Regulation (EC) No 1889/2006 of the European Parliament and of the Council of 20 December 2006 on establishing a financing instrument for the promotion of democracy and human rights worldwide
Date: 2006-12-20
Institutions: Council of the European Union, European Parliament
Subjects: EU aid, EU financial instrument, cooperation policy, democratisation, human rights

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I

(Acts whose publication is obligatory)

REGULATION (EC) No 1889/2006 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

of 20 December 2006

on establishing a financing instrument for the promotion of democracy and human rights worldwide

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

(2)

Having regard to the Treaty establishing the European Commu-
nity, and in particular Articles 179(1) and 181a(2) thereof,

Having regard to the proposal from the Commission,

(3)

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

Whereas:

(1)

A new framework for planning and delivering assistance is
proposed in order to make the Community’s external assis-
tance more effective and transparent. Council Regula-
tion (EC) No 1085/2006 (2) establishes an Instrument for
Pre-Accession Assistance (IPA) for Community assistance
to candidate and potential candidate countries. Regulation
(EC) No 1638/2006 (3) etablishes a European Neighbour-
hood and Partnership Instrument (ENPI) providing direct
support for the EU’s European Neighbourhood Policy.
Regulation (EC) No 1889/2006 of the European Parliament
and of the Council of 20 December 2006 (4) establishes a
financing instrument for Development Cooperation (DCI).
Council Regulation (EC) No 1889/2006 (4) establishes a
financing instrument for cooperation with industrialised
and other high-income countries and territories (ICI). Regu-
lation (EC) No 1717/2006 (5) establishes a financing Instru-
ment for Stability (IfS) providing assistance in situations of
crisis and emerging crisis, and specific global and transre-
gional
threats. This Regulation establishes a financing
instrument for the promotion of democracy and human
rights worldwide (European Instrument for Democracy and
Human Rights) allowing for assistance independent from
the consent of third country governments and other public
authorities.

Article 6(1) of the Treaty on European Union stipulates
that the Union is founded on the principles of liberty,
democracy, respect for human rights and fundamental
freedoms, and the rule of law, principles which are com-
mon to the Member States.

The promotion, development and consolidation of democ-
racy and the rule of law, and of respect for human rights
and fundamental freedoms constitute a prime objective of
the Community’s development policy and economic,
financial and technical cooperation with third coun-
tries (6). A commitment to respect, promote and protect
democratic principles and human rights is an essential ele-
ment of the Community’s contractual relations with third
countries (7).

(4)

(5)

This financing instrument contributes to the achievement
of the objectives of the development policy statement on
the ‘European Consensus on Development’ (DPS) jointly
adopted by the Council and the Representatives of the
Governments of the Member States meeting within the
Council, the European Parliament and the Commission on
20 December 2005 (8). The DPS underlines that ‘progress
in the protection of human rights, good governance and
democratisation is fundamental for poverty reduction and
sustainable development’, thereby contributing to the
the Millennium Development Goals
achievement of
(MDGs).

The DPS having reaffirmed that the promotion of gender
equality and women’s rights is a fundamental human right
and a question of social justice, as well as being instru-
mental in achieving all the MDGs, the Cairo Programme
of Action and the Convention on the Elimination of All
Forms of Discrimination Against Women, this Regulation
includes a strong gender component.

(1) Opinion of the European Parliament of 12 December 2006 (not yet
published in the Official Journal) and Council Decision of 20 Decem-
ber 2006.

(2) OJ L 210, 31.7.2006, p. 82.
(3) OJ L 310, 9.11.2006, p. 1.
(4) OJ L 386, 29.12.2006, p. 1
(5) OJ L 327, 24.11.2006, p. 1.

(6) Commission Communication of 8 May 2001 on the European
Union’s role in promoting human rights and democratisation in third
countries.

(7) Commission Communication of 23 May 1995 on the Inclusion of
Respect for Democratic Principles and Human Rights in Agreements
between the Community and Third Countries.

(8) OJ C 46, 24.2.2006, p. 1.

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(6)

(7)

(8)

(9)

This financing instrument contributes to achieving the
objective of the Union’s Common Foreign and Security
Policy, as set out in Article 11(1) of the Treaty on Euro-
pean Union and shaped by EU Guidelines, regarding the
development and consolidation of democracy and the rule
of law, and respect for human rights and fundamental
freedoms.

The Community’s contribution to the development and
consolidation of democracy and the rule of law, and of
respect for human rights and fundamental freedoms is
rooted in the general principles established by the Interna-
tional Bill of Human Rights, and any other human rights
instrument adopted within the framework of the United
Nations, as well as
regional human rights
relevant
instruments.

Democracy and human rights are inextricably linked. The
fundamental freedoms of expression and association are
the preconditions for political pluralism and democratic
process, whereas democratic control and separation of
powers are essential to sustain an independent judiciary
and the rule of law which in turn are required for effec-
tive protection of human rights.

Human rights are considered in the light of universally
accepted international norms, but democracy has also to
be seen as a process, developing from within, involving
all sections of society and a range of institutions, in par-
ticular national democratic parliaments, that should ensure
participation, representation, responsiveness and account-
ability. The task of building and sustaining a culture of
human rights and making democracy work for citizens,
though especially urgent and difficult in emerging democ-
racies, is essentially a continuous challenge, belonging first
and foremost to the people of the country concerned but
without diminishing the commitment of the international
community.

(10)

In order to address the above issues in an effective, trans-
parent, timely and flexible manner beyond the expiry of
Council Regulation (EC) No 975/1999 of 29 April 1999
laying down the requirements for the implementation of
development cooperation operations which contribute to
the general objective of developing and consolidating
democracy and the rule of law and to that of respecting
human rights and fundamental freedoms (1) and Council
Regulation (EC) No 976/1999 of 29 April 1999 laying

down the requirements for the implementation of Commu-
nity operations, other than those of development coopera-
tion, which, within the
framework of Community
cooperation policy, contribute to the general objective of
developing and consolidating democracy and the rule of
law and to that of respecting human rights and fundamen-
tal freedoms in third countries (2), which served as the legal
base for the European Initiative for Democracy and Human
Rights and which expire by 31 December 2006, there is a
need for specific financial resources and a specific financ-
ing instrument that can continue to work in an indepen-
dent manner whilst remaining complementary to and
reinforcing related Community instruments for external
assistance, the Partnership Agreement between the Mem-
bers of the African, Caribbean and Pacific Group of States,
of the one part, and the European Community and its Mem-
ber States, of the other part (3), and humanitarian aid.

(11)

Community assistance under this Regulation is designed
to complement the various other tools for implementa-
tion of EU policies on democracy and human rights, which
range from political dialogue and diplomatic demarches
to various instruments of financial and technical coopera-
tion,
including both geographic and thematic pro-
grammes. It will also complement the more crisis-related
interventions of the Instrument for Stability.

(12)

the Instrument

In particular, in addition and complementary to the mea-
sures agreed with partner countries in the context of the
for Pre-
cooperation pursued under
accession Assistance, the European Neighbourhood and
Partnership Instrument, the Development Cooperation
Instrument, the Cotonou Agreement with ACP countries,
the Instrument for Cooperation with Industrialised Coun-
tries and other high-income countries and territories and
the Instrument for Stability, the Community provides
assistance under this Regulation that addresses global,
regional, national and local human rights and democrati-
sation issues in partnership with civil society understood
to span all types of social action by individuals or groups
that are independent from the state and active in the field
of human rights and democracy promotion.

(1) OJ L 120, 8.5.1999, p. 1. Regulation as last amended by Regulation
(EC) No 2110/2005 of the European Parliament and of the Council
(OJ L 344, 27.12.2005, p. 1).

(2) OJ L 120, 8.5.1999, p. 8. Regulation as last amended by Regulation

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

(3) OJ L 317, 15.12.2000, p. 3; OJ L 385, 29.12.2004, p. 88.

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(18)

(19)

(20)

(21)

(13)

Furthermore, whilst democracy and human rights objectives
must be increasingly mainstreamed in all external assistance
financing instruments, Community assistance under this
Regulation will have a specific complementary and addi-
tional role by virtue of its global nature and its indepen-
third country
dence of action from the consent of
governments and other public authorities. This makes pos-
sible cooperation with civil society on sensitive human
rights and democracy issues, including migrants’ enjoyment
of human rights, rights of asylum seekers and internally dis-
placed persons, providing the flexibility to respond to
changing circumstances or to support innovation. It also
provides a Community capacity to articulate and support
specific objectives and measures at international level which
are neither geographically linked nor crisis related and
which may require a transnational approach or involve
operations both within the Community and in a range of
third countries. It provides the necessary framework for
operations, such as support to independent EU election
observation missions requiring policy coherence, a unified
management system and common operating standards.

(14) Developing and consolidating democracy under this Regu-
lation should include democratic parliaments and their
capacity to support and advance democratic reform pro-
cesses. National parliaments need therefore to be included
as eligible bodies for funding under this Regulation when
this is necessary in order to achieve its objectives, unless
the proposed measure can be financed under a related
Community external assistance instrument.

(15)

The ‘Guidelines for strengthening operational coordination
between the Community, represented by the Commission,
and the Member States in the field of external assistance’ of
21 January 2001 emphasise the need for enhanced coordi-
nation of EU external assistance in the fields of supporting
democratisation and promoting respect for human rights
and fundamental freedoms worldwide. The Commission
and Member States should ensure that their respective assis-
tance measures are complementary and coherent, avoiding
overlapping and duplication. The Commission and Mem-
ber States should seek closer coordination with other
donors. Community policy in the sphere of development
cooperation should be complementary to the policies pur-
sued by the Member States.

(16)

The relevance and scope of Community assistance in pro-
moting democracy and human rights calls for the Com-
mission to seek regular and frequent exchanges of
information with the European Parliament.

(22)

The Community needs to be able to respond rapidly to
unforeseen needs and in exceptional circumstances in
order to enhance the credibility and effectiveness of its
commitment to the promotion of democracy and human
rights in countries where such situations arise. This
requires that the Commission have the possibility to
decide on Special Measures not covered by Strategy Papers.
This assistance management instrument corresponds to
those included in the other external assistance financing
instruments.

The Community should also be able to respond in a flex-
ible and timely manner to the specific needs of human
rights defenders by means of ad hoc measures which are
not subject to calls for proposals. Moreover, eligibility of
entities which do not have legal personality under the
applicable national law is also possible under the condi-
tions of the Financial Regulation.

This Regulation establishes a financial envelope for the
period 2007-2013 which constitutes the prime reference
amount for the budgetary authority according to point 37
of the Interinstitutional Agreement of 17 May 2006
between the European Parliament, the Council and the
Commission on budgetary discipline and sound financial
management (1).

Financial support needs to be secured for the European
Inter-University Centre for Human Rights and Democrati-
sation, providing a European Masters Degree in Human
Rights and Democratisation and an EU-UN Fellowship
Programme, beyond the expiry by the end of 2006 of
Decision No 791/2004/EC of the European Parliament
and of the Council of 21 April 2004 establishing a Com-
munity action programme to promote bodies active at
European level and support specific activities in the field
of education and training (2), which served as the legal
basis for funding.

European Union Election Observation Missions contrib-
ute significantly and successfully to democratic processes
in third countries (3). However, the promotion of democ-
racy extends far beyond the electoral process alone. Expen-
diture for EU Election Observation Missions should
therefore not take up a disproportionate amount of the
total funding available under this Regulation.

(17)

The Commission needs to consult representatives of civil
society, as well as other donors and actors, as early as
appropriate in the programming process in order to facili-
tate their respective contributions and to ensure that assis-
tance activities are as complementary to each other as
possible.

(1) OJ C 139, 14.6.2006, p. 1.
(2) OJ L 138, 30.4.2004, p. 31.
(3) Commission Communication of 11 April 2000 on EU Election Assis-

tance and Observation.

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The measures necessary for the implementation of this
Regulation should be adopted in accordance with Council
Decision 1999/468/EC of 28 June 1999 laying down the
procedures for the exercise of implementing powers con-
ferred on the Commission (1).

(c) building confidence in and enhancing the reliability of elec-
toral processes, in particular through election observation
missions, and through support for local civil society organi-
sations involved in these processes.

(23)

(24)

In accordance with the principle of proportionality, it is
necessary and appropriate for the achievement of the basic
objectives of this Regulation to lay down rules on a Euro-
pean Instrument for Democracy and Human Rights. This
Regulation does not go beyond what is necessary in order
to achieve the objective pursued, in accordance with the
third paragraph of Article 5 of the Treaty,

HAVE ADOPTED THIS REGULATION:

TITLE I

OBJECTIVES AND SCOPE

Article 1

Objectives

1.
This Regulation establishes a European Instrument for
Democracy and Human Rights under which the Community shall
provide assistance, within the framework of the Community’s
policy on development cooperation, and economic, financial and
technical cooperation with third countries, consistent with the
European Union’s foreign policy as a whole, contributing to the
development and consolidation of democracy and the rule of
law, and of respect for all human rights and fundamental
freedoms.

2.

Such assistance shall aim in particular at

(a)

enhancing the respect for and observance of human rights
and fundamental freedoms, as proclaimed in the Universal
Declaration of Human Rights and other international and
regional human rights instruments, and promoting and con-
solidating democracy and democratic reform in third coun-
tries, mainly through support for civil society organisations,
providing support and solidarity to human rights defenders
and victims of repression and abuse, and strengthening civil
society active in the field of human rights and democracy
promotion;

(b)

supporting and strengthening the international and regional
framework for the protection, promotion and monitoring of
human rights, the promotion of democracy and the rule of
law, and reinforcing an active role for civil society within
these frameworks;

(1) OJ L 184, 17.7.1999, p. 23. Decision as amended by Decision

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

Article 2

Scope

Having regard to Articles 1 and 3, Community assistance

1.
shall relate to the following fields:

(a) promotion and enhancement of participatory and represen-
tative democracy, including parliamentary democracy, and
the processes of democratisation, mainly through civil soci-
ety organisations, inter alia in:

i)

promoting freedom of association and assembly, unhin-
dered movement of persons, freedom of opinion and
expression, including artistic and cultural expression,
independent media, unimpeded access to information,
and measures to combat administrative obstacles to the
exercise of these freedoms, including the fight against
censorship;

ii)

strengthening the rule of law, promoting the indepen-
dence of the judiciary, encouraging and evaluating legal
and institutional reforms, and promoting access to
justice;

iii) promoting and strengthening the International Crimi-
nal Court, ad hoc international criminal tribunals and
the processes of transitional justice and truth and rec-
onciliation mechanisms;

iv)

v)

supporting reforms to achieve effective and transparent
democratic accountability and oversight, including that of
the security and justice sectors, and encouraging measures
against corruption;

promoting political pluralism and democratic political
representation, and encouraging political participation
by citizens, in particular marginalised groups, in demo-
cratic reform processes at local, regional and national
level;

vi) promoting the equal participation of men and women
in social, economic and political life, and supporting
equality of opportunity, and the participation and politi-
cal representation of women;

vii) supporting measures to facilitate the peaceful concilia-
tion of
for
confidence-building measures relating to human rights
and democratisation.

group interests,

including

support

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(b)

the promotion and protection of human rights and funda-
mental freedoms, as proclaimed in the Universal Declara-
tion of Human rights and other international and regional
instruments concerning civil, political, economic, social and
cultural rights, mainly through civil society organisations,
relating to inter alia:

i)

ii)

iii)

the abolition of the death penalty, prevention of tor-
ture, ill-treatment and other cruel, inhuman and degrad-
ing treatment or punishment, and the rehabilitation of
victims of torture;

support for, protection of, and assistance to human
rights defenders, in terms of Article 1 of the UN Decla-
ration on the Right and Responsibility of Individuals,
Groups and Organs of Society to Promote and Protect
Universally Recognized Human Rights and Fundamental
Freedoms;

the fight against racism and xenophobia, and discrimi-
nation based on any ground including sex, race, colour,
ethnic or social origin, genetic features, language, reli-
gion or belief, political or any other opinion, member-
ship of a national minority, property, birth, disability,
age or sexual orientation;

(c)

the strengthening of the international framework for the pro-
tection of human rights, justice, the rule of law and the pro-
motion of democracy, in particular by

i)

ii)

providing support for international and regional instru-
ments concerning human rights, justice, the rule of law
and democracy;

fostering cooperation of civil society with international
and regional intergovernmental organisations, and sup-
porting civil society activities aimed at promoting and
monitoring the implementation of
international and
regional instruments concerning human rights, justice,
the rule of law and democracy;

iii) promoting observance of international humanitarian

law;

(d) building confidence in and enhancing the reliability and
transparency of democratic electoral processes, in particular

iv)

the rights of indigenous peoples and the rights of per-
sons belonging to minorities and ethnic groups;

i)

through deployment of European Union Election Obser-
vation Missions;

v)

vi)

the rights of women as proclaimed in the Convention
on the Elimination of All Forms of Discrimination
against Women and its Optional Protocols, including
measures to combat female genital mutilation, forced
marriages, crimes of honour, trafficking, and any other
form of violence against women;

the rights of the child, as proclaimed in the Conven-
tion on the Rights of the Child and its Optional Proto-
cols,
including the fight against child labour, child
trafficking and child prostitution, and the recruitment
and use of child soldiers;

vii)

the rights of persons with disabilities;

viii) the promotion of core labour standards and corporate

social responsibility;

education, training and monitoring in the area of
human rights and democracy, and in the area covered
by paragraph 1(a)(vii);

ix)

x)

ii)

through other measures of monitoring electoral
processes;

iii) by contributing to developing electoral observation
capacity of civil society organisations at regional and
local level, and supporting their initiatives to enhance
participation in, and the follow-up to, the electoral
process

iv) by supporting measures aimed at implementing recom-
mendations of European Union Election Observation
Missions,
society
in
organisations.

particular

through

civil

2.
The promotion and protection of gender equality, the rights
of the child, rights of indigenous peoples, rights of persons with
disabilities, and principles such as empowerment, participation,
non-discrimination of vulnerable groups and accountability shall
be taken into account whenever relevant by all assistance mea-
sures referred to in this Regulation.

support for local, regional, national or international civil
society organisations involved in the protection, pro-
motion or defence of human rights and in measures
referred to in paragraph 1(a)(vii);

3.
The assistance measures referred to in this Regulation shall
be implemented in the territory of third countries or shall be
directly related to situations arising in third countries, or shall be
directly related to global or regional actions.

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Article 3

Complementarity and Coherence of Community
Assistance

Article 5

Strategy Papers and Revisions

1.
Community assistance under this Regulation shall be con-
sistent with the framework of the Community’s policy on devel-
opment cooperation and with the European Union’s foreign
policy as a whole, and complementary to that provided for under
related Community instruments for external assistance and the
Partnership Agreement between the Members of the African, Car-
ibbean and Pacific Group of States, of the one part, and the Euro-
pean Community and its Member States, on the other part.
Complementary Community assistance under this Regulation
shall be provided to reinforce action under the related external
assistance instruments.

Strategy Papers shall set out the Community’s strategy for
1.
Community assistance under this Regulation, the Community’s
priorities, the international situation and the activities of the main
partners. They shall be consistent with the overall purpose, objec-
tives, scope, and principles of this Regulation.

2.
Strategy Papers shall set out the priority areas selected for
financing by the Community, the specific objectives, the expected
results and the performance indicators. They shall also give the
indicative financial allocation, both overall and per priority area;
this may be given in the form of a range, where appropriate.

The Commission shall ensure that measures adopted under
2.
this Regulation are consistent with the Community’s overall stra-
tegic policy framework and in particular with the objectives of
the above instruments, as well as with other relevant Commu-
nity measures.

Strategy Papers, and any revisions or extensions thereof,
3.
shall be adopted in accordance with the procedure laid down in
Article 17(2). They shall cover no more than the period of valid-
ity of this Regulation. Strategy Papers shall be reviewed at mid-
term, or ad hoc if necessary.

3.
In order to enhance the effectiveness and consistency of
Community and Member States assistance measures, the Com-
mission shall ensure close coordination between its own activi-
ties and those of the Member States, both at decision-making
level and on the ground. Coordination shall involve regular con-
sultations and frequent exchanges of relevant
information,
including with other donors, during the different phases of the
assistance cycle, in particular at field level.

The Commission shall inform and have regular exchanges

4.
of views with the European Parliament.

5.
The Commission shall seek regular exchanges of informa-
tion with civil society, at all levels, including in third countries.

TITLE II

IMPLEMENTATION

Article 4

General framework for implementation

Community assistance under this Regulation shall be imple-
mented through the following measures:

a)

Strategy Papers and revisions thereof as appropriate;

b) Annual Action Programmes;

c)

Special Measures;

d) Ad hoc Measures.

4.
The Commission and Member States shall exchange infor-
mation and consult each other, as well as other donors and actors
including representatives of civil society, at an early stage of the
programming process in order to promote complementarity
among their cooperation activities.

Article 6

Annual Action Programmes

Notwithstanding Article 7, the Commission shall adopt
1.
Annual Action Programmes based on the Strategy Papers and
Revisions referred to in Article 5.

Annual Action Programmes shall specify the objectives pur-
2.
sued, the fields of intervention, the expected results, the manage-
ment procedures and the total amount of financing planned.
They shall take into account lessons learned from past imple-
mentation of Community assistance. They shall contain a descrip-
tion of the operations to be financed, an indication of the
amounts allocated for each operation and an indicative imple-
mentation timetable. Objectives shall be measurable and have
time-bound benchmarks.

3.
Annual Action Programmes, and any revisions or exten-
sions thereof, shall be adopted in accordance with the procedure
laid down in Article 17(2). In cases where amendments to Annual
Action Programmes do not exceed 20 % of the global amount
allocated to them, such amendments shall be adopted by the
Commission.
inform the Committee referred to in
It shall
Article 17(1) thereof.

4.
In case an Annual Action Programme has not yet been
adopted, the Commission may exceptionally, on the basis of the
Strategy Papers referred to in Article 5, adopt measures not pro-
vided for in an Annual Action Programme under the same rules
and procedures as for Annual Action Programmes.

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Article 7

Special Measures

Article 9

Ad hoc Measures

1.
Notwithstanding Article 5, in the event of unforeseen and
duly justified needs or exceptional circumstances, the Commis-
sion may adopt Special Measures not covered in the Strategy
Papers.

2.
Special Measures shall specify the objectives pursued, the
areas of activity, 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 time-
table for their implementation. They shall include a definition of
the type of performance indicators that will have to be moni-
tored when implementing the special measures.

3. Where the cost of such measures is equal to or exceeds
EUR 3 000 000, the Commission shall adopt them in accordance
with the procedure laid down in Article 17(2).

4.
For Special Measures costing below EUR 3 000 000, the
Commission shall send the measures to the European Parliament
and the Member States for information within 10 working days
of adopting its decision.

Article 8

Support measures

Community financing under this Regulation may cover
1.
expenditure associated with the preparation, follow-up, monitor-
ing, audit and evaluation activities directly necessary for the
implementation of this Regulation and the achievement of its
objectives, such as studies, meetings, information, awareness-
raising, training and publication activities, including training and
educational measures for partners from civil society, expendi-
ture associated with computer networks for the exchange of
information, and any other administrative or technical assistance
expenditure necessary for the management of the programme. It
may also cover expenditure, where appropriate, for actions to
highlight the Community character of the assistance measures,
and for activities to explain the objectives and results of assis-
tance measures to the general public in the countries concerned.

Notwithstanding Article 5, the Commission may allocate
1.
small grants on an ad hoc basis to human rights defenders
responding to urgent protection needs.

The Commission shall regularly inform the European Par-
2.
liament and the Member States of the ad hoc measures carried
out.

Article 10

Eligibility

1. Without prejudice to Article 14, the following bodies and
actors operating on an independent and accountable basis shall
be eligible for funding under this Regulation for the purposes of
implementing the assistance measures referred to in Articles 6, 7
and 9:

a)

civil society organisations, including non-governmental non-
profit organisations and independent political foundations,
community based organisations, and private sector non-
profit agencies, institutions and organisations, and networks
thereof at local, national, regional and international level;

b) public sector non-profit agencies, institutions and organisa-
tions and networks at local, national, regional, and interna-
tional level;

c)

national, regional and international parliamentary bodies,
when this is necessary to achieve the objectives of this instru-
ment and unless the proposed measure can be financed
under a related Community external assistance instrument;

d)

international and regional inter-governmental organisations;

e)

natural persons when this is necessary to achieve the objec-
tives of this Regulation.

2.
Other bodies or actors not listed in paragraph 1 can be
financed, exceptionally and in duly justified cases, provided this
is necessary to achieve the objectives of this Regulation.

Article 11

Management Procedures

2.
Community financing shall also cover expenditure at Com-
mission delegations on the administrative support needed to
manage operations financed under this Regulation.

3.
The Commission shall adopt Support Measures not cov-
ered by Strategy Papers as referred to in Article 5 in accordance
with Article 7(3) and (4).

1.
The assistance measures financed under this Regulation
shall be implemented in accordance with Council Regulation (EC,
Euratom) No 1605/2002 of 25 June 2002 on the Financial Regu-
lation applicable to the general budget of the European Commu-
nities (1) and any revision thereof on a centralised basis or by
joint management with international organisations in accordance
with Article 53(1) of that Regulation.

(1) OJ L 248, 16.9.2002, p. 1.

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

f)

contributions to international funds, such as those managed
by international or regional organisations;

g)

human and material resources for effective implementation
of European Union Election Observation Missions;

Article 12

Budget commitments

1.
Budget commitments shall be made on the basis of deci-
sions taken by the Commission in accordance with Articles 6, 7,
8 and 9.

Community financing may take one of the following legal

2.
forms, inter alia:

a)

b)

agreements,

grant
agreements;

grant

decisions

or

contribution

agreements pursuant to Article 54 of Regulation (EC, Eura-
tom) No 1605/2002;

c)

procurement contracts;

d)

employment contracts.

Article 13

Types of financing

1.

Community financing may take the following forms:

a)

projects and programmes;

b)

c)

d)

e)

grants to finance projects submitted by international and
regional inter-governmental organisations as referred to in
Article 10(1)(d);

small grants to human rights defenders as referred to in
Article 2(1)(b)(ii) to finance urgent protection measures
under Article 9(1);

grants to support operating costs of the Office of the UN
High Commissioner for Human Rights;

grants to support operating costs of the European Inter-
University Centre for Human Rights and Democratisation
(EIUC), in particular for the European Master’s Degree Pro-
gramme in Human Rights and Democratisation and the
EU-UN Fellowship Programme, fully accessible to nationals
of third countries, as well as other education, training and
and
research
democratisation;

promoting

activities

human

rights

h) public contracts as defined in Article 88 of Regulation (EC,

Euratom) No 1605/2002.

2. Measures financed under this Regulation are eligible for
cofinancing from the following, in particular from:

a) Member States and their local authorities, and in particular

their public and parastatal agencies;

b) other donor countries, and in particular their public and par-

astatal agencies;

c)

international and regional inter-governmental organisations;

d)

companies, firms, other private organisations and business,
trade unions, trade union federations, and other non-state
actors.

In the case of parallel co-financing, the project or pro-
3.
gramme is to be split into a number of clearly identifiable com-
ponents, which are each financed by 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 the project or programme is to be shared between the
partners providing the co-financing and resources are pooled in
such a way that it is not possible to identify the source of fund-
ing for any given activity undertaken as part of the project or
programme.

4.
In the case of joint co-financing, the Commission may
receive and manage funds on behalf of the bodies referred to in
paragraph 2 (a), (b), and (c), for the purpose of implementing
joint measures. Such funds shall be dealt with as assigned rev-
enue in accordance with Article 18 of Regulation (EC, Euratom)
No 1605/2002.

5.
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 bodies referred to in
Article 54(2)(c) of Regulation (EC) No 1605/2002.

Community assistance shall not be used for paying taxes,

6.
duties or charges in beneficiary countries.

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Article 14

Rules of participation and rules of origin

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

Participation in the award of procurement or grant contracts
financed under this Regulation shall be open to all natural per-
sons who are nationals of or legal persons who are established
in a developing country, as specified by the Development Assis-
tance Committee of the Organization for Economic Coopera-
tion and Development (OECD/DAC), in addition to natural or
legal persons eligible by virtue of this Regulation. The Commis-
sion shall publish and update the list of developing countries
established by the OECD/DAC in accordance with regular reviews
of this list and inform the Council thereof.

2.
Participation in the award of procurement or grant con-
tracts 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 to 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 recipient country concerned.

in accordance with Article 54(2)(c) of Regulation (EC, Euratom)
No 1605/2002, participation in the public procurement and
grant award procedures of the managing entity shall be open to
natural persons who are nationals of the countries having access
to Community contracts and grants in accordance with the prin-
ciples set out in paragraph 1 of this Article, and of any other
country eligible under the rules and procedures of the managing
entity, and to legal persons which are established in those
countries.

7. Whenever Community assistance covers an operation
implemented through an international organisation, participa-
tion in the appropriate contractual procedures shall be open to
all natural persons and legal persons who are eligible pursuant
to this Article, as well as to all natural persons and 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, mate-
rials and experts.

8. Whenever Community funding covers an operation
co-financed with a third country, subject to reciprocity, or with
a regional organisation, or with a Member State, participation in
the appropriate contractual procedures shall be open to all natu-
ral persons and legal persons who are eligible pursuant to this
Article as well as to all natural persons and legal persons who
are eligible under the rules of such third country, regional organi-
sation or Member State. The same rules shall apply in respect of
supplies, materials and experts.

Reciprocal access shall be established by means of a specific deci-
sion concerning a given country or a given regional group of
countries. Such a decision shall be adopted in accordance with
the procedure laid down in Article 17(2) and shall be in force
for a minimum period of one year.

9.
All supplies and materials purchased under a contract
financed under this Regulation must originate from the Commu-
nity or from an eligible country as defined in paragraphs 1 and 2.
The term ‘origin’ for the purpose of this Regulation is defined in
the relevant Community legislation on rules of origin for cus-
toms purposes.

3.
Participation in the award of grants and public contracts
financed under this Regulation shall be open to international
organisations.

4.
The provisions of paragraphs 1, 2 and 3 are without preju-
dice to the participation of categories of eligible organisations by
nature or by localization in regard to the objectives of the action
to carry out.

5.
Experts may be of any nationality. This is without preju-
dice to the qualitative and financial requirements set out in the
Community’s procurement rules.

6.
If measures financed under this Regulation are imple-
mented on a centralised basis and indirectly by delegation to spe-
cialised Community bodies,
international or national public
sector bodies, or bodies governed by private law with a public
mission
service

10.
The Commission may, in duly substantiated cases, autho-
rise the participation of natural and legal persons either from
countries having traditional economic, trade or geographical links
with neighbouring countries, or from other third countries, and
the purchase and use of supplies and materials of different origin.

11.
Derogations may be justified on the basis of the unavail-
ability of products and services in the markets of the countries
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.

12.
Tenderers who have been awarded contracts shall respect
internationally agreed core labour standards, such as the Interna-
tional Labour Organization’s core labour standards, conventions
on freedom of association and collective bargaining, elimination
of forced and compulsory labour, elimination of discrimination
in respect of employment and occupation, and the abolition of
child labour.

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Article 15

Protection of the financial interests of the Community

1.
Any agreement or contract resulting from the implementa-
tion of this Regulation shall contain provisions ensuring the pro-
tection of the Community’s financial interests, in particular with
respect to fraud, corruption and any other irregularities in accor-
dance with Council Regulation (EC, Euratom) No 2988/95 of
18 December 1995 on the protection of the European Commu-
nities financial interests (1), Council Regulation (Euratom, EC)
No 2185/96 of 11 November 1996 concerning on-the-spot
checks and inspections carried out by the Commission in order
to protect the European Communities’ financial interests against
fraud and other irregularities (2), and Regulation (EC, Euratom)
No 1073/1999 of the European Parliament and of the Council
of 25 May 1999 concerning investigations conducted by the
European Anti-Fraud Office (OLAF) (3).

2.
Agreements and contracts shall expressly entitle the Com-
mission and the Court of Auditors to have the power of audit,
on the basis of documents and on-the-spot, over all contractors
and subcontractors who have received Community funds. They
shall also expressly authorise the Commission to carry out
on-the-spot checks and inspections, as provided for in Regula-
tion (Euratom, EC) No 2185/96.

Article 16

Evaluation

1.
The Commission shall regularly monitor and review its pro-
grammes, and evaluate the effectiveness, coherence and consis-
tency of programming, where appropriate by means of
independent external evaluations, in order to ascertain whether
the objectives have been met and to enable it to formulate rec-
ommendations with a view to improving future operations. Pro-
posals by the European Parliament or
for
independent external evaluations shall be taken into due account.

the Council

2.
The Commission shall send its evaluation reports to the
Committee referred to in Article 17(1) and to the European Par-
liament for information. Member States may request discussion
of
in the Committee referred to in
Article 17(1). The results shall feed back into programme design
and resource allocation.

specific evaluations

3.
The Commission shall associate all stakeholders as appro-
priate in the evaluation phase of Community assistance provided
under this Regulation. Joint evaluations with Member States,
international organisations or other bodies shall be encouraged.

(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.

TITLE III

FINAL PROVISIONS

Article 17

Committee

The Commission shall be assisted by a Democracy and
referred to as ‘the

1.
Human Rights Committee, hereinafter
Committee’.

2. Where reference is made to this paragraph, Articles 4 and 7
of Decision 1999/468/EC shall apply, having regard to the pro-
visions of Article 8 thereof. The period provided for
in
Article 4(3) of Decision 1999/468/EC shall be 30 days.

3.

The Committee shall adopt its rules of procedure.

Article 18

Annual Report

1.
The Commission shall examine progress achieved in imple-
menting the assistance measures undertaken pursuant to this
Regulation and shall submit to the European Parliament and to
the Council an annual report on the implementation and results
and, as far as possible, main outcomes and impacts of the assis-
tance. The report shall be an integral part of the Annual Report
on European Community development policy implementation
and implementation of external assistance and of the EU Annual
Report on Human Rights.

2.
The annual report shall contain information relating to the
previous year on the measures financed, the results of monitor-
ing and evaluation exercises, the involvement of the relevant part-
ners, and the implementation of budget commitments and
payments, broken down according to global, regional, and coun-
try measures, and fields of assistance. It shall assess the results of
assistance, using as far as possible specific and measurable indi-
cators of its role in meeting the objectives of this Regulation.

Article 19

Financial envelope

The financial envelope for the implementation of this Regula-
tion for the period 2007-2013 shall be EUR 1 104 000 000.
Annual appropriations shall be authorised by the budgetary
authority within the limits of the Financial Framework 2007 –
2013.

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Article 20

Review

Article 21

Entry into force

Not later than 31 December 2010, the Commission shall submit
to the European Parliament and to the Council a report evaluat-
ing the implementation of this Regulation in the first three years
with, if appropriate, a legislative proposal introducing the neces-
sary modifications 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 until 31 December 2013.

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

Done at Brussels, 20 December 2006.

For the European Parliament
The President
J. BORRELL FONTELLES

For the Council
The President
J. KORKEAOJA