Communication from the Commission to the Council and the European Parliament On the Instruments for External Assistance under the Future Financial Perspective 2007-2013
Date: 2004-09-29
Institutions: European Commission
Subjects: aid policy, foreign policy, multiannual financial framework, the EU's international role

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.9.2004 
COM(2004) 626 final 

COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

On the Instruments for External Assistance under the Future Financial Perspective 
2007-2013 

EN 

   EN 

 
 
 
  
COMMUNICATION FROM THE COMMISSION  
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 

On the Instruments for External Assistance under the Future Financial Perspective 
2007-2013 

The  Commission’s  Communications  of  February  2004  (Building  our  common  Future 
[COM(2004) 101]) and of 14 July (Financial Perspectives 2007 to 2013 [COM(2004) 487]) 
set out the framework for a new and simplified political and administrative structure for the 
delivery  of  the  Community’s  assistance  and  cooperation  programmes.  Thus,  in  place  of  the 
existing1  range  of  geographical  and  thematic  instruments  that  has  grown  up  in  an  ad-hoc 
manner  over  time,  six  instruments  are  proposed  three  of  which  are  designed  to  implement 
particular policies, and three to provide the necessary response to particular needs.  

Only  four  of  these  six  instruments  are  new,  two  already  exist  and  do  not  need  further 
modification. Thus this Communication sets down the four new legal instruments needed to 
put the new framework and structure into effect. These new instruments are: 

1) An instrument for Pre-Accession Assistance  

2) A European Neighbourhood and Partnership instrument  

3) A Development Cooperation and Economic Cooperation instrument 

4) An instrument for stability 

*** 

Enlargement  has  entrusted  the  EU  with  even  greater  responsibilities  in  the  field  of  external 
actions, responsibilities channelled towards three main objectives: providing stability, security 
and  prosperity  in  its  Neighbourhood  (“The  EU  and  its  neighbourhood  policy”);  working 
actively to support sustainable development at international level (“The EU as a sustainable 
development  partner”);  promoting  global  political  governance  and  ensuring  strategic  and 
civilian security (“The EU as a global player”)2. 

In order to address these responsibilities, the Communication ‘Building our Common Future-
Policy  Challenges  and  Budgetary  Means  of  the  Enlarged  Union  2007-2013’  adopted  on  10 
February 2004, set an ambitious goal of a stronger voice for the Union, supported by more 
efficient  tools.  The  present  Communication  is  a  further  step  in  which  the  Commission  will 
not repeat itself but rather demonstrate the value added of EU intervention, further detail its 
approach in order to achieve these political objectives and propose the instruments to support 
them. 

1 

2 

Any  pending  legislative  proposals  will  only  be  continued  with  where  adoption  of  the  proposal  is 
necessary to permit execution of the budget appropriations under the current Financial Perspective. In 
due course the Commission will withdraw those proposals whose adoption is not indispensable. 
These goals are detailed in the February 10 Communication. 

EN 

2 

   EN 

 
                                                 
With more than 450 million inhabitants and a quarter of world output, and as the biggest aid 
donor and the first trading partner of 100 countries, the Union of 25 – and soon 27 - members 
could  wield  considerable  influence  over  the  political  and  economic  choices  determining 
prosperity and stability in Europe and the wider world, which in their turn influence the well-
being and security of Europeans. 

This  potential  is,  however,  partly  unrealised.  There  is  a  gap  between  the  EU’s  economic 
weight and its political clout. 

The  cost  of  a  reduced  Europe  in  the  field  of  external  relations,  whether  political  or 
financial, is real. The outside world is constantly and dramatically testing our abilities to act 
or  react  in  a  more  coherent  way.  Without  going  back  to  the  Iraq  or  the  Argentinean  crisis, 
day-to-day examples of this cost are numerous.  

Looking ahead to 2007-2013, the EU must therefore take a long view and set a course rather 
than  reacting  to  events.  If  it  wants  to  have  a  greater  say  on  the  international  scene,  it 
needs to speak with one voice and promote a real common strategy. It should strengthen 
its  capacity  to  make  global  governance  more  effective,  to  promote  sustainable  development 
and political stability through its multilateral and bilateral policies. The EU must improve its 
capacity  to  draft  substantial  external  policies  by  overcoming  the  division  into  pillars  that 
undermines  the  coherence  of  its  action;  it  also  has  to  make  sure  that,  once  adopted,  these 
policies are backed up by all the resources of Community and national instruments, subject to 
their respective decision-making procedures. 

There is a strong demand from Citizens for more Europe on the international scene even 
where the Community’s policies are not currently in the lead. According to opinion polls, the 
European  level  is  considered  the  most  appropriate  by  a  large  majority  of  people  when  it 
comes  to  external  action,  far  ahead  of  the  national  level.  Two  thirds  of  European  citizens 
support a Common Foreign Policy and three quarters a Common Defence Policy. They expect 
the  EU  to  promote  their  common  interests  and  values  more  often  on  the  international  stage 
and  in  doing  so,  to  secure  a  sense  of  direction  in  multilateral  negotiations  and  a  sense  of 
influence in the development of globalisation. The EU’s experience of integration leads it to 
press for the construction of a multilateral institutional framework and for the drawing-up of 
rules  rather  than  unilateralism.  The  EU  must  also  ensure  increased  coherence  of  its  internal 
choices in terms of their effect on the rest of the world and improve the dialogue with civil 
society in order to remain focused on the interests of all stakeholders. 

In a world characterised by openness and instability, citizens are also increasingly exposed to 
risks such as conflicts, natural disasters, and pandemics. The EU, without internal frontiers, is 
vulnerable to the consequences of such risks and threats, and must take appropriate external 
action,  and  effectively  support  international  efforts,  which  affect  not  only  the  physical 
security of civilian populations and their potential for development, but also overall security 
and  stability.  As  detailed  below  a  coherent  EU  approach  in  the  external  relations  field  will 
increase the EU’s influence far beyond what Member States could achieve separately or even 
working in parallel. 

THE COMPARATIVE ADVANTAGE OF EU EXPENDITURE 

The clear added value which the EU enjoys is fundamental to the attainment of the strategic 
goals presented above. This added value can still be further enhanced. 

EN 

3 

   EN 

 
Whereas  the  Community  limited  its  interventions  in  the  early  period  to  programmes  purely 
dedicated  to  development  issues,  it  has  since  established  comprehensive  partnership  and 
cooperation agreements with most countries of the world and now tackles complex situations. 
It has thus developed ambitious and multi-domain programmes, which allow it to address the 
whole  range  of  challenges  confronting  third  countries  from  institutions  building  to  the 
emergence  of  an  efficient  private  sector.  Spending  programmes  are  not  and  cannot  be  all 
embracing. They are composed of an appropriate policy mix defined for each specific partner 
country. For reasons detailed below, each EURO spent at EU level has greater leverage and 
consequently more impact than the equivalent spending at national level. 

•  The effectiveness of EU external action: Acting at the right level 

EU intervention can firstly be justified simply because it is the most or even the only effective 
way  to  properly  address  our  objective.  The  value  added  comes  from  the  fact  that  the 
Community  simply  represents  the  right  level  for  action.  The  very  fact  of  European 
integration  means  that  the  advantages  accruing  to  one  Member  State  from  its  external 
operations  also  benefit  the  others.  However,  it  is  difficult  to  incorporate  these  “European” 
factors  in  decisions  taken  nationally,  which  as  a  result  may  ultimately  fail  to  live  up  to 
expectations. This clearly justifies intervention at the Community level. 

Enlargement  is  a  clear  example  where  action  at  the  Community  level  is  the  only  option.: 
Intervention  is  focused  on  helping  candidates  countries  to  fulfil  accession  criteria  and  to 
prepare  for  the  management  of  EU  Funds,.  There  is  a  clear  need  for  intervention  to  be 
carried  out  at  EU  level,  even  if  it  means  calling  upon  Member  States  experience  in  the 
process  (e.g.  twinning).  Similarly,,  the  objectives  of  the  neighbourhood  policy  can  only  be 
achieved by acting at EU level: Security and migration are further examples where measures 
are optimised if carried out at the EU level, The same can also be said of standardisation and 
the  establishment  of  norms  as  well  as  the  external  projection  of  EU  internal  policies 
(biodiversity, global warming, corporate governance…) 

The  value  added  of  Community  spending  also  comes  from  the  fact  that  the  Community 
alone has its hands on all operational levers at once in dealing with third countries. The 
Community  can  therefore  ensure  consistency  and  synergy  between  main  external  relations 
instruments:  political  dialogue,  trade,  aid,  economic  cooperation,  external  projection  of 
internal policies. Member States bilateral relations (in the political field for example) with a 
particular  third  country  or  even  region  may  well  be  older  and  closer.  However,  the  full 
panoply  of  instruments  lies  at  EU  level  only.,  As  a  result,  Community  expenditure,  used  in 
combination  with  other  available  instruments  has  greater  leverage  than  national  or  even 
multilateral  expenditure  which 
impossibility  of  fully  exploiting 
complementarities between that expenditure and other policies. 

limited  by 

the 

is 

Example: The comparative advantage of an EU approach is well illustrated by the Western 
Balkans,  where  the  EU  supported  the  handling  of  the  crisis  and  now  promotes  the 
stabilisation  of  the  region  (through  a  mix  of  political  dialogue,  an  ad  hoc  trade  regime, 
extensive financial programmes covering cooperation in the field of justice and home affairs, 
democratic stabilisation measures, economic reform etc.) in a way unlikely to be reached by 
the combined action of individual Member States.  

EN 

4 

   EN 

 
•  The efficiency of EU external action: Pooling resources 

The value added of EU intervention is directly related to the influence and visibility derived 
from  the  Community’s  economic  weight,  the  critical  financial  mass  and  significant 
economies of scale it can generate.  

Example : In the area of water, the Community was able to mobilise a critical mass of funding 
capable  of  having  a  global  impact  (following  the  WSSD,  the  Community  will  commit  €1 
billion with the Water for Life Initiative). Even if Member States individual expertise can be 
as just as developed in this field, the volume of aid and the various expertise the EU is able to 
mobilise simultaneously yields a much higher impact for each EURO spent in this context. 

•  The catalytic effect of EU action: Pooling expertise 

The  Community  engages  in  cooperation  with  most  countries  of  the  world.  This  enables 
Member  States  to  contribute  effectively,  albeit  indirectly,  to  actions  in  all  developing  and 
transition  countries.  Its  experience  of  regional  integration  gives  the  Community  a  clear 
advantage  in  dealing  with  other  regional  entities  and  in  promoting  regional  processes.  For 
instance this is the case with African regional entities and Mercosur. 

EU  added  value  also  stems  from  its  methods,  and  from  the  enhanced  coordination  and 
coherence which the EU ensures, thereby acting as a catalyst in relation to the individual 
efforts made by Member States.  

Example:  Community  humanitarian  assistance  has  created  EU  added  value  in  this  policy 
area mostly through the shared understanding of complementarities and coordination leading 
to  a  productive  division  of  labour  between  Member  States’  bilateral  aid  and  Community 
assistance (benchmark effect). The EU as a whole supplies 50% of global humanitarian aid 
annually, ECHO alone representing 25% of this total : this enables the EU to influence the 
international humanitarian l response vis-à-vis the other main donors such as the USA and 
organisations like the U.N.  

EU added value stems also flows from its methods, in particular untying of aid, sectoral and 
budget  support,  thereby  promoting  country  ownership,  making  national  budget  systems 
effective,  allowing  national  planning  systems  to  find  the  optimal  balance  between  recurrent 
and  capital  costs,  ensuring  donor  co-ordination  within  national  priorities  and  national 
calendars,  and  leading  governments  towards  a  more  results-oriented  approach.  The 
Commission  has  also  pioneered  a  genuinely  results-based  approach  to  development,  linking 
aid volumes directly to countries’ achievements of their national targets for poverty reduction. 

•  Reserves of value added to be further exploited 

The value added of EU intervention compared to what Member States can achieve separately 
or  acting  in  parallel  should  not  be  seen  as  having  achieved  its  full  potential.  Improved 
coherence  in  the  Union’s  external  relations  can  increase  its  influence  if  efforts  dedicated  to 
internal discussion are reoriented towards external action.  

The  reform  of  strategic  planning,  the  creation  of  EuropeAid  and  the  devolution  of  project 
management  has  already  allowed  for  better  targeting  of  programmers  on  local  needs  and 
better coordination with other donors as well as accelerated programmed implementation ( on 

EN 

5 

   EN 

 
average reduced by one year). EU action has also been concentrated on where it has the most 
added  value:  trade  and  development,  regional  integration,  macro  economic  support, 
infrastructure,  governance  and  ‘difficult  partnerships’.  There  remain  untapped  reserves  of 
added value. These lie in better crisis management operations (where traditional assistance is 
blocked),  enhanced  coherence  in  the  EU’s  external  polices  and  greater  complementarity 
between them and those of he Member States. 

There  is  growing  evidence  that  there  must  be  a  convergence  between  EU  internal  political 
objectives, like sustainable growth or security and its External Relations political objectives 
like sustainable development and the promotion of Human Rights and Democracy.  

THE  NEED  FOR  MORE  EFFECTIVENESS:  A  COMPLETE  OVERHAUL  OF 
EXTERNAL RELATIONS INSTRUMENTS  

As already noted, the proposals set down here offer an essential simplification of the existing 
RELEX  external  relations  instruments.  Thus  at  present  Community  assistance  and 
cooperation  is  delivered  through  a  range  of  regional  instruments,  for  example  CARDS, 
TACIS MEDA etc. and through the arrangements set out for the European Development Fund 
(EDF) in the Cotonou agreement, to which must be added a substantial number of thematic 
instruments (for example the European Initiative for Democracy and Human Rights ). 

As  an  example  of  the  complexities  involved  cooperation  and  assistance  with  the  Southern 
Mediterranean, Near East and Middle East region must at present be managed through eleven 
different Regulations. A similar situation applies for the Tacis region, and for the Asia/Latin 
America  regions.  Pre-Accession  assistance  has  been  delivered  through  three  discrete 
instruments governed by separate Council Regulations and a Co-ordination Regulation. 

All  of  these  Regulations  exhibit  significant  differences  of  comitology  and  programming. 
Managing  the  Community’s  programmes  on  the  basis  of  such  a  mixed  and  complex  set  of 
instruments, in an efficient and coordinated way, has become an increasingly difficult task. 

•  Policy driven Instruments  

As  foreseen  in  its  February  10  and  July  14  Communications,  the  Commission  therefore 
proposes a drastic simplification of instruments, driven by the need to facilitate coherence and 
consistency  of  external  actions,  and  achieve  better  and  more  with  the  available  resources 
available, by addressing the following principles: 

–  Ensuring overall policy coherence: The appropriate policy mix and balance between the 
needs  for  short-term  response  and  long  term  strategies  will  be  ensured  through  Country 
Strategy  Papers  (CSPs)  and  Regional  Strategy  Papers  (RSPs),  as  well  as  accession  and 
thematic strategies. Subject to regular reviews, and calling upon the appropriate mix of the 
new instruments proposed, this will ensure the necessary coherence in approach. 

–  Simplifying  structure  and  procedures3  Budget  lines  and  procedures  (financing 
instruments  and  their  legal  bases)  will  be  streamlined  to  make  them  more  effective  and 

3 

There  are  currently  91  budget  lines  in  the  RELEX  family  policy  areas.  This  does  not  include  budget 
lines in other policy drawing resources from the current Heading 4. 

EN 

6 

   EN 

 
                                                 
more efficient, in particular with regard to emergencies and crises, and more responsive to 
new initiatives such as the Global Fund to fight HIV/AIDS, Tuberculosis and Malaria or 
the Heavily Indebted Poor Countries initiative. 

–  Output-oriented  resources  allocation:  There  is  a  broad  consensus  on  the  necessity  of 
allocating  resources  according  to  expected  and  measured  performances.  The  CSPs–RSPs 
process, backed up by stronger analytical capabilities, should confront initial goals and real 
achievements. 

–  Better  dialogue  and  coordination  with  other  donors  and  institutions:  First,  with  the 

other EU Institutions, but also with Members States and Bretton Woods institutions. 

–  Better  dialogue  with  third  countries:  All  countries  will  be  covered  by  the  new  and 

simplified set of targeted instruments, bringing better understanding and readability. 

To  further  enhance  overall  effectiveness  of  Commission  managed  EU-aid,  the  new 
instruments and the financial allocations made will be guided by a stronger attention to needs 
and performance criteria. The incorporation of former EDF-aid into the budget will facilitate 
cross-fertilisation towards the best practice level of the hitherto two systems. The Commission 
will  further  seek  that  the  new  framework  regulating  the  aid  programming  and  delivery  will 
put it in an enabling position. 

•  The move to only six instruments of which four are new 

The framework set out in this Communication dramatically reduces the previous complexities 
and  inconsistencies  and  proposes  three  new  main  instruments  for  the  three  overarching 
the 
external  relations  policies  namely  pre-accession  policy,  Union  policy 
neighbourhood  countries,  and  Union  policy 
to  support  economic  cooperation  and 
development  with  other  countries.  These  three  main  instruments  are  then  complemented  by 
three  specific  instruments,  of  which  one  is  new,  to  address  specific  needs  and  in  particular 
provide a response to crisis situations. 

towards 

The three main policies and instruments are: 

Pre-Accession policy 

This  policy  covers  the  candidate  countries  (Turkey  and  Croatia)  and  the  potential  candidate 
countries (the Western Balkans) and is driven by the accession and pre-accession framework, 
namely  the  Strategy  Papers,  Regular  Reports, the European and Accession Partnerships and 
the negotiations. 

The instrument for Pre-Accession will replace a range of existing instruments (PHARE, ISPA, 
SAPARD,  CARDS  etc.)  and  will  cover  Institution  Building,  Regional  and  Cross-border 
cooperation, Regional Development, Rural Development and Human Resources Development 
and  will  address  the  need  for  a  flexible  approach  in  order  to  accommodate  new  priorities 
quickly.  

Beneficiary countries will be divided into two categories, depending on their status as either 
Candidate  Countries  or  potential  Candidate  Countries  (as  recognised  by  the  Council). 
Potential  Candidate  Countries  will  continue  to  receive  assistance  along  the  lines  currently 

EN 

7 

   EN 

 
laid  down  in  the  CARDS-Regulation:  Institution  Building  and  Democratisation,  Economic 
and Social Development, Regional and Cross-Border Co-operation and some alignment with 
the acquis communautaire, in particular where this is in the mutual interest of the EU and the 
beneficiary  country.  Candidate  Countries  will  receive  the  same  kind  of  assistance  but  will 
additionally receive assistance aimed at: 

•  helping  countries  to  fulfil  the  political,  economic  and  all  acquis-related  criteria  for 
membership (the Accession Criteria) and to build up administrative and judicial capacity 
for its implementation; 

•  helping countries prepare for EU Structural, Cohesion and Rural Development Funds (EU 
Funds)  after  accession  both  by  preparing  the  necessary  structures  and  systems  and  by 
financing projects. 

Within these over-arching objectives, given the history and context of the Balkans, there is an 
enhanced  emphasis  on  stabilisation,  regional  co-operation,  confidence-building  measures 
and economic development.  

The  EIB  group  will  fully  support  the  same  objectives  including  through  co-financing  of 
regional programs and other forms of co-financing or specific mandates. 

The European Neighbourhood and Partnership instrument 

This  instrument  covers  countries  targeted  by  the  European  Neighbourhood  Policy  i.e.  the 
countries of the south and eastern Mediterranean (the MEDA countries), the Western NIS and 
the  countries  of  the  southern  Caucasus.  This  instrument  will  also  support  our  strategic 
partnership with Russia. 

The  European  Neighbourhood  and  Partnership  instrument  (EPNI)  has  two  main  objectives 
namely to: 

•  promote  progressive  economic  integration  and  deeper  political  cooperation  between  the 

EU and partner countries 

•  address  the  specific  opportunities  and  challenges  related  to  the  geographical  proximity 

common to the EU and its neighbours. 

The  ENPI  will  contribute  to  greater  political,  economic,  cultural,  and  security  cooperation 
between the EU and its neighbours. It will be comprehensive, replacing MEDA and Tacis and 
other existing instruments such as the European Initiative for Democracy and Human Rights 
(EIDHR). The ENPI will be a “policy driven” instrument that will operate in the framework 
of  the  existing  bilateral  agreements  between  the  Community  and  neighbouring  countries.  It 
will focus in particular on supporting the implementation of ENP Action Plans. Its scope will 
go  beyond  promoting  objectives  such  as  sustainable  development  or  fighting  poverty  to 
to  progressive 
encompass 
participation in the EU’s internal market. Legislative approximation, regulatory convergence 
and  institution  building  will  be  supported  through  mechanisms  such  as  the  exchange  of 
experience,  long  term  twinning  arrangements  with  Member  States  or  participation  in 
Community programmes and agencies. 

for  example  considerable  support 

for  measures 

leading 

EN 

8 

   EN 

 
A  specific  and  innovative  feature  is  the  cross  border  co-operation  component.  ENPI  will 
finance  “joint  programmes”  bringing  together  regions  of  Members  States  and  partner 
countries  sharing  a  common  border.  The  instrument  will  bring  a  radical  simplification  in 
procedures  and  substantial  gains  in  efficiency.  It  will  use  a  “Structural  Funds”  approach, 
based on multi-annual programming, partnership and co-financing. 

Cross  border  co-operation  at  external  EU  borders  will  be  conducted  using  a  common 
methodology through either the IPA or the ENPI depending on the neighbouring country. The 
cross  border  co-operation  components  of  the  ENPI  and  the  IPA,  for  operations  at  EU 
external borders, will be co-financed by the European Regional Development Fund (ERDF). 

The EIB will reinforce its support to the above objectives in its areas of competence, notably 
through the next generation of its external mandates, and ensuring an optimum combination 
of its own resources and budget funds through a large range of financial instruments.  

Development Cooperation and Economic Cooperation policy with other countries  

This policy covers, in particular, all countries territories and regions that are not eligible for 
assistance  under  either  the  Pre-Accession  instrument  or  the  European  Neighbourhood  and 
Partnership  instrument.  The  purpose  of  the  Community’s  Development  Cooperation  and 
Economic Cooperation policy is to support development cooperation, economic cooperation, 
financial cooperation, scientific and technical cooperation and any other form of cooperation 
with  the  partner  countries  and  regions,  thereby  helping  developing  countries  achieve  the 
Millennium Development Goals, and so reduce poverty. This cooperation is implemented in 
the framework of the principles and objectives of the EU’s external action and in accordance 
with Articles 179 and 181 a of the European Community Treaty.  

The  Development  Cooperation  and  Economic  Cooperation  instrument  (DCECI)  will  be  the 
main vehicle for supporting developing countries in their efforts to achieve these objectives. 
The Development Cooperation and Economic Cooperation instrument is comprehensive and 
covers  cooperation  with  both  partner  countries  and  partner  regions,  as  well  as  all  the 
horizontal  or  thematic  initiatives  for  the  benefit  of  the  partner  countries,  and  that  are 
appropriate  for  the  achievement  of  the  objectives  set  out  in  articles  177  to  181a  of  the 
European Community Treaty and for meeting the Community’s international commitments. It 
will include the successor to the ninth EDF. This incorporation into the budget will facilitate 
cross-fertilisation and so moves up to the best practice levels of the two systems. 

These  three  main  instruments  are  policy  driven  and  have,  as  a  consequence,  particular 
geographical 
three 
coverage.  They 
instruments/programmes that are designed to respond to particular crises. These are:  

complemented 

implications 

and 

are 

by 

The Instrument for Stability  

This  is  a  new  instrument  designed  to  provide  an  adequate  response  to  instability  and  crises 
and to longer term challenges with a stability or security aspect. It will be complementary to 
the  Pre-Accession,  European  Neighbourhood  and  Partnership  and  the  Development 
Cooperation and Economic Cooperation instruments, and will provide assistance designed to 
establish  the  necessary  conditions  for  the  implementation  of  the  policies  supported  by  the 
IPA, EPNI and the DCECI.  

EN 

9 

   EN 

 
In particular, the Stability instrument will allow the Community to:  

•  deliver  an  effective,  immediate  and  integrated  response  to  situations  of  crisis  and 
instability  in  third  countries,  within  a  single  legal  instrument,  until  normal  cooperation 
under one of the general instruments for cooperation and assistance can resume. This will 
build 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 unforeseen major 
threats to public health; 

•  enable the Community to deliver a timely response to future urgent policy challenges faced 
by the Union, by piloting measures unforeseen under the three policy-driven instruments, 
until such time as they can adequately be integrated within the policy framework of those 
instruments. 

The Stability instrument operates purely under the first pillar. However its design takes into 
account  the  need  for  effective  operational  coordination  between  Community  actions  and 
measures adopted under the Common Foreign and Security Policy. 

The Humanitarian Aid instrument and Macro Financial Assistance 

These  two  instruments  will  remain  unchanged  except  that  all  Food  Aid  of  a  humanitarian 
nature will be included under Humanitarian Aid instead of being dealt with under a separate 
Regulation. As regards Humanitarian Aid this is regarded as already sufficiently well defined 
in terms of scope and objectives and is performing well in terms of delivery and efficiency. In 
addition, since its inception in 1990, Macro Financial Assistance has proved to be an efficient 
instrument  for  economic  stabilisation  and  a  driver  for  structural  reforms  in  the  beneficiary 
countries, and so no change is needed. 

The external aspects of internal polices 

As  already  noted  above  the  projection  of  internal  policies  outside  the  Union  provides  an 
important  value  added  for  action  at  the  European  Union  level.  Moreover  to  project  these 
policies  effectively  it  is  essential  to  reconcile  the  need  for  policy  coherence  and  thematic 
visibility  for  the  internal  policies  concerned  (notably  education;  environment;  immigration 
and asylum; customs and taxation; and networks), with the need for the overall coherence of 
external relations (as defined in Country or Regional Strategy Papers) or in the Pre-Accession 
Policy Framework Documents). 

With this overriding need in mind the three general policy driven instruments set out above 
will cover all policy areas, either as a specific thematic concern or within the context of the 
appropriate policy mix established for a given third country or region by the preparation and 
adoption  of  Country/Regional  Strategy  Papers  and  Programmes  or  European  and  Accession 
Partnerships. As a consequence there is no systematic need for separate legal instruments or 
Regulations to deal with external aspects of internal policies.  

The draft Regulations attached provide for this requirement. 

EN 

10 

   EN 

 
Thus within the relevant instruments and Regulations appropriate and complete provision has 
been made to ensure that the external aspects of internal policies are properly covered. This 
allows measures in support of policy areas such as the environment, education, transport and 
customs and taxation to be covered by the four new instruments. In some cases, the pursuit of 
a given policy objective will require that funds are not programmed geographically, as they 
serve  multilateral  objectives,  for  example,  to  enable  the  European  Union  to  promote  its 
environmental  aims  in  a  multilateral  context,  independent  of  the  priorities  of  individual 
beneficiaries. 

The Commission will engage in a dialogue with Council and Parliament on how it intends to 
ensure that the objectives of these policies and instruments are consistent and coherent with 
the overall direction and thrust of Union policy, and that overlaps and gaps between thematic 
and  geographical  instruments  are  minimised.  As  explained  in  the  previous  Communications 
policy must lead the instruments in order to ensure overall coherence. 

In  addition  the  new  framework  will  enable  financing  procedures  to  be  more  effective  and 
efficient by ensuring greater flexibility and predictability and so reducing the delays between 
political decisions and implementation. 

The Council and Parliament are invited to adopt the proposed Regulations for the European 
Neighbourhood and Partnership instrument and the Economic Cooperation and Development 
instrument set down under sections 2) and 3) below. 

The Council is invited, after consulting the European Parliament, to adopt the Pre-Accession 
and Stability instruments set down under sections 1) and 4) below. 

EN 

11 

   EN