JOINT STAFF WORKING DOCUMENT Renewed Partnership with the Southern Neighbourhood Economic and Investment Plan for the Southern Neighbours Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Renewed partnership with the Southern Neighbourhood A new Agenda for the Mediterranean
Date: 2021-02-09
Institutions: Directorate-General for Neighbourhood and Enlargement Negotiations, European Commission
Subjects: European neighbourhood policy, Mediterranean region (EU), climate change policy, cooperation policy, democracy, economic recovery, human rights, peacekeeping, rule of law, sustainable development

EN 

  EN 

   EUROPEAN COMMISSION HIGH REPRESENTATIVE OF THE UNION FOR FOREIGN AFFAIRS AND SECURITY POLICY Brussels, 9.2.2021  SWD(2021) 23 final  JOINT STAFF WORKING DOCUMENT  Renewed Partnership with the Southern Neighbourhood Economic and Investment Plan for the Southern Neighbours Accompanying the document JOINT COMMUNICATION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Renewed partnership with the Southern Neighbourhood              A new Agenda for the Mediterranean {JOIN(2021) 2 final}  
 
 
In order to support the implementation of the themes highlighted in  the new Agenda for the 
Mediterranean, the Commission proposes this “Economic and Investment Plan (EIP) for the 
Southern  neighbours”  which  includes  a  series  of  preliminary  flagship  investments  and 
projects  that  could  be  financed  under  the  Neighbourhood,  Development  and  International 
Cooperation Instrument (NDICI)1, and will only require part of the allocation for the Southern 
Neighbourhood.  The  Plan’s  objective  is  to  support  partners  in  their  recovery  efforts, 
contribute to increase competitiveness and support sustainable and inclusive growth. Flagship 
projects  will  help  address  challenges  and  opportunities  at  the  national,  local,  multi-country 
and regional levels. The flagships should be developed in the context of Joint Programming or 
Team Europe Initiatives.  

The  Economic  and  Investment  Plan  is  indicative  and  non-exhaustive.  It  may  evolve 
depending  on  progress  on  policy  and  political  issues  and  in  relations  with  partner  countries 
and is subject to the entry into force of the relevant legal bases under the next Multi-annual 
Financial  Framework  and  without  prejudging  the  outcome  of  the  programming  process.  To 
this  end,  the  EU  will  be  ready  to  explore  further  regional,  sub-regional  or  trilateral 
cooperation and joint initiatives between partner countries across the board, including in light 
of the recent normalisation of relations between Israel and a number of Arab countries.  

Outreach to partner countries and all relevant stakeholders, including civil society, the private 
sector and financial institutions, will continue after the adoption of this Communication and 
will  guide  programming  efforts  at  the  bilateral  and  regional  levels.  Programming  of  EU 
cooperation  should  take  place  within  the  framework  of  the  EU’s  overall  relations  with  the 
partner countries, and in line with subsequent Partnership Priorities.  

Due  diligence,  environment  and  cost  benefit  assessments  will  be  carried  out  to  ensure  that 
proposed  projects  contribute  to  the  objectives  set  in  the  Joint  Communication.  Financing 
could  also  be  contingent  on  governance  efforts,  in  order  to  ensure  initiatives’  sustainability 
and access for all.  

The following headlines are covered: 

  Human Development, good governance and the rule of law 
  Strengthen resilience, build prosperity and seizing the digital transition 
  Migration and Mobility 
  Green transition: climate resilience, energy, environment 

In  the  area  of  “Human  Development,  good  governance  and  the  rule  of  law”,  the 
Commission foresees the following flagships: 

FLAGSHIP 1 –Support to social sectors, education, skills and health  
The  delivery  of  inclusive,  efficient,  and  effective  social  services,  notably  in  the  fields  of 
education, skills and health, contributes to economic and social development.  In this regard, 
the  EU  will  also  support  its  partners  through  blending  (investment  grants)  to  reduce  the 
burden on countries and guarantees to mitigate the risk for private investors. 

  Multi-country – The Commission is looking into possibilities to set up an EU vaccine 

sharing mechanism with special attention given to the Neighbourhood. 

1  

This is subject to the final adoption of the draft Regulation establishing the Neighbourhood, 
Development and International Cooperation Instrument. 

1 

 
 
                                                           
  Multi-country  –  The  EU  will  continue  to  invest  in  the  renovation  of  primary, 
middle and high schools as well as in the upgrading of health facilities and systems 
and continue to provide technical and financial support to these sectors.  

  Multi-country  –  The  EU  will  give  special  attention  to  vocational  education  and 
training,  as  tool  to  support  youth  and  to  the  needs  for  up-  and  reskilling  of  the 
working population in the context of the green and digital transitions in anticipation 
of emerging skills needs.  

  Morocco  –  The  EU  will  support  the  higher  education  reform  with  the  aim  to 

modernise higher education and improve its relevance for the job market. 

FLAGSHIP  2  –  Human  rights,  the  rule  of  law,  and  modern,  effective  administrations, 
governance and accountability 
Well-functioning, fair, transparent and accountable civil and judicial administration contribute 
to increasing sustainability, reducing inequality and enhancing well-being for all people. 

  Multi-country  –  The  EU  will  continue  to  invest  in  effective,  independent  and 
accountable justice and prosecutorial systems in line with International and European 
Standards.  

  Multi-country  –  The  EU  will  support  civil  society  organisations  and  their  inclusive 
involvement in the reform process. This will include actions to develop the capacity of 
civil society organisations, build up the leadership skills of civil society and strengthen 
work with civil society to, inter alia, tackle disinformation and support the green and 
digital transition. 

  Regional  –  The  EU  will  support  the  development  and  implementation  of  public 
to  boost  predictability, 
administration  reform  (PAR) 
initiatives 
transparency, and accountability of the legal framework and institutions. The EU will 
also  support  regional  capacity  building  on  economic  governance  and  continue  to 
strengthen the partners’ statistical capacities to produce reliable, comparable statistics 
and thus support economic development strategies. 

that  aim 

  Lebanon  –  The  EU  will  support,  in  the  context  of  the  “Reform,  recovery  and 
reconstruction  framework”  an  innovative  platform  for  civil  society  to  shape  and 
monitor  the  implementation  of  key  reforms,  to  ensure  better  service  delivery,  to 
enhance political accountability and transparency.  

In  the  area  of  “Strengthening  resilience,  building  prosperity  and  seizing  the  digital 
transition”, the Commission foresees the following investment flagships: 

FLAGSHIP 3 – Resilient economies  
The COVID-19 pandemic has highlighted the need to help partners strengthen their ability to 
withstand and recovery quickly from economic shocks. 

  Morocco – The EU stands ready to contribute to Morocco’s economic recovery plan 
by co-financing investments  funded under the  Strategic Investment  Fund (SIF) set 
up by HM King Mohamed VI. The European Fund for Sustainable Development Plus 
(EFSD  +)  will  be  mobilised,  together  with  resources  from  other  European  Financial 
Institutions (EFIs) to contribute to operations financed under the SIF. 

2 

 
 
 
 
 
FLAGSHIP 4 – Sustainable economies 
The green transition offers opportunities for the green, circular, and blue economies to support 
sustainable production and consumption.  

  Algeria  –  The  EU  will  support  Algeria  in  its  efforts  to  develop  further  a  green  and 
circular  economy,  which  optimises  preserves  and  protects  environment  and  the 
sustainable  use  of  natural  resources,  including  in  the  agricultural  and  fisheries 
sectors, and the sustainable management of the dwindling fish stocks. In line with the 
the 
MedFish4Ever  Declaration  and 
Mediterranean,  the  aim  will  be  to  (i)  foster  the  territorial  development  of  Algeria’s 
coastal regions whilst (ii) promoting the sustainable management of the Mediterranean 
maritime space; (iii) addressing environmental and sustainability considerations in the 
exploitation  of  marine  resources  and  (iv)  providing  alternative  job  opportunities  for 
the economic benefit of coastal communities.  

the  General  Fisheries  Commission  for 

  Morocco – In line with the “EU-Morocco Green Partnership”, the EU will accompany 
and  fast-track  the  transition  to  a  circular,  low  emissions,  inclusive  and  resilient 
economy, including through measures aiming at  strengthening the circular economy, 
investments  (incl.  for 
transition,  supporting  sustainable 
boosting 
adaptation)  as  well  as  enhancing  the  management  and  treatment  of  waste  and 
water/wastewater. 

the  energy 

FLAGSHIP 5 – Connected economies  
Trade, transport and private sector development are key vectors for economic diversification, 
contributing to economic integration and connectivity. 

  Regional – The EU will provide technical assistance and support access-to-finance for 
key sustainable value chains and clusters in sectors with the potential for economic 
integration  and  export,  to  help  them  integrate  into  regional  and  global  value  chains. 
EU  support  will  aim  to  develop  the  institutional  capacity  and  technical  training  of 
government  agencies  and  private  sector  organisations  to  factor-in  job  creation  when 
investing in specific sectors and projects. In order to strengthen interconnectivity, the 
EU  will  also  support 
the  upgrading  of  trade  and  connectivity  relevant 
infrastructure (including border crossings, such as the King Hussein bridge in Jordan 
in  full  coordination  with  all  relevant  stakeholders)  and  logistics  hubs  in  strategic 
trade/sustainable and safe transport routes that would allow for integration with other 
regions, including the Middle East and Sub-Saharan Africa. 

  Regional –  Micro Small and Medium Enterprise (MSME) finance initiatives will be 
part  of  an  integrated  support  plan  aimed  to  strengthen  banking  and  non-banking 
financial  institutions  in  order  to  expand  financial  inclusion,  including  in  the  social 
economy  sector.  The  EU  could  also  issue  budgetary  guarantees  to  support  IFIs’ 
equity/subordinated  loan  investments  into  financial  institutions  committed  to  extend 
loans  to  MSMEs.  In  addition,  new  and  innovative  forms  of  finance,  such  as  impact 
investment and local currency solutions, will be explored to better target socially and 

3 

 
 
 
environmentally friendly actions. 

  Palestine2  –  In  support  of  potential  future  progress  on  the  MEPP,  the  EU  will  look 
into funding to promote private sector-led growth and job creation, providing debt 
and equity finance and loan guarantees to local financial institutions to support SMEs, 
under-banked segments, for lending to women, young people and start-ups, including 
microfinance, and providing incentive grants to companies working in industrial parks 
in Jericho and Gaza. 

  Tunisia – The EU will aim to conclude a Comprehensive Aviation Agreement with 
Tunisia.  It  will  facilitate  air  connections  between  Europe  and  Tunisia  and  could 
contribute to a re-start of Tunisia’s tourism sector. 

  Egypt  –  The  EU  will  support  the  development  of  sustainable  public  transport 
infrastructure.  It  will  support  comprehensive  reforms  with  a  view  to  providing 
citizens with safe and means of transportation, reducing congestion and promoting the 
shift  from  private  cars  to  more  sustainable  modes  of  transportation,  and  improving 
transportation efficiency and greening the sector. 

FLAGSHIP 6 – Inclusive economies 
Promoting  social  protection  systems,  social  infrastructure,  social  dialogue,  decent  working 
conditions  (including  safeguarding  the  occupational  health  and  safety),  fundamental  labour 
rights and social economy are key pillars of an economy that works for people.  

  Morocco  and  Tunisia  –  the  EU  will  enhance  its  support  to  the  deployment  of  a 
modern and just social protection system with a view to improving the resilience of 
the most vulnerable people. 

  Jordan and Lebanon – The EU will roll out its grant support programme to design 
sustainable  and  comprehensive  social  assistance  systems,  and  meet  the  needs  of 
vulnerable  households.  This  will  include  a  specific  ‘shock  response’  component  to 
address the impact of the ongoing financial crisis. 

  Regional  –  The  EU  will  enhance  its  support  to  an  inclusive  and  structured  dialogue 
with a view to establishing synergies in the medium and long term level between the 
social  partners  (employers  and  workers  organisations)  and  other  actors  of  the  civil 
society in the Southern Mediterranean on the main themes of sustainable development, 
as well as to tackling the employability issues and the transition from the informal to 
formal labour using social dialogue tools.  

FLAGSHIP 7 – Digital transformation, research and innovation 
The  digital  transition  could  unlock  important  benefits  for  the  Southern  Neighbourhood, 
helping attract investment, create jobs, increase productivity for both the public and private 
sectors, and contribute to increased inclusion.  

  Morocco  –  In  the  context  of  the  EU-Morocco  Digital  partnership,  the  EU  will 

2  

The designation Palestine shall not be construed as recognition of a State of Palestine and is without 
prejudice to the individual positions of the Member States on this issue. 

4 

 
 
 
 
 
                                                           
support  Morocco  in  becoming  an  associate  member  to  the  Horizon  Europe 
research  programme.  In  parallel  to  EU’s  financing  of  digital  infrastructure  and 
reinforcing  its  reliability,  capacity  and  security,  the  EU  will  support  the 
digital/innovation ecosystem.  

  Tunisia  –  Based  on  the  2025  Strategy  for  Digital  Transformation,  the  EU  will 
strengthen  the  digitization  of  the  economy  in  order  to  improve  productivity, 
stimulate new job creation, improve egovernance, and will invest in education and 
multi-sectoral digital infrastructure amongst other areas. 

  Israel  –  The  EU  will  step  up  its  existing  cooperation  with  Israel  in  the  areas  of 
digital,  research  and  innovation  and  will  identify  opportunities  to  reinforce 
cooperation in related areas of mutual interest. 

  Regional  –  The  EU  will  help  strengthen  the  set  of  interconnected  actors  who 
contribute to driving innovation at the local, national, and regional levels (digital 
and  innovation  ecosystems),  including  through  technical  advice  on  the  regulation 
and framework conditions for innovation, competencies and skills development for 
actors  in  the  ecosystem  and  facilitating  links  across  the  Mediterranean  and  within 
the  Southern  Neighbourhood.  It  will  also  support  digitalisation  efforts  through 
promoting the deployment of relevant internet and mobile infrastructure and skills, 
and the improvement of service delivery in priority public sectors. 

In the area of “Migration and mobility”, the Commission foresees the following flagship: 

FLAGSHIP 8 – Migration  
Offering  better  socio-economic  opportunities  to  migrants  and  host  communities  is  an 
important  objective of EU support, reducing  incentives for irregular migration. Actions will 
support all pillars of the new Pact on Migration and Asylum.  
Funding will complement bilateral and regional assistance for migration. 

tailor-made 

  Multi-country:  Actions  under  a  multi-country  initiative  will  be  designed  to 
complement specific efforts under bilateral and regional assistance to support partner 
countries.  The  aim  is  to  provide  a  flexible  source  of  funding  that  can  respond  to 
changing needs and  routes and contribute to  an incentives-based approach. The Plan 
the  Southern 
will  support  specific  actions 
Neighbourhood. This programme will support all pillars of the new Pact on Migration 
and  Asylum,  seeking  tailor-made  and  mutually  beneficial  partnerships  and  greater 
cooperation  with  regional  and  international  actors.  Attention  will  be  given  to 
protecting  those  in  need  and  supporting  host  countries;  strengthening  partners’ 
capacities  in  migration  management,  including  putting  in  place  or  strengthening 
asylum systems, border management, search and rescue, registration and identification 
of  migrants,  asylum  systems,  as  well  as  encouraging  voluntary  returns  and 
reintegration;  and  promoting  legal  pathways,  including  Talent  Partnerships  in 
cooperation with Member States.  

to  each  partner 

in 

5 

 
 
 
 
In  the  area  of  “Green  transition:  climate  resilience,  energy,  and  environment,”  the 
Commission proposes the following flagships: 

FLAGSHIP 9 – Green Growth and climate action  
Actions will align with partners’ National Determined Contributions (NDCs) under the Paris 
Agreement and will support the external dimension of the EU Green Deal.  

  Regional  –  In  order  to  meet  the  scale  of  investment  required  and  help  public 
authorities  whether  central  government  or  local  authorities,  to  raise  the  necessary 
capital  from  both  national  and  international  private  investors,  the  EU  will  explore 
ways  to  deploy  innovative  financing  instruments,  including  Green  Bonds,  in  line 
with the EU taxonomy, and where appropriate.  The EU could support the regulatory 
framework  at  country  level  and  support  capital  market  development  to  create 
conducive conditions for green bond issuances.  

FLAGSHIP 10 – Energy transition and energy security 
The  transition  from  fossil  fuels  towards  clean  energy  and  enhanced  energy  security  will  be 
key for the region to meets its commitments under the Paris Agreement. 

  Egypt  –  The  EU  will  support  Egypt’s  transition  to  a  green  economy.  This  includes 
support  to  universal  access  to  affordable,  reliable,  and  modern  energy  services, 
increasing  substantially  the  share  of  renewable  energy  in  the  global  energy  mix, 
radical  improvements  in  energy  efficiency,  enhancing  international  cooperation  to 
facilitate  access  to  clean  energy  research  and  technologies,  including  renewable 
energy and energy efficiency, and promote investment in the sector. 

  Morocco – The EU will expand its support to Morocco’s effort to meet its ambitious 
renewable  energy  and  energy  efficiency  targets,  while  also  considering  water  use 
and  resource  efficiency.  The  EU  will  continue  to  support  renewable  energy 
infrastructure  –  notably  through  the  EFSD+,  and  to  strengthen  its  technical  and 
financial cooperation with a view to accelerate the production of green hydrogen. 
  Jordan  –  The  EU  will  support  the  implementation  of  the  2020-2030  energy  sector 
strategy, which has a focus on maximising local sources and enhancing further use of 
natural gas and renewable energy sources. The energy sector main priorities lie within 
the energy-water-food nexus, such as pumped storage projects, maximisation of the 
use  of  green  energy  and  energy  efficiency  for  water  pumping  and  wastewater 
treatment as well as desalination (i.e. via the National Conveyor project), and further 
use of renewable energy within the agriculture sector.  

  Algeria  – The hydrocarbon sector is  the backbone of the Algerian  economy and the 
main contributor to GDP and the state budget with energy transition as a key priority. 
The EU will support Algeria’s efforts to exploit its considerable but largely untapped 
potential of renewable energy (solar and wind) and to optimize energy efficiency. The 
diversification  of  the  energy  mix  will  allow  Algeria  to  strengthen  its  position  in 
evolving  international  energy  markets,  with  demand  shifting  from  fossil  to  green 
energy,  while  enabling  the  country  to  manage  its  domestic  energy  consumption  in  a 
sustainable manner.  

6 

 
 
 
  
7 

 
 
 
 
FLAGSHIP  11  –  Resource  efficiency,  including  water  and  waste  management,  and 
biodiversity  
Support  to  resource  management,  in  the  water  sector,  is  essential  for  the  pursuit  of 
sustainable and inclusive socio-economic development in rural and urban areas, to support 
local communities to mitigate climate change and address resource scarcity challenges. 

  Lebanon  –  the  EU  will  build  an  ‘EU4Water’  initiative,  bringing  together  support 
for  reliable  water  services  in  terms  of  sector  reforms,  infrastructure,  the  capacity 
and  accountability  to  citizens  of  the  regional  water  establishments,  water 
management and conservation, and metering. 

  Tunisia - the EU will support the rollout of the 2050 Water Strategy to secure the 
availability  and  access  to  water  resources  in  a  sustainable,  inclusive  and  equitable 
manner,  meeting  the  requirements  of  conservation  and  protection  of  natural 
resources,  equity  between  regions,  sustainability  of  development  and  viability  of 
economic activities. 

  Egypt  –  The  EU  will  support  the  development  of  the  water  sector,  Egypt’s  top 
priority  for  the  realisation  of  their  Sustainable  Development  Strategy  2030  and 
facilitate the provision of high-level policy advice to the reforms in the sector, thus 
supporting  key  national  public  and  private  investments.  Support  will  focus  on  the 
implementation of the National Water Resources Plan and in particular, on areas 
such as improving water efficiency and waste management and treatment including 
in  particular  national  irrigation  modernisation,  canal  rehabilitation,  and  improving 
water management. 

  Jordan – The EU will roll out a coordinated initiative on solid waste management 
in support of Jordan’s integrated waste management strategies, including investment 
in infrastructure at Al Ghabawi, Ramtha and Sahel Horan.  

  Israel/Palestine  –  The  EU  will  invest  funds,  in  the  construction  of  the  Gas  for 
Gaza pipeline. It will also coordinate and invest in the Gaza Central Desalination 
Plant and Associated Works programme. Together, these investments can lead to 
a step change in access to clean and affordable water and electricity, contributing to 
development, humanitarian needs and stability. 

FLAGSHIP 12 – Sustainable food systems, agriculture, and rural development  
The  transition  towards  sustainable  food  systems  contribute  to  rural  development,  thus, 
combining increased productivity, better use of resources and protection of the environment 
would  help  meet  challenges  created  by  demographics,  climate  change,  and  resource 
availability. 

  Morocco – The EU will contribute to Morocco’s Generation Green initiative, a social 
and  economic  policy  dedicated  to  rural  areas.  It  will  support  efforts  to  boost  the 
agricultural sector’s productivity and competitiveness. 

  Multi-country  – The EU will assist in the  development of sustainable agriculture 
and  aquaculture  that  is  resilient  to  climate  change,  fostering  modern  management  of 
irrigation water and encouraging the use of renewable energies and soil conservation 
techniques.  As  the  food  safety  is  a  key  element  of  the  sustainability  of  the  food 

8 

 
 
 
system,  stronger  collaboration  in  preventing  animal  diseases  and  plant  pests  is 
required.  

9