# EUR-Lex - 52011PC0843 - EN

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# 52011PC0843

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a Partnership Instrument for cooperation with third countries /* COM/2011/0843 final - 2011/0411 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

This proposal for a Partnership Instrument
replaces the financing Instrument for Cooperation with Industrialised and other
high income countries and territories (ICI)[1],
which came into force in 2007, and which has been the EU’s main vehicle for
collaboration with developed countries. The ICI has proved an effective toolbox
for providing a differentiated and appropriate response to widen and deepen the
cooperation with 17 countries (industrialised countries and high-income
territories in North America, the Asia-Pacific region and the Gulf region). It
has been recently extended to developing countries with the adoption of the
ICI+ proposal. However, as it is due to expire by the end of 2013; a new
financial instrument is needed.

Moreover, since the ICI Regulation entered
into force, we have seen in particular the emergence of economies such as
India, China and Brazil which are playing an increasingly prominent role in the
international economy and trade, in multilateral fora (UN and G20) and in
addressing challenges of global concern. While development and poverty
alleviation remain a key concern, these countries are progressively leaving
behind the status of developing nations. To sustain its own economic recovery,
the EU has a strategic interest in stimulating plausible efforts from these
countries to adequately tackle global challenges such as climate change.

The EU has also developed broad based
agreements with key partners and emerging economies to address bilateral issues
and matters of global concern. Implementation of these instruments (i.e.: as agreements,
declarations, action plans etc) requires a dedicated financing instrument so
that the EU has the means to promote its interests effectively worldwide and to
deal with global issues wherever the need arises.

In addition, the evolution of the
relationship with Russia, the financial crisis that has posed new challenges to
the world economy and its economic order, the increasing interdependence
between the EU and its key partners; the changing trade patterns, the growing
role of civil society and business/trade communities both in Europe and in
partner countries require more dialogue, integration and exchanges. There is an
increasing need to address social challenges (globalisation benefits unevenly
distributed and the heavy impact of the economic downturn on consumption,
incomes and job creation) as well as environmental and climate change
challenges. In this context, the growing role of emerging economies including
on south-south trade and cooperation issues, the need to combine development
assistance, trade instruments, business dialogues, infrastructural and
technological developments, and investment to support smart and inclusive growth,
trade integration, private sector development, social cohesion, reform and modernisation
programmes, have all made it necessary to put in place a new Instrument.

The EU does not currently possess a genuine
instrument that would allow it to co-operate with new emerging economies on
issues related to advancing core EU interests and on common challenges of
global concern (such as climate change for instance or the need to promote
sustainable development at all levels). Although the ICI has been extended to
cover developing countries, with the adoption of the ICI+ on 1st
December 2011, it is limited in scope.

The proposed Partnership Instrument is
designed to overcome this limitation of the EU’s ability to engage
internationally in the most effective way. It would fill the gap described
above and, in particular, allow the EU to pursue agendas beyond development
cooperation with global players, but also to defend core EU interests with any
other partner country as the need arises. It could also underpin new
relationships with countries graduating from bilateral development assistance.

In particular, it would pursue the
following specific objectives:

(a)
implementing the international dimension of the
“Europe 2020” strategy by supporting EU bilateral, regional and inter-regional
cooperation partnership strategies, by promoting policy dialogues and by
developing collective approaches and responses to challenges of global concern
such as energy security, climate change and environment;

(b)
improving market access and developing trade,
investment and business opportunities for European companies, in
particular SMEs, by means of economic partnerships and business and regulatory cooperation;

(c)
enhancing widespread understanding and
visibility of the Union and its role on the world scene by means of public
diplomacy, education/academic cooperation and outreach activities to promote Union’s
values and interests.

The Partnership
Instrument will therefore advance and promote EU and mutual interests and give
the “Europe 2020” strategy a global reach, by responding in an effective and
flexible manner to cooperation objectives arising from the Union's relations
with partner countries and by addressing challenges of global concern. It will
have a global reach with a particular focus on strategic partners and emerging
economies. There will be no mandatory classification of expenditure as official
development assistance (ODA), although it should remain possible especially for
Aid for Trade and Trade Related Assistance. The financial amount for the period
2014-2020 is €1,131 million.

The Partnership Instrument will be an integral
part of the overall architecture of external action Financial Instruments
organised around four main chapters: a policy-based chapter aiming primarily at
cooperation with partner countries at all levels; chapters on working on
cross-cutting priorities and values: human rights and democracy, humanitarian
assistance and civil protection, and crisis management and prevention.

One of the key priorities of the “Europe 2020” strategy is to restore growth that is compatible with
Europe's vision for a low carbon future and sustainable development objectives.
The agenda recognises that fast-growing emerging economies with an expanding
middle class will play a critical role in sustaining European exports of goods
and services in which the EU has a comparative advantage. As an example, the future climate policies (or lack of them) in
China, India, Brazil and the US will have significant impact on future
competitiveness, R&D and scientific cooperation across those regions, as
well as on international trade. It is in our interest to promote maximum
alignment and cooperation. The
Partnership Instrument should be instrumental in supporting trade policy[2], in particular as regards the
strategic economic partners. The support for market
access for European companies will supplement action financed under the Competitiveness
and SME Programme.

Emerging economies are playing an increasingly
prominent role as responsible partners in addressing challenges of global
concern in the context of the on-going economic crisis. The EU recognizes the importance of increasing responsibilities of
emerging economies towards least developed countries and other developing
countries. Critical issues such
as poverty alleviation, competitiveness and trade liberalisation, the environment,
climate change, energy, sustainable development, decent work, including respect
for core labour standards and social dialogue, enhancing digital literacy
skills and inclusion, pandemics, cyber security, terrorism and organised crime
including piracy can only be tackled in an international context. Against the
backdrop of accelerating globalisation, it is essential that the internal
agenda of securing sustainable growth and jobs in Europe and the EU's internal
policies in general are backed up by appropriate external financial assistance.
This external dimension of internal policy should bring greater consistency and
coherence to EU external action avoiding duplication and increasing impact.

The Partnership Instrument will therefore
give priority to supporting other external EU policies like trade as well as
the external dimension of EU policies on climate change, the environment,
energy, transport, employment and social policy, as well as information and communication technologies. Under the Partnership
Instrument, climate mainstreaming and climate objectives will be particularly
relevant to activities promoting policy dialogue with industrialised and
emerging economies.

Resource efficiency will be crucial to keeping
economic growth sustainable within environmental constraints. The EU is
adopting a Resource Efficiency Strategy as one of the flagships
of the “Europe 2020” strategy. This will affect EU norms but will only be truly
effective if resource-efficient practices are adopted by all major economies.
Emerging economies have the opportunity to leapfrog the unsustainable
consumption and production patterns that were often followed by the EU and
other advanced economies during their industrialisation and the EU has every
interest in helping them to do so.

However, emerging economies, especially
India and China, also have huge populations living in absolute poverty and
depending on healthy ecosystems such as clean water and productive seas and
forests for their livelihoods. At the same time, Brazil, South Africa, India
and China have huge biodiversity. These economies also shape resource
utilisation in the rest of the developing world, especially in poorer
developing countries. Cooperation on the protection of ecosystems and managing
them sustainably are in the mutual interest of the EU and its partners.

Dialogue and practical co-operation with
the key global energy producers and consumers are essential in order to address
the challenge of safeguarding the EU's energy security, particularly as we become
more import dependent, along with promoting a global low-carbon agenda,
sustainable energy policies, transparency and predictability on global energy
markets and technology cooperation.

As a number of countries graduate from
bilateral development assistance, they are seeking new forms of cooperation. In
the field of technology and innovation,if it is to remain a strategic partner
and continue to be a leader in global standards, the EU must be able to establish
partnerships in these areas based on mutual interest.

The external projection of the EU's
internal policies will therefore be fully integrated in the programming of the
Partnership Instrument. Within its limited financial envelope, it can complement the
external dimension of internal policies conducted under other EU programmes
(such as action under the Horizon 2020 Framework Programme for Research and
Innovation, the Competitiveness and SME Programme including cooperation on
Tourism, the Migration Fund and the Internal Security Fund as well as the
"Erasmus for All" Programme) in order to avoid any duplication.
It can also support other EU external policies such as trade. Coherence
and complementarity with other external action geographical instruments, in
particular the Development Cooperation Instrument, will be taken into
account throughout the programming stage while integrating the principles of
differentiation and concentration.

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

The European
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?' prepared by Commission and EEAS staff.

The majority of the respondents (around 70 %)
confirmed that EU financial assistance provided substantial added value in the
main policy areas supported by EU financial instruments for external action[3]. Many mentioned EU added value
as the main driver for the future: they considered that the EU should harness this
comparative advantage — linked to its global presence, wide-ranging expertise,
supranational nature, its role as a facilitator of coordination — and economies of
scale.

Nearly all respondents (92 %)
supported a more differentiated approach, tailored to the situation of the
beneficiary country and based on sound criteria and efficient data collection, as
a way to increase the impact of EU financial instruments.

Opinions were mixed on simplification of
the instruments and the balance between geographical and thematic instruments.
Many feared that reducing the number of EU thematic programmes could imply a
decrease in the overall amount available for thematic action and, instead,
called for simplification of the rules governing access to and implementation
of thematic funding. Increasing the geographical flexibility of the EU instruments
was supported by a significant majority as a way to respond to inter-regional
challenges.

When asked to prioritise different areas of
interest, most stakeholders mentioned ‘macro-economic and financial stability,
economic growth’ and ‘promotion of trade and investments’, followed by ‘energy,
resource efficiency and climate change’ and ‘employment and social issues
(inclusive growth and decent work)’.

A vast majority of respondents also agreed
that the private sector is the main driving force for economic development and,
as such, contributes significantly to sustainable growth. For this reason, they
advocated more extensive EU engagement with the business community as a partner
in the EU and in third countries in order to involve the private sector
increasingly — both financially and in knowledge-gathering — as a driver for
sustainable development.

Many agreed that joint programming and
co-financing with Member States could increase the impact and coherence of EU
external action, simplify delivery of aid and reduce overall transaction costs.

With respect to
performance evaluation, a stronger focus on monitoring activities during
implementation of projects and programmes, along with greater simplification of
the rules governing external financing, received wide approval as a means to
ensure that EU external instruments deliver the expected impact.

A large number
of stakeholders supported stepping up information and communication activities
to raise the profile of EU external funding, in particular in beneficiary
countries. However, EU visibility appears to be better served by effective
policies, strategies and presence in third countries than by additional
spending on communication. The idea of reinforcing the EU’s coordinating role
among other donors and of ensuring that implementing partners give more
visibility to EU funding also received strong support.

Before submitting this proposal for the
Partnership Instrument, the Commission considered four policy options:
discontinue the ICI; maintain the status quo; amend the DCI to allow
expenditure that is not official development assistance; or introduce a new
instrument building on the ICI/ICI+.

After careful evaluation, neither
discontinuing the ICI nor maintaining the status quo were deemed to be
politically viable solutions. Limiting expenditure exclusively to action linked
to poverty alleviation or maintaining this sole focus for cooperation with
emerging economies would artificially limit the EU’s external action and
neglect core EU interests.

The option of amending the Development
Cooperation Instrument to allow expenditure not related to official development
assistance would have the advantage of geographical coherence (one instrument
per country), but the difficulties of managing an instrument with two very
different objectives were considered a serious handicap.

Assessment of impacts

Economic:

Introduction of a new Partnership
Instrument would provide the EU with another opportunity to promote its
enterprises (SME’s in particular) and products. It could support EU businesses
in third countries, providing incentives for EU competitiveness and innovation
complementary to actions financed under the Competitiveness and SME Programme
and under Horizon 2020 (research and innovation). It could support EU
international trade and investment which, in turn, could facilitate foreign
investment into the EU. It can also play a role in south-south trade and
cooperation by promoting responsible business practices by our partners in
third countries, especially poorer developing countries. Numerous areas of
cooperation could be pursued including climate change, energy[4], the environment, approximation
of technical regulations and standardisation, corporate social responsibility,
intellectual property rights, protection of personal data, best practises in
economic, trade, investment, tax and financial matters and tourism. This could
strengthen the EU’s economic security and create new jobs which, ultimately,
would contribute to economic growth. The new Instrument could foster well
developed forms of economic cooperation between the EU and partner countries. In
this context, it would allow the EU to ensure that policy and programme design
and implementation take adequate account of environmental, sustainable energy,
social, employment and other welfare values.

Social:

By aligning the EU's and Member States’
financing instruments and by supporting joint activities with other bilateral
and multilateral donors, the new Instrument could have a significant impact on
the social fabric of emerging countries. It could support reforms of welfare
systems, national employment policies, national training and skills’
development policies, education, research and innovation capacity building programmes
and measures to strengthen national safety “nets”. Creating extra “green” jobs would
increase income and strengthen social cohesion and poverty alleviation
strategies at national level. In this respect, it would contribute to
successful implementation of the international social agenda promoted by the UN
International Labour Organisation and the G8/G20.

Environmental:

EU partnerships under the new Instrument
will aim to encourage and support growth and long-term environmental
sustainability. In this respect, the new Instrument is expected to play a key
role in providing support for both EU and partner countries’ environmental and
climate change-related actions and policy dialogues. The Instrument could
support a low-carbon business model by providing incentives to the European
private sector. Building on the successful results of the COP-16 United Nations
Conference on Climate Change in Cancún, it could be used to help EU businesses
to develop effective and low-cost policies to achieve environmentally friendly
goals in the partner countries. It would also help partner countries to reap
the full environmental, ecological and energy-efficiency benefits of
innovation. It could promote the transition to a green and resource efficient
economy. Rising demand for commodities in emerging economies means that there
is a need to promote the exchange of private sector best practice and greening
procurement policies. The Instrument could allow cooperation to gain a better
understanding of the economic and social costs of biodiversity loss and
ecosystem degradation in countries of global significance.

3.           LEGAL ELEMENTS OF THE PROPOSAL

In the discussions held by the legislative
authority on the Commission’s proposal on the ICI+ (COM/2009/197) and following
the entry into force of the Lisbon Treaty, an understanding has been reached
between the three institutions to use Articles 207(2) and 209(1) of the Treaty
on the Functioning of the European Union to carry-out activities beyond
development cooperation in developing countries. For countries “other than
developing countries”, Article 212(2) of the TFEU is used.

Further to that agreement, the proposed Partnership
Instrument would therefore be based on the combination of the following three
articles of the TFUE: Articles 212(2), 207(2) and 209(1).

The EU has numerous international agreements
with partner countries all over the world, unmatched
by individual Member States, which gives the Union influence in virtually every
field of international relations. With 27 Member States acting within common policies
and strategies, the EU has the critical mass to respond to global challenges. The
EU is also in a unique position to promote EU norms and standards, and turn
them into global standards through international cooperation.

The proposed Partnership Instrument will offer
greater added value than the existing situation as it embraces the “Europe 2020”
strategy based on green growth oriented cooperation, with a stronger emphasis
on EU interests in cooperation with emerging and industrialised countries and a
stronger focus on improving the climate for business, investment, trade and research
and innovation. It should develop a proactive agenda of mutual interests with
partner countries with a specific focus on EU strategic partners.

The new Partnership Instrument would also honour better the EU’s
commitments to third countries with which it has concluded Partnership and
Cooperation/Framework Agreements. It would add credibility and consistency to
the EU's external policy of linking the promotion of its values and interests
with specific cooperation activities. Within the framework of the agreements,
the Partnership Instrument could also act as a catalyst for joint EU and Member
States projects, as the EU and its Member States are bound by their provisions.
Finally, it would support the EU’s regional and bilateral policies, along with the
EU’s commitments to regional and international cooperation processes and bodies.

The EU’s economic cooperation activities,
business dialogues and other forms of external economic action could be a
powerful foreign policy tool. They could contribute to project the EU’s
visibility and influence externally. This could support Europe’s ambition to
become a key economic and political player on the international scene both
bilaterally and within multilateral bodies such as the G20.

Moreover, joint action with EU Member States and innovative ways to
mobilise resources could become more frequent and feasible under the
Partnership Instrument than in the current situation under the ICI. More money
will be available to support co-financing operations in cooperation with EU
Member States bilateral aid or financial bodies or agencies. Multiannual
programming would allow more structured and integrated business. Public and
private partnerships could be more achievable, involving several stakeholders
from the European business community. Blending grants and loans could also
become a preferred option whenever relevant.

Choice of Instrument

The Commission considers that extending the
scope of the Development Cooperation Instrument to cover non-development action
creates the risk of tension between different objectives and could lead to
significant delays in decision-making and implementation. It recommends creating
a single new global instrument focusing on defending core EU interests and
addressing challenges of global concern with a clearly defined scope of
activities. Therefore, the Commission recommends proposing a new instrument.

Tabling a proposal for a new instrument is considered
the best option. There is broad consensus on building on the current set of
financial instruments, although it is necessary to reflect the institutional
changes brought by the Lisbon Treaty. Under this option, the current structure
of the instruments, which both stakeholders and EU Member States consider
pertinent and adequate, would remain largely unchanged. However, a new Partnership
Instrument with global reach and focused objectives will contribute to a thorough
adaptation of the existing methods of policy making, programming and delivering
results.

4.           BUDGETARY
IMPLICATION

The financial allocation proposed for the
Partnership Instrument totals EUR 1 131 million, at current prices,
over the period 2014-2020. This amount is compatible with Heading 4
"Global Europe" of the proposed Financial Framework for 2014-2020.

To ensure its predictability, funding for
higher education activities in third countries in the context of "Erasmus
for All" programme will be made available, in line with EU external action
objectives, through 2 multi annual allocations only covering the first 4 years
and the remaining 3 years respectively. This funding will be reflected in the
multiannual indicative programming of the Partnership Instrument, in line with
the identified needs and priorities of the countries concerned. The allocations
can be revised in case of major unforeseen circumstances or important political
changes in line with the EU external priorities. The provisions of the
"Erasmus for All" Regulation (EU) No [--] of the European Parliament
and of the Council establishing "Erasmus for All"[5] will apply to the use of those
funds.

5.           OPTIONAL ELEMENTS

Simplification

One priority for the Commission in this new
Regulation, as in other programmes under the Multi-annual Financial Framework,
is to simplify the regulatory environment and facilitate access to Union assistance
for partner countries and regions, civil society organisations, etc. to the
extent that these pursue the objectives of the Regulation.

The new PI Regulation would allow swifter adoption of
implementing measures and, thus, more leeway for cooperation. Furthermore, the
revision of the Financial Regulation, which is particularly substantial with
regard to the special provisions on external action, will facilitate
participation by civil society organisations and SMEs 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 revised
Financial Regulation.

The implementation rules are contained in the Regulation (EU) No of
the European Parliament and of the Council of [--] establishing the common
rules and procedures for the implementation of the Union's instruments for
external action.

2011/0411 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

establishing a Partnership Instrument for
cooperation with third countries

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 207(2), 209(1) and 212(2) thereof,

Having regard to the proposal from the European
Commission,

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

Acting in accordance with the ordinary
legislative procedure,

Whereas:

(1)
This Regulation constitutes one of the
instruments providing direct support for the European Union’s external policies.
It will replace the Regulation of the European Parliament and of the Council No
1934/2006 of 21 December 2006 establishing a financing instrument for
cooperation with industrialised and other high income countries and territories
(ICI)[6].

(2)
Over the last decade, the Union has consistently
strengthened its bilateral relations with a broad range of industrialised and
other high-income countries and territories across different regions of the
world, primarily in North America, East Asia and Australasia, but also in
South-East Asia and the Gulf region.

(3)
Furthermore, since 2007 the Union has strengthened
and deepened its cooperation and partnership with developing and transition
countries in Asia, Central Asia, and Latin America and with Iraq, Iran, Yemen
and South Africa on the basis of Regulation (EC) No 1905/2006 of the European
Parliament and of the Council of 18 December 2006 establishing a financing
instrument for development cooperation (DCI).

(4)
The scope of cooperation under the geographic
programmes with developing countries, territories and regions established under
the Development Cooperation Instrument is limited to financing measures designed
to fulfil the criteria set for official development assistance (ODA) set by the
Development Assistance Committee of the Organisation for Economic Cooperation
and Development (DAC/OECD).

(5)
Preparatory actions such as business dialogues, trade promotion and scientific exchanges
were set up to strengthen and deepen
cooperation in areas outside the scope of the Development Cooperation
Instrument with India and China and with middle-income group countries in Asia
and Latin America.

(6)
Furthermore, the Union has been strengthening
its bilateral relations with other increasingly prominent middle-income
developing countries in Asia and Latin America by expanding cooperation
partnership and policy dialogues to areas and subjects beyond development cooperation.
In the case of Russia, relations have also evolved, including through the Union-Russia
Partnership for Modernisation, underlining the importance of Russia as a
strategic partner for the Union both in bilateral relations and in global
affairs.

(7)
It is in the Union’s
interest to deepen its relations with partners who are
playing an increasingly important role in the international economy and trade,
in south-south trade and cooperation, in multilateral fora including Group of
Twenty Finance Ministers and Central Bank Governors (G 20), in global
governance and in addressing challenges of global concern. The Union needs to
build comprehensive partnerships with new players on the international scene,
in order to promote a stable and inclusive international order, pursue common
global public goods, defend core interests of the Union and increase knowledge
of the Union in these countries.

(8)
The EU needs a financial instrument of global
scope allowing the financing of measures that might not qualify as ODA but
which are crucially important for deepening and consolidating its relations
with the partner countries concerned, in particular through policy dialogues
and development of partnerships.

(9)
Notwithstanding the specific
focus on global players, the scope of this Regulation should
be worldwide enabling to support cooperation measures with developing countries where the Union has
significant interests in accordance with the objectives of this Regulation.

(10)
In the “Europe 2020” strategy[7] the Union has reiterated its sustained
commitment to promote in its internal and external policies smart, inclusive
and sustainable growth bringing together three pillars: economic, social and
environmental.

(11)
The Union is committed in relations with its
partners worldwide to promoting decent work for all along with ratification and
effective implementation of the internationally recognised labour standards and
multilateral environmental agreements.

(12)
In particular, fighting climate change is
recognised as one of the great challenges which the Union faces and the area
where urgent international action is necessary. In accordance with the intent
stated in the Commission Communication “A budget for Europe 2020”[8] of increasing the climate
related proportion of the Union budget to at least 20%, this Regulation should
contribute to that goal.

(13)
The Union is committed to helping to meet the
global 2020 biodiversity targets and to deliver on the associated Strategy for
resource mobilisation.

(14)
Under this Regulation, the Union should support the
implementation of the “Europe 2020” strategy, in particular objectives relating
to climate change, the transition to a greener economy and resource efficiency,
trade and investment, business and regulatory cooperation with third countries,
and should promote public diplomacy, education/academic cooperation and outreach
activities.

(15)
Promotion of
diversified cooperation and partnership initiatives within
a single instrument should, furthermore, allow economies of scale, synergy
effects, greater effectiveness, more streamlined decision-making and management
and a high degree of visibility for the Union’s external action.

(16)
In order to achieve the objectives of this
Regulation it is necessary to pursue a differentiated
and flexible approach by developing models for cooperation with key partner
countries which take into account their economic, social and political
contexts and also the Union’s specific interests, policy priorities and
strategies, whilst maintaining the ability to intervene all over the world wherever
needed.

(17)
The Union should be able to respond in a
flexible and timely manner to evolving and /or unforeseen needs in order to make its commitment to
promote its interests in its relations with third countries more effective, by
adopting special measures not covered by multi-annual indicative programmes.

(18)
Since the objectives of this Regulation cannot
be sufficiently achieved by the Member States and can therefore, by reason of
the scale of the action, be better achieved at Union level, the Union may adopt
measures, in accordance with the principle of subsidiarity and proportionality
as set out in Article 5 of the Treaty of the European Union. In accordance with
the principle of proportionality, as set out in that Article, this Regulation
does not go beyond what is necessary to achieve those objectives.

(19)
In order to adapt the scope of this Regulation
to the rapidly evolving reality in third countries, the power to adopt acts in
accordance with Article 290 of the Treaty of the Functioning of the European
Union should be delegated to the Commission in respect of the detailed areas of
cooperation defined in the Annex. It is of particular importance that the
Commission should carry out appropriate consultations during its preparatory
work, including at expert level. The Commission, when preparing and drawing-up
delegated acts, should ensure simultaneous, timely and appropriate transmission
of relevant documents to the European Parliament and to the Council.

(20)
In order to ensure uniform conditions for the
implementation of this Regulation, implementing powers should be conferred on
the Commission. Those powers should be exercised in accordance with Regulation
N° 182/2011 of 16 February 2011 laying down the rules and general principles
concerning the mechanisms of control by Member States of the Commission’s
exercise of implementing powers[9].
Taking into account the nature of those implementing acts, in particular their
policy orientation nature or their financial implications, the examination
procedure should in principle be used for their adoption, except for technical
implementing measures of a small financial scale.

(21)
Common rules and procedures for the
implementation of the Union's instruments for external action are laid down in
Regulation (EU) No .../...of the European Parliament and of
the Council of ..., hereinafter referred to as ‘the
Common Implementing Regulation’.

(22)
The organisation and functioning of the European
External Action Service are described in Council Decision
2010/427 EU.

HAVE ADOPTED THIS REGULATION:

Article 1
Subject matter and objectives

(1)
This Regulation establishes a Partnership
Instrument for cooperation with third countries to advance and promote EU and
mutual interests. The Partnership Instrument shall support measures that
respond in an effective and flexible manner to objectives arising from the
Union's bilateral, regional or multilateral relationships with third countries
and address challenges of global concern.

(2)
The measures to be financed under this
Instrument shall reflect the following specific Union objectives:

(a)
implementing the international dimension of the
“Europe 2020” strategy by supporting Union’s bilateral, regional and
inter-regional cooperation partnership strategies, by promoting policy
dialogues and by developing collective approaches and responses to challenges
of global concern such as energy security, climate change and environment. This
objective shall be measured by the uptake of the “Europe 2020” policies and
objectives by key partner countries;

(b)
improving market access and developing trade,
investment and business opportunities for European companies by means of
economic partnerships and business and regulatory cooperation. This objective
shall be measured by the Union’s share in foreign trade with key partner
countries and by trade and investments flows to partner countries specifically
targeted by actions, programmes and measures under this Regulation;

(c)
enhancing widespread understanding and
visibility of the Union and its role on the world scene by means of public
diplomacy, education/academic cooperation and outreach activities to promote
Union’s values and interests. This objective may be measured, inter alia,
by opinion surveys or evaluations.

Article 2
Scope

(1)
All third countries, regions and territories may
be eligible for cooperation under this Regulation.

(2)
However, this Regulation shall
primarily support cooperation measures with developed and developing
countries which play an increasingly prominent role in the international
economy and trade, in multilateral fora, in global governance and in addressing
challenges of global concern and where the Union has significant interests.

Article 3
General principles

(1)
The Union seeks to promote, develop and
consolidate the principles of liberty, democracy, respect for human rights and
fundamental freedoms and the rule of law on which it is founded by means of dialogue
and cooperation with third countries.

(2)
To enhance the impact of the Union’s assistance,
a differentiated and flexible approach shall
be pursued, where appropriate, in designing cooperation with partner countries to take account of their
economic, social and political contexts as and also of the Union’s specific
interests, policy priorities and strategies.

(3)
Within their respective spheres of competence,
the Union and the Member States shall promote a multilateral approach to global
challenges and shall foster cooperation with international or regional
organisations and bodies, including international financial institutions,
United Nations agencies, funds and programmes, OECD, and the Group of Twenty
Finance Ministers and Central Bank Governors (G20) and other bilateral donors.

(4)
In implementing this Regulation, the Union shall
aim to ensure coherence and consistency
with other areas of its external action, in particular the
Development Cooperation Instrument for developing countries, and with other relevant Union’s policies when formulating
policy, strategic planning and programming and implementing measures.

(5)
Measures financed under this Regulation shall be
based, where appropriate, on cooperation policies set out in instruments such
as agreements, declarations and action plans between the Union and the third
countries and regions concerned, and shall also relate to areas linked to the
Union’s specific interests, policy priorities and strategies.

(6)
Union support under this Regulation shall be
implemented in accordance with the Common Implementing Regulation.

Article 4
Areas of cooperation

Detailed areas of cooperation to be pursued
by the Union’s assistance under this Regulation are listed in the Annex. The
Commission shall be empowered to adopt delegated acts in accordance with
Article 7 to amend or supplement the Annex.

Article 5
Programming and Indicative allocation of funds

(1)
Multi-annual indicative programmes shall be
adopted by the Commission in accordance with the examination procedure referred
to in Article 15 (3) of the Common
Implementing Regulation. This procedure shall also apply to substantial reviews
which have the effect of changing significantly the strategy or its
programming.

(2)
The multi-annual indicative programmes shall set
out the Union’s strategic and/or mutual interests and priorities, the specific
objectives and expected results. For countries or regions for which a Joint
Framework Document, laying down a comprehensive Union strategy has been
established, the multi-annual indicative programmes shall be based on this
document.

(3)
The multiannual indicative programmes shall
also set out the priority areas selected for financing by the Union and shall
outline the indicative financial allocation of funds, both overall, per
priority area and per partner country or group of partner countries for the
period concerned including the participation in global initiatives; these
amounts may, where appropriate, be expressed in the form of a range.

(4)
The multiannual indicative programmes shall be
adjusted where necessary, taking into account any mid-term or ad hoc reviews of
the reference document on which they are based.

(5)
A Reserve for unallocated funds may be
established in the multi-annual indicative programmes. The allocation of these
funds shall be decided in accordance with the Common Implementing Regulation.

(6)
The examination procedure referred in paragraph (1)
shall not apply to non-substantial modifications to multiannual indicative
programmes, making technical adjustments, reassigning funds within the indicative
allocations per priority area or increasing or decreasing the size of the
initial overall allocation by less than 20%, provided that these modifications do
not affect the priority areas and objectives set out in the multi-annual
indicative programmes. Such adjustments shall be communicated within one month
to the European Parliament and to the Council.

(7)
The procedure referred in Article 15(4) of the Common Implementing Regulation may be applied
for modifying multiannual indicative programmes where a swift response from the
Union is required.

Article 6
Committee

The Commission shall be assisted by the
Partnership Instrument committee. That committee shall be a committee within
the meaning of Regulation (EU) No 182/2011.

Article 7
Exercise of delegation

(1)
The delegation of powers referred to in Article 4
shall be conferred for the period of validity of this Regulation.

(2)
The delegation of powers may be revoked at any
time by the European Parliament or by the Council. A decision of revocation
shall put an end to the delegation of power specified in that decision. It
shall take effect the day following the publication of the decision in the
Official Journal of the European Union or at a later date specified therein. It
shall not affect the validity of any delegated acts already in force.

(3)
As soon as it adopts a delegated act, the
Commission shall notify it simultaneously to the European Parliament and the
Council.

(4)
A delegated act adopted shall enter into force
only if no objection has been expressed either by the European Parliament or
the Council within a period of 2 months of notification of the act to the
European Parliament and the Council or if, before the expiry of that period,
the European Parliament and the Council have both informed the Commission that
they will not object. That period shall be extended by 2 months at the
initiative of the European Parliament or the Council.

Article 8
Financial reference amount

1.           The financial reference
amount for implementation of this Regulation for the period from 2014 to 2020
shall be EUR 1 131 000 000. Annual appropriations shall be
decided by the budgetary authority as part of the annual budget procedure
within the limits set in the Multiannual Financial Framework.

2.           As referred to in Article
13, paragraph 2 of the "Erasmus for All" Regulation, in order to
promote the international dimension of higher education, an indicative amount
of EUR 1 812 100 000 from the different external instruments (Development
Cooperation Instrument, European Neighbourhood Instrument, Instrument for
Pre-accession Assistance, Partnership Instrument and the European Development
Fund), will be allocated to actions of learning mobility to or from non EU
countries and to cooperation and policy dialogue with
authorities/institutions/organisations from these countries. The provisions of
the "Erasmus for All" Regulation will apply to the use of those
funds.

The funding will be made available through 2
multiannual allocations only covering the first 4 years and the remaining 3
years respectively. This funding will be reflected in the multiannual
indicative programming of these instruments, in line with the identified needs
and priorities of the countries concerned. The allocations can be revised in
case of major unforeseen circumstances or important political changes in line
with the EU external priorities.

Article 9
European External Action Service

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

Article 10
Entry into force

1.
This Regulation shall enter into force on
the third day following its publication in the Official Journal of the
European Union. It shall apply from 1 January 2014.

2.
This Regulation shall be binding in its entirety
and directly applicable in all Member States.

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX

DETAILED
AREAS OF COOPERATION UNDER THE PARTNERSHIP INSTRUMENT

To support the objectives provided for in
Article 1, Union assistance may include, inter alia, the following areas
of cooperation:

(a)          support to specific initiatives, including research work, studies,
pilot schemes or joint projects destined to respond in a effective and flexible
manner to cooperation objectives arising from the Union’s relationships with third
countries concerned;

(b)          the promotion of cooperation,
partnerships and joint undertakings between economic, social, cultural,
governmental and scientific actors in the Union and third countries;

(c)          the facilitation of (and support of)
trade relations and trade integration processes, including south-south, support
to Union investment flows and economic partnerships, including a focus on small
and medium-sized enterprises;

(d)          the promotion of policy and
sectoral dialogues involving Union and non-Union political, economic,
regulatory, environmental, social, research and cultural actors and non-governmental
organisations;

(e)          the promotion of outreach
activities, intellectual exchanges and the enhancement of inter-cultural
dialogues;

(f)           the promotion of initiatives and
actions of Union or mutual interest in areas such as climate change, environmental
matters including biodiversity, resource efficiency, raw materials, energy, transport,
science, research and innovation, employment and social policy, sustainable
development, including promotion of decent work, and corporate social
responsibility, south-south trade and cooperation, education, culture, tourism,
information and communication technologies, health, justice, customs, taxation,
financial, statistics and any other matter pertaining
to the Union’s specific interests or of mutual interest between the
Union and third countries;

(g)          the enhancement of awareness
about and understanding of the Union and of its visibility in third countries.

LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.    Title
of the proposal/initiative

1.2.    Policy
area(s) concerned in the ABM/ABB structure

1.3.    Nature
of the proposal/initiative

1.4.    Objective(s)

1.5.    Grounds
for the proposal/initiative

1.6.    Duration
and financial impact

1.7.    Management
method(s) envisaged

2.           MANAGEMENT MEASURES

2.1.    Monitoring
and reporting rules

2.2.    Management
and control system

2.3.    Measures
to prevent fraud and irregularities

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.    Heading(s)
of the multiannual financial framework and expenditure budget line(s) affected

3.2.    Estimated
impact on expenditure

3.2.1. Summary of
estimated impact on expenditure

3.2.2. Estimated impact
on operational appropriations

3.2.3. Estimated impact
on appropriations of an administrative nature

3.2.4. Compatibility
with the current multiannual financial framework

3.2.5. Third-party
participation in financing

3.3.    Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS

1.           FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.        Title of the
proposal/initiative

Proposal for a Regulation of the European
Parliament and of the Council (EC) N° ...... establishing a Partnership Instrument for cooperation with third countries

1.2.        Policy area(s) concerned
in the ABM/ABB structure[10]

Title 19: External relations

Activity 19 05: Relations and
cooperation with industrialised third countries.

The title of this budget chapter 19 05 corresponds to the current
structure of the financial instruments 2007-2013. It is proposed to keep the
same activity 19 05 but to modify the title of this chapter for the period
2014-2020 as follows:

19 05 : Cooperation with third
countries under the Partnership Instrument

1.3.        Nature of the
proposal/initiative

x The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[11]

 ̈ The proposal/initiative relates to the
extension of an existing action

 ̈ The
proposal/initiative relates to an action redirected towards a new action

1.4.        Objectives

1.4.1.     The Commission's multiannual
strategic objective(s) targeted by the proposal/initiative

This financing
instrument aims to support the following strategic objective as stated in the
Commission’s Communication “A budget for Europe 2020 Strategy – Part II” of 29
June 2011 (COM/2011/500 - Budget for Europe 2020 Strategy - Part II. Policy
Fiche “External Action”, p. 42):

“Projecting EU policies in support of addressing major global challenges such as
combating climate change, reversing biodiversity loss, and protecting global
public goods and resources should be further strengthened. The Commission
proposes to develop a proactive agenda of EU and mutual interests with third
countries, with a specific focus on strategic partners.”

1.4.2.     Specific objective(s) and
ABM/ABB activity(ies) concerned

Under the activity 19 05, the following three specific
objectives will be pursued:

1) implementing the international dimension of the
“Europe 2020” strategy by supporting Union’s bilateral, regional and
inter-regional cooperation partnership strategies, by promoting policy
dialogues and by developing collective approaches and responses to challenges
of global concern.

2) improving market access and developing trade, investment and
business opportunities for European companies by means of economic
partnerships and business and regulatory cooperation.

3) Enhancing Europe’s strong presence in the global economy and its
role on the world stage by supporting public diplomacy, education/academic cooperation
and outreach activities and networks to promote EU values and interests.

ABM/ABB activity(ies) concerned

Activity 19 05 to be “re-titled”
as follows: Cooperation with third countries under the Partnership
Instrument

1.4.3.     Expected result(s) and
impact

An innovative Partnership Instrument would enable
the EU to push forward its policies across the world.

Impact on the EU economy and EU economic dialogues with partner
countries

The implementation of a new Partnership Instrument would provide the
EU with another window of opportunity to promote its enterprises (SMEs in
particular) and products. It would create the financial possibility to support
EU business in third countries, providing incentives for EU competitiveness and
innovation in a way that should remain complementary to the actions financed under
the Competitiveness and SME programme and under Horizon 2020 (research and innovation),
support EU international trade and investment which, in turn, could lead to the
facilitation of foreign investment into the EU. Numerous areas of cooperation
could be pursued including climate change, environment, approximation of
technical regulations and standardisation, corporate social responsibility,
intellectual property rights, protection of personal data, best practises in
economic, trade, tax and financial matters, south-south trade and cooperation.
Thus, the EU’s economic security could be strengthened and possibly new jobs
created which, ultimately, would contribute to economic growth.

This Instrument could reinforce EU trade relations with partner
countries having a positive impact on the EU balance of payments, economic and
trade relations with the rest of the world while being consistent with market
access/open market principles. As such, it could also contribute to lessen the
risk of protectionism as well as supporting international competitiveness and
the ongoing globalisation process while making sure that all countries benefit
in line with the principles of the “Europe 2020” strategy.

The new Partnership Instrument would also contribute to support the
EU’s competitiveness through targeted human resource development: the
availability of highly skilled people and their capacity to innovate and
undertake science and technology development is a prerequisite for economic
prosperity.

Economic Impact on partner countries

The new Instrument could foster well developed forms of economic
cooperation between the EU and partner countries. In this context, it would
allow the EU to ensure that environmental, sustainable energy, social,
employment and other welfare values are adequately considered in policy
programme design and implementation.

Increased investment by EU companies would also contribute to
economic growth in the hosting country. Actions aiming at promoting Corporate
Social Responsibility will improve social, labour and environmental rules and
implementation in the partner country.

By contributing technical assistance, the Instrument could identify
sustainable paths for fiscal consolidation of growth, thus helping countries in
efforts to gain control of their accounts. It could also support initiatives to
improve administrative efficiency, the productive use of workers’ remittances
and to promote new investments and transfers of technology in national
industrialisation programmes or infrastructural developments in order to
promote resource efficiency and sustainability, including in the production and
use of energy.

Impact on economic governance

The Partnership Instrument is also expected to have an impact on
economic governance. With the crisis, hard lessons
have been learnt about the limits of markets. It has called for revisiting the
role of government, redefining the balance between state and market and
searching for ways to boost citizens’ trust in both.

The crisis demonstrated that public policies are the critical anchor
of national economies in times of economic unrest as governments halted
financial market freefall and avoided financial catastrophe. However, the
ensuing fiscal pressures in many countries have increased the need to cut
public expenditures, which in most cases means streamlining the state. This
effort calls for reassessing the role of government intervention to achieve
better and more effective governance, sound institutions and effective rules
and procedures.

Another important governance issue refers to anti-corruption,
transparency and integrity. The new Instrument could be
directed to improving anti-corruption tools and reinforcing their
implementation. New initiatives could enhance coordination of anti-corruption
and transparency actions worldwide as well as compliance with relevant
international conventions, “best practices” and guidelines.

Finally promoting the full engagement of strategic partners in
global environmental policy making and governance especially with regard to
Multilateral Environmental Agreements will be crucial to promoting sustainable
economic change.

Social impact on the EU economy

The EU's ambition is to address interlinked social policies and
identify strategic orientations going beyond growth. This could be enhanced by
economic cooperation with partner countries, strengthening national and
international regulatory frameworks and contributing to improved national,
regional or global economic governance. These strategies and approaches could
have a positive impact on EU employment and social policies such as the EU
welfare model of social protection, the creation of “green” jobs, the “EU 2020”
social agenda etc. Growing competition from emerging economies could also act
as a strategic incentive for Europe to allocate more resources to training and
re-training, improving the quality of teaching and research and to the reform
of domestic welfare systems.

Social impact on partner countries

By harmonising the EU and EU Member States’ financing instruments
and by supporting joint activities with other bilateral and multilateral
donors, the new Instrument could have an important impact on the social fabric
of emerging countries. It could provide support to the reform of welfare
systems, national employment policies, national training and skills’
development policies, education, research and innovation capacity building and programmes
as well as the strengthening of national safety “nets”. Its contribution to
extra “green” jobs creation, income-per-capita increases and effective social
cohesion and poverty alleviation strategies at national level will be relevant.
In this respect it would contribute to the successful implementation of the
international social agenda promoted by the UN International Labour
Organisation and G8/G20.

Environmental impact on EU and partner countries

Making “green” growth work, implementing the strategy and supporting
partner countries in their policies for a more ecological growth path will
figure among the top strategic priorities of the new Instrument for the coming
years.

EU partnerships through the new Instrument will aim at encouraging
and supporting growth and long-term environmental sustainability. In this
respect, the new Instrument is expected to play a key role in providing support
for both EU and partner countries’ environmental and climate change-related
actions and policy dialogues.

The Instrument could support a low-carbon business model by
providing incentives to the European private sector. Building on the successful
results of the COP-16 United Nations Conference on Climate Change in Cancún, it
could be used to help EU business to develop effective and least-cost policies
to achieve environmentally friendly goals in the partner countries. It will also
help partner countries’ economies to reap the full environmental, ecological
and energy-efficient benefits of innovation.

The Instrument could allow cooperation to better
understand the economic and social costs of biodiversity loss and ecosystem
degradation in countries of global significance.

1.4.4.     Indicators of results and
impact

The three specific objectives will be monitored
through the following three indicators:

1) Uptake
of the “Europe 2020” policies and objectives by key strategic
partner countries and influence on policy formulation in these countries.

2) EU share
in foreign trade with key partner countries as well as trade and
investments flows to partner countries specifically targeted by actions,
programmes and measures under this Regulation.

3) Better perception
and enhanced mutual understanding of the EU in key strategic partner countries
illustrated by inter alia surveys and/or evaluations.

1.5.        Grounds for the
proposal/initiative

1.5.1.     Requirement(s) to be met in
the short or long term

See
Explanatory Memorandum of the legislative proposal and Impact Assessment:

The
proposed Partnership Instrument is designed to overcome the limitation of the
EU’s ability to engage internationally in the most effective way. It will allow
the EU to pursue agendas beyond development cooperation with new powers and to
defend the core EU agenda globally with any other partner country if the need
arises. The main features of the proposed partnership Instrument compared to
the preceding Instrument for Cooperation with Industrialised countries are the
following:

Geographical coverage: global reach, with a special focus on strategic partners (industrialised
countries, emerging economies, Russia).

Objective: Focus on advancing EU interests and “Europe 2020” strategy, by responding in an effective and flexible manner to cooperation objectives arising
from the Union's bilateral/regional relationship with partner countries
and by addressing challenges of global concern.

Priority areas: international
dimension of the "Europe 2020" strategy, policy dialogues, challenges
of global concern, business and regulatory cooperation, bilateral/ trilateral /regional cooperation, public diplomacy,
education/academic cooperation and outreach.

Programming: not bound to ODA requirements, multi-annual programmes for long-term
investments, non-programmable provisions for swift response to changing
environments and ad-hoc actions.

1.5.2.     Added value of EU involvement

The EU has
numerous international agreements with partner countries all over the world, not matched by individual Member States,
which gives to all of them influence in virtually all fields of international
relations. With 27 Member States acting within common policies and
strategies, only the EU has the critical weight to respond to global
challenges. The EU as a global player has the credibility and the neutrality
which is not available to individual Member States. The EU is also in a unique
position to promote EU norms and turn them into global standards through
international cooperation.

The proposed Partnership
Instrument will demonstrate enhanced added value compared with the existing
situation as it embraces the “Europe 2020” strategy based on green growth
oriented cooperation, a stronger emphasis on EU interests in cooperation with
emerging and industrialised countries and a stronger focus on improving the
climate for business, investment, trade and research and innovation. It should
develop a proactive agenda of mutual interests with partner countries with a
specific focus on EU strategic partners.

The new Partnership
Instrument would also better honour the EU’s commitments towards third
countries with which it has concluded Partnership and Cooperation/Framework
Agreements. It adds credibility and consistency to the EU external policy of
linking the promotion of its values and interests with specific cooperation
activities. Within the framework of the agreements, the Partnership Instrument
could also act as a catalyst for joint EU and Member States projects as the EU
and Member States are bound by their provisions. Finally,
it would support the EU’s regional and bilateral policies, as well as the EU’s
commitments towards regional and international cooperation processes.

1.5.3.     Lessons learned from
similar experiences in the past

The Mid-Term
Review (MTR) (COM/2009/196) of the financial Instrument for external
actions, carried out in 2009, concluded that the limited scope of the
Development Cooperation Instrument (DCI) was impeding the financing of
activities which were not “partner-focused” as Official Development Assistance
(ODA), but were of mutual benefit in the context of globalisation. The
Instrument for Development Cooperation (DCI) was not considered suitable for
addressing the problem as its main objective is the promotion
of the economic development and welfare of developing countries, more specifically the eradication of poverty in partner countries
and regions in the context of sustainable development, including the pursuit of
the Millennium Development Goals. This limitation was affecting the most
dynamic regions of the world (e.g. Latin America, Asia, South Africa) and the
EU was left without a financial instrument to support the evolution of
international relationships linked to globalisation, in particular with regards
to emerging economies. For that purpose, Preparatory Actions in Latin
America and Asia were created by the Budget Authority to temporarily
fill the legislative gap. In April 2009, the European Commission proposed a
legislative follow up (COM/2009/197) to allow the financing of measures in
countries falling under the DCI Regulation to extend the geographical scope of
the current Industrialised Countries Instrument (ICI) to developing countries
(including emerging economies) of Asia and Latin America, and to Iran, Iraq,
Yemen and South Africa.

The Mid-Term Review (MTR) also
recognised that the ICI, on which the current proposal for a new instrument is built
on, has provided a flexible basis to develop cooperation with a wider number of
industrialised and high-income territories, although the financial envelope was
rather limited.

In addition to the Mid-Term Review, evaluations of flagship
programmes financed under the ICI Instrument “EU Gateway programme for
Japan and the Republic of Korea” (financing EU pavilions in trade fairs) and
the EU Centres (university consortia delivering "EU studies" modules
and disseminating key information about the EU to a very broad audience) were
carried out in the past years and were very positive.

Regarding the Executive Training Programme (ETP) (language
and training programmes for managers), the evaluation conducted in 2010[12] has shown that the ETP
presents a unique offering in terms of programme structure (familiarity with
Japanese and Korean business culture are invaluable attributes) and target
audience (both large and small and medium sized companies value the programme).
It provides an opportunity to potential participants from Member States who
offer no similar initiative. Moreover, it provides a good visibility for the
EU. The ETP has had a positive impact on EU companies committed to
establishing/growing their business activities with Japan and Korea in terms of
assisting the EU company to access Japanese/Korean markets; bringing sustained
impact on EU companies’ business, rather than a short term and temporary
effect, and in terms of broadening the business possibilities of EU companies
in other Asian countries.

The
evaluation, conducted in 2010[13],
on EU Centres (dedicated to public diplomacy) Initiative has shown that
“the Centres are adding real value and that the Commission benefits from the
Initiative to a great extent. The amount of work conducted by the Centres
compensates by far the costs that the Commission incurs on the programme”. The
programme has achieved a solid base in those countries that have been pioneers
to the Initiative (USA and Canada) and is successfully striving towards higher
levels of maturity in Australia and New Zealand. The EU funding has the
capacity to act as seed money, mainly by attracting other sources of funding
that are pulled towards the Initiative to ensure its long term sustainability.

1.5.4.     Coherence and possible
synergy with other relevant instruments

The Lisbon
Treaty sets out common principles and objectives and defines a new
institutional framework for the Union’s external action (notably the EEAS),
leading to high expectations in the field of external action both internally
within the EU and by partners at national and regional level, including in the
multilateral context. The Partnership Instrument (PI) will be an integrative
element in the overall architecture of external action financial instruments
organised around four main chapters: a policy-based chapter aiming primarily at
cooperation with partner countries at the bilateral, regional and international
level, as well as chapters on working on cross-cutting priorities and values: human
rights and democracy, humanitarian assistance and civil protection, crisis
management and prevention. The PI falls under the first chapter, that is
working with partner countries. Its main objective is to project EU policies in
support of the “Europe 2020” strategy agenda, addressing major global
challenges, developing a proactive agenda of EU and mutual interests with
industrialised countries and emerging economies, with a specific focus on strategic
partners.

One of the
key priorities of “Europe 2020” strategy is to restore growth. The Agenda
recognises that fast-growing emerging economies with an expanding middle class
will play a critical role in sustaining European export of goods and services
in which the EU has a comparative advantage. The Partnership Instrument should
be instrumental in supporting trade policy[14], in particular as regards the
strategic economic partners. The support to market access for European companies
will complement actions financed under the competitiveness and SME programme.

Emerging economies
play also an increasingly important role as responsible partners in addressing
challenges of global concern: issues such as poverty alleviation, migration,
competitiveness and trade liberalisation, environment, climate change, energy,
enhancing digital literacy skills and inclusion, pandemics, cyber security,
terrorism and organised crime can only be tackled in an international context.
Against the backdrop of accelerating globalisation, it is essential that the
internal agenda of securing sustainable growth and jobs in Europe and the EU's
internal policies in general are complemented by an external dimension. This
external dimension of internal policy should enhance the consistency and
coherence of EU external action and should complement it, while avoiding
duplication of efforts.

Therefore,
the Partnership Instrument will give priority to supporting the external
dimension of EU policies on climate change, environment, energy, trade
and sustainable development, as well as information and communication
technologies. The EU has already designed the most sophisticated set of
incentives, rules and regulations to facilitate our own transition to low
carbon economy and unilaterally adopted ambitious targets. This framework
provides comprehensive and concrete policy insight that could and should be
used to facilitate similar ambitions by our key strategic partners. Such action
would clearly be good for the environment while acting as catalyst for broad
based investment in research and innovation, capacity building and programmes,
new greener technologies and providing commercial openings for EU industry. For
the Partnership Instrument, climate mainstreaming and climate objectives
will be particularly relevant to activities enabling policy dialogue with
industrialised and emerging economies.

Resource
efficiency will be crucial to ensuring that economic growth remains sustainable
within environmental planetary constraints. The EU is adopting a Resource
Efficiency Strategy as one of the Flagships of the 2020 Strategy. This
will, inter alia, affect EU norms and will only be truly effective if
resource-efficient practices are adopted by all major economies. Emerging economies
have the opportunity to leapfrog the polluting unsustainable consumption and
production patterns so often followed by the EU and other advanced economies
during our industrialisation and the EU has every interest in helping them to
do so. However, emerging economies especially India and China also have large,
absolutely poor populations reliant on healthy ecosystems such as clean water
and productive seas and forests for their livelihoods while Brazil, South
Africa, India and China are mega-biodiverse. Dialogue and cooperation on the
economics of protecting and sustainable managing ecosystems is in the mutual
interest of the EU and its partners.

Dialogue
and practical co-operation with the key global energy producers and consumers
is essential to address the challenge of ensuring the EU's energy security,
particularly as the EU becomes more import dependent, as well as promoting a
global low-carbon agenda, sustainable energy policies, transparency and
predictability on global energy markets and technology cooperation.

States leaving
developing country status request new forms of cooperation in technological
and innovative areas. To remain a strategic partner in these fields and
continue to be a leader in the promotion of global standards, the EU must be
able to set up cooperation partnerships in these areas.

To sum up, the
external projection of the EU's internal policies will be fully integrated in
the programming of the Partnership Instrument that will also, within
its limited financial envelope, complement the external dimension of
internal policies conducted under other EU programmes (such as action under the
Horizon 2020 Framework Programme for Research and Innovation, the
Competitiveness and SME Programme including cooperation on Tourism, the
"Erasmus for all" Programme, the Migration Fund and the Internal
Security Fund) in order to avoid any duplication. Coherence
and complementarity with other external action geographical
instruments, in particular the Development Cooperation Instrument, will
be taken into account throughout the programming stage while integrating the
principles of differentiation and concentration.

1.6.      Duration and financial impact

x Proposal/initiative of limited
duration

–
x Proposal/initiative in effect from 01/01/2014 to 31/12/2020

–
x Financial impact from 01/01/2014 to 31/12/2020

–
 ̈ Proposal/initiative of unlimited
duration

–
Implementation with a start-up period from YYYY
to YYYY,

–
followed by full-scale operation.

1.7.        Management mode(s) envisaged[15]

x Centralised direct management by the Commission

x Centralised indirect management with the delegation of implementation tasks to:

–
 ̈  executive agencies

–
 ̈  bodies set up by the Communities[16]

–
 ̈  national public-sector bodies/bodies with public-service mission

–
 ̈  persons entrusted with the implementation of specific actions
pursuant to Title V of the Treaty on European Union and identified in the
relevant basic act within the meaning of Article 49 of the Financial Regulation

 ̈ Shared management with the Member States

 ̈ Decentralised management with third countries

 ̈ Joint management with international organisations (to be specified)

If more than one
management mode is indicated, please provide details in the
"Comments" section.

Comments

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

The
European Commission's Monitoring and Evaluation systems are increasingly
focussed on results. They involve internal staff as well as external expertise.

Task
Managers in Delegations and Headquarters continuously monitor the implementation
of projects and programmes in various ways, including wherever possible through
field visits. Monitoring provides valuable information on progress; it helps
managers to identify actual and potential bottlenecks, and to take corrective
action.

External,
independent experts are contracted to assess the performance of EU external
actions through three different systems. These assessments contribute to
accountability, and to the improvement of ongoing interventions; they also draw
lessons from past experience to inform future policies and actions. The tools
all use the internationally-recognised OECD-DAC evaluation criteria including
(potential) impact.

Firstly, at
the project level, the Headquarters-managed Results Oriented Monitoring (ROM)
system provides a brief, focused snapshot of the quality of a sample of
interventions. Using a highly structured, standardised methodology, independent
ROM experts attribute grades which highlight the strengths and weaknesses of
the project and give recommendations on how to improve effectiveness.

Project-level
evaluations, which are managed by the EU Delegation in charge of the project,
deliver a more detailed, in depth analysis and help project managers to improve
ongoing interventions and prepare future ones. External, independent experts
with thematic and geographic expertise are hired to conduct the analysis and
gather feedback and evidence from all stakeholders, not least the final
beneficiaries.

The
Commission also conducts strategic evaluations of its policies, from
programming and strategy to the implementation of interventions in a specific
sector (such as health, education etc), in a country or region, or for a
specific instrument. These evaluations are an important input to the
formulation of policies and the design of instruments and projects. They are
all published on the Commission's website and a summary of the findings is
included in the Annual Report to the Council and the European Parliament.

2.2.        Management and control
system

2.2.1.     Risk(s) identified

The
operational environment of the Partnership Instrument is characterised by the
following risks to achieving the instrument's objectives:

-
geographically dispersed projects and programmes: the PI will have a global
reach with a specific focus on strategic partners. It will continue the current
cooperation with the industrialised countries and territories (of the current
ICI) but will enter into new projects/programmes with a group of countries
where cooperation was focused on ODA. The worldwide coverage may pose
logistical/resource challenges to monitoring - particularly any 'on-the-spot'
follow-up of activities;

- launch of
new programmes/projects, together with a risk of lack of institutional and
administrative capacity in some partner countries, may lead to difficulties and
delays in the design and implementation of interventions;

-
difficulties to follow-up and quantify the impact of such cooperation for the
EU and partner countries may hinder the Commission's ability to report on and
be accountable for results;

-
economic/political agenda may lead to difficulties and delays in the design and
implementation of interventions;

- since the
PI is a new instrument, a lack of human resources and administrative credits to
support the implementation of the instrument in delegations and at headquarters
may lead to difficulties to properly manage the instrument.

2.2.2.     Control method(s) envisaged

The
Commission’s internal control / management process is designed to provide
reasonable assurance regarding the achievement of objectives in the
effectiveness and efficiency of its operations, the reliability of its
financial reporting and compliance with the relevant legislative and procedural
framework.

To ensure
the effectiveness and efficiency of its operations, and to mitigate the high
level of risk in its external cooperation environment, in addition to all the
elements of the Commission wide Strategic Policy and Planning process, internal
audit environment and other requirements of the Commission's Internal Control
Standards, the following elements will apply:

–
Where appropriate, a devolved management of the
cooperation by EU delegations in the field;

–
Clear lines of financial accountability via
sub-delegation from the Sub-delegated Authorising Officer (Director/Head of
Service) at HQ to the Head of Delegation;

–
Regular reporting from EU Delegations to HQ
including an annual Statement of Assurance by the Head of Delegation;

–
Provision of a substantial programme of training
for staff both at HQ and in delegation;

–
Significant HQ/Delegation support and guidance
(including via internet);

–
Regular ex-post controls;

–
A project and programme cycle management
methodology including:

–
Quality support tools for the design of the
intervention, its delivery method, financing mechanism, management system,
assessment and selection of any implementing partners etc.

–
Programme and project management, monitoring and
reporting tools for effective implementation including regular external
on-the-spot monitoring of projects.

–
Significant evaluation and audit components.

2.3.        Measures to prevent fraud
and irregularities

Given the
high risk environment in external actions, systems need to anticipate a
significant occurrence of potential compliance errors (irregularities) in
transactions and build in a high level of prevention, detection and correction
controls as early as possible in the payment process. This means in practice
that compliance controls will place most reliance on significant ex-ante checks
on a multi-annual basis by both external auditors and Commission staff in the
field before final project payments (while still executing some ex-post audits
and checks), going well beyond the financial safeguards required by the
Financial Regulation. Compliance framework is made up of the following significant
components:

·
Preventative measures

·
Compulsory core training covering fraud issues for
cooperation management staff;

·
Ex-ante compliance assessments to ensure that
appropriate anti-fraud measures to prevent and detect fraud in the management
of EU funds are in place in all implementing partners;

·
The Commission signed the International Aid
Transparency Initiative (IATI) in Accra in 2008, agreeing on a standard for aid
transparency which ensures more timely, detailed and regular data on aid flows
and documents.

·
Detective and corrective measures

·
Ex-ante transactional checks performed by
Commission staff on all contract and payment transactions;

·
External audits and verifications (both
mandatory and risk based) including the European Court of Auditors;

·
Retrospective checks (on a risk basis) and
recoveries.

In addition
where irregularity is suspected to be intentional (fraud), the following
measures may apply:

·
Suspension of time-limit for payments and
notification to the entity;

·
Specific audits (ad hoc/forensic audit);

·
Early Warning System & reinforced monitoring
of contracts;

·
Suspension/termination of contract;

·
Exclusion procedure.

The Commission services will be working in full partnership with
OLAF for the implementation of the Action Plan of the Commission's new
anti-fraud strategy adopted by the College in 2011 to ensure inter alia that:

–
internal anti-fraud related controls are fully
aligned with the CAFS;

–
fraud risk management approach is geared to
identify fraud risk areas and adequate responses;

–
the systems used for spending EU funds in third
countries enable relevant data to be retrieved with a view to feeding this data
into fraud risk management (e.g. double funding);

–
where necessary, networking groups and adequate
IT tools dedicated to analysing fraud cases related to the external aid sector
could be set up.

2.4         Estimate of the costs and
benefits of the controls

The
Partnership Instrument’s internal control/management costs should be similar to
the costs calculated by EuropeAid for the management of its external actions
instruments (i.e. 6% of the envelope):

For the EuropeAid
portfolio as a whole, internal control / management costs total an estimated annual
average of € 658 million in commitments in the 2014-2020 budget
planning. This figure includes the management of the EDF which operates in an
integrated way within the management structure of EuropeAid. These 'non
operational' costs represent approximately 6,4 % of the estimated annual
average of € 10.2 billion planned for the overall (operational +
administrative) commitments by EuropeAid on its expenditure portfolio financed
by the General Budget of the EU and the European Development Fund for the
period 2014-2020.

These
management costs take into account all EuropeAid staff at HQ and in Delegations,
infrastructure, travel, training, monitoring, evaluation and audit contracts
(including those launched by beneficiaries).

EuropeAid plans
to reduce the management / operational activities ratio over time under the improved
and simplified arrangements of the new instruments, building on changes likely
to come in under the revised Financial Regulation. The key benefits of these
management costs are realised in terms of meeting policy objectives, efficient
and effective use of resources, and the exercise of robust cost-effective
preventative measures and other checks to ensure the legal and regular use of
funds.

While
improvements in the nature and targeting of management activities and
compliance checks in relation to the portfolio will continue to be pursued, these
costs are globally necessary to effectively and efficiently achieve the
objectives of the instruments at a minimal risk of non compliance (below 2%
residual error). They are significantly less than risks involved in removing or
scaling back internal controls in this high risk area.

3.           ESTIMATED FINANCIAL IMPACT OF THE
PROPOSAL/INITIATIVE

3.1.        Heading(s) of the
multiannual financial framework and expenditure budget line(s) affected

· Existing expenditure budget lines

In order of
multiannual financial framework headings and budget lines.

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Description........................................] || Diff./non-diff ([17]) || from EFTA[18] countries || from candidate countries[19] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

Heading 4 - Global Europe || 19 01 04 08 - Industrialised Countries Instrument (ICI) – Expenditure on administrative management 19 05 01 - Cooperation with industrialised non-member countries 19 05 02 - KEDO 19 05 03 - Pilot Project on transatlantic methods for handling global challenges 19 09 03 - Cooperation activities other than Official Development Assistance (Latin America) 19 09 02 - Preparatory Action - Cooperation with middle-income countries in Latin America 19 10 04 - Cooperation activities other than Official Development Assistance (Asia, Central Asia, Iraq, Iran, Yemen) 19 10 01 03 - Preparatory action on business and scientific exchanges with India 19 10 01 04 - Preparatory action on business and scientific exchanges with China 19 10 01 05 - Preparatory action - Cooperation with middle-income countries in Asia || Diff. || NO || NO || NO || NO

· New budget lines requested

Heading of multiannual financial framework || Budget line || Type of expenditure || Contribution

Number [Heading............................................] || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

Heading 4 - Global Europe || 19 01 04 08 – Partnership Instrument (PI) – Expenditure on administrative management. 19 05 01 - Cooperation with third countries under the Partnership Instrument. 19 05 02 - Cooperation with industrialised non-member countries – completion of previous programme 2007-2013 (Former BL 19 05 01). Nb: Other existing budget lines under chapter 19 09 and 19 10 will remain under closure of the actions (with “pm” for commitments). || Diff. || NO || NO || NO || NO

3.2.        Estimated impact on
expenditure

3.2.1.     Summary of estimated impact
on expenditure

EUR million (to 3 decimal places)

Heading of multiannual financial framework: || Number || Heading 4 - Global Europe ||

|| DG: FPI || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

|| Ÿ Operational appropriations (Current prices @ 2% from 2011 prices) || || || || || || || ||

|| 19 05 01 - Cooperation with third countries under the Partnership Instrument. || Commitments || (1) || 128,853 || 135,586 || 143,670 || 153,001 || 163,782 || 176,106 || 188,812 || 1.089,710

|| Payments (a) || (2) || 27,753 || 68,486 || 110,870 || 143,201 || 152,182 || 162,506 || 174,112 || 839,110

|| Appropriations of an administrative nature financed  from the envelop of specific programs[20] || || || || || || || ||

|| 19 01 04 08 – Partnership Instrument (PI) – Expenditure on administrative management (b) || || (3) || 4,847 || 5,114 || 5,430 || 5,799 || 6,218 || 6,694 || 7,188 || 41,290

|| TOTAL appropriations for DG FPI || Commitments || =1+1a +3 || 133,700 || 140,700 || 149,100 || 158,800 || 170,000 || 182,800 || 196,000 || 1.131,000

|| Payments || =2+2a +3 || 32,600 || 73,600 || 116,300 || 149,000 || 158,400 || 169,200 || 181,300 || 880,400

(a)
Payments for operational expenditure have been calculated using a standard
project cycle of 4 years of 20%-30%-30%-20%.

(b) An
amount of 4% of the envelope has been set aside for administrative support
expenditure

Heading of multiannual financial framework: || 5 || " Administrative expenditure " ||

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

|| DG: FPI ||

|| Ÿ Human resources || 3,227 || 3,195 || 3,163 || 3,131 || 3,131 || 3,131 || 3,131 || 22,111

|| Ÿ Other administrative expenditure || 0,150 || 0,153 || 0,156 || 0,159 || 0,163 || 0,166 || 0,169 || 1,116

|| TOTAL DG FPI || Appropriations || 3,377 || 3,348 || 3,319 || 3,291 || 3,294 || 3,297 || 3,301 || 23,227

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 3,377 || 3,348 || 3,319 || 3,291 || 3,294 || 3,297 || 3,301 || 23,227

EUR million

|| || || 2014 || 2015 || 2016 || 2017 || 2018-2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 137,077 || 144,048 || 152,419 || 162,091 || 173,294 || 186,097 || 199,301 || 1.154,227

Payments || 35,977 || 76,948 || 119,619 || 152,291 || 161,694 || 172,497 || 184,601 || 903,627

3.2.2.     Estimated impact on
operational appropriations

–
 ̈  The proposal/initiative does not require the use of operational
appropriations

–
ý  The proposal/initiative requires the use of operational
appropriations, as explained below:

Commitment appropriations in EUR million (to 3 decimal
places)

|| Indicate objectives and outputs ò || || || Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

|| OUTPUTS

|| Type of output[21] || Average cost of the ouput || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Number of ouputs || Cost || Total number of ouputs || Total cost

|| SPECIFIC OBJECTIVE No 1 Projecting the external dimension of “Europe 2020” strategy, policy dialogues, challenges of global concern || || || || || || || || || || || || || || || ||

|| - Output || || || || || || || || || || || || || || || || || ||

|| - Output || || || || || || || || || || || || || || || || || ||

|| Sub-total for specific objective N°1 || || 70,861 || || 74,571 || || 79,023 || || 84,164 || || 90,100 || || 96,884 || || 103,880 || || 599,483

|| SPECIFIC OBJECTIVE No 2 Economic partnerships, business and regulatory cooperation || || || || || || || || || || || || || || || ||

|| - Output || || || || || || || || || || || || || || || || || ||

|| Sub-total for specific objective N°2 || || 26,740 || || 28,140 || || 29,820 || || 31,760 || || 34,000 || || 36,560 || || 39,200 || || 226,220

|| SPECIFIC OBJECTIVE No3 Public diplomacy, academic/education cooperation and outreach || || || || || || || || || || || || || || || ||

|| - Output || || || || || || || || || || || || || || || || || ||

|| Sub-total for specific objective N°3 || || 24,567 || || 25,840 || || 27,372 || || 29,137 || || 31,182 || || 33,522 || || 35,932 || || 207,452

|| Unallocated reserve || || 6,685 || || 7,035 || || 7,455 || || 7,940 || || 8,500 || || 9,140 || || 9,800 || || 56,555

|| TOTAL COST || || 128,853 || || 135,586 || || 143,670 || || 153,001 || || 163,782 || || 176,106 || || 188,812 || || 1.089,710

N.B.: the breakdown per specific objectives
is as follows out of the financial envelope of 1.131,000 EUR Million:

Objective N° 1: 53%

Objective N° 2: 20%

Objective N° 3: 18%

Unallocated reserve: 5% to be programmed
between the 3 objectives according to the needs.

Allocations among outputs are not
appropriate due to the nature of the instrument (no standard number of outputs
and no average cost).

3.2.3.     Estimated impact on
appropriations of an administrative nature

3.2.3.1.  Summary

–
 ̈  The proposal/initiative does not require the use of administrative
appropriations

–
ý  The proposal/initiative requires the use of administrative
appropriations, as explained below:

EUR million (to 3
decimal places)

HEADING 5 of the multiannual financial framework || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources || 3,227 || 3,195 || 3,163 || 3,131 || 3,131 || 3,131 || 3,131 || 22,111

Other administrative expenditure || 0,150 || 0,153 || 0,156 || 0,159 || 0,163 || 0,166 || 0,169 || 1,116

Subtotal HEADING 5 of the multiannual financial framework || 3,377 || 3,348 || 3,319 || 3,291 || 3,294 || 3,297 || 3,301 || 23,227

Outside HEADING 5[22] of the multiannual financial framework || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020 || TOTAL

Human resources || 3,565 || 3,658 || 3,778 || 3,925 || 4,139 || 4,384 || 4,631 || 28,080

Other expenditure of an administrative nature || 1,282 || 1,456 || 1,652 || 1,875 || 2,079 || 2,310 || 2,557 || 13,210

Subtotal outside HEADING 5 of the multiannual financial framework || 4,847 || 5,114 || 5,430 || 5,799 || 6,218 || 6,694 || 7,188 || 41,290

TOTAL || 8,224 || 8,462 || 8,750 || 9,090 || 9,512 || 9,991 || 10,489 || 64,517

3.2.3.2.  Estimated requirements of
human resources

–
 ̈  The proposal/initiative does not require the use of human
resources

–
ý  The proposal/initiative requires the use of human resources, as
explained below:

Estimate to be expressed in full amounts
(or at most to one decimal place)

|| || 2014 || 2015 || 2016 || 2017 || 2018 || 2019 || 2020

Ÿ Establishment plan posts (officials and temporary agents) ||

|| XX 01 01 01 (Headquarters and Commission’s Representation Offices) || 17,4 || 17,3 || 17,1 || 16,9 || 16,9 || 16,9 || 16,9

|| XX 01 01 02 (Delegations) || || || || || || ||

|| XX 01 05 01 (Indirect research) || || || || || || ||

|| 10 01 05 01 (Direct research) || || || || || || ||

|| Ÿ External personnel (in Full Time Equivalent unit: FTE)[23] ||

|| XX 01 02 01 (CA, INT, SNE from the "global envelope") || 13,0 || 12,9 || 12,8 || 12,6 || 12,6 || 12,6 || 12,6

|| 12,6XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || 2,0 || 1,9 || 1,9 || 1,9 || 1,9 || 1,9 || 1,9

|| 19 01 04 08 [24] || - at Headquarters || || || || || || ||

|| - in delegations || 39,4 || 40,4 || 41,8 || 43,4 || 45,7 || 48,4 || 51,2

|| XX 01 05 02 (CA, INT, SNE - Indirect research) || || || || || || ||

|| 10 01 05 02 (CA, INT, SNE - Direct research) || || || || || || ||

|| Other budget lines (specify) || || || || || || ||

|| TOTAL || 71,8 || 72,5 || 73,5 || 74,9 || 77,2 || 79,9 || 82,7

Human resources
under Heading 5 correspond to the necessary staff to manage the new Partnership
Instrument.

It encompasses the
existing FPI staff managing the current ICI, i.e. 3,6 AD; 7 AST; 4,3 ACs, 2 ALs
in Washington = 17 FTE, and a request for additional staff estimated at 4 AD, 3
AST, 9 AC = 16 FTE.

19 is the policy area or budget title
concerned.

The human resources required will be met by
staff from the DG who are already assigned to management of the action and/or
have been redeployed within the DG, together if necessary with any additional
allocation which may be granted to the managing DG under the annual allocation
procedure and in the light of budgetary constraints.

Description of
tasks to be carried out:

Officials and temporary agents || Management of the programme and project cycle

External personnel || Management of the programme and project cycle

3.2.4.     Compatibility with the
current multiannual financial framework

–
xProposal/initiative is compatible the multiannual financial
framework 2014-2020.

–
 ̈  Proposal/initiative will entail reprogramming of the relevant
heading in the multiannual financial framework.

Explain what reprogramming is required,
specifying the budget lines concerned and the corresponding amounts.

–
 ̈  Proposal/initiative requires application of the flexibility
instrument or revision of the multiannual financial framework[25].

Explain what is required, specifying the
headings and budget lines concerned and the corresponding amounts.

3.2.5.     Third-party contributions

–
The proposal/initiative does not provide for
co-financing by third parties

–
The proposal/initiative provides for the
co-financing estimated below:

Appropriations in EUR million (to 3 decimal places)

|| Year N || Year N+1 || Year N+2 || Year N+3 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || Total

Specify the co-financing body || || || || || || || ||

TOTAL appropriations cofinanced || || || || || || || ||

3.3.        Estimated impact on
revenue

–
ý  Proposal/initiative has no financial impact on revenue.

–
 ̈  Proposal/initiative has the following financial impact:

–
 ̈         on own resources

–
 ̈         on miscellaneous revenue

EUR million (to 3 decimal places)

Budget revenue line: || Appropriations available for the ongoing budget exercise || Impact of the proposal/initiative[26]

Year N || Year N+1 || Year N+2 || Year N+3 || ... insert as many columns as necessary in order to reflect the duration of the impact (see point 1.6)

Article ............. || || || || || || || ||

For miscellaneous
assigned revenue, specify the budget expenditure line(s) affected.

Specify the method for
calculating the impact on revenue.

[1]               USA,
Japan, Canada, the Republic of Korea, Australia and New Zealand); certain Asian
industrialised countries and territories which are excluded from the DAC list
of recipient countries (Singapore, Hong Kong, Macao, Taiwan and Brunei) as well
as the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and
the United Arab Emirates) similarly excluded from the DAC list of ODA
recipients.

[2]               "Trade,
Growth and World Affairs - TRADE POLICY AS A CORE COMPONENT OF THE EU’S 2020
STRATEGY" (COM/2010/612) of 9.11.2010

[3]               i.e. peace and security, poverty reduction,
humanitarian aid, investing in stability and growth in enlargement and
neighbourhood countries, tackling global challenges, promoting EU and
international standards and values, and supporting growth and competitiveness
abroad.

[4]           "The
EU Energy Policy: Engaging with Partners beyond our borders".COM(2011) 539
of 7.09.2011

[5]               OJ L ...

[6]               OJ L 405, 30.12.2006.

[7]               “Europe 2020”: A strategy for smart, sustainable and
inclusive growth” COM (2010) 2020.

[8]               COM/2011/500.

[9]               OJ L 055,
28.02.2011 P. 013 - 018

[10]             ABM: Activity-Based Management – ABB: Activity-Based
Budgeting.

[11]             As referred to in Article 49(6)(a) or (b) of the
Financial Regulation.

[12]             Ref Evaluation: Intermediate
evaluation of the Executive Training Programme in Japan and Korea. February
2010. Deloitte consulting.

[13]             Ref Evaluation: http://www.eeas.europa.eu/eu-centres/docs/2010_evaluation_en.pdf

[14]             "Trade, Growth and World
Affairs - TRADE POLICY AS A CORE COMPONENT OF THE EU’S 2020 STRATEGY"
(COM/2010/612) of 9.11.2010

[15]             Details of management modes and references to the
Financial Regulation may be found on the BudgWeb site: http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html

[16]             As referred to in Article 185 of the Financial
Regulation.

[17]             Diff. = Differentiated appropriations / Non-Diff. =
Non-differentiated appropriations

[18]             EFTA: European Free Trade Association.

[19]             Candidate countries and, where applicable, potential
candidate countries from the Western Balkans.

[20]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[21]             Outputs are products and services to be supplied (e.g.:
number of student exchanges financed, number of km of roads built, etc.).

[22]             Technical and/or administrative assistance and
expenditure in support of the implementation of EU programmes and/or actions
(former "BA" lines), indirect research, direct research.

[23]             CA= Contract Agent; INT= agency staff ("Intérimaire");
JED= "Jeune Expert en Délégation" (Young Experts in
Delegations); LA= Local Agent; SNE= Seconded National Expert;

[24]             Under
the ceiling for external personnel from operational
appropriations (former "BA" lines).

[25]             See points 19 and 24 of the Interinstitutional
Agreement.

[26]             As regards traditional own resources (customs duties,
sugar levies), the amounts indicated must be net amounts, i.e. gross amounts
after deduction of 25% for collection costs.