European Neighbourhood Policy: Funding

Until 31 December 2006, EC assistance to the countries of the European Neighbourhood Policy was provided under various geographical programmes including TACIS (for our eastern neighbours and Russia) and MEDA (for our southern Mediterranean neighbours), as well as thematic programmes such as EIDHR  (European Initiative for Democracy and Human Rights). For the budgetary period (2000-2006), the funds available were approximately €5.3 billion for MEDA and €3.1 billion for TACIS, as well as approximately €2 billion in European Investment Bank lending for MEDA beneficiary countries and €500 million for TACIS beneficiary countries.

From 1 January 2007 onwards, as part of the reform of EC assistance instruments, the MEDA and TACIS and various other programmes have been replaced by a single instrument – the European Neighbourhood and Partnership Instrument [113 KB]  (ENPI). This is a much more flexible, policy-driven instrument. It is designed to target sustainable development and approximation to EU policies and standards - supporting the agreed priorities in the ENP Action Plans (as well as the Strategic Partnership with Russia, which was previously also covered by the TACIS programme).  For the next budgetary period (2007-2013), approximately €12 billion in EC funding are available to support these partners' reforms, an increase of 32% in real terms. Funds allocated to individual country programmes [21 KB] depend on their needs and absorption capacity as well as their implementation of agreed reforms. An important aspect of the ENP, and the strategic partnership with Russia, is to markedly improve cross-border cooperation with countries along the EU’s external land and maritime borders, thus giving substance to our aim of avoiding new dividing lines. The ENPI therefore supports cross-border contacts and co-operation between local and regional actors and civil society. The 15 ENPI cross-border cooperation (CBC) programmes, identified on the external borders of the EU,are receiving financial support of €1.18 billion for the period 2007-2013. The programmes are getting underway at the end of 2007/beginning of 2008 The Commission approach to CBC can be found in the ENPI Cross-Border Cooperation Strategy Paper.

New forms of technical assistance have been extended to ENP partners. Legislative approximation, regulatory convergence and institution-building are being supported through mechanisms which proved successful in transition countries that are now EU Member States i.e. targeted expert assistance (Technical Assistance and Information Exchange - TAIEX), long-term twinning  arrangements with EU Member States’ administrations – national, regional or local – and participation in relevant Community programmes and agencies.

Another new instrument is the Governance Facility, endowed indicatively with 50 M€ annually, which provides additional support to the partner country or countries that have made most progress in implementing the governance priorities agreed in their Action Plans. In 2007, the first Governance Facility allocations were made to Morocco and Ukraine.

Finally, the Neighbourhood Investment Facility was established at the end of 2007 and will start to support lending to ENP partners in 2008. The Commission will allocate to the Facility an amount of €700m (2007-2013) and asked Member States to gradually match the Community contribution, to maximise the leverage of loans. The Facility will fund projects of common interest focussing primarily on energy, environment and transport.

Under all these instruments, EU assistance priorities are identified, together with the countries concerned and other relevant actors, in general Country Strategy Papers (CSPs) covering 7 year periods, National Indicative Programmes (NIPs) covering 3 years and detailed annual programmes. The priorities identified in the Action Plans, agreed with the authorities of the country, are also useful in guiding the programming of assistance programmes – including for other donors and IFIs. Tenders under EC assistance programmes are open to companies from the 27 EU Member States, from the candidate (1) and potential candidate countries (2) and from ENP partners themselves and are awarded in line with standard EC procurement rules.

1 Croatia, Turkey and the former Yugoslav Republic of Macedonia
2  Albania, Bosnia and Herzegovina, Montenegro and Serbia including Kosovo