Proposal for a Regulation of the European Parliament and of the Council laying down general provisions establishing a European Neighbourhood and Partnership Instrument
Date: 2004-09-29
Institutions: European Commission
Subjects: EU aid, cooperation policy, cross-border cooperation, external border of the EU

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 29.9.2004 
COM(2004) 628 final 

2004/0219 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down general provisions establishing a European Neighbourhood and 
Partnership Instrument 

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Introduction 

The proposed new architecture of the financial instruments, which should operate in the new 
financial perspective 2007-2013, and the reasons leading to this proposal were explained by 
the  Commission  to  the  Council  and  Parliament  in  the  communications  on  the  financial 
perspectives1.  The  introductory  communication  presenting  the  Regulation  on  the  “European 
Neighbourhood  and  Partnership  Instrument”  (ENPI),  like  those  of  three  other  external 
relations  instruments,  provides  additional  and  more  detailed  information  on  the  rationale 
behind  the  main  features  of  the  instrument.  In  view  of  that,  this  explanatory  memorandum 
focuses primarily on explaining the main articles of the Regulation. 

The ENPI will replace existing geographical and thematic programmes covering the countries 
concerned.  External  aspects  of  internal  policies,  currently  covered  by  a  specific  instrument, 
will be either mainstreamed in country and multicountry programmes, or, where appropriate, 
dealt with through a specific thematic programme. 

A  specific  and  innovative  feature  of  the  ENPI  is  its  crossborder  cooperation  component. 
Under this component, the ENPI will finance “joint programmes” bringing together regions of 
Members  States  and  partner  countries  sharing  a  common  border.  This  will  bring  a  radical 
simplification in procedures and substantial gains in efficiency. It will use an approach largely 
modelled on “Structural Funds” principles such as multiannual programming, partnership and 
cofinancing,  adapted  to  take  into  account  the  specificities  of  external  relations.  The 
crossborder cooperation component of the ENPI will be cofinanced by the European Regional 
Development Fund (ERDF). Title III includes a set of provisions specifically designed for this 
component  only.  These  provisions  are  consistent  with  similar  provisions  established  for 
crossborder cooperation under the relevant Structural Funds regulations. 

Comments on specific provisions 

Title I - Objectives and principles 

Article 1- Subject matter and scope 

Article 1 states the scope of the assistance making reference to the importance to develop an 
area of prosperity and close cooperation involving the European Union and the neighbouring 
countries, as recognised in the Draft Constitution. 

The  partner  countries  covered  by  the  instrument  are  listed  in  Annex  I.  The  list  includes  the 
neighbouring countries which do not currently have an accession perspective and to which the 
European Neighbourhood Policy (ENP) is addressed. Originally limited to the four Western 
NIS  and  ten  Mediterranean  Countries,  this  list  has  been  extended,  following  the  Brussels 
European Council of 17-18 June 2004, to include the three countries of the Southern Caucasus 
(Armenia, Azerbaijan and Georgia). 

The  ENPI  covers  Russia  because  the  European  Union  and  Russia  have  decided  to  develop 
their  strategic  partnership  through  the  creation  of  ‘four  common  spaces’,  as  agreed  at  the 
St. Petersburg  Summit  of  May  2003,  rather  than  in  the  framework  established  by  the 

1 

COM(2004) 101 of 10 February 2004 and C0M(2004)487 of 14 July 2004. 

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European Neighbourhood Policy. The reference to partnership in the name of the instrument 
denotes this specificity. Assistance to neighbouring countries with accession prospects, such 
as Turkey or the countries of the Western Balkans, is covered under a separate Pre-Accession 
Instrument. 

Developing  an  area  of  good  “neighbourliness”  requires  resources  to  promote  crossborder 
cooperation  between  partner  countries  and  the  Member  States  so  as  to  promote  integrated 
regional development among border regions and avoid the creation of new dividing lines. In 
order to be able to support crossborder cooperation efficiently and effectively and to finance 
joint projects, Article 1 provides, for the first time in an assistance regulation, that assistance 
can  be  used  for  the  common  benefit  of  Member  States  and  partner  countries.  This  brings  a 
radical  simplification  to  the  current  situation  where  crossborder  cooperation  at  the  external 
EU  border  is  hampered  by  interfaces  between  internal  and  external  funding  instruments 
operating through different rules.  

Lastly, Article 1 refers to fundamental values of the Union to which the Union’s neighbours 
have  pledged  commitment  in  their  bilateral  agreements  with  the  EU  and  in  a  number  of 
multilateral conventions and other instruments. As the extent to which neighbouring countries 
implement these commitments varies, it is important that the Union’s external action seeks to 
promote  greater  compliance  through  dialogue  and  cooperation.  In  extreme  cases  the  Union 
can resort to total or partial suspension of assistance under the procedure outlined in Article 
29. 

Article 2 - Scope of assistance 

Article 2 sets out the main aims of the assistance and makes a link between these aims and the 
existing agreements with neighbouring countries. This reflects the policy-driven character of 
the  instrument  and  the  importance  attached  to  support  the  implementation  of  these 
agreements.  However  this  link  is  not  intended  to  exclude  the  possibility  of  providing 
assistance to countries such as Belarus or Libya, where, even in the absence of a contractual 
framework, assistance may be useful to pursue EU policy objectives. 

Article 2 also provides, mainly for explanatory reasons, a list of objectives that can be pursued 
under this Regulation. This list, which is non–exhaustive, includes objectives specific to the 
European Neighbourhood Policy alongside other, more conventional, development objectives. 
This reflects the reality of neighbouring countries, many of which are developing countries. 
The  choice  of  objectives  to  be  pursued  in  a  given  country  will  be  made  when  establishing 
country strategies and multiannual programmes.  

Article 3 - Policy framework 

Article  3  underlines  the  character  of  the  ENPI  as  a  policy-driven  instrument.  The  overall 
policy  framework  for  programming  assistance  should  be  laid  down,  taking  into  account  the 
existing agreements, in the Commission communications and Council conclusions setting out 
the  overall  strategy  of  the  Union  vis-à-vis  neighbouring  countries.  This  was  most  recently 
done  in  the  Commission  communication  of  May  20042,  which  was  followed  by  Council 
conclusions in June 20043 and which may also be followed by a resolution of the European 
Parliament.  Where  they  exist,  the  European  Neighbourhood  Policy  (ENP)  action  plans, 

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The “European Neighbourhood Policy Strategy Paper”, COM(2004) 373 of 12 May 2004. 
General Affairs Council of 14 June 2004. 

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the 

involvement  of 

the  Council  and  approved  by 

elaborated  with 
joint 
Association/Partnership  and  Cooperation  Councils  established  in  the  bilateral  agreements 
between the EU and the partner country will provide the key document from which assistance 
priorities  will  be  drawn.  These  action  plans  cover  a  set  of  priorities  whose  fulfilment  will 
bring partner countries closer to the European Union. In the case of Russia, priorities will be 
defined in the light of the road-maps on the four common spaces4 approved by the Partnership 
and Cooperation Council. 

the 

In  the  absence  of  agreements  and/or  ENP  action  plans,  assistance  may  still  be  provided,  in 
particular for crossborder cooperation and whenever relevant to pursue EU policy objectives 
set out in the relevant Commission communications.  

Article 4 - Complementarity, partnership and cofinancing 

Article  4  lays  down  the  following  general  principles  for  the  implementation  of  this 
Regulation, namely that: 

–  assistance  shall  complement  national  measures  to  promote  synergy  and  enhance 

impact; 

–  assistance  shall  be  established  in  partnership  between  the  Commission  and  the 
beneficiaries, and programming of assistance should be carried out involving, as 
appropriate,  central,  regional  and  local  authorities,  civil  society,  economic  and 
social partners; 

–  assistance  shall  be  cofinanced  in  order  to  promote  ownership  and  maximise  its 

leverage effect. 

These principles are also applied in the context of the EU cohesion policy and reflect the dual 
nature of the instrument (external policy and economic and social cohesion) when it comes to 
financing  crossborder  and  transregional  cooperation  between  partner  countries  and  Member 
States. 

Article 5 - Consistency, complementarity and coordination  

Article  5  provides  for  the  consistency  of  assistance  with  Community  policies  and  with  the 
agreements  to  which  the  Union  and  the  partner  countries  are  parties.  It  also  underlines  the 
need for coordination between the Community, the Member States and with other donors, in 
accordance  with  Article  180  of  the  EC  Treaty  and  as  repeatedly  stated  in  Commission 
communications and Council conclusions. 

Title II - Programming and allocation of funds 

Article 6 - Type of programmes  

Article 6 describes the type of programmes through which assistance will be provided under 
this  Regulation,  namely  country/multicountry  programmes,  thematic  programmes  and 
crossborder cooperation programmes.  

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These  are:  Common  economic  space  (including  and  with  a  specific  reference  to  environment  and 
energy), a common space of freedom, security and justice, a space of cooperation in the field of external 
security, as well as a space of research and education, including cultural aspects.  

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Country and multicountry programmes cover the assistance provided under this instrument to 
a  single  country  (national  programme)  or  a  group  of  countries  (regional  or  subregional 
programmes). They normally include multiple priorities. 

Thematic programmes are normally used to address in a visible and recognizable way global 
challenges  of  particular  importance  or,  when  this  is  considered  appropriate,  the  external 
projection  of  internal  policies.  This  is  particularly  important  since  the  simplification  of  the 
financial  instruments  operating  in  the  area  of  external  relations  means  that  thematic 
instruments  such  as  LIFE  third  countries  or  TEMPUS  will  cease  to  exist  under  a  separate 
legal basis. Thematic programmes will, in most of the cases, address all the partner countries. 

The  eligible  border  regions  of  the  EU  Member  States  will  be  covered  by  the  crossborder 
cooperation  programmes  set  up  under  this  Regulation.  It  will  also  be  possible  to  associate 
Member  States 
transregional 
thematic  and/or  multicountry  programmes 
cooperation.  On  that  basis,  a  single  financial  instrument,  the  ENPI,  will  be  able  to  finance 
joint projects involving beneficiaries from partner countries and Member States. 

through 

in 

Article 7 - Programming and allocation of funds  

Drawing  on  the  policy  framework  described  in  Article  3,  strategy  papers  containing 
multiannual  indicative  programmes  will  establish the  priorities  for  assistance  and  determine 
multiannual  financial  allocations  to  programmes.  They  will  be  adopted  by  the  Commission 
after the opinion of the committee under a management procedure. Financial allocations for 
country  and  multicountry  programmes  will  reflect  not  only  the  characteristics  and  the 
management  capacity  of  the  countries  concerned  but  also  the  level  of  ambition  of  the 
partnership of a given country with the European Union.  

The strategy paper(s) for crossborder cooperation are mainly aimed at establishing the list of 
“joint” crossborder programmes, their geographical coverage and their allocations. They will 
be drafted taking into account the need to fully respect the programme-based, medium-term 
and  bottom-up  approach  leading  to  the  “joint  programmes”  referred  to  under  Title  III.  The 
European  Regional  Development  Fund  will  contribute 
to  crossborder  cooperation 
programmes under the provisions of this Regulation. 

Title III - Crossborder cooperation 

Article 8 - Geographical eligibility 

Article 8 establishes the criteria determining the territorial units of Member States and partner 
countries  that  will  be  covered  by  crossborder  cooperation  programmes.  This  includes  all 
NUTS-III level regions along land borders and sea crossings of significant importance and all 
NUTS-II  maritime  regions  facing  a  common  sea  basin.  Adjoining  regions  can  also  be 
associated in cooperation. 

Article 9 - Programming 

Article  9  includes  specific  provisions  for  establishing  joint  programmes  bringing  together 
eligible regions of Member States and partner countries. These programmes should normally 
be bilateral across land borders or sea crossings of significant importance and multilateral for 
maritime  regions.  A  specific  provision  (paragraph  3)  has  been  included  to  allow  the 

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possibility for countries not covered by the Regulation, and in particular Turkey, to participate 
in multilateral maritime programmes.  

Joint  programmes  will  be  adopted  by  the  Commission.  Following  the  adoption  of  these 
programmes the Member States and partner countries concerned will select the projects that 
will receive Community assistance. 

Paragraph  7  provides  for  a  safeguard  clause  which  allows,  in  exceptional  circumstances, 
Member  States’  border  regions  to  receive  assistance  even  if  a  joint  programme  cannot  be 
established.  This  provision  offers  a  safety  net  in  the  event  that  a  serious  crisis  in  relations 
between  the  European  Union  and  a  partner  country  makes  it  impossible  to  establish  a  joint 
programme. 

Article 10 - Management 

Article  10  provides  for  crossborder  programmes  to  be  managed  jointly  by  the  relevant 
Member  States  and  partner  countries  through  a  joint  managing  authority  operating  through 
shared  management  and  normally  located  in  a  Member  State.  By  allowing  implementation 
tasks to be delegated to the beneficiary Member State, this management method is compatible 
with the programme-based, multiannual, bottom-up approach which characterises crossborder 
cooperation programmes.  

The  Member  State  hosting  the  joint  managing  authority  will  be  responsible  to  the 
Commission for the regularity of the operations financed under the programme, as is the case 
under  Structural  Funds.  This  provision  takes  account  of  the  fact  that  Member  States  have 
more experience than partner countries in managing EU funds and that their procurement and 
financial control procedures are aligned with EU legislation. 

However,  it  remains  possible  to  locate  the  joint  managing  authority  in  partner  countries 
following  a  process  leading  to  a  Commission  decision  that  confirms  the  ability  of  the  joint 
managing  authority  located  in  the  partner  country  to  manage  Community  funds  in  a  fully 
decentralised way. 

Article 11 - Implementing rules  

Article  11  gives  the  Commission  the  authority  to  adopt  implementing  rules  for  this 
component.  These  rules  will  be  adopted  by  the  Commission  after  the  opinion  of  the 
committee under a management procedure. 

Title III - Implementation 

Article 12 - Adoption of action programmes 

Article  12  provides  for  the  Commission’s  financing  decisions  to  take  the  form  of  annual 
action programmes for countries or regions. This reflects the new principles introduced in the 
latest  Commission  regulations5.  As  decisions  taken  by  the  Commission  in  line  with  the 
multiannual  programming  documents  approved  by  the  Member  States,  these  action 
programmes have not been made subject to the committee procedure. The Commission will 

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As in the MEDA and Tacis Regulations. 

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send the action programmes to the Member States for their information within one month of 
adopting its decision. The action programmes will lead to the signing of financing agreements 
with  the  partner  countries  and,  where  appropriate,  regions,  notably  in  the  framework  of 
geographical programmes. The Commission in empowered to adapt action programmes when 
necessary. Exceptionally, Article 12 provides for the adoption of measures not provided for in 
an  action  programme  under  the  same  rules  and  procedures  as  apply  to  action  programmes. 
This  provision  may  prove  useful  where  the  Commission needs to provide financing quickly 
even though the action programme has yet to be completely finalised. 

Article  13  -  Adoption  of  special  measures  not  provided  for  in  the  strategy  papers  or 
multiannual indicative programmes 

Article  13  provides  for  the  adoption,  in  the  event  of  unforeseen  needs  or  circumstances,  of 
special  measures  not  provided  for  in  the  strategy  papers  or  multiannual  indicative 
programmes.  This  provision  increases  the  Community's  capacity  to  respond  and  introduces 
the  flexibility  necessary  for  the  effective  implementation  of  the  Community's  external 
assistance, especially in emergencies. Because these decisions are taken by the Commission 
outside  the  scope  of  multiannual  programmes  approved  by  the  Member  States,  decisions  in 
excess of EUR 15 million have been made subject to the committee procedure. Accordingly, 
the  special  measures  not  provided  for  in  strategy  papers  or  multiannual  indicative 
programmes are adopted by the Commission under the procedure provided for in Article 3 of 
Decision  1999/468/EC,  i.e.  after  consulting  an  advisory  committee  composed  of  the 
representatives  of  the  Member  States  and  chaired  by  the  representative  of  the  Commission 
(the  committee  being  set  up  by  Article 26  of  the  Regulation).  The  committee  delivers  an 
opinion on the special measures, and the Commission takes the utmost account of the opinion 
delivered by the committee and informs it of the manner in which the opinion has been taken 
into  account.  The  Commission  may  adapt  the  special  measures  by  the  same  procedure;  the 
committee’s opinion is not, however, necessary in the event of the minor amendments listed 
in Article 13(4). 

Article 14 - Eligibility. 

Article 14 lists the entities, bodies and institutions eligible under the Regulation. In line with 
current  practice,  it  provides  for  broad-based  eligibility.  Institutions  and  agencies  of  the 
European  Union  are  also  eligible.  As  regards  eligibility  for  Community  grants,  Article 14 
must  be  read  in  the  light  of  Article 21,  which  sets  out  the  rules  for  participation  in  public 
procurement and grant procedures. 

Article 15 - Types of measures, Article 16 - Support measures 

On  the  basis  of  current  practice,  Article 15  provides  a  non-exhaustive  list  of  the  sort  of 
measures that may be financed under the Regulation.  

Article 16  allows  the  Community  to  finance  all  support  measures  necessary  for  the 
Regulation’s  implementation.  Where  support  measures  are  not  financed  directly  under 
multiannual  programmes  and  action  programmes,  Article 16(2)  provides  for  them  to  be 
adopted  in  the  same  way  as  special  measures  not  provided  for  in  strategy  papers  and 
multiannual indicative programmes (see Article 13). 

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Article 17 - Cofinancing, Article18 – Management procedures 

In  line  with  current  practice  and  the  donors’  desire  to  promote  better  coordination  of 
cooperation measures, Article 17 confirms that the measures financed may be cofinanced (in 
parallel or jointly). Paragraph 3 stipulates that the Commission may, in that event, receive and 
manage funds from the Member States (and in particular their public and parastatal agencies), 
any other donor country and international and regional organisations. This provision puts the 
Commission on an equal footing with other donors.  

Article  18  allows  the  Commission  to  manage  measures  under  this  Regulation  using 
management  methods  provided  for  in  the  Financial  Regulation.  In  accordance  with 
Article 54(2)  of  the  Financial  Regulation,  it  establishes  the  criteria  for  delegating  budget 
implementation  tasks  to  national  bodies  in  Member  States.  It  also  establishes  the  terms  on 
which  beneficiary  countries  operating  under  decentralised  management  may  use  their  own 
procurement procedures.  

Article 19 - Budget commitments 

Article 19 stipulates that budget commitments are made on the basis of decisions taken by the 
Commission under joint crossborder cooperation programmes (Article 9), action programmes 
(Article 12), special measures not provided for in strategy papers and multiannual indicative 
programmes  (Article 13)  and  support  measures  (Article 16).  It  allows  (paragraph  2)  budget 
commitments to be split into annual instalments, spread over a number of years, in accordance 
with Article 76 of the Financial Regulation, which permits this if it is provided for in the basic 
act.  This  provision  is  particularly  useful  for  the  multiannual  crossborder  cooperation 
programmes.  

The  possibility  of  using  split  commitments  (paragraph  2)  is  intended  for  crossborder 
cooperation  programmes.  This  is  essential  in  order  to  establish  a  clear  and  pre-determined 
financial framework to be established for the whole 2007-13 period and create the conditions 
for the effective implementation of a multiannual, programme-based approach. At this stage 
there  are  no  plans  to  use  split  commitments  for  country,  multicountry  or  thematic 
programmes. 

Article 20 - Protection of the Community’s financial interests 

Article 20 stipulates the measures intended to protect the Community’s financial interests, and 
in particular to enable it to perform the necessary checks on the activities implemented. 

Article 21 - Participation in tenders and contracts 

Article 21 sets out the rules for participation in public procurement and grant procedures for 
the  purposes  of  implementing  this  Regulation.  At  this  stage  the  planned  provisions  comply 
with the proposal for a Regulation of the European Parliament and of the Council on access to 
Community  external  assistance6,  which  is  intended  to  amend  the  basic  regulations  for  the 
main  Community  aid  instruments  with  a  view  to  further  untying  aid.  Note  that  Article 21 
allows natural and legal persons of third countries which open their own public procurement 
and grant procedures to EU Member States to take part in procurement and grant procedures. 

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COM(2004) 313 of 26 April 2004. 

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Article 21 could be amended in the light of the conclusions of that Regulation’s examination 
by the Council and the European Parliament. 

Article 22 - Prefinancing, Article 23 - Funds made available to the European Investment Bank 
or other financial intermediaries 

Article 22 states that the interest generated by prefinancing is to be deducted from the final 
payment. 

Article 23 specifies the type of arrangements the Commission is to adopt, on a case-by-case 
basis,  when  it  decides  to  make  funds  available  to  the  European  Investment  Bank  or  other 
financial intermediaries. 

Article 24 - Evaluation 

Article  24  binds  the  Commission  to  regularly  evaluate  the  results  of  geographical  and 
thematic  policies  and  programmes  and  of  sectoral  policies  and  the  effectiveness  of 
programming. 

Title IV - Final Provisions 

Article 25 - Annual report 

In  line  with  the  decisions  implemented  since  2001  with  a  view  to  simplifying  and 
rationalising  the  number  of  reports  sent  to  the  Council  and  the  European  Parliament, 
Article 26 maintains the status quo and provides for the Commission to submit annual reports 
to the Council and the European Parliament. The report will cover all the assistance granted 
under the various external relations instruments. It will be drawn up in the light of experience 
built up since 2001, and in particular the comments made each year by the Council and the 
European Parliament on the form and substance of the report. 

Article 26 - Committee 

Article 26 establishes the committee of Member States’ representatives. See the explanations 
to Articles 7, 12 and 13 for details of the committee’s prerogatives. 

Article 27 - Participation of a third country not eligible under this Regulation 

In  order  to  increase  the  efficiency  of  Community  assistance,  and  to  avoid  splitting  certain 
programmes between several instruments, Article 27 extends eligibility under this Regulation 
to  encompass  the  overseas  countries  and  territories,  countries  eligible  for  the  Pre-Accession 
Instrument and countries eligible for the financing instrument for development and economic 
cooperation. This provision will be applied where the project or programme adopted is of a 
global, regional or crossborder nature. 

Article 28 - Suspension of assistance 

Article 28  lays  down  the  procedure  applicable  in  the  event  of  breaches  of  the  principles 
referred to in Title I. It applies where there is no partnership and cooperation agreement with a 
partner country or where such an agreement does not provide for the suspension of aid. 

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Article 29 - Financial reference amount 

Article 29 lays down the financial reference amount for the implementation of the Regulation. 

Article 30 - Review 

Article 30  allows  the  Regulation  to  be  revised  on  the  basis  of  a  proposal  from  the 
Commission. 

Article 31 - Repeal of previous regulations 

Article 31 repeals the Tacis, MEDA and other regulations as necessary. 

Article 32 - Entry into force 

This Regulation is planned to enter into force twenty days after its publication in the Official 
Journal,  but  it  will  only  apply  from  1 January 2007.  The  reason  for  this  is  that  the  repealed 
regulations  are  still  needed  until  the  end  of  the  current  financial  perspective,  but  the  new 
Regulation can, in the meantime, already provide a legal basis for the drafting and adoption of 
the implementing rules, which should be done as soon as possible. 

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2004/0219 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

laying down general provisions establishing a European Neighbourhood and 
Partnership Instrument 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
179 and 181a thereof, 

Having regard to the proposal from the Commission,7 

Acting in accordance with the procedure laid down in Article 251 of the Treaty, 

Whereas: 

(1) 

(2) 

(3) 

A new framework for planning and delivering assistance is proposed in order to make 
the Community’s external assistance more effective. Council Regulation (EC) No [...] 
establishes  an  instrument  for  pre-accession  (IPA)  for  Community  assistance  to 
candidate  and  potential  candidate  countries.8  Regulation  (EC)  No [...]  of  the  Council 
and  of  the  European  Parliament  establishes  a  financing  instrument  for  development 
cooperation  and  development  cooperation.9  This  Regulation  is  the  third  general 
instrument providing direct support for the European Union’s external policies. 

The  European  Council,  meeting  in  Copenhagen  on  12  and  13  December  2002, 
confirmed that enlargement of the European Union presents an important opportunity 
to  take  forward  relations  with  neighbouring  countries  based  on  shared  political  and 
economic values, and that the Union remains determined to avoid new dividing lines 
in Europe and to promote stability and prosperity within and beyond the new borders 
of the Union. 

The  European  Council,  meeting  in  Brussels  on  17  and  18  June  2004,  reiterated  the 
importance it attached to strengthening cooperation with these neighbours, on the basis 
of  partnership  and  joint  ownership  and  building  on  shared  values  of  democracy  and 
respect for human rights. 

(4) 

The privileged relationship between the European Union and its neighbours will build 
on  commitments  to  common  values,  including  democracy,  the  rule  of  law,  good 

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9 

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

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(5) 

(6) 

(7) 

(8) 

(9) 

governance  and  respect  for  human  rights,  and  to  the  principles  of  market  economy, 
free trade, sustainable development and poverty reduction. 

In  Eastern  Europe  and  the  Southern  Caucasus,  the  Partnership  and  Cooperation 
Agreements provide the basis for contractual relations. In the Mediterranean, the Euro-
Mediterranean  Partnership  (the  “Barcelona  Process”)  provides  a  regional  framework 
for cooperation which is complemented by a network of Association Agreements. 

Under the European Neighbourhood Policy, a set of priorities are defined together by 
the European Union and the partner countries, to be incorporated in a series of jointly 
agreed  Action  Plans,  covering  a  number  of  key  areas  for  specific  action,  including 
political  dialogue  and  reform,  trade  and  economic  reform,  equitable  socio-economic 
development,  justice  and  home  affairs,  energy,  transport,  information  society, 
environment,  research  and  innovation,  and  people-to-people  contacts.  Progress 
towards  meeting  these  priorities  will  contribute  to  realising  the  full  potential  of  the 
Partnership and Cooperation Agreements and the Association Agreements. 

In  order  to  support  the  partner  countries’  commitment  to  common  values  and 
principles and their efforts in the implementation of the action plans, the Community 
must  be  in  a  position  to  provide  assistance  to  those  countries  and  to  support  various 
forms of cooperation among them and between them and the Member States with the 
aim  of  developing  a  zone  of  shared  stability,  security  and  prosperity  involving  a 
significant degree of economic cooperation and political integration. 

It is important that support to be provided to neighbouring developing countries within 
the framework established by the European Neighbourhood Policy is coherent with the 
objectives  and  principles  of  the  Community  development  policy,  as  outlined  in  the 
Joint  Statement  on  the  European  Community  Development  Policy  made  on 
10 November 2000 by the Council and the Commission. 

The  European  Union  and  Russia  have  decided  to  develop  their  specific  strategic 
partnership  through  the  creation  of  four  common  spaces,  and  Community  assistance 
will be used to support the development of this partnership and to promote crossborder 
cooperation at the border between Russia and its European Union neighbours. 

(10)  For  Mediterranean  partners  assistance  and  cooperation  should  take  place  within  the 
framework  of  the  Euro-Mediterranean  Partnership  established  by  the  Barcelona 
Declaration of 28 November 1995 and take into account the agreement reached in that 
context  on  establishing  a  free-trade  area  for  goods  and  beginning  a  process  of 
asymmetric liberalisation. 

(11) 

(12) 

It is important  to foster cooperation both at the European Union external border and 
among partner countries, especially those among them that are geographically close to 
each other. 

In  order  to  avoid  the  creation  of  new  dividing  lines,  it  is  particularly  important  to 
remove obstacles to effective crossborder cooperation along the external borders of the 
European  Union.  Crossborder  cooperation  should  contribute  to  integrated  and 
sustainable  regional  development  between  neighbouring  border  regions  and 
harmonious  territorial  integration  across  the  Community  and  with  neighbouring 

EN 

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countries. This aim can best be achieved by combining external policy objectives with 
environmentally sustainable economic and social cohesion. 

(13) 

In order to assist neighbouring partner countries in achieving their objectives, and to 
promote  cooperation  between  them  and  Member  States,  it  is  desirable  to  establish  a 
single policy-driven instrument  which  will replace a  number  of  existing instruments, 
ensuring coherence and simplifying assistance programming and management. 

(14)  This  instrument  will  also  support  crossborder  cooperation  between  partner  countries 
and the Member States bringing substantial efficiency gains operating through a single 
management  mechanism  and  with  a  single  set  of  procedures.  It  will  build  on  the 
experience  acquired  from  the  implementation  of  the  Neighbourhood  Programmes  in 
the  period  2004-2006  and  operate  on  the  basis  of  principles  such  as  multiannual 
programming, partnership, and cofinancing. 

(15)  This  Regulation  establishes  for  the  period  2007-2013  a  financial  framework  which 
constitutes  the  prime  reference  amount  for  the  budgetary  authority  according  to 
point 33  of  the  Interinstitutional  Agreement  of  6  May  1999  between  the  European 
Parliament, 
the  Commission  on  budgetary  discipline  and 
improvement of the budgetary procedures. 

the  Council  and 

(16)  The measures necessary for the implementation of this Regulation are measures to be 
adopted in accordance with Council Decision 1999/468 of 28 June 1999 laying down 
the 
the  procedures  for 
Commission.10 

implementing  powers  conferred  on 

the  exercise  of 

(17)  The use of the management procedure is applicable when defining the implementing 
rules  which  will  govern  the  implementation  of  crossborder  cooperation  and  when 
adopting the documents setting out the strategic considerations and overall objectives 
guiding  the  provision  of  Community  assistance  to  a  country,  a  region  or  a  specific 
thematic  issue.  Ad hoc  measures  not  based  on  strategic  documents  and  whose  value 
exceeds  an  established  threshold  can  be  taken  by  the  Commission  in  justified  cases, 
using a consultative procedure. 

(18)  The  objectives  of  the  action  proposed  are  to  promote  enhanced  cooperation  and 
progressive  economic  integration  between  the  European  Union  and  neighbouring 
countries. Since these objectives cannot be sufficiently achieved by the Member States 
and can, by reason of the scale of the action, be better achieved by the Community, the 
Community  may  take  measures  according  to  the principle  of subsidiarity established 
in Article 5 (2) of the EC Treaty. In accordance with the principle of proportionality 
laid  down  in  that  Article,  this  Regulation  does  not  go  beyond  what  is  necessary  to 
attain these objectives. 

(19)  This Regulation makes it necessary to repeal Regulation (EEC) No 1762/92 of 29 June 
1992  (MEDA)  on  the  implementation  of  the  Protocols  on  financial  and  technical 
the  Community  with  Mediterranean  non-member 
cooperation  concluded  by 
countries,11  Regulation  (EC)  No  1488/96  of  23  July  1996  (MEDA)  on  financial  and 
technical measures to accompany the reform of economic and social structures in the 

10 
11 

OJ L 184, 17.7.1999, p. 23. 
OJ L 181, 1.7. 1992, p. 1. 

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13 

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framework  of  the  Euro-Mediterranean  partnership,12  Council  Regulation  (EC, 
Euratom)  99/2000  of  29  December  1999  (TACIS)  concerning  the  provision  of 
assistance  to  the  partner  States  in  Eastern  Europe  and  Central  Asia,13  and  Council 
Regulation  (EC)  No  1734/94  on  financial  and  technical  cooperation  with  the  West 
Bank and the Gaza Strip,14 

HAVE ADOPTED THIS REGULATION: 

TITLE I 

OBJECTIVES AND PRINCIPLES 

Article 1 

Subject matter and scope 

(1) 

(2) 

(3) 

(1) 

This Regulation establishes a Neighbourhood and Partnership Instrument to provide 
assistance  (hereinafter  ‘Community  assistance’)  for  the  development  of  an  area  of 
prosperity and good neighbourliness involving the European Union and the countries 
listed in Annex 1 (hereinafter ‘partner countries’). 

Community assistance shall be used for the benefit of partner countries. Community 
assistance  may  be  used  for  the  common  benefit  of  Member  States  and  partner 
countries, for the purpose of promoting crossborder and trans-regional cooperation as 
defined in Article 6. 

The Union is founded on the values of respect for human dignity, liberty, democracy, 
equality,  the  rule  of  law  and  respect  for  human  rights  and  seeks  to  promote 
commitment to these values in partner countries through dialogue and cooperation. 

Article 2 

Scope of assistance 

Community  assistance  under  the  Neighbourhood  and  Partnership  Instrument  shall 
promote  enhanced  cooperation  and  progressive  economic  integration  between  the 
European  Union  and  the  partner  countries  and,  in  particular,  the  implementation  of 
partnership and cooperation agreements, association agreements or other existing and 
future agreements.  

(2) 

Community assistance shall be used to support measures which pursue one or more 
of the following objectives:  

(a) 

promoting political dialogue and reform; 

12 

13 
14 

OJ L 189 , 30.7.1996, p. 1. Regulation as last amended by Regulation (EC) No 2698/2000 (OJ L 311, 
12.12.2000, p. 1). 
OJ L 12, 18.1.2000, p. 1. 
OJ  L  182,  16.7.1994,  p.  [...]  Regulation  last  amended  by  Regulation  (EC)  No  669/2004  (OJ  L  105, 
14.4.2004, p. 1). 

EN 

14 

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(b)  promoting legislative and regulatory approximation in all relevant areas and in 
particular to encourage the progressive participation of partner countries in the 
internal market and the intensification of trade; 

(c) 

strengthening of national institutions and bodies responsible for the elaboration 
and  the  effective  implementation  of  policies  in  areas  covered  in  association 
agreements,  partnership  and  cooperation  agreement  and  other  future 
comparable agreements; 

(d)  promoting sustainable development; 

(e) 

promoting  environmental  protection  and  good  management  of  natural 
resources; 

(f) 

supporting policies aimed at poverty reduction; 

(g) 

supporting  policies  to  promote  social  development  and  gender  equality, 
employment  and  social  protection  including  social  dialogues,  and  respect  for 
trade union rights and core labour standards; 

(h) 

supporting policies to promote health, education and training; 

(i) 

promoting  and  protecting  human  rights  and  fundamental  freedoms  and 
supporting the democratisation process, including through electoral observation 
and assistance; 

(j) 

fostering the development of civil society; 

(k)  promoting  the  development  of  a  market  economy,  including  measures  to 
support the private sector, encourage investment and promote global trade; 

(l) 

promoting cooperation in the energy, telecommunication and transport sectors 
including  on  interconnections,  the  networks  and  their  operations,  the  security 
and  safety  of  international  transport  and  energy  operations,  renewable  energy 
sources, energy efficiency and clean transport; 

(m)  providing support to actions aimed at increasing food safety for the citizens, in 

particular in the sanitary and phytosanitary domains; 

(n) 

ensuring efficient and secure border management; 

(o)  promoting  cooperation  in  the  field  of  justice  and  home  affairs,  including  on 
issues  such  as  asylum  and  migration  and  the  fight  against  and  prevention  of 
terrorism  and  organised  crime,  including  its  financing,  money  laundering  and 
tax fraud; 

(p) 

supporting  administrative  cooperation  to  improve  transparency  and  the 
exchange  of  information  in  the  area  of  taxation  in  order  to  combat  tax 
avoidance and evasion; 

(q)  promoting participation in Community research and innovation activities; 

EN 

15 

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(r) 

(s) 

(t) 

promoting  cooperation  between  the  Member  States  and  partner  countries  in 
higher education and mobility of teachers, researchers and students; 

promoting  understanding  between  cultures,  people-to-people  contacts, 
cooperation between civil societies and exchanges of young people; 

supporting  participation  of  partner  countries  in  Community  programmes  and 
agencies; 

(u) 

supporting  crossborder  cooperation  to  promote  sustainable  economic,  social 
and environmental development in border regions; 

(v)  promoting regional cooperation and integration; 

(w)  providing  support  in  post-crisis  situations,  including  support  to  refugees  and 
in  conflict  prevention  and  disaster 

displaced  persons,  and  assisting 
preparedness; 

(x) 

(y) 

encouraging  communication  and  promoting  exchange  among  the  partners  on 
the measures and activities financed under the programmes; 

addressing  common  thematic  challenges  in  fields  of  mutual  concern  and  any 
other objectives consistent with the scope of this Regulation. 

Article 3 

Policy framework  

The partnership and cooperation agreements, the association agreements and other existing or 
future  agreements  which  establish  a  relationship  with  partner  countries,  and  the  relevant 
Commission communications and Council conclusions laying down guidelines for European 
Union  policy  towards  these  countries,  shall  provide  an  overall  policy  framework  for  the 
programming  of  assistance  under  this  Regulation.  Jointly  agreed  action  plans  or  other 
equivalent documents shall provide a key point of reference for setting assistance priorities. 

Article 4 

Complementarity, partnership and cofinancing 

(1) 

(2) 

(3) 

Community  assistance  under  this  Regulation  shall  normally  complement  or 
contribute to corresponding national, regional or local measures. 

Community  assistance  under  this  Regulation  shall  normally  be  established  in 
partnership  between  the  Commission  and  the  beneficiaries.  The  partnership  shall 
involve, as appropriate, national, regional and local authorities, economic and social 
partners, civil society and other relevant bodies. 

The  beneficiary  countries  shall  associate  the  relevant  partners  as  appropriate,  in 
particular  at  regional  and  local  level,  in  the  preparation,  implementation  and 
monitoring of programmes and projects. 

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16 

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(4) 

Community  assistance  under  this  Regulation  shall  normally  be  cofinanced  by  the 
beneficiary  countries  through  public  funds,  contributions  from  the  beneficiaries  or 
other sources. 

Article 5 

Coherence, compatibility and coordination 

(1) 

(2) 

(3) 

(4) 

Programmes  and  projects  financed  under  this  Regulation  shall  be  consistent  with 
Community  policies.  They  shall  comply  with  the  agreements  concluded  by  the 
Community  and  its  Member  States  with  the  partner  countries  and  respect 
commitments under multilateral agreements to which they are parties. 

The Commission and the Member States shall ensure coherence between Community 
assistance  provided  under  this  Regulation  and  financial  assistance  provided  by  the 
Community  and  the  Member  States  through  other  internal  and  external  financial 
instruments and by the European Investment Bank. 

The Commission and the Member States shall ensure coordination of their respective 
assistance programmes with the aim of increasing effectiveness and efficiency in the 
delivery of assistance through progressive harmonisation of policies and procedures. 
Coordination shall involve the frequent and regular exchange of relevant information 
in  particular  at  field  level  and  shall  constitute  a  key  step  in  the  programming 
processes of the Member States and the Community. 

The Commission will, in liaison with the Member States, take the necessary steps to 
ensure  proper  coordination  and  cooperation  with  multilateral  and  regional 
organisations and entities, such as international financial institutions, United Nations 
agencies, funds and programmes, and non-EU donors. 

TITLE II 

PROGRAMMING AND ALLOCATION OF FUNDS 

Article 6 

Type of programmes 

(1) 

Community assistance shall be provided under this Regulation by means of: 

(a) 

(b) 

country  or  multicountry  programmes,  covering  assistance  to  one  partner 
country  or  addressing  regional  and  subregional  cooperation  between  two  or 
more partner countries, in which Member States may participate; 

thematic  programmes,  addressing  one  or  more  specific  challenges  which  are 
common to several partner countries and which may be relevant to one or more 
Member States; 

EN 

17 

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(c) 

crossborder  cooperation  programmes,  covering  cooperation  between  one  or 
more Member States and one or more partner countries, taking place in regions 
adjacent  to  their  shared  part  of  the  external  border  of  the  European 
Community. 

Community  assistance  may  be  provided  under  this  Regulation  to  transregional 
cooperation involving partner countries and Member States in the context of thematic 
programmes  and  multicountry  programmes  addressing  regional  and  subregional 
cooperation. 

Article 7 

Programming and allocation of funds 

For  country  or  multicountry  and  thematic  programmes,  strategy  papers  shall  be 
adopted,  in  accordance  with  the  procedure  referred  to  in  Article  26(2).  Strategy 
papers shall reflect the policy framework and the action plans referred to in Article 3. 
Strategy papers shall be established for a period compatible with the priorities set in 
the policy framework and shall contain multiannual indicative programmes including 
indicative  multiannual  financial  allocations.  They  shall  be  reviewed  as  and  when 
necessary  and  may  be  revised  in  accordance  with  the  procedure  referred  to  in 
Article 26(2). 

In establishing country or multicountry programmes the Commission shall determine 
the  allocations  for  each  programme  taking  into  account  the  specific  characteristics 
and  the  needs  of  the  country  or  the  region  concerned,  the  level  of  ambition  of  the 
Union’s partnership with a given country, the management capacity and the potential 
for absorption of funds. 

For the sole purpose of crossborder cooperation, in order to establish the list of joint 
programmes referred to in Article 9(1), the indicative multiannual allocations and the 
territorial units eligible to participate in each programme, one or, if necessary, more 
specific strategy papers shall be adopted in accordance with the procedure referred to 
in Article 26(2). Such specific strategy paper(s) shall, in principle, cover a seven-year 
period from 1 January 2007 to 31 December 2013. 

The  European  Regional  Development  Fund  will  contribute 
to  crossborder 
cooperation  programmes  established  and  implemented  under  the  provisions  of  this 
Regulation.  The  overall  budget  to  be  allocated  to  crossborder  cooperation 
programmes,  including  the  contribution  from  the  European  Regional  Development 
Fund  for  borders  with  partner  countries,  shall  be  at  least  equivalent  to  twice  the 
amount  set  out  in  the  relevant  provisions  of  Regulation  (EC)  No  […]  laying  down 
general  provisions  on  the  European  Regional  Development  Fund,  the  European 
Social Fund and the Cohesion Fund for the borders with partner countries. 

In  the  event  of  crises  or  threats  to  democracy,  the  rule  of  law,  human  rights  or 
fundamental freedoms,  an emergency  procedure may  be  used to  conduct  an  ad  hoc 
review  of strategy  papers. This  review shall ensure  coherence between Community 
assistance  provided  under  this  Regulation  and  assistance  provided  under  other 

(2) 

(1) 

(2) 

(3) 

(4) 

(5) 

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Community financial instruments, including Regulation (EC) No […] establishing an 
instrument for stability. 

TITLE III  

CROSSBORDER COOPERATION 

Article 8 

Geographical eligibility 

(1) 

The crossborder cooperation programmes referred to in Article 6(1)(c) may cover all 
land  borders  and  all  maritime  zones  facing  a  common  sea  basin.  The  following 
territorial units shall be eligible for assistance under this Title: 

(a) 

(b) 

(c) 

all  territorial  units  corresponding  to  NUTS  III-level  or  equivalent  along  the 
land borders between Member States and partner countries; 

all  territorial  units  corresponding  to  NUTS-III  level  or  equivalent  along  sea 
crossings of significant importance; 

all coastal territorial units corresponding to NUTS-II level or equivalent facing 
a sea basin common to Member States and partner countries. 

In  special  cases,  eligibility  may  be  extended  to  territorial  units  adjoining  those 
referred to in paragraph 1. 

The  list  of  sea  crossings  of  significant  importance  shall  be  defined  by  the 
Commission in the strategy paper referred to in Article 7(3) of this Regulation on the 
basis of distance and other relevant geographical and economic criteria. 

Article 9 

Programming 

Crossborder cooperation under this Regulation shall be carried out in the framework 
of multiannual programmes covering cooperation for a border or a group of borders 
and comprising multiannual measures which pursue a consistent set of priorities and 
which  may  be  implemented  with  the  support  of  Community  assistance  (hereinafter 
‘joint  programmes’).  The  joint  programmes  shall  be  based  on  the  specific  strategy 
paper(s) referred to in Article 7(3). 

Joint programmes for land borders and sea crossings shall be established per border 
and include eligible territorial units belonging to one or more Member States and one 
or more partner countries. Joint programmes for coastal regions shall be multilateral 
and include eligible territorial units facing a common sea basin belonging to several 
participating countries, including at least one Member State and one partner country. 

(2) 

(3) 

(1) 

(2) 

(3) 

Countries  other  than  the  participating  countries  which  face  a  common  sea  basin 
where  a  joint  programme  is  being  established  may  be  associated  with  that  joint 

EN 

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(4) 

(5) 

(6) 

(7) 

(8) 

(1) 

(2) 

(3) 

programme and benefit from Community assistance under the conditions determined 
in the implementing rules referred to in Article 11. 

Within one year of the approval of the strategy paper referred to in Article 7(3), the 
participating  countries  shall  jointly  submit  proposals  for  joint  programmes  to  the 
Commission. The Commission shall adopt each joint programme after assessing its 
consistency with this Regulation and the implementing rules. 

Joint programmes may be revised at the initiative of the participating countries or the 
Commission  to  take  into  account  changes  in  cooperation  priorities,  socio-economic 
developments, the results observed from implementation of the measures concerned 
and from the monitoring and evaluation process, and the need to adjust the amounts 
of aid available and reallocate resources. 

Following  the  adoption  of  the  joint  programmes,  the  Commission  shall  conclude  a 
financing agreement with the participating countries in accordance with the relevant 
provisions  of  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002,  the 
Financial  Regulation  applicable 
the  European 
Communities.15 

the  general  budget  of 

to 

Participating countries shall, taking into account the principle of partnership, jointly 
select  those  actions  consistent  with  the  priorities  and  measures  of  the  joint 
programme that will receive Community assistance. 

In exceptional circumstances, where a joint programme cannot be established owing 
to problems arising in relations between participating countries, the Commission may 
adopt  a  programme  which  is  not  a  joint  programme  within  the  meaning  of  this 
Article  but  which  allows  the  Member  State  border  region  or  regions  concerned  to 
benefit from the assistance provided for in this Regulation. 

Article 10 

Management of programmes 

Joint programmes shall, in principle, be implemented by a joint managing authority 
located in a Member State. 

The  participating  countries  may  exceptionally  propose  to  the  Commission  that  the 
joint  managing  authority  should  be  located  in  a  partner  country,  provided  that  the 
designated body is in a position to apply in full the criteria laid down in the relevant 
provisions of Regulation (EC) No 1605/2002. 

‘Joint  managing  authority’  shall  mean  any  public  or  private  authority  or  body, 
including the state itself, at national, regional or local level, designated jointly by the 
Member  State  or  States  and  the  partner  country  or  countries  covered  by  a  joint 
programme, having the financial and administrative capacity to manage Community 
assistance and having the legal capacity to conclude the agreements necessary for the 
purpose of this Regulation. 

15 

OJ L 248, 16.9.2002, p. 1. 

EN 

20 

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(4) 

(1) 

(2) 

The  joint  managing  authority  shall  be  responsible  for  managing  and  implementing 
the  joint  programme  in  accordance  with  the  principle  of  sound  financial 
management,  and  for  ensuring  the  legality  and  regularity  of  its  operations.  To  this 
end,  it  shall  put  in  place  appropriate  management,  control  and  accounting  systems 
and standards. 

Article 11 

Implementing rules 

Implementing  rules  laying  down  specific  provisions  for  the  implementation  of  this 
Title shall be adopted in accordance with the procedure referred to in Article 26(2). 

Matters covered by the implementing rules shall include criteria and procedures for 
allocations  of  funds,  rate  of  cofinancing,  preparation  of  joint  programmes,  joint 
project  selection,  technical  and  financial  management  of  the  assistance,  financial 
control and audit, monitoring and evaluation, visibility and publicity. 

TITLE IV 

IMPLEMENTATION 

Article 12 

Adoption of action programmes 

(1) 

The Commission shall adopt, normally on an annual basis, action programmes drawn 
up on the basis of the strategy papers referred to in Article 7(1).  

Exceptionally, for instance where an action programme has not yet been adopted, the 
Commission  may,  on  the  basis  of  the  strategy  papers  and  multiannual  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. 

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 
indicative 
indication  of 
implementation timetable. 

the  amounts  allocated  for  each  operation  and  an 

For crossborder cooperation the Commission shall adopt joint programmes according 
to the procedures referred to in Article 9. 

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

(2) 

(3) 

(4) 

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Article 13 

Adoption of special measures not provided for in the strategy papers or multiannual indicative 
programmes 

(1) 

In  the  event  of  unforeseen  needs  or  circumstances,  the  Commission  shall  adopt 
special  measures  not  provided  for  in  the  strategy  papers  or  multiannual  indicative 
programmes (hereinafter “special measures”). 

Special  measures  may  also  be  used  to  fund  activities  to  ease  the  transition  from 
emergency  aid  to  long-term  development  activities,  including  activities  intended  to 
ensure that the public is better prepared to deal with recurring crises.  

(2) 

Where  the  cost  of  such  measures  exceeds  EUR  15  million,  the  Commission  shall 
adopt them under the consultation procedure referred to in Article 26(3). 

The  procedure  referred  to  in  Article  26(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  the  size  of  the  budget  by  less  than  20%  of  the  initial  budget,  provided 
these  amendments  do  not  affect  the  initial  objectives  set  out  in  the  Commission 
decision. 

(3) 

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 
indication  of 
indicative 
implementation timetable. 

the  amounts  allocated  for  each  operation  and  an 

(4) 

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

Article 14 

Eligibility 

The  following  shall  be  eligible  for  funding  under  this  Regulation  for  the  purposes  of 
implementing  action  programmes,  joint  crossborder  cooperation  programmes  and  special 
measures: 

(a) 

partner countries and regions and their institutions; 

(b)  decentralised  bodies  in  the  partner  countries,  such  as  regions,  departments, 

provinces and municipalities; 

(c) 

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

(d) 

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

EN 

22 

   EN 

 
 
(e)  Community institutions and bodies, but only for the purposes of implementing 

support measures of the type referred to in Article 16; 

(f)  European Union agencies; 

(g) 

the  following entities and bodies of the Member States, partner countries and 
regions and any other third country complying with the rules on access to the 
Community's  external  assistance  referred  to  in  Article 21,  in  so  far  as  they 
contribute to the objectives of this Regulation: 

i. 

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

ii. 

companies, firms and other private organisations and businesses; 

iii. 

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

iv. 

non-state actors as defined in (h); 

v. 

natural persons; 

(h) 

the following non-state actors: 

i. 

non-governmental organisations; 

ii. 

organisations representing indigenous peoples; 

iii. 

local citizens' groups and traders' associations; 

iv. 

v. 

vi. 

cooperatives,  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; 

vii.  universities; 

viii.  churches and religious associations and communities; 

ix. 

the media; 

x. 

any non-governmental associations and independent foundations likely to 
contribute to development; 

(i) 

any body or actor necessary to achieve the objectives of this Regulation. 

EN 

23 

   EN 

 
Article 15 

Types of measures 

(1) 

Community assistance shall be used to finance programmes, projects and any type of 
measure  contributing  to  the  objectives  of  this  Regulation.  It  shall  take  the  form  of 
non-reimbursable grants. 

(2) 

Community assistance may also be used: 

(a) 

(b) 

to  finance  targeted  administrative  cooperation  measures  involving  public-
sector  experts  dispatched  from  Member  States  according  to  specifically 
designed rules; 

for  sectoral  or  general  budget  support if  the  partner  country's  management  of 
public spending is sufficiently transparent, reliable and effective, and where it 
has  put  in  place  properly  formulated  sectoral  or  macroeconomic  policies 
approved  by  its  principal  donors,  including,  where  relevant,  the  international 
financial institutions; 

(c) 

for debt-relief programmes; 

(d) 

for  contributions  to  the  European  Investment  Bank  or  other  financial 
intermediaries,  in  accordance  with  the  provisions  of  Article  24,  for  loan 
financing, equity investments, guarantee funds or investment funds; 

(e) 

to provide interest-rate subsidies, in particular for environmental loans; 

(f) 

to provide insurance against non-commercial risks; 

(g) 

(h) 

(i) 

to contribute to a fund established by international and regional organisations, 
other donors or partner countries; 

to contribute to the capital of international financial institutions or the regional 
development banks; 

to finance the costs necessary for the effective administration and supervision 
of  projects  and  programmes  by  the  countries  benefiting  from  Community 
assistance; 

(j) 

for food aid; 

(k) 

for other purposes, as appropriate. 

Article 16 

Support measures 

(1) 

Community  financing  may  also  cover  expenditure  associated  with  the  preparation, 
follow-up,  monitoring,  auditing  and  evaluation  activities  directly  necessary  for  the 
implementation  of  this  Regulation  and  for  the  achievement  of  its  objectives,  e.g. 

EN 

24 

   EN 

 
studies, meetings, information, awareness-raising, 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 at 
Commission Delegations on the administrative support needed to manage operations 
financed under this Regulation. 

(2) 

These  support  measures  are  not  necessarily  covered  by  multiannual  programming 
and may therefore be financed outside the scope of strategy papers and multiannual 
indicative  programmes.  However,  they  may  also  be  financed  under  multiannual 
indicative  programmes.  The  Commission  shall  adopt  support  measures  not  covered 
by multiannual indicative programmes in accordance with Article 13. 

Article 17 

Cofinancing 

(1) 

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

(a)  Member States, and in particular their public and parastatal agencies; 

(b)  other donor countries, and in particular their public and parastatal agencies; 

(c) 

(d) 

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

companies,  firms,  other  private  organisations  and  businesses,  and  other 
non-state actors; 

(e) 

partner countries and regions in receipt of funding. 

(2) 

(3) 

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  the  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  paragraph  1(a)  (b)  and  (c)  for  the  purpose  of 
implementing  joint  measures.  Such  funds  shall  be  treated  as  assigned  revenue,  in 
accordance with Article 18 of Regulation (EC) No 1605/2002. 

EN 

25 

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Article 18 

Management procedures 

The  Commission  shall  implement  operations  under  this  Regulation  in  accordance 
with Regulation (EC) No 1605/2002. 

In  the  event  of  cofinancing  and  in  other  duly  justified  cases,  the  Commission  may 
entrust tasks of public authority, and in particular budget implementation tasks, to the 
bodies indicated in Article 54(2)(c) of Regulation (EC) No 1605/2002. 

The Commission shall conclude framework agreements with partner countries which 
shall  provide  for  all  measures  necessary  to  ensure  the  effective  implementation  of 
Community assistance and protection of the Community’s financial interests. 

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

–  the procedures of the beneficiary partner country or region satisfy the principles of 
transparency, proportionality, equal treatment and non-discrimination and prevent 
any conflict of interests; 

–  the  beneficiary  partner  country  or  region  undertakes  to  check  regularly  that  the 
operations financed by the Community budget have been properly implemented, 
to take appropriate measures to prevent irregularities and fraud, and, if necessary, 
to take legal action to recover unduly paid funds. 

Article19 

Budget commitments 

Budget  commitments  shall  be  made  on  the  basis  of  decisions  taken  by  the 
Commission in accordance with Articles 9(5), 12(1), 13(1) and 16(3). 

Budget commitments for measures extending over a number of financial years may 
be split into annual instalments, spread over a number of years. 

(1) 

(2) 

(3) 

(4) 

(1) 

(2) 

(3) 

Community financing may take one of the following legal forms, inter alia: 

–  financing agreements; 

–  grant agreements; 

–  procurement contracts; 

–  employment contracts. 

EN 

26 

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Article 20 

Protecting the Community's financial interests 

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) Nos 2988/95, No 2185/96 and No 1073/1999. 

Agreements  shall  expressly  entitle  the  Commission  and  the  Court  of  Auditors  to 
perform a document audit or an on-the-spot 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) No 2185/96. 

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

Article 21 

Participation in tenders and contracts 

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. 

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

–  any country that is a beneficiary under this Regulation, 

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

–  any Member State of the European Economic Area. 

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

The Commission may decide to open, wholly or partially, participation in the award 
of procurement or grant contracts financed under this Regulation to natural and legal 
persons of any other country in cases where reciprocal access to external assistance 
has been established. 

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 in the Community or a country eligible under paragraph 2. 

(1) 

(2) 

(3) 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

EN 

27 

   EN 

 
(7) 

(8) 

The  Commission  may,  in  duly  substantiated  cases,  authorise  the  participation  of 
natural  and  legal  persons  from  countries  having  traditional  economic,  trade  or 
geographical links with neighbouring countries or from other third countries, and the 
use of supplies and materials of different origin. 

Where assistance under this Regulation is managed by a joint managing authority, as 
referred to in Article 10, delegated to national bodies, as referred to in Article 18, or 
jointly  managed  with  international  organisations,  the  procurement  rules,  including 
those for participation in the award of procurement and grant contracts, and the rules 
of origin shall be those applied by the management body. Participation in the award 
of  procurement  and  grant  contracts  shall  be  open  to  all  natural  and  legal  persons 
referred to in paragraphs (1), (2), (3) and (4) and to all natural and legal persons of 
any other country, in accordance with the rules of the management body. 

Article 22  

Prefinancing 

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

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

Article 23 

(1) 

(2) 

(1) 

The  funds  referred  to  in  Article  15(2)(c)  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  paragraph 1  on  a 
case-by-case  basis  to  cover  risk-sharing,  the  remuneration  of  the  intermediary 
responsible  for  implementation,  the  use  and  recovery  of  profits  on  funds,  and  the 
closure of the operation. 

Article 24 

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. 

(2) 

The  Commission  shall  send  its  evaluation  reports  to  the  Committee  referred  to  in 
Article 26 for information. 

EN 

28 

   EN 

 
TITLE V 

FINAL PROVISIONS 

Article 25 

Annual report 

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

Article 26 

Committee 

(1) 

(2) 

(3) 

The Commission shall be assisted 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  that  Decision 
shall be 30 days. 

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

(4) 

The committee shall adopt its rules of procedure. 

Article 27 

Participation by a third country not eligible under this Regulation 

To  ensure  the  coherence  and  effectiveness  of  Community  assistance,  the  Commission  may 
decide when adopting action programmes of the type referred to in Article 12 or the special 
measures  referred  to  in  Article  13,  that  countries,  territories  and  regions  eligible  for 
Community  assistance  under  the  Pre-Accession  Instrument  or  the  financing  instrument  for 
development and economic cooperation and the overseas countries and territories associated 
with  the  Community  are  eligible  for  measures  under  this  Regulation  where  the  project  or 
programme implemented is of a global, regional or crossborder nature. 

Provision may be made for this method of financing possibility in the strategy papers referred 
to in Article 7. 

The provisions of Article 14 concerning eligibility and the provisions of Article 16 concerning 
participation in procurement procedures shall be adapted to allow the countries, territories or 
regions concerned to take part. 

EN 

29 

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Article 28 

Suspension of assistance 

Without prejudice to the provisions on the suspension of aid in partnership and cooperation 
agreements  and  association  agreements  with  partner  countries  and  regions,  where  a  partner 
country fails to observe the principles referred to in Title I, the Council, acting by a qualified 
majority  on  a  proposal  from  the  Commission,  may  take  appropriate  steps  in  respect  of  any 
assistance granted to the partner country under this Regulation. 

Article 29 

Financial reference amount 

The  financial  reference  amount  for  implementation  of  this  Regulation  over  the  period 
2007-2013  is  €  14  929  million.  Annual  appropriations  shall  be  authorised  by  the  budgetary 
authority within the limits of the financial perspectives. 

Article 30 

Review 

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

the  European  Parliament  and 

to 

Article 31 

Repeal 

(1) 

As of 1 January 2007, the following Regulations are repealed: 

–  Council Regulation (EEC) No 1762/92 of 29 June 1992 on the implementation of 
the Protocols on financial and technical cooperation concluded by the Community 
with Mediterranean non-member countries 

–  Council Regulation (EC) No 1734/94 of 11 July 1994 on financial and technical 

cooperation with the Occupied Territories 

–  Council Regulation (EC) No 1488/96 of 23 July 1996 on financial and technical 
measures to accompany (MEDA) the reform of economic and social structures in 
the framework of the Euro-Mediterranean partnership 

–  Council Regulation (EC, Euratom) No 99/2000 of 29 December 1999 concerning 
the  provision  of  assistance  to  the  partner  States  in  Eastern  Europe  and  Central 
Asia. 

(2) 

The repealed Regulations shall continue to apply for legal acts and commitments of 
pre-2007 budget years. 

EN 

30 

   EN 

 
Article 32 

Entry into force 

This Regulation shall enter into force twenty days after 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 European Parliament 
The President 
[…] 

For the Council 
The President 
[…] 

EN 

31 

   EN 

 
ANNEX 

Partner countries referred to in Article 1 

Algeria 

Armenia 

Azerbaijan 

Belarus 

Egypt 

Georgia 

Israel 

Jordan 

Lebanon 

Libya 

Moldova 

Morocco 

Palestinian Authority of the West Bank and Gaza Strip 

Russian Federation 

Syria 

Tunisia 

Ukraine 

EN 

32 

   EN 

 
 
LEGISLATIVE FINANCIAL STATEMENT  

Policy area(s): EXTERNAL RELATIONS 

Activit(y/ies): 

MULTILATERAL RELATIONS AND GENERAL EXTERNAL RELATIONS MATTERS 16 

EUROPEAN INITIATIVE FOR DEMOCRACY AND HUMAN RIGHTS (EIDHR) 16 

RELATIONS  WITH  EASTERN  EUROPE,  THE  CAUCASUS  AND  CENTRAL  ASIAN 
REPUBLICS 16 

RELATIONS WITH THE MIDDLE EAST AND SOUTHERN MEDITERRANEAN 

POLICY  STRATEGY  AND  COORDINATION  FOR  POLICY  AREA  ‘EXTERNAL 
RELATIONS’16  

EXTERNAL ASPECTS OF INTERNAL POLICIES 

TITLE OF ACTION: EUROPEAN NEIGHBOURHOOD AND PARTNERSHIP INSTRUMENT (ENPI) 

1. 

BUDGET LINES 

Administrative Expenditures 

External Aspects of internal policies 

06 01 04 09 

Intelligent energy – Expenditures on administrative management (partially) 

07 01 04 05  LIFE European Financial Instrument for the Environment — 2000 to 2006) —
Operations  outside  Community  territory  —  Expenditure  on  administrative
management (partially) 

External Relations policy area 

19 01  ADMINISTRATIVE  EXPENDITURE  OF  POLICY  AREA 
RELATIONS”  

“EXTERNAL 

19 01 04 06  MEDA  (measures  to  accompany  the  reforms  of  the  economic  and  social
structures  in  the  Mediterranean  non-member  countries)  –  Expenditure  on
administrative management  

19 01 04 07  Assistance  to  partner  countries  in  eastern  Europe  and  central  Asia  –

Expenditure on administrative management (partially) 

16 

Partially, as some of the actions currently covered under this budget heading will be covered under the 
Economic Co-operation and Development Instrument and/or the Stability instrument. 

EN 

33 

   EN 

 
 
 
 
 
 
 
                                                 
19 01 04 11  Development and consolidation of democracy and the rule of law – Respect for
human  rights  and  fundamental  freedoms  –  Expenditure  on  administrative
management (partially) 

19 01 04 12  Promotion  of  Community  investment  in  developing  countries  of  Latin
America,  Asia,  the  Mediterranean  and  in  South  Africa  by  economic 
co-operation  and 
trade  agreements  –  Expenditure  on  administrative
management (partially) 

19 49  EXPENDITURE  ON  ADMINISTRATIVE  MANAGEMENT  OF  PROGRAMMES 
COMMITTED IN ACCORDANCE WITH THE FORMERFINANCIAL REGULATION 

19 49 04 06  Assistance  to  partner  countries  in  eastern  Europe  and  central  Asia  –

Expenditure on administrative management (partially) 

19 49 04 10  Development and consolidation of democracy and the rule of law – Respect for
human  rights  and  fundamental  freedoms  –  Expenditure  on  administrative
management (partially) 

19 49 04 11  Promotion  of  Community  investment  in  developing  countries  of  Latin
America,  Asia,  the  Mediterranean  and  in  South  Africa  by  economic 
co-operation 
on
and 
administrativemanagement (partially) 

Expenditure 

agreements 

trade 

– 

19 49 04 12  MEDA  (measures  to  accompany  the  reforms  of  the  economic  and  social
structures  in  the  Mediterranean  non-member  countries)  –  Expenditure  on
administrative management 

Operational expenditures 

External Aspects of internal policies 

06 04 02 

07 02 02 

Intelligent  energy  —  Europe  programme  (2003  to  2006):  external  strand  —
Coopener (partially) 

LIFE (European Financial Instrument for the Environment — 2000 to 2006 —
Operations outside Community territory (partially) 

14 03 02 

Customs co-operation and international assistance (Customs 2007) (partially) 

External Relations policy areas 

19 02  MULTILATERAL  RELATIONS  AND  GENERAL  EXTERNAL  RELATIONS 
MATTERS 

19 02 02 

Institutes  specialising  in  relations  between  the  European  Union  and  third
countries 

19 02 03 

Cooperation with third countries on migration (partially) 

EN 

34 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
19 02 07 

Promotion  of  Community  investment  in  developing  countries  of  Latin
America,  Asia,  the  Mediterranean  and  in  South  Africa  by  economic
cooperation and trade agreements (partially) 

19 02 11 

North-South  cooperation  schemes  in  the  campaign  against  drugs  and  drug
addiction (partially) 

19 04  EUROPEAN INITIATIVE FOR DEMOCRACY AND HUMAN RIGHTS (EIDHR) 

19 04 02 

Support for the victims of human rights’ abuses (partially) 

19 04 03 

19 04 04 

Development and consolidation of democracy and the rule of law – Respect for
human rights and fundamental freedoms (partially) 

Support  for  the  activities  of  international  criminal  tribunals  and  the
International Criminal Court (partially) 

19 06  RELATIONS  WITH  EASTERN  EUROPE,  THE  CAUCASUS  AND  CENTRAL 
ASIAN REPUBLICS 

19 06 01 

Assistance to partner countries in Eastern Europe and central Asia (partially) 

19 06 02 

Cross-border cooperation in structural matters (partially) 

19 06 04 

Rehabilitation and reconstruction operations in the partner countries of Eastern
Europe and central Asia (partially) 

19 08  RELATIONS WITH THE MIDDLE EAST AND SOUTHERN MEDITERRANEAN 

19 08 01 01  First  and  Second  Financial  Protocols  with  the  southern  Mediterranean

countries 

19 08 01 02  Third  and  Fourth  Financial  Protocols  with  the  southern  Mediterranean

countries 

19 08 02 01  MEDA  (measures  to  accompany  the  reforms  to  the  economic  and  social

structures In the Mediterranean non-member countries) 

19 08 02 02  Community  contribution  to  the  Euro-Mediterranean  Investment  Facility  and

Partnership 

19 08 03 

Community operations connected with the Israel / PLO peace agreement 

19 08 04 

19 08 05 

Aid to the United Nations Relief and Works Agency for Palestinian Refugees
in the Near East 

Rehabilitation and reconstruction operations in the Mediterranean and Middle
Eastern countries (partially) 

19 08 06 

Other operations in favour of Middle East developing countries (partially) 

EN 

35 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
2. 

2.1 

2.2 

2.3 

(a) 

OVERALL FIGURES 

Total allocation for action (Part B): € 14 929 million  

Period of application: 2007-2013 

Overall multiannual estimate of expenditure: (current prices)  

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

(financial 

€ million (to three decimal places) 

2007 

2008 

2009 

2010 

2011 

Commitments 

1.376 

1.506 1.802 

2.000 

2.229 

2012 

2013 
and 
followi
ng17 
2.536  2.883 

Total 

14.332 

Payments 

206 

432 

744 

1.117 

1.508 

1.816  8.509 

14.332 

(b1) 

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

Commitments 

Payments 

33 

33 

37 

37 

45 

45 

51 

51 

59 

59 

68 

68 

78 

78 

371 

371 

(b2) 

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

Commitments 

Payments 

24 

24 

26 

26 

30 

30 

32 

32 

34 

34 

38 

38 

42 

42 

226 

226 

Subtotal a+b 

Commitments 

1.433 

1.569 

1.877 

2.083 

2.322 

2.642 

3.003 

14.929 

Payments 

263 

495 

819 

1.200 

1.601 

1.922 

8.629 

14.929 

(c) 

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

Commitments/Paym
ents 

69 

78 

95 

107 

€ million (to three decimal places) 
777 

142 

122 

164 

17

“Following years” only applies to payments  

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
 
TOTAL a+ b2+c 

Commitments 

1.469 

1.610 

1.927 

2.139 

2.385 

2.716 

3.089 

15.335 

Payments 

299 

536 

869 

1.256 

1.664 

1.996 

8.715 

15.335 

2.4 

Compatibility with financial programming and financial perspective 

Proposal compatible with existing financial programming. 

2.5 

Financial impact on revenue 

Proposal has no financial implications on revenue. 

3. 

BUDGET CHRACTERISTICS 

Type of expenditure 

New 

EFTA 
contribution 

Contributions 
form applicant 
countries 

Heading in 
financial 
perspective 

Non-comp 

Diff 

YES 

NO 

NO 

4 

4. 

LEGAL BASE 

Article 181a and Article 179 of the EC Treaty. 

5. 

DESCRIPTION AND GROUNDS 

5.1. 

Need for Community intervention 

5.1.1.  Objectives pursued 

The European Council has repeatedly stated its determination that enlargement of the Union 
must  not  lead  to  new  dividing  lines  at  the  external  borders  of  the  EU  of  25.  The  European 
Neighbourhood  Policy  was  conceived  as  a  way  to  respond  to  this  challenge  and  develop 
increasingly close relations with our neighbours to the East and South. The Commission has 
presented  a  “Strategy  Paper  on  the  European  Neighbourhood  Policy”18  (ENP)  which  spells 
out  how  the  Union  will  continue  to  promote  stability,  security  and  prosperity  beyond  its 
borders by deepening political cooperation and intensifying economic relations with Russia, 
the Western NIS, the Southern Caucasus and the Southern Mediterranean countries. Regional 
and cross-border cooperation should be intensified.  

The  ENP  covers  a  wide  range  of  areas:  political  dialogue  and  reform;  trade;  measures 
preparing  partners  for  gradually  obtaining  a  stake  in  the  Internal  Market;  justice  and  home 
affairs;  energy,  transport,  information  society,  environment,  and  research  and  innovation; 
social  policy  and  people-to-people  contacts,  including  the  opening  of  certain  Community 
programmes; and cross-border and regional co-operation.  

18 

European Neighbourhood Policy Strategy Paper COM(2004) 373 [and separate explanatory note?]. 

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The  ENP  is  aimed  at  developing  the  full  potential  of  the  Association  Agreements  and 
Partnership and Cooperation Agreements which for the time being continue to constitute the 
contractual  frameworks  for  relations  between  the  EU  and  the  neighbouring  countries 
concerned.  

The  main  operational  tools  of  the  ENP  are  the  Action  Plans  drawn  up  jointly  with  partner 
countries.  Action  Plans  identify  priority  measures  for  political  and  economic  reform,  and 
enhanced co-operation in all the relevant areas. They will be a key point of reference for the 
country-specific programming of Community assistance (see 5.2). 

The development and consolidation of democracy and the rule of law, and respect for human 
rights and fundamental freedoms constitute key objectives of the European Union’s external 
policies.  Within  the  framework  of  the  present  Regulation  and  its  geographical  scope,  the 
European Community will contribute to the implementation of operations advancing respect 
for  human  rights  and  fundamental  freedoms,  promoting  and  strengthening  democratic 
processes,  including  where  appropriate  through  election  observation  and  assistance,  and 
developing and consolidating the rule of law and good governance. 

The proposed European Neighbourhood and Partnership Instrument (ENPI) will be the main 
financial instrument to support the implementation of ENP and it will focus in particular on 
supporting the implementation of the ENP Action Plans. Its scope will go beyond promoting 
objectives  such  as  sustainable  development  or  fighting  poverty  to  encompass  for  example 
considerable  support  for  measures  leading  to  progressive  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. 

The ENPI will improve the coherence and visibility of Community assistance and allow for 
simplified  delivery  mechanisms.  A  specific  and  innovative  feature  of  the  instrument  is  its 
cross  border  co-operation  component.  Under  this  component,  the  ENPI  will  finance  ”joint 
programmes” bringing together regions from 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. The cross border co-operation component 
of the ENPI will be co-financed by the European Regional Development Fund (ERDF).  

The  EU  and  Russia  have  decided  to  develop  their  relations  in  the  framework  of  a  Strategic 
Partnership based on four common spaces, rather than through the European Neighbourhood 
Policy. However, the issues discussed in this framework are largely similar to those dealt with 
in the ENP context. For this reason the ENPI will also cover Community assistance to Russia.  

The partner countries’ ability to meet the commitments of the Action Plans and thus move to 
a more advanced stage of relations with the EU will constitute the main indicator of success 
for  the  proposed  approach.  Periodic  reporting  by  the  Commission  on  progress  in  the 
implementation of the Action Plans through the institutional framework already in place (sub-
committees etc.) will provide a constant feedback. 

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5.1.2.and 5.1.3 

Ex post and ex ante evaluation  

a) The work of the Peace Group 

The Commission carried out in the second half of 2003 an extensive high-level review of the 
whole range of European Community external instruments, in the context of the preparation 
of  its  proposals  for  the  new  financial  perspectives.  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 “Building our Common Future, Policy Challenges and Budgetary Means of 
the Enlarged Union 2007-2013”19. The need to align objectives and instruments more closely 
to European Union values and interests was identified as being fundamentally important. 

In particular, the “Peace Group” underlined that the European Union’s values, reflected by its 
democratic tradition, social model and integration experience, include human dignity, the rule 
of  law,  human  rights,  solidarity,  equality  between  the  sexes,  adherence  to  the  multilateral 
system  of  the  United  Nations  and  support,  within  the  multilateral  economic  system,  for 
regionalism as a force for development and stability. It emphasised that its interests drive the 
European Union to promote stable international growth founded on sustainable development. 
In  this  way  it  guarantees  itself  increasing  outlets  and  quality  jobs  on  competitive,  open  and 
regulated  markets.  Finally,  the  “Peace  Group”  recommended  that  the  European  Union 
promotes its values and interests by operating simultaneously as a continental power, and as a 
global economic and political player. 

As far as external community instruments are concerned, the “Peace Group” recognised that 
the European Union's co-operation and assistance policy is the result of 50 years of successive 
sedimentation, which results in a multiplication of assistance instruments and a fragmentation 
of  aid  management  both  in  terms  of  programming  and  implementation  functions  (even  if 
recent policy and structural reforms have helped to improve coherence and consistency of the 
European Union's co-operation and assistance policy). 

The “Peace Group” put forward that the European Union’s framework for external assistance 
should be rationalised and simplified by a reduction in the number of legal bases, the number 
of budget lines, and the number of programmes. More precisely, it recommended that: 

–  the  complex  structure  of  existing  aid  programs  (EDF,  ALA,  MEDA,  TACIS,  CARDS, 
etc…)  covering  a  wide  range  of  interventions  (peacekeeping  and  post-crisis  operations; 
rehabilitation;  economic  reforms;  projects;  human  rights  programs;  budgetary  support) 
should be significantly streamlined; 

–  European  Community  and  Member  States  policies  and  implementation  should  be 

harmonised. 

19 

COM(2004) 101 du 10 février 2004. 

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Furthermore, the “Peace Group” underlined the following points: 

–  Large geographic programmes based on the principles of ownership and partnership with 
partner countries and regions and thematic programmes allowing for policy initiatives by 
the Community should be maintained; 

–  Strategy  papers,  subject  to  regular  reviews,  are  the  right  tool  to  ensure  overall  policy 
coherence and to respect external policy objectives in the different areas as well as in the 
external aspects of internal policies; 

–  Resources  should  be  allocated  to  partner  countries  according  to  expected  and  measured 
performances  and  strategy  papers  process,  backed  up  by  stronger  analytical  capabilities, 
should confront goals and achievements; 

–  Performance-based allocations do not mean increased conditionality in the traditional sense 
and  the  issue  of  political  conditionality  should  be  approached  cautiously,  on  the  basis  of 
lessons drawn from experience; 

–  Though this is not necessarily a solution in each and every case, such concerns for results, 
namely the political and economic reforms in the partner countries, leads the Commission 
to suggest, where possible, moving further financial and technical assistance from projects 
towards  sector  programmes,  budget  support  and  macro-economic  financial  assistance 
which  facilitate  both  the  absorption  by  the  partner  country  since  its  own  budgetary 
procedures  are  used,  and  donors’  co-ordination  as  well  as  quick  disbursement  subject  to 
compliance though. 

The  current  proposal  also  takes  account  of  the  vast  literature  of  work  on  development,  the 
practice of other international and bi-lateral donors, as well as of the principles and objectives 
of the reform of the management of external assistance launched by the Commission in May 
2000. 

b) Evaluation of existing instruments operating in neighbouring counries -introduction 

The  ENPI  is  a  policy-driven  instrument  that  will  bring  more  coherence  in  the  delivery  of 
Community  assistance  to  all  countries  covered  by  the  ENP.  It  will  replace  TACIS,  MEDA 
and  a  number  of  thematic  programmes.  It  will  also  replace  the  cross-border  cooperation 
programmes financed by TACIS and MEDA as well as by Interreg.  

All  these  instruments  have  been  in  operation  for  some  time,  during  which  considerable 
evaluation work has been carried out.  

Regarding  MEDA  II,  this  continuous  evaluation  and  refinement  process  will  culminate  in  a 
major overall evaluation to be reviewed by the Council in 2006. Its outcome will provide a 
major input to an ex ante evaluation for its successor instrument.  

As far as TACIS is concerned, a proposal for a revision of the regulation currently in force 
has  been  elaborated  for  the  period  2005-2006.  This  proposal  is  also  based  on  a  specific  ex 
ante evaluation. 

Cross  border  co-operation  has  been  subject  to  considerable  interim  and  ex  post  evaluation 
work  outlining  the  difficulties  that  different  budget  lines  and  different  programming  and 

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implementing structures have created to the financing of truly joint projects operating on both 
sides of the Union’s external borders. 

A  summary  of  the  findings  of  this  evaluation  work  is  given  below.  Lessons  learnt  in  this 
context have been used in the elaboration of the ENPI concept.  

b) TACIS 

A  detailed  ex  ante  evaluation  has  been  carried  out  for  a  revised  TACIS  regulation  for  the 
period  2005-2006.  It  included  detailed  stakeholder  consultation  and  ex  post  evaluation  of 
lessons learnt.  

The  evaluation  revealed  that  overall,  the  appropriateness  of  the  TACIS  approach  has  faded 
over time. At the time of initial design in the early 1990s, TACIS correctly identified the need 
to  support  to  democratic  and  economic  transition.  More  recently,  partner  countries  display 
widely  varying  results  in  terms  of  growth,  poverty  reduction,  democracy  and  credible 
reforms. In the face of this increased divergence, the focus on technical assistance is seen as 
far less appropriate.  

While  having  achieved  notable  results,  TACIS  has  consistently  had  difficulties  in  ensuring 
sufficient  ownership  by  partner  countries.  It  only  had  a  moderate  effect  on  overall  reforms. 
The procedures have been criticised as heavy and slow, thereby putting obstacles in the way 
of responsiveness and flexibility, essential elements for technical assistance.  

The evaluation has produced a list of recommendations including, inter alia: tailor assistance 
programmes better to country needs through greater differentiation; improve ability to support 
poverty reduction, pay more attention to capacity-building and the rule of law; conditionality 
should be linked to ongoing reform efforts; improve funding and coordination with Interreg 
and Phare CBC; improve the efficiency of the institutional set-up for implementation; and the 
strengthen ability to learn from experience and to disseminate lessons.  

c) MEDA  

The  MEDA  regulation  currently  in  force  provides  for  an  evaluation  to  be  done  by  31 
December 2005. This evaluation will provide further elements to improve programming and 
delivery of assistance under the ENPI.  

Meanwhile, there is an ongoing programme of evaluations, whose recommendations prepare 
the ground for the ex ante evaluation. Most recently an evaluation was conducted in 2003/04 
covering economic cooperation with seven MED partners: Algeria, Egypt, Jordan, Lebanon, 
Morocco, Syria and Tunisia. The main recommendations were: 

•  At strategic level: Continue and improve the practice of designing (and regularly 
updating)  an  explicit  strategy  at  country  level.  Assist  partner  countries  in 
identifying  their  strengths  and  weaknesses  with  respect  to  social  and  economic 
development, and in designing their own strategies and programmes to prepare the 
establishment of the Euro-Mediterranean Free-Trade-Area.  

•  At  programming  level:  Link  Structural  Adjustment  Facilities  and  technical 
assistance  projects.  Develop  complementarities  with  regional  programmes  and 
with EIB lending activities. Adopt a comprehensive approach to the financing of 

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41 

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SMEs.  The  newly  created  Facility  for  Euro-Mediterranean  Investment  and 
Partnership  (FEMIP)  is  a  very  important  step  in  this  direction.  Devote  more 
attention to the enhancement of trade and external economic relations.  

•  At  implementation  level:  Generally  speaking  the  process  of  “deconcentration” 
should favour more efficient management of the projects. Project preparation and 
monitoring should be strengthened. Where conditions are met, full responsibility 
for  the  management  should  be  given  to  local  authorities.  Support  to  the 
development of local consultancy capacities should be considered.  

d) Cross-border cooperation (CBC) 

the  Phare,  Tacis  and  Interreg  programmes.  Starting  with 

The  CBC  component  of  the  ENPI  builds  on  the  experience  of  promoting  cross-border 
cooperation  within 
the 
Communication  on  the  “New  Neighbourhood  Instrument”,  the  reflection  leading  to  the 
present  proposal  drew  heavily  upon  the  lessons  learnt  from  these  current  programmes. 
Therefore,  although  a  formal  ex  ante  evaluation  has  not  been  made  yet,  all  the  points  that 
should  be  covered  by  such  an  evaluation  as  specified  in  the  Financial  Regulation  and  its 
Implementing  Rules  have  been  addressed  at  the  reflection  stage.  Meetings  were  held  with 
evaluators and experts, and input received from NGOs.  

Interreg II (1994 – 99) was recently subjected to an ex-post evaluation commissioned by DG 
Regio (December 2003). The results are in general satisfactory with an extensive added value 
generated  by  the  programmes  of  all  its  strands.  Among  the  shortcomings  identified  were 
Member  States´  programme  management  and  difficulties  in  establishing  functioning  cross-
border  partnerships.  These  issues  deserve  of  course  special  attention  when  it  comes  to 
implementing a new instrument like the ENPI and fostering a “cooperation culture” in border 
regions  where  the  new  Member  States  have  limited  experience  of  CBC  and  the  Partner 
Countries no previous direct experience at all. 

CBC programmes have also been subject to audits in the past by the Court of Auditors. The 
CoA  remarked  the  absence  of  strong  co-ordination  mechanisms  for  CBC  projects  which 
involved funding under different instruments such as Interreg, Phare and Tacis. This problem 
has  also  been  identified  in  the  Commission’s  evaluations  and  addressing  it  is  one  of  the 
primary objectives of the ENPI. As regards Phare CBC, the existence of different Phare and 
Structural Funds rules for project selection, tendering, contracting and monitoring proved to 
be a deterrent to joint projects across the borders. The ENPI, as a unified instrument stressing 
joint ownership, should overcome the obstacles to joint programmes and projects.  

Other  observations  relevant  for  the  ENPI  included  that  the  allocation  of  funds  between 
countries did not adequately take into account their absorption capacities. The distribution of 
funds between larger and smaller projects and their cross-border impact was also questioned. 
Another  observation  concerned  delays  in  the  implementation  of  projects  due  to  lengthy 
procurement procedures and problems with customs clearance in the beneficiary countries.  

The observations and recommendations resulting from the various evaluation work referred to 
above have been taken into account for the drafting of the ENPI regulation here proposed.  

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42 

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e) Conclusions - Added value of Community intervention 

Effective  support  is  needed  to  underpin  a  policy  of  contributing  to  a  peaceful,  stable, 
democratic and prosperous neighbourhood. This new policy driven instrument is specifically 
designed for that purpose. 

There is also a gap to be bridged between the level of ambition of the policy and the resources 
currently  allocated  to  it  by  the  Community  and  its  Member  States.  Community  assistance 
remains below the expectation of the beneficiaries and most bilateral assistance programmes 
are small. 

Regarding CBC, the ENPI added value will first and foremost consist in addressing specific 
problems associated with national borders or issues of a transnational nature, which otherwise 
would  not  be  addressed.  The  ENPI  will  have  a  financial  leverage  effect  for  the  EU 
neighbouring countries/regions by matching national co-financing with EU funds. Finally the 
implementation of the ENPI will allow for the dissemination of sound financial management 
and good practice in terms of programming and project design, management, implementation, 
financial control, monitoring and evaluation. 

5.2. 

Action envisaged and budget intervention arrangements 

The Partnership and Co-operation agreements and the Association agreements will provide an 
overall policy framework for Community assistance. Where they exist, jointly agreed action 
plans  drawn  up  by  the  EU  and  each  partner  country  will  define  priorities  for  action  in  the 
areas described above.  

Within that framework it is expected that the instrument will promote enhanced co-operation 
and  progressive  economic  integration  between  the  EU  and  the  partner  countries.  In  that 
context  promoting  legislative  and  regulatory  approximation  to  encourage  progressive 
participation in the internal market and the intensification of trade is a key strategic objective 
of the instrument. 

While  the  ENP  provides  a  clear  policy  focus  for  the  instrument,  the  provision  of  assistance 
shall take into account, for those partner countries that are developing countries, the principles 
and objectives of the Community development policy.  

Individual  actions  and  measures,  specific  objectives  and  corresponding  criteria  to  measure 
their  attainment  will  be  defined  in  Country  Strategy  Papers  and  National  Indicative 
Programmes. These will be elaborated on the basis of the Action Plans and in-depth analyses 
of  a  given  country’s  situation  and  needs,  its  capacities  and  track-record  in  implementing 
commitments made, and also the level of ambition in our bilateral relations, such as the actual 
commitment to shared values.  

It is expected that the mix between the various objectives will vary considerably taking into 
account the specific situation of each of the 17 the countries concerned. While assistance to 
Ukraine or co-operation with Russia and Israel can focus mainly on legislative and regulatory 
approximation,  assistance  to  Moldova,  Azerbaijan  or  Egypt  should  continue  to  have  a 
significant  component  focussing  on  poverty  reduction  and  more  traditional  development 
objectives. Similarly the geographical, economic, social and cultural specificities of the two 
main “regional” groups covered by the instrument (Medierranean Countries on one side and 

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Russia,  WNIS  and  Southern  Caucasus  on  the  other)  should  be  adequately  reflected  in  the 
objectives to be pursued and the measures to be financed.  

The  ENPI  will  have  a  specific  component  covering  Cross  border  co-operation  between 
Member  Sates  and  partner  countries.  This  component  will  be  mainly  geared  towards 
promoting sustainable economic, social and environmental development in border regions of 
the  EU  and  the  member  states.  This  component  will  be  implemented  through  multi-annual 
programmes elaborated in partnership by the beneficiaries from both sides of the borders and 
approved  by  the  Commission.  In  addition  it  will  be  possible  to  associate  Member  States  to 
multi-country or thematic programmes through trans-regional co-operation addressing global 
challenges common to the EU and its neighbours.  

The ENPI will also cover external aspects of internal policies which, in the current financial 
perspective are covered under specific legal instruments. This will provide the possibility for 
mainstreaming thematic actions into country and regional programmes allowing for better co-
ordination  and  synergy.  The  regulation  also  provides  the  possibility  of  creating  thematic 
programmes  when  it  is  considered  appropriate  for  reasons  of  efficiency,  effectiveness  or 
visibility.  This  is  an  option  that  may  be  pursued  in  areas  such  as  Human  Rights,  migration 
management,  environment  or  students  mobility  and  co-operation  among  higher  education 
institutions. 

Concerning the field of promoting democratisation and the rule of law, and respect for human 
rights  and  fundamental  freedoms  a  thematic  programme  receiving  Community  support  in 
pursuit of the present Regulation’s objectives may include  

–  pertinent  global,  regional  and  country  projects  and  programmes  of  local  and  EU  non-

governmental and civil society based organisations, 

–  cooperation  with  international  organisations  in  the  field  of  democratisation  and  human 

rights. 

In  the  area  of  migration  management,  a  thematic  programme,  operating  in  complementarity 
with measures supported under country and regional programmes may focus on:  

–  the development of third country’s legislation in the field of legal immigration; 

–  the devlopment of legal migration; 

–  the development of legislation and national practices as regards international protection; 

–  the establishment in the third countries concerned of an effective and preventive policy in 
the  fight  against  illegal  migration,  including  the  fight  against  trafficking  in  human  being 
and smuggling of migrants, and the development of relevant legislation; 

Relevant  indicators  will  have  to  be  developed  for  each  measure.  The  extensive  experience 
already made will be useful, as reflected for instance in the Working Paper on Indicators for 
Interreg  developed  by  DG  REGIO.  They  will  cover  aspects  such  as  co-financing, 
multiplication effect, transfer of knowledge, capacity building.  

Target population: The ENPI targets over 400 million people in 17 countries. Russia and the 
Western NIS (Belarus, Ukraine, Moldova) have a total population of 208 million people, the 
countries of Southern Caucasus ( (Georgia, Armenia, Azerbaijan) 16 million people and the 

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countries  of  the  southern  Mediterranean  (  Syria,  Lebanon,  Israel,  the  Palestinian  Authority, 
Jordan, Egypt, Algeria, Tunisia, Libya, and Morocco) 176 milllion.  

It  is  estimated  that  around  65  million  people  in  member  states  and  partner  countries  will 
benefit from bilateral cross border co-operation programme and over 175 million people will 
be involved into multi-lateral maritime programmes.  

The  large  number  of  co-operation  objectives,  related  to  the  need  to  support  a  new  and 
ambitious  policy  and  the  broadening  of  the  scope  of  the  instrument  to  support  thematic 
actions and cross border co-operation with member states justify the considerable increase in 
resources which is foreseen for the ENPI in the future financial perspective. 

5.3.  Methods of implementation 

Programmes  may  be  implemented  under  direct  centralised  management  by  the  Commission 
from  Headquarters  and/or  thought  the  devolved  Delegations  using  both  statutory  and 
temporary  staff.  They  may  also  be  implemented  under  decentralised  management  by  the 
beneficiary  country  and  under  joint  management  with  international  organisations.  The 
Regulation  also  leaves  open  the  possibility  for  programme  implementation  under  indirect 
centralised management arrangements by national public sector bodies or bodies governed by 
private  law  with  a  public  service  mission  or  by  an  executive  agency  for  programme 
implementation. 

Cross-border  co-operation  programmes  will  be  normally  implemented  through  shared 
management by a managing authority located in Member States. 

6. 

FINANCIAL IMPACT 

6.1 

Total financial impact on Part B – (over the entire programme) (current prices) 

6.1.1 

Financial intervention 

Breakdown 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

Commitments € million (to three decimal places) 

1.376 

1.506 

1.802 

2.000 

2.229 

2.536 

2.883 

14.332 

to 

Assistance 
EU 
neighbouring 
countries  

* A contribution of the European Regional Development Fund to Cross Border co-operation 
programmes  managed  under  the  provisions  of  this  regulation  and  originally  included  under 
Heading 1b of the financial perspective, should be added to this amount at the moment of the 
budget  preparation.  The  Structural  Funds  regulation  sets  aside  an  estimated  amount  of  233 
M€ a year (in 2004 prices) as a contribution from European Regional Development Fund to 
cross border co-operation between the Member States and the relevant neighbouring countries 
covered by the ENPI and by the Instrument for Pre Accession (IPA). This contribution will be 
managed  according  to  the  rules  established  in  the  ENPI  and  in  the  IPA  regulation. 

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45 

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Symmetrically  IPA  and  ENPI  stipulates  that  their  contribution  to  Cross  border  co-operation 
with member states will be at least equivalent to the one provided by the ERDF.  

The fact that the breakdown of the ERDF contribution between the borders covered by ENPI 
and  those  covered  by  IPA  is  not  yet  known  makes  difficult  to  provide  an  estimation  of  the 
overall amount dedicated to CBC under this specific regulation.  

6.1.2 

Technical and administrative assistance, support expenditure and IT expenditure 

Commitments € million (to three decimal places) 

Breakdown 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Total 

57 

63 

75 

83 

93 

106 

120 

597 

Assistance to 
EU 
neighbouring 
countries 

7. 

IMPACT ON STAFF AND ADMINISTRATIVE EXPENDITURE  

Description of tasks deriving 
from the action 

7.1. 

Impact on human resources 

Types of post 

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

Number of 
permanent posts 

Number of 
temporary posts 

or 

Officials 
temporary 
staff 

HQ: 192 

Del: 141 

HQ: 

END:  

AUX:  

INT:  

Total 

333 

3 

9 

2 

Other 
resources 

human 

Ex BA-lines : 

ATA:  

87 

Delegations: 

Ex: BA-lines 

ALAT/AL:  

Ind.Expert:  

338 

84 

856 

Total 

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46 

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7.2. 

Overall financial impact of human resources (2004 prices) 

Type of human resources 

Amount (€) 

Method of calculation *  

Officials+Temporary staff 

HQ 

Delegation 

HQ: 

END 

AUX 

INT 

Ex BA-lines 

ATA 

Delegations: 

Ex BA-lines: 

ALAT/AL 

Individ. Experts: 

20 736 000 

27 376 278 

  133 632 

  510 840 

  126 192 

192x 108 000€ 

141x 194.158€ 

3x 44 544€ 

9x 56 760€ 

2x 63 096€ 

5 015 202 

87 x57 646€ 

25 853 620 

15 540 000 

Total 95 291 764 

338x 76 490€ 

84x 185 000€ 

7.3. 

Other administrative expenditure deriving from the action (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) 

Amount € 

Method of calculation 

667  missions  x  1.400  euro  per 
mission 

100  meetings  x  1.000  euro  per 
meeting 

2x  /month  x  10  months  =  20 
meetings per year x 25.000 euro 
per meeting  

933.800 

100.000 

500.000 

0 

300.000 

200.000 

0 

200.000 

Other expenditure - Part A (specify) 

0 

Total 2.233.800 

The amounts are total expenditure for twelve months. 

1 Specify the type of committee and the group to which it belongs.  

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47 

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(2004 prices) 

I. 

II. 

Annual total (7.2 + 7.3) 

Duration of action 

III. 

Total cost of action (I x II) 

€ 

97 525 564 

7 years 

€ 

682 678 948 

•  The needs in human and administrative resources are covered within the budget allocated 

to the managing DG in the framework of the annual allocation procedure. 

•  The  allocation  of  posts  will  depend  on  the  internal  organisation  of  the  next  Commission 
and  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 - ROM20) and impact 
(Millennium Development Goals are jointly monitored with partners). 

All countries and regional pluriannual 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. If there is a Poverty Reduction 
Strategy Paper process under way, the indicators must correspond to those developed in that 
framework. 

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, 

20 

The results-oriented monitoring system (ROM) allows a rapid appreciation of a project or programme’s 
performance, as well as of its wider implications and provides the Commission with independent advice 
on its project portfolio. The system was initially developed and tested in 2000/2001 before expansion 
during 2002 to all regions of the Commission’s external co-operation. Having one consistent approach 
ensures that the Commission has comparable data for all regions where it provides external assistance. 

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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. 

The thematic strategy papers will include a list of indicators that will allow, on the basis of 
available information, to monitor the global situation in relation to the specific theme. 

The  annual  Action  Programmes  will  include  information  on  the  type  of  performance 
indicators  that  will  have  to  be  monitored  when  implementing  the  measures  financed  by  the 
Commission. 

Cross  Border  Co-operation  programmes  to  be  prepared  by  the  partners  for  adoption  by  the 
Commission will devote particular attention to the definition of indicators at the level of the 
priorities  and  measures  and  the  elaboration  of  the  necessary  institutional  arrangements  for 
monitoring.  

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). 

In  practical  terms,  above  mentioned  obligations  would  amount  to  a  yearly  evaluation 
programme  covering  roughly  the  following:  30  country  strategy  evaluations  (approximately 
120 sizeable Country Strategy Papers covered over a 4 year cycle) , 4 evaluations of regional 
and sub regional strategies; 4 evaluations of themes and sectors and 4 joint evaluations. It is 
also estimated that about 300 projects and other operations have to be evaluated each year.21 

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. 

21 

The evaluation programme mentioned in this paragraph covers all co-operation activities covered by the 
four  external  aid  instruments:  « instrument  for  pre-accession »,  « european  neighbourhood  and 
partnership  instrument »,  stability  instrument »  and  «  economic  co-operation  and  development 
instrument ».  Human  and  financial  resources  necessary  for  the  implementation  of  the  programme  are 
estimated at 72 man/year and 24,6 M€ per year. 

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Administrative  monitoring  of  contracts  and  payments  will  be  the  responsibility  of  the  EC 
Delegations in beneficiary countries. 

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

For Cross Border co-operation programmes operating under shared management the Member 
State where the joint managing authority is located is responsible for ensuring sound financial 
management and the legality and regularity of the transactions. 

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). 

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