Regulation (EC) No 1905/2006 of the European Parliament and of the Council of 18 December 2006 establishing a financing instrument for development cooperation
Date: 2006-12-18
Institutions: Council of the European Union, European Parliament
Subjects: EU aid, cooperation policy, democratisation, development aid, eligibility criteria, least-developed country

27.12.2006

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Official Journal of the European Union

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REGULATION (EC) No 1905/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 18 December 2006

establishing a financing instrument for development cooperation

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,

The Community pursues a cooperation policy that fosters
cooperation, partnerships and joint undertakings between
economic players in the Community and partner coun-
tries and regions, and promotes dialogue between poli-
tical, economic and social partners in relevant sectors.

Having regard to the proposal from the Commission,

(4)

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

laid down in

Whereas:

(1)

candidate

A new framework for planning and delivering assistance
is proposed in order to make the Community's external
effective. Council Regulation (EC)
assistance more
No 1085/2006 (2) establishes an Instrument
for Pre
Accession (IPA) for Community assistance to candidate
and potential
countries. Regulation (EC)
No 1638/2006 (3)
lays down general provisions estab-
lishing a European Neighbourhood and Partnership
Instrument (ENPI). Council Regulation (EC) No 1934/
2006 (4) establishes a financing instrument for coopera-
tion with industrialised and other high-income countries
and territories. Regulation (EC) No 1717/2006 (5) estab-
lishes an instrument for stability. Regulation (EC) No …/
2007 (*) establishes an instrument
for nuclear safety
cooperation. Regulation (EC) No 1889/2006 (6) estab-
lishes a financing instrument
the promotion of
for
and human rights worldwide. Council
democracy
Regulation (EC) No 1257/96 (7) concerns humanitarian
aid. This Regulation establishes a financing instrument
for development cooperation providing direct support for
the Community's development cooperation policy.

(2)

The Community pursues a development cooperation
policy aimed at achieving the objectives of poverty reduc-
tion, sustainable economic and social development and
the smooth and gradual integration of developing coun-
tries into the world economy.

(1) Opinion of

the European Parliament of 18 May 2006 (not yet
published in the Official Journal), Council Common Position of 23
October 2006 (not yet published in the Official Journal) and Position of
the European Parliament of 12 December 2006 (not yet published in
the Official Journal).

(2) OJ L 210, 31.7.2006, p. 82.
(3) OJ L 310, 9.11.2006, p. 1.
(4) OJ L 405, 30.12.2006, p. 40.
(5) OJ L 327, 24.11.2006, p. 1.
(*) This Regulation will be adopted at a later date.
(6) OJ L 386, 29.12.2006, p. 1.
(7) 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).

(MDGs),

such as

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

(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 for human rights, fundamental freedoms,
democratic principles, the rule of law, good governance
and gender equality is fundamental to long-term develop-
ment.

(7)

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

(8)

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 capacity-
building assistance as well as the necessary measures
seeking to facilitate the transfer of technology through
and for
to enhance the relationship between
foreign direct investment and trade, and the mutual inter-
relation of trade and environment, and to help devel-
oping countries take part in new trade negotiations and
implement their results.

trade,

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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
the
any subsequent modifications
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.

thereto, provides

should

geographic

cooperation

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

be
thematic

and

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 1638/
2006 and to cooperation under
the EDF. Thematic
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
international operation that is not geographically specific.
They also have an important role in developing Com-
munity policies externally and ensuring sectoral consis-
tency and visibility.

(11)

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
universal values of respect for, and promotion of, human
rights, fundamental freedoms, democratic principles 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
institu-
countries and the consolidation of multilateral
tions are important factors in making a significant contri-
bution 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.

(14)

Thematic programmes should support actions in the
areas of human and social development, environment
resources,
and sustainable management of natural
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.

first

indent,

(12) While thematic programmes should primarily support
developing countries, two beneficiary countries as well as
the overseas countries and territories (OCTs), whose char-
acteristics do not meet the requirements to be defined as
Official Development Assistance (ODA) recipients by the
Development Assistance Committee of the Organisation
for Economic Cooperation and Development
(OECD/
DAC) and which are covered by Article 2(4), second sub-
paragraph,
should also be eligible for
thematic programmes under the conditions set out in
this Regulation. The Community should finance thematic
programmes in countries, territories and regions eligible
for assistance under a geographic programme provided
for under this Regulation, for assistance under Regulation
(EC) No 1638/2006 or for geographic cooperation in
accordance with the European Development Fund (EDF).
Council Decision 2001/822/EC of 27 November 2001
on the association of the overseas countries and terri-
tories with the European Community (‘Overseas Associa-
Decision’) (2),
tion
until
31 December 2011,
lays down the conditions for the
eligibility of OCTs for the thematic activities of develop-
ment assistance funded by the general budget of
the
European Union, which are not altered by this Regu-
lation.

applicable

which

is

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

(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.

level,

strategies

Community policy on food security has evolved towards
supporting broad-based food security
at
national, regional and global
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 situa-
tion 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 coun-
tries.

(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 recognition
of, reproductive and sexual health and rights as defined
in the Programme of Action of the International Confer-
ence on Population and Development (ICPD), 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 imple-
mented, the decisions adopted at the ICPD must be rigor-
ously observed, where relevant.

parency and encouraging countries to take ownership,
donors' cooperation strategies and implementation proce-
dures 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 1717/2006 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 countries
affected by the reform of the Common Market Organisa-
tion 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
tailor-made
countries
programmes, based on their own needs, strategies, priori-
ties and assets.

regions with

specific,

or

(22)

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

to this end,

(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 allo-
cated 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
the Interinstitutional Agreement of 17 May 2006
of
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
adopted in accordance with
Regulation should be
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 proce-
dure.

(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)

this Regulation, namely the
Since the objectives of
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 1638/2006 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
Community may adopt measures, in accordance with the
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,

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 disad-
vantaged among them;

— encourage their smooth and gradual

integration into the

world economy;

HAVE ADOPTED THIS REGULATION:

Article 1

Overall purpose and scope

shall

The Community

finance measures

1.
aimed at
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
Annex I
referred to as ‘partner countries and
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.

(hereinafter

The Community shall

2.
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 1638/2006 or
for geographic cooperation under the European Development
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

— help develop international measures

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

development,

to preserve

addressing

including

— 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.

Community development policy, as laid down in Title XX
3.
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 Parlia-
ment and the Commission on European Union Development
Policy:
‘The European Consensus’, of 20 December 2005, and
any subsequent modifications thereto, shall provide the general
framework, orientations and focus to steer the implementation
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

1.
The primary and overarching objective of cooperation
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

— the programme implements a global initiative, a community
policy priority or an international obligation or commitment
of the Community, as referred to in Article 11(2), and the
measure does not have the characteristics to fulfil such
criteria.

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least 90 % of

the expenditure foreseen under

thematic
At
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 1717/2006 and
in particular Article 4 thereof, and eligible for funding there-
under 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.

4.
The Community shall take account of the objectives laid
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.

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, shall not be funded under this Regulation.

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.

Article 3

General principles

The Community is founded on the values of democracy,
1.
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
with specific,
tailor-made cooperation, based on their own
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.

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

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 multi-
lateral and regional organisations and bodies such as interna-
tional
and
programmes, and other bilateral donors.

institutions, UN agencies,

financial

funds

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

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

(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;

Consistently with the overall purpose and scope, objectives
2.
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 cooperation:

(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 development 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 guidelines and
best practice principles on coordination and aid effective-
ness;

(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.

(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
income population groups and marginalised
lower
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 Conference on
addressing
Population
poverty diseases,
in particular HIV/AIDS, tuberculosis
and malaria;

and Development

(ICPD),

TITLE II

GEOGRAPHIC AND THEMATIC PROGRAMMES

(ii) strengthening health systems

in order
human resource crises in the health sector;

to prevent

Article 4

(iii) enhancing capacities particularly in areas such as public

health and research and development;

Implementation of Community assistance

Education:

Consistently with the overall purpose and scope, objectives and
this Regulation, Community assistance
general principles of
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-
long learning, cultural,
scientific and technological
cooperation, academic and cultural exchanges as well as
enhancing mutual understanding between partner coun-
tries 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
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 education;

equality,
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

and
freedoms
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 reconciliation,
and institution-building;

(k) assisting partner countries and regions on trade, investment
and regional integration including technical assistance 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 countries 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-
nical assistance and capacity building,
in particular the
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
partner countries and regions,
including by actions to
promote and ensure that private actors, including local and
European businesses, contribute to socially responsible and
including respect for
sustainable economic development,
the core labour standards of the International Labour Orga-
nization (ILO) and by actions to promote local capacity
building;

Environment and sustainable development of natural resources:

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

(o) supporting improvements in the urban environment;

(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;

(p) promoting sustainable patterns of production and consump-
tion and the safe and sustainable management of chemicals
and waste, taking into account their impacts on health;

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

(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, inter-
law and multilateral agreements relevant to the
national
field of development;

(r) developing capacities

for

emergency preparedness and

prevention of natural disasters;

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Water and energy:

(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 infrastructure,
including support to regional
integration, and promoting
the increased use of information and communication tech-
nologies;

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
including support for mine-action,
and natural disasters,
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;

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

reintegration of

integration or

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. Addi-
tional attention shall be paid to the following areas of coopera-
tion, reflecting the specific situation in Latin America:

(a) promoting social cohesion as a shared goal and priority
policy of Community-Latin America
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;

relations

(b) encouraging greater

regional

integration,

including the
support to different processes of regional integration and to
the
interconnection of network infrastructures, while
ensuring complementarity with activities supported by Euro-
pean 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

(y) in fragile or failing States, supporting the delivery of basic
legitimate, effective and resilient

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

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,
and education, inter alia, through policy dialogue for 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
enhance the protection of human rights, including the 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.

(e) fighting against HIV/AIDS;

(f) promoting regional cooperation, dialogue and integration,
covered by Regulation (EC)
including with countries
No 1638/2006 and other Community instruments, in par-
ticular promoting cooperation in the environment —
notably water and sanitation —, education, energy and
transport sectors, including the security and safety of inter-
national energy supply and transport operations, on inter-
connections, the networks and their operators, renewable
energy sources, energy efficiency.

Article 9

Middle East

Article 8

Central Asia

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. Addi-
tional attention shall be paid to the following areas of coopera-
tion, reflecting the specific situation in Central Asia:

(a) promoting constitutional reforms and legislative, administra-
tive 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;

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

(d) fighting against production, consumption and trafficking of

drugs and against other trafficking;

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. Addi-
tional attention shall be paid to the following areas of coopera-
tion, reflecting the specific situation in the Middle East:

(a) encouraging social cohesion to ensure social 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;

(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 1638/2006 and other Community instruments via the
support to integration efforts within the region, for example
on the economy, energy, transportation and refugees;

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

(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

and/or

(b) actions are of the following nature:

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

— 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);

(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;

— 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;

(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;

— where appropriate, actions in cases where there is no

geographic programme or it has been suspended.

(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

1.
A thematic programme shall be subsidiary to programmes
referred to in Articles 5 to 10 and shall 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 interna-
tional operation that is not geographically specific.

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

(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
Article 24 as envisaged in the relevant thematic programme,

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

Article 12

Investing in people

1.
The objective of Community assistance under the 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 investment in research
and development for new treatments, new medi-
cines, particularly vaccines, microbicides and inno-
vative treatments;

— support

global

initiatives

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

targeting

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(ii) in line with the principles agreed at

and appropriate

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-
expertise with a view to
tance
promoting a holistic approach to, and the recognition
of, reproductive and sexual health and rights as defined
in the ICPD Programme of Action,
including safe
motherhood and universal access to a comprehensive
range of safe and reliable reproductive and sexual health
care and services, supplies, education and information,
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;

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

vulnerable

groups

social

to

— reducing maternal mortality and morbidity rates,
with particular reference to the countries and popu-
lations 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 initia-
tives;

— 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 development
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 socio-economic growth and sustainable devel-
opment in conjunction with the international dimen-
sion of EU research policy.

— fair mechanisms for financing equitable access to

(c) Gender equality:

health care.

(iv) keeping a balanced approach between prevention, treat-
ment 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 Education 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,
society organisations,
civil
women's organisations and networks, in their endea-
vours to promote gender equality and economic and
including north-south and
social
south-south networking and advocacy;

empowerment,

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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 stimulate
the contribution of cultural industries to economic
growth in developing countries to fully exploit its
potential for fighting poverty, including addressing
issues such as market access and intellectual prop-
erty rights;

— 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 indigenous
peoples and persons belonging to minorities;

— supporting culture as a promising economic sector

for development and growth.

(ii) Employment and social cohesion:

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

— enhancing developing countries' attention and capa-
city to develop policies benefiting youth and chil-
dren;

— advocacy for concrete strategies and interventions to
address particular problems and challenges affecting
youth and children taking their best interests into
account in all relevant action. Participation by chil-
dren 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 elimination of all
forms of child labour, combating trafficking of, and
violence against, children and promoting the role of
children and youth as actors for development.

of

including

promotion

— promotion of an integrated social and economic
approach
productive
employment, decent work for all, social cohesion,
development of human resources, equity, social
and
security and mapping employment
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;

issues

Article 13

Environment

and sustainable management of natural

resources including energy

— promotion of the ‘decent work for all’ agenda as a
including through global and
universal objective,
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, effective
functioning — and wider coverage — of social
protection systems;

The objective of the thematic programme on environment
1.
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:

tanks, and improving the efficiency of international negotia-
tions;

(a) working upstream in assisting developing countries

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

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

illegal

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;

(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 par-
ticular encouragement
renewable energy
sources, increased energy efficiency, and the development of
appropriate energy regulatory frameworks in the countries
and regions concerned and the replacement of especially
damaging energy sources by others which are less so.

to the use of

Article 14

Non-State actors and local authorities in development

1.
The objective of the thematic programme on non-State
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
least 85 % of
the funding foreseen under
programme
actors. The
programme shall be implemented in consistency with the objec-
tive of this Regulation and to strengthen the capacity of non-
State actors and local authorities in the policy making process,
so as to:

allocated to non-State

shall be

this

(c) better

integration of environmental objectives
through
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 environmental agreements including through
supporting international organisations
capacity building,
and processes, supporting civil society and policy think

environmental

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

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

and resources
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 development
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
issues and mobilise active public
regarding development
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

Article 15

Food security

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;

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

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 globa-
lisation;

(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.

Support

3.
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-
including formulation of regional agricultural
trade and
to land, agricultural

culture,
policies and access
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 harmo-
nisation, coherence and alignment of policies and aid
delivery modes of development partners and donors. In par-
ticular, 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 transi-
tion and State fragility, playing a central role in linking
relief,
thematic
programme shall:

development. The

rehabilitation and

(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 replica-
tion and South-South dissemination. Areas for intervention
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 devel-
opment, including infrastructure, nutrition, demography and
labour, migration, health and education. Consistency and
complementarity with other Community programmes in
these areas shall be ensured.

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 management
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 legislative
frameworks for migrant workers in third countries;

(c) fighting illegal immigration and facilitating the readmission
of illegal immigrants, including between third countries, and
in particular, fighting the smuggling of and trafficking in
human beings; discouraging illegal immigration and raising
awareness of the risks related to it; improving capacities 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 management
of illegal immigration and in the coordination of their poli-
cies;

(d) protecting migrants, including the most vulnerable such as
women and children against exploitation and exclusion
through measures such as developing third countries' legisla-
tion 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 management;
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;

(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.

instructions regarding the allocation of

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

ard, 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.

The needs criteria include population, income per capita and the
extent of poverty,
income distribution and the level of social
include political,
development. The performance
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.

criteria

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

TITLE III

Geographic strategy papers and multiannual

indicative

programmes

PROGRAMMING AND ALLOCATION OF FUNDS

Article 18

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

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
in
or multiannual
Article 23.

indicative programmes, as provided for

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

2.
Strategy papers shall cover no more than the period of
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 neces-
sary, 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.

Multiannual
indicative programmes shall set out the priority
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 alloca-
tion, 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.

In circumstances such as crises, post conflict situations or
5.
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 coopera-
tion strategy. Such reviews may propose a country or region
strategy to make the transition to long-term cooperation and
development.

In accordance with Article 2(6), the strategy shall ensure
6.
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 1717/2006 and Regulation (EC) No 1257/96. Where
partner countries or groups of partner countries are directly
involved in, or affected by, a crisis or post-crisis situation, multi-
annual indicative programmes shall place special emphasis on
stepping up coordination between relief,
rehabilitation and
development to help them make the transition from an emer-
gency situation to the development phase; programmes for
countries and regions regularly subject to natural disasters shall
provide for disaster preparedness and prevention and the
management of the 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 prescriptions 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 finan-
cial 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 neces-
sary.

The Commission and the Member States shall consult
2.
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

Strategy papers and multiannual 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 accompanying
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 and multiannual 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.

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

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

Appropriate environmental screening shall be undertaken
4.
at project level including environmental impact assessment (EIA)
in particular for major
for environmentally sensitive projects,
new infrastructure. Where relevant,
strategic environmental
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.

Article 23

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

In the event of unforeseen and duly justified needs or
1.
circumstances related to natural disasters, civil strife or crises,
and which cannot be funded under Regulation (EC) No 1717/
2006 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’).

including those to better prepare people to deal with

tions,
recurring crises.

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
the management
procedure referred to in Article 35(2). For special measures
below EUR 10 million, the Commission shall send the measures
to the Member States and the European Parliament for informa-
tion within one month of adopting its decision.

them under

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 period,
reassigning funds within the forecast budget, or 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 tech-
nical adjustments shall be communicated within one month to
the European Parliament and to the Member States.

Article 24

Eligibility

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;

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

cipalities, provinces, departments and regions;

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

with the Community;

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

(e) Community institutions and bodies, but only for

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

Special measures may also be used to fund measures to ease the
transition from emergency aid to long-term development opera-

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

develop parliamentary control and audit capacities 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.

local

The non-State, non-profit making actors eligible for finan-
2.
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,
traders'
associations and citizens' groups, cooperatives, trade unions,
organisations representing economic and social interests, organi-
sations fighting corruption and fraud and promoting good
organisations
governance,
combating
(including
involved in decentralised regional cooperation and
networks)
integration, consumer organisations, women's and youth organi-
sations, teaching, cultural, research and scientific organisations,
universities, churches and religious associations and commu-
nities, the media and any non governmental associations and
independent foundations, including independent political foun-
dations, likely to contribute to the implementation of the objec-
tives of this Regulation.

civil
discrimination,

organisations

organisations

rights

local

and

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 formulated
sectoral or macroeconomic policies positively assessed by
its principal donors; including, where relevant, the interna-
tional financial institutions. The Commission shall consis-
tently use an approach based on results and performance
indicators and shall clearly define and monitor its condi-
to
tionality and support efforts of partner countries

(ii) sectoral

import

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

providing

(iii) general

import

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

providing

(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 in and development of the private sector), risk capital
(in the form of subordinated or conditional loans) or other
in business capital, and
temporary minority holdings
contributions
in accordance with
Article 32, to the extent that the financial risk of the Com-
munity is limited to these funds;

to guarantee 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
the joint implementation of
donors for the purpose 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

Community financing may cover expenditure associated
1.
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
It shall also cover expenditure at
Commission delegations on the administrative support needed
to manage operations financed under this Regulation.

the programme.

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

Article 27

Co-financing

1. Measures
following, inter alia:

shall be eligible for co-financing from the

(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,

2.
the project or
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.

3.
In the case of decentralised management, the Commission
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 organisations,
and in particular international and regional financial institu-
tions;

(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-
if necessary, to take legal action to
ties and fraud, and,
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 Articles 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-
interests (1), Council Regulation (Euratom, EC)
nities' financial
No 2185/96 of 11 November 1996 concerning on-the-spot
checks and inspections carried out by the Commission in order
to protect the European Communities' financial interests against
fraud and 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).

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
programme set out in Article 17. The Commission shall 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.

2.
Participation in the award of procurement or grant
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 para-
graph 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.

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 cate-
gories of eligible organisations by nature or by localisation in
regard to the objectives of the action to carry out.

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

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

requirements

set out

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.

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.

The Commission may,

in duly substantiated exceptional
8.
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.

concerned, for reasons of extreme urgency, or if the eligibility
rules would make the realisation of a project, a programme or
an action impossible or exceedingly difficult.

9. Whenever Community funding covers an operation imple-
mented through an international organisation, participation in
the appropriate contractual procedures shall be open to all
natural or legal persons who are eligible pursuant to paragraph 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.

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.

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

the

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

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.

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, elimi-
nation of discrimination in respect of employment and occupa-
tion, and the abolition of child labour.

Derogations may be justified on the basis of the unavailability
the countries
of products and services in the markets of

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 moni-
toring and evaluation exercises, the involvement of the relevant
partners, and the implementation of budget commitments and
payments, broken down by country, region and cooperation
sector. It shall assess the results of the assistance, using as far as
its role in
possible, specific and measurable indicators of
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

Article 35

Committee

The Commission shall regularly monitor and review its
1.
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.

The Commission shall send its evaluation reports to the
2.
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.

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

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

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

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 1638/2006 and the EDF are eligible for measures under this
Regulation 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 finan-
indicative
cing in the
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.

and multiannual

strategy papers

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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 princi-
ples 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

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

authorised by

shall be

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

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 Parliament
the Council of 14 December 2005 on access

and of
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
countries
asylum
(AENEAS) (3);

of migration and

in the

areas

(d) Regulation (EC) No 1568/2003 of the European Parliament
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 Parliament
and of the Council of 15 July 2003 on aid for policies and
actions on reproductive and sexual health and rights in
developing countries (5);

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

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

(h) Regulation (EC) No 2493/2000 of the European Parliament
and of the Council of 7 November 2000 on measures to
promote the full integration of the environmental dimen-
sion in the development process of developing coun-
tries (8);

(i) Regulation (EC) No 1726/2000 of the European Parliament
and of the Council of 29 June 2000 on development coop-
eration 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 Regulation
(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,

Not
the Commission shall
submit to the European Parliament and the Council a report
evaluating the implementation of this Regulation in the first
three years with,
intro-
ducing the necessary modifications,
including the indicative
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, 18 December 2006

For the European Parliament

The President

J. BORRELL FONTELLES

For the Council

The President

J.-E. ENESTAM

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

(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