Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL establishing a European Neighbourhood Instrument
Date: 2011-12-07
Institutions: European Commission
Subjects: EU programme, European neighbourhood policy, co-financing, cross-border cooperation, democracy, equal treatment, fundamental rights, human rights

EUROPEAN COMMISSION 

Brussels, 7.12.2011 
COM(2011) 839 final 

2011/0405 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a European Neighbourhood Instrument 

{SEC(2011) 1466 final} 
{SEC(2011) 1467 final} 

 
 
  
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

General context 

Article 8 of the Treaty on European Union (TEU) provides for the European Union (EU) to 
develop  a  special  relationship  with  neighbouring  countries,  with  the  aim  of  establishing  an 
area  of  prosperity  and  good  neighbourliness  at  the  EU’s  borders.  The  European 
Neighbourhood Policy (ENP) was developed in 2004 and covers 16 partners to the East and 
South  of  the  EU’s  borders,  namely  Algeria,  Armenia,  Azerbaijan,  Belarus,  Egypt,  Georgia, 
Israel, Jordan, Lebanon, Libya, the Republic of Moldova, Morocco, the occupied Palestinian 
territory, Syria, Tunisia and Ukraine. Under the ENP the EU offers its neighbours a privileged 
relationship, building upon a mutual commitment to values and principles such as democracy 
and  human  rights,  the  rule  of  law,  good  governance,  market  economy  principles  and 
sustainable  development,  including  climate  action.  The  policy  also  provides  for  political 
association  and  deeper  economic  integration,  increased  mobility  and  enhanced  people-to-
people contacts. The ENP is funded by a dedicated Instrument, the European Neighbourhood 
and  Partnership  Instrument  (ENPI),  which  covers  the  16  above-mentioned  partner  countries 
and Russia. 

Reasons for and objectives of the proposal 

A number of major developments have taken place since the launch of the ENP and the ENPI.  

Changes to the EU’s relationship with its neighbours and developments since the ENP was set 
up have been analysed and assessed as part of the ENP Strategic Review. As a result, a new 
ENP  vision  has  been  developed  as  outlined  in  the  Joint  Communication  of  the  High 
Representative  of  the  EU  for  Foreign  Affairs  and  Security  Policy  and  the  European 
Commission ’A new response to a changing Neighbourhood’, adopted on 25 May 2011 and 
the Council conclusions adopted on 20 June 2011. The new approach calls notably for greater 
support  to  partners  committed  to  building  democratic  societies  and  undertaking  reforms,  in 
line  with  the  “more  for  more”  and  "mutual  accountability"  principles,  and  provides  the 
strategic policy framework for the EU relations with the neighbours. 

Although the ENPI has been widely recognized as a successful Instrument to accompany the 
EU’s  policy  towards  its  neighbours,  the  ENP  policy  review  and  other  assessments,  lessons 
learned and public consultations have all identified a number of issues to tackle in the future 
by adapting the Instrument to make the EU’s response even more effective, in particular: 

• 

Application of the “more for more” principle: This principle is the key aspect of the 
renewed Neighbourhood Policy. It provides for a much higher level of differentiation 
among  partners,  in  line  with  their  commitment  to  the  jointly  agreed  values  and 
objectives,  and  notably  to  the  partnership  with  EU  focussed  on  democracy  and 
shared  prosperity.  Financial  incentives  for  the  most  ambitious  reformers  are  an 
important  aspect  of  the  new  approach.  As  a  policy-driven  Instrument,  the  future 
European  Neighbourhood  Instrument  (ENI)  should  reflect  this  key  principle, 
especially for programming and allocating support to the partners.  

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Complexity  and  length  of  the  programming  process:  The  current  programming 
process includes a number of broad consultations and many other procedural steps, 
and takes on average 18 months. The length of the programming process undermines 
the  relevance  of  assistance.  The  scope  of  the  programming  documents  (Country 
Strategy  Papers)  under  the  ENPI  follows  the  format  used  for  development 
cooperation,  which  means  making  an  extensive  analysis  of  the  situation  in  a  given 
country  and  increasing  the  length  of  the  process.  For  Neighbourhood  countries, 
however, the reality is different and the country analysis for most partners (countries 
that have concluded an Action Plan or an equivalent set of joint objectives with the 
EU)  is  described  annually  in  dedicated  Progress  Reports,  which  make  the  general 
part of  the Country Strategy Paper  redundant. There  is therefore both the  need  and 
the scope to streamline, shorten and better focus the programming process. 

Scope  of  the  Instrument:  The  scope  of  the  ENPI  as  defined  currently  refers  to  the 
implementation  of  partnership  and  cooperation  agreements,  association  agreements 
or other relevant agreements, promotion of good governance and equitable social and 
economic  development.  It  also  includes  a  very  broad  list  of  29  thematic  areas  of 
cooperation referred to in a detailed manner and on an equal footing, which makes it 
very  hard  to  ascertain  the  core  objectives  and  the  focus  of  the  ENP.  The 
programming reflects this broad-based approach and in a number of cases coherence 
between  the  policy  and  cooperation  has  been  a  challenge.  The  future  legislative 
proposal  for  the  ENI  will  help  to  better  streamline  the  scope  of  the  Instrument  and 
strengthen  links  with  relevant  internal  policies,  while  maintaining  its  current 
flexibility. 

Partly  outdated  implementation  provisions  and  lack  of  coherence  between  the 
external instruments: The implementation section of the current ENPI Regulation is 
outdated in some parts and therefore no longer adequately reflects the way assistance 
in the Neighbourhood is implemented. There is also a lack of coherence between the 
implementation  provisions  of  the  ENPI  and  other  external  action  instruments. 
Flexibility mechanisms can be improved to match the new policy context. In order to 
address  these  points  and  to  achieve  further  harmonization  and  simplification,  a 
separate  horizontal  framework  regulation  comprising  all  general  and  recurring 
provisions  has been developed. This new  horizontal  regulation also  covers the ENI 
implementation  specificities.  This  will  allow  for  updating  the  implementation 
provisions  and  address  the  lack  of  coherence  between  the  external  instruments. 
Moreover,  the  new  horizontal  regulation  will  contribute  to  an  increased  clarity  of 
rules, efficiency and coherence of the Union action.  

Cross-Border  Cooperation  (CBC)  provisions:  The  Cross-Border  Cooperation  has 
been a distinct feature of the relationship between the EU, ENP partners and Russia 
leading  to  implementation  of  joint  initiatives  with  a  common  set  of  rules  on  both 
sides  of  the  EU’s  borders.  The  system  is  functioning  relatively  well,  but 
consultations  with  stakeholders  identified  the  need  for  some  changes  having  an 
impact  on  the  Regulation.  These  include  extending  geographical  eligibility  to 
encompass the important economic, social and cultural centres relevant to the proper 
functioning  of  the  programmes;  full  application  of  ‘shared  management’,  involving 
Member  States  as  signatories  of  Financing  Agreements;  specific  rules  for  co-
financing by partner countries and the specific status of Russia. Far-reaching changes 

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will  need  to  be  made  to  the  Commission  Regulation  laying  down  the  CBC 
Implementing Rules, mainly with regard to management methods. 

Linkages with internal instruments/policies: The ENP provides for a gradual political 
association  and  progressive  economic  integration  of  the  partners  with  the  EU.  EU 
internal  policies  and  market  economy  principles  are  key  references  in  this  process. 
For  Neighbourhood  countries,  a  number  of  initiatives  have  a  transboundary  aspect 
which so far has been addressed only to a very limited extent. The notable exception 
is the Cross-Border Cooperation that allows for addressing common challenges and 
objectives through a single set of rules and through pooling resources from both the 
internal  and  external  funding  sources  of  the  EU  budget.  In  other  areas,  such  as 
infrastructure,  energy1,  transport2,  SME3  development  and  industrial  cooperation 
including  tourism,  ICT4,  employment  and  social  policy5,  migration  and  security, 
judiciary,  fight  against  drugs,  higher  education,  culture,  research  and  innovation6, 
environment, climate action7, disaster resilience and cooperation on maritime affairs, 
there is scope to strengthen the links between internal policies and instruments and 
the  ENP  and  the  European  Neighbourhood  Instrument.  In  this  respect,  the  ENI 
Regulation  will  promote  complementarity,  coherence  and  mainstreaming  of  EU 
priority policy areas, in accordance with the Europe 2020 Strategy, while remaining 
focussed  on  the  main  ENP  objectives.  The  ENP  gives  partners  the  option  to 
participate  in  EU  agencies  and  programmes.  The  issue  of  long-term  financing  of 
ENP partners’ participation in EU agencies and programmes needs to be adequately 
addressed through, in relevant cases, a financial contribution from the ENI, including 
the establishment of appropriate, sustainable delivery mechanisms. 

Evolving relationship with Russia: Russia is the only beneficiary of the ENPI that is 
not covered by the ENP. As all other countries, Russia is entitled to benefit from both 
the  bilateral,  multi-country  and  cross-border  ENPI  funding.  However,  given  the 
significant  improvements  in  Russia’s  fiscal  position,  there  is  less  need  for  large 
volumes of financial assistance. Russia aspires to a relation of equals and has become 
a  donor  itself.  As  a  result,  in  the  period  2007-2013  the  country  received  only 
marginal  allocations  under  the  bilateral  envelope  of  the  ENPI.  Cooperation  within 
the framework of multi-country programmes continues and follows the principle of 
co-financing  by  the  EU  and  Russia.  Most  notably,  Russia  is  co-financing  CBC 
programmes.  This  reflects  the  changing  position  of  Russia  as  a  strategic  partner 
where co-financed projects should be in both sides’ interest.  

The future European Neighbourhood Instrument should be aligned to the new ENP vision and 
address the specific challenges and issues as identified above.  

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international  co-operation 

On  security  of  energy  supply  and 
the  Commission  presented  a 
Communication:  "The  EU  Energy  Policy:  Engaging  with  Partners  beyond  our  borders",  COM(2011) 
539 of 7.September 2011 
in  the  field  of  transport  cooperation  the  Commission  presented  a  Communication:  "The  EU  and  its 
neighbouring regions: A renewed approach to transport cooperation", COM (2011) 415 of 7 July 2011 
Small and Medium Enterprise 
Information and Communication Technologies 
including promotion of the Decent work agenda 
including development of a Common Knowledge and Innovation Space 
The EU should promote and support effectively in its Neighbourhood climate action for a more climate 
resilient and carbon efficient development 

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2. 

RESULTS  OF  CONSULTATIONS  WITH  INTERESTED  PARTIES  AND 
IMPACT ASSESSMENTS 

Consultations with interested parties  

The  legislative  proposal  on  the  European  Neighbourhood  Instrument  is  based  on  a  broad 
consultation process. The process involved a public consultation on external funding carried 
out  for  all  EU  external  action  instruments  and  specific  consultations  held  as  part  of  the 
Strategic  Review  of  the  European  Neighbourhood  Policy  and  on  the  Cross-Border 
Cooperation. Consultations were also held on the future of EU development policy. 

Public Consultation on funding for EU external action 

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  entitled  ‘What  funding  for  EU  external  action  after 
2013?’ prepared by the Commission and the European External Action Service (EEAS). The 
220 contributions received in response to this public consultation reflect a broad and diverse 
spectrum representing the multitude of structures, views and traditions found in the external 
action community.  

Most respondents confirmed that EU financial support provides substantial added value in the 
main  policy  areas  funded  by  EU  financial  instruments  for  external  action8.  The  criterion  of 
EU  added  value  was  given  by  many  respondents  as  the  main  driver  for  the  future:  the  EU 
should leverage its comparative advantage linked to its global field presence, its wide-ranging 
expertise, its supranational nature, its role as facilitator of coordination and the economies of 
scale.  

Nearly all respondents supported a more differentiated approach tailored to the situation of the 
beneficiaries and based on sound criteria to increase the impact of EU financial instruments. 
There  was  also  wide  support  for  conditionality  based  on  the  respect  for  human  rights, 
minorities,  good  governance  and  diversity  of  cultural  expressions,  or  on  the  quality  of 
beneficiaries’ policies and their ability and willingness to implement them. 

Consultations in the context of ENP Strategic Review 

The European External Action Service held specific consultations with representatives of EU 
Member  States  and  ENP  partner  countries  as  part  of  the  Strategic  Review  of  the  policy, 
launched  in  July  2010.  The  consultations  tackled  financing  of  the  ENP,  notably  under  the 
European Neighbourhood and Partnership Instrument, and issues of the long-term ENP vision 
and medium-term policy objectives.  

The consultations revealed that the ENPI was seen as a step change in the way EU assistance 
was delivered. However, they also identified the need for further refinement. Many Member 
States  underlined  the  importance  of  improved  coherence  between  the  policy  and  financial 
assistance provided by the Instrument. Several respondents highlighted that allocations should 

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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. 

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be  based  on  performance.  Many  stressed  the  importance  of  making  financial  support  faster, 
more efficient and more flexible in responding to emerging needs.  

Partner  countries  underlined  the  need  to  accompany  economic  integration,  market  opening 
and  regulatory  convergence  with  appropriate  financial  support.  They  also  emphasised  the 
importance of promoting foreign investment.  

Stakeholder consultations on Cross-Border Cooperation  

Specific  consultations  on  CBC  were  organised  with  all  stakeholders.  The  process  was 
launched  during  a  CBC  Conference  in  Brussels  in  February  2011,  and  stakeholders  were 
consulted on the future regulatory framework (including on the CBC Implementing Rules) on 
the basis of a questionnaire circulated in May/June 2011. The results reflect the need to adapt 
some provisions to improve the efficiency of the CBC. The aim of the suggested changes is to 
better reflect integration between EU foreign policy priorities with the EU Cohesion Policy, 
especially  by  further  aligning  the  CBC  on  external  EU  borders  to  the  European  Territorial 
Cooperation  (ETC)  rules.  Further  consultative  meetings  took  place  on  20  September  2011 
with Member States in Brussels and with all stakeholders in Budapest on 18-19 October 2011.  

Public consultations on “EU development policy” 

In  addition,  the  Commission  published  a  Green  Paper  entitled  ‘EU  development  policy  in 
support of inclusive growth and sustainable development’ and held a public consultation from 
15 November 2010 to 17 January 2011. Many respondents underlined that ODA9 constitutes 
only  a  fraction  of  funding  for  development,  to  be  seen  as  a  complement  to  domestically 
mobilised  resources,  foreign  investments,  trade  and  remittances.  A  request  was  made  for 
greater  coherence  in  EU  development  policy,  especially  with  regards  to  middle-income 
countries.  While  joint  programming  of  assistance  was  endorsed  in  principle,  it  should  be 
introduced gradually starting with countries where it would yield demonstrable added value.  

The  proposal  on  the  European  Neighbourhood  Instrument  is  based  to  a  large  extent  on  the 
results  of  these  consultations.  The  main  aspects  that  have  been  integrated  in  the  revised 
instrument include differentiation and performance-based allocations, new approach related to 
programming  and  improving  the  coherence  of  the  policy  with  assistance,  amending  Cross-
Border Cooperation rules and provisions to improve the efficiency and flexibility of support. 

Impact assessment 

A  specific  impact  assessment  for  the  future  ENI  was  prepared  jointly  by  the  European 
External Action Service and the European Commission. 

The impact assessment reviewed the following four options:  

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Option  0:  ‘No  EU  action’.  The  EU  stops  providing  financial  support  through  a 
dedicated Instrument for Neighbourhood countries; 

Option 1: ‘No change’. Cooperation with the countries concerned remains strictly in 
the framework of the existing ENPI Regulation; 

Official Development Aid  

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Option 2: ‘Adapting the current set-up’. The future legislative proposal should be 
based  on  the  current  ENPI  Regulation  with  a  number  of  substantial  amendments, 
responding to the new policy context and specific objectives. Under this Option there 
are  a  number  of  sub-options  referring  to:  the  differentiation  principle;  the 
programming  process;  scope  of  the  Instrument  and  coherence  between  policy  and 
assistance;  Cross-Border  Cooperation  rules;  implementation  provision,  notably  to 
allow  for  greater  flexibility;  linkages  with  internal  policies  and  instruments  and 
geographic scope of the ENI. 

Option  3:  ‘Tabling  a  completely  new  Instrument’  with  a  different  geographic 
scope and focussing on objectives broader than or different from those of the ENP.  

In  terms  of  the  likely  economic,  social,  environmental  and  other  impacts  of  each  of  the 
options, the following has been acknowledged: 

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Discontinuing  EU  action  (Option  0)  would  substantially  reduce  and  undermine  the 
sustainability of impacts achieved so far. It would also negatively affect overall EU 
relations with ENP partners. 

No change of the current Instrument (Option 1) would lead to a number of positive 
economic, social and environmental impacts in partner countries; 

Amending  the  Instrument  (Option  2)  would  enhance  the  positive  economic,  social 
and  environmental  impacts  achieved  under  the  current  set-up  and  should  yield  an 
even more positive impact on governance, notably by applying the “more for more” 
principle.  

Tabling  a  completely  new  Instrument  (Option  3)  would  have  negative  impacts 
notably  on  the  coherence  of  EU  action  with  the  ENP  objectives,  and  would 
undermine the EU’s credibility in the region. 

Based  on  the  analysis  and  weighting  of  the  different  impacts  (global,  economic,  social, 
environmental), Options 0 and Option 3 were rejected as non-viable options that would yield 
positive impacts and help meet ENP objectives. Option 2 would have the highest potential to 
yield  a  positive  impact  and  to  adapt  the  current  cooperation  framework  to  the  new  policy 
context,  ENP  objectives  and  challenges  identified  through  evaluations  and  lessons  learned. 
Option  1  would  be  the  second-best  option  to  maintain  current  positive  impacts,  without 
however providing for meeting the objectives of the new ENP nor address the challenges and 
specific problems identified under the current set-up.  

The preferred option is therefore Option 2. 

3. 

LEGAL ASPECTS OF THE PROPOSAL 

Article 8 of the TEU provides the general thrust and the basis for the ENP. The legal base for 
the financing Instrument to support the ENP, the future European Neighbourhood Instrument, 
is Article 209(1) TFEU10 and Article 212(2) TFEU. 

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Treaty on the Functioning of the European Union 

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Subsidiarity 

In terms of subsidiarity, action at EU level brings essential added value, linked to a number of 
factors: 

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In Neighbourhood countries where alignment to EU rules and standards, guidelines 
and  measures  is  one  of  the  key  policy  objectives,  the  EU  is  best  placed  to  provide 
assistance.  Certain  specific  support  can  only  be  provided  at  EU  level,  such  as 
promoting economic integration with the EU internal market, access to the Schengen 
space  or  participation  in  EU  programmes.  Thus  the  EU  is  the  leading  cooperation 
partner  in  most  ENP  countries,  a  role  widely  recognised  by  Member  States, 
international financial institutions and other donors. Helping EU neighbours to align 
with EU policies, rules and standards is a key driver for reforms in the ENP partner 
countries.  

With 27 Member States acting within common policies and strategies, the EU alone 
has the critical weight to respond to global challenges. Action at national level can be 
limited  and  fragmented,  as  projects  are  often  too  small  to  make  a  sustainable 
difference.  Streamlining  the  work  of  Member  States  through  the  EU  improves  the 
coordination and effectiveness of EU action.  

At a time of budgetary restrictions, when several Member States have chosen to exit 
entire sectors of cooperation and withdraw their support from certain countries, the 
EU is able to play an active role in promoting democracy, peace, stability, prosperity 
and  poverty  reduction  in  its  Neighbourhood.  In  this  context,  it  makes  more  sense 
than ever from a purely economic perspective to channel aid at EU level where a real 
difference can be made. Working with the EU is also cheaper. Administrative costs 
are lower than the average administrative costs of the principal  donors  for  bilateral 
aid. 

4. 

BUDGETARY IMPLICATIONS 

The  level  of  funding  from  the  EU  budget  for  the  new  ENI  should  reflect  adequately  the 
ambitions of the revised European Neighbourhood Policy.  

Thus,  the European  Commission in its Communication of 29 June  2011  entitled  “A Budget 
for  Europe  2020”  proposed  allocating  to  the  ENI  € 18 182 300 000  (current  prices)  for  the 
period 2014-2020.  

To  ensure  its  predictability,  funding  for  higher  education  activities  in  third  countries  in  the 
context  of  "Erasmus  for  All"  programme  will  be  made  available,  in  line  with  EU  external 
action  objectives,  through  2  multi  annual  allocations  only  covering  the  first  4  years  and  the 
remaining  3  years  respectively.  This  funding  will  be  reflected  in  the  multiannual  indicative 
programming  of  the  ENI,  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 

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"Erasmus  for  All"  Regulation  (EU)  No  [--]  of  the  European  Parliament  and  of  the  Council 
establishing "Erasmus for All"11 will apply to the use of those funds. 

A detailed estimated financial impact of the proposal is set out in the separate ENI Legislative 
Financial Statement. 

5. 

MAIN ELEMENTS 

Detailed explanation of specific provisions of the proposal 

The key elements of the proposal (as compared to the current set-up) and their rationale are 
the following: 

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Apply  the  principle  of  “more  for  more”  and  mutual  accountability  in  line  with  the 
new  vision  of  the  ENP,  notably  through  specific  provisions  on  differentiation  for 
financial allocations and for the programming process, as required; 

Address  the  complexity  and  length  of  the  programming  process  in  order  to 
streamline,  shorten  and  better  focus  the  process,  especially  for  ENP  partners  that 
have  jointly  agreed  with  the  EU  strategic  priorities  in  Action  Plans  or  equivalent 
documents; 

Streamline the scope of the Instrument, striking a balance between flexibility of the 
Instrument and focus on the policy objectives and key areas of cooperation; 

Adapt  the  implementation  provisions  and  improve  coherence  between  the  external 
instruments; 

Improve  the  provisions  on  the  Cross-Border  Cooperation  to  facilitate  effective  and 
fast implementation of the programmes; 

Promote  closer  links  with  EU  internal  instruments  and  policies,  including  by 
stepping up cooperation with the Commission at the programming stage and, where 
relevant, promote mechanisms to pool funds from internal and external headings of 
the EU budget;  

Respond  to  the  evolving  relationship  with  Russia  by  amending  provisions  on 
Russia’s eligibility for ENI funding to reflect the specific status of Russia as an EU 
neighbour and strategic partner. 

Simplification 

The  proposal  for  the  ENI  includes  provisions  to  simplify  the  instrument  in  a  number  of 
aspects. The scope of the Instrument has been streamlined by bringing down the 29 thematic 
areas that feature in the current ENPI Regulation to six specific objectives. A new, simplified 
programming  tool  for  most  of  the  neighbouring  countries  (Single  Support  Framework)  has 
been  introduced.  This  new  programming  document  will  be  shorter  than  the  Strategy  Papers 
and Multiannual Indicative Programmes, will prevent duplication of information contained in 

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legal/political  documents 

that underpin  EU  relations  with 

the 
its  neighbours,  and 
should help shorten  the  programming  process,  therefore  reducing  administrative  costs. The 
new article that allows funds from the ENI and the relevant internal Heading of the EU budget 
to  be  pooled  with  a  single  set  of  rules  for  measures  addressing  notably  cross-border 
challenges  will  substantially  improve  efficiency  and  reduce  the  administrative  costs  of 
implementing such measures. 

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

To  implement  the  new  ENI  Regulation,  simplified  and  flexible  procedures  should  lead  to 
swifter  adoption  of  implementing  measures  and  swifter  delivery  of  EU  assistance,  in 
particular  in  situations  of  crises  or  threats  to  democracy,  the  rule  of  law,  human  rights  and 
fundamental  freedoms,  or  natural  or  man-made  disasters.  Revision  of  the  Financial 
Regulation,  which  has  particularly  substantial  provisions  on  external  action,  will  also  help 
facilitate  the  participation  of  civil  society  organisations  and  small  businesses  in  funding 
programmes,  for  example  by  simplifying  rules,  reducing  the  costs  of  participation  and 
accelerating award procedures. The Commission intends to implement this Regulation using 
the new flexible procedures provided for in the new Financial Regulation. 

Furthermore additional simplification will also be achieved through the development of one 
horizontal  framework  regulation  comprising  all  general  and  recurring  provisions,  providing 
for increased coherence between the external actions instruments. 

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2011/0405 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

establishing a European Neighbourhood Instrument 

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) and 212 (2) thereof,  

Having regard to the proposal from the Commission,  

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

Having regard to the opinion of the European Economic and Social Committee12,  

Having regard to the opinion of the Committee of the Regions13,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

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 1638/2006 of 24 October 2006 laying down general 
provisions  establishing  a  European  Neighbourhood  and  Partnership  Instrument14 
which expires on 31 December 2013. 

Article 8 of the Treaty on European Union provides for the development of a special 
relationship  with  neighbouring  countries,  with  the  aim  of  establishing  an  area  of 
prosperity  and  good  neighbourliness,  founded  on  the  values  of  the  Union  and 
characterised by close and peaceful relations based on cooperation. 

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

12 
13 
14 

OJ C , , p. . 
OJ C , , p. . 
OJ L 310, 9.November.2006, p. 1.  

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

Since  it  was  launched,  the  European  Neighbourhood  Policy  has  significantly 
strengthened relations with partner countries and brought tangible benefits to both the 
Union and its partners. 

Under  the  European  Neighbourhood  Policy,  the  Union  offers  Neighbourhood 
countries  a  privileged  relationship,  building  upon  a  mutual  commitment  to  and 
promotion  of  the  values  of  democracy  and  human  rights,  the  rule  of  law,  good 
governance and the principles of market economy and sustainable development. 

Two  main  political  initiatives  have  shaped  the  regional  cooperation  in  the  European 
Union’s  Neighbourhood:  the  Eastern  Partnership  between  the  Union  and  its  Eastern 
neighbours, and the Union for the Mediterranean between the Union and its Southern 
Mediterranean  neighbours.  These  initiatives  are  meaningful  political  frameworks  for 
deepening  relations  with  and  among  partner  countries,  based  on  principles  of  shared 
ownership and responsibility. 

A number of major developments have taken place since the European Neighbourhood 
Policy  was  launched  and  the  European  Neighbourhood  and  Partnership  Instrument 
was set up. These include a deepening of the relationship with the partners, the launch 
of regional initiatives and democratic transition processes in the region. This triggered 
a  new  European  Neighbourhood  Policy  vision  set  out  in  2011  as  a  result  of  a 
comprehensive  Strategic  Review  of  the  Policy.  It  outlines  key  objectives  for  Union 
cooperation with Neighbourhood countries and provides for greater support to partners 
committed to building democratic societies and undertaking reforms, in line with the 
‘more for more’ and ‘mutual accountability’ principles.  

Support under this Instrument and the European Regional Development Fund should 
be provided for the Cross-Border Cooperation programmes along the external borders 
of  the  European  Union  between  partner  countries  and  Member  States  to  promote 
integrated and sustainable regional development between neighbouring border regions 
and  harmonious  territorial  integration  across  the  Union  and  with  neighbouring 
countries. 

Furthermore, it is important to foster and facilitate cooperation for the common benefit 
of Union and its partners, notably through pooling of contributions from internal and 
external instruments of the Union budget, in particular for Cross-Border Cooperation, 
infrastructure  projects  of  Union  interest  that  will  pass  through  Neighbourhood 
countries and other areas of cooperation. 

(10)  Border regions that belong to countries of the European Economic Area (EEA) and the 
regions  of  the  Russian  Federation  that  are  currently  taking  part  in  Cross-Border 
Cooperation programmes should be able to continue to do so. It is also important that 
the  relevant  regions  in  countries  covered  by  the  Instrument  for  Pre-accession 
Assistance  are  able  to  participate  in  CBC.  Participation  of  the  European  Economic 
Area  countries  in  the  CBC  programmes  should  continue  to  be  based  on  their  own 
resources.  

(11) 

It  is  expected  that  the  EU  Member  States  and  Partner  countries  taking  part  in  Cross 
Border Co-operation will provide national co-financing. This will strengthen country 

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ownership,  increase  the  financial  resources  at  the  disposal  of  the  programmes  and 
facilitate the participation of local actors.  

(12)  Cross-Border  Co-operation  will  contribute  as  appropriate  to  the  implementation  of 

existing and future macro-regional strategies. 

(13)  Support  to  be  provided  to  neighbouring  developing  countries  within  the  framework 
established  by  the  European  Neighbourhood  Policy  should  be  coherent  with  the 
objectives  and  principles  of  the  Union’s  external  policies  and  in  particular  its 
development  policy,  including  the  ‘Joint  Statement  on  a  European  Development 
Policy:  the  European  Consensus’,  adopted  by  the  Council  and  the  representatives  of 
the  governments  of  the  Member  States  meeting  within  the  Council,  the  European 
Parliament and the Commission, on 22 December 2005. 

(14)  The  Joint  EU  –  Africa  Strategy is  of  relevance  for  relations  with  the  Mediterranean 

neighbours from North Africa. 

(15)  The  Union  and  its  Member  States  should  improve  the  coherence  and  the 
complementarity  of  their  respective  policies  on  cooperation  with  neighbouring 
countries.  To  ensure  that  the  Union's  cooperation  and  that  of  the  Member  States 
complement  and  reinforce  each  other,  it  is  appropriate  to  provide  for  joint 
programming which should be implemented whenever possible and relevant. 

(16)  Union  support  under  this  Regulation should in principle be aligned to corresponding 

national, regional or local strategies and measures of partner countries.  

(17) 

In  Neighbourhood  countries  where  alignment  to  Union  rules  and  standards  is  one  of 
the  key  policy  objectives,  the  Union  is  best  placed  to  deliver  this  support.  Certain 
specific support can only be provided at Union level.  

(18)  Furthermore,  since  the  objectives  of  this  Regulation,  namely  to  promote  enhanced 
political  cooperation  and  progressive  economic  integration  between  the  European 
Union  and  neighbouring  countries,  cannot  be  sufficiently  achieved  by  the  Member 
States and can, 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 as set 
out in Article 5 of the Treaty. In accordance with the principle of proportionality, as 
set out in that Article, this Regulation does not go beyond what is necessary in order to 
achieve those objectives. 

(19)  European Union external support has increasing financing needs but the economic and 
budgetary situation of the Union limits the resources available for such support. The 
Commission must therefore seek the most efficient use of available resources by using 
financial instruments with leverage effect. Such effect could be increased by enabling 
the use and re-use of funds invested and generated by financial instruments. 

(20)  Fighting  climate  change  is  one  of  the  great  challenges  which  the  Union  faces  and 
urgent  international  action  is  needed.  In  accordance  with  the  intent  stated  in  the 
Commission  June  2011  MFF  Communication  of  increasing  the  climate  related 
proportion  of  the  Union  budget  to  at  least  20%,  this  Regulation  should  contribute  to 
that goal. 

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(21)  Gender  equality  and  anti-discrimination  should  be  a  cross-cutting  objective  in  all 

actions undertaken under this Regulation.  

(22)  The  Union  is  committed  to  promote  in  relations  with  its  partners  worldwide  decent 
work  as  well  as  ratification  and  effective  implementation  of  the  internationally 
recognised labour standards and multilateral environment agreements, in relations with 
its partners worldwide. 

(23)  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 
in  accordance  with 
international 
organisations and third countries. 

the  applicable  agreements  concluded  with 

(24)  For  the  purpose  of  harmonising  the  terminology  with  the  European  Territorial  Co-
the  Cross-Border  Cooperation 

operation, 
programmes should be called joint operational programmes.  

implementation  documents  for 

the 

(25) 

In  order  for  this  Regulation  to  be  able  to  reflect  swiftly  the  results  of  political 
decisions made by the Council, the power to adopt acts in accordance with Article 290 
of  the  Treaty  on  the  Functioning  of  the  European  Union  should  be  delegated  to  the 
Commission  for  updating  the  list  of  beneficiary  countries  in  the  Annex  to  this 
Regulation. 

(26)  While  Regulation  (EU)  No  …/…  of  the  European  Parliament  and  of  the  Council  of 
….15 (hereinafter "the Common Implementing Regulation") establishes common rules 
and procedures for the implementation of the Union's instruments for external action, 
delegated  powers  to  adopt  acts  in  accordance  with  Article  290  of  the  Treaty  of  the 
Functioning  of  the  European  Union  should  be  conferred  to  the  Commission  for 
the  Cross-Border 
adopting 
Cooperation mechanisms established in Title III of this Regulation. 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. 

implementing  measures  required  for 

the  specific 

(27) 

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

(28)  The  implementing  powers  relating  to  Article  7(1)  ,  (2),  and  (3)  and  to  Article  9(1) 
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  powers16.  Taking  into  account  the  nature  of  those 
implementing  acts,  in  particular  their  policy  orientation  nature  or  their  financial 

15 
16 

OJ L 
OJ L 55, 28.2.2011, p.13. 

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implications, the examination procedure should in principle be used for their adoption, 
except for measures of a small financial scale. 

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

described in Council Decision 2010/427/EU. 

HAVE ADOPTED THIS REGULATION: 

Title I. OBJECTIVES AND PRINCIPLES 

Article 1 

Overall objective and scope 

1. 

2. 

3. 

1. 

The  Union  aims  to  establish  an  area  of  prosperity  and  good  neighbourliness 
involving the European Union and the countries and territories listed in the Annex to 
this  Regulation  (hereinafter  ‘the  partner  countries’)  by  developing  a  special 
relationship. 

Union support under this Regulation shall be used for the benefit of partner countries 
and can also be used for the common benefit of EU and partner countries. 

Union funding may also be used for the purpose of enabling the Russian Federation 
to  participate 
in  relevant  multi-country 
programmes, to reflect the specific status of the Russian Federation as both a Union 
neighbour and a strategic partner in the region. 

in  Cross-Border  Cooperation  and 

Article 2 

Specific objectives of Union’s support 

Support  under  this  Regulation  shall  promote  enhanced  political  cooperation  and 
progressive economic integration between the Union and the partner  countries  and, 
in  particular,  the  implementation  of  partnership  and  cooperation  agreements, 
association  agreements  or  other  existing  and  future  agreements,  and  jointly  agreed 
action plans. 

2. 

Union support should target in particular: 

(a)  promoting human rights and fundamental freedoms, the rule of law, principles 
of  equality,  establishing  deep  and  sustainable  democracy,  promoting  good 
governance and developing a thriving civil society including social partners;  

(b) 

achieving progressive integration into the Union internal market and enhanced 
sector  and  cross-sectoral  co-operation 
legislative 
approximation  and  regulatory  convergence  towards  Union  and  other  relevant 
international standards, related institution building and investments, notably in 
interconnections; 

including 

through 

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(c) 

(d) 

creating  conditions  for  well  managed  mobility  of  people  and  promotion  of 
people-to-people contacts; 

sustainable  and  inclusive  development  in  all  aspects,  poverty  reduction, 
including through private-sector development; promotion of internal economic, 
social  and  territorial  cohesion,  rural  development,  climate  action  and  disaster 
resilience; 

(e)  promoting confidence building and other measures contributing to security and 

the prevention and settlement of conflicts; 

(f) 

enhancing  sub-regional,  regional  and  Neighbourhood  wide  collaboration  as 
well as Cross-Border Cooperation. 

3. 

The achievement of these objectives shall be measured using notably the relevant EU 
periodic reports on the implementation of the policy, and for paragraphs 2(a), (d) and 
(e),  the  relevant  indicators  established  by  international  organisations  and  other 
relevant  bodies;  for  paragraphs  2(b),  (c)  and  (d)  the  uptake  of  the  EU  regulatory 
framework  by  the  partner  countries  as  relevant;  for  paragraphs  2(c)  and  (f),  the 
number of relevant agreements and cooperation actions. The indicators will include, 
among others, adequately monitored democratic elections, level of corruption, trade 
flows,  indicators  enabling  measuring  internal  economic  disparities,  including 
employment levels. 

4. 

Union  support  may  also  be  used  in  other  areas  when  this  is  consistent  with  the 
overall objectives of the European Neighbourhood Policy. 

Article 3 

Policy framework 

1. 

2. 

3. 

The  partnership  and  cooperation  agreements,  the  association  agreements  and  other 
existing  or  future  agreements  that  establish  a  relationship  with  partner  countries, 
corresponding  Communications,  Council  conclusions  and  European  Parliament 
Resolutions  as  well  as  relevant  conclusions  of  ministerial  meetings  with  the  partner 
countries  shall  constitute  the  overall  policy  framework  for  programming  and 
implementing Union support under this Regulation. 

Jointly agreed action plans or other equivalent documents between the partner countries 
and the Union shall provide the key point of reference for setting the priorities for Union 
support. 

Where  no  agreements,  as  mentioned  in  paragraph  1,  between  the  Union  and  partner 
countries exist, Union support may be provided when it proves useful to pursue Union 
policy  objectives,  and  shall  be  programmed  on  the  basis  of  such  objectives  taking  into 
account the needs of the country concerned. 

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1. 

2. 

3. 

1. 

2. 

3. 

Article 4 

Differentiation, partnership and co-financing 

Union  support  provided  under  this  Regulation  to  each  partner  country  shall  be 
differentiated in form and amounts according to the partner country’s commitment to 
reforms  and  its  progress  in  implementing  these  reforms.  Such  differentiation  shall 
reflect the level of ambition of the country’s partnership with the Union, its progress 
in  building  deep  and  sustainable  democracy,  its  progress  in  implementing  agreed 
reform  objectives,  the  country’s  needs  and  capacities,  and  the  potential  impact  of 
Union support. 

Union support under this Regulation shall, in principle, be established in partnership with 
the beneficiaries. The partnership shall involve as appropriate, national, regional and local 
authorities, other stakeholders, civil society, social partners and other non-state actors in 
preparing, implementing and monitoring Union support. 

Union  support  under  this  Regulation  shall  in  principle  be  co-financed  by  the  partner 
countries through public funds, contributions from the beneficiaries or other sources. The 
same  principle  shall  be  applicable  to  the  cooperation  with  the  Russian  Federation, 
particularly  with  regard  to  programmes  referred  to  in  Article  6(1)  (c).  Co-financing 
requirements may be waived in duly justified cases and when this is necessary to support 
the  development  of  civil  society  and  non-state  actors,  without  prejudice  to  compliance 
with the other conditions set out in the Financial Regulation. 

Article 5 

Coherence and Donor Coordination 

In implementing this Regulation, coherence shall be ensured with other areas of the 
Union external action as well as other relevant Union policies. To this end, measures 
financed  under  this  Regulation,  including  those  managed  by  the  European 
Investment  Bank  (EIB),  shall  be  based  on  the  cooperation  policy  documents 
described in Article 3(1) and (2) as well as on the Union’s specific interests, policy 
priorities  and  strategies.  Such  measures  shall  respect  the  commitments  under 
multilateral  agreements  and  international  conventions  to  which  the  Union  and  partner 
countries are parties. 

The Commission, the Member States and the European Investment Bank (EIB) shall 
ensure  coherence  between  support  provided  under  this  Regulation  and  other  support 
provided by the Union, the Member States and the European Investment Bank. 

The  Union  and  the  Member  States  shall  coordinate  their  respective  support 
programmes with the aim of increasing effectiveness and efficiency in the delivery of 
support  and  policy  dialogue  in  line  with  the  established  principles  for  strengthening 
operational coordination in the field of external support, and for harmonising policies 
and  procedures.  Coordination  shall  involve  regular  consultations  and  frequent 
exchanges of relevant information during the different phases of the support cycle, in 
particular  at  field  level,  and  may  lead  to  joint  programming,  delegated  co-operation 
and/or transfer arrangements.  

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4. 

The  Union  shall,  in  liaison  with  the  Member  States,  take  the  necessary  steps  to 
ensure  proper  coordination  and  cooperation  with  multilateral  and  regional 
organisations  and  entities,  including  European  financial  institutions,  international 
financial  institutions,  United  Nations  agencies,  funds  and  programmes,  private  and 
political foundations and non-European Union donors. 

Title II. INDICATIVE PROGRAMMING AND ALLOCATION 
OF FUNDS 

Article 6 

Type of programmes 

1. 

Union support under this Regulation shall be programmed through: 

(a) 

bilateral programmes covering support to one partner country; 

(b)  multi-country  programmes  which  address  challenges  common  to  all  or  a 
number  of  partner  countries,  and  regional  and  sub-regional  cooperation 
between  two  or  more  partner  countries,  and  which  may  include  cooperation 
with the Russian Federation; 

(c)  Cross-Border Cooperation programmes addressing cooperation between one or 
more Member States on the one hand and one or more partner countries and/or 
the Russian Federation on the other hand taking place along their shared part of 
the external border of the EU. 

2. 

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

Article 7 

Programming and indicative allocation of funds for country and multi country indicative 
programmes 

1. 

For countries where the documents referred to in Article 3(2) exist, a comprehensive 
multi-annual  Single  Support  Framework  shall  be  adopted  in  accordance  with  the 
examination  procedure  referred  to  in  Article  15(3)  of  the  Common  Implementing 
Regulation.  The  Single  Support  Framework  shall  review  the  progress  made  in 
relation  to  the  policy  framework  and  shall  list  priorities  for  Union  support,  mainly 
selected  from  those  included  in  the  documents  referred  to  in  Article  3(2)  and  in 
partner countries’ strategies or plans, and for which the Union’s regular assessment 
has shown the need for support. It shall also set out their indicative level of funding. 
The duration of the Single Support Framework shall correspond to the duration of the 
relevant document referred to in Article 3(2). 

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2. 

3. 

4. 

5. 

6. 

7. 

8. 

9. 

For  countries  where  the  documents  referred  to  in  Article  3(2)  do  not  exist,  a 
comprehensive  programming  document  including  a  Strategy  and  a  Multi-annual 
indicative  programme  shall  be  adopted  in  accordance  with  the  examination 
procedure  referred  to  in  Article  15(3)  of  the  Common  Implementing  Regulation.  It 
shall define a Union response strategy on the basis of an analysis of situation of the 
country  concerned,  and  of  its  relations  with  the  Union,  the  partner  countries’ 
strategies or plans, the priorities for Union support and the indicative level of funding 
broken down by priority. It shall have an appropriate multi-annual duration. 

For multi-country programmes, a comprehensive programming document including a 
Strategy  and  a  Multi-annual  indicative  programme  shall  be  adopted  in  accordance 
with  the  examination  procedure  referred  to  in  Article  15(3)  of  the  Common 
Implementing Regulation. It shall define the priorities for Union support towards the 
region or the sub-region and the indicative level of funding broken down by priority. 
It shall have an appropriate multi-annual duration. 

The  Single  Support  Framework  documents  referred  to  in  paragraph  1  shall  be 
reviewed  when  necessary  and  may  be  revised  in  accordance  with  the  examination 
procedure referred to in Article 15(3) of the Common Implementing Regulation. The 
programming documents referred to in paragraphs 2 and 3 shall be reviewed at their 
mid-term  or  whenever  necessary  and  may  be  revised  in  accordance  with  the  same 
procedure. 

Financial allocations for country and multi-country programmes shall be determined 
using  transparent  and  objective  criteria  reflecting  the  differentiation  principle 
referred to in Article 4(1).  

When  it  is  necessary  to  implement  more  effectively  measures  for  the  common 
benefit of the Union and partner countries, in areas such as transnational co-operation 
and  inter-connections,  funding  under  this  Regulation  can  be  pooled  together  with 
funding  covered  by  other  relevant  Union  Regulations  establishing  financial 
instruments.  In  this  case,  the  Commission  shall  decide  which  single  set  of  rules 
should apply to implementation. 

Member  States  and  other  donors  that  have  committed  to  jointly  programme  their 
support  with  the  EU  shall  be  involved  in  the  programming  process.  The 
programming documents may also cover their contribution as appropriate.  

When  Member  States  and  other  donors  have  committed  to  jointly  programme  their 
support, a joint multi-annual programming document may replace the Single Support 
Framework referred to in paragraph (1) and the programming documents referred to 
in paragraphs (2) and (3), on condition that it meets the requirements set out in these 
provisions. 

In  the  event  of  crises  or  threats  to  democracy,  the  rule  of  law,  human  rights  and 
fundamental freedoms, or of natural or man-made disasters, an ad hoc review of the 
programming  documents  may  be  conducted.  Such  emergency  review  shall  ensure 
that  coherence  between  Union  support  provided  under  this  Regulation  and  support 
provided  under  other  Union  financial  instruments  is  maintained.  An  emergency 
review may lead to the adoption of revised programming  documents. Where this is 

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the  case,  the  Commission  shall  send  the  revised  programming  documents  to  the 
European  Parliament  and  to  the  Council  for  information  within  one  month  of  their 
adoption. 

Title III. CROSS-BORDER COOPERATION 

Article 8 

Geographical eligibility 

1. 

The  Cross-Border  Cooperation  programmes  referred  to  in  Article  6(1)(c)  can  be 
established: 

(a) 

(b) 

for land borders, covering the territorial units corresponding to NUTS level 3 
or  equivalent  along  the  land  borders  between  Member  States  and  partner 
countries, and/or the Russian Federation; 

for  maritime  borders,  covering  the  territorial  units  corresponding  to  NUTS 
level  3  or  equivalent  along  maritime  borders  between  Member  States  and 
partner  countries  and/or  the  Russian  Federation,  separated  by  a  maximum  of 
150  km,  without  prejudice  to  potential  adjustments  needed  to  ensure  the 
coherence and continuity of cooperation action; 

(c) 

around  a  sea  basin,  covering  the  coastal  territorial  units  corresponding  to 
NUTS level 2 or equivalent facing a sea basin common to Member States and 
partner countries and/or the Russian Federation. 

In  order  to  ensure  the  continuation  of  existing  cooperation  schemes  and  in  other 
justified cases, territorial units adjoining to those referred to in paragraph 1 may be 
allowed to participate in Cross-Border Cooperation. 

In  duly  justified  cases,  major  social,  economic  or  cultural  centres  that  are  not 
adjoining  to  eligible  territorial  units  may  be  included  on  condition  that  such 
participation contributes to the objectives laid down in the programming document. 

When  programmes  are  established  pursuant  to  paragraph  1(b),  the  European 
Commission  may,  in  agreement  with  the  partners,  propose  that  the  geographical 
eligibility be extended to the whole NUTS level 2 territorial unit in whose area the 
NUTS level 3 territorial unit is located. 

2. 

3. 

4. 

Article 9 

Programming and allocation of funds for Cross-Border Cooperation  

1. 

A programming document shall be prepared for the purpose of defining the: 

(a) 

strategic objectives to be pursued by Cross-Border Cooperation; 

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(b) 

list of the joint operational programmes to be established; 

(c) 
indicative  breakdown  of  resources  between  land  and  maritime  border 
programmes  referred  to  in  Article  8  (1)  (a)  and  (b)  and  sea  basin  programmes 
referred to in Article 8(1)(c); 

(d) 

indicative multi-annual allocations to each joint operational programme; 

territorial units eligible to participate in each joint operational programme, and 

(e) 
the regions and centres indicated in Article 8(2), 8(3) and 8(4); 

indicative  allocation  to  support,  as  appropriate,  horizontal  capacity  building 

(f) 
actions, networking and exchange of experiences among programmes;  

(g) 
contributions  to  the  transnational  programmes  established  under  Regulation 
(EU)  No  […]  of  the  European  Parliament  and  the  Council  of  [….]  on  specific 
provisions  for  the  support  from  the  European  Regional  Development  Fund  to  the 
European  Territorial  Co-operation  goal17,  to  which  partner  countries  and/or  the 
Russian Federation participate. 

The programming document shall cover a period of seven years and shall be adopted 
by  the  Commission  in  accordance  with  the  examination  procedure  referred  to  in 
Article 15(3) of the Common Implementing Regulation. It shall be reviewed at mid-
term  or  whenever  necessary  and  may  be  revised  in  accordance  with  the  same 
procedure referred to in that Article. 

The  joint  operational  programmes  shall  be  co-financed  by  the  European  Regional 
Development  Fund.  The  overall  amount  of  the  contribution  from  the  European 
Regional  Development  Fund  shall  be  determined  pursuant  to  Article  4(4)  of 
Regulation  (EU)  No  […  of  the  European  Parliament  and  the  Council  of  [….]on 
specific provisions for the support from the European Regional Development Fund to 
the European Territorial Co-operation goal18]. The provisions of this Regulation shall 
apply to the use of this contribution.  

The  Instrument  for  Pre-Accession  may  co-finance  joint  operational  programmes  to 
which  countries  eligible  under  such  Instrument  participate.  The  provisions  of  this 
Regulation shall apply to the use of this co-financing.  

The  indicative  allocations  of  funds  to  the  joint  operational  programmes  shall  be 
based  primarily  on  the  population  of  the  eligible  areas.  When  determining  the 
indicative  allocations,  adjustments  may  be  made  to  reflect  the  need  for  a  balance 
between  the  contributions  from  the  European  Regional  Development  Fund  and  the 
contributions  provided  under  the  budget  of  this  Instrument  as  well  as  other  factors 
affecting  the  intensity  of  cooperation,  such  as  the  specific  characteristics  of  border 
areas and their capacity to manage and absorb Union support. 

2. 

3. 

4. 

17 
18 

OJ L 
OJ L 

EN 

21 

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1. 

2. 

3. 

4. 

5. 

6. 

7. 

Article 10 

Joint operational programmes  

implemented 

joint 
Cross-Border  Cooperation  shall  be 
operational programmes covering cooperation for a border or a group of borders and 
comprising multi-annual measures that pursue a consistent set of priorities and that 
may  be  implemented  with  Union  support.  Joint  operational  programmes  shall  be 
based  on  the  programming  document  referred  to  in  Article  9.  They  shall  include  a 
summary description of the management and control systems covering the elements 
referred to in Articles 11(2) and 12 (2).  

through  multi-annual 

Joint operational programmes for land and maritime borders shall be established for 
each  border  at  the  appropriate  territorial  level  and  shall  include  eligible  territorial 
units  belonging  to  one  or  more  Member  States  and  one  or  more  partner  countries 
and/or the Russian Federation. 

Joint operational programmes for sea basins shall be multilateral, established at the 
appropriate territorial level and include eligible territorial units facing a common sea 
basin  belonging  to  several  participating  countries,  including  at  least  one  Member 
State  and  one  partner  country  and/or  the  Russian  Federation.  They  may  include 
bilateral  activities  supporting  cooperation  between  one  Member  State  and  one 
partner country and/or the Russian Federation. 

Within one year of approval of the programming document referred to in Article 9, 
the  participating  countries  shall  jointly  submit  proposals  for  joint  operational 
programmes to the Commission. The Commission shall adopt each joint operational 
programme  after  assessing  its  consistency  with  this  regulation,  the  programming 
document and the implementing rules. 

Regions in countries other than partner countries, the Russian Federation or Member 
States, which are adjoining to eligible regions as defined in Article 8(1) (a) and (b) or 
face a common sea basin where a joint operational programme is being established 
may  be  covered  by  a  joint  operational  programme  and  benefit  from  Union  support 
under the conditions set out in the programming document referred to in Article 9. 

The Commission and the participating countries shall take the appropriate measures 
to  ensure  that  sea  basin  programmes  established  under  this  Regulation  and 
transnational  co-operation  programmes  established  under  the  Regulation  (EU)  No 
[….]  and  that  have  a  partially  overlapping  geographical  coverage  will  be  fully 
complementary and mutually re-enforcing.  

Joint  operational  programmes  may  be  revised  at  the  initiative  of  the  participating 
countries or the Commission for reasons such as: 

- 

- 

- 

changes in cooperation priorities, socio-economic developments,  

results  of  implementing  the  measures  concerned  and  those  produced  by  the 
monitoring and evaluation process,  

the need to adjust the amounts of available funds and reallocate resources. 

EN 

22 

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8. 

9. 

10. 

11. 

12. 

Following  adoption  of  the  joint  operational  programmes,  the  Commission  shall 
conclude  a  financing  agreement  with  the  partner  countries  and/or  the  Russian 
Federation.  The  financing  agreement  shall  include  the  legal  provisions  necessary  to 
implement  the  joint  operational  programme  and  may  also  be  signed  by  the  other 
participating countries and by the Managing Authority referred to in Article 12(2)(c).  

Where necessary, a memorandum of understanding shall be concluded between the 
participating countries and the Managing Authority to set out the countries' specific 
financial responsibilities. 

A  joint  operational  programme  involving  more  than  one  partner  country  is 
established  if  at  least  one  partner  country  signs  the  financing  agreement.  Other 
partner  countries  covered  by  an  established  programme  can  join  the  programme  at 
any time by signing the financing agreement.  

If  a  participating  country  undertakes  to  jointly  co-finance  a  programme,  the  joint 
operational  programme  shall  clarify  the  arrangements  for  providing,  using  and 
monitoring  the  co-financing.  The  related  financing  agreement  shall  be  signed  by  all 
participating countries.  

Joint operational programmes may also provide for a financial contribution from and 
to  instruments  with  which  grants  could  be  combined,  subject  to  the  rules  of  these 
instruments, provided that this contributes to achieving the programmes’ priorities. 

Following  the  principle  of  partnership,  participating  countries  shall  jointly  select 
actions for Union support that are consistent with the priorities and measures of the 
joint operational programme. 

13. 

In specific and duly justified cases, where: 

(a) a joint operational programme cannot be submitted owing to problems arising in 
relations  between  participating  countries  or  between  the  European  Union  and  a 
partner country, 

or 

(b) by 30 June 2017, at the latest, the participating countries have not yet submitted 
to the Commission a joint operational programme, 

or 

(c) none of the partner countries covered by the programme have signed the relevant 
financing agreement by the end of the year following the adoption of the programme,  

the Commission, following consultations with the Member State(s) concerned, shall 
take  the  necessary  steps  to  allow  the  Member  State(s)  concerned  to  use  the 
contribution from the European Regional Development Fund to the joint operational 
programme pursuant to Article 4(7) and (8) of Regulation (EU) No [...] . 

14. 

Budget commitments for CBC actions or programmes extending over more than one 
financial year may be broken down over several years into annual instalments. 

EN 

23 

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1. 

2. 

3. 

4. 

1. 

2. 

Article 11 

Management of joint operational programmes 

Joint  operational  programmes  shall,  in  principle,  be  implemented  in  shared 
management  with  Member  States.  Participating  countries  may  also  propose 
implementation  in  indirect  management,  by  an  entity  listed  in  the  Financial 
Regulation  and  in  accordance  with  the  Implementing  Rules  referred  to  in  Article 
12(2). 

The  Commission  shall  satisfy  itself  on  the  basis  of  available  information  that  the 
Member  State  in  case  of  shared  management,  or  the  partner  country  or  the 
international  organisation  in  case  of  indirect  management,  have  set  up  and  operate 
management  and  control  systems  that  comply  with  the  Financial  Regulation,  this 
Regulation, and its implementing rules referred to in Article 12(2). 

Member  States,  partner  countries  and  international  organisations  concerned  shall 
ensure the effective functioning of their management and control system, the legality 
and regularity of the underlying transactions and the respect of the principle of sound 
financial management. They shall be responsible for the management and control of 
the programmes. 

The  Commission  may  require  the  Member  State  or  the  partner  country  or  the 
international  organisation  concerned  to  examine  a  complaint  submitted  to  the 
Commission  concerning  the  selection  or  implementation  of  operations  supported 
under this Title or the functioning of the management and control system. 

In  order  to  allow  the  joint  operational  programmes  to  prepare  adequately  for 
implementation,  expenditure  incurred  after  the  submission  of  the  joint  operational 
programmes to the Commission shall be eligible at the earliest from 1 January 2014. 

Where  eligibility  is  restricted  in  accordance  with  Article  8(7)  of  the  Common 
Implementing  Regulation,  the  entity  referred  to  in  paragraph  1,  which  may  launch 
calls for proposals and tenders, is entitled in such case to accept as eligible tenderers, 
applicants  and  candidates  from  non  eligible  countries,  or  goods  from  non  eligible 
origin, in accordance with Article 9(3) of the Common Implementing Regulation. 

Article 12 

Implementing rules for Cross Border Cooperation 

Implementing  rules  laying  down  specific  provisions  for  the  implementation  of  this 
Title shall be adopted through a delegated act in accordance with Article 14.  

Matters covered by the Implementing Rules shall include provisions on: 

(a) 

the rate and methods of co-financing;  

(b) 

the preparation, modification and closure of joint operational programmes; 

EN 

24 

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(c) 

the  role  and  function  of  the  programme  structures:  Joint  Monitoring 
Committee,  Managing  Authority  and  its  Joint  Technical  Secretariat,  Joint 
Selection  committees, 
identification, 
accountability  and  responsibility,  description  of  Management  and  Control 
Systems, and  conditions on the  technical and financial management of Union 
support, including eligibility of expenditure; 

their  standing,  effective 

including 

(d) 

recovery procedures; the monitoring and evaluation;  

(e) 

the visibility and information activities 

(f) 

shared and indirect management as referred to in Article 6(2) of the Common 
Implementing Regulation. 

Title IV. FINAL PROVISIONS 

Article 13 

Updating of the Annex 

The  list  of  beneficiary  countries  in  the  Annex  to  this  Regulation  may  be  updated  following 
political  decisions  made  by  the  Council  on  the  scope  of  the  Neighbourhood  policy.  A 
modification of the Annex shall be adopted through a delegated act in accordance with Article 
14. 

Article 14 

Exercise of the delegation 

1. 

2. 

3. 

4. 

The delegation of powers referred to in Article 12 and 13 shall be conferred for the 
period of validity of this Regulation. 

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

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

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

EN 

25 

   EN 

 
 
 
 
 
Article 15 

Committee 

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

Article 16  

Participation by a third country not listed in the Annex 

1. 

In  duly  justified  circumstances  and  to  ensure  the  coherence  and  effectiveness  of 
Union financing or to foster regional or trans-regional cooperation, the Commission 
may  decide  to  extend  the  eligibility  of  actions  to  countries,  territories  and  regions 
which otherwise would not be eligible for financing. 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.  

2. 

Provision may be made for this possibility in the programming documents referred to 
in Article 7. 

Article 17 

Suspension of Union support 

Without prejudice to  the provisions on  the suspension of aid in partnership and cooperation 
agreements  and  association  agreements  with  partner  countries  and  regions,  where  a  partner 
country fails  to  observe the  principles  of democracy, the rule of  law  and  respect  for human 
rights  and  fundamental  freedoms,  the  Union  shall  invite  the  country  concerned  to  hold 
consultations  in  view  of  finding  a  solution  acceptable  to  both  parties,  except  in  cases  of 
special  urgency.  Where  consultation  with  the  country  concerned  does  not  lead  to  a  solution 
acceptable  to  both  parties,  or  if  consultations  are  refused  or  in  case  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 
support. 

Article 18 

Financial reference amount 

1. 

2. 

The  financial  envelope  available  for  implementing  this  Regulation  over  the  period 
2014  to  2020  shall  be  EUR 18 182 300 000  (current  prices).  Up  to  5%  of  the 
financial  envelope  shall  be  allocated  to  the  Cross-Border  Cooperation  programmes 
referred to in Article 6(1) (c). 

Annual  appropriations  shall  be  authorized  by  the  budgetary  authority  within  the 
limits of the financial framework. 

EN 

26 

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3. 

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

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

Article 19  

European External Action Service 

The  application  of  this  Regulation  shall  be  in  accordance  with  Council  Decision  (EU)  No 
2010/427/EU, establishing the organisation and functioning of the European External Action 
Service. 

Article 20  

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. It shall apply from 1 January 2014. 

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

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

27 

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Partner countries referred to in Article 1 

ANNEX 

Algeria 

Armenia 

Azerbaijan 

Belarus 

Egypt 

Georgia 

Israel 

Jordan 

Lebanon 

Libya 

The Republic of Moldova 

Morocco 

occupied Palestinian territory (oPt)  

Syria 

Tunisia 

Ukraine 

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LEGISLATIVE FINANCIAL STATEMENT FOR 

THE EUROPEAN NEIGHBOURHOOD INSTRUMENT 

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 

Proposal  for  a  Regulation  of  the  European  Parliament  and  of  the  Council  (EC) 
N° XXX establishing an European Neighbourhood Instrument (ENI); 

1.2. 

Policy area(s) concerned in the ABM/ABB structure19  

Title 19: External Relations 

Activity 19 08 : European Neighbourhood Policy Instrument and relations with Russia 

The  title  of  this  budget  chapter  19  08  corresponds  to  the  current  structure  of  the  financial 
instruments 2007-2013. It is proposed to keep the same activity 19 08 but to modify the title of 
this chapter for the period 2014-2020 as follows: 

19 08 : European Neighbourhood Instrument  

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

(cid:133) The proposal/initiative relates to a new action following a pilot project/preparatory action20  

(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 

Europe in the World: pulling our weight on the global stage 

1.4.2. 

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

The  European  Neighbourhood  Policy  aims  at  establishing  an  area  of  prosperity  and  good 
neighbourliness  at  the  EU’s  borders,  notably  through  an  enhanced  political  association,  economic 
integration and close cooperation in a number of sectors. In the period 2014-2020 these objectives will 
continue to be supported by the EU through a  dedicated  financial tool, the European Neighbourhood 
Instrument (ENI) that will replace the European Neighbourhood and Partnership Instrument established 
in 2006. The ENI will provide the bulk of funding from the EU budget to the partners.  

19 
20 

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

EN 

30 

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Community Support under this Regulation shall promote enhanced stronger political cooperation and 
progressive  economic  integration  between  the  European  Union  and  the  partner  countries  and,  in 
particular,  the  implementation  of  partnership  and  cooperation  agreements,  association  agreements  or 
other existing and future agreements, as well as joint agreed Action Plans. 

Union support should target in particular: 

a)  promotion  of  human  rights  and  fundamental  freedoms,  the  rule  of  law,  principles  of  equality, 
establish  deep  and  sustainable  democracy,  promote  good  governance  and  developing  a  thriving  civil 
society including social partners;  

b) achieving progressive integration into Union the EU internal market and enhanced sector and cross-
sectoral co-operation, including through legislative approximation and regulatory convergence towards 
Union and other relevant international standards, related institution building and investments, notably 
in interconnections; 

c)  creating  the  conditions  for  well  managed  mobility  of  people  and  for  multi-level  people-to-people 
contacts; 

d)  sustainable  and  inclusive  development  in  all  aspects,  poverty  reduction,  job-creation,  including 
through  private-sector  development;  promotion  of  internal  economic,  social  and  territorial  cohesion 
,rural development, climate action and disaster resilience; 

e) confidence building and other measures contributing to security and the prevention and settlement of 
conflicts; 

f) sub-regional, regional and Neighbourhood wide collaboration as well as Cross-Border-Cooperation.  

Union support may also be used in other areas when this is consistent with the overall objectives of the 
European Neighbourhood Policy. 

ABM/ABB activity (ies) concerned 

Activity 19.08 to be re-titled as follows: European Neighbourhood Instrument  

1.4.3.  Expected result(s) and impact 

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

Background 

Article  8  of  the  Treaty  of  the  European  Union  and  the  new  ENP  vision  of  a  closer,  democratic, 
prosperous and stable Neighbourhood, with each partner country reaping the benefits of a tailored and 
differentiated approach, call for adapting the future financial Instrument for the Neighbourhood to the 
increased  level  of  ambition  of  the  renewed  ENP.  The  more  so  as  implementing  such  a  vision  is  not 
without  challenges  for  the  partners  that  have  to  undertake  difficult  and  costly  reforms  before  the 
benefits become fully visible.  

The  future  ENI  should  notably  target  reaching  the  main  objectives  of  the  new  ENP  vision  and 
addressing the specific problems and challenges identified in the past.  

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The  Communication  “A  new  response  to  a  changing  Neighbourhood”  fleshes  out  the  approaches 
towards  Eastern  Europe  and  the  Southern  Caucasus  through  the  continued  implementation  of  the 
Eastern Partnership and towards the Southern Mediterranean, in the context of the new “ Partnership 
for Democracy and shared Prosperity”.  

With the offer of a “Partnership for Democracy and shared Prosperity”, in particular, the EU seeks to 
support  the  democratic  transformation  initiated  in  Egypt  and  Tunisia,  and  that  may  extend  to  other 
countries of the Southern Mediterranean. 

The  Strategic  Review  of  the  European  Neighbourhood  Policy  (ENP)  that  was  undertaken  last  year 
identified  areas  where  the  policy  can  be  considerably  strengthened.  The  transition  processes  in  the 
Southern Mediterranean and the strong aspirations that the people of these countries have expressed for 
political and economic change make the EU’s support even more crucial than in the past, and point to 
areas where EU and partner countries can and should do better. Equally, the EU remains committed to 
durably  supporting  the  democratisation  and  reform  processes  in  the  entire  Neighbourhood,  East  and 
South. 

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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. Detailed  indicators for  monitoring  the  implementation  will  be fixed  at  that  moment, to 
accurately measure progress towards policy objectives, having in mind the particularities of the action 
in  question.  They  will  draw  on  the  Annual  Progress  Report  on  the  implementation  of  ENP  Action 
Plans, on statistical data, and/or evaluation by independent bodies whenever available, as follows:  

Increased  compliance  with  Human  Rights  and  Democratic  Standards  will  be  measured  using 
a. 
data and statistics provided by NGOs, UN and regional bodies on: freedom of association, expression 
and assembly, free press and media; adequately monitored democratic and credible elections; level of 
corruption; more independent and efficient judiciary; better democratic oversight on security sector. It 
is  recalled  that  no  official  indicators  are  available  concerning  Human  Right  issues.  However, 
“rankings”  produced  by  a  host  of  organisation  contribute  to  provide  a  useful  assessment  of  the 
situation, with higher rankings (year on year) usually associated to progress in a specific field; 

Increased  integration  in  the  EU  internal  market  will  be  measured,  among  others,  by  the 
b. 
variation  of  trade  flows  in  relation  to  baseline  data  in  year  n=0  (Eurostat  figures);  by  progress  in 
regulatory approximation to EU norms and standards as measured in relation to available baseline data 
in year “n=0” and, in a very global fashion, by the number of countries having established a DCFTA; 

c 
Enhanced  mobility  linked  to  better  border  and  migration  management,  progress  towards 
establishing Mobility Partnerships, visa facilitation and visa liberalisation agreements will be measured 
using available statistics (Eurostat and/or other reliable institutions), gauging tourism flows, migration 
flows, academic/student flows in year “n” and comparing these to baseline data in year “n=0”; 

d. 
Reduction  of  internal  economic  disparities;  Increased  employment;  Development  of  SMEs: 
policies,  legislation;  Enhanced  vocational  education  and  training;  Level  of  wealth  of  farming 
communities and Increased food security will be measured using data coming from Eurostat, OECD, 
WB, UNDP and official statistics. They will include periodically updated employment data (numbers, 
sectors,  age,  gender),  SME  numbers  (creation/closure  of  SME’s),  education  numbers,  wealth 
distribution and compare these to baseline data in year “n=0”. Particular attention will be given, in this 
context, to the measurement of the GINI coefficient (to evaluate the reduction or increase of income 
disparities);  

Growing  confidence  building  in  conflict  area;  progress  in  the  settlement  of  existing  conflicts 

e. 
will be evaluated through elements provided in the Progress Reports; 

Increased  co-operation  among  partner  countries  along  border  regions,  enhanced  regional 
f. 
dialogue,  number  of  cooperative  responses  to  regional  challenges  in  different  areas,  number  of 
common positions and joint activities; social and economic development of border areas. 

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1.5. 

Grounds for the proposal/initiative 

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

Policy Vision and Medium term goals 

The  long-term  vision  underpinning  the  ENP  is  a  Neighbourhood  in  which  each  partner  country 
develops its links with the EU as far as its own aspirations, needs and capacities allow. Politically this 
includes an offer for closer co-operation with the EU, including more joint initiatives in international 
fora  on  global  issues  of  common  interest.  Economically,  the  EU  is  also  open  to  closer  economic 
integration, leading to progressive economic integration in the EU internal market. It also supports the 
acceleration  of  inclusive,  sustainable  growth  of  our  neighbours,  which  should  help  them  to  become 
more competitive, more energy efficient, create decent jobs and to reach the Millennium Development 
Goals and to implement a low carbon development strategy in order to contribute their share in fighting 
climate change . The EU should mobilise the full range of its policies according to mutual needs and 
interests and to each country’s reform and democratisation commitments.  

The goal is increased mutual commitment to the political and economic well-being of our citizens —
both  Europe’s  and  neighbouring  countries’—  as  the  best  guarantee  for  our  common  stability  and 
prosperity. Such a vision is not without challenges. For partner countries the necessary reforms involve 
substantial costs and efforts before the benefits can be reaped. On the EU side, it is important not to 
jeopardise the smooth running of the internal market and ensure that mobility takes place in a secure 
environment.  

In the coming years partner countries taking decisive steps towards political and economic reforms can 
expect  to  conclude  an  Association  Agreement  under  the  Eastern  Partnership  (East)  or  enter  in  a 
Partnership for Democracy and Shared Prosperity (South). This will be accompanied by enhanced 
mobility and people to people contacts (e.g. including through the possible establishment of mobility 
partnerships), economic integration through industrial cooperation, SME development, Foreign Direct 
Investment  and  increased  trade  relations  with  the  EU  (e.g.  through  the  establishment  of  Deep  and 
Comprehensive Free Trade Areas and the conclusions of other agreements, e.g. in agriculture, services 
and establishment or Agreements on Conformity Assessment and Acceptance of Industrial products for 
priority  sectors),  deeper  sector  integration  (e.g.  through  the  integration  in  a  pan-European  energy 
market  participation  in  international  carbon  markets  including  preparatory  steps  to  link  with  the  EU 
Emission Trading system, and the participation in EU programmes and agencies in accordance with the 
opening  possibilities  granted  in  each  programmes  and  with  the  general  guidelines  regarding  the 
participation in EU Agencies).  

With  the  offer  of  Partnership  for  Democracy  and  shared  Prosperity21,  in  particular,  the  EU  seeks  to 
support  the  democratic  transformation  initiated  in  Egypt  and  Tunisia,  and  that  may  extend  to  other 
countries. To pursue with determination the process of democratic transformation these countries need 
support to reform their institutions and restart economic growth. Their population also needs to see that 
the EU is ready to help in this challenging but difficult period of transformation. 

The  ENI  should  be  increasingly  policy-driven  and  provide  for  increased  differentiation,  more 
flexibility,  stricter  conditionality  and  incentives  for  best  performers,  reflecting  the  ambition  of  each 

21 

COM(2011) 200, 8.3.2011 

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partnership  (e.g.  DCFTA  negotiations).  EU  assistance  could  also  be  increasingly  implemented  by 
devolving  it  to  partner  countries  provided  that  the  financial  rules  of  the  Union  are  respected  and  EU 
financial interests protected. 

Funding 

The level of funding of the new ENI Instrument reflects the ambitions of the revised ENP. Thus, it is 
proposed that an amount of EUR 18 182 300 000, at current prices, is allocated to the ENI from 2014 to 
2020.  

Differentiation 

The level of EU support will depend on progress in building and consolidating democracy and respect 
for the rule of law as well as the pace of reforms. The more and the faster a country progresses in its 
internal reforms, the more support it will receive from the EU. This enhanced support should come in 
various forms, including increased funding for social and economic development, larger programmes 
for institution-building, greater market access, increased EIB financing in support of investments; and 
greater  facilitation  of  mobility.  These  preferential  commitments  will  be  tailored  to  the  needs  of  each 
country and to the regional context. They will recognise that meaningful reform comes with significant 
upfront costs. For countries where reform has not taken place, the EU will reconsider or even reduce 
funding. 

1.5.2.  Added value of EU involvement 

The  proposal  should  be  seen  in  the  overall  context  of  a  renewed  European  Neighbourhood  Policy 
offering to partner countries closer political co-operation and deeper economic integration in line with 
Art.8  of  the  Lisbon  treaty.  It  rests  on  sharing  with  our  neighbours  the  experiences  of  European 
integration and progressively involving them into EU policies.  

In  Neighbourhood  countries,  where  alignment  to  EU  rules  and  standards  is  one  of  the  key  policy 
objectives, the EU is best placed to deliver this assistance. Some specific support can only be provided 
at EU level, for example to promote progressive economic integration in the EU internal market, access 
to  the  Schengen  space  or  participation  in  EU  programmes.  Thus  the  EU  is  the  leading  cooperation 
partner in most of these countries, a role widely recognised by Member States, IFIs and other donors. 
Helping the EU neighbours to align with EU policies, rules and standards is a key driver for reforms in 
the ENP partner countries.  

1.5.3.  Lessons learned from similar experiences in the past 

A  number  of  issues  have  emerged  since  the  launch  of  the  ENPI,  related  directly  or  indirectly  to  the 
design  of  the  Instrument.  A  long  programming  process  and  incomplete  alignment  of  the  financial 
assistance  with  the  policy  and  priorities  specified  in  the  ENP  Action  Plans  and  other  relevant 
documents have often been pointed at as major challenges to be addressed in the future. Coordination 
and coherence with interventions under other instruments are important issues. Provisions allowing for 
joint activities with partners/regions outside the geographical scope of the ENPI have been instrumental 
to implement a number of activities and should be maintained. 

ENPI  assistance  has  been  used  to  leverage  loans  from  financial  institutions  to  finance  infrastructure 
investment projects and to support the private sector through loans and risk capital operations. This is 

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done with the European Investment Bank in the context of the FEMIP and with the EIB, the European 
Bank  for  Reconstruction  and  Development  (EBRD)  and  other  European  financial  institutions  in  the 
context of the NIF. The cooperation with IFIs should be further enhanced through the use of innovative 
tools, notably in the field of guarantees. The use of revolving funds could help strengthen the impact of 
this cooperation. 

Horizontal issues that are of much relevance to the ENPI include flexibility and ability to react to crisis 
and unforeseen situations. In the Neighbourhood, addressing protracted crisis remains one of the key 
challenges.  Any  solution  within  the  ENPI  will  need  to  be  coherent  with  the  political  choices  on  the 
future  Instrument  for  Stability  (notably  its  scope  and  size)  and  its  relationship  with  geographic 
instruments. The current mechanisms for rapid interventions in case of crises have functioned well and 
should be further strengthened. 

Consideration  needs  to  be  given  to  how  monitoring  can  be  enhanced,  including  with  regard  to 
strengthening  the  link  between  policy  dialogues  and  assistance  programmes  (including  technical 
assistance). It is furthermore important that the ambition of the policy is matched with adequate tools to 
implement  it.  Consideration  should  also  be  given  to  how  the  technical  assistance/TAIEX  can  be 
developed, possibly through extending the scope of the mechanism to include elements such as training 
and case studies. Furthermore, cooperation in the field of statistics should be enhanced.  

Along with other policy objectives such as a well-functioning public administration and an independent 
judiciary safeguarding the enforceability of contracts, an effective competition policy creates a business 
environment facilitating economic growth.  

Globally, regional cooperation has proved its added value notably in fostering regional synergies and 
networks in crucial areas of common concern such as environment, climate change, energy, sustainable 
development, Small and Medium Enterprise development, media and freedom of expression, research, 
ICT and youth mobility. Regional cooperation has also proved very effective when being conducted at 
intraregional  level  (South  and  East):  a  number  of  programmes  are  “twins”  (civil  protection,  private 
investments promotion) with a Southern and an Eastern focus. The CBC has also played an important 
role, and the mechanism of split commitments used with CBC programmes has proved useful. 

1.5.4.  Coherence and possible synergy with other relevant instruments 

External policies/instruments 

The  Lisbon  Treaty  defines  a  new  institutional  framework  for  the  Union’s  external  action.  This  is 
intended  to  promote  the  coherence  of  EU  stance  and  enhance  the  EU  standing  on  the  international 
scene.  The  EU  needs  to  equip  itself  with  a  long-term  political  strategy  for  external  action  and  an 
appropriate toolbox that should pursue the following strategic objectives: 

Promoting and defending EU values abroad. Through the European Neighbourhood Instrument the EU 
will  promote  transitional  and  democratic  processes  and  strengthening  of  civil  society  around  its 
borders;  

Projecting  EU  policies  in  support  of  the  EU  2020  agenda  for  smart,  sustainable  and  inclusive  low 
carbon  growth.  With  the  ENI,  the  EU  will  support  addressing  major  global  challenges  and  assist 
relevant reforms benefitting both the EU and the partner countries;  

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36 

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Increasing  the  impact  of  EU  development  cooperation,  with  the  primary  aim  of  eradicating  poverty. 
Through the ENI, the EU will assist partner countries in meeting development challenges – e.g. climate 
change - according to their needs, capacities, interests and commitments and the potential for impact. 
The ENI will also help improve EU coordination and Policy Coherence for Development;  

Investing in the long-term prosperity, stability and democracy in the EU Neighbourhood. The aim of 
establishing an area of stability, prosperity and democracy is the primary objective of the ENI and the 
renewed  Neighbourhood  policy.  Priority  will  be  given  to  support  EU  regional  and  bilateral  policies, 
including  thematic  ones,  in  the  wider  Neighbourhood.  The  democratic  transition  processes  in  the 
Southern  Mediterranean  and  their  possible  effects  in  the  wider  region  make  it  necessary  to  better 
support the aspirations of these societies for democratic values and principles and for a more equitable 
distribution  of  the  benefits  of  growth,  whilst  pursuing  the  goals  of  greater  political  cooperation  and 
integration with the neighbours, both in the South and in the East. This includes an increased focus on 
engagement with civil society actors and social partners. 

Improving crisis prevention and resolution. The ENI should allow for an enhanced and more flexible 
support to crisis prevention and resolution in the Neighbourhood. 

Support  to  the  EU  neighbours  through  a  dedicated,  targeted  and  policy-driven  Instrument  endowed 
with financial resources corresponding to the ambitions of the renewed ENP is clearly in line with the 
major priorities of the EU external action. 

ENP  countries  will  continue  to  benefit  from  other  financial  instruments  addressing  specific  policy 
issues  (global  challenges,  Human  Rights,  Nuclear  safety)  or  crisis  situations  (macro-financial 
assistance, Instrument for stability, humanitarian assistance Instruments).  

Internal policies 

Given the objective of the ENP to foster closer integration between the EU and the partner countries, 
provisions for a better coordination of EU internal and external policies in the Neighbourhood should 
be  strengthened,  including  through  closer  cooperation  with  relevant  Commission  services  at  the 
programming stage and, where relevant, use of mechanisms allowing for pooling of funds from internal 
and external headings of the EU budget.  

This could notably apply to areas of cooperation such as infrastructure with cross-border dimensions, in 
particular  transport  and  energy  networks,  the  ICT  sector22  and  other  networked  industries,  as  well  as 
higher education and the environment area given their strong cross-border component. Increased ENI 
support on building capacities in research and innovation would help in underpinning all of the above 
areas  of  cooperation  and  assist  all  partner  countries  in  alignment  with  EU  policies  and  objectives  in 
order to address global and regional challenges. 

Increased  synergies  with  the  EU  internal  policies  and  the related use  of  innovative  financial 
instruments should be sought, on the basis of a coordinated approach to engaging EU budget in such 
instruments. This  could  facilitate pooling  of  resources from  different  headings  of  the  Multiannual 
Financial Framework.  

22 

Deployment  of  ICT  services  and  infrastructures,  impact  of  the  Internet  on  growth,  freedom  and  expression  of 
democratic values can not be underestimated 

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37 

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1.6. 

Duration and financial impact 

(cid:133) Proposal/initiative of limited duration  

– 

– 

– 

– 

– 

x 

x 

Proposal/initiative in effect from …to ….  

Financial impact from … to ….  

X Proposal/initiative of unlimited duration 

Implementation with a start-up period from 2014 to 2020, 

followed by full-scale operation. 

1.7.  Management mode(s) envisaged23  

x Centralised direct management by the Commission  

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

– 

x 

executive agencies  

–  (cid:133) bodies set up by the Communities24  

– 

x 

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  

X Shared management with the Member States  

X Decentralised management with third countries  

X Joint management with international organisations (to be specified) 

The objectives will be pursued through a combination of measures implemented through 
different management modes.  

23 

24 

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 

Specify frequency and conditions. 

The  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  ENI  aid  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): 

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- economic/political instability and or natural disasters in partner countries may lead to difficulties and 
delays in the design and implementation of interventions;  

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

geographically 

- 
approximately  many 
states/territories/regions) may pose logistical/resource challenges to monitoring - particularly any 'on-
the-spot' follow-up of activities; 

programmes 

(covering 

dispersed 

projects 

and 

-  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).  EuropeAid  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  

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; 

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-  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 

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) 

Role of Committees and sub-committees. 

It  is  expected  that  subcommittees  will  play  an  increasingly  active  role  in  the  control  of  the 
implementation of programmes. 

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 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: 

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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, 
decentralised and shared 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); 

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

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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 EUR 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 EUR 10,2 billion planned for the overall (operational + administrative) commitments by EuropeAid 
on its expenditure portfolio financed by the General Budget of the EU and the European Development 
Fund for 2012.  

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. 

Improvements in the nature and scope of management activities and compliance checks will continue 
to be pursued. However, these activities will continue to be represent a necessary cost to be incurred, to 
effectively  and  efficiently  achieve  the  objectives  of  the  instruments  at  a  minimal  risk  of  non 
compliance  (below  2%  residual  error).  These  costs  are  evaluated  to  be  significantly  less  than  the 
potential losses involved by removing or scaling back internal controls in this high risk area. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

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

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of  
expenditure

Contribution  

Number 
[Description… 
Neighbourhood Instrument ] 

19.08
ENI-European 

DA/NDA 
(25) 

from 
EFTA26 
countries 

from 
candidate 
countries27 

from third 
countries 

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

ENI Instrument 

NDA 

NO 

NO 

NO 

NP 

ENI – Administrative Expenditures 

DA 

NO 

NO 

YES 

NP 

Heading of 
multiannual 
financial 
framework 

4 

5 

• 

New budget lines requested NONE 

Heading of 
multiannual 
financial 
framework 

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure

Contribution  

Number  
[Heading……………………………………..] 

Diff./non-
diff. 

[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 

25 
26 
27 

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

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3.2 

Estimated impact on expenditures  

3.2.1 

Summary of estimated impact on expenditures 

Heading of multiannual financial 
framework:  

4 

External Relations  

EUR million (to 3 decimal places) 

DG: <…….> 

Year 
N28 
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 

(cid:121) Operational appropriations  

ENI-European  Neighbourhood 
(19.08)  

Instrument 

Commitments 

Payments 

(1) 

(2) 

2.181,0
76 
1.852,5
76 

2.347,3
02 
2.001,9
02 

2.408,9
52 
2.051,2
52 

2.501,3
95  
2.170,5
95  

2.637,7
36 
2.249,8
36 

2.806,9
52 
2.349,2
52 

2.952,8
83 
2.498,5
83 

17.836,296 

15.173,996 

Appropriations 
of 
 from the envelop of specific programs29  
Number of budget line 19.01.04.02 

an 

administrative 

nature 

financed 

TOTAL appropriations 
for DG <…….> 

Commitments 

Payments 

(3) 

=1+1a 
+3 

=2+2a 

+3 

47,424 

48,098 

48,748 

49,405  

50,164 

50,748 

51,417 

346,004 

2.228,5
00 

2.395,4
00 

2.457,7
00 

2.550,8
00  

2.687,9
00 

2.857,7
00 

3.004,3
00 

1.900,0
00 

2.050,0
00 

2.100,0
00 

2.220,0
00  

2.300,0
00 

2.400,0
00 

2.550,0
00 

18.182,300 

15.520,000 

28 
29 

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. 

45 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
(cid:121) TOTAL operational appropriations  

Commitments 

Payments 

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

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

Commitments 

=4+ 6 

Payments 

=5+ 6 

2.181,0
76 
1.852,5
76 

2.347,3
02 
2.001,9
02 

2.408,9
52 
2.051,2
52 

2.501,3
95 
2.170,5
95 

2.637,7
36 
2.249,8
36 

2.806,9
52 
2.349,2
52 

2.952,8
83 
2.498,5
83 

(4) 

(5) 

(6) 

47,424 
2.228,5
00 

48,098 
2.395,4
00 

48,748 
2.457,7
00 

49,405 
2.550,8
00 

50,164 
2.687,9
00 

50,748 
2.857,7
00 

51,417 
3.004,3
00 

17.836,296 

15.173,996 

346,004 
18.182,300 

1.900,0
00 

2.050,0
00 

2.100,0
00 

2.220,0
00 

2.300,0
00 

2.400,0
00 

2.550,0
00 

15.520,000 

EN 

46 

EN 

 
  
 
Heading of multiannual financial 
framework:  

5 

" Administrative expenditure " 

DG: <…….> 

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

37,036 

36,662 

36,289 

35,919 

35,919 

35,919 

35,919 

2,244 

2,192 

2,173 

2,155 

2,155 

2,155 

2,155 

253,662 

15,227 

TOTAL DG <…….> 

Appropriations  

39,279 

38,854 

38,462 

38,073 

38,073 

38,073 

38,073 

268,889 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total 
= Total payments) 

commitments 

39,279 

38,854 

38,462 

38,073 

38,073 

38,073 

38,073 

268,889 

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) 

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

Commitments 

Payments 

2.267,7
79 

2.434,2
54 

2.496,1
62 

2.588,8
73 

2.725,9
73 

2.895,7
73 

3.042,3
73 

1.939,2

2.088,8

2.138,4

2.258,0

2.338,0

2.438,0

2.588,0

18.451,189 

15.788,889 

EN 

47 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
79 

54 

62 

73 

73 

73 

73 

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: 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

TOTAL 

OUTPUTS 

Commitment appropriations in EUR million (to 3 decimal places) 

t
s
o
C

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 

Indicate 
objectives and 
outputs  

(cid:216) 

Type 
of 
output
30 

Avera
ge 
cost  
of the 
ouput 

Geographic programmes31 

2072,023 

2229,937

2288,504

2376,325 

2505,849

2666,605

2805,238

16944,481

Cross-Border Cooperation 
programmes32… 

109,054 

117,365

120,448

125,070 

131,887

140,348

147,644

891,815

TOTAL COST 

2181,076 

2347,302

2408,952

2501,395 

2637,736

2806,952

2952,883

17836,296

30 
31 
32 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 
This split is indicative. Programming and allocation of funds under this regulation will be guided by the “more for more” principle.  
Similar amounts will be made available under the ERDF regulation to support CBC programmes 

EN 

48 

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 

X 
appropriations, as explained below: 

proposal/initiative 

requires 

the 

use 

of 

administrative 

EUR million (to 3 decimal places) 

Year 
N 33 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 534 
of the multiannual 
financial framework  

Human resources  

Other 
expenditure  
of  an  administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

TOTAL 

37,036 

36,662 

36,289 

35,919 

35,919 

35,919 

35,919 

253,662 

2,244 

2,192 

2,173 

2,155 

2,155 

2,155 

2,155 

15,227 

39,279 

38,854 

38,462 

38,073 

38,073 

38,073 

38,073 

268,889 

46,898 

47,534 

48,170 

48,806 

49,441 

50,077 

50,713 

341,639 

0,525 

0,564 

0,578 

0,600 

0,723 

0,671 

0,705 

4,366 

47,424 

48,098 

48,748 

49,405 

50,164 

50,748 

51,417 

346,004 

86,703 

86,952 

87,211 

87,479 

88,238 

88,821 

89,491 

614,894 

3.2.3.2  Estimated requirements of human resources  

–  (cid:133) 

The proposal/initiative does not require the use of human resources  

33 
34 

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 

49 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
– 

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

X 
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) 

137,8 

136,4 

135,1 

133,7 

133,7 

133,7 

133,7 

XX 01 01 02 (Delegations) 

78,4 

77,6 

76,8 

76,0 

76,0 

76,0 

76,0 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

(cid:121) External personnel (in Full Time Equivalent unit: FTE)35 

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 36 

- at 
Headquarters37 

9,3 

9,2 

9,1 

9,0 

9,0 

9,0 

9,0 

93,3 

91,4 

89,6 

87,9 

86,2 

84,5 

82,8 

- in delegations  

468,1 

475,3 

482,4 

489,6 

496,7 

503,9 

511,0 

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

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

Other budget lines (specify) 

TOTAL 

786,9 

790,0 

793,1 

796,2 

801,6 

807,1 

812,6 

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. 

35 

36 
37 

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 

50 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.4  Compatibility with the multiannual financial framework 2014-2020  

– 

Proposal/initiative  is  compatible  the  multiannual  financial  framework 

X 
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 framework38. 

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  

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

Cofinancing  is  allowed  under  the  initiative  but  no  specific  figures  are 
set. 

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) 

Specify  the  co-financing 
body  

TOTAL 
cofinanced  

appropriations 

N/A 

N/A 

Total 

N/A 

N/A 

38 

See points 19 and 24 of the Interinstitutional Agreement. 

EN 

51 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.3 

Estimated impact on revenue  

– 

– 

(cid:58)  Proposal/initiative has no financial impact on revenue. 

NOTE: Budget revenues of marginal amount (in relation to the overall size of 
the  Instrument),  may  be  generated  as  a  result  of  reflows  on  risk  capital 
operations undertaken in cooperation with IFI’s. 

- 

(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/initiative39 

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. 

39 

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 

52 

   EN