P8_TC1-COD(2018)0243

Position of the European Parliament adopted at first reading on 27 March 2019 with a view to the adoption of Regulation (EU) …/… of the European Parliament and of the Council establishing the Neighbourhood, Development and International Cooperation Instrument

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 209, 212 and 322(1) thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the Court of Auditors (1),

Having regard to the opinion of the European Economic and Social Committee (2),

Having regard to the opinion of the Committee of the Regions (3),

Acting in accordance with the ordinary legislative procedure (4),

Whereas:

(1) The general objective of the Programme ‘Neighbourhood, Development and International Cooperation Instrument’ (the ‘Instrument’) should be to uphold and promote provide the financial framework to support the upholding and promotion of the Union’s values, and principles and fundamental interests worldwide in order to pursue accordance with the objectives and principles of the Union’s external action, as laid down in Article 3(5), Articles 8 and 21 of the Treaty on European Union (TEU). [Am. 1]

(2) In accordance with Article 21 TEU, the Union shall pursue consistency between the different areas of its external action and between these and its other policies, as well as it shall work for a high degree of cooperation in all fields of international relations. The wide array of actions enabled by this Regulation should contribute to the objectives set out in that Article of the TEU.

(2a) In accordance with Article 21 TEU, the application of this Regulation is to be guided by the principles of the Union’s external action, namely democracy, the rule of law, the universality and indivisibility of human rights and fundamental freedoms, respect for human dignity, equality and solidarity, and respect for the principles of the United Nations Charter and international law. This Regulation is intended to contribute to achieving the objectives of the Union’s external action, including the Union’s policies relating to human rights and the objectives outlined in the EU Strategic Framework and Action Plan on Human Rights and Democracy. Union action should favour adherence to the Universal Declaration on Human Rights. [Am. 2]

(3) In accordance with Article 8 TEU, the Union shall develop a special relationship with neighbouring countries, aiming to establish an area of prosperity and good neighbourliness, founded on the values of the Union and characterised by close and peaceful relations based on cooperation. This Regulation should contribute to such objective.

(3a) In accordance with Article 167 of the Treaty on the Functioning of the European Union (TFEU), The Union and the Member States should foster cooperation with third countries and the competent international organisations in the sphere of culture. This Regulation should contribute to the objectives set out in that Article. [Am. 3]

(4) The primary objective of Union’s development cooperation policy, as laid down in Article 208 TFEU is the reduction and, in the long term, the eradication of poverty. The Union’s development cooperation policy also contributes to the objectives of the Union’s external action, in particular to foster the sustainable economic, social and environmental development of developing countries, with the primary aim of eradicating poverty, as set out in Article 21(2)(d) of the Treaty on European Union TEU, and to preserve lasting peace, prevent conflicts and strengthen international security, as set out in point (c) of Article 21(2) TEU . [Am. 4]

(5) The Union shall ensure policy coherence for development as required by Article 208 TFEU. The Union should take account of the objectives of development cooperation in the policies that are likely to affect developing countries, which will be a crucial element of the strategy to achieve the Sustainable Development Goals defined in the 2030 Agenda for Sustainable Development (‘2030 Agenda’) adopted by the United Nations in September 2015 (5). Ensuring policy coherence for sustainable development, as embedded in the 2030 Agenda, requires taking into account the impact of all policies on sustainable development at all levels — nationally, within the Union, in other countries and at global level. Union and Member States development cooperation policies should complement and reinforce each other. [Am. 5]

(6) This Instrument provides for actions in support of those objectives and of the external action policies and builds on the actions previously supported under Regulation (EU) No 233/2014 (6); the 11th European Development Fund (EDF)'s Internal Agreement (7) and Implementing Regulation (8); Regulation (EU) No 232/2014 (9); Regulation (EU) No 230/2014 (10); Regulation (EU) No 235/2014 (11); Regulation (EU) No 234/2014 (12); Regulation (Euratom) No 237/2014 (13); Regulation (EU) No 236/2014 (14); Decision No 466/2014/EU; Regulation (EC, Euratom) No 480/2009 (15) and Regulation (EU) 2017/1601 (16).

(7) The global context for action is the pursuit of a rules-based rules-and values-based global order, with multilateralism as its key principle and the United Nations at its core. The 2030 Agenda, together with the Paris Agreement on Climate Change (17) (‘the Paris Agreement’) and the Addis Ababa Action Agenda (18) is the international community’s response to global challenges and trends in relation to sustainable development. With the Sustainable Development Goals at its core, the 2030 Agenda is a transformative framework to eradicate poverty, and achieve sustainable development globally and promote peaceful, just and inclusive societies, while tackling climate change and working to preserve oceans and forests . It is universal in scope, providing a comprehensive shared framework for action that applies to the Union, to its Member States and to its partners. It balances the economic, social , cultural, educational and environmental dimensions of sustainable development, recognising the essential interlinkages between its goals and targets. The 2030 Agenda aims to leave no one behind and seeks to reach the furthest behind first . The implementation of the 2030 Agenda will be closely coordinated with the Union's other relevant international commitments. Actions undertaken by this Regulation should pay be guided by the principles and objectives set out in the 2030 Agenda, the Paris Agreement and the Addis Ababa Action Agenda and should contribute to achieving the Sustainable Development Goals, paying particular attention to interlinkages between Sustainable Development Goals them and to integrated actions that can create co-benefits and meet multiple objectives in a coherent way without undermining other objectives . [Am. 6]

(8) The implementation application of this Regulation should be guided by based on the five priorities established in the Global Strategy for the European Union’s Foreign and Security Policy (the ‘Global Strategy’) (19), presented on 19 June 2016, which represents the Union's vision and the framework for united and responsible external engagement in partnership with others, to advance its values and interests. The Union should enhance partnerships, promote policy dialogue and collective responses to challenges of global concern. Its action should support the Union’s fundamental interests , principles and values in all its aspects, including promoting democracy and human rights, contributing to the eradication of poverty, preserving peace, preventing conflicts conflict prevention, mediation and post-conflict reconstruction including women at all stages, ensuring nuclear safety , strengthening international security, fighting addressing root causes of irregular migration and forced displacement and assisting populations, countries and regions confronting confronted with natural or man-made disasters, bringing about the conditions to create an international legal framework for the protection of persons displaced due to climate change, fostering inclusive quality education, supporting a fair, sustainable and rules- and value-based trade policy as a tool for development and to bring improvements to the rule of law and human rights , economic and cultural diplomacy and economic cooperation, promoting innovation, digital solutions and technologies, protecting cultural heritage especially in conflict areas, addressing global public health threats and fostering the international dimension of Union’s policies. In promoting its fundamental interests , principles and values , the Union should comply with, and promote, the principles of respect for high social , labour and environmental standards including with regard to climate change , for the rule of law, for international law, and for including in respect of humanitarian and international human rights law . [Am. 7]

(9) The new application of this Regulation should also be based on the European Consensus on Development (‘the Consensus’) (20), signed on 7 June 2017, which provides the framework for a common approach to development cooperation by the Union and its Member States to implement the 2030 Agenda and the Addis Ababa Action Agenda. Eradicating poverty, tackling discrimination and inequalities, leaving no one behind , protecting the environment and fighting climate change, and strengthening resilience are at the heart of development cooperation policy should underpin the application of this Regulation . [Am. 8]

(9a) In addition to the UN 2030 Agenda, the Paris Agreement on Climate Change the Addis Ababa Action Agenda, the EU Global Strategy, and the European Consensus on Development and the European Neighbourhood Policy, which constitute the primary policy framework, the following documents and their future revisions should also guide the application of this Regulation: — the EU Strategic Framework and Action Plan on Human Rights and Democracy; — the EU Human Rights guidelines; — the EU Integrated Approach to External Conflicts and Crises and the EU's comprehensive approach to external conflicts and crises of 2013; — the Comprehensive approach to the EU implementation of the United Nations Security Council Resolutions 1325 and 1820 on women, peace and security; — the Union Programme for the Prevention of Violent Conflicts; — the Council conclusions of 20 June 2011 on conflict prevention; — the Concept on Strengthening EU Mediation and Dialogue Capacities; — the EU-wide Strategic Framework to support Security Sector Reform (SSR); — the EU strategy against illicit firearms, small arms and light weapons (SALW) and their ammunition; — the EU Concept for Support to Disarmament, Demobilisation and Reintegration (DDR); — the Council conclusions of 19 November 2007 on a EU response to situations of fragility and the conclusions of the Council and the Representatives of the Governments of the Member States meeting within the Council, also dated 19 November 2007, on security and development; — the European Council Declaration of 25 March 2004 on Combating Terrorism, the European Union Counter-Terrorism Strategy, of 30 November 2005 and the Council conclusions of 23 May 2011 on enhancing the links between internal and external aspects of counter-terrorism; — the OECD guidelines for multinational enterprises; — the UN guiding principles on business and human rights; — the UN New Urban Agenda; — the UN Convention on the Rights of Persons with Disabilities; — the Refugee Convention; — the Convention on the Elimination of All Forms of Discrimination against Women, — the outcomes of the Beijing Platform for Action and the Programme of Action of the International Conference on Population and Development (ICPD); — the UNCTAD Roadmap towards Sustainable Sovereign Debt Workouts (April 2015); — the Guiding Principles on Foreign Debt and Human Rights drawn up by the Office of the UN High Commissioner for Human Rights; — the Global Compact on Refugees; — the Global Compact on Safe, Orderly and Regular Migration, adopted in Marrakech on December 10th 2018; — the United Nations Convention on the Rights of the Child. [Am. 9]

(10) In order to implement the new international framework established by the 2030 Agenda, the Global Strategy and the Consensus, this Regulation should aim at increasing the coherence and ensuring the effectiveness of the Union's external action by concentrating its efforts through a streamlined instrument to improve the implementation of the different external action policies.

(11) In accordance with the Global Strategy and the Sendai Framework for Disaster Risk Reduction (2015-2030) as adopted on 18 March 2015 (21), recognition should be given to the need to move away from crisis response and containment to a more structural, preventive long-term approach that more effectively addresses situations of fragility, natural and man-made disasters, and protracted crises. Greater emphasis and collective approaches are required on risk reduction, prevention, mitigation and preparedness; and further efforts are required to enhance swift response and a durable recovery. This Regulation should therefore contribute to strengthening resilience and linking humanitarian aid and development action particularly through rapid response actions as well as relevant geographic and thematic programmes, while ensuring the appropriate predictability, transparency and accountability, as well as coherence, consistency and complementarity with humanitarian aid and full compliance with international humanitarian law and without hindering the delivery of humanitarian aid according to the principles of humanity, neutrality, impartiality and independence in emergency and post-emergency contexts . [Am. 10]

(12) In line with the international commitments of the Union on development effectiveness as adopted in Busan in 2011 and renewed at the Nairobi High Level Forum in 2016 and recalled in the Consensus, the Union’s Union, in the context of its official development cooperation assistance and across all aid modalities, should apply the development effectiveness principles, namely ownership of development priorities by developing countries, a focus on results, inclusive development partnerships as well as mutual transparency and accountability , in addition to the principles of alignment and harmonisation . [Am. 11]

(13) Pursuant to the Sustainable Development Goals, this Regulation should contribute to reinforced monitoring and reporting with a focus on results, covering outputs, outcomes and impacts in partner countries benefiting from the Union's external financial assistance. In particular, as agreed in the Consensus, actions under this Regulation are expected to should contribute at least 20 % of the Official Development Assistance funded under this Regulation to social inclusion and human development, including with a focus on basic social services, such as health, education, nutrition, water, sanitation and hygiene, and social protection, particularly to the most marginalised, taking into account gender equality, and women's empowerment and children’s rights as horizontal issues . [Am. 12]

(14) Whenever possible and appropriate, In order to improve effective accountability and transparency of the Union budget , the Commission should set up clear monitoring and evaluation mechanisms to ensure effective assessment of progress towards the achievement of this Regulation’s objectives. The results of the Union's external action should be monitored and assessed on the basis of pre-defined, transparent, country-specific and measurable indicators, adapted to the specificities and objectives of the Instrument and preferably based on the results framework of the partner country. The Commission should regularly monitor its actions and review progress, making the results publicly available, in particular in the form of an annual report to the European Parliament and the Council. [Am. 13]

(15) This Regulation should contribute to the collective Union objective of providing 0,7 % of Gross National Income as Official Development Assistance within the timeframe of the 2030 Agenda. That commitment should be based on a clear roadmap for the Union and its Member States to set out deadlines and modalities for its achievement. In that regard, at least 92 % 95 % of the funding under this Regulation should contribute to actions designed in such a way that they fulfil the criteria for Official Development Assistance as established by the Development Assistance Committee of the Organisation for Economic Cooperation and Development. [Am. 14]

(16) In order to ensure resources are provided to where the need is greatest, especially to the Least Developed Countries and the countries in situation of fragility and conflict, this Regulation should contribute to the collective target of reaching 0,20 % of the Union Gross National Income towards Least Developed Countries within the timeframe of the 2030 Agenda. This commitment should be based on a clear roadmap for the EU and its Member States to set out deadlines and modalities for its achievement. [Am. 15]

(16a) In line with existing commitments in the EU Gender Action Plan II, at least 85 % of Official Development Assistance funded programmes, geographic and thematic, should have gender equality as a principal or a significant objective, as defined by the OECD DAC. A mandatory review of the spending should ensure that a significant part of these programmes have gender equality and women’s and girls’ rights and empowerment as a principal objective. [Am. 16]

(16b) This regulation should give particular attention to children and youth as contributors to the realisation of Agenda 2030. The Union's external action under this Regulation should give particular attention to their needs and empowerment and will contribute to the realisation of their potential as key agents of change by investing in human development and social inclusion. [Am. 17]

(16c) The inhabitants of the countries of Sub-Saharan Africa are mainly adolescents and young people. Each country should decide on its demographic policy. However, the demographic dynamic should be tackled in a global way in order to ensure that current and future generations will be able to achieve their full potential in a sustainable way. [Am. 18]

(17) This Regulation should reflect the need to focus on strategic priorities, both geographically — the European Neighbourhood and Africa, as well as countries that are fragile and most in need, particularly Least Developed Countries, but also thematically — sustainable development, poverty eradication, democracy and human rights, the rule of law, good governance, security, safe, orderly and regular migration, the reduction of inequalities, gender equality, addressing environmental degradation and climate change and human rights global public health threats . [Am. 19]

(17a) This Regulation should contribute to creating State and societal resilience in the area of global public health by addressing global public health threats, strengthening health systems, achieving universal health coverage, preventing and combatting communicable diseases and helping to secure affordable medicines and vaccines for all. [Am. 20]

(18) The special relationship developed with the Union’s neighbouring countries, in accordance with Article 8 TEU, should be preserved and enhanced through the application of this Regulation . This Regulation should contribute to reinforcing States’ and societies’ resilience in the Union’s neighbourhood, following the engagement taken in the Global Strategy. It should support the implementation of the European Neighbourhood Policy, as reviewed in 2015, and the implementation of regional cooperation frameworks, such as cross-border cooperation and the external aspects of relevant macro-regional and sea basin strategies and policies in the eastern and southern neighbourhood, including the Northern Dimension and the Black Sea regional cooperation . Those initiatives offer supplementary political frameworks for deepening relations with and among partner countries, based on the principles of mutual accountability, shared ownership and responsibility. [Am. 21]

(19) The European Neighbourhood Policy, as reviewed in 2015 (22), aims at the deepening of democracy, promotion of human rights and upholding of the rule of law, the stabilisation of neighbouring countries and strengthening resilience, particularly by boosting promoting political, economic development and social reforms , as the Union's main political priorities. In order to attain its objective, the implementation of the reviewed European Neighbourhood Policy has been focusing on four through this Regulation should focus on the following priority areas: good governance, democracy, the rule of law and human rights, with a particular focus in engaging further with civil society; economic socio-economic development , including the fight against youth unemployment, as well as education and environmental sustainability ; security; migration and mobility, including tackling the root causes of irregular migration and forced displacement and supporting populations, countries and regions confronted with enhanced migratory pressure. This Regulation should support the implementation of the Union’s association agreements and deep and comprehensive free trade agreements with countries in the neighbourhood . Differentiation and enhanced mutual ownership are the hallmark of the European Neighbourhood Policy, recognising different levels of engagement, and reflecting the interests of each country concerning the nature and focus of its partnership with the Union. The performance-based approach is one of the key tenets of the European Neighbourhood Policy. In the case of a serious or persistent degradation of democracy in one of the partner countries, support should be suspended. Neighbourhood funding is a key lever in addressing common challenges, such as irregular migration and climate change, as well as in spreading prosperity, security and stability through economic development and better governance. The visibility of Union assistance in the neighbourhood area should be enhanced. [Am. 22]

(20) This Regulation should support the implementation of a modernised association agreement with countries of the Africa, Caribbean and Pacific (ACP) Group of States and allow the EU and its ACP partners to develop further strong alliances on key and shared global challenges. In particular, this Regulation should support the continuation of the established cooperation between the Union and the African Union in line with the Joint Africa-EU Strategy , including the engagement from Africa and the Union to promote children’s rights as well as the empowerment of Europe’s and Africa’s youth, and build on the future EU-ACP agreement after 2020, including through a continental approach towards Africa , and a mutually beneficial partnership of equals between the EU and Africa . [Am. 23]

(20a) This Regulation should also contribute to the trade-related aspects of the Union's external relations, such as cooperation with third countries on supply chain due diligence for tin, tantalum and gold, the Kimberley Process, the Sustainability Compact, the implementation of commitments under Regulation (EU) No 978/2012 of the European Parliament and the Council (23) (GSP Regulation), cooperation under the Forest Law Enforcement, Governance and Trade (FLEGT) and Aid for Trade initiatives in order to ensure consistency and mutual support between Union trade policy and development goals and actions. [Am. 24]

(21) The Union should seek the most efficient use of available resources in order to optimise the impact of its external action. That should be achieved through coherence , consistency and complementarity among the Union's external financing instruments, notably the Instrument for Pre-Accession III (24), the Humanitarian Aid Instrument (25), the Decision on Overseas Countries and Territories (26), the European Instrument for Nuclear Safety to complement the Neighbourhood, Development and International Cooperation Instrument on the basis of the Euratom Treaty (27), the common foreign and security policy and the newly proposed European Peace Facility (28) which is financed outside the Union budget, as well as the creation of synergies with other Union policies and Programmes , including Trust Funds as well as policies and programmes of the EU Member States . This includes coherence and complementarity with macro-financial assistance, where relevant. In order to maximise the impact of combined interventions to achieve a common objective, this Regulation should allow for the combination of funding with other Union Programmes, as long as the contributions do not cover the same costs. [Am. 25]

(22) Funding from this Regulation should be used to finance actions under the international dimension of Erasmus and Creative Europe , the implementation of which should be done according to Regulation (EU) …/… of the European Parliament and of the Council (‘the Erasmus Regulation’) (29) and Regulation (EU) …/… of the European Parliament and of the Council (‘the Creative Europe Regulation’) (30). [Am. 26]

(22a) The international dimension of the Erasmus Plus Programme should be boosted aiming at increasing opportunities for mobility and cooperation for individuals and organisations from less developed countries of the world — supporting capacity-building in third countries, skills’ development, people-to-people exchanges, while offering a greater number of opportunities for cooperation and mobility with developed and emerging countries. [Am. 27]

(22b) Considering the relevance of addressing education and culture in line with the 2030 Agenda for Sustainable Development and the EU strategy for international cultural relations, this Regulation should contribute to ensure inclusive and equitable quality education, promote life-long learning opportunities for all, foster international cultural relations, and recognise the role of culture in promoting European values through dedicated and targeted actions designed to have a clear impact on the Union’s role on the global scene. [Am. 28]

(23) The main approach for actions financed under this Regulation should be through geographic programmes, in order to maximise the impact of the Union's assistance and bring Union's action closer to partner countries and populations, .This general approach while supporting thematic priorities such as human rights, civil society and sustainability. The objectives under the geographic and thematic programmes should be consistent and coherent with each other and should be complemented by thematic programmes and by rapid response actions, where relevant. Effective complementarity between the geographic, thematic and rapid response programmes and actions should be ensured. In order to take account of the specificities of each programme, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement the provisions of this Regulation by setting out the Union’s strategy, the priority areas, detailed objectives, the expected results, specific performance indicators and the specific financial allocation for each programme. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (31) . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 29]

(24) In line with the Consensus, the Union and its Member States should enhance joint programming to increase their collective impact by bringing together their resources and capacities. Joint programming should build on the partner countries’ engagement, appropriation and ownership. The Union and its Member States should seek to support partner countries through joint implementation application , whenever appropriate. Joint application should be inclusive and open to all Union partners who agree and can contribute to a common vision, including Member States’ agencies and their development financial institutions, local authorities, the private sector, civil society and academia. [Am. 30]

(24a) In the case of a serious or persistent degradation of democracy, human rights and rule of law in one of the partner countries, support may, by means of a delegated act, be partially or fully suspended. The Commission should take due account of relevant European Parliament resolutions in its decision-making. [Am. 31]

(24b) This Regulation should reconfirm nuclear safety as an important part of the Union external action and facilitate the objectives of cooperation specified in Regulation (EU) …/… of the European Parliament and of the Council (32) (‘Regulation EINS’). Therefore, in the event where a partner country persistently fails to respect the basic nuclear safety standards, such as provisions of the relevant international Conventions within the Framework of the IAEA, the Espoo and Aarhus Conventions and their subsequent amendments, the Treaty on the Non-Proliferation of Nuclear Weapons and the additional Protocols thereto, the commitments to implementation of stress tests and related measures, and the objectives of cooperation specified in Regulation EINS, assistance under this Regulation for the country concerned should be reconsidered and may be suspended or partly suspended. [Am. 32]

(25) Whilst democracy and human rights and fundamental freedoms , including the protection of children, minorities, persons with disabilities and LGBTI persons, as well as gender equality, and women's women and girls’ empowerment should be consistently reflected and mainstreamed throughout the implementation application of this Regulation, Union assistance under the thematic programmes for human rights and democracy and civil society organisations - local authorities should have a specific complementary and additional role by virtue of its global nature and its independence of action from the consent of the governments and public authorities of the third countries concerned. In doing so, the Union should pay particular attention to countries and urgency situations where human rights and fundamental freedoms are most at risk and where disrespect for those rights and freedoms is particularly pronounced and systematic, as well as to situations where space for civil society is at stake. The Union’s assistance under this Regulation should be designed in such a way as to allow for support to, and cooperation and partnership with civil society on sensitive and human rights and democracy issues, providing the flexibility and requisite reactivity to respond to changing circumstances, needs of beneficiaries, or periods of crisis, and when necessary, contributing to capacity building of civil society. In such cases, the political priorities should be to promote respect for international law and to provide means of action to local civil society and other relevant human rights stakeholders in order to contribute to work that is carried out in very difficult circumstances. This Regulation should offer also the possibility for civil society organisations to receive small grants in a fast and efficient manner when necessary, in particular in the most difficult situations, such as those of fragility, crisis, and inter-community tensions. [Am. 33]

(25a) In accordance with Articles 2, 3 and 21 TEU and Article 8 TFEU, the implementation of this Regulation should be guided by the principles of gender equality, women and girls’ empowerment, and should seek to protect and promote women’s rights in line with the Gender Action Plan II, the Council Conclusions on Women Peace and Security of 10 December 2018, the Council of Europe Istanbul Convention and Goal 5 of the 2030 Agenda for Sustainable Development. [Am. 34]

(25b) This Regulation should address and mainstream the promotion of women’s rights and gender equality globally, including by supporting organisations which are working on promoting sexual and reproductive health and rights (access to quality and accessible information, education and services) and combating gender-based violence and discrimination, as well as recognising and addressing the close links between the issues of peace, security, development and gender equality. This work should be coherent with, and promote the implementation of relevant international and European principles and conventions. [Am. 35]

(26) Civil society organisations should embrace a wide range of actors with different multiple roles and mandates which includes all non-State, not-for-profit structures, non-partisan and non-violent structures , through which people organise to pursue shared objectives and ideals, whether political, cultural, social, or religious, environmental, economic or holding authorities to account . Operating from the local to the national, regional and international levels, they comprise urban and rural, formal and informal organisations. Other bodies or actors not specifically excluded by this Regulation should be able to be financed when it is necessary to achieve the objectives of this Regulation. [Am. 36]

(26a) In line with the Consensus for Development, the Union and its Member States should foster the participation of civil society organisations (CSOs) and local authorities (LAs) in contributing to sustainable development and to the implementation of the SDGs, inter alia in the sectors of democracy, the rule of law, fundamental freedoms and human rights, social justice and as providers of basic social services to populations most in need. They should recognise the multiple roles played by CSOs and LAs, the latter as promoters of a territorial approach to development, including decentralisation processes, participation, oversight and accountability. The Union and its Member States should promote an operating space and enabling environment for CSOs, and further enhance their support for CSOs’ and LAs’ capacity building in order to strengthen their voice in the sustainable development process and advance political, social and economic dialogue, including through civil society facilities programmes. [Am. 37]

(26b) The Union should support civil society organisations and promote their greater strategic involvement in all external instruments and programmes, including geographical programmes and the rapid response actions under this Regulation, in keeping with the Council conclusions of 15 October 2012 on ‘The roots of democracy and sustainable development: Europe’s engagement with civil society in external relations’. [Am. 38]

(27) This Regulation lays down a financial envelope for this Instrument, which is to constitute the prime reference amount, within the meaning of point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management (33), for the European Parliament and the Council during the annual budgetary procedure.

(28) Reflecting the importance of tackling climate change , protecting the environment and fight biodiversity loss, in line with the Union commitments to implement the Paris Agreement , the Convention on Biological Diversity and the United Nations Sustainable Development Goals, this Regulation should contribute to mainstream climate and environmental action in the Union policies and to the achievement of an the overall target of 25 % of the Union budget expenditures supporting climate objectives and support actions with clean and identifiable co-benefits across sectors . Actions under this Regulation are expected to contribute 25 % 45 % of its overall financial envelope to climate objectives , environmental management and protection, biodiversity and combatting desertification, of which 30 % of the overall financial envelope should be dedicated to climate change mitigation and adaptation . Relevant actions will be identified during the implementation application of this Regulation, and the overall contribution from this Regulation should be part of relevant evaluations and review processes. Union action in this area should favour the adherence to the Paris Agreement and to the Rio Conventions, and not contribute to environmental degradation or cause harm to the environment or climate. Actions and measures contributing to meeting the target on climate shall put special emphasis on support for adaptation to climate change in poor, highly vulnerable countries, and should take into consideration the relation between climate, peace and security, women’s empowerment and the fight against poverty. This Regulation should contribute to the sustainable management of natural resources and promote sustainable and secure mining, forest management and agriculture. [Am. 39]

(29) It is essential to further step up Cooperation on migration with partner countries, reaping the benefits of well-managed and regular can lead to mutually benefiting from orderly, safe and responsible migration and to effectively addressing irregular migration and forced displacement . Such cooperation should contribute to facilitating safe and legal pathways for migration and asylum, ensuring access to international protection, addressing the root causes of irregular migration and forced displacement, engaging with diasporas , enhancing border management and pursuing efforts in the fight against addressing irregular migration, trafficking in human beings and migrant smuggling, and working on safe, dignified and sustainable returns, readmission and reintegration where relevant, in a conflict-sensitive manner, on the basis of mutual accountability , and in full respect of humanitarian and human rights obligations. Therefore, third countries' effective cooperation with the under international and Union in this area should be an integral element in the general principles of this Regulation. An increased law. Coherence between migration and development cooperation policies is important to ensure that development assistance supports partner countries to manage fight poverty and inequality, promote rights and freedoms, as well as contribute to an orderly, safe and responsible migration more effectively management . This Regulation should contribute to a coordinated, holistic and structured approach to migration, maximising the synergies and applying the necessary leverage the positive impact of migration and mobility on development . [Am. 40]

(30) This Regulation should enable the Union to respond to challenges, needs and opportunities related to migration, in complementarity with Union migration policy and development policies . To contribute to that end, in order to maximise the contribution of migration to development, and without prejudice to unforeseen circumstances new emerging challenges or new needs , a maximum of 10 % of its financial envelope is expected to be dedicated to addressing the root causes of irregular migration and forced displacement and to supporting strengthened engagement to facilitate safe, orderly, regular and responsible migration management and the implementation of planned and well-managed migration policies and governance, including the protection of refugees and migrants' rights based on international and Union law within the objectives of this Regulation. This Regulation should also contribute to addressing the brain-drain phenomenon and to help support the needs of displaced people and host communities, in particular through the provision of access to basic services and livelihoods opportunities. [Am. 41]

(30a) Information and communication technologies (ICT) and services are proven enablers of sustainable development and inclusive growth. They can be key to improving citizens' lives even in the poorest countries, in particular by empowering women and girls, enhancing democratic governance and transparency, and boosting productivity and job creation. Nevertheless, connectivity and affordability remain a problem both across and within regions, since there are large variations between high and lower income countries and between cities and rural areas. This regulation should therefore help the Union to further mainstream digitalisation into the Union development policies. [Am. 42]

(30b) The 2030 Agenda for Sustainable Development, adopted by a Resolution of the United Nations General Assembly on 25 September 2015, underlined the importance of promoting peaceful and inclusive societies both as a Sustainable Development Goal (SDG) 16 and in order to achieve other development policy outcomes. SDG 16.a specifically requests to ‘Strengthen relevant national institutions, including through international cooperation, for building capacities at all levels, in particular in developing countries, to prevent violence and combat terrorism and crime’. [Am. 43]

(30c) In the High Level Meeting Communiqué of 19 February 2016, the Development Assistance Committee of the Organisation for Economic Cooperation and Development updated the reporting directives on Official Development Assistance in the field of peace and security. The financing of the actions undertaken in accordance with this Regulation constitutes Official Development Assistance when it fulfils the criteria set out in those reporting directives or any subsequent reporting directives, upon which the Development Assistance Committee is able to agree. [Am. 44]

(30d) The capacity building in support of development and security for development should be used in exceptional cases only, where the objectives of the Regulation cannot be met by other development cooperation activities. Giving support to security sector actors in third countries, including, under exceptional circumstances, the military, in a conflict prevention, crisis management or stabilisation context is essential to ensure appropriate conditions for poverty eradication and development. Good governance, effective democratic control and civilian oversight of the security system, including of the military, as well as compliance with human rights and the rule of law principles are essential attributes of a well-functioning State in any context, and should be promoted through a wider security sector reform support to third countries. [Am. 45]

(30e) This Regulation should build on the conclusions of the evaluation by the Commission requested for June 2020, including a wide-ranging, multi-stakeholder public consultation, assessing the coherence of capacity building in support of development and security for development within the security-development nexus funded by the Union and its Member States with the Global Strategy and the UN Sustainable Development Goals. [Am. 46]

(30f) The Union should also promote a conflict-sensitive and gender-sensitive approach in all actions and programmes under this Regulation, with the aim of avoiding negative impacts and maximising positive ones. [Am. 47]

(31) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU should apply to this Regulation. These rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (34) (‘the Financial Regulation’) and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, financial assistance, budget support, trust funds, financial instruments and budgetary guarantees, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in Member States and third countries, as the respect for the rule of law is essential for sound financial management and effective EU funding.

(32) The types of financing and the methods of implementation application under this Regulation should be chosen on the basis of partner’s needs, preferences and specific context, their relevance, sustainability and ability to comply with the development effectiveness principles, achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation. The role of the European Endowment for Democracy (EED) as a foundation mandated through the European institutions for the support of democracy, civil society and human rights worldwide should be strengthened and increased under this Regulation. The EED should be given the administrative flexibility and the financial opportunities to disburse targeted grants to civil society actors in the European Neighbourhood standing for the implementation of the European Neighbourhood Policy, in particular where it concerns the development of democracy, human rights, free elections and the rule of law. [Am. 48]

(33) The new European Fund for Sustainable Development Plus (‘EFSD+’), building on its successful predecessor, the EFSD (35), should constitute an integrated financial package supplying financing capacity in the form of grants, budgetary guarantees and financial instruments worldwide. The EFSD+ should support the External Investment Plan and combine blending and budgetary guarantee operations covered by the External Action Guarantee, including those covering sovereign risks associated with lending operations, previously carried out under the external lending mandate to the European Investment Bank. Given its role under the Treaties and its experience over the last decades in supporting Union policies, the European Investment Bank should remain a natural partner for the Commission for the implementation application of operations under the External Action Guarantee. Other Multilateral Development Banks (MDBs) or EU National Development Banks (NDBs) also have skills and capital which can add significant value to the impact of Union development policy and their participation under the EFSD+ should therefore also be strongly promoted through this Regulation. [Am. 49]

(34) The EFSD+ should aim at supporting investments as a means of contributing to the achievement of the Sustainable Development Goals by fostering sustainable and inclusive economic , cultural and social development and promoting the socio-economic resilience in partner countries with a particular focus on the eradication of poverty, preventing conflict and the promotion of peaceful, just and inclusive societies, sustainable and inclusive growth economic progress, tackling climate change through mitigation and adaptation, environmental degradation , the creation of decent jobs in compliance with relevant ILO standards and economic opportunities, in particular for women, young and vulnerable people. Emphasis should be placed on providing inclusive and equitable quality education, and the development of skills and entrepreneurship by strengthening educational and cultural structures, including for children in humanitarian emergencies and situations of forced displacement. It should also aim at supporting a stable investment environment, industrialisation , socioeconomic sectors , cooperatives, social enterprises , micro, small and medium-sized enterprises as well as addressing strengthening democracy the rule of law and human rights, the lack of which often constitute the specific socioeconomic root causes of irregular migration and forced displacement , in accordance with the relevant indicative programming documents. Special attention should be given to countries identified as experiencing fragility or conflict, Least Developed Countries and heavily indebted poor countries. A special focus should be placed also to improve the delivery of essential public basic services, food security, and to improve the quality of life of rapidly growing urban populations, including through adequate, safe and affordable housing. The EFSD+ should encourage for-profit/non-profit partnerships as a means of guiding private sector investments towards sustainable development and poverty eradication. The strategic involvement of civil society organisations and of Union Delegations in partner countries should also be promoted at all stages of the project cycle, to help finding tailor-made solutions for promoting the socioeconomic development of communities, job creation, and new business opportunities. Investments should be based on conflict analysis, focus on the root causes of conflict, fragility and instability, maximising the potential for fostering peace and minimising the risks of exacerbating conflicts. [Am. 50]

(35) The EFSD+ should maximise additionality of funding, address market failures and sub-optimal investment situations, deliver innovative products and ‘crowd-in’ private sector funds to optimise the contribution of private finance to local sustainable development . Involvement of the private sector in the Union’s cooperation with partner countries through the EFSD+ should yield measurable and additional development impact in full respect of the environment and local communities’ rights and livelihoods and without distorting the local market and unfairly competing with local economic actors. It should be cost-effective based on mutual accountability and risk and cost sharing. The EFSD+ , while based on adequate accountability and transparency criteria, should operate as a ‘one-stop-shop’, receiving financing proposals from financial institutions and public or private investors and delivering a wide range of financial support to eligible investments. [Am. 51]

(35a) An EU guarantee for the sovereign investments operations in the public sector shall form part of the EFSD+. That EU guarantee shall not be extended to sovereign investment operations that involve on-lending to the private sector or lending to, or for the benefit of, sub-sovereign entities that can access sub-sovereign financing without sovereign guarantees. In order to assist capacity planning by the EIB, a minimum guaranteed volume of such sovereign investments operations shall be allocated to the EIB. [Am. 52]

(36) An External Action Guarantee should be established building on the existing EFSD Guarantee and the Guarantee Fund for external actions. The External Action Guarantee should support the EFSD+ operations covered by budgetary guarantees, macro-financial assistance and loans to third countries on the basis of Council Decision 77/270/Euratom (36). These operations should be supported by appropriations under this Regulation, together with those under Regulation (EU) No …/… of the European Parliament and of the Council (37) (‘IPA III Regulation’) and Regulation EINS, which should also cover the provisioning and liabilities arising from macro-financial assistance loans and loans to third countries referred to in Article 10(2) of Regulation EINS, respectively. When funding EFSD+ operations, priority should be given to those which have a high impact on decent job creation and livelihoods and whose cost-benefit ratio enhances the sustainability of investment and which provide the highest guarantees of sustainability and long-term development impact throughout local ownership . The operations supported with the External Action Guarantee should be accompanied by an in-depth ex ante assessment of environmental, financial and social aspects, as appropriate and including the impact on human rights and livelihoods of affected communities and the impact on inequalities and the identification of ways to address those inequalities in line with the better regulation requirements and taking due account of the principle of free and prior informed consent (FPIC) of affected communities in land-related investments . The External Action Guarantee should not be used to provide essential public services, which remains a government responsibility. Ex-post impact assessments should also happen to measure the development impact of the EFSD+ operations. [Am. 53]

(37) In order to provide for flexibility, increase the attractiveness for the private sector , promote fair competition and maximise the impact of the investments a derogation from the rules related to the methods of implementation of the Union budget, as laid down in the Financial Regulation, should be provided as regards the eligible counterparts. Those eligible counterparts could also be bodies which are not entrusted with the implementation of a public-private partnership and could also be bodies governed by the private law of a partner country. [Am. 54]

(38) In order to increase the impact of the External Action Guarantee, Member States and contracting parties to the Agreement on the European Economic Area should have the possibility of providing contributions in the form of cash or a guarantee. Contribution in the form of a guarantee should not exceed 50 % of the amount of operations guaranteed by the Union. The financial liabilities arising from this guarantee should not be provisioned and the liquidity cushion should be provided by the common provisioning fund.

(39) External actions are often implemented applied in a highly volatile environment requiring continuous and rapid adaptation to the evolving needs of Union partners and to global challenges to human rights and fundamental freedoms , democracy and good governance, security and stability, climate change and environment, oceans, and the migration, crisis and including its root causes such as poverty and inequality, and the impact of the increasing number of displaced persons, especially on developing countries . Reconciling the principle of predictability with the need to react rapidly to new needs consequently means adapting the financial implementation application of the programmes. To increase the ability of the EU to respond to unforeseen needs not covered by programmes and programming documents , building on the successful experience of the European Development Fund (EDF), an a pre-defined amount should be left unallocated as an emerging challenges and priorities cushion. It should be mobilised in duly justified cases in accordance with the procedures established in this Regulation. [Am. 55]

(40) Therefore, while respecting the principle that the Union budget is set annually, this Regulation should preserve the possibility to apply the flexibilities already allowed by the Financial Regulation for other policies, namely carryovers and re-commitments of funds, to ensure efficient use of the Union funds both for Union citizens and the partner countries, thus maximising the Union funds available for the Union’s external action interventions.

(41) Pursuant to Article 83 of Council Decision …/… (OCTs), persons and entities established in overseas countries and territories should be eligible for funding under this Regulation, subject to its rules and objectives and possible arrangements applicable to the Member State to which the relevant overseas country or territory is linked. Moreover, cooperation between the partner countries and the overseas countries and territories as well as the Union outermost regions under Article 349 TFEU should be encouraged in areas of common interest.

(42) In order to enhance partner countries' democratic ownership of their development processes and the sustainability of external aid, the Union should, where relevant, favour the use of partner countries' own institutions , resources, expertise and of partner countries’ systems and procedures for all aspects of the project cycle for cooperation while ensuring local resources and expertise and the full involvement of local governments and civil society. The Union should also provide training programmes on how to apply for Union funding to local authorities’ civil servants and civil society organisations with the aim of helping them to enhance the eligibility and efficiency of their projects. These programmes should be carried out in the countries concerned, be available in the language of the country and complement any distance learning programmes also established, in order to ensure a targeted training responding to the needs of that country. [Am. 56]

(43) Annual or multi-annual action plans and measures referred to in Article 19 constitute work programmes under the Financial Regulation. Annual or multi-annual action plans consist of a set of measures grouped into one document.

(44) In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (38), Council Regulation (EC, Euratom) No 2988/95 (39), Council Regulation (Euratom, EC) No 2185/96 (40) and Council Regulation (EU) 2017/1939 (41), the financial interests of the Union are to be protected through effective and proportionate measures, including the prevention, detection, correction and investigation of irregularities, including fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union, as provided for in Directive (EU) 2017/1371 (42) of the European Parliament and of the Council. In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests and grant the necessary rights and access to the Commission, OLAF and the European Court of Auditors, and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights; for this reason, agreements with third countries and territories and with international organisations, and any contract or agreement resulting from the implementation of this Regulation should contain provisions expressly empowering the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot checks and inspections, according to their respective competences and ensuring that any third parties involved in the implementation of Union funding grant equivalent rights.

(44a) In order to contribute to the international fight against tax fraud, tax evasion, fraud, corruption and money laundering all financing through this Regulation should be provided in a completely transparent manner. Furthermore, the eligible counterparts should not support any activities carried out for illegal purposes nor participate in any financing or investment operation through a vehicle located in a non-cooperative jurisdiction or in a tax haven. Counterparts should also refrain from making any use of tax avoidance or aggressive tax planning schemes. [Am. 57]

(45) In order to ensure uniform conditions for the implementation of the relevant provisions of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 (43) of the European Parliament and of the Council. [Am. 58]

(46) In order to supplement or non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of setting out the Union’s strategy, the priority areas, detailed objectives, the expected results, specific performance indicators and the specific financial allocation and cooperation modalities for each geographic and thematic programme, as well as for action plans and measures not based on programming documents establishing a human rights operational framework, establishing a risk management framework, deciding on the needs not covered by programmes or programming documents, deciding on the suspension of assistance, establishing the performance-based approach framework, establishing the provisioning rates, establishing a monitoring and evaluation framework and extending the scope of actions to countries and territories not covered by this Regulation. In order to amend non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union TFEU should be delegated to the Commission in respect of the provisioning rates laid down in Article 26(3), to the areas of cooperation and intervention listed in Annexes II, III and IV, the priority areas of the EFSD+ operations and the investment windows listed in Annex V, the governance of the EFSD+ in Annex VI, to review or complement as well as the indicators listed in Annex VII where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework. [Am. 59]

(47) Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 (44), there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. These requirements, where appropriate, can should include measurable indicators, as a basis for evaluating the effects of the Programme on the ground. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level with relevant stakeholders such as civil society and experts , and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. [Am. 60]

(48) The references to Union instruments in Article 9 of Council Decision 2010/427/EU (45) , which are replaced by Due to the broad nature and scope of this Regulation, should be read as references to and to ensure coherence between the principles, objectives and spending under both this Regulation and the other external financing instruments, such as Regulation EINS, or Instruments which are intrinsically linked to external policies, such as the IPA III Regulation, a horizontal steering group composed of all relevant Commission and EEAS services and chaired by the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy (VP/HR) or a representative of that office should ensure that be responsible for the steering, coordinating and managing of the policies, programmes, objectives and actions under this Regulation is implemented in accordance with the role of in order to ensure consistency, efficiency, transparency and accountability of Union external financing. The VP/HR should ensure overall political coordination of the Union’s external action. For all actions, including rapid response actions and exceptional assistance measures, and throughout the whole cycle of programming, planning and application of the instrument, the High Representative and the EEAS as provided in that Decision should work with the relevant members and services of the Commission, identified on the basis of the nature and objectives of the action foreseen, building upon their expertise . All proposals for decisions should be prepared by following the Commission’s procedures and should be submitted to the Commission for adoption . [Am. 61]

(48a) The application of this Regulation should, where relevant, be complementary to, and should be consistent with, measures adopted by the Union in pursuit of the Common Foreign and Security Policy objectives within the framework of Chapter Two of Title V TEU and measures adopted within the framework of Part Five TFEU. [Am. 62]

(49) The envisaged actions as provided for hereunder should strictly follow the conditions and procedures set out by the restrictive measures of the Union, [Am. 63]

(49a) The European Parliament should be fully involved in the design, programming, monitoring and evaluation phases of the instruments in order to guarantee political control and democratic scrutiny and accountability of Union funding in the field of external action. An enhanced dialogue between the institutions should be established in order to ensure that the European Parliament is in a position to exercise political control during the application of this Regulation in a systematic and smooth manner thereby enhancing both efficiency and legitimacy, [Am. 64]

HAVE ADOPTED THIS REGULATION:

TITLE I

GENERAL PROVISIONS

Article 1 Subject matter This Regulation establishes the Programme ‘Neighbourhood, Development and International Cooperation Instrument’ (the ‘Instrument’). It lays down the objectives of the Instrument, the budget for the period 2021 — 2027, the forms of Union funding and the rules for providing such funding. It also establishes the European Fund for Sustainable Development Plus (the ‘EFSD+’) and an External Action Guarantee.

Article 2 Definitions For the purposes of this Regulation, the following definitions apply: (1) ‘country programme’ shall mean an indicative programme covering one country; (2) ‘multi-country programme’ shall mean an indicative programme covering more than one country; (3) ‘cross-border cooperation’ shall mean cooperation between one or more Member States, and one or more third countries and territories along the external borders of the Union. (4) ‘regional programme’ shall mean an indicative multi-country programme covering more than one third country within the same geographic area as established in Article 4 (2); (5) ‘trans-regional programme’ shall mean an indicative multi-country programme covering more than one third country from different areas as established in Article 4 (2) of this Regulation; (6) ‘legal entity’ shall mean any natural or legal person created and recognised as such under national law, Union law or international law, which has legal personality and which may, acting in its own name, exercise rights and be subject to obligations, or an entity without a legal personality in accordance with Article 197(2)(c) of the Financial Regulation; (6a) ‘civil society organisations’ means all non-State, not-for-profit, and non-violent structures through which people organise to pursue shared objectives and ideals, whether political, cultural, social, economic, religious, environmental, or holding authorities to account, which operate at local, national, regional or international level, and which may include urban and rural as well as formal and informal organisations; in the context of the thematic programme on human rights and democracy, ‘civil society’ includes individuals or groups that are independent from the State and whose activities help to promote human rights and democracy, including human rights defenders as defined by the UN Declaration on the Right and Responsibility of Individuals; [Am. 65] (6b) ‘local authorities’ means branches of government or public authorities, which operate at sub-national level (e.g. municipal, community, district, county, provincial or regional level); [Am. 66] (7) ‘investment window’ shall mean a targeted area for support by the EFSD+ Guarantee to portfolios of investments in specific regions, countries or sectors; (8) ‘contributor’shall mean means a Member State, an international finance institution, or a public institution of a Member State, a public agency or other public or private entities contributing in cash or in guarantees to the common provisioning fund; [Am. 67] (8a) ‘additionality’ means the principle which ensures that the External Action Guarantee contributes to sustainable development by operations which could not have been carried out without it, or which achieve positive results above and beyond what could have been achieved without it, as well as crowding in private sector funding and addressing market failures or sub-optimal investment situations as well as improving the quality, sustainability, impact or scale of an investment. The principle also ensures that investment and financing operations covered by the External Action Guarantee do not replace the support of a Member State, private funding or another Union or international financial intervention, and avoid crowding out other public or private investments. Projects supported by the External Action Guarantee typically have a higher risk profile than the portfolio of investments supported by the eligible counterparts under their normal investment policies without the External Action Guarantee; [Am. 68] (8b) ‘industrialised countries’ means third countries other than developing countries included in the OECD-Development Assistance Committee’s (‘OECD-DAC’) list of Official Development Assistance (‘ODA’) recipients; [Am. 69] (8c) ‘poverty’ means all the conditions in which people are deprived and perceived as incapacitated in different societies and local contexts; the core dimensions of poverty include economic, human, political, socio-cultural and protective capabilities; [Am. 70] (8d) ‘gender sensitivity’ means acting with the aim of understanding and taking account of the societal and cultural factors involved in gender-based exclusion and discrimination in all spheres of public and private life; [Am. 71] (8e) ‘conflict sensitivity’ means acting with the aim of understanding that any initiative conducted in a conflict-affected environment will interact with that conflict and that such interaction will have consequences that may have positive or negative effects; conflict sensitivity also means ensuring that, to the best of its abilities, Union actions (political, policy, external assistance) avoid having a negative impact and maximise the positive impact on conflict dynamics, thereby contributing to conflict prevention, structural stability and peace building. [Am. 72] Where reference is made to human rights, it shall be understood as to include fundamental freedoms; [Am. 73] In the context of Article 15, ‘countries most in need’ may also include the countries listed in Annex I. [Am. 74]

Article 3 Objectives 1. The general objective of this Regulation is to lay down the financial framework enabling the Union to uphold and promote the Union’s its values, and principles and fundamental interests worldwide, in order to pursue in accordance with the objectives and principles of the Union’s external action, as laid down in Article 3(5), Articles 8 and 21 TEU , as well as Articles 11 and 208 TFEU . [Am. 75] 2. In accordance with paragraph 1, the specific objectives of this Regulation are the following: (a) to support and foster dialogue and cooperation with third countries and regions in the Neighbourhood, in Sub-Saharan Africa, in Asia and the Pacific, and in the Americas and the Caribbean; (aa) to contribute to the achievement of the international commitments and objectives that the Union has agreed to, in particular the 2030 Agenda, the SDGs and the Paris Agreement; [Am. 76] (ab) to develop a special strengthened relationship with the countries in the eastern and southern neighbourhood of the Union, founded on cooperation, peace and security, mutual accountability and shared commitment to the universal values of democracy, rule of law and respect for human rights, socio-economic integration and environmental protection and climate action; [Am. 77] (ac) to pursue the reduction and, in the long term, the eradication of poverty, particularly in least developed countries (LDCs); to enable sustainable social and economic development; [Am. 78] (b) at global level, to consolidate and support democracy, rule of law and human rights, support civil society organisations and local authorities , further stability and peace , prevent conflict and promote just and inclusive societies, advance multilateralism, international justice and accountability, and address other global and regional challenges including migration and mobility climate change and environmental degradation as well as foreign policy needs and priorities, as set out in Annex III, including the promotion of confidence building and good neighbourly relations ; [Am. 79] (ba) to protect, promote and advance human rights, democracy, the rule of law as well as gender and social equality, including in the most difficult circumstances and urgent situations, in partnership with civil society including human rights defenders worldwide; [Am. 80] (c) to respond rapidly to: situations of crisis, instability and conflict; resilience challenges and linking of humanitarian aid and development action; and foreign policy needs and priorities. [Am. 81] The achievement of these objectives shall be measured using relevant indicators as referred to in Article 31. 3. At least 92 % 95 % of the expenditure under this Regulation shall fulfil the criteria for Official Development Assistance, established by the Development Assistance Committee of the Organisation for Economic Cooperation and Development. This Regulation shall contribute to reaching the collective target of achieving 0,2 % of the Union’s Gross National Income to Least Developed Countries and 0,7 % of the Union Gross National Income as Official Development Assistance within the timeframe of the 2030 Agenda. [Am. 82] 3a. At least 20 % of the Official Development Assistance funded under this Regulation, across all programmes, geographic and thematic, annually and over the duration of its actions, shall be ring-fenced for social inclusion and human development, in order to support and strengthen the provision of basic social services, such as health, education, nutrition and social protection, particularly to the most marginalised, and with an emphasis on women and children. [Am. 83] 3b. At least 85 % of the Official Development Assistance funded programmes, geographic and thematic, under this Regulation shall have gender equality and women’s and girls’ rights and empowerment as a principal or a significant objective, as defined by the OECD DAC. A significant part of these programmes shall have gender equality and women’s and girls’ rights and empowerment as a principal objective. [Am. 84]

Article 4 Scope and structure 1. Union funding under this Regulation shall be implemented applied through: [Am. 85] (a) geographic programmes; (b) thematic programmes; (c) rapid response actions. 2. The geographic programmes shall encompass country and multi-country cooperation in the following areas: (a) Neighbourhood; (b) Sub-Saharan Africa; (c) Asia and the Pacific; (d) Americas and the Caribbean. Geographic programmes may cover all third countries, except for candidates and potential candidates as defined in Regulation (EU) No …/…. (46) (IPA) and overseas countries and territories as defined in Council Decision …/… (EU). Geographic programmes of a continental or trans-regional scope may also be established, in particular a pan-African programme covering African countries under points (a) and (b) and a programme covering African, Caribbean and Pacific countries under points (b), (c) and (d). [Am. 86] Geographic programmes in the Neighbourhood area may cover any country referred to in Annex I. In order to attain the objectives laid down in Article 3, geographic programmes shall be based on the areas of cooperation listed in Annex II. 3. The thematic programmes shall encompass actions linked to the pursuit of the Sustainable Development Goals at global level, in the following areas: (a) Human Rights and Democracy; (b) Civil Society Organisations and Local Authorities ; [Am. 87] (c) Stability and Peace; (d) Global Challenges; (da) Foreign Policy Needs and Priorities. [Am. 88] Thematic programmes may cover all third countries. as well as Overseas countries and territories as defined shall have full access to thematic programmes, as laid down in Council Decision …/… (EU). Their effective participation shall be ensured, with account taken of their specific characteristics and the particular challenges they must address. [Am. 89] In order to attain the objectives laid down in Article 3, thematic programmes shall be based on the areas of intervention listed in Annex III. 4. The rapid response actions shall enable early action to: (a) contribute to peace, stability and conflict prevention in situations of urgency, emerging crisis, crisis and post-crisis; [Am. 90] (b) contribute to strengthening the resilience of states , including local authorities , societies, communities and individuals and to linking humanitarian aid and development action. [Am. 91] (c) address foreign policy needs and priorities. [Am. 92] Rapid response actions may cover all third countries as well as overseas countries and territories as defined in Council Decision …/… (EU). In order to attain the objectives laid down in Article 3, rapid response actions shall be based on the areas of intervention listed in Annex IV. 5. Actions under this Regulation shall be primarily implemented applied through geographic programmes. [Am. 93] Actions implemented applied through thematic programmes shall be complementary to actions funded under geographic programmes and shall support global and trans-regional initiatives for aimed at achieving internationally agreed goals, in particular the Sustainable Development Goals, protecting as referred in point (aa) of Article 3(2), as well as global public goods or addressing global challenges. Actions through thematic programmes may also be undertaken independently, including where there is no geographic programme, or where it has been suspended, or where there is no agreement on the action with the partner country concerned, or where the action cannot be adequately addressed by geographic programmes. [Am. 94] Rapid response actions shall be complementary to geographic and thematic programmes. These as well as to actions funded through the Council Regulation (EC) No 1257/96 of 20 June 1996 (the ‘Humanitarian Aid Regulation’). Those actions shall be designed and implemented applied to enable, where relevant, their continuity under geographic or thematic programmes. [Am. 95] 6. The Commission shall be empowered to adopt delegated acts in accordance with Article 34 to supplement or amend Annexes II, III and IV.

Article 5 Coherence, consistency and complementarity 1. In implementing applying this Regulation, consistency, coherence synergies and complementarity with other all areas of Union external action , including other external financing instruments, the IPA III Regulation in particular, as well as measures adopted under Chapter Two of Title V TEU and Part Five TFEU , with other relevant Union policies and Programmes, as well as policy coherence for development shall be ensured. The Union shall take account of the objectives of development cooperation in the policies that it applies which are likely to affect developing countries. [Am. 96] 1a. The Union and Member States shall coordinate their respective support programmes with the aim of increasing effectiveness and efficiency of their delivery and preventing overlapping of funding. [Am. 97] 1b. In applying this Regulation, the Commission and the EEAS shall duly take into consideration the positions of the European Parliament. [Am. 98] 2. Actions falling within the scope of Council Regulation (EC) No 1257/96 shall not be funded under this Regulation. 3. Where appropriate, other Union Programmes may contribute to actions established under this Regulation, provided that the contributions do not cover the same costs. This Regulation may also contribute to measures established under other Union Programmes, provided that the contributions do not cover the same costs. In such cases, the work programme covering those actions shall establish which set of rules shall be applicable.

Article 6 Budget 1. The financial envelope for the implementation application of this Regulation for the period 2021 — 2027 shall be EUR 89 200 82 451 million in 2018 prices (EUR 93 154 million in current prices ) [100 %] . [Am. 99] 2. The financial envelope referred to in paragraph 1 shall be composed of: (a) EUR 68 000 63 687 million in 2018 prices (EUR 71 954 million in current prices) [77,24 %] for geographic programmes: [Am. 100] — Neighbourhood at least EUR 22 000 20 572 million in 2018 prices (EUR 23 243 million in current prices) [24,95 %] , [Am. 101] — Sub-Saharan Africa at least EUR 32 000 30 723 million in 2018 prices (EUR 34 711 million in current prices) [37,26 %] , [Am. 102] — Asia and the Pacific EUR 8 851 million in 2018 prices (EUR 10 000 million in current prices) [10,73 %], including at least EUR 620 million in 2018 prices (EUR 700 million in current prices) for the Pacific , [Am. 103] — Americas and the Caribbean EUR 3 540 million in 2018 prices (EUR 4 000 million in current prices) [4,29 %] , including EUR 1 062 million in 2018 prices (EUR 1 200 million in current prices) for the Caribbean , [Am. 104] (b) EUR 7 000 9 471 million in 2018 prices (EUR 10 700 million in current prices) [11,49 %] for thematic programmes: [Am. 105] — Human Rights and Democracy EUR 1 500 at least EUR 1 770 million in 2018 prices (EUR 2 000 million in current prices) [2,15 %] , with up to 25 % of the programme to be devoted to the funding of EU Election Observation Missions , [Am. 106] — Civil Society Organisations EUR 1 500 (CSOs) and Local Authorities (LAs) EUR 2 390 million in 2018 prices (EUR 2 700 million in current prices) [2 , 90 %], of which EUR 1 947 million in 2018 prices (EUR 2 200 million in current prices) [2,36 %] for CSOs and EUR 443 million in 2018 prices (EUR 500 million in current prices) [0,54 %] for LAs , [Am. 107] — Stability and Peace EUR 885 million in 2018 prices (EUR 1 000 million in current prices) [1 , 07 %] , [Am. 108] — Global Challenges EUR 3 000 3 983 million in 2018 prices (EUR 4 500 million in current prices) [4 , 83 %] , [Am. 109] — Foreign Policy Needs and Priorities EUR 443 million in 2018 prices (EUR 500 million in current prices) [0,54 %], [Am. 110] (c) EUR 4 000 3 098 million in 2018 prices (EUR 3 500 million in current prices) [3,76 %] for rapid response actions: — Stability and conflict prevention in situations of urgency, emerging crisis, crisis and post-crisis EUR 1 770 million in 2018 prices (EUR 2 000 million in current prices) [2,15 %], — Strengthening resilience of states, societies, communities and individuals and linking humanitarian aid and development action EUR 1 328 million in 2018 prices (EUR 1 500 million in current prices) [1,61 %], [Am. 111] 3. The emerging challenges and priorities cushion of an amount of EUR 10 200 6 196 million in 2018 prices (EUR 7 000 million in current prices) [7,51 %], shall increase the amounts referred to in paragraph 2 in accordance with Article 15. [Am. 112] 4. The financial envelope referred to in paragraph 2 (a) shall correspond to at least 75 % of the financial envelope referred to in paragraph 1. 4a. The actions under Article 9 shall be financed to up to the amount of EUR 270 million. [Am. 113] 4b. The annual appropriations shall be authorised by the European Parliament and by the Council within the limits of the multiannual financial framework during the budgetary procedure, after the priorities have been agreed by the Institutions. [Am. 114]

Article 7 Policy framework The association agreements, partnership and cooperation agreements, multilateral trade agreements, and other agreements that establish a legally binding relationship with partner countries, recommendations and acts adopted in the bodies set up by those agreements, as well as relevant multilateral agreements, Union legislative acts , European Council conclusions, and Council conclusions, summit declarations or and other international declarations and conclusions of high-level meetings with partner countries, relevant European Parliament resolutions, communications of the Commission or Joint and positions, communications of the Commission and the High Representative of the Union for Foreign Affairs and Security Policy and United Nations Conventions and resolutions , shall constitute the overall policy framework for the implementation application of this Regulation. [Am. 115]

Article 8 General principles 1. The Union shall seek to promote, develop and consolidate the principles of democracy, the rule of law and respect for human rights and fundamental freedoms on which it is founded, through dialogue and cooperation with partner countries and regions , through action in the United Nations and other international fora and through its cooperation with civil society organisations, local authorities and private actors, the principles on which it is founded, namely democracy, the rule of law, good governance, 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 . Funding under this Regulation shall comply with these principles, as well as with the Union’s commitments under international law. [Am. 116] 1a. Consistent with Articles 2 and 21 TEU, the Union's contribution to democracy and the rule of law and to the promotion and protection of human rights and fundamental freedoms shall be rooted in the Universal Declaration Human Rights, international human rights law and international humanitarian law. [Am. 117] 2. A rights-based approach encompassing all human rights, whether civil and political or economic, social and cultural shall be applied in order to integrate human rights principles, to support the right holders in claiming their rights with a focus on poorer and more marginalised and vulnerable groups , including minorities, women, children and youth, older people, indigenous people, LGBTI persons, and persons with disabilities, on essential labour rights and social inclusion, and to assist partner countries in implementing their international human rights obligations. This Regulation shall promote gender equality and women’s the empowerment of women, youth and children, including with regard to sexual and reproductive health and rights . [Am. 118] 3. The Union shall support, as appropriate, the implementation of bilateral, regional and multilateral cooperation and dialogue, partnership agreements and triangular cooperation. The Union shall promote a multilateral and rules-based rules- and values-based approach to global public goods and challenges and shall cooperate with Member States, partner countries, international organisations , including international financial institutions and UN agencies, funds and programmes, and other donors in that respect. [Am. 119] The Union shall foster cooperation with international and regional organisations and other donors. [Am. 120] In relations with partner countries, their track record in implementing commitments, international agreements, in particular the Paris Agreement, and contractual relations with the Union , in particular association agreements, partnership and cooperation agreements and trade agreements, shall be taken into account. [Am. 121] 4. Cooperation between the Union and the Member States, on the one hand, and partner countries, on the other hand, shall be based on and shall promote the development effectiveness principles, where applicable, across all modalities namely: ownership of development priorities by partner countries, a focus on results, inclusive development partnerships, transparency and mutual accountability , and alignment to the priorities of partner countries . The Union shall promote effective and efficient resource mobilisation and use. [Am. 122] In line with the principle of inclusive partnership, where appropriate, the Commission shall ensure that relevant stakeholders of partner countries, including civil society organisations and local authorities, are duly consulted and have timely access to relevant information allowing them to play a meaningful role during the design, implementation application and associated monitoring processes of programmes. [Am. 123] In line with the principle of ownership the Commission, where appropriate, shall favour the use of partner countries' systems for the implementation application of programmes. [Am. 124] 5. In order to promote the complementarity and efficiency of their action, the Union and the Member States shall coordinate their policies and shall consult each other on their assistance programmes, including in international organisations and during international conferences. 6. Programmes and actions under this Regulation shall mainstream climate change, environmental protection and in accordance with Art. 11 TFEU, disaster risk reduction and preparedness, human development, conflict prevention and peace building, gender equality and the empowerment of women, children and youth, non-discrimination, education and culture, and digitalisation and shall address interlinkages between Sustainable Development Goals, to promote integrated actions that can create co-benefits and meet multiple objectives in a coherent way. These programmes and actions shall be based on an analysis of capacities, risks and vulnerabilities, integrate a people and community centred resilience approach and be conflict sensitive. They shall be guided by the principle principles of leaving no one behind and ‘do no harm’ . [Am. 125] 7. Without prejudice to the other objectives of Union external action, a more coordinated, holistic and structured approach to migration shall be pursued, with partners and its effectiveness be regularly assessed , without conditioning the allocation of development aid to third countries to cooperation on migration management and in full respect of human rights, including the right of every individual to leave his or her country of origin . [Am. 126] 7a. The Commission shall ensure that actions adopted under this Regulation in relation to security, stability and peace, in particular with regard to capacity building of military actors in support of development and security for development, fight against terrorism and organised crime, and cyber-security, are carried out in accordance with international law, including international human rights and humanitarian law. The Commission may develop roadmaps jointly with the beneficiary partners to improve the institutional and operational compliance of military actors with transparency and human rights standards. The Commission shall carefully monitor, evaluate and report on the application of such actions for each relevant objective pursuant to Article 31 in order to ensure compliance with human rights obligations. For such actions, the Commission shall pursue a conflict sensitive approach, including a rigorous and systematic ex ante conflict analysis which fully integrates gender analysis, in addition to the provisions on risk management under Article 8(8)b. The Commission shall adopt a delegated act in accordance with Article 34 supplementing this Regulation by establishing an operational framework, based on the existing guidance to ensure that human rights are taken into consideration in the design and application of the measures referred to in this Article, in particular as regards the prevention of torture and other cruel, inhuman or degrading treatment and respect for due process, including the presumption of innocence, the right to a fair trial and rights of defence. [Am. 127] 8. The Commission shall regularly inform and have regular exchanges of views meaningful policy dialogues with the European Parliament , at its own initiative and when requested by the European Parliament . [Am. 128] 8a. The Commission shall have regular exchanges of information with civil society and local authorities. [Am. 129] 8b. The Commission shall adopt a delegated act in accordance with Article 34 supplementing this Regulation by establishing an appropriate risk management framework, including an assessment and mitigations measures for each relevant objective of the Regulation. [Am. 130] 8c. Transparency and accountability, with a strong focus on reporting and scrutiny shall underpin the entire instrument. That shall comprise a transparent control system, including the reporting of information on the recipients of funds and whether payments have been made on time. [Am. 131]

Article 9 Capacity building of military actors in support of development and security for development 1. In accordance with Article 41(2) of the Treaty on European Union, Union funding under this Regulation shall not be used to finance the procurement of arms or ammunition, or operations having military or defence implications. Any equipment, service or technology supplied under this Regulation shall be subject to strict transfer controls as set out in the Common Position 944/2008/CFSP, the Dual-Use Regulation and any other Union restrictive measures in force. In accordance with Regulation (EU) …/… [EU Regulation on Products used for Capital Punishment and Torture], this Regulation shall not be used to finance the provision of any type of equipment that may be used for torture, mistreatment or other human rights violations. [Am. 132] 2. In order to contribute to sustainable development, which requires the achievement of stable, peaceful and inclusive societies, Union assistance under this Regulation may be used in the context of a wider security sector reform or to build the capacity of military actors in partner countries, under the exceptional circumstances set out in paragraph 4, to deliver development activities and security for development activities , in line with the overarching objective of achieving sustainable development . [Am. 133] 3. Assistance pursuant to this Article may cover in particular the provision of capacity building programmes in support of development and security for development, including training, mentoring and advice, as well as the provision of equipment, infrastructure improvements and services directly related to that assistance. 4. Assistance pursuant to this Article shall be provided only: (a) where requirements cannot be met by recourse to non-military actors to adequately reach Union objectives under this Regulation and there is a threat to the existence of functioning State institutions or to the protection of human rights and fundamental freedoms and State institutions cannot cope with that threat; and (b) where a consensus exists between the partner country concerned and the Union that military actors are key for preserving, establishing or re-establishing the conditions essential for sustainable development and that those military actors are not implicated in human rights violations or pose a threat to the functioning of State institutions , including in crises and fragile or destabilised contexts and situations. [Am. 134] 5. Union assistance pursuant to this Article shall not be used to finance capacity building of military actors for purposes other than the delivery of development activities and security for development activities. In particular, it shall not be used to finance: (a) recurrent military expenditure; (b) the procurement of arms and ammunition, or any other equipment designed to deliver lethal force; (c) training which is designed to contribute specifically to the fighting capacity of the armed forces. 6. When designing and implementing applying measures pursuant to this Article, the Commission shall promote ownership by the partner country. It shall also develop the necessary elements and the good practices required to ensure sustainability and accountability in the medium and long term and shall promote the rule of law and established international law principles. The Commission shall ensure that those measures generate direct human security benefits for the population, are integrated into a broader security sector reform policy comprising strong democratic and parliamentary oversight and accountability elements, including in terms of improved security service provision, and fit into long-term peace and development strategies designed to address the root causes of conflict. The Commission shall also ensure that actions aimed at reforming military forces contribute to making them more transparent, accountable and compliant with the human rights of those coming under their jurisdiction. For measures aimed at providing partner military forces with equipment, the Commission shall specify the type of equipment to be provided in the context of each measure. The Commission shall apply the provisions specified under Article 8 — paragraph 8 b (new) in order to ensure that this equipment will be used only by its intended beneficiaries. [Am. 135] 7. The Commission shall establish appropriate risk assessment, monitoring and undertake, within the evaluation procedures for measures pursuant to this Article 32, and in particular with regard to a mid-term evaluation, joint evaluations with Member States . The results shall inform programme design and resource allocation, and further enhance the consistency and complementarity of the Union's external action. [Am. 136]

TITLE II

IMPLEMENTATION APPLICATION OF THIS REGULATION [Am. 137]

Chapter I

Programming

Article 9a Scope of the Geographic programmes 1. Union cooperation activities under this Article shall be applied for activities of a local, national, regional, trans-regional and continental nature. 2. In order to attain the objectives laid down in Article 3, geographic programmes shall be drawn up from the following areas of cooperation: (a) good governance, democracy, rule of law, human rights, fundamental freedoms and civil society; (b) poverty eradication, fight against inequalities and human development; (c) migration and mobility; (d) environment and climate change; (e) inclusive and sustainable economic growth and decent employment; (f) security, stability and peace; (g) partnership; 3. Further details of the areas of cooperation referred to in paragraph 2 are set out in Annex II. [Am. 138]

Article9b Scope of the thematic programmes 1. Thematic programmes shall cover the following areas of intervention: (a) Human Rights, Fundamental Freedoms and Democracy: — protecting and promoting human rights and human rights defenders in countries and urgency situations where human rights and fundamental freedoms are most