Proposal for a Regulation of the Council establishing an Instrument for Stability
Date: 2004-09-29
Institutions: European Commission
Subjects: EU aid, EU relations, foreign policy, stability programme

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.9.2004 
COM(2004) 630 final 

2004/0223 (CNS) 

Proposal for a 

REGULATION OF THE COUNCIL 

establishing an Instrument for Stability 

(presented by the Commission) 

EN 

   EN 

 
 
 
  
EXPLANATORY MEMORANDUM 

The rationale for the Instrument for Stability within the new architecture for the Community 
external  assistance  instruments  is  set  out  in  the  Communication  from  the  Commission 
accompanying this proposal. 

The  proposal  is  based  on  Article  308  of  the  Treaty  establishing  the  European  Community, 
coupled with Article 203 of the Treaty establishing the European Atomic Energy Community. 
The Euratom legal base is required in order to cover the nuclear safety aspects of the proposal. 
The civilian aspects of crisis response would normally come within the scope of Articles 179 
and  181a  of  the  EC  Treaty.  However,  the  provisions  relating  to  the  financing  of  peace 
keeping, in particular, while clearly contributing to the objectives of Articles 179 and 181a, 
justify  a  legal  basis  in  Article  308  of  the  Treaty.  Moreover,  Articles  179  and  181a  are  not 
legally compatible with Article 203 of the Euratom Treaty.  

TITLE I – OBJECTIVES 

Article 1 
 General objectives and scope 

Article  1  defines  the  general  objectives  of  the  Regulation  and  its  geographic  scope.  The 
Regulation will apply to all third countries and territories. 

Article 2 
Purpose 

The  Regulation  provides  for  the  delivery  of  financial,  economic  and  technical  assistance  in 
order to address three distinct issues: 

a) 

the provision of an effective and integrated response to crises and threats to human 
rights,  democracy  and  the  rule  of  law,  with  the  overall  aim  of  aiding  the 
establishment or re-establishment of the conditions necessary to permit the effective 
implementation of the Community's development and economic cooperation policies, 
its neighbourhood policy and its pre-accession strategy. 

The provisions of the Regulation in this regard have been developed in the light of 
the experience of the implementation of the Rapid Reaction Mechanism, the Africa 
Peace  Facility,  the  Regulation  concerning  action  against  anti-personnel  landmines 
and  the  European  Initiative  for  Human  Rights  and  Democracy,  as  well  as  the  vast 
experience  of  crisis  response  under  the  existing  ‘geographic’  financing  instruments 
and  international  best  practice.  This  article  establishes  a  direct  link  between  the 
delivery  of  assistance  in  crisis  and  the  pursuit  of  the  Community's  development, 
economic cooperation and human rights policies. With the current exception of some 
elements of peace-support operations, most assistance delivered will qualify as DAC 
eligible. 

The  Regulation  recognises  that  certain  measures,  which  are  relevant  to  crisis 
response,  such  as  work  addressing  the  problems  of  anti-personnel  mines  action, 

EN 

2 

   EN 

 
while  essential  for  ensuring  the  effective  conditions  for  development,  may  be 
delivered through strategic programmes, as well as in response to crises. 

Humanitarian  aid  cannot  be  delivered  under  this  Regulation  (see  Article  13). 
Community  humanitarian  aid  will  continue  to  be  delivered  exclusively  under  the 
provisions of Regulation (EC) 1257/96. The Regulation requires the Commission to 
ensure  the  complementarity  of  Community  humanitarian  aid  and  the  emergency 
response delivered under the Instrument for Stability; 

b) 

assistance to further the cooperation between the EU and third countries in relation to 
global and regional trans-border challenges affecting the security of the citizen. 

The  Regulation  seeks  to  ensure  that  the  Community  can  address  a  number  of  key 
challenges  in  the  mutual  interest  of  the  Community  and  the  partner  country.  The 
Regulation focuses on efforts to combat organised crime, terrorism and other trans-
national  threats  to  the  rule  of  law,  protection  of  strategic  infrastructure  and  major 
unexpected  threats  to  public  health.  Actions  adopted  under  the  Instrument  for 
Stability  will  be  complementary  to  those  adopted  under  the  three  policy-driven 
instruments  under  normal  conditions.  The  added  value  provided  by  the  current 
instrument will be the possibility for rapid and concerted global action, for instance 
addressing the financing of terrorism, money laundering or tax fraud, and the ability 
to promote issues of particular concern to the Community and to address issues that 
partner  countries  may  find  difficult  to  prioritise  in  the  context  of  the  policy 
framework guiding the three new Community policy instruments; 

c) 

Help in safeguarding the population against critical technological threats and combat 
the proliferation of weapons of mass destruction. 

The provisions of the Regulation in this respect build upon established Community 
practice  in  the  field  of  nuclear  safety  and  will  enable  the  Community  to  support 
programmes  tackling  the  new  security  challenges  coming  from  the  possible  misuse 
of materials, equipment or technologies related to weapons of mass destruction and 
their delivery systems. This would, inter alia, help to ensure that the Community can 
meet its obligations under the G8 Global Partnership against the spread of weapons 
of  mass  destruction  and  related  materials.  Assistance  in  this  respect  will  address 
issues that can be dealt with in the civilian domain and which do not have military or 
defence  implications.  By  way  of  illustration  such  measures  might  include 
establishing 
infrastructure  around  nuclear/chemical  weapons 
destruction  plants:  (access  roads  or  railroads,  electricity/water/gas  supplies,  but  not 
the  weapons  decommissioning  itself);  support  for  environmental  monitoring  and 
public  information;  handling  of  the  toxic  residue  resulting  from  decommissioning; 
reconversion  of  former  chemical  weapons  plants  into  civil  facilities;  civilian 
retraining;  support  for  the  development  of  effective  export  control  of  dual  use 
materials  and  support  for  specific  border  security  measures  to  prevent  the  illicit 
trafficking of WMD related materials. 

the  supporting 

The  inclusion  of  nuclear  safety  within  the  present  Regulation  (rather  than  in  the 
geographic  policy-driven  instruments)  is  necessary  given  that  such  support  may  be 
required in several regions (e.g. the countries of the former Soviet Union will now be 
covered  by  both  European  Neighbourhood  and  Partnership  Instrument,  for  Russia 
through to the Caucasus, and Development Cooperation and Economic Cooperation 

EN 

3 

   EN 

 
Instrument, for Central Asia). It is also important to ensure a full coherence between 
the  work  to  be  done  in  relation  to  nuclear  safety  and  that  in  relation  to  nuclear 
safeguards, with its security implications - this can best be handled within the context 
of one instrument. Finally, the legal constraints arising from the need to use Article 
203  of  the  Euratom  Treaty  as  a  legal  base  in  relation  to  nuclear  safety,  and  the 
incompatibility  of  this  Article  with  Articles  179  or  181a  of  the  EC  Treaty,  make  it 
necessary to concentrate all such activities under one instrument, using Article 203 of 
the EC Treaty and Article 308 of the EC Treaty. 

d) 

The Instrument for Stability also provides a basis to promote international action in 
support  of  the  general  objectives  of  the  Regulation,  including  research  and  the 
training of civilian experts for deployment on EU crisis management missions. 

The provisions of Article 2 represent essentially a codification and consolidation of 
Community  competence  established  in  an  ad  hoc  and  inconsistent  manner  in  the 
existing  geographic  and  sectoral  Community  financing  instruments.  They  build  on 
the  approach  pioneered  under  the  Cotonou  agreement,  which  provides  an  effective 
and integrated framework through which the EC can address not only development 
but also security and peace building and peace operations with partner countries. 

Article 3 
Other initiatives 

This  article  is  intended  to  provide  the  flexibility  to  allow  the  Community  to  respond  in  a 
timely way to future global challenges to stability and security that cannot be anticipated at 
this  time.  Assistance  can  be  provided  for  under  this  Regulation  where  it  responds  to  the 
established policy of the Council or commitments entered into by the EC. Before committing 
any  funds  to  such  initiatives  the  Commission  is  required  to  adopt  policy  framework,  which 
shall first be submitted to the management committee (see Article 9). 

TITLE II - PROGRAMMING AND ALLOCATION OF FUNDS 

Article 4 
Measures and programmes 

This article describes the three mechanisms through which support will be delivered under the 
instrument. Exceptional assistance measures and interim programmes are intended to respond 
to crisis situations. Multi-annual programmes will address long-term issues in the context of 
stable conditions for cooperation. 

The article contains provisions intended to ensure the complementarity of assistance delivered 
under  the  Instrument  for  Stability  and  assistance  delivered  under  the  three  policy-driven 
instruments. Thus, multi-annual programmes financed under the Instrument for Stability may 
be  based  on  country  or  regional  strategies  adopted  in  the  context  of  the  Integrated  Pre-
Accession  Instrument,  the  Development  and  Economic  Cooperation  Instrument  and  the 
European  Neighbourhood  Instrument.  This  establishes  a  single  strategic  programming 
bridging  the  core  policy  instrument  and  the  added-value  elements  of  the  Instrument  for 
Stability. The Commission may, however, also adopt specific regional or thematic strategies 

EN 

4 

   EN 

 
under this instrument. This is intended to cover areas of cooperation that cannot be adequately 
addressed within the framework of the strategies adopted under the other external financing 
instruments (either because of the nature of the issue or its geographic scope). Such strategies 
are adopted after consultation with the management committee.  

The article also contains provisions to ensure better integration of Community measures and 
measures  adopted  by  the  Council  under  the  Common  Foreign  and  Security  Policy.  This  is 
particularly  important  for  the  effectiveness  and  impact  of  EU  civilian  crisis  management 
operations,  which  often  present  aspects  coming  under  both  CFSP  and  Community 
responsibility. These provisions are further developed in Articles 5 (see below), 10 (decision 
making) and 19 (rules of participation and origin). 

Article 5 
Special provisions relating to exceptional assistance measures and interim programmes 

This article sets out further specific provisions relating to exceptional assistance measures and 
interim  programmes.  Exceptional  assistance  measures  are  modelled  on  existing  provisions 
under  the  EC  Rapid  Reaction  Mechanism,  with  three  important  innovations  designed  to 
improve  the  linkages  with  the  overall  EU  response  and  quality  and  coherence  of  follow-up 
measures.  First,  the  provisions  on  informing  the  Council  are  strengthened  by  ensuring  a 
constant dialogue with it before measures are adopted. This dialogue will be underpinned by 
the establishment  of an  information exchange  system,  modelled  on  the successful precedent 
established  under  the  existing  Humanitarian  Aid  Regulation.  Second,  the  adoption  of 
exceptional  assistance  measures  triggers  a  new  obligation  to  provide,  within  9  months,  a 
report  containing  a  strategic  overview  of  the  planned  Community  response  across  the  full 
range of its instruments. This report will place the Community response in the context of the 
overall international response and also identify measures to ensure coherence between EC and 
CFSP  actions.  Third,  the  adoption  of  exceptional  assistance  measures  may  now  trigger  the 
adoption of an 'interim response programme', which will build on the exceptional assistance 
measures  and  work  towards  the  resumption  of  the  normal  conditions  for  the  delivery  of 
assistance. The interim response programme will be submitted to the consultative committee, 
and  should  ensure  effective  bridging  between  measures  adopted  under  the  Instrument  for 
Stability and those adopted under the principle policy-driven instruments.  

Article 6 
Special provisions applicable to peace-support operations 

This  article  contains  measures  that  recognise  the  particular  political  sensitivity  of  peace-
support operations and the need to ensure that decisions are taken which are consistent with 
the  political  orientations  developed  in  the  Council.  Moreover,  in  order  to  promote  close 
linkages  between  Community  peace-support  operations  and  the  military  and  civilian 
capacities that can be mobilised under Title V of the Treaty on European Union, this article 
establishes  a  requirement  on  the  Commission  to  draw  to  the  attention  of  the  Council  any 
complementary measures that it may consider useful for adoption under the CFSP. 

As under the Africa Peace Facility, UN endorsement in broad terms would be needed before 
launching  any  such  operation,  operations  would  be  based  on  an  agreement  with  a  regional 
organisation  and  the  country  of  operation  and  no  direct  financing  of  EU  military  activity 
would be permitted (see Article 13(2)). 

EN 

5 

   EN 

 
The  financing  of  military  operations  of  third  parties  will  create  a  responsibility  to  ensure 
independent  monitoring  of  the  conduct  of  forces.  Under  this  Article  the  Commission  is 
required to establish appropriate monitoring procedures. 

Article 7 
Multi-annual programmes 

This article sets out the basic requirements of the strategy papers specific to this instrument 
(see Article 4). 

Article 8 
Adoption of programming documents 

Strategy  papers  will  be  submitted  to  a  management  committee  for  opinion  before  adoption. 
Interim programmes are to be submitted to an advisory committee. 

TITLE III - IMPLEMENTATION 

Title III addresses a number of procedural issues that need to be addressed under the terms of 
the  Financial  Regulation.  The  provisions  of  Title  III  are  broadly  harmonised  across  the 
European  Neighbourhood  Instrument, 
the  Development  and  Economic  Cooperation 
Instrument  and  this  Regulation.  Differences  between  the  texts  reflect  the  specific 
characteristics of the individual external assistance instruments. 

Article 10 
Financing decisions 

Article  10  provides  that  Commission  financing  decisions,  other  than  those  concerning 
exceptional measures and interim programmes, will take the form of country and region-based 
action  programmes  adopted  on  an  annual  basis.  This  is  in  line  with  the  new  principles 
incorporated  into  the  Community's  most  recent  Regulations.  The  committee  procedure  will 
not be necessary for action programmes resulting from decisions taken by the Commission on 
the  basis  of  multi-annual  programming  documents  (i.e.  strategy  papers  and  multi-annual 
indicative programmes for partner countries and regions and thematic strategy papers) which 
have  already  been  approved  by  the  Member  States  in  the  management  committee.  The 
Commission must send the Member States the relevant programme within a month of taking 
its  decision.  The  Commission  may  exercise  its prerogative  to  make  alterations  to  the  action 
programmes  where  necessary.  Contrary  to  usual  practice,  Article  10  enables  measures  not 
covered  by  action  programmes  to  be  adopted  in  the  same  way  as  action  programmes.  This 
may  prove  useful  if  the  Commission  wishes  to  set  up  funding  quickly  but  the  action 
programme has not yet been finalised in its entirety. 

Article 11 
Adoption of special measures not provided for in the strategy papers or multi-annual 
indicative programmes 

This  article  reflects  similar  provisions  of  the  Development  Cooperation  and  Economic 
Cooperation  instrument,  and  is  intended  to  allow  for  a  measure  of  flexibility  to  meet 

EN 

6 

   EN 

 
unforeseen needs that are not related to crisis in the long term assistance delivered under the 
Instrument  for  Stability  (notably  nuclear  safety  and  global  and  regional  trans-border 
challenges).  Under  Article  11  special  measures  not  provided  for  in  the  strategy  papers  or 
multi-annual  indicative  programmes  may  be  adopted  to  deal  with  unforeseen  events. 
Decisions taken by the Commission involving amounts in excess of €15 million, outside the 
scope of multi-annual programming approved by the Member States, are to be subject to the 
committee  procedure.  Special  measures  not  provided  for  in  strategy  papers  or  multi-annual 
indicative  programmes  will  thus  be  adopted  by  the  Commission  in  accordance  with  the 
procedure laid down by Article 3 of Decision 1999/468/EC, i.e. after receiving the opinion of 
the advisory committee composed of the representatives of the Member States and chaired by 
the Commission representative. The Committee must give its opinion on the special measures 
and the Commission must take the utmost account of  it and inform  the  Committee how the 
opinion  has  been  taken  into  account.  The  Commission  may  make  adjustments  to  special 
measures  using  the  same  procedure.  However,  the  Committee's  opinion  need  not  be  sought 
for what are considered minor adjustments, referred to in Article 11(4). 

Article 12 
Eligibility 

Article  12  specifies  which  bodies,  organisations  and  institutions  are  eligible  under  the 
Regulation. It casts the net quite wide, in line with current practice. With regard to eligibility 
for  Community  grants,  Article  12  must  be  read  in  conjunction  with  Article  19,  which  lays 
down the rules for taking part in public-procurement and grant procedures. 

Articles 13 and 14 
Types of measures and support measures 

Without aiming to give an exhaustive list, Article 13 illustrates the kind of measures that can 
be financed under the Regulation, on the basis of current practice. 

Article  14  enables  the  Regulation  to  be  used  to  fund  all  support  measures  required  for  its 
implementation. 

Articles 15 and 16 
Cofinancing and management arrangements 

In  line  with  current  practice  and  the  donors'  wish  to  see  greater  coordination  between 
cooperation measures, Article 15 confirms that parallel or joint cofinancing may be arranged 
for measures. If it is, the Commission may, under Article 3, receive and manage funds from 
Member States (and in particular public and parastatal agencies), and any other non-member 
donor  country  or  international  or  regional  organisation.  This  provision  enables  the 
Commission to operate on an equal footing with other donors.  

Article  16  stipulates  that,  for  managing  of  implementation  of  measures  financed  under  the 
Regulation, the Commission may choose between: 

–  direct centralised management or indirect centralised management by Community agencies 

or bodies set up by the Community (paragraph 2); or 

EN 

7 

   EN 

 
–  indirect  centralised  management  by  Member-State  bodies  (paragraph  3),  in  accordance 
with  Article  54(2)(c)(i)  of  the  Financial  Regulation  that  authorises  this  option  where  the 
basic act provides for it. 

Article 17 
Budget commitments 

Article  17  stipulates  that  budget  commitments  are  to  be  made  by  Commission  decisions 
concerning: the relevant action programmes; special measures not provided for in the strategy 
papers  or  multi-annual  indicative  programmes;  and  support  measures.  Under  the  Article, 
budget commitments can be spread out over a number of years in annual instalments. Article 
76 of the Financial Regulation authorises this where the basic act provides for it. 

Article 18 
Protection of the financial interests of the Community 

Article  18  lays  down  measures  designed  to  protect  the  Community's  financial  interests.  In 
particular, it enables the Community to carry out necessary checks on implementation. 

Article 19 
Participation in public-procurement and grant procedures, and rules of origin 

Article  19  lays  down  the  conditions  of  access  to  public-procurement  and  grant  procedures 
connected to implementation of the Regulation. At present, the provisions are in line with the 
"Proposal  for  a  European  Parliament  and  Council  Regulation  on  access  to  Community 
External  Assistance"1,  the  purpose  of  which  is  to  amend  the  Regulations  that  are  the  legal 
basis for the main Community aid instruments in order to untie more aid. Under Article 19(2), 
when  a  third  country  opens  up  its  public-procurement  and  grant  procedures  to  EC  Member 
States, the Commission may decide to allow that country to take part in Community public-
procurement and grant procedures. Article 19 may be amended in the light of the Council and 
Parliament conclusions when the Regulation comes to be reviewed. 

Given  the  specific  nature  of  the  instrument  and  the  challenges  it  addresses,  as  well  as  the 
accent  it  puts  on  trans-border  challenges,  the  article  permits  the  Commission  to  extend 
eligibility  to  countries  with  traditional  economic,  trade  or  geographical  links  to  the  partner 
country  concerned.  This  provision  is  modelled  on  existing  provisions  within  the  Meda 
Regulation. 

Moreover, eligibility can be extended further in crisis situations necessitating the adoption of 
exceptional assistance measures or interim programmes. In such cases there is an overriding 
need for flexible eligibility procedures and rules of origin and restrictive eligibility rules have 
in  the  past  created  obstacles  to  effective  cooperation  with  other  international  actors  and  the 
speed and efficiency of Community action. 

1 

COM(2004) 313 of 26 April 2004. 

EN 

8 

   EN 

 
                                                 
Articles 20, 21 and 22 
Prefinancing, grants and funds made available to the European Investment Bank or other 
financial intermediaries 

Articles 20, 21 and 22 detail some of the technical points connected with implementing some 
of the measures provided for in Article 13. Notably: 

Article 20 stipulates that interest on prefinancing is to be made available to the beneficiaries. 
The Financial Regulation authorises this where the basic act provides for it. 

Article  21  indicates  that  natural  persons  may  receive  grants,  in  line  with  article  114  of 
Regulation (EC) 1605/2002, which allows this possibility if the legal base provides for it.  

Article 22 stipulates what kind of provisions the Commission must adopt on a case by case 
basis  when  it  decides  to  make  funds  available  to  the  European  Investment  Bank  or  other 
financial intermediaries. 

Article 23 
Evaluation 

Article 23 requires the Commission to conduct regular evaluations of what has been achieved 
by  geographical  and  thematic  policies  and  programmes  and  sector-based  policies,  and  how 
effective programming has been. 

TITLE IV - FINAL PROVISIONS 

Title  IV  sets  out  the  customary  provisions  relating  to  annual  reporting  to  the  European 
Parliament  and  the  Council  on  implementation  of  the  Regulation  (Article  24),  Committee 
procedure (Article 25), review of the Regulation (Article 26), repeal of existing Regulations 
(Article  27)  and  the  date  of  entry  into  force  (Article  28).  The  Regulation  will  apply  from  1 
January 2007. 

The  Regulation  provides  for  both  the  use  of  consultative  committees  and  management 
committees,  in  line  with  the  approach  of  the  Development  and  Economic  Cooperation 
Regulation. Management committees are submitted strategy documents governing long-term 
assistance.  Consultative  committees  are  consulted  where  particular  flexibility  is  required  in 
the design and implementation of the programme. 

EN 

9 

   EN 

 
2004/0223 (CNS) 

Proposal for a 

COUNCIL REGULATION 

establishing an Instrument for Stability 

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Article 
308 thereof, 

Having  regard  to  the  Treaty  establishing  the  European  Atomic  Energy  Community,  and  in 
particular Article 203 thereof, 

Having regard to the proposal from the Commission,2 

Having regard to the opinion of the European Parliament,3 

Whereas: 

(1) 

In order to make the Community’s external aid more effective, a new framework has 
been devised for the planning and provision of assistance. Regulation (EC) No … of 
the  European  Parliament  and  of  the  Council  of  …  will  set  up  a  Pre-Accession 
Instrument  to  cover  Community  assistance  for  candidate  countries  and  potential 
candidate  countries.4  Regulation  (EC)  No  …  of  the  European  Parliament  and  of  the 
Council of … will introduce a European Neighbourhood and Partnership Instrument5. 
Regulation (EC) No … of the European Parliament and of the Council of … is aimed 
at development cooperation and economic cooperation with the other third countries6. 
The  present  Regulation  is  a  complementary  instrument  aimed  at  addressing  crisis 
situations  and  certain  global  long-term  challenges  to  peace  and  stability  and  civilian 
security and safety. 

(2) 

The  Community  is  a  major  provider  of  economic,  financial,  technical,  humanitarian 
and macro-economic assistance to third countries. The promotion of stable conditions 
for  human  development  and  the  promotion  of  human  rights,  democracy  and 
fundamental  freedom  remains  one  of  the  prime  objectives  of  the  full  range  of 
Community external assistance instruments. 

(3) 

The UN Millennium Declaration identifies freedom from violent conflict as a central 
pre-requisite for human development; UN General Assembly resolution 57/337 of July 

2 
3 
4 
5 
6 

OJ C […], […], p. […]. 
OJ C […], […], p. […]. 
OJ L […], […], p. […]. 
OJ L […], […], p. […]. 
OJ L […], […], p. […]. 

EN 

10 

   EN 

 
                                                 
2003 recognises that peace and development are mutually reinforcing, and that respect 
for  human  rights  and  fundamental  freedoms  is  one  of  the  key  elements  for  the 
prevention of armed conflict; thus security and stability and the prevention of violent 
conflict is vital to development and the reduction of poverty, and measures to address 
this  contribute  to  the  achievement  of  the  millennium  development  goals  and  the 
objectives of the agreements concluded between the Community, the Member States 
and third countries; 

The  European  Council  has  committed  the  European  Union  to  becoming  an  effective 
player  in  crisis  management  and  the  prevention  of  violent  conflict.  The  EU 
Programme  for  the  Prevention  of  Violent  Conflicts  underlines  the  “political 
commitment to pursue conflict prevention as one of the main objectives of the EU’s 
external  relations’.  Community  financing  instruments  have  a  major  contribution  to 
make to the this goal and to the development of the Union as a global player. 

The report of the Panel on United Nations Peace Operations called upon regional and 
subregional  organisations  to  develop  peace  keeping  capacity.  In  response  the 
Commission and the Council issued a statement on 17 November 2003 relating to the 
creation  of  the  Africa  Peace  facility.  The  experience  gained  with  the  facility  can 
inform similar arrangements with other regional and sub-regional organisations, in line 
with  the  emphasis  on  effective  multilateralism  set  out  in  the  European  Security 
Strategy. 

The  EU  will  contribute  to  international  peace  and  security  in  accordance  with  the 
principles of the United Nations Charter. 

The  Cotonou  Partnership  Agreement  provides  for  an  integrated  framework  for  both 
security  and  development,  and  the  Instrument  for  Stability  should  build  on  this 
approach. 

Programmes  to  address  the  problems  of  anti-personnel  mines,  small  arms  and  light 
weapons  have  a  development  impact  as  well  as  an  impact  on  human  security  and 
political stability. The 2004 review conference of the Mine Ban Treaty, which entered 
into  force  on  1  March  1999,  adopted  an  action  plan  representing  a  renewed 
commitment to ending the suffering caused by antipersonnel mines. 

Council  Decision  2001/792/EC,  Euratom  of  23  October  2001  establishing  a 
Community  mechanism  to  facilitate  reinforced  cooperation  in  civil  protection 
assistance interventions7 provides for the deployment of civil protection specialists to 
third countries in response to natural or man-made disasters. The Communication from 
the Commission to the European Parliament, the Council, the European Economic and 
Social  Committee  and  the  Committee  of  the  Regions  on  Reinforcing  the  Civil 
Protection  Capacity  of  the  European  Union8  identifies  the  need  for  funds  to  be 
mobilised rapidly in support of such actions. 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

(10)  The European Council Declaration on Combating Terrorism of 25 March 2004 called 
for  counter-terrorist  objectives  to  be  integrated  into  external  assistance  programmes. 
Moreover,  the  EU  Millennium  Strategy  on  the  prevention  and  control  of  organised 

7 
8 

OJ L 297, 15.11.2001, p. 7. 
COM(2004) 200 final. 

EN 

11 

   EN 

 
                                                 
crime,  adopted  by  the  Council  on  27  March  2000,  calls  for  closer  cooperation  with 
third countries. 

(11)  There is a particular need for the EU to be able to take measures which will permit it 
to  support  the  promotion  of  nuclear  safety  and  security  in  third  countries,  to  combat 
the  proliferation  of  weapons  of  mass  destruction,  and  to  address  other  technological 
threats  to  safety  and  security  and  major  unforeseen  public  health  risks  with  a  trans-
national impact. The European Council of 12 December 2003 adopted an EU Strategy 
against proliferation of weapons of mass destruction. 

(12)  There is a need to finance accompanying measures in support of the objectives of this 
Regulation,  including  training,  research  and  support  for  the  implementation  of 
international agreements. 

(13) 

In  order  to  fulfil  international  commitments  entered  into  by  the  Community  and  to 
contribute fully to the external policies of the EU, the Community must ensure that its 
external assistance instruments are fully adapted to these objectives. 

(14)  Experience  has  shown  that  post-crisis  stabilisation  requires  a  sustained  and  flexible 
engagement from the international community, and that special attention needs to be 
given  in  the  first  years  after  a  crisis,  during  which  time  many  countries  return  to  a 
crisis situation. Moreover, partner countries undergoing crisis situations may not have 
the  institutional  capacity  or  governments  enjoying  full  international  political 
recognition to allow them fully to participate in the setting of assistance priorities. 

(15) 

Implementation of programmes of assistance in times of crisis and political instability 
require  specific  measures  to  ensure  flexibility  in  decision-making  and  budget 
allocation,  as  well  as  enhanced  measures  to  ensure  coherence  with  bilateral  aid  and 
mechanisms  for  the  pooling  of  donor  funds,  including  the  delegation  of  public 
authority tasks through indirect centralised management. 

(16)  The resolutions of the European Parliament and Conclusions of the Council following 
the  Commission's  Communications  on  the  Linking  of  Relief,  Reconstruction  and 
Development9  emphasise  the  need  to  ensure  effective  bridging  between  operations 
financed from different EC financing instruments in the context of crisis. 

(17)  Experience  has  shown  that  in  order  to  address  the  above  issues  in  an  effective  and 
timely manner specific financial resources and financing instruments are required that 
can work in a manner complementary to humanitarian aid and long term cooperation 
instruments. 

(18) 

In addition to the measures agreed with partner countries in the context of the policy 
framework for cooperation established under the Integrated Pre-accession Instrument, 
the  European  Neighbourhood  and  Partnership  Instrument  and  the  Development 
Cooperation  and  Economic  Cooperation  Instrument,  the  Community  must  be  able  to 
provide assistance that supports the fundamental values and key policy priorities of the 
European Union and new policy initiatives of the international community relating to 
the  maintenance  of  peace,  political  stability,  and  security  from  organised  crime, 

9 

COM(2001) 153. 

EN 

12 

   EN 

 
                                                 
proliferation  of  weapons  of  mass  destruction  and  related  materials,  major 
technological threats and epidemics. 

(19)  Humanitarian aid shall be delivered solely under Council Regulation (EC) 1257/96. 

(20)  The  2001  “Guidelines  for  strengthening  operational  coordination  between  the 
Community,  represented  by  the  Commission,  and  the  Member  States  in  the  field  of 
external  assistance”  emphasise  the  need  for  enhanced  coordination  of  EU  external 
assistance. 

(21)  The measures necessary for the implementation of this Regulation should be adopted 
in accordance with Council Decision 1999/468/EC of 28 June 1999 laying down the 
the 
procedures 
Commission.10Strategy  documents  governing 
long-term  assistance  should  be 
submitted to a management committee. A consultative committee should be consulted 
where  particular  flexibility  is  required  in  the  design  and  implementation  of  the 
programme. 

implementing  powers  conferred  on 

the  exercise  of 

for 

(22)  The  establishment  of  a  new  instrument  for  stability  makes  it  necessary  to  repeal 
Regulation (EC) No 1724/2001 of the European Parliament and of the Council of 23 
July 2001 concerning action against anti-personnel landmines in developing countries; 
Council  Regulation  (EC)  No  1725/2001  of  23  July  2001  concerning  action  against 
anti-personnel  landmines  in  third  countries  other  than  developing  countries;  Council 
Regulation  (EC)  No  381/2001  of  26  February  2001  creating  a  rapid-reaction 
mechanism; Council Regulation (EC) No 2046/97 of 13 October 1997 on north-south 
cooperation  in  the  campaign  against  drugs  and  drug  addiction;  Council  Regulation 
(EC)  No  2258/96  of  22  November  1996  on  rehabilitation  and  reconstruction 
operations  in  developing  countries;  2001/824/EC,Euratom:  Council  Decision  of  16 
November 2001 on a further contribution of the European Community to the European 
Bank for Reconstruction and Development for the Chernobyl Shelter Fund; Regulation 
(EC)  No  2130/2001  of  the  European  Parliament  and  of  the  Council  of  29  October 
2001  on  operations  to  aid  uprooted  people  in  Asian  and  Latin  American  developing 
countries; Council Regulation (EC) No 1080/2000 of 22 May 2000 on support for the 
United  Nations  Interim  Mission  in  Kosovo  (UNMIK)  and  the  Office  of  the  High 
Representative in Bosnia and Herzegovina (OHR). 

(23)  The objectives of the action to be taken cannot be sufficiently achieved by the Member 
States  acting  alone,  given  the  need  for  concerted  multilateral  response  in  the  areas 
defined  in  this  Regulation,  and  taking  account  of  the  scale  and  global  effects  of  the 
measures  provided  for  herein.  The  Community  may  therefore  adopt  measures  in 
accordance  with  the  principle  of  subsidiarity  as  set  out  in  Article  5  of  the  Treaty 
the  principle  of 
establishing 
proportionality, as set out in that Article, this Regulation does not go beyond what is 
necessary in order to attain these objectives. 

the  European  Community.  In  accordance  with 

(24)  The  Treaties  do  not  provide,  for  the  adoption  of  this  Regulation,  powers  other  than 
those of Article 308 of the Treaty establishing the European Community and Article 
203 of the Treaty establishing the European Atomic Energy Community, 

10 

OJ C184 17.7.1999, p. 23. 

EN 

13 

   EN 

 
                                                 
HAS ADOPTED THIS REGULATION: 

TITLE I – OBJECTIVES 

Article 1 
General objectives and scope 

The Community shall finance measures to promote peace and stability and assure the safety 
and  security  of  the  civilian  population  in  third  countries  and  territories  in  line  with  the 
provisions of this Regulation. 

Such measures shall in particular support the policies of the EU relating to: 

– 

– 

– 

– 

the  delivery  of  an  effective,  timely  and  integrated  response  in  order  to  prevent, 
attenuate or address the consequences of crisis situations, severe political instability 
or violent conflict; 

major  challenges  to  the  establishment  or  preservation  of  the  rule  of  law  in  third 
countries,  including  the  fight  against  regional  or  trans-border  challenges  such  as 
organised crime, trafficking and terrorism; 

major  technological  threats  with  potential  trans-border  impact,  including  the 
promotion  of  nuclear  safety  and  the  fight  against  the  proliferation  of  weapons  of 
mass destruction; 

the  development  of  peace-keeping  and  peace-support  capacity  in  partnership  with 
international, regional and sub-regional organisations. 

This Regulation also establishes a framework for response to new policy initiatives supported 
by the European Union in line with the objectives of the Regulation, complementing actions 
which may be undertaken under the other external financial instruments. 

Article 2 
Purpose 

In  pursuit  of  the  objectives  of  this  Regulation  the  Community  shall  provide  financial, 
economic and technical assistance complementary to any assistance that is normally provided 
for  under  the  Humanitarian  Aid  instrument,  the  Integrated  Pre-accession  instrument,  the 
European Neighbourhood and Partnership instrument and the Development Cooperation and 
Economic Cooperation instrument in order to: 

a) 

help establish or re-establish in third countries the essential conditions necessary to 
permit the effective implementation of the Community's development and economic 
cooperation policies and programmes. This may include inter alia support for: 

– 

civilian measures undertaken by international and regional organisations, state 
and  non-state  actors  designed  to  facilitate  a  peaceful  resolution  of  disputes, 
prevent the emergence or intensification of violent conflict, limit its territorial 
spread, and promote the reconciliation of the parties, including negotiation and 

EN 

14 

   EN 

 
– 

– 

– 

– 

– 

– 

– 

– 

mediation  efforts  and  monitoring  and  implementation  of  peace  or  ceasefire 
agreements between the parties; 

military monitoring and peace-keeping or peace-support operations (including 
those  with  a  civilian  component)  conducted  by  regional  and  sub-regional 
organisations  and  other  coalitions  of  states  operating  with  United  Nations 
endorsement;  measures  to  build  the  capacity  of  such  organisations  and  their 
participating  members  to  plan,  execute  and  ensure  effective  political  control 
over such operations; 

the  mobilisation  of  measures  in  response  to  natural  or  man-made  disasters, 
including  the  use  of  civil  protection  resources  in  the  absence  of  or  to 
complement EU humanitarian assistance; 

the  disarmament,  demobilisation  and  reintegration  of  combatants,  addressing 
the issue of child soldiers and security sector reform; 

measures to address the problems posed by anti-personnel mines, unexploded 
ordnance  or  other  explosive  devices,  small  arms  and  light  weapons  and  other 
harmful remnants of war, including the clearance and destruction of stockpiles, 
assistance to the victims of such devices, and risk-awareness programmes; 

measures  in  response to  crisis  situations  to  safeguard,  re-start  or  establish  the 
conditions under which sustainable economic and social development can take 
place, including inter alia support to the operation of internationally-mandated 
interim administrations and their actions, and other initial measures to establish 
and  support  democratic,  pluralistic  state 
institutions,  effective  civilian 
administration  at  national  and  local  level,  an  independent  judiciary,  good 
governance and law and order; 

measures in response to crisis situations to promote and defend the respect of 
human rights and fundamental freedoms, democratic principles and the rule of 
law,  and  of  the  principles  of  international  law  (including  support  to  special 
national  and 
truth  and  reconciliation 
commissions and mechanisms for the legal settlement of human rights claims 
and  the  assertion  and  adjudication  of  property  rights),  and  to  stimulate  the 
development  of  civil  society  and  its  participation  in  the  political  process, 
including measures to promote an independent and professional media; 

international  criminal 

tribunals, 

in  response 

measures 
the  rehabilitation  and 
to  crisis  situations  for 
reconstruction  of  key  infrastructure,  housing,  public  buildings  and  economic 
assets,  including  essential  productive  capacity,  and  for  the  re-starting  of 
economic activity and the generation of employment; 

such  other  measures  as  may  be  required  to  facilitate  the  effective  transition 
from  measures  in  response  to  crisis  situations  to  the  normal  conduct  of 
cooperation  in  the  framework  of  the  medium  and  long-term  external 
development  and  economic  cooperation  strategies  and  programmes  of  the 
Community. 

EN 

15 

   EN 

 
The  Commission  shall  ensure  that  measures  adopted  are  consistent  with  the 
Community's  overall  strategic  policy  framework  for  the  partner  country,  and  in 
particular with the objectives of its development and economic cooperation policies 
and  programmes  adopted  pursuant  to  Articles  179  and  181a  of  the  Treaty 
establishing the European Community. 

(b) 

further the cooperation between the EU and third countries in relation to global and 
regional trans-border challenges affecting the security and fundamental rights of the 
citizen. 

Such measures may in particular: 

– 

– 

– 

– 

– 

strengthen the capacity of law enforcement and judicial authorities in the fight 
against  terrorism  and  organized  crime,  including  trafficking,  the  effective 
control of illegal trade and transit and other areas of cooperation in the field of 
justice and home affairs; 

strengthen the international framework for the protection of human rights and 
support international action for the promotion of democracy; 

address the security and safety of international transport and energy operations 
and  infrastructure,  including  passenger  and  freight  traffic  and  energy 
distribution; 

respond  to  sudden  major  threats  to  public  health,  such  as  epidemics  with  a 
potential trans-national impact; 

support  the  strengthening  of  national  legal  frameworks  and  international 
cooperation  in  the  above  fields,  including  the  exchange  of  information, 
risk/threat assessment and other relevant forms of cooperation; 

Such  measures  may  be  adopted  under  this  Regulation  where  they  respond  to  an 
urgent  need,  depend  on  delivery  through  global  or  trans-regional  strategies  and 
mechanisms  for  the  sake  of  efficiency  or  effectiveness  and  are  not  otherwise 
implemented  within  the  policy  and  programming  framework  of  the  Regulations  on 
Development  Cooperation  and  Economic  Cooperation,11  European  Neighbourhood 
and Partnership Instrument12 or the Integrated Pre-accession Instrument.13 

(c) 

help  safeguard  countries  and  populations  against  critical  technological  threats,  and 
combat  the  proliferation  of  nuclear,  chemical,  biological  and  radiological  weapons 
and related materials, equipment and expertise. This may inter alia include support 
for: 

– 

the  promotion  of  nuclear  safety,  notably  to  help  promote  transfer  of  safety 
culture, including the safe design, operation and maintenance of nuclear power 
plants or other nuclear installations, the safe transport, treatment and disposal 
of nuclear waste, and the remediation of former nuclear sites; 

11 
12 
13 

OJ L […], […], p. […]. 
OJ L […], […], p. […]. 
OJ L […], […], p. […]. 

EN 

16 

   EN 

 
                                                 
– 

– 

– 

– 

– 

– 

– 

the  establishment  and  implementation  of  nuclear  safeguards,  including  the 
proper accounting and control of fissile materials, the control of illicit traffic in 
potentially  dangerous  materials  and  the  installation  of  modern  logistical, 
evaluation and control equipment; 

the reduction of stockpiles of fissile material or weapons-related chemical and 
biological  agents,  and  the  enhanced  safety  and  security  of  installations 
handling such materials or their precursors; 

the  conversion  of  weapons-related  industries  and  production  facilities  and 
defence-related research programmes to civilian use, including support for the 
conversion  and  alternative  employment  of  weapons-related  scientists  and  for 
remediation of former weapons-related sites; 

the  effective  control  and  detection  of  illicit  traffic  in  potentially  dangerous 
materials, including through the installation of modern logistical evaluation and 
control equipment; 

the  development  and  enforcement  of  effective  export  controls  on  dual-use 
goods; 

the establishment of effective disaster-preparedness, emergency-planning, civil 
protection  and  clean-up  measures  in  relation  to  possible  major  environmental 
incidents,  for  example  in  the  nuclear  sector  or  in  relation  to  other  industries 
where there is a potential for major environmental incidents with international 
implications; 

the  promotion  of  international  cooperation  in  the  above  fields,  including 
exchange  of  information,  risk/threat  assessment  and  other  relevant  forms  of 
cooperation. 

(d) 

promote the ratification, implementation and monitoring of international agreements 
and Treaties, and the development of effective international policies and practices in 
line with the objectives of this Regulation. Such measures may include research and 
analysis, early warning systems, including for the prevention of conflict, and training 
for civilian crisis management. 

Article 3 
Other initiatives 

The Community may adopt measures to support other policy initiatives where such measures 
contribute to the general objectives of this Regulation set out in Article 1 and or respond to 
commitments entered into by the Community has in international fora or established policy of 
the Council. 

EN 

17 

   EN 

 
TITLE II – PROGRAMMING AND ALLOCATION OF FUNDS 

Article 4 
Measures and programmes 

1. 

2. 

3. 

Community measures under this Regulation shall be carried out through exceptional 
assistance measures or interim response programmes, or multi-annual programmes. 

Exceptional  assistance  measures  shall  respond  to  a  situation  of  crisis  or  extreme 
urgency  or  a  threat  to  democracy,  or  the  rule  of  law,  or  human  rights  and 
fundamental  freedoms,  where  the  effectiveness  of  the  measures  is  particularly 
dependent  on  rapid  or  flexible  implementation.  The  Commission  may  also  adopt 
exceptional assistance measures in order to deliver Community measures alongside 
measures  adopted  by  the  Council  under  Title  V  of  the  Treaty  on  European  Union 
relating to the Common Foreign and Security Policy. 

Exceptional  assistance  measures  may  be  followed  by  an  interim  response 
programme.  Interim  response  programmes  shall  consist  of  measures  designed  to 
contribute to the establishment or restoration of the essential conditions necessary for 
normal  implementation  of  the  external  cooperation  programmes  of  the  European 
Union.  They  may,  moreover,  address  situations  of  protracted  political  instability, 
situations  arising  out  of  unresolved  conflicts,  major  post-conflict  challenges  and 
situations  where  the  Community  has  invoked  the  essential  elements  clauses  of 
international  agreements  with  third  countries  or  of  other  basic  acts  governing 
external  assistance,  provided  that  this  is  consistent  with  any  appropriate  measures 
adopted by the Council. 

4. 

Multi-annual  programmes  shall  consist  of  measures  designed  to  address  long-term 
issues in the context of stable conditions for cooperation. Such programmes shall be 
based on: 

a) 

b) 

regional and thematic strategies specific to this instrument adopted in line with 
the provisions of article 7, or 

the  country,  regional  or  thematic  strategies  adopted  under  the  Council 
Regulations  establishing 
the  Development  Cooperation  and  Economic 
Cooperation  Instrument,  the  Integrated  Pre-accession  Instrument,  and  the 
European Neighbourhood and Partnership Instrument.  

Article 5 
Special provisions relating to exceptional assistance measures and interim programmes 

1. 

The Commission shall maintain a constant dialogue with the Council on its planning 
of exceptional assistance measures under this Regulation. It shall take account of the 
approach adopted by the Council both in its planning and subsequent implementation 
of such measures, in the interests of the coherence of EU external action. Where the 
Commission adopts exceptional assistance measures in accordance with Article 4(2) 
above  it  shall  inform  the  Council  forthwith  of  the  nature,  objectives  and  financial 
amounts of the measures adopted. 

EN 

18 

   EN 

 
Within nine months of adopting exceptional measures, the Commission shall provide 
a  report  to  the  Council  and  the  European  Parliament.  This  report  shall  give  an 
overview  of  the  existing  and  planned  Community  response,  including  the 
contribution to be made from other Community financing instruments, the status of 
existing  country  or  regional  strategies  referred  to  in  Article  4(4)b  above,  any 
measures  taken  by  the  Community  to  facilitate  political  dialogue,  and  the 
Community's role within the broader international and multilateral response. It shall 
also  identify  any  specific  measures  it  considers  necessary  to  ensure  coherence 
between  Community  action  and  measures  planned  or  adopted  under  Title  V  of  the 
Treaty on European Union. 

2. 

The Commission may within the period of nine months referred to in the second sub-
paragraph  of  paragraph  1  adopt  a  interim  response  programme,  in  accordance  with 
Article 4(3) above, building on the exceptional measures adopted and paving the way 
for the resumption of normal cooperation if this is possible. 

Where the Commission has conducted an ad hoc revision of its country or regional 
strategies in response to one of the situations described in Article 4(2) or 4(3) above, 
such strategies shall provide the basis for the interim programme. 

Within two years of adopting an interim response programme the Commission shall 
assess whether conditions continue to justify having recourse to financing under this 
Regulation.  In  making  this  assessment  it  will  consider,  in  particular,  whether  the 
country's  assistance  needs  can  now  adequately  be  addressed  within  the  policy 
framework  guiding  the  delivery  of  assistance  under  the  other  Community  external 
assistance  instruments.  The  Commission  shall  report  on  its  conclusions  to  the 
committee referred to in Article 25. 

The  Commission  may  adopt  an  interim  response  programme  without  first  having 
adopted exceptional assistance measures. 

To facilitate the dialogue referred to in paragraph 1 and to enhance the effectiveness 
and  consistency  of  Community  and  national  exceptional  assistance  measures,  the 
Commission may take any measure necessary to promote close coordination between 
its own activities and those of the Member States, both at decision-making level and 
on the ground. To that end, the Member States and the Commission shall operate a 
system for exchange of information. 

Article 6 
Special provisions applicable to peace-support operations 

indirect  centralised  management  by  Member-State  bodies  (paragraph  3),  in 
accordance  with  Article  54(2)(c)(i)  of  the  Financial  Regulation  that  authorises  this 
option  where  the  basic  act  provides  for  it.Measures  providing  support  for  the 
deployment  of  peace  keeping  forces  and  peace  support  operations  as  provided  for 
under  article  2  above,  and  any  accompanying  measures,  shall  be  adopted  as 
exceptional assistance measures. 

Before adopting such measures the Commission shall at an early stage seek the views 
of  Member  States  in  the  competent  bodies  of  the  Council,  also  indicating  any 
complementary measures that it may consider useful for adoption by the Council.  

3. 

1. 

EN 

19 

   EN 

 
 
2. 

3. 

1. 

2. 

3. 

The Commission shall establish that operations are consistent with the principles and 
objectives  of  the  United  Nations,  and  in  particular  that  any  deployment  of  peace-
keeping forces or peace-support operations has received a UN endorsement defined 
in broad terms. Peace enforcement operations shall require a UN mandate. 

The  Commission  shall  establish  procedures  to  ensure  the  effective  independent 
monitoring of the conduct of forces engaged in military monitoring or peace-keeping 
operations  financed  by  the  Community  and  shall  ensure  regular  reporting  to  the 
Council. 

The  Commission  may  on  its  own  initiative  adopt  preparatory  measures  relating  to 
peace-support  operations,  including  fact-finding  missions.  The  Commission  shall 
inform the Council at an early stage before financing any such preparatory measures 
and shall take account of the views of the Council in the subsequent implementation 
of such measures.  

Measures  providing  long-term  support  for  capacity-building  work  in  the  field  of 
military  peace-keeping  shall  be  adopted  as  multi-annual  programmes.  The 
Commission shall keep the Council regularly informed about the implementation of 
such programmes. 

Article 7 
Multi-annual programmes 

Where  the  Commission  adopts  regional  or  thematic  strategy  papers  specific  to  this 
instrument in accordance with Article 4(4)(b) above, these shall be established for a 
period of up to seven years with a view to providing a coherent framework for donor 
and partner-country coordination. 

In  drawing  up  the  strategy  papers  referred  to  in  paragraph  1  the  Commission  shall 
ensure  they  are  consistent  with  strategies  and  measures  adopted  under  Community 
country and regional programmes. In addition, joint consultations shall be carried out 
between  the  Commission,  Member  States  and  other  donors  where  appropriate,  in 
order  to  ensure  that  the  cooperation  activities  of  the  Community  and  the  Member 
States are complementary. Other stakeholders may be associated where appropriate. 

Strategy  papers  shall  be  reviewed  and  revised  as  necessary,  and  normally  at  their 
mid-point. 

Multi-annual  indicative  programmes  may  be  drawn  up  in  connection  with  regional 
strategy  papers.  Indicative  programmes  shall  set  down  the  selected  areas  of 
cooperation  for  financing,  and  define  specific  objectives,  expected  results  and 
performance  indicators.  They  shall  set  out  indicative  financial  allocations  (overall 
and for each priority area, in the form of a range where appropriate).  

The  indicative  programmes  shall  be  updated  as  necessary  taking  into  account  any 
review  of  the  relevant  strategy  papers.  In  exceptional  cases,  adjustment  of  multi-
annual allocations may be applied in the light of special circumstances, such as crisis 
situations or exceptional performance. 

EN 

20 

   EN 

 
 
 
 
 
Article 8 
Adoption of programming documents 

1. 

2. 

The strategy papers and multi-annual indicative programmes referred to in Article 7, 
and any revisions thereof, shall be adopted in accordance with the procedure referred 
to in Article 25 in conformity with the procedure laid down in Article 25(2). 

The interim response programmes referred to in Article 4(3), shall be adopted by the 
Commission in accordance with the procedure foreseen in Article 25(3). 

Those programmes may be extended in accordance with that procedure. 

Article 9 
Adoption of new policy initiatives 

Before adopting measures provided for under article 3, the Commission, acting in accordance 
with  the  procedure  laid  down  in  Article  25(2),  shall  adopt  guidelines  identifying  the  policy 
framework  to  which  the  measures  correspond,  the  financial  means  to  be  allocated  and  their 
complementarity with assistance delivered under other EC external aid instruments in support 
of such objectives. 

TITLE III - IMPLEMENTATION 

Article 10 
Financing decisions 

1. 

2. 

3. 

4. 

5. 

For  measures  to  be  undertaken  in  accordance  with  Articles  5,  6.1,  or  6.2  the 
Commission  shall  adopt  the  necessary  financing  decisions.  The  Commission  shall 
inform the Committee within 72 hours of the decisions taken. 

For  measures  to  be  undertaken  in  accordance  with  Articles  6(3)  or  7,  the 
Commission  shall  adopt  annual  Action  Programmes  on  the  basis  of  the  strategy 
papers referred to in Article 4(4). 

Exceptionally,  for  instance  in  cases  where  an  action  programme  has  not  yet  been 
adopted, the Commission may, on the basis of the strategy papers and multi-annual 
indicative programmes referred to in Article 7, adopt measures not provided for in an 
action  programme  under  the  same  rules  and  procedures  as  apply  to  action 
programmes. 

The  action  programmes  shall  specify  the  objectives  pursued,  the  fields  of 
intervention, the expected results, the management procedures and the total amount 
of  financing  planned.  They  shall  contain  a  description  of  the  operations  to  be 
financed, an indication of the amounts allocated for each operation and an indicative 
implementation timetable. 

The  Commission  shall  send  the  action  programmes  to  the  Member  States  for  their 
information within one month of adopting its decision. 

EN 

21 

   EN 

 
Article 11 
Adoption of special measures not provided for in the strategy papers or multi-annual 
indicative programmes 

1. 

2. 

3. 

4. 

In  the  event  of  unforeseen  needs  or  circumstances,  the  Commission  shall  adopt 
special  measures  not  provided  for  in  the  strategy  papers  or  multi-annual  indicative 
programmes provided for in Article 4(4). Where the cost of such measures exceeds 
EUR  15  million,  the  Commission  shall  adopt  them  after  consultation  with  the 
committee set up in accordance with Article 25, under the procedure provided for by 
Article 25(3). The committee shall lay down in its rules of procedure special rules on 
consultation  which  shall  enable  the  Commission,  where  necessary,  to  adopt  special 
measures by an emergency procedure. 

Special  measures  shall  specify  the  objectives  pursued,  the  areas  of  activity,  the 
expected results, the management procedures used and the total amount of financing 
planned.  They  shall  contain  a  description  of  the  operations  to  be  financed,  an 
indicative 
indication  of 
implementation timetable. 

the  amounts  allocated  for  each  operation  and  an 

The  Commission  shall  send  the  special  measures  to  the  Member  States  for  their 
information within one month of adopting its decision. 

The  procedure  laid  down  by  Article  25(3)  need  not  be  used  for  amendments  to 
special  measures  such  as  those  making  technical  adjustments,  extending  the 
implementation  period,  reallocating  appropriations  within  the  forecast  budget,  or 
increasing or reducing the size of the budget by less than 20% of the initial budget, 
provided  the  amendments  do  not  affect  the  initial  objectives  set  out  in  the 
Commission Decision. 

1. 

The following shall, inter alia, be eligible for funding under this Regulation: 

Article 12 
Eligibility 

a) 

b) 

c) 

d) 

e) 

partner countries and regions and their institutions; 

decentralised  bodies  in  the  partner  countries,  such  as  regions,  departments, 
provinces and municipalities; 

joint bodies set up by the partner countries and regions and the Community; 

international  organisations,  including  regional  organisations,  UN  bodies, 
departments and missions, international financial institutions and development 
banks, in so far as contribute to the objectives of this Regulation; 

the  following entities and bodies of the Member States, partner countries  and 
regions and any other third country in so far as they contribute to the objectives 
of this Regulation: 

– 

public  and  parastatal  bodies,  local  authorities  or  administrations  and 
consortia thereof; 

EN 

22 

   EN 

 
– 

– 

– 

– 

companies, firms and other private organisations and businesses; 

financial  institutions  that  grant,  promote  and  finance  private  investment 
in partner countries and regions; 

non-state actors as defined in paragraph 2; 

natural persons. 

2. 

traders'  associations,  cooperatives, 

Non-state  actors  eligible  for  financial  support  under  this  Regulation  shall  include: 
non-governmental  organisations,  organisations  representing  indigenous  peoples, 
local  citizens'  groups  and 
trade  unions, 
organisations  representing  economic  and  social  interests,  local  organisations 
(including networks) involved in decentralised regional cooperation and integration, 
consumer  organisations,  women's  and  youth  organisations,  teaching,  cultural, 
research and scientific organisations, universities, churches and religious associations 
and communities, the media and any non-governmental associations and independent 
foundations likely to contribute to the objectives of this Regulation. 

1. 

Community financing may take the following forms: 

Article 13 
Types of measures 

– 

– 

– 

– 

– 

– 

– 

– 

projects and programmes; 

sectoral  or  general  budget  support,  where  the  partner  country’s  arrangements 
for  managing  public  fund  are  sufficiently  transparent,  reliable  and  effective, 
and where proper sectoral or macro-economic policies have been put in place 
by the partner country and approved by its main donors, including international 
financial institutions where applicable; 

sectoral support; 

in  exceptional  cases,  sectoral  and  general  import-support  programmes,  which 
may take the form of (a) sectoral programmes for imports in kind, (b) sectoral 
import  programmes  providing  foreign  currency  to  finance  imports  for  the 
sector in question or (c) general import programmes providing foreign currency 
to finance general imports, covering a wide range of products; 

funds  made  available  to  the  European  Investment  Bank  or  other  financial 
intermediaries  on  the  basis  of  Commission  programmes,  with  a  view  to 
providing loans (to support investment and development of the private sector, 
for example), risk capital (in the form of subordinated or conditional loans) or 
other  temporary  minority  holdings  in  business  capital,  and  contributions  to 
guarantee funds in accordance with Article 22; 

debt-relief programmes; 

grants to fund measures; 

grants to cover operating costs; 

EN 

23 

   EN 

 
– 

– 

– 

– 

funding  for  twinning  programmes  between  public  institutions,  national  public 
bodies or private-law entities with a public-service mission of a Member State 
and those of a partner country or region; 

contributions 
international or regional organisations; 

international  funds, 

to 

in  particular 

those  managed  by 

contributions to national funds set up by partner countries and regions to attract 
joint  financing  from  a  number  of  donors,  or  contributions  to  funds  set  up  by 
one or more donors for the purpose of the joint implementation of operations; 

human  and  material  resources  required  for  effective  administration  and 
supervision of projects and programmes by partner countries and regions. 

2. 

Community assistance shall not be used to finance: 

a. 

b. 

the procurement of arms or ammunition; 

recurrent military expenditure; 

c.  military training for combat operations, other than training in non-combat skills 
required for the participation in complex peace support operations or security 
sector reform; 

d. 

costs  relating  to  the  deployment  of  the  military  forces  of  the  Member  States, 
with  the  exception  of  the  costs  of  military  personnel  deployed  as  advisors  to 
regional or sub-regional organisations or other coalitions of states preparing or 
undertaking  peace  keeping  operations,  and  coming  under  the  operational 
command  of  such  organisations,  and  other  costs  related  to  the  institutional 
development of peace support capacities by third countries. 

Activities covered by Council Regulation (EC) 1257/96 of 20 June 1996 concerning 
humanitarian aid14 and eligible for funding thereunder may not be funded under this 
Regulation; 

Article 14 
Support measures 

information,  awareness-raising, 

Community  financing  may  cover  expenditure  associated  with  the  preparation, 
follow-up,  monitoring,  auditing  and  evaluation  activities  directly  necessary  for  the 
implementation of this Regulation and the achievement of its objectives, e.g. studies, 
meetings, 
training  and  publication  activities, 
expenditure associated with computer networks for the exchange of information and 
any  other  administrative  or  technical  assistance  expenditure  that  the  Commission 
may incur for the management of the programme. It shall also cover expenditure on 
administrative  support  staff  employed  at  Commission  Delegations  to  manage 
projects funded under this Regulation. 

3. 

1. 

14 

OJ L 163, 2.7.1996, p. 6 

EN 

24 

   EN 

 
                                                 
2. 

None of the support measures are necessarily covered by multi-annual programming 
and may therefore be financed outside the scope of strategy papers and multi-annual 
indicative  programmes.  However,  they  may  also  be  financed  under  multi-annual 
indicative  programmes.  The  Commission  shall  adopt  support  measures  not  covered 
by multi-annual indicative programmes in accordance with Article 11. 

Article 15 
Cofinancing 

1. 

Measures  financed  under  this  Regulation  are  eligible  for  cofinancing  from  the 
following, inter alia: 

–  Member States, and in particular their public and parastatal agencies; 

– 

– 

– 

other donor countries and in particular their public and parastatal agencies; 

international  and  regional  organisations,  and  in  particular  international  and 
regional financial institutions; 

companies,  firms,  other  private  organisations  and  businesses,  and  other  non-
state actors referred to in Article 12(2); 

– 

partner countries and regions in receipt of funding. 

In the case of parallel cofinancing, the project or programme is split into a number of 
clearly  identifiable  sub-projects,  which  are  each  financed  by  different  partners 
providing cofinancing in such a way that the end-use of the financing can always be 
identified. In the case of joint cofinancing, the total cost of the project or programme 
is shared between the partners providing the cofinancing and resources are pooled in 
such  a  way  that  it  is  not  possible  to  identify  the  source  of  funding  for  any  given 
activity undertaken as part of the project or programme. 

In the case of joint cofinancing, the Commission may receive and manage funds on 
behalf  of  the  bodies  referred  to  in  the  first  three  indents  of  paragraph  1  for  the 
purpose  of  implementing  joint  measures.  In  this  case,  the  Commission  shall 
implement the measures centrally, either directly or indirectly, by delegating the task 
to  Community  agencies  or  bodies  set  up  by  the  Community.  Such  funds  shall  be 
dealt with as assigned revenue in accordance with Article 18 of Council Regulation 
No 1605/2002. 

Article 16 
Management procedures 

The  measures  financed  under  this  Regulation  shall  be  implementing  in  accordance 
with  the  Financial  Regulation  applicable  to  the  general  budget  of  the  European 
Communities. 

The  Commission  may  decide  to  entrust  tasks  of  public  authority,  and  in  particular 
budget  implementation  tasks,  to  bodies  referred  in  Article  54(2)(c)  of  Regulation 
international  standing,  comply  with 
1605/2002 

they  are  of  recognised 

if 

2. 

3. 

1. 

2. 

EN 

25 

   EN 

 
3. 

1. 

2. 

1. 

2. 

3. 

1. 

internationally recognised systems of management and control, and are supervised by 
public authority. 

In  the  case  of  decentralised  management,  the  Commission  may  decide  to  use  the 
procurement or grant procedures of the beneficiary country or region. 

Article17  
Budget commitments 

Budget  commitments  shall  be  made  on  the  basis  of  decisions  taken  by  the 
Commission in accordance with Articles 10, 11 or 14. 

The legal forms for Community financing shall include: 

– 

– 

– 

– 

financing agreements; 

grant agreements; 

procurement contracts; 

employment contract. 

Article 18 
Protection of the financial interests of the Community 

Any agreements resulting from this Regulation shall contain provisions ensuring the 
protection of the Community's financial interests, in particular with respect to fraud, 
corruption and any other irregularities in accordance with Council Regulations (EC, 
Euratom)  No  2988/1995,  (EC,  Euratom)  No  2185/1996  and  (EC,  Euratom)  No 
1073/1999. 

Agreements  shall  expressly  entitle  the  Commission  and  the  Court  of  Auditors  to 
perform a document audit or an on-the-–pot audit of any contractor or subcontractor 
who  has  received  Community  funds.  They  shall  also  expressly  authorise  the 
Commission  to  carry  out  on-the-spot  checks  and  inspections,  as  provided  for  in 
Regulation (EC, Euratom) 2185/1996. 

All  contracts  resulting  from  the  implementation  of  assistance  shall  guarantee  the 
rights  of  the  Commission  and  the  Court  of  Auditors  under  paragraph  2  during  and 
after the implementation of contracts. 

Article 19 
Rules of participation and origin 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation  shall  be  open  to  all  natural  or  legal  persons  from  Member  States  of  the 
European Community coming within the scope of the Treaties. 

EN 

26 

   EN 

 
2. 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation shall be also open to all natural and legal persons from: 

– 

– 

– 

any country that is beneficiary of the Instrument for Pre-Accession, 

any non-EU Member State of the European Economic Area, and 

any other third country or territory in cases where reciprocal access to external 
assistance has been established. 

In  the  case  of  measures  taken  in  any  third  country  considered  a  Least  Developed 
Country according to the criteria laid down by the OECD, participation in the award 
of procurement or grant contracts shall be open on a global basis. 

In the case of exceptional assistance measures and interim programmes referred to in 
Article 4, participation in the award of procurement or grant contracts shall be open 
on a global basis. 

Participation in the award of procurement or grant contracts, and rules of origin shall 
be open: 

– 

– 

– 

in the case of measures adopted under a thematic strategy of the type defined in 
Article 4(4), to any natural or legal person of a developing country or country 
in transition, as defined by the OECD, and of any other country eligible under 
the thematic programme; 

in the case of measures adopted under a country or regional strategy provided 
for under article 4(4)b, to any natural or legal person eligible according to the 
basic act under which the strategy was adopted; 

in  the  case  of  measures  adopted  under  a  regional  strategy  provided  for  under 
article  4(4)a),  to  any  natural  or  legal  person  from  the  countries  or  territories 
addressed by such strategy. 

Participation  in  the  award  of  procurement  or  grant  contracts  financed  under  this 
Regulation shall be open to international organisations. 

Experts  proposed  in  the  context  of  procedures  for  the  award  of  contracts  need  not 
comply with the nationality rules set out above. 

All supplies and materials purchased under contracts financed under this Regulation 
shall  originate  from  the  Community  or  a  country  eligible  under  paragraphs  2  to  5 
above.  

Participation  by  natural  and  legal  persons  from  third  countries  or  territories  with 
traditional  economic,  trade  or  geographical  links  to  the  partner  country  may  be 
authorised  on  a  case-by-case  basis.  The  Commission  may,  moreover,  in  duly 
substantiated cases authorise the participation of natural and legal persons from other 
countries, or the use of supplies and materials of different origin. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

EN 

27 

   EN 

 
Article 20 
Prefinancing 

Interest  generated  by  prefinancing  payments  to  the  beneficiaries  shall  be  deducted  from  the 
final payment. 

Article 21 
Grants 

In  accordance  with  article  114  of  Regulation  (EC)  1605/2002  natural  persons  may  receive 
grants. 

Article 22 
Funds made available to the European Investment Bank or other financial intermediaries 

The  funds  referred  to  in  the  fifth  indent  of  Article  13(1)  shall  be  managed  by  financial 
intermediaries,  the  European  Investment  Bank  or  any  other  bank  or  organisation  capable  of 
managing  them.  The  Commission  must  adopt  implementing  provisions  for  this  article,  on  a 
case by case basis to cover risk-sharing, the remuneration of the intermediary entrusted with 
the task of implementation, the use and recovery of interest on the fund and the closure of the 
operation. 

Article 23 
Evaluation 

The Commission shall regularly evaluate the results of geographical and thematic policies and 
programmes  and  of  sectoral  policies  and  the  effectiveness  of  programming  in  order  to 
ascertain whether the objectives have been met and enable it to formulate recommendations 
with a view to improving future operations. The Commission shall send its evaluation reports 
to the Committee referred to Article 25. 

TITLE IV - TRANSITIONAL AND FINAL PROVISIONS 

Article 24 
Report 

The Commission shall examine progress achieved in implementing the measures undertaken 
pursuant to this Regulation and shall submit to the European Parliament and the Council an 
annual report on the implementation of the assistance. The report shall also be addressed to 
the Economic and Social Committee and the Committee of Regions. The report shall contain 
information relating to the previous year on the measures financed, information on the results 
of  monitoring  and  evaluation  exercises  and the implementation of  budget  commitments and 
payments, broken down by country, region and cooperation sector. 

EN 

28 

   EN 

 
Article 25 
Committee 

1. 

2. 

3. 

4. 

5. 

6. 

The  Commission  shall  be  assisted  in  the  implementation  of  this  Regulation  by  a 
Committee. 

Where  reference  is  made  to  this  paragraph,  Articles  4  and  7  of  Decision 
1999/468/EC  shall  apply.  The  period  provided  for  in  Article  4(3)  of  the  Decision 
shall be 30 days.  

Where  reference  is  made  to  this  paragraph,  Articles  3  and  7  of  Decision 
1999/468/EC shall apply. 

The  committee  shall  be  informed  of  the  decisions  taken  by  the  Commission  under 
Article 10 of this Regulation. 

The committee shall adopt its rules of procedure. 

An observer from the European Investment Bank shall take part in the Committee's 
proceedings with regard to questions concerning the Bank. 

Article 26 
Review 

The Commission shall submit to the European Parliament and the Council, by 31 December 
2011, any proposals concerning the future of this Regulation and any amendments that may 
be necessary. 

1. 

As of 1 January 2007 the following Regulations are repealed: 

Article 27 
Repeal 

– 

– 

– 

– 

– 

Regulation (EC) No 1724/2001 of the European Parliament and of the Council 
of  23  July  2001  concerning  action  against  anti-personnel  landmines  in 
developing countries;  

Council  Regulation  (EC)  No  1725/2001  of  23  July  2001  concerning  action 
against  anti-personnel  landmines  in  third  countries  other  than  developing 
countries;  

Council  Regulation  (EC)  No  381/2001  of 26  February  2001  creating  a  rapid-
reaction mechanism; 

Council  Regulation  (EC)  No  2046/97  of  13  October  1997  on  north-south 
cooperation in the campaign against drugs and drug addiction; 

Council Regulation (EC)  No  2258/96 of  22  November  1996  on  rehabilitation 
and reconstruction operations in developing countries;  

EN 

29 

   EN 

 
– 

– 

– 

2001/824/EC,Euratom:  Council  Decision  of  16  November  2001  on  a  further 
contribution  of  the  European  Community  to  the  European  Bank  for 
Reconstruction and Development for the Chernobyl Shelter Fund; 

Regulation (EC) No 2130/2001 of the European Parliament and of the Council 
of  29  October  2001  on  operations  to  aid  uprooted  people  in  Asian  and  Latin 
American developing countries;  

Council  Regulation  (EC)  No  1080/2000  of  22  May  2000  on  support  for  the 
United  Nations  Interim  Mission  in  Kosovo  (UNMIK)  and  the  Office  of  the 
High Representative in Bosnia and Herzegovina (OHR). 

2. 

The  repealed  Regulations  shall  continue  to  apply  for  legal  acts  and  commitments 
implementing the budget years preceding 2007. 

Article 28 
Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. It shall apply from 1 January 2007. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

EN 

30 

   EN 

 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

Policy  area(s):  External  Relations,  Development  and  relations  with  ACP  countries, 
Enlargement, European Neighbourhood Policy, External aspects of internal policies. 

part) 
Activit(y/ies): 
21.02,21.03,21.04,22.04,22.03 

(in 

19.02,19.03,19.04,19.05,19.06,19.07,19.08,19.09,19.10,19.81, 

TITLE OF ACTION: INSTRUMENT FOR STABILITY 

1. 

BUDGET LINE(S) + HEADING(S) 

This proposal represents a consolidation of a number of existing activities and does 
not map directly onto the existing budget nomenclature. However, it covers in full or 
in part the existing geographic-based policy areas and budget lines, and the type of 
activities currently addressed under the following sectoral budget lines: 

Civil protection mechanism (Internal policies - Environment) 

Community action programme in the field of civil protection — Expenditure on 
administrative management 

Community action programme in the field of civil protection — Expenditure on 
administrative management 

Fight against Antipersonnel Landmines 

07 03 06 01 

07 01 04 04 

07 49 04 04 

19 02 04 

North-South co-operation in campaigns agains drugs and drug addiction 

19 02 11 

Community  participation  in  action  concerning  anti-personnel  mines  — 
Expenditure on administrative management 

19 01 04 10 

Community  participation  in  action  concerning  anti-personnel  mines  — 
Expenditure on administrative management 

Rapid Reaction Mechanism 

19 49 04 09 

19 02 05 

Rapid reaction mechanism — Expenditure on administrative management 

19 01 04 02 

Rapid reaction mechanism — Expenditure on administrative management 

19 49 04 02 

and 

rights 
rights 

democratisation 

countries)
Human 
Human 
countries)
democratisation 
Development and consolidation of democracy and the rule of law — Respect 
for human rights and fundamental freedoms — Expenditure on administrative 
management 

(non-developing 
(developing 

and 

Development and consolidation of democracy and the rule of law — Respect 
for human rights and fundamental freedoms — Expenditure on administrative 
management 

Aeneas - migration 

Tacis 

19 04 04 

19 01 04 11 

19 49 04 10 

19 05 01 

19 06 01 

EN 

31 

   EN 

 
 
 
 
 
 
Nuclear safety in NIS,  including Financing of nuclear security from Euratom 
borrowings 

Contribution to EBRD Chernobyl Shelter Fund 

Assistance  to  partner  countries  in  eastern  Europe  and  central  Asia  — 
Expenditure on administrative management 

19 49 04 06 — Assistance to partner countries in eastern Europe and central 
Asia — Expenditure on administrative management 

CARDS – Western Balkans 

CARDS - Assistance to Serbia and Montenegro 

CARDS - Aid for reconstruction of Kosovo 

Interim Civilian administrations (support of UNMIK and OHR) 

19 06 05 

19 06 06 

19 01 04 07 

19 49 04 06 

19 07 01 

19 07 02 

19 07 03 

19 07 04 

Assistance  for  the  countries  of  the  western  Balkans  —  Expenditure  on 
administrative management 

19 01 04 08 

Assistance  for  the  countries  of  the  western  Balkans  —  Expenditure  on 
administrative management 

19 49 04 07 

Technical cooperation with Mediterranean countries 

Cooperation with the occupied territories 

Aid for rehabilitation and reconstruction of Iraq 

19 08 02 

19 08 03 

19 08 07 

MEDA  (measures  to  accompany  the  reforms  to  the  economic  and  social 
structures  in  the  Mediterranean  non-member  countries)  —  Expenditure  on 
administrative management 

19 01 04 04 

MEDA  (measures  to  accompany  the  reforms  to  the  economic  and  social 
structures  in  the  Mediterranean  non-member  countries)  —  Expenditure  on 
administrative management 

Co-operation with developing countries in Latin America 

Rehabilitation and reconstruction operations in developing countries in Latin 
America 

Financial and technical cooperation with Latin American developing countries 
— Expenditure on administrative management 

Financial and technical cooperation with Latin American developing countries 
— Expenditure on administrative management 

Co-operation with developing countries in Asia 

19 49 04 12 

19 09 01 

19 09 02 

19 09 04 

19 01 04 05 

19 49 04 05 

19 10 01 

19 10 02 

Rehabilitation and reconstruction operations in developing countries in Asia 

19 10 04 

EN 

32 

   EN 

 
 
 
 
 
 
 
 
Aid for the rehabilitation and reconstruction of Afghanistan 

19 10 06 

Financial  and  technical  cooperation  with  Asian  developing  countries  — 
Expenditure on administrative management 

19 01 04 04 

Financial  and  technical  cooperation  with  Asian  developing  countries  — 
Expenditure on administrative management 

19 49 04 04 

Assistance  to  ACP  and  OCT  countries  (programmable,  excluding  Africa 
peace facility) 

21  03  01/06 
21 03 09/14 

Assistance to ACP and OCT countries (Africa peace facility) 

Emergency Aid ACP and OCT  

Development cooperation with South Africa 

21 03 01 

21 03 07 

21 03 15 

21 03 17 

European  programme  for  reconstruction  and  development  (EPRD)  — 
Expenditure on administrative management 

21 01 04 05 

European  programme  for  reconstruction  and  development  (EPRD)  — 
Expenditure on administrative management 

21 49 04 05 

2. 

OVERALL FIGURES  

2.1. 

Total allocation for action (Part B): € 4.455 million  

2.2. 

Period of application: 

2007-2013 

2.3. 

Overall multiannual estimate of expenditure: (current prices) 

(a) 

Schedule  of  commitment  appropriations/payment  appropriations 
intervention) (see point 6.1.1) 

(financial 

€ million (to three decimal places) 

2007 

2008 

2009 

2010 

2011 

2012 

Commitments 

Payments 

331 

50 

442 

166 

503 

286 

638 

405 

713 

517 

789 

618 

2013 
*and 
following 
860 

Total 

4.276 

2.234 

4.276 

(b1) 

Technical and administrative assistance: of which staff (see point 6.1.2) 

Commitments 

Payments 

1 

1 

2 

2 

2 

2 

2 

2 

3 

3 

4 

4 

4 

4 

18 

18 

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
(b2) 

Technical  and  administrative  assistance:  of  which  support  expenditure(see  point 
6.1.2) 

Commitments 

Payments 

13 

13 

16 

16 

19 

19 

25 

25 

27 

27 

29 

29 

32 

32 

161 

161 

Subtotal a+b 

Commitments 

Payments 

345 

64 

460 

184 

524 

307 

665 

432 

743 

547 

822 

651 

896 

4.455 

2.270 

4.455 

* ‘following years’ only applying to payments 

(c) 

Overall  financial  impact  of  human  resources  and  other  administrative  expenditures 
(see points 7.2 and 7.3) 

Commitments/Paym
ents 

15 

21 

24 

€ million (to three decimal places) 
32 

36 

44 

40 

212 

TOTAL a+b2+c 

Commitments 

Payments 

359 

78 

479 

203 

546 

329 

695 

462 

776 

580 

858 

687 

936 

2.310 

4.649 

4.649 

2.4. 

Compatibility with financial programming and financial perspective 

Proposal is compatible with the proposed financial perspective 2007-2013 

2.5. 

Financial impact on revenue: 

Proposal  has  no  financial  implications  (involves  technical  aspects  regarding 
implementation of a measure) 

3. 

BUDGET CHARACTERISTICS 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
from applicant 
countries 

Heading in 
financial 
perspective 

Non-comp 

Diff 

YES 

NO 

NO 

No 4 

4. 

LEGAL BASIS  

Aritcle 308 (EC), article 203 (Euratom) 

EN 

34 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention  

5.1.1.  Objectives pursued 

The European Union  has  set  itself  important goals in the  promotion of  human  and  strategic 
security.  In  order  for  the  Union  to  fulfil  its  role  as  a  global  player  it  is  essential  that  the 
Community has the capability and means to respond to situations of crisis in third countries 
world-wide  and  to  address  global  and  regional  trans-border  challenges  with  a  security  or 
stability dimension. 

With this in mind, the Stability Instrument will provide the means to: 

–  deliver, within a single legal instrument, an effective, immediate and integrated response to 
situations  of  crisis  and  instability  in  third  countries,  building  on  the  added-value  already 
demonstrated by the Rapid Reaction Mechanism and on the emergency provisions already 
provided for in a number of existing external relations financial instruments; 

–  address global and regional trans-border challenges with a security or stability dimension 
arising in third countries, including issues such as nuclear safety and non-proliferation, as 
well  as  the  fight  against  trafficking,  organised  crime  and  terrorism  and  sudden  major 
threats to public health; 

–  support the implementation of future policy challenges faced by the Union within the areas 
addressed by the Instrument, complementing actions which may be undertaken under the 
other external financing instruments; 

The Stability Instrument shall permit the Community to finance measures to promote peace, 
stability  and  civilian  safety  in  third  countries  and  territories  (other  than  the  Overseas 
Countries  and  Territories  of  the  EU).  Such  measures  shall  in  particular  support  the  external 
policies of the Union by helping to: 

–  establish  or  re-establish  the  essential  conditions  necessary  to  permit  the  effective 
implementation  of  Community  development  and  economic  co-operation  policies,  where 
these are threatened by situations of crisis or severe political instability; 

–  address  global  and  regional  trans-border  challenges  affecting  civilian  security,  including 

the fight against trafficking, organised crime and terrorism; 

–  address  major  technological  threats  with  potential  trans-border  impact,  including  the 
promotion  of  nuclear  safety  and  the  fight  against  the  proliferation  of  weapons  of  mass 
destruction; 

–  develop international peace-keeping capacity in partnership with regional organisations; 

–  provide a framework for response to new policy initiatives supported by the Union in line 
with  the  objectives  of  the  present  Regulation,  complementing  actions  which  may  be 
undertaken under the other external action instruments. 

In some of these areas a strategic framework for action has already been adopted by the EU, 
and the design of the new instrument takes this into account. Key amongst these are: 

EN 

35 

   EN 

 
–  the millennium development goals 

–  the  EU  Programme  for  the  Prevention  of  Violent  Conflicts  adopted  by  the  Göteborg 

European Council in June 2001 

–  the EU Strategy against Proliferation of Weapons of Mass Destruction 

–  and the Action Plan against Terrorism adopted by the European Council  

The main outcomes pursued are 

–  enhancing human security through the prevention of violent conflict or the avoidance of its 
recurrence; assistance in the recovery from crisis until such time as assistance under one of 
the policy-driven external assistance instruments can be resumed; 

–  increased capacity of  regional and sub-regional organisations and other coalitions having 
UN  endorsement  to  contribute  to  the  resolution  of  political  crisis,  notably  through 
improved  capabilities  for  the  conduct  of  peace  support  operations,  building  on  the 
established policy for the Africa Peace facility; 

–  security  from  major  technological  threats,  threats  to  the  rule  of  law  and  public  health 

challenges; 

–  the  development  and  consolidation  of  democracy  and  the  rule  of  law,  and  respect  for 

human rights and fundamental freedoms ; 

In operational terms the Instrument will make it possible for the Community to : 

–  respond  effectively  to  situations  of  major crisis  around  the  world,  addressing  the  kind  of 
situations which in recent years have for example arisen in Kosovo, in Afghanistan, or in 
Iraq; 

–  strengthen the important contribution it already makes to EU civilian crisis management in 
line  with  the  conclusions  of  the  Helsinki  European  Council  by  providing  for  a  timely, 
effective,  and  integrated  crisis  response.  Delivering  assistance  in  an  integrated  way  as 
envisaged under this regulation will, moreover, facilitate donor co-ordination during times 
of crisis and increase the visibility of EU assistance; 

–  facilitate  the  response  to  challenges  affecting  civilian  security,  such  as  the  fight  against 
trafficking, organised crime and terrorism, where measures must be taken at the global and 
trans-regional level for the sake of efficiency and effectiveness or otherwise respond to a 
major threat to law and order; This will complement work which may be undertaken at the 
national level under one or other of the general cooperation instruments, adding a broader 
international  dimension  to  address  the  specifically  trans-national  aspects  of  these  new 
challenges; 

–  address  major  technological  threats  with  potential  trans-border  impact,  including  the 
promotion  of  nuclear  safety  and  nuclear  safeguards  (building  for  example  on  the 
experience  already  gained  under  the  Tacis  programme),  as  well  as  support  for  non-
proliferation  efforts,  and  for  disaster-preparedness  and  prevention  work  in  relation  to 
possible major environmental incidents; 

EN 

36 

   EN 

 
–  fully support the role of the Union as a global player in addressing the above issues; 

The  instrument  includes  provisions  to  facilitate  cross-pillar  coordination  where  Community 
measures  are  adopted  in  support  of  measures taken under the  CFSP. However, the Stability 
Instrument addresses itself purely first-pillar measures. Second-pillar measures will continue 
to be adopted under the CFSP, the scope of which will be defined by the Council on a case-
by-case basis, as is the current practice.  

5.1.2  Measures taken in connection with ex ante evaluation 

As part of the preparation of the future financial framework the Commission established the 
Peace  Group  which  was  tasked  with  leading  the  identification  of  the  future  priorities  for 
external relations and the instruments needed to serve those priorities. This Group functioned 
at  both  the  level  of  the  external  relations  Commissioners  and  the  services.  It  met  regularly 
between  April  and  December  2003  and  developed  the  principles  which  were  set  out  in  the 
Communication COM(2004) 10115 adopted on 10 February. The need to align objectives and 
instruments  more  closely  to  EU  values  and  interests  was  identified  as  being  fundamentally 
important. 

The values which should guide the setting of objectives and which should be served by  the 
instruments include human dignity, the rule of law, human rights, solidarity, equality between 
the  sexes,  adherence  to  the  multilateral  system  of  the  United  Nation  and  support  within  the 
multilateral  economic  system,  for  regionalism  as  a  force  for  development  and  stability.  The 
EU’s  interests  are  the  promotion  of  stable  international  growth  founded  on  sustainable 
development.  The  promotion  of  EU  values  and  interests  require  it  to  act  as  a  continental 
power and a global economic and political player. 

Three policy priorities were identified as a result of the Peace Group’s work: the EU and its 
neighbourhood, covering candidate and pre-candidate countries and the countries covered by 
the European Neighboured Policy; the EU as a Sustainable Development Partner; and the EU 
as a Global Player dealing with political and security challenges. A consensus emerged on the 
need  to  streamline  the  instruments  for  external  action  in  order  to  simplify  and  make  them 
more  efficient.  The  existing  array  of  instruments  reflects  an  organic  approach  where  one 
instrument has been added on top of another. For the future, a limited number of instruments 
would underpin external action expenditure. The Instrument for Stability addresses the third 
of these priorities. 

The current proposal also takes account of the vast literature of work on peace keeping and 
the  delivery  of  assistance  in  response  to  international  crises  (including  the  2001  DAC 
Guidelines  on  Helping  Prevent  Violent  Conflict,  the  2004  report  of  the  UNDG/ECHA 
Working  Group  on  Transition  issues  and  the  publications  of  the  World  Bank  Conflict 
Prevention and Reconstruction Unit), the practice of other international and bi-lateral donors. 

The Commission carried out in the second half of 2003 an extensive high-level review of the 
whole range of EC external instruments, in the context of the preparation of its proposals for 
the  new  financial  perspectives.  In  its  recommendations  to  the  President,  the  “Peace  Group” 

15 

Building  our  Common  Future,  Policy  Challenges  and  Budgetary  Means  of  the  Enlarged  Union 
2007-2013. 

EN 

37 

   EN 

 
                                                 
charged with this work underlined the need for the EU to gear the objectives and instruments 
of its external strategy more closely to its values and interests.  

In particular, it recommended that the EU should, in addition to addressing concerns related to 
our neighbourhood policy and to the EU’s role as a partner in sustainable development, also 
have the means to work effectively as a global player in addressing challenges relating to both 
civilian and strategic security. This requires that the instruments at our disposal should be able 
to address effectively  such  issues  as  nuclear safety and non-proliferation, the  threats  arising 
from  organised  crime  and  terrorism,  and  the  challenges  relating  to  armed  conflict  or  from 
fragile states, as well as the new challenges which can arise in a rapidly-changing world. In 
the event of a crisis, it is essential that we are able to respond in an immediate, effective and 
integrated fashion to such threats and challenges. 

5.1.3  Measures taken following ex post evaluation 

The “Peace Group” had integrated in its overall analysis of the external instruments the results 
of  a  number  of  post-evaluation  exercises  carried  out  regarding  certain  geographic  and 
thematic  instruments.  Substantial  analyses  of  a  number  of  the  issues  involved  have 
nevertheless  been  made,  for  example  in  connection  with  the  Rapid  Reaction  Mechanism, 
where assessments are completed at the end of each programme, or with nuclear safety, in the 
Commission’s  Communication  of  September  2000  (COM  (2000)  493)  on  its  support  to 
nuclear safety in the Newly Independent States and Central and Eastern Europe. In addition, 
the regular project monitoring, reporting and feedback mechanisms applying to these different 
actions provide invaluable lessons at the project level which are drawn upon in both policy-
making  and  programming.  Moreover,  the  proposal  follows  up  recommendations  in  the 
evaluation  of 
the 
reconstruction 
ACP/ALA/MED/Tacis countries, the synthesis report on EC Activities in the field of human 
rights, democracy and good governance of August 2001, the Assessment of Phare and Tacis 
Nuclear safety activities of November 2000. 

rehabilitation  and 

financed  by 

the  EC 

in 

5.2. 

Action envisaged and budget intervention arrangements 

The target population served by the instrument will be the populations of all third countries, 
or of those third countries (and their neighbours), who may become subject to conditions of 
crisis, or may be affected by concerns relating to nuclear safety and comparable challenges, or 
by trafficking, organised crime or terrorism in its trans-national aspects. 

The specific objectives to be set for the programming period, and the concrete measures to be 
taken and their immediate outputs, will: 

–  in  relation  to  situations  of  crisis,  be  determined  by  the  Commission  in  response  to  such 
situations  as  and  when  they  arise,  following  discussions  in  the  Council  where  necessary, 
and shall be set out in appropriate detail in the relevant Commission decision; or 

–  in relation to longer-term challenges (such as support for nuclear safety, for certain aspects 
of  the  promotion  of  democracy  and  fundamental  values  and  the  fight  against  trafficking, 
organised  crime,  and  terrorism,  or  for  capacity-building  in  relation  to  peace-keeping 
operations)  be  established  in  strategy  papers  and  multi-annual  indicative  programmes. 
These programming documents shall, as for the other external action instruments, set out in 
appropriate  detail  the  specific  objectives,  concrete  measures,  outputs  and  indicators 
relevant to the measures in question. 

EN 

38 

   EN 

 
–  In both cases the participation of local and EU non-governmental and civil society based 
organisations as well as international organisations shall be a key feature of programmes. 

5.3.  Methods of implementation 

The measures to be taken under the present Instrument shall normally be implemented by the 
Commission  by  direct  or  indirect  centralised  management,  but  may  in  certain  cases  as 
specified in the Regulation be implemented by indirect centralised management (by public or 
public-service  bodies  of  the  Member  States),  by  decentralised  management  (under  the 
responsibility of a beneficiary partner country), or by delegated management (by international 
organisations or third-country donors, in cases of joint co-financing).  

At  this  stage  the  Commission  is  not  ready  to  propose  the  establishment  of  an  executive 
agency for programme implementation but this possibility has not been excluded, in particular 
for certain tasks of expert recruitment and logistical support.  

6. 

FINANCIAL IMPACT 

6.1. 

Total  financial  impact  on  Part  B  -  (over  the  entire  programming  period) 
(current prices) 

6.1.1.  Financial intervention 

Breakdown 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Ring-fenced 

provision 

0 

104 

106 

108 

110 

112 

115 

655 

Commitments (in € million to three decimal places) 

for 

actions 

in  ACP 

countries, 

including 

Africa Peace facility  

Other actions 

331 

TOTAL  331 

338 

442 

397 

503 

530 

638 

603 

713 

677 

789 

745 

860 

3.621 

4.276 

6.1.2.  Technical  and  administrative  assistance,  support  expenditure  and  IT  expenditure 

(commitment appropriations) 

2007  

2008 

2009 

2010 

2011 

2012 

2013 

Total 

ACP countries  0 

Other actions  14 

TOTAL  14 

4 

14 

18 

4 

17 

21 

5 

22 

27 

5 

25 

30 

5 

28 

33 

5 

31 

36 

28 

151 

179 

EN 

39 

   EN 

 
 
7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

7.1. 

Impact on human resources 

Types of post 

Staff to be assigned to management of the 
action using existing and/or additional 
resources 

Total 

Number of 
permanent posts 

Number of 
temporary posts 

Description of tasks deriving from the 
action 

196 

Officials 
temporary staff 

or 

Other human resources 

Total 

END:  

AUX:  

INT:  

Ex BA-lines : 

ATA: 

196 

11 

18 

  3 

40 

268 

7.2. 

Overall financial impact of human resources (2004 prices) 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials+Temporary staff 

21 168 000 

196x 108 000€ 

END 

AUX 

INT 

Ex BA-lines: 

ATA 

  489 984 

1 021 080 

  189 288 

11x 44 544€ 

18x 56 760€ 

3x 63 096€ 

2 305 840 

40x 57 646€ 

Total  25 174 792 

EN 

40 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7.3. 

Other administrative expenditure deriving from the action IfS (2004 prices) 

Budget line 

(number and heading) 

Overall allocation (Title A7) 

A0701 – Missions 

A07030 – Meetings 
A07031 – Compulsory committees 1 
A07032 – Non-compulsory committees 1 

A07040 – Conferences 

A0705 – Studies and consultations 

Other expenditure (specify) 

Information systems (A-5001/A-4300) 

Other expenditure - Part A (specify) 

Amount € 

Method of calculation 

213 missions x 2.200 euro per mission 

100 meetings x 1.000 euro per meeting 

1x  /month x  10  months  = 10  meetings 
per year x 25.000 euro per meeting = 

468.600 

100.000 

250.000 

0 

150.000 

100.000 

0 

200.000 

0 

The amounts are total expenditure for twelve months. 

Total  1.268.600 

(2004 prices) 

I. 

II. 

III. 

Annual total (7.2 + 7.3) 

Duration of action 

Total cost of action (I x II) 

€ 

26.443.392 

7 years 

€ 

185.103.744 

Human and adminstrative resource needs will be covered from within the allocation made to 
the DG managing the activities under the annual allocation procedure.  

The allocation of posts will depend on the one hand on the internal organisation of the next 
Commission, and on the other hand on a possible reallocation of posts between the services, 
following the new financial perspectives. 

8. 

FOLLOW-UP AND EVALUATION 

8.1. 

Follow-up arrangements 

The  Commission  will  monitor  progress  of  its  external  co-operation  on  all  levels,  input  (in 
particular financial flows (commitments, contracts and payments), activities / outputs (project 
and  programme  execution,  internal  monitoring  carried  out  on  the  spot  by  Commission 
Delegations), progress / outcome (external Results-Oriented Monitoring) and impact. 

All countries and regional multi-annual indicative program will include the specific objectives 
and  expected  results  for  each  area  of  co-operation,  and  a  limited  number  of  key  outcome 
indicators  in  regard  to  economic  and  poverty  situation.  These  indicators  must  relate  to 
developments that are measurable in the short/medium term.  

EN 

41 

   EN 

 
 
 
 
 
 
 
 
The programming of long-term external aid for partner countries and regions is carried out in 
the  framework  of  the  preparation  of  country  and  regional  strategy  papers  (up  to  7-years).. 
These country strategies also include a work plan or national / regional indicative programme 
jointly agreed between the Community and partner country/region concerned. 

Under  the  principle  of  rolling  programming,  a  review  process  is  foreseen  including  annual 
operational  reviews,  mid-term  reviews,  and  ad-hoc  reviews  where  necessary.  These  review 
mechanism  provides  the  flexibility  required  to  ensure  that  operations  are  kept  constantly  in 
line with changes occurring in the economic situation, priorities and objectives of the partner 
country/region. 

Reviews take a special interest on progress achieved in terms of financial execution of aid, as 
well as in terms of results achieved and evolution of the context in term of poverty reduction, 
economic performance and supported sectors. Updated intervention frameworks and indicator 
tables on focal sectors are annexed to review documents in order to facilitate the assessment at 
the time of the review. In particular, mid-term reviews may lead to a change of strategy, as 
well  as  a  change  in  the  country/region  allocation  in  the  light  of  the  current  needs  and 
performance. 

Emergency  assistance  measures  shall  be  tightly  monitored.  Such  measure  present  specific 
challenges in terms of measuring the long-term impact, but regular evaluations of Community 
crisis  responses  shall  be  integrated  into  the  evaluation  programme.  Given  the  multi-lateral 
nature  of  crisis  response,  such  evaluations  will  take  into  account  the  broader  international 
response, and put a particular emphasis on the overall coherence of EU action, including with 
that delivered under title V of the EU Treaty. 

8.2. 

Arrangements and schedule for the planned evaluation 

In  application  of  current  rules  and  in  view  of  the  vast  scope  of  the  activities  foreseen,  an 
evaluation  system  covering  the  different  levels  of  intervention  and  types  of  instruments  has 
been set up. 

Notably,  the  financial  regulation,  as  well  as  the  internal  control  standards,  calls  for  regular 
evaluation of all (sizable) activities. This is translated into the evaluation of single operations 
(e.g.  development  projects),  of  programmes  (e.g.  country  strategies)  and  policy  sectors  or 
themes  (e.g.  transport  or  gender  issues).  Evaluations  of  are  also  necessary  and  ongoing  of 
wider legal obligations such as the 3 Cs (Coherence, Complementarity, Coordination). 

Evaluation  of  crisis  response  measures  will  normally  take  place  at  the  completion  of  the 
‘interim response programmes’ provided for under this Regulation. 

These  works  will  be  complemented  by  relevant  works  on  databases,  meta-analyses, 
methodology and training. 

9. 

ANTI-FRAUD MEASURES 

The  protection  of  the  Community’s  financial  interests  and  the  fight  against  fraud  and 
irregularities form an integral part of this Regulation. 

Administrative monitoring of contracts and payments will be the responsibility of the central 
Commission services and/or EC Delegations in beneficiary countries. 

EN 

42 

   EN 

 
Each  of  the  operations  financed  under  this  regulation  will  be  supervised  at  all  stages  in  the 
project  cycle  through  the  central  Commission  services  and/or  delegations.  Supervision  will 
take account of contractual obligations as well as of the principles of cost/benefit analysis and 
sound financial management. 

Moreover,  any  agreement  or  contract  concluded  pursuant  to  this  Regulation  shall  expressly 
provide for monitoring of spending authorised under the projects/programmes and the proper 
implementation  of  activities  as  well  as  financial  control  by  the  Commission,  including  the 
European Anti-Fraud Office (OLAF), and audits by the Court of Auditors, if necessary on the 
spot.  They  shall  authorise  the  Commission  (OLAF)  to  carry  out  on-the-spot  checks  and 
inspections  in  accordance  with  Council  Regulation  (Euratom,  EC)  No  2185/96  of  11 
November  1996  concerning  on-the-spot  checks  and  inspections  carried  out  by  the 
Commission in order to protect the European Communities’ financial interests against fraud 
and irregularities. 

Particular  attention  will  be  paid  to  the  nature  of  expenditure  (eligibility  of  expenditure),  to 
respect  for  budgets  (actual  expenditure)  and  to  verify  supporting  information  and  relevant 
documentation (evidence of expenditure). 

EN 

43 

   EN