Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing common rules and procedures for the implementation of the Union's instruments for external action
Date: 2011-12-07
Institutions: European Commission
Subjects: EU aid, EU financing, EU programme, European neighbourhood policy, development policy, foreign policy, human rights, nuclear safety

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 842 final 

2011/0415 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing common rules and procedures for the implementation of the Union's 
instruments for external action 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

A  priority  for  the  Commission  within  the  context  of  the  Multiannual  Financial  Framework 
(MFF)  is  to  simplify  the  regulatory  environment  and  facilitate  the  availability  of  Union 
assistance  to  partner  countries  and  regions,  civil  society  organisations,  SMEs,  etc.  to  the 
extent that they contribute to the objectives of the Regulation.  

In  the  implementation  of  the  new  Instruments,  simplified  and  flexible  decision-making 
procedures would allow a swifter adoption of implementing measures and thus of delivery of 
EU assistance, in particular for countries in crisis, post-crisis and fragility.  

Furthermore,  the  revision  of  the  Financial  Regulation,  which  is  particularly  substantial  with 
regard  to  the  special  provision  on  external  actions,  will  facilitate  the  participation  of  civil 
society  organisations  and  small  businesses  in  funding  programmes,  for  example  by 
simplifying rules, reducing the costs of participation and accelerating award procedures. The 
Commission intends to implement this Regulation using the new flexible procedures provided 
for in the new Financial Regulation. 

Against  this  background,  the  Commission  proposes  a  set  of  simplified  and  harmonised 
implementing  rules  and  procedures  applicable  to  four  geographic  instruments,  i.e.  the  DCI, 
ENI, IPA, and PI, and to the three thematic instruments IfS, EIDHR, and INSC. In the case of 
the  IPA  and  ENI,  however,  the  special  characteristics  of  pre-accession  and  cross-border 
cooperation  will  require  additional  and  specific  implementing  rules  and  procedures 
complementing  as  'lex  specialis'  the  common  set  provided  by  the  Common  Implementing 
Regulation.  

Both the EDF and the  Greenland  Decision will remain outside  the scope  of  that Regulation 
given the specificity of their funding mechanisms.  

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Public Consultation 

The Commission held a public consultation on future funding for EU external action between 
26 November 2010 and 31 January 2011. This process was based on an online questionnaire 
accompanied  by  a  background  paper  'What  funding  for  EU  external  action  after  2013?'.  In 
general,  the  replies  did  not  suggest  the  need  for  a  substantial  change  in  the  current 
implementing  mechanisms,  although  a  significant  majority  of  respondents  supported 
increased flexibility and simplification in implementation. 

Collection and use of Expertise 

The  Commission  performed  an  internal  review  of  different  reports  (evaluations,  audits, 
studies,  mid-term  reviews).  The  review  looked  at  what  worked  and  what  did  not  work,  and 
drew lessons for the drafting of the financial instruments. 

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The review showed that the current Instruments contributed to progress towards the MDGs in 
developing countries. The implementation modalities, such as budget support and the "sector-
wide approach", have allowed deeper cooperation with partner countries and a more efficient 
division of labour through co-financing between donors. 

Nevertheless,  the  review  identified  a  number  of  shortcomings.  The  current  implementation 
process was assessed as too complex and does not allow swift adjustments if required. These 
shortcomings have been directly addressed in the present Regulation.  

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Part  Five,  Title  III,  Chapter  1  of  the  Treaty  of  the  Functioning  of  the  European  Union, 
provides the legal framework for cooperation with partner countries and regions. Accordingly, 
the proposed Common Implementing Regulation is based on Articles 209(1) and 212(2) of the 
Treaty,  and  is  presented  by  the  Commission  in  accordance  with  the  procedure  laid  down  in 
Article  294.  Articles  310  to  320  TFEU  being  applicable  to  Euratom  (see  Article  106a 
Euratom), the proposal can also cover the implementation of financial cooperation under the 
INSC.  

4. 

BUDGETARY IMPLICATION  

N/A 

5. 

MAIN ELEMENTS 

(1) 

Title I: Implementation – Articles 1 to 3  

Article 1 (Subject matter and principles) sets out the objectives of the Regulation which are 
to  provide  a  harmonised  set  of  implementing  rules  for  Relex  Instruments,  to  protect  the 
financial interests of the Union, and to promote simplification and flexibility in implementing 
these Instruments.  

Article 2 (Adoption of Action Programmes, Individual Measures and Special Measures) 
provides  that  financing  decisions  taken  by  the  Commission  are  to  be  in  the  form  of  action 
programmes,  based  on  the  multiannual  programming  documents.  Exceptionally,  yet  in  line 
with  the  multiannual  programming  documents,  individual  measures  can  be  adopted  outside 
the  action-programme  framework.  In  the  event  of  unforeseen  and  duly  justified  cases,  the 
Commission  may  adopt  special  measures  not  provided  for  in  the  multiannual  programming 
documents.  The  Article  includes  the  comitology  rules  that  need  to  be  followed  for  the 
adoption of the mentioned decisions, as well as the possible exceptions thereto.  

Article 3 (Support measures) defines the types of expenditure that represent support to the 
implementation  of  this  Regulation  and  which  may  be  covered  by  Union  financing  (e.g. 
preparation,  follow  up,  monitoring,  audit  and  evaluation  activities,  provision  of  information 
and  communication  efforts).  These  measures  can  be  financed  outside  the  scope  of  the 
programming documents. 

(2) 

Title II: Provisions on the financing methods – Articles 4 to 6 

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Without being exhaustive and on the basis of current practice and identified needs, Articles 4 
to  6  cite  the  types  of  financing  that  may  be  used  under  this  Regulation.  The  introduced 
modifications take into account the provisions of the latest Financial Regulation. In particular, 
Article  4  provides  for  innovative  instruments,  such  as  loans,  guarantees,  equity  and  risk-
sharing  instruments,  and  describes  possible  arrangements  with  respect  to  taxes,  duties  and 
charges. It describes that the measures under this Regulations may be implemented directly by 
the  Commission  or  indirectly  by  entrusting  budget  implementation  tasks  to  any  entity  or 
person listed in the Financial Regulation. This provision also defines the type of co-financing 
(parallel or joint). 

Article 7 (Protection of the financial interests of the Union) lays down measures to protect 
the  Union's  financial  interests,  and  in  particular  to  enable  it  (notably  the  Commission,  the 
Court  of  Auditors  and  OLAF)  to  carry  out  all  the  necessary  checks  on  the  measures 
implemented. 

Title III: Rules on nationality and origin for public procurement, grant and other 

(3) 
award procedures – Articles 8 to 12 

Articles 8 to 11 (Rules on nationality and origin for public procurement and grant and 
other  award  procedures)  lay  down  the  conditions  governing  access  to  public  procurement 
and grant awards for the purposes of implementing the Regulation. The proposed provisions 
are  significantly  simplified  and  indicate  the  objective  to  work  towards  untied  aid  delivery. 
Nevertheless,  the  articles  introduce  in  detail  the  conditions  for  eligibility  of  third  countries 
(reciprocity  requirement,  participation  in  the  implemented  programme,  non-eligibility  of 
certain countries, etc.) and exceptions thereto (unavailability of products or services provided, 
extreme urgency, triangular cooperation, etc.). 

Article  12  (Evaluation)  commits  the  Commission  to  regularly  evaluate  the  results  of  the 
implemented  policies  and  programmes,  sectoral  policies  and 
the  effectiveness  of 
programming  itself.  All  relevant  stakeholders  will  be  associated  to  the  evaluation  and  the 
report will be shared with the Council and the European Parliament. 

(4) 

Title IV: Final provision – Articles 13 to 17 

Article  13  (Annual  report)  provides  for  an  annual  Commission  report  on  the  progress  and 
implementation of this Regulation. The report will be submitted to the European Parliament 
and to the Council.  

Article 14 (Climate action and biodiversity expenditure ) provides for a specific tracking 
system based on the OECD methodology (‘Rio markers’) . 

Article  15  (Committees)  describes  the  involvement  of  the  relevant  committees  in  the 
implementation of this Regulation, adapted to the new comitology regulation1.  

Article  16  (Review  and  evaluation  of  the  Instruments)  provides  that  by  mid  2018  the 
Commission  shall  prepare  and  submit  a  report  evaluating  the  implementation  of  this 

1 

Regulation (EU) No 182/2011. An Observer from the European Investment Bank may take part in the 
Committees' proceedings with regard to questions concerning the Bank, in accordance with the rules of 
procedure  of  the  committee  (see  Standard  Rules  of  Procedure  for  Committees,  OJ  C  206,  12.7.2011, 
p.11). 

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Regulation  to  the  European  Parliament  and  the  Council,  and,  if  appropriate,  present  a 
legislative proposal introducing the necessary modifications. Likewise, this report will assess 
the impact of the measures adopted on the basis of this Regulation. 

Article  17  (Entry  into  force)  provides  for  the  entry  into  force  of  the  Regulation  and  its 
application from 1 January 2014, without setting an expiration date. 

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2011/0415 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing common rules and procedures for the implementation of the Union's 
instruments for external action 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 209(1) and 212(2) thereof,  

Having regard to the proposal from the Commission,  

After transmission of the draft legislative act to the national Parliaments, 

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  European  Union  should  adopt  a  comprehensive  set  of  instruments  covering  a 
range of policies related to external action, which require specific common rules and 
procedures  for  their  implementation.  These  are:  the  Development  Cooperation 
Instrument  (‘DCI’),  the  European  Instrument  for  Democracy  and  Human  Rights 
(‘EIDHR’),  the  European  Neighbourhood  Instrument  (‘ENI’),  the  Instrument  for 
Stability  (‘IfS’),  the  Instrument  for  Nuclear  Safety  Cooperation  (‘INSC’),  the 
Instrument for Pre-accession Assistance (‘IPA’) and the Partnership Instrument (‘PI’).  

These instruments generally provide that actions to be funded on their basis should be 
the object of a multiannual indicative programming, providing the framework within 
which  financing  decisions  should  be  adopted  in  accordance  with  the  Financial 
Regulation2, and with the procedures provided for in Regulation (EU) No 182/2011 of 
the  European  Parliament  and  of  the  Council  of  16  February  2011  laying  down  the 
rules and general principles concerning mechanisms for control by Member States of 
the Commission's exercise of implementing powers3. 

The  financing  decisions  should  take  the  forms  of  Annual  or  Multiannual  Action 
programmes  and  Individual  Measures  when  following  the  planning  provided  for  by 
the  multiannual  indicative  programming,  of  Special  Measures  where  required  by 
unforeseen and justified needs, and of Support Measures.  

2 
3 

As referred to in recital 6. 
OJ L 55, 28.2.2011, p. 13. 

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(4) 

(5) 

(6) 

(7) 

Taking  into  account  the  policy  programming  or  financial  execution  nature  of  those 
implementing  acts,  in  particular  their  budgetary  implications,  the  examination 
procedure should in general be used for their adoption, except for measures of a small 
financial  scale.  However,  the  Commission  should  adopt  immediately  applicable 
implementing  acts  where,  in  duly  justified  cases  relating  to  the  need  for  a  swift 
response from the Union, imperative grounds of urgency so requires. 

In  financing  decisions  the  description  of  each  action,  specifying  its  objectives,  main 
activities,  expected  results,  prospective  budget  and  timetable  and  performance 
monitoring  arrangements  should  be  further  approved  in  accordance  with  the 
procedures provided for in Regulation (EU) No 182/2011.  

For  the  implementation  of  financial  instruments,  when  the  management  of  the 
operation  is  entrusted  to  a  financial  intermediary,  the  Commission  decision  should 
cover  in  particular  provisions  concerning  risk-sharing,  the  remuneration  of  the 
intermediary responsible for implementation, the use and re-use of the funds and the 
possible profits. 

The common set of rules and procedures should be consistent with the financial rules 
applicable  to  the  annual  budget  of  the  Union  laid  down  in  a  Regulation  of  the 
European  Parliament  and  of  the  Council,  hereinafter  referred  to  as  "the  Financial 
Regulation"4,  such  reference  being  made  in  all  instances  to  the  latest  version  of  that 
Regulation  in  force,  and  including  the  corresponding  rules  adopted  by  the 
Commission5 for implementing the Financial Regulation. 

(8)  While financing needs of the Union’s external assistance are increasing, the economic 
and budgetary situation of the Union limits the resources available for such assistance. 
The Commission must therefore seek the most efficient use of available resources, in 
particular  by  using  financial  instruments  that  have  a  leverage  effect.  Such  leverage 
effect  is  increased  by  allowing  funds  invested  and  generated  by  the  financial 
instruments to be used and re-used. 

(9) 

The  financial  interests  of  the  European  Union  should  be  protected  through 
proportionate  measures  throughout  the  expenditure  cycle,  including  the  prevention, 
detection and investigation of irregularities, the recovery of funds lost, wrongly paid or 
incorrectly used and, where appropriate, penalties. These measures should be carried 
out  in  accordance  with  the  applicable  agreements  concluded  with  international 
organisations and third countries.  

(10)  Further  provisions  should  be  made  for  financing  methods,  the  protection  of  the 
Union's  financial  interests,  rules  on  nationality  and  origin,  and  evaluation  of  the 
Instruments, 

4 

5 

Currently  Council  Regulation  (EC,  Euratom)  No  1605/2002  of  25  June  2002  on  the  Financial 
Regulation applicable to the general budget of the European Communities (OJ L 248, 16.9.2002, p. 1). 
Currently Commission Regulation (EC, EURATOM) No 2342/2002 of 23 December 2002 laying down 
detailed  rules  for  the  implementation  of  Council  Regulation  (EC,  Euratom)  No1605/2002  on  the 
Financial  Regulation  applicable  to  the  general  budget  of  the  European  Communities  (OJ  L  357, 
31.12.2002, p. 1). 

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HAVE ADOPTED THIS REGULATION: 

TITLE I 

IMPLEMENTATION 

Article 1 

Subject matter and principles 

1. 

2. 

3. 

1. 

This  Regulation  establishes  the  rules  and  conditions  for  providing  the  Union's 
financial  assistance  to  actions,  including  action  programmes  and  other  measures, 
under the following Instruments: the Development Cooperation Instrument (‘DCI’), 
the  European  Instrument  for  Democracy  and  Human  Rights  (‘EIDHR’),  the 
European Neighbourhood Instrument (‘ENI’), the Instrument for Stability (‘IfS’), the 
Instrument  for  Nuclear  Safety  Cooperation  (‘INSC’),  the  Instrument  for  Pre-
accession  Assistance  (‘IPA’)  and  the  Partnership  Instrument  (‘PI’),  hereinafter  also 
referred to jointly as ‘the Instruments’ and singly as ‘the applicable Instrument’.  

The  Commission  shall  ensure  that  actions  are  implemented  in  accordance  with  the 
objectives  of  the  applicable  Instrument,  and  in  conformity  with  an  effective 
protection  of  the  financial  interests  of the  Union.  The  financial  assistance  provided 
on the basis of the Instruments shall be consistent with the rules and procedures laid 
down  in  the  Financial  Regulation,  which  provides  the  basic  financial  and  legal 
framework for their implementation. 

In applying this Regulation, the Commission shall, where possible and appropriate in 
light  of  the  nature  of  the  action,  favour  the  use  of  the  most  flexible  procedures  in 
order to ensure an effective and efficient implementation.  

Article 2 

Adoption of action programmes, individual measures and special measures 

The  Commission  shall  adopt  annual  or  multi-annual  action  programmes,  where 
required  based  on  the  indicative  programming  documents  referred  to  in  the 
applicable Instrument. 

Exceptionally, in particular where an action programme has not yet been adopted, the 
Commission  may,  on  the  basis  of  the  indicative  programming  documents,  adopt 
individual measures under the same rules and procedures as for action programmes. 

In the event of unforeseen and duly justified needs, circumstances or commitments, 
the  Commission  may  adopt  special  measures  not  provided  for  in  the  indicative 
programming  documents.  Special  measures  may  also  be  used  to  ease  the  transition 
from  emergency  aid  to  long-term  development  operations,  including  measures  to 
better prepare people to deal with recurring crises. 

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2. 

Action programmes and individual measures provided for in paragraph 1 for which 
the  Union's  financial  assistance  exceeds  EUR  10  million  and  special  measures  for 
which the Union's financial assistance exceeds EUR 30  million  shall be adopted in 
accordance with the examination procedure referred to in Article 15(3). 

technical  adjustments  such  as  extending 

That procedure shall not be required for action programmes and measures below the 
above-mentioned  thresholds,  and  for  non  substantial  amendments  thereto.  Non-
the 
substantial  amendments  are 
implementation period, reassigning funds within the forecast budget, or increasing or 
reducing the size of the budget by less than 20 % of the initial budget, provided these 
amendments do not substantially affect the objectives of the initial action programme 
or  measure.  In  such  case,  action  programmes  and  measures  and  non-substantial 
amendments  thereto  shall  be  communicated  to  the  European  Parliament  and  to  the 
Council within one month of their adoption. 

On  duly  justified  imperative  grounds  of  urgency,  such  as  crises,  post  crisis  and 
fragility  situations  or  threats  to  democracy,  the  rule  of  law,  human  rights  or 
fundamental  freedoms, 
immediately  applicable 
the  Commission  may  adopt 
implementing  acts,  including  amendments  to  existing  action  programmes  and 
measures, in accordance with the procedure referred to in Article 15(4).  

Appropriate environmental screening, including for climate change and biodiversity 
including  where  applicable 
impacts,  shall  be  undertaken  at  project 
environmental  impact  assessment  (EIA)  for  environmentally  sensitive  projects,  in 
particular  for  major  new  infrastructure.  Where  relevant,  strategic  environmental 
assessments (SEA) shall be used in the implementation of sectoral programmes. The 
involvement  of  interested  stakeholders  in  environmental  assessments  and  public 
access to the results shall be ensured. 

level 

Article 3 

Support measures 

Union  financing  may  cover  expenditure  for  the  implementation  of  the  Instruments 
and  for  the  achievement  of  their  objectives,  including  administrative  support 
associated  with  the  preparation,  follow-up,  monitoring,  audit  and  evaluation 
activities directly necessary for such implementation, as well as expenditure at Union 
delegations  on  the  administrative  support  needed  to  manage  operations  financed 
under the Instruments.  

Provided that the activities listed in points (a), (b) and (c) are related to the general 
objectives  of  the  applicable  Instrument  implemented  through  the  action,  Union 
financing may cover 

(a) 

training,  publication 
information,  awareness-raising, 
studies,  meetings, 
activities  and  any  other  administrative  or  technical  assistance  expenditure 
necessary for the management of the actions, 

(b) 

research activities and studies on relevant issues and the dissemination thereof, 

3. 

4. 

1. 

2. 

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(c) 

expenditures  related  to  the  provision  of  information  and  communication 
actions,  including  corporate  communication  of  the  political  priorities  of  the 
Union.  

3. 

Support  measures  may  be  financed  outside  the  scope  of  indicative  programming 
documents.  Where  applicable,  the  Commission  shall  adopt  support  measures  in 
accordance with the advisory procedure referred to in Article 15(2).  

TITLE II 

Provisions on the financing methods 

Article 4 
General financing provisions 

1. 

The  Union's  financial  assistance  may  be  provided,  inter  alia,  through  the  following 
types of financing envisaged by the Financial Regulation: 

(a) 

grants;  

(b)  procurement contracts for services, supplies or works; 

(c) 

budget support;  

(d) 

contributions to trust funds set up by the Commission; 

(e) 

financial  instruments  such  as  loans,  guarantees,  equity  or  quasi-equity, 
investments or participations, and risk-sharing instruments, possibly combined 
with grants. 

(f) 

shareholdings  or  equity  participations  in  international  financial  institutions, 
including regional development banks.  

The  Union's  financial  assistance  may  also  be  provided,  in  accordance  with  the 
Financial  Regulation,  through  contributions  to  international,  regional  or  national 
funds,  such  as  those  established  or  managed  by  the  European  Investment  Bank, 
international  organisations,  Member  States  or  by  partner  countries  and  regions,  for 
attracting joint financing from a number of donors, or to funds set up by one or more 
donors for the purpose of the joint implementation of projects. 

For the implementation of financial instruments referred to in point (e) above and in 
accordance with Article 18(4) of the Financial Regulation, revenues and repayments 
generated  by  one  financial  instrument  shall  be  assigned  to  the  corresponding 
financial  instrument  as  internal  assigned  revenue.  For  financial  instruments  set  up 
during  the  Multi-annual  Financial  Framework  2007-2013,  these  revenues  and 
repayments shall be assigned to the equivalent new financial instrument in the period 
2014-2020. 

The  Union's  financial  assistance  shall  be  implemented  by  the  Commission  as 
provided  for  by  the  Financial  Regulation,  directly  by  Commission  departments, 
Union  delegations  and  by  executive  agencies,  or  indirectly  by  entrusting  budget-

2. 

3. 

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implementation  tasks  to  the  entities  listed  in  the  Financial  Regulation,  including 
under shared management with Member states.  

4. 

The types of financing referred to in paragraph 1 and in Article 6(1), and the methods 
of  implementation  referred  to  in  paragraph  3,  shall  be  chosen  on  the  basis  of  their 
ability to achieve the specific objectives of the actions, taking into account, inter alia, 
the  costs  of  controls,  the  administrative  burden,  and  the  expected  risk  of  non-
compliance.  For  grants,  this  shall  include  a  consideration  of  the  use  of  lump  sums, 
flat rates and scales of unit costs.  

5. 

Actions financed under the Instruments may be implemented with parallel and joint 
co-financing. 

In  the  case  of  parallel  co-financing,  an  action  is  split  into  a  number  of  clearly 
identifiable components which are each financed by the different partners providing 
co-financing in such a way that the end-use of the financing can always be identified. 

In  the  case  of  joint  co-financing,  the  total  cost  of  an  action  is  shared  between  the 
partners providing the co-financing and the resources are pooled in such a way that it 
is  no  longer  possible  to  identify  the  source  of  financing  for  any  given  activity 
undertaken as part of the action. 

6. 

While  having  recourse  to  a  type  of  financing  referred  to  in  paragraph  1  or  Article 
6(1), cooperation between the Union and its partners may take the form, inter alia, of  

(a) 

(b) 

(c) 

(d) 

(e) 

triangular arrangements by which the Union coordinates with third countries its 
assistance to a partner country or region,  

administrative  cooperation  measures  such  as 
twinning  between  public 
institutions,  local  authorities,  national  public  bodies  or  private  law  entities 
entrusted  with  public  service  tasks  of  a  Member  State  and  those  of  a  partner 
country  or  region,  as  well  as  cooperation  measures  involving  public-sector 
experts  dispatched  from  the  Member  States  and  their  regional  and  local 
authorities, 

contributions  to  the  costs  necessary  to  set  up  and  administer  a  public-private 
partnership, and 

sector  policy  support  programmes,  by  which  the  Union  provides  support  to  a 
partner country's sector programme 

in the case of the IPA and the ENI, contributions to the countries' participation 
in Union programmes and agencies.  

Article 5 

Taxes, duties and charges 

Union  assistance  shall  not  generate,  or  activate  the  collection  of  specific  taxes,  duties  or 
charges. 

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Where applicable, appropriate provisions shall be negotiated with partner countries in order to 
exempt from taxes, custom duties and other fiscal charges the actions implementing Union's 
financial  assistance.  Otherwise,  such  taxes,  duties  and  charges  shall  be  eligible  under  the 
conditions laid down in the Financial Regulation 

Article 6 

Specific financing provisions 

1. 

In addition to the types of financing referred to in Article 4(1), the Union's financial 
assistance under the following Instruments may be provided in accordance with the 
Financial Regulation also through the following types of financing: 

(a)  under the DCI and under the ENI, debt relief, under internationally agreed debt 

relief programmes; 

(b)  under  the  DCI  and  under  the  IfS,  in  exceptional  cases,  sectoral  and  general 

import programmes, which may take the form of: 

(i) 

sectoral import programmes in kind; 

sectoral  import  programmes  providing  foreign  exchange  to  finance 

(ii) 
imports for the sector in question; or 

general  import  programmes  providing  foreign  exchange  to  finance 

(iii) 
general imports of a wide range of products; 

(c)  under the EIDHR direct award of: 

low-value grants to human rights defenders to finance urgent protection 

(i) 
actions; 

(ii) 
grants  to  finance  actions  in  the  most  difficult  conditions  or  situations 
referred  to  in  Article  2(4)  of  the  EIDHR  where  the  publication  of  a  call  for 
proposals would be inappropriate. Such grants shall not exceed EUR 2 000 000 
and  shall  have  a  duration  of  up  to  18  months,  which  may  be  extended  by  a 
further  six  months  in  the  case  of  objective  and  unforeseen  obstacles  to  their 
implementation. 

(iii) 

grants to  

– 

– 

the Office of the UN High Commissioner for Human Rights; 

the  European  Inter-University  Centre  for  Human  Rights  and 
Democratisation, providing a European Master's Degree in Human 
Rights  and  Democratisation  and  an  EU-UN  Fellowship 
Programme,  and  its  associated  network  of  universities  delivering 
human  rights  post-graduate  diplomas,  fully  accessible  to  nationals 
of third countries. 

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2. 

3. 

1. 

2. 

The Union's financial assistance under the IPA and the ENI may be implemented in 
shared  management  with  Member  States,  and  in  indirect  management  for  Cross 
Border  Cooperation  under 
the  sector-specific  and 
the  ENI,  provided 
complementing  rules  required  by  the  Financial  Regulation  and  other  appropriate 
provisions  are  included  in  a  delegated  act  adopted  on  the  basis  of  the  applicable 
Instrument.  

that 

Budgetary commitments for actions under the IPA and the ENI extending over more 
than  one  financial  year  may  be  broken  down  over  several  years  into  annual 
instalments.  

Article 7 

Protection of the financial interests of the Union  

The  Commission  shall  take  appropriate  measures  to  ensure  that,  when  actions 
financed  under  this  Regulation  are  implemented,  the  financial  interests  of  the 
European  Union  are  protected  by  the  application  of  preventive  measures  against 
fraud,  corruption  and  any  other  illegal  activities,  by  effective  checks  and,  if 
irregularities are detected, by the recovery, or where appropriate in cases where the 
state or a public institution of a third country is the beneficiary, the restitution, of the 
amounts  wrongly  paid.  Where  appropriate,  effective,  proportionate  and  deterrent 
penalties shall also be applied.  

The  Commission  and  the  Court  of  Auditors  shall  have  the  power  of  audit,  on  the 
basis  of  documents  and  on-the-spot,  over  all  grant  beneficiaries,  contractors  and 
subcontractors and other third parties who have received Union funds.  

The  European  Anti-fraud  Office  (OLAF)  may  carry  out  on-the-spot  checks  and 
inspections on economic operators concerned directly or indirectly by such funding 
in  accordance  with  the  procedures  laid down  in  Council  Regulation  (Euratom,  EC) 
No 2185/966 with a view to establishing whether there has been fraud, corruption or 
any  other  illegal  activity  affecting  the  financial  interests  of  the  European  Union,  in 
connection with a grant agreement or grant decision or a contract concerning Union 
funding. 

Without  prejudice  to  the  first  and  second  sub-paragraphs,  agreements  with  third 
countries  and  international  organisations  and  grant  agreements  and  grant  decisions 
and  contracts  resulting  from  the  implementation  of  this  Regulation  shall  expressly 
empower the Commission, the Court of Auditors and OLAF to conduct such audits, 
on-the-spot checks and inspections. 

Rules on nationality and origin for public procurement, grant and other award 
procedures  

TITLE III 

6 

OJ L 292, 15.11.1996, p. 2. 

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Article 8 

Common rules 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

Participation  in  the  award  of  procurement  contracts,  grant  and  other  award 
procedures for actions financed under this Regulation for the benefit of third parties 
shall be open to all natural persons who are nationals of, and legal persons which are 
effectively established in, an eligible country as defined for the applicable Instrument 
in the following Articles of this Title, and to International Organisations. 

In the case of actions jointly co-financed with a partner, or implemented through one 
of  the  entrusted  bodies  in  indirect  management,  or  implemented  through  a  Trust 
Fund  established  by  the  Commission  in  accordance  with  the  Financial  Regulation, 
countries  which  are  eligible  under  the  rules  of  that  body,  as  identified  in  the 
agreements concluded with the co-financing or implementing body, or determined in 
the  trust  fund  constitutive  act,  shall  be  eligible  notwithstanding  the  specific  rules 
provided for in the following Articles. The co-financing or implementing body shall 
in  addition  agree  to  apply  the  eligibility  rules  laid  down  in  this  Regulation  as 
specified in the same agreements. 

In the case of actions financed by one of the Instruments and, in addition, by another 
instrument  for  external  action,  including  the  European  Development  Fund,  or  of 
actions  of  a  global,  regional  or  cross-border  nature  involving  also  beneficiary 
countries eligible under the rules of those instruments, the countries identified under 
any of these Instruments may be considered eligible for the purpose of that action. 

All  supplies  and  goods  purchased  under  a  procurement  contract,  or  in  accordance 
with  a  grant  agreement,  financed  under  this  Regulation  shall  originate  from  an 
eligible country. However, they may originate from any country when the use of the 
competitive negotiated procedure is allowed. For the purposes of this Regulation, the 
term  ‘origin’  is  defined  in  the  relevant  Union  legislation  on  rules  of  origin  for 
customs purposes. 

The rules under this Title do not apply to, and do not create nationality restrictions for, 
natural persons employed or otherwise legally contracted by an eligible contractor or, 
where applicable, subcontractor. 

Where  the  Financial  Regulation  provides  for  discretion  in  the  choice  of  the 
contractor,  priority  shall  be  given  where  appropriate  to  local  and  regional 
procurement.  

By way of derogation from all other rules, eligibility as defined in this Title may be 
restricted  with  regard  to  the  nationality,  localisation  or  nature  of  applicants,  where 
required  by  the  nature  and  the  objectives  of  the  action  and  as  necessary  for  its 
effective  implementation.  Such  restrictions  may  apply  in  particular  to  the 
participation in awarding procedures in the case of cross-border cooperation actions.  

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8. 

Tenderers, applicants and candidates who have been awarded contracts shall respect 
applicable 
environmental 
including  multilateral 
agreements as well as internationally agreed core labour standards7 

environmental 

legislation 

Article 9 

DCI, ENI, PI and INSC 

1. 

Tenderers, applicants and candidates from the following countries shall be eligible to 
funding under the DCI, the ENI, the PI and the INSC: 

(a)  Member States, candidate countries and potential candidates as recognised by 

the Union, and members of the European Economic Area;  

(b) 

for the ENI, partner countries covered by the ENI and the Russian Federation 
when the relevant procedure takes place in the context of the multi-country and 
cross-border co-operation programmes in which it participates; 

(c)  developing countries and territories, as defined as defined by the Development 
Assistance  Committee  of  the  Organisation  for  Economic  Cooperation  and 
Development (‘OECD-DAC’), which are not members of the G-20 group, , and 
overseas  countries  and  territories  covered  by  Council  Decision  [2001/822/EC 
of 27 November 20018];  

(d)  developing countries as defined by OECD-DAC, which are member of the G-
20 group, and other countries and territories, when they are beneficiaries of the 
action financed by the Union under the instruments covered by this Article;  

(e) 

countries  for  which  reciprocal  access  to  external  assistance  is  established  by 
the Commission. Reciprocal access may be granted, for a limited period of at 
least one year, whenever a country grants eligibility on equal terms to entities 
from the Union and from countries eligible under the Instruments covered by 
this Article. The Commission shall decide on the reciprocal access and on its 
duration in accordance with the advisory procedure referred to in Article 15(2), 
and after consultation of the recipient country or countries concerned; and 

(f) 

a Member State of the OECD-DAC, in the case of contracts implemented in a 
Least Developed Country, as defined by the OECD-DAC.  

2. 

Tenderers, applicants and candidates from non eligible countries or goods from non 
eligible origin may be accepted eligible by the Commission in the case of: 

(a) 

countries  having  traditional  economic,  trade  or  geographical  links  with 
neighbouring beneficiary countries, or 

7 

8 

The  ILO  core  labour  standards,  Conventions  on  freedom  of  association  and  collective  bargaining, 
elimination of forced and  compulsory  labour,  elimination  of discrimination  in  respect of  employment 
and occupation and the abolition of child labour. 
OJ L 314 of 30.11.2001, p. 1 

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(b) 

implementation of triangular cooperation arrangements with third countries; or  

(c) 

urgency  or  of  unavailability  of  products  and  services  in  the  markets  of  the 
countries  concerned,  or  other  duly  substantiated  cases  where  the  eligibility 
rules  would  make  the  realisation  of  a  project,  a  programme  or  an  action 
impossible or exceedingly difficult.  

3. 

For actions implemented in shared management, the relevant Member State to which 
the Commission has delegated implementation tasks is entitled to accept as eligible, 
on behalf of the Commission, tenderers, applicants and candidates from non eligible 
countries  in  accordance  with  paragraph  2,  or  goods  from  non  eligible  origin  in 
accordance with Article 8(4).  

Article 10 

IPA 

1. 

Tenderers,  applicants  and  candidates  from  the  following  countries  shall  be  eligible 
for funding under the IPA: 

(a)  Member  States,  beneficiary  countries  covered  by  the  IPA,  members  of  the 

European Economic Area and partner countries covered by ENI, and 

(b)  donor countries for which reciprocal access to external assistance is established 

by the Commission under the conditions laid down in Article 9(1)(e). 

Tenderers, applicants and candidates from non eligible countries or goods from non 
eligible  origin  may  be  accepted  eligible  by  the  Commission  in  duly  substantiated 
cases, 

(a) 

if  the  eligibility  rules  would  make  the  realisation  of  an  action  impossible  or 
exceedingly difficult on the basis of the unavailability of products and services 
in the markets of the countries concerned, or extreme urgency, or 

(b) 

for implementing triangular cooperation arrangements with third countries. 

For actions implemented in shared management, the relevant Member State to which 
the Commission has delegated implementation tasks is entitled to accept as eligible, 
on behalf of the Commission, tenderers, applicants and candidates from non eligible 
countries  in  accordance  with  paragraph  2,  or  goods  from  non  eligible  origin  in 
accordance with Article 8(4).  

Article 11 

IfS and EIDHR 

Without prejudice to the limitations inherent to the nature and the objectives of the 
action  as  provided  for  in  Article  8(7), participation  in  the  award  of  procurement 
contracts  or  grants,  as  well  as  the  recruitment  of  experts,  shall  be  open  without 
limitations under the IfS and EIDHR. 

2. 

3. 

1. 

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2. 

Under  the  EIDHR  the  following  bodies  and  actors  shall  be  eligible  for  funding  in 
accordance with Articles 4(1) and 6(1) (c): 

(a) 

society 

organisations, 

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

non-governmental 

including 

(b)  public  sector  non  profit-agencies,  institutions  and  organisations  and  networks 

at local, national, regional and international level; 

(c)  national,  regional  and  international  parliamentary  bodies,  when  this  is 
necessary to achieve the objectives of the instrument and the proposed measure 
cannot be financed under another Union external assistance instrument; 

(d) 

international and regional inter-governmental organisations; 

(e)  natural persons, entities without legal personality and, in exceptional and duly 
justified cases, other bodies or actors not identified in this paragraph, when this 
is necessary to achieve the objectives of the instrument. 

Article 12 

Evaluations of actions 

1. 

2. 

3. 

The  Commission  shall  regularly  monitor  and  review  its  actions,  and  evaluate  the 
results of the implementation of sectoral policies and actions, and the effectiveness of 
programming,  where  appropriate  by  means  of  independent  external  evaluations,  in 
order to ascertain whether the objectives have been met and to enable it to formulate 
recommendations with a view to improving future operations.  

The Commission shall send its evaluation reports to the European Parliament and to 
the  Council  for  information.  Member  States  may  request  to  discuss  specific 
evaluations in the Committees referred to in Article 15. The results shall feed back 
into programme design and resource allocation. 

The Commission shall associate to an appropriate extent all relevant stakeholders in 
the evaluation phase of the Union assistance provided under this Regulation. 

TITLE IV  

OTHER COMMON PROVISIONS 

Article 13 

Biennal report 

17 

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1. 

2. 

The Commission shall examine the progress made in implementing the measures of 
financial  assistance  taken  in  external  action  and  shall  submit  to  the  European 
Parliament  and  to  the  Council  a  report  every  two  years  starting  in  2016  on  the 
implementation and results and, as far as possible, on the main outcomes and impacts 
of  the  Union's  financial  assistance.  This  report  shall  also  be  submitted  to  the 
European Economic and Social Committee and to the Committee of the Regions. 

The  biennal  report  shall  contain  information  relating  to  the  previous  year  on  the 
measures  financed,  the  results  of  monitoring  and  evaluation  exercises,  the 
involvement  of  the  relevant  partners,  and  the  implementation  of  budgetary 
commitments  and  of  payments  appropriations.  It  shall  assess  the  results  of  the 
Union's  financial  assistance,  using  as  far  as  possible,  specific  and  measurable 
indicators of its role in meeting the objectives of the Instruments.  

Article 14 

Climate action and biodiversity expenditure  

The funding allocated in the context of the Instruments shall be subject to an annual tracking 
system  based  on  the  OECD  methodology  (‘Rio  markers’),  integrated  into  the  existing 
methodology  for  performance  management  of  EU  programmes,  to  quantify  the  expenditure 
related to climate action and biodiversity at the level of the action programmes, individual and 
special  measures  referred  to  in  Article  2(1),  and  recorded  within  evaluations  and  biennal 
reports. An annual estimate of the overall spending related to climate action and biodiversity 
shall be made on the basis of the adopted indicative programming documents. 

FINAL PROVISIONS 

Article 15 

Committees 

1. 

2. 

The Commission shall be assisted by the committees established by the Instruments.  

Where  reference  is  made  to  this  paragraph,  Article  4  of  Regulation  (EU)  No 
182/2011 shall apply.  

Where  the  opinion  of  the  committee  is  to  be  obtained  by  written  procedure,  the 
procedure shall be terminated without result when, within the time limit for delivery 
of  the  opinion,  the  chair  of  the  committee  so  decides  or  a  simple  majority  of 
committee members so requests. 

3. 

Where  reference  is  made  to  this  paragraph,  Article  5  of  Regulation  (EU)  No 
182/2011 shall apply.  

Where  the  opinion  of  the  committee  is  to  be  obtained  by  written  procedure,  the 
procedure shall be terminated without result when, within the time limit for delivery 

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of  the  opinion,  the  chair  of  the  committee  so  decides  or  a  simple  majority  of 
committee members so requests. 

4. 

Where  reference  is  made  to  this  paragraph,  Article  8  of  Regulation  (EU)  No 
182/2011, in conjunction with Article 5 thereof, shall apply. 

The  adopted  decision  shall  remain  in  force  for  the  duration  of  the  adopted  or 
modified document, action programme or measure. 

Article 16  

Review and evaluation of the Instruments 

No later than 31 December 2017, a report shall be established by the Commission on 
the achievement of the objectives of each of the Instruments by means of result and 
impact indicators measuring the efficiency of the use of resources and the European 
added value of the Instruments, in view of a decision on the renewal, modification or 
suspension  of  the  types  of  actions  implemented  under  the  Instruments.  The  report 
shall,  in  addition,  address  the  scope  for  simplification,  internal  and  external 
coherence, the continued relevance of all objectives, as well as the contribution of the 
measures to the Union priorities for smart, sustainable and inclusive growth. It shall 
take  into  account  any  findings  and  conclusions  on  the  long-term  impact  of  the 
Instruments.  

This  report  shall  be  submitted  to  the  European  Parliament  and  to  the  Council,  and 
shall  be  accompanied  if  appropriate,  by  legislative  proposals  introducing  the 
necessary modifications to the Instruments. 

The values of the indicators on 1 January 2014 shall be used as a basis for assessing 
the extent to which the objectives have been achieved. 

Partner  countries  shall  be  required  by  the  Commission  to  provide  all  the  data  and 
information  necessary, 
international  commitments  on  aid 
effectiveness, to permit the monitoring and evaluation of the concerned measures.  

line  with 

the 

in 

The longer-term impacts and the sustainability of effects of the Instruments shall be 
evaluated in accordance with the rules and procedures applicable at that time.  

1. 

2. 

3. 

4. 

5. 

Article 17 

Entry into force 

This Regulation shall enter into force on the third day following that of its publication in the 
Official Journal of the European Union. 

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

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It shall apply from 1 January 2014. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President 

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