Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a financing instrument for development cooperation
Date: 2011-12-07
Institutions: European Commission
Subjects: EU financial instrument, aid system, cooperation policy, developing countries, development aid, distribution of EU funding, eligibility criteria, food safety, human rights, poverty

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 840 final 

2011/0406 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a financing instrument for development cooperation 

{SEC(2011) 1469 final} 
{SEC(2011) 1470 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

The  number  of  people  living  in  poverty  continues  to  be  a  major  problem  in  developing 
countries.  While  significant  progress  has  been  achieved,  most  developing  countries  remain 
off-track for the achievement of the Millennium Development Goals (MDGs) and are not able 
to  successfully  embark  on  the  path  of  sustainable  development  in  all  its  senses,  economic, 
social and environmental, the latter including climate change mitigation and adaptation.  

To  aggravate  the  situation,  global  challenges  continue  to  be  prominent  and  developing 
countries  were  hit  hard  by  the  succession  of  recent  crises  resulting  inter  alia  in  social  and 
economic  instability,  increased  migration,  food  insecurity  and  an  increased  vulnerability  to 
external  shocks,  among  other  effects.  It  is  increasingly  recognised  that  environmental  and 
natural  resources,  vital  for  sustainable  socio-economic  growth,  are  increasingly  at  risk  from 
climate change and rapid population growth. This may exacerbate an already fragile situation 
in many developing countries and risk undoing certain development achievements.  

The EU remains committed to helping developing countries to reduce and ultimately eradicate 
poverty.  To  achieve  this  objective,  the  Development  Cooperation  Instrument  (DCI) 
Regulation  was  established  for  the  2007-2013  period  with  the  primary  and  overarching 
objective  of  eradicating  poverty  in  partner  countries  and  regions.  It  consists  of  three 
categories  of  programmes:  (i)  bilateral  and  regional  geographic  programmes  covering 
cooperation  with  Asia,  Latin  America,  Central  Asia,  the  Middle  East  and  South  Africa;  (ii) 
thematic  programmes  covering  the  following  issues:  investing  in  people,  environment  and 
sustainable  management  of  natural  resources  including  energy,  non-State  actors  and  local 
authorities,  food  security,  and  migration  and  asylum;  and  (iii)  accompanying  measures  for 
sugar-producing countries. 

The current DCI regulation expires on 31 December 2013. The various reviews undertaken of 
the DCI have acknowledged its overall added value and its contribution to the achievement of 
the MDGs, but have also highlighted certain shortcomings. New challenges, together with the 
priorities  set  out  in  the  Europe  2020  Strategy  and  the  latest  EU  development  policy,  have 
prompted the Commission to make a proposal to review and adapt the DCI Regulation in line 
with  the  communication  “A  Budget  For  Europe  2020”  of  29  June  2011  and  with  the 
communication "Increasing the Impact of EU Development Policy: An Agenda for Change" 
of 13 October 2011. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

Public Consultation 

The Commission held a public consultation on future funding for EU external action between 
26 November 2010 and 31 January 2011. This process was based on an online questionnaire 
accompanied  by  a  background  paper  'What  funding  for  EU  external  action  after  2013?'.  In 
general, the replies did not suggest the need for a substantial change in the current structure of 
the  existing  instruments.  Nevertheless,  several  issues  were  identified  and  were  accordingly 
taken into account in the drafting of the new DCI Regulation: 

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A  majority  of  the  respondents  (around  70%)  stated  that  EU  financial  intervention 
provided  a  substantial  added  value.  Respondents  stated  that  the  EU  should  make 
good  use  of  its  comparative  advantage  linked  to  its  global  field  presence,  its  wide-
ranging expertise, its supranational nature and its role as a facilitator of coordination.  

Nearly  all  respondents  (92%)  supported  a  more  differentiated  approach,  tailored  to 
the  situation  of  the  beneficiary  country,  in  order  to  increase  the  impact  of  EU 
financial  instruments.  In  line  with  this,  differentiation  between  the  beneficiary 
countries is strengthened. 

There was wide support among respondents for exploring conditionality based on the 
beneficiary  country's  respect  for  human  rights,  minorities,  good  governance  and 
diversity of  cultural expressions  (78%), and on the quality of its policies and of its 
ability and willingness to implement sound policies (63%). The proposed Regulation 
recognises the importance of national development plans as well as jointly developed 
EU strategies as the basis for cooperation. It also emphasises the basic EU values and 
principles and thus strengthens the conditionality and mutual accountability. 

A significant majority of respondents support increased flexibility in implementation, 
in particular for tackling transregional challenges, which is seen as being hampered 
by the ‘geographical limitation’ of individual instruments (EDF being limited to ACP 
countries,  the  DCI  to  Latin  America,  Asia,  Central  Asia,  Middle  East  and  South 
Africa,  and  the  ENPI  to  neighbourhood  countries).  The  proposed  Regulation 
provides  for  implementing  activities  of  trans-regional  importance  and  groups  the 
different thematic axes to increase flexibility and simplify the implementation. 

A  majority  of  respondents  agreed  that  joint  programming  and  co-financing  with 
Member  States  (and  possibly  with  the  beneficiary  countries)  could  increase  the 
impact and coherence of EU external action, simplify the delivery of aid and reduce 
overall transaction costs. This is duly addressed in the proposed Regulation.  

Collection and use of Expertise 

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

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

Nevertheless, the review identified several shortcomings.  

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Different  internal  EU  policies  are  increasingly  becoming  part  of  the  EU's  external 
action.  In  line  with  the  "Europe  2020  Strategy"  and  the  Lisbon  Treaty,  mutual 
reinforcement of internal and external actions was needed. The existing architecture 
was  inadequate  to  allow  the  Commission  to  intervene  effectively  on  a  sufficient 
scale. Grouping different thematic axes under one heading will significantly improve 
the situation. 

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In  some  cases  the  thematic  programmes  were  too  fragmented  to  respond  to  global 
crises (e.g. the food price crisis, avian flu) or to international commitments made at 
the  highest  political  level  (e.g.  biodiversity  and  climate  change).  The  use  of  the 
thematic  envelope  therefore  needed  more  flexibility  through  grouping  the  different 
thematic  programmes  and  allow  for  a  more  coherent  and  comprehensive  long-term 
engagement  with  global  public  goods  and  challenges,  and  to  react  to  the  various 
shocks affecting the poorest.  

The current DCI Regulation covers a wide range of developing  countries, from the 
Least Developed Countries to Upper Middle Income Countries. The recent increase 
of economic and social disparities amongst partner countries and the development of 
new  objectives  call  for  improved  differentiation.  The  proposed  new  Regulation 
provides further guidance on differentiation by allowing the EU to concentrate grant 
aid where it is needed most and where it will have greatest impact. To complete the 
policy  mix,  the  Commission  proposes  creating  a  new  instrument  (Partnership 
Instrument) to address the objectives that go beyond pure development assistance.  

Supporting  cross-regional 
the  current 
architecture  of  external  assistance  instruments.  This  was  particularly  the  case  in 
implementing  the  Joint  Africa-EU  Strategy.  The  new  DCI  regulation  provides  a 
better legal basis for the implementation of the Joint-Africa EU Strategy. 

initiatives  has  proved  difficult  given 

In the present DCI Regulation, the provisions on fragile states and countries in post-
crisis  situations  are  insufficient:  they  underestimate  the  need  to  support  political 
processes  that  strengthen  the  rule  of  law  and  governance.  Addressing  transition 
challenges requires a set of responses at country level, based on specific needs and 
related to a common strategy (a holistic approach). The new Regulation takes better 
account of these challenges and tackles the rigidity of the decision-making process in 
fund allocation, programming and implementation. 

The current DCI Regulation contains indicative allocations for each region, without 
any unallocated funds. This reduces the scope for mobilising resources to respond to 
unforeseen needs (new political priorities, natural or man-made disasters, etc.). The 
new Regulation proposes leaving some funds unallocated to be used as a response to 
unforeseen events.  

Finally,  the  current  programming  and  implementation  process  for  the  DCI  was 
assessed as too complex. It does not allow the EU programming cycle to be aligned 
to those of its partners, it does not facilitate joint programming with Member States 
and it does not allow swift adjustments if required. All these shortcomings have been 
directly addressed in the new DCI Regulation.  

Impact Assessment 

The  Commission  carried  out  an  Impact  Assessment  (IA)  that  considered  3  basic  policy 
alternatives:  maintaining  the  DCI  Regulation  without  any  amendment  (option  1)  and  two 
alternatives for amending the DCI on each problem identified in the current DCI (Options 2A 
and 2B).  

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Option 1 was not accepted because it would not solve the problems identified. Sub-options A 
and B under Option 2 solve the identified problems to different extents, each having particular 
political and other implications. The IA concluded that sub-options B is better as it:  

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brings the DCI objectives into line with the latest trends in EU development policy; 

differentiates clearly amongst partner countries; 

enshrines  good  governance,  democracy,  human  rights  and  the  rule  of  law  in  EU 
assistance; 

facilitates the implementation of the Joint Africa-EU Strategy; 

streamlines the thematic programmes to provide the necessary flexibility; 

ensures  flexible  mechanisms  to  facilitate  a  more  effective  EU  response  to  rapidly 
evolving situations in crisis, post-crisis and fragile states; 

enhances the flexibility of fund allocations; and 

improves the effectiveness of EU aid by simplifying and making programming and 
implementation  procedures  more  flexible,  facilitating  joint  programming  and 
aligning EU assistance with partner countries' programming cycles. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Part  Five,  Title  III,  Chapter  1  of  the  Treaty  of  the  Functioning  of  the  European  Union, 
provides  the  legal  framework  for  cooperation  with  partner  countries  and  regions.  The 
proposed  DCI  Regulation  is  based  in  particular  on  Article  209(1)  of  the  Treaty,  and  is 
presented by the Commission in accordance with the procedure laid down in Article 294. The 
Joint  Statement  by  the  Council  and  the  Representatives  of  the  Governments  of  the  Member 
States meeting within the Council, the European Parliament and the Commission on European 
Union  Development  Policy:  ‘The  European  Consensus’,  of  20  December  2005,  the 
communication  of  13  October  2011  "Increasing  the  impact  of  EU  development Policy  - An 
Agenda for Change" as well as any future communication establishing basic orientations and 
principles  for  the  Union's  development  policy,  and  any  subsequent  conclusions  or 
modifications  thereto,  will  provide  the  general  framework,  orientations  and  focus  for  the 
implementation of this Regulation. 

The EU is in a uniquely impartial position to deliver part of the EU's external assistance on 
behalf  of  and  with  Member  States,  giving  it  enhanced  credibility  in  the  countries  where  it 
operates.  Many  Member  States  do  not  have  the  capacity  and/or  the  willingness  to  develop 
global external instruments. Intervention at EU level is therefore the best way of promoting 
EU  overall  interests  and  values  globally  and  ensuring  a  worldwide  EU  presence.  With  27 
Member  States  acting  with  common  policies  and  strategies,  the  EU  has  the  critical  mass  to 
respond  to  global  challenges,  in  particular  in  relation  to  achieving  the  MDGs.  Since  the 
objectives of the proposed Regulation cannot be sufficiently achieved by the Member States 
alone and can therefore, by reason of the scale and coverage of the action, be better achieved 
at EU level, the EU may adopt measures, in accordance with the principle of subsidiarity as 
set out in Article 5 of the Treaty. 

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The proposed new Regulation also strengthens the coordination capacity and facilitates joint 
programming with the Member States, ensuring efficient division of labour and effective aid 
delivery. The EU's development policy and that of the Member States must complement and 
reinforce  each  other.  To  that  end,  EU  assistance  should  focus  where  it  can  have  greatest 
impact, having regard to its capacity to act at a global scale and respond to global challenges. 
In accordance with the principle of proportionality, as set out in Article 5 of the Treaty, the 
proposed new Regulation does not go beyond what is necessary to achieve its objectives. 

The proposed new Regulation will operate taking into consideration the external dimension of 
EU sectoral policy priorities, ensuring coordination and enhancing synergies, in line with the 
objectives laid down in the Regulation, and in compliance with the aforementioned legal and 
policy framework. 

4. 

BUDGETARY IMPLICATION  

The  Commission  proposes  to  allocate  €96  bill ion  for  the  2014-2020  period  for  the  external 
instruments1.  The  allocation  proposed  for  DCI  is  €23  294.7  million.  The  indicative  yearly 
budget  commitments  for  the  DCI  are  given  in  the  table  below.  The  indicative  financial 
allocations  per  individual  DCI  programme  are  given  in  Annex  VII  of  the  Regulation.  It  is 
planned that no less than 50% of the programme for Global Public Goods and Challenges will 
be spent on climate change and environmental objectives2 and at least 20% on social inclusion 
and human development. Globally, in line with the Communication "Increasing the impact of 
EU Development Policy: an Agenda for Change", a continued support for social inclusion and 
human development is foreseen through at least 20% of the Union's development aid. Finally, 
this  Regulation  intends  to  contribute  to  addressing  at  least  20%  of  the  Union's  budget  to 
creating  low  carbon  and  climate  resilient  societies,  as  provided  for  in  the  Commission 
communication "A Budget for Europe 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  DCI,  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"3 will apply to the use of those funds. 

Development Cooperation 
Instrument* 

*Current prices in million €  

2014 

2015 

2016 

2017 

2018 

2019 

2020 

2014-2020

2 716,7  2 903.1  3 100.3  3 308.7  3 525.3  3 751.7 

3 989 

23 294.7 

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EDF,  Global  Climate  and  Biodiversity  Fund  and  Emergency  Aid  Reserve  are  additional  to  this  and 
remain outside the EU budget.. 
Sustainable  energy-related  activities  will  be  one  of  the  key  areas  for  climate  change  expenditure. 
Likewise,  in  view  of  a  key  role  of  healthy  ecosystem  services  for  food  production,  biodiversity, 
especially when also contributing to climate resilience, will be one of the key areas under food security 
and sustainable agriculture. 
OJ L … 

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5. 

MAIN ELEMENTS 

Simplification 

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

External  instruments  will  be  simplified  by  delineating  them  more  clearly  and  reducing 
overlaps  between  them,  so  they  are  individually  identified  with  clearly  defined  policy 
objectives.  

Simplification and reduction of transactional costs for partner countries and regions will also 
be  achieved  through  flexible  programming  procedures  allowing  for  the  application  of  the 
principles  of  Aid  Effectiveness.  For  instance,  the  Union  may  align  to  the  national 
development  plans  of  partner  countries,  thus  eliminating  the  need  for  partner  countries  to 
negotiate EU-specific strategy papers to be adopted by the Commission and enabling a more 
focused  analysis  which  could  be  included  in  the  multi-annual  programming  document. 
Likewise,  donor  coordination  and  division  of  labour  may  be  reinforced  through  joint 
programming with Member States. 

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. 

Differentiation 

The  differentiated  approach  set  out  in  the  communication  "Increasing  the  Impact  of  EU 
Development  Policy:  An  Agenda  for  Change"  intends  to  enhance  the  impact  of  EU 
development  cooperation  by  targeting  its  resources  where  they  are  needed  most  to  address 
poverty reduction and where they could have the greatest impact. This should be implemented 
first in terms of eligibility to bilateral development cooperation programmes; and secondly in 
terms of aid allocation.  

In  principle,  high  income,  upper  middle  income  and  other  large  middle  income  countries, 
which  are  on  a  sustainable  development  path  and/or  have  access  to  large  domestic  and 
external resources to finance their own development strategies, would graduate out of bilateral 
aid programmes. The world is developing: the OECD/DAC list of ODA recipients (revised in 
2011) shows that more than 20 countries have graduated from low-income to middle-income 
or  from  lower-middle  income  to  upper-middle  income  categories,  based  on  GNI  per  capita. 
Obviously  this  is  only  one  indicator  among  others  and  application  of  the  differentiation 
principle  must  also  take  account  of  human  development,  aid  dependency  and  other  aspects, 
including the dynamics of the development process.  

In particular, many middle income countries are playing a new and growing role at regional 
and/or  global  levels.  The  EU  should  therefore  adapt  the  nature  of  our  relations  with  them, 
including our cooperation priorities and instruments. This should not lead to a weakening of 
our relationships, but rather to a more modern set of instruments. The EU should engage in 
new partnerships with countries that graduate from bilateral aid programmes, notably on the 

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basis of regional and thematic programmes under the new DCI, thematic financial instruments 
for EU external action and the new Partnership Instrument. 

Delegated Acts 

It is proposed that flexibility be reinforced by using delegated acts in accordance with Article 
290  of  the  Treaty  to  make  it  possible  to  amend  certain  non-essential  elements  of  the 
Regulation that affects the subsequent programming (e.g. annexes on eligible countries, areas 
for cooperation and indicative financial allocation per programme for 2014-2020).  

Detailed explanation 

This  section  provides  a  detailed  commentary,  explaining  the  main  ideas  of  the  new  DCI 
Regulation under each of the proposed articles. 

(0) 

Subject matter and Scope (Article1 Title I) 

The only proposed change in Article 1 is to include the Pan-African Programme in the scope 
of the Regulation.  

The  Regulation  thus  covers  all  the  developing  countries,  territories  and  regions  except:  the 
countries eligible for the Pre-Accession Instrument. 

(1) 

Objectives and General Principles (Title II) – Articles 2 and 3  

Article  2  (Objectives  and  eligibility  criteria)  sets  out  the  primary  and  overarching 
objectives  of  the  Regulation  and  the  characteristics  of  the  Union’s  geographic  and  thematic 
development  cooperation.  The  objectives  are  in  line  with  Article  208  of  the  Treaty,  the 
aforementioned Commission’s communications "A Budget For Europe 2020 and “Increasing 
the Impact of EU Development Policy: An Agenda for Change”. 

The  Article  provides  for  support  for  all  forms  of  cooperation  with  developing  countries.  It 
requires fulfilling the criteria for Official Development Assistance (ODA) established by the 
OECD/DAC,  subject  to  possible  exceptions  for  the  thematic  and  Pan-African  programmes. 
For  these  programmes  a  10%  flexibility  for  non-ODA  activities  is  foreseen  to  cover  for 
expenditure  which;  although  not  strictly  speaking  ODA-compliant,  may  be  required  for  the 
adequate implementation of actions under these programmes. 

Article 3 (General Principles) sets out the main principles governing the implementation of 
the Regulation, which are democracy, respect for human rights and fundamental freedoms and 
the rule of law; differentiated approach towards the partner countries, taking into account their 
needs, capacities, commitments and performance, and potential EU impact; key cross-cutting 
issues  (such  as  gender  equality  and  women  empowerment);  strengthened  coherence  of  EU 
external  action;  improved  coordination  with  the  Member  States  and  other  bilateral  or 
multilateral  donors;  and  a  partner  country-led  and  region-led  development  process  with 
mutual accountability, through an inclusive and participatory approach to development, using 
effective  and  innovative  cooperation  modalities  in  line  with  OECD/DAC  best  practices  and 
thus improving the impact of aid and reducing overlap and duplication. 

(2) 

Geographic and Thematic Programmes (Title III) – Articles 4 to 9 

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Article  4  (Implementation  of  Union’s  Assistance)  describes  that  the  type  of  programmes 
under which EU assistance will be delivered. 

Article  5  (Geographic  Programmes)  covers  the  possible  areas  for  cooperation  and 
distinguishes between regional and bilateral cooperation. The principle of differentiation laid 
down in Article 3 will be applied. As a consequence, bilateral development assistance would 
be provided to those partner countries which need it the most, and lack the required financial 
capacities for their own development. Also, the differentiation principle takes into account the 
potential  impact  of  the  Union  assistance  in  partner  countries.  Partner  countries  that  shall 
benefit  from  bilateral  development  assistance  are  listed  in  Annex  III.  This  Annex  does  not 
include  countries  "graduated"  according  to  the  following  criteria:  partner  countries 
representing  more  than  1%  of  the  world's  GDP  and/or  upper  middle  income  countries 
according to the list of recipients of Official Development Aid (ODA) of the OECD/DAC are 
in principle excluded; however, additional criteria relating to their need and capacity is used, 
such as Human Development Index, the Economic Vulnerability Index and aid dependency, 
as well as economic growth and foreign direct investment. Also the reliability of the available 
data is taken into consideration. 

All  partner  countries  included  in  Annex  I,  however,  would  still  benefit  from  regional  and 
thematic programmes.  

The Regulation does not restrict the areas of EU cooperation or intervention. Any listing of 
such areas is purely illustrative. Areas may be chosen because they are pertinent to achieving 
the aims laid down in the Treaty, to the EU's international obligations and commitments or to 
the  specific  objectives  provided  for  in  the  agreements  with  partner  countries  and  regions. 
They should  nevertheless  be  proposed with reference to the EU's objective of concentrating 
assistance, with a view to ensuring that the EU's policy and the policies of the Member States 
complement  each  other  as  required  under  Article  208  of  the  Treaty4  and  in  the  light  of  the 
Commission’s communications (in particular the Commission communication An Agenda for 
Change) and the appropriate Council and Parliament resolutions.  

Article  6  (Thematic  Programmes)  covers  the  thematic  programmes,  whose  general 
objectives and reach will be coherent with the overall purpose and scope of this Regulation, 
and the conditions under which the thematic programmes will be implemented. 

Article  7  (Global  Public  Goods  and  Challenges)  describes  the  Global  Public  Goods  and 
Challenges thematic programme, which will target the main global goods and challenges in a 
flexible  and  cross  cutting  manner.  The  main  fields  of  activities  that  will  be  pursued  by  this 
programme are further outlined in Annex V, and include, inter alia, environment and climate 
change,  sustainable  energy5,  human  development  (including  health,  education,  gender 
equality,  employment,  skills,  social  protection  and  social  inclusion  as  well  as  economic 
development-related aspects such as growth, jobs, trade and private sector engagement), food 
security  and  migration  and  asylum.  This  thematic  programme  will  enable  swift  response  in 
view  of  unforeseen  events  and  global  crises  (e.g.  the  food  price  crisis,  avian  flu).  It  will 
reduce the fragmentation of the EU development cooperation and will allow for appropriate 
reinforcement and consistency of internal and external actions. 

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“The Union’s development cooperation policy and that of the Member States complement and reinforce 
each other” (Article 208). 
On security of energy supply and international co-operation, see Communication of 7.09.2011 "The EU 
Energy Policy: Engaging with Partners beyond our borders" - COM(2011) 539. 

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Article 8 (Civil Society Organisations and Local Authorities) describes the Civil Society 
Organisations  (CSOs)  and  Local  Authorities  (LAs)  thematic  programme,  which  bases  itself 
on  the  former  Non-State  Actors  and  Local  Authorities  programme.  The  focus  of  this 
programme has been sharpened with more attention given to capacity development of CSOs 
and  LAs.  The  programme  will  promote  an  inclusive  and  empowered  civil  society  and  local 
authorities,  increase  awareness  and  mobilisation  on  development  issues,  and  strengthen  the 
capacity for policy dialogue on development.  

to 

implement 

Article 9 (Pan-African Programme) describes the Pan-African Programme that is being set 
up 
the  Joint  Africa-EU  Strategy  (JAES).  The  programme  will  be 
complementary and coherent with other financial instruments, notably the ENI, the EDF and 
the  thematic  programmes  under  DCI.  While  ENI  and  EDF  focus  on  interventions  at  the 
regional  or  national  level  in  Africa,  the  Pan-African  programme  shall  be  used  to  provide 
specific  support  for  the  objectives  of  the  JAES,  supporting  in  particular  activities  of  trans-
regional, continental and trans-continental nature, as well as relevant JAES initiatives in the 
global  arena.  The  Pan-African  Programme  will  work  in  close  cooperation/concertation  with 
other  instruments,  and  will  concentrate  on  specific  initiatives  agreed  in  the  framework  of 
JAES and its Action Plans for which no alternative source of funding can be mobilised, thus 
ensuring the necessary coherence and synergy and preventing duplications and overlappings. 

(3) 

Programming and Allocation of Funds (Title IV) – Articles 10 to 14 

Article 10 (General Framework for Programming and Allocating Funds) lays down the 
general framework for geographical and thematic programming, as well as for the allocation 
of the funds under this Regulation. In doing so, the allocation criteria identified in article 3(2) 
will be used. To ensure synergies and complementarity of the Union’s measures and those of 
the  Member  States,  the  Member  States  will  be  fully  involved  in  the  programming  process. 
Consultation  process  will  also  include  other donors  and  development  actors  as  well  as  civil 
society and regional and local authorities.  

Paragraph  4  foresees  leaving  a  certain  amount  of  funds  unallocated  in  order  to  increase  the 
flexibility of the instrument and the possibility of reacting to unforeseen events (new political 
priorities, natural or man-made disasters, etc.).  

Article 11 (Programming documents for geographic programmes outlines the requirement 
and  principles  for  preparing  strategy  papers  for  the  countries  and  regions  receiving  an 
indicative  allocation  under  this  Regulation  and,  based  on  these,  multiannual  indicative 
programmes. The article also lists exceptions for when a strategy paper would not need to be 
prepared in order to simplify the programming process as well as to favour joint programming 
with Member States and alignment to the national programmes of development countries.  

To ensure country ownership and principles of aid effectiveness, the strategy papers will be 
drafted in  dialogue  with  the partner countries and regions, with relevant involvement of the 
civil society and regional and local authorities. Member States, as well as other donors, will 
be involved in line with Article 10(3). 

The article also introduces the possibility of having a Joint Framework Document that would 
lay down a comprehensive Union strategy, of which development policy would be part of.  

The prepared Multiannual Indicative Programmes (MIP) could be based on any programming 
documents  identified  in  this  article,  except  when  the  total  allocation  would  not  exceed  30 

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million EUR. MIPs can be adjusted through a mid term or ad hoc review, in view of achieved 
objectives  as  well  as  in  light  of  newly  identified  needs,  such  as  those  resulting  from  crisis, 
post-crisis or fragility situations. 

Article  12  (Programming  for  countries  in  crisis,  post-crisis  or  fragility  situation) 
emphasises the special needs and circumstances of countries in crisis, post-crisis or fragility 
situation, which ought to be considered at the time of drafting of all programming documents. 
Paragraph  2  of  the  Article  12  highlights  the  potential  need  for  a  swift  response  in  such 
countries and foresees a special procedure (ex post comitology, Article 14(3)) for an ad hoc 
review of the strategy paper and of the multiannual indicative programme. 

Article  13  (Programming  documents  for  thematic  programmes)  describes 
the 
requirements  and  procedure  for  drafting  the  thematic  programming  documents.  The  Article 
also foresees a possibility of a mid term or ad hoc review, as necessary. 

Article  14  (Approval  of  Strategy  Papers  and  adoption  of  Multiannual  Indicative 
Programmes)  provides  that  multiannual  programming  documents  (i.e.  strategy  papers, 
multiannual  indicative  programmes  for  partner  countries  and  regions,  and  thematic  strategy 
papers) will be adopted by the Commission after obtaining the opinion of a committee made 
up of representatives of the Member States and chaired by a Commission representative (the 
committee being established under Article 24 of this Regulation).  

The  Article  also  provides  flexibility  and  simplification  for  cases  in  which  there  can  be  a 
derogation  from  the  standard  comitology  procedures  (e.g.  no  comitology  used  in  case  of 
technical adjustments or minor alterations of the overall allocations) and for cases where the 
comitology  procedures  could  be  applied  after  the  adoption  and  implementation  of 
Commission’s  amendments  (e.g.  cases  of  crisis,  post-crisis  and  fragility  or  in  the  cases  of 
threats to democracy and human rights). 

(4) 

Final provision (Title V) – Articles 15 to 22 

To make Union assistance more coherent and effective, and in particular to avoid programmes 
being  split  up  among  several  different  instruments,  Article  15  (Participation  by  a  third 
country not eligible under this Regulation) lays out the possibility to extend the eligibility 
of  this  Regulation  to  include  all  third  countries,  territories  and  regions,  insofar  as  this 
contributes to the general objectives of the Regulation.  

Article 16 (Suspension of assistance) lays down the procedure to be applied in the event of 
non-compliance  with  the  principles  set  out  in  Title II  and  eventual  suspension  of  assistance 
under this Regulation.  

Articles 17 and 18 (Delegation of powers to the Commission) introduce the possibility of 
empowering the Commission to adopt delegated acts to amend or supplement the annexes I to 
VI(I)  to  this  Regulation.  Article  28  describes  the  characteristics  and  procedures  of  this 
delegation  of  power.  The  European  Parliament  and 
the  Council  will  be  notified 
simultaneously and instantly when the Commission adopts such a delegated act, and the act 
shall enter into force only if no objection has been expressed by the two institution within the 
period of 2 months (extendable by additional 2 months) from the notification. 

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Article 19 (Committee) establishes the relevant committee assisting the Commission in the 
implementation of this Regulation6.  

Article 20 (Financial provisions) sets the financial reference amount for the implementation 
of the Regulation.  

Article  21  (European  External  Action  Service)  highlights  that  this  Regulation  is  to  be 
applied in accordance with the Council Decision establishing the organisation and functioning 
of the European External Action Service7, in particular Article 9 thereof. 

Article  22  (Entry  into  force)  provides  for  the  entry  into  force  of  the  Regulation  and  its 
application from 1 January 2014, without setting an expiration date. 

6 
7 

Regulation (EU) No 182/2011 
Council Decision (EU) 2010/427 

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2011/0406 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a financing instrument for development cooperation 

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 
Article 209(1) thereof,  

Having regard to the proposal from the Commission, 

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

8 
9 

10 

11 
12 

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  1605/2006  of  18  December  2006  establishing  a 
financing  instrument  for  development  cooperation8  which  expires  on  31  December 
2013. 

The fight against poverty remains the primary objective of the development policy of 
the  European  Union,  as  laid  down  in  Title  V,  Chapter  1  of  the  Treaty  on  European 
Union  and  Title  III,  Chapter  1  of  Part  Five  of  the  Treaty  on  the  Functioning  of  the 
European Union, in line with the Millennium Development Goals (MDGs)9, or other 
objectives accepted by the Union and its Member States.).  

The  European  Consensus  on  Development10  and  Commission  communications 
"Increasing  the  impact  of  EU  development  Policy  -  An  Agenda  for  Change"11,  and 
"The future approach of EU budget support to third countries"12, as well as any future 
communication  establishing  basic  orientations  and  principles  for  the  Union's 
development  policy,  and  their  subsequent  conclusions,  provide  the  general  policy 

OJ L 378, 27.12.2006, p. 41-71 
United Nations' Millennium Declaration, Resolution adopted by the General Assembly, 18 September 
2000. 
Joint  declaration  by  the  Council  and  the  representatives  of  the  governments  of  the  Member  States 
meeting within the Council, the European Parliament and the Commission on the development policy of 
the European Union entitled "The European Consensus", OJ C 46, 24.2.2006, p. 1. 
Communication of 13 October 2011, not yet published in the OJ. 
Communication of 13 October 2011, not yet published in the OJ. 

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framework,  the  orientations  and  the  focus  to  guide  the  implementation  of  this 
Regulation.  

(4) 

The Union is founded on the values of democracy, the rule of law, the universality and 
indivisibility  of  and  respect  for  human  rights  and  fundamental  freedoms,  respect  for 
human dignity, the principles of equality and solidarity and respect for the principles 
of  the  UN  Charter  and  international  law.  It  seeks  to  develop  and  consolidate 
commitment  to  these  values  in  partner  countries  and  regions  through  dialogue  and 
cooperation. 

(5) 

The Union also aims to ensure coherence with other areas of its external action. This 
should be ensured when formulating the Union's development cooperation policy and 
its strategic planning programming and implementation of measures. 

(6)  More effective aid, greater complementarity and better harmonisation, alignment with 
partner  countries,  and  coordination  of  procedures,  both  between  the  Union  and  its 
Member  States  and  in  relations  with  other  donors  and  development  actors,  are 
essential  for  ensuring  the  consistency  and  relevance  of  aid  whilst  at  the  same  time 
reducing  the  costs  borne  by  partner  countries.  Through  its  development  policy,  the 
Union  is  committed  to  implementing  those  conclusions  of  the  Declaration  on  Aid 
Effectiveness  adopted  by  the  High  Level  Forum  on  Aid  Effectiveness,  held  in  Paris, 
on  2  March  2005,  the  Accra  Agenda  for  Action  adopted  on  4  September  2008  and 
their follow-up Declaration adopted in Busan on 1st December 2011. The objective of 
achieving  a  joint  programming  amongst  the  Union  and  its  Member  States  should  be 
reinforced. These commitments have lead to a number of conclusions of the Council 
and of the Representatives of the Governments of the Member States meeting with the 
Council such as the EU Code of Conduct on Complementarity and Division of Labour 
in Development Policy13, and the Operational Framework on Aid Effectiveness14. 

(7) 

(8) 

Union  assistance  should  support  the  Joint  Africa-EU  Strategy15  and  its  successive 
Actions  Plans  which  forms  the  framework  for  broad  and  mutually  beneficial 
cooperation  within  a  Strategic  Partnership  characterised  by  the  pursuit  of  common 
objectives on an equal footing. 

The  Union  and  the  Member  States  should  improve  the  consistency  and  the 
complementarity of their respective policies on development cooperation, in particular 
by responding to partner countries' and regions' priorities at country and regional level. 
To  ensure  that  the  Union's  development  cooperation  policy  and  that  of  the  Member 
States  complement  and  reinforce  each  other,  it  is  appropriate  to  provide  for  joint 
programming  procedures  which  should  be  implemented  whenever  possible  and 
relevant. 

(9) 

The Union's policy and international action for development cooperation are guided by 
the  MDGs,  such  as  the  eradication  of  extreme  poverty  and  hunger,  including  any 

13 

14 

15 

Council Conclusions of 15 May 2007 on "EU Code of Conduct on Complementarity and Division of 
Labour in Development Policy" (doc. 9558/07). 
Council  Conclusions  of  17 November  2009  on  an  Operational  Framework  on  Aid  Effectiveness 
(doc. 15912/09), enlarged and consolidated 11 January 2011 (doc. 18239/10).  
THE  AFRICA-EU  STRATEGIC  PARTNERSHIP  A  Joint  Africa-EU  Strategy,  adopted  at  the  Lisbon 
Summit, 9 December 2007. 

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subsequent  modifications  thereto,  and  by  the  development  objectives  and  principles 
approved  by  the  Union  and  its  Member  States,  including  in  the  context  of  their 
cooperation  within  the  United  Nations  (UN)  and  other  competent  international 
organisations in the field of development cooperation.  

(10)  The  Union  should  promote  a  comprehensive  approach  in  response  to  crisis  and 
disaster  and  to  conflict-affected  and  fragile  situations,  including  those  of  transition. 
This  should  in  particular  build  on  the  Council  conclusions  on  Security  and 
Development16  on an EU response to situations of fragility17 on conflict prevention18 
as well as any relevant subsequent conclusions. This should provide the necessary mix 
of  approaches,  responses  and  instruments  in  particular  by  ensuring  an  appropriate 
balance between the security-oriented, development and humanitarian approaches, and 
by linking short-term reaction with the long term support. 

(11)  Union assistance should focus where it has more impact, having regard to its capacity 
to act on a global scale and respond to global challenges such as poverty eradication, 
sustainable and inclusive development and worldwide promotion of democracy, good 
governance,  human  rights  and  the  rule  of  law,  its  long-term  and  predictable 
commitment  to  development  assistance  and  its  role  in  coordinating  with  its  Member 
States.  To  ensure  such  impact,  the  principle  of  differentiation  should  be  applied  not 
only at the level of funds allocation, but also at the level of programming, to ensure 
that  bilateral  development  cooperation  targets  partner  countries  most  in  need, 
including fragile states and states with high vulnerability, and with limited capacity to 
have  access  to  other  sources  of  financing  for  supporting  their  own  development, 
having regard to the potential impact of the Union assistance in partner countries. As a 
consequence,  bilateral  programming  would  target  such  countries,  pursuant  to  the 
application of objective criteria based on the needs and capacities of these countries, as 
well as the impact of EU assistance. 

(12)  This  Regulation  should  provide  an  enabling  framework  for  programming,  allowing 
enhanced consistency between Union policies by using a joint framework document as 
a  basis  for  programming.  It  should  enable  full  alignment  with  partner  countries  and 
regions  by  relying,  where  appropriate,  on  national  development  plans  or  similar 
comprehensive  development  documents;  and  pursue  a  better  coordination  amongst 
donors,  in  particular  between  the  Union  and  its  Member  States,  through  joint 
programming. 

(13)  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. 

16 

17 

18 

Security and Development - Conclusions of the Council and the Representatives of the Governments of 
the Member States meeting within the Council of 20 November 2007 (doc.15097/07). 
An EU response to situations of fragility - Conclusions of the Council and the Representatives of the 
Governments of the Member States meeting within the Council of 20 November 2007 (doc. 11518/07). 
Council conclusions on conflict prevention, 3101st Foreign Affairs Council meeting, Luxembourg, 20 
June 2011. 

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(14) 

In  a  globalised  world,  different  internal  EU  policies  such  as  environment,  climate 
change,  employment  (including  decent  work  for  all),  gender  equality,  energy,  water, 
transport, health, education, justice and security, research and innovation, information 
society,  migration,  agriculture  and  fisheries,  are  increasingly  becoming  part  of  the 
EU's external action. Commission Communication ‘Europe 2020: A strategy for smart, 
sustainable  and  inclusive  growth’19  underlines  the  commitment  of  the  Union  to 
promote  in  its  internal  and  external  policies  smart,  inclusive  and  sustainable  growth 
bringing together three pillars: economic, social and environmental. 

(15)  Fighting  climate  change  and  protecting  the  environment  are  among  the  great 
challenges which face the Union and where the need for international action is urgent. 
In  accordance  with  the  intent  stated  in  Commission  Communication  "A  budget  for 
Europe 2020" of 29 June 201120, this Regulation should contribute to the objective of 
addressing at least 20% of the EU budget to low carbon and climate resilient society, 
and the global public goods and challenges programme should use at least 25% of its 
funds  to  cover  climate  change  and  environment.  Actions  in  these  two  areas  should, 
wherever possible, be mutually supportive in order to reinforce their impacts. 

(16)  Commission  communication  "Increasing  the  impact  of  EU  Development  Policy:  an 
Agenda  for  Change"21  envisages  continued  support  for  social  inclusion  and  human 
development  through  at  least  20%  of  the  Union's  development  aid.  To  contribute  to 
that  end,  at  least  20%  of  the  global  public  goods  and  challenges  programme  should 
support that area of development. 

(17)  The lists of partner countries under this Regulation should be adapted on the basis of 
possible  changes  to  their  status  as  established  by  the  Development  Assistance 
Committee  of  the  Organization  for  Economic  Cooperation  and  Development 
(OECD/DAC), as well as important changes in human development, aid dependency, 
crisis  situations,  vulnerability  and  other  aspects  including  the  dynamics  of  the 
development  process.  Such  updates,  reviews  of  the  partner  countries  eligible  for 
bilateral  development  cooperation  and  modifications  in  the  definitions  of  detailed 
areas  of  cooperation  and  activities,  and  adjustments  of  the  indicative  financial 
allocation  per  programme,  constitute  non-essential  elements  of  this  Regulation. 
Consequently,  in  order  to  adapt  its  scope  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  for 
updating  the  Annexes  of  this  Regulation  which  includes  the  list  of  partner  countries 
and regions eligible for Union financing, the definition of detailed areas of cooperation 
under  geographic  and  thematic  programmes  and  the  indicative  allocations  per 
programme.  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 further ensure a 
simultaneous,  timely  and  appropriate  transmission  of  relevant  documents  to  the 
European Parliament and Council. 

19 
20 
21 

COM(2010) 2020 final 
COM(2011) 500 final 
COM(2011) 637 final 

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(18) 

In  order  to  ensure  uniform  conditions  for  the  implementation  of  this  Regulation, 
implementing powers should be conferred on the Commission.  

(19)  The  implementing  powers  relating  to  strategy  papers  and  multiannual  indicative 
programmes laid down in Articles 11 to 14 of this Regulation should be exercised in 
accordance with Regulation (EU) No 182/2011 of the European Parliament and of the 
Council of 16 February 2011 laying down the rules and general principles concerning 
mechanisms  for  control  by  Member  States  of  the  Commission's  exercise  of 
implementing powers22. Taking into account the nature of those implementing acts, in 
particular  their  policy  orientation  nature  or  their  budgetary  implications,  the 
examination  procedure  should  in  general  be  used  for  their  adoption,  except  for 
measures  of  a  small  financial  scale.  The  Commission  should  adopt  immediately 
applicable implementing acts where, in duly justified cases relating to the need for a 
swift response from the Union, imperative grounds of urgency so requires. 

(20)  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 ….23, hereinafter 'the Common Implementing Regulation'. 

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

described in Council Decision 2010/427/EU24, 

HAVE ADOPTED THIS REGULATION: 

TITLE I 

INTRODUCTION 

Article 1 

Subject matter and scope 

1. 

Under this Regulation, the Union may finance: 

(a)  geographic  programmes  aimed  at  supporting  cooperation  with  developing 
countries, territories and regions set out in Annex I (hereinafter referred to as 
'partner countries and regions'), which are included in the list of recipients of 
Official Development Assistance (ODA) of the OECD/DAC set out in Annex 
II. Partner countries that shall benefit from bilateral development assistance are 
set out in Annex III. 

(b) 

thematic  programmes  to  address  global  public  goods  and  challenges  and 
support civil society organisations and local authorities in countries, territories 
and  regions  eligible  for  Union  funding  under  geographic  programmes,  in 
accordance with Annex I of this Regulation, Regulation (EU) No [.../…] of the 
European Parliament and the Council establishing a European Neighbourhood 

22 
23 
24 

OJ L 55, 28.2.2011, p. 13 
OJ L…. 
OJ L 201, 3.8.2010, p. 30 

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Instrument25, and Council Decision [2001/822/EC of 27 November 2001 on the 
association  of  the  overseas  countries  and  territories26],  and  in  African, 
Caribbean and Pacific (ACP) countries signatories to the ACP-EU Partnership 
Agreement signed in Cotonou on 23 June 2000. 

(c) 

a  Pan-African  programme  to  support  the  Joint  Africa-EU  Strategy  in  the 
countries, territories and regions covered by that Strategy. 

2. 

For  the  purposes  of  this  Regulation,  a  region  is  defined  as  a  geographical  entity 
comprising more than one developing country. 

TITLE II 

OBJECTIVES AND GENERAL PRINCIPLES 

Article 2 

Objectives and eligibility criteria 

1. 

Within the framework of the principles and objectives of the Union's external action. 

(a) 

(b) 

the  primary  objective  of  cooperation  under  this  Regulation  shall  be  the 
reduction and, in the long term, the eradication of poverty; 

cooperation  under  this  Regulation  will  also  contribute  to  the  achievement  of 
other objectives of EU external action, in particular: 

fostering sustainable economic, social and environmental development, 

(i) 
and  

promoting democracy, the rule of law, good governance and respect for 

(ii) 
human rights. 

The achievement of these objectives shall be measured using relevant indicators, in 
particular MDG 1 for subparagraph (a) and MDGs 1 to 8 for subparagraph (b), and 
other indicators agreed by the Union and its Member States. 

2. 

Actions under geographic programmes shall be designed so as to fulfil the criteria for 
ODA established by the OECD/DAC. 

Actions under the Pan-African and thematic programmes shall be designed so as to 
fulfil the criteria for ODA established by the OECD/DAC, unless: 

(a) 

the characteristics of the beneficiary require otherwise, or 

(b) 

the  action  implements  a  global  initiative,  a  Union  policy  priority  or  an 
international obligation or commitment of the Union, as referred to in Article 6, 
and the action does not have the characteristics to fulfil the criteria for ODA. 

25 
26 

OJ L … 
OJ L 314 of 30.11.2001, p. 1.  

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3. 

1. 

2. 

3. 

4. 

Without  prejudice  to  point  (a),  at  least  90  %  of  the  expenditure  foreseen  under  the 
Pan-African and thematic programmes shall fulfil the criteria for ODA established by 
the OECD/DAC. 

Actions  covered  by  Council  Regulation  (EC)  No  1257/96  of  20  June  1996 
concerning  humanitarian  aid27  and  eligible  for  funding  under  that  Regulation  shall 
not,  in  principle,  be  funded  under  this  Regulation,  except  where  there  is  a  need  to 
ensure continuity of cooperation from crisis to stable conditions for development.  

Article 3 

General principles 

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

In the implementation of this Regulation and with the purpose to ensure high impact 
of  Union  assistance,  a  differentiated  approach  amongst  partner  countries  shall  be 
pursued,  in  order  to  ensure  that  they  are  provided  with  specific,  tailor-made 
cooperation based on their: 

(a)  needs; 

(b) 

capacities to generate and access financial resources and absorption capacities; 
and 

(c) 

commitments and performance. 

The  differentiated  approach  shall  also  be  pursued  having  regard  to  the  potential 
impact of the Union assistance in partner countries. 

The countries most in need, in particular the least developed countries, low income 
countries and countries in crisis, post-crisis, fragile and vulnerable situation, shall be 
given priority in the resource allocation process. 

The  following  cross-cutting  issues  shall  be  mainstreamed  in  all  programmes:  the 
promotion  of  human  rights,  gender  equality,  women  empowerment,  non-
discrimination, democracy, good governance, the rights of the child and indigenous 
peoples'  rights,  social  inclusion  and  the  rights  of  persons  with  disabilities, 
environmental  sustainability  including  addressing  climate  change  and  combating 
HIV/AIDS.  

Particular attention shall be given to strengthening the rule of law, improving access 
to justice and supporting civil society, trade and sustainable development, access to 
ICTs,  health  and  food  security,  as  well  as  promoting  dialogue,  participation  and 
reconciliation, and institution-building. 

27 

OJ L 163, 2.7.1996, p. 1. 

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5. 

6. 

7. 

8. 

In  implementing  this  Regulation,  consistency  shall  be  ensured  with  other  areas  of 
Union external action and with other relevant Union policies. To this end, measures 
financed under this Regulation, including those managed by the EIB, shall be based 
on  the  cooperation  policies  set  out  in  instruments  such  as  agreements,  declarations 
and  action  plans  between  the  Union  and  the  third  countries  and  regions concerned, 
and on the Union’s decisions, specific interests, policy priorities and strategies. 

The Commission and the Member States shall seek regular and frequent exchanges 
of information, including with other donors, and promote better donor coordination 
and complementarity by working towards joint multiannual programming, based on 
partner  countries'  poverty  reduction  or  equivalent  strategies,  by  common 
implementation mechanisms including shared analysis, by joint donor-wide missions 
and by the use of co-financing and delegated cooperation arrangements. 

Within  their  respective  spheres  of  competence,  the  Union  and  the  Member  States 
shall  promote  a  multilateral  approach  to  global  challenges  and,  where  appropriate, 
foster  cooperation  with  international  organisations  and  bodies  and  other  bilateral 
donors. 

The Union shall promote effective cooperation with partner countries and regions in 
line  with  international  best  practice.  It  shall  increasingly  align  its  support  with 
partners' national or regional development strategies, reform policies and procedures. 
It  shall  contribute  to  strengthening  the  process  of  mutual  accountability  between 
partner  governments  and  institutions  and  donors  and  promote  local  expertise  and 
local employment. To that end, it shall promote:  

(a) 

a development process that is partner country or region led and owned; 

(b) 

(c) 

inclusive  and  participatory  approaches 
to  development  and  a  broad 
involvement  of  all  segments  of  society  in  the  development  process  and  in 
national and regional dialogue, including political dialogue; 

effective  and  innovative  cooperation  modalities  and  instruments  as  set  out  in 
Article  4  of  the  Common  Implementing  Regulation  ,  such  as  blending  grants 
and loans and other risk-sharing mechanisms in selected sectors and countries 
and private-sector engagement, in line with OECD/DAC best practices. These 
modalities and instruments shall be adapted to the particular circumstances of 
each partner country or region, with a focus on programme-based approaches, 
on delivery of predictable aid funding, on the mobilisation of private resources, 
on  the  development  and  use  of  country  systems  and  on  results-based 
approaches  to  development  including,  where  appropriate,  internationally 
agreed targets and indicators such as those of the MDGs; and 

(d) 

improved  impact  of  policies  and  programming  through  coordination  and 
harmonisation  between  donors  to  reduce  overlap  and  duplication,  to  improve 
complementarity and to support donor-wide initiatives.  

(e)  Coordination  shall  take  place  in  partner  countries  and  regions  using  agreed 

guidelines and best practice principles on coordination and aid effectiveness. 

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9. 

The  Union  will  support  inter  alia  the  implementation  of  bilateral,  regional  and 
multilateral  cooperation  and  dialogue,  partnership  agreements  and  triangular 
cooperation. 

10. 

The Commission shall seek regular exchanges of information with civil society. 

TITLE III 

GEOGRAPHIC AND THEMATIC PROGRAMMES 

Article 4 

Implementation of Union assistance 

Consistently  with  the  overall  purpose  and  scope,  objectives  and  general  principles  of  this 
Regulation, Union assistance shall be implemented through geographic, thematic and the Pan-
African programmes and in accordance with the Common Implementing Regulation. 

Article 5 

Geographic programmes 

1. 

2. 

3. 

4. 

Union cooperation activities under this Article will be implemented for activities of 
national, regional, trans-regional and continental nature. 

Without  prejudice  to  Article  1(1)(a),  a  geographic  programme  shall  encompass 
cooperation in appropriate areas of activity,  

(a) 

regionally with partner countries set out in Annex I, and  

(b)  bilaterally with partner countries set out in Annex III. 

Geographic  programmes  may  be  drawn  from  the  areas  of  cooperation  contained  in 
the "European Consensus", amongst others, in order to attain the objectives provided 
for in Article 2(1). 

Common areas of cooperation and specific areas of cooperation for each region are 
set out in Annex IV.  

Within  each  country  programme,  the  Union  will  in  principle  concentrate  its 
assistance on three sectors. 

Article 6 

Thematic programmes 

Consistent  with  the  overall  purpose  and  scope,  objectives  and  general  principles  of  this 
Regulation,  actions  undertaken  through  thematic  programmes  shall  add  value  to  and,  be 
complementary to, actions funded under geographic programmes. 

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The following conditions shall apply to the programming of thematic actions: 

(a) 

(b) 

Union policy objectives under this Regulation cannot be achieved in an appropriate 
or effective manner through geographic programmes; 

the  actions  address  global  initiatives  supporting  internationally  agreed  goals,  or 
global public goods and challenges, in which case, by way of derogation from Article 
9  of  the  Common  Implementing  Regulation,  they  may  include  actions  in  Member 
States,  candidate  countries  and  potential  candidates  and  other  third  countries,  as 
envisaged in the relevant thematic programme; 

and/or 

(c) 

the actions are of the following nature: 

– 

– 

– 

– 

– 

multi-regional and/or cross-cutting; 

innovative  policies  and/or  initiatives  with  the  objective  of  informing  future 
actions; 

actions  in  cases  where  there  is  no  agreement  on  the  action  with  the  partner 
government(s); 

actions  which  reflect  a  Union  policy  priority  or  an  international  obligation  or 
commitment of the Union; and 

where appropriate, actions in cases where there is no geographic programme or 
where it has been suspended. 

Article 7 

Global public goods and challenges 

1. 

2. 

1. 

The  objective  of  Union  assistance  under  the  programme  ‘Global  public  goods  and 
challenges’ shall be to support actions in areas such as the environment and climate 
change,  sustainable  energy,  human  development,  food  security,  and  migration  and 
asylum. 

Detailed areas of activities to be pursued by the Union assistance under this Article 
are set out in Annex V.  

Article 8 

Civil society organisations and local authorities 

The objective of the programme on civil society organisations and local authorities in 
development shall be to finance initiatives in the area of development by or for civil 
society  organisations  and  local  authorities  originating  from  partner  countries,  the 
Union, candidate countries and potential candidates.  

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2. 

1. 

2. 

3. 

Detailed areas of activities to be pursued by the Union assistance under this Article, 
as  well  as  an  indicative  list  of  categories  of  civil  society  organisations  and  local 
authorities, are set out in Annex V. 

Article 9 

Pan-African programme 

Union  assistance  shall  support  the  implementation  of  the  Joint  Africa-EU  Strategy, 
and  in  particular  its  successive  Action  plans,  to  cover  activities  of  a  trans-regional, 
continental or global nature. 

The Pan-African programme will further promote complementarity and consistency 
with other financial instruments of the Union's external action, notably the European 
Development Fund and the European Neighbourhood Instrument. 

Detailed  areas  of  cooperation  to  be  pursued  by  Union  assistance  under  this  Article 
are set out in Annex VI. 

The  multiannual  indicative  programme  for  the  Pan-African  programme  shall  be 
drawn up on the basis of the Joint Africa-EU Strategy and its Action plans. 

TITLE IV 

PROGRAMMING AND ALLOCATION OF FUNDS 

Article 10 

General framework for programming and allocating funds 

1. 

For  geographic  programmes,  multiannual  indicative  programmes  for  partner 
countries  and  regions  shall  be  drawn  up  on  the  basis  of  a  strategy  document,  as 
provided for in Article 11.  

For thematic programmes, multiannual indicative programmes shall be drawn up as 
provided for in Article 13. 

The  Commission  shall  adopt  the  implementing  measures  laid  down  in  Article  2  of 
the Common Implementing Regulation on the basis of the programming documents 
referred  to  in  Articles  11  and  13.  In  particular  circumstances,  however,  Union 
support  may  also  take  the  form  of  measures  not  covered  in  these  documents,  as 
provided for in the Common Implementing Regulation.. 

2. 

The  Union  and  its  Member  States  shall  consult  each  other,  and  other  donors  and 
development actors including representatives of civil society and regional and local 
authorities,  at  an  early  stage  of  the  programming  process  in  order  to  promote 
complementarity  and  consistency  among 
their  cooperation  activities.  This 
consultation  may  lead  to  joint  programming  between  the  Union  and  its  Member 
States. 

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3. 

4. 

1. 

2. 

3. 

The Commission shall determine the multiannual indicative allocations within each 
geographic programme in accordance with the general principles of this Regulation, 
based on the criteria laid down in Article 3(2), and taking into account, alongside the 
specificity of the different programmes, the particular difficulties faced by countries 
or regions that are in crisis, vulnerable, fragile, in conflict or disaster prone. 

Funds may be left unallocated. Subject to their subsequent allocation or re-allocation 
as provided for in Articles 11(5) and 13, the use of these funds shall be decided later 
in accordance with the Common Implementing Regulation.  

Article 11 

Programming documents for geographic programmes 

Strategy  papers  are  documents  drawn  up  by  the  Union  to  provide  a  coherent 
framework for development cooperation between the Union and the partner country 
or  region  concerned,  consistent  with  the  overall  purpose  and  scope,  objectives, 
principles and policy of the Union.  

The  preparation  and  implementation  of  strategy  papers  shall  comply  with  the 
principles  of  aid  effectiveness:  national  ownership,  partnership,  coordination, 
harmonisation,  alignment  with  recipient  country  or  regional  systems,  mutual 
accountability and results orientation as laid down in Article 3(5) to (8). 

To that end, strategy papers shall, in principle, be based on a dialogue between the 
Union  and  the  partner  country  or  region,  involving  where  appropriate,  the  relevant 
Member  States,  and  the  partner  country  or  region,  involving  civil  society  and 
regional  and  local  authorities,  so  as  to  ensure  that  the  country  or  region  concerned 
takes  sufficient  ownership  of  the  process  and  to  encourage  support  for  national 
development strategies, particularly those for reducing poverty. 

Strategy  papers  may  be  reviewed  at  their  mid-term,  or  ad  hoc  if  necessary,  in 
accordance,  as  appropriate,  with  the  principles  and  procedures  laid  down  in  the 
partnership  and  cooperation  agreements  concluded  with  the  partner  countries  and 
regions.  

Strategy papers shall be drawn up for the relevant partner countries or regions, unless 
a joint framework document laying down a comprehensive Union strategy, including 
development policy, has been drawn up for the partner country or region concerned. 

No strategy paper will be required for: 

(a) 

countries  having  a  national  development  strategy  in  the  form  of  a  national 
development  plan  or  a  similar  development  document  accepted  by  the 
Commission  as  a  basis  for 
indicative 
programme, when adopting of the latter document;  

the  corresponding  multiannual 

(b) 

countries  or  regions  for  which  a  joint  multiannual  programming  document 
between the Union and Member States has been agreed; 

(c) 

regions having a jointly agreed strategy with the EU. 

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4. 

5. 

Strategy  papers  shall  not  be  required  for  the  countries  or  regions  receiving  an 
allocation  of  Union  funds  under  this  Regulation  not  exceeding  EUR  50  million  for 
the 2014-2020 period. 

Multiannual  indicative  programmes  shall  be  drawn  up  for  each  of  the  countries  or 
regions  receiving  an  indicative  allocation  of  Union  funds  under  this  Regulation 
Except for countries or regions mentioned in paragraph 4, these documents shall be 
drawn up on the basis of the strategy papers or similar documents referred to in this 
Article.  

For  the  purpose  of  this  Regulation,  where  it  complies  with  the  principles  and 
conditions established in this paragraph, including an indicative allocation of funds, 
and  with  the  procedures  provided  for  in  Article  14,  the  joint  multiannual 
programming  document  provided  for  in  paragraph  3(b)  may  be  considered  as  the 
multiannual indicative programme. 

Multiannual indicative programmes shall set out the priority areas selected for Union 
financing,  the  specific  objectives,  the  expected  results,  the  performance  indicators 
and  the  indicative  financial  allocation,  both  overall  and  per  priority  area.  Where 
appropriate, this allocation may be given in the form of a range and/or some funds 
may be left unallocated.  

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

Pursuant  to  the  principle  of  mutual  accountability  in  the  pursuit  and  fulfilment  of 
agreed  objectives,  including  those  referring  to  good  governance,  democracy  and 
respect  for  human  rights  and  to  the  rule  of  law,  indicative  allocations  may  be 
increased or decreased as a result of reviews, particularly in the light of special needs 
such  as  those  resulting  from  a  crisis,  post-crisis  or  fragility  situation,  or  where 
performance has been exceptional or unsatisfactory. 

Article 12 

Programming for countries in crisis, post-crisis or fragility situations 

1. 

When drawing up the programming documents for countries in crisis, post-crisis, or 
fragility situations, due account shall be taken of the vulnerability, special needs and 
circumstances of the countries or regions concerned.  

Proper  attention  should  be  given  to  conflict  prevention,  state  and  peace  building, 
post-conflict reconciliation and reconstruction measures. 

Where  partner  countries  or  groups  of  partner  countries  are  directly  involved  in,  or 
affected by, a crisis, post-crisis or fragility situation, special emphasis shall be placed 
on  stepping  up  coordination  between  relief,  rehabilitation  and  development  to  help 
them  make  the  transition  from  an  emergency  situation  to  the  development  phase. 
Programmes  for  countries  and  regions  in  fragility  or  regularly  subject  to  natural 
disasters shall provide for disaster preparedness and prevention and for managing the 
consequences of such disasters. 

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2. 

1. 

2. 

3. 

1. 

2. 

In cases of crises, post crisis and fragility situations or threats to democracy, the rule 
of  law,  human  rights  or  fundamental  freedoms  requiring  a  swift  response  by  the 
Union,  the  urgency  procedure  provided  for  in  Article  15(4)  of  the  Common 
Implementing Regulation may be used to modify the document referred to in Article 
11 following an ad hoc review of the country's or region's cooperation strategy.  

Such reviews may propose a specific and adapted strategy to ensure the transition to 
long-term  cooperation  and  development,  promoting  a  better  coordination  and 
transition between the humanitarian and development policy instruments. 

Article 13 

Programming documents for thematic programmes 

Multiannual  indicative  programmes  for  thematic  programmes  shall  set  out  the 
Union's strategy for the theme concerned, the priorities selected for financing by the 
Union,  the  specific  objectives,  the  expected  results,  the  performance  indicators,  the 
international  situation  and  the  activities  of  the  main  partners.  Where  applicable, 
resources  and  intervention  priorities  shall  be  laid  down  for  participation  in  global 
initiatives.  Multiannual  indicative  programmes  shall  be  consistent  with  the 
documents referred to in Article 11(3). 

The multiannual indicative programmes shall give the indicative financial allocation, 
both overall and by priority area. Where appropriate, this allocation may, be given in 
the  form  of  a  range,  and/or  some  funds  may  be  left  unallocated.  Multiannual 
indicative  programmes  should  be  adjusted  where  necessary  for  an  effective  policy 
implementation, taking into account any mid-term or ad hoc reviews. 

The  Commission  and  the  Member  States  shall  consult  each  other,  as  well  as  other 
donors  and  development  actors  including  representatives  of  civil  society  and  local 
authorities,  at  an  early  stage  of  the  programming  process  in  order  to  promote 
complementarity among their cooperation activities.  

Approval of strategy papers and adoption of multiannual indicative programmes 

Article 14 

Strategy  papers  shall  be  approved  and  multiannual  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 significantly modifying the 
strategy or its programming. 

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

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3. 

On  duly  justified  imperative  grounds  of  urgency  relating  inter  alia  to  the 
circumstances  referred  to  in  Article  12(2),  the  Commission  may  modify  strategy 
papers  and  multiannual  indicative  programmes  in  accordance  with  the  urgency 
procedure referred in Article 15(4) of the Common Implementing Regulation. 

TITLE V 

FINAL PROVISIONS 

Article 15 

Participation by a third country non eligible under this Regulation 

In  duly  justified  circumstances  and  in  order  to  ensure  the  coherence  and  effectiveness  of 
Union  financing  or  to  foster  regional  or  trans-regional  cooperation,  the  Commission  may 
decide,  without  prejudice  to  Article  2(3),  to  extend  the  eligibility  of  actions  to  countries, 
territories and regions which otherwise would not be eligible for financing pursuant to Article 
1, where the action to be implemented is of a global, regional, trans-regional or cross border 
nature.  Notwithstanding  the  provisions  of  Article  8(1)  of  the  Common  Implementing 
Regulation,  natural  and  legal  persons  from  countries,  territories  and  regions  concerned  may 
participate in the procedures implementing such actions. 

Article 16 

Suspension of assistance 

Without  prejudice  to  the  provisions  on  suspension  of  aid  in  partnership  and  cooperation 
agreements  with  partner  countries  and  regions,  where  a  partner  country  fails  to  observe  the 
principles  referred  to  in  Article  3(1),  the  Union  shall  invite  the  partner  country  to  hold 
consultations  in  view  of  finding  a  solution  acceptable  to  both  parties,  except  in  cases  of 
special  urgency.  Where  consultations  with  the  partner  country  do  not  lead  to  a  solution 
acceptable to both parties, or if consultations are refused or in cases of special urgency, the 
Council may take appropriate measures in accordance with Article 215(1) of the Treaty on the 
Functioning  of  the  European  Union,  which  may  include  full  or  partial  suspension  of  Union 
assistance. 

Article 17 

Delegation of powers to the Commission 

The Commission shall be empowered to adopt delegated acts in accordance with Article 18 to 
amend or supplement the Annexes I to VII to this Regulation. 

Article 18 

Exercise of the delegation 

1. 

The delegation of powers referred to in Article 17 shall be conferred for the period of 
validity of this Regulation. 

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2. 

3. 

4. 

5. 

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. 

Except  for  the  cases  mentioned  in  paragraph  5,  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.  

The  non-objection  period  for  aligning  Annex  I,  II  and  III  to  the  decisions  of  the 
OECD/DAC  reviewing  the  list  of  recipients  laid  down  in  Article  1(a)  shall  be  one 
week. 

Article 19 

Committee 

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

Article 20 

Financial reference amount 

1. 

2. 

3. 

The  financial  reference  amount  for  the  implementation  of  this  Regulation  over  the 
period 2014-2020 is EUR 23 294 700 000. 

The indicative minimum amounts allocated to each programme referred to in Articles 
5 to 9 for the period 2014-2020 are laid down in Annex VII.  The  amounts  may  be 
reallocated  between  programmes  by  a  delegated  act  in  accordance  with  Article  18. 
The  amounts  within  the  global  public  goods  and  challenges  programme  may  be 
reallocated  between  subheadings  by  Commission  decision  which  shall  be 
communicated to the European Parliament and to the Council within one month of its 
adoption. 

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 

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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. 

Article 21 

European External Action Service 

The  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 22 

Entry into force 

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

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

It shall apply from 1 January 2014. 

Done at Brussels,  

For the European Parliament 
The President 

For the Council 
The President

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PARTNER COUNTRIES AND REGIONS ELIGIBLE UNDER ARTICLE 1(1)(a) 

ANNEX I 

Latin America 

1. Argentina 

2. Bolivia 

3. Brazil 

4. Chile 

5. Colombia 

6. Costa Rica 

7. Cuba 

8. Ecuador 

9. El Salvador 

10. Guatemala 

11. Honduras 

12. Mexico 

13. Nicaragua 

14. Panama 

15. Paraguay 

16. Peru 

17. Uruguay 

18. Venezuela 

Asia 

19. Afghanistan 

20. Bangladesh 

21. Bhutan 

22. Cambodia 

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23. China 

24. India 

25. Indonesia 

26. Democratic People's Republic of Korea 

27. Laos 

28. Malaysia 

29. Maldives 

30. Mongolia 

31. Myanmar/Burma 

32. Nepal 

33. Pakistan 

34. Philippines 

35. Sri Lanka 

36. Thailand 

37. Viet Nam 

Central Asia 

38. Kazakhstan 

39. Kyrgyz Republic 

40. Tajikistan 

41. Turkmenistan 

42. Uzbekistan 

Middle East 

43. Iran 

44. Iraq 

45. Yemen 

SouthAfrica 

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46. South Africa 

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ANNEX II 

OECD/DAC LIST OF ODA RECIPIENTS 

Effective for reporting on 2011, 2012 and 2013 flows 

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ANNEX III 

PARTNER COUNTRIES AND REGIONS WITH A BILATERAL COOPERATION ACCORDING 
TO ARTICLE 5(2) 

The  following  partner  countries  benefit  from  bilateral  development  assistance  under  this  Regulation 
pursuant to Article 5(2): 

1. Bolivia 

2. Cuba 

3. El Salvador 

4. Guatemala 

5. Honduras 

6. Nicaragua 

7. Paraguay 

8. Afghanistan 

9. Bangladesh 

10. Bhutan 

11. Cambodia 

12. Democratic People's Republic of Korea 

13. Laos 

14. Mongolia 

15. Myanmar/Burma 

16. Nepal 

17. Pakistan 

18. Philippines 

19. Sri Lanka 

20. Viet Nam 

21. Kyrgyz Republic 

22. Tajikistan 

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23. Turkmenistan 

24. Uzbekistan 

25. Iraq 

26. Yemen. 

27. South Africa 

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ANNEX IV 

AREAS OF COOPERATION UNDER GEOGRAPHIC PROGRAMMES 

A. COMMON AREAS OF COOPERATION UNDER GEOGRAPHIC PROGRAMMES 

Geographic programmes may be drawn, inter alia, from the areas of cooperation identified hereafter, 
which should not be read to equate with sectors. Priorities will be established in accordance with the 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council  and  the  European 
Economic  and  Social  Committee  and  the  Committee  of  the  Regions  "Increasing  the  impact  of  EU 
Development  Policy:  an  Agenda  for  Change"  and  with  the  subsequent  conclusions  from  the  Council 
institutions.  

I. Human rights, democracy and other key elements of good governance 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

Democracy, human rights and the rule of law; 

Gender equality and the empowerment of women; 

Public sector management; 

Tax policy and administration; 

Corruption; 

Civil society and local authorities; 

Natural resources; and 

Development-security nexus. 

II. Inclusive and sustainable growth for human development 

(a) 

(b) 

(c) 

Social protection, health, education and jobs; 

Business environment, regional integration and world markets; and 

Sustainable agriculture and energy.  

III. Other areas of significance for Policy Coherence for Development 

(a) 

(b) 

(c) 

Climate change and environment; 

Migration and asylum; and 

Transition from humanitarian aid and crisis response to long-term development cooperation. 

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B. SPECIFIC AREAS OF COOPERATION PER REGION 

European  Union  assistance  shall  support  actions  and sectoral  dialogues  consistent  with  Article  5  and 
with  the  overall  purpose  and  scope,  objective  and  general  principles  of  this  Regulation.  Appropriate 
consideration  shall  be  given  to  the  areas  described  below,  reflecting  jointly-agreed  strategies, 
partnership,  cooperation  and  trade  agreements.  Priorities  will  be  established  in  accordance  with  the 
Communication "An Agenda for Change" and with the subsequent conclusions of the Council. 

Latin America 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

(g) 

Asia 

(a) 

(b) 

encouraging  social  cohesion,  in  particular  social  inclusion,  decent  work  and  equity,  gender 
equality and women empowerment; 

addressing governance issues and supporting policy reforms, in particular in the areas of social 
policies,  public  finance  management  and  taxation,  security  (including  drugs,  criminality  and 
corruption),  reinforcement  of  good  governance  and  public  institutions  (including  through 
innovative mechanisms for the provision of technical cooperation, e.g. TAIEX and twinning), 
protection  of  human  rights,  including  the  indigenous  peoples'  and  afro-descendents’  rights, 
environment,  fight  against  discrimination,  and  fight  against  production,  consumption  and 
trafficking of drugs; 

supporting  various  processes  of  regional  integration  and  interconnection  of  network 
infrastructures,  while  ensuring  complementarity  with  activities  supported  by  European 
Investment Bank (EIB) and other institutions; 

addressing the security-development nexus; 

supporting policies in the area of education and the development of a common Latin American 
higher education area; 

addressing  economic  vulnerability  and  contributing 
transformation  by 
establishing  a  strong  partnerships  around  trade,  investments,  know-how  and  research, 
innovation  and  technology,  and  promoting  sustainable  and  inclusive  growth  in  all  its 
dimensions,  with  particular  attention  to  the  challenges  of  migratory  flows,  food  security 
(including sustainable agriculture and fisheries), climate change, sustainable energies and the 
protection  and  enhancement  of  biodiversity  and  ecosystem  services,  including  water  and 
forests, as well as on productive investment for more and better jobs in the green economy; 

to  structural 

ensuring an appropriate follow up to short term emergency measures addressing post-disaster 
or post-crisis recovery implemented through other financial instruments. 

encouraging social cohesion, in particular social inclusion, decent work and equity and gender 
equality; 

establishing  inclusive  partnerships  around  trade,  investment,  aid,  migration,  research, 
innovation and technology; 

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(c) 

(d) 

(e) 

(f) 

(g) 

(h) 

(i) 

building and strengthening legitimate, effective and accountable public institutions and bodies, 
through promotion of institutional reforms (including on good governance and anti-corruption, 
public  financial  management,  taxation  and  public  administration  reform)  and  legislative, 
administrative  and  regulatory  reforms  in  line  with  international  standards,  in  particular  in 
fragile states and countries in conflict and post-conflict situations; 

supporting an active and organised civil society for development and fostering public private 
partnerships;  

the  promotion  of  sustainable 
supporting  climate  change  mitigation  and  adaptation, 
consumption  and  production  as  well  as  investments  in  clean  technologies,  sustainable 
energies, transport, sustainable agriculture and fisheries, the protection of and enhancement of 
biodiversity  and  ecosystem  services,  including  water  and  forests,  and  decent  job  creation  in 
the green economy;  

encouraging  greater  regional  integration  and  cooperation  in  a  result-oriented  way  through 
support to different processes of regional integration and dialogue;  

contributing  to  preventing  and  responding  to  health  risks,  including  those  originating  at  the 
interface between animals, humans and their various environments; 

in  the  context  of  the  security  and  development  nexus,  fighting  against  corruption  and 
organised crime, production, consumption and trafficking of drugs and against other forms of 
trafficking, and supporting efficient border management and cross-border co-operation; 

supporting disaster preparedness and post disaster long term recovery, including in the field of 
food and nutrition security and assistance to uprooted people. 

Central Asia 

In  line  with  the  common  objectives  set  out  in  the  EU  Central  Asia  Strategy  for  a  New  Partnership 
adopted in 2007:  

(a) 

(b) 

(c) 

promoting constitutional reform and legislative, regulatory and administrative approximation 
with the Union, including further democratisation and organised civil society, support for the 
rule of law, good governance, taxation and strengthening of national institutions and bodies, 
such  as  election  bodies,  parliaments,  public  administration  reform  and  public  financial 
management;  

promoting  inclusive  and  sustainable  economic  growth,  addressing  social  and  regional 
inequalities,  and  supporting  policies  in  areas  such  as  education,  research,  innovation  and 
technology,  health,  decent  work,  sustainable  energy,  agriculture  and  rural  development, 
fostering  SMEs,  while  stimulating  the  development  of  a  market  economy,  trade  and 
investment, including regulatory reforms and the support for integration into the WTO; 

supporting efficient border management and cross-border cooperation to promote sustainable 
economic,  social  and  environmental  development  in  border  regions;  in  the  context  of  the 
security  and  development  nexus,  fighting  organized  crime  and  all  forms  of  trafficking, 
including  the  fight  against  production  and  consumption  of  drugs  as  well  as  negative  effects 
thereof, including HIV/AIDS; 

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(d) 

promoting  bilateral  and  regional  cooperation,  dialogue  and  integration  including  with 
countries covered by the European Neighbourhood Instrument and other Union instruments to 
support  policy  reforms,  including  through  public  capacity  building  through  institution 
building, technical assistance (e.g. TAIEX) , information exchange and twinning, and by key 
investments  through  appropriate  mechanisms  to  mobilise  EU  financial  resources  in  the 
emissions 
education, 
development/resilience to climate change impacts, as well as improving the security and safety 
of international energy supply and transport operations, interconnections, networks and their 
operators, including through activities supported by the EIB. 

sectors,  water/sanitation, 

environment 

energy 

low 

and 

Middle East 

(a) 

(b) 

(c) 

(d) 

(e) 

addressing  governance  (including  in  tax  area),  human  rights  and  political  equality  issues  in 
particular in fragile states so as to help build legitimate, democratic, effective and accountable 
public institutions and an active and organised civil society;  

encouraging social cohesion, in particular social inclusion, decent work and equity and gender 
equality; 

promoting  sustainable  economic  reform  and  diversification,  trade,  the  development  of  a 
market economy, productive and sustainable investment in the main sectors (such as energy, 
including renewable energy), public private partnerships, and partner countries' integration in 
the WTO; 

promoting regional cooperation, dialogue and integration, including with countries covered by 
the  European  Neighbourhood  Instrument  and  the  Gulf  States  covered  by  the  Partnership 
Instrument  and  other  EU  instruments  inter  alia  by  supporting  integration  efforts  within  the 
region, indicatively on economy, energy, water, transportation and refugees;  

complementing  resources  deployed  under  this  instrument  by  coherent  work  and  support 
through other EU instruments, which may focus on wider regional integration, promoting the 
EU’s  interests  in  fields  such  as  economy,  energy,  research,  innovation  and  technology, 
fighting against production, consumption and trafficking of drugs in the context of the security 
and  development  nexus,  as  well  as  managing  migration  and  helping  displaced  persons  and 
refugees in the context of the development and migration nexus. 

South Africa 

(a) 

(b) 

(c) 

(d) 

supporting the consolidation of a democratic society, good governance and a state governed by 
the rule of law and contributing to regional and continental stability and integration; 

providing support to the adjustment efforts triggered by the establishment of various free-trade 
areas; 

promoting  decent  work,  supporting  the  fight  against  poverty,  inequality  and  exclusion, 
including by addressing the basic needs of the previously disadvantaged communities; 

overcoming economic vulnerability and achieving structural transformation with emphasis on 
decent  employment  through  sustained  and  inclusive  economic  growth,  a  low  carbon  green 

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economy and sustainable development in all its dimensions (including sustainable agriculture 
and fisheries) and enhancement of biodiversity and ecosystem services; 

(e) 

addressing  sexual  and  gender  based  violence  and  health  issues:  including  HIV/AIDS  and  its 
impacts on society. 

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ANNEX V 

AREAS OF ACTIVITY UNDER THEMATIC PROGRAMMES 

A. PROGRAMME ON GLOBAL PUBLIC GOODS AND CHALLENGES  

In  compliance  with  the  conditions  laid  down  in  Article  6,  the  Global  public  goods  and  challenges 
programme  aims  at  strengthening  cooperation,  exchange  of  knowledge  and  experience  and  partner 
countries' capacities. The programme may be drawn inter alia from the following areas of cooperation, 
ensuring a maximum synergy amongst them in light of their strong interconnection: 

Environment and climate change  

(a) 

(b) 

(c) 

(c) 

(d) 

to contribute to the implementation of the international environmental and climate dimension 
of the EU’s 2020 vision; 

working  upstream  in  assisting  developing  countries  to  achieve  the  MDGs  related  to  the 
sustainable use of natural resources and environmental sustainability; 

promoting  implementation  of  Union  initiatives and agreed commitments  at international and 
regional level and/or of a transboundary character particularly in the areas of climate change 
through  the  promotion  of  climate  resilient  strategies  especially  adaption  strategies  with 
biodiversity  co-benefits,  biodiversity  and  ecosystems  services,  forests  including  FLEGT, 
desertification,  integrated  water  resource  management,  natural  resource  management,  sound 
chemical and waste management, resource efficiency and the green economy; 

contributing  to  increasing  the  integration  and  mainstreaming  of  climate  change  and 
environmental  objectives  in  EU  aid  cooperation  through  support  for  methodological  and 
research  work  including  monitoring,  reporting  and  verification  mechanisms,  ecosystem 
mapping,  assessment  and  valuation,  enhancing  environmental  expertise  and  promoting 
innovative actions and policy coherence; 

strengthening  environmental  governance  and  supporting  international  policy  development, 
including  also  by  working  for  coherence  between  the  environmental  and  the  other  pillars  of 
international governance for sustainable development, by assisting regional and international 
environmental  monitoring  and  assessment,  and  by  promoting  effective  compliance  and 
enforcement measures for multilateral environmental agreements. 

Sustainable Energy 

(a) 

(b) 

promoting access to secure, affordable, clean and sustainable energy services as a key driver 
for  poverty  eradication  and  inclusive  growth,  with  a  special  emphasis  on  the  use  of  local 
energy sources; 

fostering greater use of renewable energy technologies, energy efficiency and promoting low 
emission development strategies; 

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(c) 

promoting energy security through e.g. diversification of sources and routes, considering price 
volatility  issues,  emission  reduction  potential,  improving  markets  and  fostering  energy 
interconnections and trade. 

Human development 

(a) 

Growth, jobs and private sector engagement 

Promoting  actions  aiming  at  creating  more  and  better  jobs,  in  areas  such  as  developing  the 
competitiveness and resilience of local MSMEs and their integration into the global economy, 
assisting developing countries to integrate into the multilateral trading system, developing the 
private  sector  and  improving  the  business  environment,  supporting  the  definition  and 
implementation  of  industrial  innovation  and  technology  policies  and  of  trade  policies  and 
agreements,  supporting  regional  integration  efforts,  promoting  investment  relations  between 
the  EU  and  partner  countries  and  regions  and  leveraging  private  and  public  investment  and 
cooperation through innovative financial instruments. Promoting the green economy, resource 
efficiency  and  sustainable  consumption  and  production  processes.  Promoting  the  use  of 
electronic communications as a tool to support growth across all sectors in order to bridge the 
digital  divide,  to  achieve  an  adequate  policy  and  regulatory  framework  in  this  area  and 
promoting the development of necessary infrastructure and the use of services and applications 
based on ICT. 

(b) 

Employment, skills, social protection and social inclusion: 

(i)  Supporting  high  levels  of  productive  and  decent  employment  notably  with  support  for 
sound  employment  policies  and  strategies,  vocational  training  for  employability  relevant  to 
labour market needs and perspectives, working conditions including in the informal economy, 
promotion of decent work, including fight against child labour, and social dialogue as well as 
facilitation of labour mobility while respecting migrants' rights; 

(ii) strengthening social cohesion in particular with the setting-up/strengthening of sustainable 
social protection systems including related fiscal reform; 

(iii)  strengthening  social  inclusion  with  cooperation  on  equitable  access  to  basic  services, 
employment  for  all,  empowerment  and  respect  of  rights  of  specific  groups,  notably  youth, 
persons  with  disabilities,  women  and  minority  groups  to  let  all  population  participate  and 
benefit from wealth creation and cultural diversity. 

(c) 

Gender equality and women empowerment:  

(i)  Supporting  country  level  programmes  to  promote  women's  economic  and  social 
empowerment and political participation;  

(ii) supporting national, regional and global initiatives to promote the integration of this issue 
in the aid effectiveness agenda.  

(d) 

Health 

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(i) Improving the health and well-being of people in developing countries through increasing 
access  to,  and  equitable  provision  of,  good  quality essential public health  services and more 
specifically: 

(ii) supporting and shaping the policy agenda of global initiatives of direct significant benefit 
to  partner  countries,  considering  result  orientation,  aid  effectiveness  and  effects  on  health 
systems, including supporting partner countries to better engage with these initiatives; 

(iii)  supporting  specific  initiatives  especially  at  regional  and  global  level,  which  strengthen 
health  systems  and  help  countries  develop  and  implement  sound,  evidence-based  national 
health policies, and in priority areas (e.g., maternal health and sexual and reproductive health 
and  rights,  access  to  family  planning;  global  public  goods  and  response  to  global  health 
threats). 

(e) 

Education, knowledge and skills: 

(i)  Supporting  the  achievement  of  internationally  agreed  goals  in  education  through  global 
initiatives and partnerships, with special emphasis on promoting knowledge, skills and values 
for sustainable and inclusive development; 

(ii)  promoting  exchange  of  experience,  good  practice  and  innovation,  based  on  a  balanced 
approach to the development of education systems; 

(iii) improving equal access and quality of education, including for vulnerable groups, women 
and girls, and countries furthest from achieving global targets. 

Food security and sustainable agriculture 

The  programme  will  strengthen  cooperation,  exchange  of  knowledge  and  experience  and  partner 
countries'  capacities  on  the  four  pillars  of  food  security:  food  availability  (production),  access 
(including  markets,  safety  nets  and  gender  awareness),  utilisation  (nutrition  interventions  in  socially 
aware  ways)  and  stability,  while  prioritising  four  dimensions:  smallholder  agriculture,  governance, 
regional integration and assistance mechanisms for vulnerable populations.  

(a) 

(b) 

(c) 

Promoting  the  development  of  sustainable  smallholder  agriculture  through  ecosystem-based, 
low  carbon  and  climate-resilient  secure  access  to  technology  (including  information  and 
communication 
rural 
technologies),  and 
development  schemes,  productive 
land  and  natural  resource 
management, protection of genetic diversity, in an enabling economic environment; 

through  extension  and 
investment  measures, 

technical  services, 

supporting environmentally and socially aware policy making and governance of the relevant 
sectors,  the  role  of  the  public  and  non-public  actors  in  its  regulation  and  the  use  of  public 
goods, its organisational capacity, professional organisations and institutions; 

strengthening food and nutrition security through adequate policies, including the protection of 
biodiversity  and  ecosystem  services,  climate  adaption  policies,  information  systems,  crisis 
prevention and management, and nutrition strategies directed to vulnerable populations; 

(d) 

fostering safe and sustainable practices throughout the food and feed supply chain. 

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Migration and Asylum 

(a) 

(b) 

(c) 

(d) 

Promoting migration governance at all levels; 

ensuring better management of migratory flows in all their dimensions; 

maximising the development impact of the increased regional and global mobility of people, 
while promoting and protecting the rights of migrants, through support to the formulation and 
implementation  of  sound  regional  and  national  migration  and  asylum  policies  and  through 
integration of the migration dimension into other regional and national policies;  

improving a common understanding of the migration and development nexus, including social 
and  economic  consequences  of  government  policies  be  they  in  migration/asylum  or  in  other 
sectors. 

B. PROGRAMME ON CIVIL SOCIETY ORGANISATIONS AND LOCAL AUTHORITIES 

In  line  with  the  reaffirmed  support  of  the  EU  to  democracy,  human  rights  and  good  governance,  the 
Programme  on  civil  society  organisations  and  local  authorities  in  development  will  strengthen 
cooperation, exchange of knowledge and experience and capacities  of  civil  society  organisations and 
local authorities in partner countries in support of internationally agreed development goals.  

In compliance with the conditions laid down in Article 6, the programme shall contribute to: 

(a) 

(b) 

(c) 

an  inclusive  and  empowered  society  in  partner  countries  through  strengthened  civil  society 
organisations and local authorities and basic services delivered to populations in need; 

increased  level  of  awareness  of  the  European  citizens  regarding  development  issues  and 
mobilising active public support in the Union, potential candidate and candidate countries for 
poverty reduction and sustainable development strategies in partner countries; 

increased  capacity  of  European  and  Southern  civil  society  and  local  authority  networks  to 
ensure a substantive and continued policy dialogue in the field of development. 

Activities supported by this programme will encompass: 

(a) 

(b) 

interventions  in  partner  countries  which  support  vulnerable  and  marginalised  groups  in  least 
developed countries by providing basic services delivered through civil society organisations 
and local authorities; 

capacity  development  of  the  targeted  actors  complementary  to  support  granted  in  the 
framework of the national programme, actions aiming at: 

(i)  strengthen  the  capacity  of  civil  society  organisations  to  participate  effectively  in  the 
development process; 

(ii)  facilitate  better  interaction  between  civil  society  organisations,  the  State  and  other 
development actors in the context of development;  

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(c) 

(d) 

(iii)  strengthen  the  capacity  of  local  authorities  to  participate  effectively  in  the  development 
process acknowledging their particular role and specificities; 

raising public awareness of development issues and promoting formal and informal education 
for  development  in  the  Union,  in  candidate  and  potential  candidate  countries,  to  anchor 
development policy in European societies, to mobilise greater public support for action against 
poverty and for more equitable relations between developed and developing countries, to raise 
awareness of the issues and difficulties facing developing countries and their peoples, and to 
promote the social dimension of globalisation; 

coordination,  capacity  development  and  institutional  strengthening  of  civil  society  and  local 
authority  networks,  within  their  organisations  and  between  different  types  of  stakeholders 
active  in  the  European  public  debate  on  development  as  well  as  coordination,  capacity 
institutional  strengthening  of  Southern  networks  of  civil  society 
development  and 
organisations and local authorities and umbrella organisations. 

Civil society organisations are non-State, non-profit making actors operating on an independent and 
accountable  basis  which  include:  non  governmental  organisations,  organisations  representing 
indigenous  peoples,  organisations  representing  national  and/or  ethnic  minorities,  local  traders' 
associations  and  citizens'  groups,  cooperatives,  employers  associations  and  trade  unions  (social 
partners),  organisations  representing  economic  and  social  interests,  organisations  fighting  corruption 
and  fraud  and  promoting  good  governance,  civil  rights  organisations  and  organisations  combating 
discrimination, local organisations (including networks) involved in decentralised regional cooperation 
and  integration,  consumer  organisations,  women's  and  youth  organisations,  environmental,  teaching, 
cultural,  research  and  scientific  organisations,  universities,  churches  and  religious  associations  and 
communities,  the  media  and  any  non  governmental  associations  and  independent  foundations, 
including independent political foundations, likely to contribute to the implementation of the objectives 
of this Regulation. 

Local  authorities  encompass  a  large  variety  of  sub-national  levels  and  branches  of  government,  i.e. 
municipalities, communities, districts, counties, provinces, regions etc. 

*** 

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ANNEX VI 

AREAS OF ACTIVITY UNDER THE PAN-AFRICAN PROGRAMME 

The Pan-African programme shall support the objectives and general principles of the Joint Africa-EU 
Strategy, in particular:  

(a) 

(b) 

(c) 

provide  support  for  the  objectives,  initiatives  and  activities  agreed  in  the  Joint  Africa-EU 
Strategy and its successive action plans, which cover inter alia the areas of: peace and security, 
democratic  governance  and  human  rights,  trade,  regional  integration  and  infrastructure 
(including  transport),  MDGs,  energy,  climate  change  and  environment,  migration,  mobility 
and employment, science, information society and space, as well as its cross-cutting issues. 

provide  support  to  other  relevant  initiatives  and  activities  agreed  through  the  working 
arrangements established under the Joint Strategy; 

apply  the  principle  of  'treating  Africa  as  one',  and  promote  coherence  between  regional  and 
continental levels, focusing in particular on activities of a cross-regional, continental or global 
nature, and support joint Africa-EU initiatives in the global arena. 

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INDICATIVE FINANCIAL ALLOCATION FOR THE PERIOD 2014-2020  

ANNEX VII 

(IN EUR MILLION) 

Geographic programmes 

13 991.5 € 

Global public goods and challenges thematic programme 

6 303.2 € 

Of which: 

– 

– 

– 

– 

– 

Environment and climate change 

Sustainable Energy 

Human development 

Food security and sustainable agriculture 

Migration and asylum 

31.8%28 

12.7% 

20.0% 

28.4% 

7.1% 

At least 50% of the funds, prior to the use of the markers based on OECD methodology (Rio markers), 
will serve for climate action and environment-related objectives. 

Civil Society Organisations and Local Authorities thematic programme 

2 000 € 

Pan African programme 

1 000 € 

28 

In principle, funds would be evenly allocated between environment and climate change. 

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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

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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  establishing  a 
financing instrument for development cooperation 

1.2. 

Policy area(s) concerned in the ABM/ABB structure2930  

Title 19: External relations  

19 02: Cooperation with third countries in the area of migration and asylum  
19 09: Relations with Latin America  
19 10: Relations with Asia, Central Asia and Middle East (Iraq, Iran, Yemen) 

Title 21: Development and relations with African, Caribbean and Pacific (ACP) States  

21 02: Food security 
21 03: Non-State actors in development 
21 04: Environment and sustainable management of natural resources, including energy 
21 05: Human and social development 

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 action31  

(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  

The  present  Regulation  aims  at  fostering  sustainable  and  inclusive  development  in  partner 
countries  and  regions,  with  the  primary  aim  of  eradicating  poverty,  and  the  promotion  of 
democracy, the rule of law, good governance and respect for human rights, as foreseen in the 
TEU,  in  Latin  America,  Africa  and  Asia,  while  ensuring  consistence  with  the  Commission 
Communication  on  the  EU  development  policy  "Increasing  the  impact  of  EU  Development 
Policy: An Agenda for Change". 

29 
30 
31 

ABM: Activity-Based Management – ABB: Activity-Based Budgeting. 
DEVCO will request a modification of the Policy Areas in parallel for the 2014 budgetary exercise. 
As referred to in Article 49(6)(a) or (b) of the Financial Regulation. 

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1.4.2. 

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

This  Regulation  establishes  the  essential  elements  and  the  basis  for  EU  intervention.  The 
translation  of  the  objectives  of  the  Regulation  within  the  different  programmes  (geographic 
programmes,  global  public  goods  and  challenges  thematic  programme,  civil  society 
local  authorities  thematic  programme  and  the  Pan  African 
organisations  and 
programme)  into  specific  objectives  are  defined  through  multiannual  programming  and 
annual  action  programmes  detailing  the  activities  to  be  carried  out  by  the  EU,  including  the 
expected  results  and  impact  pursued  by  the  actions  in  question.  Specific  objectives  are 
therefore fixed at that moment, having in mind the particularities of the action in question. 

The  Millennium  Development  Goals,  or  the  internationally  agreed  poverty  alleviation  goals 
replacing them after 2015, will provide well-established performance indicators: 

No. 1: MDG1 – End poverty and hunger 

– 

– 

– 

Halve the proportion of people whose income is less than $1 a day 

Achieve full and productive employment and decent work for all, including women and 
young people 

Halve the proportion of people who suffer from hunger 

No. 2: MDG2 - Universal Education 

Ensure that children everywhere, boys and girls alike, will be able to complete a full course of 
primary schooling. 

No. 3: MDG3 – MDG3 - Gender equality 

Eliminate gender disparity in primary and secondary education, and in all levels of education. 

No. 4: MDG4 – Child health 

Reduce by two thirds the mortality rate of children under five. 

No. 5- MDG5 - Maternal health 

– 

– 

Reduce by three quarters the maternal mortality ratio 

Achieve, by 2015, universal access to reproductive health 

No. 6: MDG6 - Combat HIV/AIDs, malaria and other diseases 

– 

– 

– 

Halt and begin to reverse the spread of HIV/AIDS 

Achieve universal access to treatment for HIV/AIDS for all those who need it 

Halt and begin to reverse the incidence of malaria and other major diseases 

No. 7- MDG 7 - Environmental sustainability 

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– 

– 

– 

– 

Integrate 
programmes and reverse the loss of environmental resources 

the  principles  of  sustainable  development 

into  country  policies  and 

Reduce biodiversity loss, achieving a significant reduction in the rate of loss 

Halve the proportion of the population without sustainable access to safe drinking water 
and basic sanitation 

Achieve,  by  2020,  a  significant  improvement  in  the  lives  of  at  least  100  million  slum 
dwellers 

No. 8 - MDG 8 – Global partnership for development 

– 

– 

– 

– 

– 

Develop  further  an  open,  rule-based,  predictable,  non-discriminatory  trading  and 
financial system 

Address the special needs of least developed countries, landlocked countries and small 
island developing states 

Deal comprehensively with developing countries’ debt 

In  cooperation  with  pharmaceutical  companies,  provide  access  to  affordable,  essential 
drugs in developing countries 

In  cooperation  with  the  private  sector,  make  available  benefits  of  new  technologies, 
especially Information and Communications Technologies 

ABM/ABB activity(ies) concerned 

19 02 : Cooperation with third countries in the area of migration and asylum  

19 09 : Relations with Latin America  

19 10 : Relations with Asia, Central Asia and Middle East (Iraq, Iran, Yemen) 

21 02 : Food security 

21 03 : Non-State actors in development 

21 04 : Environment and sustainable management of natural resources, including energy 

21 05 : Human and social development 

1.4.3.  Expected result(s) and impact 

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

This Regulation establishes the essential elements and the basis for EU intervention. The exact 
actions are defined through multiannual programming and annual action programmes detailing 
the activities to be carried out by the EU, including the expected results and impact pursued by 
the  actions  in  question.  Specific  indicators  are  fixed  at  that  moment,  having  in  mind  the 
particularities of the action in question. 

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1.4.4. 

Indicators of results and impact 

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

This Regulation establishes the essential elements and the basis for EU intervention. The exact 
actions are defined through multiannual programming and annual action programmes detailing 
the activities to be carried out by the EU, including the expected results and impact pursued by 
the  actions  in  question.  Specific  indicators  are  fixed  at  that  moment,  having  in  mind  the 
particularities of the action in question. 

Internationally  agreed  targets  and  indicators  on  the  MDGs  and  climate  change  are  already 
known.  Clear  benchmarks,  monitoring  and  reporting  rules  for  all  relevant  EU  policy 
instruments  need  to  be  established.  The  disaggregation  of  indicators  will  be  important  in 
monitoring the achievement of equitable outcomes for the most vulnerable groups in society 
for social inclusion. 

1.5. 

Grounds for the proposal/initiative  

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

See Impact Assessment and Explanatory Memorandum. 

The EU remains committed to helping developing countries to reduce and ultimately eradicate 
poverty in partner countries and regions pursuant to the objectives of development cooperation 
provided for in the Treaties. 

1.5.2.  Added value of EU involvement 

The EU is in a uniquely neutral and impartial position to deliver on external action on behalf 
of and with Member States, giving enhanced credibility in the countries where it works. The 
EU alone has the critical mass to respond to global challenges, such as poverty reduction and 
climate change. Thanks to its large scale and the existing network of international agreements, 
it  can  deliver  our  help  to  the  poor  in  some  of  the  world's  most  remote  areas,  both 
implementing aid and coordinating. 

In  its  role  as  a  promoter  of  inclusiveness  and  multilateralism,  the  Union  can  do  more  than 
other international organisation.  

Acting as one, Union can have greater impact and more leverage in policy dialogue and donor 
cooperation.  

Working  with  the  EU  is  also  more  cost  effective,  with  lower  administrative  costs  than  the 
average. 

1.5.3.  Lessons learned from similar experiences in the past  

The  evaluations,  Court  of  Auditors  reports,  as  well  as  mid-term  reviews  of  the  geographic 
programmes, show that progress towards several MDGs in the developing DCI countries was 
achieved  with  DCI  support.  However,  pursuant  to  the  principle  of  ownership  it  is  for  the 

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beneficiary governments to adopt and implement the necessary reforms and policies that were 
the driving force of these achievements. 

The  new  implementation  modalities  in  the  DCI,  such  as  budget  support  and  sector-wide 
approach,  have  allowed  for  a  deeper  level  of  cooperation  with  partner  countries:  there  is  a 
clear link between the level of policy dialogue with beneficiary countries and the modality of 
delivering assistance. Also, the new implementing modalities have rendered possible a more 
efficient division of labour by allowing co-financing amongst donors. 

Thematic programmes provided the Commission additional flexibility in dealing with specific 
challenges and also provided a useful instrument to complement the geographic programmes.  

In a globalised environment, a mutual reinforcement of internal and external actions is needed. 
The starting point is that integration, and not duplication, must be the key word. The existing 
architecture  was  not  adequate  enough  to  allow  the  Commission  to  intervene  swiftly  on  a 
sufficient  scale  even  though  this  was  critical  to  ensuring  the  effectiveness  of  internal  EU 
policies.  

In  some  cases  the  thematic  programmes  were  not  sufficiently  flexible  to  respond  to  recent 
global crises (e.g. the food price crisis, avian flu) or to international engagements taken at the 
highest political level (e.g. biodiversity and climate change). The thematic envelope therefore 
needs  more  flexibility  in  order  to  allow  for  a  more  predictable  long-term  engagement  in 
response to global public goods and challenges, and to react to the various shocks affecting the 
poorest population.  

Development  cooperation  still  remains  too  fragmented  and  over-ambitious.  Furthermore, 
complementarity between geographic and thematic programmes should be strengthened. 

The specific needs of countries in crisis, post-crisis and fragile situations were not sufficiently 
taken  into  account  and  the  rigidity  of  the  decision-making  process  for  fund-allocation, 
programming and implementation made it difficult for the EU to swiftly respond to a rapidly 
evolving situation. 

The DCI had indicative allocations per region, without keeping any unallocated envelope, thus 
leaving limited possibility to mobilise resources to respond to unforeseen needs. 

Finally,  the  current  programming  and  implementation  process  foreseen  for  the  DCI  is  too 
complex, does not permit the alignment of the EU programming cycle to those of its partners, 
and also does not sufficiently facilitates joint programming with Member States. Also, there is 
no clear legal framework for using innovative instruments being used by other donors, such as 
blending and use of private-public partnerships. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

The revised instrument is an integral part of the overall architecture of external action financial 
instruments which will be organised around four main chapters: a policy-based chapter aiming 
primarily  at  cooperation  with  partner  countries  within  and  outside  the  budget;  working  on 
cross-cutting  priorities  and  values;  humanitarian  assistance  and  civil  protection;  and  crisis 
management. 

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Moreover  for  every  country,  development  cooperation  will  be  complementary  to  the  new 
“Partnership Instrument”. Interaction between the DCI, EDF and the ENPI will be particularly 
strong  under  the  DCI  thematic  envelope  for  civil  society/local  authorities  and  thematic 
envelope for global goods and challenges, since these envelopes will cover and/or complement 
actions  in  the  geographical  zones  covered  by  these  respective  instruments  in  the  field  of: 
support  to  civil  society  and  local  authorities,  climate  change,  energy,  food  security,  human 
development and migration. 

Interaction  with  the  Trade  policy,  in  particular  GSP/GSP  plus  and  Everything  But  Arms 
schemes,  but  also  trade  agreements  will  remain  particularly  important  with  Aid  for  Trade  / 
Trade Related Assistance actions funded under DCI, both at bilateral and regional level.  

In  a  globalised  environment  different  internal  EU  policies  (such  as  environment,  climate 
change, employment (including decent work), gender equality, energy, water, transport, justice 
and security, research, information society, immigration, fisheries) are increasingly becoming 
part of the EU's external action, and in line with the EU 2020 agenda and the Lisbon Treaty a 
mutual  reinforcement  of  internal  and  external  actions  is  needed.  The  starting  point  is  that 
integration,  and  not  duplication,  must  be  the  key  priority.  The  main  arguments  are:  i) 
coherence of our external action; ii) aid effectiveness, notably the commitment to reduce the 
number of actors and programmes; and iii) maximising synergies between policy objectives.  

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1.6. 

Duration and financial impact  

⌧ Proposal/initiative of limited duration  

–  (cid:133)  Proposal/initiative  

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

–  ⌧ Proposal/initiative of unlimited duration in effect from 01/01/2014 

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

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged32  

⌧ Centralised direct management by the Commission  

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

–  ⌧ executive agencies  

–  ⌧ bodies set up by the Communities33  

–  ⌧ national public-sector bodies/bodies with public-service mission  

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

(cid:133) Shared management with the Member States  

⌧ Decentralised management with third countries  

⌧ Joint management with international organisations (to be specified) 

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

Comments  

The  actions  to  be  financed  under  this  Regulation  will  be  implemented  under  direct  centralised 
management  by  the  Commission  from  Headquarters  and/or  through  the  devolved  Union  Delegations 
and  under  any  other  management  method  foreseen  by  the  Financial  Regulation  in  order  to  better 
achieve the objectives of the Regulation. 

32 

33 

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. 

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Joint  management  may  be  foreseen,  where  appropriate,  for  specific  actions  with  UN  agencies  and 
bodies,  European  or  international  financial  institutions  such  as  the  European  Investment  Bank,  the 
European  Bank  for  Reconstruction  and  Development,  the  World  Bank  or  the  African  Development 
Bank, and other international organisations active in the field of development. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

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 of a specific instrument. These evaluations are an important input to the formulation of 
policies and the design of instruments and projects. These evaluations 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 

Risk environment  

The  operational  environment  of  aid  under  this  instrument  is  characterised  by  the  following 
risks of not achieving the instrument's objectives, suboptimal financial management and/or of 
not complying with the applicable rules (legality and regularity errors): 

– 

– 

economic/political instability and/or natural disaster may lead to difficulties and delays 
in the design and implementation of interventions, particularly in fragile states;  

a  lack  of  institutional  and  administrative  capacity  in  partner  countries  may  lead  to 
difficulties and delays in the design and implementation of interventions;  

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– 

– 

– 

geographically  dispersed  projects  and  programmes  (covering  approximately  many 
states/territories/regions)  may  pose  logistical/resource  challenges  to  monitoring  - 
particularly any 'on-the-spot' follow-up of activities; 

diversity of potential partners / beneficiaries with their diverse internal control structures 
and capacities can fragment and therefore reduce the effectiveness and efficiency of the 
Commission's available resources to support and monitor implementation; 

poor quality and quantity of available data on the outcomes and impact of external aid / 
national  development  plan  implementation  in  partner  countries  may  hinder  the 
Commission's ability to report on and be accountable for results; 

Expected level of risk of non-compliance with applicable rules 

The  compliance  objective  for  the  instrument  is  to  maintain  the  historic  level  of  risk  of  non-
compliance  (error  rate)  for  EuropeAid  portfolio  which  is  a  residual  'net'  level  of  error  (on  a 
multi-annual  basis  after  all  planned  controls  and  corrections  have  been  executed  on  closed 
contracts) of less than 2%. This has traditionally implied an estimated error range of 2-5% in 
terms  of  an  annual  randomised  sample  of  transactions  undertaken  by  the  European  Court  of 
Auditors for the purposes of the annual Statement of Assurance (DAS). EuropeAidconsiders 
this to be the lowest risk of non compliance achievable in relation to its high risk environment 
and  taking  into  account  the  administrative  burden  and  necessary  cost  effectiveness  of 
compliance controls.  

2.2.2.  Control method(s) envisaged  

EuropeAid Internal Control architecture 

EuropeAid'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. 

Effectiveness and efficiency 

To ensure the effectiveness and efficiency of its operations (and to mitigate the high level of 
risk in its external aid 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, EuropeAid will continue to have a tailored aid 
management framework in operation under all its instruments which will include: 

– 

– 

– 

A devolved management of the majority of external aid by EU delegations in the field. 

Clear  and  formalised  lines  of  financial  accountability  (from  the  Delegated  Authorising 
officer  (Director  General))  by  means  of  a  subdelegation  from  the  Subdelegated 
Authorising Officer (Director) at HQ to the Head of Delegation; 

Regular  reporting  from  EU  Delegations  to  HQ  (External  Assistance  Management 
Reports) including an annual Statement of Assurance by the Head of Delegation; 

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– 

– 

– 

– 

– 

– 

– 

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 'verification' visits to 'devolved' delegations every 3 to 6 years; 

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. 

Financial Reporting and Accounting 

EuropeAid will continue to pursue the highest standards of accounting and financial reporting 
using  the  Commission's  accruals  based  accounting  system  (ABAC)  as  well  as  external  aid 
specific tools such as the Common Relex Information System (CRIS).  

In relation to compliance with the relevant legislative and procedural framework, compliance 
control methods are set out in section 2.3 (measures to prevent fraud and irregularities) 

2.3.  Measures to prevent fraud and irregularities 

Specify existing or envisaged prevention and protection measures. 

Given the high risk environment in which EuropeAid operates, its 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 EuropeAid's 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.  EuropeAid's  compliance  framework  is  made  up  inter  alia  of  the  following 
significant components: 

Preventative measures 

- Compulsory core training covering fraud issues for aid management staff and auditors; 

- Provision of guidance (including via internet) including the Practical Guide to Contracts, the 
EuropeAid Companion and the Financial Management Toolkit (for implementing partners); 

- Ex-ante assessment to ensure that appropriate anti-fraud measures to prevent and detect fraud 
in  the  management  of  EU  funds  are  in  place  in  the  authorities  managing  the  relevant  funds 
under under joint and decentralised management); 

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- Ex-ante screening of the anti-fraud mechanisms available in the partner country as part of the 
assessment  of  the  eligibility  criterion  of  public  finance  management  for  receiving  budget 
support (i.e. active commitment to fight fraud and corruption, adequate inspection authorities, 
sufficient judicial capacity and efficient response and sanction mechanisms); 

-  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.  

- The Commission implements since 14 October 2011 the first phase of the IATI standard for 
publishing  aid  information  transparency  before  the  next  High  Level  Forum  on  aid 
effectiveness  in  Busan  in  November  2011.  In  addition,  the  Commission  will  work  in 
cooperation with the EU Member States on a joint web-based IT application called TR-AID 
which  transforms  the  EU  aid  data  provided  through  the  IATI  and  other  sources  into  user-
friendly aid information. 

Detective and corrective measures 

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

- Retrospective checks (on a risk basis) and recoveries; 

-  Suspension  of  EU  funding  where  there  is  a  serious  fraud  case,  including  large  scale 
corruption,  until  the  authorities  have  taken  appropriate  action  with  a  view  to  correcting  and 
preventing such fraud in the future 

EuropeAid will further devise its anti-fraud strategy in line with the Commission's new anti-
fraud strategy (CAFS) adopted on 24 June 2011 in order to ensure inter alia that: 

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

-  EuropeAid's  fraud  risk  management  approach  is  geared  to  identify  fraud  risk  areas  and 
adequate responses; 

-  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 

For the EuropeAid portfolio as a whole, internal control / management costs total an estimated 
annual  average  of  €  658  million 
in  commitments  in  the  2014-2020  budget  planning.  This 
figure  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 DEVCO on its expenditure portfolio financed by the General 
Budget of the EU and the European Development Fund for the period 2014-2020.  

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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. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Heading of 
multiannual 
financial 
framework  Heading IV Global Europe 

Type of  
expenditure

Contribution  

DA/NDA 
(34) 

from 
EFTA35 
countries 

from 
candidate 
countries36 

from third 
countries 

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

19 

19 

19 

19 

19 

21 

21 

21 

21 

21 

19  01  04  Administrative  expenditure  of 
‘External relations’ policy area DCI 

DNA 

NO 

NO 

NO 

19 02: Cooperation with third countries in 
the area of migration and asylum  

19 09: Relations with Latin America  

19  10:  Relations  with  Asia,  Central  Asia 
and Middle East (Iraq, Iran, Yemen) 

19 11: Policy strategy and coordination for 
the ‘External relations’ policy area 

21  01  04  Administrative  expenditure  of 
‘Development  and  relations  with  ACP 
States’ policy area  

21 02: Food security 

21 03: Non-State actors in development 

21  04:  Environment  and  sustainable 
resources, 
management 
including energy 

natural 

of 

DA 

DA 

DA 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

DA 

NO 

NO 

NO 

DNA 

NO 

NO 

NO 

DA 

DA 

NO 

NO 

NO 

NO 

NO 

NO 

DA 

NO 

NO 

NO 

21 05: Human and social development 

DA 

NO 

NO 

NO 

•  New budget lines requested 37 

In order of multiannual financial framework headings and budget lines. 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

NO 

Heading of 

Budget line 

Type of 

Contribution  

34 
35 
36 
37 

DA= Differentiated appropriations / DNA= Non-Differentiated Appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 
To be filled in at a later stage 

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multiannual 
financial 
framework 

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

expenditure

[XX.YY.YY.YY] 

from 
EFTA 
countries 

From 
candidate 
countries 

from third 
countries 

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

YES/N
O 

YES/N
O 

YES/N
O 

YES/NO 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework: 4 

Number 

EUR million (to 3 decimal places) 

DG: DEVCO 

(cid:121) Operational appropriations  

Year 
N38 
2014 

Year 
N+1 
2015 

Year 
N+2 
2016 

Year 
N+3 
2017 

Year 
N+4 
2018 

Year 
N+5 
2019 

Year 
N+6 
2020 

TOTAL 

Development  Cooperation  Instrument  (19.02, 
19.09,  19.10,  21.02,  21.03,  21.04,  21.05, 
21.06) 

Commitments 

Payments 

(1) 

(2) 

2.606,8
15 

2.788,1
25 

411,383  579,190 

2.980,0
45 
1.206,2
18 

3.182,9
77 
1.765,7
60 

3.390,1
85 
2.383,4
91 

3.614,7
82 
3.257,6
77 

3.846,2
74 
12.805,
385 

an 

Appropriations 
of 
from the envelop of specific programs39  
Number  of  budget  line  19.0104  01  and 
21.010401 

administrative 

TOTAL appropriations 
for DG DEVCO 

nature 

financed 

(3) 

Commitments 

=1+3 

Payments 

=2+3 

109,885  114,975  120,254  125,723  135,115  136,918  142,726 
3.989,0
3.308,7
2.716,7
00 
00 
00 
12.948,
1.891,4
111 
83 

3.100,3
00 
1.326,4
72 

3.525,3
00 
2.518,6
06 

3.751,7
00 
3.394,5
95 

521,268  694,165 

2.903,1
00 

22.409,105 

22.409,105 

885,595 

23.294,700 

23.294,700 

(cid:121) TOTAL operational appropriations  

Commitments 

(4) 

2.606,8
15 

2.788,1
25 

2.980,0
45 

3.182,9
77 

3.390,1
85 

3.614,7
82 

3.846,2
74 

22.409,105 

38 
39 

EN 

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

64 

E

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelop of specific programs  

Payments 

(5) 

(6) 

411,383  579,190 

1.206,2
18 

1.765,7
60 

2.383,4
91 

3.257,6
77 

12.805,
385 

109,885  114,975  120,254  125,723  135,115  136,918  142,726 

TOTAL appropriations  
under HEADING <4> 
of the multiannual financial framework 

Commitments 

=4+ 6 

2.716,7
00 

2.903,1
00 

Payments 

=5+ 6 

521,268  694,165 

3.100,3
00 
1.326,4
72 

3.308,7
00 
1.891,4
83 

3.525,3
00 
2.518,6
06 

3.751,7
00 
3.394,5
95 

3.989,0
00 
12.948,
111 

22.409,105 

885,595 

23.294,700 

23.294,700 

EN 

65 

E

 
  
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

DG: DEVCO 

(cid:121) Human resources  
(cid:121) Other administrative expenditure  

EUR million (to 3 decimal places) 

Year 
N 2014 

Year 
N+1 
2015 

Year 
N+2 
2016 

Year 
N+3 
2017 

Year 
N+4 
2018 

Year 
N+5 
2019 

Year 
N+6 
2020 

85,041 

84,182 

83,329 

82,480 

82,480 

82,480 

82,480 

3,909 

3,818 

3,781 

3,755 

3,755 

3,755 

3,755 

TOTAL 

582,473 

26,528 

TOTAL DG DEVCO 

Appropriations  

88,950 

88,000 

87,110 

86,235 

86,235 

86,235 

86,235 

609,001 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

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

Commitments 

Payments 

88,950 

88,000 

87,110 

86,235 

86,235 

86,235 

86,235 

609,001 

EUR million (to 3 decimal places) 

Year 
N 2014 

Year 
N+1 
2015 

2.805,6
50 

2.991,1
00 

610,218  782,165 

Year 
N+2 
2016 

3.187,4
10 

1.413,5
82 

Year 
N+3 
2017 

3.394,9
35 

1.977,7
18 

Year 
N+4 
2018 

3.611,5
35 

2.604,8
41 

Year 
N+5 
2019 

3.837,9
35 

3.480,8
30 

Year 
N+6 
2020 

4.075,2
35 

13.034,
346 

TOTAL 

23.903,701 

23.903,701 

EN 

66 

E

 
  
 
 
 
 
 
 
 
 
 
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: 

Indicate 
objectives and 
outputs  

(cid:216) 

Geographic Programmes40… 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

Year N+4 to N+7 

TOTAL 

t
s
o
C

t
s
o
C

t
s
o
C

t
s
o
C

t
s
o
C

t
s
o
C

Total  
cost 

. 

Sub-total  

1 631,732 

1 743,689 

1 862,134 

1 987,305 

2 117,402 

2 253,384 

2 395,938 

13 991,50 

Global public goods and challenges 
thematic programme… 

Sub-total 

735,099 

785,536 

838,895 

895,285 

953,894 

1 015,154 

1 079,375 

6 303,20 

Civil society organisations and local 
authorities thematic programme… 

Sub-total 

233,246 

249,250 

266,181 

284,073 

302,670 

322,108 

342,485 

2 000,00 

Pan African programme 

Sub-total 

116,623 

124,625 

133,090 

142,037 

150,335 

161,054 

171,242 

1 000,00 

TOTAL COST 

2 716,700 

2 903,100 

3 100,300 

3 308,700 

3 525,300 

3 751,700 

3 989,000 

23 294.,70 

EN 

40 

As described in Section 1.4.2. "Specific objective(s) – Only the different programmes of the Regulation are included in the table…" 

67 

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  

–  ⌧ The  proposal/initiative  requires  the  use  of  administrative  appropriations,  as 

explained below: 

EUR million (to 3 decimal places) 

Year 
N 41 2014 

Year 
N+1 2015 

Year 
N+2 2016 

Year 
N+3 2107 

Year 
N+4 2018 

Year 
N+5 2019 

Year 
N+6 2020 

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 542 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

85,041 

84,182 

83,329 

82,480 

82,480 

82,480 

82,480 

582,473 

3,909 

3,818 

3,781 

3,755 

3,755 

3,755 

3,755 

26,528 

88,950 

88,000 

87,110 

86,235 

86,235 

86,235 

86,235 

609,001 

97,417 

101,668 

106,059 

110,589 

115,154 

119,788 

124,527 

775,203 

12,467 

13,307 

14,195 

15,134 

19,961 

17,129 

18,199 

110,392 

109,885 

114,975 

120,254 

125,723 

135,115 

136,918 

142,726 

885,595 

TOTAL 

198,835

202,976 

207,364

211,958

221,350

223,152 

228,961

1.494,59
6

41 
42 

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

EN 

68 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.   Estimated requirements of human resources  

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

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

below: 

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

Year 
N 

Year 
N+1 

Year 
N+2 

Year N+3 

Year 
N+4 
2018 

Year
N+5 
2019 

Year 
N+6 
2020 

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

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

357,2 

353,6 

350,1 

XX 01 01 02 (Delegations) 

157,8 

156,2 

154,6 

346,6 

153,0 

346,6 

346,6 

346,6 

153,0 

153,0 

153,0 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)43 

24,1 

23,9 

23,6 

23,4 

23,4 

23,4 

23,4 

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

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

XX 01 04 yy 44 

- at 
Headquarters45 

- in delegations  

985,7 

1032,7 

1081,2 

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

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

Other budget lines (specify) 

146,3 

143,5 

140,6 

137,9 

1131,2 

135,2 

132,5 

129,9 

1181,7 

1232,9 

1285,3 

TOTAL 

1.671,1  1.709,8  1.750,1 

1.792,1 

1.839,8  1.888,4  1.938,1 

XX 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 

43 

44 
45 

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

EN 

69 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
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 

External personnel 

EN 

70 

   EN 

 
 
 
3.2.4.  Compatibility with the multiannual financial framework 2014-2020  

–  (cid:58)  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 framework46. 

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

3.2.5.  Third-party contributions  

–  (cid:58) The proposal/initiative does not provide for co-financing by third parties  

–  (cid:133) 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  

46 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

71 

   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/initiative47 

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. 

47 

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 

72 

   EN