Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a Partnership Instrument for cooperation with third countries
Date: 2011-12-07
Institutions: European Commission
Subjects: EU financial instrument, cross-border cooperation, developing countries, development aid, international trade, third country

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 843 final 

2011/0411 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a Partnership Instrument for cooperation with third countries 

{SEC(2011) 1475 final} 
{SEC(2011) 1476 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This proposal for a Partnership Instrument replaces the financing Instrument for Cooperation 
with  Industrialised  and  other  high  income  countries  and  territories  (ICI)1,  which  came  into 
force  in  2007,  and  which  has  been  the  EU’s  main  vehicle  for  collaboration  with  developed 
countries.  The  ICI  has  proved  an  effective  toolbox  for  providing  a  differentiated  and 
appropriate  response  to  widen  and  deepen  the  cooperation  with  17  countries  (industrialised 
countries and high-income territories in North America, the Asia-Pacific region and the Gulf 
region). It has been recently extended to developing countries with the adoption of the ICI+ 
proposal.  However,  as  it  is  due  to  expire  by  the  end  of  2013;  a  new  financial  instrument  is 
needed. 

Moreover,  since  the  ICI  Regulation  entered  into  force,  we  have  seen  in  particular  the 
emergence  of  economies  such  as  India,  China  and  Brazil  which  are  playing  an  increasingly 
prominent role in the international economy and trade, in multilateral fora (UN and G20) and 
in  addressing  challenges  of  global  concern.  While  development  and  poverty  alleviation 
remain  a  key  concern,  these  countries  are  progressively  leaving  behind  the  status  of 
developing nations. To sustain its own economic recovery, the EU has a strategic interest in 
stimulating plausible efforts from these countries to adequately tackle global challenges such 
as climate change. 

The  EU  has  also  developed  broad  based  agreements  with  key  partners  and  emerging 
economies to address bilateral issues and matters of global concern. Implementation of these 
instruments (i.e.: as agreements, declarations, action plans etc) requires a dedicated financing 
instrument so that the EU has the means to promote its interests effectively worldwide and to 
deal with global issues wherever the need arises. 

In  addition,  the  evolution  of  the  relationship  with  Russia,  the  financial  crisis  that  has  posed 
new challenges to the world economy and its economic order, the increasing interdependence 
between  the  EU  and  its  key  partners;  the  changing  trade  patterns,  the  growing  role  of  civil 
society and business/trade communities both in Europe and in partner countries require more 
dialogue, integration and exchanges. There is an increasing need to address social challenges 
(globalisation benefits unevenly distributed and the heavy impact of the economic downturn 
on  consumption,  incomes  and  job  creation)  as  well  as  environmental  and  climate  change 
challenges. In this context, the growing role of emerging economies including on south-south 
trade and cooperation issues, the need to combine development assistance, trade instruments, 
business dialogues, infrastructural and technological developments, and investment to support 
smart  and  inclusive  growth,  trade  integration,  private  sector  development,  social  cohesion, 
reform  and  modernisation  programmes,  have  all  made  it  necessary  to  put  in  place  a  new 
Instrument. 

1

USA, Japan, Canada, the Republic of Korea, Australia and New Zealand); certain Asian industrialised 
countries and territories which are excluded from the DAC list of recipient countries (Singapore, Hong 
Kong, Macao, Taiwan and Brunei) as well as the Gulf Cooperation Council (Bahrain, Kuwait, Oman, 
Qatar,  Saudi  Arabia  and  the  United  Arab  Emirates)  similarly  excluded  from  the  DAC  list  of  ODA 
recipients. 

EN 

2 

   EN 

 
                                                 
 
The EU does not currently possess a genuine instrument that would allow it to co-operate with 
new  emerging  economies  on  issues  related  to  advancing  core  EU  interests  and  on  common 
challenges  of  global  concern  (such  as  climate  change  for  instance  or  the  need  to  promote 
sustainable  development  at  all  levels).  Although  the  ICI  has  been  extended  to  cover 
developing  countries,  with  the  adoption  of  the  ICI+  on  1st  December  2011,  it  is  limited  in 
scope. 

The  proposed  Partnership  Instrument  is  designed  to  overcome  this  limitation  of  the  EU’s 
ability  to  engage  internationally  in  the  most  effective  way.  It  would  fill  the  gap  described 
above  and,  in  particular,  allow  the  EU  to  pursue  agendas  beyond  development  cooperation 
with global players, but also to defend core EU interests with any other partner country as the 
need arises. It could also underpin new relationships with countries graduating from bilateral 
development assistance. 

In particular, it would pursue the following specific objectives: 

(a) 

(b) 

(c) 

implementing  the  international  dimension  of  the  “Europe  2020”  strategy  by 
supporting  EU  bilateral,  regional  and 
inter-regional  cooperation  partnership 
strategies,  by  promoting  policy  dialogues  and  by  developing  collective  approaches 
and  responses  to  challenges  of  global  concern  such  as  energy  security,  climate 
change and environment;  

improving  market  access  and  developing 
investment  and  business 
opportunities  for  European  companies,  in  particular  SMEs,  by  means  of  economic 
partnerships and business and regulatory cooperation; 

trade, 

enhancing widespread understanding and visibility  of  the  Union  and  its  role  on  the 
world  scene  by  means  of  public  diplomacy,  education/academic  cooperation  and 
outreach activities to promote Union’s values and interests. 

The  Partnership  Instrument  will  therefore  advance  and  promote  EU  and  mutual  interests 
and give the “Europe 2020” strategy a global reach, by responding in an effective and flexible 
manner to cooperation objectives arising from the Union's relations with partner countries and 
by addressing challenges of global concern. It will have a global reach with a particular focus 
on  strategic  partners  and  emerging  economies.  There  will  be  no  mandatory  classification  of 
expenditure  as  official  development  assistance  (ODA),  although  it  should  remain  possible 
especially  for  Aid  for  Trade  and  Trade  Related  Assistance.  The  financial  amount  for  the 
period 2014-2020 is €1,131 million. 

The  Partnership  Instrument  will  be  an  integral  part  of  the  overall  architecture  of  external 
action  Financial  Instruments  organised  around  four  main  chapters:  a  policy-based  chapter 
aiming  primarily  at  cooperation  with  partner  countries  at  all levels;  chapters  on  working  on 
cross-cutting priorities and values: human rights and democracy, humanitarian assistance and 
civil protection, and crisis management and prevention. 

One of the key priorities of the “Europe 2020” strategy is to restore growth that is compatible 
with  Europe's  vision  for  a  low  carbon  future  and  sustainable  development  objectives.  The 
agenda recognises that fast-growing emerging economies with an expanding middle class will 
play a critical role in sustaining European exports of goods and services in which the EU has a 
comparative advantage. As an example, the future climate policies (or lack of them) in China, 
India,  Brazil  and  the  US  will  have  significant  impact  on  future  competitiveness,  R&D  and 

EN 

3 

   EN 

 
scientific  cooperation  across  those  regions,  as  well  as  on  international  trade.  It  is  in  our 
interest to promote maximum alignment and cooperation. The Partnership Instrument should 
be  instrumental  in  supporting  trade  policy2,  in  particular  as  regards  the  strategic  economic 
partners.  The  support  for  market  access  for  European  companies  will  supplement  action 
financed under the Competitiveness and SME Programme.  

Emerging  economies  are  playing  an  increasingly  prominent  role  as  responsible  partners  in 
addressing challenges of global concern in the context of the on-going economic crisis. The 
EU recognizes the importance of increasing responsibilities of emerging economies towards 
least  developed  countries  and  other  developing  countries.  Critical  issues  such  as  poverty 
alleviation, competitiveness and trade liberalisation, the environment, climate change, energy, 
sustainable development, decent work, including respect for core labour standards and social 
dialogue, enhancing digital literacy skills and inclusion, pandemics, cyber security, terrorism 
and organised crime including piracy can only be tackled in an international context. Against 
the backdrop of accelerating globalisation, it is essential that the internal agenda of securing 
sustainable growth and jobs in Europe and the EU's internal policies in general are backed up 
by appropriate external financial assistance. This external dimension of internal policy should 
bring  greater  consistency  and  coherence  to  EU  external  action  avoiding  duplication  and 
increasing impact. 

The  Partnership  Instrument  will  therefore  give  priority  to  supporting  other  external  EU 
policies  like  trade  as  well  as  the  external  dimension  of  EU  policies  on  climate  change,  the 
environment,  energy,  transport,  employment  and  social  policy,  as  well  as  information  and 
communication  technologies.  Under  the  Partnership  Instrument,  climate  mainstreaming  and 
climate  objectives  will  be  particularly  relevant  to  activities  promoting  policy  dialogue  with 
industrialised and emerging economies. 

Resource  efficiency  will  be  crucial  to  keeping  economic  growth  sustainable  within 
environmental constraints. The EU is adopting a Resource Efficiency Strategy as one of the 
flagships  of  the  “Europe  2020”  strategy.  This  will  affect  EU  norms  but  will  only  be  truly 
effective  if  resource-efficient  practices  are  adopted  by  all  major  economies.  Emerging 
economies  have  the  opportunity  to  leapfrog  the  unsustainable  consumption  and  production 
patterns  that  were  often  followed  by  the  EU  and  other  advanced  economies  during  their 
industrialisation and the EU has every interest in helping them to do so.  

However, emerging economies, especially India and China, also have huge populations living 
in absolute poverty and depending on healthy ecosystems such as clean water and productive 
seas and forests for their livelihoods. At the same time, Brazil, South Africa, India and China 
have  huge  biodiversity.  These  economies  also  shape  resource  utilisation  in  the  rest  of  the 
developing world, especially in poorer developing countries. Cooperation on the protection of 
ecosystems  and  managing  them  sustainably  are  in  the  mutual  interest  of  the  EU  and  its 
partners.  

Dialogue and practical co-operation with the key global energy producers and consumers are 
essential  in  order  to  address  the  challenge  of  safeguarding  the  EU's  energy  security, 
particularly as we become more import dependent, along with promoting a global low-carbon 

2

"Trade,  Growth  and  World  Affairs  -  TRADE  POLICY  AS  A  CORE  COMPONENT  OF  THE  EU’S 
2020 STRATEGY" (COM/2010/612) of 9.11.2010 

EN 

4 

   EN 

 
                                                 
 
agenda, sustainable energy policies, transparency and predictability on global energy markets 
and technology cooperation. 

As  a  number  of  countries  graduate  from  bilateral  development  assistance,  they  are  seeking 
new  forms  of  cooperation.  In  the  field  of  technology  and  innovation,if  it  is  to  remain  a 
strategic  partner  and  continue  to  be  a  leader  in  global  standards,  the  EU  must  be  able  to 
establish partnerships in these areas based on mutual interest. 

The external projection of the EU's internal policies will therefore be fully integrated in the 
programming  of  the  Partnership  Instrument.  Within  its  limited  financial  envelope,  it  can 
complement the  external  dimension  of  internal  policies  conducted  under  other  EU 
programmes (such as action under the Horizon 2020 Framework Programme for Research and 
Innovation, the Competitiveness and SME Programme including cooperation on Tourism, the 
Migration  Fund  and  the  Internal  Security  Fund  as  well  as  the  "Erasmus  for  All" 
Programme) in order to avoid any duplication. It can also support other EU external policies 
such  as  trade.  Coherence  and  complementarity  with  other  external  action  geographical 
instruments, in particular the Development Cooperation Instrument, will be taken into account 
throughout  the  programming  stage  while  integrating  the  principles  of  differentiation  and 
concentration. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The  European  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?' prepared by Commission and EEAS staff.  

The  majority  of  the  respondents  (around  70 %)  confirmed  that  EU  financial  assistance 
provided  substantial  added  value  in  the  main  policy  areas  supported  by  EU  financial 
instruments for external action3. Many mentioned EU added value as the main driver for the 
future: they considered that the EU should harness this comparative advantage — linked to its 
global  presence,  wide-ranging  expertise,  supranational  nature,  its  role  as  a  facilitator  of 
coordination — and economies of scale. 

Nearly  all  respondents  (92 %)  supported  a  more  differentiated  approach,  tailored  to  the 
situation of the beneficiary country and based on sound criteria and efficient data collection, 
as a way to increase the impact of EU financial instruments. 

Opinions  were  mixed  on  simplification  of  the  instruments  and  the  balance  between 
geographical and thematic instruments. Many feared that reducing the number of EU thematic 
programmes could imply a decrease in the overall amount available for thematic action and, 
instead,  called  for  simplification  of  the  rules  governing  access  to  and  implementation  of 
thematic funding. Increasing the geographical flexibility of the EU instruments was supported 
by a significant majority as a way to respond to inter-regional challenges. 

3 

i.e.  peace  and  security,  poverty  reduction,  humanitarian  aid,  investing  in  stability  and  growth  in 
enlargement and neighbourhood countries, tackling global challenges, promoting EU and international 
standards and values, and supporting growth and competitiveness abroad. 

EN 

5 

   EN 

 
                                                 
When  asked  to  prioritise  different  areas  of  interest,  most  stakeholders  mentioned  ‘macro-
economic and financial stability, economic growth’ and ‘promotion of trade and investments’, 
followed  by  ‘energy,  resource  efficiency  and  climate  change’  and  ‘employment  and  social 
issues (inclusive growth and decent work)’. 

A vast majority of respondents also agreed that the private sector is the main driving force for 
economic development and, as such, contributes significantly to sustainable growth. For this 
reason,  they  advocated  more  extensive  EU  engagement  with  the  business  community  as  a 
partner in the EU and in third countries in order to involve the private sector increasingly — 
both financially and in knowledge-gathering — as a driver for sustainable development. 

Many agreed that joint programming and co-financing with Member States could increase the 
impact  and  coherence  of  EU  external  action,  simplify  delivery  of  aid  and  reduce  overall 
transaction costs. 

With  respect  to  performance  evaluation,  a  stronger  focus  on  monitoring  activities  during 
implementation  of  projects  and  programmes,  along  with  greater  simplification  of  the  rules 
governing external financing, received wide approval as a means to ensure that EU external 
instruments deliver the expected impact. 

A  large  number  of  stakeholders  supported  stepping  up  information  and  communication 
activities  to  raise  the  profile  of  EU  external  funding,  in  particular  in  beneficiary  countries. 
However,  EU  visibility  appears  to  be  better  served  by  effective  policies,  strategies  and 
presence  in  third  countries  than  by  additional  spending  on  communication.  The  idea  of 
reinforcing the EU’s coordinating role among other donors and of ensuring that implementing 
partners give more visibility to EU funding also received strong support. 

Before  submitting  this  proposal  for  the  Partnership  Instrument,  the  Commission  considered 
four  policy  options:  discontinue  the  ICI;  maintain  the  status  quo;  amend  the  DCI  to  allow 
expenditure  that  is  not  official  development  assistance;  or  introduce  a  new  instrument 
building on the ICI/ICI+. 

After  careful  evaluation,  neither  discontinuing  the  ICI  nor  maintaining  the  status  quo  were 
deemed to be politically viable solutions. Limiting expenditure exclusively to action linked to 
poverty  alleviation  or  maintaining  this  sole  focus  for  cooperation  with  emerging  economies 
would artificially limit the EU’s external action and neglect core EU interests. 

The  option  of  amending  the  Development  Cooperation  Instrument  to  allow  expenditure  not 
related  to  official  development  assistance  would  have  the  advantage  of  geographical 
coherence (one instrument per country), but the  difficulties of  managing an instrument with 
two very different objectives were considered a serious handicap. 

Assessment of impacts  

Economic: 

third  countries,  providing 

Introduction of a new Partnership Instrument would provide the EU with another opportunity 
to promote its enterprises (SME’s in particular) and products. It could support EU businesses 
in 
innovation 
complementary  to  actions  financed  under  the  Competitiveness  and  SME  Programme  and 
under  Horizon  2020  (research  and  innovation).  It  could  support  EU  international  trade  and 
investment which, in turn, could facilitate foreign investment into the EU. It can also play a 

for  EU  competitiveness  and 

incentives 

EN 

6 

   EN 

 
role in south-south trade and cooperation by promoting responsible business practices by our 
partners  in  third  countries,  especially  poorer  developing  countries.  Numerous  areas  of 
cooperation  could  be  pursued  including  climate  change,  energy4,  the  environment, 
approximation  of  technical  regulations  and  standardisation,  corporate  social  responsibility, 
intellectual  property  rights,  protection  of  personal  data,  best  practises  in  economic,  trade, 
investment, tax and financial matters and tourism. This could strengthen the EU’s economic 
security  and  create  new  jobs  which,  ultimately,  would  contribute  to  economic  growth.  The 
new Instrument could foster well developed forms of economic cooperation between the EU 
and  partner  countries.  In  this  context,  it  would  allow  the  EU  to  ensure  that  policy  and 
programme  design  and  implementation  take  adequate  account  of  environmental,  sustainable 
energy, social, employment and other welfare values. 

Social: 

By  aligning  the  EU's  and  Member  States’  financing  instruments  and  by  supporting  joint 
activities  with  other  bilateral  and  multilateral  donors,  the  new  Instrument  could  have  a 
significant  impact  on  the  social  fabric  of  emerging  countries.  It  could  support  reforms  of 
welfare  systems,  national  employment  policies,  national  training  and  skills’  development 
policies,  education,  research  and  innovation  capacity  building  programmes  and  measures  to 
strengthen  national  safety  “nets”.  Creating  extra  “green”  jobs  would  increase  income  and 
strengthen social cohesion and poverty alleviation strategies at national level. In this respect, 
it would contribute to successful implementation of the international social agenda promoted 
by the UN International Labour Organisation and the G8/G20.  

Environmental: 

EU  partnerships  under  the  new  Instrument  will  aim  to  encourage  and  support  growth  and 
long-term environmental sustainability. In this respect, the new Instrument is expected to play 
a key role in providing support for both EU and partner countries’ environmental and climate 
change-related  actions  and  policy  dialogues.  The  Instrument  could  support  a  low-carbon 
business  model  by  providing  incentives  to  the  European  private  sector.  Building  on  the 
successful results of the COP-16 United Nations Conference on Climate Change in Cancún, it 
could  be  used  to  help  EU  businesses  to  develop  effective  and  low-cost  policies  to  achieve 
environmentally friendly goals in the partner countries. It would also help partner countries to 
reap the full environmental, ecological and energy-efficiency benefits of innovation. It could 
promote  the  transition  to  a  green  and  resource  efficient  economy.  Rising  demand  for 
commodities in emerging economies means that there is a need to promote the exchange of 
private  sector  best  practice  and  greening  procurement  policies.  The  Instrument  could  allow 
cooperation  to  gain  a  better  understanding  of  the  economic  and  social  costs  of  biodiversity 
loss and ecosystem degradation in countries of global significance. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

In the discussions held by the legislative authority on the Commission’s proposal on the ICI+ 
(COM/2009/197)  and  following  the  entry  into  force  of  the  Lisbon  Treaty,  an  understanding 
has been reached between the three institutions to use Articles 207(2) and 209(1) of the Treaty 
on  the  Functioning  of  the  European  Union  to  carry-out  activities  beyond  development 

4 

"The EU Energy Policy: Engaging with Partners beyond our borders".COM(2011) 539 of 7.09.2011 

EN 

7 

   EN 

 
                                                 
cooperation in developing countries. For countries “other than developing countries”, Article 
212(2) of the TFEU is used.  

Further to that agreement, the proposed Partnership Instrument would therefore be based on 
the  combination  of  the  following  three  articles  of  the  TFUE:  Articles  212(2),  207(2)  and 
209(1). 

The  EU  has  numerous  international  agreements  with  partner  countries  all  over  the  world, 
unmatched  by  individual  Member  States,  which  gives  the  Union  influence  in  virtually  every 
field  of  international  relations.  With  27  Member  States  acting  within  common  policies  and 
strategies, the EU has the critical mass to respond to global challenges. The EU is also in a 
unique  position  to  promote  EU  norms  and  standards,  and  turn  them  into  global  standards 
through international cooperation. 

The proposed Partnership Instrument will offer greater added value than the existing situation 
as it embraces the “Europe 2020” strategy based on green growth oriented cooperation, with a 
stronger emphasis on EU interests in cooperation with emerging and industrialised countries 
and  a  stronger  focus  on  improving  the  climate  for  business,  investment,  trade  and  research 
and  innovation.  It  should  develop  a  proactive  agenda  of  mutual  interests  with  partner 
countries with a specific focus on EU strategic partners. 

The  new  Partnership  Instrument  would  also  honour  better  the  EU’s  commitments  to  third 
countries with which it has concluded Partnership and Cooperation/Framework Agreements. 
It would add credibility and consistency to the EU's external policy of linking the promotion 
of  its  values  and  interests  with  specific  cooperation  activities.  Within  the  framework  of  the 
agreements, the Partnership Instrument could also act as a catalyst for joint EU and Member 
States  projects,  as  the  EU  and  its  Member  States  are  bound  by  their  provisions.  Finally,  it 
would support the EU’s regional and bilateral policies, along with the EU’s commitments to 
regional and international cooperation processes and bodies. 

The  EU’s  economic  cooperation  activities,  business  dialogues  and  other  forms  of  external 
economic action could be a powerful foreign policy tool. They could contribute to project the 
EU’s  visibility  and  influence  externally.  This  could  support  Europe’s  ambition  to  become  a 
key  economic  and  political  player  on  the  international  scene  both  bilaterally  and  within 
multilateral bodies such as the G20. 

Moreover,  joint  action  with  EU  Member  States  and  innovative  ways  to  mobilise  resources 
could become more frequent and feasible under the Partnership Instrument than in the current 
situation under the ICI. More money will be available to support co-financing operations in 
cooperation with EU Member States bilateral aid or financial bodies or agencies. Multiannual 
programming  would  allow  more  structured  and  integrated  business.  Public  and  private 
partnerships  could  be  more  achievable,  involving  several  stakeholders  from  the  European 
business  community.  Blending  grants  and  loans  could  also  become  a  preferred  option 
whenever relevant.  

Choice of Instrument 

The  Commission  considers  that  extending  the  scope  of  the  Development  Cooperation 
Instrument  to  cover  non-development  action  creates  the  risk  of  tension  between  different 
objectives  and  could  lead  to  significant  delays  in  decision-making  and  implementation.  It 
recommends creating a single new global instrument focusing on defending core EU interests 

EN 

8 

   EN 

 
and  addressing  challenges  of  global  concern  with  a  clearly  defined  scope  of  activities. 
Therefore, the Commission recommends proposing a new instrument. 

Tabling  a  proposal  for  a  new  instrument  is  considered  the  best  option.  There  is  broad 
consensus on building on the current set of financial instruments, although it is necessary to 
reflect the institutional changes brought by the Lisbon Treaty. Under this option, the current 
structure  of  the  instruments,  which  both  stakeholders  and  EU  Member  States  consider 
pertinent  and  adequate,  would  remain  largely  unchanged.  However,  a  new  Partnership 
Instrument with global reach and focused objectives will contribute to a thorough adaptation 
of the existing methods of policy making, programming and delivering results. 

4. 

BUDGETARY IMPLICATION 

The financial allocation proposed for the Partnership Instrument totals EUR 1 131 million, at 
current prices, over the period 2014-2020. This amount is compatible with Heading 4 "Global 
Europe" of the proposed Financial Framework for 2014-2020. 

To  ensure  its  predictability,  funding  for  higher  education  activities  in  third  countries  in  the 
context  of  "Erasmus  for  All"  programme  will  be  made  available,  in  line  with  EU  external 
action  objectives,  through  2  multi  annual  allocations  only  covering  the  first  4  years  and  the 
remaining  3  years  respectively.  This  funding  will  be  reflected  in  the  multiannual  indicative 
programming of the Partnership Instrument, in line with the identified needs and priorities of 
the  countries  concerned.  The  allocations  can  be  revised  in  case  of  major  unforeseen 
circumstances  or  important  political  changes  in  line  with  the  EU  external  priorities.  The 
provisions of the "Erasmus for All" Regulation (EU) No [--] of the European Parliament and 
of the Council establishing "Erasmus for All"5 will apply to the use of those funds. 

5. 

OPTIONAL ELEMENTS 

Simplification 

One  priority  for  the  Commission  in  this  new  Regulation,  as  in  other  programmes  under  the 
Multi-annual  Financial  Framework,  is  to  simplify  the  regulatory  environment  and  facilitate 
access to Union assistance for partner countries and regions, civil society organisations, etc. to 
the extent that these pursue the objectives of the Regulation. 

The  new  PI  Regulation  would  allow  swifter  adoption  of  implementing  measures  and,  thus, 
more leeway for cooperation. Furthermore, the revision of the Financial Regulation, which is 
particularly substantial with regard to the special provisions on external action, will facilitate 
participation by civil society organisations and SMEs 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 revised Financial Regulation. 

The  implementation  rules  are  contained  in  the  Regulation  (EU)  No  of  the  European 
Parliament  and  of  the  Council  of  [--]  establishing  the  common  rules  and  procedures  for  the 
implementation of the Union's instruments for external action. 

5 

OJ L … 

EN 

9 

   EN 

 
                                                 
2011/0411 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a Partnership Instrument for cooperation with third countries 

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 207(2), 209(1) and 212(2) thereof, 

Having regard to the proposal from the European Commission, 

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

This  Regulation  constitutes  one  of  the  instruments  providing  direct  support  for  the 
European  Union’s  external  policies.  It  will  replace  the  Regulation  of  the  European 
Parliament  and  of  the  Council  No  1934/2006  of  21  December  2006  establishing  a 
financing  instrument  for  cooperation  with  industrialised  and  other  high  income 
countries and territories (ICI)6. 

Over  the  last  decade,  the  Union  has  consistently  strengthened  its  bilateral  relations 
with  a  broad  range  of  industrialised  and  other  high-income  countries  and  territories 
across  different  regions  of  the  world,  primarily  in  North  America,  East  Asia  and 
Australasia, but also in South-East Asia and the Gulf region.  

Furthermore, since 2007 the Union has strengthened and deepened its cooperation and 
partnership with developing and transition countries in Asia, Central Asia, and Latin 
America and with Iraq, Iran, Yemen and South Africa on the basis of Regulation (EC) 
No 1905/2006 of the European Parliament and of the Council of  18 December 2006 
establishing a financing instrument for development cooperation (DCI).  

The  scope  of  cooperation  under  the  geographic  programmes  with  developing 
countries,  territories  and  regions  established  under  the  Development  Cooperation 
Instrument  is  limited  to  financing  measures  designed  to  fulfil  the  criteria  set  for 
official development assistance (ODA) set by the Development Assistance Committee 
of the Organisation for Economic Cooperation and Development (DAC/OECD). 

6 

OJ L 405, 30.12.2006. 

EN 

10 

   EN 

 
                                                 
(5) 

(6) 

(7) 

(8) 

(9) 

Preparatory  actions  such  as  business  dialogues,  trade  promotion  and  scientific 
exchanges were set up to strengthen and deepen cooperation in areas outside the scope 
of  the  Development  Cooperation  Instrument  with  India  and  China  and  with  middle-
income group countries in Asia and Latin America.  

Furthermore,  the  Union  has  been  strengthening  its  bilateral  relations  with  other 
increasingly  prominent  middle-income  developing  countries  in  Asia  and  Latin 
America  by  expanding  cooperation  partnership  and  policy  dialogues  to  areas  and 
subjects  beyond  development  cooperation.  In  the  case  of  Russia,  relations  have  also 
evolved, 
the  Union-Russia  Partnership  for  Modernisation, 
underlining  the  importance  of  Russia  as  a  strategic  partner  for  the  Union  both  in 
bilateral relations and in global affairs. 

including 

through 

It  is  in  the  Union’s  interest  to  deepen  its  relations  with  partners  who  are  playing  an 
increasingly  important  role  in  the  international  economy  and  trade,  in  south-south 
trade  and  cooperation,  in  multilateral  fora  including  Group  of  Twenty  Finance 
Ministers and Central Bank Governors (G 20), in global governance and in addressing 
challenges  of  global  concern.  The  Union  needs  to  build  comprehensive  partnerships 
with new players on the international scene, in order to promote a stable and inclusive 
international order, pursue common global public goods, defend core interests of the 
Union and increase knowledge of the Union in these countries.  

The  EU  needs  a  financial  instrument  of  global  scope  allowing  the  financing  of 
measures  that  might  not  qualify  as  ODA  but  which  are  crucially  important  for 
deepening  and  consolidating  its  relations  with  the  partner  countries  concerned,  in 
particular through policy dialogues and development of partnerships. 

Notwithstanding  the  specific  focus  on  global  players,  the  scope  of  this  Regulation 
should  be  worldwide  enabling  to support  cooperation  measures  with  developing 
countries where the Union has significant interests in accordance with the objectives of 
this Regulation. 

(10) 

In the “Europe 2020” strategy7 the Union has reiterated its sustained commitment to 
promote  in  its  internal  and  external  policies  smart,  inclusive  and  sustainable  growth 
bringing together three pillars: economic, social and environmental.  

(11)  The Union is committed in relations with its partners worldwide to promoting decent 
work for all along with ratification and effective implementation of the internationally 
recognised labour standards and multilateral environmental agreements. 

(12) 

In  particular,  fighting  climate  change  is  recognised  as  one  of  the  great  challenges 
which the Union faces and the area where urgent international action is necessary. In 
accordance  with  the  intent  stated  in  the  Commission  Communication  “A  budget  for 
Europe 2020”8 of increasing the climate related proportion of the Union budget to at 
least 20%, this Regulation should contribute to that goal. 

(13)  The Union is committed to helping to meet the global 2020 biodiversity targets and to 

deliver on the associated Strategy for resource mobilisation. 

7 
8 

“Europe 2020”: A strategy for smart, sustainable and inclusive growth” COM (2010) 2020. 
COM/2011/500. 

EN 

11 

   EN 

 
                                                 
(14)  Under  this  Regulation,  the  Union  should  support  the  implementation  of  the  “Europe 
2020”  strategy,  in  particular  objectives  relating  to  climate  change,  the  transition  to  a 
greener  economy  and  resource  efficiency,  trade  and  investment,  business  and 
regulatory  cooperation  with  third  countries,  and  should  promote  public  diplomacy, 
education/academic cooperation and outreach activities.  

(15)  Promotion  of  diversified  cooperation  and  partnership  initiatives  within  a  single 
instrument  should,  furthermore,  allow  economies  of  scale,  synergy  effects,  greater 
effectiveness, more streamlined decision-making and management and a high degree 
of visibility for the Union’s external action. 

(16) 

In  order  to  achieve  the  objectives  of  this  Regulation  it  is  necessary  to  pursue  a 
differentiated  and  flexible  approach  by  developing  models  for  cooperation  with  key 
partner countries which take into account their economic, social and political contexts 
and  also  the  Union’s  specific  interests,  policy  priorities  and  strategies,  whilst 
maintaining the ability to intervene all over the world wherever needed.  

(17)  The Union should be able to respond in a flexible and timely manner to evolving and 
/or  unforeseen  needs  in  order  to  make  its  commitment  to  promote  its  interests  in  its 
relations with third countries more effective, by adopting special measures not covered 
by multi-annual indicative programmes. 

(18) 

(19) 

(20) 

Since the objectives of this Regulation cannot be sufficiently achieved by the Member 
States  and  can  therefore,  by  reason  of  the  scale  of  the  action,  be  better  achieved  at 
Union  level,  the  Union  may  adopt  measures,  in  accordance  with  the  principle  of 
subsidiarity and proportionality as set out in  Article  5  of  the  Treaty  of  the  European 
Union.  In  accordance  with  the  principle  of  proportionality,  as  set  out  in  that  Article, 
this Regulation does not go beyond what is necessary to achieve those objectives. 

In order to adapt the scope of this Regulation to the rapidly evolving reality in third 
countries, the power to adopt acts in accordance with Article 290 of the Treaty of the 
Functioning of the European Union should be delegated to the Commission in respect 
of the detailed areas of cooperation defined in the Annex. It is of particular importance 
that the Commission should carry out appropriate consultations during its preparatory 
work,  including  at  expert  level.  The  Commission,  when  preparing  and  drawing-up 
delegated  acts,  should  ensure  simultaneous,  timely  and  appropriate  transmission  of 
relevant documents to the European Parliament and to the Council. 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission. Those powers should 
be exercised in accordance with Regulation N° 182/2011 of 16 February 2011 laying 
down  the  rules  and  general  principles  concerning  the  mechanisms  of  control  by 
Member  States  of  the  Commission’s  exercise  of  implementing  powers9.  Taking  into 
account  the  nature  of  those  implementing  acts,  in  particular  their  policy  orientation 
nature or their financial implications, the examination procedure should in principle be 
used  for  their  adoption,  except  for  technical  implementing  measures  of  a  small 
financial scale. 

9 

OJ L 055, 28.02.2011 P. 013 - 018 

EN 

12 

   EN 

 
                                                 
(21)  Common rules and procedures for the implementation of the Union's instruments for 
external action are laid down in Regulation (EU) No …/…of the European Parliament 
and  of  the  Council  of  …,  hereinafter  referred  to  as  ‘the  Common  Implementing 
Regulation’. 

(22)  The  organisation  and  functioning  of  the  European  External Action  Service are 

described in Council Decision 2010/427 EU.  

HAVE ADOPTED THIS REGULATION: 

Article 1 

Subject matter and objectives 

(1) 

This  Regulation  establishes  a  Partnership  Instrument  for  cooperation  with  third 
countries  to  advance  and  promote  EU  and  mutual  interests.  The  Partnership 
Instrument shall support measures that respond in an effective and flexible manner to 
objectives  arising  from  the  Union's  bilateral,  regional  or  multilateral  relationships 
with third countries and address challenges of global concern. 

(2) 

The measures to be financed under this Instrument shall reflect the following specific 
Union objectives: 

(a) 

(b) 

implementing  the  international  dimension  of  the  “Europe  2020”  strategy  by 
supporting  Union’s  bilateral, 
inter-regional  cooperation 
partnership  strategies,  by  promoting  policy  dialogues  and  by  developing 
collective  approaches  and  responses  to  challenges  of  global  concern  such  as 
energy  security,  climate  change  and  environment.  This  objective  shall  be 
measured  by  the  uptake  of  the  “Europe  2020”  policies  and  objectives  by  key 
partner countries; 

regional  and 

improving  market  access  and  developing  trade,  investment  and  business 
opportunities for European companies by means of economic partnerships and 
business  and  regulatory  cooperation.  This  objective  shall  be  measured  by  the 
Union’s  share  in foreign  trade  with  key  partner  countries and  by  trade  and 
investments  flows  to  partner  countries  specifically  targeted  by  actions, 
programmes and measures under this Regulation;  

(c) 

enhancing widespread understanding and visibility of the Union and its role on 
the  world  scene  by  means  of  public  diplomacy,  education/academic 
cooperation  and  outreach  activities  to  promote  Union’s  values  and  interests. 
This objective may be measured, inter alia, by opinion surveys or evaluations. 

Article 2 

Scope 

(1) 

All third countries, regions and territories may be eligible for cooperation under this 
Regulation. 

EN 

13 

   EN 

 
 
 
(2) 

(1) 

(2) 

(3) 

(4) 

(5) 

this  Regulation 

shall  primarily support 

However, 
cooperation  measures 
with developed and developing countries which play an increasingly prominent role 
in the international economy and trade, in multilateral fora, in global governance and 
in  addressing  challenges  of  global  concern  and  where  the  Union  has  significant 
interests.  

Article 3 

General principles 

The  Union  seeks  to  promote,  develop  and  consolidate  the  principles  of  liberty, 
democracy, respect for human rights and fundamental freedoms and the rule of law 
on which it is founded by means of dialogue and cooperation with third countries.  

To  enhance  the  impact  of  the  Union’s  assistance,  a  differentiated  and  flexible 
approach shall be pursued, where appropriate, in designing cooperation with partner 
countries to take account of their economic, social and political contexts as and also 
of the Union’s specific interests, policy priorities and strategies.  

Within  their  respective  spheres  of  competence,  the  Union  and  the  Member  States 
shall  promote  a  multilateral  approach  to  global  challenges  and  shall  foster 
cooperation  with  international  or  regional  organisations  and  bodies,  including 
international financial institutions, United Nations agencies, funds and programmes, 
OECD,  and  the  Group  of  Twenty  Finance  Ministers  and  Central  Bank  Governors 
(G20) and other bilateral donors.  

In  implementing  this  Regulation,  the  Union  shall  aim  to  ensure  coherence  and 
consistency  with  other  areas  of  its  external  action,  in  particular  the  Development 
Cooperation  Instrument  for  developing  countries,  and  with  other  relevant  Union’s 
policies  when  formulating  policy,  strategic  planning  and  programming  and 
implementing measures. 

Measures  financed  under  this  Regulation  shall  be  based,  where  appropriate,  on 
cooperation  policies  set  out  in  instruments  such  as  agreements,  declarations  and 
action  plans  between  the  Union  and  the  third  countries  and  regions  concerned,  and 
shall also relate to areas linked to the Union’s specific interests, policy priorities and 
strategies.  

(6) 

Union  support  under  this  Regulation  shall  be  implemented  in  accordance  with  the 
Common Implementing Regulation. 

Article 4 

Areas of cooperation 

Detailed areas of cooperation to be pursued by the Union’s assistance under this Regulation 
are  listed  in  the  Annex.  The  Commission  shall  be  empowered  to  adopt  delegated  acts  in 
accordance with Article 7 to amend or supplement the Annex.  

EN 

14 

   EN 

 
 
 
(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

Article 5 

Programming and Indicative allocation of funds 

Multi-annual  indicative  programmes  shall  be  adopted  by  the  Commission  in 
accordance  with  the  examination  procedure  referred  to  in  Article  15  (3)  of  the 
Common  Implementing  Regulation.  This  procedure  shall  also  apply  to  substantial 
reviews  which  have  the  effect  of  changing  significantly  the  strategy  or  its 
programming. 

The  multi-annual  indicative  programmes  shall  set  out  the  Union’s  strategic  and/or 
mutual  interests  and  priorities,  the  specific  objectives  and  expected  results.  For 
countries  or  regions  for  which  a  Joint  Framework  Document,  laying  down  a 
comprehensive  Union  strategy has  been  established,  the  multi-annual  indicative 
programmes shall be based on this document. 

The multiannual indicative programmes shall also set out the priority areas selected 
for  financing  by  the  Union  and  shall  outline  the  indicative  financial  allocation  of 
funds,  both  overall,  per  priority  area  and  per  partner  country  or  group  of  partner 
countries  for  the  period  concerned  including  the  participation  in  global  initiatives; 
these amounts may, where appropriate, be expressed in the form of a range.  

The  multiannual  indicative  programmes  shall  be  adjusted  where  necessary,  taking 
into  account  any  mid-term  or  ad  hoc  reviews  of  the  reference  document  on  which 
they are based. 

A  Reserve  for  unallocated  funds  may  be  established  in  the  multi-annual  indicative 
programmes.  The  allocation of these  funds shall be decided in accordance with the 
Common Implementing Regulation. 

The  examination  procedure  referred  in  paragraph  (1)  shall  not  apply  to  non-
substantial  modifications  to  multiannual  indicative  programmes,  making  technical 
adjustments,  reassigning  funds  within  the  indicative  allocations  per  priority  area  or 
increasing  or  decreasing  the  size  of  the  initial  overall  allocation  by  less  than  20%, 
provided  that these modifications do not  affect the  priority areas  and  objectives set 
out  in  the  multi-annual  indicative  programmes.  Such  adjustments  shall  be 
communicated within one month to the European Parliament and to the Council.  

(7) 

The  procedure  referred  in  Article  15(4)  of  the  Common  Implementing  Regulation 
may  be  applied  for  modifying  multiannual  indicative  programmes  where  a  swift 
response from the Union is required.  

Article 6 

Committee 

The Commission shall be assisted by the Partnership Instrument committee. That committee 
shall be a committee within the meaning of Regulation (EU) No 182/2011. 

EN 

15 

   EN 

 
 
 
(1) 

(2) 

(3) 

(4) 

1. 

2. 

Article 7 

Exercise of delegation 

The delegation of powers referred to in Article 4 shall be conferred for the period of 
validity of this Regulation. 

The delegation of powers may be revoked at any time by the European Parliament or 
by the Council. A decision of revocation shall put an end to the delegation of power 
specified in that decision. It shall take effect the day following the publication of the 
decision  in  the  Official  Journal  of  the  European  Union  or  at  a  later  date  specified 
therein. It shall not affect the validity of any delegated acts already in force. 

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to 
the European Parliament and the Council. 

A delegated act adopted shall enter into force only if no objection has been expressed 
either  by  the  European  Parliament  or  the  Council  within  a  period  of  2  months  of 
notification  of  the  act  to  the  European  Parliament  and  the  Council  or  if,  before  the 
expiry of that period, the European Parliament and the Council have both informed 
the Commission that they will not object. That period shall be extended by 2 months 
at the initiative of the European Parliament or the Council. 

Article 8 

Financial reference amount 

The financial reference amount for implementation of this Regulation for the period 
from  2014  to  2020  shall  be  EUR 1 131 000 000.  Annual  appropriations  shall  be 
decided by the budgetary authority as part of the annual budget procedure within the 
limits set in the Multiannual Financial Framework. 

As  referred  to  in  Article  13,  paragraph  2  of  the  "Erasmus  for  All"  Regulation,  in 
order  to  promote  the  international  dimension  of  higher  education,  an  indicative 
amount of EUR 1 812 100 000 from the different external instruments (Development 
Cooperation  Instrument,  European  Neighbourhood  Instrument,  Instrument  for  Pre-
accession Assistance, Partnership Instrument and the European Development Fund), 
will be allocated to actions of learning mobility to or from non EU countries and to 
cooperation and policy dialogue with authorities/institutions/organisations from these 
countries. The provisions of the "Erasmus for All" Regulation will apply to the use of 
those funds. 

The funding will be made available through 2 multiannual allocations only covering 
the first 4 years and the remaining 3 years respectively. This funding will be reflected 
in  the  multiannual  indicative  programming  of  these  instruments,  in  line  with  the 
identified  needs  and  priorities  of  the  countries  concerned.  The  allocations  can  be 
revised in case of major unforeseen circumstances or important political changes in 
line with the EU external priorities. 

EN 

16 

   EN 

 
 
 
Article 9  

European External Action Service 

Application  of  this  Regulation  shall  be  in  accordance  with  Council  Decision  2010/427  EU 
establishing the organisation and functioning of the European External Action Service.  

Article 10 

Entry into force 

1. 

2. 

This Regulation shall enter into force on the third day following its publication in the 
Official Journal of the European Union. It shall apply from 1 January 2014. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

17 

   EN 

 
 
 
ANNEX 

DETAILED AREAS OF COOPERATION UNDER THE PARTNERSHIP INSTRUMENT 

To  support  the  objectives  provided  for  in  Article  1,  Union  assistance  may  include,  inter  alia,  the 
following areas of cooperation: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

support  to  specific  initiatives,  including  research  work,  studies,  pilot  schemes  or  joint 
projects  destined  to  respond  in  a  effective  and  flexible  manner  to  cooperation  objectives 
arising from the Union’s relationships with third countries concerned; 

the  promotion  of  cooperation,  partnerships  and  joint  undertakings  between  economic, 
social, cultural, governmental and scientific actors in the Union and third countries; 

the facilitation of (and support of) trade relations and trade integration processes, including 
south-south,  support  to  Union  investment  flows  and  economic  partnerships,  including  a 
focus on small and medium-sized enterprises; 

the  promotion  of  policy  and  sectoral  dialogues  involving  Union  and  non-Union  political, 
economic,  regulatory,  environmental,  social,  research  and  cultural  actors  and  non-
governmental organisations; 

the promotion of outreach activities, intellectual exchanges and the enhancement of inter-
cultural dialogues; 

the promotion of initiatives and actions of Union or mutual interest in areas such as climate 
change,  environmental  matters  including  biodiversity,  resource  efficiency,  raw  materials, 
energy,  transport,  science,  research  and  innovation,  employment  and  social  policy, 
sustainable  development,  including  promotion  of  decent  work,  and  corporate  social 
responsibility,  south-south  trade  and  cooperation,  education,  culture,  tourism,  information 
and communication technologies, health, justice, customs, taxation, financial, statistics and 
any other matter pertaining to the Union’s specific interests or of mutual interest between 
the Union and third countries; 

(g) 

the enhancement of awareness about and understanding of the Union and of its visibility in 
third countries. 

EN 

18 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management method(s) envisaged  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party participation in financing  

3.3.  Estimated impact on revenue

EN 

19 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT FOR PROPOSALS 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  (EC)  N° 
…… establishing a Partnership Instrument for cooperation with third countries 

1.2. 

Policy area(s) concerned in the ABM/ABB structure10  

Title 19: External relations 

Activity 19 05: Relations and cooperation with industrialised third countries. 

The title of this budget chapter 19 05 corresponds to the current structure of the financial 
instruments  2007-2013.  It  is  proposed  to  keep  the  same  activity  19  05  but  to  modify  the 
title of this chapter for the period 2014-2020 as follows: 

19 05 : Cooperation with third countries under the Partnership Instrument 

1.3. 

Nature of the proposal/initiative  

⌧ The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action11  

(cid:133) 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  

This financing instrument aims to support the following strategic objective as stated in the 
Commission’s Communication “A budget for Europe 2020 Strategy – Part II” of 29 June 
2011 (COM/2011/500 - Budget for Europe 2020 Strategy - Part II. Policy Fiche “External 
Action”, p. 42): 

“Projecting  EU  policies  in  support  of  addressing  major  global  challenges  such  as 
combating climate change, reversing biodiversity loss, and protecting global public goods 
and  resources  should  be  further  strengthened.  The  Commission  proposes  to  develop  a 
proactive agenda of EU and mutual interests with third countries, with a specific focus on 
strategic partners.” 

1.4.2. 

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

Under the activity 19 05, the following three specific objectives will be pursued: 

10 
11 

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

EN 

20 

   EN 

 
                                                 
1) implementing the international dimension of the “Europe 2020” strategy by supporting 
Union’s  bilateral,  regional  and  inter-regional  cooperation  partnership  strategies,  by 
promoting  policy  dialogues  and  by  developing  collective  approaches  and  responses  to 
challenges of global concern. 

2)  improving  market  access  and  developing  trade,  investment  and  business  opportunities 
for European companies by means of economic partnerships and business and regulatory 
cooperation. 

3)  Enhancing  Europe’s  strong  presence  in  the  global  economy  and  its  role  on  the  world 
stage  by  supporting  public  diplomacy,  education/academic  cooperation  and  outreach 
activities and networks to promote EU values and interests. 

ABM/ABB activity(ies) concerned 

Activity 19 05 to be “re-titled” as follows: Cooperation with third countries under the 
Partnership Instrument 

1.4.3.  Expected result(s) and impact 

An innovative Partnership Instrument would enable the EU to push forward its policies across the 
world.  

Impact on the EU economy and EU economic dialogues with partner countries 

The implementation of a new Partnership Instrument would provide the EU with another window of 
opportunity  to  promote  its  enterprises  (SMEs  in  particular)  and  products.  It  would  create  the 
financial  possibility  to  support  EU  business  in  third  countries,  providing  incentives  for  EU 
competitiveness and innovation in a way that should remain complementary to the actions financed 
under  the  Competitiveness  and  SME  programme  and  under  Horizon  2020  (research  and 
innovation),  support  EU  international  trade  and  investment  which,  in  turn,  could  lead  to  the 
facilitation  of  foreign  investment  into  the  EU.  Numerous  areas  of  cooperation  could  be  pursued 
including climate change, environment, approximation of technical regulations and standardisation, 
corporate  social  responsibility,  intellectual  property  rights,  protection  of  personal  data,  best 
practises in economic, trade, tax and financial matters, south-south trade and cooperation. Thus, the 
EU’s  economic  security  could  be  strengthened  and  possibly  new  jobs  created  which,  ultimately, 
would contribute to economic growth. 

This Instrument could reinforce EU trade relations with partner countries having a positive impact 
on the EU balance of payments, economic and trade relations with the rest of the world while being 
consistent with market access/open market principles. As such, it could also contribute to lessen the 
risk  of  protectionism  as  well  as  supporting  international  competitiveness  and  the  ongoing 
globalisation process while making sure that all countries benefit in line with the principles of the 
“Europe 2020” strategy. 

The new Partnership Instrument would also contribute to support the EU’s competitiveness through 
targeted human resource development: the availability of highly skilled people and their capacity to 
innovate  and  undertake  science  and  technology  development  is  a  prerequisite  for  economic 
prosperity. 

Economic Impact on partner countries  

The  new  Instrument  could  foster  well  developed  forms  of  economic  cooperation  between  the  EU 
and  partner  countries.  In  this  context,  it  would  allow  the  EU  to  ensure  that  environmental, 

EN 

21 

   EN 

 
sustainable  energy,  social,  employment  and  other  welfare  values  are  adequately  considered  in 
policy programme design and implementation. 

Increased  investment  by  EU  companies  would  also  contribute  to  economic  growth  in  the  hosting 
country. Actions aiming at promoting Corporate Social Responsibility will improve social, labour 
and environmental rules and implementation in the partner country. 

By  contributing  technical  assistance,  the  Instrument  could  identify  sustainable  paths  for  fiscal 
consolidation of growth, thus helping countries in efforts to gain control of their accounts. It could 
also  support  initiatives  to  improve  administrative  efficiency,  the  productive  use  of  workers’ 
remittances  and 
in  national 
investments  and 
industrialisation  programmes  or  infrastructural  developments  in  order  to  promote  resource 
efficiency and sustainability, including in the production and use of energy. 

to  promote  new 

transfers  of 

technology 

Impact on economic governance 

The Partnership Instrument is also expected to have an impact on economic governance. With the 
crisis, hard lessons have been learnt about the limits of markets. It has called for revisiting the role 
of  government,  redefining  the  balance  between  state  and  market  and  searching  for  ways  to  boost 
citizens’ trust in both. 

The crisis demonstrated that public policies are the critical anchor of national economies in times of 
economic unrest as governments halted financial market freefall and avoided financial catastrophe. 
However,  the  ensuing  fiscal  pressures  in  many  countries  have  increased  the  need  to  cut  public 
expenditures, which in most cases means streamlining the state. This effort calls for reassessing the 
role of government intervention to achieve better and more effective governance, sound institutions 
and effective rules and procedures.  

Another important governance issue refers to anti-corruption, transparency and integrity. The new 
Instrument  could  be  directed 
their 
implementation.  New  initiatives  could  enhance  coordination  of  anti-corruption  and  transparency 
actions worldwide as well  as compliance  with  relevant international conventions, “best practices” 
and guidelines. 

improving  anti-corruption 

tools  and  reinforcing 

to 

Finally promoting the full engagement of strategic partners in global environmental policy making 
and governance especially with regard to Multilateral Environmental Agreements will be crucial to 
promoting sustainable economic change. 

Social impact on the EU economy  

The EU's ambition is to address interlinked social policies and identify strategic orientations going 
beyond  growth.  This  could  be  enhanced  by  economic  cooperation  with  partner  countries, 
strengthening  national  and  international  regulatory  frameworks  and  contributing  to  improved 
national,  regional  or  global  economic  governance.  These  strategies  and  approaches  could  have  a 
positive  impact  on  EU  employment  and  social  policies  such  as  the  EU  welfare  model  of  social 
protection,  the  creation  of  “green”  jobs,  the  “EU  2020”  social  agenda  etc.  Growing  competition 
from  emerging  economies  could  also  act  as  a  strategic  incentive  for  Europe  to  allocate  more 
resources  to  training  and  re-training,  improving  the  quality  of  teaching  and  research  and  to  the 
reform of domestic welfare systems.  

Social impact on partner countries 

EN 

22 

   EN 

 
By  harmonising  the  EU  and  EU  Member  States’  financing  instruments  and  by  supporting  joint 
activities with other bilateral and multilateral donors, the new Instrument could have an important 
impact on the social fabric of emerging countries. It could provide support to the reform of welfare 
systems,  national  employment  policies,  national  training  and  skills’  development  policies, 
education, research and innovation capacity building and programmes as well as the strengthening 
of national safety “nets”. Its contribution to extra “green” jobs creation, income-per-capita increases 
and effective social cohesion and poverty alleviation strategies at national level will be relevant. In 
this respect it would contribute to the successful implementation of the international social agenda 
promoted by the UN International Labour Organisation and G8/G20.  

Environmental impact on EU and partner countries  

Making “green” growth work, implementing the strategy and supporting partner countries in their 
policies for a more ecological growth path will figure among the top strategic priorities of the new 
Instrument for the coming years. 

EU  partnerships  through  the  new  Instrument  will  aim  at  encouraging  and  supporting  growth  and 
long-term environmental sustainability. In this respect, the new Instrument is expected to play a key 
role  in  providing  support  for  both  EU  and  partner  countries’  environmental  and  climate  change-
related actions and policy dialogues. 

The Instrument could support a low-carbon business model by providing incentives to the European 
private  sector.  Building  on  the  successful  results  of  the  COP-16  United  Nations  Conference  on 
Climate Change in Cancún, it could be used to help EU business to develop effective and least-cost 
policies to achieve environmentally friendly goals in the partner countries. It will also help partner 
countries’  economies  to  reap  the  full  environmental,  ecological  and  energy-efficient  benefits  of 
innovation. 

The  Instrument  could  allow  cooperation  to  better  understand  the  economic  and  social  costs  of 
biodiversity loss and ecosystem degradation in countries of global significance. 

1.4.4. 

Indicators of results and impact  

The three specific objectives will be monitored through the following three indicators: 

1)  Uptake  of  the  “Europe  2020”  policies  and  objectives  by  key  strategic  partner countries  and 
influence on policy formulation in these countries.  

2)  EU  share  in foreign  trade  with  key  partner  countries  as  well  as  trade  and  investments  flows  to 
partner countries specifically targeted by actions, programmes and measures under this Regulation. 

3) Better perception and enhanced mutual understanding of the EU in key strategic partner countries 
illustrated by inter alia surveys and/or evaluations. 

1.5. 

Grounds for the proposal/initiative  

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

See Explanatory Memorandum of the legislative proposal and Impact Assessment:  

The proposed Partnership Instrument is designed to overcome the limitation of the EU’s ability to 
engage  internationally  in  the  most  effective  way.  It  will  allow  the  EU  to  pursue  agendas  beyond 
development  cooperation  with  new  powers  and  to  defend  the  core  EU  agenda  globally  with  any 
other partner country if the need arises. The main features of the proposed partnership Instrument 

EN 

23 

   EN 

 
compared  to  the  preceding  Instrument  for  Cooperation  with  Industrialised  countries  are  the 
following: 

Geographical  coverage:  global  reach,  with  a  special  focus  on  strategic  partners  (industrialised 
countries, emerging economies, Russia). 

Objective:  Focus  on  advancing  EU  interests  and  “Europe  2020”  strategy,  by  responding  in  an 
effective and flexible manner to cooperation objectives arising from the Union's bilateral/regional 
relationship with partner countries and by addressing challenges of global concern. 

Priority areas: international dimension of the "Europe 2020" strategy, policy dialogues, challenges 
of  global  concern,  business  and  regulatory  cooperation,  bilateral/  trilateral  /regional  cooperation, 
public diplomacy, education/academic cooperation and outreach. 

Programming:  not  bound  to  ODA  requirements,  multi-annual  programmes  for  long-term 
investments, non-programmable provisions for swift response to changing environments and ad-hoc 
actions. 

1.5.2.  Added value of EU involvement 

The  EU  has  numerous  international  agreements  with  partner  countries  all  over  the  world,  not 
matched by individual Member States, which gives to all of them influence in virtually all fields of 
international relations. With 27 Member States acting within common policies and strategies, only 
the EU has the critical weight to respond to global challenges. The EU as a global player has the 
credibility and the neutrality which is not available to individual Member States. The EU is also in a 
unique  position  to  promote  EU  norms  and  turn  them  into  global  standards  through  international 
cooperation. 

The  proposed  Partnership  Instrument  will  demonstrate  enhanced  added  value  compared  with  the 
existing  situation  as  it  embraces  the  “Europe  2020”  strategy  based  on  green  growth  oriented 
cooperation, a stronger emphasis on EU  interests in cooperation with emerging and industrialised 
countries and a stronger focus on improving the climate for business, investment, trade and research 
and innovation. It should develop a proactive agenda of mutual interests with partner countries with 
a specific focus on EU strategic partners. 

The  new  Partnership  Instrument  would  also  better  honour  the  EU’s  commitments  towards  third 
countries with which it has concluded Partnership and Cooperation/Framework Agreements. It adds 
credibility  and  consistency  to  the  EU  external  policy  of  linking  the  promotion  of  its  values  and 
interests  with  specific  cooperation  activities.  Within  the  framework  of  the  agreements,  the 
Partnership Instrument could also act as a catalyst for joint EU and Member States projects as the 
EU and Member States are bound by their provisions. Finally, it would support the EU’s regional 
and  bilateral  policies,  as  well  as  the  EU’s  commitments  towards  regional  and  international 
cooperation processes. 

1.5.3.  Lessons learned from similar experiences in the past 

The Mid-Term Review (MTR) (COM/2009/196) of the financial Instrument for external actions, 
carried out in 2009, concluded that the limited scope of the Development Cooperation Instrument 
(DCI)  was  impeding  the  financing  of  activities  which  were  not  “partner-focused”  as  Official 
Development  Assistance  (ODA),  but  were  of  mutual  benefit  in  the  context  of  globalisation.  The 
Instrument  for  Development  Cooperation  (DCI)  was  not  considered  suitable  for  addressing  the 
problem  as  its  main  objective  is  the  promotion  of  the  economic  development  and  welfare  of 
developing countries, more specifically the eradication of poverty in partner countries and regions 

EN 

24 

   EN 

 
in  the  context  of  sustainable  development,  including  the  pursuit  of  the  Millennium  Development 
Goals.  This  limitation  was  affecting  the  most  dynamic  regions  of  the  world  (e.g.  Latin  America, 
Asia, South Africa) and the EU was left without a financial instrument to support the evolution of 
international relationships linked to globalisation, in particular with regards to emerging economies. 
For  that  purpose,  Preparatory  Actions  in  Latin  America  and  Asia  were  created  by  the  Budget 
Authority to temporarily fill the legislative gap. In April 2009, the European Commission proposed 
a  legislative  follow  up  (COM/2009/197)  to  allow  the  financing  of  measures  in  countries  falling 
under the DCI Regulation to extend the geographical scope of the current Industrialised Countries 
Instrument  (ICI)  to  developing  countries  (including  emerging  economies)  of  Asia  and  Latin 
America, and to Iran, Iraq, Yemen and South Africa.  

The Mid-Term Review (MTR) also recognised that the ICI, on which the current proposal for a new 
instrument is built on, has provided a flexible basis to develop cooperation with a wider number of 
industrialised and high-income territories, although the financial envelope was rather limited.  

In addition to the Mid-Term Review, evaluations of flagship programmes financed under the ICI 
Instrument “EU Gateway programme for Japan and the Republic of Korea” (financing EU pavilions 
in  trade  fairs)  and  the  EU  Centres  (university  consortia  delivering  "EU  studies"  modules  and 
disseminating key information about the EU to a very broad audience) were carried out in the past 
years and were very positive. 

Regarding  the  Executive  Training  Programme  (ETP)  (language  and  training  programmes  for 
managers), the evaluation conducted in 201012 has shown that the ETP presents a unique offering in 
terms of programme structure (familiarity with Japanese and Korean business culture are invaluable 
attributes)  and  target  audience  (both  large  and  small  and  medium  sized  companies  value  the 
programme). It provides an opportunity to potential participants from Member States who offer no 
similar  initiative.  Moreover,  it  provides  a  good  visibility  for  the  EU.  The  ETP  has  had  a  positive 
impact on EU companies committed to establishing/growing their business activities with Japan and 
Korea in terms of assisting the EU company to access Japanese/Korean markets; bringing sustained 
impact on EU companies’ business, rather than a short term and temporary effect, and in terms of 
broadening the business possibilities of EU companies in other Asian countries. 

The evaluation, conducted in 201013, on EU Centres (dedicated to public diplomacy) Initiative has 
shown that “the Centres are adding real value and that the Commission benefits from the Initiative 
to a great extent. The amount of work conducted by the Centres compensates by far the costs that 
the  Commission  incurs  on  the  programme”.  The  programme  has  achieved  a  solid  base  in  those 
countries  that  have  been  pioneers  to  the  Initiative  (USA  and  Canada)  and  is  successfully  striving 
towards higher levels of maturity in Australia and New Zealand. The EU funding has the capacity 
to  act  as  seed  money,  mainly  by  attracting  other  sources  of  funding  that  are  pulled  towards  the 
Initiative to ensure its long term sustainability. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The  Lisbon  Treaty  sets  out  common  principles  and  objectives  and  defines  a  new  institutional 
framework for the Union’s external action (notably the EEAS), leading to high expectations in the 
field of external action both internally within the EU and by partners at national and regional level, 
including in the multilateral context. The Partnership Instrument (PI) will be an integrative element 
in  the  overall  architecture  of  external  action  financial  instruments  organised  around  four  main 
chapters:  a  policy-based  chapter  aiming  primarily  at  cooperation  with  partner  countries  at  the 
bilateral, regional and international level, as well as chapters on working on cross-cutting priorities 

12

13

Ref Evaluation: Intermediate evaluation of the Executive Training Programme in Japan and Korea. February 2010. Deloitte consulting. 
Ref Evaluation: http://www.eeas.europa.eu/eu-centres/docs/2010_evaluation_en.pdf 

EN 

25 

   EN 

 
                                                 
 
 
and  values:  human  rights  and  democracy,  humanitarian  assistance  and  civil  protection,  crisis 
management  and  prevention.  The  PI  falls  under  the  first  chapter,  that  is  working  with  partner 
countries.  Its  main  objective  is  to  project  EU  policies  in  support  of  the  “Europe  2020”  strategy 
agenda,  addressing  major  global  challenges,  developing  a  proactive  agenda  of  EU  and  mutual 
interests  with  industrialised  countries  and  emerging  economies,  with  a  specific  focus  on  strategic 
partners. 

One of the key priorities of “Europe 2020” strategy is to restore growth. The Agenda recognises 
that  fast-growing  emerging  economies  with  an  expanding  middle  class  will  play  a  critical  role  in 
sustaining  European  export  of  goods  and  services  in  which  the  EU  has  a  comparative  advantage. 
The  Partnership  Instrument  should  be  instrumental  in  supporting  trade  policy14,  in  particular  as 
regards the strategic economic partners. The support to market access for European companies will 
complement actions financed under the competitiveness and SME programme.  

Emerging economies play also an increasingly important role as responsible partners in addressing 
challenges  of  global  concern:  issues  such  as  poverty  alleviation,  migration,  competitiveness  and 
trade  liberalisation,  environment,  climate  change,  energy,  enhancing  digital  literacy  skills  and 
inclusion,  pandemics,  cyber  security,  terrorism  and  organised  crime  can  only  be  tackled  in  an 
international  context.  Against  the  backdrop  of  accelerating  globalisation,  it  is  essential  that  the 
internal agenda of securing sustainable growth and jobs in Europe and the EU's internal policies in 
general  are  complemented  by  an  external  dimension.  This  external  dimension  of  internal  policy 
should  enhance  the  consistency  and  coherence  of  EU  external  action  and  should  complement  it, 
while avoiding duplication of efforts. 

Therefore, the Partnership Instrument will give priority to supporting the external dimension of EU 
policies on climate change, environment, energy, trade and sustainable development, as well as 
information  and  communication  technologies.  The  EU  has  already  designed  the  most 
sophisticated set of incentives, rules and regulations to facilitate our own transition to low carbon 
economy and unilaterally adopted ambitious targets. This framework provides comprehensive and 
concrete  policy  insight  that  could  and  should  be  used  to  facilitate  similar  ambitions  by  our  key 
strategic partners. Such action would clearly be good for the environment while acting as catalyst 
for  broad  based  investment  in  research  and  innovation,  capacity  building  and  programmes,  new 
greener  technologies  and  providing  commercial  openings  for  EU  industry.  For  the  Partnership 
Instrument,  climate  mainstreaming  and  climate  objectives  will  be  particularly  relevant  to 
activities enabling policy dialogue with industrialised and emerging economies. 

Resource  efficiency  will  be  crucial  to  ensuring  that  economic  growth  remains  sustainable  within 
environmental planetary constraints. The EU is adopting a Resource Efficiency Strategy as one of 
the  Flagships  of  the  2020  Strategy.  This  will,  inter  alia,  affect  EU  norms  and  will  only  be  truly 
effective  if  resource-efficient  practices  are  adopted  by  all  major  economies.  Emerging  economies 
have the opportunity to leapfrog the polluting unsustainable consumption and production patterns so 
often  followed  by  the  EU  and  other  advanced  economies  during  our  industrialisation  and  the  EU 
has  every  interest  in  helping  them  to  do  so.  However,  emerging  economies  especially  India  and 
China  also  have  large,  absolutely  poor  populations  reliant  on  healthy  ecosystems  such  as  clean 
water  and  productive  seas  and  forests  for  their  livelihoods  while  Brazil,  South  Africa,  India  and 
China  are  mega-biodiverse.  Dialogue  and  cooperation  on  the  economics  of  protecting  and 
sustainable managing ecosystems is in the mutual interest of the EU and its partners.  

14

"Trade, Growth and World Affairs - TRADE POLICY AS A CORE COMPONENT OF THE EU’S 2020 STRATEGY" (COM/2010/612) 
of 9.11.2010 

EN 

26 

   EN 

 
                                                 
 
Dialogue  and  practical  co-operation  with  the  key  global  energy  producers  and  consumers  is 
essential  to  address  the  challenge  of  ensuring  the  EU's  energy  security,  particularly  as  the  EU 
becomes  more  import  dependent,  as  well  as  promoting  a  global  low-carbon  agenda,  sustainable 
energy  policies,  transparency  and  predictability  on  global  energy  markets  and  technology 
cooperation. 

States leaving developing  country status request  new  forms  of cooperation in technological and 
innovative  areas.  To  remain  a  strategic  partner  in  these  fields  and  continue  to  be  a  leader  in  the 
promotion  of  global  standards,  the  EU  must  be  able  to  set  up  cooperation  partnerships  in  these 
areas.  

To  sum  up, the  external  projection  of  the  EU's  internal  policies  will  be  fully  integrated  in  the 
programming  of  the  Partnership  Instrument that  will  also, within  its  limited  financial  envelope, 
complement the  external  dimension  of  internal  policies  conducted  under  other  EU  programmes 
(such  as  action  under  the  Horizon  2020  Framework  Programme  for  Research  and  Innovation,  the 
Competitiveness  and  SME  Programme  including  cooperation  on  Tourism,  the  "Erasmus  for  all" 
Programme, the Migration Fund and the Internal Security Fund) in order to avoid any duplication. 
Coherence  and  complementarity  with  other  external  action  geographical 
instruments, in 
particular the  Development  Cooperation  Instrument,  will  be  taken  into  account  throughout  the 
programming stage while integrating the principles of differentiation and concentration. 

1.6.  Duration and financial impact  

⌧ Proposal/initiative of limited duration  

–  ⌧ Proposal/initiative in effect from 01/01/2014 to 31/12/2020  

–  ⌧ Financial impact from 01/01/2014 to 31/12/2020  

–  (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) envisaged15  

⌧ Centralised direct management by the Commission  

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

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities16  

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

15 

16 

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 

27 

   EN 

 
                                                 
–  (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  

(cid:133) Decentralised management with third countries  

(cid:133) Joint management with international organisations (to be specified) 

If more than one management mode is indicated, please provide details in the "Comments" section. 

Comments  

EN 

28 

   EN 

 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The  European  Commission's  Monitoring  and  Evaluation  systems  are  increasingly  focussed  on 
results. They involve internal staff as well as external expertise. 

Task  Managers  in  Delegations  and  Headquarters  continuously  monitor  the  implementation  of 
projects  and  programmes  in  various  ways,  including  wherever  possible  through  field  visits. 
Monitoring  provides  valuable  information  on  progress;  it  helps  managers  to  identify  actual  and 
potential bottlenecks, and to take corrective action. 

External,  independent  experts  are  contracted  to  assess  the  performance  of  EU  external  actions 
through  three  different  systems.  These  assessments  contribute  to  accountability,  and  to  the 
improvement  of  ongoing  interventions;  they  also  draw  lessons  from  past  experience  to  inform 
future policies and actions. The tools all use the internationally-recognised OECD-DAC evaluation 
criteria including (potential) impact. 

Firstly, at the project level, the Headquarters-managed Results Oriented Monitoring (ROM) system 
provides  a  brief,  focused  snapshot  of  the  quality  of  a  sample  of  interventions.  Using  a  highly 
structured,  standardised  methodology,  independent  ROM  experts  attribute  grades  which  highlight 
the  strengths  and  weaknesses  of  the  project  and  give  recommendations  on  how  to  improve 
effectiveness.  

Project-level evaluations, which are managed by the EU Delegation in charge of the project, deliver 
a more detailed, in depth analysis and help project managers to improve ongoing interventions and 
prepare future ones. External, independent experts with thematic and geographic expertise are hired 
to conduct the analysis and gather feedback and evidence from all stakeholders, not least the final 
beneficiaries. 

The Commission also conducts strategic evaluations of its policies, from programming and strategy 
to  the  implementation  of  interventions  in  a  specific  sector  (such  as  health,  education  etc),  in  a 
country  or  region,  or  for  a  specific  instrument.  These  evaluations  are  an  important  input  to  the 
formulation  of  policies  and  the  design  of  instruments  and  projects.  They  are  all  published  on  the 
Commission's  website  and  a  summary  of  the  findings  is  included  in  the  Annual  Report  to  the 
Council and the European Parliament. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

The operational environment of the Partnership Instrument is characterised by the following risks to 
achieving the instrument's objectives: 

- geographically dispersed projects and programmes: the PI will have a global reach with a specific 
focus on strategic partners. It will continue the current cooperation with the industrialised countries 
and  territories  (of  the  current  ICI)  but  will  enter  into  new  projects/programmes  with  a  group  of 
countries  where  cooperation  was  focused  on  ODA.  The  worldwide  coverage  may  pose 
logistical/resource challenges to monitoring - particularly any 'on-the-spot' follow-up of activities; 

EN 

29 

   EN 

 
- launch of new programmes/projects, together with a risk of lack of institutional and administrative 
capacity  in  some  partner  countries,  may  lead  to  difficulties  and  delays  in  the  design  and 
implementation of interventions;  

-  difficulties  to  follow-up  and  quantify  the  impact  of  such  cooperation  for  the  EU  and  partner 
countries may hinder the Commission's ability to report on and be accountable for results; 

- economic/political agenda may lead to difficulties and delays in the design and implementation of 
interventions;  

- since the PI is a new instrument, a lack of human resources and administrative credits to support 
the implementation of the instrument in delegations and at headquarters may lead to difficulties to 
properly manage the instrument. 

2.2.2.  Control method(s) envisaged  

The  Commission’s  internal  control  /  management  process  is  designed  to  provide  reasonable 
assurance  regarding  the  achievement  of  objectives  in  the  effectiveness  and  efficiency  of  its 
operations, the reliability of its financial reporting and compliance with the relevant legislative and 
procedural framework. 

To ensure the effectiveness and efficiency of its operations, and to mitigate the high level of risk in 
its  external  cooperation  environment,  in  addition  to  all  the  elements  of  the  Commission  wide 
Strategic  Policy  and  Planning  process,  internal  audit  environment  and  other  requirements  of  the 
Commission's Internal Control Standards, the following elements will apply: 

– 

– 

– 

– 

– 

– 

– 

– 

– 

– 

Where  appropriate,  a  devolved  management  of  the  cooperation  by  EU  delegations  in  the 
field; 

Clear  lines  of  financial  accountability  via  sub-delegation  from  the  Sub-delegated 
Authorising Officer (Director/Head of Service) at HQ to the Head of Delegation; 

Regular reporting from EU Delegations to HQ including an annual Statement of Assurance 
by the Head of Delegation; 

Provision of a substantial programme of training for staff both at HQ and in delegation; 

Significant HQ/Delegation support and guidance (including via internet); 

Regular ex-post controls; 

A project and programme cycle management methodology including:  

Quality  support  tools  for  the  design  of  the  intervention,  its  delivery  method,  financing 
mechanism,  management  system,  assessment  and  selection  of  any  implementing  partners 
etc. 

Programme  and  project  management,  monitoring  and  reporting  tools  for  effective 
implementation including regular external on-the-spot monitoring of projects. 

Significant evaluation and audit components. 

EN 

30 

   EN 

 
2.3.  Measures to prevent fraud and irregularities  

Given  the  high  risk  environment  in  external  actions,  systems  need  to  anticipate  a  significant 
occurrence of potential compliance errors (irregularities) in transactions and build in a high level of 
prevention,  detection  and  correction  controls  as  early  as  possible  in  the  payment  process.  This 
means in practice that compliance controls will place most reliance on significant ex-ante checks on 
a multi-annual basis by both external auditors and Commission staff in the field before final project 
payments  (while still executing some ex-post audits  and  checks), going well beyond the financial 
safeguards  required  by  the  Financial  Regulation.  Compliance  framework  is  made  up  of  the 
following significant components: 

• 

• 

• 

• 

• 

• 

• 

• 

Preventative measures 

Compulsory core training covering fraud issues for cooperation management staff; 

Ex-ante compliance assessments to ensure that appropriate anti-fraud measures to prevent 
and detect fraud in the management of EU funds are in place in all implementing partners; 

The  Commission  signed  the  International  Aid  Transparency  Initiative  (IATI)  in  Accra  in 
2008, agreeing on a standard for aid transparency which ensures more timely, detailed and 
regular data on aid flows and documents.  

Detective and corrective measures 

Ex-ante transactional checks performed by Commission staff on all contract and payment 
transactions; 

External audits and verifications (both mandatory and risk based) including the European 
Court of Auditors; 

Retrospective checks (on a risk basis) and recoveries. 

In  addition  where  irregularity  is  suspected  to  be  intentional  (fraud),  the  following  measures  may 
apply: 

• 

• 

• 

• 

• 

Suspension of time-limit for payments and notification to the entity; 

Specific audits (ad hoc/forensic audit); 

Early Warning System & reinforced monitoring of contracts; 

Suspension/termination of contract; 

Exclusion procedure. 

The Commission services will be working in full partnership with OLAF for the implementation of 
the  Action  Plan  of  the  Commission's  new  anti-fraud  strategy  adopted  by  the  College  in  2011  to 
ensure inter alia that: 

– 

– 

EN 

internal anti-fraud related controls are fully aligned with the CAFS;  

fraud  risk  management  approach  is  geared  to  identify  fraud  risk  areas  and  adequate 
responses; 

31 

   EN 

 
– 

– 

the  systems  used  for  spending  EU  funds  in  third  countries  enable  relevant  data  to  be 
retrieved with a view to feeding this data into fraud risk management (e.g. double funding); 

where  necessary,  networking  groups  and  adequate  IT  tools  dedicated  to  analysing  fraud 
cases related to the external aid sector could be set up. 

2.4 

Estimate of the costs and benefits of the controls 

The  Partnership  Instrument’s  internal  control/management  costs  should  be  similar  to  the  costs 
calculated  by  EuropeAid  for  the  management  of  its  external  actions  instruments  (i.e.  6%  of  the 
envelope):  

For  the  EuropeAid  portfolio  as  a  whole,  internal  control  /  management  costs  total  an  estimated 
in  commitments  in  the  2014-2020  budget  planning.  This  figure 
annual  average  of  €  658  million 
includes the management of the EDF which operates in an integrated way within the management 
structure  of  EuropeAid.  These  'non  operational'  costs  represent  approximately  6,4  %  of  the 
estimated  annual  average  of  €  10.2  billion  planned  for  the  overall  (operational  +  administrative) 
commitments by EuropeAid on its expenditure portfolio financed by the General Budget of the EU 
and the European Development Fund for the period 2014-2020.  

These  management  costs  take  into  account  all  EuropeAid  staff  at  HQ  and  in  Delegations, 
infrastructure, travel, training, monitoring, evaluation and audit contracts (including those launched 
by beneficiaries). 

EuropeAid  plans  to  reduce  the  management  /  operational  activities  ratio  over  time  under  the 
improved and simplified arrangements of the new instruments, building on changes likely to come 
in under the revised Financial Regulation. The key benefits of these management costs are realised 
in terms of meeting policy objectives, efficient and effective use of resources, and the exercise of 
robust cost-effective preventative measures and other checks to ensure the legal and regular use of 
funds. 

While improvements in the nature and targeting of management activities and compliance checks in 
relation to the portfolio will continue to be pursued, these costs are globally necessary to effectively 
and efficiently achieve the objectives of the instruments at a minimal risk of non compliance (below 
2%  residual  error).  They  are  significantly  less  than  risks  involved  in  removing  or  scaling  back 
internal controls in this high risk area.  

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. 

Heading of 
multiannual 

Budget line 

Type of  
expenditure

Contribution  

EN 

32 

   EN 

 
financial 
framework  Number  

[Description………………………...……….] 

Diff./non-
diff 
(17) 

from 
EFTA18 
countries 

from 
candidate 
countries19 

from third 
countries 

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

Heading 
4 - 
Global 
Europe 

19 01 04 08 - Industrialised Countries 
Instrument (ICI) – Expenditure on 
administrative management 

19 05 01 - Cooperation with industrialised 
non-member countries 

19 05 02 - KEDO 

19 05 03 - Pilot Project on transatlantic 
methods for handling global challenges 

19 09 03 - Cooperation activities other 
than Official Development Assistance 
(Latin America) 

19 09 02 - Preparatory Action - 
Cooperation with middle-income 
countries in Latin America 

19 10 04 - Cooperation activities other 
than Official Development Assistance 
(Asia, Central Asia, Iraq, Iran, 
Yemen) 

19 10 01 03 - Preparatory action on 
business and scientific exchanges with 
India 

19 10 01 04 - Preparatory action on 
business and scientific exchanges with 
China 

19 10 01 05 - Preparatory action - 
Cooperation with middle-income 
countries in Asia 

•  New budget lines requested  

Diff. 

NO 

NO 

NO 

NO 

Heading of 
multiannual 
financial 
framework 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

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

17 
18 
19 

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

EN 

33 

   EN 

 
 
 
                                                 
19 01 04 08 – Partnership Instrument 
(PI) – Expenditure on administrative 
management. 

19 05 01 - Cooperation with third 
countries under the Partnership 
Instrument. 

Heading 
4 - 
Global 
Europe 

19 05 02 - Cooperation with 
industrialised non-member countries – 
completion of previous programme 
2007-2013 (Former BL 19 05 01).  

Nb: Other existing budget lines under 
chapter 19 09 and 19 10 will remain 
under closure of the actions (with 
“pm” for commitments). 

Diff. 

NO 

NO 

NO 

NO 

EN 

34 

   EN 

 
 
 
3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial framework:   Number  Heading 4 - Global Europe 

DG: FPI 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

EUR million (to 3 decimal places) 

(cid:121) Operational appropriations (Current prices @ 2% from 2011 
prices) 

19 05 01 - Cooperation with third 
countries under the Partnership 
Instrument. 

Commitments 

(1) 

Payments (a) 

(2) 

128,853  135,586  143,670   153,001  163,782  176,106  188,812 

1.089,710 

27,753 

68,486  110,870   143,201  152,182  162,506  174,112  839,110  

administrative  nature 

an 

Appropriations  of 
 from the envelop of specific programs20  
19  01  04  08  –  Partnership 
Instrument (PI) – Expenditure on 
administrative management (b) 

TOTAL appropriations 
for DG FPI 

Commitments 

Payments 

financed 

(3) 

=1+1a 
+3 

=2+2a 

4,847 

5,114 

5,430  

5,799 

6,218 

6,694 

7,188 

41,290 

133,700  140,700  149,100   158,800  170,000  182,800  196,000 

1.131,000  

+3 

32,600 

73,600 

116,300   149,000  158,400  169,200  181,300 

880,400  

(a) Payments for operational expenditure have been calculated using a standard project cycle of 4 years of 20%-30%-30%-20%. 

20 

EN 

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. 

35 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(b) An amount of 4% of the envelope has been set aside for administrative support expenditure 

Heading of multiannual financial framework:  

5 

" Administrative expenditure " 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

DG: FPI 

(cid:121) Human resources  

3,227 

3,195 

3,163 

3,131 

3,131 

3,131 

3,131 

(cid:121) Other administrative expenditure  

0,150 

0,153 

0,156 

0,159 

0,163 

0,166 

0,169 

TOTAL DG FPI 

Appropriations  

3,377

3,348

3,319 

3,291

3,294

3,297

3,301

22,111 

1,116 

23,227

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total commitments  
= Total payments) 

3,377

3,348

3,319 

3,291

3,294

3,297

3,301

23,227

EUR million 

2014 

2015 

2016 

2017 

2018-2020 

TOTAL 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

137,077  144,048  152,419  162,091  173,294  186,097  199,301 

1.154,227

Payments 

35,977 

76,948  119,619  152,291  161,694  172,497  184,601 

903,627

EN 

36 

EN 

 
  
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

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

–  (cid:58)  The proposal/initiative requires the use of operational appropriations, as explained below: 

Commitment 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 

OUTPUTS 

Avera
ge 
cost  
of the 
ouput 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

r
e
b
m
u
N

s
t
u
p
u
o

f
o

Cost 

Total 
numbe
r of 
ouputs 

Total  
cost 

Indicate objectives 
and outputs  

(cid:216) 

T
y
p
e

o
f

o
u
t
p
u
t
21 

SPECIFIC OBJECTIVE No 1 

Projecting the external dimension of 
“Europe 2020” strategy, policy 

21 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

EN 

37 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
dialogues, challenges of global 
concern 

- Output 

- Output 

Sub-total for specific objective N°1 

SPECIFIC OBJECTIVE No 2 

Economic partnerships, business and 
regulatory cooperation 

- Output  

70,861 

74,571 

79,023 

84,164 

90,10
0 

96,884 

103,88
0 

599,483 

Sub-total for specific objective N°2 

26,740 

28,140 

29,820 

31,76
0 

34,00
0 

36,560 

39,200 

226,220 

SPECIFIC OBJECTIVE No3 

Public diplomacy, 
academic/education cooperation and 
outreach 

- Output  

EN 

38 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sub-total for specific objective N°3 

24,567 

25,840 

27,372 

29,13
7 

31,18
2 

33,522 

35,932 

207,452 

Unallocated reserve  

TOTAL COST 

6,685 

128,8
53

7,035 

135,5
86

7,455 

143,6
70

7,940 

8,500 

9,140 

153,0
01

163,
782

176,1
06

9,800 

188,8
12

56,555 

1.089,7
10 

N.B.: the breakdown per specific objectives is as follows out of the financial envelope of 1.131,000 EUR Million: 

Objective N° 1: 53% 

Objective N° 2: 20% 

Objective N° 3: 18%  

Unallocated reserve: 5% to be programmed between the 3 objectives according to the needs.  

Allocations among outputs are not appropriate due to the nature of the instrument (no standard number of outputs and no average cost). 

EN 

39 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–  (cid:133)  The  proposal/initiative  does  not 

require 

the  use  of  administrative 

appropriations  

–  (cid:58)  The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 522 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

3,227 

3,195 

3,163 

3,131 

3,131 

3,131 

3,131 

22,111 

0,150 

0,153 

0,156 

0,159 

0,163 

0,166 

0,169 

1,116 

3,377

3,348 

3,319

3,291

3,294

3,297 

3,301

23,227

2014 

2015 

2016 

2017 

2018 

2019 

2020 

TOTAL 

3,565 

3,658 

3,778 

3,925 

4,139 

4,384 

4,631 

28,080 

1,282 

1,456 

1,652 

1,875 

2,079 

2,310 

2,557 

13,210 

4,847

5,114 

5,430

5,799

6,218

6,694 

7,188

41,290

TOTAL 

8,224 

8,462 

8,750 

9,090 

9,512 

9,991 

10,489 

64,517

22 

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 

40 

   EN 

 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources  

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

–  (cid:58)  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) 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

(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) 

17,4 

17,3 

17,1 

16,9 

16,9 

16,9 

16,9 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)23 

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

12,6XX 01 02 02 (CA, INT, JED, LA and 
SNE in the delegations) 

13,0 

12,9 

12,8 

12,6 

12,6 

12,6 

12,6 

2,0 

1,9 

1,9 

1,9 

1,9 

1,9 

1,9 

19 01 04 08 24 

- at Headquarters 

- in delegations  

39,4 

40,4 

41,8 

43,4 

45,7 

48,4 

51,2 

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

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

Other budget lines (specify) 

TOTAL 

71,8 

72,5 

73,5 

74,9 

77,2 

79,9 

82,7 

Human resources under Heading 5 correspond to the necessary staff to manage the new Partnership 
Instrument. 
It encompasses the existing FPI staff managing the current ICI, i.e. 3,6 AD; 7 AST; 4,3 ACs, 2 ALs in 
Washington = 17 FTE, and a request for additional staff estimated at 4 AD, 3 AST, 9 AC = 16 FTE.  
19 is the policy area or budget title concerned. 

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: 

Officials and temporary agents 

Management of the programme and project cycle  

23 

24 

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). 

EN 

41 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
External personnel 

Management of the programme and project cycle 

EN 

42 

   EN 

 
3.2.4.  Compatibility with the current multiannual financial framework  

–  ⌧Proposal/initiative is compatible the multiannual financial framework 2014-2020. 

–  (cid:133)  Proposal/initiative  will  entail  reprogramming  of  the  relevant  heading  in  the 

multiannual financial framework. 

Explain  what  reprogramming  is  required,  specifying  the  budget  lines  concerned  and  the  corresponding 
amounts. 

–  (cid:133)  Proposal/initiative requires application of the flexibility instrument or revision of the 

multiannual financial framework25. 

Explain what is required, specifying the headings and budget lines concerned and the corresponding amounts. 

3.2.5.  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  

25 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

43 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3. 

Estimated impact on revenue  

–  (cid:58)  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/initiative26 

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. 

26 

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 

44 

   EN