JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A new response to a changing Neighbourhood  JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS A new response to a changing Neighbourhood
Date: 2011-05-25
Institutions: European Commission, High Representative of the Union
Subjects: European Association Agreement, European neighbourhood policy, Mediterranean third countries, common foreign and security policy, economic development, free movement of persons, job creation, social development, transition economy

EUROPEAN COMMISSION 

HIGH REPRESENTATIVE OF THE
EUROPEAN UNION FOR 
FOREIGN AFFAIRS AND 
SECURITY POLICY

Brussels, 25.5.2011 
COM(2011) 303 final 

JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

A new response to a changing Neighbourhood 

{SEC(2011) 637 final} 
{SEC(2011) 638 final} 
{SEC(2011) 639 final} 
{SEC(2011) 640 final} 
{SEC(2011) 641 final} 
{SEC(2011) 642 final} 
{SEC(2011) 643 final} 
{SEC(2011) 644 final} 
{SEC(2011) 645 final} 
{SEC(2011) 646 final} 
{SEC(2011) 647 final} 
{SEC(2011) 648 final} 
{SEC(2011) 649 final} 
{SEC(2011) 650 final} 
{SEC(2011) 651 final} 
{SEC(2011) 652 final} 

 
 
 
 
  
 
JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, 
THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE 
COMMITTEE OF THE REGIONS 

A new response to a changing Neighbourhood 

To  the  East  and  South  of  the  European  Union  (EU)  lie  sixteen  countries1  whose  hopes  and 
futures  make  a  direct  and  significant  difference  to  us.  Recent  events  have  brought  this  into 
sharper relief, highlighting the challenges we face together. The overthrow of long-standing 
repressive  regimes  in  Egypt  and  Tunisia;  the  ongoing  military  conflict  in  Libya,  the  recent 
violent  crackdown  in  Syria,  continued  repression  in  Belarus  and  the  lingering  protracted 
conflicts  in  the  region,  including  in  the  Middle  East,  require  us  to  look  afresh  at  the  EU’s 
relationship  with  our  neighbours.  The  encouraging  progress  made  by  other  neighbours,  for 
example  by  Republic  of  Moldova  in  its  reform  efforts,  Ukraine  in  the  negotiations  of  the 
Association  Agreement  or  Morocco  and  Jordan  in  their  announcement  of  constitutional 
reform, need also to be supported. The Lisbon Treaty has allowed the EU to strengthen the 
delivery of its foreign policy: co-operation with neighbouring countries can now be broadened 
to cover the full range of issues in an integrated and more effective manner. This was a key 
driver for initiating a review, in consultation with partner countries and other stakeholders, of 
the  European  Neighbourhood  Policy  (ENP)  in  summer  2010.  Recent  events  throughout  the 
Southern Mediterranean have made the case for this review even more compelling. The EU 
needs to rise to the historical challenges in our neighbourhood. 

Since  its  inception  in  2004,  the  ENP  has  promoted  a  variety  of  important  initiatives, 
particularly on the trade and economic front, which have allowed the EU and its neighbours to 
develop  stronger  relationships  in  virtually  all  policy  fields,  from  energy  to  education,  from 
transport to research. These are now the subject of exchanges and co-operation between the 
EU and its neighbours. EU assistance has increased and is better targeted. But there is room 
for improvement on all sides of the relationship. Recent events and the results of the review 
have  shown  that  EU  support  to  political  reforms  in  neighbouring  countries  has  met  with 
limited results. There is for example a need for greater flexibility and more tailored responses 
in dealing with rapidly evolving partners and reform needs – whether they are experiencing 
fast  regime  change  or  a  prolonged  process  of  reform  and  democratic  consolidation.  Co-
ordination between the EU, its Member States and main international partners is essential and 
can be improved.  

A new approach is needed to strengthen the partnership between the EU and the countries and 
societies  of  the  neighbourhood:  to  build  and  consolidate  healthy  democracies,  pursue 
sustainable economic growth and manage cross-border links.  

The ENP should be a policy of the Union with the Member States aligning their own bilateral 
efforts  in  support  of  its  overall  political  objectives.  Equally,  the  European  Parliament  has  a 
central role to play in helping to deliver some of its central objectives. And beyond that, the 

1 

The European Neighbourhood includes Algeria, Armenia, Azerbaijan, Belarus, Egypt, Georgia, Israel, 
Jordan,  Lebanon,  Libya,  the  Republic  of  Moldova,  Morocco,  the  Occupied  Palestinian  Territories, 
Syria, Tunisia and Ukraine. 

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ENP should serve as a catalyst for the wider international community to support democratic 
change and economic and social development in the region. 

This  partnership  with  our  neighbours  is  mutually  beneficial.  The  EU  is  the  main  trading 
partner  for  most  of  its  neighbours.  Sustainable  economic  development  and  job  creation  in 
partner countries benefits the EU as well. Likewise, managed movement of people is positive 
for the entire neighbourhood, facilitating the mobility of students, workers and tourists, while 
discouraging irregular migration and human trafficking. Active engagement between the EU 
and its neighbours in areas such as education, strengthening and modernising social protection 
systems  and  advancing  women's  rights  will  do  much  to  support  our  shared  objectives  of 
inclusive growth and job creation.  

The new approach must be based on mutual accountability and a shared commitment to the 
universal  values  of  human  rights,  democracy  and  the  rule  of  law.  It  will  involve  a  much 
higher level of differentiation allowing each partner country to develop its links with the EU 
as  far  as  its  own  aspirations,  needs  and  capacities  allow.  For  those  southern  and  eastern 
neighbours able and willing to take part, this vision includes closer economic integration and 
stronger  political  co-operation  on  governance  reforms,  security,  conflict-resolution  matters, 
including joint initiatives in international fora on issues of common interest. In the context of 
the  southern Mediterranean, the Commission  and the High Representative have already laid 
out their proposal for a Partnership for Democracy and Shared Prosperity2 with such partners. 

The new approach, as described above, aims to: 

(1) 

(2) 

(3) 

provide  greater support  to  partners  engaged in building deep democracy – the kind 
that lasts because the right to vote is accompanied by rights to exercise free speech, 
form competing political parties, receive impartial justice from independent judges, 
security  from  accountable  police  and  army  forces,  access  to  a  competent  and  non-
corrupt civil service — and other civil and human rights that many Europeans take 
for granted, such as the freedom of thought, conscience and religion; 

support  inclusive  economic  development  –  so  that  EU  neighbours  can  trade,  invest 
and  grow  in  a  sustainable  way,  reducing  social  and  regional  inequalities,  creating 
jobs for their workers and higher standards of living for their people; 

strengthen  the  two  regional  dimensions  of  the  European  Neighbourhood  Policy, 
covering  respectively  the  Eastern  Partnership  and  the  Southern  Mediterranean,  so 
that  we  can  work  out  consistent  regional  initiatives  in  areas  such  as  trade,  energy, 
transport  or  migration  and  mobility  complementing  and  strengthening  our  bilateral 
co-operation; 

(4) 

provide the mechanisms and instruments fit to deliver these objectives. 

The  partnership  will  develop  with  each  neighbour  on  the  basis  of  its  needs,  capacities  and 
reform objectives. Some partners may want to move further in their integration effort, which 
will entail a greater degree of alignment with EU policies and rules leading progressively to 
economic integration in the EU Internal Market. The EU does not seek to impose a model or a 
ready-made  recipe  for  political  reform,  but  it  will  insist  that  each  partner  country’s  reform 

2 

COM (2011) 200 of 8.03.2011. 

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process  reflect  a  clear  commitment  to  universal  values  that  form  the  basis  of  our  renewed 
approach. The initiative lies with the partner and EU support will be tailored accordingly.  

Increased EU support to its neighbours is conditional. It will depend on progress in building 
and  consolidating  democracy  and  respect  for  the  rule  of  law.  The  more  and  the  faster  a 
country  progresses  in  its  internal  reforms,  the  more  support  it  will  get  from  the  EU.  This 
enhanced  support  will  come  in  various  forms,  including  increased  funding  for  social  and 
economic  development,  larger  programmes  for  comprehensive  institution-building  (CIB), 
greater  market  access,  increased  EIB  financing  in  support  of  investments;  and  greater 
facilitation of mobility. These preferential commitments will be tailored to the needs of each 
country and to the regional context. They will recognise that meaningful reform comes with 
significant upfront costs. It will take the reform track record of partners during the 2010-12 
period (based on the annual progress reports) into account when deciding on country financial 
allocations for 2014 and beyond. For countries where reform has not taken place, the EU will 
reconsider or even reduce funding. 

The EU will uphold its policy of curtailing relations with governments engaged in violations 
of human rights and democracy standards, including by making use of targeted sanctions and 
other policy measures. Where it takes such measures, it will not only uphold but strengthen 
further its support to civil society. In applying this more differentiated approach, the EU will 
keep channels of dialogue open with governments, civil society and other stakeholders. At the 
same time and in line with the principle of mutual accountability, the EU will ensure that its 
resources are used in support of the central objectives of the ENP. 

The  resources  that  the  EU  and  its  international  partners  are  mobilising  in  support  of  the 
democratic transitions in the neighbourhood must cover both the immediate and urgent needs 
as well as the medium- and longer-term requirements. 

1. 

TO SUPPORT PROGRESS TOWARDS DEEP DEMOCRACY 

We shall: 

• 

adapt levels of EU support to partners according to progress on political reforms and 
building deep democracy 

1.1. 

Supporting “deep democracy” 

A functioning democracy, respect for human rights and the rule of law are fundamental pillars 
of the EU partnership with its neighbours. There is no set model or a ready-made recipe for 
political  reform.  While  reforms  take  place  differently  from  one  country  to  another,  several 
elements are common to building deep and sustainable democracy and require a strong and 
lasting commitment on the part of governments. They include: 

–  free and fair elections; 
–  freedom of association, expression and assembly and a free press and media; 
–  the rule of law administered by an independent judiciary and right to a fair trial; 
–  fighting against corruption; 
–  security and law enforcement sector reform (including the police) and the establishment of 

democratic control over armed and security forces. 

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Reform  based  on  these  elements  will  not  only  strengthen  democracy  but  help  to  create  the 
conditions for sustainable and inclusive economic growth, stimulating trade and investment. 
They are the main benchmarks against which the EU will assess progress and adapt levels of 
support. 

1.2. 

A partnership with societies 

We shall: 

• 

• 

• 

• 

establish  partnerships  in  each  neighbouring  country  and  make  EU  support  more 
accessible to civil society organisations through a dedicated Civil Society Facility 

support the establishment of a European Endowment for Democracy to help political 
parties, non-registered NGOs and trade unions and other social partners 

promote  media  freedom  by  supporting  civil  society  organisations'  (CSOs') 
unhindered  access  to  the  internet  and  the  use  of  electronic  communications 
technologies 

reinforce human rights dialogues 

A  thriving  civil  society  empowers  citizens  to  express  their  concerns,  contribute  to  policy-
making  and  hold  governments  to  account.  It  can  also  help  ensure  that  economic  growth 
becomes more inclusive. Key to making any of this happen is the guarantee of the freedoms 
of expression, association and assembly. Another challenge is to facilitate the emergence of 
democratic  political  parties  that  represent  the  broad  spectrum  of  the  views  and  approaches 
present in society so that they can compete for power and popular support. This challenge of 
fostering civil society and pluralism is felt throughout  the  neighbourhood  but is particularly 
acute  for  countries  engaged  in  fast  political  change  or  where  repressive  political  regimes 
continue to stifle pluralism and diversity.  

In order to address this situation and support political actors striving for democratic change in 
their countries (especially political parties and non-registered NGOs or trade unions and other 
social partners), the High Representative and the Commission support the establishment of a 
European  Endowment  for  Democracy3.  This  Endowment  will  seek  to  bring  greater 
influence and consistency to the efforts of the EU, its Member States and several of the large 
European political foundations that are already active in this field. 

Civil  society  plays  a  pivotal  role  in  advancing  women’s  rights,  greater  social  justice  and 
respect  for  minorities  as  well  as  environmental  protection  and  resource  efficiency.  The  EU 
will support this greater political role for non-state actors through a partnership with societies, 
helping  CSOs  to  develop  their  advocacy  capacity,  their  ability  to  monitor  reform  and  their 
role in implementing and evaluating EU programmes. In-country EU Delegations will seek to 
bring partner countries’ governments and civil society together in a structured dialogue on key 
areas  of  our  co-operation.  EU  funding  for  such  actions  could  be  delivered  through  the 
establishment of a dedicated Civil Society Facility for the neighbourhood. 

3 

While the objectives and financial and managerial modalities of this Endowment will be different from 
the other democratisation tools, they shall be applied with a view to reinforce synergies and coherence. 

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Media  freedom  and  free  access  to  information  are  key  elements  of  functioning 
democracies.  Social  networks  and  new  technologies  play  a  significant  role  in  promoting 
democratic  change.  EU  support  is  already  available  through  the  European  Instrument  for 
Democracy and Human Rights (EIDHR). Additional tools may be developed to allow the EU, 
in  appropriate  cases,  to  assist  civil  society  organisations  or  individual  citizens  to  have 
unhindered access to the internet and other forms of electronic communications technologies, 
as well as independent media in print, radio and television. 

Commitment to human rights and fundamental freedoms through multilateral treaties and 
bilateral  agreements  is  essential.  But  these  commitments  are  not  always  matched  by  action. 
Ratification of all the relevant international and regional instruments and full compliance with 
their  provisions,  should  underpin  our  partnership.  This  includes  a  strong  commitment  to 
promoting gender equality, in line with the major role once again played by women in recent 
events  in  the  South,  fighting  against  all  forms  of  discrimination,  respecting  freedom  of 
religion  and  protecting  the  rights  of  refugees  and  beneficiaries  of  international  protection. 
Reinforced  human  rights  dialogues  will  allow  monitoring  of  commitments  in  this  area, 
including addressing cases of human rights violations. Boosting cooperation with the Council 
of Europe could also help in promoting compliance. 

Parliaments  can  build  links  between  our  societies.  The  EuroNest  Parliamentary  Assembly 
(the  joint  Assembly  of  the  European  Parliament  and  counterparts  from  Eastern  Partnership 
countries),  the  Euro-Mediterranean  Parliamentary  Assembly  and  Joint  Parliamentary 
Committees  between  the  European  Parliament  and  partner  countries’  Parliaments  constitute 
an essential forum for dialogue and increased mutual understanding between decision-makers. 
Parliamentarians  can  also  bring  a  meaningful  contribution  to  enhancing  reform  efforts  and 
monitoring commitments in each country’s ENP Action Plan, including on major political and 
human rights issues.  

1.3. 

Intensifying our political and security co-operation 

We shall: 

• 

• 

• 

enhance EU involvement in solving protracted conflicts 

make  joined-up  use  of  the  Common  Foreign  and  Security  Policy  and  other  EU 
instruments 

promote  joint  action with  European Neighbourhood Policy partners in international 
fora on key security issues 

The  Lisbon  Treaty  provides  the  EU  with  a  unique  opportunity  to  become  a  more  effective 
actor. Nowhere is this more relevant than in our neighbourhood. But rising to the challenge 
requires that EU and Member States policies be much more closely aligned than in the past, in 
order to deliver the common message and the coherence that will make our actions effective. 
EU  instruments  and  policies  will  be  effective  only  if  properly  backed  by  Member  States 
policies.  Business  as  usual  is  no  longer  an  option  if  we  want  to  make  our  neighbourhood  a 
safer place and protect our interests. 

The  persistence  of  protracted  conflicts  affecting  a  number  of  partner  countries  is  a  serious 
security challenge to the whole region. EU geopolitical, economic and  security  interests are 
directly affected by continuing instability. The Israeli-Palestinian conflict and other conflicts 
in  the  Middle  East,  the  South  Caucasus,  the  Republic  of  Moldova  and  Western  Sahara 

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continue  to  affect  sizeable  populations,  feed  radicalisation,  drain  considerable  local  and 
international resources, and act as powerful impediments to reform.  

The EU is already active in seeking to resolve several of these conflicts. The EU is part of the 
Quartet  on  the  Middle  East.  It  co-chairs  the  Geneva  talks  directed  at  peace  and  security  in 
Georgia. It participates as an observer in the “5+2” talks on the Transnistrian conflict in the 
Republic of Moldova. It would be ready to step up its involvement in formats where it is not 
yet  represented,  e.g.  the  OSCE  Minsk  Group  on  the  Nagorno-Karabakh  conflict.  The  EU 
intends to enhance its support for confidence-building and outreach to breakaway territories, 
for international efforts and structures related to the conflicts, and, once that stage is reached, 
for the implementation of settlements. It will also continue to oppose border changes brought 
about  through  use  of  military  force.  Many  of  the  instruments  we  use  everywhere  in  the 
neighbourhood  to  promote  economic  integration  and  sectoral  co-operation  could  also  be 
mobilised  to  support  confidence-building  and  conflict-resolution  objectives.  The  EU  is  also 
ready to develop, together with the relevant international organisations and key partners, post-
conflict  reconstruction  scenarios  which  could  act  as  a  further  incentive  in  the  resolution  of 
conflicts by showing the tangible benefits of peaceful settlements. 

Where the EU is already engaged operationally on the ground, e.g. with the EU Monitoring 
Mission in Georgia, the EU Border Assistance Mission in Republic of Moldova/Ukraine, or 
the  EU  Police  Mission  and  the  EU  Border  Assistance  Mission  Rafah  in  the  occupied 
Palestinian  territories,  further  steps  will  be  taken  to  exploit  the  synergies  between  this 
operational  presence  and  the  efforts  to  promote  reforms.  In  particular,  wherever  it  is 
appropriate,  the  EU  will  offer  to  back  partner  countries’  efforts  to  reform  their  justice  and 
security  sector  reforms  with  rule  of  law  missions  or  other  Common  Foreign  and  Security 
Policy (CFSP) instruments that they will consider useful.  

Looking  beyond  conflict  resolution,  the  EU  will  make  full  use  of  the  Lisbon  Treaty's 
provisions  in  addressing  other  security  concerns  and  specific  common  interests,  e.g.  energy 
and  resource  security,  climate  change,  non-proliferation,  combating  international  terrorism 
and trans-border organised crime, and the fight against drugs. It will engage with ENP partner 
countries to undertake joint actions in international fora (e.g. UN, international conferences) 
on CFSP issues, as well as other global issues. 

2. 

TO SUPPORT SUSTAINABLE ECONOMIC AND SOCIAL DEVELOPMENT 

We shall: 

• 

• 

• 

• 

• 

support partner countries' adoption of policies conducive to stronger, sustainable and 
more  inclusive  growth,  to  the  development  of  micro,  small  and  medium-sized 
companies and to job creation 

strengthen  industrial  cooperation  and  support  improvements  to  the  business 
environment 

help to organise events to promote investment 

promote direct investment from EU SMEs and micro-credit 

build  on  the  pilot  regional  development  programmes  to  tackle  economic  disparities 

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between regions 

• 

• 

• 

• 

launch pilot programmes to support agricultural and rural development 

enhance  the  macro-economic  policy  dialogue  with  partners  making  the  most 
advanced economic reforms 

improve  the  effectiveness  of  Macro-Financial  Assistance  by  streamlining  its 
decision-making process 

enhance dialogue on employment and social policies 

2.1. 

Sustainable economic growth and job creation 

Economic  and  social  challenges  in  our  neighbourhood  are  immense.  Poverty  is  rife,  life 
expectancy  is  often  low,  youth  unemployment  is  high  and  the  participation  of  women  in 
political and economic life is low in several countries of the region. Natural capital is being 
eroded  and  the  rising  food  and  energy  prices  have  severe  effects  across  the  neighbourhood. 
Most partner countries have weak and poorly diversified economies that remain vulnerable to 
external  economic  shocks.  The  immediate  objectives  are  therefore  creating  jobs,  boosting 
growth, improving social protection and revitalising sectors affected by recent crises (such as 
tourism). Tackling these challenges is crucial to ensure the sustainability of political reforms 
and can also contribute to reaching the Millennium Development Goals. Feeble growth, rising 
unemployment and an increased gap between rich and poor are likely to fuel instability. 

The  ENP  will  continue  encouraging  partner  countries'  adoption  of  policies  conducive  to 
stronger and more inclusive growth. This includes support for efforts to improve the business 
environment  such  as  simplifying  procedures  and  catering  to  small  and  medium-sized 
businesses  and  to  promote  employability.  Partner  countries'  efforts  to  strengthen  respect  for 
the  rule  of  law  and  to  fight  corruption  will  also  have  a  positive  impact  on  the  business 
environment, facilitating increased foreign direct investment and technology transfer which in 
turn  stimulate  innovation  and  job  creation.  The  EU  will  pay  particular  attention  to  the 
challenge faced by countries emerging from political change – helping to organise initiatives 
such  as  investors’  conferences  to  clarify  national  investment  priorities  and  seek  to  build 
investors’ confidence. A powerful signal for investors and traders would also be an enhanced 
investment  protection  scheme.  The  Commission  will  explore  options  to  provide  legal 
security to investors in neighbouring countries. 

To provide additional support for SMEs the Commission will also discuss with the EIB and 
other stakeholders the possible role for the European Investment Fund4 in partner countries 
and  will  examine  measures,  including  guarantees  to  promote  direct  investment  from  EU 
SMEs and micro-credits.  

4 

The EIF has specific experience as a provider of risk financing to small and medium-sized enterprises 
(SME) in EU and enlargement countries and an extensive network of business contacts. It is therefore 
ideally placed to promote investments of EU SMEs in partner countries. 

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The Commission can also contribute to addressing high unemployment and poverty through 
pilot  programmes  supporting  agricultural  and  rural  development,  as  well  as  pilot 
regional development programmes, drawing on the EU's extensive experience in these fields.5 

The regional development programmes can contribute to addressing economic imbalances 
and  disparities  between  regions  that  undermine  the  capacity  of  a  country's  economy  as  a 
whole.  The  current  pilot  programmes  will  help  members  of  the  Eastern  Partnership  identify 
appropriate structures and activities to address these challenges, within their territories and if 
appropriate  cross-border  with  their  neighbours  in  the  region.  A  similar  approach  will  be 
explored for the southern neighbourhood. 

Policy  dialogue  will  continue  on  macro-economic  governance  and  budgetary  sustainability. 
This macro-economic dialogue will be enhanced with those partners that go furthest in their 
economic integration with the EU and be based on a review of macro-economic policies and 
key  structural  reforms.  This  will  be  accompanied  by  an  enhanced  dialogue  on  employment 
and social policies. 

The  Macro-Financial  Assistance  (MFA)  instrument  may  be  mobilised  to  assist  partner 
countries to address short-term balance-of-payments difficulties. In the short term this is most 
relevant  to  those  dealing  with  the  immediate  economic  and  social  impact  of  the  recent 
political  changes.  The  Commission  will  propose  a  Framework  Regulation  in  order  to  make 
the  decision-making  process  of  MFA  allocation  more  efficient,  provide  a  more  transparent 
legal basis for this instrument and refine some of its criteria.  

2.2. 

Strengthening trade ties 

We shall: 

• 

• 

negotiate Deep and Comprehensive Free Trade Areas with willing and able partners 

further develop trade concessions, especially in those sectors most likely to offer an 
immediate boost to partners’ economies 

Most of our neighbours rely on the EU as their main export market and import source. Trade 
in  goods  and  services  is  a  powerful  instrument  to  stimulate  economic  growth,  enhance 
competitiveness and support economic recovery. It is therefore essential that we establish with 
each of them mutually beneficial and ambitious trade arrangements matching their needs and 
their economic capacities. 

The  main  and  most  effective  vehicle  for  developing  closer  trade  ties  is  the  Deep  and 
Comprehensive Free Trade Area (DCFTA). DCFTAs provide for the gradual dismantling 
of trade barriers and aim for regulatory convergence in areas that have an impact on trade, in 
particular  sanitary  and  phytosanitary  rules  (SPS),  animal  welfare,  customs  and  border 
procedures, competition and public procurement. They are designed to be dynamic in order to 
keep pace with regulatory developments in the EU's Internal Market. For the most advanced 
partners,  a  DCFTA  can  lead  to  a  progressive  economic  integration  with  the  EU  Internal 
Market.  Through  progressive  approximation  of  EU  rules  and  practices,  DCFTAs  require  a 

5 

The  scope  of  the  European  Neighbourhood  Programme  for  Agriculture  and  Rural  Development 
(ENPARD) included in the Communication "Partnership for Democracy and Shared Prosperity with the 
southern Mediterranean" - COM(2011) 200 - will be expanded to also cover the eastern neighbourhood. 

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high  degree  of  commitment  to  complex  and  broad-ranging  reforms.  This  requires  strong 
institutional capacity. The reforms can be politically challenging and require the involvement 
of  the  business  community  as  well  as  other  interested  parties.  To  embark  on  negotiations, 
partner countries must be WTO members and address key recommendations enabling them to 
comply  with  the  resulting  commitments.  They  must  also  have  made  sufficient  progress 
towards common values and principles. 

Trade mostly relies on a bilateral approach between the EU and each partner. This allows the 
most  advanced  countries  to  move  faster  and  is  consistent  with  the  differentiation  principle. 
The  principle  is  also  consistent  with  the  long-term  vision  of  an  economic  community 
emerging between the EU and its ENP partners.6 Regional economic integration is important 
to  boost  trade  between  partners  and  develop  wider  economic  networks.  In  the  longer  term, 
such a community would be based on a common regulatory framework and improved market 
access  for  goods  and  services  among  ENP  partners  and  the  EU.  Such  an  approach  would 
consider  allowing  partners  that  have  a  fully  functioning  independent  judiciary,  an  efficient 
public administration and have made significant progress towards eradicating corruption, into 
the  non-regulated  area  of  the  Internal  Market  for  goods.  This  could  only  happen  once 
participating countries have reached a sufficient level of administrative and legal reliability. 

In the shorter term, for those partners not ready or willing to embark on DCFTA negotiations, 
other  measures  can  be  taken  to  boost  and  facilitate  trade.  Taking  into  account  the 
circumstances and level of ambition of each partner country, the EU will seek to extend trade 
concessions  in  existing  agreements  or  ongoing  negotiations,  notably  in  those  sectors  best 
positioned to provide an immediate boost to partners’ economies including asymmetry in the 
pace of liberalisation to take into account the circumstances of each partner country. Greater 
market access  for  goods  can be achieved through Agreements  on Conformity Assessment 
and  Acceptance  of  industrial  products  (ACAAs),  which  will  allow  free  movement  of 
industrial  products  in  specific  sectors  through  mutual  acceptance  of  conformity  certificates. 
The  ACAAs  aim  to  cover  all  sectors  where  the  legislation  is  harmonised  at  EU  level.  A 
partner having reached that stage would in fact become part of a free trade area for industrial 
products between the EU, the EEA and Turkey. Close cooperation with European bodies and 
organisations  in  the  areas  of  standardisation,  conformity  assessment,  and  metrology  can 
facilitate  ACAAs'  implementation.  In  order  to  speed  the  preparation  of  ACAAs,  the 
Commission  is  ready  to  enhance  the  technical  support  given  to  our  partners.  ACAAs  are 
likely to be signed with Tunisia and Egypt already in 2011.  

Further  progress  could  also  be  made  to  encourage  trade  flows  between  partner  countries  as 
well  as  with  the  EU.  The  rapid  implementation  of  the  new  Convention  on  pan-Euro-
Mediterranean preferential rules of origin will be one important element for the partners in the 
South.  The  Commission  will  examine  how  the  Convention  can  be  extended  to  other  ENP 
partners and will make appropriate proposals.  

The  EU  will  continue  to  support  reforms  to  help  partners  build  their  capacities,  through 
providing  public  sector  expertise,  including  through  Comprehensive  Institution-Building 
programmes or other mechanisms such as twinning and TAIEX7. This will help partners meet 

6 
7 

See COM(2006) 726, 4.12.2006, Strengthening the European Neighbourhood Policy. 
TAIEX  is  the  Technical  Assistance  and  Information  Exchange  instrument  managed  by  Commission 
services.  TAIEX  supports  partner  countries  with  regard  to  the  approximation,  application  and 
enforcement  of  EU  legislation.  It  is  largely  demand-driven  and  facilitates  the  delivery  of  appropriate 

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standards for food safety, animal and plant health and animal welfare and hence enhance their 
export potential. Likewise, in order to assist the agricultural sectors to modernise, the EU will 
offer  rural  development  programmes  so  as  to  assist  inter  alia  in  improving  agricultural  and 
food product quality. 

2.3. 

Enhancing sector cooperation 

We shall: 

• 

• 

enhance  sector  co-operation,  with  a  particular  focus  on  knowledge  and  innovation, 
climate change and the environment, energy, transport and technology 

facilitate  partner  countries'  participation  in  the  work  of  selected  EU  agencies  and 
programmes 

Enhanced  cooperation  can  take  place  in  all  sectors  relevant  to  the  Internal  Market,  ranging 
from social policy and public health to consumer protection, statistics, company law, research 
and  technological  development,  maritime  policy,  tourism,  space  and  many  others.  Co-
operation  and  exchange  will  be  stepped  up  significantly,  in  line  with  the  more-for-more 
approach, in the following areas:  

• 

• 

• 

8 

The EU will propose to neighbouring partners to work towards the development of a 
Common  Knowledge  and  Innovation  Space.  This  would  pull  together  several 
existing  strands  of  cooperation:  policy  dialogue,  national  and  regional  capacity-
building,  co-operation 
increased  mobility 
opportunities for students, researchers and academics. In parallel co-operation in the 
area  of  higher  education  will  be  expanded  through  increased  support  for  student 
and  academic  staff  mobility  within  university  partnerships  (under  Erasmus 
Mundus) and structured cooperation for university modernisation (through Tempus). 

in  research  and 

innovation,  and 

The EU will join up efforts with its neighbours on climate change by enhanced co-
operation  to  address  low-carbon  development  and  improve  resilience  to  climate 
impacts  (adaptation),  with  a  view  to  implementing  the  Cancun  agreement  and 
moving  towards  a  comprehensive  global  climate  regime.  The  EU  and  partner 
countries  should  also  pursue  a  higher  level  of  environment  protection8  aimed  at 
enforcing  higher  standards  of  air  and  water  quality,  improved  environmental 
governance,  higher  resource  efficiency,  protection  of  biodiversity  and  ecosystems 
and supporting the necessary infrastructure investments. 

Energy  co-operation  will  be  stepped  up  through  increased  energy  policy  dialogue 
aiming at further market integration, improved energy security based on converging 
regulatory  frameworks,  including  on  safety  and  environmental  standards,  the 
development  of  new  partnerships  on  renewable  energy  sources  and  energy 
efficiency, and  nuclear safety. In the medium term this  could  lead to extending the 
Energy  Community  Treaty  to  neighbours  not  yet  party  to  it  or,  building  on  its 

tailor-made  expertise  to  address  issues  at  short  notice;  http://ec.europa.eu/enlargement/taiex/what-is-
taiex/index_en.htm 
In  its  Communication  on  the  EU  2020  Initiative  “Resource  efficient  Europe”  COM(2011)21,  the 
Commission  highlighted  the  need  to  cooperate  closely  with  key  partners  including  those  in 
neighbourhood. 

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• 

• 

• 

experience,  establishing  a  complementary  “EU-Southern  Mediterranean  Energy 
Community”.  

The Commission will propose a new framework for transport co-operation, aiming 
at closer market integration in the transport sector, notably extending trans-European 
transport  networks  (TEN-Ts)  to  partner  countries,  addressing  administrative 
bottlenecks  with  a  focus  on  safety  and  security  issues  (including  issues  such  as  air 
and  rail  traffic  management  and  maritime  transport),  and  enhancing  co-operation 
with various EU transport agencies. 

The  Commission  also  supports  a  more  strategic  approach  and  cooperation  on 
maritime  affairs,  aiming  at  enhancing  cooperation  across  maritime  sectors  and 
allowing for sustainable economic development. 

Recent  developments  in  the  South  Mediterranean  countries  have  shown  the 
importance of information  and  communication technologies as tools for political 
and social change. Cooperation with partner countries will therefore be stepped up to 
support  the  development  of  a  digital  economy,  using  ICT  to  tackle  national  and 
global challenges.  

Finally,  the  EU  will  further  facilitate  partner  countries’  participation  in  the  work  of  EU 
agencies and the EU programmes which are open to them9. This has been on offer for some 
years and has led to some co-operation in areas such as drugs monitoring or aviation safety. 
The Commission will put together a list of programmes in which partners may participate as a 
matter of priority, with a focus on those offering opportunities for youth and people-to-people 
contacts.  It  will  also  support  partner  countries  in  fulfilling  the  legislative  pre-requisites  for 
participating in EU agencies and provide support for covering some of the associated costs of 
participation. 

2.4.  Migration and mobility 

We shall: 

• 

• 

• 

pursue  the  process  of  visa  facilitation  for  selected  ENP  partners  and  visa 
liberalisation for those most advanced 

develop existing Mobility Partnerships and establish new ones 

support the full use by Member States of opportunities offered by the EU Visa Code 

Mobility  and  people-to-people  contacts  are  fundamental  to  promoting  mutual  understanding 
and economic development. They are indispensable for trade, especially in services, as well as 
for  exchanging  ideas,  spreading  innovation,  tackling  employment  and  social  issues, 
establishing  strong  relationships  between  companies,  universities  and  civil  society 
organisations. 

Labour mobility is an area where the EU and its neighbours can complement each other. The 
EU’s  workforce  is  ageing  and  labour  shortages  will  develop  in  specific  areas.  Our 

9 

COM(2006) 724, 4.12.2006  

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neighbourhood  has  well-educated,  young  and  talented  workers  who  can  fill  these  gaps.  In 
attracting  this  talent,  the  EU  is  conscious  of  the  risks  of  brain  drain,  which  could  require 
additional mitigating support measures. 

Partner  countries  are  also  important  countries  of  origin  and  transit  for  irregular  migrants. 
Cooperation  on  fighting  irregular  migration  is  essential  to  reduce  the  human  suffering  and 
diminished security that is generated. Such cooperation will be one of the conditions on which 
Mobility partnerships will be based. 

The  ENP  aims  to  develop  a  mutually  beneficial  approach  where  economic  development  in 
partner  countries  and  in  the  EU,  well-managed  legal  migration,  capacity-building  on  border 
management,  asylum  and  effective  law-enforcement  co-operation  go  hand  in  hand.  This 
approach is in line with the three pillars of the EU Global Approach and the recently adopted 
Communication  on  migration10:  better  organising  legal  migration,  maximising  the  positive 
impact  of  migration  on  development,  enhancing  capacity-building  in  border  and  migration 
management.  The  promotion  and  respect  of  migrants'  rights  are  also  an  integral  part  of  the 
approach. 

Mobility Partnerships provide the comprehensive frameworks to ensure that the movement 
of  persons  between  the  EU  and  a  third  country  is  well-managed.  These  partnerships  bring 
together all the measures which ensure that mobility is mutually beneficial. They provide for 
better access to legal migration channels and to strengthen capacities for border management 
and  handle  irregular  migration.  They  can  include  initiatives  to  assist  partner  countries  to 
establish  or  improve  labour  migration  management,  including  recruitment,  vocational  and 
language  training,  development  and  recognition  of  skills,  and  return  and  reintegration  of 
migrants.11 With a view to enhancing the mobility of citizens between partner countries and 
the  EU,  in  particular  for  students,  researchers  and  businesspeople,  the  Commission  calls  on 
Member  States  to  make  full  use  of  the  opportunities  offered  by  the  EU  Visa  Code.  It  will 
examine ways to support them in this process and to monitor implementation. In this context 
the  possibilities  to  waive  the  visa  fee  and  to  issue  multi-entry  visa  to  the  categories  of  visa 
applicants referred to should be underlined. 

So  far  amongst  our  neighbours,  Mobility  Partnerships  have  been  established  with  the 
Republic  of  Moldova  and  Georgia.  The  Commission  believes  that  various  countries  in  our 
neighbourhood would be good candidates for such partnerships. The Commission will seek to 
conclude  negotiations  with  Armenia  and  prepare  for  the  launch  of  negotiations  with  e.g. 
Morocco, Tunisia and Egypt12.  

The EU will continue to assist Ukraine and Republic of Moldova in their efforts to implement 
visa liberalisation action plans. Along with the visa facilitation and readmission agreements in 
force  or  under  elaboration  with  Eastern  Partnership  countries,  the  EU  should  also  seek  to 
conclude  visa  facilitation  agreements,  simultaneously  with  readmission  agreements,  with 
partner countries in the South. All such agreements will require co-operation with the EU on 
migration, mobility and security. Specific measures will need to be taken to prevent irregular 
migration,  manage  their  borders  effectively,  ensure  document  security  and  fight  organised 

10 
11 

12 

COM(2011) 248 final, 4.5.2011 
The  Commission  will  finance  capacity-building  under  the  European  Neighbourhood  and  Partnership 
Instrument (ENPI). 
In line with the Communication on a Dialogue for migration, mobility and security with the southern 
Mediterranean countries - COM(2011)292/3 

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crime,  including  trafficking  in  human  beings  and  smuggling  of  migrants.  In  the  long-term, 
gradual steps towards visa liberalisation should be considered on a case-by-case basis, where 
conditions for well-managed and secure mobility are in place.  

Concerning  asylum,  the  EU  will  contribute  to  strengthening  international  protection  in  the 
region by continuing the implementation of the Regional Protection Programme for Belarus, 
Republic  of  Moldova  and  Ukraine.  Circumstances  allowing,  it  will  also  start  implementing 
the  Regional  Protection  Programme  for  Egypt,  Libya  and  Tunisia.  Other  initiatives  by 
individual  ENP  partners  in  this  area  will  also  be  supported.  Resettlement  of  refugees  in  the 
EU must be an integral part of the EU's efforts to support neighbouring countries confronted 
with significant refugee flows.  

3. 

TO  BUILD  EFFECTIVE  REGIONAL  PARTNERSHIPS  WITHIN  THE  EUROPEAN 
NEIGHBOURHOOD POLICY 

While fully recognising their diversity, the EU offers partnership to each individual neighbour 
through a single policy, based on mutual accountability. The eastern and southern dimensions 
of  the  ENP  seek  to  complement  that  single  policy  by  fostering  regional  cooperation  and 
developing regional synergies and responses to the specific geographic, economic and social 
challenges of each region. They build on the different historical legacies of past EU policies 
towards the regions. In the South, fifteen years of Euro-Mediterranean cooperation across all 
areas  of  the  relationship  have  been  complemented  recently  by  the  Union  for  the 
Mediterranean.  The  Eastern  Partnership  has  significantly  boosted  relations  between  the  EU 
and its eastern neighbours over the past two years. 

3.1. 

Strengthening the Eastern Partnership 

We shall: 

• 

• 

• 

• 

• 

• 

move to conclude and implement Association Agreements including DCFTAs 

pursue democratisation 

pursue the visa facilitation and liberalisation process 

enhance sectoral cooperation, notably in the area of rural development 

promote benefits of the Eastern Partnership to citizens 

increase work with civil society and social partners. 

The  establishment  of  the  Eastern  Partnership  (EaP)  has  strengthened  mutual  relations  with 
partner countries in Eastern Europe and the Southern Caucasus. It has helped to initiate and 
consolidate  a  difficult  process  of  change.  The  region  has  seen  general  progress  towards 
democracy over the past decade, including situations of regime change. The region continues 
to face major economic challenges – it is poor, with significant differences between individual 
countries, and susceptible to external factors and influences. 

The  degree  to  which  the  partners  have  addressed  key  elements  of  the  Eastern  Partnership 
varies (for example respect for universal values of democracy, human rights and the rule of 
law;  continuous  efforts  to  reform;  and  a  strengthened  focus  on  the  resolution  of  protracted 

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conflicts).  While  some  are  clearly  committed  to  reaching  its  full  potential,  others  have  only 
made piecemeal progress. The EU will ensure that partners most advanced and committed to 
the democratic reforms that underpin the Eastern Partnership benefit the most from it. At the 
same  time,  Eastern  Partnership  instruments  need  to  be  better  tailored  to  the  situations  of 
individual  countries,  based  on  experience  following  this  first  phase  of  implementation  – 
notably by identifying tools to bridge the long period required to negotiate far-reaching and 
complex Association Agreements. 

Association  Agreements  (AAs),  most  of  which  include  DCFTAs,  offer  each  Eastern 
Partnership  country  the  opportunity  to  choose  the  level  of  ambition  it  wishes  to  pursue  in 
driving forward integration and reform. With sustained commitment and support by the EU, 
partner  countries  can  use  the  Agreement  for  regulatory  and  institutional  convergence.  They 
include  alignment  with  EU  laws,  norms  and  standards  leading  progressively  to  economic 
integration in the internal market.  

Association  Agreement  negotiations  have  started  with  five  partner  countries  and  provide  a 
sound  political  basis  for  advancing  relations.  DCFTA  negotiations  within  the  framework  of 
the AA have started with Ukraine and will start with other partners as relevant conditions are 
met. In spite of their relatively small size, and therefore the limited trade exchanges between 
Eastern Partnership countries and the EU, DCFTAs are of high priority for the EU as efficient 
tools to reinforce the political and economic links between the EU and its Eastern neighbours. 
In  order  to  help  partner  countries  develop  the  administrative  capacity  required  for  in-depth 
reforms, the Eastern Partnership also provides for Comprehensive Institution-Building (CIB) 
programmes.  To  complement  this,  Pilot  Regional  Development  Programmes  are  the  newest 
EU  instrument  to  assist  partners  in  addressing  economic,  social  and  regional  imbalances. 
They  will  help  partners  to  establish  appropriate  structures  and  activities  to  address  regional 
challenges. 

Some EaP countries attach great importance to their European identity and the development 
of  closer  relations  with  the  EU  enjoys  strong  public  support.  The  values  on  which  the 
European  Union  is  built  –  namely  freedom,  democracy,  respect  for  human  rights  and 
fundamental freedoms, and the rule of law – are also at the heart of the process of political 
association and economic integration which the Eastern Partnership offers. These are the same 
values that are enshrined in article 2 of the European Union Treaty and on which articles 8 
and 49 are based. 

People-to-people  contacts  are  an  important  part  of  the  partnership.  The  EU  will  continue  to 
assist Ukraine and the Republic of Moldova in their efforts to implement visa liberalisation 
action plans. These Plans could become models for other Eastern Partnership countries. In the 
meantime,  Eastern  Partnership  countries  should  fully  exploit  opportunities  offered  by  visa 
facilitation. 

Eastern  partners  have  benefited  from  five  flagship  initiatives13  in  the  areas  of  border 
management,  SME  development,  energy  cooperation,  civil  protection  and  environmental 
governance.  These  programmes  will  now  be  adapted  to  better  support  bilateral  partnership 
objectives. For example, work under the Integrated Border Management flagship initiative is 
increasingly geared towards supporting partners in fulfilling the conditions for visa facilitation 

13 

These  are:  Integrated  Border  Management;  Small  and  Medium  Enterprises;  Regional  Electricity 
Markets, Energy Efficiency and Renewable Energy Sources; Prevention, Preparedness and Response to 
Natural and Man-made Disasters; Environmental Governance. 

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14 

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and liberalisation. Boosting the visibility of the Eastern Partnership's bilateral and multilateral 
activities is important to explain their benefits to the general public. To help increase regional 
solidarity, the EU should develop its support for sub-regional cooperation that concentrates on 
specific  subjects  involving  fewer  partners.  The  multilateral  framework  has  to  be  used  more 
strategically  to  advance  bilateral  relations  between  our  partners,  including  in  the  area  of 
conflict resolution. 

In  line  with  the  aim  of  the  renewed  ENP  to  focus  on  links  between  societies,  the  EU  will 
promote  more  intensive  engagement  with  stakeholders,  including  parliaments  in  the 
framework  of  EURONEST,  established  by  the  European  Parliament;  regional  actors  in 
cooperation with the Committee of the Regions; business leaders, in the frame of an Eastern 
Partnership  Business  Forum;  and  civil  society  and  social  partners  building  on  the  Eastern 
Partnership Civil Society Forum and its national platforms. 

Co-operation under the Eastern Partnership will continue with policy dialogue in areas such 
as:  

• 

• 

• 

• 

• 

• 

• 

• 

14 

education,  youth  and  culture:  expanding  participation  in  programmes  such  as 
Erasmus Mundus, Tempus, Youth in Action and eTwinning; opening of future new 
EU programmes such as Lifelong Learning to Eastern Partnership countries; follow-
up of the Special Action Culture Programme 2009-10 and of the Eastern Partnership 
Culture Programme; 

transport: connecting infrastructure networks of the EU and its Eastern partners; 

energy,  environment,  climate  change: 
the 
establishment of the Eastern Europe Energy Efficiency and Environment Partnership 
(E5P),  and  accession  to  the  European  Energy  Community  Treaty  by  Ukraine  and 
Republic of Moldova in order to strengthen co-operation on energy security; 

intensified  dialogue, 

following 

knowledge sharing, research and information society: full integration of the research 
and education communities in the region within the e-infrastructure (e.g. the GÉANT 
pan-European data network for networking, and the European Grid Infrastructure for 
grids and distributed computing). 

customs  and  law  enforcement  issues  on  the  basis  of  Strategic  Frameworks  for 
Customs Cooperation with Ukraine, Republic of Moldova and Belarus as well as co-
operation in the area of fight against smuggling; 

rural development measures (in line with the European Neighbourhood Programme 
for Agriculture and Rural Development); 

employment and social policies; 

justice,  freedom  and  security  on  the  basis  of  the  Justice  and  Home  Affairs  Eastern 
Partnership  Action  Plan  to  be  presented  later  this  year  under  the  Stockholm 
Programme14, including mobility partnerships; 

Action Plan Implementing the Stockholm Programme - COM(2010) 171: 
http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2010:0171:FIN:EN:PDF.  

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• 

Common Security and Defence Policy (CSDP). 

EU Member States, third countries and International Financial Institutions (IFIs) have shown 
interest in furthering the goals of the Eastern Partnership and supporting projects of strategic 
importance.  Additional  resources  are  being  mobilised  from  the  Neighbourhood  Investment 
Facility  (NIF),  bilateral  partners  and  IFIs,  in  particular  the  EIB,  the  EBRD  and  the  World 
Bank. Such co-operation should be pursued dynamically, building on the establishment of the 
SME  Facility,  the  EIB's  Eastern  Partners  Facility  and  its  Eastern  Partnership  Technical 
Assistance Trust Fund to which the EU and Member States are invited to contribute. 

The Eastern Partnership Information and Co-ordination Group gathers IFIs and third countries 
interested  in  donor  coordination  and  more  generally  in  the  development  of  Eastern 
Partnership,  including  Canada,  Japan,  Norway,  Russia,  Switzerland,  Turkey  and  the  USA. 
This informal co-operation will be intensified in line with the interests of Eastern Partnership 
partners. 

The second Eastern Partnership Summit will take place in September 2011 in Warsaw. The 
European Commission and the High Representative will subsequently put forward a roadmap 
to guide the future implementation of the Eastern Partnership, drawing on the results of the 
Summit. 

3.2. 

Building the Partnership for Democracy and Shared Prosperity in the Southern 
Mediterranean 

We shall: 

• 

• 

• 

• 

• 

• 

• 

undertake  Comprehensive  Institution-Building  programmes  similar 
implemented with the eastern partners 

to 

those 

launch  a  dialogue  on  migration,  mobility  and  security  with  Tunisia,  Morocco  and 
Egypt (as a first step towards a Mobility Partnership) 

strengthen Euro-Mediterranean industrial cooperation 

launch pilot programmes to support agricultural and rural development 

focus  the  Union  for  the  Mediterranean  on  concrete  projects  with  clear  benefits  to 
populations of the Mediterranean region  

advance sub-regional cooperation 

enhance dialogue on employment and social policies 

The ENP must provide an ambitious response to the momentous changes currently ongoing in 
the  Southern  Mediterranean  region.  The  joint  Communication  on  a  Partnership  for 
Democracy  and  Shared  Prosperity  in  the  Southern  Mediterranean15,  issued  on  8  March 
outlined  first  elements  of  the  EU’s  offer  of  a  new  partnership  with  partners  engaged  in 
building democracies and extensive  reforms. The three  main directions along which the EU 
intends  to  further  develop  its  relations  with  its  Mediterranean  partners  are  carried  over  into 

15 

COM(2011) 200. 

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this  communication:  democratic 
institution-building;  a  stronger 
transformation  and 
partnership  with  the  people;  and  sustainable  and  inclusive  economic  development.  Through 
its  different  policies  and  instruments,  the  partnership  will  be  comprehensive  and  wide,  but 
will  be  more  clearly  differentiated  according  to  the  specific  needs  as  well  as  the  level  of 
ambition of each partner. The EU is already engaged in a process of strengthening relations 
with a number of partners, notably through granting "advanced status"16. 

Those partners that want to establish a Partnership for Democracy and Shared Prosperity with 
the  EU  are  expected  to  make  progress  on  the  key  elements  highlighted  in  section  1.1.  The 
long-term vision for our most advanced Mediterranean partners is close political association 
with  the  EU  and  economic  integration  into  the  Internal  Market.  In  the  short  term,  the 
following options will be available to partners making progress on reforms. 

To  support  democratic  transformation,  Comprehensive  Institution-Building  programmes 
similar  to  those  implemented  with  its  Eastern  neighbours  will  be  set  up:  they  will  provide 
substantial expertise and financial support to build the capacity of key administrative bodies 
(customs,  enforcement  agencies,  justice)  and  will  be  targeted  in  priority  towards  those 
institutions most needed to sustain democratisation.  

To  build  a  stronger  partnership  with  people,  the  Commission  will  launch  a  dialogue  on 
migration, mobility and security with e.g. Tunisia, Morocco and Egypt (as a first step towards 
a  Mobility  Partnership).  These  proposals  are  further  detailed  in  the  Communication  on 
migration,  mobility  and  security  in  the  southern  neighbourhood17.  School  co-operation 
(eTwinning),  student  and  academic  staff  mobility  within  university  partnerships  (Erasmus 
Mundus),  structured  cooperation  for  university  modernisation  (Tempus),  and  mobility  of 
Young  People  (Youth  in  Action)  will  also  be  expanded  to  provide  a  better  support  to  the 
youth. New initiatives may also be promoted in the field of culture.  

In  the  short  term,  to  build  sustainable  and  inclusive  economic  development,  the  EU  will 
step  up  efforts  to  enhance  the  trade  provisions  of  the  existing  Association  Agreements  by 
concluding  the  ongoing  negotiations  on  agriculture  and  those  on  services  and  the  right  of 
establishment. Selected southern neighbours will  also be given the opportunity to enter into 
preparations for future DCFTA negotiations. To accompany the structural adjustments linked 
to  market  opening  and  promote  inclusive  growth,  the  Commission  will  finance  pilot 
programmes  for  agricultural  and  rural  development  and,  drawing  on  the  experience  of  the 
Eastern Partnership, pilot regional development programmes.  

The  Commission  will  promote  industrial  cooperation  at  Euro-Mediterranean  level  by 
continuing  to  implement  the  Euro-Mediterranean  Charter  for  Enterprise,  by  adapting  the 
Charter to the needs of SMEs in line with the EU’s Small Business Act and by sharing good 
practices  and  opening  activities  and  networks  in  priority  sectors  (textiles,  tourism,  raw 
materials). It will enhance dialogue on employment and social policy and encourage effective 
social dialogue including through the Euro-Mediterranean Social Dialogue Forum. Regulatory 
cooperation on a regional level could facilitate trade exchanges and improve the investment 

16 

17 

The  advanced  status,  based  on  the  good  implementation  of  the  ENP  Action  Plan,  was  granted  to 
Morocco in 2008 and to Jordan in 2010. It could be extended to other ENP Southern countries making 
progress in reforms. Depending on the country it may entail the strengthening of political and security 
cooperation,  trade  concessions  and  greater  integration  in  the  EU  Internal  Market  and  additional 
financial support for reforms. It is based on a new and more comprehensive Action Plan. 
COM (2011) 292/3 

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climate.  The  development  of  an  efficient,  safe,  secure  and  sustainable  multi-modal  Trans-
Mediterranean Transport Network will also contribute to sustainable and inclusive economic 
development.  The  Commission  is  already  working  with  the  EIB  and  the  International 
Maritime  Organisation  to  identify  pilot  actions  to  improve  cooperation  between  maritime 
sectors in the Mediterranean. 

The Union for the Mediterranean (UfM) which complements the bilateral relations between 
EU and partners should enhance its potential to organise effective and result-oriented regional 
cooperation.  It  further  ensures  the  inclusive  character  of  regional  cooperation  in  the 
Mediterranean  by  including  actors  such  as  Turkey  and  the  Western  Balkan  countries.  The 
High Representative and the Commission are ready to play a bigger role in the UfM in line 
with  the  Lisbon  Treaty.  Revitalising  the  UfM  requires  a  switch  to  a  more  pragmatic  and 
project-based  approach.  The  UfM  Secretariat  must  operate  as  a  catalyst  to  bring  states,  the 
EIB,  International  Financial  Institutions  and  the  private  sector  together  around  concrete 
economic  projects  of  strategic  importance  and  generating  jobs,  innovation  and  growth 
throughout  the  region.  Partner  countries'  participation  in  these  projects  could  follow  the 
principle  of  variable  geometry  depending  on  their  needs  and  interests.  Co-financing  for 
specific  infrastructure  projects  from  the  EU  budget  could  be  provided  through  the 
Neighbourhood  Investment  Facility.  In  the  current  economic  and  political  context,  flagship 
projects identified at the Paris Summit remain fully relevant, notably the Mediterranean Solar 
Plan, the de-pollution of the Mediterranean or the development of Motorways of the Sea and 
land  highways,  the  Mediterranean  Business  Development  Initiative.  To  support  sustainable 
development,  implementation  of  existing  regional  agreements  such  as  the  Barcelona 
Convention  for  the  Protection  of  the  Marine  Environment  and  Coastal  Region  of  the 
Mediterranean should be given greater priority. 

Finally, sub-regional co-operation involving fewer neighbours and concentrating on specific 
subjects can bring benefits and can create greater solidarity. Sub-regional cooperation in the 
Maghreb  could  be  advanced, 
through  supporting  greater  physical 
interconnection. The EU will put forward specific proposals in the near future, including on 
ways to support the possible opening of borders in the region.  

for  example 

4. 

A SIMPLIFIED AND COHERENT POLICY AND PROGRAMME FRAMEWORK 

4.1. 

Clearer priorities through stronger political steering 

We shall: 

•  Focus ENP Action Plans and EU assistance on a smaller number of priorities, backed with 

more precise benchmarks; 

Bilateral relations between the EU and each of its neighbours have become stronger in recent 
years. Close and intensive dialogue has developed not only on general political matters but on 
all  specific  areas  of  our  co-operation.  These  very  close  relationships  and  a  higher  level  of 
commitment  call  for  much  stronger  political  dialogue  and  co-operation.  The  Lisbon  Treaty 
provides  the  means  for  the  European  Union  to  deliver  coherent  and  consistent  policies  and 
programmes  by  bringing  together  strands  of  EU  foreign  and  assistance  policy  that  were 
previously run by different institutions. 

There  is  a  consensus  among  partner  countries  and  Member  States  that  more  substantive 
Association Councils would allow for more in-depth discussion at political level. But political 

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dialogue need not be reduced to a yearly discussion in the Association Council: more frequent 
and  more  ad  hoc  opportunities  should  be  envisaged  when  conditions  so  require.  A  more 
continuous  and  more  intimate  political  dialogue  is  key  to  establish  the  confidence  and  trust 
required  to  tackle  our  common  challenges.  In  addition,  the  Commission  intends  to  enhance 
dialogue on sectoral policies (such as energy, education, youth, migration and transport) with 
their Ministerial counterparts in partner countries. 

While  ENP  Action  Plans  remain  the  framework  for  our  general  cooperation,  the  EU  will 
suggest to partners that they focus on a limited number of short and medium-term priorities, 
incorporating  more  precise  benchmarks  and  a  clearer  sequencing  of  actions.  The  EU  will 
adapt  the priorities for its financial assistance accordingly. This list  of  priorities will set the 
political pace and help both the EU and each neighbour to produce key deliverables, within a 
mutually  agreed  timeframe.  This  will  also  allow  better  linking  of  policy  objectives  and 
assistance  programming.  Building  on  that  basis  programming  documents  can  be  simplified 
and focus on identifying Action Plan priorities requiring particular EU assistance. 

Further simplification of provision of financial assistance will also be sought in drafting the 
new European Neighbourhood Instrument (ENI) regulation in the context of the next multi-
annual  financial  framework,  in  order  to  translate  the  need  for  a  more  flexible  and  more 
focused delivery of financial assistance into practice. 

In  parallel,  the  EU  will  continue  to  report  on  an  annual  basis  on  progress  in  line  with  the 
Action  Plans.  Reports  will  put  greater  focus  on  democracy  and  a  stronger  link  between  the 
outcomes  measured  in  these  reports,  assistance  and  levels  of  financial  support  will  be 
developed over time. 

4.2. 

Funding 

We shall: 

• 

• 

• 

• 

re-focus  and  target  foreseen  and  programmed  funds  in  the  ENPI  as  well  as  other 
relevant external policy instruments in the light of this new approach 

provide additional resources of over EUR 1 billion until 2013 to address the urgent 
needs of our neighbourhood 

mobilize budgetary reinforcement from various sources 

swiftly proceed with submitting concurring budget proposals to the Budget Authority 
(transfers for 2011, Amending Letter for 2012, re-programming for 2013). 

Implementing the new approach of the neighbourhood policy based on mutual accountability 
and a shared commitment to the universal values of human rights, democracy and the rule of 
law requires additional resources of up to EUR 1242 million until 2013. These resources 
are  in  addition  to  the  EUR  5700  million  provided  under  the  European  Neighbourhood  and 
Partnership  Instrument  for  2011-2013.  In  the  event  of  new  emergencies,  funding  of  actions 
targeted  at  the  region  under  thematic  instruments  and  crisis  intervention  mechanisms  in  the 
EU budget constitute fresh resources. Financial support will be provided to further reinforce 
the partnership with people across the region, support sustainable and inclusive growth, cover 
the  additional  needs  stemming  from  the  democratic  transformation  of  partner  countries, 
advance  the  achievement  of  Millennium  Development  Goals  and  fund  the  new  initiatives 

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stemming  from  this  review,  notably  in  the  areas  of  partnership  with  societies,  rural  and 
regional development (see sections 3.1 and 3.2 above). This includes an amount of up to EUR 
250  million  stemming  from  reflows  from  older  loan  and  risk-capital  operations  to  be  made 
available  to  the  Facility  for  Euro-Mediterranean  Investment  and  Partnership  (FEMIP)  to 
promote growth and  employment by  financing new operations and to  support the long-term 
financing needs of SMEs. To that effect, the Council should adopt the Commission proposal 
to amend Article 23 of the ENPI regulation.  

These additional resources will be provided through reallocations from within Heading 4 of 
the  2007-2013  multi-annual  financial  framework,  and  by  making  use  of  the  unallocated 
margin  under  the  expenditure  ceiling  in  2012  and  -  to  the  extent  necessary  -  through  the 
Flexibility  Instrument.  The  Commission  will  submit  an  Amending  Letter  to  Draft  Budget 
2012 shortly.  

The Commission is currently reflecting on how best to integrate the overall country situation 
regarding democracy, accountability, the rule of law and sound financial management into its 
decisions  on  budget  support  arrangements,  and  will  outline  its  approach  in  the  upcoming 
Communication on budget support. This should also provide the necessary flexibility to tailor 
levels and types of support to each partner’s reform track record. 

4.3. 

Involving the EIB and EBRD 

We shall: 

• 

secure additional loan possibilities by the EIB and the EBRD, including an extension 
of the latter’s mandate to selected Southern partners 

To support large infrastructure projects that can help connect the EU with its neighbourhood, 
boost  development  and  address  key  energy,  environment  and  transport  challenges,  it  is 
important to ensure that the European Investment Bank and other regional development banks 
such  as  the  European  Bank  for  Reconstruction  and  Development  have  sufficient  financial 
resources. The Commission supports the increase in the external mandate of the EIB for both 
eastern  and  southern  neighbours  as  well  as  the  extension  of  the  EBRD  mandate  to  selected 
southern  Mediterranean  countries.  The  EIB  and  EBRD  can  deliver  on  EU  policy  objectives 
together  by  maximising  their  comparative  advantages.  EBRD  operations  in  the  Southern 
Mediterranean countries should support EU policy objectives and should not lead to a transfer 
of resources from operations in the EU Eastern Neighbourhood. 

The adoption of the revised EIB external mandate would provide for increased EIB lending 
under EU guarantee across the EU Neighbourhood. In particular, if the Council approves the 
additional lending envelope of EUR 1 billion proposed by the European Parliament, the EIB 
could  provide  almost  EUR  6  billion  to  the  Mediterranean  countries  over  2011-2013.  The 
necessary  funds  up  to  90  million  will  be  mobilised  to  provide  the  budgetary  guarantees 
needed to match the increase in EIB loans towards the Mediterranean region. 

4.4. 

Planning for 2013 and beyond 

We shall: 

• 

promote more flexible and simpler aid delivery under the post-2013 successor to the 
present ENPI; 

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• 

step  up  efforts  of  co-ordination  between  the  EU,  its  Member  States  and  other  key 
IFIs and bilateral donors. 

In its July 2010 conclusions on the ENP the Council acknowledged “the need to accompany 
market  opening,  economic  integration  and  regulatory  convergence  as  well  as  the  process  of 
strengthening  bilateral  relations,  throughout  the  neighbourhood,  with  appropriate  financial 
support,  technical  assistance  and  capacity  building”  and  indicated  that  it  “will  return  to  the 
issue  of  financial  support  in  the  context  of  discussions  on  the  next  multi-annual  financial 
framework”.  The  Commission  will  reflect  the  renewed  ENP  vision  and  medium  term 
objectives in its proposals for the post-2013 EU Multi-annual Financial Framework18. The key 
source of funding, the new European Neighbourhood Instrument (ENI), will provide the bulk 
of  financial  support  to  partner  countries,  essentially  through  bilateral,  regional  and  cross 
border co-operation programmes. Its level of funding will need to reflect the ambitions of the 
revised ENP. It should be increasingly policy-driven and provide for increased differentiation, 
more  flexibility,  stricter  conditionality  and  incentives  for  best  performers,  reflecting  the 
ambition  of  each  partnership  (e.g.  DCFTA  negotiations).  EU  assistance  could  also  be 
increasingly implemented by devolving it to partner countries provided that the financial rules 
of the Union are respected and EU financial interests protected. 

To maximise external support for the reform agenda agreed in the context of ENP the EU will 
step up efforts of co-ordination with EU Member States, other bilateral donors, the EIB, the 
EBRD and the international finance institutions. This can take the form of joint programming, 
joint  co-operation  initiatives  and  co-financing  programmes  and  projects.  To  improve  EU 
assistance co-ordination, the EEAS and Commission services will consider the possibility of 
launching pilot joint programming exercises with interested Member States in the countries of 
the southern neighbourhood undergoing democratic transition. 

CONCLUSIONS 

Our  neighbourhood  offers  great  opportunities  for  mutually  beneficial  integration  and  co-
operation, for example large and well-educated working populations, sizeable markets still to 
be developed, and win-win solutions in energy security. Cooperation with our neighbours is 
the only means to take on the challenges and threats that do not respect borders — such as 
terrorism, irregular migration, pollution of our common seas and rivers. It allows us to tackle 
sources of instability and conflict in the region. 

Several  neighbours  in  the  East  and  in  the  South  have  embarked  on  an  ambitious  path  of 
transition  during  the  last  decade.  They  need  support  to  consolidate  these  processes.  Others 
have  joined  the  process  only  recently.  They  also  need  our  urgent  assistance  and  they  can 
benefit from the lessons learnt by other partners. It is in the EU's own interest to support these 
transformation processes, working together with our neighbours to anchor the essential values 
and  principles  of  human  rights,  democracy  and  the  rule  of  law,  a  market  economy  and 
inclusive, sustainable development in their political and economic fabric.  

The new approach to the ENP set out in this Communication is a step in this direction. The 
Commission and the High Representative call on the Council and the European Parliament to 
endorse both its overall thrust and the concrete proposals it puts forward. We now intend to 

18 

The Commission’s proposals will be tabled later this year. 

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pursue our consultations with our neighbours on the best way to translate this new approach 
into each individual partnership. 

The  challenges  are  many,  and  fully  meeting  them  may  take  time.  What  we  are  aiming  for 
together  is  a  democratic,  prosperous  and  stable  region  where  more  than  800  million  people 
can live, work and shape their own country’s future, confident that their freedom, their dignity 
and their rights will be respected. 

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LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1 

Title of the proposal/initiative 

Joint  Communication  from  the  Commission  and  the  High  Representative  for  Foreign  and 
Security Policy: “A new response to a changing neighbourhood” 

1.2. 

Policy area(s) concerned in the ABM/ABB structure19  

External Relations 

1.3. 

Nature of the proposal/initiative  

(cid:133) The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action20  

X The proposal/initiative relates to the extension of an existing action  

(cid:133) The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objectives 

1.4.1.  The Commission's multiannual strategic objective(s) targeted by the proposal/initiative 

Europe in the World: pulling our weight on the global stage 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned 

ABM/ABB activity (ies) concerned 

19.08 European Neighbourhood Policy and relations with Russia 

Specific objectives relating to the A BM activity 

1. Furthering the conditions for close co-operation between the EU and its neighbours and for 
regional and multilateral integration; 

2.  Supporting  EU  neighbours  economic  and  sector  reforms  and  promote  further  integration 
with the EU and among neighbouring countries themselves; 

3. Promoting democracy, human rights and rule of law and contribute to conflict resolution in 
the EU’s neighbourhood.  

19 
20 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The strategic  review of the  European  Neighbourhood Policy (ENP) that was undertaken last 
year identified areas where the policy can be considerably strengthened. The revolutions and 
upheavals  in  the  Southern  Mediterranean  and  the  strong  aspirations  that  the  people  of  these 
countries have expressed for political and economic change make the EU’s support even more 
crucial than in the past, and point to areas where EU and Partner countries can and should do 
better.  Equally,  the  EU  remains  committed  to  durably  supporting  the  democratisation  and 
reform processes in the entire neighbourhood, east and south.  

The  Communication  on  the  “A  new  response  to  a  changing  neighbourhood”  sets  out  the 
proposals  emerging  from  the  ENP  strategic  review  and,  in  that  context  fleshes  out,  the 
approaches  towards  Eastern  Europe  and  the  Southern  Caucasus  through  the  continued 
implementation  of  the  Eastern  Partnership  and  towards  the  Southern  Mediterranean,  in  the 
context of the new “ Partnership for Democracy  and  shared  Prosperity”.  With  the  offer  of  a 
“Partnership for Democracy and shared Prosperity”, in particular, the EU seeks to support the 
democratic  transformation  initiated  in  Egypt  and  Tunisia,  and  that  may  extend  to  other 
countries of the southern Mediterranean. 

The new activities stemming from the review can be grouped in three main components:  

Component 1. Democratic transformation and institution-building (Relevant to the ABM 
specific objective 3 –above)  

transformation  and 

Support  democratic 
through  Comprehensive 
Institution  Building  programme  for  democratic  transformation  and  other  relevant  actions 
addressing  those  institutions  which  are  key  to  democratic  societies  and  assisting  in  the 
democratic reform of the security sector. 

institution-building 

Expected Results 

More respect for Human Rights and fundamental freedoms; 

Better democratic governance; 

A more independent and efficient judiciary; 

A lower level of corruption; 

Better democratic oversight on security sector;  

Enhanced mobility linked to better border and migration management;  

Legislation more in line with the EU acquis; 

Component  2.  Building  a  stronger  partnership  with  people  (Relevant  to  ABM  Specific 
objective n 1 – see above) 

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Build  a  stronger  partnership  with  the  people  by  expanding  contacts  between  students, 
researchers and young people. 

Increased  student  and  academic  staff  mobility  within  university  partnerships  (Erasmus 
Mundus) and structured cooperation for university modernisation (Tempus); 

Co-operation among schools initiated by opening the EU eTwinning programme; 

Increased contacts among young people; 

ENP  citizens  (including  in  breakaway  regions)  more  informed  about  the  achievements, 
opportunities and challenges of ENP.  

Component 3. Sustainable and inclusive growth and economic development (Relevant to 
ABM Specific objective n 2 – see above) 

Promote sustainable and inclusive growth by supporting SMEs and addressing economic and 
social disparities within a partner country through “pilot programmes” modelled on the EU 
Cohesion and Rural development policies 

Reduction of internal economic disparities; 

Increased employment; 

Development of SMEs; 

Enhanced vocational education and training; 

Improved livelihood of farming communities; 

Increased food security. 

Increased integration in the EU internal market through participation in EU programmes. 

1.4.4. 

Indicators of results and impact 

Specify the indicators for monitoring implementation of the proposal/initiative. 

Compliance  with  Human  Rights  and  Democratic  Standards  as  reported  by  NGOs,  UN  and 
regional bodies 

Adequately monitored democratic and credible elections;  

Level of corruption; 

Number of schools included in the eTwinning programme; 

Number of university students and researchers participating in Erasmus Mundus; 

Number of structured university co-operation projects; 

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Level of wealth of farming communities; 

Number of successful applications of ENP partners in EU programmes; 

More sustainable provision of affordable food in the ENP countries;  

Reduced level of economic and social disparities; 

Reduced level of unemployment. 

1.5. 

Grounds for the proposal/initiative 

1.5.1.  Requirement(s) to be met in the short or long term  

Policy Vision and Medium term goals 

The long-term vision underpinning the ENP is a neighbourhood in which each partner country 
develops  its  links  with  the  EU  as  far  as  its  own  aspirations,  needs  and  capacities  allow. 
Politically  this  includes  an  offer  for  closer  co-operation  with  the  EU,  including  more  joint 
initiatives in international fora on global issues of common interest. Economically, the EU is 
also  open  to  closer  economic  integration,  leading  to  progressive  economic  integration  in  the 
EU  internal  market.  It  also  supports  the  acceleration  of  inclusive,  sustainable  growth  in  our 
neighbours,  which  should  help  them  to  become  more  competitive,  create  decent  jobs  and  to 
reach  the  Millennium  Development  Goals.  The  EU  should  mobilise  the  full  range  of  its 
policies  according  to  mutual  needs  and  interests  and  to  each  country’s  reform  and 
democratisation commitments.  

The  goal  is  increased  mutual  commitment  to  the  political  and  economic  well-being  of  our 
citizens —both Europe’s and neighbouring countries’— as the best guarantee for our common 
stability  and  prosperity.  Such  a  vision  is  not  without  challenges.  For  partner  countries  the 
necessary reforms involve substantial costs and efforts before the benefits can be reaped. On 
the  EU  side,  it  is  important  not  to  jeopardise the  smooth  running  of  the  internal  market  and 
ensure that mobility takes place in a secure environment.  

In  the  course  of  the  next  four  to  five  years  partner  countries  taking  decisive  steps  towards 
political and economic reforms can expect to conclude an Association Agreement under the 
Eastern  Partnership  (East)  or  enter  in  a  Partnership  for  Democracy  and  Shared 
Prosperity  (South).  This  will  be  accompanied  by  enhanced  mobility  and  people  to  people 
contacts  (e.g.  including  through  the  possible  establishment  of  mobility  partnerships), 
economic  integration  through  industrial  cooperation,  SME  development,  Foreign  Direct 
Investment and increased trade relations with the EU (e.g. through the establishment of Deep 
and  Comprehensive  Free  Trade  Areas  and  the  conclusions  of  other  agreements,  e.g.  in 
agriculture,  services  and  establishment  or  Agreements  on  Conformity  Assessment  and 
Acceptance of Industrial products for priority sectors), deeper sector integration (e.g. through 
the integration in a pan-European energy market and the participation in EU programmes and 
agencies  in  accordance  with  the  opening  possibilities  granted  in  each  programmes  and  with 
the general guidelines regarding the participation in EU Agencies).  

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With  the  offer  of  Partnership  for  Democracy  and  shared  Prosperity21,  in  particular,  the  EU 
seeks  to  support  the  democratic  transformation  initiated  in  Egypt  and  Tunisia,  and  that  may 
extend  to  other  countries.  To  pursue  with  determination  the  process  of  democratic 
transformation  these  countries  need  support  to  reform  their  institutions  and  restart  economic 
growth. Their population also needs to see that the EU is ready to help in this challenging but 
difficult period of transformation 

Additional Funding 

Implementing the new approach of the neighbourhood policy based on mutual accountability 
and a shared commitment to the universal values of human rights, democracy and the rule of 
law,  will  require  additional  resources  of  up  to  EUR  1242  million  until  2013.  This  will 
include:  

a)  The  ENPI  legal  framework  is  well  placed  to  sustain  the  bulk  of  the  new  co-operation 
measures  that  have  been  identified  in  the  review.  For  this  reason,  the  Commission  proposes 
supplementing  the  ENPI  envelope  (EUR  750.5  million)  from  various  sources,  namely:  EUR 
355 million by re-deployment from other instruments' envelopes and – for the 2012 tranche – 
the margin of Heading 4 in DB 2012 (EUR 241.5 million) as well as EUR154 million from the 
Flexibility Instrument. The proposed increase can be implemented without formally revising 
the  ENPI  regulation  in  accordance with  point  37  of  the  Inter  Institutional  Agreement  on  the 
2007-13  financial  perspective,  as  it  represents  a  response  to  “new,  objective,  long-term 
circumstances … for which explicit and precise reasons are given, with account being taken of 
the results obtained from implementing the programme”. In as far as the current margin in DB 
2012  has  been  created  by  decreasing  certain  budget  lines  vis-à-vis  the  previous  Financial 
Programming,  the  proposed  arrangement  might  also  be  considered  "re-deployment".  More 
details will be submitted by means of an Amending Letter;  

b)  deploying  financing  from  other  instruments  such  us  the  European  Instrument  for  Human 
Rights and Democracy (EIDHR) (EUR 13.4 million for the years 2011-2012), the Non State 
Actors  Thematic  Programme  within  the  Development  co-operation  instrument  (EUR  3.8 
millions in 2011); 

c) deploying the Instrument for Stability (EUR 40 million)22; 

d) setting aside EUR 90 million to provide the necessary guarantee to leverage an extra billion 
of EIB lending in the Southern23; 

e) deploying the instrument of macro financial assistance EUR 100 million)24, 

21 
22 

23 

24 

COM(2011) 200, 8.3.2011 
The exact amount to be mobilised under the IfS will depend on identifying suitable projects. Should these projects 
amount to less than 40 million the balance will be transferred to ENPI.  
If the Council and Parliament agree to also increase the Eastern Neighbourhood ceiling in the context of the mid-
term review of the EIB external mandate, the necessary amount will be set aside for provisioning the Guarantee 
Fund.  It  should  be  noted  that,  in  line  with  Guarantee  Fund  Regulation  (Council  Regulation  (EC,  Euratom)  No 
480/2009), the necessary provisioning will take place over several years starting from 2013. 
The exact amount to be mobilised under the instrument will depend on the financing needs of the countries eligible 
to MFA, identified in the context of economic stabilisation and reform programmes implemented with the support 

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f)  allowing  EIB  to  reuse  reflows  from  old  operations  for  capital  investment  in  SMEs  (EUR 
244 million). 

The latter requires the Council to adopt the modification of Art.23 of the ENPI regulation. 

In  parallel,  the  existing  National  Indicative  Programmes  are  being  refocused  on  the  key 
objectives  of the new partnership and  EUR 150  million is being  reallocated  from within the 
ENPI envelope to support the new ENP Civil Society Facility and other actions to promote a 
stronger partnership with societies. 

Differentiation 

While all partner countries will benefit from activities aimed at strengthening the “partnership 
with  societies”  (component  2),  funding  under  the  other  two  components  will  be  allocated  to 
partner countries on the basis of a more for more approach based on mutual accountability.  

Increased  EU  support  will  depend  on  progress  in  building  and  consolidating  democracy  and 
respect for the rule of law. The more and the faster a country progresses in its internal reforms, 
the  more  support  it  will  receive  from  the  EU.  This  enhanced  support  will  come  in  various 
forms, including increased funding for social and economic development, larger programmes 
for  institution-building  (CIB),  greater  market  access,  increased  EIB  financing  in  support  of 
investments;  and  greater  facilitation  of  mobility.  These  preferential  commitments  will  be 
tailored  to  the  needs  of  each  country  and  to  the  regional  context.  They  will  recognise  that 
meaningful reform comes with significant upfront costs. For countries where reform has not 
taken place, the EU will reconsider or even reduce funding. 

1.5.2.  Added value of EU involvement 

The  proposal  should  be  seen  in  the  overall  context  of  a  renewed  European  Neighbourhood 
Policy  offering  to  partner  countries  closer  political  co-operation  and  deeper  economic 
integration in line with Art.8 of the Lisbon treaty. It rests on sharing with our neighbours the 
experiences  of  European  integration  and  progressively  involving  them  into  EU  policies. 
Because the EU offer is largely based on the integration in the EU internal market, the EU is 
better placed to provide such assistance than the Member States individually 

1.5.3.  Lessons learned from similar experiences in the past 

Five  country  evaluations  and  two  regional  evaluations  (MEDA  II  and  TACIS)  have  been 
conducted  on  past  assistance  to  neighbouring  countries.  The  main  sectors  covered  are: 
economic  development  (including  trade),  social  sector  (including  health  and  education), 
private sector, agriculture (including food security) and energy (including nuclear). 

Evaluations  have  shown  that  putting  under  the  same  umbrella  (the  ENPI)  bilateral  and 
regional  cooperation  with  countries  formerly  dealt  with  through  two  separate  regulations 
(TACIS and MEDA) has had a positive cross fertilisation effect, particularly when it comes to 

of the IMF. Should the amount of MFA programmes be less than 100 million the balance could be transferred to 
ENPI. 

EN 

28 

   EN 

 
                                                                                                                                                                        
aid delivery mechanisms in support of reforms. Building on the positive results of experiences 
under  MEDA25,  support  to  reforms  via  the  budget  has  significantly  increased  since  the 
introduction  of  ENPI  and  has  delivered  tangible  results,  promoted  reforms  and  helped 
strengthen policy dialogue with partner countries26. However the approach should be further 
refined to incorporate the increased focus on fundamental values and democratic governance. 
Efforts should also be made to further associate Civil Society to the design and monitoring of 
operations and enhance their visibility 

On the other hand the introduction of a new “tool box” based on the enlargement experience 
(TAIEX,  Twinning  and  more  recently  the  EaP  Comprehensive  Institution  Building 
Programmes)  has  increased  the  ENPI  capacity  to  deliver  institution  building  projects  and 
promote  regulatory  convergence  with  the  EU  acquis.  The  cross  border  co-operation 
component gave to ENPI a better mechanism to address co-operation among regions across a 
shared border. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

While  ENPI  is  the  main  instruments  through  which  EU  financial  co-operation  with  its 
neighbours  is  channelled,  ENP  countries  also  benefit  from  other  financial  instruments 
addressing specific policy issues (global challenges, Human Rights, Nuclear safety) or crisis 
situations  (macro-financial  assistance,  instrument  for  stability,  humanitarian  assistance 
instruments). 

Some of these instruments have recently been mobilized to respond to the emerging needs in 
EU’s  southern  neighbourhood  and  will  continue  to  be  used  in  support  of  the  transition 
processes in the Neighbourhood region.  

In  Tunisia,  a  2  M€  package  under  the  Instrument  fo r  Stability  was  adopted  to  support  1) 
political reform and the electoral process and 2) the independent civil society and the media. 
Further  support  to  civil  society  is  also  being  planned  under  the  European  Instrument  for 
Democracy  and  Human  Rights  (EIDHR)  in  areas  such  as  elections  observation  by  national 
civil society, training for political parties, support to freedom of expression and the promotion 
of  democratic  values,  and  human  rights  monitoring  capability  EUR  2  million.  Under  the 
Development  Co-operation  Instrument  thematic  programme  “Non  State  Actors  and  local 
authorities”  EUR  1.2  million  have  been  earmarked  for  Tunisia.  Finally  an  EU  electoral 
observation mission will be financed through the EIDHR (up to EUR 4 million).  

In  Egypt  EUR  2.9  million  will  be  allocated  under  the  European  Instrument  for  Democracy 
and  Human  Rights  (EIDHR),  to  support  actions  to  combat  torture,  improve  pre-detention 
conditions, and promote freedom of the media and freedom of belief. EUR 2.6 million will be 
allocated  under  the  “Non-State  Actors  and  Local  Authorities”  thematic  programme 
(Development Co-operation instrument) to promote Youth empowerment, women's rights and 
support to social and economic rights. 

25 
26 

Cf. main conclusions of the "Evaluation of the MEDA II Regulation and its implementation" (June 2009) 
As exemplified by the conclusions of the Evaluation of Budget Support operations in Tunisia (November 2010) 

EN 

29 

   EN 

 
                                                 
The Humanitarian assistance instrument (EUR 70 million) has been mobilised to address the 
consequences  of  the  internal  conflict  in  Libya  and  assist  refugees  and  displaced  people  and 
EUR 5 million stemming from the Emergency Aid Reserve have been channelled through the 
Civil protection mechanism has intervened to fund the repatriation of third country nationals.  

EN 

30 

   EN 

 
1.6. 

Duration and financial impact 

x Proposal/initiative of limited duration  

–  x  Proposal/initiative in effect from 2011 to 2013  

–  x  Financial impact from 2011 to 2013  

(cid:133) Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged27  

x Centralised direct management by the Commission  

x Centralised indirect management with the delegation of implementation tasks to: 

–  x  executive agencies  

–  (cid:133) bodies set up by the Communities28  

–  (cid:133)  national public-sector bodies/bodies with public-service mission  

–  (cid:133)  persons entrusted with the implementation of specific actions pursuant to Title V of the 
Treaty  on  European  Union  and  identified  in  the  relevant  basic  act  within  the  meaning  of 
Article 49 of the Financial Regulation  

(cid:133) Shared management with the Member States  

x Decentralised management with third countries  

x Joint management with international organisations (to be specified) 

Comments  

The  objectives  will  be  pursued  through  a  combination  of  measures  implemented  through  different 
management modes, notably: 

Institution  building  actions  will  be  mainly  implemented  through  direct  management  by  the 
Commission; 

Students and youth exchanges, university and school co-operation will mostly be implemented through 
the education, audiovisual and culture executive agency; 

27 

28 

Details  of  management  modes  and  references  to  the  Financial  Regulation  may  be  found  on  the  BudgWeb  site: 
http://www.cc.cec/budg/man/budgmanag/budgmanag_en.html 
As referred to in Article 185 of the Financial Regulation. 

EN 

31 

   EN 

 
                                                 
Pilot programme modelled on the cohesion and agriculture policy will be implemented either through 
centralised direct management or through decentralised management. 

Joint  management  with  international  organisations  can  be  used  for  specific  actions  (i.e.  supporting 
compliance with the Council of Europe Conventions). Delegated co-operation could also be envisaged 
in the interest of aid effectiveness and division of labour with Member States.  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules 

Specify frequency and conditions. 

The Commission will monitor progress of its external co-operation on all levels: 

input (in particular financial flows: commitments, contracts and payments);  

activities / outputs (project and programme execution, internal monitoring carried out on the 
spot by Commission Delegations); 

progress / outcome (external Results-Oriented Monitoring - ROM29) and impact; 

The programming of long-term external aid for partner countries and regions is carried out in 
the framework of the preparation of strategy papers (up to 7 years) and indicative programmes 
(3-4  years).  These  programming  documents  can  be  reviewed  at  any  time  to  re-adjust 
programming  priorities.  Indicative  programmes  include  the  specific  objectives  and  expected 
results for each area of co-operation. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

1) The lack of political and administrative stability in partner countries may lead to difficulties 
in designing programmes, delays in disbursing funds and loss of effectiveness; 

2)  The  lack  of  sufficient  administrative  credits  may  lead  to  lack  of  human  resources  for  the 
management of assistance; 

3)  The  poor  application  of  quality  standards  may  lead  to  poorly  designed  programme  and 
projects; 

4)  The  lack  of  circulation  of  information  may  hamper  the  resolution  of  problematic  issues 
related to aid management.  

29 

The  results-oriented  monitoring  system  (ROM)  allows  a  rapid  appreciation  of  a  project  or  programme’s 
performance,  as  well  as  of  its  wider  implications  and  provides  the  Commission  with  independent  advice  on  its 
project portfolio. Having one consistent approach ensures that the Commission has comparable data for all regions 
where it provides external assistance. 

EN 

32 

   EN 

 
                                                 
2.2.2.  Control method(s) envisaged  

Increase preparedness: identify the countries the most at risk, develop a country-specific Risk 
Management Plan, follow up the developments in those countries through several channels. 

Sufficient administrative credits: Detailed programming of administrative credits coming from 
both headings 4 and 5 of the Multi annual Financial Framework 2007-13. Adjust allocation of 
staff  resources  between  services  in  HQ  and  Delegations  based  on  needs  forecasting  and 
assessment  of  workload  vis-à-vis  quantifiable  criteria  whenever  possible  (e.g.  number  of 
contracts to be prepared). 

Implementation  and  observation  of  standards  &  requirements  before  and  after  the  Quality 
Support Group; Delegations and the relevant services in DG DEVCO to mobilise early in the 
process the needed expertise by remote and on the spot support. 

Improvement  of  system  -Data  quality  and  reporting:  timely  information  on  the  ongoing 
negotiations and ensure that all the problematic issues linked to aid management are already 
well identified and transmitted to those who are involved in the negotiations. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The  protection  of  the  European  Union’s  financial  interests  and  the  fight  against  fraud  and 
irregularities  form  an  integral  part  of  the  ENPI  Regulation.  Administrative  monitoring  of 
contracts  and  payments  will  be  the  responsibility  of  the  EU  Delegations  in  beneficiary 
countries. Each of the operations financed under this regulation will be supervised at all stages 
in the project cycle through the delegations30. Particular attention will be paid to the nature of 
expenditure  (eligibility  of  expenditure),  to  respect  for  budgets  (actual  expenditure)  and  to 
verify supporting information and relevant documentation (evidence of expenditure).  

30 

They shall authorise the Commission (OLAF) to carry out on-the-spot checks and inspections in accordance with 
Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996. 

EN 

33 

   EN 

 
                                                 
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget  line(s) 
affected  

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number  
[Description………………………...……
….] 

DA/NDA 
(31) 

from 
EFTA32 
countries 

from 
candidate 
countries33 

from third 
countries 

within the meaning 
of Article 18(1)(aa) 
of the Financial 
Regulation  

Heading of 
multiannual 
financial 
framework 

19.01.04.0
2  

ENPI 
Administrative Management 

Expenditure 

on 

19.08.01 

European  Neighbourhood  Policy  - 
Financial Co-operation  

NDA 

NO 

NO 

NO 

DA 

NO 

NO 

NO 

NP 

NP 

31 
32 
33 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 

EN 

34 

   EN 

 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial framework 

Heading 4 - External Relations  

2011 

2012 

213 

Total 

3.2. 

Estimated impact on expenditure EUR million (to 3 decimal places) 

Estimated Impact on Expenditure  

Operational Appropriations 

19.08.01 - European Neighbourhood Policy - 
Financial Co-operation 

Commitments 

Payments 

(1) 

(2) 

85,000 

383,750 

261,750 

730,500 

0,000 

115,125 

104,700 

219,825 

Appropriations of an administrative nature financed from the envelope of specific 
programmes (15) 

19.01.04.02 - ENPI Administrative credits 

(3) 

0,000 

11,750 

8,250 

20,000 

Total appropriations for DG DEVCO 

Total Operational Appropriations 

Commitments 
Payments 

Commitments 
Payments 

1+3 
2+3 

(4) 
(5) 

85,000 
0,000 

85,000 
0,000 

395,500 
126,875 

383,750 
115,125 

270,000 
112,950 

261,750 
104,700 

750,500 
239,825 

730,500 
219,825 

Appropriations of an administrative nature financed from the envelope of specific 
programmes 

0,000 

11,750 

8,250 

20,000 

Total Appropriations 

Commitments 
Payments 

85,000 
0,000 

395,500 
126,875 

270,000 
112,950 

750,500 
239,825 

(15). Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former "BA" lines), 
indirect research, direct research. 

EN 

35 

EN 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
  
  
  
  
  
  
  
 
  
  
  
  
  
  
 
  
  
  
  
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
3.2.1.  Estimated impact on operational appropriations  

–  (cid:133)  The proposal/initiative does not require the use of operational appropriations  

–  X  The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicate objectives and 
outputs  

Year - 2011 

Year - 2012 

Year - 2103 

TOTAL 

Commitment appropriations in EUR million (to 3 decimal places) 

(cid:216) 

Type of 
output 

Average cost 

Number 

of the output 

of outputs 

OUTPUTS 

Number 

Number 

Cost 

of outputs 

Cost 

of outputs 

Cost 

COMPONENT 1 - DEMOCRATIC TRANSFORMATION 
AND INSTITUTION BUILDING 

Comprehensive Institution 
Building Programmes * 

Programme 

Mobility Partnerships * 

Programme 

40 

8 

Sub-total for Component 1 

COMPONENT 2 - PARTNERSIP WITH PEOPLE 
0,035 

Student/year 

Erasmus Mundus- Student 
Mobility 
TEMPUS - University Co-
operation 

Projects 

0,9 

Youth - Projects 

Projects 

Other outputs 

0,02 

n.a 

Sub-total for Component 2  

COMPONENT 3 - SUSTAINABLE AND INCLUSIVE 
GROWTH AND ECONOMIC DEVELOPMENT 
40 
Pilot Cohesion 
Programmes 
Pilot Agriculture and Rural 
Development programmes 

Programme 

Programme 

30 

EN 

63 

10 

73 

45 

12.5 

17,5 

11,25 

86,25 

85 

110 

3 

3 

1000 

14 

875 

3 

6 

42 

10 

52 

35 

12.5 

17,5 

9,75 

74,75 

40 

65 

3 

3 

857 

6 

500 

3 

6 

20 

5 

25 

30 

5 

10 

5 

50 

0 

10 

3 

3 

1286 

14 

875 

3 

6 

36 

Total 
number 
of outputs 

Total 

cost 

3 

3 

125 

25 

150 

3143 

110 

33 

2250 

3 

6 

30 

45 

26 

211 

125 

185 

EN 

 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
Participation in EU 
Programmes** 

n.a. 

n.a. 

5,95 

5,95 

5,95 

5,95 

Sub-total for Component N°3 

TOTAL COST 

10 

85 

224,5 

383,75 

135 

261,75 

369,5 

730,5 

*Delivered in the form of multi-annual IB programme covering a period of three years. The average cost refers to 3 years. 
** Funding set aside to contribute to partner countries participation in EU programmes. The individual contribution depends on the programme and the country and cannot be estimated Most 
of the related human resources will be needed in delegations in the concerned beneficiary countries precisely at this stage 

N.B. It should be underlined that the breakdown of the activities and their allocations among components can only, at this stage, be indicative and the above outputs are based on initial 
estimates and been presented for illustrative purposes. 

EN 

37 

EN 

 
  
 
 
 
 
  
  
  
  
  
  
  
  
3.2.2. Estimated impact on appropriations of an administrative nature 

3.2.2.1.  Summary  

–  X  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  (cid:133)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
N 34 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as necessary 
to show the duration of the impact 
(see point 1.6) 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 535 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

34 
35 

Year N is the year in which implementation of the proposal/initiative starts. 
Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of  EU 
programmes and/or actions (former "BA" lines), indirect research, direct research. 

EN 

38 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.2.2.  Estimated requirements of human resources 

–  (cid:133)  The proposal/initiative does not require the use of human resources  

–  X  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

Estimate to be expressed in full amounts (or at most to one decimal place) 

Year 
2011 

Year 
2012 

Year 2013 

(cid:121) Establishment plan posts (officials and temporary agents) 

XX 01 01 01 (Headquarters and 
Commission’s Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)36 

XX 01 02 01 (CA, INT, SNE from the 
"global envelope") 

XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

19 01 04 02 37 

- at 
Headquarters38 

- in delegations  

0 

XX 01 05 02 (CA, INT, SNE - Indirect 
research) 

10 01 05 02 (CA, INT, SNE - Direct 
research) 

Other budget lines (specify) 

TOTAL 

131 

131 

92 

92 

The human resources required will be met by staff from the DG who are already assigned to 
management of the action and/or have been redeployed within the DG, together if necessary 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

Description of tasks to be carried out: 

Additional  staff  is  necessary  to  manage  the  additional  resources  and  implement  the  new 
initiatives  which  are  part  of  the  ENP  review.  The  nature  of  the  new  activities  to  be 
implemented  under  the  ENP  review  such  as  the  Partnership  for  Democracy  and  Shared 
prosperity,  (institution  building,  people  to  people  contacts  to  be  implemented  through 

36 

37 
38 

CA= Contract Agent; INT= agency staff ("Intérimaire"); JED= "Jeune Expert en Délégation" (Young 
Experts in Delegations); LA= Local Agent; SNE= Seconded National Expert;  
Under the ceiling for external personnel from operational appropriations (former "BA" lines). 
Essentially  for  Structural  Funds,  European  Agricultural  Fund  for  Rural  Development  (EAFRD)  and 
European Fisheries Fund (EFF). 

EN 

39 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
relatively  small  project,  support  for  civil  society  …)  requires  substantial  staffing  to  manage 
and supervise programmes. Most of the related human resources will be needed in delegations 
in  the  concerned  beneficiary  countries  and  at  the  Executive  Agency  for  Education, 
Audiovisual and Culture (for managing education, youth and culture programmes). 

In  as  far  as  additional  operational  funds  stem  from  redeployment  from  other  instruments' 
envelopes, 
the  related  administrative  support  expenditure  will  also  be  re-allocated 
accordingly.  The  administrative  appropriations  to  be  transferred  from  other  instruments' 
envelopes  amount  to  6,78M  €  in  2012  and  8,25M  €  in  2013.  These  account  for  the 
redeployment  of,  respectively,  some  76  full-time  equivalent  (FTE)  in  2012  and  92  FTE  in 
2013 from the other instruments. 

The Unit Cost for external staff in Delegations has been calculated at 88.937 €. which is the 
average of the estimated cost for a contract agent (134.120 €) and the estimated cost of a local 
agent (43.754 €) in the DB 2012 for budget line 19.010402. 

Officials and temporary agents 

External personnel 

131  FTE/year  in  2012  and  92  FTE/year  in  2013  for  a  total  cost  of  EUR  20  million 
(EUR 11.75 million in 2012 and EUR 8.25 million in 2013) 

3.2.3.  Compatibility with the current multiannual financial framework  

–  (cid:133)  Proposal/initiative is compatible the current multiannual financial framework. 

–  X  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

The  additional  funding  for  the  activities  identified  in  this  statement  will  be  largely 
financed  through  the  reprogramming  of  the  envelopes  of  the  external  relations 
instruments which are part of Heading 4 of the Multi-annual financial framework for 
the benefit of ENPI (both operational appropriations and administrative credits). 

For  2011,  the  bulk  of  the  additional  EUR  85  million  will  come  from  transfer  of 
resources from the Development Co-operation Instrument (EUR 51 million) from a 
reduction of the EU contribution to EBRD (EUR 34 million). 

For 2012 the additional EUR 395.5 million will come from: 1) the Heading 4 margin 
(EUR  241.5)  which 
the 
Development  Co-operation  Instrument  (EUR  89  million),  the  Instrument  for  Pre-
accession  Assistance  (EUR  60  million)  and  the  Instrument  for  Stability  (EUR  60 
million) and 2) the Flexibility Instrument (EUR 154 million).  

initially  programmed  for 

includes  appropriations 

For 2013, the additional EUR 270 million are foreseen to come through a transfer of 
resources  from  the  Development  Cooperation  Instrument  (EUR  100  million)  the 
Instrument  for  Pre-Accession  Assistance  (EUR  60  million),  the  Instrument  for 
Stability  (EUR  70  million);  and  redeployment  from  other  instruments  notably  the 
Common Foreign and Security Policy budget (EUR 40 million)39.  

39 

To  be  initiated  on  the  basis  of  the  proposal  of  the  High  Representative  and  in  accordance  with  the 
specific rules applying to the CFSP budget. 

EN 

40 

   EN 

 
 
                                                 
–  X  Proposal/initiative requires application of the flexibility instrument40. 

As  indicated  above,  the  provision  of  additional  resources  to  finance  the  activities 
described in this statement will require the mobilisation of the flexibility instrument 
in 2012 for EUR 154 million.  

The Commission will proceed swiftly with submitting the pertinent budget proposals 
to  the  Budget  Authority  (transfers  for  2011,  Amending  Letter  for  2012,  re-
programming for 2013). 

3.2.4.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties  

–  The proposal/initiative provides for the co-financing estimated below: 

Appropriations in EUR million (to 3 decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… enter as many years as 
necessary to show the duration 
of the impact (see point 1.6) 

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
cofinanced  

40 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

41 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  X  Proposal/initiative has no financial impact on revenue. 

–  (cid:133)  Proposal/initiative has the following financial impact: 

– 

– 

(cid:133) 

(cid:133) 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the ongoing 
budget 
exercise 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative41 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

… insert as many columns as necessary 
in order to reflect the duration of the 
impact (see point 1.6) 

For miscellaneous assigned revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

41 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 25% for collection costs. 

EN 

42 

   EN