COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA)REVISED MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2012-2013
Date: 2011-10-12
Institutions: European Commission
Subjects: Iceland, Türkiye, Western Balkans, cross-border cooperation, development aid, distribution of EU funding, pre-accession aid, regional development, rural development

EUROPEAN COMMISSION 

Brussels, 12.10.2011 
COM(2011) 641 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT AND THE COUNCIL 

INSTRUMENT FOR PRE-ACCESSION ASSISTANCE (IPA) 
REVISED MULTI-ANNUAL INDICATIVE FINANCIAL FRAMEWORK FOR 2012-
2013 

 
 
 
 
  
 
Introduction 

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

The MIFF is based on a rolling three-year programming cycle. Under normal circumstances, a 
MIFF for years N, N+1 and N+2 will be presented in the last quarter of year N-2 as part of the 
enlargement  package,  representing  a  proposed  financial  translation  of  the  political  priorities 
set out within the package itself, taking into consideration the Financial Framework. As 2013 
represents the last budgetary year of IPA, this MIFF covers only changes foreseen in the two 
last  years  of  the  current  multiannual  financial  framework,  i.e.  2012-2013.  It  indicates  the 
allocation of the envelope for pre-accession assistance by country and by component for these 
years, and also gives an indication of the multi-beneficiary programme envelope and support 
expenditure. 

As  in  previous  years,  the  MIFF  is  published  based  on  the  current  status  of  the  countries 
concerned  and  thus  does  not  at  this  stage  pre-empt  any  decision  by  the  Council  on  the 
Opinions  presented  with  the  enlargement  package  or  a  likely  date  of  accession  for  any 
candidate  country.  As  such,  it  reflects  the  change  of  status  of  Montenegro  which  became  a 
candidate country in December 20101, as well as the anticipated date of accession of Croatia 
on 1 July 2013. If any significant amendment to this MIFF would be needed before the next 
annual  revision  of  the  MIFF  in  autumn  2012,  the  Commission  would  publish  an  amended 
version at the appropriate time.  

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

Strategic Financial Programming  

1. 

ALLOCATION OF FUNDS BETWEEN COUNTRIES 

The  starting  point  for  allocations  in  2007  was  a  commitment  by  the  Commission  to  ensure 
that no beneficiary country would receive less in 2007 than they did in 2006 and furthermore 
that Bosnia and Herzegovina and Albania should receive no less than the annual average of 
the funding each received between 2004 and 2006. This latter point reflected the fact that the 
funding for these countries was frontloaded in 2004.  

1 

Opening  of  components  III,  IV  and  V  for  Montenegro  is  subject  to  the  adoption  by  the  Council  and 
European Parliament of the amendment to Regulation No 1085/2006 as proposed by the Commission 
(COM(2011)446 of 20 July 2011).  

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The  figures  for  2008  onwards  have  been  calculated  on  the  basis  of  per-capita  allocations 
which have been quoted in the past as a proxy for needs and impact. Against this measure, the 
per capita levels for each of the potential candidates of the Western Balkans increased during 
the course of  the current  financial framework to above the 2004-2006 per capita average of 
€23  (in  2004  prices)  received  under  CARDS.  The  global  breakdown  of  funds  between 
countries  has  been  respected  with  the  exception  of  Kosovo2  which  received  increased  IPA 
funding.  In  2008,  €60  million  were  granted  by  th e  budget  authority  as  part  of  a  wider 
mobilisation  of  new  funds  to  support  the  stability  and  development  of  Kosovo.  This  was 
supplemented  by  a  transfer  of  a  further  €60  mill ion  from  unused  macro-financial  assistance 
(MFA)  appropriations.  In  2009,  an  additional  € 40  million  was  committed  as  a  follow  up  of 
the Donors' Conference which took place in July 2008.  

For Croatia and the former Yugoslav Republic of Macedonia, as candidate countries, a level 
of over €30 per capita (in 2004 prices ) is allocated. This level is maintained across the period 
for Croatia. Given the expected accession date of Croatia on 1 July 2013, the allocation for 
Croatia  under  IPA  will  be  reduced  to  half  the  amounts  originally  foreseen,  except  for  rural 
development  where  the  full  2013  allocation  will  be  maintained  at  the  level  originally 
envisaged  for  2013.  The  Commission  will  present  a  proposal  for  a  revision  of  the  financial 
framework  for  2013  as  soon  as  the  Accession  Treaty  is  signed,  pursuant  to  point  29  of  the 
Interinstitutional  Agreement  of  17  May  2006  on  budgetary  discipline  and  sound  financial 
management.  For  the  former  Yugoslav  Republic  of  Macedonia,  the  funding  in  per  capita 
terms  continues  to  increase,  reflecting  a  minimum  level  of  funding  needed  for  building 
adequate administrations, irrespective of the size of the country. 

For Montenegro, the per capita levels of funding are higher  than for the potential candidate 
countries,  reflecting  a  minimum  level  of  funding  needed  for  adequate  administrations, 
irrespective of the size of the country. 

For  Turkey,  taking  into  account  the  size  and  absorption  capacity  of  the  country,  there  is  a 
gradual increase in per capita levels of assistance over the period 2007-2013. 

As  for  Iceland,  the  degree  of  its  alignment  with  EU  legislation  through  the  European 
Economic  Area  Agreement  and  its  level  of  economic  and  social  development  make  the 
country  an  exception  among  candidate  countries.  For  this  reason  it  was  agreed  that  the 
country  will  receive  IPA  assistance  exclusively  under  Component  I,  managed  by  the 
Commission. The funding covers three years and began in 2011.  

2. 

ALLOCATIONS BETWEEN COMPONENTS  

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

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

2 

Under United Nations Security Council Resolution 1244/99 

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

Components  III  to  V  are  accessible  only  to  candidate  countries  and  aim  to  prepare  these 
countries for the programming, implementation and management of Structural, Cohesion and 
Rural Developments Funds upon accession by approximating, to the greatest extent possible 
under  External  Aid  rules,  the  implementation  methods  of  these  funds.  Specifically, 
component III, Regional Development, emulates to the greatest extent possible the ERDF and 
Cohesion Fund. Component IV, Human Resources Development prepares candidate countries 
for  the  European  Social  fund,  in  the  framework  of  the  European  Employment  Strategy. 
Component V, Rural Development, helps the candidate countries prepare for post-accession 
EU-funded rural development programmes by implementing pre-accession assistance through 
systems which are as similar as possible to those required post accession. 

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

3. 

OTHER ALLOCATIONS  

Support expenditure 

This envelope covers the administrative costs directly linked to the implementation of IPA.  

Multi-beneficiary programme allocations 

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

inter  alia 

Multi-beneficiary  programmes  support, 
the  Regional  School  for  Public 
Administration,  the  Central  European  Free  Trade  Agreement  (CEFTA),  the  Regional 
Cooperation  Council  (RCC),  fight  against  organised  crime,  ERASMUS  scholarships  and 
higher  education.  They  also  provide  a  basis  for  the  Civil  Society  Facility  which  combines 
support  from  both  the  national  and  multi-beneficiary  IPA  programmes.  Institution-building 
for  the  Western  Balkans,  Turkey  and  Iceland  is  supported  via  the  TAIEX  instrument,  and 
allocations are made for audits and evaluation of regional and national programmes, as well as 
for information and communication activities. Investment needs for SMEs, energy efficiency 
and  infrastructure  development,  delivered  in  close  collaboration  with  the  European 
Investment  Bank  and  other  International  Financial  Institutions  (IFIs),  will  continue  to  be 
supported with a substantial part of the regional and horizontal allocation. This support will 
be coordinated under the Western Balkan Investment Framework, set up at the end of 2009 to 
enhance  coordination  and  cooperation  among  donors  and  IFIs  actively  engaged  in  the 

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Western Balkans. From 2010, part of component II, namely the participation of countries in 
ERDF  trans-national  programmes  "  Mediterranean"  and  "South-East  Europe"  is  also 
implemented on a multi-beneficiary basis for ease of implementation. 

Presentation of the figures 

The  following  table  provides  the  above  figures  in  current  prices  and  in  Euro.  It  shows  the 
allocations by country and by component, as well as for the multi-beneficiary programme and 
support  expenditure.  The  final  commitment  figures  for  previous  years  as  well  as  updated 
figures for 2011 are included for ease of reference. 

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Revised Multi-Annual Indicative Financial Framework: Breakdown of the Instrument for Pre-Accession Assistance envelope for 2012-2013 into allocations by country and component 

Component 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

Candidate countries 

CROATIA 
Transition Assistance and 
Institution Building  

Cross-border Co-operation 

Regional Development 

Human Resources 
Development 

Rural Development 

TOTAL 

49,611,775 

45,374,274

45,601,430

39,483,458 

39,959,128

39,969,161

19,256,943

9,688,225 
45,050,000 
11,377,000 

14,725,726
47,600,000
12,700,000

15,898,570
49,700,000
14,200,000

15,601,136 
56,800,000 
15,700,000 

15,869,158
58,200,000
16,000,000

16,442,542
57,578,127
16,040,000

8,499,192
31,000,000
9,000,000

25,500,000 
141,227,000 

25,600,000
146,000,000

25,800,000
151,200,000

26,000,000 
153,584,594 

26,500,000
156,528,286

26,151,182
156,181,012

27,700,000
95,456,1353

FORMER YUGOSLAV REPUBLIC OF MACEDONIA 
Transition Assistance and 
Institution Building  

41,641,613 

41,122,001

39,310,500 

36,917,068 

28,803,410

27,209,161

27,941,228

Cross-border Co-operation 

4,158,387 

4,077,999

4,371,501

4,467,526 

5,124,876

5,033,373

5,243,041

Regional Development 

Human Resources 
Development 

Rural Development 

TOTAL 

7,400,000 
3,200,000 

12,300,000
6,000,000

20,800,000
7,100,000

29,400,000 
8,400,000 

39,300,000
8,800,000

41038532
10,380,000

51,800,000
11,200,000

2,100,000 
58,500,000 

6,700,000
70,200,000

10,200,000
81,782,001 

12,500,000 
91,684,594 

16,000,000
98,028,286

18,221,815
101,882,881

21,028,000
117,212,269

3 

50% of the initial 2013 allocation for Components I to IV and 100% of the initial allocation for Component V  

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Component 
ICELAND 
Transition  Assistance  and 
Institution Building 

TOTAL 

MONTENEGRO 
Transition Assistance and 
Institution Building  

2007 

2008 

2009 

2010 

2011 

2012 

2013 

12,000,000

12,000,000

6,000,000

12,000,000

12,000,000

6,000,000

27,490,504 

28,112,552

29,832,1794 

29,838,823 

29,843,599

16,346,471

5,238,958

Cross-border Co-operation 

3,909,496 

4,487,448

4,667,821

3,682,690 

4,310,344

4,588,551

4,418,687

Regional Development 

Human Resources 
Development 

Rural Development 

TOTAL 

31,400,000 

32,600,000

34,500,000 

33,521,513 

34,153,943

8,000,000
2,800,000

3,300,000
35,035,022

15,200,000
2,957,077

7,600,000
35,414,722

TURKEY 
Transition Assistance and 
Institution Building  

256,702,720 

256,125,297

239,550,810

217,809,826 

231,268,023

227,499,161

246,281,891

4 

Includes €1.2 million additional funds recovered from previous programmes. 

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Cross-border Co-operation 

2,097,280 

2,874,709

3,049,190

3,090,174 

5,131,977

2,174,617

2,218,109

Regional Development 

Human Resources 
Development 

Rural Development 

TOTAL 

ALBANIA 
Transition Assistance and 
Institution Building  

167,500,000 
50,200,000 

173,800,000
52,900,000

182,700,000
55,600,000

238,100,000 
63,400,000 

293,400,000
77,600,000

356,836,341
83,930,000

378,000,000
96,000,000

20,700,000 
497,200,000 

53,000,000
538,700,006

85,500,000
566,400,000

131,300,000 
653,700,000 

172,500,000
779,900,000

189,785,003
860,225,122

213,000,000
935,500,000

Potential candidates 

54,318,790 

65,237,7565

71,360,000 

84,200,0006 

84,301,650

84,290,995

87,446,037

Cross-border Co-operation 

TOTAL 

6,681,210 
61,000,000 

8,582,244
73,820,000 

9,822,921
81,182,921 

9,973,173 

94,173,173 

10,126,636
94,428,286

10,283,169
94,574,164

10,666,232
98,112,269

BOSNIA AND HERZEGOVINA 
Transition Assistance and 
Institution Building  

58,136,394 

69,854,783

83,900,000 

100,688,099 

102,681,861

102,670,995

106,870,228

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Includes €3.12 million additional funds recovered from previous programmes. 
Includes €1.5 million additional funds recovered from previous programmes. 

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Cross-border Co-operation 

TOTAL 

3,963,606 
62,100,000 

4,945,217
74,800,000

5,207,746
89,107,746 

4,696,495 
105,384,594 

4,746,425
107,428,286

5,197,353
107,868,348

4,942,041
111,812,269

SERBIA 
Transition Assistance and 
Institution Building  

Cross-border Co-operation 

TOTAL 

KOSOVO 
Transition Assistance and 
Institution Building  

Cross-border Co-operation 

181,496,352 

179,441,314

182,551,643

186,206,679 

190,556,810

190,000,995

203,101,005

8,203,648 
189,700,000 

11,458,686
190,900,000

12,248,357
194,800,000

11,751,753 
197,958,432 

11,322,790
201,879,600

12,097,244
202,098,239

11,630,694
214,731,699

68,300,000 

184,700,000

106,100,000

66,100,000 

66,900,000

65,870,995

70,712,269

0 

0

0

1,200,000 

1,800,000

2,929,148

2,987,731

TOTAL 

68,300,000 

184,700,000

106,100,000

67,300,000 

68,700,000

68,800,143

73,700,000

Component 
TOTAL COUNTRY PROGRAMMES 

2007 

2008 

2009 

2010 

2011 

2012 

2013 

1,109,427,000  1,311,720,006 1,305,072,668 1,397,306,900  1,553,046,687 1,638,664,931 1,687,939,363

MULTI-BENEFICIARY PROGRAMMES  
Transition Assistance and 
Institution Building  

1295710007 

137,736,6448 

188,867,5369  141,706,55110 

186,269,100 

176,246,613 

177,845,477 

7 

Includes €20.6 million additional funds recovered from previous programmes. 

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Cross-border Co-operation 

0 

0

0

4,921,679 

5,293,313

5,672,378

6,059,026

SUPPORT EXPENDITURE 

44,793,000 

51,950,000

47,648,000

47,393,000 

52,183,900 

55,410,600

84,500,000

GRAND TOTAL 

1,263,200,000  1,501,406,650 1,541,588,204 1,591,328,130  1,796,793,000 1,875,994,522 1,956,343,866

Figures are in Euro at current prices  

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Includes €2.0 million additional funds recovered from previous programmes. 
Includes €22.8 million additional funds recovered from previous programmes. 
This includes a reduction of €29 million for the food security f acility which will be paid back in 2011 (€14 million), 2012 (€ 6 million) and 2013 (€9 million). The funds paid 
back in these years will be used for the allocation to Iceland. The figure also includes €2.7 million additional funds recovere d from previous programmes. 

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