# EUR-Lex - 52011PC0844 - EN

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# 52011PC0844

**Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a financing instrument for the promotion of democracy and human rights worldwide /* COM/2011/0844 final - 2011/0412 (COD) */**

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EXPLANATORY MEMORANDUM

1.           CONTEXT OF THE PROPOSAL

The European Union is founded on the values
of respect for human dignity, freedom, democracy,
equality, the rule of law and respect for human rights (Article 2 of the Treaty on European Union). Furthermore, as also
provided in the Treaty, the Union's action on the
international scene “shall be guided by the principles which have inspired its
own creation, development and enlargement, and which it seeks to advance in the
wider world: democracy, the rule of law, the universality and indivisibility of
human rights and fundamental freedoms, respect for human dignity, the
principles of equality and solidarity, and respect for the principles of the
United Nations Charter and international law.” (Article 21).

Therefore, the promotion of democracy and
human rights is an essential aspect of the EU’s external action. In promoting human rights and democracy worldwide, the EU is using a
wide range of measures, from political dialogue and diplomatic initiatives to
financial and technical cooperation and assistance.

The Regulation on establishing a European
Instrument for Democracy and Human Rights (EIDHR)[1] constitutes a corner stone of this
political strategy and is a unique and visible expression of the EU’s strong
commitment to democracy and human rights. The instrument has generated genuine
results and numerous success stories, providing support to civil society and
human rights institutions worldwide as well as election observation. Due to its
independence from Government consent and its flexibility, the EIDHR represents
a key added value to the EU’ policy toolbox.

The general objectives and the scope of the
EIDHR which are to contribute to the development and consolidation of human
rights and fundamental freedoms, democracy and the rule of law worldwide, must
be preserved in the new Regulation.

The Regulation builds
on the strong linkage between democracy and human rights. In recent years the EU's agenda on democracy support has constantly
evolved and has grown towards a comprehensive approach. In particular the
November 2009 Council Conclusions[2]
on democracy support constitute the first strategic, concrete orientation for a
broader and more coherent democracy support policy in the EU’s external
relations. In December 2010, the Commission presented a first report on the
follow-up to the Conclusions and new conclusions[3]
were adopted including the identification of ten pilot countries where the
Agenda of Action is to be implemented and immediate action to be taken.

It is therefore deemed essential that the future EIDHR
keeps a large scope encompassing the existing wide array of activities of
advocacy, core support and field operations, including election observation,
supporting all fundamental rights inherent to democracy together will all other
human rights and fundamental freedoms. It is a guarantee for policy
rationality, comprehensiveness of approach, coherence of operations and
economies of scale.

The scope of the EIDHR covers five
objectives since 2007:

·
Enhancing respect for human rights and
fundamental freedoms in countries where they are most at risk;

·
Strengthening the role of civil society in
promoting human rights and democratic reform, in supporting the peaceful
conciliation of group interests and, in consolidating political participation
and representation;

·
Supporting actions on human rights and democracy
issues in areas covered by EU Guidelines, including on human rights dialogues,
on human rights defenders, on the death penalty, on torture, on children and
armed conflict, on the rights of the child, on violence against women and girls
and combating all forms of discrimination against them, on International
Humanitarian Law and on possible future guidelines;

·
Supporting and strengthening the international
and regional framework for the protection and promotion of human rights,
justice, the rule of law and the promotion of democracy;

·
Building confidence in and enhancing the
reliability and transparency of democratic electoral processes, in particular
through election observation.

The response strategy[4]
under the EIDHR builds on working predominantly with and through civil society
organizations, aimed at defending the fundamental freedoms which form the basis
for all democratic processes and helping civil society to become an effective
force for political reform and defence of human rights. This specificity of the
response strategy will be fully preserved in the new Regulation. In this way,
it complements the new generation of geographical programmes, which
increasingly mainstream democracy and human rights, though focusing primarily
on public institution-building.

Furthermore, the new EIDHR regulation will enhance the EU
toolbox to address more efficiently the situation in difficult countries or in
emergency situations where human rights and fundamental freedoms are most at
risk. Recent developments in the European Neighbourhood, in particular the Arab
Spring, have shown that there is a strong home-grown demand for increased
freedoms and rights together with democracy that the EU needs to support. In
such cases, the European Union will have the possibility to fund directly ad
hoc actions through direct grants or low value grants. This will be the case
where the procedural modalities could affect negatively the effectiveness of the actions or could subject the
beneficiaries to serious intimidation, retaliation or other types of risks. Ad
hoc actions would, in principle, be included in the Strategy Papers and Annual
Programmes. However, in exceptional circumstances, ad hoc actions could be
adopted through special measures outside of the programming cycle.

From
a wider perspective, the proposed EIDHR regulation should be viewed in the
context of all proposed financial instruments for the 2014-2020 Multi-annual
Financial Framework as outlined in the Communication “A Budget For Europe
2020”. Together with the instruments under the Heading 4 (Global Europe) and
with the European Development Fund, the new EIDHR will ensure more coherence
and effectiveness to the EU’s external action.

In accordance with the Council decision
establishing the organisation and functioning of the European External Action
Service (EEAS)[5] , the High Representative/Vice-President shall ensure overall
political coordination of the Union’s external action, including through the
EIDHR. In particular, the EEAS shall contribute to the programming and
management cycle of the EIDHR as outlined in Article 9(3) of the above
mentioned Council Decision.

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 services involved.
The 220 contributions received to the public consultation reflected a broad
and diverse spectrum representing the variety of structures, views and
traditions characterising the external action community.

A majority of the respondents (around 70%)
confirmed that EU financial intervention provided substantial added value
in the main policy areas supported through EU Financial Instruments for
external action[6].
The criterion of EU added value was put forward by many respondents as the main
driver for the future: they considered that the EU should exploit its
comparative advantage linked to its global field presence, its wide-ranging
expertise, its supranational nature, its role as facilitator of coordination,
and exploit economies of scale.

Nearly all
respondents (92%) support a more differentiated approach, tailored to the
situation of the beneficiary country, based on sound criteria and efficient
data collection, to be used as a way to increase the impact of EU financial
instruments. Over two thirds of respondents believe that EU interests are
sufficiently taken into account in its external action, and that the latter
should be based to a larger extent on EU values and principles, and on
development objectives of the partner countries. Inversely, a minority
considers that EU external action should concentrate more on EU's own interests
in the global economy, particularly towards emerging economies.

Regarding
simplification of instruments and the balance between geographic and thematic
instruments, opinions are mixed regarding a review of EU thematic programmes
and a possible reduction in number. Many fear that this could imply a decrease
in the overall amount available for thematic action, and rather call for a
simplification of the rules governing access and implementation of thematic
funding. Several thematic issues are highlighted as important such as the
reinforcement of the European Instrument for Democracy and Human Rights, climate
financing or the current DCI thematic programmes. Increased flexibility of the
geographic limits of EU instruments is supported by a significant majority of
respondents as a way to respond to interregional challenges.

A majority of
respondents agree that joint programming and co-financing with Member States
can increase the impact and the coherence of EU external action, simplify the
delivery of aid and reduce overall transaction costs.

Regarding like-mindedness
and conditionality, there is wide support among respondents for exploring
conditionality based on the beneficiary country's respect for human rights,
minorities, good governance and diversity of cultural expressions (78%), or on
the quality of its policies and of its ability and willingness to implement
sound policies (63%). A majority of respondents is critical towards basing
external cooperation on the EU's own interests.

Regarding EU external action on human
rights and democracy, all respondents highlighted the need to further
promote and support these objectives worldwide both by mainstreaming them
within all EU policies and actions and by upholding them in a dedicated,
separate but complementary, financial instrument. The European Instrument for
Democracy and Human Rights is highly valued and all stakeholders asked the EU
to enhance its potential, safeguard its added value and further develop its
speed of delivery, in particular for the most difficult and urgent cases.

Impact assessment

The Commission carried out an Impact
Assessment (IA) that considered 3 main policy alternatives (with some
sub-options):

(1) No separate EIDHR Regulation and
mainstream human rights and democracy under other instruments;

(2) No change to the current regulation
with only an increase in the budget allocation that will provide for additional
activities under the current framework;

(3) Building a better enabling regulation,
while preserving the key features of the existing Regulation.

The first option was not retained as it
appeared clearly that the suppression of a self standing instrument for human
rights and democracy would send a negative political signal and would lead to
the abolition of specific, valuable working principles such as the absence of
consent of the host country or the targeting of civil society actors. This in
turn would reduce efficiency in delivery and create a strong loss of EU
visibility and reputation.

The second option was also discarded as it
would not allow seizing the opportunity of facing new challenges adequately,
correcting some lessons learned and answering new demands.

The third option was retained as it would
allow preserving the political and operational benefits of the instruments,
while allowing for a better adaptation of the regulation. Under this option,
the new draft should be built as a better
enabling regulation. The revised
instrument set up would offer a process oriented tool focusing on four different windows:

·
thematic campaigns, mixing advocacy and field
operations for great causes(e.g. democracy support) and addressing serious
violations of rights (e.g. torture, death penalty, discrimination, etc..), as
well as providing core support to key actors and related civic education;

·
targeted support to the development of thriving
civil societies empowering it in its quest for and defence of democracy and
human rights and to their specific role as actors for positive change;

·
reinforced capacity for the EU to be able to
react quickly to human rights urgencies and establishment of a comprehensive EU
Human Rights Defender mechanism;

·
strengthened and better integrated approach to
democratic cycles, through election observation and other types of support to democratic
and electoral processes;

3.           LEGAL ELEMENTS OF THE PROPOSAL

The instrument proposed is based on Article
209 of the Treaty on the Functioning of the European Union which provides the legal basis for development
cooperation within the framework of the principles and objectives of the
Union’s external action. In addition, Articles 2 and 21 of the Treaty on
European Union further underpin the importance for the European Union to
support democracy and human rights as part of its external action.

Since the objectives of the proposed
Regulation cannot be sufficiently achieved by the Member States alone and can
therefore, by reason of the scale and coverage of the action, be better
achieved at Union level, the Union may adopt measures, in accordance with the principle
of subsidiarity as set out in Article 5 of the Treaty. The EU is in a unique
position to deliver part of the external assistance on behalf of and with
Member States, giving it enhanced credibility in the countries where it
operates. Many Member States have not the capacity and/or the willingness to
develop global external instruments. Therefore, an intervention at EU level is the
only possibility to promote EU values globally and ensure a worldwide EU
presence.

The proposed regulation also strengthens
the coordination capacity and facilitates joint programming with the Member
States, ensuring efficient labour division and effective aid delivery. The
Union assistance shall focus where it has more impact, worldwide promotion of
democracy, good governance, human rights and the rule law, its long-term and
predictable engagement in development assistance and its role in coordinating with
its Member States. In accordance with the principle of proportionality, as set
out in Article 5 of the Treaty, the proposed Regulation does not go beyond what
is necessary to achieve its objectives.

4.           BUDGETARY IMPLICATION

The instrument proposed is part of the
measures to be implemented under the Heading IV "Global Europe" of
the European Union's Multiannual Financial Framework. The
financial envelope for the implementation of this Regulation for the period
2014-2020 shall be EUR 1 578 000 000 (current prices). It
corresponds to an approximate average annual envelope of EUR 225 000 000.

2011/0412 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT
AND OF THE COUNCIL

establishing a financing instrument for
the promotion of democracy and human rights worldwide

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 Article 209 and 212 thereof,

Having regard to the proposal from the
Commission,

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

Having regard to the opinion of the
European Economic and Social Committee[7],

Having regard to the opinion of the
Committee of the Regions[8],

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 (EC) No 1889/2006 of the European Parliament and of the
Council of 20 December 2006 on establishing a financing instrument for the
promotion of democracy and human rights worldwide[9].

(2)
This Regulation establishes a financing instrument
for the promotion of democracy and human rights worldwide allowing for
assistance independent from the consent of third country governments and other
public authorities.

(3)
Article 2 of the Treaty on European Union provides
that the Union is founded on the values of respect for
human dignity, freedom, democracy, equality, the rule of law and respect for
human rights, including the rights of persons belonging to minorities. These
values are common to the Member States in a society in which pluralism,
non-discrimination, tolerance, justice, solidarity and equality between women
and men prevail.

(4)
Article 21 of the Treaty on European Union provides
that the external action of the European shall be guided by the same principles
which have inspired its own creation: democracy, the rule of law, the
universality and indivisibility of human rights and fundamental freedoms,
respect for human dignity, the principles of equality and solidarity and
respect for the principles of the United Nations Charter and international law.

(5)
This financing instrument
contributes to achieving the objectives of the Union’s external action, including
those of the European Development Policy.

(6)
The Union's contribution to democracy and the rule
of law and to respect for human rights and fundamental freedoms is rooted in
the universally accepted general principles established by the International
Bill of Human Rights, and any other human rights instrument adopted within the
framework of the United Nations, as well as relevant regional human rights
instruments.

(7)
Gender equality and women's rights are
fundamental human rights and a question of social justice and their promotion is
a strong component of this Regulation.

(8)
Democracy and human rights are inextricably linked,
as recalled in the Council Conclusions of 18 November 2009, on democracy
support in the EU’s external relations. The fundamental freedoms of expression
and association are the preconditions for political pluralism and democratic
processes, whereas democratic control and separation of powers are essential to
sustain an independent judiciary and the rule of law which in turn are required
for effective protection of human rights.

(9)
The task of building and sustaining a culture of
human rights and making democracy work for citizens, though especially urgent
and difficult in emerging democracies, is essentially a continuous challenge,
belonging first and foremost to the people of the country concerned but without
diminishing the commitment of the international community. It also requires a
range of institutions, in particular national democratic parliaments that
should ensure participation, representation, responsiveness and accountability.

(10)
In order to address these issues in an effective,
transparent, timely and flexible manner after Regulation (EC) No1889/2006 expires,
there is a continued need for specific financial resources and a specific
financing instrument that can continue to work in an independent manner.

(11)
Union assistance under this Regulation is designed
to complement the various other tools for implementing of Union policies on
democracy and human rights, which range from political dialogue and diplomatic
demarches to various instruments for financial and technical cooperation,
including both geographic and thematic programmes. It will also complement the
more crisis-related actions under the Instrument for Stability.

(12)
Under this Regulation, the Union will provide
assistance to address global, regional, national and local human rights and
democratisation issues in partnership with civil society understood to span all
types of social action by individuals or groups that are independent from the
state and active in the field of human rights and democracy support.

(13)
Furthermore, whilst democracy and human rights
objectives must be increasingly mainstreamed in all external assistance
financing instruments, Union assistance under this Regulation will have a
specific complementary and additional role by virtue of its global nature and
its independence of action from the consent of third country governments and
other public authorities. This will allow for cooperation with civil society on
sensitive human rights and democracy issues possible, providing the flexibility
to respond to changing circumstances. It should also provide Union capacity to
articulate and support specific objectives and measures at international level
which are neither geographically linked nor crisis related and which may
require a transnational approach or involve operations both within the Union
and in a range of third countries. Moreover, it will provide the necessary
framework for operations, such as support for independent European Union
election observation missions requiring policy coherence, a unified management
system and common operating standards.

(14)
The Union will pay particular attention to
countries and urgency situations where human rights and fundamental freedoms
are most at risk and where disrespect for these rights and freedoms is
particularly pronounced and systematic. In such situations, the political
priorities will be to promote respect for the relevant international laws, to
provide tangible support and means of action to local civil society and to
contribute to its work, carried out in very difficult circumstances. In
conflict situations, the Union will promote the compliance of all warring
parties with their legal obligations under international humanitarian law, in
accordance with the relevant Union guidelines.

(15)
In such most difficult
countries or situations and in order to address urgent protection needs of
human rights defenders, the Union should be able to respond in a flexible and
timely manner by means of ad hoc grants. This will particularly be the case
when the choice of procedural modalities could impact directly on the
effectiveness of the measures or could subject beneficiaries to serious
intimidation, retaliation or other types of risks.

(16)
European Union Election Observation Missions
contribute significantly and successfully to democratic processes in third
countries. However, the promotion of democracy extends far beyond the electoral
process alone. Expenditure for election observation missions should therefore
not take up a disproportionate amount of the total funding available under this
Regulation.

(17)
The implementing powers relating to the programming
and financing of the actions supported under this Regulation should be
exercised in accordance with Regulation (EU) N° 182/2011 of the European
Parliament and the Council of 16 February 2011 laying down the rules and
general principles concerning mechanisms for control by Member States of the
Commission's exercise of implementing powers. 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.

(18)
Common Rules and procedures for the implementation
of the Union's instruments for external action are laid down in regulation (EU
N° .../...of the European Parliament and of the Council of
...[10], hereinafter referred as "the Common Implementing
Regulation".

(19)
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

This Regulation establishes a European
Instrument for Democracy and Human Rights under which the Union shall provide
assistance to the development and consolidation of democracy and the rule of
law and of respect for all human rights and fundamental freedoms.

Such assistance shall aim in particular at

(a)
enhancing the respect for and observance of human
rights and fundamental freedoms, as proclaimed in the Universal Declaration of
Human Rights and other international and regional human rights instruments, and
strengthening their protection, promotion and monitoring, mainly through
support to relevant civil society organisations, human rights defenders and
victims of repression and abuse;

(b)
supporting and consolidating democratic reforms in
third countries, by enhancing participatory and representative democracy,
strengthening the overall democratic cycle, and improving the reliability of
electoral processes, in particular by means of election observation missions.

Article 2
Scope

1.           Union assistance shall relate
to the following fields:

(a)
support to and enhancement of participatory and
representative democracy, including parliamentary democracy, and the processes
of democratisation, mainly through civil society organisations, inter alia in:

(i) promoting freedom of association and assembly,
unhindered movement of persons, freedom of opinion and expression, including
artistic and cultural expression, free press and independent pluralistic media,
both traditional and ICT based, internet freedom and measures to combat
administrative obstacles to the exercise of these freedoms, including the fight
against censorship;

(ii) strengthening the rule of law, promoting the
independence of the judiciary, encouraging and evaluating legal and
institutional reforms, and promoting access to justice;

(iii) promoting and strengthening the International
Criminal Court, ad hoc international criminal tribunals and the processes of
transitional justice and truth and reconciliation mechanisms;

(iv) supporting reforms to achieve effective and
transparent democratic accountability and oversight, including that of the
security and justice sectors, and encouraging measures against corruption;

(v) promoting political pluralism and democratic
political representation, and encouraging political participation by citizens,
in particular marginalised groups, in democratic reform processes at local,
regional and national level;

(vi) promoting the equal participation of men and
women in social, economic and political life, and supporting equality of
opportunity, and the participation and political representation of women;

(vii) supporting measures to facilitate the
peaceful conciliation of group interests, including support for
confidence-building measures relating to human rights and democratisation.

(b)
promotion and protection of human rights and
fundamental freedoms, as proclaimed in the Universal Declaration of Human Rights
and other international and regional instruments concerning civil, political,
economic, social and cultural rights, mainly through civil society
organisations, relating to inter alia:

(i) the abolition of the death penalty, prevention
of torture, ill-treatment and other cruel, inhuman and degrading treatment or
punishment and rehabilitation of victims of torture;

(ii) support for, protection of, and assistance to
human rights defenders, in terms of Article 1 of the UN Declaration on the
Right and Responsibility of Individuals, Groups and Organs of Society to
Promote and Protect Universally Recognized Human Rights and Fundamental
Freedoms;

(iii) the fight against racism and xenophobia and
discrimination based on any ground,including sex, race, colour, ethnic or
social origin, genetic features, language, religion or belief, political or any
other opinion, membership of a national minority, property, birth, disability,
age or sexual orientation;

(iv) promotion of freedom of thought, conscience
and religion or belief, including by measures to eliminate all forms of hatred,
intolerance and discrimination based on religion or belief and by fostering
tolerance and respect for religious and cultural diversity;

(v) the rights of indigenous peoples and the
rights of persons belonging to minorities and ethnic groups;

(vi) the rights of women as proclaimed in the
Convention on the Elimination of All Forms of Discrimination against Women and
its Optional Protocols, including measures to combat female genital mutilation,
forced marriages, crimes of honour, trafficking, and any other form of violence
against women;

(vii) the rights of the child, as proclaimed in
the Convention on the Rights of the Child and its Optional Protocols, including
the fight against child labour, child trafficking and child prostitution, and
the recruitment and use of child soldiers;

(viii) the rights of persons with disabilities;

(ix) economic, social and cultural rights and the
promotion of core labour standards and corporate social responsibility;

(x) education, training and monitoring in the area
of human rights and democracy, and in the area covered by point (vii);

(xi) support for local, regional, national or
international civil society organisations involved in the protection, promotion
or defence of human rights and in measures referred to in point (vii);

(c)
strengthening of the international framework for
the protection of human rights, justice, the rule of law and democracy, and for
the promotion of international humanitarian law, in particular by:

(i) providing support for international and
regional instruments concerning human rights, justice, the rule of law and
democracy;

(ii) fostering cooperation by civil society with
international and regional intergovernmental organisations, and supporting
civil society activities aimed at promoting and monitoring the implementation
of international and regional instruments concerning human rights, justice, the
rule of law and democracy;

(iii) training in and dissemination of
international humanitarian law and support to its enforcement;

(d)
building confidence in and enhancing the
reliability and transparency of democratic electoral processes, while
contributing to the efficiency and consistency of the whole electoral cycle, in
particular,

(i) through deployment of Union Election
Observation Missions;

ii) through other measures of monitoring electoral
processes;

(iii) by contributing to the development of the electoral
observation capacity of civil society organisations at regional and local levels,
and supporting their initiatives to enhance participation in, and the follow-up
to, the electoral process;

(iv) by supporting measures aimed at the
consistent integration of electoral processes into the democratic cycle and at
implementing recommendations made by Union Election Observation Missions;

2.           The promotion and protection
of gender equality, the rights of the child, rights of indigenous peoples,
rights of persons with disabilities, and principles such as empowerment,
participation, non-discrimination of vulnerable groups and accountability shall
be taken into account whenever relevant for all assistance measures referred to
in this Regulation.

3.           The assistance measures shall
be implemented in the territory of third countries or shall be directly related
to situations arising in third countries, or shall be directly related to
global or regional actions.

4.           The assistance measures shall
take into account the specific features of crisis or urgency situations and
countries or situations where there is a serious lack of fundamental freedoms,
where human security is most at risk or where human rights organisations and
defenders operate under the most difficult conditions.

Article 3
General Framework for programming and implementation

Union assistance under this Regulation shall
be implemented through the following measures and in accordance with the Common
Implementing Regulation:

(a)
Strategy Papers and revisions thereof as
appropriate;

(b)
Annual Action Programmes, individual measures and
support measures;

(c)
Special Measures.

Article 4
Strategy papers

1.           Strategy papers shall set out
the European Union's strategy for its assistance under this Regulation, based
on the Union's priorities, the international situation and the activities of
the main partners. They shall be consistent with the overall purpose,
objectives, scope, and principles of this Regulation.

2.           Strategy papers shall set out
the priority areas selected for financing by the Union during the period of
validity of this Regulation, the specific objectives, the expected results and
the performance indicators. They shall also give the indicative financial
allocation, both overall and per priority area; this may be given in the form
of a range, where appropriate.

3.           Strategy papers shall be approved
in accordance with the procedure laid down in Article 15 (3) of the Common
Implementing Regulation. When significant changes of circumstances and policy
so require, strategy papers shall be updated in accordance with the same procedure.

Article 5
Committee

The Commission shall be assisted by a
Democracy and Human Rights Committee, hereinafter referred to as "the
Committee". That Committee shall be a committee within the meaning of
Regulation (EU) No 182/2011.

Article 6
Financial reference amount

The financial envelope for the
implementation of this Regulation for the period 2014-2020 shall be
EUR 1 578 000 000 (current prices). Annual appropriations
shall be authorised by the budgetary authority within the limits of the
Financial Framework 2014 – 2020.

Article 7
European External Action Service

The 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 8
Entry into force

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

It shall apply from 1 January 2014.

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

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 establishing a financing instrument for the promotion of democracy and
human rights worldwide

1.2.        Policy
area(s) concerned in the ABM/ABB structure[11]

Title 19: External relations

Activity 19 04: European Instrument for Democracy and Human Rights
(EIDHR)

The title of this budget chapter corresponds to the current
structure of the financial instruments 2007-2013. It is proposed to keep the
same activity and title 19 04.

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[12]

x 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 instruments aims to support the following strategic
objectives as stated in the Commission's Communication "A budget for
Europe 2020 – Part II" of 29 June 2011 (COM/2011/500 – Budget for Europe
220 – part II. Policy Fiche "External Action", p. 43):

This
Regulation will have two objectives

1.
Enhancing the respect for and observance of human rights and fundamental
freedoms, as proclaimed in the Universal Declaration of Human Rights and other
international and regional instruments, as well as strengthening their protection,
promotion and monitoring, mainly through support to relevant civil society
organisations, human rights defenders and victims of repression and abuse

2.
Supporting and consolidating democratic reforms in third countries, by
enhancing participatory and representative democracy, strengthening the overall
democratic cycle, and improving the reliability of electoral processes, in
particular through election observation missions

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

The two above mentioned objectives will be
implemented, in practice, through various specific objectives.

Specific objective No.1

Deliver thematic campaigns, mixing
advocacy and field operations for great causes (e.g. international justice) and
addressing serious violations of rights (e.g. torture, death penalty,
discrimination, etc..), as well as providing core support to key actors and
related civic education.

Specific objective No.2

Deliver targeted support to the development of thriving civil
societies empowering it in its quest for and defence of democracy and human
rights and to their specific role as actors for positive change.

Specific objective No.3

Deliver a reinforced capacity for the EU to be
able to act in the most difficult environments, react quickly to human
rights urgencies and in support of Human Rights Defender in need of
protection.

Specific objective No.4

Deliver a strengthened and better integrated
approach to democratic cycles, through election observation and other
types of support to democratic and electoral processes.

1.4.3.     Expected result(s) and
impact

Specify the effects
which the proposal/initiative should have on the beneficiaries/groups targeted.

To support tangible results in the promotion and support of
democracy and human rights worldwide.

Timely launch of project, including fast reaction mechanism for
urgent cases of violation and human rights defenders.
Timely follow-up, addendum, payment and closing.

1.4.4.     Indicators of results and
impact

Specify
the indicators for monitoring implementation of the proposal/initiative.

The implementation of the two above mentioned
objectives, and the four specific objectives will be measured through inter
alia, the following indicators of results and impacts:

Number of campaigns launched, including number
of advocacies, and in particular how many positives changes obtained in third
countries laws and regulations regarding human rights clauses;

Number of international convention ratification,
and in particular how many conventions could enter into force in how many
countries as a result of our support.

Number of specific field operations, and in
particular how many weakened CSo and/or disenfranchised groups have been
supported that would have been left alone otherwise.

Number of citizens, professionals and students
trained and exposed to Human Rights and Democracy awareness and education,

Number of key actors supported, in particular
international organisation's actions, reports, case law and/or statement
directly linked to our support,

Number of civil society projects conducted, at
global and at local level, and their impact in terms of promotion, protection
and monitoring of Human Rights,

Number of Human Rights Defender cases, in
particular the number of individuals being protected politically, legally
and/or physically and pulled out of their position of abuses;

Number of projects in most difficult countries
and situations, and in particular the number of activities and actors reached
in these most difficult contexts;

Number of electoral processes and democratic
cycles supported, observed, and followed, in particular the number of EU EOMs
recommendations implemented in the field.

1.5.        Grounds for the
proposal/initiative

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

Section 1 of the Explanatory Memorandum outlines the policy requirements
that the instrument aims to meet within a context of evolving political
guidance. Taking into account the specific nature of promoting and supporting
democracy and human rights worldwide as well as responding to urgent human
Rights violations of protection of Human Rights Defenders, requirements will be
both short and long term.

1.5.2.     Added
value of EU involvement

On the background of its own accomplishments in
conflict solution, peace building and prosperity creation, the EU would seem to
be in an excellent position to deliver on external action, on behalf of and
with its Member States, generally enjoying high credibility in the countries
where it works in. It is well placed to take on the role of a global leader on
behalf of its citizens, in particular in its support and promotion of democracy
and human rights. Yet, European added value cannot be reduced to a balance
sheet: contributing to peace building worldwide, assisting the world's poorest
people and supporting democratisation and human rights respect are undisputable
demonstrations of how the EU adds value through its work every day. This is
precisely where the priorities of the next financial instruments on EU external
action will lie.

With 27 Member States acting within the
framework of common policies and strategies, the EU has the critical weight to
respond to global challenges, such as fostering the universality of human
rights for all people.

Due to its large scale the EU can deliver help
in the world's most remote areas, where most Member States have little
strategic interest, only limited presence and reduced capacity to act. Thanks
to EU action in, for example, Fiji, Vanuatu or Timor Leste where recently new
funding for stable democracy and sustainable development was provided, aid reaches
the people that need it most, but who otherwise would remain without it.

At a time of budgetary restrictions, when
several MS are compelled to exit entire sectors and countries, the EU continues
to be able to play an active role in promoting peace, democracy, solidarity,
stability, prosperity and poverty reduction in our immediate neighbourhood and
worldwide. In this context, it makes more sense than ever from a purely
economic perspective to invest money at EU level where a real difference can be
made. In fact, acting through the EU can actually save money for MS. Certain
aid effectiveness reforms, especially in terms of division of labour, could add
up to potential savings of between 3 and 6 billion a year, according to a
recent independent study (The Benefits of a European Approach, by HTSPE).

Working with the EU is also cheaper.
Administrative costs – estimated at 5.4% on the basis of 2009 data - are lower
than the average administrative costs of the principal donors for bilateral
aid. The administrative rules that apply are intended to make sure that EU
taxpayers' money is properly spent, using strict criteria which can be
monitored.

In addition, the European Commission is one of
the most transparent aid bodies in the world. Such transparency is in itself an
important tool to ensuring effective value for money. This has been recognised
by the organisation "Publish what you Fund" which ranked the European
Commission in 4th position (out of 30) in it is first Aid transparency
Assessment of donors in February this year. We are continuing to make further
improvements.

In a recent Green Paper consultation carried out
to find out views from stakeholders on our development policy, all those who
responded agreed on the positive role that the EU played in supporting good governance (including
participation of civil society), security, human rights and gender equality.

1.5.3.     Lessons learned from
similar experiences in the past

Reviews and evaluations underlined several
strengths

The EIDHR offers independence of action,
allowing working without the need for government consent, which
is a critical feature especially in the sensitive areas of democracy and human
rights. Thus, the instrument
supports democratic education at graduate level of future young Belarusian leaders
abroad or tries to mitigate unfair criminalization of democratic activists
imprisoned for being in the opposition. The defenders of the victims, such as
lawyers, have in turn to be defended (through the Human Right Defender system)
as they risk imprisonment for taking up the cases of pro-democracy activists or
rights defenders.

The EIDHR also offers more flexibility and
capacity to respond to changing circumstances, contrasting with the
long-term programming approach of the geographical programs. An immediate assistance was made available to
the reform committee in Tunisia to design the roadmap transition and help civil
society contribute to the process. The EIDHR will also provide democracy
training for political party activists, support free press and independent
pluralistic media, both traditional and ICT-based, including censorship-free
and undisrupted electronic communications technologies, watch dog the
democratic transition, and support civic education on democracy. The EIDHR
might also be available for strengthening the production capacities of media
and training of the journalists. In view of the upcoming elections in Tunisia,
it is providing training to thousands of local observers and fields the
envisaged EU Election Observation Mission.

The EIDHR also works in the most difficult
environments where basic rights and freedoms are most at risk. In order
to protect the physical safety of activists and others whose lives may be
seriously endangered, the details of such projects cannot be made public. The
European Commission reports on these projects to authorized persons in the
Council, the Parliament and the EEAS on a “need to know” basis and may only
commend the courage of such dedicated activists.

These difficult cases represent about 20 % of
EIDHR activities. Since 2007, the EIDHR supported more than 100 such projects
(€ 60 million worth). In particular, supported by its network of Human Rights
Defenders (HRD), the EIDHR backed 19 HRD projects (€ 13.5 million worth) in
more than 45 countries.

In those contexts, the EIDHR acts as a breath
of fresh air with most projects focusing on helping the survival of
weakened or shattered civil society and media, opening the door to dialogue and
change. It offers the chance for democratic education of students and
vulnerable groups, often based abroad. It helps the advocacy of civil society
and diasporas abroad. Sometimes it just simply tries to protect and, if needed,
to bring victims of antidemocratic repression out of the country into safety.

Further to the “Jasmine revolution”, it may now
be revealed that the EIDHR provided support in Tunisia in 2010, prior to the
transition, to activities of the Tunisian League of Human Rights (LTDH), the
Association of Democratic Women (AFTD), Trade Unions (UGTT), Judges’ and
Lawyers’ Associations and others. Lack of publicity for this support at the
time might have been interpreted as abandonment or as a lack of responsiveness,
but in fact the EIDHR was active on the ground.

Reviews and evaluations have also highlighted
three blocks of questions

First, broadly defined objectives and strategies
have caused some fragmentation of approaches and lack of legibility of the Instrument, creating risks of duplication, difficulties in
measuring the impact of the activities and a certain weakening of the
complementarity.

Second, while in the most difficult situations
the official project description has often been clouded in more traditional
development activities to protect the project from a hostile environment, the
additionality of EIDHR resources out of country consent bears also the risk of
being used for non-priority activities in terms of the
scope of the instrument. This has led to establishing qualitative supports.

Third, the necessity to increase the flexibility of the instrument
is recurrent. It is particularly true for the limited part of the instrument
addressing the toughest situations in terms of human rights violations and
urgency of cases, for which a system of open calls would seem inadequate

1.5.4.     Coherence
and possible synergy with other relevant instruments

As a consequence of this explicit Treaty mandate, promotion and
support of democracy and human rights is to be integrated and mainstreamed in
all EU policies.

The EIDHR is part of the architecture of different external action
financial instruments proposed jointly by the European Commission and the High
Representative for CFSP. It complements long term instruments by focussing on
CSO activities in the field of democracy and human rights, addressing the most
difficult situations, financing EU Election Observation Missions and supporting
local, regional and worldwide campaigns on key human rights issues. It is an
essential part of the wider external action toolbox to promote and safeguard
human rights respect. It also complements the toolbox of crisis management and
prevention alongside with humanitarian aid, CFSP operations and the Instrument
for Stability by providing rapid support in cases of urgent human rights
violations. It also acts as a link to relief, rehabilitation and development
activities by offering the possibility for providing physical and mental
rehabilitation and reinsertion to victim of abuses or assist human rights
defenders in urgent protection need.

It is essential to ensure on the ground, in a pragmatic manner, the
coordination with and a proper division of labour between the EIDHR and other
interacting instruments, in particular in the needs assessments phases of
cases. Indeed, the EIDHR complements ECHO's operations, as refugees and
beneficiaries of humanitarian relief are often victims of human rights
violations that need to be documented, registered and treated. Strong synergies
and mutual reinforcement exist with the Instrument for Stability (e.g. in case
of emergencies), the Non State Actor programme (e.g. support to CSOs), the Investing
in People Programme (e.g. gender and disenfranchised groups) and in the future
the new Neighbourhood Civil Society Facility.

1.6.        Duration and financial
impact

x Proposal/initiative of limited
duration

–
x Proposal/initiative in effect from 01/01/2014

–
     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[13]

x Centralised direct management by the Commission

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

–
x executive agencies

–
x bodies set up by the Communities[14]

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

–
x 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

x Shared management with the Member States

x Decentralised management with third countries

x Joint management with international organisations (to be specified)

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

Comments

The
specific nature of the instrument to address sensitive and complex cases of
Human Rights and Democracy, in particular in the most difficult countries and
situations as well urgent protection needs, requires it benefit from a maximum
range of management modes.

2.           MANAGEMENT MEASURES

2.1.        Monitoring and reporting
rules

Specify frequency
and conditions.

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.

First, 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 of a
specific instrument. These evaluations are an important input to the
formulation of policies and the design of instruments and projects. These
evaluations 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 operations to be conducted under this instrument is
characterised by the following risks to achieving the objectives of this
Instrument:

–
The targeted difficult environments in which the
instrument operates in particular in most difficult countries/situations, may
create physical and political constraints on delivering projects

–
Dispersed and small projects world wide may
create resource challenges in implementation and monitoring,

–
The large variety of beneficiaries with various
management and control structures and often poor capacity may create lead to
difficulty and delays in the implementation,

–
The limited quality and quantity, and often
controversial nature, of data on the evolution of democracy and human rights in
various third countries may hinder the Commission's capacity to report and be
accountable for results,

–
A lack of administrative credits may laid to
insufficient resources to properly manage the instrument.

2.2.2.     Control
method(s) envisaged

Commission
internal control 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 the compliance with
the relevant legislative, financial and procedural framework.

The
Commission applies wide Strategic Policy and Planning Process, internal and
external audit and other Commission's Internal Controls Standards. The Commission
will continue to use its current accounting system (ABAC) as well as external
aid specific tool such as the Common Relex Information System (CRIS). It will
pursue the highest standards of accounting an d financial reporting to ensure a
continued unqualified opinion from its external auditors (Court of Auditors).

In
addition, in order to achieve upmost effectiveness and efficiency, the
Commission uses a tailor made approach which includes:

–
- a devolved management of a sound part of its
aid by EU delegation in the field

–
- clear lines of financial accountability via
sub-delegations of Authorising Authorities in HQ and in the delegations,

–
- regular reporting, including annual Statement
of Assurance by the Head of Delegation,

–
- substantial training programme both at HQ and
in Delegation

–
- significant support and guidance,

–
- regular verifications,

–
- a Project Cycle Management methodology, and a
quality support to each of its components,

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

2.3.        Measures
to prevent fraud and irregularities

Given the
high risk environment in which EuropeAid/FPI operate, their 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 EuropeAid/FPI's 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. EuropeAid/FPI's
compliance framework is made up inter alia of the following significant
components:

Preventative measures

–
Compulsory core training covering fraud issues
for aid management staff and auditors;

–
Provision of guidance (including via internet)
including the Practical Guide to Contracts, the EuropeAid Companion and the
Financial Management Toolkit (for implementing partners);

–
Ex-ante assessment to ensure that appropriate
anti-fraud measures to prevent and detect fraud in the management of EU funds
are in place in the authorities managing the relevant funds under joint and
decentralised management);

–
Ex-ante screening of the anti-fraud mechanisms
available in the partner country as part of the assessment of the eligibility
criterion of public finance management for receiving budget support (i.e.
active commitment to fight fraud and corruption, adequate inspection
authorities, sufficient judicial capacity and efficient response and sanction
mechanisms);

–
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.

–
The Commission implements since 14 October 2011
the first phase of the IATI standard for publishing aid information transparency
before the next High Level Forum on aid effectiveness in Busan in November
2011. In addition, the Commission will work in cooperation with the EU Member
States on a joint web-based IT application called TR-AID which transforms the
EU aid data provided through the IATI and other sources into user-friendly aid
information.

Detective and corrective measures

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

–
Retrospective checks (on a risk basis) and
recoveries;

–
Suspension of EU funding where there is a
serious fraud case, including large scale corruption, until the authorities
have taken appropriate action with a view to correcting and preventing such
fraud in the future

EuropeAid/FPI will further devise their anti-fraud strategy in line
with the Commission's new anti-fraud strategy (CAFS) adopted on 24 June 2011 in
order to ensure inter alia that:

–
EuropeAid/FPI's internal anti-fraud related
controls are fully aligned with the CAFS;

–
EuropeAid/FPI's 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

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 risksinvolved 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: || Diff./non-diff ([15]) || from EFTA[16] countries || from candidate countries[17] || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

IV || 19 04: European Instrument for Democracy and Human Rights 19 04 01 European Instrument for Democracy and Human Rights (EIDHR) 19 04 03 Electoral observation 19 04 05 Completion of former cooperation 19 04 06 Pilot project- Civil Society Forum EU-Russia 19 04 07 Pilot Project - Funding for victims of torture || N/A. || NO || NO || NO || NO

· New budget lines requested

In
order
of multiannual financial framework headings and budget lines.

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

Number 19 04 || Diff./non-diff. || from EFTA countries || from candidate countries || from third countries || within the meaning of Article 18(1)(aa) of the Financial Regulation

IV || 19 04: European Instrument for Democracy and Human Rights 19 04 01 European Instrument for Democracy and Human Rights (EIDHR without EU EOM) 19 04 02 EU Election Observation Missions (EU EOMs) 19 04 03 Completion of former cooperation || N/A || 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: || 4 || "Global Europe"

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

Ÿ Operational appropriations || || || || || || || ||

19 04 || Commitments || (1) ||               198,63  ||                  202,84  ||                     207,04  ||                  211,34  ||                  213,93  ||                                    220,24  ||                     224,84  ||                                               1.478,87

Payments || (2) ||                  178,43  ||                  182,24  ||                     186,04  ||                  189,94  ||                  192,03  ||                                    197,94  ||                     202,14  ||                                               1.328,77

Appropriations of an administrative nature financed from the envelope for specific programmes[18] Number of budget line 19.0104 03 || || || || || || || || || ||

|| (3) ||                    13,57  ||                    13,66  ||                       13,76  ||                    13,86  ||                    15,77  ||                                      14,06  ||                       14,16  ||                                                    98,83

TOTAL appropriations for DG DEVCO/FPI || Commitments || =1+1a +3 ||                  212,20  ||                  216,50  ||                     220,80  ||                  225,20  ||                  229,70  ||                                    234,30  ||                     239,00  ||                                             1.577,70

|| Payments || =2 +3 ||                  192,00  ||                  195,90  ||                     199,80  ||                  203,80  ||                  207,80  ||                                    212,00  ||                     216,30  ||                                             1.427,60

Ÿ TOTAL operational appropriations || Commitments || (4) ||               198,63  ||                  202,84  ||                     207,04  ||                  211,34  ||                  213,93  ||                                    220,24  ||                     224,84  ||                                               1.478,87

Payments || (5) ||                  178,43  ||                  182,24  ||                     186,04  ||                  189,94  ||                  192,03  ||                                    197,94  ||                     202,14  ||                                               1.328,77

Ÿ TOTAL appropriations of an administrative nature financed from the envelope for specific programmes || (6) ||                    13,57  ||                    13,66  ||                       13,76  ||                    13,86  ||                    15,77  ||                                      14,06  ||                       14,16  ||                                                    98,83

TOTAL appropriations under HEADING <4> of the multiannual financial framework || Commitments || =4+ 6 ||                  212,20  ||                  216,50  ||                     220,80  ||                  225,20  ||                  229,70  ||                                    234,30  ||                     239,00  ||                                             1.577,70

Payments || =5+ 6 ||                  192,00  ||                  195,90  ||                     199,80  ||                  203,80  ||                  207,80  ||                                    212,00  ||                     216,30  ||                                             1.427,60

EUR million (to 3 decimal places)

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

EUR million (to 3 decimal places)

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

DG: DEVCO / FPI ||

Ÿ Human resources ||                     7,168  ||                    7,096  ||                    7,024  ||                       6,953  ||                    6,953  ||                    6,953  ||                                      6,953  ||                     49,100

Ÿ Other administrative expenditure ||                     0,595  ||                    0,547  ||                    0,541  ||                       0,540  ||                    0,541  ||                    0,541  ||                                      0,541  ||                       3,846

TOTAL DG DEVCO / FPI || Appropriations ||                     7,763  ||                    7,643  ||                    7,565  ||                       7,493  ||                    7,494  ||                    7,494  ||                                      7,494  ||                     52,945

TOTAL appropriations under HEADING 5 of the multiannual financial framework || (Total commitments = Total payments) ||                     7,763  ||                    7,643  ||                    7,565  ||                       7,493  ||                    7,494  ||                    7,494  ||                                      7,494  ||                     52,945

EUR million (to 3 decimal places)

|| || || Year N 2014 || Year N+1 2015 || Year N+2 2016 || Year N+3 2017 || Year N+4 2018 || Year N+5 2019 || Year N+6 2020 || TOTAL

TOTAL appropriations under HEADINGS 1 to 5 of the multiannual financial framework || Commitments ||                 219,963  ||                224,143  ||                228,365  ||                   232,693  ||                237,194  ||                241,794  ||                                  246,494  ||                1.630,645

Payments ||                 199,763  ||                203,543  ||                207,365  ||                   211,293  ||                215,294  ||                219,494  ||                                  223,794  ||                1.480,545

3.2.2.     Estimated
impact on operational appropriations

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

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

OUTPUTS

Type of output[19] || Average cost of the output || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Number of outputs || Cost || Total number of outputs || Total cost

SPECIFIC OBJECTIVE No 1[20] Thematic campaigns (i.e. torture, death penalty etc..) || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°1 || 78-88 || 43-53 || 78-88 || 43-53 || 78-88 || 43-53 || 78-88 || 43-53 || 78-88 || 43-53 || 78-88 || 43-53 || 78-88 || 43-53 || 546-616 || 20-25 %

SPECIFIC OBJECTIVE No 2 Development of thriving civil societies || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°2 || 340-390 || 76 || 340-390 || 76 || 340-390 || 76 || 340-390 || 76 || 340-390 || 76 || 340-390 || 76 || 340-390 || 76 || 2380- 2730 || 35-40 %

SPECIFIC OBJECTIVE No 3 Human Rights urgencies and most difficult situations || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°3 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 52-76 || 22,2-33,2 || 294-371 || 20-25 %

SPECIFIC OBJECTIVE No 4 Support to democratic cycles || || || || || || || || || || || || || || || ||

Sub-total for specific objective N°4 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 47-86 || 46,4-76,6 || 329-602 || 25-30 %

Of which Election Observations Mission (EOMs) || 11-14 || 44-55 || 11-14 || 44-55 || 11-14 || 44-55 || 11-14 || 44-55 || 11-14 || 44-55 || 11-14 || 44-55 || 11-14 || 44-55 || 77-98 || 20-25 %

TOTAL COST || 506-640 ||               198,63 || 506-640 || 202,84  || 506-640 || 207,04  || 506-640 || 211,34  || 506-640 || 213,93  || 506-640 || 220,24  || 506-640 || 224,84 || 3542-4480 || 1.478,87

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

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

EUR million (to 3 decimal places)

|| Year N [21] 2014 || Year N+1 2015 || Year N+2 2016 || Year N+3 2107 || Year N+4 2018 || Year N+5 2019 || Year N+6 2020 || TOTAL ||

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

Human resources ||                        7,17  ||                       7,10  ||                       7,02  ||                      6,95  ||                      6,95  ||                         6,95  ||                      6,95  ||                    49,10  ||

Other administrative expenditure ||                      0,595  ||                     0,547  ||                     0,541  ||                    0,540  ||                    0,541  ||                       0,541  ||                    0,541  ||                    3,846  ||

Subtotal HEADING 5 of the multiannual financial framework ||                      7,763  ||                     7,643  ||                     7,565  ||                    7,493  ||                    7,494  ||                       7,494  ||                    7,494  ||                  52,945  ||

Outside HEADING 5[22] of the multiannual financial framework || || || || || || || || ||

Human resources ||                        8,81  ||                       8,81  ||                       8,81  ||                      8,81  ||                      8,81  ||                         8,81  ||                      8,81  ||                    61,67  ||

Other expenditure of an administrative nature ||                        4,76  ||                       4,85  ||                       4,95  ||                      5,05  ||                      6,96  ||                         5,25  ||                      5,35  || 37,16  ||

Subtotal outside HEADING 5 of the multiannual financial framework ||                      13,57  ||                     13,66  ||                     13,76  ||                    13,86  ||                    15,77  ||                       14,06  ||                    14,16  || 98,83  ||

TOTAL ||            21,333  ||           21,306  ||           21,324  ||          21,349  ||          23,264  ||             21,551  ||          21,654  ||         151,780

3.2.3.2.  Estimated requirements of
human resources

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

–
x 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) ||                      35,1  ||                      34,8  ||                         34,4  ||                      34,1  ||                      34,1  ||                                        34,1  ||                         34,1

XX 01 01 02 (Delegations) ||                        9,8  ||                        9,7  ||                           9,6  ||                        9,5  ||                        9,5  ||                                          9,5  ||                           9,5

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") || 5,2 || 5,2 || 5,1 || 5,1 || 5,1 || 5,1 || 5,1

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

XX 01 04 yy [24] || - at Headquarters[25] || 34,7  || 34,1  || 33,4  || 32,7  || 32,1  || 31,5  || 30,9

- in delegations || 73,4 || 73,4 || 73,4 || 73,4 || 73,4 || 73,4 || 73,4

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

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

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

TOTAL || 158,3  || 157,1  || 155,9  || 154,8  || 154,1  || 153,5  || 152,9

For 2014, human
resources under Heading 5 are split as follows between DEVCO and FPI:

- Establishment
plan: 5,5 FTE for FPI and 39,4 FTE for DEVCO (Total = 44,9 FTE)

- External
personal: 3,2 FTE for FPI and 2 FTE for DEVCO (Total : 5,2 FTE)

As regards human
resources under Heading 4 (BA line of the EIDHR programme), the staff that will
be financed by the BA line in 2014 amounts to 102,1 CA for Devco (28,7 at
Headquarters and 73,4 CA in Delegations) and 6 CA for FPI in Headquarters

XX 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 || Financial and Operational decisions and implementation.

External personnel || Technical implementation

3.2.4.     Compatibility with the
current multiannual financial framework

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

–
x 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[26].

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

3.2.5.     Third-party contributions

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

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

3.3.        Estimated impact on revenue

–
 ̈  Proposal/initiative has no financial impact on revenue.

–
x Proposal/initiative has the following financial impact:

–
x        on own resources

–
 ̈         on miscellaneous revenue

[1]               Regulation (EC) No 1889/2006
of the European Parliament and of the Council of 20 December 2006 on
establishing a financing instrument for the promotion of democracy and human
rights worldwide - OJEU L 386/1- Whereas (8).

[2]               Council Conclusions on Democracy Support in the EU’s
External Relations – Towards Increased Coherence and Effectiveness, 16081/09.

[3]               Council
conclusions on Democracy Support in the EU's External Relations - 2010 Progress
Report and list of proposed pilot countries, 3058th FOREIGN AFFAIRS Council meeting Brussels, 13
December 2010.

[4]               Commission
Communication of 25 January 2006.

[5]               Council decision 2010/427/EU
of 26 July 2010.

[6]               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

[7]               OJ C , , p. .

[8]               OJ C , , p. .

[9]               OJ L 386, 29.12.2006, p. 1–11

[10]             OJ...

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

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

[13]             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

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

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

[16]             EFTA: European Free Trade Association.

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

[18]             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.

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

[20]             As described in Section 1.4.2. "Specific
objective(s)..."

[21]             Year N is the year in which implementation of the
proposal/initiative starts.

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

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