concerning the allocation of funds decommitted from projects under the 10th European Development Fund for the purpose of replenishing the African Peace Facility

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

The African Peace Facility (APF) was first established in 2003 within the framework of the Cotonou Agreement and is funded by the European Development Fund (EDF), which is outside the general budget of the Union. The APF has become one of the key instruments to implement the Africa-EU cooperation on peace and security. The APF's financial resources for the period 2014-2016 are severely stretched. At the current rate of use, they will be depleted before the end of the period. Resources for the period 2017-2018 should also be able to respond to the continuing needs and demands from the African Union to address ongoing and emerging security crises in Africa, as well as unforeseen circumstances. The predictability and sustainability of the financing of the APF needs to be ensured. APF financial needs up to end 2018 are currently estimated at EUR 685 million.

The Political and Security Committee (PSC) and the Committee of the Permanent Representatives (Coreper) of the Council have discussed the financial sustainability of the APF to ensure financing up to 2018 on the basis of Commission proposals. In its meeting of 18 May, the Coreper endorsed a compromise tabled by the Presidency to use a combination of funds from the 10th and 11th EDFs.

The objective of this draft proposal for a Council decision is to obtain the authorisation from the Council to use decommitted funds from the 10th EDF to replenish the African Peace Facility with an additional amount up to EUR 491.38 million, of which EUR 475 million will contribute to the financing of the APF needs up to end 2018 and EUR 16.38 million will cover the support expenditure incurred by the Commission. To complement these funds from the performance reserve (‘réserve non-mobilisable’), additional funds will be mobilised for the APF from the 11th EDF reserves (EUR 100 million from the Intra-ACP reserve subject to prior approval of the African Union request by the ACP Committee of Ambassadors and EUR 110 million from the National Indicative Programmes / Regional Indicative Programmes (NIP/RIP) reserve).

•Consistency with existing policy provisions in the policy area

The APF is one of the key instruments for implementing Africa-EU cooperation on peace and security under the Joint Africa-EU Strategy adopted in Lisbon in 2007. At the 4th Africa-EU Summit in 2014, peace and security was reaffirmed as one of the five priority areas for the implementation of the Joint Strategy. As a follow-up to the Council conclusions on Common Security and Defence Policy (CSDP) of 18 May 2015, the European External Action Service (EEAS) and Commission services would assess the potential of Union instruments of addressing capacity building in support of security and development (CBSD), including the feasibility of an adaptation of the APF to address its limitations. In the meantime, it is important that the APF continues to deliver and contribute to the peace and security policy objectives of the EU. This proposal, by contributing to a continuation of the APF activities until 2018, will ultimately also contribute to serve the Sustainable Development Goals (SDG), in particular SDG 16 "Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels". The APF is normally financed from the Intra-ACP envelope of the EDF. The activities financed by the additional funds allocated to the APF from the performance reserve ('réserve non-mobilisable') will remain in line with the general and APF specific objectives laid down in the Intra-ACP strategy. The additional funds will be used in accordance with the rules and procedures applicable for the 11th EDF. The programming of these funds will be made through a Commission decision to amend the APF 2014-2016 Action Programme and a Commission decision to adopt the forthcoming APF 2017-2018 Action Programme. In both cases, Coreper approval will be required, as foreseen by Article 15 of the 11th EDF Implementation Regulation.

•Consistency with other Union policies

NA

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Article 1(4) of the 11th EDF Internal Agreement. Article 1 (4) of the 11th EDF Internal Agreement requires that the Council adopts its decision by unanimity.

•Subsidiarity (for non-exclusive competence)