current implementation process was assessed as too
complex and does not allow swift adjustments if required. These shortcomings
have been directly addressed in the present Regulation.

3.           LEGAL ELEMENTS OF THE
PROPOSAL

Part Five, Title III, Chapter 1 of the Treaty
of the Functioning of the European Union, provides the legal framework for
cooperation with partner countries and regions. Accordingly, the proposed
Common Implementing Regulation is based on Articles 209(1) and 212(2) of the
Treaty, and is presented by the Commission in accordance with the procedure
laid down in Article 294. Articles 310 to 320 TFEU being applicable to Euratom
(see Article 106a Euratom), the proposal can also cover the implementation of
financial cooperation under the INSC.

4.           BUDGETARY IMPLICATION

N/A

5.           MAIN ELEMENTS

(1)        Title I: Implementation –
Articles 1 to 3

Article 1 (Subject matter and principles) sets out the objectives of the Regulation which are to provide a
harmonised set of implementing rules for Relex Instruments, to protect the financial
interests of the Union, and to promote simplification and flexibility in
implementing these Instruments.

Article 2 (Adoption of Action
Programmes, Individual Measures and Special Measures) provides that financing decisions taken by the Commission are to be
in the form of action programmes, based on the multiannual programming
documents. Exceptionally, yet in line with the multiannual programming
documents, individual measures can be adopted outside the action-programme
framework. In the event of unforeseen and duly justified cases, the Commission
may adopt special measures not provided for in the multiannual programming
documents. The Article includes the comitology rules that need to be followed
for the adoption of the mentioned decisions, as well as the possible exceptions
thereto.

Article 3 (Support measures) defines the types of expenditure that represent support to the
implementation of this Regulation and which may be covered by Union financing
(e.g. preparation, follow up, monitoring, audit and evaluation activities,
provision of information and communication efforts). These measures can be
financed outside the scope of the programming documents.

(2)        Title II: Provisions on the
financing methods – Articles 4 to 6

Without being exhaustive and on the basis
of current practice and identified needs, Articles 4 to 6 cite the types
of financing that may be used under this Regulation. The introduced
modifications take into account the provisions of the latest Financial
Regulation. In particular, Article 4 provides for innovative instruments, such
as loans, guarantees, equity and risk-sharing instruments, and describes
possible arrangements with respect to taxes, duties and charges. It describes
that the measures under this Regulations may be implemented directly by the
Commission or indirectly by entrusting budget implementation tasks to any
entity or person listed in the Financial Regulation. This provision also
defines the type of co-financing (parallel or joint).

Article 7 (Protection of the financial
interests of the Union) lays down measures to
protect the Union's financial interests, and in particular to enable it
(notably the Commission, the Court of Auditors and OLAF) to carry out all the
necessary checks on the measures implemented.

(3)        Title III: Rules on
nationality and origin for public procurement, grant and other award procedures
– Articles 8 to 12

Articles 8 to 11 (Rules on nationality
and origin for public procurement and grant and other award procedures) lay down the conditions governing access to public procurement and
grant awards for the purposes of implementing the Regulation. The proposed
provisions are significantly simplified and indicate the objective to work
towards untied aid delivery. Nevertheless, the articles introduce in detail the
conditions for eligibility of third countries (reciprocity requirement,
participation in the implemented programme, non-eligibility of certain countries,
etc.) and exceptions thereto (unavailability of products or services provided,
extreme urgency, triangular cooperation, etc.).

Article 12 (Evaluation) commits the Commission to regularly evaluate the results of the implemented
policies and programmes, sectoral policies and the effectiveness of programming
itself. All relevant stakeholders will be associated to the evaluation and the
report will be shared with the Council and the European Parliament.

(4)        Title IV: Final provision –
Articles 13 to 17

Article 13 (Annual report) provides for an annual Commission report on the progress and
implementation of this Regulation. The report will be submitted to the European
Parliament and to the Council.

Article 14 (Climate action and
biodiversity expenditure ) provides for a specific
tracking system based on the OECD methodology (‘Rio markers’) .

Article 15 (Committees) describes the involvement of the relevant committees in the
implementation of this Regulation, adapted to the new comitology regulation[1].

Article 16 (Review and evaluation of the
Instruments) provides that by mid 2018 the Commission
shall prepare and submit a report evaluating the implementation of this
Regulation to the European Parliament and the Council, and, if appropriate, present
a legislative proposal introducing the necessary modifications. Likewise, this
report will assess the impact of the measures adopted on the basis of this
Regulation.

Article 17 (Entry into force) provides for the entry into force of the Regulation and its
application from 1 January 2014, without setting an expiration date.

2011/0415 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

establishing common rules and procedures
for the implementation of the Union's instruments for external action

THE EUROPEAN PARLIAMENT AND THE
COUNCIL OF THE EUROPEAN UNION,

Having regard to
the Treaty on the Functioning of the European Union, and in particular Articles
209(1) and 212(2) thereof,

Having regard
to the proposal from the Commission,

After
transmission of the draft legislative act to the national Parliaments,

Acting in
accordance with the ordinary legislative procedure,

Whereas:

(1)
The European Union should adopt a comprehensive
set of instruments covering a range of policies related to external action,
which require specific common rules and procedures for their implementation. These
are: the Development Cooperation Instrument (‘DCI’), the European Instrument
for Democracy and Human Rights (‘EIDHR’), the European Neighbourhood Instrument
(‘ENI’), the Instrument for Stability (‘IfS’), the Instrument for Nuclear
Safety Cooperation (‘INSC’), the Instrument for Pre-accession Assistance
(‘IPA’) and the Partnership Instrument (‘PI’).

(2)
These instruments generally provide that actions
to be funded on their basis should be the object of a multiannual indicative programming,
providing the framework within which financing decisions should be adopted in
accordance with the Financial Regulation[2],
and with the procedures provided for in Regulation (EU) No 182/2011 of the
European Parliament and of the Council of 16 February 2011 laying down the rules
and general principles concerning mechanisms for control by Member States of
the Commission's exercise of implementing powers[3].

(3)
The financing decisions should take the forms of
Annual or Multiannual Action programmes and Individual Measures when following
the planning provided for by the multiannual indicative programming, of Special
Measures where required by unforeseen and justified needs, and of Support Measures.

(4)
Taking into account the policy programming or
financial execution nature of those implementing acts, in particular their
budgetary implications, the examination procedure should in general be used for
their adoption, except for measures of a small financial scale. However, the
Commission should adopt immediately applicable implementing acts where, in duly
justified cases relating to the need for a swift response from the Union,
imperative grounds of urgency so requires.

(5)
In financing decisions the description of each
action, specifying its objectives, main activities, expected results, prospective
budget and timetable and performance monitoring arrangements should be further
approved in accordance with the procedures provided for in Regulation (EU) No
182/2011.

(6)
For the implementation of financial instruments,
when the management of the operation is entrusted to a financial intermediary,
the Commission decision should cover in particular provisions concerning
risk-sharing, the remuneration of the intermediary responsible for
implementation, the use and re-use of the funds and the possible profits.

(7)
The common set of rules and procedures should be
consistent with the financial rules applicable to the annual budget of the
Union laid down in a Regulation of the European Parliament and of the Council,
hereinafter referred to as "the Financial Regulation"[4], such reference being made in
all instances to the latest version of that Regulation in force, and including
the corresponding rules adopted by the Commission[5] for implementing the Financial
Regulation.

(8)
While financing needs of the Union’s external assistance
are increasing, the economic and budgetary situation of the Union limits the
resources available for such assistance. The Commission must therefore seek the
most efficient use of available resources, in particular by using financial
instruments that have a leverage effect. Such leverage effect is increased by
allowing funds invested and generated by the financial instruments to be used
and re-used.

(9)
The financial interests of the European Union
should be protected through proportionate measures throughout the expenditure
cycle, including the prevention, detection and investigation of irregularities,
the recovery of funds lost, wrongly paid or incorrectly used and, where
appropriate, penalties. These measures should be carried out in accordance with
the applicable agreements concluded with international organisations and third
countries.

(10)
Further provisions should be made for financing
methods, the protection of the Union's financial interests, rules on
nationality and origin, and evaluation of the Instruments,

HAVE ADOPTED THIS REGULATION:

TITLE
I

IMPLEMENTATION

Article 1

Subject
matter and principles

1.
This Regulation establishes the rules and
conditions for providing the Union's financial assistance to actions, including
action programmes and other measures, under the following Instruments: the
Development Cooperation Instrument (‘DCI’), the European Instrument for
Democracy and Human Rights (‘EIDHR’), the European Neighbourhood Instrument
(‘ENI’), the Instrument for Stability (‘IfS’), the Instrument for Nuclear
Safety Cooperation (‘INSC’), the Instrument for Pre-accession Assistance
(‘IPA’) and the Partnership Instrument (‘PI’), hereinafter also referred to
jointly as ‘the Instruments’ and singly as ‘the applicable Instrument’.

2.
The Commission shall ensure that actions are
implemented in accordance with the objectives of the applicable Instrument, and
in conformity with an effective protection of the financial interests of the
Union. The financial assistance provided on the basis of the Instruments shall
be consistent with the rules and procedures laid down in the Financial
Regulation, which provides the basic financial and legal framework for their
implementation.

3.
In applying this Regulation, the Commission
shall, where possible and appropriate in light of the nature of the action,
favour the use of the most flexible procedures in order to ensure an effective
and efficient implementation.

Article 2

Adoption
of action programmes, individual measures and special measures

1.
The Commission shall adopt annual or
multi-annual action programmes, where required based on the indicative programming
documents referred to in the applicable Instrument.

Exceptionally, in particular where an action
programme has not yet been adopted, the Commission may, on the basis of the indicative
programming documents, adopt individual measures under the same rules and
procedures as for action programmes.

In the event of unforeseen and duly justified
needs, circumstances or commitments, the Commission may adopt special measures
not provided for in the indicative programming documents. Special measures may
also be used to ease the transition from emergency aid to long-term development
operations, including measures to better prepare people to deal with recurring
crises.

2.
Action programmes and individual measures provided
for in paragraph 1 for which the Union's financial assistance exceeds EUR 10
million and special measures for which the Union's financial assistance exceeds
EUR 30 million shall be adopted in accordance with the examination procedure
referred to in Article 15(3).

That procedure shall not be required for action
programmes and measures below the above-mentioned thresholds, and for non
substantial amendments thereto. Non-substantial amendments are technical
adjustments such as extending the implementation period, reassigning funds
within the forecast budget, or increasing or reducing the size of the budget by
less than 20 % of the initial budget, provided these amendments do not
substantially affect the objectives of the initial action programme or measure.
In such case, action programmes and measures and non-substantial amendments
thereto shall be communicated to the European Parliament and to the Council within
one month of their adoption.

3.
On duly justified imperative grounds of urgency,
such as crises, post crisis and fragility situations or threats to democracy,
the rule of law, human rights or fundamental freedoms, the Commission may adopt
immediately applicable implementing acts, including amendments to existing
action programmes and measures, in accordance with the procedure referred to in
Article 15(4).

4.
Appropriate environmental screening, including
for climate change and biodiversity impacts, shall be undertaken at project
level including where applicable environmental impact assessment (EIA) for
environmentally sensitive projects, in particular for major new infrastructure.
Where relevant, strategic environmental assessments (SEA) shall be used in the
implementation of sectoral programmes. The involvement of interested stakeholders
in environmental assessments and public access to the results shall be ensured.

Article 3

Support
measures

1.
Union financing may cover expenditure for the
implementation of the Instruments and for the achievement of their objectives,
including administrative support associated with the preparation, follow-up,
monitoring, audit and evaluation activities directly necessary for such
implementation, as well as expenditure at Union delegations on the
administrative support needed to manage operations financed under the
Instruments.

2.
Provided that the activities listed in points
(a), (b) and (c) are related to the general objectives of the applicable
Instrument implemented through the action, Union financing may cover

(a)
studies, meetings, information, awareness-raising,
training, publication activities and any other administrative or technical
assistance expenditure necessary for the management of the actions,

(b)
research activities and studies on relevant issues
and the dissemination thereof,

(c)
expenditures related to the provision of
information and communication actions, including corporate communication of the
political priorities of the Union.

3.
Support measures may be financed outside the
scope of indicative programming documents. Where applicable, the Commission
shall adopt support measures in accordance with the advisory procedure referred
to in Article 15(2).

TITLE
II

Provisions
on the financing methods

Article
4
General financing provisions

1.
The Union's financial assistance may be provided,
inter alia, through the following types of financing envisaged by the Financial
Regulation:

(a)     grants;

(b)     procurement contracts for services,
supplies or works;

(c)     budget support;

(d)     contributions to trust funds set up by
the Commission;

(e)     financial instruments such as loans,
guarantees, equity or quasi-equity, investments or participations, and
risk-sharing instruments, possibly combined with grants.

(f)      shareholdings or equity
participations in international financial institutions, including regional
development banks.

The Union's financial assistance may also be
provided, in accordance with the Financial Regulation, through contributions to
international, regional or national funds, such as those established or managed
by the European Investment Bank, international organisations, Member States or
by partner countries and regions, for attracting joint financing from a number
of donors, or to funds set up by one or more donors for the purpose of the
joint implementation of projects.

2.
For the implementation of financial instruments
referred to in point (e) above and in accordance with Article 18(4) of the
Financial Regulation, revenues and repayments generated by one financial
instrument shall be assigned to the corresponding financial instrument as
internal assigned revenue. For financial instruments set up during the
Multi-annual Financial Framework 2007-2013, these revenues and repayments shall
be assigned to the equivalent new financial instrument in the period 2014-2020.

3.
The Union's financial assistance shall be
implemented by the Commission as provided for by the Financial Regulation, directly
by Commission departments, Union delegations and by executive agencies, or
indirectly by entrusting budget-implementation tasks to the entities listed in
the Financial Regulation, including under shared management with Member states.

4.
The types of financing referred to in
paragraph 1 and in Article 6(1), and the methods of implementation referred to in paragraph 3, shall be chosen
on the basis of their ability to achieve the specific objectives of the actions,
taking into account, inter alia, the costs of controls, the administrative burden, and the expected
risk of non-compliance. For grants, this shall include a consideration of the
use of lump sums, flat rates and scales of unit costs.

5.
Actions financed under the Instruments may be
implemented with parallel and joint co-financing.

In the case of parallel co-financing, an action
is split into a number of clearly identifiable components which are each
financed by the different partners providing co-financing in such a way that
the end-use of the financing can always be identified.

In the case of joint co-financing, the total
cost of an action is shared between the partners providing the co-financing and
the resources are pooled in such a way that it is no longer possible to
identify the source of financing for any given activity undertaken as part of
the action.

6.
While having recourse to a type of financing
referred to in paragraph 1 or Article 6(1), cooperation between the Union and its
partners may take the form, inter alia, of

(a)
triangular arrangements by which the Union
coordinates with third countries its assistance to a partner country or region,

(b)
administrative cooperation measures such as twinning
between public institutions, local authorities, national public bodies or
private law entities entrusted with public service tasks of a Member State and
those of a partner country or region, as well as cooperation measures involving
public-sector experts dispatched from the Member States and their regional and
local authorities,

(c)
contributions to the costs necessary to set up
and administer a public-private partnership, and

(d)
sector policy support programmes, by which the
Union provides support to a partner country's sector programme

(e)
in the case of the IPA and the ENI,
contributions to the countries' participation in Union programmes and agencies.

Article 5

Taxes,
duties and charges

Union assistance shall not generate, or
activate the collection of specific taxes, duties or charges.

Where applicable, appropriate provisions
shall be negotiated with partner countries in order to exempt from taxes,
custom duties and other fiscal charges the actions implementing Union's
financial assistance. Otherwise, such taxes, duties and charges shall be
eligible under the conditions laid down in the Financial Regulation

Article 6

Specific
financing provisions

1.
In addition to the types of financing referred
to in Article 4(1), the Union's financial assistance under the following Instruments
may be provided in accordance with the Financial Regulation also through the
following types of financing:

(a)
under the DCI and under the ENI, debt relief,
under internationally agreed debt relief programmes;

(b)
under the DCI and under the IfS, in exceptional
cases, sectoral and general import programmes, which may take the form of:

(i)         sectoral import programmes in kind;

(ii)         sectoral import programmes
providing foreign exchange to finance imports for the sector in question; or

(iii)        general import programmes
providing foreign exchange to finance general imports of a wide range of
products;

(c)
under the EIDHR direct award of:

(i)         low-value grants to human rights
defenders to finance urgent protection actions;

(ii)         grants to finance actions in the
most difficult conditions or situations referred to in Article 2(4) of the
EIDHR where the publication of a call for proposals would be inappropriate.
Such grants shall not exceed EUR 2 000 000 and shall have a
duration of up to 18 months, which may be extended by a further six months in
the case of objective and unforeseen obstacles to their implementation.

(iii)        grants to

–
the Office of the UN High Commissioner for Human
Rights;

–
the European Inter-University Centre for Human
Rights and Democratisation, providing a European Master's Degree in Human
Rights and Democratisation and an EU-UN Fellowship Programme, and its
associated network of universities delivering human rights post-graduate
diplomas, fully accessible to nationals of third countries.

2.
The Union's financial assistance under the IPA and
the ENI may be implemented in shared management with Member States, and in
indirect management for Cross Border Cooperation under the ENI, provided that
the sector-specific and complementing rules required by the Financial
Regulation and other appropriate provisions are included in a delegated act
adopted on the basis of the applicable Instrument.

3.
Budgetary commitments for actions under the IPA and
the ENI extending over more than one financial year may be broken down over
several years into annual instalments.

Article 7

Protection
of the financial interests of the Union

1.
The Commission shall take appropriate measures to
ensure that, when actions financed under this Regulation are implemented, the
financial interests of the European Union are protected by the application of
preventive measures against fraud, corruption and any other illegal activities,
by effective checks and, if irregularities are detected, by the recovery, or where
appropriate in cases where the state or a public institution of a third country
is the beneficiary, the restitution, of the amounts wrongly paid. Where
appropriate, effective, proportionate and deterrent penalties shall also be
applied.

2.
The Commission and the Court of Auditors shall
have the power of audit, on the basis of documents and on-the-spot, over all
grant beneficiaries, contractors and subcontractors and other third parties who
have received Union funds.

The European Anti-fraud Office (OLAF) may carry
out on-the-spot checks and inspections on economic operators concerned directly
or indirectly by such funding in accordance with the procedures laid down in Council
Regulation (Euratom, EC) No 2185/96[6]
with a view to establishing whether there has been fraud, corruption or any
other illegal activity affecting the financial
interests of the European Union, in connection with a
grant agreement or grant decision or a contract concerning Union funding.

Without prejudice to the first and second sub-paragraphs,
agreements with third countries and international organisations and grant
agreements and grant decisions and contracts resulting from the implementation
of this Regulation shall expressly empower the Commission, the Court of
Auditors and OLAF to conduct such audits, on-the-spot checks and inspections.

TITLE
III

Rules
on nationality and origin for public procurement, grant and other award
procedures

Article 8

Common
rules

1.
Participation in the award of procurement
contracts, grant and other award procedures for actions financed under this
Regulation for the benefit of third parties shall be open to all natural persons
who are nationals of, and legal persons which are effectively established in,
an eligible country as defined for the applicable Instrument in the following
Articles of this Title, and to International Organisations.

2.
In the case of actions jointly co-financed with
a partner, or implemented through one of the entrusted bodies in indirect
management, or implemented through a Trust Fund established by the Commission
in accordance with the Financial Regulation, countries which are eligible under
the rules of that body, as identified in the agreements concluded with the
co-financing or implementing body, or determined in the trust fund constitutive
act, shall be eligible notwithstanding the specific rules provided for in the
following Articles. The co-financing or implementing body shall in addition
agree to apply the eligibility rules laid down in this Regulation as specified
in the same agreements.

3.
In the case of actions financed by one of the
Instruments and, in addition, by another instrument for external action,
including the European Development Fund, or of actions of a global, regional or
cross-border nature involving also beneficiary countries eligible under the
rules of those instruments, the countries identified under any of these Instruments
may be considered eligible for the purpose of that action.

4.
All supplies and goods purchased under a procurement
contract, or in accordance with a grant agreement, financed under this
Regulation shall originate from an eligible country. However, they may
originate from any country when the use of the competitive negotiated procedure
is allowed. For the purposes of this Regulation, the term ‘origin’ is defined
in the relevant Union legislation on rules of origin for customs purposes.

5.
The rules under this Title do not apply to, and do not create nationality
restrictions for, natural persons employed or otherwise legally
contracted by an eligible contractor or, where applicable, subcontractor.

6.
Where the Financial Regulation provides for
discretion in the choice of the contractor, priority shall be given where
appropriate to local and regional procurement.

7.
By way of derogation from all other rules, eligibility
as defined in this Title may be restricted with regard to the nationality,
localisation or nature of applicants, where required by the nature and the
objectives of the action and as necessary for its effective implementation.
Such restrictions may apply in particular to the participation in awarding
procedures in the case of cross-border cooperation actions.

8.
Tenderers, applicants and candidates who have
been awarded contracts shall respect applicable environmental legislation
including multilateral environmental agreements as well as internationally
agreed core labour standards[7]

Article 9

DCI,
ENI, PI and INSC

1.
Tenderers, applicants and candidates from the
following countries shall be eligible to funding under the DCI, the ENI, the PI
and the INSC:

(a)
Member States, candidate countries and potential
candidates as recognised by the Union, and members of the European Economic
Area;

(b)
for the ENI, partner countries covered by the
ENI and the Russian Federation when the relevant procedure takes place in the
context of the multi-country and cross-border co-operation programmes in which
it participates;

(c)
developing countries and territories, as defined
as defined by the Development Assistance Committee of the Organisation for
Economic Cooperation and Development (‘OECD-DAC’), which are not members of the
G-20 group, , and overseas countries and territories covered by Council
Decision [2001/822/EC of 27 November 2001[8]];

(d)
developing countries as defined by OECD-DAC, which
are member of the G-20 group, and other countries and territories, when they
are beneficiaries of the action financed by the Union under the instruments
covered by this Article;

(e)
countries for which reciprocal access to
external assistance is established by the Commission. Reciprocal access may be
granted, for a limited period of at least one year, whenever a country grants
eligibility on equal terms to entities from the Union and from countries
eligible under the Instruments covered by this Article. The Commission shall
decide on the reciprocal access and on its duration in accordance with the advisory
procedure referred to in Article 15(2), and after consultation of the recipient
country or countries concerned; and

(f)
a Member State of the OECD-DAC, in the case of
contracts implemented in a Least Developed Country, as defined by the OECD-DAC.

2.
Tenderers, applicants and candidates from non
eligible countries or goods from non eligible origin may be accepted eligible
by the Commission in the case of:

(a)     countries having traditional economic,
trade or geographical links with neighbouring beneficiary countries, or

(b)     implementation of triangular
cooperation arrangements with third countries; or

(c)     urgency or of unavailability of
products and services in the markets of the countries concerned, or other duly
substantiated cases where the eligibility rules would make the realisation of a
project, a programme or an action impossible or exceedingly difficult.

3.
For actions implemented in shared management,
the relevant Member State to which the Commission has delegated implementation
tasks is entitled to accept as eligible, on behalf of the Commission,
tenderers, applicants and candidates from non eligible countries in accordance
with paragraph 2, or goods from non eligible origin in accordance with Article 8(4).

Article 10

IPA

1.
Tenderers, applicants and candidates from the
following countries shall be eligible for funding under the IPA:

(a)
Member States, beneficiary countries covered by
the IPA, members of the European Economic Area and partner countries covered by
ENI, and

(b)
donor countries for which reciprocal access to
external assistance is established by the Commission under the conditions laid
down in Article 9(1)(e).

2.
Tenderers, applicants and candidates from non
eligible countries or goods from non eligible origin may be accepted eligible
by the Commission in duly substantiated cases,

(a)
if the eligibility rules would make the
realisation of an action impossible or exceedingly difficult on the basis of
the unavailability of products and services in the markets of the countries
concerned, or extreme urgency, or

(b)
for implementing triangular cooperation
arrangements with third countries.

3.
For actions implemented in shared management,
the relevant Member State to which the Commission has delegated implementation
tasks is entitled to accept as eligible, on behalf of the Commission, tenderers,
applicants and candidates from non eligible countries in accordance with
paragraph 2, or goods from non eligible origin in accordance with Article 8(4).

Article 11

IfS
and EIDHR

1.
Without prejudice to the limitations inherent to
the nature and the objectives of the action as provided for in Article 8(7), participation
in the award of procurement contracts or grants, as
well as the recruitment of experts, shall be open without limitations under the
IfS and EIDHR.

2.
Under the EIDHR the following bodies and actors
shall be eligible for funding in accordance with Articles 4(1) and 6(1) (c):

(a)
civil society organisations, including
non-governmental non-profit organisations and independent political
foundations, community based organisations and private sector non-profit
agencies, institutions and organisations and networks thereof at local,
national, regional and international level;

(b)
public sector non profit-agencies, institutions
and organisations and networks at local, national, regional and international
level;

(c)
national, regional and international
parliamentary bodies, when this is necessary to achieve the objectives of the
instrument and the proposed measure cannot be financed under another Union
external assistance instrument;

(d)
international and regional inter-governmental
organisations;

(e)
natural persons, entities without legal
personality and, in exceptional and duly justified cases, other bodies or
actors not identified in this paragraph, when this is necessary to achieve the
objectives of the instrument.

Article 12

Evaluations
of actions

1.
The Commission shall regularly monitor and
review its actions, and evaluate the results of the implementation of sectoral policies
and actions, and the effectiveness of programming, where appropriate by means
of independent external evaluations, in order to ascertain whether the
objectives have been met and to enable it to formulate recommendations with a
view to improving future operations.

2.
The Commission shall send its evaluation reports
to the European Parliament and to the Council for information. Member States
may request to discuss specific evaluations in the Committees referred to in
Article 15. The results shall feed back into programme design and resource
allocation.

3.
The Commission shall associate to an appropriate
extent all relevant stakeholders in the evaluation phase of the Union
assistance provided under this Regulation.

TITLE IV

OTHER
COMMON PROVISIONS

Article 13

Biennal
report

1.
The Commission shall examine the progress made
in implementing the measures of financial assistance taken in external action
and shall submit to the European Parliament and to the Council a report every
two years starting in 2016 on the implementation and results and, as far as
possible, on the main outcomes and impacts of the Union's financial assistance.
This report shall also be submitted to the European Economic and Social
Committee and to the Committee of the Regions.

2.
The biennal report shall contain information
relating to the previous year on the measures financed, the results of monitoring
and evaluation exercises, the involvement of the relevant partners, and the
implementation of budgetary commitments and of payments appropriations. It
shall assess the results of the Union's financial assistance, using as far as
possible, specific and measurable indicators of its role in meeting the
objectives of the Instruments.

Article 14

Climate
action and biodiversity expenditure

The funding allocated in the context of the
Instruments shall be subject to an annual tracking system based on the OECD
methodology (‘Rio markers’), integrated into the existing methodology for
performance management of EU programmes, to quantify the expenditure related to
climate action and biodiversity at the level of the action programmes,
individual and special measures referred to in Article 2(1), and recorded
within evaluations and biennal reports. An annual estimate of the overall
spending related to climate action and biodiversity shall be made on the basis
of the adopted indicative programming documents.

FINAL PROVISIONS

Article 15

Committees

1.
The Commission shall be assisted by the
committees established by the Instruments.

2.
Where reference is made to this paragraph,
Article 4 of Regulation (EU) No 182/2011 shall apply.

Where the opinion of the committee is to be obtained
by written procedure, the procedure shall be terminated without result when,
within the time limit for delivery of the opinion, the chair of the committee
so decides or a simple majority of committee members so requests.

3.
Where reference is made to this paragraph,
Article 5 of Regulation (EU) No 182/2011 shall apply.

Where the opinion of the committee is to be
obtained by written procedure, the procedure shall be terminated without result
when, within the time limit for delivery of the opinion, the chair of the
committee so decides or a simple majority of committee members so requests.

4.
Where reference is made to this paragraph,
Article 8 of Regulation (EU) No 182/2011, in conjunction with Article 5 thereof,
shall apply.

The adopted decision shall remain in force for
the duration of the adopted or modified document, action programme or measure.

Article 16

Review
and evaluation of the Instruments

1.
No later than 31 December
2017, a report shall be established by the Commission on the achievement of the objectives of each of the Instruments by
means of result and impact indicators measuring the efficiency of the use of
resources and the European added value of the Instruments, in view of a
decision on the renewal, modification or suspension of the types of actions
implemented under the Instruments. The report shall, in addition, address the
scope for simplification, internal and external coherence, the continued
relevance of all objectives, as well as the contribution of the measures to the
Union priorities for smart, sustainable and inclusive growth. It shall take
into account any findings and conclusions on the long-term impact of the
Instruments.

2.
This report shall be
submitted to the European Parliament and to the Council, and shall be
accompanied if appropriate, by legislative proposals introducing the necessary modifications
to the Instruments.

3.
The values of the indicators
on 1 January 2014 shall be used as a basis for assessing the extent to which
the objectives have been achieved.

4.
Partner countries shall be
required by the Commission to provide all the data and information necessary,
in line with the international commitments on aid effectiveness, to permit the
monitoring and evaluation of the concerned measures.

5.
The longer-term impacts and the sustainability
of effects of the Instruments shall be evaluated in accordance with the rules and procedures applicable
at that time.

Article 17

Entry
into force

This Regulation shall enter into force on
the third day following that of its publication in the Official Journal of
the European Union.

This Regulation shall be binding in its
entirety and directly applicable in all Member States.

It shall
apply from 1 January 2014.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

[1]               Regulation (EU) No 182/2011. An Observer from the
European Investment Bank may take part in the Committees' proceedings with
regard to questions concerning the Bank, in accordance with the rules of
procedure of the committee (see Standard Rules of Procedure for Committees, OJ
C 206, 12.7.2011, p.11).

[2]               As referred to in recital 6.

[3]               OJ L 55, 28.2.2011, p. 13.

[4]               Currently Council Regulation (EC, Euratom) No
1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general
budget of the European Communities (OJ L 248, 16.9.2002, p. 1).

[5]               Currently Commission Regulation (EC, EURATOM) No
2342/2002 of 23 December 2002 laying down detailed rules for the implementation
of Council Regulation (EC, Euratom) No1605/2002 on the Financial Regulation applicable
to the general budget of the European Communities (OJ L
357, 31.12.2002, p. 1).

[6]               OJ L 292, 15.11.1996, p. 2.

[7]               The ILO core labour standards, Conventions on freedom
of association and collective bargaining, elimination of forced and compulsory
labour, elimination of discrimination in respect of employment and occupation
and the abolition of child labour.

[8]               OJ L 314 of 30.11.2001, p. 1