JOINT REPORT TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Report on the Implementation of the European Neighbourhood Policy Review
Date: 2017-05-18
Institutions: European Commission, European External Action Service
Subjects: EU financial instrument, European neighbourhood policy, European security, bilateral relations, economic development, human rights, migration policy, regional cooperation, rule of law, the EU's international role

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   EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 18.5.2017  JOIN(2017) 18 final   JOINT REPORT TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Report on the Implementation of the European Neighbourhood Policy Review  
 
 
Table of Contents 

1. INTRODUCTION  ............................................................................................................................. 3 

2. STATE OF PLAY OF BILATERAL AND REGIONAL ENGAGEMENT ................................. 4 

Bilateral engagement ............................................................................................................................ 4 

Regional engagement ........................................................................................................................... 8 

3. PROGRESS ON KEY PRIORITIES  ............................................................................................ 11 

Good governance, democracy, rule of law and human rights  ........................................................... 11 

Economic development for stabilisation  ........................................................................................... 14 

Security  .............................................................................................................................................. 19 

Migration and mobility  ...................................................................................................................... 22 

4. FINANCIAL ASSISTANCE TO SUPPORT THE NEIGHBOURHOOD ................................. 24 

Joint programming and increased coordination with EU Member States  ......................................... 25 

Increased cooperation with the European Financial Institutions (EFIs) and International Financial 
Institutions (IFIs), including through blending  .................................................................................. 26 

Trust Funds  ........................................................................................................................................ 27 

Flexibility cushion  ............................................................................................................................. 28 

European External Investment Plan  .................................................................................................. 28 

5. CONCLUSION ................................................................................................................... 29 

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Report on the Implementation of the European Neighbourhood Policy Review 

1. INTRODUCTION 

This is the first report following the review of the European Neighbourhood Policy (ENP) in 
November  20151,  which  sets  out  a  new  framework  for  building  more  effective  partnerships 
between the EU and its neighbours, and supporting stabilisation as a top priority. The report 
reflects  the  overarching  political  priorities  for  the  EU's  external  action  agreed  with  by 
Council2 following publication of the Global Strategy for the European Union's Foreign and 
Security Policy in June 2016. 

The  ENP  Review  was  based  on  a  wide  consultation  process  involving  partners  and  the  EU 
Member States, and drawing on their inputs. It introduced a new approach that encompasses 
greater respect for the diverse aspirations of the EU's partners; more effective pursuit of areas 
of  mutual  interest;  new  working  methods  to  support  a  greater  sense  of  ownership  by  the 
partners and greater involvement and shared responsibility by the Member States; as well as 
greater  flexibility  in  the  way  the  EU  conducts  its  policies  and  its  development  funds.  The 
present report reflects the commitments made in the ENP Review to keep all EU stakeholders 
informed of the progress of the ENP. It also takes stock of developments in the EU's relations 
with  its  partners  since  the  adoption  of  the  revised  policy,  and  demonstrates  how  the  EU  is 
delivering on the new approach. 

Developments in the EU's Neighbourhood and inside the EU have continued to confirm the 
importance of close and fruitful working relations between the EU and its neighbours. The EU 
supports the independence, sovereignty and territorial integrity of all Partner Countries, which 
is  also  in  line  with  the  principles  of  the  UN  Charter.  Terrorist  attacks  in  the  EU  and  in 
neighbouring  countries  demonstrate  the  need  to  keep  strengthening  cooperation  both  on 
security  and  on  the  political  and  socio-economic  drivers  of  violent  extremism.  Tackling 
irregular migration and responding to the flows of refugees remain important challenges for 
both the EU and its neighbours, and key areas on which to focus our work given the continued 
instability  due  to  conflicts,  especially  in  Libya  and  Syria.  To  the  East,  Neighbourhood 
countries continue to grapple with societal transformation amid pressure from an increasingly 
assertive Russian foreign policy. 

This report emphasises how the EU and its partners in the East and the South are working to 
promote  stabilisation  and  resilience  focussing  particularly  on  economic  development, 
employability,  youth  employment,  and  upholding  the  EU's  commitment  to  promote 
democracy, rule of law and respect for human rights, and good governance with effective and 
accountable public administrations and participation of civil society.  

1 Joint Communication JOIN(2015) 50 final adopted on 18 November 2015 and Council Conclusions of 14 
December 2015 
2 Council Conclusions the Global Strategy of the European Union's Foreign and Security Policy (doc. 13202/16 
of 17 October 2016): http://data.consilium.europa.eu/doc/document/ST-13202-2016-INIT/en/pdf 

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2016 saw progress on reenergising the relations with the neighbouring countries through new 
forms  of  tailor-made  partnerships.  This  has  included  work  on  new  country-specific 
frameworks  for  bilateral  cooperation  in  the  form  of  Partnership  Priorities  and  updated 
Association Agendas. The approach of joint ownership has made it possible to better reflect 
individual needs and aspirations of partner countries as well as EU interests and values. 

Financial assistance is being used in a more flexible way, to support the new priorities of the 
ENP. Member States have been fully involved in the process of defining these priorities also 
through more coordination on financial assistance and joint programming. Closer involvement 
of civil society and other stakeholders has also been ensured.  

The  Global  Strategy  will  guide  the  EU's  external  action  in  the  years  to  come,  and  the 
reviewed  ENP  is  an  important  instrument  to  attain  its  objectives,  particularly  answering  the 
need to enhance the resilience of states and societies to the East and to the South of the EU, in 
line with relevant Council Conclusions3. The reviewed ENP is also coherent with the Rome 
Declaration promoting a stronger role of Europe on the global stage4 and is in line with the 
Agenda 2030 for Sustainable Development and its sustainable development goals. 

The following sections outline developments in EU’s bilateral and regional engagement with 
partners;  provide  details  related  to  progress  on  key  priorities  of  cooperation;  describe  the 
impacts of financial assistance and take a forward look at how the ENP is developing. 

2. STATE OF PLAY OF BILATERAL AND REGIONAL ENGAGEMENT 

Bilateral engagement 

The revised ENP recognises that individual partners have different aspirations and interests in 
their relations with the EU. In 2016, the EU has actively sought the views of partners on the 
way  forward  and  consultations  have  been  launched  and  concluded  with  a  number  of  ENP 
countries  on  new  frameworks  for  bilateral  engagement.  Whether  through  Partnership 
Priorities, updated Association Agendas or existing Action Plans, the aim has been to reflect 
the  level  of  ambition  of  each  country  in  its  relations  with  the  EU.  These  joint  bilateral 
documents  reflecting  shared  political  priorities  provided  the  basis  for  the  ongoing 
programming  exercise  of  the  new  bilateral  assistance  programmes  (Single  Support 
Frameworks) under the European Neighbourhood Instrument (ENI) for the period 2017-2020 
that is being conducted in close coordination with the national authorities of partner countries 
and all other relevant stakeholders, including civil society, social partners, local and regional 
authorities and private sector organisations. 

3 Council Conclusions on the Global Strategy of the European Union's Foreign and Security Policy (doc. 
13202/16 of 17 October 2016): http://data.consilium.europa.eu/doc/document/ST-13202-2016-INIT/en/pdf 
4 Rome Declaration,  25 March 2017, (http://www.consilium.europa.eu/press-releases-
pdf/2017/3/47244656633_en.pdf) 

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Partnership Priorities with Lebanon and Jordan were adopted at the end of 20165. In order to 
help  both  countries  address  the  impact  of  the  refugees  following  the  Syrian  conflict, 
Compacts  containing  priority  actions  and  mutual  commitments  were  agreed  and  annexed  to 
the  Partnership  Priorities.  Both  partner  countries  were  already  receiving  EU  assistance  to 
address the needs and promote the resilience and self-reliance of refugees and vulnerable host 
communities, ensuring a Linking Relief, Rehabilitation  and Development  (LRRD) approach 
that encompasses also humanitarian aid, and provide long-term benefits in various areas such 
as public health, education and job creation. 

The negotiation of Partnership Priorities provided an opportunity to put relations with Algeria 
and Egypt on a new footing.  

Partnership  Priorities  with  Algeria  were  adopted  in  March  20176.  Dialogues  took  place  on 
energy  and  migration;  an  agreement  was  signed  on  civil  protection  and  cooperation 
programmes  have  been  adopted  on  renewable  energy,  economic  diversification  and  public 
financial  management,  responding  to  the  major  economic  and  fiscal  challenges  Algeria 
currently faces.  

Draft Partnership Priorities with Egypt were provisionally agreed in December 2016. Foreign 
Minister Shoukhry was invited to the March Foreign Affairs Council to discuss the different 
ways in which the priorities can be taken forward.  

With  Tunisia  2016  has  seen  an  intensification  of  existing  forms  of  cooperation.  A  Joint 
Communication was adopted in September 20167 that set out further actions to promote long-
term  stability,  including  good  governance,  justice  reform,  socio-economic  development  and 
security. It also provided a basis for the creation of the Joint Parliamentary Committee EU-
Tunisia  in  September  2016  and  for  the  EU's  substantial  contribution  at  the  Tunisia  2020 
investors' conference in November 2016. 

The EU has supported Morocco's reforms agenda in a wide range of social (education, health, 
social  protection,  gender,  Technical  Vocational Education  and  Training  -  TVET),  economic 
(regulatory approximation, green growth, agriculture, and public financial management) and 
justice  sectors.  Technical  and  financial  cooperation  with  Morocco  continued  throughout  the 
period of legal uncertainty pending the European Court of Justice (ECJ) decision on the EU 
Morocco Agriculture Agreement.  

Libya's internal situation remains extremely complex and volatile despite the signature of the 
Libyan  Political  Agreement  (LPA)  in  December  2015.  EU  cooperation  has  adjusted  to  the 
very  particular  circumstances,  including  by  channelling  support  through  municipalities.  The 

5 Decision No 1/2016 (11 November 2016) of the EU-Lebanon Association Council agreeing on EU-Lebanon 
Partnership Priorities (http://www.consilium.europa.eu/en/press/press-releases/2016/11/15-eu-lebanon-
partnership/) and EU-Jordan Partnership Priorities and annexed Compact, 20 September 2016 
(http://data.consilium.europa.eu/doc/document/ST-12384-2016-ADD-1/en/pdf) 
6 doc. UE-AL 3101/17 ADD1 of 7 March 2017 - Priorités communes de Partenariat entre la République 
Algérienne Démocratique et Populaire (Algérie) et l'Union européenne (UE) au titre de la Politique européenne 
de voisinage révisée (http://www.consilium.europa.eu/en/press/press-releases/2017/03/13-eu-algeria/) 
7 Strengthening EU support to Tunisia, JOIN(2016) 47 final 

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international community, including the EU, is committed to fully implement the LPA and to 
continue  to  mediate  with  the  objective  of  bringing  all  Libyan  actors  together  to  find  a 
comprehensive agreement to restore law and order, enhance the rule of law, bring the armed 
and  security  forces  under  civilian  control,  avoid  financial  collapse,  preserve  the  country's 
unity and tackle terrorism and irregular migration.  

The EU Strategy for Syria8 sets out the EU's strategic goals, immediate objectives and lines of 
action  for  the  resolution  of  the  war  in  Syria  and  dealing  with  its  immediate  and  long-term 
humanitarian  impact.  It  defines  how  the  EU  can  play  a  stronger  role  in  contributing  to  a 
lasting  political  solution  in  Syria  under  the  existing  UN-agreed  framework.  It  also  looks  at 
how the EU can continue its assistance to over 13 million people in need in Syria, help build 
resilience  and  stability  in  the  country,  and  support  post-agreement  reconstruction  and  the 
voluntary,  dignified  and  safe  return  of  refugees  and  internally  displaced  persons  once  a 
credible political transition is underway.  

While the bilateral programmes with the Syrian government have been suspended since 2011, 
the  EU  supports  the  Syrian  people  by  providing  life-saving  humanitarian  aid  and  resilience 
support  and by working  with  the civil  society  and NGOs.  The EU's support has  focused on 
issues such as community-level resilience, delivery of public services and local governance, 
human rights and accountability,  peacebuilding, and gender and  minority issues,  in  order  to 
enhance  the  capacity  of  civil  society  organisations  to  participate  in  the  transition  and 
stabilisation  of  the  country.  In  2016  the  EU  increased  considerably  its  non-humanitarian 
assistance combining cross-border assistance with support from inside Syria with the aim to 
address the needs of the population and strengthen local resilience. The EU's assistance is also 
used  to  support  significantly  the  five  million  Syrian  refugees  in  neighbouring  countries  and 
their  host  communities  by  providing  humanitarian  aid  as  well  as  resilience  support  with  a 
strong focus on education, access to essential services, and on measures aimed at providing a 
livelihood to refugees to boost resilience and harness self-reliance. The EU, together with its 
Member States, was the largest donor at the Syria London conference in February 2016, and 
deploys  a  range  of  instruments  to  help  countries  dealing  with  socio-economic  and 
environment  consequences  of  the  Syria  crisis.  The  EU-hosted  international  conference  on 
'Supporting  the  future  of  Syria  and  the  region'  in  Brussels  in  April  2017  re-iterated  full 
support and commitment to the UN-moderated intra-Syrian talks in Geneva, as the only forum 
where a political solution should be negotiated. There was a particular emphasis on the role of 
civil society in this process. The Conference concluded with a global commitment of EUR 5.6 
billion for 2017, of which EUR 3.7 billion from the EU and Member States, including EUR 
1.2  billion  from  the  EU  for  both  humanitarian  and  resilience  support.  This  reconfirmed  the 
commitment  made  in  London.  The  European  Union  also  pledged  an  additional  EUR  560 
million for 2018 for Jordan Lebanon and Syria.  

8 Joint Communication Elements on an EU Strategy for Syria (JOIN(2017)11 final of 14 March 2017) and the 
Foreign Affairs Council Conclusions on the EU strategy for Syria of 3 April 2017 
(http://www.consilium.europa.eu/en/press/press-releases/2017/04/03-fac-conclusions-syria/) 

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As  regards  Israel  and  Palestine9,  the  EU  remains  firmly  committed  to  a  two-state  solution, 
which is vital for peace, the stability and long-term development of the region. The EU has 
invested considerably in strengthening the capacity of the Palestinian Authority, above all in 
the  implementation  of  key  reforms  in  areas  such  as  fiscal  consolidation,  regulatory 
framework, and civil service integration. EU funding has also focused on investments that can 
contribute to sustainable improvements of living conditions, particularly in the Gaza Strip.  

In  the  Eastern  Neighbourhood,  there  has  also  been  a  concerted  effort  to  further  develop 
relations in a way that better reflects the specific characteristics of partners.  

The EU is committed to political association and economic integration with Ukraine. To this 
end, parts of the Association Agreement have been provisionally applied since 2014, with the 
Deep  and  Comprehensive  Free  Trade  Area  (DCFTA)  being  provisionally  applied  since  1 
January 2016. In the last two years, significant work has been undertaken with EU political, 
technical  and  financial  support,  to  stabilise  and  modernise  the  country,  with  major  reforms 
adopted by the Ukrainian government, notably in the areas of anti-corruption, judicial independence 
and  the  public  administration.  Support  for  the  political  and  economic  stabilisation  of  Ukraine  is 
delivered under macro-financial assistance and special measures programmes.  

The EU remains committed to its political association and economic integration with Georgia. 
It has further intensified its relations with the country through the entry into force of the EU-
Georgia  Association  Agreement  in  July  2016  (which  has  been  provisionally  applied  since 
2014) with the ongoing review of the EU-Georgia Association Agenda 2017-202010, and the 
accession  of  Georgia  to  the  Energy  Community  Treaty  in  October  2016.  The  EU-Georgia 
Visa  Liberalisation  Dialogue11  proved  to  be  an  effective  tool  for  advancing  wide-ranging 
reforms and paved the way for the entry into force of short-term visa free travel at the end of 
March 2017. 

Relations with the Republic of  Moldova (hereafter 'Moldova') continue in the framework of 
the EU-Moldova Association Agreement that entered into force in July 2016 (which has been 
provisionally applied since 2014). A review of the Association  Agenda for the period 2017-
2020 is ongoing. 

Consultations  on  Partnership  Priorities  have  been  launched  with  Armenia,  Azerbaijan,  and 
Belarus.  

Negotiations  with  Armenia  on  a  new  Comprehensive  and  Enhanced  Partnership  Agreement 
were concluded in February 2017. The EU's cooperation with Armenia focuses on economic 
and  governance  reforms  aiming  at  strengthening  the  country's  resilience  and  inclusive 
economic development. Negotiations on a comprehensive agreement with Azerbaijan aimed 
at replacing the Partnership and Cooperation Agreement (in force since 1999) were launched 
in  February  2017.  The  EU  remains  committed  to  strengthened  cooperation  with  Azerbaijan 
including in the area of economic development, connectivity and civil society support.  

9 This designation shall not be construed as recognition of a State of Palestine and is without prejudice to the 
individual positions of the EU Member States on this issue. 
10 https://eeas.europa.eu/sites/eeas/files/associationagenda_2014_en.pdf 
11 http://europa.eu/rapid/press-release_STATEMENT-17-363_en.htm 

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An informal Coordination Group, formed by EU and Belarus senior officials, was set up at the 
beginning  of  2016  to  better  reflect  the  state  of  bilateral  relations.  Tangible  steps  taken  by 
Belarus to  respect  universal fundamental freedoms,  rule of  law and human rights,  including 
on  the  application  of  the  death  penalty,  will  remain  key  for  the  shaping  of  the  EU's  future 
policy towards Belarus.  

Five  of  the  six  Eastern  partner  countries  are  affected  by  conflicts.  The  EU  has  supported 
diplomatic  efforts  to  find  a  peaceful  solution  to  the  conflict  in  Eastern  Ukraine  through  the 
complete implementation of the Minsk Agreements and continues to fully support a peaceful 
resolution of the conflicts in the breakaway regions of South Ossetia and Abkhazia, as well as 
a peaceful settlement of the Transnistrian conflict with a special status for Transnistria. The 
EU also continues to support a peaceful solution to the Nagorno-Karabakh conflict, where the 
status quo is unsustainable. The conflict does not have a military solution and needs a political 
settlement as soon as possible in accordance with international law. The EU continues to fully 
support the mediation efforts and proposals of the OSCE Minsk Group Co-Chairs. 

Regional engagement 

The  Eastern  Partnership  (EaP)  brings  together  the  EU  and  the  six  countries  of  the  Eastern 
Neighbourhood to work on issues of mutual concern. It is guided by the four priorities set out 
at the Riga Summit12 in 2015: economic development and market opportunities; strengthening 
institutions  and  good  governance;  connectivity,  energy  efficiency,  environment  and  climate 
change; and mobility and people-to-people contacts.  

Based  on  these  priorities,  since  2016  a  more  results-oriented  approach  towards  the  Eastern 
Partnership  has  been  applied  with  a  continued  focus  on  strengthening  state  and  societal 
resilience. A new strategic work-plan combining both bilateral and regional cooperation aims 
to guide the work of the EU and the six countries between Summits, by focusing on twenty 
deliverables  by  2020.  Each  deliverable  is  linked  to  implementation  tools,  with  clear 
milestones  to  be  reached  by  the  time  of  the  next  Eastern  Partnership  Summit  in  November 
2017, and targets to be achieved by 2020. In parallel, work has continued in the framework of 
the Black Sea Synergy13. 

The EaP engages with the societies and the institutions of its partners, including the legislators 
through  the  EURONEST  Parliamentary  Assembly14,  and  municipal  and  local  government 
levels  through  the  CORLEAP15  framework.  The  EaP  Civil  Society  Forum  and  the  national 
civil  society  platforms  contributed  to  the  policy  dialogue  at  all  levels,  from  Association 
Committees  to  activities  under  Panels  and  Platforms,  including  ministerial  meetings.  A 
number  of  such  ministerial  meetings  have  been  held  under  the  EaP,  including  on  health, 

12 http://eeas.europa.eu/archives/docs/eastern/docs/riga-declaration-220515-final_en.pdf 
13 Communication on Black Sea Synergy – A new regional cooperation initiative, COM(2007) 160 final of 11 
April 2007, and the Joint Statement of the Ministers of Foreign Affairs of the countries of the European Union 
and of the wider Black Sea Area (Kyiv, 14 February 2008) 
14 The members representing the European Parliament and members representing Parliaments of the Eastern 
European Partners 
15 Conference of the Regional and Local Authorities for the Eastern Partnership 

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justice  and  home  affairs,  small  and  medium  enterprises  (SMEs),  environment  and  climate 
change, digital economy and research and innovation. 

Effective  communication  of  EU  policies  in  the  region  has  been  enhanced  by  the  EU's  new 
East Strategic Communication (StratComm) Task Force and by strengthening the visibility of 
EU cooperation programmes. In Armenia and Moldova, campaigns against corruption and in 
support of the rule of law were designed. Additional communication activities promoted the 
concrete  benefits  of  EU  assistance  to  citizens  in  Georgia  such  as  visa  liberalisation  and 
Association Agreements. In Ukraine the 'Stronger Together' framework has helped produce a 
bold, coherent message on the EU's assistance to Ukraine.  

Territorial cooperation with Member States and EaP countries across the external borders of 
the  EU  has  been  continued  through  adoption  of  cross-border  cooperation  programmes  for 
2014-202016 on land border, sea-crossing and sea-basin programmes. Progress has been made 
in strengthening the effective participation of Moldova and Ukraine in the EU macro-regional 
Strategy for the Danube Region17. 

The  Union  for  the  Mediterranean  (UfM)  brings  together  EU  Member  States,  the  Southern 
Neighbourhood and other countries of the Mediterranean region. The ENP Review indicated 
that in its regional cooperation efforts in the Southern Neighbourhood priority would be given 
to  the  UfM.  Since  2012  Jordan  has  co-chaired  the  UfM,  underlining  the  joint  ownership  of 
this  important  forum.  On  the  initiative  of  the  HR/VP,  meetings  of  Foreign  Ministers  were 
held, most  recently in January 2017. The UfM has  a unique potential  in the region to  bring 
together all the partners concerned, and to deliver direct benefits to the region particularly in 
the areas of youth employment, entrepreneurship, environment, water and infrastructure. This 
is illustrated by UfM Ministerial Meetings where joint priorities in key areas were agreed by 
ministers, such as on Blue Economy (November 2015)18, Employment and labour (September 
2016)19  and  on  Energy  (December  2016)20.  The  first  UfM  Ministerial  Meeting  on  Regional 
Co-operation and Planning (June 2016) resulted in stronger commitment of partner countries 
to  regional  co-operation  frameworks  with  an  emphasis  on  concrete,  tangible  initiatives  and 
projects.  A  UfM  Ministerial  meeting  on  Water  took  place  in  April  2017  and  approved  the 
preparation of UfM Water Agenda for the region21. A roadmap22 with concrete proposals to 
revise  existing  priorities  and  to  increase  synergies  was  endorsed  by  the  UfM  Ministers  of 
Foreign Affairs on 23 January 2017 in Barcelona. The EU has continued to work towards the 
organisation of a  UfM Trade Ministerial. The Digital  Economy Expert Working Group was 
set up to address digital economy issues at regional level.  

16 http://eeas.europa.eu/archives/docs/enp/pdf/financing-the-enp/cbc_2014-
2020_programming_document_en.pdf 
17 http://ec.europa.eu/regional_policy/en/policy/cooperation/macro-regional-strategies/danube/ 
18 https://webgate.ec.europa.eu/maritimeforum/sites/maritimeforum/files/2015-11-17-declaration-on-blue-
economy_en_0.pdf 
19 http://ufmsecretariat.org/wp-content/uploads/2016/09/UfM-Ministerial-Declaration-Employment-and-
Labour.pdf 
20 http://data.consilium.europa.eu/doc/document/ST-15224-2016-INIT/en/pdf 
21 www.consilium.europa.eu/en/meetings/gac/2017/04/st08307_en17_pdf/ 
22 http://ufmsecretariat.org/wp-content/uploads/2017/01/UfM-Roadmap-23-JAN-2017.pdf 

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The EU also strengthened its cooperation with the League of Arab States (LAS). Under the 
EU-LAS Strategic Dialogue launched in November 2015 in Brussels, two additional working 
groups - on fighting transnational organised crime and on international migration - have been 
added  to  those  already  existing  on  counter-terrorism,  weapons  of  mass  destruction,  crisis 
management,  early  warning  and  crisis  response,  and  humanitarian  assistance.  So  far  those 
working groups have focused on policy dialogues and exchanges of best practices. The EU-
LAS Ministerial Meeting in Cairo, in December 2016, confirmed the Joint Work Programme, 
which puts an emphasis on activities related to crisis management, civil society, human rights, 
diplomacy,  electoral  observation  and  increased  participation  of  women  in  economic 
development.  The  HR/VP  participated  in  the  LAS  annual  summit  held  in  Jordan  in  March 
2017. 

The  EU's  cooperation  with  the  Organisation  of  Islamic  Cooperation  (OIC)  has  gained  new 
impetus  with  the  successful  co-organisation  of  a  High  Level  Event  on  Anti-Muslim 
Discrimination and Hatred in New York in January 2016.  

Since its launch in  2014, the annual Brussels Civil Society Forum South has  been a pivotal 
component of the ongoing consultative process with civil society in an initiative that aims to 
strengthen  mechanisms  for  dialogue  between  civil  society,  the  EU  and  authorities  in  the 
Southern  Neighbourhood.  The  2016  Forum's  substantive  discussions  focussed  on  migration 
and mobility, reducing inequalities and the shrinking space for civil society. The Anna Lindh 
foundation,  with  its  42  country  UfM-wide  network  of  5,000  civil  society  organisations, 
continues to be the EU's main interlocutor in matters of intercultural dialogue, and promotion 
of mutual understanding.  

The  EU  has  supported  the  establishment  of  SESAME23,  a  unique  international  science 
diplomacy  initiative  based  in  Jordan  and  designed  as  a  science  for  peace  initiative. It  is  the 
Middle East's first major international research centre. It includes also countries from beyond 
the Neighbourhood region (Bahrain, Iran, Pakistan and Turkey). 

Significant  progress  has  also  been  made  in  setting  up  the  Partnership  for  Research  and 
Innovation  in  the  Mediterranean  Area  (PRIMA),  the  objective  of  which  is  to  develop  novel 
solutions for sustainable water management and food production.  

The  EU  is  also  keen  to  participate  in  and  encourage  other  forms  of  regional  cooperation, 
especially  in  the  Southern  neighbourhood,  where  regional  cooperation  is  limited.  In  this 
regard, the EU participates in various formats of the 5+5 Dialogue24 and is a strong proponent 
of increased cooperation among the countries of the Maghreb. 

In addition, the EU is engaged with all African States including North African countries in the 
framework  of  the  Joint  Africa-EU  Strategy25  and  through  its  cooperation  with  the  African 

23 Synchrotron-light for Experimental Science and Applications in the Middle East 
24 This format includes 5 countries from the Northern shore of the Mediterranean (Spain, France, Italy, Malta and 
Portugal) and 5 from the Southern shore (Algeria, Libya, Morocco, Mauritania and Tunisia) 
25 http://www.africa-eu-partnership.org/sites/default/files/documents/eas2007_joint_strategy_en.pdf 

10 

 
 
 
                                                            
Union.  The  Commission  and  the  High  Representative  have  recently  adopted  a  Joint 
Communication26 to give the strategic Partnership with Africa a renewed impetus. 

Overall,  the  EU  is  working  on  improving  strategic  communication  and  on  developing 
strategies tailored to the audiences both in the East and in the South. In particular, the OPEN 
programme27  is  contributing  to  more  focused  communication  activities  by  using  regular 
opinion  polling  and  targeting  messages  in  the  ENP  countries  through  social  media 
campaigning, people-to-people contacts and media training. Also, using culture as a tool for 
public diplomacy will contribute to making the EU more visible and a stronger global actor in 
the Neighbourhood. 

3. PROGRESS ON KEY PRIORITIES 

The  overall  objective  of  the  reviewed  ENP  is  to  support  the  stabilisation  of  Europe's 
Neighbourhood  and  its  resilience.  This  is  pursued  through  targeted  actions  reflecting  EU 
priority  areas  of  interest  as  mentioned  in  the  Review:  good  governance,  democracy,  rule  of 
law  and  human  rights;  economic  development  for  stabilisation;  security;  and  migration  and 
mobility.  

There is a shared understanding with partners that particular attention needs to be devoted to 
reforms that strengthen key public services, and the resilience of societies and communities in 
adapting to rapid change and external pressures. These reforms also enable the EU to deliver 
tangible  benefits  to  citizens,  for  example  through  visa  liberalisation,  support  to  creation  of 
opportunities and employment for youth and increased flexibility in addressing each country's 
economic and trade relations with the EU.   

Good governance, democracy, rule of law and human rights  

The  EU's  own  stability  is  founded on  good  governance,  democracy,  rule  of  law  and  human 
rights, and promotion of reforms in these areas is key to the ENP's objective of stabilisation. 
The  EU  supports  efforts  promoting  the  rule  of  law  and  democratic  values,  including  justice 
reform  and  independence  of  the  judiciary,  the  fight  against  corruption,  the  protection  of 
human rights, fundamental freedoms and civil society dialogue. These feature prominently in 
discussions  on  Partnership  Priorities  and  revised  Association  Agendas.  Through  political 
dialogue,  the  EU  continues  to  engage  with  partners  on  promoting  respect  of  international 
human rights commitments. 

Elections  were  held  in  some  ENP  countries.  Most  were  held  in  compliance  with  applicable 
international  standards  for  democratic  and  transparent  elections.  In  Egypt,  the  institutional 
steps  foreseen  by  the  transitional  roadmap  were  completed  late  2015  when  legislative 
elections were held. Parliamentary elections in Jordan were assessed as 'transparent and well-

26 JOIN(2017) 17 final of 4 May 2017  
27 The OPEN Neighbourhood Programme has been launched in November 2015. 

11 

 
 
 
 
 
                                                            
administered' by an EU Electoral Observation Mission28. The EU has consistently supported 
the development of Jordan's electoral system, and in February 2017 adopted a new EUR 15 
million  programme29  to  further  strengthen  democratic  governance.  An  EU  Election  Experts 
Mission  accompanied  the  parliamentary  elections  held  in  Morocco  in  October  2016,  which 
were  assessed  as  a  step  forward  in  the  consolidation  of  the  programme  of  reforms  that 
Morocco  has  undertaken  since  201130.  Parliamentary  elections  in  Georgia  were  positively 
assessed by the OSCE-ODIHR (Organisation for Security and Cooperation in Europe / Office 
for Democratic Institutions and Human Rights) electoral observation mission as 'competitive, 
well-administered  and  fundamental  freedoms  were  generally  respected'31.  The  International 
Election Observation Mission for parliamentary elections in Belarus in September 2016 noted 
the willingness to engage in electoral reform and first steps undertaken by Belarus to address 
some  long-standing  issues,  while  a  number  of  key  OSCE/ODIHR  and  Venice  Commission 
recommendations  remain  unaddressed.  This  shows  the  need  for  comprehensive  electoral 
reform as part of the broader democratisation process.  

Deficiencies in rule of law, corruption, and weak and unaccountable administrative capacity, 
persist in many neighbouring countries, hampering economic and political developments both 
in the East and the South.  

In 2016 the Commission developed in close co-operation with OECD/SIGMA the Principles 
of Public Administration (PAR) to be used as a reference framework for those ENP countries 
that are committed to reform their administrations in line with internationally recognised good 
governance principles and practices. 

With  EU  support,  Tunisia,  Georgia,  and  Ukraine  conducted  major  reforms  in  the  area  of 
justice  sector,  rule  of  law  and  the  fight  against  corruption,  alongside  PAR.  Tunisia  set  out 
plans  for  further  improvements  in  governance (in  particular  reform  of  public  administration 
and  the  fight  against  corruption)  in  the  five-year  Development  Plan  (2016-2020).  Georgia 
stepped  up  efforts  to  tackle  petty  corruption  with  a  package  of  justice  reforms.  In  Ukraine 
large  scale  programmes  were  undertaken  to  foster  decentralisation,  PAR,  the  fight  against 
corruption, and the rule of law, with the assistance of the Support Group for Ukraine and the 
EU Advisory Mission for civilian security sector reform. In Moldova, several laws reforming 
the  justice  sector,  on  PAR  and  on  anti-corruption  were  adopted  in  2016  and  their 
implementation is still on-going. In Armenia, a new government PAR programme was ratified 
in 2017 while activities to promote the principles of public administration are being stepped 
up in Azerbaijan. Algeria, Morocco and Tunisia are engaging in public financial management 
modernisation.  In  Lebanon,  a  long  period  of  political  deadlock  was  overcome  with  the 
election of a President and the formation of a government, but weaknesses in the transparency 

28 https://eeas.europa.eu/election-observation-missions/eom-jordan-
2016_en/16317/European%20Union%20Election%20Observation%20Mission%20to%20Jordan%20presents%
20its%20final%20report%20including%20recommendations%20for%20further%20improvement%20of%20elec
tions 
29 https://eeas.europa.eu/delegations/jordan/20411/european-union-supports-jordan-political-and-environmental-
reforms-eu115-million_en 
30 https://www.ecoi.net/file_upload/1226_1481615902_morocco-elections.pdf 
31 http://www.osce.org/odihr/elections/georgia/273226 

12 

 
 
 
                                                            
and  efficiency  of  government  institutions  remain,  particularly  on  corruption.  Municipal 
elections were successfully held in May 2016, and parliamentary elections are still pending. 
The  EU  has  continued  its  intense  cooperation  with  Israel  across  a  wide  range  of  sectors. 
However, the full potential of the relationship is dependent upon progress on the Middle East 
Peace Process. The EU has invested considerably in the Palestinian Authority to promote key 
reforms,  in  particular  on  governance,  fiscal  consolidation  and  regulatory  framework.  The 
ongoing  occupation  and  the  divide  between  West  Bank  and  Gaza  remain  obstacles  to 
Palestinian state-building. 

The last two years have seen a significant deterioration of human rights as a consequence of 
the armed conflicts in Libya, Syria and eastern Ukraine, the illegal annexation of Crimea and 
Sevastopol by Russia, and terrorist attacks. In some countries anti-democratic trends have led 
to crack downs on fundamental freedoms, the persecution of human rights defenders and the 
undermining  of  democratic  institutions.  The  EU  continues  to  closely  monitor  these  trends, 
which figured prominently in its political dialogues at bilateral level and in multilateral fora, 
and to maintain regular contacts with human rights organisations and human rights defenders. 
The  European  Instrument  for  Democracy  and  Human  Rights  (EIDHR)  remains  a  vital 
instrument,  including  in  the  most  difficult  environments,  to  deliver  continued  support  to 
individual human rights defenders as well as to civil society organisations (CSOs) working on 
human  rights  and  democratisation.  EU  financial  support  to  the  European  Endowment  for 
Democracy (EED) was also renewed in order to provide assistance to advocacy organisations 
and individuals in countries where promotion of human rights has become difficult.  

In 2016, the EU started implementing the Rights-Based Approach, encompassing all human 
rights,  as  one  of  the  guiding  principles  of  ENI  financial  assistance  and  an  opportunity  to 
mainstream more effectively the protection of human rights and fundamental freedoms.  

Engagement with Civil Society Organisations (CSOs) is an essential part of the EU's relations 
with all ENP countries. The EU has continued to challenge the shrinking space available for 
civil  society  action  throughout  the  Neighbourhood  and  champions  the  rights  to  freedom  of 
expression  and  association  to  enhance  a  vibrant  and  resilient  civic  culture.  The  EU  is 
advancing  on  its  policy  to  reach  out  to  smaller  and  newer  organisations  including  those 
outside  capitals  and  is  implementing  roadmaps  for  engagement  with  civil  society32.  Civil 
Society  Fellowship  initiatives  are  now  delivered  through  fully-fledged  programmes  running 
both in the South and in the East, targeting youth organisations and policy groups. In Tunisia, 
a  vibrant  civil  society  is  consulted  regularly  in  the  run-up  to  institutional  meetings  and 
negotiations on DCFTA, mobility partnership and other issues. In Georgia, Jordan, Lebanon 
and Morocco, the EU has  reached out  to  an ever broader  range of political, social, cultural, 
and  human  rights  actors.  In  Egypt,  support  to  civil  society  is  a  focus  of  EU's  bilateral 
assistance, given the role independent civil society organisations can play in contributing to 
sustainable stability and security. The EU has very close and good cooperation with the well-
developed  civil  society  in  Ukraine.  Specific  targets  are  set  in  relation  to  increasing  the 
capacity of civil society organisations to enter policy dialogue with national governments and 

32 https://europa.eu/capacity4dev/public-governance-civilsociety/minisite/eu-country-roadmaps-engagement-
civil-society-introduction 

13 

 
 
 
                                                            
the  EU,  increasing  the  quality  of  structured  dialogue  with  the  Eastern  Partnership  Civil 
Society Forum and its National Platforms. 

In  2017 the Young  Mediterranean  Voices  initiative  has  started  building on  the  Young  Arab 
Voices programme and has expanded its reach to include EU countries as well as countries in 
the Southern neighbourhood. Under the auspices of the Anna Lindh Foundation the network 
brings  together  young  teachers,  journalists,  social  entrepreneurs  as  well  as  peace  and 
democracy activists. The programme aims at training young leaders in debating and advocacy 
skills to prepare them for active participation in policy making initiatives and political life.  

Regional cooperation in the field of rule of law and good governance has to a certain extent 
strengthened civil societies in the Southern Neighbourhood, with focus on gender equality and 
the integration of national minorities.  

The implementation of the EU Gender Action Plan 2016-202033 has led to mandatory gender 
analysis  of  all  project  proposals  and  the  inclusion  of  gender  in  all  Partnership  Priorities, 
Association Agendas and country reports. Gender is mainstreamed into the document 'EaP 20 
deliverables for 2020'. 

The  ENI  incentive-based  mechanism34  ('Umbrella  Programme')  recognises  particular 
commitment to political reform. Allocations for 2016 were made based on assessments of 14 
countries'35  progress  in  building  deep  and  sustainable  democracy.  For  the  2016  exercise, 
Georgia,  Tunisia  and  Ukraine  were  allocated  additional  funds  that  were  used  to  increase 
support for priority activities, including public administration reform, anti-corruption, rule of 
law and civil society support.  

Economic development for stabilisation 

is  key 

to  stabilisation  and 

Sustainable  economic  development 
to  strengthening 
Neighbourhood countries' ability to tackle some of the challenges that are also a concern to 
the  EU  –  from  migratory  flows,  to  radicalisation,  social  instability  and  the  urgent  need  to 
provide positive perspectives for growing and predominantly young populations. Cooperation 
in  this  area  seeks  to  foster  entrepreneurship  and  create  an  attractive  business  climate 
especially for SMEs, develop human capital through education and vocational training, ensure 
transparent market conditions, support the development of digital economy, and appropriate 
infrastructure – all of which are essential for growth and job creation.  

As regards domestic business environments, in October 2016, the EU together with the OECD 
launched  a  joint  Programme  on  Promoting  Investment  in  the  Mediterranean36,  which 
promotes  policy  dialogue  and  initiatives  to  support  partner  governments'  efforts  on  the 
investment  climate  and  business  environment.  This  benefits  people  through  trade-led 

33 https://europa.eu/capacity4dev/public-gender/minisite/eu-gender-action-plan-2016-2020 
34 Article 4.1 of the Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 
2014 establishing a European Neighbourhood Instrument 
35 Syria was not included in the 2016 assessment and Israel does not participate in the Umbrella Programme.   
36 https://www.oecd.org/investment/Promoting-Investment-in-the-Mediterranean-EN.pdf 

14 

 
 
 
 
                                                            
economic growth, a wider choice of products and services of a higher quality at lower cost for 
enterprises and consumers, resulting not only in greater imports, but also in a more developed 
domestic  market  and  better  export  opportunities.  Improving  commercial  justice  and 
alternative  dispute  resolution,  deepening  social  dialogue  and  improving  the  service  delivery 
capacity of public administration will also contribute to a better business environment. 

The setting up and implementation of Deep and Comprehensive Free Trade Areas (DCFTA) 
with Georgia, Moldova and Ukraine is opening new trade and investment opportunities and a 
more stable operating framework for companies from the EU and the region. The EU is the 
number one trading partner for all three DCFTA partners. The EU share in the total trade of 3 
DCFTA partners has been increasing during recent years and in  2016 amounted to 55%  for 
Moldova, 41% for Ukraine and 30% for Georgia. The EU is also the first trading partner for 
Azerbaijan  and  Armenia,  with  EU  shares  accounting  for  47%  and  26%  of  their  total  trade 
respectively. For Belarus, the EU is the second most important trading partner with a share of 
25%37. 

In  April  2016,  the  EU  granted  an  additional  duty  free  quota  for  olive  oil  imported  from 
Tunisia in 2016 and 201738. This autonomous trade measure was the urgent response of the 
Union  following  the  terrorist  attacks  of  2015  in  Tunisia  to  support  its  economy,  reduce 
pressure for migration and social unrest. EU-Tunisia negotiations on a DCFTA are ongoing. 
EU  support  to  enhance  agricultural  sector  was  provided  also  in  Georgia,  Moldova  and 
Armenia.  In  September  2016,  the  Commission  adopted  a  proposal  for  a  Regulation  on  the 
introduction of temporary autonomous trade measures for Ukraine39. 

The  EU’s  approach  to  each  of  the  ENP  partners  reflects  each  country’s  own  level  of 
commitment to the renewed partnership with the EU.  

In July 2016 the EU agreed on simplified Rules of Origin40 for exports from Jordan of a large 
range of products for a 10-year duration, with a mid-term review, providing job opportunities 
for both Jordanians and also Syrian refugees.     

A  number  of  initiatives  on  economic  modernisation  and  entrepreneurship  strategies  aim  at 
fostering  SMEs  through  the  EU  Initiative  for  Financial  Inclusion  in  the  South  and  the 
EU4Business  initiative  in  the  East.  New  regional  actions  were  launched  to  enhance  links 
between EU and business support institutions in the East and in the South, and in support of 
social entrepreneurship as an innovative factor for job creation, especially among the youth. 
In both East and South, the EU has provided substantial opportunities to a range of SMEs and 
midcap companies. This assistance is  channelled through International Financial Institutions 
(IFIs)  and  Member  State  development  institutions  in  the  framework  of  the  Neighbourhood 
Investment  Facility  (NIF).  The  EU,  in  cooperation  with  financial  institutions,  has  adopted 
substantial programmes to help SMEs in Georgia, Ukraine, Moldova, Tunisia and Morocco to 
meet  the  technical  preparedness,  competitiveness  and  value  chain  integration  challenges  of 

37 2016 ComTrade data 
38 http://ec.europa.eu/transparency/regdoc/rep/1/2015/EN/1-2015-460-EN-F1-1.PDF 
39 COM(2016) 631 final of 29 September 2016 
40 http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:22016D1436&from=EN 

15 

 
 
 
                                                            
closer  trade  cooperation,  including  in  key  sectors  of  agriculture  and  manufacturing.  In 
Morocco,  these  financial  facilities  are  additional  to  the  Green  Growth  &  Competitiveness 
programme,  which  has  a  particular  focus  on  SMEs  and  on  improving  the  business 
environment.  As  regards  Egypt,  the  EU  adopted  a  new  programme  in  2016  entitled  EU 
Facility  for  Inclusive  Growth  and  Job  Creation41  channelled  through  the  NIF.  In  Libya,  on-
line training facilities in co-operation with the national centre for SMEs boost employability 
of youth. 

Increased emphasis has been put, amongst EaP countries, on drawing together the strands of 
cooperation  in  youth  employment  and  employability.  The  recently  adopted  EU4Youth 
programme addresses youth employability and disadvantaged youth in the East and the active 
participation  of  young  people in  society  and  economy  by  developing  skills  needed  in  the 
labour market and by supporting them in becoming leaders and entrepreneurs. In Azerbaijan, 
the  EU  is  helping  to  modernise  the  country’s  Vocational  Education  and  Training  (VET) 
systems and improve their links to labour market needs. In Georgia, Moldova and Armenia, 
the EU continues to support rural development and sustainable agriculture through the third 
phase  of  the  European  Neighbourhood  Programme  for  Agriculture  and  Rural  Development 
(ENPARD). To develop the digital economy42, the EaP countries have agreed during 2016 to 
focus  their  digital  cooperation  on  6  priority  topics:  (tele)communications  legislative 
framework; trust & cybersecurity; digital skills; Information and Communication Technology 
innovation  and  start-ups;  eTrade  including  eCommerce,  eCustoms  and  eLogistics;  and 
eHealth.  Regional  EaP  networks  have  been  established  for  each  of  these  topics  and  action 
plans for 2017-2020 have been drawn.  

Work  has  continued in implementing  regional development policy in  EaP partner countries. 
For  example,  in  2016,  Moldova  adopted  a  new  multiannual  National  Strategy  for  Regional 
Development  for  2016-202043,  as  did  Armenia  for  the  period  2016-202544.  In  the  South, 
decentralisation  and  regionalisation  are  key  elements  of  the  transition  in  Tunisia.  Important 
developments  here  in  2016  include  the  creation  of  a  Ministry  of  Local  Affairs  and 
Environment45, as well as adoption of a new territorial development plan for 201646. 

Given the large share  of young people in  the overall population  in  the South, the education 
sector is a priority. VET programmes are being supported in Jordan, Morocco, Algeria, Egypt 
and Tunisia. In December 2016, the EU and Tunisia launched a Partnership for Youth, with a 
particular  focus  on  education,  vocational  training,  employment  and  mobility.  Primary  and 

41 https://ec.europa.eu/neighbourhood-
enlargement/sites/near/files/c_2016_6633_egypt_aap_2016_part_2_aap_2017_part_1_annex_1.pdf 
42 https://europa.eu/capacity4dev/file/30742/download?token=r01Vw6AD 
43 http://particip.gov.md/public/files/Moldova_2020_ENG1.pdf 
44 https://eeas.europa.eu/sites/eeas/files/armenia_development_strategy_for_2014-2025.pdf 
45 Ministre des affaires locales et de l’environnement 
46 http://www.tunisia2020.com/plan-2016-2020/ 

16 

 
 
 
                                                            
secondary  education  sectors  are  backed  through  the  PEGASE  mechanism47  as  well  as  EU's 
contribution to UNRWA48 in Palestine.  

Education  and  youth  cooperation  is  being  supported  by  Erasmus+  programme.  Through  the 
2016  projects  only,  4,900  South  Med  and  4,100  Eastern  Partnership  students  and  academic 
staff  will  be  supported  to  study,  teach  or  follow  training  in  Europe  (while  2,400  and  1,900 
Europeans will move to respective neighbouring countries). 57 new capacity building projects 
further  support  the  modernisation  of  higher  education  systems  and  universities  in 
neighbouring countries.  

In 2016, around 8,900 young people and youth workers from the neighbouring countries have 
taken  part  in  non-formal  education  projects  such  as  exchanges,  training  and  volunteering 
(6,700 from EaP and 2,200 from South Med).  

Under EU4Youth, a new Eastern Partnership Youth Window has been introduced within the 
framework  of  Erasmus+  for  capacity  building  of  youth  organisations  in  the  areas  of  civic 
engagement and entrepreneurship.  Similarly, a Youth Window has been launched in Tunisia. 

Research  and  innovation  was  boosted  in  2016  by  the  launch  of  EU4Innovation  to  offer  a 
single  visible  framework  for  all  the  EU's  activities  supporting  the  reinforcement  of  Eastern 
Partnership  countries'  innovation  capacities.  Two  agreements,  each  worth  EUR  50  million, 
under  the  European  Investment  Bank's  InnovFin  programme,  providing  loan  guarantees  for 
innovative companies, were signed with banks in Ukraine and Georgia.  

In addition to the Erasmus+, participation in Creative Europe (for Georgia, Moldova, Ukraine 
and  Tunisia),  COSME49  and  Horizon  2020,  including  the  Marie  Skłodowska-Curie  actions, 
opens up new cooperation opportunities for administrations, businesses, universities, cultural 
and  audio-visual  operators,  professionals,  young  people,  students  and  researchers.  The  EaP 
Connect initiative allows researchers and students in the EaP to virtually collaborate with their 
counterparts  in  over  10,000  research  and  education  establishments  in  Europe.  The  EaP 
Culture  and  Creativity  Programme  provides  important  support  to  capacity  building  for  the 
development  and  professionalisation  of  the  cultural  sector  in  the  EaP  countries.  Tunisia, 
Georgia and Armenia became associated to Horizon 2020 in 2016 (joining Moldova, Ukraine, 
and  Israel).  Armenia  joined  COSME  in  January  2016  while  Ukraine  ratified  the  COSME 
Agreement  in  February  2017.  Furthermore,  Ukraine  became  associated  to  the  Euratom 
Research and Training Programme. 

Capacity building activities on Smart Specialisation, launched by the European Commission 
in 2016 with Tunisia, Moldova and Ukraine, have strong potential to boost innovation-driven 
economic development in ENP partner countries and continue in 2017. 

Energy  security  is  key  to  political  and  social  stability  in  the  Neighbourhood  and  the  EU  is 
therefore  active  in  promoting  in  particular  the  use  of  renewable  energy  sources  and  energy 

47 Mécanisme Palestino-Européen de Gestion de l'Aide Socio-Economique:  
http://europa.eu/rapid/press-release_IP-08-94_en.htm 
48 The United Nations Relief and Works Agency for Palestine Refugees in the Near East 
49 Europe’s programme for small and medium-sized enterprises 

17 

 
 
 
                                                            
efficiency. The EU scales up coordination with the IFIs through targeted actions, including on 
energy  efficiency,  in  a  number  of  pilot  countries  (Tunisia,  Georgia  and  Ukraine),  in  which 
financial assistance will be accompanied by regulatory reform. The EU continued to develop 
an energy strategic partnership with Algeria.  In this context, in 2016 a successful EU-Algeria 
business forum on energy took place in Algiers and a new cooperation project was launched 
to  support  renewable  energies  and  energy  efficiency50.  In  Egypt,  the  EU  contributed  to  the 
funding  of  the  world's  largest  windfarm  and  in  Morocco  the  world's  largest  solar  plant.  In 
Jordan,  the  EU  financed  two  pilot  facilities,  one  for  wind  energy  production  and  one 
concentrated solar power facility.  

Interconnectivity and energy efficiency is one of the four Riga Summit priorities with 38% of 
regional  funds  allocated  to  it.  The  EU  signed  a  Memorandum  of  Understanding  on  the 
Strategic  Energy  Partnership  with  Ukraine  in  November  2016  which  aims  at  expanding 
cooperation in all priority areas covered by the Energy Union and at integrating the Ukrainian 
energy  market  closer  to  the  European  energy  market.  Progress  was  also  made  on 
strengthening energy interconnections between Moldova and Romania, with the signature of 
loan agreements to build the Ungheni-Chishinau gas interconnection as well as completion of 
the feasibility study on electricity interconnections. In Georgia and Azerbaijan, works for the 
expansion of the South Caucasus Gas Pipeline are ongoing which constitutes the first leg of 
the Southern Gas Corridor to the EU.  

The  new  EU4Energy  programme  launched  in  June  2016  focuses  on  energy  security, 
sustainable  energy  and  market  development  bringing  together  the  Eastern  Neighbourhood 
with Central Asia. The Eastern Europe Energy Efficiency and Environment Partnership fund 
(E5P) has been extended geographically beyond Ukraine and Moldova to Armenia, Georgia, 
and most recently to Belarus.    

The UfM Energy Ministers adopted a declaration on energy in December 201651 promoting 
the  integration  of  renewable  energies,  supporting  the  deployment  and  scaling  up  of  energy 
efficiency  solutions,  strengthening  energy  security,  promoting  interconnections,  investments 
and capacity building by means of three thematic platforms covering the priority policy areas 
of gas, integration of electricity markets and renewable energy and energy efficiency. 

This  cooperation  on  energy  is  closely  linked  with  work  on  climate  change.  Actions  on  the 
environment have continued based on policy dialogue and are supported by ongoing bilateral 
projects  (mostly  through  twinnings,  technical  assistance,  TAIEX  and  NIF)  and  regional 
programmes, Most of the ENP countries have signed the Paris Agreement on climate change, 
and  many  have  ratified  it  in  2016  and  early  2017.  Despite  some  initiatives  in  this  area, 
reforms remain fragmented and high-level political will to ensure resilience in relation to the 
impact  of  climate  change  remains  weak.  The  EU  and  Morocco  cooperated  closely  in  the 
context of preparations for the twenty-second session of the Conference of the Parties (COP 
22)  to  the  UN  Framework  Convention  on  Climate  Change,  held  in  November  2016  in 
Marrakech.  

50 http://portail.cder.dz/IMG/article_PDF/article_a5786.pdf 
51 http://data.consilium.europa.eu/doc/document/ST-15224-2016-INIT/en/pdf 

18 

 
 
 
                                                            
On  Transport  and  Connectivity,  a  high-level  agreement  amongst  EU  and  EaP  Partner 
Ministers was reached in June 2016 on the indicative maps to extend the TEN-T core network 
to  the  Eastern  partner  countries,  and  procedures  are  ongoing.  The  aim  is  to  ensure  the 
necessary  coordination,  standardisation  and  prioritisation  of  the  major  investments  on  this 
core  transport  network,  including  small-scale  projects  aimed  at  removing  bottlenecks.  Road 
safety in the ENP region is another key sector of cooperation. EU and Mediterranean Partner 
Ministers welcomed the technical work undertaken on the indicative maps to extend the TEN-
T to the Mediterranean region in a declaration issued in June 201652.  

Technical  assistance  projects  are  ongoing  in  the  Eastern  countries  in  the  field  of  maritime 
safety  and  security,  implemented  by  the  European  Maritime  Safety  Agency.  The  European 
Aviation Safety Agency provides assistance in the field of civil aviation, safety and security. 
Turkey, Iran and some Central Asian countries also participate in these projects. The EU has 
concluded  air  transport  agreements  with  Moldova  and  Georgia.  In  the  South,  regional 
technical  assistance  projects  are  being  undertaken  in  the  areas  of  maritime  safety,  aviation 
safety,  road  transport,  rail  transport,  urban  transport  and  logistics.  Comprehensive  air 
transport  agreements  concluded  between  the  EU  and  Morocco,  Israel,  Jordan  -  and  under 
discussion with Tunisia - contribute in fostering sustainable socio-economic development and 
connectivity. 

The  EU  is  working  with  ENP  partners  to  support  health-related  reforms,  strengthen  health 
systems and ensure universal health coverage, which will help to foster societal cohesion and 
contribute to economic growth.  

Security 

The  East  and  South  regions  suffer  from  both  active  and  frozen  conflicts,  with  significant 
casualties,  large  populations  of  internally  displaced  persons  and  refugees  and  far-reaching 
economic  and  political  uncertainty.  Terrorism,  violent  extremism  and  various  forms  of 
organised  crime  affect  both  the  EU  and  its  Neighbourhood.  For  these  reasons,  increasing 
security is a shared objective relevant to all ENP countries.  

On  crisis  management  and  response,  several  civilian  CSDP  missions  and  border  assistance 
missions  have  been  deployed  in  Ukraine,  Georgia,  Moldova,  Palestine  and  Libya  and  are 
financially  supported  by  EU  Member  States  or  CSDP  Trust  Funds.  In  Ukraine,  the  EU  has 
provided  about  two  thirds  of  both  the  budget  and  the  monitors  to  the  Special  Monitoring 
Mission  in  Ukraine  (that  includes  individual  contributions  provided  by  the  EU  Member 
States).  The  EU  Advisory  Mission  for  civilian  security  sector  reform  (EUAM  Ukraine)  is 
providing  strategic  advice  to  Ukraine  on  developing  effective,  sustainable  and  accountable 
security services to help strengthen the country's resilience and the rule of law. The European 
Union  Police  Mission  for  the  Palestinian  Territories  (EUPOL  COPPS)  increased  the  more 
visible EU engagement in support of Palestinian Authority (PA) security forces, contributing 
also  to  facilitate  dialogue  and  build  confidence  on  security  matters  between  the  Palestinian 

52 http://data.consilium.europa.eu/doc/document/ST-10226-2016-INIT/en/pdf 

19 

 
 
 
 
                                                            
Authority and Israeli security authorities. Since the adoption of the ENP Review, more than 
2,000  staff  from  Eastern  and  Southern  partners  benefitted  from  generic  and  specialised 
training  conducted  by  the  European  Security  and  Defence  College  in  the  area  of  CSDP, 
security  sector  reform,  peacebuilding  and  protection  of  civilians.  Ukraine,  Georgia  and 
Moldova  participate  in  EU  CSDP  missions/operations  with  financial  support  from  EU 
Member  States.  In  their  2016  joint  declaration53,  the  EU  and  NATO  committed  to  step  up 
their  cooperation  and  coordination  through  a  set  of  concrete  measures  that  seek  to  support 
partners'  capacity  building  efforts  in  the  Eastern  and  Southern  Neighbourhoods  and  to 
strengthen their resilience. The EU has enhanced work with  ENP partners on hybrid threats 
and  identifying  and  providing  support  measures  to  mitigate  these.  Algeria  signed  an 
administrative arrangement with the EU on civil protection to enhance its cooperation in the 
field of disaster risk management. Work on humanitarian assistance has also started within the 
framework of the EU-League of Arab States Strategic Dialogue. 

The EU supported ongoing  dialogues on the conflicts affecting Ukraine, Georgia, Moldova, 
Armenia  and  Azerbaijan  with  the  aim  of  reaching  peaceful  and  sustainable  solutions.  In 
Georgia the EU co-chairs the Geneva International Discussions for resolving the conflict and 
advocates for continued people-to-people contacts throughout Georgia's entire territory. As an 
active  observer  in  the  5+2  format54  for  the  settlement  process  of  the  Transnistrian  conflict, 
including  by  tabling  proposals  formulated  by  EU-financed  EU  Border  Assistance  Mission 
(EUBAM) to solve concrete issues, and with elements of confidence building measures, the 
EU  has  supported  the  efforts  undertaken  in  2016  by  the  German  OSCE  Chairmanship-in-
Office. Those efforts have resulted in the revival of the settlement talks in Berlin in June 2016 
and the adoption of a Protocol between the sides on the main issues to be solved in order to 
foster  the  settlement  of  a  conflict  that  has  been  affecting  Moldova  for  25  years.  Since  1 
January 2016, the rules of the DCFTA between the EU and Moldova55 have been extended to 
Transnistria, this allowing the economic operators located in this region to continue benefiting 
from preferential trade with the EU. The Nagorno-Karabakh conflict saw a serious escalation 
in 2016. The EU continues to call on both sides to respect the ceasefire, tone down rhetoric 
and engage in substantive talks towards peace under the auspices of the OSCE Minsk Group. 
Frequent  visits  of  the  European  Union  Special  Representative  (EUSR)  to  the  region  are 
supporting the Minsk Group Co-Chairs' efforts and ongoing peacebuilding activities and are a 
demonstration  of  the  EU  interest  and  stake  in  the  peaceful  resolution  of  this  protracted 
conflict.  

Cooperation  with  the  Southern  partners  on  tackling  terrorism  and  preventing  radicalisation 
leading to violent extremism has been strengthened. Upgraded security and counter-terrorism 
dialogues,  and  high-level  visits  have  been  conducted  in  the  region,  specifically  in  Tunisia, 
Lebanon,  Jordan,  Israel  and  Egypt  leading  to  concrete  results.  Counter-terrorism/security 
experts  have been  deployed in  EU Delegations in  Algeria, Jordan, Libya,  Morocco, Tunisia 
and  Lebanon,  with  direct  support  of  Member  States,  to  contribute  to  a  better  situational 
awareness  of  local  context  as  well  as  the  definition  of  targeted,  evidence  based  capacity 

53 http://www.consilium.europa.eu/en/press/press-releases/2016/07/08-eu-nato-joint-declaration/ 
54 Transnistria, Moldova, Ukraine, Russia and OSCE, plus the US and the EU as external observers 
55 http://eeas.europa.eu/archives/delegations/moldova/documents/eu_moldova/argumentaire_en.pdf 

20 

 
 
 
                                                            
building  projects.  They  also  act  as  a  reference  point  for  counter-terrorism  and  countering 
violent  extremism  matters for local and international counterparts,  for example in the donor 
coordination platform in Tunisia or in Global Counter-Terrorism Forum meetings.  

Security  Sector  Reform  (SSR)  is  key  to  the  long-term  stabilisation  of  the  Neighbourhood, 
both as a means of building up accountable institutions and as part of peace and confidence-
building  measures.  EU  support  to  SSR  in  third  countries  is  now  framed  by  the  recently 
adopted EU SSR policy56. In late 2016, the EU launched a thematic evaluation of EU support 
to SSR in Neighbourhood and Enlargement countries57. Moldova was the first country where 
the  EU  deployed  a  new  SSR  advisor  to  give  guidance  on  the  implementation  of  national 
security strategy, the development of national framework and capacities with regard to CSDP, 
and the facilitation of Moldova's participation in missions and operations.  

SSR support  in  Tunisia  aims to  modernise the security sector,  reinforce border  security  and 
integrated border management capacities and modernise intelligence services, while restoring 
confidence  among  the  population.  In  Lebanon,  the  Integrated  Border  Management  (IBM) 
programme  has  supported  the  Lebanese  authorities  through  the  implementation  of  a  new 
Border  Data  Management  System  and  training  centre.  The  EU  also  supports  the 
organisational  development  of  all  Lebanese  national  security  agencies  through  technical 
assistance, equipment, training and study visits to Europe.  

In the East, the EU has also been significantly contributing to the implementation of IBM, in 
particular  on  the  Moldovan-Ukrainian  border,  including  through  continued  funding  of  the 
EUBAM. The legal frameworks for border checks in both countries have been brought in line 
with  EU  standards  and  best  practices.  Regulations  on  border  surveillance  in  Moldova  and 
Ukraine are approximated to those specified in the Schengen Borders Code.  Georgia’s IBM 
is  also  in  line  with  European  standards.  In  2016,  the  EU  continued  to  provide  capacity-
building to customs and border guard services of EaP partner countries through the European 
Border  and  Coast  Guard  Agency  (EBCG),  the  World  Customs  Organisation  and  various 
programmes  and  initiatives58.  Disrupting  organised  crime,  money  laundering  and  terrorism 
financing  is  a  priority  for  the  EU's  internal  security.    In  2016,  the  EU  allocated  dedicated 
funding to support ENP countries in their use of Interpol's Information Technology systems 
and  databases.  EU  agencies  such  as  EBCG,  Europol,  CEPOL  (European  Union  Agency  for 
Law  Enforcement  Training),  EMCDDA  (European  Monitoring  Centre  for  Drugs  and  Drug 
Addiction)  and  Eurojust  are  gradually  getting  more  involved  in  providing  capacity  building 
support  to  partner  countries  and  intensifying  the  exchange  of  operational  and  strategic 
information with ENP partner countries to help combat organised crime, as well as terrorism, 
smuggling of migrants and trafficking of small arms, human beings and illicit drugs, both in 

56 JOIN(2016) 31 final of 5 July 2016 
57 http://ec.europa.eu/smart-regulation/roadmaps/docs/plan_2016_282_evaluation_ssr_en.pdf 
58 A Progress report further to the Council Conclusions on Customs Cooperation with the Eastern Neighbouring 
Countries provides an update on customs relations with the Eastern partners. COM(2016) 375 final of 14 June 
2016 

21 

 
 
 
                                                            
the EU and in the region concerned. Countries in South and Central Asia and East Africa are 
also being involved (EU-Act59 programme) to better address trans-regional challenges.  

A  trans-regional  EU  programme  on  anti-money  laundering/countering  terrorism  financing 
(AML/CTF) has been extended to ENP Southern countries to assist them in implementing the 
recommendations60  of  the  Financial  Action  Task  Force  on  AML/CTF  which  is  the  key 
international standards setter on these issues. 

The  EU  Satellite  Centre  (SatCen)  has  contributed  intensely  with  analysis61  to  information 
requirements  in  the Eastern  European and the Mediterranean area, in view of  major  threats, 
including  terrorism,  irregular  migration, piracy,  and  organised  crime.  In  particular,  SatCen 
was  strongly  involved  in  supporting  EBCG  and  EU  NAVFOR  Med  Operation  SOPHIA  for 
border  control  and  migration  issues,  and  has  provided  extensive  analysis  for  the  OSCE 
Special Monitoring Mission to Ukraine in the verification of the Minsk Agreements. 

EU  support  is  being  provided  to  all  ENP  countries  to  align  with  and  further  promote  the 
Budapest  Convention  of  the  Council  of  Europe  in  the  area  of  fighting  cybercrime62. 
Cooperation and contacts with Jordan, Lebanon, Israel and Morocco has been advancing well. 
In Ukraine, the EU has started to support the government's efforts on cybersecurity in close 
coordination with Member States' bilateral efforts in the area.  

Approximation  with  the  standards  of  other  Council  of  Europe  instruments  on  substantive 
criminal matters is promoted by the EU-financed Council of Europe South Programme or the 
Euromed  Justice  IV  Programme,  which  will  ultimately  facilitate  judicial  cooperation  in 
criminal matters between the ENP-South countries and EU Member States.  

Activities  of  the  Chemical  Biological  Radiological  and  Nuclear  Risk  Mitigation  (CBRN) 
Centres  of  Excellence  (CoE)  have  been  increased,  covering  now  56  countries  globally, 
including  several  states  in  the  MENA  region63  and  with  new  initiatives  on  counterterrorism 
and protection of critical infrastructures. The objectives for 201764 include drills and table top 
exercises  on  CBRN  consequence  management  in  the  Middle  East.  The  EU  funds  the 
establishment of a regional training centre in Jordan.  

Migration and mobility 

Irregular  migration  and  forced  displacement  are  major  concerns  and  require  a  multi-faceted 
response.  The  EU  has  put  in  place  a  comprehensive  approach  to  migration,  which 

59 Advancing Care Coordination & Telehealth Deployment (ACT) Programme, https://www.act-
programme.eu/about 
60 http://www.fatf-gafi.org/publications/fatfrecommendations/documents/fatf-recommendations.html 
61 Introduction to Geospatial Intelligence 
62http://www.europarl.europa.eu/meetdocs/2014_2019/documents/libe/dv/7_conv_budapest_/7_conv_budapest_
en.pdf 
63 The term MENA covers an extensive region, extending from Morocco to Iran, including all Middle Eastern 
Mashreq and Maghreb countries. 
64 Annex IV of the Commission Implementing Decision (C(2016)4773 final of 27 July 2016) of the Annual 
Action Programme 2016 for Article 5 of the Instrument contributing to Stability and Peace to be financed from 
the general budget of the Union 

22 

 
 
 
 
                                                            
encompasses efforts to reduce irregular migration, to promote legal migration and mobility, to 
maximise the development impact of migration, address root causes, and effectively manage 
borders while safeguarding the right of EU citizens to free movement within the EU. This is 
reflected  in  the  Communication  on  a  new  Partnership  Framework65  with  third  countries 
adopted  under  the  European  Agenda  on  Migration  and  the  Communication  on  Forced 
Displacement  and  Development66  and  the  related  European  Council  Conclusions  of  June 
201667. The aim is to intensify the cooperation on migration and lay out a new approach to 
increase the resilience and strengthening the self-reliance of the forcibly displaced and their 
host communities.  

The very worrying situation on the Central Mediterranean migration route– with an estimated 
700,000 to 1 million migrants stranded in Libya, over 180,000 irregular departures from this 
country to Italy and close to 5,000 deaths during the crossing in 2016 – led the Commission 
and  the  High  Representative  to  adopt  a  Joint  Communication  on  'Migration  on  the  Central 
Mediterranean  route  -  Managing  flows,  saving  lives'  in  January  201768.  The  ambition  is  to 
reduce the number of lives lost at sea, step up fight against smugglers and traffickers, ensure 
protection  of  the  rights  of  migrants,  in  particular  children  and  other  vulnerable  groups  of 
persons, support host communities and increase assisted voluntary returns through a range of 
actions which will benefit from funding of EUR 200 million in 2017 from the EU emergency 
Trust Fund for Africa.  Libya  is the  main target of the EU intervention with  a focus also  on 
southern  Libyan  borders  and  increased  cooperation  with  Egypt,  Tunisia  and  Algeria, 
including regional initiatives like the Seahorse Mediterranean network.  

The EU has worked closely with the Member States of the Khartoum and Rabat Processes69 
(both Neighbourhood countries and wider regional partners) to implement the agreed actions 
of  the  Valletta  Summit  on  Migration  (November  2015).  The  EU  is  enhancing  efforts  to 
increase  cooperation  on  migration  in  North  Africa  countries  through  increased  political 
dialogue  as  well  as  deepened  technical  and  financial  cooperation.  Proposals  to  launch 
dialogues on migration have been discussed also with Algeria and Egypt.  

The visa-free regime granted by the EU to Moldova in 2014, which has allowed over 850,000 
Moldovan citizens to travel visa-free to the Schengen area, is working well, with a very low 
non-admittance rate. The European Commission published legislative proposals for visa-free 
regimes  with  Georgia  and  Ukraine  in  March  and  April  2016  respectively,  and  Georgia  was 
granted visa liberalisation on 28 March 2017, while the legislation granting visa-free regime 
to Ukraine was adopted on 11 May 2017.  

65  Communication  on  establishing  a  new  Partnership  Framework  with  third  countries  under  the  European 
Agenda on Migration, COM(2016) 385, 7.6.2016. 
66 COM(2016) 234 final of 26 April 2016 

68 JOIN(2017) 4 final of 25 January 2017 
69 European Commission Fact Sheet on the European Union's cooperation with Africa on migration: 
http://europa.eu/rapid/press-release_MEMO-15-4832_en.htm 

23 

 
 
 
                                                            
 
In  June  2016, the European  Commission proposed  a revised Blue Card Directive70 with  the 
aim to establish a single EU-wide scheme offering more clarity and cutting red tape. 

In  addition,  Mobility  Partnerships  offer  a  framework  for  comprehensive  cooperation  with 
partner countries in order to address mobility issues, including where appropriate visa issues, 
as  well  as  the  need  to  facilitate return  and  readmission  of  irregular  migrants.  The  EU  has  a 
number of readmission agreements in place with ENP partner countries (Armenia, Azerbaijan, 
Georgia, Moldova, and Ukraine), signed alongside visa-facilitation agreements, which set out 
clear obligations and procedures for the authorities of the partner country and the EU Member 
States  as  to  when  and  how  to  take  back  people  who  are  in  an  irregular  situation.  The 
implementation  of  the  2008  EU-Moldova  Mobility  Partnership  and  the  cooperation  on 
readmission and return (in the framework of the readmission agreement) are giving positive 
results.  Substantial  EU  financial  support  has  continued  for  implementation  of  Morocco’s 
Mobility Partnership and of its own new migration policy which has  included regularisation 
of  25,000  irregular  migrants  in  Morocco.  In  October  2016  the  EU  and  seven  EU  Member 
States signed a Mobility Partnership with Belarus  aimed at strengthening cooperation in the 
area  of  migration,  asylum  and  border  management.  A  number  of  EU  projects  support  the 
Mobility Partnership with Azerbaijan. The Mobility Partnership with Armenia is also active, 
partly due to a current project on support to migration and border management funded by the 
ENI. The EU is negotiating a Mobility Partnership with Lebanon. The EU is negotiating new 
visa  facilitation  and  readmission  agreements  in  the  context  of  Mobility  Partnerships  with 
Morocco, Tunisia, Jordan and Belarus. 

The  Mobility  Partnership  Facility  was  launched  in  January  2016   and  aims  to  support  the 
preparation and implementation of Mobility Partnership and Common Agendas on Migration 
and Mobility by providing targeted, flexible and tailor-made assistance.  

An  additional  step  made  by  the  EU  to  enhance  its  capacity  for  coordination  with  partner 
countries  on  migration  has  been  the  creation  in  2016  of  15  posts  of  European  Migration 
Liaison  Officers  (EMLOs)  seconded  by  the  EU  Member  States'  governments  to  EU 
Delegations, including Tunisia, Jordan, and Lebanon. 

4. FINANCIAL ASSISTANCE TO SUPPORT THE NEIGHBOURHOOD 

In  2016  the  assistance  under  the  European  Neighbourhood  Instrument  (ENI)  amounted  to 
commitments of over EUR 2.3 billion. This assistance is contributing to the policy objectives 
of  the  renewed  ENP,  which  also  stresses  the  need  for  more  effective  delivery  and  greater 
flexibility in the use of EU financial assistance.  

Since the Review, the EU has brought together a number of different tools to further improve 
the  coordination  and  coherence  of  all  aid  modalities.  To  this  end,  grant  cooperation 
programmes  have  been  complemented  by  other  activities  designed  and  led  by  partner 
institutions  with  a  more  strategic  use  of  blending,  TAIEX,  and  Twinning.  In  particular, 

70 SWD(2016) 194 final of 7 June 2016 

24 

 
 
 
 
                                                            
TAIEX and Twinning have been refocused to create closer synergy between policy work and 
financial assistance programming.  

The  EU  continues  to  actively  support  neighbouring  countries  that  are  facing  exceptional 
external financing shortages through its Macro-Financial Assistance (MFA) instrument. The 
Commission has disbursed EUR 600 million in macro-financial assistance to Ukraine in April 
2017, and a last tranche of EUR 23 million to Georgia in May 2017. A new MFA operation 
for  Moldova,  consisting  of  up  to  EUR  100  million,  is  currently  pending  adoption  by  the 
European Parliament and Council. In 2016, to support the Southern Neighbourhood, the EU 
also approved the follow-up MFA operations for Tunisia (EUR 500 million) and Jordan (EUR 
200  million)  to  support  the  economies  of  these  countries  that  were  affected  by  security 
developments  and  regional  conflicts.  In  addition,  in  order  to  enhance  the  EU’s  capacity  to 
respond to the needs of the Neighbourhood, the Commission proposed to increase the annual 
MFA  lending  capacity  to  EUR  2  billion.  The  Neighbourhood  Investment  Facility  (NIF) 
mobilises EU grant funds to enable or significantly upgrade lending operations performed by 
European Finance Institutions (EFIs), and has seen a significant increase  – in both available 
amounts and in its use – since its creation.  

Sub-regional, regional and European neighbourhood-wide collaboration were enhanced under 
ENI programmes, as well as cross-border cooperation.  

Joint programming and increased coordination with EU Member States 

In line with the ENI regulation71, the ENP Review72, and the Council Conclusions on stepping 
up Joint Programming of 12 May 201673, the EU is moving towards more joint programming 
in the Neighbourhood. The second programming period (2017/2018-2020) for ENI countries 
provides an opportunity to progress in this regard. Joint Programming is an effective tool to 
enhance  EU  coordination  at  country  and  sector  level  and  identify  and  develop  common 
priorities.  It  reinforces  coordinated  policy  dialogue,  as  well  as  joint  analysis,  information 
sharing, joint implementation initiatives, joint monitoring and joint evaluation. Palestine is the 
most  advanced  example  in  this  process  with  a  joint  programming  document  resulting  from 
discussions  among  European  development  partners,  Palestinian  ministries,  civil  society 
organisations,  the  business  community,  the  United  Nations  and  many  other  key  actors.  In 
Moldova and Morocco, a joint analysis74 of the socio-economic challenges facing the country 
has been approved by EU Delegation and Member States embassies. Due to the crisis, annual 
programming in Ukraine for the period 2014-2017 was replaced by the adoption of a series of 
special measures, for which the Commission and the High Representative have ensured very 
close cooperation and coordination with EU Member States whose development agencies are 
increasingly active as implementing partners.  

71 Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a 
European Neighbourhood Instrument 
72 JOIN(2015) 50 final of 18 November 2015 
73 http://www.consilium.europa.eu/en/press/press-releases/2016/05/12-conclusions-on-stepping-up-joint-
programming/ 
74 https://eeas.europa.eu/sites/eeas/files/joint_analysis_0.pdf 

25 

 
 
 
 
                                                            
Joint programming activities were also integrated into the programming missions in Tunisia 
in October 2016, and Jordan and Lebanon in November 2016 as well as Egypt in March 2017. 
In  Armenia  the  EU  Delegation  and  Member  States  embassies  engaged  in  a  comprehensive 
joint  analysis  process  and  in  Azerbaijan,  joint  programming  with  EU  Member  States, 
Switzerland and Norway is specifically focussed on VET and a Roadmap was agreed by the 
EU Heads of Mission in December 2016.   

Increased  cooperation  with  the  European  Financial  Institutions  (EFIs)  and  International 
Financial Institutions (IFIs), including through blending  

Recognising  the  important  role  of  the  IFIs,  the  Commission  in  2015  started  an  enhanced 
cooperation  initiative  with  the  most  relevant  development  finance  institutions  active  in  the 
region.  The  objective  is  to  better  leverage  the  efficiency  and  impact  of  the  institutions' 
common  objectives  in  the  European  Neighbourhood,  such  as  boosting  growth,  advancing 
economic  transition,  promoting  sustainable  socio-economic  development  and  fostering 
political  stability.  Common  teams  develop  joint  work  on  priority  areas  of  cooperation, 
culminating  each  year  in  a  high-level  multilateral  meeting,  where  progress  is  assessed  and 
new goals are set for the year ahead.  

With  a  view  to  scale  up  the  cooperation  with  the  World  Bank  (WB)  in  the  Neighbourhood 
South, the  EU  hosted,  in  2016,  the  first  EU-WB  MENA  Day,  gathering  WB  country  team 
directors  and  EU  Heads  of  Cooperation  in  the  region.  In  order  to  strengthen  the  dialogue, 
coordination and cooperation in the Eastern Neighbourhood, regional coordination meetings 
were  held  between  the  Commission  and,  respectively,  the  WB,  the  European  Bank  for 
Reconstruction  and  Development  (EBRD)  and  the  European  Investment  Bank  (EIB).  Given 
their  strong  respective  involvement  in  Ukraine,  the  Commission  is  regularly  organising 
dedicated  country  days  with  EIB,  EBRD  and  World  Bank.  Moreover,  the  Commission  has 
proposed  an  increase  of  its  External  Lending  Mandate  to  support  the  EIB’s  Economic 
Resilience Initiative. 

The EU continued its blending operations through the Neighbourhood Investment Facility. It 
further  deepened  cooperation  with  EBRD,  EIB,  the  WB,  the  KfW  (Kreditanstalt  für 
Wiederaufbau) and the  Agence Française  de Développement in  2016 through  setting up the 
"EU Initiative for financial inclusion"75, aimed at  mobilising SME finance  for the South.  In 
the context of the DCFTAs established between the EU and Georgia, Moldova and Ukraine 
the EU jointly with EBRD, EIB and KfW, put in place the DCFTA Facility for SMEs, which 
started  to  be  fully  operational  in  2016.  The  main  objectives  of  the  Facility  are  to  support 
SMEs  in  those  countries  and  to  increase  their  competitiveness,  ease  access  to  finance,  help 
them to seize new trade opportunities and comply with EU food safety, technical and quality 
standards,  as  well  as  with  environmental  protection  measures  necessary  under  the  DCFTA 
implementation.  

75 https://ec.europa.eu/neighbourhood-enlargement/sites/near/files/neighbourhood/pdf/key-
documents/nif/20160601-introductory-note-on-the-eu-initiative-for-financial-inclusion.pdf 

26 

 
 
 
 
                                                            
In  2016,  EUR  6.7  billion  of  new  EU  commitments  were  coordinated  through  the  Southern 
Mediterranean  Investment  Coordination  Initiative  (AMICI),  co-funded  by  the  EU  and 
Member States. This compares to EUR 5.2 billion in 2015 (+25%), enabling new projects for 
total investment of EUR 14 billion (+27%). The bulk of EU support is provided by loans and 
equity finance (76%).  

In addition to increased cooperation with EFIs and IFIs, the EU has also undertaken increased 
coordination  with  non-EU  donors.  Closer  engagement  with  Arab,  Islamic  and  regional 
partners  has  the  aim  of  avoiding  overlapping  activities  and  building  on  potential 
complementarities.  In 2016, this initiative was scaled up with the organisation of a high-level 
coordination meeting between the EU and the main Arab and Islamic financial institutions in 
the margins of the WB/International Monetary Fund spring meetings. The EU chairs regular 
donor meetings to coordinate the response to the Syria crisis. Regarding Ukraine, the Support 
Group for Ukraine is regularly organising upstream coordination meetings on strategic issues 
in Brussels, thus complementing the intensive in-country coordination. 

Trust Funds 

Trust  Funds  are  a  major  tool  to  deliver  rapid  support  to  the  region  in  conjunction  with 
Member States and other donors. Projects under the EU Regional Trust Fund in response to 
the  Syrian  Crisis76  (established  in  December  2014)  address  longer  term  resilience  and  early 
recovery  needs  (economic,  educational,  social  and  psycho-social,  sanitary,  health  and  other 
basic services) for Syrian refugees and their host communities  and their administrations and 
internally displaced persons in Jordan, Lebanon, Turkey and Iraq. This fund enables a more 
coherent  and  integrated  EU  response  to  the  crisis  and  is  today  one  of  the  key  instruments 
through which the new Jordan and Lebanon EU Compacts are being implemented.  

The Fund has reached a total of EUR 932 million two years after its inception and will reach 
EUR 1.3 billion by summer 2017. Out of this, EUR 815.2 million stem from the EU budget, 
EUR 92.6 million from 22 EU Member States and EUR 24.6 million from Turkey. Programs 
totalling EUR 767 million have been adopted by the Operational Board of the fund, which is 
composed  of  15  EU  Member  States  and  Turkey  (due  to  its  co-financing  role).  EUR  437 
million have been signed in contracts including co-financing, supporting primary and higher 
education, psycho-social care, resilience and livelihood initiatives, health, water and sanitary 
needs as well as the construction of schools.   

Launched under the Valletta Action Plan, in 2016 the European Union Emergency Trust Fund 
for  Africa77  supported  six  programmes  in  North  Africa  focusing  mainly  on  improving 
migration  governance  and  management,  responding  to  protection  needs  and  addressing  the 
root causes and drivers of irregular migration. In January 2017, EUR 200 million of additional 
funding  was  announced  in  the  context  of  the  Joint  Communication  on  Migration  on  the 
Central Mediterranean route.    

76 https://ec.europa.eu/neighbourhood-enlargement/neighbourhood/countries/syria/madad_en 
77 Commission Decision C(2015) 7293 final of 20 October 2015 

27 

 
 
 
 
                                                            
Flexibility cushion  

In  its  Communication  on  the  mid-term  review  of  the  Multi-Annual  Financial  Framework 
adopted in September 201678, the Commission proposed the creation of a 'flexibility cushion' 
for external instruments to allow the EU to better react to new crises and unforeseen needs. 
Under  the  flexibility  cushion,  each  geographical  external  instrument,  including  ENI,  would 
keep  unallocated  a  reserve  of  10  %  at  the  beginning  of  the  year  to  respond  to  unforeseen 
needs and new crises, with the possibility to carry-over to the next year the amounts of that 
reserve not used during the year. The flexibility cushion is part of the proposed revision of the 
Financial Regulation. 

European External Investment Plan 

In  September  2016,  the  European  Commission  proposed  an  ambitious  European  External 
Investment  Plan79  (the  Plan)  to  support  investment  in  partner  countries  in  Africa  and  the 
European  Neighbourhood.  Its  goal  is  to  strengthen  partnerships,  promote  a  new  model  of 
participation of the private sector in funding large investments of public interest in the region 
and to contribute to meeting the Sustainable Development Goals, thus addressing root causes 
of  irregular  migration.  The  Plan  is  proposed  to  consist  of  three  complementary  pillars:  (i) 
mobilising investment by combining existing EU investment (blending) facilities with a new 
guarantee within the new European Fund for Sustainable Development (EFSD); (ii) providing 
technical  assistance  for  improving  the  regulatory  environment  for  public  authorities  and 
companies in partner countries; and (iii) improving the business and investment environment 
in partner countries by fostering good governance, fighting corruption, and removing barriers 
to  investment  and  market  distortions.  The  European  Fund  for  Sustainable  Development 
Guarantee Regulation, which is part of the first pillar, is undergoing an approval process. 

This innovative approach aims to provide sizeable additional funds to partner countries in the 
form of investment by international financial institutions.  It also aims to include a range of 
dedicated  thematic,  national  and  regional  EU  development  cooperation  programmes, 
combined with structured political dialogue targeted at improving the investment climate and 
the overall policy environment in the countries concerned. 

With EU funds totalling EUR 3.35 billion until 2020, the EFSD is expected to mobilise up to 
EUR  44  billion  additional  investment.  If  Member  States  provide  matching  individual 
contributions, it may mobilise more than EUR 88 billion of additional investment.  

78 COM(2016) 603 final of 14 September 2016 
79 COM(2016) 581 final of 14 September 2016 

28 

 
 
 
 
 
 
 
 
                                                            
5. CONCLUSION 

The implementation of the ENP Review has reflected a new determination to make the policy 
more relevant to the interests of both the partners and the EU Member States, and has helped 
develop relations that better address pressing common challenges before us, in coherence with 
and support of the implementation of the Global Strategy of the High Representative. 

While the challenges in the region remain immense, the EU is acting with more flexibility and 
sensitivity to its partners, deploying limited resources with more impact. The key principles of 
the  policy  -  differentiated  approach  and  greater  ownership  –  will  continue  to  guide  its 
implementation  in  the  next  years  through  diplomatic  action,  trade  and  investment  relations, 
financial assistance and long-term regional frameworks.  

In a process of continuous engagement with EU citizens and citizens in partner countries, the 
EU will also continue to enhance the visibility of the ENP, notably through highlighting the 
short, medium and long-term benefits of its cooperation with its neighbours.  

This  report  also  reconfirms  the  broad  engagement  of  all  relevant  stakeholders  in  the 
implementation of the Review, including based on the suggestions made during the extensive 
consultations held in 2015.  It clearly shows that, since the adoption of the Review, substantial 
steps to deliver on those commitments have been taken. 

29