# EUR-Lex - 52011DC0865 - EN

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# 52011DC0865

**JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL Global Europe : A New Approach to financing EU external action /* COM/2011/0865 final */**

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1.           Context

With 500 million inhabitants, accounting
for over 25 % of the world’s gross domestic product and a fifth of
worldwide trade, the European Union (EU) is a global player.
Assuming its responsibilities for global governance, the EU takes an active
political role and has specific regional and global interests. This is
underpinned notably by providing more than half of all international
development aid and being the world’s biggest donor of humanitarian assistance.
EU's role in global governance is reflected in its active support for
democracy, the rule of law, the protection of human rights and human security
alongside compliance with international environmental and social conventions, open
trade as well as a decent work agenda.

The world has changed. The present economic crisis underlines the need for Europe to have
deeper and stronger relations with its partners, including neighbouring
regions, as they have a major impact on Europe’s financial and economic
prospects. Security-related challenges have taken on new forms as the world
becomes more interconnected. Natural resource scarcities, a rapidly growing
world population and threats associated with climate change have questioned the
way we deal with our international partners.

The developing world is also changing
rapidly. A power shift is currently taking place with a lengthening list of
emerging powers entering the global arena. Brazil, Russia, India, China and
South Africa in particular have new ways of engaging with the rest of the world
and also often different values. The rules of global governance are being
redefined with the rise of the G20. Many areas of great interest to the EU,
such as sustainable development, security including non-proliferation,
disarmament and cyber-security, financial regulation, trade and investment,
climate change, biodiversity and the use of new technologies require
multi-lateral solutions.

In this more fluid global environment, the
EU has a key interest to promote a rules-based international system. Emerging
economies also play an increasing role in developing countries with south-south
trade outpacing north-south. The poorest countries, on the other hand, face an
increasing threat of marginalisation. Lastly, Europe’s immediate neighbourhood
is undergoing tremendous change with the initiation of democratic transition
processes in the Southern Mediterranean.

The European Union has changed. The Lisbon Treaty offers new scope to promote a comprehensive and consistent
EU approach. It sets out the overarching principles,
objectives and overall framework for EU external action and also establishes
the European External Action Service (EEAS), under the authority of the High
Representative and Vice President who is tasked with ensuring the consistency
of the Union's external action. The EEAS and the Commission co-operate closely
in the delivery of the Union's external policies, both in Headquarters and in
EU Delegations. The European Parliament was also given additional
powers, in particular under the budgetary procedure. New Treaty provisions on
EU relations with enlargement and neighbouring countries, development
cooperation, humanitarian aid and civil protection should be matched with
adequate legal and financial tools.

The Communication, ‘A Budget for Europe
2020’, adopted by the College on 29 June 2011 highlighted the areas where the
EU can play an important role in a changing and globalising world and is
clearly based on the Europe 2020 strategy and the new architecture of the
Lisbon Treaty. In the midst of a global economic crisis, the EU must more than
ever seek to target its resources where they are needed most and where they
could have the greatest impact and add the most value.

The overall objective for external action
under the new MFF will be to ensure that, despite the economic crisis and its
budgetary consequences, the EU is able to speak with one voice, to live up to
its ambitions in promoting democracy, peace, solidarity, stability and
prosperity and poverty reduction, both at global level and in our immediate
neighbourhood, and to help safeguard global public goods. These are the guiding principles for the proposals for revised
external action instruments accompanying this Communication[1].

2.           why should the European
Union invest in external relations?

2.1         An interconnected world

The relative weight of our main partners is
increasing, both in economic and political terms, making it ever more necessary
for the EU to speak with one voice. Events in other parts of the world can have
direct repercussions on European citizens. Man-made or natural disasters can quickly
undermine stability across many countries. As we have seen in the context of
the 'Arab Spring', events taking place in our neighbourhood have direct and
immediate consequences. The EU has a particular interest and
responsibility in proactively promoting democratisation leading to stability
and prosperity in this region.

Our societies are increasingly globalised.
Everyday life is shaped by global trends in international trade and investment,
energy, migration and climate change. The planet has to share limited resources
in a sustainable manner and we have to adapt to a changing landscape. At the
same time, and for the sake of stable and fair international governance, we
must continue our efforts to help all those who risk being left behind.

By the same token, EU internal policies can
have a direct impact on third countries and can often only be fully realised by
close co-operation with our international partners. Against this backdrop of
increasing interdependence and in light of its commitment to effective
multilateralism, the EU has a vital interest in actively participating in decision-making
processes on a global scale, in particular the multilateral fora such as the
UN, the WTO and the G8 / G20.

Addressing global challenges such as
climate change, biodiversity loss, terrorism, organised crime and
cyber-security and trade imbalances requires key players to work more tightly
together. The EU has to adapt to this new reality when pursuing its interests
abroad and needs to pursue a more coherent and consistent approach in its
bilateral and multilateral relations. The Union must be equipped to address all
developments potentially affecting our citizens, be it by seizing opportunities
or by anticipating possible risks and threats.

2.2         EU added value

In a globalised
world, joining forces has become all the more crucial. The EU’s added value is evident
in a number of areas:

·
Resources can be pooled for use on a broad range
of policies and instruments. All EU Member States can benefit from the EU’s
wide geographical representation in third countries which provide a platform to
addressing specific challenges, combining a range of instruments and measures
which individual countries are often unable to match.

·
Improving our negotiating position and political
leverage by increasing overall weight and representation on the basis of well-defined
common interests and commitments. Similarly advancing multilateral discussions
and solutions on matters of global concerns such as climate change,
environmental protection and energy security.

·
Projecting our policies, standards and values on
the basis of shared European interests where, starting with enlargement and
neighbourhood policies, the EU is best placed to accompany its partners in
their political and economic transformation, help them stabilise their
economies and align to EU rules and standards.

·
Implementing best practices that build high
international credibility in promoting human rights, pursuing democratisation,
including electoral observation, and improving governance. Similarly,
maintaining a high degree of neutrality and impartiality in delivering
humanitarian assistance, and finally, exploiting our long experience in
mobilising long-term and predictable development assistance on a global scale.

·
Achieving economies of scale in delivering
technical and financial assistance or cooperation activities, and providing
diplomatic and development services abroad.

3.           Strategic objectives

In line with
the June MFF Communication, the EU’s external financial instruments will pursue
the following strategic objectives[2]:

·
Promoting and defending EU values abroad,
putting human rights, democracy and the rule of law at the core of EU external
action,

·
Investing in the long-term prosperity and
stability of the EU’s neighbourhood and supporting the reform process in those
countries preparing for EU membership,

·
Supporting EU interests abroad, such as protecting
EU citizens, enhancing trade opportunities, promoting EU norms and standards, ensuring
energy security, etc.

·
Projecting EU policies to address major global
challenges, such as combating climate change, reversing biodiversity loss, and
protecting global public goods and resources.

·
Increasing the impact of EU development
cooperation, with the primary aim of contributing to eradicate poverty,

·
Enhancing mechanisms of European solidarity
following natural or man-made disasters,

·
Improving crisis prevention and resolution
capabilities, preserving peace, preventing conflict
and strengthening international security.

4.           Underlying principles

4.1         Seizing new opportunities

The emphasis
for the post-2013 period will be on adapting the EU's methods of designing,
programming and delivering external assistance to the new political, economic
and institutional realities while building on what has proven to be successful
so far.

Addressing
short-, mid- and long-term challenges on a variety of issues and mobilising a
mix of external instruments at EU and Member State level will require particular
efforts ensuring overall policy coherence in our engagement with our partners
in the pursuit of a comprehensive EU approach. The proposed revision of the
programming process will ensure greater consistency between the different areas
of EU external action and a more result-driven approach, while allowing
flexibility to respond to political priorities.

The new
generation of external instruments will facilitate political dialogue,
negotiations and implementation of existing and future agreements with
our partners in support of an overall political strategy for that country. In
this framework, policy coherence for development remains a key priority. At the
same time, the EU will strengthen its dialogue and coordination with other non-state
partners including civil society organisations (including social partners),
local authorities, multilateral organisations, international financial
institutions, other donors and the private sector.

4.2         Maximising impact of scare
resources

The EU must seek to target its resources
where they are needed most and where they could make the most difference. A
more differentiated approach to partnerships and aid allocation driven
by the country context is a core principle of this proposal. The
EU should continue to recognise the particular importance of supporting
development in its own neighbourhood and in Sub-Saharan Africa. On the other
hand, many countries are graduating from EU development assistance because they
are capable of funding their own development.

Assistance will be allocated on the basis
of country needs, capacities, commitments, performance and potential EU impact.
The specific needs of countries in vulnerable, fragile, conflict-affected and
crisis situations will be a priority. Differentiation will allow for different
forms of cooperation such as blending grants and loans from
international financial institutions, including the European Investment Bank. The
increased use of innovative financial instruments should mobilise additional
funding, including from the private sector. This will ensure maximum impact of
EU spending in the context of a very tight budgetary situation. The
EU will also ensure concentration of external spending, to avoid the
inefficiencies resulting from sectoral dispersion and aid fragmentation. More
focus should be placed on investing in the foundations and drivers of inclusive
and sustainable growth and on supporting human rights, democracy and other key
elements of good governance including the promotion of Gender equality and
women's right.

In a
fast-changing world, EU financial instruments have historically been hampered
by a lack of flexibility. The Instrument for Stability (IfS) was
created partly to address this issue. In order to further increase the EU’s capacity
to respond to unforeseen events, new mechanisms have been introduced for
revision of the instruments to increase flexibility, in particular by
earmarking funds for unforeseen needs and defining ad minimum
allocations.

Simplified rules and procedures for programming and delivering EU assistance, including in the
context of a revised Financial Regulation, are proposed for all external
instruments to ensure more effective delivery of EU assistance. Simplification
should first and foremost benefit partner countries and regions but will also
allow for more efficient management, through the reduction of administrative
burden. A horizontal legislative instrument will ensure a high degree of
harmonisation of financial provisions.

The EU will aim for mutual
accountability in allocating and disbursing funds. Overall, EU external
instruments will take greater account of human rights, democracy and good
governance when it comes to allocating external assistance to partner
countries. With enlargement and neighbouring countries, country allocations and
delivery of assistance should be more closely linked to progress in
implementing reforms. For developing countries, the EU will strengthen mutual
accountability in respect of commitments and the fulfilment of objectives as
agreed with partner countries. Indicative country allocations will be reviewed
according to changing conditions and the above-mentioned criteria. Humanitarian
aid will remain based on needs and on respect for the principles of neutrality,
impartiality and independence.

In line with the Lisbon Treaty provisions,
the new instruments will implement new mechanisms to ensure more democratic
debate on EU external assistance through a stronger involvement of the
European Parliament. An example of this is the use of delegated acts[3], which can increase the
flexibility of external instruments. Democratic scrutiny over the European
Development Fund (EDF) will also be improved by bringing it into line with the
Development Cooperation Instrument, while taking into account the specificities
of the instrument.

5.           A revised and simplified
programming process

A major innovation in this revision of EU
external instruments is in the changes proposed for the programming process. The
Lisbon Treaty sets out a clear obligation for the EU and its Member States to
coordinate their policies on external action[4],
including development cooperation[5].

5.1.        Agreeing on comprehensive
joint EU strategies

To achieve this goal and to generate more
impact and visibility in their relationships with third countries, the EU and
Member States need to have a clear shared strategy in their relations with a
partner country or region. In appropriate cases, this could mean drafting a Joint
Framework Document (JFD) on the basis of a joint analysis[6]. A JFD would integrate all aspects
of EU external action and all EU tools/instruments to achieve an adequate
balance between flexibility and predictability as well as between short-, medium-
and long-term objectives. The JFD would define strategic lines of action, and a
broad policy mix referring to the EU and Member States instruments and policies
to be used in a country or region taking into account diplomatic and political aspects
(Common Foreign and Security Policy, political dialogue, democracy and human
rights, etc.), development cooperation, humanitarian aid, security, and
the external projection of internal policies. As reflected in the proposed new
instruments, where a JFD is prepared for a partner country or region, it would
be used for the programming process and therefore no country paper for such
country or region shall be required.

5.2.        Promoting a more flexible
and reactive programming process

The EU needs to simplify its programming
process to make it more reactive to possible changes in the situation and make
it more flexible to facilitate joint programming with Member States, which should
become the norm for the EU. The programming of funds must be based on a clear strategy
laid down in strategy papers for each partner country or region with a
multi-annual allocation beyond a certain level[7].
Any of the following documents may be considered as a strategy paper:

1.      A partner country’s national strategy
paper (National Development Plan or similar) recognised by the Commission and
the EEAS services;

2.      A joint programming document prepared
by the EEAS and Commission services with Member States;

3.      A Country or Regional Strategy Paper
or its equivalent prepared by the EEAS and Commission services;

As mentioned above, the Joint Framework
Document (JFD) should also serve as a strategy paper, where there is one. Having
one of these papers does not exclude drafting others, but at least one is needed
for programming EU funds. In the neighbourhood region, for countries that have
concluded with the EU an Action plan or an equivalent document, Country Strategy
Papers will be replaced by Single Support Frameworks. For the Instrument for
Pre-accession Assistance, the new Country Strategy Papers will foster increased
coherence between all policy areas covered by the instrument.

On the basis of the strategy paper, the
programming of EU funds should, in principle, be laid down in a Multi-annual
Indicative Programme or its equivalent. EEAS and Commission services will
endeavour, wherever possible, to develop joint multi-annual programming
documents with the Member States.

EU funds are programmed in response to the
needs and strategies of partner countries and the programming period should
become, in principle, synchronised with their strategy cycles. The EU
programming cycle may vary from one country to the next, and the amount of
funds programmed upfront may therefore not cover all the 2014-2020 cycle nor
all the country indicative allocations.

A higher degree of flexibility is essential
for states in fragile, crisis and post-crisis, including conflict affected,
situations allowing EU assistance to be swiftly (re)programmed in line with the
JFD or Country Strategy Paper and/or any EU strategies on conflict prevention,
crisis response/management and peace-building. This should provide the
necessary mix of approaches and instruments in particular by ensuring an
appropriate balance between the security-oriented, development and humanitarian
approaches, and by seamlessly linking the short-term response with the long
term support.

The (re)programming process should mainly
focus on key areas like governance, re-establishing social service delivery and
livelihoods, peace and state building and address identified root causes for
fragility or (risk of renewed) conflict, as well as vulnerability to disasters.
The process of adoption or adjustment of the Multi-annual Indicative Programmes
should be shortened, given the speed at which political situations often evolve.
Programming documents will be reviewed if and when needed.

6.           Proposed structure for
the new Heading on External Action

6.1         Cooperation with partner
countries

The European Union will focus its work with
its external partners on four broad policy priorities in direct application of
the Treaty: enlargement, neighbourhood, cooperation with strategic partners and
development cooperation.

The Instrument
for Pre-accession Assistance (IPA) will
remain the financial pillar of the Enlargement Strategy, encompassing all aspects
of internal policies and thematic issues. The aim will be to ensure that
candidate countries and potential candidates are fully prepared for possible
accession by encouraging them to adapt emerging EU
strategies and policies into their national priorities.
Emphasis will be placed on support for political reforms, notably strengthening
the democratic institutions and the rule of law and promotion of human rights
and fundamental freedoms, socio-economic development, regional cooperation,
adopting and implementing the acquis, EU 2020 objectives, and preparing to
manage internal policies upon eventual accession. The coherence between the
financial support and the overall progress made in the implementation of the
pre-accession strategy will be strengthened.

The European Neighbourhood Instrument
(ENI) will benefit the EU’s neighbouring countries supporting deeper political
cooperation, closer economic integration with the EU and an effective and
sustainable transition to democracy. Cooperation with the EU’s neighbours will
be based on the ‘more for more’ principle, as proposed in the Joint Communication
of the High Representative of the EU for Foreign
Affairs and Security Policy and the European Commission ‘A new response to a changing Neighbourhood’[8].

The Development
Cooperation Instrument (DCI) will focus on combating poverty. It will
also contribute to the achievement of other objectives of EU external action,
in particular fostering sustainable economic, social and environmental
development as well as promoting democracy, the rule of law, good governance
and respect for human rights. It will be organised around:

i)       Geographic programmes to support
bilateral and regional cooperation with developing countries that are not
covered by the ENI, IPA or the European Development Fund. Given the need to address
partner countries' needs and priorities and secure their engagement, in line
with the international commitments on Aid Effectiveness, geographic programmes
will continue to be the dominant focus of the DCI.

ii)       Streamlined thematic programmes with
enhanced flexibility to allow for swift responses to new global challenges. The
‘programme for global public goods and challenges’ will target the main
global public goods and challenges, notably climate change, environment,
energy, human development, food security and sustainable agriculture, and
migration while ensuring coherence with the poverty reduction objective. No
less than 25 % of this programme will be spent on climate change and
environment objectives to reach the objective of the Europe 2020 strategy. At
least 20% of the global public goods and challenges programme will support
social inclusion and human development and notably key priorities such as basic
health and education. The ‘civil society organisations and local authorities
programme’ will aim to empower these actors to get involved in development strategies
and processes. iii)        The Pan-African programme in the DCI will support the
implementation of the Africa-EU Strategic Partnership in complementarity with
other instruments for cooperation with African countries and regions.

Due consideration will be given to
coherence and consistency of EU's overall policy through reinforcing the
mainstreaming of the external dimension of internal EU policies within the DCI
and its programming, taking into account the needs and priorities of partner
countries in line with the principles of aid effectiveness.

Links between humanitarian relief and
development aid will be better addressed through the differentiation concept
with a priority given to countries facing transition challenges in terms of
funds allocation. Specific modalities for programming and flexibility for
countries in crisis or post-crisis situations should promote better
coordination between relief rehabilitation and development. In this light, the
possibility of keeping unallocated funds would allow mobilisation of funds to
address transition challenges through amendment to the Multi-annual
Indicative Programmes.

Cooperation with African, Caribbean and
Pacific countries will mostly continue to be funded outside the Budget, under
the eleventh European Development Fund (EDF). Cooperation with
overseas countries and territories will also be covered by the EDF. The
differences in Member States’ contribution keys to the 11th EDF should be
brought closer to the general EU budget contribution keys in order to facilitate
the integration of the EDF in the EU budget at a later stage.

The EU-Greenland partnership aims to
preserve the close links between them, while supporting sustainable
development in Greenland society. This partnership should be reinforce and
include areas such as raw materials, given their significant economic potential
in that country.

The new Partnership
Instrument (PI) will advance and promote EU and mutual interests and give the Europe 2020 strategy a global reach. It replaces the
Industrialised Countries Instrument and will allow the EU to respond in an
effective and flexible manner to cooperation objectives arising from our relations
with partner countries and by addressing challenges of global concern. Although
there will be a focus on strategic partners and emerging economies, the
instrument will remain global in scope. It could also underpin new
relationships with countries graduating from bilateral development cooperation.
There will be no mandatory classification of expenditure as Official Development
Aid although this will remain possible. The Partnership Instrument could also contribute
to EU climate and biodiversity  but there will be no ex ante earmarking of
funds.

Future external instruments should also
enable the EU and its Member States to increase their impact in the political
and economic partnerships they are engaged in and to comply with the
commitments made in different fora. The EU has, for instance, the ambition to
allocate at least 20% of its budget to contribute to a low-carbon and
climate-resilient society and to mainstream action on
climate and biodiversity throughout its external instruments.

Moreover, in addition to the financial
envelope of "Erasmus for All" programme under Heading 1 of the EU
budget, and in order to promote the international dimension of higher
education, an indicative amount of EUR 1 812 100 000 from the different external
action instruments (Development Cooperation Instrument, European Neighbourhood
Instrument, Instrument for Pre-accession Assistance, Partnership Instrument and
the European Development Fund), will be allocated, in line with EU external
action objectives defined in Article 21 of the TEU, to actions of learning
mobility and to cooperation and policy dialogue with authorities/institutions/organisations
of the countries eligible under these external action instruments..

6.2         Promoting democracy and
human rights globally

Boosting the European Instrument for
Democracy and Human Rights (EIDHR) will enable the EU to provide more
support for the development of thriving civil societies and their specific role
as key actors for positive change in support of human rights and democracy.
This will include increasing the EU’s capacity to react promptly to human
rights emergencies and more support for international and regional human rights
protection mechanisms. Support will also be given to carrying out electoral
observation missions, following up their recommendations and improving
democratic and electoral processes.

6.3         Crisis prevention and
management

The Instrument for Stability (IfS)
will be increased to reflect a more challenging international context. The
non-programmable capacity will address crisis situations, including natural
disasters. The programmable capacity will focus on capacity building for crisis
preparedness and on addressing global and trans-regional threats such as
terrorism, organised crimes, illicit trafficking, protecting critical
infrastructure and public health and mitigating risks related to chemical,
biological, radiological, and nuclear materials. It will also support measures to ensure that the specific needs of women and
children in crisis and conflict situations, including their exposure to
gender-based violence, are adequately met.

The Instrument for Nuclear Safety
Cooperation (INSC) will continue to aim at promoting high levels of
nuclear safety, radiation protection and the application of efficient and
effective safeguards of nuclear material in third countries, in particular in
neighbouring countries, in support of international conventions and standards.

6.4         Other financial
instruments for external action

One of the other external instruments the
EU has at its disposal is Macro-Financial Assistance to third countries. This
instrument is used in exceptional circumstances to grant financial assistance
of a macroeconomic nature to address temporary balance of payments
difficulties. IMF participation is a precondition and its use is primarily
focussed on the EU neighbourhood. Any decision to grand MFA will be consistent
with the EU's external action priorities.

Although not detailed above, instruments
such as Humanitarian Aid and Civil Protection will continue to be funded under
the "Global Europe" heading of the MFF 2014-2020.

In addition, the Common Foreign and
Security Policy budget will continue to support action without military and
defence implications.

7.           Coherence between
instruments

Different instruments of EU external policy
action will continue to be implemented in the same country as has been the case
in the past. For those emerging economies who will graduate from bilateral
development cooperation, such as Brazil, China and India, different
partnerships should be established using the various instruments available to
them beyond bilateral development cooperation. These could include regional
development cooperation and thematic programmes under the Development
Cooperation Instrument, European Instrument for Democracy and Human Rights,
Instrument for Stability, Partnership Instrument, external components of
internal instruments.... In line with new Treaty, the EEAS and the Commission
services will place a particular emphasis on coherence in the mix of different
policies and instruments during their programming phase.

[1]               Instrument for Pre-accession
Assistance, European Neighborhood Instrument, Development Cooperation
instrument, Commission Decision of implementing Council decision on relations
between the European Union on the one hand and Greenland the Kingdom of Denmark
on the other, Partnership instrument, European Instrument for Democracy and
Human Rights, Instrument for Stability, Instrument for Nuclear Safety
Cooperation. This will also guide the use of instruments related to
Humanitarian Aid, Civil Protection and Macro-Financial Assistance.

[2]               COM(2011) 500 ‘A budget for
Europe 2020 — Part II’.

[3]               Based on Article 290 of the TFEU.

[4]               Articles
21 and 22 TEU.

[5]               Article
210 TFEU.

[6]               Except for Enlargement countries, where the strategic
planning of financial assistance is prepared by the Commission, based on the
Enlargement Strategy.

[7]               Exact amount to be decided. Provision is already made
in the draft DCI Regulation. As regards IPA, multi-annual programmes may be
adopted irrespective of the amount.

[8]               COM(2011) 303.