Proposal for a decision of the representatives of the governments of the Member states, meeting within the Council, Amending the decision No 2005/446/EC of 30 May 2005 setting the deadline for the commitment of the funds of the 9th European Development Fund (EDF)
Date: 2007-10-11
Institutions: European Commission
Subjects: ACP countries, EU aid, European Development Fund, commitment of expenditure, development aid

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 11.10.2007 
COM(2007) 590 final 

Proposal for a 

DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS 
OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, 

Amending the decision No 2005/446/EC of 30 May 2005 
setting the deadline for the commitment of the funds of the 9th European Development 
Fund (EDF)  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

According  to  Article  2(4)  of  the  Internal  Agreement  between  representatives  of  the 
Governments  of  the  Member  States,  meeting  within  the  Council,  on  the  Financing  and 
Administration of Community Aid under the Financial Protocol to the Partnership Agreement 
between  the  African,  Caribbean  and  Pacific  States  and  the  European  Community  and  its 
Member  States  signed  in  Cotonou  (Benin)  on  23  June  2000  and  the  allocation  of  financial 
assistance  for  the  Overseas  Countries  and  Territories  to  which  Part  Four  of  the  EC  Treaty 
applies (hereinafter referred to as '9th EDF Internal Agreement')1, the Member States shall set 
before the expiry of the 9th EDF a date beyond which the funds of the 9th EDF may no longer 
be committed. 

By Decision No 2005/446/EC of 30 May 2005 and based on an assessment of the degree of 
realisation of commitments and disbursements under the 9th EDF, the representatives of the 
Governments of the Member States, meeting within the Council, set at 31 December 2007 the 
date beyond which the funds of the 9th EDF may no longer be committed, specifying that this 
date could be reviewed if need be (the 'sunset clause').2 

The date beyond  which  the  funds  of  the 9th EDF  may  no  longer  be  committed  can  now  be 
confirmed.  However,  in  light  of  the  evolving  context,  three  substantive  amendments  to  the 
decision  are  being  proposed,  broadening  the  exceptions  to  the  general  rule  which  were 
initially  limited  to  the  amount  allocated  to  finance  the  Investment  Facility  managed  by  the 
EIB as a revolving fund which will not be affected by the sunset clause: 

•  In line with a legal advise on the status of the funds allocated from the system guaranteeing 
the  stabilisation  of  export  earnings  from  primary  agricultural  products  under  the  EDFs 
prior  to  the  9th  EDF  (STABEX),  the  ACP-EC  Council  of  Ministers,  when  adopting  the 
Multi-annual Financial Framework for the period 2008 to 20133, accepted that the balances 
and funds decommitted  after  31  December 2007 under the STABEX system shall not be 
affected  by  the  sunset  clause.  By  Commission  Decision  C(2007)2149  of  24  May  2007, 
these funds will be transferred to the respective national indicative programmes of the ACP 
States concerned. 

•  In view of a possible late entry into force of the 10th EDF and when adopting the Multi-
annual  Financial  Framework  for  the  period  2008  to  2013,  the  ACP-EC  Council  of 
Ministers, also accepted the principle that funds can still be committed until the entry into 
force  of  the  10th  EDF,  but  exclusively  "to  ensure  the  working  ability  of  the  EU 
administration and to cover the ongoing costs to sustain running projects". 

•  The  revenue  accruing  from  the  interest  on  the  appropriation  of  the  EDF  shall  not  be 
affected by the sunset clause. The reason for this is that those revenues are used solely for 
"costs  linked  to  the  implementation  of  the  resources  of  the  9th  EDF",  unless  agreed 
otherwise by the Council (9th EDF Internal Agreement, Article 9), or "support expenditure 
linked to the EDF" (10th EDF Internal Agreement, Article 6)4. 

Two  Commission  administrators  and  several  civil  servants  from  the  French  Overseas 
Countries and Territories (OCTs) in the Pacific region in charge of the instruction of the 9th 
EDF projects and programmes in these OCTs died in an airplane accident on 9 August 2007. 
In view of this tragic force majeure, it is also proposed to postpone the date beyond which the 

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OJ L 317, 15.12.2000, p. 355. 
OJ L 156, 18.6.2005, p. 19. 
OJ L 247, 9.9.2006, p. 22. 
OJ L 247, 9.9.2006, p. 32. 

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funds  of  the  9th  EDF  may  no  longer  be  committed  to  30  June  2008  for  projects  and 
programmes  to  be  funded  in  the  French  OCTs  to  which  Part  Four  of the  EC  Treaty  applies 
(New Caledonia and French Polynesia).  

The  Commission  therefore  suggests  that  the  Representatives  of  the  Governments  of  the 
Member States adopt the attached decision. 

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Proposal for a 

DECISION OF THE REPRESENTATIVES OF THE GOVERNMENTS 
OF THE MEMBER STATES, MEETING WITHIN THE COUNCIL, 

Amending the decision No 2005/446/EC of 30 May 2005 
setting the deadline for the commitment of the funds of the 9th European Development 
Fund (EDF)  

THE  REPRESENTATIVES  OF  THE  GOVERNMENTS  OF  THE  MEMBER  STATES  OF 
THE EUROPEAN COMMUNITIES, MEETING WITHIN THE COUNCIL, 

Having regard to the Treaty establishing the European Community,  

Having regard to the proposal from the Commission, 

Having regard to the Partnership Agreement between the members of the African, Caribbean 
and  Pacific  Group  of  States  of  the  one  part,  and  the  European  Community  and  its  Member 
States, of the other part, signed in Cotonou on 23 June 20005 as revised in Luxembourg on 25 
June 20056 (hereinafter referred to as the 'ACP-EC Partnership Agreement'),  

Having  regard  to  the  Council  Decision  of  27  November  2001  on  the  association  of  the 
overseas  countries  and  territories  with  the  European  Community7,  hereinafter  referred  to  as 
the 'Overseas Association Decision', and in particular Article 33a thereof, 

Having regard to the Internal Agreement between Representatives of the Governments of the 
Member  States,  meeting  within  the  Council,  on  the  Financing  and  Administration  of 
Community  Aid  under  the  Financial  Protocol  to  the  ACP-EC  Partnership  Agreement8 
(hereinafter  referred  to  as  '9th  EDF  Internal  Agreement'),  and  in  particular  Article 2(4) 
thereof, 

Having regard to the Internal Agreement between Representatives of the Governments of the 
Member States, meeting within the Council,  on the Financing of Community Aid under the 
Multi-annual Financial Framework for the period 2008 to 2013 in accordance with the ACP-
EC  Partnership  Agreement  and  on  the  allocation  of  financial  assistance  for  the  Overseas 
Countries and Territories to which Part Four of the EC Treaty applies9 (hereinafter referred to 
as '10th EDF Internal Agreement') 

Whereas: 

(1) 

The decision of the Representatives of the Governments of the Member States meeting 
within the Council No 2005/446/EC of 30 May 200510 sets at 31 December 2007 the 
date  beyond  which  the  funds  of  the  9th  European  Development  Fund  (hereinafter 
referred to as "EDF") managed by the Commission, the interest subsidies managed by 

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OJ L 317, 15.12.2000, p. 3.  
OJ L 209, 11.8.2005, p. 27.  
OJ  L  314,  30.11.2001,  p.  1,  as  amended  by  Council  Decision  2007/249/EC  of  19  March  2007,  OJ  L 
109, 26.4.2007, p. 33. 
OJ L 317, 15.12.2000, p. 355. 
OJ L 247, 9.9.2006, p. 32. 
OJ L 156, 18.6.2005, p. 19. 

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(2) 

(3) 

(4) 

(5) 

(6) 

the European Investment Bank (hereinafter referred to as "the EIB") and the revenue 
accruing from the interest on these appropriations are no longer to be committed. 

Point 4 of Annex Ib (Multi-annual financial framework for the period 2008 to 2013) to 
the  ACP-EC  Partnership  Agreement  provides  an  exception  to  that  general  rule  for 
balances  and  funds  decommitted  after  31  December  2007  resulting  from  the  system 
guaranteeing  the  stabilisation  of  export  earnings  from  primary  agricultural  products 
(STABEX)  under  EDFs  prior  to  the  9th  EDF  and  for  the  remaining  balances  and 
reimbursements of the amounts allocated for the financing of the Investment Facility, 
excluding the related interest subsidies11. 

Point 4 of Annex Ib to the ACP-EC Partnership Agreement further provides that funds 
may still be  committed  after 31 December  2007 to ensure the working ability of the 
EU administration and to cover the ongoing costs to sustain running projects until the 
10th EDF comes into force. 

The entry into force of the 10th EDF may be delayed beyond 01 January 2008. 

The  Decision  of  the  Representatives  of  the  Governments  of  the  Member  States 
meeting within the Council N° 2005/446/EC of 30 May 2005 and point 4 of Annex Ib 
to the ACP-EC Partnership Agreement need to be reconciled. 

Due  to  force  majeure,  the  instruction  of  the  projects  and  programmes,  funded  from 
financial  allocations  available  under  the  9th  EDF  after  the  mid-term  review 
reallocation  Decision  of  the  Commission  N°  C(2007)3856  of  16  August  2007,  has 
been  delayed  by  six  months  in  the  French  Overseas  Countries  and  Territories 
(hereinafter referred to as 'OCTs') in the Pacific Region to which Part Four of the EC 
Treaty applies. 

HAVE DECIDED AS FOLLOWS:  

(1)  Articles  1  and  2  of  the  Decision  of  the  Representatives  of  the  Governments  of  the 
Member States meeting within the Council No 2005/446/EC are replaced by the following:  

Sole Article 

"Article 1 

(1) 

(2) 

The  date  beyond  which  the  funds  of  the  9th  EDF  managed  by  the  Commission,  will 
not be committed, shall be set at 31 December 2007, except for the balances and funds 
decommitted  resulting  from  the  system  guaranteeing  the  stabilisation  of  export 
earnings  from  primary  agricultural  products  (STABEX)  under  the  EDFs  prior  to  the 
9th  EDF  and  for  the  balances  of  the  9th  EDF  allocations  to  finance  the  initiatives 
referred to in the Single Programming Documents of the French OCTs in the Pacific 
Region. This date could be reviewed if need be. 

Balances  and  funds  decommitted  after  31  December  2007  resulting  from  the  system 
guaranteeing  the  stabilisation  of  export  earnings  from  primary  agricultural  products 
(STABEX) under EDFs prior to the 9th EDF shall be transferred to the 10th EDF and 
shall be allocated to the indicative programme of the respective ACP States and OCTs. 
The  date  beyond  which  the  funds  of  the  9th  EDF  managed  by  the  Commission  to 

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Annex  Ib  as  contained  in  Annex  to  Decision  No  1/2006  of  the  ACP-EC  Council  of  Ministers  of 
2.6.2006, OJ L 247, 9.9.2006, p. 22. 

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finance the initiatives referred to in the Single Programming Documents of the French 
OCTs in the Pacific Region shall no longer be committed, shall be set at 30 June 2008. 

(3)  When  the  entry  into  force  of  the  10th  EDF  falls  after  31  December  2007,  balances 
from the 9th EDF or from previous EDFs and funds decommitted from projects under 
these EDFs may be committed during the period between 31 December 2007 and the 
entry into force of the 10th EDF, in which case they will be used exclusively to ensure 
the working ability of the EU administration and to cover the ongoing costs to sustain 
running projects until the 10th EDF comes into force. 

(4) 

The revenue accruing from the interest on the appropriations of the EDF will be used 
to  cover  the  costs  linked  to  implementation  of  the  resources  of  the  9th  EDF  in  line 
with Article 9 of the 9th EDF Internal Agreement until the 10th EDF comes into force, 
where  after  they  will  be  reserved  for  support  expenditures  linked  to  the  EDF  as 
described in Article 6 of the 10th EDF Internal Agreement. 

Article 2 

(1) 

(2) 

The  date  beyond  which  the  interest  rate  subsidies  managed  by  the  European 
Investment  Bank  (EIB)  to  provide  resources  of  the  Investment  Facility  on 
concessional terms will not be committed, shall be set at 31 December 2007 or the 
date of entry into force of the 10th EDF, whichever is the latest. This date could be 
reviewed if need be.  

The  remaining  balances  and  reimbursements  of  the  amounts  allocated  for  the 
financing  of  the  Investment  Facility  managed  by  the  EIB,  excluding  the  related 
interest subsidies, shall be transferred to the 10th EDF and shall remain allocated to 
the Investment Facility." 

Done at Brussels, […] 

On behalf of the Governments of the Member States 
The President 

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