Communication from the Commission to the Council and the European Parliament - Instrument for pre-accession assistance (IPA) multi-annual indicative financial framework for 2010-2012
Date: 2008-11-05
Institutions: European Commission
Subjects: EU aid, EU financial instrument, EU financing, accession to the European Union, pre-accession strategy

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 5.11.2008 
COM(2008) 705 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) 
MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2010-2012 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL AND THE 
EUROPEAN PARLIAMENT 

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) 
MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2010-2012 

Introduction 

The  Multi-Annual  Indicative  Financial  Framework  (MIFF)  for  the  Instrument  of  Pre-
Accession Assistance (IPA) is designed to provide information on the indicative breakdown 
of the overall IPA envelope proposed by the Commission in accordance with article 5 of the 
IPA Regulation (EC) 1085/2006. It acts as the link between the political framework within the 
enlargement  package  and  the  budgetary  process.  The  Multi-Annual  Indicative  Planning 
Documents  (MIPD)  established  for  each  beneficiary  country  and  for  the  multi-beneficiary 
programme,  through  which  pre-accession  aid  is  delivered,  take  into  account  the  indicative 
breakdown proposed in the MIFF. 

The MIFF is based on a rolling three-year programming cycle. Under normal circumstances, a 
MIFF for years N, N+1 and N+2 will be presented in the last quarter of year N-2 as part of the 
enlargement  package,  representing  a  proposed  financial  translation  of  the  political  priorities 
set  out  within  the  package  itself,  taking  into  consideration  the  Financial  Framework.  This 
MIFF is for the years 2010-2012. It indicates the allocation of the envelope for pre-accession 
assistance by country and by component for these years, and also gives an indication of the 
multi-beneficiary programme envelope and support expenditure. 

The  overall  political  priorities  for  pre-accession  are  set  out  in  the  Accession  and  European 
Partnerships, the annual progress reports and the enlargement strategy paper contained in the 
enlargement package presented to the Council and European Parliament each year. 

Strategic Financial Programming  

1. 

Allocation of funds between countries 

The  starting  point  for  allocations  in  2007  was  a  commitment  by  the  Commission  to  ensure 
that no beneficiary country would receive less in 2007 than they did in 2006 and furthermore 
that Bosnia and Herzegovina and Albania should receive no less than the annual average of 
the funding each received between 2004 and 2006. This latter point reflected the fact that the 
funding for these countries was frontloaded in 2004. In 2007 the implementation was close to 
a 100 % in commitment appropriations (including appropriations carried over to 2008 which 
were fully committed). 

The  figures  for  2008  onwards  have  been  calculated  on  the  basis  of  per-capita  allocations 
which have been quoted in the past as a proxy for needs and impact. Against this measure, the 
Western  Balkans  should  improve  their  position  during  the  course  of  the  current  financial 
framework to above the 2004-2006 per-capita average of 23 € (i n 2004 prices) received under 
CARDS.  According  to  the  2008-2010  MIFF,  this  should  be  reached  for  all  countries  in  the 
Western Balkans by 2010 at the latest. The figures for the Western Balkans in 2011 and 2012 
maintain such  levels  for  each  country. For Montenegro, the per capita levels of funding are 

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higher than for the other potential candidate countries, reflecting a minimum level of funding 
needed  for  adequate  administrations,  irrespective  of  the  size  of  the  country.  The  global 
breakdown  of  funds  in  between  countries  has  been  respected  with  the  exception  of  Kosovo 
which received new funds increasing the IPA funding. In 2008 € 60 milli on were granted by 
the budget authority as part of a wider mobilisation of new funds to support the stability and 
development of Kosovo. Further additional funds (€ 40 million) have been requested for 2009 
by way of an Amending Letter to the Preliminary Draft Budget 2009, as a follow up of the 
Donor's conference which took place in July 2008.  

For Croatia and the former Yugoslav Republic of Macedonia, as candidate countries, a level 
of  over  30  €  per  capita  (in  2004  pr ices)  by  2008  is  envisaged.  This  level  is  maintained  in 
2009-2012 for Croatia. For the former Yugoslav Republic of Macedonia, the funding in per 
capita terms continues to increase, reflecting a minimum level of funding needed for adequate 
administrations, irrespective of the size of the country. 

For  Turkey,  taking  into  account  the  size  and  absorption  capacity  of  the  country,  there  is  a 
gradual increase in per-capita levels of assistance over the period 2007-2012. 

2. 

Allocations between components  

IPA  is  delivered  through  the  following  five  components:  I  –  Transition  and  Institution 
Building; II – Cross-border cooperation; III – Regional Development; IV – Human Resources 
Development; and V – Rural Development.  

Component  I,  Transition  Assistance  and  Institution  Building,  covers  all  institution  building 
actions  and  the  investments  related  to  the  acquis  communautaire;  it  helps  beneficiary 
countries  build  up  administrative  and  judicial  capacity  and  addresses,  according  to  priority, 
cooperation measures not expressly covered by other components.  

Component II, Cross-Border Cooperation, supports cross-border activities among beneficiary 
countries  and  between  beneficiary  countries  and  Member  States;  it  also  covers  the 
participation  of  IPA  beneficiaries  in  ERDF  trans-national  and  interregional  co–operation 
programmes and in ENPI sea basins programmes, as appropriate.  

Component III, Regional Development, is accessible to candidate countries and emulates, to 
the greatest extent possible, the ERDF and Cohesion Fund, thereby giving to the beneficiary 
countries  the  highest  possible  approximation  to  Structural  Funds  implementation  under 
External Aid rules.  

Component  IV,  Human  Resources  Development,  accessible  to  candidate  countries,  prepares 
them for the programming, implementation and management of the European Social Fund, in 
the framework of the European Employment Strategy. 

Component V, Rural Development, helps the candidate  countries  prepare  for  post-accession 
EU-funded rural development programmes by implementing pre-accession assistance through 
systems which are as similar as possible to those required post accession. 

In  determining  the  allocations  between  components,  due  account  has  been  taken  of  the 
readiness  of  the  decentralised  management  systems  necessary  for  the  implementation  of 
components III, IV and V in the current candidate countries as well as the need for component 
II funding as it relates to cross-border cooperation with Member States to match that of the 
equivalent ERDF funding from heading 1b. 

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3. 

Other Allocations  

Support expenditure 

This envelope covers the administrative costs directly linked to the implementation of IPA. In 
2007 and 2008 it also includes the administrative costs for  the phasing out  of previous pre-
accession funding, including for Bulgaria and Romania.  

Multi-beneficiary programme allocation 

The multi-beneficiary programmes are designed to complement the National Programmes and 
to strengthen multi-lateral relations in the Western Balkans and Turkey. The strategy focuses 
on areas identified as crucial for European integration and stability in the region. Programmes 
with a regional impact, and / or those which can benefit from economies of scale or scope if 
implemented  horizontally  across  a  number  of  beneficiary  countries,  are  funded  under  this 
envelope.  

Programmes under this envelope support, among other things, the Regional School for Public 
Administration,  the  Central  European  Free  Trade  Agreement  (CEFTA),  the  Regional 
Cooperation  Council  (RCC)  and  the  new  Civil  Society  Facility.  Institution  building  is 
supported  via  the  TAIEX  instrument,  and  allocations  are  made  for  audits  and  evaluation  of 
regional and national programmes, as well as for information and communication activities. 
Investment  needs  for  SMEs,  energy  efficiency  and  infrastructure  development,  delivered  in 
close  collaboration  with  the  European  Investment  Bank  and  other  International  Financial 
Institutions  (IFIs),  will  continue  to  be  supported  with  a  substantial  part  of  the  regional  and 
horizontal allocation. This support will be aligned with the discussions on the Infrastructure 
Initiative  in  the  context  of  the  new  Western  Balkan  Investment  Framework,  which  aims  at 
enhancing  the  coordination  and  cooperation  among  the  various  initiatives  sponsored  by 
donors and IFIs actively engaged in the Western Balkans. Another priority is education, for 
which the allocation for scholarships will increase. 

Presentation of the figures 

The  following  table  provides  the  above  figures  in  current  prices  and  in  euros.  It  shows  the 
allocations by country and by component, as well as for the multi-beneficiary programme and 
support  expenditure.  The  final  figures  for  2007  and  updated  figures  for  2008  and  2009  are 
included for ease of reference. 

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Multi-Annual Indicative Financial Framework: Breakdown of the Instrument for Pre-

Accession Assistance envelope for 2010-2012 into allocations by country and component 

Component 

2007 

2008 

2009 

2010 

2011 

2012 

CROATIA 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

Regional 
Development 

Human 
Resources 
Development 

Rural 
Development  

TOTAL 

49,611,775 

45,374,274 

45,601,430 

39,483,458 

39,959,128 

40,872,310 

9,688,225 

14,725,726 

15,898,570 

16,216,542 

16,540,872 

16,871,690 

45,050,000 

47,600,000 

49,700,000 

56,800,000 

58,200,000 

59,348,000 

11,377,000 

12,700,000 

14,200,000 

15,700,000 

16,000,000 

16,040,000 

25,500,000 

25,600,000 

25,800,000 

26,000,000 

26,500,000 

27,268,000 

141,227,000 

146,000,000 

151,200,000 

154,200,000 

157,200,000 

160,400,000 

fORMER YUGOSLAV REPUBLIC oF MACEDONIA 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

Regional 
Development 

Human 
Resources 
Development 

Rural 
Development  

TOTAL 

TURKEY 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

Regional 
Development 

Human 
Resources 
Development 

Rural 
Development  

TOTAL 

41,641,613 

41,122,001 

38,128,499 

36,317,068 

34,503,410 

32,979,479 

4,158,387 

4,077,999 

5,571,501 

5,682,932 

5,796,590 

5,912,521 

7,400,000 

12,300,000 

20,800,000 

29,400,000 

35,000,000 

39,400,000 

3,200,000 

6,000,000 

7,100,000 

8,400,000 

9,400,000 

10,580,000 

2,100,000 

6,700,000 

10,200,000 

12,500,000 

14,000,000 

16,928,000 

58,500,000 

70,200,000 

81,800,000 

92,300,000 

98,700,000 

105,800,000 

256,702,720 

256,125,297 

233,200,653 

211,312,664 

230,620,919 

250,900,336 

2,097,280 

2,874,703 

9,399,347 

9,587,336 

9,779,081 

9,974,664 

167,500,000 

173,800,000 

182,700,000 

238,100,000 

291,400,000 

350,805,000 

50,200,000 

52,900,000 

55,600,000 

63,400,000 

77,600,000 

89,930,000 

20,700,000 

53,000,000 

85,500,000 

131,300,000 

172,500,000 

197,890,000 

497,200,000 

538,700,000 

566,400,000 

653,700,000 

781,900,000 

899,500,000 

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Component 

2007 

2008 

2009 

2010 

2011 

2012 

ALBANIA 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

TOTAL 

54,318,790 

62,117,756 

70,917,079 

82,711,421 

84,301,650 

85,987,683 

6,681,210 

8,582,244 

10,282,921 

10,488,579 

10,698,350 

10,912,317 

61,000,000 

70,700,000 

81,200,000 

93,200,000 

95,000,000 

96,900,000 

BOSNIA & HERZEGOVINA 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

TOTAL 

58,136,394 

69,854,783 

83,892,254 

100,688,099 

102,681,861 

104,700,000 

3,963,606 

4,945,217 

5,207,746 

5,311,901 

5,418,139 

5,526,501 

62,100,000 

74,800,000 

89,100,000 

106,000,000 

108,100,000 

110,200,000 

MONTENEGRO 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

TOTAL 

SERBIA 

Transition 
Assistance and 
Institution 
Building 

Cross-border 
Co-operation 

TOTAL 

27,490,504 

28,112,552 

28,632,179 

29,238,823 

29,843,599 

30,446,471 

3,909,496 

4,487,448 

4,667,821 

4,761,177 

4,856,401 

4,953,529 

31,400,000 

32,600,000 

33,300,000 

34,000,000 

34,700,000 

35,400,000 

181,496,352 

179,441,314 

182,551,643 

186,206,679 

189,956,810 

193,801,948 

8,203,648 

11,458,686 

12,248,357 

12,493,321 

12,743,190 

12,998,052 

189,700,000 

190,900,000 

194,800,000 

198,700,000 

202,700,000 

206,800,000 

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KOSOVO1 

Transition 
Assistance and 
Institution 
2
Building

68,300,000 

184,700,000 

103,339,798 

64,484,594 

65,828,286 

67,070,852 

Cross-border 
Co-operation 

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0 

2,760,202 

2,815,406 

2,871,714 

2,929,148 

TOTAL 

68,300,000 

184,700,000 

106,100,000 

67,300,000 

68,700,000 

70,000,000 

TOTAL COUNTRY PROGRAMMES 

1,109,427,000  1,308,600,000  1,303,900,000  1,399,400,000  1,547,000,000  1,685,000,000 

2007 

2008 

2009 

2010 

2011 

2012 

TOTAL COUNTRY PROGRAMMES  

  1,109,427,000  1,308,600,000  1,303,900,000  1,399,400,000  1,547,000,000  1,685,000,000 

REGIONAL AND HORIZONTAL PROGRAMMES  

108,980,000 

135,700,000 

160,000,000 

157,700,000 

160,800,000 

164,200,000 

SUPPORT EXPENDITURE  

44,793,000 

54,000,000 

56,500,000 

64,600,000 

75,000,000 

80,500,000 

GRAND TOTAL  

  1,263,200,000  1,498,300,000  1,520,400,000  1,621,700,000  1,782,800,000  1,929,700,000 

Figures are in euros, current prices 

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Under UNSCR 1244 
In its Amending Letter No 1 to the Preliminary Draft Budget 2009, the Commission has proposed as 
part  of  a  wider  mobilisation  of  new  funds  to  support  the  stability  and  development  of  Kosovo,  to 
increase the IPA funding for Kosovo by € 40 million in 2009. Furthermore, the Commission plans to 
transfer € 60 million from chapter 1 of the budget, originally intended for macro financial assistance in 
Kosovo, to chapter 22, to be implemented under IPA. Both amounts are provisionally included in the 
relevant component I allocations for Kosovo in this table. 

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