Proposal for a COUNCIL DECISION on relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other
Date: 2011-12-07
Institutions: European Commission
Subjects: Denmark, European cooperation, Greenland, association agreement (EU), economic development, fishing agreement, overseas countries and territories, sustainable development

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 846 final 

2011/0410 (CNS) 

Proposal for a 

COUNCIL DECISION 

on relations between the European Union on the one hand, and Greenland and the 
Kingdom of Denmark on the other 

{SEC(2011) 1484 final} 
{SEC(2011) 1485 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

Prior  to  1982  Greenland  was  considered  as  a  part  of  the  European  Union  (EU)  through 
Denmark, allowing for EU vessels to fish in Greenlandic waters. Following 1982, Greenland 
withdrew from the EU, and became associated as an Overseas Country and Territory (OCT) 
through the Greenland Treaty. The treaty emphasised the need to maintain the close relation 
between  the  EU  and  Greenland,  notably  the  development  needs  of  Greenland  and  fishing 
rights of the EU. 

A fisheries agreement was signed on 13 March 1984. Following the Mid-Term Review of the 
Fourth Fisheries Protocol, the European Council (2003) concluded that an arrangement should 
take  into  account  the  importance  of  fisheries  and  the  structural  development  problems  in 
Greenland.  The  Joint  Declaration  between  the  EU,  Greenland  and  Denmark,  defined  the 
common objectives of a new partnership and was the political basis for the Council Decision 
2006/526/EC, which defined the framework for cooperation between the parties for the period 
2007-2013. The partnership defined in Council Decision 2006/526/EC is concluding on the 31 
December 2013. 

Without  prejudice  to  the  existing  EU/Greenland  Fisheries  Partnership  Agreement,  the 
increased geostrategic importance of Greenland, and the importance of the Arctic region for 
the EU and its climate induced increased accessibility, as well as the structural weaknesses of 
Greenland, justifies a new instrument in order to respond to these developments.  

The  partnership  between  the  European  Union,  Greenland  and  Denmark  shall  facilitate 
consultations  and  policy  dialogue  on  the  objectives  and  areas  of  cooperation  established 
through  this  Decision.  Particularly  the  partnership  shall  define  the  framework  for  policy 
dialogue  on  issues  of  common  interest  for  either  partner,  providing  the  basis  for  broad 
cooperation and dialogue in areas such as: 

• 

• 

Global  issues  such  as  energy,  climate  change  and  environment,  natural  resources, 
including  raw  materials  and  excluding  fisheries  products,  maritime  transport, 
research and innovation. 

Arctic issues, within areas of interest to the European Union. 

The specific objectives of the partnership are:  

• 

• 

To  assist  Greenland  in  addressing  its  major  challenges  in  particular  the  sustainable 
diversification  of  the  economy,  the  need  to  increase  the  skills  of  its  labour  force, 
including scientists, and the need to improve the Greenlandic information systems in 
the field of Information and Communication Technologies. 

To  reinforce  the  capacity  of  the  Greenlandic  administration  to  better  formulate  and 
implement national policies in particular in new areas of mutual interest as identified 
in the PDSD referred to in Article 4(2). 

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The areas of cooperation of the partnership would be: 

(a) 

(b) 

(c) 

(d) 

(e) 

(f) 

education and training, tourism and culture; 

natural resources1, including raw materials; 

energy, climate, environment and biodiversity 

international cooperation on Arctic issues, such as Arctic Council, maritime transport 
and exploitation of natural resources; 

The social sector; mobility of workforce; social protection systems; food safety and 
food security issues; 

Research and innovation in areas such as energy, climate change, disaster resilience, 
natural resources, including raw materials, and sustainable use of living resources. 

The new partnership will also attempt to respond to the need of the EU and of Greenland to 
mutually  address  challenges  emerging  from  global  issues  such  as  climate  change  and 
environment, maritime transport, research and development. Furthermore, the partnership will 
contribute  to  addressing  the  issue  of  structural  weaknesses  of  the  Greenlandic  economy  by 
providing  the  appropriate  framework  for  the  formulation  and  implementation  of  policies  by 
the competent authorities that would lead to the diversification of the economy. 

2. 

RESULTS OF CONSULTATIONS WITH THE INTERESTED PARTIES AND 
IMPACT ASSESSMENTS 

The Commission held a public consultation on future funding for EU external action between 
26  November  2010  and  31  January  2011.  A  majority  of  the  respondents  confirms  that  EU 
financial  intervention  provides  a  substantial  added  value  in  the  main  policy  areas  supported 
through EU financial instruments for external action2. 

Over two thirds of respondents believe that EU interests are sufficiently taken into account in 
its  external  action,  and  that  the  latter  should  be  based  to  a  larger  extent  on  EU  values  and 
principles, and on development objectives of the partner countries. Increased flexibility of the 
geographic limits of EU instruments is supported by a significant majority of respondents as a 
way to respond to interregional challenges. 

Several assessments and evaluations have been made about the EU's cooperation with OCTs, 
and  stakeholders  were  furthermore  consulted.  In  that  context  the  European  Commission 
organised  a  public  consultation  that  ran  from  July  to  October  20083,  which  included  a 

1 

2 

3 

Natural resources do not include fisheries products, that are subject to another arrangement between the 
EU and Greenland. 
i.e.  peace  and  security,  poverty  reduction,  humanitarian  aid,  investing  in  stability  and  growth  in 
enlargement and neighbourhood countries, tackling global challenges, promoting EU and international 
standards and values, and supporting growth and competitiveness abroad 
http://ec.europa.eu/development/how/consultation/index.cfm?action=viewcons&id=3841 

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stakeholder conference in Brussels in October 2008.4 A mid-term review of the EU/Greenland 
partnership  2007-2013  (under  finalisation)  was  also  undertaken  with  positive  findings  as  to 
the results of the current instrument.  

In the context of the Impact Assessment undertaken for the purpose of this new partnership, 
three options were considered. 

(1) 

(2) 

(3) 

The option of no partnership with Greenland; 

The option of maintaining the status quo; 

The option of a revised partnership that takes account of the geostrategic importance 
of  Greenland  in  the  context  of  global  issues,  such  as  global  warming,  natural 
resources, including raw materials, and the emerging international awareness towards 
Greenland,  while  allowing  for  the  EU  to  fully  project  its  interests  and  policies 
abroad. 

The present proposal builds on the third option, described above. 

3. 

LEGAL ELEMENTS OF THE PROPOSAL 

Article  198-204  of  the  Treaty  on  the  Functioning  of  the  European  Union  (TFEU)  apply  to 
Greenland, subject to the specific provisions set out in the Protocol on special arrangements 
for Greenland annexed to the TFEU (Protocol No 34). 

In  a  globalised  environment,  different  internal  EU  policies  (climate  change,  environment, 
Arctic  policy,  energy,  migration,  raw  materials,  innovation  etc.)  are  increasingly  becoming 
part  of  the  EU's  external  action  and  in  line  with  the  Communication  from  the  Commission 
'Europe  2020  -  A  strategy  for  smart,  sustainable  and  inclusive  growth'  and  the  TFEU,  a 
mutual reinforcement of internal and external actions is needed. 

Global  issues  such  as  the  increasing  impact  of  climate  change  on  human  activity  and  the 
environment,  maritime  transport,  natural  resources,  including  raw  materials,  as  well  as 
research  and  innovation,  has  increased  the  geostrategic  importance  of  Greenland.  Moreover 
EU  Arctic  concerns,  including  the  impact  of  climate  change,  would  be  better  addressed 
through a new and enhanced partnership with one of the territories, nearly the size of Europe 
but sparsely populated, located in the Arctic Region. 

This proposal meets the requirements of Article 5 of the TFEU to the extent that the principles 
of subsidiarity and proportionality are met and call for action at EU level. 

In  spite  of  the  fact  that  there  is  a  Danish  annual  support  to  Greenland  which  amounts  to 
approximately  EUR  450  million  Denmark  does  not  support  any  singular  strategy,  but  the 
Greenlandic  system  in  it's'  entirety.  The  EU  support  will  be  given  to  national  strategies, 
initiated,  adopted  and  implemented  by  the  Government  of  Greenland,  and  would  permit 
broader dialogue of strategic interest to both parties. 

4 

The  results  of  the  public  consultation  were  summarised  in  the  Commission  Communication  of  6 
November 2009. The latter was discussed at the 8th and 9th OCT/EU Forums which were respectively 
held in March 2010 and March 2011. 

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Concerning the financing decision the aid modality would primarily be budget support, which 
will imply a regular dialogue about the focal sector(s) chosen in the context of the strategies 
agreed upon for the period. 

4. 

BUDGETARY IMPLICATION  

Within the Commission Communication on the Future Financial framework for the European 
Union,  under  Heading  4  ('Global  Europe')  the  line  "others"  includes  an  amount  of  €217.8 
million for the post 2013 partnership with Greenland. 

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2011/0410 (CNS) 

Proposal for a 

COUNCIL DECISION 

on relations between the European Union on the one hand, and Greenland and the 
Kingdom of Denmark on the other 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  for  the  Functioning  of  the  European  Union,  and  in  particular 
Article 203 thereof, 

Having regard to the proposal from the European Commission, 

Having regard to the opinion of the European Parliament5 

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

Acting in accordance with a special legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

The  Treaty  amending,  with  regard  to  Greenland,  the  Treaties  establishing  the 
European  Communities6  (The  Greenland  Treaty),  which  entered  into  force  on  1 
February  1985,  provides  that  the  Treaty  for  the  Functioning  of  the  European  Union 
shall no longer apply to Greenland, but that Greenland, being a part of a Member State 
shall  be  associated  to  the  European  Union  as  one  of  the  overseas  countries  and 
territories (OCTs).  

In  its  preamble,  the  Greenland  Treaty  states  that  arrangements  should  be  introduced 
which  permit  close  and  lasting  links  between  the  Union  and  Greenland  to  be 
maintained  and  mutual  interests,  notably  the  development  needs  of  Greenland,  to  be 
taken into account and that the arrangements applicable to OCTs set out in Part Four 
of  the  Treaty  on  the  Functioning  of  the  European  Union  provide  an  appropriate 
framework for these relations. 

In  accordance  with  Article  198  of  the  Treaty  on  the  Functioning  of  the  European 
Union, the purpose of association is to promote the economic and social development 
of the OCTs and to establish close economic relations between them and the European 
Union  as  a  whole.  Pursuant  to  Article  204  of  the  Treaty  on  the  Functioning  of  the 
European Union, the provisions of Articles 198 to 203 apply to Greenland, subject to 

5 
6 

OJ C , , p. 
OJ L 29, 1.2.1985, p. 1. (2) OJ L 314, 30.11.2001, p. 1. 

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the specific provisions set out in the Protocol on special arrangements for Greenland 
annexed to the Treaty on the Functioning of the European Union (Protocol No 34). 

The provisions for the application of the principles set out in Articles 198 to 202 of the 
Treaty  on  the  Functioning  of  the  European  Union  are  set  out  in  Council  Decision 
2001/822/EC  of  27  November  20017,  amended  by  Decision  2007/249/EC,  on  the 
association  of  the  overseas  countries  and  territories  with  the  European  Community 
(Overseas  Association  Decision),  which  continues  to  apply  to  Greenland  under  the 
conditions laid down in that Decision. 

The  Council  of  the  European  Union,  recognising  the  geostrategic  importance  of 
Greenland to the European Union, in its conclusions of 24 February 2003 on the Mid-
term Review of the Fourth Fisheries protocol between the European Community, the 
Government  of  Denmark  and  the  Home  Rule  Government  of  Greenland,  and 
recognising  the  spirit  of  cooperation  resulting  from  the  Union's  decision  to  grant  the 
status of overseas territory to Greenland agreed that there was a need to broaden and 
strengthen  future  relations  between  the  European  Union  and  Greenland  taking  into 
account the importance of fisheries and the need for structural and sectoral orientated 
reforms  in  Greenland.  The  Council  further  expressed  its  commitment  to  base  the 
future  relationship  of  the  European  Union  with  Greenland  after  2006  on  a 
comprehensive  partnership  for  sustainable  development  which  would  include  a 
specific  fisheries  agreement,  negotiated  according  to  the  general  rules  and  principles 
for such agreements. 

The Agreement on fisheries between the European Economic Community, on the one 
hand, and the Government of Denmark and the local Government of Greenland, on the 
other concluded by Council Decision 2006/1006/EC8, recalls the spirit of cooperation 
resulting  from  the  Community's  decision  to  grant  the  status  of  overseas  territory  to 
Greenland.  

The  2006  Joint  Declaration  between  the  European  Union,  the  Government  of 
Greenland  and  the  Government  of  Denmark,  recalls  the  close  historical,  political, 
economic  and  cultural  connections  between  the  European  Union  and  Greenland  and 
emphasises the need to strengthen further their partnership and cooperation. 

The  EU  needs  to  build  comprehensive  partnerships  with  new  actors  on  the 
international scene, in order to promote a stable and inclusive international order, the 
pursuit of common global public goods, and the defence of core EU interests as well 
as increased knowledge of the EU in these countries. 

An  EU-Greenland  partnership  should  allow  for  the  continuation  of  strong  relations 
between  the  partners  and  respond  to  the  global  challenges,  allowing  for  the 
development of a proactive agenda and the pursuit of mutual interests in line with the 
objectives of the EU2020 strategy and the European Union's Arctic policy, thus adding 
credibility  and  consistency  with  the  EU2020  strategy  by  linking  the  promotion  of 

The Decision currently in force is Decision 2001/822/EC of the Council of 27 November 2001 on the association of the overseas 
countries  and  territories  with  the  European  Community,  OJ  L  314,  30.11.2001,  p.  1.  Decision  as  amended  by  Decision 
2007/249/EC (OJ L 109, 26.4.2007, p. 33). 
OJ L 411, 30.12.2006, p. 27. 

(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

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internal  policies,  such  as  the  Communication  on  Raw  Materials,  to  cooperation 
activities with Greenland. 

(10)  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  or  worldwide  promotion  of  democracy,  good 
governance,  human  rights  and  rule  law,  its  long-term  and  predictable  engagement  in 
development assistance and its role in coordinating with its Member States. 

(11)  The  EU-Greenland  partnership  should  provide  for  a  framework  permitting  regular 
discussions  on  matters  of  interest  for  the  Union  or  Greenland,  such  as  global  issues, 
where an exchange of views, and a possible convergence of ideas and opinions, could 
be  beneficial  for  both  parties.  The  increasing  impact  of  climate  change  on  human 
activity  and  the  environment,  maritime  transport,  natural  resources,  including  raw 
materials,  as  well  as  research  and  innovation,  calls  for  dialogue  and  enhanced 
cooperation. 

(12)  The financial  support from  the Union, allocated through  the new partnership,  should 
bring a European perspective to the development of Greenland and will contribute to 
the strengthening of close and long lasting ties with that territory, while strengthening 
the position of Greenland as an advanced outpost of the Union, based on the common 
values and history which links the two partners.  

(13)  The Union's financial support for the period 2014-2020, should be focused on one, or a 
maximum of two areas of cooperation, allowing for the partnership, to maximise the 
impact and further allow for economies of scale, synergy effects, greater effectiveness 
and visibility for the Union's action.  

(14)  The cooperation should ensure that resource flows are accorded on a predictable and 
regular  basis  and  are  flexible  and  tailored  to  the  situation  in  Greenland.  To  this  end 
budget support will be used wherever feasible and appropriate. 

(15)  The  financial  rules  applicable  to  the  annual  budget  of  the  Union  are  laid  down  in  a 
Regulation of the European Parliament and of the Council, which should be referred to 
hereafter as "the Financial Regulation", such reference being made in all instances to 
the  latest  version  of  that  Regulation  being  in  force,  and  including  the  corresponding 
rules adopted by the Commission for implementing the Financial Regulation 

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

the  applicable  agreements  concluded  with 

(17)  The  programming  documents  and 

the 
implementation of this Decision should be adopted in accordance with Regulation No 
182/2011  of  16  February  2011  of  the  European  Parliament  and  the  Council  laying 
down  the  rules  and  general  principles  concerning  the  mechanisms  of  control  by 

financing  measures  necessary 

for 

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Member  States  of  the  Commission’s  exercise  of  implementing  powers9.  Taking  into 
account  the  nature  of  those  implementing  acts,  in  particular  their  policy  orientation 
nature  or  their  financial  implications,  the  examiniation  procedure  should  in  principle 
be  used  for  their  adoption,  except  for  technical  implementing  measures  of  a  small 
financial scale. 

(18)  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 adopting specific rules 
supplementing this Decision. 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. 

HAS ADOPTED THIS DECISION:  

Part One: 

GENERAL PROVISIONS ON THE RELATIONS BETWEEN THE 

EUROPEAN UNION AND GREENLAND 

Article 1 

Subject matter and scope 

1. 

2. 

1. 

2. 

The  partnership  between  the  European  Union,  Greenland  and  Denmark  aims  to 
preserve  the  close  and  lasting  links  between  the  partners,  while  supporting  the 
sustainable development of the Greenlandic society.  

It  acknowledges  the  geostrategic  position  of  Greenland  in  the  Arctic  Region,  the 
issues of exploration and exploitation of natural resources, including raw  materials, 
and ensures enhanced cooperation and policy dialogue on these issues. 

Article 2 

General principles of the partnership 

The  partnership  between  the  European  Union,  Greenland  and  Denmark  shall 
facilitate consultations and policy dialogue on the objectives and areas of cooperation 
established through this Decision. 

The partnership shall define in particular the framework for policy dialogue on issues 
of common interest for either partner, providing the basis for broad cooperation and 
dialogue in areas such as: 

9 

OJ L 055, 28.02.2011 P. 013 - 018 

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– 

Global  issues  such  as  energy,  climate  change  and  environment,  natural 
research  and 
resources, 
innovation. 

raw  materials,  maritime 

transport, 

including 

3. 

4. 

– 

Arctic issues, within areas of interest to the European Union. 

In  implementing  this  Decision,  coherence  shall  be  ensured  with  other  areas  of  EU 
external action as well as other relevant EU policies. To this end, measures financed 
under this Decision shall be programmed on the basis of EU cooperation policies set 
out  in  instruments  such  as  agreements,  declarations  and  action  plans,  and  in 
accordance with the cooperation strategies adopted pursuant to Article 4. 

Cooperation  activities  shall  be  decided  upon  in  close  consultation  between  the 
European  Commission,  the  Government  of  Greenland  and  the  Government  of 
Denmark.  Such  consultations  shall  be  conducted  in  full  compliance  with  the 
respective  institutional,  legal  and  financial  powers  of  each  of  the  partners.  To  this 
end  the  implementation  of  this  Decision  shall  be  managed  by  the  European 
Commission  and  the  Government  of  Greenland  in  accordance  with  the  roles  and 
responsibilities  of  each  of  the  partners  as  established  in  the  financing  agreements 
referred to in Article 8.4.  

Article 3 

Objectives and main areas of cooperation 

1. 

The specific objectives of the partnership are: 

(a)  To  assist  Greenland  in  addressing  its  major  challenges  in  particular  the 
sustainable diversification of the economy, the need to increase the skills of its 
labour  force,  including  scientists,  and  the  need  to  improve  the  Greenlandic 
the  field  of  Information  and  Communication 
information  systems 
Technologies.  The  achievement  of  these  objectives  shall  be  measured  by  the 
percentage  of  trade  balance  in  GDP,  the  percentage  of  the  fisheries  sector  in 
total exports, and the results of education statistical indicators. 

in 

(b)  To reinforce the capacity of the Greenlandic administration to better formulate 
and implement national policies in particular in new areas of mutual interest as 
identified  in  the  PDSD  referred  to  in  Article  4(2).  The  achievement  of  this 
objective shall be measured by the number of administrative staff completing 
training  and  the  percentage  of  civil  servants  that  are  (long-term)  residents  in 
Greenland. 

2. 

The main areas of cooperation are: 

(a) 

education and training, tourism and culture; 

(b)  natural resources, including raw materials; 

(c) 

energy, climate, environment and biodiversity 

(d) 

international cooperation on Arctic issues; 

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(e)  The social sector; mobility of workforce; social protection systems; food safety 

and food security issues; 

(f)  Research  and  innovation  in  areas  such  as  energy,  climate  change,  disaster 
resilience,  natural  resources,  including  raw  materials,  and  sustainable  use  of 
living resources. 

Part Two: 

PROGRAMMING AND IMPLEMENTATION  

Article 4 

Programming 

1. 

2. 

3. 

4. 

Within the framework of the partnership, the Government of Greenland shall assume 
the responsibility for the formulation and adoption of sector policies in the areas of 
cooperation as defined in Article 3(2). It shall also provide adequate follow-up. 

On  this  basis,  the Government of Greenland shall prepare and submit an indicative 
Programming Document for the Sustainable Development of Greenland (hereinafter 
referred to as the PDSD). The PDSD will aim at providing a coherent framework for 
cooperation  between  the  Union  and  Greenland,  consistent  with  the  overall  purpose 
and scope, objectives, principles and policies of the European Union. 

The  preparation  and  implementation  of  the  PDSD  shall  apply  principles  of  aid 
effectiveness:  national  ownership,  partnership,  coordination,  harmonisation, 
alignment to national systems, mutual accountability and results orientation. 

The PDSD shall be approved in accordance with the examination procedure provided 
for  in  Article  11(2).  This  procedure  shall  also  apply  to  substantial  reviews  which 
have  the  effect  of  modifying  significantly  the  strategy  or  its  programming.  It  shall 
not  apply  to  non-substantial  modifications  to  the  PDSD  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  the  document.  In  such  case,  adjustments  shall  be  communicated  to  the 
European Parliament and the Council within one month. 

Article 5 

Implementation rules 

The European Commission shall adopt the detailed implementation rules supplementing this 
Decision  within  three  months  after  this  Decision  takes  effect,  in  accordance  with  the 
delegation  of  power  and  the  procedure  laid  down  in  respectively  Articles  9  and  10  of  this 
Decision. 

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Article 6 

Scope of financing 

Within  the  framework  of  the  sector  policies  established  by  the  Government  of  Greenland, 
financial support may be given to the following activities: 

(a) 

(b) 

Reforms and projects that are in line with the PDSD, as referred to in Article 4(2); 

Institutional  development,  capacity  building  and  integration  of  environmental  and 
climate change aspects; 

(c) 

Technical cooperation programmes. 

Article 7 

Financial provisions 

The Union's financial assistance shall be provided mainly through budget support. 

Article 8 

Protecting the Union's financial interests 

1. 

2. 

The  Commission  shall  take  appropriate  measures  ensuring  that,  when  actions 
financed under this Decision are implemented, the financial interests of the European 
Union  are  protected  by  the  application  of  preventive  measures  against  fraud, 
corruption  and  any  other  illegal  activities,  by  effective  checks  and,  if  irregularities 
are detected, by the recovery of the amounts wrongly paid and, where appropriate, by 
effective, proportional and deterrent penalties. 

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

The European Anti-fraud Office (OLAF) shall be authorised to carry out on-the-spot 
checks  and  inspections  on  economic  operators  concerned  directly  or  indirectly  by 
such funding in accordance with the procedures laid down in Regulation (Euratom, 
EC) No 2185/96 with a view to establishing that there has been fraud, corruption or 
any  other  illegal  activity  in  connection  with  a  grant  agreement  or  decision  or  a 
contract concerning Union funding. 

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

3. 

Greenland shall conduct regular checks to ensure that the actions to be financed from 
the  European  Union  budget  have  been  implemented  correctly.  In  addition  to  its 

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annual reporting on achievements under the sector policies, Greenland shall provide 
an  annual  statement  assuring  legality  and  regularity.  It  shall  take  appropriate 
measures to prevent irregularities and fraud and if necessary shall bring prosecutions 
to recover funds wrongly paid. 

4. 

The  detailed  obligations  of  the  Government  of  Greenland  in  respect  of  the 
management  of  European  Union  funds  shall  be  set  out  in  financing  agreements 
concluded  with  the  Commission  for  the  purpose  of  implementing  this  Decision.  In 
particular, the financing agreements shall establish the sector indicators - setting the 
conditions  for  payments  which  must  be  met,  and  the  verification  methods  for 
reporting  progress  on  sector  indicators  and  for  ensuring  compliance  with  those 
conditions. 

Part Three: 

FINAL PROVISIONS 

Article 9 

Delegation of powers to the Commission 

The European Commission shall be empowered to adopt a delegated act in accordance with 
Article 10 for establishing the implementation rules for this Decision.  

Article 10 

Exercise of the delegation 

1. 

2. 

3. 

4. 

The delegation of powers referred to in Article 9 shall be conferred for the period of 
validity of this Decision. 

The delegation of powers may be revoked at any time 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 to the Council. 

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

Article 11 

Committee procedure 

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1. 

2. 

3. 

4. 

1. 

2. 

3. 

4. 

5. 

The  European  Commission  shall  be  assisted  by  the  Greenland  Committee, 
hereinafter  referred  to  as  'the  Committee'.  That  committee  shall  be  a  committee 
within the meaning of Regulation (EU) No 182/2011. 

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

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

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

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

Article 12 

Evaluations and reports 

By  31  December  2017,  the  European  Commission,  the  Government  of  Greenland 
and  the  Government  of  Denmark  shall  undertake  a  mid-term  review  of  the 
partnership and its' impact on Greenland as a whole. The Commission shall associate 
all  relevant  stakeholders,  including  non-State  actors  and  local  authorities,  in  the 
evaluation phase of the Union assistance provided under this Decision. 

No  later  than  mid-2018,  a  report  shall  be  established  by  the  Commission  on  the 
achievement  of  the  objectives  and  the  European  added  value  of  this  Decision,  by 
means of results and impact indicators on the efficiency of the  use  of  resources, in 
view  of  a  decision  on  the  renewal,  modification  or  suspension  of  the  types  of 
measures  financed  under  this  Decision.  The  report  shall  additionally  address  the 
scope  for  simplification,  the  internal  and  external  coherence  of  the  cooperation 
established by this Decision, the continued relevance of all objectives, as well as the 
contribution  of  the  measures  to  the  Union  priorities  of  smart,  sustainable  and 
inclusive growth. It shall take into account any findings and conclusions on the long-
term impact of the former Decision. 

The report shall be submitted to the European Parliament and the Council including, 
if appropriate, a legislative proposal introducing the necessary modifications to this 
Decision. 

The values on 1 January 2014 of the indicators referred to in Article 2 shall be used 
as a basis for assessing the extent to which the objectives of this Decision have been 
achieved. 

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

line  with 

the 

in 

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6. 

The  longer-term  impacts  and  the  sustainability  of  effects  of  this  Decision  will  be 
evaluated after its duration in accordance with the rules and procedures applicable at 
that time. 

Article 13 

Financial reference amount 

The  indicative  amount  for  the  implementation  of  this  Decision  for  the  period  from  2014  to 
2020 shall be EUR 217,8 million. 

Article 14 

Publication 

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

Done at Brussels, 

For the Council 
The President 

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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 

2.4  Estimate of the costs and benefits of the controls 

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  

The EU/Greenland Partnership 

1.2. 

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

21 07: Development cooperation actions and ad-hoc programmes  

1.3. 

Nature of the proposal/initiative  

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

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

⌧ 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  EU/Greenland  partnership  aims  to  preserve  the  close  and  lasting  links  between  the 
partners, while supporting the sustainable development of the Greenlandic society. 

1.4.2. 

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

Objective  No.1:  To  assist  Greenland  in  addressing  its  major  challenges  in  particular  the 
sustainable  diversification  of  the  economy,  the  need  to  increase  the  skills  of  its  labour 
force, including scientists, and the need to improve the Greenlandic information systems in 
the field of Information and Communication Technologies. 

Objective  No.2:  To  reinforce  the  capacity  of  the  Greenlandic  administration  to  better 
formulate and implement national policies in particular in new areas of mutual interest as 
identified in the PDSD referred to in Article 4(2). 

ABM/ABB activity(ies) concerned 

21 07 Development cooperation actions and ad-hoc programmes, (see point 1.2). 

10 
11 

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

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1.4.3.  Expected result(s) and impact 

Results regarding objective No.1: To assist Greenland in addressing its major challenges in 
particular the sustainable diversification of the economy, the need to increase the skills of 
its labour force, including scientists, and the need to improve the Greenlandic information 
systems in the field of Information and Communication Technologies. 

– 

– 

– 

Increased number of internet providers and internet connections. 

Better  educated  and  more  flexible  labour  force,  with  the  required  skills  for  a 
diversified economy. 

Better trade balance with a decrease of the traditional sector in the total exports of the 
Country, and an increased weight of the natural resources, including raw materials in 
the total exports. 

– 

An economy less dependent on EU and Danish support 

Results  regarding  objective  No.  2:  To  reinforce  the  capacity  of  the  Greenlandic 
administration  to  better  formulate  and  implement  national  policies  in  particular  in  new 
areas of mutual interest as identified in the PDSD referred to in Article 4(2). 

– 

– 

– 

Increased  ability  of  the  Greenlandic  administration  to  better  formulate  and 
implement national policies, including new areas and global issues. 

A Greenlandic administration receiving regular training on relevant areas. 

A reduced turnover of staff in the Greenlandic administration. 

Regarding  dialogue  and  consultation  with  the  relevant  stakeholders  and  beneficiaries, 
e.g. teachers, students, trade unions and employers' organisations, it can be underlined that 
they  are  consulted  on  a  regular  basis  by  the  Government  of  Greenland  in  the  context  of 
events  organised  for  that  purpose.  Moreover  the  European  Commission  tends  to  attend 
these  events  to  take  stock  of  the  views  of  direct  and  indirect  beneficiaries  of  the  EU 
support and to express its own views on the issue under discussion. 

1.4.4. 

Indicators of results and impact  

Indicators regarding objective No.1: To assist Greenland in addressing its major challenges 
in particular the sustainable diversification of the economy, the need to increase the skills 
of  its  labour  force,  including  scientists,  and  the  need  to  improve  the  Greenlandic 
information systems in the field of Information and Communication Technologies. 

– 

– 

– 

– 

Number of internet providers 

Number of internet connections 

Expenditure on education as a percentage of total public expenditure 

Completion of education, total 

–  % of trade balance in GDP 

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–  % of fisheries in total exports 

–  % fiscal deficit without grants in GDP 

–  % of natural resources, including raw materials, in the total exports. 

Indicators  regarding  objective  No.2:  To  reinforce  the  capacity  of  the  Greenlandic 
administration  to  better  formulate  and  implement  national  policies  in  particular  in  new 
areas of mutual interest as identified in the PDSD referred to in Article 4(2). 

– 

– 

– 

– 

Number of administrative personnel completing training. 

Number of new policies defined/reviewed. 

Number  of  apprenticeship  places  in  European  industries  (either  in  Greenland  or 
outside). 

Number of public officials on training in European public administrations 

–  % of civil servants that are (long-term) residents in Greenland.  

1.5. 

Grounds for the proposal/initiative  

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

The  target  population  of  the  future  EU/Greenland  partnership  is  the  Greenlandic 
population  in  general.  Should  the  focal  sector  remain  Education  and  vocational  training, 
there  will  be  specific  focus  on  the  target  group  of  elementary  school  graduates  and 
unskilled workers. 

1.5.2.  Added value of EU involvement 

The  proposed  EU-Greenland  partnership  will  allow  the  continuation  of  strong  relations 
between  the  partners.  It  should  respond  to  the  global  challenges  and  allow  for  the 
development  of  a  proactive  agenda  and  the  pursuit  of  mutual  interests  in  line  with  the 
objectives of the EU2020 strategy and the EU's Arctic policy. 

It  would  add  credibility  and  seek  consistency  to  the  EU2020  strategy  by  linking  the 
promotion  of  internal  policies,  such  as  the  Communication  on  Raw  Materials,  to 
cooperation activities with Greenland. 

As  the  EU  is  the  only  donor  besides  the  Kingdom  of  Denmark,  the  support  allocated 
through the new partnership will bring an EU perspective to the development of Greenland 
and will contribute to the strengthening of close and long lasting ties with that territory. 

Greenlanders enjoy the citizenship of the Member State to which they are constitutionally 
linked  (Denmark),  and  subsequently  hold  EU  citizenship,  making  for  the  corresponding 
parts of the Treaty to apply to them. The EU support strengthens the position of Greenland 
as an advanced outpost of the EU, based on the common values and history which links the 
two partners. 

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1.5.3.  Lessons learned from similar experiences in the past 

The  EU-Greenland  partnership  established  a  process  which  over  time  has  improved 
namely through the development of monitoring tools to better assess progress achieved in 
the  focal  areas  of  the  cooperation  and  through  a  policy  dialogue  that  takes  place  on  a 
biannual basis. 

Furthermore,  as  foreseen  in  the  Council  Decision,  a  Mid-Term  Review  (MTR)  of  the 
strategy chosen (education and vocational training) is under finalisation on the basis of an 
external evaluation which took place in 2010. The evaluation confirmed the choice of focal 
sector and recommended that it should remain for the period beyond 2013. Furthermore it 
recommends  that  policy  areas  such  as  social  sector,  research  and  innovation,  natural 
resources, including raw materials, and environment should be duly taken into account in 
the future negotiations. 

The  Government  of  Greenland  undertakes  regular  consultations  with  the  relevant 
stakeholders  that  include  teachers,  students,  private  sector  and  trade  unions.  The 
discussions  aim  at  fine  tuning  the  strategy  and  identify  the  views  of  the  stakeholders  in 
regards 
these 
consultations/discussions. 

the  priority  areas.  The  Commission 

takes  active  part 

in 

to 

1.5.4.  Coherence and possible synergy with other relevant instruments 

In a globalised environment, internal EU policies (such as climate change, Arctic policy, 
environment,  biodiversity,  natural  resources,  including  raw  materials,  energy,  migration 
etc.) are increasingly becoming part of the EU's external action. 

The  new  partnership  will  continue  to  provide  the  framework  for  dialogue  between  the 
European Union and Greenland in areas of specific importance for the two parties, such as 
health and consumer protection, natural resources, including raw materials, Arctic issues, 
energy, research and innovation, industry, etc. 

Under the new partnership it is proposed to pursue a comprehensive cooperation between 
EU and Greenland on the basis of Greenland’s status as an OCT and in conformity with the 
provisions of the post 2013 Overseas Association Decision. 

The  Veterinary  Agreement  between  the  EU and  Greenland  (2011/408/EU)  is  intended  to 
mutually  recognise  production  standards  and  food  safety  measures  for  products  from 
fisheries live bivalve mollusc etc. Such an arrangement will increase trade and reduce the 
costs of production, inspection and certification. 

Moreover  under  the  new  partnership,  the  cooperation  with  Greenland  should  be  aligned 
with the priorities of the Europe 2020 Strategy, as well as those of the EU Arctic Policy12. 

On  offshore  safety  in  connection  with  particularly  oil  exploration,  the  protection  of  the 
environment through international cooperation and capacity building in non EU neighbour 
countries feature strongly in internal EU policies. 

12 

Commission Communication on 'The European Union and the Arctic region', COM (2008) 763. The second 
communication of the Commission and the Council on the EU Arctic Policy is currently under preparation. 

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The fisheries sector  is not covered under the scope of the present Council Decision. It is 
the  object  of  a  specific  partnership  agreement  between  the  EU  and  the  Government  of 
Greenland.  The  outcome  and  the  implications  of  the  present  and  future  EU/Greenland 
Fisheries  Partnership  Agreement  will  be  duly  looked  into  in  the  implementation  of  the 
present Council Decision.  

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1.6. 

Duration and financial impact  

⌧ Proposal/initiative of limited duration  

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

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

(cid:133) Proposal/initiative of unlimited duration 

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

–  followed by full-scale operation. 

1.7.  Management mode(s) envisaged13  

⌧ Centralised direct management by the Commission  

(cid:133) Centralised indirect management with the delegation of implementation tasks to: 

–  (cid:133)  executive agencies  

–  (cid:133)  bodies set up by the Communities14  

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

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

(cid:133) Shared management with the Member States  

(cid:133) Decentralised management with third countries  

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

13 

14 

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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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

In the context of the existing partnership, a set of indicators have been agreed between the 
parties  that  will  permit  the  follow  up  of  the  overall  developments  in  the  Greenlandic 
economy  and  society.  In  context  of  the  new  enhanced  EU/Greenland  partnership  the 
indicative  list  of  indicators  that  might  be  complemented  by  additional  indicators  which 
proves  necessary  to  better  account  for  the  new  areas  of  cooperation.  This  matter  will  be 
further discussed with the Greenlandic authorities. 

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

In  the  case  of  the  EU  support  to  Greenland  assistance  is  given  to  the  development  of 
indicators  that  permit  the  follow  up  of  the  partnership  and  the  policies  that  are  being 
supported as far as the Greenland Education Programme is concerned. A special focus is 
put  on  output  and  outcome  indicators  and  it  is  envisaged  to  expand  the  use  of  impact 
indicators in the future partnership. The disbursement of variable budget support tranches 
relies on a set of indicators with definition of the targets to be achieved within a given year. 

As in the past, a midterm review of both the new Programming Document and the Council 
Decision will be carried out in close cooperation between the relevant stakeholders. 

Task  Managers  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  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. 

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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;  

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; 

a lack of administrative credits may lead to insufficient resources to properly manage 
the instrument. 

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 DEVCO 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).  DEVCO 
considers 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  

DEVCO Internal Control architecture 

DEVCO'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. 

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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,  DEVCO  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; 

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 

DEVCO 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  2.2  (measures  to  prevent  fraud  and 
irregularities). 

2.3.  Measures to prevent fraud and irregularities  

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 

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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 joint and decentralised management); 

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); 

EN 

26 

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– 

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  commitme nts  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  planne d  for  the  overall  (operational  +  administrative) 
commitments by EuropeAid on its expenditure portfolio financed by the General Budget of the EU 
and the European Development Fund for the period 2014-2020. 

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

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

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

EN 

27 

   EN 

 
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

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

•  Existing expenditure budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

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

Diff./non-
diff 
(15) 

from 
EFTA16 
countries 

from 
candidate 
countries17 

from third 
countries 

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

Number 21 01: Administrative expenditure of 
the  'Development  and  relations  with  ACP 
States' Policy Area 

21  01  04  20  Administrative  support  expenditures 
for  the  ‘Development  and  relations  with  ACP 
States’ policy area 

Number  21  07:  Development  cooperation 
actions and ad-hoc programmes 

21 07 02 Cooperation with Greenland 

non-diff 

NO 

NO 

NO 

NO 

Diff 

NO 

NO 

NO 

NO 

•  New budget lines requested 18 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

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

Heading of 
multiannual 
financial 
framework 

IV 

Heading of 
multiannual 
financial 
framework 

Number 21 01: Administrative expenditure of 
the  'Development  and  relations  with  ACP 
States' Policy Area 

IV 

21  01  04  20  Administrative  support  expenditures 

non-diff 

NO 

NO 

NO 

NO 

15 
16 
17 
18 

Diff. = Differentiated appropriations / Non-Diff. = Non-differentiated appropriations 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidate countries from the Western Balkans. 
This concerns a change in the title of the heading to include the mentioning of Greenland. 

EN 

28 

   EN 

 
 
 
 
                                                 
for the cooperation with Greenland 

EN 

29 

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3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial 
framework:  

Number  Heading IV - Global Europe 

EUR million (to 3 decimal places) 

DG: DEVCO 

(cid:121) Operational appropriations  

Cooperation with Greenland (21.07.02) 

Number of budget line 

of 
Appropriations 
 from the envelop of specific programs20  
Number of budget line 21.01 04 20 

an 

administrative 

Year 
N19 
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 

Year 
N+7 
2021 

TOTAL 

29,061  
23,260  

29,656  
29,537  

30,251  
30,132  

30,846  
30,727  

31,415  
31,254  

32,037  
31,961  

32,731  
32,536  

6,590 

215,996  
215,996  

Commitments 

Payments 

Commitments 

Payments 

(1) 

(2) 

(1a) 

(2a) 

nature 

financed 

(3) 

0,239  

0,244  

0,249  

0,254  

0,285  

0,263  

0,269  

29,300  

29,900  

30,500  

31,100  

31,700  

32,300  

33,000  

1,804  

217,800  

TOTAL appropriations 
for DG DEVCO 

Commitments 

Payments 

=1+1a 
+3 

=2+2a 

+3 

23,499  

29,781  

30,381  

30,981  

31,539  

32,224  

32,805  

6,590  

217,800  

19 
20 

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. 

30 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

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

(4) 

(5) 

(6) 

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

Commitments 

=4+ 6 

Payments 

=5+ 6 

29,061  

29,656  

30,251  

30,846  

31,415  

32,037  

32,731  

215,996  

23,260  

29,537  

30,132  

30,727  

31,254  

31,961  

32,536  

6,590 

215,996  

0,239  

0,244  

0,249  

0,254  

0,285  

0,263  

0,269  

29,300  

29,900  

30,500  

31,100  

31,700  

32,300  

33,000  

1,804  

217,800  

23,499  

29,781  

30,381  

30,981  

31,539  

32,224  

32,805  

6,590 

217,800  

If more than one heading is affected by the proposal / initiative: 

(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

(cid:121)  TOTAL  appropriations  of  an  administrative  nature 
financed from the envelope for specific programmes  

(4) 

(5) 

(6) 

TOTAL appropriations  
under HEADINGS 1 to 4 
of the multiannual financial framework 
(Reference amount) 

Commitments 

=4+ 6 

Payments 

=5+ 6 

EN 

31 

EN 

 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

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 

TOTAL 

EUR million (to 3 decimal places) 

DG: DEVCO 

(cid:121) Human resources  

(cid:121) Other administrative expenditure  

0,487 

0,482 

0,477 

0,472 

0,472 

0,472 

0,472 

0,174 

0,153 

0,153 

0,152 

0,152 

0,152 

0,152 

TOTAL DG DEVCO 

Appropriations  

0,661 

0,634 

0,630 

0,625 

0,625 

0,625 

0,625 

3,335 

1,089 

4,424 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

0,661 

0,634 

0,630 

0,625 

0,625 

0,625 

0,625 

4,424 

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

Commitments 

Payments 

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 

Year 
N+7 
2021 

TOTAL 

29,961 

30,534 

31,130 

31,725 

32,325 

32,925 

33,625 

222,224 

24,160 

30,415 

31,011 

31,606 

32,164 

32,849 

33,430 

6,590 

222,224 

EN 

32 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

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

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

–  The type of financing envisaged for the EU support to Greenland, will mainly be sectoral budget support. A set of indicators presented 

under section 1.4.4. will be used in principle on a annual basis for the purpose of the monitoring of this Council Decision. 

–  Following  the  agreement  between  the  parties  on  the  focal  sectors  for  cooperation,  the  indicators  mentioned  under  1.4.4.  can  be  further 
supplemented with others that will be discussed in course of the programming for the period 2014-2020. Below an indicative division of 
the financial resources per objective is provided. 

Commitment appropriations per year and objective in EUR million (to 3 decimal places) 

Year 
N 

2014 

Year 
N+1 

2015 

Year 
N+2 

2016 

Year 
N+3 

2017 

Year N+4 

Year N+5 

Year N+6 

2018 

2019 

2020 

TOTAL 

Indicate 
objectives  

(cid:216) 

particular 

OBJECTIVE  No  1:  To  assist 
Greenland  in  addressing  its  major 
the 
challenges 
in 
the 
sustainable  diversification  of 
economy,  the  need  to  increase  the 
skills  of  its  labour  force,  including 
scientists,  and  the  need  to  improve 
the 
information 
systems  in  the  field  of  Information 
and Communication Technologies. 

Greenlandic 

EN 

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EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sub-total for specific objective N°1 

26,06
1 

26,65
6 

27,25
1 

27,84
6 

28,41
5 

29,03
7 

29,73
1 

194,9
96 

of 

OBJECTIVE No 2: To reinforce the 
capacity 
the  Greenlandic 
administration  to  better  formulate 
and  implement  national  policies  in 
particular  in  new  areas  of  mutual 
interest  as  identified  in  the  PDSD 
referred to in Article 4(2). 

Sub-total for specific objective N°2 

3,000 

3,000 

3,000 

3,000 

3,000 

3,000 

3,000 

TOTAL COST 

29,06
1 

29,65
6 

30,25
1 

30,84
6 

31,41
5 

32,03
7 

32,73
1 

21,00
0 

215,9
96 

EN 

34 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

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

require 

the  use  of  administrative 

appropriations  

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

explained below: 

EUR million (to 3 decimal places) 

Year 
N 21 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources  

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual 
financial framework  

Outside HEADING 522 
of the multiannual 
financial framework  

Human resources  

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

0,487 

0,482 

0,477 

0,472 

0,472 

0,472 

0,472 

3,335 

0,174 

0,153 

0,153 

0,152 

0,152 

0,152 

0,152 

1,089 

0,661 

0,634 

0,630 

0,625 

0,625 

0,625 

0,625 

4,424 

0,239 

0,244 

0,249 

0,254 

0,285 

0,263 

0,269 

1,804 

0,239 

0,244 

0,249 

0,254 

0,285 

0,263 

0,269 

1,804 

TOTAL 

0,901 

0,879 

0,879 

0,879 

0,910 

0,888 

0,894 

6,229

21 
22 

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 

35 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
EN 

36 

   EN 

 
 
3.2.3.2.  Estimated requirements of human resources  

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

–  (cid:133)  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 

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

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

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

3,7 

3,7 

3,6 

3,6 

3,6 

3,6 

3,6 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

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

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 24 

- at Headquarters25 

- in delegations  

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

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

Other budget lines (specify) 

TOTAL 

0,2 

0,2 

0,2 

0,2 

0,2 

0,2 

0,2 

3,9 

3,9 

3,9 

3,8 

3,8 

3,8 

3,8 

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 
with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints. 

23 

24 
25 

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 

37 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description of tasks to be carried out: 

Officials and temporary agents 

External personnel 

EN 

38 

   EN 

 
 
 
3.2.4.  Compatibility with the current multiannual financial framework  

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

–  (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 framework26. 

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

3.2.5.  Third-party contributions  

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

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

Appropriations in EUR million (to 3 decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
cofinanced  

26 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

39 

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3.3. 

Estimated impact on revenue  

–  (cid:133)  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  

Appropriations 
available for the 
ongoing budget 
year 

Budget revenue line: 

Article …………. 

EUR million (to 3 decimal places) 

Impact of the proposal/initiative27 

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. 

27 

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. 

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