# EUR-Lex - 52011PC0905 - EN

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# 52011PC0905

**Proposal for a DECISION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on amendments to the Agreement Establishing the European Bank for Reconstruction and Development (EBRD) extending the geographic scope of EBRD operations to the Southern and Eastern Mediterranean /* COM/2011/0905 final - 2011/0442 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

Introduction

The European
Bank for Reconstruction and Development (EBRD) was established in 1990 to
support the development of market economies from central Europe to central Asia
following the widespread collapse of communist regimes. The European Union,
together with the European Investment Bank (EIB) and all EU Member states at
that time were founding members. The EBRD is currently owned by 61 countries,
the EU and the EIB. The EBRD supports projects in 29 countries of operations,
primarily in the private sector, that cannot be fully financed by the market.
The EBRD promotes entrepreneurship and fosters transition towards open and
democratic market economies.

The 2011 events in our partner Mediterranean
countries call for a robust policy response from the EU. In March, the
Commission and the High Representative presented a Joint Communication[1]
signalling the strong political and economic support of the EU to the region
that included an option for extending the EBRD's mandate to cover the countries
of the Southern Neighbourhood, building on its experience fostering transition
towards open market-oriented economies over the last 20 years. The European
Council of 24/25 March 2011 broadly endorsed the contents of this Joint
Communication. In its Resolution of 7 April 2011 on the review of the European
Neighbourhood Policy – Southern Dimension, the European Parliament invited the
EBRD to change its statute in order to participate in
the financial assistance process. At their May 2011
meeting in Deauville, G8 leaders also called on the EBRD to extend its
geographic scope in order to leverage its experience and support the transition
of the Southern and Eastern Mediterranean countries to embrace the principles
of multiparty democracy, pluralism and market economies.

In response to fast moving events, EBRD’s
Governors called on the EBRD to examine the case for a regional extension of
the geographic scope of its mandate. Governors set the parameters for this work
at the EBRD’s Annual Meeting in May 2011. The EBRD Board of Directors submitted
to the Governors a report on the Geographic Expansion of the EBRD’s operations
to the Southern and Eastern Mediterranean, notably proposing two Resolutions:

(a)
Resolution 137 which proposes amendments to
Article 1 of the Agreement Establishing the Bank (AEB) to extend the region of
EBRD’s operations to the Southern and Eastern Mediterranean, and

(b)
Resolution 138 which proposes amendments to
Article 18 of the AEB to allow the use of Special Funds in potential recipient
countries.

EBRD's calibrated approach in the new region

The proposal for two resolutions to change
these two Articles was to allow the EBRD to engage in the Southern and Eastern
Mediterranean region in three phases:

–
Under the first phase, following the request of
the international community to quick start operations in the Mediterranean
region, the EBRD will use Cooperation Funds, which will
focus on technical cooperation and project preparation.

–
Under the second phase, the
EBRD will allocate its own resources to Special Funds, which can deliver a full
range of EBRD investment operations in the Southern and Eastern Mediterranean region. This phase
will start once the amendments to Article 18 of the AEB have been ratified by a
sufficient number of EBRD members, in accordance with Article 56 of the AEB.

–
Under the final phase,
the Southern and Eastern Mediterranean countries will become fully fledged countries
of operations. This phase will commence once the amendments to Article 1 of the
AEB have been ratified by the EBRD members, in accordance with Article 56 of
the AEB.

Article 1 of the AEB currently defines the region in which the Bank
is to pursue its purpose as the countries of Central and Eastern Europe as well
as Mongolia. As the prospective new recipient countries are outside that
region, Article 1 of the AEB will need to be amended before the EBRD is
entitled to carry out full operations there using its ordinary resources. The
text of the amendment is attached to the legislative proposal. Article 1 of the AEB needs to be amended to extend the scope of the
Bank's operations to include the member countries of the Southern and Eastern
Mediterranean, and to provide that a member can become a recipient country with
the approval of a qualified majority of no less than 2/3 of Governors, representing no less than 75% of the total voting power.

The EBRD's
Board of Directors Report stated that the Southern and
Eastern Mediterranean region "comprises the
countries that have a shoreline on the Mediterranean as
well as Jordan which is closely integrated into this region" which are
considered to be the EU Southern Neighbourhood countries. Egypt and Morocco are
already EBRD's members. Tunisia's and Jordan's memberships have been approved
by the EBRD Board of Governors respectively in September 2011 and in November
2011[2].

Whilst awaiting
the entry into force of Article 1 of the AEB (as amended), and in order to
allow for an earlier involvement of the EBRD in the Southern and Eastern Mediterranean,
the proposed amendment of Article 18 of the AEB would allow the EBRD to carry
out operations financed from Special Fund resources in selected member
countries of the extended region.

Article 18 of
the AEB needs to be amended to permit Special Funds to be used in the EBRD's
potential recipient countries and to provide that a member of the EBRD should
be designated as a potential recipient country with the approval of a qualified
majority of no less than 2/3 of Governors, representing no less than 75% of the
total voting power.
In addition, when the Board of Governors decides that a
member should be a potential recipient country, it should also decide the
length of time for which that member may be able to have access to the relevant
Special Funds.

The EU Governor of the EBRD and all EU Member States' Governors
voted in favour of Resolutions 137 and 138 at the Board
of Governors on 30 September 2011 approving the necessary amendments to
Articles 1 and 18 of the AEB. According to Article 56 of the AEB, thereafter
the members of the EBRD need to accept them. Therefore, a Decision of
the European Parliament and of the Council is necessary to allow these
amendments to enter into force thereby enabling the EBRD to operate in
countries of the Southern and Eastern Mediterranean and in order to allow the
use of special funds in recipient countries and potential recipient countries.

The amendments will enter into force seven days after the date of
formal communication by the EBRD when the requirements for accepting the
amendments have been met in accordance with Article 56
of the AEB.

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

The international community, including all
Member States, the Commission and the other EU institutions, has urged the EBRD
to become part of the economic response to the political events in the Southern
and Eastern Mediterranean region building on its experience in supporting the
economic transformation of countries in Central and Eastern Europe, as well as
Central Asia, after the collapse of communism.

The EU and the G8 also encouraged the EBRD
to support engagement in the region and pledged to work with the Bank towards
the creation of a 'dedicated transitional facility', to allow the Bank's
operations in countries of the extended region to start as early as possible.

The EBRD Board of Governors observed the
historic and dynamic changes occurring in the extended region and considered
the urgent need to express support to those countries of the region determined
to build a new and democratic order. The amendments to the AEB reflect the need
for the EBRD to expand its operations to the Southern
and Eastern Mediterranean countries by supporting
effectively the political and economic changes in the region. EBRD's
shareholders (which include all EU Member States, the EIB and the Commission
representing the EU) were actively involved in the process.

The EBRD has
assessed the impact on its capital adequacy of expanding its activities into
the new region of operations. During the first two phases of intervention
identified in section (1) of this explanatory memorandum, the EBRD activity
will be carried out through the allocation of part of the Bank’s net income.
During the first phase, EUR 20 million will be allocated by the EBRD to the Cooperation
Funds, and a further EUR 1 billion is expected to be allocated by the EBRD to
the Special Fund set up during the second phase. The assessment concluded that,
on the basis of the current level of financial risk and economic capital, the
EBRD will be able to stay within its statutory and economic capital requirements
during the Capital Resources Review (CRR) period 2011-2015 without any further capital
increase. Moreover, the EBRD has confirmed that the extension will have no
impact on the activities in the current countries of operations.

A wide range of
donors are being approached by the Bank to supplement both the Cooperation
Funds and Special Funds. Cooperation Funds are targeted to reach a total volume
of EUR 100 million, with monies likely to come from both current donors
(including the EU through the Neighbourhood Investment Facility) and possibly
non-traditional contributors, such as from the Arab world. No figure is
presently anticipated to be set for donor contributions to Special Funds. Before the EBRD engages in any of its potential new countries of
operations, it performs a detailed technical assessment
of the economic and political conditions existing in the country, including an
assessment of that country’s commitment to the Article 1 of the AEB principles
of multi-party democracy, pluralism and market economics, an assessment of
transition gaps, what other International Financial Institutions are doing in
the country, and the priorities where the EBRD can best make use of its unique
knowledge and skills. In preparing these assessments, the EBRD will fully take
into account the views of the EU and the wider international community.

Assessments have recently been carried out
for Egypt, Tunisia, Morocco and Jordan. These
assessments will be updated at each phase of EBRD engagement, and the
requirements get progressively more demanding. In addition, the EBRD has
committed to monitor economic and political developments in each country
closely, in order to calibrate the EBRD's engagement in line with the direction
and pace of developments, whilst ensuring that the views of the EU and the
wider international community are fully taken into account.

3.           LEGAL ELEMENTS OF THE PROPOSAL

The proposed Decision relates to the geographic
expansion of the EBRD's region of operations to the Southern and Eastern
Mediterranean region. Since the entry into force of the
Treaty on the Functioning of the European Union, Article 212 provides the legal
basis to the EU for carrying out economic, financial and technical cooperation
measures, in particular assistance to third countries and is proposed as the
legal basis for the present legislative proposal.

4.           BUDGETARY IMPLICATION

By its nature, the
present proposal has no direct financial impact on the
budget of the Union.

5.           DETAILED EXPLANATION OF THE PROPOSAL

Article 1

This Article concerns the approval by the
EU of the amendments to Articles 1 and 18 of the AEB which extend the scope of
the EBRD's operations to the countries of the Southern and Eastern
Mediterranean region.

Article 2

This Article will allow the Governor of the
EBRD representing the EU to communicate formally to the Bank the instrument of
acceptance of the above amendments.

2011/0442 (COD)

Proposal for a

DECISION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

on amendments to the Agreement
Establishing the European Bank for Reconstruction and Development (EBRD)
extending the geographic scope of EBRD operations to the Southern and Eastern
Mediterranean

THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 212 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)
In response to the 2011 events in the Southern
and Eastern Mediterranean region, in March 2011, the Commission and the High
Representative presented a Joint Communication[3] signalling the
strong political and economic support of the EU to the region that included an
option for extending the EBRD's mandate to cover the countries of the Southern
Neighbourhood, building on its experience over the last 20 years. The European Council
of 24/25 March 2011 broadly endorsed the contents of this Joint Communication.
In its Resolution of 7 April 2011 on the review of the European Neighbourhood
Policy – Southern Dimension, the European Parliament invited the EBRD to change its statute in order to participate in the financial
assistance process.

(2)
In May 2011, G8 leaders launched the Deauville Partnership
to help Southern and Eastern Mediterranean countries in their transition
towards free, democratic and tolerant societies and called on the EBRD to
extend its geographic scope in order to leverage its experience and support the
transition of these countries to embrace the principles of multiparty
democracy, pluralism and market economies.

(3)
By Resolutions 137 and 138 adopted on 30
September 2011, the Board of Governors of the EBRD voted in favour of the
necessary amendments to the Agreement Establishing the EBRD, enabling it to
expand the EBRD’s region of operations to the Southern
and Eastern Mediterranean. All EU Governors of the EBRD voted in favour of
these amendments, including the Governor representing the European Union.

(4)
According to Article 56 of the Agreement
Establishing the EBRD, the EBRD shall ask all members whether they accept the
proposed amendments. This acceptance should be given on behalf of the EU.

(5)
In carrying out its activities in the Southern
and Eastern Mediterranean region, the EBRD should be encouraged to continue its
close engagement with the EU and to develop a close cooperation with the EIB
and other European and international public financing institutions.

HAVE ADOPTED THIS DECISION:

Article 1

The amendments to Articles 1 and 18 of the
Agreement Establishing the EBRD attached to this Decision are hereby approved
on behalf of the European Union.

Article 2

The Governor of the EBRD representing the
European Union shall communicate to the EBRD the Declaration of Acceptance of
the amendments on behalf of the European Union.

Article 3

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

Done at Brussels,

For the European Parliament                       For
the Council

The President                                                 The
President

ANNEX: Amendments
to the Agreement Establishing the European Bank for Reconstruction
and Development

Article 1 of the Agreement
Establishing the Bank shall be replaced by the following:

"Article 1

PURPOSE

In contributing to
economic progress and reconstruction, the purpose of the Bank shall be to
foster the transition towards open market-oriented economies and to promote private
and entrepreneurial initiative in the Central and Eastern European countries
committed to and applying the principles of multiparty democracy, pluralism and
market economics. Subject to the same conditions, the purpose of the
Bank may also be carried out in Mongolia and in member countries of the Southern and Eastern
Mediterranean as determined by the Bank upon the affirmative vote of not less than two-thirds of the
Governors, representing not
less than three-fourths of the total voting power of the members. Accordingly,
any reference in this Agreement and its annexes to "Central and Eastern
European countries", "countries from Central and Eastern
Europe", "recipient country (or countries)" or "recipient
member country (or countries)" shall refer to Mongolia and each of such countries of the Southern and Eastern Mediterranean as well."

Article 18 of the Agreement Establishing the Bank shall be replaced
by the following:

"Article
18

SPECIAL FUNDS

1. (i) The Bank may
accept the administration of Special Funds which are designed to serve the
purpose and come within the functions of the Bank in
its recipient countries and potential recipient countries. The full cost of administering any such Special Fund shall be
charged to that Special Fund.

(ii) For the purposes of subparagraph (i), the Board of Governors
may, at the request of a member which is not a recipient country, decide that
such member qualifies as a potential recipient country for such limited period
and under such terms as may seem advisable. Such decision shall be taken by the
affirmative vote of not less than two-thirds of the Governors, representing not
less than three-fourths of the total voting power of the members.

(iii) The decision to allow a member to qualify as a potential
recipient country can only be made if such member is able to meet the
requirements for becoming a recipient country. Such requirements are those set
out in Article 1 of this Agreement, as it reads at the time of such decision or
as it will read upon the entry into force of an amendment that has already been
approved by the Board of Governors at the time of such decision.

(iv) If a potential recipient country has not become a recipient
country at the end of the period referred to in subparagraph (ii), the Bank
shall forthwith cease any special operations in that country, except those
incident to the orderly realization, conservation and preservation of the
assets of the Special Fund and settlement of obligations that have arisen in
connection therewith.

2. Special Funds accepted by the Bank may be used in its recipient countries and potential recipient countries in any manner and on any terms and conditions consistent with the purpose and functions of the Bank,
with the other applicable
provisions of this Agreement, and with the agreement or
agreements relating to such Funds.

3. The Bank shall adopt such rules and regulations as may be
required for the establishment, administration and use of each Special Fund.
Such rules and regulations shall be consistent with the provisions of this
Agreement, except for those provisions expressly applicable only to ordinary
operations of the Bank."

LEGISLATIVE FINANCIAL STATEMENT
FOR PROPOSALS

1.
FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1.
Title of the proposal/initiative

Proposal for Decision of the European Parliament and of the Council
on amendments to the Agreement Establishing the European Bank for
Reconstruction and Development (EBRD) expanding the geographic scope of EBRD
operations to the Southern and Eastern Mediterranean.

1.2.
Policy area(s) concerned in the ABM/ABB
structure[4]

Title 01 – Economic and Financial Affairs

1.3.
Nature of the proposal/initiative

 ̈ The
proposal/initiative relates to a new action

 ̈ The
proposal/initiative relates to a new action following a pilot
project/preparatory action[5]

ý 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

Objective "To promote
prosperity beyond the EU"

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

Specific objective No. 2. "To improve the EU profile, external
representation and liaison with the EIB and EBRD, other international financial
institutions, and relevant economic fora aiming at strengthening convergence
between their strategies and operations and EU external priorities"

ABM/ABB activity concerned

Title 01.03 – International Economic and Financial Affairs

1.4.3.
Expected result(s) and impact

The main objective of the amendments to Articles
1 and 18 of the Agreement Establishing the European Bank for Reconstruction and
Development (AEB) is to extend
the geographic scope of the EBRD’s mandate in the Southern and Eastern
Mediterranean region of operations and allow for an earlier involvement of the
EBRD through Special Fund in the new countries of operations while awaiting the
entry into force of Article 1 of the AEB.

1.4.4.
Indicators of results and impact

The attainment of objectives will be measured in accordance with the
EBRD's own reporting on financing operations in the Southern
and Eastern Mediterranean region.

1.5.
Grounds for the proposal/initiative
1.5.1.
Requirement(s) to be met in the short or long
term

The Board of Governors adopted Resolutions 137 and 138 on 30
September 2011 approving the necessary amendments to Articles 1 and 18 of the
AEB with unanimous support from the EU Governors.

The Resolutions as approved by EBRD's Governors need to be accepted
by EBRD's members, including by the European Union, in
accordance with Article 56 of the AEB. Each member of
the EBRD shall deposit with the EBRD an instrument stating that it has accepted
the amendments to Articles 1 and 18 of the AEB. A decision of the European
Parliament and of the Council is necessary for the EU to state its formal
acceptance of these amendments.

1.5.2.
Added value of EU involvement

As stated in the explanatory memorandum, the EU Member States and
the EU institutions are supportive of the expansion of EBRD activities to
Southern and Eastern Mediterranean region. The EU is a member of the EBRD.

1.5.3.
Lessons learned from similar experiences in the
past

The EBRD has accumulated unique experience in supporting public and
financial sector reform, promoting small and medium sized enterprises, and the
privatisation of state companies in its current countries of operations. The
countries in the Southern and Eastern Mediterranean region face similar
challenges of economic modernisation, growth and job creation as did the
countries of Central and Eastern Europe after the fall of Communism. Support
for investments in infrastructure and for the private sector is badly needed, and
the EBRD can use and deploy its expertise in these and other areas to help
bring economic benefits in this new region of operations.

1.5.4.
Coherence and possible synergy with other
relevant instruments

The Commission systematically promotes close cooperation and joint
initiatives with the EBRD, the EIB and other IFIs as efficient donor/IFI
concerted actions are increasingly necessary to sustain recovery in a fragile
and fiscally constrained economic environment. Close cooperation with the EBRD
also underpins the achievement of EU objectives in the field of economic
external relations activities.

Against this background, the Commission supports, in particular, its
cooperation with the EIB and the EBRD in the framework of tripartite (EU-EIB-EBRD)
Memorandum of Understanding, as well as within grant and loan blending
mechanisms, such as the Western Balkans Investment Framework and the Neighbourhood
Investment Facility. The Commission, the EIB and the EBRD will extend the
tripartite Memorandum of Understanding to cover the Southern and Eastern
Mediterranean region. The cooperation between the Commission and the EBRD, as
well as between the EBRD, the EIB and other multilateral and bilateral
financial institutions, will be pursued in the Southern and Eastern
Mediterranean region. As in its current region of operations, the EBRD activity
in the Southern and Eastern Mediterranean can benefit from the Neighbourhood
Investment Facility (NIF) support.

1.6.
Duration and financial impact

 ̈ Proposal/initiative of limited
duration

–
 ̈  Proposal/initiative in effect from [DD/MM]YYYY to [DD/MM]YYYY

–
 ̈  Financial impact from YYYY to YYYY

ý Proposal/initiative of unlimited
duration

1.7.
Management mode(s) envisaged[6]

ý      Centralised direct management by the Commission

 ̈      Centralised indirect management with the delegation of
implementation tasks to:

–
 ̈  executive agencies

–
 ̈  bodies set up by the Communities[7]

–
 ̈  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

Comments

N/A

2.
MANAGEMENT MEASURES
2.1.
Monitoring and reporting rules

EBRD Financing Operations will be managed in accordance with the
EBRD's own rules and procedures, including appropriate audit, control and
monitoring measures. As foreseen in the AEB, the Audit Committee of the EBRD,
which is supported by external auditors, assists the EBRD Board of Directors
and is responsible for verifying the regularity of the EBRD operations and
accounts. The Board of Directors, where the EU, represented by the Commission,
has a Director, submits the audited accounts for each financial year for
approval of the Board of Governors at each annual meeting and approves the
budget of the EBRD. The Board of Governors approves, after reviewing the
auditor's report, the general balance sheet and the statement of profit and
loss of the EBRD.

Furthermore, the Board of Directors establishes policies and takes
decisions concerning loans, guarantees, investment in equity capital, borrowing
by the EBRD, the furnishing of technical assistance and other operations of the
EBRD in conformity with the general directions of the Board of Governors.

Finally, the Board of Directors has established three Board
Committees to assist it in its work: the Audit Committee mentioned above, the
Budget and Administrative Affairs Committee and the Financial and Operations
Policies Committee. The EU Director (or his alternate) attends all these Boards
Committees.

The Governor of the EBRD for the Union will report annually to the
European Parliament on EBRD related matters in accordance with Decision No 1219/2011/EU
of the European Parliament and of the Council concerning the subscription by
the European Union to additional shares in the capital of the EBRD.

2.2.
Management and control system
2.2.1.
Risk(s) identified

The EU risk attached to this Decision is linked to its participation
in the EBRD.

2.2.2.
Control method(s) envisaged

EBRD operations in the Southern and Eastern region will be carried
out according to EBRD standard rules of procedure and sound banking practice. See
also 2.1.

2.3.
Measures to prevent fraud and irregularities

The EBRD has an independent Office of the Chief Compliance Officer
(OCCO), which is headed by a Chief Compliance Officer (CCO) reporting directly
to the President, and annually, or as necessary, to the Audit Committee. The
OCCO’s mandate is to promote good governance and to ensure the highest
standards of integrity are applied throughout all of the activities of the EBRD
in accordance with international best practice. The responsibilities of the
OCCO include dealing with issues of integrity, due diligence, confidentiality,
conflicts of interest, corporate governance, accountability, ethics, anti-money
laundering, counter-terrorist financing and the prevention of fraudulent and
corrupt practices. The OCCO is responsible for investigating allegations of
fraud, corruption and misconduct. It also trains and advises, as necessary,
EBRD staff members who are appointed as directors to the boards of companies in
which the EBRD holds an equity interest. Financial and integrity due diligence
are integrated into the Bank's normal approval of new business and the
monitoring of its existing transactions. The EBRD publishes the OCCO’s
anti-corruption report on its web site.

Moreover, the OCCO has the specific responsibility for administering
the EBRD’s accountability mechanism, currently the Independent Recourse
Mechanism soon to be replaced with the Project Complaint Mechanism, which
assesses and reviews complaints about projects financed by the EBRD and
provides, where warranted, a determination as to whether in approving a
particular project, the EBRD acted in compliance with its relevant policies.

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........................................] || DA/NDA ([8]) || from EFTA[9] countries || from candidate countries[10] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

4 || - || - || NO || NO || NO || NO

3.2.
Estimated impact on expenditure
3.2.1.
Summary of estimated impact on expenditure

The acceptance by the EU of the expansion of
the EBRD to the Southern and Eastern Mediterranean region does not require any
operational expenditure.

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

EUR million (to 3 decimal places)

|| || || Year 2011 || Year 2012 || Year 2013 || Year 2014 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

DG: ECFIN ||

Ÿ Human resources || 0.127 || 0.064 || || || || || || 0.191

Ÿ Other administrative expenditure || || || || || || || ||

TOTAL DG ECFIN || Appropriations || 0.127 || 0.064 || || || || || || 0.191

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) || 0.127 || 0.064 || || || || || || 0.191

EUR million (to 3 decimal places)

|| || || Year 2011 || Year 2012 || Year 2013 || Year 2014 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments || 0.127 || 0.064 || || || || || || 0.191

Payments || 0.127 || 0.064 || || || || || || 0.191

3.2.2.
Estimated impact on operational appropriations

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

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)

|| Year 2011 || Year 2012 || Year 2013 || Year 2014 || ... enter as many years as necessary to show the duration of the impact (see point 1.6) || TOTAL

HEADING 5 of the multiannual financial framework || || || || || || || ||

Human resources || 0.127 || 0.064 || 0.000 || 0.000 || || || || 0.191

Other administrative expenditure || || || || || || || ||

Subtotal HEADING 5 of the multiannual financial framework || 0.127 || 0.064 || 0.000 || 0.000 || || || || 0.191

Outside HEADING 5[11] of the multiannual financial framework || || || || || || || ||

Human resources || || || || || || || ||

Other expenditure of an administrative nature || || || || || || || ||

Subtotal outside HEADING 5 of the multiannual financial framework || || || || || || || ||

TOTAL || 0.127 || 0.064 || 0.000 || 0.000 || || || || 0.191

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 time
equivalent units (or at most to one decimal place)

|| Year 2011 || Year 2012 || Year 2013 || Year 2014 || ... enter as many years as necessary to show the duration of the impact (see point 1.6)

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

01 01 01 01 (Headquarters and Commission’s Representation Offices) || 1.0 || 0.5 || 0 || 0 || || ||

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)[12] ||

XX 01 02 01 (CA, INT, SNE from the "global envelope") || || || || || || ||

XX 01 02 02 (CA, INT, JED, LA and SNE in the delegations) || || || || || || ||

XX 01 04 yy [13] || - at Headquarters[14] || || || || || || ||

- in delegations || || || || || || ||

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

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

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

TOTAL || 1.0 || 0.5 || 0 || 0 || || ||

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.

Description of
tasks to be carried out:

Officials and temporary agents || The main tasks arising from the proposal are the following: - Preparation of legislative proposal - Follow up of the legislative procedure with the European Parliament and the Council; - Relations and communication with EBRD management.

External personnel ||

3.2.4.
Compatibility with the current multiannual
financial framework

–
ý  Proposal/initiative is compatible the current multiannual
financial framework.

–
ý The proposal is compatible with existing financial programming.

3.2.5.
Third-party contributions

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

3.3.
Estimated impact on revenue

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

[1]               Joint Communication "A Partnership for Democracy
and Shared Prosperity with the Southern Mediterranean", COM(2011)200 of 8
March 2011. The extension of the EBRD mandate to Southern Eastern Neighbours
was also supported by the Commission and the EEAS in the Joint Communication
"A new response to a changing Neighbourhood", COM(2011)303 of 25 May
2011.

[2]               Israel is also a member of the EBRD but it is not
expected to become an EBRD country of operations.

[3]               Joint Communication "A Partnership for Democracy
and Shared Prosperity with the Southern Mediterranean", COM(2011)200 of 8
March 2011. The extension of the EBRD mandate to Southern Eastern Neighbours
was also supported by the Commission and the EEAS in the Joint Communication
"A new response to a changing Neighbourhood", COM(2011)303 of 25 May
2011.

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

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

[6]               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

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

[8]               DA= Differentiated appropriations / DNA=
Non-Differentiated Appropriations

[9]               EFTA: European Free Trade Association.

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

[11]             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.

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

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

[14]             Essentially for Structural Funds, European Agricultural
Fund for Rural Development (EAFRD) and European Fisheries Fund (EFF).