Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 230/2014 of the European Parliament and of the Council of 11 March 2014 establishing an instrument contributing to stability and peace
Date: 2016-07-05
Institutions: European Commission, Service for Foreign Policy Instruments
Subjects: common security and defence policy, conflict prevention, development aid, foreign policy, international cooperation, international security, military cooperation, peacekeeping

EN 

   EN 

   EUROPEAN COMMISSION  Strasbourg, 5.7.2016  COM(2016) 447 final/2 2016/0207 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 230/2014 of the European Parliament and of the Council of 11 March 2014 establishing an instrument contributing to stability and peace {SWD(2016) 222 final} {SWD(2016) 225 final}  
 
 
EXPLANATORY MEMORANDUM 

1. 

CONTEXT OF THE PROPOSAL 

This  Explanatory  Memorandum  concerns  a  legislative  proposal  for  a  Regulation  amending 
Regulation  (EU)  No 230/2014  of  the  European  Parliament  and  of  the  Council  of  11  March 
2014 establishing an instrument contributing to stability and peace. 

The  legislative  proposal  aims  at  inserting  a  new  Article  into  Title  II  of  Regulation  (EU) 
No 230/2014 in order to extend the Union’s assistance under exceptional circumstances to be 
used  to  build  the  capacity  of  military  actors  in  partner  countries  in  order  to  contribute  to 
sustainable development and in particular the achievement of peaceful and inclusive societies.  

• 

Reasons for and objectives of the proposal 

The  link  between  security  and  development  has  been  recognised  both  at  European  and  at 
international  level.1  The  2005  European Consensus  on Development already recognised this 
link, which is central to maximising the effectiveness of the EU’s external action. Supporting 
partner  countries’  security  systems,  as  part  of  a  broader  reform  process  to  provide  effective 
and accountable security to the State and to individuals, contributes to the EU’s objectives of 
inclusive  and  sustainable  development,  state-building  and  the  rule  of  law.  Human  security 
includes  people-centred,  multi-sectoral,  comprehensive,  context-specific,  and  prevention-
oriented approaches. This is especially the case when it is clear that without security, access to 
the  people  most  at  risk  of  being  left  behind  in  conflict  settings  is  limited,  and  effective 
outcomes of either humanitarian or development work are less likely. 

The adoption of the United Nations’ (UN) 2030 Agenda for Sustainable Development2 and its 
Sustainable Development Goal3 (SDG) 16 on ‘peace and justice’ underlines the importance of 
promoting  peaceful  and  inclusive  societies,  the  provision  of  access  to  justice  for  all,  and 
building  effective,  accountable  institutions  at  all  levels.  SDG  16  emphasises  the  need  to 
strengthen  relevant  national  institutions,  including  through  international  cooperation  for 
building capacity at all levels. In particular in fragile and conflict-affected States, channelling 
investments  in  line  with  development  effectiveness  principles  will  help  to  address  the  root 
causes  of  conflict  and  fragility.  The  EU  supports  the  ‘New  Deal  for  Engagement  in  Fragile 
States’4 and the emphasis it places on the security-development nexus.  

The OECD-DAC5 revised Reporting Directives on official development assistance (ODA) in 
the field of peace and security provide greater clarity and further develop the scope of ODA 
rules for the security sector. They maintain several safeguards, notably the principally civilian 
nature of ODA, although support to the military can be recognised as ODA in exceptional and 
clearly delimitated circumstances.  

1 
2 
3 

4 

5 

For example, World Bank World Development Report: Conflict, Security, and Development, 2011 
http://www.un.org/sustainabledevelopment/sustainable-development-goals/  
Sustainable  Development  Goal  16:  promote  peaceful  and  inclusive  societies  for  sustainable 
development, provide access to justice for all and build effective, accountable and inclusive institutions 
at all levels 
The EU endorsed the New Deal, one of the main building blocks of the 4th High Level Forum on Aid 
Effectiveness in Busan in November 2011 (http://www.pbsbdialogue.org/en/) 
Organisation  for  Economic  Co-operation  and  Development  –  Development  Assistance  Committee, 
February 2016 

EN 

2 

   EN 

 
                                                 
The  Joint  Communication  Capacity  Building  in  support  of  Security  and  Development 
(JOIN(2015) 17 final) analysed how EU support to help build the capacities of partners, and 
thus  contribute 
improved.  The 
to  stability,  security  and  development,  could  be 
Communication  identified  gaps  in  the  EU’s  ability  to  support  building  the  capacities  of 
partners  in  the  security  sector,  notwithstanding  the  multitude  of  actions,  which  are  already 
supported, including effective civilian administration and civilian oversight over the security 
system.  The  Joint  Communication  concluded,  “there  is  currently  no  EU  budget  instrument 
designed  to  provide  a  comprehensive  financing  to  security  capacity  building  in  partner 
countries, in particular its military component”6.  

Not  addressing  critical  operational  needs  of  partners  hampers  the  achievement  of  essential 
objectives  for  development,  i.e.  to  foster  conditions  for  peace  and  human  security.  The 
improvement of the functioning of military actors and the strengthening of their governance, 
particularly  in  fragile  contexts  and  countries  emerging  from  conflict,  contributes  to  peace, 
human security, and stability,  and thereby to  the achievement  of the SDGs. The inability to 
finance  capacity  building  in  the  security  sector  (both  equipment  and  training)  impinges  on 
partners’ ability to fulfil their development needs.  

The  specific  objectives  of  the  proposal  are  to:  i) contribute  to  improving  the  capacity  of 
partner countries to prevent and manage crises by themselves; ii) contribute to improving the 
effectiveness  of  the  Union’s  development  actions  by  working  with  all  security  actors, 
including  the  military,  through  the  delivery  of  capacity  building  in  support  of  security  and 
development by the EU, as soon as possible, flexibly and comprehensively; and iii) contribute 
to  ensuring  the  respect  of  the  rule  of  law,  good  governance  as  well  as  enhanced  civilian 
control and oversight over the military in third countries. 

• 

Consistency with other Union policies 

The present initiative fits with the ambition to bring together EU tools on major challenges, as 
outlined in the Joint Communication The EU’s comprehensive approach to external conflict 
and crisis7 and the subsequent Council conclusions8.  

With regard to the Union’s Common Foreign and Security Policy (CFSP),  both civilian and 
military  Common  Security  and  Defence  Policy  (CSDP)  missions  and  operations  (and  in 
particular  training  missions)  are  an  essential  component  within  the  EU’s  comprehensive 
approach  to  crisis  management  in  third  countries9  and  fulfil  the  training  pillar  of  capacity 
building  in  support  of  security  and  development  for  both  defence  and  civilian  security 
personnel.  

Resources  for  EU  CSDP  military  operations  are  financed  by  the  participating  EU  Member 
States,  and  through  the  Athena  mechanism10  designed  to  manage  the  financing  of  common 
costs  relating  to  EU  military  operations  under  the  CSDP.  These  costs  concern,  inter  alia, 

6 
7 
8 
9 
10 

JOIN(2015) 17, p. 8.  
JOIN(2013) 30 final of 11 December 2013 
Council conclusions 9644/14 of 12 May 2014 
JOIN(2013) 30 final of 11 December 2013 
Article  41  TEU  sets  the  principles  for  the  financing  of  EU  civilian  and  military  crisis  management 
operations.  The  common  costs  of  such  operations  are  currently  covered  by  Council  Decision  (CFSP) 
2015/528 of 27 March 2015 establishing a mechanism to administer the financing of the common costs 
of European Union operations having military or defence implications (Athena) and repealing Decision 
2011/871/CFSP, OJ L 84, 28.03.2015 

EN 

3 

   EN 

 
                                                 
headquarters’ implementation and running costs, infrastructure, logistics and mission support, 
but not the costs incurred by a partner country supported through a mission or operation. 

Outside  the  general  budget  of  the  Union,  the  European  Development  Fund  (EDF)  provides 
financial resources to implement the EU’s development cooperation policy with the African, 
Caribbean and Pacific (ACP) group of states under the Cotonou Partnership Agreement.11 The 
African Peace Facility12 (APF) was set up in 2003 under the EDF and is to date the most far-
reaching  instrument  to  address  the  security-development  nexus,  also  providing  support  to 
military activities. Nonetheless, the APF is subject to a number of limitations, notably in its 
geographical and exclusively regional coverage, which prevents the global use of this Facility 
at national level. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The legal basis of this legislative proposal is Article 209(1) and Article 212(2) of the TFEU.  
Considering the broad scope of development cooperation13, the financing of capacity building 
(training and equipment support) in the security sector on the basis of Article 209/212 TFEU 
is  not  per  se  excluded  only  because  of  the  military  nature  of  the  beneficiary.14  Taking  into 
account  the  objectives  of  the  Union’s  development  cooperation,  i.e.  to  contribute  to  the 
pursuit  of  the  sustainable  development  of  developing  countries,  financing  of  the  military  is 
possible  under  exceptional  circumstances  (see  also  at  point  5  below  on  the  detailed 
explanation).  

• 

Subsidiarity and proportionality 

The  proposed  Regulation  complies  with  the  subsidiarity  principle  and  with  the  principle  of 
proportionality as set in Article 5 TEU. 

EU  action  is  necessary  and  justified  both  on  the grounds  of  the  objectives  laid  down  in  the 
Treaty  and  on  the  subsidiarity  principle.  Comprehensive  and  flexible  EU  support  to  the 
security sector would have the added value of allowing short- and longer-term actions to bring 
on  board  all  security  actors  in  a  country,  and  would  allow  for  better  coordination  of  such 
support. Interventions at EU level can better achieve security and stability and act as a driver 
for more effective international efforts around security and development. 

• 

Choice of the instrument 

The proposed legislative proposal takes the form of a Regulation amending an existing legal 
act.  

11 

12 

13 
14 

Partnership Agreement between the members of the African, Caribbean and Pacific Group of States of 
the one part, and the European Community and its Member States of the other part, signed in Cotonou 
on 23.6.2000, revised in Luxembourg on 25.6.2005, revised in Ouagadougou on 22.6.2010 
Article 11 of the Cotonou Partnership Agreement on “Peace building policies, conflict prevention and 
resolution”  and  the  relevant  Council  conclusions  provide  the  legal  basis  for  the  APF;  Decision 
No 3/2003 of the ACP-EC Council of Ministers of 11 December 2003 on the use of resources from the 
long-term development envelope of the 9th EDF for the  creation of a Peace Facility for Africa, OJ L 
345, 31.12.2003 
C-377/12, European Commission v Council (PCA Philippines), paragraph 37 
See also JOIN (2015) 17, p. 7; and above OECD/DAC Reporting Directives in the field of peace and 
security  

EN 

4 

   EN 

 
                                                 
3. 

• 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Stakeholder consultations 

The online public consultation to gather views from the public was launched on 1 April and 
ended  on  27 May  2016.  In  total,  78  responses  were  received,  the  majority  from  private 
citizens. A number of Member States (the Czech Republic, Finland, France, Germany, Italy, 
Luxemburg, the Netherlands, Portugal, and Spain) provided their input to the initiative in the 
form of a non-paper issued on 15 April 2016. 

Overall, the responses indicated a large support of the three main principles underpinning the 
initiative,  namely:  i)  an  effective,  legitimate  and  accountable  security  sector  in  partner 
countries  could  contribute  to  peace,  human  security  and  sustainable  development;  ii)  the 
security  development  nexus  should  be  better  integrated  in  EU  support  strategies  in  order  to 
better  contribute  to  sustainable  development  in  partner  countries,  and  iii)  strengthening  the 
governance  of  military  actors,  particularly  in  fragile  countries  and  countries  emerging  from 
conflict, could lead to stability and the achievement of sustainable development goals. 

• 

Impact assessment 

The  proposed  legislative  proposal  is  supported  by  an  impact  assessment.  The  impact 
assessment  report  examines  different  policy  options  to  meet  the  specific  objectives  and 
assesses options outside the general budget of the Union and within the general budget of the 
Union. 

The  impact  assessment  concludes  that  an  amendment  of  the  Instrument  contributing  to 
Stability and Peace (IcSP) would be, in view of the objectives, the timing, the geographical 
coverage, and flexibility in its implementation as a crisis instrument, the most appropriate and 
effective  short-term  option.  The  impact  assessment  also  explains  that  a  comprehensive 
implementation  of  the  CBSD  initiative  (i.e.  including  support  to  the  military  for  defence-
related  purposes)  would  require  combining  a  budgetary  instrument  (for  development  tasks) 
with another, possibly extra-budgetary, mechanism.  

Fundamental rights 

The  legislative  proposal  will  ensure  that  assistance  measures  under  the  new  provisions  in 
relation to capacity building in support of security and development will be implemented in 
accordance with international law, including international humanitarian law. The Commission 
will monitor the implementation of these assistance measures in order to ensure compliance 
with human rights obligations. 

4. 

BUDGETARY IMPLICATIONS 

In terms of cost, a budget of EUR 100 000 000 over the period 2017-2020 would be required. 
The initiative will be financed through redeployment within Heading IV of the general budget 
of the Union. No additional resources would be mobilised. Implementation will be governed 
by Regulation (EU) No 236/201415. 

15 

Regulation (EU) No 236/2014 of the European Parliament and of the Council of 11 March 2014 laying 
down  common  rules  and  procedures  for  the  implementation  of  the  Union’s  instruments  for  financing 
external actions, OJ L 77, 15.3.2014, p. 95.  

EN 

5 

   EN 

 
 
                                                 
5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

Monitoring and evaluation modalities are laid down in Articles 12 and 13 of Regulation (EU) 
No 236/2014 that applies to all EU external financing instruments, including the IcSP, which 
is the preferred option. Reporting modalities are also foreseen in that Regulation. 

• 

Detailed explanation of the specific provisions of the proposal 

This  section  provides  a  detailed  commentary  illustrating  the  main  provisions  introduced  by 
the  proposed  Regulation  to  amend  Regulation  (EU)  No 230/214  establishing  an  instrument 
contributing to stability and peace. 

(1)  Subject matter and objectives (Article 1, Title I, General Provisions) 

The purpose of the change in Article 1(2) is to include assistance to security actors, including 
military  actors,  within  the  scope  of  the  Regulation.  Assistance  may  be  provided  under  the 
exceptional  circumstances  described  below  (see  point  2)  in  the  context  of  a  wider  security 
sector  report  reform  process  and/or  within  capacity  building  in  support  of  security  and 
development in line with the overarching objective of achieving sustainable development. 

(2)  Capacity building in support of security and development (Article 3a, Title II, 

Types of Union Assistance) 

The proposed Article 3a provides in its first paragraph that Union assistance may be used to 
build the capacity of military actors in partner countries under exceptional circumstances, in 
order to contribute to sustainable development and in particular to the achievement of stable, 
peaceful and inclusive societies. The achievement of stable, peaceful and inclusive societies 
alludes to Sustainable Development Goal (SDG) 16 on ‘peace and justice’, which underlines 
the  importance  of  promoting  peaceful  and  inclusive  societies,  the  provision  of  access  to 
justice  for  all,  and  building  effective,  accountable  institutions  at  all  levels.  SDG  16 
emphasises  the  need 
to  strengthen  relevant  national  institutions,  including  through 
international  cooperation  for  building  capacity  at  all  levels,  in  particular  in  developing 
countries,  to,  inter  alia,  prevent  violence,  and  combat  terrorism  and  crime.  The  exceptional 
circumstances  referred  to  in  paragraph  1  are  further  defined  in  paragraph  3  of  the  new 
Article 3a.  

In  its  paragraph  2,  Article  3a  illustrates  the  type  of  activities  that  may  be  supported,  i.e.: 
capacity  building  programmes  in  support  of  security  and  development,  including  training, 
mentoring and advice, as well as the provision of equipment, infrastructure improvements and 
provision of other services. 

In  its  paragraph  3,  Article  3a  further  describes  the  exceptional  circumstances  mentioned  in 
paragraph 1 under which assistance shall be provided. Paragraph 3 lit. a) and lit. b) are to be 
read  in  a  cumulative  way.  Paragraph  3  lit.  a)  requires  that  military  actors  are  only  financed 
when the requirements cannot be met by recourse to non-military actors to adequately reach 
the Union objectives under Regulation (EU) No 230/2014 and the premise of the achievement 
of  stable,  peaceful  and  inclusive  societies  is  denied  by  a  serious  threat  to  the  existence  of 
functioning State institutions or State institutions can no longer cope with this serious threat 
(e.g.  have  collapsed).  Paragraph  3  lit.  b)  requires  that  a  consensus  exists  among  the 
international community and/or the Union and the country concerned that the security sector, 
and  in  particular  the  military,  are  key  for  stability,  peace  and  development,  particularly  in 
crises and fragile contexts. This may take the form of a UN Security Council Resolution or a 
programming  document,  which  was  agreed  between  the  Union  and  other  international 
partners (e.g. the country compact for Somalia) or the Union is engaged under Title V TEU. 

EN 

6 

   EN 

 
Paragraph 4 of Article 3a outlines the limitations to Union assistance under this new Article, 
excluding: recurrent military expenditure, the procurement of arms and ammunition as well as 
training which is solely designed to contribute to the fighting capacity of the armed forces. 

Paragraph  5  of  Article  3a  contains  the  general  principles  that  must  inform  assistance  under 
this Article which are: ownership by the partner country; need to develop the elements and the 
good practices required for ensuring sustainability in the medium and long term as well as to 
promote the rule of law and established international law principles. 

Lastly,  paragraph  6  of  Article  3a  calls  for  the  establishment  of  risk  assessment,  monitoring 
and evaluation procedures relating to the assistance measures provided under the new Article. 

(3)  Exceptional  measures  and 

interim  programmes  (Article  7,  Title  III, 

Programming and Implementation) 

Article 7(1) is amended to include a cross reference to new Article 3a specifying that Union 
assistance under new Article 3a may be provided through exceptional assistance measures and 
interim response programmes. 

(4)  Thematic  strategy  papers  and  multiannual  indicative  programmes  (Article  8, 

Title III, Programming and Implementation) 

Article 8(1) is amended to include a cross reference to new Article 3a specifying that Union 
assistance under new Article 3a can be provided through thematic strategy papers. 

(5)  Human Rights (Article 10, Title III, Programming and Implementation) 

Article  10(1)  is  amended  to  extend  the  obligation  to  implement  assistance  measures  in 
accordance with international law, including international humanitarian law, to CBSD-related 
assistance measures under the new proposed Article 3a. 

(6)  Financial envelope (Article 13, Title IV, Final Provisions) 

Article  13(1)  increases  the  financial  envelope  for  the  implementation  of  the  Regulation  by 
EUR 100 000 000,  thus  the  financial  envelope  of  the  IcSP  shall  be  EUR  2 438 719 000.  As 
concerns  the  subdivision  provided  for  in  Article  13(3),  this  shall  remain  intact,  in  order  to 
allow  CBSD-related  actions  to  take  place  under  different  articles  and  be  financed  under 
different budget lines.  

EN 

7 

   EN 

 
 
2016/0207 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulation (EU) No 230/2014 of the European Parliament and of the Council 
of 11 March 2014 establishing an instrument contributing to stability and peace 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the European Commission, 

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

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

16 

17 

The 2005 European Consensus on Development recognised the link between security 
and development.16  

The  United  Nations’  2030  Agenda  for  Sustainable  Development,  adopted  in 
September  2015,  underlines  the  importance  of  promoting  peaceful  and  inclusive 
societies both  as a Sustainable Development  Goal  (SDG 16) and in  order to  achieve 
other  development  policy  outcomes.  SDG  16.a  specifically  requests  to  “strengthen 
relevant national institutions, including through international cooperation, for building 
capacities  at  all  levels,  in  particular  in  developing  countries,  for  preventing  violence 
and combatting terrorism and crime”.17 

including 

the  military  under  exceptional 
Supporting  security  sector  actors, 
circumstances,  in  third  countries  in  a  conflict  prevention,  crisis  management  or 
stabilisation  context  is  essential  to  ensure  appropriate  conditions  for  poverty 
eradication  and  development.  Those  actions  are  particularly  necessary  to  ensure  the 
protection of civilian populations in the areas affected by conflict, crises or fragility. 
Good  governance  and  effective  democratic  control  and  civilian  oversight  of  the 
security system, including the military, as well as compliance with human rights and 
the  rule  of  law  principles  are  essential  attributes  of  a  well-functioning  State  in  any 
context,  and  should  be  promoted  through  a  wider  security  sector  reform  support  to 
third countries.  

The  European  Council  conclusions  of  19/20  December  2013  emphasised  the 
importance  of  supporting  partner  countries  and  regional  organisations,  through 
providing  training,  advice,  equipment  and  resources  where  appropriate,  so  that  they 
can increasingly prevent or manage crises by themselves.  

Joint  statement  by  the  Council  and  the  representatives  of  the  governments  of  the  Member  States 
meeting  within  the  Council,  the  European  Parliament  and  the  Commission  on  European  Union 
Development Policy entitled “The European Consensus”, Official Journal, C 46 of 24.2.2006 
United Nations, A/RES/70/1, Resolution adopted by the General Assembly on 25 September 2015 

EN 

8 

   EN 

 
                                                 
(5) 

(6) 

In  the  Joint  Communication  entitled  ‘Capacity  building  in  support  of  security  and 
development – Enabling partners to prevent and manage crisis’, the Commission and 
the  High  Representative  of  the  Union  for  Foreign  Affairs  and  Security  Policy 
reiterated  the  need  for  stable  and  secure  societies  in  order  to  achieve  development 
objectives.18  

The Council conclusions on Common Security and Defence Policy (CSDP) of 18 May 
2015  called  to  explore  options  to  enhance  coherence  and  coordination  between  EU 
security  and  development  actions,  as  well  as  to  improve  the  delivery  of  capacity 
building  in  support  of  security  and  development,  notably  in  terms  of  financing 
instruments.19  They  also  invited  to  develop  an  EU-wide  strategic  framework  for 
Security  Sector  Reform,  bringing  together  CSDP  and  all  other  relevant  Common 
Foreign  and  Security  Policy  (CFSP)  tools  as  well  as  development  cooperation 
instruments and freedom, security and justice actors.  

(7) 

Regulation (EU) No 230/2014 should therefore be amended accordingly.  

HAVE ADOPTED THIS REGULATION: 

Regulation (EU) No 230/2014 is amended as follows: 

(1)  In Article 1(2) the following sub-paragraph is added: 

Article 1 

“Where  Union  assistance  is  provided  to  the  security  sector  actors,  this  may  also  include 
military actors under exceptional circumstances as provided for in Article 3a, in particular in 
the  context  of  a  wider  security  sector  reform  process  and/or  capacity  building  in  support  of 
security  and  development  in  third  countries,  in  line  with  the  overarching  objective  of 
achieving sustainable development.” 

(2)  The following Article 3a is inserted: 

“Article 3a  

Capacity building in support of security and development  

1. 
In order to contribute to sustainable development and in particular the achievement of 
stable, peaceful and inclusive societies, Union assistance under this Regulation may be used 
to  build  the  capacity  of  military  actors  in  partner  countries,  under  the  exceptional 
circumstances as set out in paragraph 3 of this Article.  

2. 
Assistance may cover in particular the provision of capacity building programmes in 
support of security and development, including training, mentoring and advice, as well as the 
provision of equipment, infrastructure improvements and provision of other services. 

3. 

Assistance pursuant to this Article shall only be provided: 

(a) 
where  requirements  cannot  be  met  by  recourse  to  non-military  actors  to  adequately 
reach Union objectives  under this Regulation and the premise of the achievement of stable, 
peaceful and inclusive societies is  denied by a serious threat  to  the existence of functioning 
State institutions, as well as to the protection of human rights and fundamental freedoms, or 
State institutions can no longer cope with this serious threat; and 

18 
19 

JOIN(2015) 17 final of 28 April 2015 
Foreign Affairs Council (Defence formation) conclusions on CSDP, document 8971/15 of 18 May 2015 

EN 

9 

   EN 

 
                                                 
(b) 
where  a  consensus  exists  between  the  country  concerned  and  the  international 
community and/or the European Union that the security sector, and in particular the military, 
are  key  for  stability,  peace  and  development,  particularly  in  crises  and  fragile  contexts  and 
situations.  

4. 

(a) 

(b) 

(c) 

Union assistance shall not be used to finance: 

recurrent military expenditure; 

the procurement of arms and ammunition; 

training  which  is  solely  designed  to  contribute  to  the  fighting  capacity  of  the  armed 
forces. 

When designing and implementing measures pursuant to this Article, the Commission 
5. 
shall promote ownership by the partner country. It shall also develop the necessary elements 
and the good practices required for ensuring sustainability in the medium and long term and 
promote the rule of law and established international law principles.  

The  Commission  shall  establish  appropriate  risk  assessment,  monitoring  and 

6. 
evaluation procedures for measures pursuant to this Article.” 

(3) 

In Article 7, paragraph (1) is replaced by the following: 

“1. Union assistance pursuant to Article 3, and to Article 3a as appropriate, shall be provided 
through exceptional assistance measures and interim response programmes.” 

(4) 

In Article 8, paragraph (1) is replaced by the following: 

“1.  Thematic  strategy  papers  shall  constitute  the  general  basis  for  the  implementation  of 
assistance  pursuant  to  Articles  4  and  5,  and  to  Article  3a  as  appropriate.  Thematic  strategy 
papers shall provide a framework for cooperation between the Union and the partner countries 
or regions concerned.” 

(5)  In Article 10, paragraph (1) is replaced by the following: 

“1. The Commission shall ensure that measures adopted under this Regulation in relation to 
the fight against terrorism and organised crime, as well as measures covered under Article 3a, 
are  implemented  in  accordance  with  international  law,  including  international  humanitarian 
law.” 

(6) 

In paragraph 1 of Article 13: 

The number ‘2 338 719 000’ is replaced by ‘2 438 719 000’.  

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

Article 2 

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

Done at Strasbourg, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

10 

   EN 

 
LEGISLATIVE FINANCIAL STATEMENT  

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 mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

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

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

EN 

11 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LEGISLATIVE FINANCIAL STATEMENT 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative  

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending  Regulation  (EU)  No  230/2014  of  the  European  Parliament  and  of  the 
Council establishing an instrument contributing to stability and peace 
Policy area(s) concerned in the ABM/ABB structure20  

1.2. 

Two policy areas are concerned: 

Title 19: Foreign Policy Instruments 

Activity  19 02:  Instrument  contributing  to  Stability  and  Peace  (IcSP)  -  Crisis 
response, conflict prevention, peace-building and crisis preparedness 

Title 21: International Cooperation and Development 

Activity  21 05:  Instrument  contributing  to  Stability  and  Peace  (IcSP)  -  Global  and 
trans-regional and emerging threats 

The titles of these budget chapters correspond to the current structure of the financial 
instruments 2014-2020. It is proposed to keep the same activities and titles.  

1.3. 

Nature of the proposal/initiative  

X The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action21  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission’s  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

The  proposal  targets  Strategic  Objective  9  –  the  EU  as  Stronger  Global  Actor  –  of 
President Juncker’s Political Guidelines.22 More specifically, it seeks to address the 
EU’s need for a stronger Europe when it comes to foreign policy to better contribute 
to supporting development and securing peace and prosperity in the world. 

Consequently,  the  2016  Commission  Work  Programme,  adopted  on  27 October 
201523 included in its Annex I a “possible dedicated instrument for capacity building 
in support of security and development in partner countries” (item 21). 

20 
21 
22 
23 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2) (a) or (b) of the Financial Regulation. 
http://ec.europa.eu/priorities/docs/pg_en.pdf 
COM(2015) 610 final 

EN 

12 

   EN 

 
 
                                                 
The general objectives of the initiative are those set out in Articles 21 of the Treaty 
on European Union (TEU) and in Article 208 of the Treaty on the Functioning of the 
European Union (TFEU) in particular to: 

- contribute to preserve peace, prevent conflicts and strengthen international security, 
in accordance with the purposes and principles of the United Nations Charter; 

-  foster  the  sustainable  economic,  social  and  environmental  development  of 
developing countries, with the primary aim of eradicating poverty, whilst complying 
with the commitments and taking account of the objectives approved in the context 
of the United Nations and other competent international organisations. 

1.4.2. 

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

The Capacity building in support of security and development (CBSD) initiative will 
be  implemented  under  the  existing  IcSP  Regulation  (EU)  No 230/2014  and  will  as 
such  contribute  to  the  aims  set  out  in  its  Article  1(1)  which  is  to  provide  “direct 
support for the Union’s external policies by increasing the efficiency and coherence 
of  the  Union’s  actions  in  the  areas  of  crisis  response,  conflict  prevention,  peace-
building and crisis preparedness, and in addressing global and trans-regional threats”.  

More specifically, the objectives of this proposal will be to: 

 

 

 

contribute  to  improving  the  capacity  of  partner  countries  to  prevent  and 
manage crises by themselves; 

contribute to  improving  the effectiveness  of the  Union’s development  actions 
by working with all security actors, including the military, through the delivery 
of capacity building in support of security and development by the EU, as soon 
as possible, flexibly and comprehensively; and  

contribute to ensuring the respect of the rule of law, good governance, as well 
as enhanced civilian control and oversight over the military in third countries. 

ABM/ABB activity(ies) concerned: 

Activity  19  02:  Instrument  contributing  to  Stability  and  Peace  (IcSP)  -  Crisis 
response, conflict prevention, peace-building and crisis preparedness 

Activity  21  05:  Instrument  contributing  to  Stability  and  Peace  (IcSP)  –  Global  and 
trans-regional and emerging threats  

1.4.3.  Expected result(s) and impact 

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

- Improved capacity of partner countries to prevent and manage crises by themselves; 

- Improved effectiveness of all actors within partner countries’ security sectors to act 
in  support  of  greater  human  security  in  fragile  states  or  in  crisis-prone  or  post-
conflict areas; 

- Greater respect  of the  rule of law,  good  governance,  as well as enhanced civilian 
control and oversight over the military in third countries; 

More stable and secure societies are a precondition for sustainable development and 
increased  wellbeing,  thus  reducing  fragility-  and  conflict-related  pressures.  For  the 
countries concerned, the expected long-term economic and developmental impact of 
this initiative should be considerable.  

EN 

13 

   EN 

 
1.4.4. 

Indicators of results and impact  

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

The  setting-up  of  new  results  and  impact  indicators  is  work  in  progress.  A  broad 
general indicator of the level of human security (Freedom from Fear) of people living 
in fragile states or in crisis-prone or post-conflict areas may be appropriate. 

The relevant  Programme Statement for the IcSP will be complemented to take into 
account new indicators. 

Individual  actions  shall  be  related  to  specific  objectives.  The  actions  will  also  be 
measured against project-specific indicators.  

1.5. 

Grounds for the proposal/initiative  

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

This  proposal  follows  up  on  the  Joint  Communication  from  the  European 
Commission  and  the  High  Representative  of  the  Union  for  Foreign  Affairs  and 
Security  Policy  on  ‘Capacity  building  in  support  of  security  and  development’ 
(CBSD)  of  28  April  2015  (JOIN(2015)  17)  and  the  conclusions  of  the  Foreign 
Affairs Council (Defence formation) of 18 May 2015 requesting a proposal on how 
to comprehensively and flexibly support capacity building (training and equipment) 
of  military  actors  in  third  countries  in  the  pursuit  of  EU  development  cooperation 
policy goals. 

The Joint Communication underlined that improvement, through capacity building in 
support of security and development, of the functioning of security actors, including 
military  forces,  as  well  as  the  strengthening  of  their  governance,  particularly  in 
fragile countries and countries emerging from conflict, contributes to peace, human 
security and stability, thereby to the achievement of sustainable development goals. 
The  Joint  Communication  also  supported  EU  efforts  to  mainstream  conflict 
prevention in fragile and conflict prone countries while identifying gaps in the EU’s 
ability to support building the capacities of partners in the security sector. 

The  European  Council  conclusions  of  25-26  June  2015  recalled  the  need  for 
“empowering and enabling partners to prevent and manage crises including through 
concrete  projects  of  capacity  building  with  a  flexible  geographic  scope”  echoing 
earlier  European  Council  Conclusions  of  19-20  December  2013  which  emphasised 
“the importance of supporting partner countries and regional organisations, through 
providing training, advice, equipment and resources where appropriate, so that they 
can increasingly prevent or manage crises by themselves”.  

1.5.2.  Added value of EU involvement 

EU action is necessary and justified on the grounds of the objectives laid down in the 
Treaty  in  particular  Article  21  TEU  and  on  the  subsidiarity  principle.  A 
comprehensive  and  flexible  support 
in  capacity  building  for  security  and 
development  (CBSD)  at  EU  level  would  have  the  benefit  of  allowing  short-  and 
longer-term  actions  to  bring  on  board  all  security  actors  in  a  country,  and  would 
allow for better coordination of such support. 

Interventions at EU level can better achieve security and stability and act as a driver 
for  more  effective  international  efforts  around  security  and  development.  The 
political  objective  of  delivering  security  for  the  EU  cannot  be  achieved  without 

EN 

14 

   EN 

 
effective  engagement  with  partner 
organisations.  

in  non-EU  countries  and 

international 

The  Union’s  operations  and  those  of  the  Member  States  shall  complement  and 
reinforce  each  other  in  line  with  Article  212(1)  TFEU.  The  EU  and  its  Member 
States  have  a  role  to  pay  through  the  comprehensive  approach  in  preventing  and 
managing conflicts and their causes. 

1.5.3.  Lessons learned from similar experiences in the past 

Future  advances  in  poverty  reduction  and  longer-term  gains  in  sustainable 
development in the context of achievement of the Sustainable Development Goal 16 
(Peace,  justice  and  strong  institutions)  will  greatly  depend  on  the  ability  to 
effectively address the roots causes of fragility and notably the lack of security.  

A  significant  part  of  external  assistance  programmes  funded  by  the  EU’s 
development  and  technical  cooperation  instruments  already  tackles  security  and 
development challenges through a multiplicity of channels and different instruments. 
However,  third  country  partners  who  have  sought  support  for  the  provision  of 
capacity  building  in  support  of  security  and  development  including  training  or 
equipment have not always been in a position to receive it as current EU instruments 
are not geared to flexibly meeting this need.  

The  Joint  Communication  identifies  a  gap  in  the  EU  toolbox  related  to  supporting 
partner  countries’  military  actors  in  providing  the  stability  needed  to  enable 
development activities. 

Such  a  gap  affects  the  efficiency  and  sustainability  of  the  Union’s  external  action, 
including  its  development  policy.  In  a  globally  deteriorating  security  environment, 
the  limitations  of  the  current  EU  toolbox  of  external  action  instruments  hamper  its 
ability  to  comprehensively  address  the  issue,  improve  cooperation,  and  thus 
effectively contribute to development efforts. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The initiative will ensure:  

(a)  coherence  with  other  EU  actions  (including  CFSP  actions)  as  part  of  a  broader 
EU comprehensive approach to external conflict and crises;  

(b)  consistency,  coordination  and  complementarity  of  the  different  short-term  and 
long-term capabilities and instruments, based on a common strategic vision.  

The different actions under the proposed initiative should be designed in line with the 
new  EU-wide  Security  Sector  Reform  (SSR)  framework,  including  monitoring  and 
evaluation  principles  and  a  dedicated  risk-management  framework.  Programmes 
would have to  set  out  how they fit with  relevant EU country or regional  strategies, 
and be designed and planned in a manner that ensures involvement of all relevant EU 
actors. 

EN 

15 

   EN 

 
1.6. 

Duration and financial impact  

X Proposal/initiative of limited duration  

–  X 

–     

Proposal/initiative in effect from 01/01/2017 to 31/12/2020  

Financial impact from 2017 to 2020 

 Proposal/initiative of unlimited duration 

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

–  followed by full-scale operation. 
1.7.  Management mode(s) planned24  

X Direct management by the Commission 

–  X by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

X Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–  X international organisations and their agencies (to be specified); 

–   the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

–  X public law bodies; 

–  X  bodies  governed  by  private  law  with  a  public  service  mission  to  the  extent 

that they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–  X  persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

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

Comments  

The management rules of Regulation (EU) No 236/2014 of the European Parliament and the 
Council of 11 March 2014 laying down common rules and procedures for the implementation 
of the Union’s instruments for financing external action will apply.

24 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

EN 

16 

   EN 

 
                                                 
2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

the 
EU  Delegations  and  Commission  services  will  continuously  monitor 
implementation of CBSD projects with military actors including through field visits, 
providing  managers  valuable  information  on  progress  or  lack  thereof  against  set 
objectives while helping to identify/anticipate potential difficulties to take corrective 
action.  

External,  independent  experts  may  also  be  contracted  to  assess  and  evaluate  the 
performance  of  CBSD  programmes.  These  assessments  and  evaluations,  whether 
internal  or  external,  will  contribute  to  accountability,  and  to  the  improvement  of 
ongoing  interventions;  they  will  draw  lessons  from  experiences  to  inform  future 
policies  and  actions  using  the  internationally  recognised  OECD-DAC  evaluation 
criteria including (potential) impact. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

Risk environment: 

Support to military actors in conflict-affected countries entails a wide range of risks 
(contextual, programmatic, reputational and institutional) that may negatively impact 
on the effectiveness and sustainability of the CBSD support. The possible misuse of 
the equipment provided, that in extremis could be used by local forces to ends that 
could lead to serious human rights violations and/or transferred to unfriendly actors, 
(e.g. non-state armed groups that seize the equipment) needs special attention during 
project  design  and  during  project  implementation  through  close  monitoring 
arrangements.  The  exclusion  of  lethal  equipment  offers  some  guarantees  against 
misuse  of  the  assistance;  however,  non-lethal  military  equipment  could  be  misused 
from an international humanitarian law perspective. 

Mitigation of risks: 

CBSD  measures  will  exclude  the  funding  of  weapons  and  ammunition  which  will 
limit the risks inherent to a potential misuse of equipment.  

Furthermore,  in  order  to  mitigate  possible  risks  and  in  accordance  with  the  Joint 
Communication that called for the development of risk management methodology on 
EU  support  to  the  security  sector  of  partner  countries  or  organisations,  a  specific 
risk-assessment will be mandatory for all CBSD programmes designed to cooperate 
with the military of third partner countries. Risks will also be continuously monitored 
during the implementation of the projects. 

Specific  risk-assessment  and  monitoring  modalities  are  being  developed  in  the 
context of the SSR policy framework. 

Lessons  learned  from  experiences  with  regard  to  budget  support  risk  management 
frameworks as well as emerging practice of CSDP mission performance benchmarks 
will all be valuable contributions to this exercise. 

Specific  risk-assessment  modalities  applicable  to  CBSD  may  include  but  are  not 
limited to:  

EN 

17 

   EN 

 
- Conflict Risk Assessments (based on structural risk tools such as the GCRI (Global 
Conflict Risk Index) developed by the JRC) and  

-  Conflict  Analysis  Frameworks  to  develop  a  shared  understanding  and  regular 
monitoring of the situation by humanitarian-development-security actors.  

The  commitment  to  ensure  the  transparency  and  impact  of  peace  and  security 
spending  and  tracking  its  contribution  to  achieve  SDG  16 targets  can  address  what 
some stakeholders may perceive as the risk of ‘securitisation of development’. 

As part of the above risk mitigation measures, EU support to CBSD should also be 
based  on  context  analysis/conflict  and  be  conflict  sensitive  (context-specific 
analysis). The ‘do-no-harm’ principle will be a key underlying principle for CBSD. 
An in-depth analysis of the political and security situation of the country concerned 
and  potential  associated  risks  would  have  to  take  place  in  a  timely  manner  with  a 
view to determine the Union’s ability to assist i.e. to avoid misuse of the support. EU 
Delegations  will  be  involved  in  carrying  out  the  relevant  assessments.  These 
assessments will cover, inter alia, resource implications, stock-taking of other actors’ 
efforts;  planned  assistance  to  engage  in  capacity  building  efforts;  an  assessment  of 
the  specific  needs  of  the  country  as  well  as  objectives  and  benchmarks  to  monitor 
progress.  Other  important  aspects  such  as  local  ownership  by  the  partner  country, 
absorption  capacity,  and  sustainability  in  the  medium  and  long-term  as  well  as 
articulation  with  longer-term  broader  SSR  programmes  in  the  governance  sector 
would be part of that context-specific analysis. 

2.2.2. 

Information concerning the internal control system set up 

FPI/DEVCO Internal Control architecture 

FPI/DEVCO’s  internal  control  /  management  process  is  designed  to  provide 
reasonable assurance regarding the sound financial management of its operations, the 
reliability of its financial reporting and compliance with the relevant legislative and 
procedural framework. 

Effectiveness, efficiency and economy 

To  ensure  that  the  principles  of  sound  financial  management  are  respected  (and  to 
mitigate the high level of risk in its external aid environment), in addition to all the 
elements  of  the  Commission  Strategic  Planning  and  Programming  process,  internal 
audit environment and requirements of the Commission’s Internal Control Principles, 
FPI/DEVCO will continue to tailor its control environment which include: 

A devolved management of the projects by EU Delegations in the field when 

– 
appropriate; 

– 
Clear  and  formalised  lines  of  financial  accountability  (from  the  Delegated 
Authorising officer) by means of a sub-delegation to the respective Head of Unit or 
Head of Delegation; 

– 
Regular  reporting  from  EU  Delegations  to  headquarters  (External  Assistance 
Management  Reports  for  DEVCO  and  sub-delegated  authorising  officer  reports  for 
FPI), including an annual Statement of Assurance by the Head of Delegation; 

Provision of a substantial programme of training for staff both at headquarters 

– 
and in EU Delegations; 

– 

Significant headquarters/EU Delegation support and guidance; 

EN 

18 

   EN 

 
– 

– 

Regular ‘verification/supervision’ missions to ‘devolved’ EU Delegations; 

A project and programme cycle management methodology including:  

 a)  where  appropriate,  quality  support  tools  for  the  design  of  the  intervention,  its 
delivery  method,  financing  mechanism,  management  system,  assessment  and 
selection of any implementing partners;  

 b) programme and project management, monitoring and reporting tools for effective 
implementation including regular external on-the-spot monitoring of projects; 

 c) evaluation and audit components. 

Financial Reporting and Accounting 

FPI/DEVCO  will  continue  to  pursue  the  highest  standards  of  accounting  and 
financial  reporting  using  the  Commission’s  accruals  based  accounting  system 
(ABAC) as well as external aid specific tools. 

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

The compliance objective for the instrument is to maintain the historic level of risk 
of  non-compliance  (error  rate)  for  FPI/DEVCO  portfolio  which  is  a  residual  ‘net’ 
level of error (on a multi-annual basis after all planned controls and corrections have 
been executed on closed contracts) of less than 2%.  

This has traditionally implied an estimated error range of 2-5% in terms of an annual 
randomised sample of transactions undertaken by the European Court of Auditors for 
the purposes of the annual Statement of Assurance (DAS).  

FPI/DEVCO  considers  this  to  be  the  lowest  risk  of  non-compliance  achievable  in 
relation  to  its  high-risk  environment  and  taking  into  account  the  administrative 
burden and necessary cost effectiveness of compliance controls. 

2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

Preventive measures for irregularities 

Given  the  risk  environment  of  CBSD,  the  control  systems  need  to  anticipate 
potential compliance errors (irregularities) in transactions and to build in a high 
level of prevention, detection and correction controls as early as possible in the 
payment  process.  This  means  in  practice  that  FPI/DEVCO  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.  

FPI/DEVCO  compliance  framework  is  made  up  inter  alia  of  the  following 
significant components: 

Preventive measures for fraud 

-  Provision  of  specific  guidance  including  the  Practical  Guide  to  Contracts 
(PRAG),  the  DEVCO  Companion  and  the  Financial  Management  Toolkit  (for 
implementing partners) where applicable. 

EN 

19 

   EN 

 
- Compulsory core training covering fraud prevention and detection issues for aid 
management  staff  (project  managers,  financial  officers,  and  ex-post  control 
staff/auditors) in the headquarters and in EU Delegations, in line with the Anti-
fraud  Strategy  for  EU  External  Relations  and  with  the  specific  anti-fraud 
strategies  of  both  FPI  and  DEVCO.  The  Anti-fraud  Strategy  for  EU  External 
Relations  covers  the  activities  of  both  the  European  External  Action  Service 
(EEAS)  and  relevant  Commission  services  of  the  external  relations  family 
(DEVCO,  FPI,  NEAR),  with  particular  attention  to  activities  carried  out  by  the 
EU Delegations. 

-  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  both  direct  management  and  indirect 
management).  

- Ex-ante screening of the anti-fraud mechanisms available in the partner country 
(and/or  international  organisation)  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.  It  has  been 
working  on  implementing  and  applying  IATI  standards  for  publishing  aid 
information since October 2011. 

- In addition, the Commission works in cooperation with the EU Member States 
on  a  joint  web-based  IT  application  called  EU  Aid  Explorer,  which  transforms 
the EU aid  data provided through the  IATI  and  other sources  into user-friendly 
aid information. 

for  Economic  Co-operation 

-  In  2015,  OLAF  signed  5  new  administrative  cooperation  arrangements  with 
international organisations (European Bank for Reconstruction and Development, 
Inter-American  Bank,  Organisation 
and 
Development, World Food Programme and the UN Office for Project Services). 
OLAF  also  cooperates  with  the  equivalent  anti-fraud  agencies  of  the  United 
Nations, the World Bank and other international organisations. OLAF also works 
with EUROPOL and EUROJUST. OLAF also establishes, on a continuous or ad 
hoc  basis  as  appropriate,  relationships  with  non  EU-country  authorities,  which 
are necessary to investigate fraud against EU budget (mainly EU funds spent on 
external  aid).  In  2015,  OLAF  concluded  administrative  arrangements  with 
partner authorities in Angola, Moldova, and Senegal. 

Detective and corrective measures for irregularities and fraud 

- 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. 

EN 

20 

   EN 

 
-  FPI/DEVCO  will  further  devise  their  anti-fraud  strategy  in  line  with  the 
Commission’s Anti-fraud strategy  for  EU External  Relations ("Umbrella AFS") 
approved  in  2013.  FPI  and  DEVCO  implement  the  strategy  concentrating  on 
three strategic objectives: 

- To raise general awareness of staff concerning fraud prevention and detection, 
especially 
the  preparation  and 
implementation of grants and procurement contracts. 

fraud  prevention  and  detection  during 

-  To  improve  capacities  of  FPI  and  DEVCO  staff  to  effectively  tackle  internal 
and external fraud by using anti-fraud tools. 

-  To  improve  reaction  to  suspected  fraud  and  time-efficiency  in  the  recovering 
sums unduly spent.  

EN 

21 

   EN 

 
3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

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

  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Heading of 
multiannual financial 
framework 

Number  
Description 

Budget line 

Type of  
expenditure 

Contribution  

Diff./Non-
diff.25 

from EFTA 
countries26 

from candidate 
countries27 

from third 
countries 

within the meaning of 
Article 21(2)(b) of the Financial 
Regulation  

19 02 - Instrument contributing to 
Stability and Peace (IcSP) – 
Crisis response, conflict 
prevention, peace-building 
and crisis preparedness 

19 02 01 Response to crisis and emerging crisis 

19 02 02 Support to conflict-prevention, peace-building 
and crisis preparedness 

IV 

19  01  Administrative  expenditure  of  the  "Foreign  policy 
instruments" policy area 

19 01 04 01 Support expenditure for Instrument 
contributing to Stability and Peace (IcSP) 

21 05 Instrument contributing to Stability and Peace (IcSP)  – 
Global and trans-regional emerging threats 

21 05 01 Global and trans-regional and emerging threats 

21 01 Administrative expenditure of the "International 
cooperation and development" policy area 

25 
26 
27 

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

D

i
f
f

N

N

N

O 

O 

O 

/

N
O 

EN 

22 

EN 

 
  
  
                                                 
21  01  04  04  Support  expenditure  for  the  Instrument 
contributing to Stability and Peace (IcSP) 

3.2. 

Estimated impact on expenditure  

3.2.1. 

Summary of estimated impact on expenditure  

Heading of multiannual financial  
framework  

Number  Heading 4 Global Europe 

DG: FPI/DEVCO 

 Operational appropriations  

Number of budget line 19 02 02 

Number of budget line 19 02 01 

6.600 
0 
0.608 
0 
2.150 
0 
Appropriations of an administrative nature financed from the envelope of specific programmes29  
0.643 
Number of budget line 19.01.04.01 

Commitments 
Payments 
Commitments 
Payments 
Commitments 
Payments 

(1) 
(2) 
(1a) 
(2a) 
(1b) 
(2b) 

Number of budget line 21 05 01 

(3) 

Y

Year 
2018 

Year 
2019 

e
a
r

Year 
2020 

2
0
1
7
28 

20.400 
10.000 
2.678 
1.000 
6.250 
3.000 

20.350 
15.000 
2.528 
2.000 
6.300 
4.000 

20.700 
20.000 
2.177 
2.000 
6.300 
6.000 

0.673 

0.823 

0.823 

TOTAL appropriations 
for FPI/DEVCO 

Commitments 

(3a) 

=1+1
a 
+1b+

0 

0 

0 

0 

10.0 

30.0 

30.0 

30.0 

EUR million (to three decimal places) 

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

TOTAL 

68.050 
45.000 
7.990 
5.000 
21.000 
13.000 

2.962 

0.000 

100.000 

28 
29 

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 

23 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Payments 

3 
=2+2
a+2b 
+3+3
a 

0 

14.0 

21.0 

28.0 

66.600 

EN 

24 

EN 

 
  
 
 
 
 
 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

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 

EUR million (to three decimal places) 

DG: FPI 

 Human resources  

 Other administrative expenditure  

TOTAL FPI 

DG: DEVCO 

 Human resources  

A

p
p
r
o
p
r
i
a
t
i
o
n
s

0

0

0

0

.
7
4
6 

.
0
6 

0

0

.
7
4
6 

.
0
6 

0

0

.
7
4
6 

.
0
6 

0

0

0

0

.
8
0
6 

.
8
0
6 

.
8
0
6 

0

0

0

0

.
1
4

.
1
4

.
1
4

.
7
4
6 

.
0
6 

.
8
0
6 

.
1
4

2

0

3

0

.
9
8
4 

.
2
4
0 

.
2
2
4 

.
5
6

EN 

25 

EN 

 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 Other administrative expenditure  

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL DG DEVCO 

A

p
p
r
o
p
r
i
a
t
i
o
n
s

0

0

0

0

.
1
4
0 

.
1
4
0 

.
1
4
0 

.
1
4
0 

0

0

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

0.946 

0.946 

0.946 

0.946 

3.784 

EUR million (to three decimal places) 

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

Year 
N+2 

1

Year 
N30 

Year 
N+1 

C

o
m
m
i
t

Year 
N+3 

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

TOTAL 

3

3

3

0
.
9
4

0
.
9
4

0
.
9
4

0
.
9
4
6 

1

30 

Year N is the year in which implementation of the proposal/initiative starts. 

0 

.
0
0
0 

.
5
6
0 

0
3
.
7
8

EN 

26 

EN 

 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
P

m
e
n
t
s 

a
y
m
e
n
t
s 

6 

6 

6 

0

.
9
4
6 

1

2

2

7

4
.
9
4
6 

1
.
9
4
6 

8
.
9
4
6 

4 

0
.
3
8
4 

EN 

27 

EN 

 
  
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–  X 

The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicative outputs per objectives: 

 

 

 

Specific objective 1 - Number of estimated response measures in situations of crisis or emerging crisis in a given budgetary year.  

Specific  objective  2  -  Number  of  estimated  capacity  building  actions  on  conflict  prevention,  peace-building  and  crisis 
preparedness in a given budgetary year. 

Specific objective 3 - Number of trained persons and/or equipment bought in a given budgetary year. 

Year 
2017 

Year 
2018 

Year 
2019 

Year 
2020 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

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

TOTAL 

o
N

Cost  N

o

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost  N

o

Cost  N

o

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type
31

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 1

32  

Budget line 19 02 01 

- Output 

- Output 

- Output 

31 
32 

Outputs are products and services to be supplied. 
As described in point 1.4.2. ‘Specific objective(s)…’  

EN 

28 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
6.6 

20.4 

20.4 

20.7 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 
Budget line 19 02 02 

- Output 

- Output 

- Output 

Subtotal for specific objective No 2 

1 

0.6 

1 

2.7 

1 

2.5 

1 

2.2 

SPECIFIC OBJECTIVE N° 3  

Budget line 21 05 01 

- Output 

- Output 

-Output 

Subtotal for specific objective No 3 

1 

2.1 

1 

6.3 

1 

6.3 

1 

6.3 

TOTAL COST 

10 

30 

30 

30 

11. Outputs under Specific Objective 1 for BL 19 02 01 are not programmable thus, an output figure would be inappropriate. 

68.1 

8.0 

21.0 

100 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–  X  The proposal/initiative requires the use of appropriations of an  administrative 

nature, as explained below: 

EUR million (to three decimal places) 

Year 
N 33 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

TOTAL 

HEADING 5 
of the multiannual 
financial framework 

Human resources 

0.886 

0.886 

0.886 

0.886 

Other administrative 
expenditure 

Subtotal HEADING 5 
of the multiannual 
financial framework 

Outside HEADING 534 
of the multiannual 
financial framework  

Human resources  

BL 19 01 04 01 * 

Other expenditure  
of an administrative 
nature 

Subtotal  
outside HEADING 5 
of the multiannual 
financial framework  

0.060 

0.060 

0.060 

0.060 

0.946 

0.946 

0.946 

0.946 

0.448 

0.448 

0.448 

0.448 

0.195 

0.225 

0.375 

0.375 

0.643 

0.673 

0.823 

0.883. 

3.544 

0.240 

3.784 

1.792 

1.170 

3.022 

TOTAL 

1.589 

1.619 

1.769 

1.829 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature  will  be  met  by 
appropriations from the DG that 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. 

* Corresponding to 3 CA posts under FPI budget line 

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 

30 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources 

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

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

below: 

Estimate to be expressed in full time equivalent units 

Year 
N 

Year 
N+1 

Year N+2 

Year N+3 

Enter 
as 
many 
years 
as 
necessa
ry to 
show 
the 
duratio
n of the 
impact 
(see 
point 
1.6) 

 Establishment plan posts (officials and temporary staff) 

19 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

4 

4 

4 

4 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)35 

19 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

21 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations)  

19 01 04 01 36  

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

3 

2 

3 

2 

3 

2 

3 

2 

3 

3 

3 

3 

12 

12 

12 

12 

19 and 21 are the policy areas or budget titles 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 

AC  =  Contract  Staff;  AL  =  Local  Staff;  END  =  Seconded  National  Expert;  INT  =  agency  staff; 
JED = Junior Experts in Delegations 
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines) 

EN 

31 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

The  human  resources  for  officials  (AD)  allow  for  the  overall 
management of the additional commitments and in particular, the sound 
identification,  appraisal,  design,  contracting,  and  evaluation  of  CBSD 
actions within an enlarged project portfolio and design of specific CBSD 
risk-assessment  modalities  (see  Section  2.2.1).  This  cost  also  involves 
conducting  regular  monitoring  missions  to  the  field  to  meet  relevant 
government  authorities  and  ensure  upstream  local  coordination  with 
other actors and donors. It is also expected that CBSD will require close 
coordination with Council, Parliament, and other stakeholders (including 
civil  society).  The  CBSD  field  being  a  new  "territory"  for  the 
Commission,  it  will  require  specific  attention  and  building  ad-hoc 
expertise,  thus  being  resources-intensive,  especially  in  its  building 
phase.  

The  resources  (AST)  allow 
the  contracting  and  financial 
for 
management  of  CBSD  actions  as  well  as  for  conduct  of  audits  and 
controls,  annual  reporting  (SPP),  follow  up 
to  EP/Ombudsman 
questions,  financial  reporting  and  oversight  of  commitments  and 
payments at central level.  

Additional costs also accrue in relation to other back-office tasks. 

The human resources for external staff (CA) allow for the management 
and  implementation  of  CBSD  projects  portfolio  managed  centrally  at 
headquarters level and/or managed in Delegations. This involves day-to-
day  project  management  (operational  and  financial),  coordination  with 
Member  States  and  other  actors,  regular  project  monitoring  and 
coordination  with  EU  Delegations  where  appropriate.  Management  of 
evaluations  and  audits.  This  task  also  involves  regular  field  visits 
missions. 

EN 

32 

   EN 

 
3.2.4.  Compatibility with the current multiannual financial framework  

–    The  proposal/initiative  is  compatible  the  current  multiannual  financial 

framework. 

–  X  The 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. 

The  EUR  100 000 000  necessary  for  the  CBSD  action  will  be  redeployed  within 
Heading 4 of the 2014-2020 Multiannual Financial Framework (MFF). 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

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

3.2.5.  Third-party contributions  

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

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

Appropriations in EUR million (to three decimal places) 

Year 
N 

Year 
N+1 

Year 
N+2 

Year 
N+3 

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

Total 

Specify  the  co-financing 
body  

TOTAL appropriations 
co-financed  

EN 

33 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.3. 

Estimated impact on revenue  

–  X  The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

 

 

on own resources  

on miscellaneous revenue  

Appropriation
s available for 
the current 
financial year 

Budget revenue line: 

Article  

EUR million (to three decimal places) 

Impact of the proposal/initiative37 

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) 

For miscellaneous ‘assigned’ revenue, specify the budget expenditure line(s) affected. 

[…] 

Specify the method for calculating the impact on revenue. 

[…] 

37 

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 

34 

   EN