The European Neighbourhood and Partnership Instrument. DG RELEX UNIT ER-D-1 European Neighbourhood Policy Coordination General Coordination

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The European Neighbourhood and Partnership Instrument DG RELEX UNIT ER-D-1 European Neighbourhood Policy Coordination General Coordination

Objectives of the presentation The EU s political geography Development of of the ENPI Regulation Main features of of the new funding instruments Practical aspects of of the new instrument Level of of funding

1. The EU s political geography: Policies towards non-eu-members EFTA / EEA : multi- and bilateral agreements Candidate Countries (Bulgaria Bulgaria, Romania, Turkey, Croatia, Macedonia) : the Accession Process Potential candidates (Albania, Bosnia & Herzegovina, Serbia, Montenegro) : the Stabilisation and Association Process Neighbours : the European Neighbourhood Policy (ENP)

2. Origins of the ENPI Regulation 2.1. EC External assistance: Responding to the call for simplification From 2007 Before 2007 More than 30 30 instruments for for delivering external relations assistance Policy driven instruments: Instrument for for Pre-Accession Assistance (IPA) European Neighbourhood and and Partnership Instrument (ENPI) Development Cooperation Instrument (DCI) Economic Cooperation Instrument (ECI) Instrument for for Nuclear Safety Cooperation (INSC) Human Rights Instrument Crisis response instruments: Humanitarian Aid Aid Instrument Macrofinancial Assistance Instrument for for Stability

2. Development of the ENPI Regulation 2.2. ENPI idea Wider Wider Europe Communication-March 2003: 2003: Need Need for for a specific policy policy towards the the neighbourhood, avoiding new new diving diving lines lines Paving Paving the the Way Way for for a New New Neighbourhood Instrument-July 2003: 2003: Propose a single single regulation for for CBC CBC at at EU s EU sexternal borders European Neighbourhood Policy Policy Strategy Paper- Paper-May 2004: 2004: ENPI ENPI to to complement, NOT NOT replace MEDA MEDA and and TACIS TACIS Financial Perspectives 2007-2013 -- July July 2004: 2004: ENPI ENPI to to replace existing instruments and and enlarged scope scope to to cover cover ALL ALL financial assistance for for neighbours

3. The ENPI regulation: Main features 3.1 Key elements A policy driven instrument: Support for the priorities of the ENP Action Plans & the Strategic Partnership with Russia The central role of programming: The appropriate measure mix supporting the policy is defined through programming ENPI Key features An enabling Regulation: The ENPI Regulation includes a complete toolbox to render aid effective Cross-border Cooperation (CBC): For the first time, assistance to Member States & neighbours to be delivered by a single Regulation, a single set of rules

3. The ENPI regulation: Main features 3.2. Policy Framework Agreements: Partnership and Cooperation, Association, other Council Conclusions Commission Communications Jointly agreed Action Plans Where no no such agreements exist, EU objectives constitute the policy framework

3. The ENPI regulation: Main features 3.3. Types of programmes Country and and multi-country programmes Minimum 95.0% (over 10.6 bn) bn) Cross-border cooperation programmes Up Up to to 5.0% (almost 550 million)

3. The ENPI regulation: Main features 3.4. The programming process Strategy Papers Multi-annual Indicative Programmes Action Programmes annual Analysis of the situation Response strategy Priority sectors 7 years revised at mid-term normally attached to Strategy Papers set global and per priority allocations cover 3 4 years describe projects identified for financing define the budget per project lead to EC decision & commitments of funds

3. The ENPI Regulation: Main features 3.5. Allocation mechanism Based on on the the needs and and characteristics of of the the partner country The The level of of ambition of of the the partnership between the the partner country and and the the EU; EU; The The progress towards meeting agreed objectives (esp. governance and and reform); The The partner s capacity to to manage and and absorb assistance. Governance Facility: Partners which have made the the most significant progress in in the the implementation of of the the governance priorities of of the the ENP ENP Action Plan will will receive additional financial support.

3. The ENPI regulation: Main features 3.6. Focus on innovation: CBC s rationale and objectives Why Avoid new dividing lines in in Europe Key element in in promoting an an area of of security, stability and prosperity of of EU and its its neighbours 4 main objectives Promote economic and social development in in border areas Address common challenges Ensure efficient and secure borders Promote people-topeople cooperation

3. The ENPI regulation: Main features 3.7. Focus on innovation: CBC s Programming aspects Programming horizon: 7 years Full observance of of the partnership principle (MS, partners) Financing: combining funding from Cohesion (ERDF) and External Relations in in one budget chapter; Covered by by a single Regulation: ENPI Specific Strategy Papers to to define the list of of Cross-border programmes and allocations

3. The ENPI Regulation: Main features 3.8. Focus on innovation: CBC s 9 land border and 3 sea crossing programmes

3. The ENPI Regulation: Main features 3.9. Focus on innovation: CBC s 3 sea basin programmes

4. Practical aspects of the new instrument 4.1. Areas of cooperation Dialogue and Reform Legislative approximation Institution building Equitable social and and economic development Protection of of human rights and and freedoms Rule of of law law and and good governance Contribution to to UN UN Milennium Development Goals Sectoral cooperation energy; telecommunications; transport; Area of of Justice, Freedom and and Security; environment; research and and innovation; higher education

4. Practical aspects of the new instrument 4.2. Beneficiaries Governmental bodies Non-state actors: Partner countries, their NGOs regions and and their Trade associations institutions Women and and Decentralized bodies in in youth organizations the the partner countries Cross-border Local authorities associations and and administrations Cultural, research Joint bodies of of and and scientific partner countries and and organizations the the Community Organizations Public or or parastatal representing economic bodies and and social interests

4. Practical aspects of the new instrument 4.3. Main types of measures Technical assistance Targeted administrative measures: twinning Sectoral or or general budget support Investments and and investment related activities Debt relief programmes Microprojects Food security measures Contributions to to the the EIB EIB or or other financial intermediaries for for loan financing, equity investments, guarantee or or investment funds

4. Practical aspects of the new instrument 4.4. Participation in contracts and tenders Partner countries Candidates or potential candidates (IPA beneficiaries) Natural and legal persons from EU Member States EEA countries Certain justified exceptions for for natural and and legal legal persons from: from: Countries having traditional economic, trade trade or or geographical links links with with ENPI ENPI countries Countries with with whose whose external assistance reciprocal access access has has been been established

5. EC financial support 5.1. European Community funding: global amount Current funding (2000-2006) Future funding (2007-2013) EC EC budget: Total: 8.3b MEDA 5.2bn TACIS 3.1bn Commission proposal: nearly 15bn End result: nearly 12 12 bn, bn, 45% increase in in nominal terms and and 32% in in real real terms

5. EC financial support 5.2. European Community funding: other instruments benefiting ENP countries Earmarked funds: Human Rights Instrument: 321.3 million Development Cooperation Instrument: thematic programmes component amounting to to 464.3 million General Instrument for Nuclear Safety Cooperation Macro-financial Assistance Humanitarian Aid Instrument Instrument for Stability

5. EC financial support 5.3. Thematic programmes financed by HRI and DCI Thematic programmes principles co-financing subsidiarity distinctive added value effectiveness efficiency Common thematic programmes Human rights and and democracy Human and and Social Development Local Actors in in Development Migration and and Asylum Environment Food Security

5. EU financial Support 5.4. The European Investment Bank: A new mandate for the ENP and for Russia Current EIB EIB lending (2000 2006) :: 6.5 6.5 bn bnmediterranean, 0.6 0.6 bn bneastern Europe Future EIB EIB lending (2007-2013): EIB EIB external mandate currently under under discussion. Will Will be be approved before before the the end end of of 2006. 2006. Overall figures for for the the new new mandate would would include very very substantial increase for for 2007-2013. Ceiling for for external lending mandate would would increase for for ENPI ENPI to to 15 15 bn. bn. (Mediterranean: 10 10 bn bn // East: East: 5 bn) bn) Closer Closer cooperation with with EBRD EBRD and and other other International Financial Institutions (such (such as as the the World World Bank) Bank) is is foreseen.

Summing up An policy-driven instrument specifically designed for our neighbours More flexible and with more resources With a radically improved CBC component Using transition tool-box Now a matter of of implementation

Sources of Information Dedicated web site on on Europa server under Commission Europe in in the World : http://ec.europa.eu/comm/world/enp Commission Communication of of 29 November 2006 on on strengthening the ENP.