Transcript Session 1 - PPT new MFF for DCI and

Multiannual Financial Framework
2014-2020
New Development Cooperation
Instrument
11th European Development Fund
1

Multiannual budget = 5 headings for 7 years:
(1) Smart and Inclusive Growth; (2) Sustainable
Growth: natural resources; (3) Security & citizenship;
(4) Global Europe; (5) Administration

70 Regulations to be adopted by Council & EP

Timing of negotiations

Before end 2012: financial volumes

Before end 2013: adoption of Regulations
Major objectives of EU external action

Promote EU values

Invest in EU’s Neighbourhood and underpin our
commitment to Enlargement

Support EU interests abroad

Enhance external projection of internal policies to
better address global challenges

Contribute to the eradication of poverty

Demonstrate solidarity with people facing disasters

Strengthen international security
Responding to a new context

Structure / instruments mainly continue from
current MFF

But adapted to changing world & changing EU

New opportunities of the Lisbon Treaty & the EEAS

New Partnership Instrument to promote EU
interests

Common implementing regulation to streamline &
simplify implementing rules for all instruments
Increasing the efficiency and impact
of external spending

Greater strategic focus (differentiated approach)

Improve the architecture of instruments

Increase flexibility

Simplify multiannual programming

Reduce dispersion of activities

Promote Aid effectiveness
Budget per instruments (in current prices)

Pre-accession instrument
14,110 M€

European Neighbourhood Instrument
18,182 M€

Development Cooperation Instrument
23,295 M€

Partnership Instrument
1,131 M€

Instrument for Stability
2,829 M€

European Instrument for Democracy &
Human Rights
1,578 M€

Instrument for Nuclear Safety Cooperation
631 M€

Instrument for Greenland
219 M€

European Development Fund (outside Budget)
34,276 M€

TOTAL
6
96,251 M€
Main innovations “Global Europe”
(Heading IV), DCI & EDF
7
Differentiation

Target resources where they have greatest impact

Under DCI:

19 countries able to generate significant own
resources will be graduated from bilateral
assistance

Those countries are still eligible for regional
cooperation & thematic programmes

Criteria for allocation of funds: partner
countries' needs, capacities, commitments &
performance, & potential EU impact
Concentration

Avoid sectoral fragmentation

Higher impact of EU aid by concentrating resources
on a limited number of sectors

Under DCI:

Maximum of 3 sectors per country for
geographic programmes

Common areas of cooperation established in
accordance with the Agenda for Change
A more flexible programming process

More coherence & aid effectiveness: alignment to
partner countries & joint programming

Under DCI:

CSPs are not mandatory when alignment with
national development plans

CSPs may be replaced by Joint Framework
Documents

More flexible programming process for
countries in fragile, crisis & post-crisis situations
Mutual accountability in allocating
& disbursing funds

Human rights, democracy & good governance

Enlargement & neighbouring countries:
assistance more closely linked to progress in
implementing reforms

Developing countries: mutual accountability in
respect of commitments & the fulfilment of objectives
as agreed
Blending of grants & loans

EU member states' public funds are heavily
constrained

Combine grants with additional flows (such as
loans and risk capital) to gain financial &
qualitative leverage & increase EU development
policy impact

Allows to finance large infrastructure projects
which would otherwise be too costly for single donors
Simplified rules

Reduction of administrative burden

Harmonisation through a horizontal legislative
instrument (Common Implementing Regulation)
Stronger involvement
of the EP

Use of delegated acts

Improved democratic scrutiny over the European
Development Fund
DCI: Objectives, scope and structure

DCI adapted to changing world & new EU policies
including the “Agenda for Change”

Poverty reduction remains the main objective, but
new focus on human rights, democracy &
governance & inclusive & sustainable growth

Measured by relevant indicators (MDGs & other
indicators agreed by the Union & its MS)

DCI funding increases by 19% (2011 prices)
Scope I
Geographic programmes
(bilateral, regional & continental)

Funding
€ 14 billion

Regions
Asia, Central Asia, Latin America,
Middle East & South Africa

Bilateral
27 countries (upper MICs & countries
with 1% or more of global GNI are not
eligible, except Cuba & South Africa)

Regional
46 countries (including the above 27
countries)

Areas
3 sectors aligned to national strategies

ODA
100% DACable
Scope II
Thematic programmes

Funding
€ 8.3 billion

Regions
All third countries except industrialised
& pre-accession

Themes
Global Public Goods & Challenges
(€ 6.3 billion): human development, climate
change & environment, sustainable energy,
food security & sustainable agriculture,
migration & asylum
Civil Society Organisations & Local
Authorities (€ 2 billion)

ODA
10% flexibility over DACability
Scope III
Pan-African Programme

Funding
€ 1 billion

Regions
Countries, Territories & Regions
covered by the Joint-EU Africa Strategy

ODA
10% flexibility over DACability
€ 13.991bn
GEOGRAPHIC Programmes (national, regional, continental)
THEMATIC Programmes
Total
23.3 bn€
(Annex
VII)
Global Public Goods
and Challenges
(At least 50% of the
funds, prior to use of
OECD markers, will serve
for Climate Action and
Environment-related
objectives)
Environment and Climate
Change
Food Security and
Sustainable Agriculture
Human Development
Sustainable Energy
Migration and Asylum
CSO and LA
Pan-African Programme
31,8% - € 2bn
28,4% - € 1.8bn
€ 6.303bn
20% - € 1.3bn
12,7% - € 0.8bn
7,1% - € 0.4bn
€ 2bn
€ 1bn
11th European Development Fund

Based on Cotonou agreement: cooperation with 78
ACP countries

Funding: € 34.3 billion

Internal Agreement:

First of various legal texts forming the EDF

To be ratified by all MS

Only covers the broad financial envelopes

No major modifications compared to the 10th
EDF
19

Cooperation with ACPs & OCTs remains outside the
EU Budget

Further alignment of MS contribution keys with
budget keys

Inclusion of new elements from the Cotonou revision

Elements on programming & implementation at a
later stage:

implementation of EU development policy
principles (“Agenda for Change”)

differentiation will apply while respecting the
provisions of the Cotonou Agreement
20