[pic] | COMMISSION OF THE EUROPEAN COMMUNITIES |

Brussels, 14.10.2009

COM(2009)543 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2011-2013

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2011-2013

Introduction

The Multi-Annual Indicative Financial Framework (MIFF) for the Instrument of Pre-Accession Assistance (IPA) is designed to provide information on the indicative breakdown of the overall IPA envelope proposed by the Commission in accordance with article 5 of the IPA Regulation (EC) 1085/2006. It acts as the link between the political framework within the enlargement package and the budgetary process. The Multi-Annual Indicative Planning Documents (MIPD) established for each beneficiary country and for the multi-beneficiary programme, through which pre-accession aid is delivered, take into account the indicative breakdown proposed in the MIFF.

The MIFF is based on a rolling three-year programming cycle. Under normal circumstances, a MIFF for years N, N+1 and N+2 will be presented in the last quarter of year N-2 as part of the enlargement package, representing a proposed financial translation of the political priorities set out within the package itself, taking into consideration the Financial Framework. This MIFF is for the years 2011-2013. It indicates the allocation of the envelope for pre-accession assistance by country and by component for these years, and also gives an indication of the multi-beneficiary programme envelope and support expenditure.

As in the previous years, the MIFF is published based on the current status of the countries concerned and so does not at this stage pre-empt any decisions on: the status of countries that have submitted an application for membership (Montenegro, Albania and Iceland); a likely date of accession for any candidate country; or the inclusion of Iceland in the IPA Regulation[1]. If any significant amendments to this MIFF are needed in the light of such events taking place before the next annual publication of the MIFF in autumn 2010, the Commission will publish an amended version at the appropriate time. Once a candidate country accedes to the EU, any pre-accession funds provisionally allocated to that country from the year of accession onwards will no longer be available for this new Member State.

The overall political priorities for pre-accession are set out in the Accession and European Partnerships, the annual progress reports and the enlargement strategy paper contained in the enlargement package presented to the Council and European Parliament each year.

Strategic Financial Programming

1. Allocation of funds between countries

The starting point for allocations in 2007 was a commitment by the Commission to ensure that no beneficiary country would receive less in 2007 than they did in 2006 and furthermore that Bosnia and Herzegovina and Albania should receive no less than the annual average of the funding each received between 2004 and 2006. This latter point reflected the fact that the funding for these countries was frontloaded in 2004. In the first two years of IPA, the implementation of commitment appropriations was close to a 100 % (including appropriations carried over to the following year which were fully committed).

The figures for 2008 onwards have been calculated on the basis of per-capita allocations which have been quoted in the past as a proxy for needs and impact. Against this measure, the per capita levels for each of the potential candidates of the Western Balkans increase during the course of the current financial framework to above the 2004-2006 per-capita average of 23 € (in 2004 prices) received under CARDS. For Montenegro, the per capita levels of funding are higher than for the other potential candidate countries, reflecting a minimum level of funding needed for adequate administrations, irrespective of the size of the country. The global breakdown of funds in between countries has been respected with the exception of Kosovo[2] which received increased IPA funding. In 2008, € 60 million were granted by the budget authority as part of a wider mobilisation of new funds to support the stability and development of Kosovo. This was supplemented by a transfer of a further € 60 million from unused macro-financial assistance (MFA) appropriations. In 2009, an additional €40 million has been committed as a follow up of the Donor's conference which took place in July 2008.

For Croatia and the former Yugoslav Republic of Macedonia, as candidate countries, a level of over 30 € per capita (in 2004 prices) is envisaged. This level is maintained across the period for Croatia. For the former Yugoslav Republic of Macedonia, the funding in per capita terms continues to increase, reflecting a minimum level of funding needed for building adequate administrations, irrespective of the size of the country.

For Turkey, taking into account the size and absorption capacity of the country, there is a gradual increase in per-capita levels of assistance over the period 2007-2013.

2. Allocations between components

IPA is delivered through the following five components: I – Transition and Institution Building; II – Cross-border cooperation; III – Regional Development; IV – Human Resources Development; and V – Rural Development.

Component I, Transition Assistance and Institution Building, covers all institution building actions and the investments related to the acquis communautaire ; it helps beneficiary countries build up administrative and judicial capacity and addresses, according to priority, cooperation measures not expressly covered by other components.

Component II, Cross-Border Cooperation, supports cross-border activities among beneficiary countries and between beneficiary countries and Member States; it also covers the participation of IPA beneficiaries in ERDF trans-national and interregional co–operation programmes and in ENPI sea basins programmes, as appropriate.

Component III, Regional Development, is accessible to candidate countries and emulates, to the greatest extent possible, the ERDF and Cohesion Fund, thereby giving to the beneficiary countries the highest possible approximation to Structural Funds implementation under External Aid rules.

Component IV, Human Resources Development , accessible to candidate countries, prepares them for the programming, implementation and management of the European Social Fund, in the framework of the European Employment Strategy.

Component V, Rural Development, helps the candidate countries prepare for post-accession EU-funded rural development programmes by implementing pre-accession assistance through systems which are as similar as possible to those required post accession.

In determining the allocations between components, due account has been taken of the readiness of the decentralised management systems necessary for the implementation of components III, IV and V in the current candidate countries as well as the need for component II funding as it relates to cross-border cooperation with Member States to match that of the equivalent ERDF funding from heading 1b.

3. Other Allocations

Support expenditure

This envelope covers the administrative costs directly linked to the implementation of IPA. In 2007, 2008 and 2009 it also includes the administrative costs for the phasing out of previous pre-accession funding, including for Bulgaria and Romania.

Multi-beneficiary programme allocations

The multi-beneficiary programmes under component I are designed to complement the National Programmes and to strengthen multi-lateral relations in the Western Balkans and Turkey. The strategy focuses on areas identified as crucial for European integration and stability in the region. Programmes with a regional impact, and / or those which can benefit from economies of scale or scope if implemented horizontally across a number of beneficiary countries, are funded under this envelope.

Multi-beneficiary programmes support, among other things, the Regional School for Public Administration, the Central European Free Trade Agreement (CEFTA), the Regional Cooperation Council (RCC) and the new Civil Society Facility. Institution building is supported via the TAIEX instrument, and allocations are made for audits and evaluation of regional and national programmes, as well as for information and communication activities. Investment needs for SMEs, energy efficiency and infrastructure development, delivered in close collaboration with the European Investment Bank and other International Financial Institutions (IFIs), will continue to be supported with a substantial part of the regional and horizontal allocation. This support will be aligned with the discussions on the Infrastructure Initiative in the context of the new Western Balkan Investment Framework, which aims at enhancing the coordination and cooperation among the various initiatives sponsored by donors and IFIs actively engaged in the Western Balkans. Another priority is education, for which the allocation for scholarships will increase.

From 2010, part of component II, namely the participation of countries in ERDF trans-national programmes " Mediterranean" and "South-East Europe" will also be implemented on a multi-beneficiary basis for ease of implementation.

Presentation of the figures

The following table provides the above figures in current prices and in euros. It shows the allocations by country and by component, as well as for the multi-beneficiary programme and support expenditure. The final commitment figures for 2007 and 2008 as well as updated figures for 2009 and 2010 are included for ease of reference.

Multi-Annual Indicative Financial Framework: Breakdown of the Instrument for Pre-Accession Assistance envelope for 2011-2013 into allocations by country and component

Component | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

CROATIA |

Transition Assistance and Institution Building | 49,611,775 | 45,374,274 | 45,601,430 | 39,483,458 | 39,959,128 | 40,872,310 | 38,513,885 |

Cross-border Co-operation | 9,688,225 | 14,725,726 | 15,898,570 | 15,601,136 | 15,869,158 | 16,142,542 | 16,698,384 |

Regional Development | 45,050,000 | 47,600,000 | 49,700,000 | 56,800,000 | 58,200,000 | 59,348,000 | 62,000,000 |

Human Resources Development | 11,377,000 | 12,700,000 | 14,200,000 | 15,700,000 | 16,000,000 | 16,040,000 | 18,000,000 |

Rural Development | 25,500,000 | 25,600,000 | 25,800,000 | 26,000,000 | 26,500,000 | 27,268,000 | 27,700,000 |

TOTAL | 141,227,000 | 146,000,000 | 151,200,000 | 153,584,594 | 156,528,286 | 159,670,852 | 162,912,269 |

FORMER YUGOSLAV REPUBLIC OF MACEDONIA |

Transition Assistance and Institution Building | 41,641,613 | 41,122,001 | 39,328,499 | 36,317,068 | 28,803,410 | 28,207,479 | 27,941,228 |

Cross-border Co-operation | 4,158,387 | 4,077,999 | 4,371,501 | 5,067,526 | 5,124,876 | 5,183,373 | 5,243,041 |

Regional Development | 7,400,000 | 12,300,000 | 20,800,000 | 29,400,000 | 39,300,000 | 42,300,000 | 51,800,000 |

Human Resources Development | 3,200,000 | 6,000,000 | 7,100,000 | 8,400,000 | 8,800,000 | 10,380,000 | 11,200,000 |

Rural Development | 2,100,000 | 6,700,000 | 10,200,000 | 12,500,000 | 16,000,000 | 19,000,000 | 21,028,000 |

TOTAL | 58,500,000 | 70,200,000 | 81,800,000 | 91,684,594 | 98,028,286 | 105,070,852 | 117,212,269 |

Component | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

TURKEY |

Transition Assistance and Institution Building | 256,702,720 | 256,125,297 | 239,550,810 | 211,312,664 | 228,620,919 | 233,900,336 | 238,325,843 |

Cross-border Co-operation | 2,097,280 | 2,874,709 | 3,049,190 | 9,587,336 | 9,779,081 | 9,974,664 | 10,174,157 |

Regional Development | 167,500,000 | 173,800,000 | 182,700,000 | 238,100,000 | 293,400,000 | 367,805,000 | 378,000,000 |

Human Resources Development | 50,200,000 | 52,900,000 | 55,600,000 | 63,400,000 | 77,600,000 | 89,930,000 | 96,000,000 |

Rural Development | 20,700,000 | 53,000,000 | 85,500,000 | 131,300,000 | 172,500,000 | 197,890,000 | 213,000,000 |

TOTAL | 497,200,000 | 538,700,006 | 566,400,000 | 653,700,000 | 781,900,000 | 899,500,000 | 935,500,000 |

ALBANIA |

Transition Assistance and Institution Building | 54,318,790 | 62,117,756 | 71,377,079 | 82,711,421 | 84,301,650 | 85,987,683 | 87,446,037 |

Cross-border Co-operation | 6,681,210 | 8,582,244 | 9,822,921 | 9,973,173 | 10,126,636 | 10,283,169 | 10,666,232 |

TOTAL | 61,000,000 | 70,700,000 | 81,200,000 | 92,684,594 | 94,428,286 | 96,270,852 | 98,112,269 |

BOSNIA AND HERZEGOVINA |

Transition Assistance and Institution Building | 58,136,394 | 69,854,783 | 83,892,254 | 100,688,099 | 102,681,861 | 104,673,499 | 106,870,228 |

Cross-border Co-operation | 3,963,606 | 4,945,217 | 5,207,746 | 4,696,495 | 4,746,425 | 4,797,353 | 4,942,041 |

TOTAL | 62,100,000 | 74,800,000 | 89,100,000 | 105,384,594 | 107,428,286 | 109,470,852 | 111,812,269 |

Component | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

MONTENEGRO |

Transition Assistance and Institution Building | 27,490,504 | 28,112,552 | 28,632,179 | 29,238,823 | 29,843,599 | 30,446,471 | 30,996,035 |

Cross-border Co-operation | 3,909,496 | 4,487,448 | 4,667,821 | 4,282,690 | 4,310,344 | 4,338,551 | 4,418,687 |

TOTAL | 31,400,000 | 32,600,000 | 33,300,000 | 33,521,513 | 34,153,943 | 34,785,022 | 35,414,722 |

SERBIA |

Transition Assistance and Institution Building | 181,496,352 | 179,441,314 | 182,551,643 | 186,206,679 | 189,956,810 | 193,801,948 | 203,101,005 |

Cross-border Co-operation | 8,203,648 | 11,458,686 | 12,248,357 | 11,751,753 | 11,922,790 | 12,097,244 | 11,630,694 |

TOTAL | 189,700,000 | 190,900,000 | 194,800,000 | 197,958,432 | 201,879,600 | 205,899,192 | 214,731,699 |

KOSOVO |

Transition Assistance and Institution Building | 68,300,000 | 184,700,000 | 106,100,000 | 64,484,594 | 65,828,286 | 67,070,852 | 70,712,269 |

Cross-border Co-operation | 0 | 0 | 0 | 2,815,406 | 2,871,714 | 2,929,148 | 2,987,731 |

TOTAL | 68,300,000 | 184,700,000 | 106,100,000 | 67,300,000 | 68,700,000 | 70,000,000 | 73,700,000 |

TOTAL COUNTRY PROGRAMMES |

1,109,427,000 | 1,308,600,006 | 1,303,900,000 | 1,395,818,321 | 1,543,046,687 | 1,680,667,622 | 1,749,395,497 |

Component | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013 |

TOTAL COUNTRY PROGRAMMES |

1,109,427,000 | 1,308,600,006 | 1,303,900,000 | 1,395,818,321 | 1,543,046,687 | 1,680,667,622 | 1,749,395,497 |

MULTI-BENEFICIARY PROGRAMMES |

Transition Assistance and Institution Building | 108,980,000 | 135,700,000 | 166,055,000 | 138,967,000[3] | 173,460,000 | 168,860,000 | 183,845,477 |

Cross-border Co-operation | 0 | 0 | 0 | 4,921,679 | 5,293,313 | 5,672,378 | 6,059,026 |

SUPPORT EXPENDITURE |

44,793,000 | 51,950,000 | 47,648,000 | 52,993,000 | 75,000,000 | 80,500,000 | 84,500,000 |

GRAND TOTAL |

1,263,200,000 | 1,496,250,006 | 1,517,603,000 | 1,592,700,000 | 1,796,800,000 | 1,935,700,000 | 2,023,800,000 |

Figures are in euros, current prices

[1] An amendment to Annex II of IPA Regulation (EC) 1085/2006 for this purpose is under preparation.

[2] Under United Nations Security Council Resolution 1244/99

[3] This includes a reduction of ¬ 29 million for the food security facility which will be paid back in 2011 (¬ 14 million), 2012/2006 for this purpose is under preparation.

[4] Under United Nations Security Council Resolution 1244/99

[5] This includes a reduction of €29 million for the food security facility which will be paid back in 2011 (€14 million), 2012 (€6 million) and 2013 (€9 million). The funds paid back in these years are also included in the table.