Instruments & Aid

modalities in External
Actions

DG NEAR
Christophe Masson

6/12/2016

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 Envelopes in current prices 2014-2020
Pre-accession Instrument 11,699 M€
European Neighbourhood Instrument 15,433 M€
Development Cooperation Instrument 19,662 M€
Partnership Instrument (ex ICI and ICI+) 955 M€
Instrument contributing to Stability and Peace (ex-IfS) 2,339 M€
CFSP 2,339 M€
European Instrument for Democracy & Human Rights 1,333 M€
Instrument for Nuclear Safety Cooperation 225 M€
Humanitarian Aid 6,622 M€
Others (MFA, Guarantee Fund, Civil protection, etc...) 3,372 M€
Margin 2,285 M€
Outside budget: 11th European Development Fund 30,506 M€
Enlargement Countries

• Candidate countries:
Serbia, Montenegro, Turkey, the Former Yugoslav Republic
of Macedonia, Albania.

• Potential candidates: Bosnia and Herzegovina and

Kosovo*

• Processes:
- Economic Reform Programmes – all countries
- Financial support (IPA) – all countries
Today we have the largest young generation in human history.
There are 1.8 billion young people living on the planet
- with approximately 85 percent of them living in developing
and emerging economies and in fragile states.
Cycle of operations

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Steps in the cycle of operations
 Programming – Analyse the situation and existing policies/strategies
to identify big issues that international cooperation could address
 Identification – Identify ideas of project and screen them to further
analyse them
 Formulation – Translating the concept of project into operational
plans.
 Financing – The Donor decides to finance the project and agrees on
necessary arrangements with the partner country
 Implementation – Mobilise the budget and execute the project
 Evaluation – Asses project results and draws lessons for the future

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Filtering process
PPCM stage level of focus
Programming Sector /
country,
policy/
strategic
framework

Identification Geographic area,

target group,
possible alternatives

Formulation Detailed concept 7

 Aid modalities
Project approach Budget support Blending

Sector
Call for reform
Tender
proposals contract
(SRC)

Service
Grants Works
contract

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A shift in practices

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 Flows of Budget Support transfer

Partner’s Country Central Bank

EC external Tax & non

Assistance € Foreign
Treasury tax
Exchange
Account revenues
Reserves €

Conditions for
disbursement:
(i) General Conditions Budget implementation through
(ii) Specific Conditions partner country’s Public Financial
Management System 10

Development economics 10
 Definition of Budget Support
•- EU BS guidelines: Transfer of financial resources of an
external financing agency to the National Treasury of a
partner country, following the respect by the latter of agreed
conditions for payment;
 It is not a blank cheque
 Eligibility criteria + disbursement conditions
•- The resources transferred are:
 part of the global resources of the partner country
 used in accordance with the public financial
management system

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 Budget support: Four pillars
•Backward looking • Budged Allocation
(performance)
•Forward looking (Risk
• Fiscal Space
management) • Eligibility criteria

Policy Financial
dialogue Support

Capacity
Results
Developt

•Performance •Effective institutions

Indicators •Process: PFM,..

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Some interesting tendencies thrown
up by ROM

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The overall view on
Sustainable Development
Any questions?

Thank you!

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