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Europaudvalget 2006-07
2755+2756 - Alm. anliggender Bilag 2
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COUNCIL OF

THE EUROPEAN UNION

Brussels, 3 October 2006

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Interinstitutional File:

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Subject :

Working Party on Development Cooperation

2 October 2006

Coreper

11661/06, 11662/06, 11779/06

13689/04 + COR 1

Text of Draft Regulation of the European Parliament and of the Council

establishing a financing instrument for development cooperation

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REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a financing instrument for development cooperation

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 179(1)

thereof,

Having regard to the proposal from the Commission,

Acting in accordance with the procedure referred to in Article 251 of the Treaty,

Whereas:

(1) A new framework for planning and delivering assistance is proposed in order to make the

Community's external assistance more effective. Council Regulation (EC) No [.] of [ ] establishes

an Instrument for Pre Accession (IPA) for Community assistance to candidate and potential

candidate countries. Regulation (EC) No [.] of the European Parliament and of the Council of [.]

establishes a European Neighbourhood and Partnership Instrument (ENPI). Council Regulation

(EC) No of [.] establishes an instrument for industrialised and other high-income countries and

territories. Regulation (EC) No [.] of the European Parliament and of the Council of [.] establishes a

financing instrument for the promotion of democracy and human rights worldwide. This Regulation

establishes a financing instrument for development cooperation (DCI) providing direct support for

the European Community development cooperation policy.

(2) The Community pursues a development cooperation policy aimed at achieving the objectives of

poverty reduction, sustainable economic and social development and the smooth and gradual

integration of developing countries into the world economy.

UK entered a parliamentary scrutiny reserve.

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(3) The Community pursues a cooperation policy that fosters cooperation, partnerships and joint

undertakings between economic players in the Community and partner countries and regions, and

promotes dialogue between political, economic and social partners in relevant sectors.

(4) The Community's development cooperation policy and international action are guided by the

Millennium Development Goals, such as the eradication of extreme poverty and hunger, adopted by

the UN General Assembly in 2000, and the main development objectives and principles approved

by the Community and its Member States in the context of the United Nations and other competent

international organisations in the field of development cooperation.

(5) With a view to policy coherence for development, it is important that EC non-development

policies assist developing countries' efforts in achieving the MDGs in line with Article 178 of the

Treaty establishing the European Community.

(6) A political environment which guarantees peace and stability, respect for human rights,

fundamental freedoms, democratic principles, the rule of law, good governance and gender equality

is fundamental to long-term development.

(7) Sound and sustainable economic policies are a prerequisite for development.

(8) The members of the World Trade Organisation (WTO) committed themselves at the 4th

Ministerial Conference in Doha to mainstreaming trade in development strategies and to providing

trade-related technical and capacity-building assistance as well as the necessary measures seeking to

facilitate the transfer of technology through and for trade, to enhance the relationship between

foreign direct investment and trade, and the mutual interrelation of trade and environment, and to

help developing countries take part in new trade negotiations and implement their results.

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(9) The Joint Statement by the Council and the Representatives of the Governments of the Member

States meeting within the Council, the European Parliament and the Commission on European

Union development policy: 'The European Consensus on Development' of 20 December 2005

, and

any subsequent modifications, provides the general framework for action by the Community on

development matters. It should steer the planning and implementation of the development

assistance and cooperation strategies.

(10) Development cooperation should be implemented through geographic and thematic

programmes. Geographic programmes should support the development of and reinforce the

cooperation with countries and regions in Latin America, Asia, Central Asia, the Middle East and

South Africa.

(11) The Community and its Member States have concluded partnership and cooperation

agreements with some of these partner countries and regions aimed at making a significant

contribution to the long-term development of the partner countries and the wellbeing of their

people. The essential elements on which these partnership and cooperation agreements are based are

the common and universal values of respect for and promotion of human rights fundamental

freedoms, democratic principles and the rule of law. In this context, attention shall also be given to

the right to decent work and the rights of people with disabilities. The pursuit and deepening of

bilateral relations between the Community and partner countries and consolidation of multilateral

institutions are important factors in making a significant contribution to balancing and developing

the world economy, and also in strengthening the Community's and partner countries’ and regions’

role and place in the world

JO C 46 of 24.2.2006, p.1.

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(12) While thematic programmes should primarily support developing countries, two beneficiary

countries as well as the OCTs, whose characteristics do not meet the requirements to be defined as

ODA recipients by the OECD/DAC and which are covered by article 2(4), second subparagraph,

first indent, should also be eligible to thematic programmes under the conditions set out in this

Regulation. The Community should finance thematic programmes in countries, regions and

territories eligible to assistance under a geographic programme provided for under this Regulation,

to assistance under Regulation No [.] of the European Parliament and of the Council of [.] laying

down general principles establishing a European Neighbourhood and Partnership Instrument (ENPI)

or to geographic cooperation according to the European Development Fund (EDF). Council

Decision 2001/822/EC of 27 November 2001, which is applicable until 31 December 2011, lays

down the conditions for the eligibility of OCTs to the thematic activities of development assistance

funded by the Community budget, which are not altered by this Regulation.

(13) Thematic programmes should provide distinctive added value and complement programmes of

a geographic nature, which constitute the main framework for Community cooperation with third

countries. Development cooperation implemented through thematic programmes should be

subsidiary to geographic programmes set out in this Regulation and in Regulation No [.] of the

European Parliament and of the Council of [.] laying down general principles establishing a

European Neighbourhood and Partnership Instrument (ENPI) and to cooperation under the

European Development Fund. They encompass a specific area of activity of interest to a group of

partner countries not determined by geography, or cooperation activities addressed to various

regions or groups of partner countries, or an international operation that is not geographically

specific. They also have an important role in developing Community policies externally and

ensuring sectoral consistency and visibility.

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(14) Thematic programmes should support actions in the areas of human and social development,

environment and sustainable management of natural resources, including energy, non state actors

and local authorities, food security and migration and asylum. The contents of the thematic

programmes have been prepared on the basis of the corresponding communications from the

Commission to the Council and the European Parliament.

(15) The thematic programme on environment and the sustainable management of resources,

including energy shall, inter alia, promote international environmental governance and EU

environmental and energy policies abroad.

(16) The thematic programme on migration and asylum should contribute to the realisation of the

objective set out in the European Council conclusions of 15 December 2005, namely to intensify the

Community financial assistance in areas concerning or related to migration in respect of its relations

with third countries.

(17) Community policy on food security has evolved towards support to broad-based food security

strategies at national, regional and global level, limiting the use of food aid to humanitarian

situations and food crisis and avoiding disruptive effects on local production and markets, and

needs to take into account the specific situation of countries that are structurally fragile and highly

dependent on support to food security, in order to avoid a steep reduction of Community assistance

to these countries.

COM(2006)18 final; COM(2006) 19 final; COM(2006) 20 final; COM(2006) 21 final;

COM(2006) 26 final.

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(18) In line with the Council Conclusions of 24 May 2005 actions should be supported to improve

reproductive and sexual health in developing countries and to secure respect for the rights relating

thereto and financial assistance and appropriate expertise should be provided with a view to

promoting a holistic approach to, and the recognition of, reproductive and sexual health and rights

as defined in the ICPD Programme of Action, including safe motherhood and universal access to a

comprehensive range of safe and reliable reproductive and sexual health care and services. When

cooperation measures are implemented, the decisions adopted at the ICPD must be observed.

(19) Following up on Regulation (EC) No 266/2006 of the European Parliament and the Council of

15 February 2006 establishing accompanying measures for Sugar Protocol countries, assistance to

Sugar Protocol ACP countries affected by the reform of the Common Market Organisation for sugar

should also be provided and aim at supporting their adjustment process.

(20) In implementing the Community's development policy, more effective aid, greater

complementarity and better harmonisation, alignment and coordination of procedures, both between

the Community and its Member States and in relations with other donors and development actors,

are essential to ensuring the consistency and relevance of aid whilst at the same time reducing the

costs borne by partner countries as approved in the Declaration adopted by the High Level Forum

on Harmonization, held in Paris, March 2005.

(21) In order to achieve the objectives of this Regulation it is necessary to pursue a differentiated

approach depending on development contexts and needs, supporting partner countries or regions

with specific, tailor-made programmes, based on their own needs, strategies, priorities and assets.

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(22) The key to the success of development policies is whether the partner countries take ownership

of the development strategies, and, to this end, the greatest possible involvement of all sections of

society including disabled people and other vulnerable groups should be encouraged. With a view

to ensuring efficiency and transparency and encouraging countries to take ownership, donors'

cooperation strategies and implementation procedures should where possible, be aligned on those of

the partner countries.

(23) Taking into consideration the need to ensure effective bridging between humanitarian relief

and long-term development assistance, measures eligible under Regulation (EC) [.] of the European

Parliament and of the Council of [.] establishing an Instrument for Stability should not, in principle,

be funded under this Regulation, except where there is a need to ensure continuity of cooperation

from crisis to stable conditions for development.

(24) Untying aid in line with best practices of the Development Assistance Committee of the

Organization for Economic Cooperation and Development (OECD/DAC) is a key factor in adding

value to aid and in building local capacity. Rules on participation in tenders and grant contracts, as

well as rules concerning the origin of supplies should be set down in accordance with most recent

developments concerning the untying of aid.

(25) Assistance should be managed in accordance with the rules for External Aid contained in

Council Regulation (EC, Euratom) N°1605/2002, with due provisions aimed at protecting the

financial interests of the Community. Continued efforts will be made to improve the

implementation of development cooperation to achieve a sound balance between financial resources

allocated and absorption capacity, as well as to reduce outstanding commitments.

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(26) This Regulation establishes a financial allocation for the period 2007-2013 which will be the

prime reference, within the meaning of Point 38 of the Interinstitutional Agreement of 17 May 2006

between the European Parliament, the Council and the Commission on budgetary discipline and

improvement of the budgetary procedure.

(27) Measures should be adopted for implementation of this Regulation in accordance with Council

Decision 1999/468/EC of 28 June 1999 laying down the procedures for the exercise of

implementing powers conferred on the Commission. Programming documents and some specific

implementation measures should be adopted by the management committee procedure.

(28) Certain objectives of the proposed cooperation with developing countries, territories and

regions that are not Community Member States and are not eligible for Community aid under

Council Regulation (EC) No [.] of [ ] establishing an Instrument for Pre Accession (IPA) or

Regulation No [.] of the European Parliament and of the Council of [.] laying down general

principles establishing a European Neighbourhood and Partnership Instrument (ENPI), which

cannot be sufficiently achieved by the Member States can, by reason of the scale of the action, be

better achieved by the Community. The Community may therefore adopt measures in accordance

with the principle of subsidiarity enshrined in Article 5 of the Treaty. In accordance with the

principle of proportionality laid down in that Article, this Regulation does not go beyond what is

necessary to achieve these objectives.

(29) This Regulation makes it necessary to repeal the current set of Regulations in view of the

restructuring of the external action instrument, notably in the field of development cooperation,

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HAVE ADOPTED THIS REGULATION:

Article 1

Overall purpose and scope

(1) The Community shall finance measures aimed at supporting cooperation with developing

countries, territories and regions included in the list of aid recipients of the Development Assistance

Committee of the Organization for Economic Cooperation and Development (OECD/DAC), and set

out in Annex 1 to this regulation (hereinafter referred to as "partner countries and regions"). The

Commission shall amend Annex 1 in accordance with regular OECD/DAC reviews of its list of aid

recipients and inform the European Parliament and the Council thereof.

(2) The Community shall finance thematic programmes in countries, regions and territories eligible

to assistance under a geographic programme of this Regulation, set out in Articles 5 to 10, to

assistance under Regulation No [.] of the European Parliament and of the Council of [.] laying down

general principles establishing a European Neighbourhood and Partnership Instrument (ENPI) or to

geographic cooperation under the European Development Fund.

(3) For the purposes of this Regulation, a region is defined as a geographical entity comprising

more than one developing country.

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TITLE I

OBJECTIVES AND PRINCIPLES

Article 2

Objectives

(1) The primary and overarching objective of cooperation under this regulation shall be the

eradication of poverty in partner countries and regions in the context of sustainable development,

including pursuit of the Millennium Development Goals, as well as the promotion of democracy,

good governance and respect for human rights and for the rule of law. Consistently with this

objective, cooperation with partner countries and regions shall:

–

consolidate and support democracy, the rule of law, human rights and fundamental

freedoms, good governance, gender equality and related instruments of international law;

–

foster the sustainable development - including political, economic, social and environmental

aspects - of partner countries and regions, and more particularly the most disadvantaged

among them;

–

encourage their smooth and gradual integration into the world economy;

help develop international measures to preserve and improve the quality of the environment

and the sustainable management of global natural resources, in order to ensure sustainable

development including climate change and biodiversity;

–

and strengthen the relationship between the Community and partner countries and regions.

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(2) Community cooperation under this Regulation shall comply with the commitments and

objectives in the field of development cooperation that the Community has approved in the context

of the United Nations and other competent international organisations in the field of development

cooperation.

(3) Community development policy, as laid down in Title XX of the Treaty, shall provide the legal

framework for cooperation with partner countries and regions. The Joint Statement by the Council

and the representatives of the governments of the Member States meeting within the Council, the

European Parliament and the Commission on European Union development policy: 'The European

consensus on Development' of 20.12.2005

and any subsequent modifications shall provide the

general framework, orientations and focus to steer the implementation of Community cooperation

with partner countries and regions under this Regulation.

(4) Measures referred to in Article 1(1) shall be designed so as to fulfil the criteria for official

Development Assistance established by the Development Assistance Committee of the OECD.

Programmes referred to in Article 1(2) shall be designed so as to fulfil the criteria for official

Development Assistance by the Development Assistance Committee of the OECD, unless:

the characteristics of the beneficiary require otherwise, or

the programme implements a global initiative, a community policy priority or an international

obligation or commitment of the Community, as referred to in Article 11(2), and the measure does

not have the characteristics to fulfil such criteria.

OJ C 46 of 24.2.2006, p. 1.

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At least 90% of the expenditure foreseen under thematic programmes shall be designed so as to

fulfil the criteria for ODA established by the Development Assistance Committee of the OECD,

without prejudice to Art. 2 (4), 2nd subparagraph, 1st indent.

(5) Community assistance under this Regulation shall not be used to finance the procurement of

arms or ammunition, and operations having military or defence implications.

(6) Measures covered by Regulation (EC) [.] of the European Parliament and of the Council of [.]

establishing an Instrument for Stability, and especially its Article 4, and eligible for funding there

under shall not, in principle, be funded under this Regulation, except where there is a need to ensure

continuity of cooperation from crisis to stable conditions for development.

Without prejudice to the need to ensure continuity of cooperation from crisis to stable conditions for

development, measures covered by, and eligible for funding under Council Regulation 1257/96 of

June 1996 concerning humanitarian aid

, shall not be funded under this Regulation.

Article 3

General principles

(1) The Community is founded on the values of democracy, the rule of law, respect for human

rights and fundamental freedoms and seeks to develop and consolidate commitment to these values

in partner countries and regions through dialogue and cooperation.

(2) In the implementation of this regulation, a differentiated approach depending on development

contexts and needs shall be pursued so that partner countries or regions are provided with specific,

tailor-made co-operation, based on their own needs, strategies, priorities and assets.

OJ L 163 of 2.7.1996, p. 1.

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Least developed countries and low income countries shall be given priority in terms of overall

resource allocation in order to achieve the Millennium Development Goals. Appropriate attention

shall be given to support the pro-poor development of middle income countries, particularly the

lower middle income countries many of which face similar problems to LICs.

(3) Mainstreaming of the following cross-cutting issues shall be undertaken in all programmes: the

promotion of human rights, gender equality, democracy, good governance, the rights of the child

and indigenous peoples’ rights, environmental sustainability and combating HIV/AIDS. In addition,

particular attention shall be given to strengthening the rule of law, improving access to justice and

supporting civil society, as well as promoting dialogue, participation and reconciliation and

institution building.

(4) The Community shall take account of the objectives laid down in Title XX of the Treaty and in

Article 2 herein, in all policies which are likely to affect partner countries and regions. For measures

financed under this Regulation, the Community shall also aim to ensure coherence with other areas

of its external action. This shall be ensured in formulating policy, strategic planning and the

programming and implementation of measures.

(5) The Community and the Member States shall improve coordination and complementarity of

their policies on development cooperation by responding to partner countries and regions' priorities

at country and regional level. Community policy in the sphere of development cooperation shall be

complementary to the policies pursued by the Member States.

(6) The Commission and the Member States shall seek regular and frequent exchanges of

information, including with other donors and promote better donor coordination and

complementarity by working towards joint multiannual programming, based on partner countries'

poverty reduction or equivalent strategies and country's own budget processes, common

implementation mechanisms including shared analysis, joint donor wide missions, and the use of

co-financing arrangements.

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(7) Within their respective spheres of competence, the Community and the Member States shall

promote a multilateral approach to global challenges and foster cooperation with multilateral and

regional organisations and bodies such as international financial institutions, United Nations

agencies, funds and programmes, and other bilateral donors.

(8) The Community shall promote effective cooperation with partner countries and regions in line

with international best practice. It shall promote:

a) a development process that is partner country led and owned. The Community shall

increasingly align its support with partners’ national development strategies, reform policies

and procedures. The Community shall contribute to strengthening the process of mutual

accountability between partner governments and donors and promote local expertise and

local employment;

b) inclusive and participatory approaches to development and a broad involvement of all

segments of society in the development process and in national dialogue, including political

dialogue;

c) effective cooperation modalities and instruments as set out in Article 25 in line with

OECD/DAC best practices, adapted to the particular circumstances of each partner country

or region, with a focus on programme-based approaches, delivery of predictable aid funding,

the development and use of country systems and on results-based approaches to

development including, where appropriate, Millennium Development Goals’ targets and

indicators;

d) improved impact of policies and programming through coordination and harmonisation

between donors to reduce overlap and duplication, to improve complementarity and to

support donor wide initiatives. Coordination shall take place in partner countries and regions

using agreed guidelines and best practice principles on coordination and aid effectiveness;

e) an MDG profile in Country Strategy Papers and in its multiannual programming.

(9) The Commission shall inform and have regular exchanges of views with the European

Parliament.

(10) The Commission shall seek regular exchanges of information with civil society.

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TITLE II

GEOGRAPHIC AND THEMATIC PROGRAMMES

Article 4

Consistent with the overall purpose and scope, objectives and general principles of this Regulation,

Community assistance shall be implemented through geographic and thematic programmes set out

in Articles 5 to 16 and the programme set out in Article 17.

Article 5

Geographic programmes

(1) A geographic programme shall encompass cooperation in appropriate areas of activity with

partner countries and regions determined on a geographical basis.

(2) Consistent with the overall purpose and scope, objectives and general principles of this

Regulation, Community assistance to Latin America, Asia, Central Asia, the Middle East as defined

in Annex 1, as well as South Africa shall include actions within the following areas of cooperation:

a) supporting the implementation of policies aimed at poverty eradication and at the achievement of

the Millennium Development Goals;

Human development

b) addressing the essential needs of the population with prime attention to primary education and

health, in particular by:

Health:

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i) increasing access to and provision of health services for lower income population groups and

marginalised groups, including groups subject to ethnic, religious or gender-based discrimination or

discrimination based on disability with a central focus on the related Millennium Development

Goals, namely reducing child mortality, improving maternal and child health and sexual and

reproductive health and rights as set out in the ICDP Cairo Agenda, addressing poverty diseases, in

particular HIV/AIDS, tuberculosis and malaria;

ii) strengthening health systems in order to prevent human resource crises in the health sector;

iii) enhancing capacities particularly in areas such as in public health and research and

development;

Education :

iv) giving priority in primary education to achieving quality primary education and with a view to

compulsory and free education up to the age of 15 followed by vocational training and to reduce

inequalities in terms of access to education;

v) aiming at achieving universal primary education by 2015, and at eliminating gender disparity in

education;

vi) promoting vocational training, higher education, life-long learning, cultural, scientific and

technological cooperation, academic and cultural exchanges as well as enhancing mutual

understanding between partner countries and regions and the Community;

Social cohesion and employment :

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c) promoting social cohesion as a priority policy of the relations between the Community and

partner countries, with a focus on decent work and social and fiscal policies, thereby fighting

against poverty, inequality, unemployment and exclusion of vulnerable and marginalised groups;

d) combating all forms of group-based discrimination and promoting and protecting gender

equality, indigenous peoples’ rights and the rights of the child, including supporting implementation

of the UN Convention on the Rights of the Child, and actions to address the problems faced by

street children and children undertaking forms of labour that are hazardous and/or hinder full-time

education;

e) strengthening the institutional framework to promote and facilitate the creation of small and

medium sized enterprises with a view to stimulating job creation

Governance, democracy, human rights and support for institutional reforms

f) promoting and protecting fundamental freedoms and human rights, strengthening democracy, the

rule of law, access to justice, good governance including actions to combat corruption, by including,

but not limited to capacity building and strengthening the institutional and legislative framework,

particularly in the areas of national administration, design and implementation of policies and

management of public finances and national resources in a transparent way;

g) supporting an active civil society, including civil society organisations representing people living

in poverty, as well as promoting civic dialogue, participation and reconciliation, and institution

building;

h) fostering cooperation and policy reform in the fields of security and justice, especially as regards

asylum and migration, the fight against drugs and other trafficking including trafficking in human

beings, corruption and money laundering;

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i) fostering cooperation and policy reform in the field of migration and asylum with partner

countries and promoting capacity building initiatives to ensure the formulation and implementation

of pro-development migration policies to address the root causes of migration;

j) supporting effective multilateralism, in particular through the adhesion to and the effective

implementation of international law and multilateral agreements relevant to the field of

development;

Trade and regional integration

k) assisting partner countries and regions on trade, investment and regional integration including

technical assistance and capacity building to design and implement sound trade policies, favouring a

more conducive business environment, sound economic and financial policies and private sector

development, with a view to partner countries and regions benefiting from their integration into the

world economy and to supporting social justice and pro-poor growth;

l) supporting accession to the World Trade Organisation and implementation of WTO agreements

by technical assistance and capacity building, in particular the implementation of the trade-related

aspects of intellectual property (TRIPS), notably in the area of public health;

m) supporting economic and trade cooperation and strengthening investment relations between the

European Community and partner countries and regions, including by actions to promote and

ensure that private actors, including local and European businesses, contribute to socially

responsible and sustainable economic development, including the respect of ILO core labour

standards and by actions to promote local capacity building;

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Environment and sustainable development of natural resources:

n) promoting sustainable development through environmental protection and sustainable

management of natural resources, including protection of biodiversity and of forests, including

activities for the conservation and sustainable management of forests with active participation of

local communities and forest dependent peoples;

o) supporting improvements in the urban environment;

p) promoting sustainable patterns of production and consumption and the safe and sustainable

management of chemicals and waste, taking into account their impacts on health;

q) ensuring respect for and supporting the implementation of international environment agreements

such as the Convention on Biological Diversity, the Convention on Desertification and the

Framework Convention on Climate Change in line with the EU Action Plan on Climate Change,

and their protocols and any subsequent modifications;

r) developing capacities for emergency preparedness and prevention of natural disasters;

Water and energy

s) supporting the sustainable integrated water resource management, with particular emphasis on

universal access to safe drinking water and sanitation in line with the MDGs and sustainable and

efficient use of water resources, including for agricultural and industrial purposes;

t) fostering greater use of sustainable energy technologies;

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Infrastructure, communication and transport

u) contributing to the development of economic infrastructure, including support to regional

integration, and promoting the increased use of information and communication technologies

Rural development, territorial planning, agriculture and food security

v) supporting sustainable rural development, including decentralisation and empowerment,

particularly with a view to ensuring food security;

Post-crisis situations and fragile states :

w) reconstructing and rehabilitating, in the medium- and long-term, regions and countries affected

by conflict, man-made and natural disasters, including support for mine-action, demobilisation and

reintegration actions, while ensuring the continuum between relief, rehabilitation and development

in accordance with Article 2(6); bearing in mind the competences of the Community and its

Member States;

x) carrying-out medium- and long-term activities aimed at the self-sufficiency and integration or

reintegration of uprooted people, ensuring that an integrated and consistent approach between

humanitarian aid, rehabilitation, aid to uprooted people and development cooperation is pursued.

Community action shall facilitate the move from the emergency stage to that of development,

encouraging the socio-economic integration or reintegration of the people affected, and encourage

the establishment or strengthening of democratic structures and the role of the population in the

development process.

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y) in fragile or failing states, supporting the delivery of basic services and building of legitimate,

effective and resilient public institutions;

z) addressing development challenges common to the Community and its partners, in particular

support to sectoral dialogues, to the implementation of bilateral agreements and any other area of

action consistent with the scope of this Regulation.

Article 6

Latin America

Community assistance to Latin America shall support actions consistent with Article 5 and with the

overall purpose and scope, objectives and general principles of this Regulation. Additional attention

shall be paid to the following areas of cooperation, reflecting the specific situation in Latin

America:

a) promoting social cohesion as a shared goal and priority policy of Community-Latin America

relations thereby fighting against poverty, inequality and exclusion. Particular attention shall be

paid to social welfare and tax policies, productive investment for more and better jobs, policies to

combat discrimination and production, consumption and trafficking of drugs, and improvements in

basic social services, in particular health and education;

b) encouraging greater regional integration, including the support to different processes of regional

integration and to the interconnection of network infrastructures, while ensuring complementarity

with activities supported by European Investment Bank and other institutions;

c) supporting the reinforcement of good governance and public institutions, and of the protection of

human rights, including the rights of the child and indigenous peoples’ rights;

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d) supporting the creation of a common EU-Latin American higher education area;

e) promoting sustainable development in all its dimensions, with particular attention to the

protection of forests and biodiversity.

Article 7

Asia

Community assistance to Asia shall support actions consistent with Article 5 and with the overall

purpose and scope, objectives and general principles of this Regulation. Additional attention shall

be paid to the following areas of cooperation, reflecting the specific situation in Asia:

a) pursuing Millennium Development Goals in the field of health, including HIV/Aids, and

education, inter alia through policy dialogue for sectoral reform;

b) addressing governance issues in particular in fragile States so as to help build legitimate,

effective and resilient public institutions and an active and organised civil society, and to enhance

the protection of human rights, including the rights of the child;

c) encouraging greater regional integration and cooperation through support to different processes

of regional integration and dialogue;

d) contributing to the control of epidemics and zoonosis as well as to the rehabilitation of the

affected sectors;

e) promoting sustainable development in all its dimensions, with particular attention to the

protection of forests and biodiversity;

f) fighting against production, consumption and trafficking of drugs and against other trafficking.

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Article 8

Central Asia

Community assistance to Central Asia shall support actions consistent with Article 5 and with the

overall purpose and scope, objectives and general principles of this Regulation. Additional attention

shall be paid to the following areas of cooperation, reflecting the specific situation in Central Asia:

a) promoting constitutional reforms and legislative, administrative and regulatory approximation

with the Community, including strengthening of national institutions and bodies responsible for the

effective implementation of policies in areas covered in the Partnership and Cooperation

Agreements, such as election bodies, parliaments, public administration reform and public financial

management;

b) promoting the development of a market economy and partner countries' integration into the

World Trade Organisation, while addressing the social aspects of the transition;

c) supporting efficient border management and cross-border cooperation to promote sustainable

economic, social and environmental development in border regions;

d) fighting against production, consumption and trafficking of drugs and against other trafficking;

e) fighting against HIV/Aids;

f) promoting regional cooperation, dialogue and integration, including with countries covered by

Regulation No [.] of the European Parliament and of the Council of [.] laying down general

principles establishing a European Neighbourhood and Partnership Instrument (ENPI) and other

Community instruments, in particular promoting cooperation in the environment - notably water

and sanitation -, education, energy and transport sectors, including the security and safety of

international energy supply and transport operations , on interconnections, the networks and their

operators, renewable energy sources, energy efficiency.

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Article 9

Middle East

Community assistance to the Middle East shall support actions consistent with Article 5 and with

the overall purpose and scope, objectives and general principles of this Regulation. Additional

attention shall be paid to the following areas of cooperation, reflecting the specific situation in the

Middle East:

a) encouraging social cohesion to ensure social equity, notably in relation to the use of domestic

national resources and to ensure political equality in particular through the promotion of human

rights, including gender equality;

b) promoting economic diversification, the development of a market economy, and partner

countries' integration in the World Trade Organisation;

c) promoting regional cooperation, dialogue and integration, including with countries covered by

Regulation No [.] of the European Parliament and of the Council of [.] laying down general

principles establishing a European Neighbourhood and Partnership Instrument (ENPI) and other

Community instruments via the support to integration efforts within the region, for example on the

economy, energy, transportation and refugees;

d) supporting the conclusion of international agreements and the effective implementation of

international law, in particular UN resolutions and multilateral conventions;

e) addressing governance issues in particular in fragile States so as to help build legitimate,

effective and resilient public institutions and an active and organised civil society, and to enhance

the protection of human rights, including the rights of the child.

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Article 10

South Africa

Community assistance to South Africa shall support actions consistent with Article 5 and with the

overall purpose and scope, objectives and general principles of this Regulation. Additional attention

shall be paid to the following areas of cooperation, reflecting the specific situation in South Africa:

a) supporting the consolidation of a democratic society, good governance and a State governed by

the rule of law and contributing to regional and continental stability and integration;

b) providing support to the adjustment efforts occasioned in the region by the establishment of free-

trade areas under the Trade, Development and Cooperation Agreement and other regional

arrangements;

c) supporting the fight against poverty, inequality and exclusion, including by addressing the basic

needs of the previously disadvantaged communities;

d) addressing the HIV/Aids pandemic and its impacts on the South African society.

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Article 11

Thematic programmes

(1) A thematic programme shall be subsidiary to programmes referred to in Articles 5 to 10 and

shall encompass a specific area of activity of interest to a group of partner countries not determined

by geography, or cooperation activities addressed to various regions or groups of partner countries,

or an international operation that is not geographically specific.

(2) Consistent with the overall purpose and scope, objectives and general principles of this

regulation, the actions undertaken by thematic programmes shall add value to and be additional and

coherent with actions funded under geographic programmes. The following principles shall apply to

these actions:

a) Community policy objectives cannot be achieved in an appropriate or effective manner through

geographic programmes and the programme is implemented by or through an intermediary

organisation such as non governmental organisations, other non state actors, international

organisations or multilateral mechanisms. This includes global initiatives supporting the

Millennium Development Goals, sustainable development or global public goods and actions in

Member States and acceding countries by way of derogation to Article 24 as foreseen in the

relevant thematic programme,

and/or

b) actions in partner countries and regions of the following nature :

- multi-regional and/or cross-cutting actions, including pilot projects and innovatory policies;

- actions in cases where there is no agreement on the action with the partner government(s);

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- actions relevant to the purpose of a specific thematic programme which respond to a Community

policy priority or an international obligation or commitment of the Community;

- where appropriate, actions in cases where there is no geographic programme or it has been

suspended.

Article 12

Investing in people

(1) The objective of Community assistance under the thematic programme Investing in people shall

be to support actions in areas which directly affect people’s living standards and well-being defined

below and focussing on the poorest and least developed countries and the most disadvantaged

sections of the population.

(2) To achieve the objective referred to in paragraph 1 and consistent with Article 11, the

programme shall include the following areas of activity:

a) Good health for all:

i) fight against poverty diseases targeting the major communicable diseases such as laid down in the

European Programme for action to confront HIV/AIDS, malaria and tuberculosis, in particular:

- increase the affordability of key pharmaceuticals and diagnostics for the three diseases in

accordance with the provisions of the TRIPs Agreement as clarified in the Doha Declaration on the

TRIPs Agreement and Public Health;

- encourage public and private investment in research and development for new treatments, new

medicines, particularly vaccines, microbicides and innovative treatments;

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- support global initiatives targeting the major communicable diseases in the context of poverty

reduction, including the Global Fund to fight HIV/AIDS, tuberculosis and malaria.

ii) in line with the principles agreed at the ICPD and the ICPD + 5, support actions to improve

reproductive and sexual health in developing countries and to secure the right of women, men and

adolescents to good reproductive and sexual health and provide financial assistance and appropriate

expertise with a view to promoting a holistic approach to, and the recognition of, reproductive and

sexual health and rights as defined in the ICPD Programme of Action, including safe motherhood

and universal access to a comprehensive range of safe and reliable reproductive and sexual health

care and services, supplies, education and information, including information on all kinds of family

planning methods, including:

- reduce maternal mortality and morbidity rates, with particular reference to the countries and

populations where these are highest;

iii) improve equitable access to health providers, commodities and health services by supporting:

- Interventions to address the human resources crisis in health;

- health information systems with the ability to generate, measure and analyse disaggregated

performance data to ensure better health and development outcomes and sustainability of delivery

systems;

- Improved vaccination and immunisation coverage and promote availability and access to existing

or new vaccines;

- fair mechanisms for financing equitable access to health care.

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iv) keeping a balanced approach between prevention, treatment and care, with prevention as a key

priority, acknowledging that its effectiveness is increased when linked with treatment and care.

b) Education, knowledge and skills:

i) special attention to actions taken in the context of Millennium Development Goals to achieve

universal primary education by 2015 and the Dakar Framework for Action: Education for All;

ii) basic, secondary and higher education as well as vocational education and training to improve

access to education for all children and, increasingly, for women and men of all ages, with a view to

increasing knowledge, skills and employability on the job market, contributing to active citizenship

and individual fulfillment on a life-long basis;

iii) the promotion of universal, compulsory, free and high quality basic education up to the age of

15, with particular focus on access for girls, children in conflict-affected areas and children from

marginalised and more vulnerable social groups to education programmes;

iv) developing ways to measure learning outcomes in order to better assess the quality of education,

especially in literacy, numeracy and essential life skills;

v) promoting donor harmonisation and alignment to promote universal, compulsory, free and high

quality education through international or multi-country initiatives;

vi) supporting an inclusive knowledge society and contributing to bridging the digital divide,

knowledge and information gaps;

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vii) improving knowledge and innovation through science and technology as well as development

of and access to electronic communication networks in order to improve socio-economic growth

and sustainable development in conjunction with the international dimension of EU research policy.

c) Gender equality:

i) the promotion of gender equality and women's rights, implementing global commitments as

detailed in the Beijing Declaration and Platform for Action and the Convention on the Elimination

of All Forms of Discrimination Against Women, activities include:

supporting programmes that contribute to achieving the objectives of the Beijing Platform for

Action with a special emphasis on gender equality in governance and political and social

representation and other actions to empower women;

strengthening institutional and operational capacities of key stakeholders, civil society

organisations, women’s organisations and networks, in their endeavours to promote gender

equality and economic and social empowerment, including north-south and south-south

networking and advocacy;

include a gender perspective in monitoring and statistical capacity building, by supporting the

development and dissemination of data and indicators disaggregated by sex, as well as gender

equality data and indicators;

reduce the adult illiteracy rate, with particular emphasis on female literacy;

actions against violence against women.

d) Other aspects of human and social development

i) Culture:

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promotion of inter-cultural dialogue, cultural diversity and respect for the equal dignity of all

cultures;

promotion of international cooperation to stimulate the contribution of cultural industries to

economic growth in developing countries to fully exploit its potential for fighting poverty,

including addressing issues such as market access and intellectual property rights;

promotion of respect for the social, cultural and spiritual values of indigenous peoples and

minorities within the framework of universal human rights to combat the social inequalities and

injustice in multi-ethnic societies;

supporting culture as a promising economic sector for development and growth.

ii) Employment and social cohesion:

promotion of an integrated social and economic approach including promotion of productive

employment, decent work for all, social cohesion, development of human resources, equity,

social security and mapping employment issues and enhancing the quality of jobs in the

informal sector and empowering labour associations, in accordance with the principles of the

related ILO Conventions and the Community’s international commitments in these areas

promotion of the “decent work for all” agenda as a universal objective, including through global

and other multi-country initiatives to implement internationally agreed ILO core labour

standards, assessment of trade impact on decent work, sustained and adequate mechanisms for

fair financing, effective functioning – and wider coverage – of social protection systems;

support of initiatives to promote the improvement of working conditions as well as the

adjustment to trade liberalisation, including an employment dimension in development policies,

to help spread European social values;

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help promote the social dimension of globalisation and the EU’s experience.

iii) Youth and children:

combating all forms of child labour, trafficking of and violence against children and promotion

of policies taking into consideration youth’s and children’s particular vulnerability and

potentials, protection of their rights and interests, education, health and livelihoods, starting with

participation and empowerment;

enhancing developing countries’ attention and capacity to develop policies benefiting youth and

children;

advocacy for concrete strategies and interventions to address particular problems and challenges

affecting youth and children taking their best interests into account in all relevant action.

Participation by children and youth should be ensured

using its position as the principal donor of official development assistance among international

institutions to urge the multilateral donors to exert pressure for the framing of policies to

eliminate the worst forms of child labour, including hazardous work and to promote combating

all forms of child labour, trafficking of and violence against children and to promote the role of

children and youth as actors for development.

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Article 13

Environment and sustainable management of natural resources, including energy

(1) The objective of the thematic programme on environment and sustainable management of

natural resources, including water, and energy, shall be to integrate environmental protection

requirements into the Community's development and other external policies as well as to help

promote the Community’s environmental and energy policies abroad in the common interest of the

Community and partner countries and regions.

(2) To achieve the objective referred to in paragraph 1 and consistent with Article 11, the

programme shall include the following areas of activity:

a) working upstream in assisting developing countries to achieve the Millennium Development

Goal on environmental sustainability through capacity building for environmental integration in

developing countries, supporting civil society actors, local authorities and consultative platforms,

environmental monitoring and assessment, developing innovative approaches and twinning to share

experience and reinforce cooperation in these areas with key countries;

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b) promoting implementation of Community initiatives and agreed commitments at international

and regional level and/or of a transboundary character through support for sustainable development

including activities to address current and future climate change issues, biodiversity, desertification,

forests, land degradation, fisheries and marine resources, compliance with environmental standards

(for products and production processes), sound chemicals and wastes management, fight against

pollution, sustainable production and consumption and environment-related migration. This also

includes efforts to promote good forest governance and combat illegal logging, particularly through

FLEGT, and innovative activities for the conservation and sustainable management of forests with

active participation of local communities and forest dependent peoples.

With regard to water, the thematic programme will aim at establishing a framework for long term

protection water resources and promoting sustainable water use through support for policy

coordination.

c) better integration of environmental objectives through support for methodological work,

enhancing environmental expertise available for policy work, intergation and innovative actions of

the Community and promoting coherence;

d) strengthening environmental governance and supporting international policy development by

working for coherence between the environmental and the other pillars of international governance

for sustainable development and by assisting regional and international environmental monitoring

and assessment, providing additional support to the Secretariats of multilateral environmental

agreements, promoting effective compliance and enforcement measures for multilateral

environmental agreements including through capacity building, supporting international

organisations and processes, supporting civil society and policy think tanks, and improving the

efficiency of international negotiations;

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e) supporting sustainable energy options in partner countries and regions, through integration of

sustainable energy in development plans and strategies, developing institutional support and

technical assistance, creating a favourable legislative and policy framework to attract new business

and investors in renewable energy, enhancing the role of energy as a means to create income

generation for the poor, promoting innovative financing approaches, and encouraging regional

cooperation between governments, non-governmental organisations and the private sector in the

above areas. The Community’s strategic actions will give particular encouragement of the use of

renewable energy sources, increased energy efficiency, and the development of appropriate energy

regulatory framework in the countries and regions concerned and the replacement of especially

damaging energy sources by others which are less so.

Article 14

Non state actors and local authorities in development

(1) The objective of the thematic programme on non-state actors and local authorities in

development shall be to co-finance initiatives proposed and/or carried out by civil society

organisations and local authorities originating from the Community and partner countries in the area

of development. At least 85% of the funding foreseen under this thematic programme shall be

allocated to non-state actors. The programme shall be implemented in consistency with the

objective of this Regulation and to strengthen the capacity of non-state actors and local authorities

in the policy making process, so as to:

- promote an inclusive and empowered society in order to (i) benefit populations out of reach of

mainstream services and resources and excluded from policy making processes, (ii) strengthen the

capacity of civil society organisations and local authorities in partner countries, with a view to

facilitating their participation in defining and implementing poverty reduction and sustainable

development strategies, (iii) facilitate interaction between state and non-state actors in different

contexts and support an increased role for local authorities in decentralisation processes;

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- increase the level of awareness of the European citizen regarding development issues and mobilise

active public support in the Community and acceding countries for poverty reduction and

sustainable development strategies in partner countries, for fairer relations between developed and

developing countries, and reinforce civil society and local authority roles for these purposes;

- achieve more efficient cooperation, foster synergies and facilitate a structured dialogue between

civil society networks and local authorities' associations, within their organisations and with

Community institutions.

(2) To achieve the objective referred to in paragraph 1 and consistent with Article 11, the

programme shall include the following areas of activity:

a) interventions in developing countries and regions which (i) strengthen participatory development

and processes and inclusion of all actors, especially vulnerable and marginalised groups; (ii) support

capacity development processes of the actors concerned at country, regional or local level; (iii)

promote mutual understanding processes; (iv) facilitate citizens’ active engagement in development

processes and at strengthening their capacity to take action;

b) raising public awareness of development issues and promoting education for development in the

Community and acceding countries, to anchor development policy in European societies, to

mobilise greater public support in the Community and acceding countries for action against poverty

and for fairer relations between developed and developing countries, to raise awareness in the

Community to the issues and difficulties facing developing countries and their peoples, and to

promote the social dimension of globalisation;

c) coordination and communication between civil society and local authority networks, within their

organisations and between different types of stakeholders active in the European and global public

debate on development.

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(3) Support to local authorities in partner countries shall normally be carried out in the framework

of country strategy papers except where the latter do not provide appropriate support, particularly in

situations such as difficult partnerships, fragile states and post-conflict.

Support to local authorities and their associations will take account of their contributing capacity in

the calculation of Community co-financing.

Article 15

Food security

(1) The objective of the food security thematic programme shall be to improve food security in

favour of the poorest and most vulnerable people and contribute to achieving the Millennium

Development Goal on poverty and hunger, through a set of actions which ensure overall coherence,

complementarity and continuity of Community interventions, including in the area of the transition

from relief to development.

(2) To achieve the objective referred to in paragraph 1 and consistent with Article 11, the

programme shall include the following areas of activity:

a) contributing to the provision of international public goods, in particular pro-poor demand driven

research and technological innovation, as well as capacity development, scientific and technical

South-South and South-North cooperation and twinning;

b) supporting global, continental and regional programmes which notably i) support food security

information and early warning, ii) support food security in specific fields such as agriculture,

including formulation of regional agricultural policies and access to land, agricultural trade and

natural resource management, iii) promote, strengthen and complement national food security and

poverty reduction strategies in the short, medium and longer-term, and iv) support networking of

policy experts and non state actors to foster the global food security agenda;

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c) advocating and advancing the food security agenda. The Community shall continue to address

key food security issues in the international debate, and shall promote harmonisation, coherence and

alignment of policies and aid delivery modes of development partners and donors. In particular, the

promotion of the role of civil society in food security issues should be strengthened;

d) addressing food insecurity in exceptional situations of transition and state fragility, playing a

central role in linking relief, rehabilitation and development. The thematic programme shall (i)

support interventions to protect, maintain and recover productive and social assets vital for food

security, to facilitate economic integration and longer term rehabilitation and (ii)supporting crisis

prevention and management, to address vulnerability to shocks and to strengthen people’s

resilience;

e) developing innovative food security policies, strategies and approaches, and strengthening the

potential for their replication and South-South dissemination. Areas for intervention can include

agriculture, including land reform and land policy, sustainable management of and access to natural

resources, food security in relation to rural and local development, including infrastructure,

nutrition, demography and labour, migration, health and education. Consistency and

complementarity with other Community programmes in these areas shall be ensured.

Article 16

Migration and asylum

(1) The objective of the thematic programme of cooperation with third countries in the areas of

migration and asylum shall be to support them in their efforts to ensure better management of

migratory flows in all their dimensions. While the subject of the thematic programme shall be

primarily migration to the Community, it shall also take account of relevant south/south migratory

flows.

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(2) To achieve the objective referred to in paragraph 1 and consistent with Article 11, the

programme shall include the following areas of activity:

a) fostering the links between migration and development, especially by encouraging the

contribution of diasporas to the development of their country of origin and increasing the value of

migrants' return; mitigating brain drain and promoting the circular movement of skilled migrants;

facilitating financial transfers of migrants to their country of origin; supporting voluntary return and

reintegration of migrants and building capacities for migration management; fostering capacity

building efforts to help countries in the formulation of pro-development migration policies and in

their capacity to jointly manage migration flows;

b) promoting well-managed labour migration, in particular by informing about legal migration and

conditions of entry in and stay on the territory of the Member States of the Community; informing

about labour migration opportunities and needs in Member States and about qualifications of third

countries candidates for migration; supporting pre-departure training for candidates for legal

migration; and encouraging the definition and implementation of legislative frameworks for migrant

workers in third countries;

c) fighting illegal immigration and facilitating the readmission of illegal immigrants, including

between third countries, and in particular, fighting smuggling of and trafficking in human beings;

discouraging illegal immigration and raising awareness about the risks related to it; improving

capacities in the areas of border, visa and passport management, including the security of

documents and the introduction of biometric data, and detection of forged documents;

implementing effectively readmission agreements concluded with the Community and obligations

arising out of international agreements; and assisting third countries in the management of illegal

immigration and in the coordination of their policies;

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d) protecting migrants, including the most vulnerable such as women and children against

exploitation and exclusion through measures such as developing third countries’ legislation in the

field of migration; supporting integration and non-discrimination as well as measures to protect

migrants from racism and xenophobia; preventing and fighting smuggling of and trafficking in

human beings and any form of slavery;

e) promoting asylum and international protection, including through regional protection

programmes, in particular in strengthening institutional capacities; supporting the registration of

asylum applicants and refugees; promoting international standards and instruments on the

protection of refugees; supporting the improvement of reception conditions and local integration,

and working towards durable solutions.

Article 17

Sugar Protocol ACP countries

(1) Sugar Protocol ACP countries listed in Annex 3 affected by the Community sugar reform shall

benefit from accompanying measures. Community assistance to these countries shall aim at

supporting their adjustment process as they are faced with new conditions on the sugar market due

to the reform of the common organization of the market in sugar. Community assistance shall take

into account the countries’ adaptation strategies and shall pay specific attention to the following

areas of cooperation:

a) enhancing the competitiveness of the sugar and cane sector, where this is a sustainable process,

taking into account the situation of the different stakeholders in the chain;

b) promoting the economic diversification of sugar-dependent areas;

c) addressing broader impacts generated by the adaptation process, possibly related, but not

restricted, to employment and social services, land use and environmental restoration, the energy

sector, research and innovation and macro-economic stability.

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(2) Within the amount referred to in Annex 4, the Commission shall fix the maximum amount

available to each Sugar Protocol country for financing the actions referred to in paragraph 1 on the

basis of the needs of each country, related in particular to the impact of the reform of the sugar

sector in the country concerned and to the importance of the sugar sector to the economy. The

measurement of the allocation criteria shall be based on data of campaigns preceding 2004.

Further instructions regarding the allocation of the overall amount among beneficiaries shall be

defined by the Commission, acting in accordance with the procedure referred to in Article 35 (2).

TITLE III

PROGRAMMING AND ALLOCATION OF FUNDS

Article 18

General framework for programming and allocating funds

(1) In the case of geographic programmes, the Commission shall draw up a strategy paper and a

multiannual indicative programme for each partner country or region, as provided for in Article 19,

and adopt an annual action programme for each partner country or region, as provided for in

Article 2.

In the case of thematic programmes, the Commission shall draw up thematic strategy papers as

provided for in Article 20, and adopt action programmes as provided for in Article 22.

In exceptional circumstances, Community support may also take the form of special measures not

covered in strategy papers or multiannual indicative programmes, as provided for in Article 23.

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(2) The Commission shall determine the multiannual indicative allocations within each geographic

programme using standard, objective and transparent resource allocation criteria, based on the needs

and performance of the partner country or region concerned and bearing in mind the particular

difficulties faced by countries or regions in crisis, conflict or disaster prone, alongside the

specificity of the different programmes.

The needs criteria include population, income per capita and the extent of poverty, income

distribution and the level of social development. Performance criteria include political, economic

and social progress, progress in good governance and the effective use of aid, and in particular the

way a country uses scarce resources for development, beginning with its own resources.

(3) The Commission may include a specific financial allocation for the purpose of strengthening

cooperation between the EU’s outermost regions and neighbouring partner countries and regions.

Article 19

Geographic strategy papers and multiannual indicative programmes

(1) Preparation and implementation of strategy papers shall apply principles on aid effectiveness:

national ownership, partnership, coordination, harmonisation, alignment to recipient country or

regional systems and results orientation as laid down in Articles 3(5) to 3(8) of this Regulation.

(2) Strategy papers shall cover no more than the period of validity of this Regulation and aim to

provide a coherent framework for cooperation between the Community and the partner country or

region concerned, consistent with the overall purpose and scope, objectives and principles and

policy prescriptions and with Annex 4. Multiannual indicative programmes shall be based on

strategy papers.

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Strategy papers shall be reviewed at mid-term, or ad hoc if necessary, in accordance where

appropriate with the principles and procedures laid down in the partnership and cooperation

agreements concluded with the partner countries and regions;

(3) Strategy papers shall, in principle, be based on a dialogue with the partner country or region

which involves civil society and regional and local authorities, so as to ensure that the country or

region concerned takes sufficient ownership of the process and to encourage support for national

development strategies, particularly those for reducing poverty.

(4) Multiannual indicative programmes shall be drawn up on the basis of the strategy papers for

each partner country or region. They shall be the subject of an agreement with the country or region

where possible.

Multiannual indicative programmes shall set out the priority areas selected for Community

financing, the specific objectives, the expected results and the performance indicators.

The programmes shall also set out the indicative financial allocation, both overall and per priority

area; this may be given in the form of a range, where appropriate. These allocations shall be

consistent with the indicative allocations set out in Annex 4.

The programmes shall be adjusted where necessary, taking into account any mid-term or ad hoc

reviews of strategy papers.

A multiannual indicative allocation may be increased or decreased as a result of reviews,

particularly in the light of special needs such as those of a post-crisis situation, or where

performance has been exceptional or unsatisfactory.

(5) In circumstances such as crises, post conflict situations or threats to democracy, the rule of law,

human rights or fundamental freedoms, a special emergency procedure may be used to conduct an

ad hoc review of the country's or region's cooperation strategy. Such reviews may propose a country

or region strategy to make the transition to long-term cooperation and development.

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(6) In accordance with Article 2(7), the strategy shall ensure that measures taken under this

Regulation are consistent with, and avoid duplication with, measures eligible for funding under

other Community instruments, in particular Regulation (EC) [.] of the European Parliament and of

the Council of [.] establishing an Instrument for Stability and Council Regulation (EC) No 1257/96

of 20 June 1996 concerning humanitarian aid. Where partner countries or groups of partner

countries are directly involved in, or affected by, a crisis or post-crisis situation, multiannual

indicative programmes shall place special emphasis on stepping up coordination between relief,

rehabilitation and development to help them make the transition from an emergency situation to the

development phase; programmes for countries and regions regularly subject to natural disasters

shall provide for disaster preparedness and prevention and the management of the consequences of

such disasters.

(7) To foster regional cooperation, the Commission may decide, when adopting annual action

programmes of the type referred to in Article 22 or special measures referred to in Article 23 for

cooperation measures under this Chapter, that projects or programmes of a regional or cross border

nature carried out with countries listed in Annex 5 are eligible, in accordance with Art. 2 (4), 1st

subparagraph. Provisions may be made for this in the strategy papers and multiannual indicative

programmes referred to in Articles 19 and 20.

(8) The Commission and the Member States shall consult each other, as well as other donors and

development actors including representatives of civil society and regional and local authorities, at

an early stage of the programming process in order to promote complementarity among their

cooperation activities.

Article 20

Strategy papers for thematic programmes

(1) Thematic strategy papers shall cover no more than the period of validity of this Regulation.

They shall set out the Community's strategy for the theme concerned, the Community's priorities,

the international situation and the activities of the main partners. They shall be consistent with the

overall purpose and scope, objectives, principles and policy prescriptions and with Annex 4.

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Thematic strategy papers shall set out the priority areas selected for financing by the Community,

the specific objectives, the expected results and the performance indicators.

The thematic strategy papers shall also give the indicative financial allocation, both overall and per

priority area; this may be given in the form of a range, where appropriate.

Strategy papers shall be reviewed at mid-term, or ad hoc if necessary.

(2) The Commission and the Member States shall consult each other, as well as other donors and

development actors including representatives of civil society and local authorities, at an early stage

of the programming process in order to promote complementarity among their cooperation

activities.

(3) Resources and intervention priorities shall be laid down for participation in global initiatives.

Article 21

Adoption of strategy papers and multiannual indicative programmes

Strategy papers and multiannual indicative programmes referred to in Articles 19 and 20, and any

reviews thereof referred to in Article 19(1) and (3) and Article 20(1), as well as accompanying

measures referred to in Article 17, shall be adopted by the Commission in accordance with the

management procedure set out in Article 35(2).

TITLE III

IMPLEMENTATION

Article 22

Adoption of annual action programmes

(1) The Commission shall adopt annual action programmes based on the strategy papers and

multiannual indicative programmes referred to in Articles 19 and 20.

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Exceptionally, for instance where an action programme has not yet been adopted, the Commission

may, on the basis of the strategy papers and multiannual indicative programmes referred to in

Articles 5 and 6, adopt measures not provided for in an annual action programme under the same

rules and procedures as for action programmes.

(2) Annual action programmes shall specify the objectives pursued, the fields of intervention, the

expected results, the management procedures and total amount of financing planned. They shall

contain a description of the operations to be financed, an indication of the amounts allocated for

each operation and an indicative implementation timetable. Objectives shall be measurable and

have time bound benchmarks.

(3) The annual action programmes shall be adopted by the Commission in accordance with the

management procedure set out in Article 35(2).

(4) Appropriate environmental screening shall be undertaken at project level including

environmental impact assessment (EIA) for environmentally sensitive projects, in particular for

major new infrastructure. Where relevant, strategic environmental assessments (SEA) shall be used

in the implementation of sectoral programmes. The involvement of interested stakeholders in

environmental assessments and public access to the results shall be ensured.

Article 23

Adoption of special measures not provided for in the strategy papers or multiannual indicative

programmes

(1) In the event of unforeseen and duly justified needs or circumstances related to natural disasters,

civil strife or crises, and which cannot be funded under Regulation (EC) [.] of the European

Parliament and of the Council of [.] establishing an Instrument for Stability or Council Regulation

1257/96 of 20 June 1996 concerning humanitarian aid, the Commission shall adopt special

measures not provided for in the strategy papers or multiannual indicative programmes (hereinafter

referred to as “special measures”).

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Special measures may also be used to fund measures to ease the transition from emergency aid to

long-term development operations, including those to better prepare people to deal with recurring

crises.

(2) Special measures shall specify the objectives pursued, the intervention areas, the expected

results, the management procedures and the total amount of financing. They shall contain a

description of the operations to be financed, an indication of the amounts allocated for each

operation and the indicative timetable for their implementation. They shall include a definition of

the type of performance indicators that will have to be monitored when implementing the special

measures.

(3) Where the cost of such measures exceeds EUR 10 million, the Commission shall adopt them

under the management procedure referred to in Article 35(2). For special measures below EUR 10

million, the Commission shall send the measures to the Member States and the European

Parliament for information within one month of adopting its decision.

(4) The procedure laid down in Article 35(2) need not be used for amendments to special measures,

such as those making technical adjustments, extending the implementation period, reassigning

funds within the forecast budget, or increasing or reducing the size of the budget by less than 20%

of the initial budget, provided these amendments do not affect the initial objectives set out in the

Commission decision. Any such technical adjustments shall be communicated within one month to

the European Parliament and to the Member States.

Article 24

Eligibility

(1) Without prejudice to Article 31, the following, inter alia, shall be eligible for funding under this

Regulation for the purposes of implementing the annual action programmes referred to in Article 22

or special measures referred to in Article 23:

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a. partner countries and regions, and their institutions;

b. decentralised bodies in the partner countries, such as municipalities, provinces, departments

and regions;

c. joint bodies set up by the partner countries and regions with the Community;

d. international organisations, including regional organisations, UN bodies, departments and

missions, international and regional financial institutions and development banks, in so far

as they contribute to the objectives of this Regulation;

e. Community institutions and bodies, but only for the purposes of implementing support

measures referred to in Article 26;

f. European Union agencies;

g. The following entities and bodies of the Member States, partner countries and regions and

any other third country complying with the rules on access to the Community's external

assistance set out in Article 31, insofar as they are helping to achieve the objectives of this

Regulation:

i) public or parastatal bodies, local authorities and consortia or representative associations

thereof;

ii) companies, firms and other private organisations and businesses;

iii) financial institutions that grant, promote and finance private investment in partner

countries and regions;

iv) non-state actors as defined in paragraph 2;

v) natural persons.

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(2) The non-state, non-profit making actors eligible for financial support under this Regulation

operating on an independent and accountable basis, include: non governmental organisations,

organisations representing indigenous peoples, organisations representing national and/or ethnic

minorities, local traders' associations and citizens' groups, cooperatives, trade unions, organisations

representing economic and social interests, organisations fighting corruption and fraud and

promoting good governance, civil rights organisations and organisations fighting discrimination,

local organisations (including networks) involved in decentralised regional cooperation and

integration, consumer organisations, women's and youth organisations, teaching, cultural, research

and scientific organisations, universities, churches and religious associations and communities, the

media and any non governmental associations and independent foundations, including independent

political foundations, likely to contribute to the implementation of the objectives of this Regulation.

Article 25

Types of financing

(1) Community financing may take the following forms:

a. projects and programmes;

b. budget support if the partner country's management of public spending is sufficiently

transparent, reliable and effective, and where it has put in place properly formulated

sectoral or macroeconomic policies positively assessed by its principal donors; including,

where relevant, the international financial institutions. The Commission shall consistently

use an approach based on results and performance indicators and shall clearly define and

monitor its conditionality and support efforts of partner countries to develop parliamentary

control and audit capacities and to increase transparency and public access to information.

Disbursement of budgetary support shall be conditional on satisfactory progress towards

achieving the objectives in terms of impact and results;

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c. sectoral support;

d. in exceptional cases, sectoral and general import programmes, which may take the form of

(i) sectoral import programmes in kind, (ii) sectoral import programmes providing foreign

exchange to finance imports for the sector in question or (iii) general import programmes

providing foreign exchange to finance general imports of a wide range of products;

e. funds made available to the European Investment Bank or other financial intermediaries on

the basis of Commission programmes for the purpose of providing loans (in particular to

support investment in and development of the private sector), risk capital (in the form of

subordinated or conditional loans) or other temporary minority holdings in business

capital, and contributions to guarantee funds in accordance with Article 32, to the extent

that the financial risk of the Community is limited to these funds;

f. interest-rate subsidies, especially for environment related loans;

g. debt-relief, under internationally agreed debt relief programmes;

h. grants to finance projects submitted by entities of the type listed in Article 24(1)(b), (c),

(d), (f) and (g)(i) to (v);

i. grants to finance the operating costs of entities of the type listed in Article 24(1)(b), (c),

(d), (f) and (g)(i), (iii) and (iv);

j. funding for twinning programmes between public institutions, local authorities, national

public bodies or private-law entities entrusted with public service tasks of a Member State

and those of a partner country or region;

k. contributions to international funds, such as those managed by international or regional

organisations;

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l. contributions to national funds set up by partner countries and regions to attract joint

financing from a number of donors, or contributions to funds set up by one or more donors

for the purpose of the joint implementation of projects;

m. capital investments in international financial institutions and regional development banks;

n. human and material resources required for effective administration and supervision of

projects and programmes by partner countries and regions.

(2) Community assistance shall not be used for paying taxes, duties or charges in beneficiary

countries.

Article 26

Support measures

(1) Community financing may cover expenditure associated with the preparation, follow up,

monitoring, audit and evaluation activities directly necessary for the implementation of this

Regulation and the achievement of its objectives, e.g. studies, meetings, information, awareness-

raising, training and publication activities, expenditure associated with computer networks for the

exchange of information, and any other administrative or technical assistance expenditure necessary

for the management of the programme. It shall also cover expenditure at Commission delegations

on the administrative support needed to manage operations financed under this Regulation.

(2) These support measures are not necessarily covered by multiannual indicative programmes and

may therefore be financed outside the scope of strategy papers and multiannual indicative

programmes. However, they may also be financed under multiannual indicative programmes.

The Commission shall adopt support measures not covered by the multiannual indicative

programmes in accordance with Article 23 (3) and (4).

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Article 27

Cofinancing

(1) Measures shall be eligible for co-financing from the following, inter alia:

a. Member States and their regional and local authorities, and in particular their public and

parastatal agencies;

b. other donor countries, and in particular their public and parastatal agencies;

c. international organisations, including regional organisations, and in particular international

and regional financial institutions;

d. companies, firms, other private organisations and businesses, and other non-state actors;

e. partner countries and regions in receipt of funding.

(2) In the case of parallel co-financing, the project or programme is split into a number of clearly

identifiable components, which are each financed by the different partners providing co-financing

in such a way that the end-use of the financing can always be identified.

In the case of joint co-financing, the total cost of a project or programme is shared between the

partners providing the co-financing and the resources are pooled in such a way that it is no longer

possible to identify the source of financing for any given activity undertaken as part of the project

or programme.

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(3) In the case of joint co-financing, the Commission may receive and manage funds on behalf of

the bodies referred to in paragraph 1(a), (b) and (c) for the purpose of implementing joint measures.

Such funds shall be treated as assigned revenue, in accordance with Article 18 of Council

Regulation (EC, Euratom) No 1605/2002.

Article 28

Management procedures

(1) The measures financed under this Regulation shall be implemented in accordance with Council

Regulation (EC, Euratom) No 1605/2002 and any revision thereof.

(2) In the event of co-financing and in other duly justified cases, the Commission may entrust tasks

of public authority, and in particular budget implementation tasks, to the bodies referred to in

Article 54(2)(c) of Council Regulation (EC, Euratom) No 1605/2002.

(3) In the case of decentralised management, the Commission may decide to use the procurement or

grant procedures of the beneficiary partner country or region after verifying that they respect the

relevant criteria of Council Regulation (EC, Euratom) N° 1605/2002 , provided:

the procedures of the beneficiary partner country or region satisfy the principles of

transparency, proportionality, equal treatment and non-discrimination and prevent any

conflict of interests;

the beneficiary partner country or region undertakes to check regularly that the operations

financed by the Community budget have been properly implemented, to take appropriate

measures to prevent irregularities and fraud, and, if necessary, to take legal action to recover

unduly paid funds.

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Article 29

Budget commitments

(1) Budget commitments shall be made on the basis of decisions taken by the Commission in

accordance with Articles 8(1), 9(1) and 12(2).

(2) Community financing may take one of the following legal forms, inter alia:

–

financing agreements;

grant agreements;

procurement contracts;

employment contracts.

Article 30

Protecting the Community’s financial interests

(1) Any agreements resulting from this Regulation shall contain provisions ensuring the protection

of the Community’s financial interests, in particular with respect to irregularities, fraud, corruption

and any other illegal activity, in accordance with Council Regulations (EC, Euratom) Nos

2988/1995, 2185/1996 and (EC) 1073/1999.

(2) Agreements shall expressly entitle the Commission and the Court of Auditors to perform audits,

including document audits or on the spot audits of any contractor or subcontractor who has received

Community funds. They shall also expressly authorise the Commission to carry out on-the-spot

checks and inspections as provided for in Regulation (EC, Euratom) No 2185/1996.

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(3) All contracts resulting from the implementation of assistance shall ensure the rights of the

Commission and the Court of Auditors under paragraph 2 during and after the performance of the

contracts.

Article 31

Public procurement procedures, grant award procedures, rules of origin

(1) Participation in the award of procurement or grant contracts financed under this Regulation shall

be open to all natural persons who are nationals of or legal persons who are established in a

Member State of the Community, in an official candidate country as recognised by the European

Community or in a Member State of the European Economic Area.

Participation in the award of procurement or grant contracts financed under a thematic programme

as defined in Articles 11 to 16 shall be open to all natural persons who are nationals of or legal

persons who are established in a developing country, as specified by the OECD Development

Assistance Committee and in Annex 2, in addition to natural or legal persons eligible by virtue of

the thematic programme. The Commission shall publish and update Annex 2 in accordance with

regular reviews of the list of aid recipients of the OECD Development Assistance Committee and

inform the Council thereof.

Participation in the award of procurement or grant contracts financed under a geographic

programme as defined in Articles 5 to 10 shall be open to all natural persons who are nationals of or

legal persons who are established in any developing country eligible by virtue of Annex 1 of this

regulation.

(2) Participation in the award of procurement or grant contracts financed under this regulation shall

also be open to all natural persons who are nationals of or legal persons who are established in any

country other than those referred in paragraph 1, where reciprocal access to their external assistance

has been established.

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Reciprocal access shall be granted whenever a country grants eligibility on equal terms to the

Member States and to the recipient country concerned.

Reciprocal access shall be established by means of a specific decision concerning a given country

or a given regional group of countries. Such a decision shall be adopted in accordance with the

procedure laid down in Article 35 (2) and shall be in force for a minimum period of one year.

The granting of reciprocal access shall be based on a comparison between the Community and other

donors and shall proceed at sectoral level, as defined by the OECD Development Assistance

Committee categories, or at country level, whether it be a donor or a recipient country. The decision

to grant such reciprocity to a donor country shall be based on the transparency, consistency and

proportionality of the aid provided by that donor, including its qualitative and quantitative nature.

The recipient countries shall be consulted as part of the procedure described in this paragraph.

Reciprocal access in the least developed countries as defined by the OECD Development

Assistance Committee shall be automatically granted to OECD Development Assistance Committee

members.

(3) Participation in the award of procurement or grant contracts financed under a Community

instrument shall be open to international organisations.

(4) The above is without prejudice to the participation of categories of eligible organisations by

nature or by localization in regard to the objectives of the action to carry out.

(5) Experts may be of any nationality. This is without prejudice to the qualitative and financial

requirements set out in the Community’s procurement rules.

(6) All supplies and materials purchased under a contract financed under this regulation must

originate from the Community or from an eligible country as defined in Paragraph 1 and 2. The

term "origin" for the purpose of this Regulation is defined in the relevant Community legislation on

rules of origin for customs purposes.

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(7) The Commission may, in duly substantiated cases, authorise the participation of natural and

legal persons from countries having traditional economic, trade or geographical links with

neighbouring countries or other third countries, and the use of supplies and materials of different

origin.

(8) The Commission may, in duly substantiated exceptional cases, authorise the participation of

natural persons who are nationals of or legal persons who are established in other countries than

those referred to in paragraph 1 and 2, or the purchase of supplies and materials of different origins

from that set out in paragraph 6.

Derogations may be justified on the basis of the unavailability of products and services in the

markets of the countries concerned, for reasons of extreme urgency, or if the eligibility rules would

make the realisation of a project, a programme or an action impossible or exceedingly difficult.

(9) Whenever Community funding covers an operation implemented through an international

organisation, participation in the appropriate contractual procedures shall be open to all natural or

legal persons who are eligible pursuant to Paragraph 1 and 2 as well as to all natural or legal

persons who are eligible pursuant to the rules of that organisation, care being taken to ensure that

equal treatment is afforded to all donors. The same rules shall apply in respect of supplies, materials

and experts.

Whenever Community funding covers an operation co-financed with a third country, subject to

reciprocity as defined in Paragraph 2, or with a regional organisation, or with a Member State,

participation in the appropriate contractual procedures shall be open to all natural or legal persons

who are eligible pursuant to Paragraph 1, 2 and 3 as well as to all natural or legal persons who are

eligible under the rules of such third country, regional organisation or Member State. The same

rules shall apply in respect of supplies, materials and experts.

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(10) For the purposes of aid channelled directly through non state actors under the thematic

programme defined in Article 14, the provisions of Paragraph 1 shall not apply to the eligibility

criteria established for the selection of grant beneficiaries.

Beneficiaries of these grants shall abide by the rules established in this Article where the

implementation of aid requires the award of procurement contracts.

(11) In order to accelerate the eradication of poverty through the promotion of local capacities,

markets and purchases, special consideration shall be given to local and regional procurement in

partner countries.

Tenderers who have been awarded contracts shall respect internationally agreed core labour

standards, e.g. the ILO core labour standards, conventions on freedom of association and collective

bargaining, elimination of forced and compulsory labour, elimination of discrimination in respect of

employment and occupation, and the abolition of child labour.

Access by developing countries to Community assistance shall be rendered possible by all such

technical assistance as is deemed appropriate.

Article 32

Funds made available to the European Investment Bank or other financial intermediaries

(1) The funds referred to in Article 25 (1) (e) shall be managed by financial intermediaries, the

European Investment Bank or any other bank or organisation with the capacity to manage such

funds.

(2) The Commission must adopt implementing provisions for paragraph 1 on a case-by-case basis to

cover risk sharing, the remuneration of the intermediary responsible for implementation, the use and

recovery of profits on funds, and the closure of the operation.

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Article 33

Evaluation

(1) The Commission shall regularly monitor and review its programmes, and evaluate the results of

the implementation of geographical and thematic policies and programmes, and of sectoral policies

and the effectiveness of programming, where appropriate by means of independent external

evaluations, in order to ascertain whether the objectives have been met and enable it to formulate

recommendations with a view to improving future operations. Proposals by the European

Parliament or the Council for independent external evaluations will be taken into due account.

Particular attention shall be given to social sectors and to progress made towards achieving the

MDGs.

(2) The Commission shall send its evaluation reports to the European Parliament and to the

Committee referred to in Article 35 for information. Member States may request to discuss specific

evaluations in the Committee referred to in Article 35(3). The results shall feed back into

programme design and resource allocation.

(3) The Commission shall associate all relevant stakeholders, including non state-actors and local

authorities, in the evaluation phase of the Community assistance provided under this Regulation.

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TITLE IV

FINAL PROVISIONS

Article 34

Annual report

(1) The Commission shall examine the progress made in implementing the measures taken under

this Regulation and shall submit to the European Parliament and the Council an annual report on the

implementation and results and, as far as possible, main outcomes and impacts of the assistance.

This report shall also be submitted to the European Economic and Social Committee and to the

Committee of the Regions.

(2) The annual report shall contain information relating to the previous year on the measures

financed, the results of monitoring and evaluation exercises, the involvement of the relevant

partners, and the implementation of budget commitments and payments, broken down by country,

region and cooperation sector. It shall assess the results of the assistance, using as far as possible,

specific and measurable indicators of its role in meeting the objectives of this Regulation. Particular

attention shall be given to social sectors and to progress made towards achieving the Millennium

Development Goals.

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Article 35

Committee

(1) The Commission shall be assisted by a committee.

(2) Where reference is made to this paragraph, Articles 4 and 7 of Decision 1999/468/EC shall

apply, in accordance with Article 8 of that Decision. The period provided for in Article 4(3) of the

Decision shall be 30 days.

(3) Where reference is made to this paragraph, Articles 3 and 7 of Decision 1999/468/EC shall

apply, in accordance with Article 8 of that Decision.

(4) The committee shall adopt its rules of procedure.

(5) An observer from the European Investment Bank shall take part in the committee's proceedings,

with regard to questions concerning the Bank.

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Article 36

Participation by a third country not eligible under this regulation

Without prejudice to Article 3(5), to ensure the coherence and effectiveness of Community

assistance, the Commission may decide when adopting action programmes referred to in Article 22

or the special measures referred to in Article 23 that countries, territories and regions eligible for

Community assistance under Council Regulation (EC) No [.] of [ ] establishing an Instrument for

Pre Accession (IPA) or Regulation No [.] of the European Parliament and of the Council of [.]

laying down general principles establishing a European Neighbourhood and Partnership Instrument

(ENPI) and the European Development Fund are eligible for measures under this Regulation where

the geographical or thematic project or programme to be implemented is of a global, regional or

cross border nature. Provision may be made for this method of financing in the strategy papers and

multiannual indicative programmes referred to in Articles 19 and 20. The provisions of Article 10

concerning eligibility and the provisions of Article 31 concerning participation in public

procurement and grant award procedures and rules of origin shall be adapted to allow the countries,

territories and regions concerned to take part.

Article 37

Suspension of assistance

Without prejudice to the provisions on suspension of aid in partnership and cooperation agreements

with partner countries and regions, where a partner country fails to observe the principles referred to

in Article 3(1), and where consultations with the partner country do not lead to a solution acceptable

to both parties, or if consultations are refused or in cases of special urgency, the Council, acting by

a qualified majority on a proposal from the Commission, may take appropriate measures in respect

of any assistance granted to the partner country under this Regulation. Such measures may include

full or partial suspension of assistance.

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Article 38

Financial provisions

(1) The financial reference amount for implementation of this Regulation over the period 2007-

2013 is € 16.897 million

2) The indicative amounts allocated to each programme referred to in Articles 5 to 10 and 11 to 16

and 17 are laid down in Annex 4. These amounts are established for the period 2007-2013.

(3) Annual appropriations shall be authorised by the budgetary authority within the limits of the

financial perspectives.

(4) An indicative amount of € 465 million has been included in the total amount for thematic

programmes to finance activities that benefit the ENPI countries.

Article 39

(1) The following Regulations shall be replaced by this instrument at the date of its entry into force:

(a) Regulation (EC) No 2110/2005 of the European Parliament and of the Council of

14 December 2005 on access to Community external assistance

(b) Regulation (EC) No 806/2004 of the European Parliament and of the Council of 21 April 2004

on promoting gender equality in development cooperation (a) Regulation No 1568/2003 of the

European Parliament and of the Council of 15 July 2003 on aid to fight poverty diseases

(HIV/AIDS, tuberculosis and malaria) in developing countries

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establishing a programme for financial and technical assistance to third countries in the areas of

migration and asylum (AENEAS)

(d) Regulation No 1567/2003 of the European Parliament and of the Council of 15 July 2003 on aid

for policies and actions on reproductive and sexual health and rights in developing countries

(e) Regulation (EC) No 2130/2001 of the European Parliament and of the Council of

29 October 2001 on operations to aid uprooted people in Asia and Latin American developing

countries

(f) Regulation (EC) No 2493/2000 of the European Parliament and of the Council of

7 November 2000 on measures to promote the full integration of the environmental dimension in

the development process of developing countries

(g) Regulation (EC) No 2494/2000 of the European Parliament and of the Council of

7 November 2000 on measures to promote the conservation and sustainable management of tropical

forests and other forests in developing countries

(h) Regulation (EC) No 1726/2000 of the European Parliament and of the Council of 29 June 2000

on development cooperation with South Africa

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(i) Council Regulation (EC) No 1659/98 of 17 July 1998 on decentralised cooperation, as amended

and extended by Regulations 995/2002 and 625/2004

(j) Council Regulation (EC) No 1658/98 of 17 July 1998 on cofinancing operations with European

non-governmental organisations (NGOs) in fields of interest to the developing countries

(k) Council Regulation (EC) N° 1292/96 of 27 June 1996 on food-aid policy and food-aid

management and special operations in support of food security, as amended by Regulation (EC) No

1726/2001 of the European Parliament and of the Council of 23 July 2001 amending Article 21 of

Council Regulation (EC) No 1292/96 on food aid policy and food aid management and special

operations in support of food security

(l) Council Regulation (EEC) No 443/92 of 25 February 1992 (ALA) on financial and technical

assistance to, and economic cooperation with, the developing countries in Asia and Latin America.

(2) The repealed Regulations shall continue to apply for legal acts and commitments of pre 2007

budget years. Any reference to the repealed Regulations shall be deemed to be a reference to this

Regulation.

Article 40

Review

Not later than 31 December 2009, the Commission shall submit to the European Parliament and the

Council a report evaluating the implementation of this Regulation in the first three years with, if

appropriate, a legislative proposal introducing the necessary modifications, including the financial

breakdown referred to in Annex 4.

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Article 41

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official

Journal of the European Union. It shall apply from 1 January 2007 to 31 December 2013.

This Regulation and Annexes, shall be binding in its entirety and directly applicable in all Member

States.

Done at Brussels, […]

For the European Parliament

The President

For the Council

The President

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Annex 1

Countries eligible to geographic and thematic programmes

Latin America

10.

11.

12.

13.

14.

15.

16.

17.

18.

Asia

19.

20.

21.

22.

23.

24.

25.

26.

Afghanistan

Bangladesh

Bhutan

Cambodia

China

India

Indonesia

Korea Democratic Republic

Argentina

Bolivia

Brazil

Chile

Colombia

Costa Rica

Cuba,

Ecuador

El Salvador

Guatemala

Honduras

Mexico

Nicaragua

Panama

Paraguay

Peru

Uruguay

Venezuela

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27.

28.

29.

30.

31.

32.

33.

34.

35.

36.

37.

Laos

Malaysia

Maldives

Mongolia

Myanmar/Burma

Nepal

Pakistan

Philippines

Sri Lanka

Thailand

Viet Nam

Central Asia

38.

39.

40.

41.

42.

Kazakhstan

Kyrgyz Republic

Tajikistan

Turkmenistan

Uzbekistan

Middle East

43.

44.

45.

46.

47.

Iran

Iraq

Oman

Saudi Arabia

Yemen

South Africa

48.

South Africa

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Annex 2

DAC List of ODA Recipients

Effective from 2006 for reporting on 2005, 2006 and 2007

Least Developed

Countries

Other Low Income

Countries

(per capita GNI <

$825 in 2004)

Lower Middle Income

Countries and

Territories

(per capita GNI $826-

$3 255 in 2004)

Upper Middle Income

Countries and

Territories

(per capita GNI $3

256-$10 065 in 2004)

▪ Anguilla

Antigua and Barbuda

Argentina

Barbados

Belize

Botswana

Chile

Cook Islands

Costa Rica

Croatia

Dominica

Gabon

Grenada

Lebanon

Libya

Malaysia

Mauritius

▪ Mayotte

Mexico

▪ Montserrat

Nauru

Oman

Palau

Afghanistan

Angola

Bangladesh

Benin

Bhutan

Burkina Faso

Burundi

Cambodia

Cape Verde

Central African Rep.

Chad

Comoros

Congo, Dem. Rep.

Djibouti

Equatorial Guinea

Eritrea

Ethiopia

Gambia

Guinea

Guinea-Bissau

Haiti

Kiribati

Laos

Cameroon

Congo, Rep.

Côte d'Ivoire

Ghana

India

Kenya

Korea, Dem.Rep.

Kyrgyz Rep.

Moldova

Mongolia

Nicaragua

Nigeria

Pakistan

Papua New Guinea

Tajikistan

Uzbekistan

Viet Nam

Zimbabwe

Albania

Algeria

Armenia

Azerbaijan

Belarus

Bolivia

Bosnia and

Herzegovina

Brazil

China

Colombia

Cuba

Dominican Republic

Ecuador

Egypt

El Salvador

Fiji

Georgia

Guatemala

Guyana

Honduras

Indonesia

Iran

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Lesotho

Liberia

Madagascar

Malawi

Maldives

Mali

Mauritania

Mozambique

Myanmar

Nepal

Niger

Rwanda

Samoa

Sao Tome & Principe

Senegal

Sierra Leone

Solomon Islands

Somalia

Sudan

Tanzania

Timor-Leste

Togo

Tuvalu

Uganda

Vanuatu

Yemen

Zambia

Iraq

Jamaica

Jordan

Kazakhstan

Macedonia, Former

Yugoslav

Republic of

Marshall Islands

Micronesia,Fed.

States

Morocco

Namibia

Niue

Palestinian Adm.

Areas

Paraguay

Peru

Philippines

Serbia & Montenegro

Sri Lanka

Suriname

Swaziland

Syria

Thailand

▪ Tokelau

Tonga

Tunisia

Turkmenistan

Ukraine

▪ Wallis & Futuna

Panama

Saudi Arabia (1)

Seychelles

South Africa

▪ St. Helena

St. Kitts-Nevis

St. Lucia

St. Vincent &

Grenadines

Trinidad & Tobago

Turkey

▪ Turks & Caicos

Islands

Uruguay

Venezuela

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▪ Territory.

(1) Saudi Arabia passed the high income country threshold in 2004. In accordance with the DAC

rules for revision of this List,

it will graduate from the List in 2008 if it remains a high income country in 2005 and 2006. Its net

ODA receipts from DAC Members

were USD 9.9 million in 2003 and USD 9.0 million (preliminary) in 2004.

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Annex 3

ACP Sugar Protocol countries

10.

11.

12.

13.

14.

15.

16.

17.

18.

Barbados

Belize

Guyana

Jamaica

Saint Kitts and Nevis

Trinidad and Tobago

Fiji

Republic of Congo

Côte d’Ivoire

Kenya

Madagascar

Malawi

Mauritius

Mozambique

Swaziland

Tanzania

Zambia

Zimbabwe

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Annex 4

Indicative financial allocations for the period 2007-2013 (million Euros)

Total

16.897

Geographic programmes:

Latin America

Asia

Central Asia

South Africa

Middle East

10.057

2.690

5.187

719

980

481

Thematic programmes:

5.596

Investing in people

Environment and sustainable

management of natural resources

Non-state actors and local

authorities in development

Food security

Migration and asylum

1.060

804

1.639

1.709

384

Sugar Protocol ACP countries:

1.244

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Annex 5

Non developing countries and territories

10.

11.

12.

13.

14.

15.

Australia

Bahrain

Brunei

Canada

Chinese Taipei

Hong Kong

Japan

Korea

Macao

New Zealand

Kuwait

Qatar

Singapore

United Arab Emirates

United States of America

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Declarations to be entered in the minutes of the Council formally adopting the common position of

the Council

Commission Declaration concerning Art. 5

The Commission reaffirms that the eradication of poverty and the pursuit of the Millennium

Development Goals are at the core of the primary objective of its development assistance.

It recalls that it reached an understanding in 2002 with the European Parliament on a benchmark of

35% of assistance to developing countries to be allocated to social infrastructure and services,

recognising that the EU contribution must be seen as part of the overall donor support to the social

sectors and that a degree of flexibility must be the norm.

Since then, as a result of translation of development policy into country programmes and

subsequently into commitments, support for social infrastructure has risen to more than 35%, and

the European Parliament has been fully informed of progress. Though this specific benchmark has

been overtaken, the Commission will continue to report annually on these figures.

Pursuant to the request of the European Parliament, the Commission now commits to the following

objectives, while stressing that they have to be pursued in the setting of the principles of aid

effectiveness, in particular the partnership with recipient countries, their ownership and the

complementarity with other donors, as set out in the “European Consensus on Development”

adopted jointly by the Council and the representatives of the governments of the member States

meeting within the Council, the European Parliament and the Commission on 20 December 2005.

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First, the Commission commits to prioritise basic health and education, and social cohesion as a

whole in its programming and implementation role for country programmes covered by the DCI,

and to include an MDG profile in the programming documents. In the dialogue with partner

countries, the Commission will also encourage them to prioritise social sectors in their own

development strategies.

Moreover, the Commission will endeavour to ensure that a benchmark of 20% of its allocated

assistance under country programmes covered by the DCI will be dedicated, by the year of review

2009, to basic and secondary education and basic health, through project, programme or budget

support linked to these sectors, taking an average across all geographical areas and recognising that

a degree of flexibility must be the norm, such as exceptional assistance.

Finally, to ensure the accountability of the Commission towards these objectives, it commits to

increased monitoring, evaluation and reporting, whereby particular attention shall be given to social

sectors and to progress made towards achieving the Millennium Development Goals.

Commission Declaration on Sugar Art. 17:

It has been decided to assist the sugar Protocol ACP countries to adapt to the new conditions which

will follow the reform of the EU common agricultural policy for sugar.

As Sugar Protocol countries are in a very diverse situation, the scheme will support country specific

adaptation strategies.

The commitment and spending schedule will follow the gradual achievement of these strategies and

be consistent with the transitional nature of the scheme due to end in 2013.

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Joint Council and Commission Declaration to Art. 28(2) on the transfer of implementation tasks:

In relation to budget implementation tasks, the Commission has made a proposal for the revision of

Council Regulation No 1605/2002, which will be adopted by the Council, establishing the

conditions required for entrusting such budget implementation tasks to bodies referred to in Article

27 (1)a), b), c) of this Regulation.

Commission Declaration on committees Art. 35:

Meetings will be organised in such a way that opinions to be delivered and exchanges of view held

are pooled according to each geographic (Latin America, Asia, Middle East, Central Asia, South

Africa) and thematic (migration, non state actors, environment, investing in people, food security)

programme.

Commission declaration on indicative amount for ENPI thematic programmes Art. 38 (4):

La Commission s'engage, lors de la programmation des programmes thématiques, à tenir compte de

la ventilation géographique initialement proposée par la Commission entre pays éligibles sous

l'instrument européen de voisinage et de partenariat [ENPI], d'un côté, et l'instrument de

coopération au développement [DCI] de l'autre.

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