APPENDIX 8: PROPOSED NEW FINANCIAL
INSTRUMENTS FOR 2007-2013|
The overall agreement on the Financial Perspectives
reached at the December European Council included a Global Partner
(External Actions) budget over the seven years 2007-2013 of 50.1
billion. This will increase annually from 6.28 billion
in 2007 to 8.07 billion in 2013.
During 2004 the Commission proposed a simplification
of the external relations budget in order to replace over 60 legal
instruments under which money can be spent. The new simplified
structure would entail having just six different instruments,
each related to broad geographical or policy areas:
- Instrument for Pre-Accession Assistance
(IPA)this will prepare candidate countries for accession
to the EU.
- European Neighbourhood and Partnership Instrument
(ENPI)this will encourage economic integration and political
co-operation between the EU and 17 partner countries (those under
the ENP and Russia), promote sustainable development and poverty
reduction, and address security and stability challenges posed
by their geographical proximity to the EU
- Development Co-operation and Economic Co-operation
Instrument (DCECI)this will cover assistance to all countries
not covered by the above two instruments, including both developing
countries and countries in transition.
- Stability Instrument (SI)this non-geographical
instrument will allow the Community to: 1) respond urgently to
situations of crisis or instability, and threats to human rights
and democracy; 2) address global, trans-border security and stability
challenges such as those posed by organised crime and terrorism;
3) safeguard the EU's population against critical technological
threats (such as nuclear pollution) and combat the proliferation
of weapons of mass destruction; 4) promote international action
in support of these general aims (for example by training civilian
experts for deployment on EU crisis management missions, or by
developing the peace-keeping capacity of other regional and sub-regional
organisations); and 5) address other, unforeseen, global challenges
to stability and security.
- Humanitarian Aid Instrument (HAI)this
will provide humanitarian aid, including food aid.
- Macro-Financial Assistance (MFA)this will
provide guarantees for loans from the EC to third countries to
help with extraordinary balance of payments difficulties.
Discussions with the European Parliament concerning
these instruments are on-going. The Parliament is concerned that
fewer instruments will entail less Parliamentary oversight of
spending. The Commission believe this will not be the case.
There are, in addition, negotiations concerning proposals
to have a separate instrument for Human Rights and Democracy and
to split the DCECI into two separate instruments in order to ensure
greater focus on the development needs of poorer countries.
It is expected that the instruments will be finalised
and adopted during 2006.
203 International Development Committee, Oral Evidence
(2005-2006) EU Development Co-operation and External Relations
Policy (HC 745), Q 13. Back