Common Position (EC) No 28/2006 of 23 October 2006 adopted by the Council, acting in accordance with the procedure referred to in Article 251 of the Treaty establishing the European Community, with a view to adopting a Regulation of the European Parliament and of the Council establishing a financing instrument for development cooperation
Date: 2006-10-23
Institutions: Council of the European Union
Subjects: EU aid, European Development Fund, cooperation policy, developing countries, development aid, development policy

12.12.2006

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Official Journal of the European Union

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COMMON POSITION (EC) No 28/2006

adopted by the Council on 23 October 2006

with a view to the adoption of Regulation (EC) No …/2006 of the European Parliament and of the
Council of … establishing a financing instrument for development cooperation

(2006/C 301 E/02)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EURO-
PEAN UNION,

(3)

Having regard to the Treaty establishing the European Com-
munity, and in particular Article 179(1) thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure laid down in
Article 251 of the Treaty (1),

(4)

Whereas:

The Community pursues a cooperation policy that
fosters cooperation, partnerships and joint undertakings
in the Community and
between economic players
partner countries and regions, and promotes dialogue
between political, economic and social partners in rele-
vant sectors.

(MDGs),

such as

The Community's development cooperation policy and
international action are guided by the Millennium Devel-
the eradication of
opment Goals
extreme poverty and hunger, adopted by the United
Nations General Assembly on 8 September 2000, and
the main
and principles
approved by the Community and its Member States in
the United Nations (UN) and other
the context of
competent
international organisations in the field of
development cooperation.

development

objectives

(1)

candidate

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 1085/2006 (2) establishes an Instrument
for Pre
Accession (IPA) for Community assistance to candidate
and potential
countries. Regulation (EC)
No […] (3) lays down general provisions establishing a
European Neighbourhood and Partnership Instrument
(ENPI). Council Regulation (EC) No […] (4) establishes a
financing instrument for cooperation with industrialised
and other high-income
territories.
Regulation (EC) No […] (5) establishes an instrument for
stability. Regulation (EC) No […] (6) establishes an instru-
ment
for nuclear safety cooperation. Regulation (EC)
No […] (7) establishes a financing instrument for the
promotion of democracy and human rights worldwide.
Council Regulation (EC) No 1257/96 (8) concerns huma-
nitarian aid. This Regulation establishes a financing
instrument
cooperation providing
direct support for the Community's development coop-
eration policy.

for development

countries

and

(5) With a view to policy coherence for development, it is
important
that Community non-development policies
assist developing countries' efforts in achieving the
MDGs in line with Article 178 of the Treaty establishing
the European Community.

(6)

A political environment which guarantees peace and
stability, respect
free-
for human rights,
doms, democratic principles,
law, good
governance and gender equality is fundamental to long-
term development.

fundamental

the rule of

(2)

The Community pursues a development cooperation
policy aimed at achieving the objectives of poverty
reduction, sustainable economic and social development
and the smooth and gradual integration of developing
countries into the world economy.

(7)

Sound and sustainable economic policies are a prerequi-
site for development.

(1) Opinion of the European Parliament of 18 May 2006 (not yet
published in the Official Journal), Council Common Position of 23
October 2006 and Position of the European Parliament of … (not
yet published in the Official Journal). Council Decision of … (not
yet published in the Official Journal).

(8)

(2) OJ L 210, 31.7.2006, p. 82.
(3) OJ L …
(4) OJ L …
(5) OJ L …
(6) OJ L …
(7) OJ L …
(8) OJ L 163, 2.7.1996, p. 1.

The members of the World Trade Organization (WTO)
committed themselves at the 4th Ministerial Conference
in Doha to mainstreaming trade in development strate-
gies and to providing trade-related technical and capa-
city-building assistance as well as the necessary measures
seeking to facilitate the transfer of technology through
to enhance the relationship between
and for trade,
investment and trade, and the mutual
foreign direct
interrelation of
trade and environment, and to help
developing countries take part in new trade negotiations
and implement their results.

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(13)

(9)

The Joint Statement by the Council and the Representa-
tives of the Governments of the Member States meeting
within the Council, the European Parliament and the
Commission on European Union Development Policy:
‘The European Consensus’ (1), of 20 December 2005,
and any subsequent modifications thereto, provides the
general
framework for action by the Community on
development matters. It should steer the planning and
implementation of the development assistance and coop-
eration strategies.

geographic

cooperation should be
thematic

(10) Development
implemented
programmes.
through
Geographic programmes should support the develop-
ment of, and reinforce the cooperation with, countries
and regions in Latin America, Asia, Central Asia, the
Middle East and South Africa.

and

(11)

respect

The Community and its Member States have concluded
partnership and cooperation agreements with some of
these partner countries and regions aimed at making a
significant contribution to the long-term development of
the partner countries and the wellbeing of their people.
The essential elements on which these partnership and
cooperation agreements are based are the common and
for, and promotion of,
universal values of
human rights, fundamental freedoms, democratic princi-
ples and the rule of law. In this context, attention should
also be given to the right to decent work and the rights
of people with disabilities. The pursuit and deepening of
bilateral relations between the Community and partner
countries and the consolidation of multilateral
institu-
tions are important
factors in making a significant
contribution to balancing and developing the world
economy and also in strengthening the Community's
and partner countries' and regions' role and place in the
world.

are

covered

(OECD/DAC)

(12) While thematic programmes should primarily support
developing countries, two beneficiary countries as well
as the overseas countries and territories (OCTs), whose
characteristics do not meet
the requirements to be
defined as Official Development Assistance (ODA) reci-
pients by the Development Assistance Committee of the
Organisation for Economic Cooperation and Develop-
ment
by
and which
Article 2(4), second subparagraph, first indent, should
also be eligible for thematic programmes under the
conditions set out in this Regulation. The Community
should finance thematic programmes in countries, terri-
tories and regions
for assistance under a
geographic programme provided for under this Regu-
lation, for assistance under Regulation (EC) No […] or
for geographic cooperation in accordance with the Euro-
pean
Council
Decision 2001/822/EC of 27 November 2001 on the
association of the overseas countries and territories with
the European Community (‘Overseas Association Deci-
sion’) (2), which is applicable until 31 December 2011,
lays down the conditions for the eligibility of OCTs for
the thematic activities of development assistance funded
by the general budget of the European Union, which are
not altered by this Regulation.

Development

eligible

(EDF).

Fund

(1) OJ C 46, 24.2.2006, p. 1.
(2) OJ L 314, 30.11.2001, p. 1.

to

Thematic programmes should provide distinctive added
value and complement programmes of a geographic
nature, which constitute the main framework for Com-
munity cooperation with third countries. Development
cooperation implemented through thematic programmes
should be subsidiary to the geographic programmes set
out in this Regulation and in Regulation (EC) No […]
and
Thematic
under
programmes encompass a specific area of activity of
interest to a group of partner countries not determined
by geography, or cooperation activities addressed to
various regions or groups of partner countries, or an
geographically
international operation that
specific. They also have an important role in developing
Community policies externally and ensuring sectoral
consistency and visibility.

cooperation

is not

EDF.

the

(14)

Thematic programmes should support actions in the
areas of human and social development, environment
and sustainable management of natural
resources,
including energy, non-State actors and local authorities,
food security and migration and asylum. The contents of
the thematic programmes have been prepared on the
basis of the corresponding communications from the
Commission to the European Parliament
and the
Council.

(15)

The thematic programme on the environment and the
sustainable management of resources, including energy
should,
inter alia, promote international environmental
governance and Community environmental and energy
policies abroad.

(16)

(17)

The thematic programme on migration and asylum
should contribute to the realisation of the objective set
out in the Conclusions of the European Council held in
Brussels on 15 and 16 December 2005, namely to inten-
sify Community financial assistance in areas concerning
or related to migration in respect of its relations with
third countries.

Community policy on food security has evolved towards
at
supporting broad-based food security strategies
national, regional and global level,
limiting the use of
food aid to humanitarian situations and food crises and
avoiding disruptive effects on local production and
markets, and needs to take into account the specific
situation of countries that are structurally fragile and
highly dependent on support for food security, in order
to avoid a steep reduction of Community assistance to
these countries.

(18)

(19)

(20)

(21)

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In line with the Council Conclusions of 24 May 2005
actions should be supported to improve reproductive
and sexual health in developing countries and to secure
respect for the rights relating thereto; financial assistance
and appropriate expertise should be provided with a
view to promoting a holistic approach to, and the recog-
nition of, reproductive and sexual health and rights as
defined in the Programme of Action of the International
(ICPD),
Conference on Population and Development
including safe motherhood and universal access to a
comprehensive range of safe and reliable reproductive
and sexual health care and services. When cooperation
measures are implemented, the decisions adopted at the
ICPD must be rigorously observed, where relevant.

transparency and encouraging countries to take owner-
ship, donors' cooperation strategies and implementation
procedures should, where possible, be aligned on those
of the partner countries.

(23)

Taking into consideration the need to ensure effective
bridging between humanitarian relief and long-term
development assistance, measures eligible under Regu-
lation (EC) No […] should not, in principle, be funded
under this Regulation, except where there is a need to
ensure continuity of cooperation from crisis to stable
conditions for development.

Following up on Regulation (EC) No 266/2006 of the
European Parliament and of the Council of 15 February
2006 establishing accompanying measures for Sugar
Protocol countries affected by the reform of the EU
sugar regime (1), assistance to ACP Sugar Protocol coun-
tries affected by the reform of the Common Market
Organisation for sugar should also be provided and aim
at supporting their adjustment process.

(24) Untying aid in line with best practices of the OECD/
DAC is a key factor in adding value to aid and in
building local capacity. Rules on participation in tenders
and grant contracts, as well as rules concerning the
origin of supplies should be set down in accordance
with most recent developments concerning the untying
of aid.

In implementing the Community's development policy,
more effective aid, greater complementarity and better
harmonisation, alignment and coordination of proce-
dures, both between the Community and its Member
States and in relations with other donors and develop-
ment actors, are essential to ensuring the consistency
and relevance of aid whilst at the same time reducing
the costs borne by partner countries as approved in the
Declaration on Aid Effectiveness adopted by the High
Level Forum on Aid Effectiveness, held in Paris, on 2
March 2005.

In order to achieve the objectives of this Regulation, it is
necessary to pursue a differentiated approach depending
on development contexts and needs, supporting partner
countries
tailor-made
programmes, based on their own needs, strategies, prio-
rities and assets.

regions with

specific,

or

(22)

The key to the success of development policies is
whether the partner countries take ownership of the
development strategies, and, to this end, the greatest
possible involvement of all sections of society, including
disabled people and other vulnerable groups, should be
encouraged. With a view to ensuring efficiency and

(1) OJ L 50, 21.2.2006, p. 1.

(25) Assistance should be managed in accordance with the
rules for external aid contained in Council Regulation
(EC, Euratom) No 1605/2002 of 25 June 2002 on the
Financial Regulation applicable to the general budget of
the European Communities (2), with due provisions
aimed at protecting the financial interests of the Com-
munity. Continued efforts should be made to improve
the implementation of development cooperation to
achieve a sound balance between financial resources
allocated and absorption capacity, as well as to reduce
outstanding commitments.

(26)

(27)

This Regulation lays down a financial envelope for the
period 2007-2013 constituting the prime reference for
the budgetary authority, within the meaning of Point 37
of the Interinstitutional Agreement of 17 May 2006
between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial
management (3).

The measures necessary for the implementation of this
Regulation should be adopted in accordance with
Council Decision 1999/468/EC of 28 June 1999 laying
down the procedures for the exercise of implementing
powers conferred on the Commission (4). Programming
documents and some specific implementation measures
should be adopted by the management committee
procedure.

(2) OJ L 248, 16.9.2002, p. 1.
(3) OJ C 139, 14.6.2006, p. 1.
(4) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision

2006/512/EC (OJ L 200, 22.7.2006, p. 11).

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(28)

Since the objectives of
this Regulation, namely the
proposed cooperation with developing countries, terri-
tories and regions that are not Community Member
States and are not eligible for Community aid under
Regulation (EC) No 1085/2006 or Regulation (EC)
No […] cannot be sufficiently achieved by the Member
States and can therefore, by reason of the scale of the
action, be better achieved at Community level, the Com-
in accordance with the
munity may adopt measures,
principle of subsidiarity as set out in Article 5 of the
Treaty. In accordance with the principle of proportion-
ality, as set out in that Article, this Regulation does not
go beyond what is necessary to achieve those objectives.

(29)

This Regulation makes it necessary to repeal the current
set of Regulations, in view of the restructuring of the
external action instruments, notably in the field of devel-
opment cooperation,

HAVE ADOPTED THIS REGULATION:

Article 1

Overall purpose and scope

shall

The Community

finance measures

aimed at
1.
supporting cooperation with developing countries, territories
and regions included in the list of aid recipients of the Develop-
ment Assistance Committee of the Organization for Economic
Cooperation and Development (OECD/DAC), and set out in
(hereinafter referred to as ‘partner countries and
Annex I
regions’). The Commission shall amend Annex I in accordance
with regular OECD/DAC reviews of its list of aid recipients and
inform the European Parliament and the Council thereof.

2.
The Community shall finance thematic programmes in
countries, territories and regions eligible for assistance under a
geographic programme of this Regulation, set out in Articles 5
to 10, for assistance under Regulation (EC) No […] or for
the European Development
geographic cooperation under
Fund (EDF).

3.
For the purposes of this Regulation, a region is defined as
a geographical entity comprising more than one developing
country.

TITLE I

OBJECTIVES AND GENERAL PRINCIPLES

Article 2

Objectives

The primary and overarching objective of cooperation
1.
under this Regulation shall be the eradication of poverty in
partner countries and regions in the context of sustainable
development, including pursuit of the Millennium Development

Goals (MDGs), as well as the promotion of democracy, good
governance and respect for human rights and for the rule of
law. Consistently with this objective, cooperation with partner
countries and regions shall:

— consolidate and support democracy, the rule of law, human
rights and fundamental freedoms, good governance, gender
equality and related instruments of international law;

— foster the sustainable development — including political,
economic, social and environmental aspects — of partner
countries and regions, and more particularly the most
disadvantaged among them;

— encourage their smooth and gradual

integration into the

world economy;

— help develop international measures

to preserve and
improve the quality of the environment and the sustainable
management of global natural resources, in order to ensure
including addressing climate
sustainable development,
change and biodiversity loss; and

— strengthen the relationship between the Community and

partner countries and regions.

Community cooperation under

2.
this Regulation shall
comply with the commitments and objectives in the field of
development cooperation that the Community has approved in
the context of the United Nations (UN) and other competent
international organisations in the field of development coopera-
tion.

3.
Community development policy, as laid down in Title XX
of the Treaty, shall provide the legal framework for cooperation
with partner countries and regions. The Joint Statement by the
Council and the Representatives of the Governments of the
Member States meeting within the Council,
the European
Parliament and the Commission on European Union Develop-
ment Policy: ‘The European Consensus’, of 20 December 2005,
and any subsequent modifications thereto, shall provide the
general framework, orientations and focus to steer the imple-
mentation of Community cooperation with partner countries
and regions under this Regulation.

4. Measures referred to in Article 1(1) shall be designed so
as to fulfil the criteria for Official Development Assistance
(ODA) established by the OECD/DAC.

Programmes referred to in Article 1(2) shall be designed so as
to fulfil the criteria for ODA established by the OECD/DAC,
unless:

— the characteristics of the beneficiary require otherwise, or

— the programme implements a global

initiative, a com-
munity policy priority or an international obligation or
commitment of
referred to in
Article 11(2), and the measure does not have the character-
istics to fulfil such criteria.

the Community,

as

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least 90 % of

At
the expenditure foreseen under thematic
programmes shall be designed so as to fulfil the criteria for
ODA established by the OECD/DAC, without prejudice to
Article 2(4), second subparagraph, first indent.

improving access to justice and supporting civil society, as well
as promoting dialogue, participation and reconciliation, and
institution-building.

5.
Community assistance under this Regulation shall not be
used to finance the procurement of arms or ammunition, and
operations having military or defence implications.

6. Measures covered by Regulation (EC) No […] and in par-
ticular Article 4 thereof, and eligible for funding thereunder
shall not, in principle, be funded under this Regulation, except
where there is a need to ensure continuity of cooperation from
crisis to stable conditions for development.

Without prejudice to the need to ensure continuity of coopera-
tion from crisis to stable conditions for development, measures
covered by, and eligible for funding under, Council Regulation
(EC) No 1257/96 of 20 June 1996 concerning humanitarian
aid (1), shall not be funded under this Regulation.

Article 3

General principles

1.
The Community is founded on the values of democracy,
the rule of law, respect for human rights and fundamental free-
doms and seeks to develop and consolidate commitment to
these values in partner countries and regions through dialogue
and cooperation.

2.
In the implementation of this Regulation, a differentiated
approach depending on development contexts and needs shall
be pursued so that partner countries or regions are provided
tailor-made cooperation, based on their own
with specific,
needs, strategies, priorities and assets.

Least developed countries and low income countries shall be
given priority in terms of overall resource allocation in order to
achieve the MDGs. Appropriate attention shall be given to
support the pro-poor development of middle income countries,
particularly the lower middle income countries many of which
face problems similar to those of low income countries.

3. Mainstreaming of the following cross-cutting issues shall
be undertaken in all programmes: the promotion of human
rights, gender equality, democracy, good governance, the rights
of
the child and indigenous peoples' rights, environmental
sustainability and combating HIV/AIDS. In addition, particular
law,
attention shall be given to strengthening the rule of

(1) OJ L 163, 2.7.1996, p. 1. Regulation as amended by Regulation
(EC) No 1882/2003 of the European Parliament and of the Council
(OJ L 284, 31.10.2003, p. 1).

The Community shall take account of the objectives laid
4.
down in Title XX of the Treaty and in Article 2 of this Regu-
lation, in all policies which are likely to affect partner countries
and regions. For measures financed under this Regulation, the
Community shall also aim to ensure coherence with other
areas of its external action. This shall be ensured in formulating
policy, strategic planning and the programming and implemen-
tation of measures.

The Community and the Member States shall

5.
improve
coordination and complementarity of their policies on develop-
ment cooperation by responding to partner countries' and
regions' priorities at country and regional
level. Community
policy in the sphere of development cooperation shall be
complementary to the policies pursued by the Member States.

The Commission and the Member States shall seek
6.
regular and frequent exchanges of information, including with
other donors, and promote better donor coordination and
complementarity by working
joint multiannual
programming, based on partner countries' poverty reduction or
countries' own budget
equivalent
processes, by common implementation mechanisms including
shared analysis, by joint donor-wide missions and by the use of
co-financing arrangements.

and partner

strategies

towards

7. Within their respective spheres of competence, the Com-
munity and the Member States shall promote a multilateral
approach to global challenges and foster cooperation with
multilateral and regional organisations and bodies such as inter-
national
and
programmes, and other bilateral donors.

institutions, UN agencies,

financial

funds

The Community shall promote effective cooperation with
8.
partner countries and regions in line with international best
practice. It shall promote:

(a) a development process that

is partner country led and
owned. The Community shall increasingly align its support
with partners' national development strategies, reform poli-
cies and procedures. The Community shall contribute to
strengthening the process of mutual accountability between
partner governments and donors and promote local exper-
tise and local employment;

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(b) inclusive and participatory approaches to development and
a broad involvement of all segments of society in the devel-
opment process and in national dialogue, including political
dialogue;

(c) effective cooperation modalities and instruments as set out
in Article 25 in line with OECD/DAC best practices,
adapted to the particular circumstances of each partner
country or
region, with a focus on programme-based
approaches, delivery of predictable aid funding, the devel-
opment and use of country systems and on results-based
approaches to development including, where appropriate,
MDG targets and indicators;

(d) improved impact of policies and programming through
coordination and harmonisation between donors to reduce
overlap and duplication, to improve complementarity and
to support donor-wide initiatives. Coordination shall take
place in partner countries and regions using agreed guide-
lines and best practice principles on coordination and aid
effectiveness;

(e) an MDG profile in Country Strategy Papers and in its multi-

annual programming.

The Commission shall inform and have regular exchanges

9.
of views with the European Parliament.

The Commission shall seek regular exchanges of infor-

10.
mation with civil society.

TITLE II

GEOGRAPHIC AND THEMATIC PROGRAMMES

2.
Consistently with the overall purpose and scope, objec-
tives and general principles of this Regulation, Community
assistance to the countries of Latin America, Asia, Central Asia,
and the Middle East as set out in Annex I, as well as South
Africa, shall include actions within the following areas of coop-
eration:

(a) supporting the implementation of policies aimed at poverty

eradication and at the achievement of the MDGs;

Human development:

(b) addressing the essential needs of the population with prime
attention to primary education and health, in particular by:

Health:

(i) increasing access to and provision of health services
for lower income population groups and marginalised
groups,
including women and children, persons
belonging to groups subject to ethnic, religious or any
other discrimination and persons with disabilities, with
a central focus on the related MDGs, namely reducing
child mortality, improving maternal and child health
and sexual and reproductive health and rights as set
out in the Cairo Agenda of the International Confer-
ence on Population and Development (ICPD), addres-
sing poverty diseases, in particular HIV/AIDS, tubercu-
losis and malaria;

(ii) strengthening health systems

in order
human resource crises in the health sector;

to prevent

Article 4

(iii) enhancing capacities particularly in areas
public health and research and development;

such as

Implementation of Community assistance

Education:

Consistently with the overall purpose and scope, objectives and
general principles of this Regulation, Community assistance
shall be
and thematic
programmes set out in Articles 5 to 16 and the programme set
out in Article 17.

implemented through geographic

Article 5

Geographic programmes

1.
A geographic programme shall encompass cooperation in
appropriate areas of activity with partner countries and regions
determined on a geographical basis.

(iv) giving priority in primary education to achieving
quality primary education followed by vocational
training and to reduce inequalities in terms of access to
education; promoting compulsory and free education
up to the age of 15 to combat all forms of child
labour;

(v) aiming at achieving universal primary education by
2015, and at eliminating gender disparity in education;

(vi) promoting vocational training, higher education,

life-
scientific and technological
long learning, cultural,
cooperation, academic and cultural exchanges as well
as enhancing mutual understanding between partner
countries and regions and the Community;

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Social cohesion and employment:

Trade and regional integration:

(c) promoting social cohesion as a priority policy of the rela-
tions between the Community and partner countries, with
a focus on decent work and social and fiscal policies,
thereby fighting against poverty, inequality, unemployment
and exclusion of vulnerable and marginalised groups;

(d) combating all

forms of group-based discrimination and
indigenous
promoting and protecting gender equality,
peoples'
including
rights and the rights of
supporting implementation of the UN Convention on the
Rights of the Child, and actions to address the problems
faced by street children and children undertaking forms of
labour that are hazardous and/or hinder full-time educa-
tion;

the child,

(e) strengthening the institutional framework to promote and
facilitate the creation of small and medium sized enterprises
with a view to stimulating job creation;

Governance, democracy, human rights and support for institu-
tional reforms:

(f) promoting and protecting fundamental

freedoms and
human rights, strengthening democracy, the rule of law,
access to justice and good governance including actions to
combat corruption, which may include, but are not limited
to, capacity building and strengthening the institutional and
legislative framework, particularly in the areas of national
administration, design and implementation of policies and
management of public finances and national resources in a
transparent way;

(g) supporting an active civil society,

including civil society
organisations representing people living in poverty, as well
as promoting civic dialogue, participation and reconcilia-
tion, and institution-building;

(h) fostering cooperation and policy reform in the fields of
security and justice, especially as regards asylum and migra-
tion, the fight against drugs and other trafficking including
trafficking in human beings, corruption and money laun-
dering;

(i) fostering cooperation and policy reform in the field of
migration and
and
asylum with partner
promoting capacity building initiatives to ensure the formu-
lation and implementation of pro-development migration
policies to address the root causes of migration;

countries

(k) assisting partner countries and regions on trade,

invest-
ment and regional
integration including technical assis-
tance and capacity building to design and implement
sound trade policies, favouring a more conducive business
environment, sound economic and financial policies and
private sector development, with a view to partner coun-
tries and regions benefiting from their integration into the
world economy and to supporting social justice and pro-
poor growth;

(l) supporting accession to the World Trade Organization
(WTO) and implementation of WTO agreements by tech-
in particular the
nical assistance and capacity building,
implementation of
the Agreement on Trade-Related
Aspects of Intellectual Property (the TRIPS Agreement),
notably in the area of public health;

(m) supporting economic and trade cooperation and strength-
ening investment relations between the Community and
including by actions to
partner countries and regions,
including local
promote and ensure that private actors,
and European businesses, contribute to socially responsible
and sustainable economic development, including respect
for the core labour standards of the International Labour
Organization (ILO) and by actions to promote local capa-
city building;

Environment and sustainable development of natural resources:

and

sustainable management

(n) promoting sustainable development through environmental
natural
protection
including protection of biodiversity, and of
resources,
forests, including activities for the conservation and sustain-
able management of forests with active participation of
local communities and forest-dependent peoples;

of

(o) supporting improvements in the urban environment;

(p) promoting

sustainable

and
patterns
consumption and the safe and sustainable management of
chemicals and waste, taking into account their impacts on
health;

production

of

(q) ensuring respect for and supporting the implementation of
international environment agreements such as the Conven-
tion on Biological Diversity, the UN Convention to Combat
Desertification and the UN Framework Convention on
Climate Change in line with the EU Action Plan on Climate
Change, and their protocols and any subsequent modifica-
tions;

(j) supporting effective multilateralism,

in particular through
compliance with, and the effective implementation of,
international
law and multilateral agreements relevant to
the field of development;

(r) developing capacities

for emergency preparedness and

prevention of natural disasters;

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Water and energy:

and to any other area of action consistent with the scope
of this Regulation.

(s) supporting sustainable integrated water resource manage-
ment, with particular emphasis on universal access to safe
drinking water and sanitation in line with the MDGs and
sustainable and efficient use of water resources, including
for agricultural and industrial purposes;

(t) fostering greater use of sustainable energy technologies;

Infrastructure, communication and transport:

(u) contributing to the development of economic infrastruc-
ture,
and
promoting the increased use of information and communi-
cation technologies;

including support

to regional

integration,

Rural development, territorial planning, agriculture and food
security:

(v) supporting sustainable rural development, including decen-
tralisation and empowerment, particularly with a view to
ensuring food security;

Post-crisis situations and fragile States:

(w) reconstructing and rehabilitating,

in the medium- and
long-term, regions and countries affected by conflict, man-
made and natural disasters,
including support for mine-
action, demobilisation and reintegration actions, while
ensuring the continuum between relief, rehabilitation and
development in accordance with Article 2(6), bearing in
mind the competences of the Community and its Member
States;

that

ensuring

(x) carrying out medium- and long-term activities aimed at the
self-sufficiency and integration or reintegration of uprooted
people,
an integrated and consistent
approach between humanitarian aid, rehabilitation, aid to
uprooted people and development cooperation is pursued.
Community action shall facilitate the move from the emer-
gency stage to that of development, encouraging the socio-
economic integration or
the people
affected, and encourage the establishment or strengthening
of democratic structures and the role of the population in
the development process;

reintegration of

(y) in fragile or failing States, supporting the delivery of basic
services and building of legitimate, effective and resilient
public institutions;

(z) addressing development challenges common to the Com-
munity and its partners, in particular support to sectoral
dialogues, to the implementation of bilateral agreements

Article 6

Latin America

Community assistance to Latin America shall support actions
consistent with Article 5 and with the overall purpose and
scope, objectives and general principles of
this Regulation.
Additional attention shall be paid to the following areas of
cooperation, reflecting the specific situation in Latin America:

(a) promoting social cohesion as a shared goal and priority
policy of Community-Latin America relations
thereby
fighting against poverty, inequality and exclusion. Particular
attention shall be paid to social welfare and tax policies,
productive investment for more and better jobs, policies to
combat discrimination and production, consumption and
trafficking of drugs, and improvements in basic social
services, in particular health and education;

(b) encouraging greater

regional

integration,

including the
support to different processes of regional integration and to
interconnection of network infrastructures, while
the
ensuring complementarity with activities
supported by
European Investment Bank (EIB) and other institutions;

(c) supporting the reinforcement of good governance and
public institutions, and of the protection of human rights,
including the rights of the child and indigenous peoples'
rights;

(d) supporting the creation of a common EU-Latin American

higher education area;

(e) promoting sustainable development in all its dimensions,
with particular attention to the protection of forests and
biodiversity.

Article 7

Asia

Community assistance to Asia shall support actions consistent
with Article 5 and with the overall purpose and scope, objec-
tives and general principles of this Regulation. Additional atten-
tion shall be paid to the following areas of cooperation,
reflecting the specific situation in Asia:

(a) pursuing MDGs in the field of health, including HIV/AIDS,
through policy dialogue for

inter alia,

and education,
sectoral reform;

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(b) addressing governance issues in particular in fragile States
so as to help build legitimate, effective and resilient public
institutions and an active and organised civil society, and to
including the
enhance the protection of human rights,
rights of the child;

(c) encouraging greater regional

integration and cooperation
through support to different processes of regional integra-
tion and dialogue;

(d) contributing to the control of epidemics and zoonoses as

well as to the rehabilitation of the affected sectors;

(e) promoting sustainable development in all its dimensions,
with particular attention to the protection of forests and
biodiversity;

(f) fighting against production, consumption and trafficking of

drugs and against other trafficking.

(f) promoting regional cooperation, dialogue and integration,
including with countries covered by Regulation (EC) No […]
and other Community instruments, in particular promoting
cooperation in the environment — notably water and sani-
tation —, education, energy and transport sectors, including
the security and safety of international energy supply and
transport operations, on interconnections,
the networks
and their operators, renewable energy sources, energy effi-
ciency.

Article 9

Middle East

Article 8

Central Asia

Community assistance to the Middle East shall support actions
consistent with Article 5 and with the overall purpose and
scope, objectives and general principles of
this Regulation.
Additional attention shall be paid to the following areas of
cooperation, reflecting the specific situation in the Middle East:

Community assistance to Central Asia shall support actions
consistent with Article 5 and with the overall purpose and
scope, objectives and general principles of
this Regulation.
Additional attention shall be paid to the following areas of
cooperation, reflecting the specific situation in Central Asia:

(a) promoting constitutional reforms and legislative, adminis-
trative and regulatory approximation with the Community,
including strengthening of national institutions and bodies
responsible for the effective implementation of policies in
areas covered in the Partnership and Cooperation Agree-
ments, such as election bodies, parliaments, public adminis-
tration reform and public financial management;

(b) promoting the development of a market economy and
partner countries' integration into the WTO, while addres-
sing the social aspects of the transition;

(a) encouraging social

cohesion to ensure

equity,
notably in relation to the use of domestic national
resources and to ensure political equality in particular
through the promotion of human rights, including gender
equality;

social

(b) promoting economic diversification, the development of a
market economy, and partner countries' integration in the
WTO;

(c) promoting regional cooperation, dialogue and integration,
including with countries covered by Regulation (EC) No […]
and other Community instruments via the support to inte-
gration efforts within the region,
for example on the
economy, energy, transportation and refugees;

(c) supporting efficient border management and cross-border
cooperation to promote sustainable economic, social and
environmental development in border regions;

(d) supporting the conclusion of international agreements and
the effective implementation of international law, in par-
ticular UN resolutions and multilateral conventions;

(d) fighting against production, consumption and trafficking of

drugs and against other trafficking;

(e) fighting against HIV/AIDS;

(e) addressing governance issues in particular in fragile States
so as to help build legitimate, effective and resilient public
institutions and an active and organised civil society, and to
enhance the protection of human rights,
including the
rights of the child.

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Article 10

South Africa

Community assistance to South Africa shall support actions
consistent with Article 5 and with the overall purpose and
this Regulation.
scope, objectives and general principles of
Additional attention shall be paid to the following areas of
cooperation, reflecting the specific situation in South Africa:

(a) supporting the consolidation of a democratic society, good
governance and a State governed by the rule of law and
contributing to regional and continental stability and inte-
gration;

(b) providing support to the adjustment efforts occasioned in
the region by the establishment of free-trade areas under
the Trade, Development and Cooperation Agreement
between the Community and South Africa (1) and other
regional arrangements;

(c) supporting the fight against poverty, inequality and exclu-
the

including by addressing the basic needs of

sion,
previously disadvantaged communities;

(d) addressing the HIV/AIDS pandemic and its impacts on the

South African society.

Article 11

Thematic programmes

be

shall

subsidiary

programme

A thematic

1.
to
programmes referred to in Articles 5 to 10 and shall encom-
pass a specific area of activity of interest to a group of partner
countries not determined by geography, or cooperation activ-
ities addressed to various regions or groups of partner coun-
tries, or an international operation that is not geographically
specific.

Consistently with the overall purpose and scope, objec-
2.
tives and general principles of
the actions
undertaken through thematic programmes shall add value to
and be additional to, and coherent with, actions funded under
geographic programmes. The following principles shall apply
to these actions:

this Regulation,

(a) Community policy objectives cannot be achieved in an
appropriate or
through geographic
effective manner
programmes and the thematic programme is implemented
by or through an intermediary organisation such as non-
governmental organisations, other non-State actors, interna-
tional organisations or multilateral mechanisms. This
includes global initiatives supporting the MDGs, sustainable
development or global public goods and actions in Member
States and acceding countries by way of derogation from

(1) Agreement on Trade, Development and Cooperation between the
European Community and its Member States, of the one part, and
the Republic of South Africa, of
(OJ L 311,
4.12.1999, p. 3.)

the other part

envisaged

in the

relevant

thematic

Article 24 as
programme,

and/or

(b) actions are of the following nature:

— multi-regional and/or cross-cutting actions,

including

pilot projects and innovatory policies;

— actions in cases where there is no agreement on the

action with the partner government(s);

— actions relevant to the purpose of a specific thematic
programme which respond to a Community policy
priority or an international obligation or commitment
of the Community;

— where appropriate, actions in cases where there is no

geographic programme or it has been suspended.

Article 12

Investing in people

1.
the
The objective of Community assistance under
thematic programme ‘Investing in People’ shall be to support
actions in areas which directly affect people's living standards
and well-being defined below and focusing on the poorest and
least developed countries and the most disadvantaged sections
of the population.

To achieve the objective referred to in paragraph 1 and
include the

2.
consistent with Article 11, the programme shall
following areas of activity:

(a) Good health for all:

(i) fight against poverty diseases

targeting the major
communicable diseases such as laid down in the Euro-
pean Programme for action to confront HIV/AIDS,
malaria and tuberculosis, in particular:

— increase the affordability of key pharmaceuticals
and diagnostics for the three diseases in accordance
with the provisions of the TRIPS Agreement as
clarified in the Doha Declaration on the TRIPS
Agreement and Public Health;

— encourage public

and private

in
research and development for new treatments, new
medicines, particularly vaccines, microbicides and
innovative treatments;

investment

— support global

initiatives

targeting the major
communicable diseases in the context of poverty
reduction, including the Global Fund to fight HIV/
AIDS, Tuberculosis and Malaria;

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(ii) in line with the principles agreed at the ICPD and
ICPD + 5, support actions to improve reproductive and
sexual health in developing countries and to secure the
right of women, men and adolescents to good repro-
ductive and sexual health and provide financial assis-
tance and appropriate expertise with a view to
promoting a holistic approach to, and the recognition
of, reproductive and sexual health and rights as defined
including safe
in the ICPD Programme of Action,
motherhood and universal access to a comprehensive
range of safe and reliable reproductive and sexual
health care and services, supplies, education and infor-
mation, including information on all kinds of family
planning methods, including:

edge, skills and employability on the job market,
contributing to active citizenship and individual fulfil-
ment on a life-long basis;

focus on access

(iii) the promotion of high quality basic education, with
particular
for girls, children in
conflict-affected areas and children from marginalised
and more vulnerable social groups
to education
programmes; the promotion of compulsory and free
education up to the age of 15 to combat all forms of
child labour;

— reducing maternal mortality and morbidity rates,
reference to the countries and

with particular
populations where these are highest;

(iv) developing ways to measure learning outcomes in
order to better assess the quality of education, espe-
cially in literacy, numeracy and essential life skills;

(iii) improve equitable access to health providers, commod-

ities and health services by supporting:

(v) promoting donor harmonisation and alignment

to
promote universal, compulsory, free and high quality
education through international or multi-country
initiatives;

— interventions to address the human resources crisis

in health;

— health information systems with the ability to
generate, measure and analyse disaggregated perfor-
mance data to ensure better health and develop-
ment outcomes and sustainability of delivery
systems;

— improved vaccination and immunisation coverage
and promotion of the availability of, and access to,
existing or new vaccines;

(vi) supporting an inclusive knowledge-based society and
contributing to bridging the digital divide, knowledge
and information gaps;

(vii) improving knowledge and innovation through science
and technology as well as development of, and access
to, electronic communication networks in order to
improve
growth and sustainable
development
in conjunction with the international
dimension of EU research policy.

socio-economic

— fair mechanisms for financing equitable access to

health care.

(c) Gender equality:

(iv) keeping a balanced approach between prevention,
treatment and care, with prevention as a key priority,
acknowledging that its effectiveness is increased when
linked with treatment and care.

(i) the promotion of gender equality and women's rights,
implementing global commitments as detailed in the
Beijing Declaration and Platform for Action and the UN
Convention on the Elimination of All Forms of Discrimi-
nation Against Women, activities include:

(b) Education, knowledge and skills:

(i) special attention to actions taken in the context of the
MDGs to achieve universal primary education by
2015 and the Dakar Framework for Action on Educa-
tion for All;

(ii) basic, secondary and higher education as well as voca-
tional education and training to improve access to
education for all children and, increasingly, for women
and men of all ages, with a view to increasing knowl-

— supporting programmes that contribute to achieving
the objectives of the Beijing Platform for Action
with a special emphasis on gender equality in
governance and political and social representation
and other actions to empower women;

— strengthening institutional and operational capacities
of key stakeholders, civil
society organisations,
women's organisations and networks, in their endea-
vours to promote gender equality and economic and
social empowerment,
including north-south and
south-south networking and advocacy;

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— including a gender perspective in monitoring and
statistical capacity building, by supporting the devel-
opment and dissemination of data and indicators
disaggregated by sex, as well as gender equality data
and indicators;

— support for initiatives to promote the improvement
of working conditions as well as the adjustment to
trade
an employment
dimension in development policies, to help spread
European social values;

liberalisation,

including

— reducing the adult

illiteracy rate, with particular

emphasis on female literacy;

— help to promote the positive social dimension of

globalisation and the EU's experience.

— actions against violence against women.

(iii) Youth and children:

(d) Other aspects of human and social development:

(i) Culture:

— promotion of inter-cultural dialogue, cultural diver-
sity and respect for the equal dignity of all cultures;

— promotion of international cooperation to stimu-
late the contribution of cultural
to
economic growth in developing countries to fully
exploit its potential for fighting poverty, including
addressing issues such as market access and intel-
lectual property rights;

industries

— promotion of respect for the social, cultural and
spiritual values of indigenous peoples and minori-
ties to enhance equality and justice in multi-ethnic
societies
in compliance with universal human
rights to which everyone is entitled, including indi-
genous peoples and persons belonging to minori-
ties;

— supporting culture as a promising economic sector

for development and growth.

(ii) Employment and social cohesion:

— promotion of an integrated social and economic
approach including promotion of productive
employment, decent work for all, social cohesion,
development of human resources, equity, social
security and mapping employment
issues and
enhancing the quality of jobs in the informal sector
and empowering labour associations, in accordance
with the principles of the related ILO Conventions
and the Community's international commitments
in these areas;

— combating all forms of child labour, trafficking of
and violence against children and promotion of
policies taking into consideration youth's and chil-
and potentials,
vulnerability
dren's particular
protection of their rights and interests, education,
health and livelihoods, starting with participation
and empowerment;

— enhancing developing countries'

attention and
capacity to develop policies benefiting youth and
children;

— advocacy for concrete strategies and interventions
to address particular problems and challenges
affecting youth and children taking their best inter-
ests into account in all relevant action. Participation
by children and youth should be ensured;

— using the Community's position as the principal
donor of ODA among international institutions to
urge the multilateral donors to exert pressure for
the framing of policies to eliminate the worst
forms of child labour, particularly the hazardous
ones with a view to promoting the effective elimi-
nation of all forms of child labour, combating traf-
ficking of, and violence against, children and
promoting the role of children and youth as actors
for development.

Article 13

Environment and sustainable management of natural
resources including energy

— promotion of the ‘decent work for all’ agenda as a
universal objective,
including through global and
other multi-country initiatives to implement inter-
nationally agreed ILO core labour standards, assess-
ment of trade impact on decent work, sustained
and adequate mechanisms for fair financing, effec-
tive functioning — and wider coverage — of social
protection systems;

The objective of the thematic programme on environ-
1.
ment and sustainable management of natural
resources,
including water, and energy, shall be to integrate environmental
protection requirements into the Community's development
and other external policies as well as to help promote the
Community's environmental and energy policies abroad in the
common interest of the Community and partner countries and
regions.

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To achieve the objective referred to in paragraph 1 and
include the

2.
consistent with Article 11, the programme shall
following areas of activity:

think tanks, and improving the efficiency of international
negotiations;

(a) working upstream in assisting developing countries to
achieve the MDG on environmental sustainability through
capacity building for environmental
integration in devel-
oping countries, supporting civil society actors, local autho-
rities and consultative platforms, environmental monitoring
and assessment, developing innovative approaches and
twinning to share experience and reinforce cooperation in
these areas with key countries;

forests,

including activities

international and regional

land degradation fisheries

(b) promoting implementation of Community initiatives and
level
agreed commitments at
and/or of a transboundary character through support for
sustainable development
to address
current and future climate change issues, biodiversity,
desertification,
and
marine resources, compliance with environmental standards
(for products and production processes), sound chemicals
and wastes management, fight against pollution, sustainable
production and consumption and environment-related
migration. This also includes efforts to promote good forest
governance and combat illegal logging, particularly through
FLEGT, and innovative activities for the conservation and
sustainable management of forests with active participation
of local communities and forest dependent peoples.

With regard to water, the thematic programme will aim at
establishing a framework for long term protection of water
resources and promoting sustainable water use through
support for policy coordination;

(c) better

through
integration of environmental objectives
support for methodological work, enhancing environmental
expertise available for policy work, integration and innova-
tive actions of the Community and promoting coherence;

(d) strengthening environmental governance and supporting
international policy development by working for coherence
between the environmental and the other pillars of interna-
tional governance for sustainable development and by
assisting regional and international environmental moni-
toring and assessment, providing additional support to the
Secretariats of multilateral
agreements,
promoting effective compliance and enforcement measures
for multilateral
including
through capacity building, supporting international organi-
sations and processes, supporting civil society and policy

environmental

environmental

agreements

(e) supporting sustainable energy options in partner countries
and regions, through integration of sustainable energy in
development plans and strategies, developing institutional
support and technical assistance, creating a favourable legis-
lative and policy framework to attract new business and
investors in renewable energy, enhancing the role of energy
as a means to create income generation for the poor,
promoting innovative financing approaches, and encoura-
ging regional cooperation between governments, non-
governmental organisations and the private sector in the
above areas. The Community's strategic actions will give
particular encouragement to the use of renewable energy
sources, increased energy efficiency, and the development
of appropriate energy regulatory frameworks in the coun-
tries and regions concerned and the replacement of espe-
cially damaging energy sources by others which are less so.

Article 14

Non-State actors and local authorities in development

The objective of the thematic programme on non-State
1.
actors and local authorities in development shall be to co-
finance initiatives proposed and/or carried out by civil society
organisations and local authorities originating from the Com-
munity and partner countries in the area of development. At
thematic
the funding foreseen under
least 85 % of
programme
allocated to non-State actors. The
programme shall be implemented in consistency with the
objective of this Regulation and to strengthen the capacity of
non-State actors and local authorities in the policy making
process, so as to:

shall be

this

(a) promote an inclusive and empowered society in order to:

(i) benefit populations out of reach of mainstream services
and resources and excluded from policy making
processes;

(ii) strengthen the capacity of civil society organisations
and local authorities in partner countries, with a view
to facilitating their participation in defining and imple-
menting poverty reduction and sustainable develop-
ment strategies;

(iii) facilitate

interaction between State and non-State
actors in different contexts and support an increased
role for local authorities in decentralisation processes;

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(b) increase the level of awareness of the European citizen
regarding development issues and mobilise active public
support
in the Community and acceding countries for
poverty reduction and sustainable development strategies in
partner countries, for fairer relations between developed
and developing countries, and reinforce civil society and
local authority roles for these purposes;

Support to local authorities and their associations will take
account of their contributing capacity in the calculation of
Community co-financing.

(c) achieve more efficient cooperation,

foster synergies and
facilitate
society
networks and local authorities' associations, within their
organisations and with Community institutions.

structured dialogue between civil

a

To achieve the objective referred to in paragraph 1 and
include the

2.
consistent with Article 11, the programme shall
following areas of activity:

(a) interventions in developing countries and regions which:

(i) strengthen participatory development and processes
and inclusion of all actors, especially vulnerable and
marginalised groups;

(ii) support capacity development processes of the actors

concerned at country, regional or local level;

(iii) promote mutual understanding processes;

Article 15

Food security

The objective of

the thematic programme on food
1.
security shall be to improve food security in favour of the
poorest and most vulnerable people
to
achieving the MDG on poverty and hunger, through a set of
actions which ensure overall coherence, complementarity and
continuity of Community interventions, including in the area
of the transition from relief to development.

and contribute

2.
To achieve the objective referred to in paragraph 1 and
consistently with Article 11, the programme shall include the
following areas of activity:

(a) contributing to the provision of international public goods,
in particular pro-poor demand driven research and techno-
logical innovation, as well as capacity development, scien-
tific and technical South-South and South-North coopera-
tion and twinning;

(iv) facilitate citizens' active engagement in development
processes and at strengthening their capacity to take
action;

(b) supporting global, continental and regional programmes

which notably:

(b) raising public

issues

awareness of development

and
promoting education for development in the Community
and in acceding countries, to anchor development policy in
European societies, to mobilise greater public support in
the Community and acceding countries for action against
poverty and for fairer relations between developed and
developing countries, to raise awareness in the Community
of the issues and difficulties facing developing countries
and their peoples, and to promote the social dimension of
globalisation;

(c) coordination and communication between civil society and
local authority networks, within their organisations and
between different types of stakeholders active in the Euro-
pean and global public debate on development.

3.
Support to local authorities in partner countries shall
normally be carried out in the framework of country strategy
papers except where the latter do not provide appropriate
support, particularly in situations such as difficult partnerships,
fragile states and post-conflict.

(i) support food security information and early warning;

(ii) support food security in specific fields such as agri-
culture, including formulation of regional agricultural
policies and access to land, agricultural
trade and
natural resource management;

(iii) promote, strengthen and complement national

food
security and poverty reduction strategies in the short,
medium and longer-term; and

(iv) support networking of policy experts and non-State

actors to foster the global food security agenda;

(c) advocating and advancing the food security agenda. The
Community shall continue to address key food security
issues
in the international debate, and shall promote
harmonisation, coherence and alignment of policies and aid
delivery modes of development partners and donors. In
particular, the promotion of the role of civil society in food
security issues should be strengthened;

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(d) addressing food insecurity in exceptional situations of tran-
sition and State fragility, playing a central role in linking
relief,
thematic
programme shall:

rehabilitation and development. The

(i) support interventions to protect, maintain and recover
productive and social assets vital for food security, to
facilitate economic integration and longer term rehabili-
tation; and

(ii) support crisis prevention and management, to address
vulnerability to shocks and to strengthen people's resili-
ence;

(e) developing innovative food security policies, strategies and
approaches, and strengthening the potential for their repli-
cation and South-South dissemination. Areas for interven-
tion may include agriculture,
including land reform and
land policy, sustainable management of and access to
natural resources, food security in relation to rural and
local development,
infrastructure, nutrition,
demography and labour, migration, health and education.
Consistency and complementarity with other Community
programmes in these areas shall be ensured.

including

Article 16

Migration and asylum

1.
The objective of the thematic programme on cooperation
with third countries in the areas of migration and asylum shall
be to support them in their efforts to ensure better manage-
ment of migratory flows in all their dimensions. While the
subject of the thematic programme shall be primarily migration
to the Community, it shall also take account of relevant south/
south migratory flows.

and stay on the territory of the Member States of the Com-
munity; providing information on labour migration oppor-
tunities and needs in Member States and on qualifications
of third country candidates for migration; supporting pre-
departure training for candidates for legal migration; and
encouraging the definition and implementation of legisla-
tive frameworks for migrant workers in third countries;

immigrants,

(c) fighting illegal immigration and facilitating the readmission
of illegal
including between third countries,
and in particular, fighting the smuggling of and trafficking
immigration and
in human beings; discouraging illegal
raising awareness of the risks related to it; improving capa-
cities in the areas of border, visa and passport management,
including the security of documents and the introduction of
biometric data, and detection of forged documents; imple-
menting effectively readmission agreements concluded with
the Community and obligations arising out of international
agreements; and assisting third countries in the manage-
ment of illegal immigration and in the coordination of their
policies;

(d) protecting migrants, including the most vulnerable such as
women and children against exploitation and exclusion
through measures such as developing third countries' legis-
lation in the field of migration; supporting integration and
non-discrimination as well as measures to protect migrants
from racism and xenophobia; preventing and fighting the
smuggling of and trafficking in human beings and any
form of slavery;

(e) promoting asylum and international protection, including
through regional protection programmes, in particular in
strengthening institutional capacities; supporting the regis-
tration of asylum applicants and refugees; promoting inter-
national standards and instruments on the protection of
refugees; supporting the improvement of reception condi-
tions and local
integration, and working towards lasting
solutions.

To achieve the objective referred to in paragraph 1 and
include the

2.
consistent with Article 11, the programme shall
following areas of activity:

Article 17

(a) fostering the links between migration and development,
especially by encouraging the contribution of diasporas to
the development of their country of origin and increasing
the value of migrants' return; mitigating brain drain and
promoting the circular movement of skilled migrants; facili-
tating financial transfers of migrants to their country of
origin; supporting voluntary return and reintegration of
migrants and building capacities for migration manage-
ment; fostering capacity building efforts to help countries
in the formulation of pro-development migration policies
and in their capacity to jointly manage migration flows;

(b) promoting well-managed labour migration, in particular by
informing about legal migration and conditions of entry in

ACP Sugar Protocol countries

reform shall benefit

ACP Sugar Protocol countries listed in Annex III affected
1.
by the Community sugar
from a
programme of accompanying measures. Community assistance
to these countries shall aim at supporting their adjustment
process as they are faced with new conditions on the sugar
market due to the reform of the common organisation of the
market in sugar. Community assistance shall take into account
the countries' adaptation strategies and shall pay specific atten-
tion to the following areas of cooperation:

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(a) enhancing the competitiveness of

the sugar and cane
sector, where this is a sustainable process,
taking into
account the situation of the different stakeholders in the
chain;

standard, objective and transparent resource allocation criteria,
based on the needs and performance of the partner country or
region concerned and bearing in mind the particular difficulties
faced by countries or regions in crisis, conflict or disaster
prone, alongside the specificity of the different programmes.

(b) promoting the economic diversification of sugar-dependent

areas;

(c) addressing broader impacts generated by the adaptation
process, possibly related, but not restricted, to employment
and social services, land use and environmental restoration,
the energy sector, research and innovation and macro-
economic stability.

2. Within the amount referred to in Annex IV, the Commis-
sion shall fix the maximum amount available to each Sugar
Protocol country for financing the actions referred to in para-
graph 1 on the basis of the needs of each country, related in
particular to the impact of the reform of the sugar sector in the
country concerned and to the importance of the sugar sector to
the economy. The measurement of the allocation criteria shall
be based on data of campaigns preceding 2004.

Further instructions regarding the allocation of
the overall
amount among beneficiaries shall be defined by the Commis-
sion, acting in accordance with the procedure referred to in
Article 35(2).

TITLE III

PROGRAMMING AND ALLOCATION OF FUNDS

Article 18

General framework for programming and allocating funds

In the case of geographic programmes, the Commission
1.
shall draw up a strategy paper and a multiannual
indicative
programme for each partner country or region, as provided for
in Article 19, and adopt an annual action programme for each
partner country or region, as provided for in Article 22.

In the case of thematic programmes, the Commission shall
draw up thematic strategy papers as provided for in Article 20,
and adopt action programmes as provided for in Article 22.

In exceptional circumstances, Community support may also
take the form of special measures not covered in strategy
papers or multiannual indicative programmes, as provided for
in Article 23.

2.
The Commission shall determine the multiannual indica-
tive allocations within each geographic programme using

The needs criteria include population, income per capita and
the extent of poverty,
income distribution and the level of
social development. The performance criteria include political,
economic and social progress, progress in good governance
and the effective use of aid, and in particular the way a country
uses scarce resources for development, beginning with its own
resources.

3.
The Commission may include a specific financial alloca-
tion for the purpose of strengthening cooperation between the
EU's outermost regions and neighbouring partner countries and
regions.

Article 19

Geographic strategy papers and multiannual

indicative

programmes

1.
The preparation and implementation of strategy papers
shall apply principles of aid effectiveness: national ownership,
partnership, coordination, harmonisation, alignment
to reci-
pient country or regional systems and results orientation as laid
down in Article 3(5) to (8).

Strategy papers shall cover no more than the period of
2.
validity of this Regulation and aim to provide a coherent frame-
work for cooperation between the Community and the partner
country or
region concerned, consistent with the overall
purpose and scope, objectives, principles and policy prescrip-
tions of, and Annex IV to, this Regulation. Multiannual indica-
tive programmes shall be based on strategy papers.

Strategy papers shall be reviewed at mid-term, or ad hoc if
necessary, in accordance where appropriate with the principles
and procedures laid down in the Partnership and Cooperation
Agreements concluded with the partner countries and regions;

3.
Strategy papers shall, in principle, be based on a dialogue
with the partner country or region which involves civil society
and regional and local authorities, so as to ensure that the
country or region concerned takes sufficient ownership of the
process and to encourage support for national development
strategies, particularly those for reducing poverty.

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4. Multiannual indicative programmes shall be drawn up on
the basis of the strategy papers for each partner country or
region. They shall be the subject of an agreement with the
country or region where possible.

indicative programmes shall set out the priority
Multiannual
areas selected for Community financing, the specific objectives,
the expected results and the performance indicators.

annual indicative programmes, referred to in this Article, and
in Article 20.

8.
The Commission and the Member States shall consult
each other, as well as other donors and development actors
including representatives of civil society and regional and local
authorities, at an early stage of the programming process in
order to promote complementarity among their cooperation
activities.

The programmes shall also set out the indicative financial allo-
cation, both overall and per priority area; this may be given in
the form of a range, where appropriate. These allocations shall
be consistent with the indicative allocations set out in Annex IV.

Article 20

Strategy papers for thematic programmes

The programmes shall be adjusted where necessary, taking into
account any mid-term or ad hoc reviews of strategy papers.

A multiannual
indicative allocation may be increased or
decreased as a result of reviews, particularly in the light of
special needs such as those of a post-crisis situation, or where
performance has been exceptional or unsatisfactory.

5.
In circumstances such as crises, post conflict situations or
threats to democracy, the rule of law, human rights or funda-
mental freedoms, a special emergency procedure may be used
to conduct an ad hoc review of the country's or region's coop-
eration strategy. Such reviews may propose a country or region
strategy to make the transition to long-term cooperation and
development.

6.
In accordance with Article 2(6), the strategy shall ensure
that measures taken under this Regulation are consistent with,
and avoid duplication with, measures eligible for funding under
other Community instruments,
in particular Regulation (EC)
No […] and Regulation (EC) No 1257/96. Where partner coun-
tries or groups of partner countries are directly involved in, or
affected by, a crisis or post-crisis situation, multiannual indica-
tive programmes shall place special emphasis on stepping up
coordination between relief, rehabilitation and development to
help them make the transition from an emergency situation to
the development phase; programmes for countries and regions
regularly subject to natural disasters shall provide for disaster
the
preparedness and prevention and the management of
consequences of such disasters.

To foster regional cooperation,

7.
the Commission may
decide when adopting annual action programmes of the type
referred to in Article 22, or the special measures referred to in
Article 23 for cooperation measures under this Chapter, that
projects or programmes of a regional or cross-border nature
carried out with countries listed in Annex V are eligible,
in
accordance with the first subparagraph of Article 2(4). Provi-
sions may be made for this in the strategy papers and multi-

1.
Thematic strategy papers shall cover no more than the
period of validity of this Regulation. They shall set out the
Community's strategy for the theme concerned, the Communi-
ty's priorities, the international situation and the activities of
the main partners. They shall be consistent with the overall
purpose and scope, objectives, principles and policy prescrip-
tions of, and Annex IV to, this Regulation.

Thematic strategy papers shall set out the priority areas selected
for financing by the Community, the specific objectives, the
expected results and the performance indicators.

The thematic strategy papers shall also give the indicative
financial allocation, both overall and per priority area; this may
be given in the form of a range, where appropriate.

Strategy papers shall be reviewed at mid-term, or ad hoc if
necessary.

2.
The Commission and the Member States shall consult
each other, as well as other donors and development actors
including representatives of civil society and local authorities,
at an early stage of the programming process in order to
promote complementarity among their cooperation activities.

Resources and intervention priorities shall be laid down

3.
for participation in global initiatives.

Article 21

Adoption of strategy papers and multiannual

indicative

programmes

and multiannual

Strategy papers
indicative programmes
referred to in Articles 19 and 20, and any reviews thereof
referred to in Article 19(2) and Article 20(1), as well as accom-
panying measures referred to in Article 17, shall be adopted by
the Commission in accordance with the procedure referred to
in Article 35(2).

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TITLE IV

IMPLEMENTATION

Article 22

Adoption of annual action programmes

The Commission shall adopt annual action programmes
indicative

1.
based on the strategy papers and multiannual
programmes referred to in Articles 19 and 20.

Exceptionally, for instance where an action programme has not
yet been adopted, the Commission may, on the basis of the
strategy papers
indicative programmes
referred to in Articles 19 and 20, adopt measures not provided
for in an annual action programme under the same rules and
procedures as for action programmes.

and multiannual

2.
Annual action programmes shall specify the objectives
pursued, the fields of intervention, the expected results, the
management procedures
financing
planned. They shall contain a description of the operations to
be financed, an indication of the amounts allocated for each
operation and an indicative implementation timetable. Objec-
tives shall be measurable and have time bound benchmarks.

amount of

and total

2.
Special measures shall specify the objectives pursued, the
intervention areas, the expected results, the management proce-
dures and the total amount of financing. They shall contain a
description of the operations to be financed, an indication of
the amounts allocated for each operation and the indicative
timetable for their implementation. They shall include a defini-
tion of the type of performance indicators that will have to be
monitored when implementing the special measures.

3. Where the cost of such measures exceeds EUR 10 million,
the Commission shall adopt
them under the management
procedure referred to in Article 35(2). For special measures
below EUR 10 million,
send the
measures to the Member States and the European Parliament
for information within one month of adopting its decision.

the Commission shall

4.
The procedure referred to in Article 35(2) need not be
used for amendments to special measures, such as those
making technical adjustments, extending the implementation
reassigning funds within the forecast budget, or
period,
increasing or reducing 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. Any
such technical adjustments shall be communicated within one
month to the European Parliament and to the Member States.

3.
The annual action programmes shall be adopted by the
Commission in accordance with the procedure referred to in
Article 35(2).

Article 24

Eligibility

level

including environmental

Appropriate environmental screening shall be undertaken
4.
impact assessment
at project
(EIA) for environmentally sensitive projects,
in particular for
major new infrastructure. Where relevant, strategic environ-
mental assessments (SEA) shall be used in the implementation
of sectoral programmes. The involvement of interested stake-
holders in environmental assessments and public access to the
results shall be ensured.

1. Without prejudice to Article 31, the following, inter alia,
shall be eligible for funding under this Regulation for the
purposes of
implementing the annual action programmes
referred to in Article 22 or the special measures referred to in
Article 23:

(a) partner countries and regions, and their institutions;

Article 23

(b) decentralised bodies in the partner countries, such as muni-

cipalities, provinces, departments and regions;

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

1.
In the event of unforeseen and duly justified needs or
circumstances related to natural disasters, civil strife or crises,
and which cannot be funded under Regulation (EC) No […] or
Regulation (EC) No 1257/96,
the Commission shall adopt
special measures not provided for in the strategy papers or
multiannual indicative programmes (hereinafter referred to as
‘special measures’).

Special measures may also be used to fund measures to ease
the transition from emergency aid to long-term development
operations,
including those to better prepare people to deal
with recurring crises.

(c) joint bodies set up by the partner countries and regions

with the Community;

(d) international organisations,

including regional organisa-
tions, UN bodies, departments and missions, international
and regional financial institutions and development banks,
in so far as they contribute to the objectives of this Regu-
lation;

(e) Community institutions and bodies, but only for

the
purposes of implementing the support measures referred to
in Article 26;

(f) EU agencies;

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(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
insofar as they
external assistance set out in Article 31,
help to achieve the objectives of this Regulation:

countries to develop parliamentary control and audit capa-
cities and to increase transparency and public access to
information. Disbursement of budgetary support shall be
conditional on satisfactory progress towards achieving the
objectives in terms of impact and results;

(i) public or para-Statal bodies,

local authorities and

consortia or representative associations thereof;

(c) sectoral support;

(ii) companies, firms and other private organisations and

businesses;

(d) in exceptional

cases,
programmes, which may take the form of:

sectoral

and

general

import

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

(i) sectoral import programmes in kind;

(iv) non-State actors as defined in paragraph 2;

(v) natural persons.

2.
The non-State, non-profit making actors eligible for finan-
cial support under this Regulation operating on an independent
and accountable basis include: non governmental organisations,
organisations representing indigenous peoples, organisations
representing national and/or ethnic minorities,
local traders'
associations and citizens' groups, cooperatives, trade unions,
organisations representing economic and social interests, orga-
nisations fighting corruption and fraud and promoting good
and organisations
rights organisations
governance,
combating
(including
local
networks) involved in decentralised regional cooperation and
integration, consumer organisations, women's and youth orga-
nisations, teaching, cultural, research and scientific organisa-
tions, universities, churches and religious associations and
communities, the media and any non governmental associa-
tions and independent foundations, including independent poli-
tical foundations, likely to contribute to the implementation of
the objectives of this Regulation.

civil
discrimination,

organisations

Article 25

Types of financing

1.

Community financing may take the following forms:

(a) projects and programmes;

(b) 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 formu-
lated sectoral or macroeconomic policies positively
assessed by its principal donors; including, where relevant,
institutions. The Commission
the international
shall consistently use an approach based on results and
performance
and
monitor its conditionality and support efforts of partner

indicators and shall

clearly define

financial

(ii) sectoral

import

foreign
programmes
exchange to finance imports for the sector in question;
or

providing

(iii) general

import

foreign
exchange to finance general imports of a wide range
of products;

programmes

providing

in and development of

(e) funds made available to the EIB or other financial interme-
diaries on the basis of Commission programmes for the
purpose of providing loans (in particular to support invest-
ment
the private sector), risk
capital (in the form of subordinated or conditional loans)
or other temporary minority holdings in business capital,
and contributions to guarantee funds in accordance with
Article 32, to the extent that the financial risk of the Com-
munity is limited to these funds;

(f) interest-rate subsidies, especially for environment related

loans;

(g) debt-relief,

under

internationally

agreed

debt

relief

programmes;

(h) grants to finance projects submitted by entities of the type

listed in Article 24(1)(b), (c), (d), (f) and (g)(i) to (v);

(i) grants to finance the operating costs of entities of the type
listed in Article 24(1)(b), (c), (d), (f) and (g)(i), (iii) and (iv);

(j) funding for twinning programmes between public institu-
tions, local authorities, national public bodies or private-
law entities entrusted with public service tasks of a
Member State and those of a partner country or region;

(k) contributions

such as
managed by international or regional organisations;

to international

funds,

those

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

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(m) capital

investments in international financial

institutions

(e) partner countries and regions in receipt of funding.

and regional development banks;

(n) human and material resources required for effective admin-
istration and supervision of projects and programmes by
partner countries and regions.

Community assistance shall not be used for paying taxes,

2.
duties or charges in beneficiary countries.

Article 26

Support measures

1.
Community financing may cover expenditure associated
with the preparation, follow up, monitoring, audit and evalua-
tion activities directly necessary for the implementation of this
Regulation and the achievement of its objectives, e.g. studies,
meetings, information, awareness-raising, training and publica-
tion activities, expenditure associated with computer networks
for the exchange of information, and any other administrative
or technical assistance expenditure necessary for the manage-
ment of the programme.
It shall also cover expenditure at
Commission delegations on the administrative support needed
to manage operations financed under this Regulation.

These support measures are not necessarily covered by
2.
multiannual
indicative programmes 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
indicative programmes in accordance with
the multiannual
Article 23(3) and (4).

Article 27

Co-financing

1. Measures shall be eligible for co-financing from the
following, inter alia:

(a) Member States and their regional and local authorities, and

in particular their public and para-Statal agencies;

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

para-Statal agencies;

In the case of parallel co-financing,

the project or
2.
programme is split into a number of clearly identifiable compo-
nents, which are each financed by the different partners
providing co-financing in such a way that the end-use of the
financing can always be identified.

In the case of joint co-financing, the total cost of a project or
programme is shared between the partners providing the co-
financing and the resources are pooled in such a way that it is
no longer possible to identify the source of financing for any
given activity undertaken as part of the project or programme.

3.
In the case of joint co-financing, 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, Euratom)
No 1605/2002.

Article 28

Management procedures

1.
The measures financed under this Regulation shall be
implemented in accordance with Regulation (EC, Euratom)
No 1605/2002 and any revision thereof.

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

In the case of decentralised management, the Commission
3.
may decide to use the procurement or grant procedures of the
beneficiary partner country or region after verifying that they
respect
the relevant criteria of Regulation (EC, Euratom)
No 1605/2002, provided that:

— 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,

(c) international organisations,

including regional organisa-
tions, and in particular international and regional financial
institutions;

(d) companies,

firms, other private organisations and busi-

nesses, and other non-State actors;

— the beneficiary partner country or region undertakes to
check regularly that the operations financed by the General
Budget of the European Union have been properly imple-
mented, to take appropriate measures to prevent irregulari-
ties and fraud, and,
if necessary, to take legal action to
recover unduly paid funds.

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Article 29

Article 31

Budget commitments

1.
Budget commitments shall be made on the basis of deci-
sions taken by the Commission in accordance with Arti-
cles 22(1), 23(1) and 26(1).

Community financing may take one of the following legal

2.
forms, inter alia:

— financing agreements,

— grant agreements,

— procurement contracts,

— employment contracts.

Article 30

Protecting the Community's financial interests

interests,

Any agreements

1.
resulting from this Regulation shall
contain provisions ensuring the protection of the Community's
financial
in particular with respect to irregularities,
fraud, corruption and any other illegal activity, in accordance
with Council Regulation (EC, Euratom) No 2988/95 of 18
December 1995 on the protection of the European Commu-
nities' financial interests (1), 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
interests
against fraud and other irregularities (2) and Regulation (EC)
No 1073/1999 of the European Parliament and of the Council
of 25 May 1999 concerning investigations conducted by the
European Antifraud Office (OLAF) (3).

the European Communities'

financial

2.
Agreements shall expressly entitle the Commission and
the Court of Auditors to perform audits, including document
audits or on the
contractor or
subcontractor who has received Community funds. They shall
also expressly authorise the Commission to carry out on-the-
spot
in
and
Regulation (Euratom, EC) No 2185/96.

inspections

audits of

provided

checks

spot

any

for

as

Public procurement procedures, grant award procedures,
rules of origin

1.
Participation in the award of procurement or grant
contracts financed under this Regulation shall be open to all
natural persons who are nationals of, or legal persons who are
established in, a Member State of the Community, in an official
candidate country as recognised by the European Community
or in a Member State of the European Economic Area.

Participation in the award of procurement or grant contracts
financed under a geographic programme as defined in Articles 5
to 10 shall be open to all natural persons who are nationals of,
or legal persons who are established in, any developing country
eligible by virtue of Annex I.

Participation in the award of procurement or grant contracts
financed under a thematic programme as defined in Articles 11
to 16, and the programme set out in Article 17, shall be open
to all natural persons who are nationals of, or legal persons
who are established in, a developing country, as specified by
the OECD/DAC and in Annex II, in addition to natural or legal
persons eligible by virtue of the thematic programme or the
in Article 17. The Commission shall
programme set out
publish and update Annex II
in accordance with regular
reviews of the list of aid recipients of the OECD/DAC, and
inform the Council thereof.

Participation in the award of procurement or grant
2.
contracts financed under this Regulation shall also be open to
all natural persons who are nationals of or legal persons who
are established in any country other than those referred in
paragraph 1, where reciprocal access to their external assistance
has been established.

Reciprocal access shall be granted whenever a country grants
eligibility on equal terms to the Member States and to the reci-
pient country concerned.

3.
All contracts resulting from the implementation of assis-
tance shall ensure the rights of the Commission and the Court
of Auditors under paragraph 2 during and after the perfor-
mance of the contracts.

(1) OJ L 312, 23.12.1995, p. 1.
(2) OJ L 292, 15.11.1996, p. 2.
(3) OJ L 136, 31.5.1999, p. 1.

Reciprocal access shall be established by means of a specific
decision concerning a given country or a given regional group
of countries. Such a decision shall be adopted in accordance
with the procedure referred to in Article 35(2) and shall be in
force for a minimum period of one year.

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The granting of reciprocal access shall be based on a compar-
ison between the Community and other donors and shall
proceed at sectoral level, as defined by the OECD/DAC cate-
gories, or at country level, whether it be a donor or a recipient
country. The decision to grant such reciprocity to a donor
country shall be based on the transparency, consistency and
proportionality of the aid provided by that donor, including its
qualitative and quantitative nature. The recipient countries shall
be consulted as part of the procedure described in this para-
graph.

Reciprocal access in the least developed countries as defined by
the OECD/DAC shall be automatically granted to OECD/DAC
members.

rules would make the realisation of a project, a programme or
an action impossible or exceedingly difficult.

9. Whenever Community funding covers an operation
implemented through an international organisation, participa-
tion in the appropriate contractual procedures shall be open to
all natural or legal persons who are eligible pursuant to para-
graph 1 and 2 as well as to all natural or legal persons who are
eligible pursuant to the rules of that organisation, care being
taken to ensure that equal treatment is afforded to all donors.
The same rules shall apply in respect of supplies, materials and
experts.

3.
Participation in the award of procurement or grant
contracts financed under a Community instrument shall be
open to international organisations.

4.
The above is without prejudice to the participation of
categories of eligible organisations by nature or by localisation
in regard to the objectives of the action to carry out.

Whenever Community funding covers an operation co-financed
with a third country, subject to reciprocity as defined in para-
graph 2, or with a regional organisation, or with a Member
State, participation in the appropriate contractual procedures
shall be open to all natural or legal persons who are eligible
pursuant to paragraph 1, 2 and 3 as well as to all natural or
legal persons who are eligible under the rules of such third
country, regional organisation or Member State. The same rules
shall apply in respect of supplies, materials and experts.

Experts may be of any nationality, without prejudice to
in the

5.
the qualitative and financial
Community's procurement rules.

requirements

set out

For the purposes of aid channelled directly through non-
10.
State actors under
thematic programme defined in
Article 14, the provisions of paragraph 1 shall not apply to the
eligibility criteria established for the selection of grant benefici-
aries.

the

6.
All supplies and materials purchased under a contract
financed under this Regulation shall originate from the Com-
munity or from an eligible country as defined in paragraph 1
and 2. The term ‘origin’ for the purpose of this Regulation is
defined in the relevant Community legislation on rules of
origin for customs purposes.

Beneficiaries of these grants shall abide by the rules established
in this Article where the implementation of aid requires the
award of procurement contracts.

The Commission may,

7.
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 other third countries, and
the use of supplies and materials of different origin.

In order to accelerate the eradication of poverty through
11.
the promotion of
local capacities, markets and purchases,
special consideration shall be given to local and regional
procurement in partner countries.

8.
The Commission may, in duly substantiated exceptional
cases, authorise the participation of natural persons who are
nationals of or legal persons who are established in other coun-
tries than those referred to in paragraph 1 and 2, or the
purchase of supplies and materials of different origins from
that set out in paragraph 6.

Tenderers who have been awarded contracts shall respect inter-
nationally agreed core labour standards, e.g.
the ILO core
labour standards, conventions on freedom of association and
collective bargaining, elimination of
forced and compulsory
labour, elimination of discrimination in respect of employment
and occupation, and the abolition of child labour.

Derogations may be justified on the basis of the unavailability
of products and services in the markets of
the countries
concerned, for reasons of extreme urgency, or if the eligibility

Access by developing countries to Community assistance shall
be rendered possible by all such technical assistance as is
deemed appropriate.

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Article 32

Economic and Social Committee and to the Committee of the
Regions.

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

1.
The funds referred to in Article 25(1)(e) shall be managed
by the EIB, other financial intermediaries or any other bank or
organisation with the capacity to manage such funds.

2.
The Commission shall adopt implementing provisions for
paragraph 1 on a case-by-case basis to cover risk sharing, the
remuneration of the intermediary responsible for implementa-
tion, the use and recovery of profits on funds, and the closure
of the operation.

2.
The annual report shall contain information relating to
the previous year on the measures financed, the results of
monitoring and evaluation exercises, the involvement of the
relevant partners, and the implementation of budget commit-
ments and payments, broken down by country, region and
cooperation sector. It shall assess the results of the assistance,
using as far as possible, specific and measurable indicators of
its role in meeting the objectives of this Regulation. Particular
attention shall be given to social sectors and to progress made
towards achieving the MDGs.

Article 33

Evaluation

1.
The Commission shall regularly monitor and review its
programmes, and evaluate the results of the implementation of
geographical and thematic policies and programmes, and of
sectoral policies and the effectiveness of programming, where
appropriate by means of independent external evaluations, in
order to ascertain whether the objectives have been met and
enable it
to formulate recommendations with a view to
improving future operations. Proposals by the European Parlia-
ment or the Council for independent external evaluations will
be taken into due account. Particular attention shall be given to
social sectors and to progress made towards achieving the
MDGs.

2.
The Commission shall send its evaluation reports to the
European Parliament and to the Committee referred to in
Article 35 for information. Member States may request
to
discuss specific evaluations in the Committee referred to in
Article 35(3). The results shall
feed back into programme
design and resource allocation.

The Commission shall associate all relevant stakeholders,
3.
including non-State actors and local authorities, in the evalua-
tion phase of the Community assistance provided under this
Regulation.

TITLE V

FINAL PROVISIONS

Article 34

Annual report

1.
The Commission shall examine the progress made in
implementing the measures taken under this Regulation and
shall submit to the European Parliament and the Council an
annual report on the implementation and the results and, as far
as possible, on the main outcomes and impacts of the assis-
tance. This report shall also be submitted to the European

Article 35

Committee

1.

The Commission shall be assisted by a committee.

2. Where reference is made to this paragraph, Articles 4 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof. The period laid down in
Article 4(3) of the Decision shall be set at 30 days.

3. Where reference is made to this paragraph, Articles 3 and
7 of Decision 1999/468/EC shall apply, having regard to the
provisions of Article 8 thereof.

4.

The committee shall adopt its rules of procedure.

5.
An observer from the EIB shall take part in the commit-
tee's proceedings, with regard to questions concerning the
Bank.

Article 36

Participation by a third country not eligible under this
Regulation

Without prejudice to Article 3(5), to ensure the coherence and
effectiveness of Community assistance, the Commission may
decide when adopting action programmes
referred to in
Article 22 or the special measures referred to in Article 23 that
countries, territories and regions eligible for Community assis-
tance under Regulation (EC) No 1085/2006 or Regulation (EC)
No […] and the EDF are eligible for measures under this Regu-
lation where the geographic or thematic project or programme
to be implemented is of a global, regional or cross border
nature. Provision may be made for this method of financing in
the strategy papers and multiannual
indicative programmes
referred to in Articles 19 and 20. The provisions of Article 10
concerning eligibility and the provisions of Article 31
concerning participation in public procurement and grant
award procedures and rules of origin shall be adapted to allow
the countries, territories and regions concerned to take part.

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Article 37

Suspension of assistance

Without prejudice to the provisions on suspension of aid in
partnership and cooperation agreements with partner countries
and regions, where a partner country fails to observe the prin-
ciples referred to in Article 3(1), and where consultations with
the partner country do not lead to a solution acceptable to
both parties, or if consultations are refused or in cases of
special urgency, the Council, acting by a qualified majority on
a proposal
from the Commission, may take appropriate
measures in respect of any assistance granted to the partner
country under this Regulation. Such measures may include full
or partial suspension of assistance.

Article 38

Financial provisions

The financial reference amount for the implementation of
is

2007-2013

period

over

the

1.
this
EUR 16 897 million.

Regulation

2.
The indicative amounts allocated to each programme
referred to in Articles 5 to 10 and 11 to 16 and 17 are laid
down in Annex IV. These amounts are established for the
period 2007-2013.

Annual

appropriations

3.
authorised by the
budgetary authority within the limits of the multiannual finan-
cial framework.

shall be

An indicative amount of EUR 465 million has been
for thematic programmes to

4.
included in the total amount
finance activities that benefit the ENPI countries.

Article 39

Repeals

1.

The following Regulations are hereby repealed:

(a) Regulation (EC) No 2110/2005 of the European Parlia-
ment and of the Council of 14 December 2005 on access
to Community external assistance (1);

(b) Regulation (EC) No 806/2004 of the European Parliament
and of the Council of 21 April 2004 on promoting gender
equality in development cooperation (2);

(1) OJ L 344, 27.12.2005, p. 1.
(2) OJ L 143, 30.4.2004, p. 40.

(c) Regulation (EC) No 491/2004 of the European Parliament
and of
the Council of 10 March 2004 establishing a
programme for financial and technical assistance to third
asylum
countries
(AENEAS) (3);

areas of migration and

in the

(d) Regulation (EC) No 1568/2003 of the European Parlia-
ment and of the Council of 15 July 2003 on aid to fight
poverty diseases (HIV/AIDS, tuberculosis and malaria) in
developing countries (4);

(e) Regulation (EC) No 1567/2003 of the European Parlia-
ment and of the Council of 15 July 2003 on aid for poli-
cies and actions on reproductive and sexual health and
rights in developing countries (5);

(f) Regulation (EC) No 2130/2001 of the European Parlia-
ment and of the Council of 29 October 2001 on opera-
tions to aid uprooted people in Asia and Latin American
developing countries (6);

(g) Regulation (EC) No 2494/2000 of the European Parlia-
ment and of
the Council of 7 November 2000 on
measures to promote the conservation and sustainable
management of tropical forests and other forests in devel-
oping countries (7);

(h) Regulation (EC) No 2493/2000 of the European Parlia-
ment and of
the Council of 7 November 2000 on
measures to promote the full integration of the environ-
mental dimension in the development process of devel-
oping countries (8);

(i) Regulation (EC) No 1726/2000 of the European Parlia-
ment and of the Council of 29 June 2000 on development
cooperation with South Africa (9);

(j) Council Regulation (EC) No 1659/98 of 17 July 1998 on

decentralised cooperation (10);

(3) OJ L 80, 18.3.2004, p. 1.
(4) OJ L 224, 6.9.2003, p. 7. Regulation as amended by Regulation

(EC) No 2110/2005.

(5) OJ L 224, 6.9.2003, p. 1. Regulation as amended by Regulation

(EC) No 2110/2005.

(6) OJ L 287, 31.10.2001, p. 3. Regulation as last amended by

Regulation (EC) No 2110/2005.

(7) OJ L 288, 15.11.2000, p. 6. Regulation as amended by Regulation

(EC) No 2110/2005.

(8) OJ L 288, 15.11.2000, p. 1. Regulation as amended by Regulation

(EC) No 2110/2005.

(9) OJ L 198, 4.8.2000, p. 1. Regulation as last amended by Regulation

(EC) No 2110/2005

(10) OJ L 213, 30.7.1998, p. 6. Regulation as last amended by Regu-
lation (EC) No 625/2004 of the European Parliament and of the
Council (OJ L 99, 3.4.2004, p. 1).

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(k) Council Regulation (EC) No 1658/98 of 17 July 1998 on
co-financing operations with European non-governmental
organisations (NGOs) in fields of interest to the developing
countries (1);

(l) Council Regulation (EC) No 1292/96 of 27 June 1996 on
food-aid policy and food-aid management and special
operations in support of food security (2);

(m) Council Regulation (EEC) No 443/92 of 25 February 1992
on financial and technical assistance to, and economic
cooperation with, the developing countries in Asia and
Latin America (3) (ALA).

Article 40

Review

later than 31 December 2010,

the Commission shall
Not
submit to the European Parliament and the Council a report
evaluating the implementation of this Regulation in the first
three years with,
intro-
including the indicative
ducing the necessary modifications,
financial allocations set out in Annex IV.

if appropriate, a legislative proposal

Article 41

Entry into force

2.
The repealed Regulations shall continue to apply for legal
acts and commitments of pre 2007 budget years. Any reference
to the repealed Regulations shall be deemed to be a reference
to this Regulation.

This Regulation shall enter into force on the day following that
of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2007 to 31 December 2013.

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

…

(1) OJ L 213, 30.7.1998, p. 1. Regulation as last amended by Regu-

lation (EC) No 2110/2005.

(2) OJ L 166, 5.7.1996, p. 1. Regulation as amended by Regulation
(EC) No 1726/2001 of the European Parliament and of the Council
(OJ L 234, 1.9.2001, p. 10).

(3) OJ L 52, 27.2.1992, p. 1. Regulation as last amended by Regulation

(EC) No 2112/2005 (OJ L 344, 27.12.2005, p. 23).

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ANNEX I

COUNTRIES ELIGIBLE UNDER ARTICLE 1(1)

Latin America

1. Argentina

2. Bolivia

3. Brazil

4. Chile

5. Colombia

6. Costa Rica

7. Cuba

8.

9.

Ecuador

El Salvador

10. Guatemala

11. Honduras

12. Mexico

13. Nicaragua

14. Panama

15. Paraguay

16. Peru

17. Uruguay

18. Venezuela

Asia

19. Afghanistan

20. Bangladesh

21. Bhutan

22. Cambodia

23. China

24. India

25. Indonesia

26. Democratic People's Republic of Korea

27. Laos

28. Malaysia

29. Maldives

30. Mongolia

31. Myanmar/Burma

32. Nepal

33. Pakistan

34. Philippines

35. Sri Lanka

36. Thailand

37. Viet Nam

Central Asia

38. Kazakhstan

39. Kyrgyz Republic

40. Tajikistan

41. Turkmenistan

42. Uzbekistan

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Middle East

43. Iran

44. Iraq

45. Oman

46. Saudi Arabia

47. Yemen

South Africa

48. South Africa

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ANNEX II

OECD/DAC LIST OF ODA RECIPIENTS

Effective from 2006 for reporting on 2005, 2006 and 2007

Other Low Income Countries
(per capita GNI < USD 825 in
2004)

Lower Middle Income Coun-
tries and Territories
(per capita GNI USD 826-
USD 3 255 in 2004)

Upper Middle Income Coun-
tries and Territories
(per capita GNI USD 3 256-
USD 10 065 in 2004)

Cameroon
Republic of the Congo
Côte d'Ivoire
Ghana
India
Kenya
Democratic People's
Republic of Korea
Kyrgyz Rep.
Moldova
Mongolia
Nicaragua
Nigeria
Pakistan
Papua New Guinea
Tajikistan
Uzbekistan
Viet Nam
Zimbabwe

* Anguilla
Antigua and Barbuda
Argentina
Barbados
Belize
Botswana
Chile
Cook Islands
Costa Rica
Croatia
Dominica
Gabon
Grenada
Lebanon
Libya
Malaysia
Mauritius
* Mayotte
Mexico
* Montserrat
Nauru
Oman
Palau
Panama
Saudi Arabia (1)
Seychelles
South Africa
* St. Helena
St. Kitts-Nevis
St. Lucia
St. Vincent & Grenadines
Trinidad & Tobago
Turkey
* Turks & Caicos Islands
Uruguay
Venezuela

Albania
Algeria
Armenia
Azerbaijan
Belarus
Bolivia
Bosnia and Herzegovina
Brazil
China
Colombia
Cuba
Dominican Republic
Ecuador
Egypt
El Salvador
Fiji
Georgia
Guatemala
Guyana
Honduras
Indonesia
Iran
Iraq
Jamaica
Jordan
Kazakhstan
Macedonia, Former Yugo-
slav
Republic ofMarshall Islands
Micronesia, Fed. States
Morocco
Namibia
Niue
Palestinian Adm. Areas
Paraguay
Peru
Philippines
Serbia & Montenegro
Sri Lanka
Suriname
Swaziland
Syria
Thailand
* Tokelau
Tonga
Tunisia
Turkmenistan
Ukraine
* Wallis & Futuna

Least Developed Countries

Afghanistan
Angola
Bangladesh
Benin
Bhutan
Burkina Faso
Burundi
Cambodia
Cape Verde
Central African Rep.
Chad
Comoros
Democratic Republic of the
Congo
Djibouti
Equatorial Guinea
Eritrea
Ethiopia
Gambia
Guinea
Guinea-Bissau
Haiti
Kiribati
Laos
Lesotho
Liberia
Madagascar
Malawi
Maldives
Mali
Mauritania
Mozambique
Myanmar
Nepal
Niger
Rwanda
Samoa
Sao Tome & Principe
Senegal
Sierra Leone
Solomon Islands
Somalia
Sudan
Tanzania
Timor-Leste
Togo
Tuvalu
Uganda
Vanuatu
Yemen
Zambia

Territory

*
(1) Saudi Arabia passed the high income country threshold in 2004. In accordance with the OECD/DAC rules for revision of this list, it
will graduate from the list in 2008 if it remains a high income country in 2005 and 2006. Its net ODA receipts from OECD/DAC
Members were USD 9,9 million in 2003 and USD 9,0 million (preliminary) in 2004.

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ANNEX III

ACP SUGAR PROTOCOL COUNTRIES

1. Barbados

2. Belize

3. Guyana

4.

5.

Jamaica

Saint Kitts and Nevis

6. Trinidad and Tobago

7.

Fiji

8. Republic of the Congo

9. Côte d'Ivoire

10. Kenya

11. Madagascar

12. Malawi

13. Mauritius

14. Mozambique

15. Swaziland

16. Tanzania

17. Zambia

18. Zimbabwe

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INDICATIVE FINANCIAL ALLOCATIONS FOR THE PERIOD 2007-2013 (IN EUR MILLION)

ANNEX IV

Total

Geographic programmes:

Latin America

Asia

Central Asia

Middle East

South Africa

Thematic programmes:

Investing in people

Environment and sustainable management of natural resources

Non-State actors and local authorities in development

Food security

Migration and asylum

ACP Sugar Protocol countries

16 897

10 057

2 690

5 187

719

481

980

5 596

1 060

804

1 639

1 709

384

1 244

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ANNEX V

NON-DEVELOPING COUNTRIES AND TERRITORIES

1. Australia

2. Bahrain

3. Brunei

4. Canada

5. Chinese Taipei

6. Hong Kong

7.

Japan

8. Korea

9. Macao

10. New Zealand

11. Kuwait

12. Qatar

13. Singapore

14. United Arab Emirates

15. United States of America

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STATEMENT OF THE COUNCIL'S REASONS

I. INTRODUCTION

On 29 September 2004, the Commission forwarded a proposal for a Regulation of the European
Parliament and of the Council establishing a financing instrument for development cooperation and
economic cooperation. The proposal was based on Articles 179(1) and 181a(2) of the EC Treaty.

The European Parliament delivered its Opinion at first reading on 18 May 2006.

The Council adopted its common position in accordance with Article 251 of the EC Treaty on 23
October 2006.

II. OBJECTIVE

In accordance with Article 179 of the EC Treaty, the objective of the proposed Regulation is to finance
measures aimed at supporting cooperation with developing countries, territories and regions set out in
the Annex to the Regulation and to finance thematic programmes in countries, regions and territories
eligible to assistance under a geographical programme of the Regulation, to assistance under the Euro-
pean Neighbourhood and Partnership Instrument or to geographical cooperation under the European
Development Fund.

III. ANALYSIS OF THE COMMON POSITION

General

The initial Commission proposal covered the general objectives defined in Title XX and Title XXI of
the EC Treaty. It therefore provided support for both development policy and all forms of cooperation
with developing countries, countries in transition and industrialised countries. It did not impose any
restrictions regarding the areas of Community cooperation or intervention.

At first reading, the European Parliament adopted a great many amendments to the initial Commission
proposal with a view to reducing its scope to developing countries and basing it on a single Treaty
provision (Article 179). The European Parliament also wished to transform the proposed Regulation
into a procedural instrument and favoured policy priorities being established by separate co-decided
Regulations.

Transforming the proposed Regulation into a procedural instrument requiring several new Commission
proposals was not acceptable to Council or Commission which both believed that such approach
would be incompatible with the stated aim of simplifying the structure of the Community's external
financing instruments. After intensive discussions between the Council, the European Parliament and
the Commission, an understanding on the architecture of the proposed Regulation was reached late
June 2006 within the framework of an overall agreement on the package of external financing instru-
ments.

Further to this understanding, a proposal for a Regulation on cooperation with industrialised countries
was separated from the initial Commission proposal.

The Common Position, reflecting this understanding between all Institutions involved, now provides
for a Regulation establishing a financing instrument for development cooperation, based solely on
Article 179 of the EC Treaty and is a response to a large number of the concerns voiced in the Euro-
pean Parliament's first-reading amendments.

The following sections describe the changes of substance.

Recitals

The number and content of the recitals have been expanded in order to match the changes introduced
in the body of the Regulation.

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Legal basis

In accordance with the understanding reached between the Council, the European Parliament and the
Commission on the overall architecture of the external financing instruments, the initial Commission
proposal for an instrument for development cooperation and economic cooperation was slimmed
down and limited to a financing instrument for development cooperation. This change made it possible
to delete the reference to Article 181a(1) of the EC Treaty, and to base the Regulation solely on
Article 179(1).

Scope, objectives and general principles (Articles 1 to 3)

Article 1 of the Common Position provides that the overall purpose of the Regulation is to finance
measures aimed at supporting cooperation with certain developing countries, territories and regions
and to finance thematic programmes in countries, regions and territories eligible to assistance under a
geographical programme of the Regulation, to assistance under the European Neighbourhood and Part-
nership Instrument or to geographical cooperation under the European Development Fund.

Article 2 lays down the objectives of geographical and thematic cooperation with partner countries
and regions. It also provides that measures aimed at cooperation under geographical programmes shall
be designed so as to be fully eligible for Official Development Assistance. Thematic programmes shall
be equally designed so as to fulfil the criteria for Official Development Assistance, subject to some duly
defined and quantified exceptions.

Article 3 contains general principles applicable to all measures and programmes under the Regulation.
These principles are based on Title XX of the EC Treaty, the Development Policy Statement and
various internationally accepted principles and commitments, including on aid effectiveness.

Geographical and thematic programmes (Articles 4 to 17)

The Council, very much like the European Parliament in its opinion at first reading, was concerned at
the lack of policy content in the initial Commission proposal. Article 3 of the initial Commission
proposal merely stated that measures should be financed under geographical or thematic programmes,
which would be drawn up by the Commission, that would equally specify their geographical scope.
The Council, however, chose to take a different way in order to preserve its legislative powers. Rather
than reducing the initial Commission proposal to a procedural instrument, requiring the Commission
to make use of its right of initiative to present proposals for additional policy regulations, the Council
felt that it would be more appropriate to introduce policy content in the provisions of the Regulation.
Therefore, Articles 5 to 10 of the Common Position set the policy for geographical programmes, while
Articles 11 to 16 provide for the content of thematic programmes.

Article 5 is a horizontal provision, laying down principles applicable to each geographical programme.
Hence, consistently with the overall purpose and scope, objectives and general principles of the Regu-
lation, geographical cooperation with developing countries in Latin America, Asia, Central Asia and
the Middle East, and with South Africa, shall include actions within areas such as poverty eradication
and achievement of the Millennium Development Goals or areas which are defined in the Development
Policy Statement as areas for Community action, including human development; social cohesion and
employment; governance, democracy, human rights and support for institutional reforms; trade and
regional integration; environment and sustainable development of natural resources; water and energy;
infrastructure, communication and transport; rural development, territorial planning, agriculture and
food security; as well as post-crisis situations and fragile States.

Articles 6 to 10 lay down areas of cooperation with each of the geographical regions, which shall be
consistent with and additional to the actions provided for in Article 5. These specific additional areas
of cooperation allow for a tailor-made approach taking fully into account the characteristics of each
geographical region. The content of these provisions is largely based on existing Regulations.

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A similar approach was followed for thematic programmes. Article 11 sets out the principles applying
to all thematic programmes. Specific content is laid down in the following provisions, detailing the
content of the various thematic programmes:
Investing in people (Article 12), Environment and
sustainable management of natural resources including energy (Article 13), Non State actors and local
authorities in development
(Article 14), Food Security (Article 15), and Migration and Asylum
(Article 16).

To a large extent, the content of these thematic provisions is based on, but not limited to, existing
thematic Regulations. The content has been adapted to changing needs and realities, takes into account
the Development Policy Statement and reflects a series of communications presented by the Commis-
sion in January 2006.

Finally, following up on Regulation (EC) No 266/2006, provision was made in Article 17 for Com-
munity assistance to ACP Sugar Protocol countries aimed at supporting their adjustment process due
to the reform of the common organization of the market in sugar.

Financial provisions (Article 38 and Annex IV)

The Common Position, in its Article 38, provides for a financial reference amount for implementation
of the Regulation for the period 2007-2013. The indicative amounts allocated to each programme are
laid down in Annex IV, which forms an integral part of the Regulation. The Common Position also
earmarks an indicative amount in the total amount for thematic programmes to finance activities that
benefit countries under the European Neighbourhood and Partnership Instrument.

The inclusion of this indicative financial breakdown is the Council's response to a shared concern with
the European Parliament, i.e. the need for greater involvement of both Institutions in resource alloca-
tion.

Review, entry into force and application (Articles 40 and 41)

The Common Position provides for the Regulation to enter into force on the day following that of its
publication in the Official Journal. It will apply from 1 January 2007 to 31 December 2013. Moreover,
Article 40 puts an obligation upon the Commission to present a report to the European Parliament
and the Council evaluating the implementation of the Regulation, including the indicative financial
allocations set out in Annex IV, not later than 31 December 2010.

IV. CONCLUSION

The Council considers that its Common Position, which is the result of extensive preparatory work and
negotiations since 2005 and which is supported by the Commission, addresses the concerns expressed
by the European Parliament.

As a result of frequent and intensive contacts and exchanges of views between the respective Presiden-
cies of the Council and key players of the European Parliament, a significant convergence of positions
between the two Institutions emerged during the process. This convergence has finally led to compro-
mise solutions, reflected in the Common Position, for all outstanding issues.

Thus, the Common Position seeks to establish a workable and efficient financing instrument for Com-
munity development cooperation, which represents a good balance between the need to simplify the
existing instruments and respect for the powers of both branches of the legislature.